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<SEC-DOCUMENT>0000825324-07-000025.txt : 20071228
<SEC-HEADER>0000825324-07-000025.hdr.sgml : 20071228
<ACCEPTANCE-DATETIME>20071228120346
ACCESSION NUMBER:		0000825324-07-000025
CONFORMED SUBMISSION TYPE:	DEF 14C
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070930
FILED AS OF DATE:		20071228
DATE AS OF CHANGE:		20071228
EFFECTIVENESS DATE:		20071228

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GOOD TIMES RESTAURANTS INC
		CENTRAL INDEX KEY:			0000825324
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				841133368
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEF 14C
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18590
		FILM NUMBER:		071330890

	BUSINESS ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401
		BUSINESS PHONE:		3033841400

	MAIL ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMOUNT VENTURES INC
		DATE OF NAME CHANGE:	19900205
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14C
<SEQUENCE>1
<FILENAME>proxy21.htm
<TEXT>
<html>

<head>
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<body lang=EN-US link=blue vlink=purple>



<p class=MsoNormal align=center style='margin-top:0in;margin-right:.7pt;
margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='margin-top:0in;margin-right:.7pt;
margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>&nbsp;</b></p>









<p class=MsoNormal align=center style='margin-top:0in;margin-right:.7pt;
margin-bottom:12.0pt;margin-left:0in;text-align:center'><b>TABLE OF
CONTENTS</b></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=636
 style='width:477.0pt;margin-left:9.9pt;border-collapse:collapse'>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt'><b>NOTICE OF ANNUAL MEETING TO
  STOCKHOLDERS</b></p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;text-align:right'>3</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'><b>PROXY
  STATEMENT</b></p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>

  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Item
  1 for Voting -&nbsp; Election of Directors</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>4</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Board
  Committees</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>6 - 8</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Ownership
  of Common Stock by Principal Stockholders and Management</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>9</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Executive
  Officers and Directors Compensation</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>10 - 12</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Employment
  Agreement and Arrangements</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>12</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Certain
  Relationships and Related Transactions</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>12</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Item
  2 for Voting - Approval of the Company's 2008 Omnibus Incentive Compensation
  Plan</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>13 - 19</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Independent
  Public Accountants</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>20</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Future
  Stockholder Proposals</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>20</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Other
  Matters</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>20</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Incorporation
  of Documents by Reference</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>21</p>
  </td>
 </tr>
 <tr style='height:.3in'>
  <td width=540 valign=top style='width:405.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in'>Annex
  A - 2008 Omnibus Incentive Compensation Plan</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.3in'>
  <p class=MsoNormal align=right style='margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right'>A1 - A-17</p>
  </td>
 </tr>
</table>



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<p class=MsoNormal style='margin-bottom:10.0pt;line-height:115%'><i>&nbsp;</i></p>

<p class=MsoNormal style='margin-bottom:12.0pt'><i>Dear Fellow Shareholders:</i></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We are pleased to report our results for fiscal
2007 and share with you our plans for 2008 and beyond.&nbsp;&nbsp; In the midst of one of
the most challenging macro environments for the restaurant industry ever, we
made significant strides this year in anchoring our core brand position,
significantly growing our same store sales, improving our cash flow,
establishing a new growth trajectory for the company and putting in place new
resources and partners for that growth. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The longer term value for our shareholders will
come from our ability to grow from our foundation of a differentiated concept
centered around Quality, Authenticity and Integrity in all that we do with
broad consumer appeal, strong unit economics and best in class support services.&nbsp;
With that foundation laid, our goal is to become a multi-state, &quot;super
regional&quot; chain with a focus on a market-by-market expansion that leverages
brand awareness and marketing, operational and distribution efficiencies for
our franchise partners and for our own restaurants.&nbsp;&nbsp; We are embarking on an
accelerated growth plan in 2008 to take Good Times east from Colorado into
select Midwestern states with a combination of company-owned, developer-owned
and franchised restaurants and believe we have the opportunity to be a
dominant, second tier concept in those markets.&nbsp;&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Here are some of the highlights from this year and
their strategic importance as a springboard as we move forward:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>We continued to increase same store
sales and cash flow.&nbsp;&nbsp; </i>For the fourth year in a row, same store sales
increased as we added a new value proposition for Good Times customers.&nbsp;&nbsp; Same
store sales increased 5.9% for the year, even though we faced some of the worst
weather in Colorado history during the first four months of the year.&nbsp; In May
through September our same store sales growth was between 7.5% and 12.8% each
month.&nbsp; We are currently in our 16<sup>th</sup> consecutive quarter of same
store sales growth.&nbsp; </p>

<ul style='margin-top:0in' type=square>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>We
     brought our &quot;Director of Global Expansion&quot; personality from radio to television
     with a vibrant new advertising campaign that will continue throughout
     fiscal 2008.&nbsp; As we continue to build out the Colorado market with new
     restaurants, we will be able to increase our media presence.&nbsp; We have
     reached a level that now supports a year round television and radio
     presence.&nbsp; </li>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>We
     introduced our Bambino Burgers in May, 2007 as a strategy to enhance our
     overall value proposition in a way that is unique to Good Times.&nbsp; We plan
     on rolling out Chicken Bambinos in January, 2008 and continuing to improve
     our relevance to the budget constrained, value conscious consumer without
     getting into the commoditized $1 menu game that our larger competitors
     play.</li>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>We
     continued our reinvestment into exterior upgrades, patio improvements and
     improved landscaping at several restaurants in 2007 and we will continue
     to upgrade additional restaurants in 2008.&nbsp; </li>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>We
     will continue to leverage our position as the only quick service
     restaurant serving all natural beef.&nbsp; Our near term customer transaction
     growth will come from continued innovation in our value offerings and
     further leveraging of our frozen custard and fountain category, both of
     which will serve to broaden our consumer footprint and strengthen our
     competitive points of difference.&nbsp; </li>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>We
     remain conservatively leveraged on our balance sheet and our Cash Provided
     by Operating Activities continues to increase.&nbsp; We estimate our net profit
     was impacted by over $500,000 this year as a result of the extreme
     Colorado weather in December and January, the Colorado minimum wage
     increase and from the extraordinary spike in commodity costs in the last
     half of the year.&nbsp; We anticipate continued volatility in the commodity
     markets this year, but improved profit flow-through on increased sales due
     to the aggressive price increases we took in 2007. </li>
</ul>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Our core brand position that supports all of these
initiatives is continued improvement in providing an &quot;Addictive Experience&quot;
based on quality, authenticity and integrity in our products, customer service,
people development and brand communications.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>We have strong unit economics.&nbsp; </i>&nbsp;Average
annual sales in our newer 70 seat dining room prototype are now 25% more than
the average of our traditional double drive thru restaurants and the last seven
restaurants developed are averaging approximately $1.15 million in annualized
sales.&nbsp; We will continue to access the sale leaseback market to finance company
owned growth, and at these sales levels our cash on cash return on our
operating investment is well over 40%.&nbsp; We continue to refine our prototype
design for maximum labor efficiency and to elevate the customer experience.&nbsp; We
saw unprecedented increases in the commodity markets in 2007 and we implemented
cumulative price increases totaling 7.3% during the year.&nbsp; In the face of mandated
minimum wage increases, rising land and construction costs, volatile commodity
markets and a tightening labor market, our return on investment model is driven
by our ability to grow our top line sales and be disciplined in selecting new
sites that will deliver those sales levels.</p>



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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>We put in place new resources and
partners for growth.&nbsp; </i>On October 1, 2007 we hired a Vice President of
Franchise Development who will recruit both experienced multi-unit operators as
well as individual owner-operator franchisees for planned expansion into
Nebraska, Missouri, Kansas, Iowa, South Dakota and Western Illinois.&nbsp;
Subsequent to the fiscal year end, we announced a development agreement with an
investment group for the development of up to twenty five restaurants and we
are in the process of acquiring real estate in Nebraska for our first new
market development.&nbsp; As opposed to Denver, where we have 42 restaurants and
which is one of the more expensive media markets in the country, we are
targeting smaller, tertiary markets where we can reach critical mass to support
television advertising and build brand awareness relatively quickly.&nbsp; We will
continue to develop company owned stores in Colorado as well as in select new
markets.&nbsp; We currently have ten restaurants operating under the dual brand test
agreement with Taco John's International.&nbsp; While the top line sales have been
encouraging, the operating margins and customer satisfaction metrics have
lagged significantly behind our core concept.&nbsp; We have extended the test agreement
through March 31, 2008 and continue to evaluate whether the dual brand concept
has a place in our longer term strategy.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>We continue to add capacity to our
support services.&nbsp; </i>We
feel we have excellent processes and systems established for the operation of
our restaurants and we are surrounding that with a best practices approach in
developing our infrastructure that will support an increased focus on franchise
growth, such as the Good Times On Line Campus for video and multi-media
training tools, customer feedback tools, store level and above store level
reporting on important financial and operating metrics, investment in a longer
term IT platform, site selection modeling and other support within each core
area of our business. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Thanks to our guests, shareholders and
team members for all of your support. </i>&nbsp;&nbsp;We believe that the synergy of
organic growth in our same store sales, efficient management of restaurant
operating costs and accelerated expansion of the Good Times brand can continue
to deliver increasing profits for the near term.&nbsp;&nbsp; However, long term value
creation will be a result of investing appropriately in the people, resources
and brand elements for a foundation for a larger expansion plan.&nbsp; Thank you
again for your support. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Sincerely,</p>



<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>/s/ Boyd E. Hoback&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/
Eric W. Reinhard</i></p>

<p class=MsoNormal style='text-align:justify'>Boyd E. Hoback&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eric
Reinhard</p>

<p class=MsoNormal style='text-align:justify'>President, CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman</p>





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<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC.</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>601 Corporate
Circle</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>Golden,
Colorado 80401</b></p>

<p class=TitleC>NOTICE
OF ANNUAL MEETING OF STOCKHOLDERS</p>

<p class=TitleC style='margin-bottom:.25in'>To Be Held January 24, 2008</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>To the stockholders of Good Times Restaurants
Inc.:</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>An
annual meeting of the stockholders of Good Times Restaurants Inc., a Nevada
corporation, will be held at the Good Times Restaurants corporate offices
located at 601 Corporate Circle, Golden, Colorado 80401 on January 24, 2008 at 12:00
p.m. mountain time.&nbsp; The purposes of the meeting are to:</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:35.3pt;text-indent:-.25in'>1.&nbsp;&nbsp;&nbsp;&nbsp; elect seven directors to serve
during the next year;</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:35.3pt;text-indent:-.25in'>2.&nbsp;&nbsp;&nbsp;&nbsp; approve the Company's 2008 Omnibus
Equity &nbsp;Incentive Compensation Plan; and</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:35.1pt;text-indent:-.25in'>3.&nbsp;&nbsp;&nbsp;&nbsp; transact any other business
which may properly come before the meeting.</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
accompanying proxy statement contains additional information about the annual
meeting.&nbsp; All stockholders of record at the close of business on December 6,
2007 may vote at the meeting.</p>

<p class=BodyText5 style='margin-top:6.0pt;text-indent:0in'><b>All stockholders are cordially
invited to attend the meeting.&nbsp; If you do not plan to attend the meeting, please
sign, date and promptly return the enclosed proxy card.&nbsp; A business reply
envelope is enclosed for your convenience.&nbsp; The delivery of a proxy will not
affect your right to vote in person if you attend the meeting.</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Sincerely,</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><i>/s/
Susan M. Knutson</i></p>

<p class=MsoNormal>Susan
M. Knutson</p>

<p class=MsoNormal>Secretary
and Controller</p>

<p class=MsoNormal>December
6, 2007</p>

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<p class=TitleC align=left style='margin-right:.7pt;text-align:left'>PROXY
STATEMENT</p>

<h3><a name="_Toc92016727">General</a>: This proxy statement contains
information about the annual meeting of stockholders of Good Times Restaurants
Inc. to be held at the Good Times Restaurants corporate offices located at 601
Corporate Circle, Golden, Colorado on Thursday, January 24, 2008 at 12:00 p.m.
local time.&nbsp; The Good Times Restaurants Inc. board of directors is using this
proxy statement to solicit proxies for use at the meeting.&nbsp; This Proxy
Statement and the enclosed Proxy Card and Annual Report on Form 10-KSB for the
fiscal year ended September 30, 2007 are being mailed to you on or about December
28, 2007.</h3>

<p class=BodyText5 align=left style='margin-top:6.0pt;margin-right:.5pt;
margin-bottom:6.0pt;margin-left:0in;text-align:left;text-indent:0in'>The terms &quot;we,&quot; &quot;us&quot; and &quot;our&quot;
in this proxy statement refer to Good Times Restaurants Inc.</p>

<h3><a name="_Toc92016728"></a><a
name="_Toc89839940"></a><a name="_Toc89839445">Who
can vote</a>: Only
stockholders of record at the close of business on the record date of December
6, 2007 are entitled to receive notice of the annual meeting and to vote the
shares of our common stock.&nbsp; As of December 6, 2007, there were 3,875,472
shares of our common stock outstanding.&nbsp; Holders of our common stock are
entitled to one vote per share.&nbsp; The Company's by-laws do not allow holders to
accumulate votes in the election of directors.</h3>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
shares represented by all proxies that are properly executed and submitted will
be voted at the meeting in accordance with the instructions indicated thereon.&nbsp;
Unless otherwise directed, votes will be cast &quot;For&quot; all of the nominees for
election as directors and approval of each of the other proposals set forth in
this proxy statement.</p>

<h3><a name="_Toc92016729"></a><a
name="_Toc89839941"></a><a name="_Toc89839446">Revoking
a proxy</a>: You may
revoke a proxy before the vote is taken at the meeting by:</h3>

<ul style='margin-top:0in' type=disc>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>Submitting
     a new proxy with a later date,</li>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>By
     voting at the meeting, or</li>
 <li class=MsoNormal style='margin-top:6.0pt;margin-bottom:6.0pt;text-align:
     justify'>By
     filing a written revocation with our corporate secretary.</li>
</ul>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Your
attendance at the meeting will not automatically revoke your proxy.</p>

<h3><a name="_Toc92016730"></a><a
name="_Toc89839942"></a><a name="_Toc89839447">Quorum
and voting requirements</a>: Our bylaws
provide that a majority of the outstanding shares entitled to vote, represented
in person or by proxy, is necessary to constitute a quorum at the annual
meeting.&nbsp; Our bylaws also provide that all stockholder actions are to be
determined by a majority of votes cast by the stockholders entitled to vote.&nbsp; In
addition, the Nasdaq Stock Market rules require, with respect to the 2008
Omnibus Equity Incentive Compensation Plan proposal, that the minimum vote
which will constitute shareholder approval is a majority of the total votes
cast on the proposal.&nbsp; If a quorum is not present the meeting may be adjourned
until a quorum is obtained.&nbsp; The proxies may be voted at any reconvened meeting
after any adjournment or postponement of the annual meeting.</h3>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Abstentions
and broker &quot;non-votes&quot; will be treated as shares that are present for purposes
of determining the existence of a quorum.&nbsp; A broker non-vote occurs when a
broker is not permitted to vote on a matter without instruction from the
beneficial owner of the shares and no instruction is given.&nbsp; Abstentions and
broker non-votes will result in the respective proposals receiving fewer votes.</p>

<h3><a name="_Toc92016731"></a><a
name="_Toc89839943"></a><a name="_Toc89839448">Payment of proxy solicitation costs</a>: All of the
expenses involved in preparing and mailing this proxy statement and the
enclosed materials and all costs of soliciting proxies will be paid by us.&nbsp; In
addition to solicitation by mail, proxies may be solicited by our officers and
regular employees by telephone or personal interview.&nbsp; These individuals will
not receive any compensation for their services other than their regular
salaries.&nbsp; Arrangements will also be made with brokerage houses and other
custodians and fiduciaries to forward solicitation materials to the beneficial
owners of the shares held on the record date, and we may reimburse those
persons for reasonable out-of-pocket expenses incurred by them in so doing.</h3>

<h3><a name="_Toc92016732"></a><a
name="_Toc89839944"></a><a name="_Toc89839449">ITEM
1 FOR VOTING - ELECTION OF DIRECTORS</a></h3>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>All
directors of Good Times Restaurants are elected annually.&nbsp; At this meeting
seven directors are to be elected to serve for the next year or until their
successors are elected and qualified.&nbsp; The nominees for directors are
identified under the &quot;Nominees&quot; caption below.&nbsp; Each nominee has consented to
serve as a director if elected.&nbsp; However, if any nominee is unable to serve or
for good cause will not serve as a director, each of the persons named in the
proxy intend to vote in his or her discretion for a substitute who will be
designated by the board of directors.</p>

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<h3>Nominee selection process: Our board of directors as a whole acts as the nominating committee for
the selection of nominees for election as directors.&nbsp; We do not have a separate
standing nominating committee since we require that our director nominees be
approved as nominees by a majority of independent directors.&nbsp; The board will
consider suggestions by stockholders for possible future nominees for election
as directors at the next annual meeting when the suggestion is delivered in writing
to the corporate secretary of Good Times Restaurants by August 15 in any year.&nbsp;
No such suggestions were received by the August 15, 2007 deadline from a
beneficial owner of more than 5% of our stock.</h3>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
board selects each nominee, subject to contractual nominee designation and
election rights held by certain stockholders, as discussed below, based on the
nominee's skills, achievements and experience, with the objective that the
board as a whole should have broad and relevant experience in high policymaking
levels in business and a commitment to representing the long-term interests of
the stockholders.&nbsp; The board believes that each nominee should have experience
in positions of responsibility and leadership, an understanding of our business
environment and a reputation for integrity.</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
board evaluates each potential nominee individually and in the context of the
board as a whole.&nbsp; The objective is to recommend a group that will effectively
contribute to our long-term success and represent stockholder interests.&nbsp; In
determining whether to recommend a director for re-election, the board also
considers the director's past attendance at meetings and participation in and
contributions to the activities of the board.</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>When
seeking candidates for director, the board solicits suggestions from incumbent
directors, management, stockholders or others.&nbsp; The board does not have a
charter for the nominating process.</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><a name="_Toc92016734"><b>Communication with the
directors</b></a><b>:</b> The board welcomes questions
or comments about us and our operations.&nbsp; Those interested may contact the
board as a whole or any one or more specified individual directors by sending a
letter to the intended recipients' attention in care of Good Times Restaurants
Inc., Corporate Secretary, 601 Corporate Circle, Golden, CO 80401.&nbsp; All such
communications other than commercial advertisements will be forwarded to the
appropriate director or directors for review.</p>

<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify'><a name="_Toc92016735"><b>Nominees</b></a><b>:</b> The director
nominees of Good Times Restaurants are as follows:</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Geoffrey R. Bailey,</i> age 56, has
served as a Good Times director since 1996 and is a director of The Erie County
Investment Co., which owns 99% of The Bailey Company, a large franchise owner
of Arby's restaurants and a franchisee and joint venture partner of Good Times
Restaurants.&nbsp; He joined The Erie County Investment Co. in 1979.&nbsp; Mr. Bailey is
a graduate of the University of Denver with a Bachelor's Degree in Business
Administration.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><strong><i>Ron Goodson</i></strong><strong>, age 51, has served as a Good Times&nbsp;director since 2005.&nbsp;He
also is the Vice President &amp; General Manager for the Pepsi Cola Bottling
Group's Southwest&nbsp;Market Unit. &nbsp;Mr. Goodson has been with PepsiCo&nbsp;
and Pepsi Bottling Group for&nbsp;29 years where he has held numerous
positions&nbsp;with increasing responsibility in more than half a dozen
geographical territories.&nbsp; In addition to delivering consistent strong results,
Mr. Goodson has served on the North America Diversity Advisory Board, the PBG Annual Planning Steering Committee and is active with the&nbsp;&nbsp;company's focus on
Campus recruiting and retention. &nbsp;Mr. Goodson is a graduate of Wright State
University.&nbsp; His current&nbsp;executive&nbsp;board involvement is with the
YMCA and&nbsp;The City of Hope.</strong></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>David Grissen</i>, age 50, has served as
a Good Times director since 2005 and is Executive Vice President Eastern Region
for Marriott International.&nbsp; He is responsible for&nbsp;514 hotels within
the Eastern Region (spanning from the states of Maine to South Carolina)
operated under the Marriott Hotels&nbsp;&amp; Resort, Marriott Conference
Centers,&nbsp;Renaissance Hotels &amp; Resorts,&nbsp;Courtyard, Residence Inn,
TownePlace Suites and SpringHill Suites brands.&nbsp; He oversees Human
Resources, Sales and Marketing, Finance, Market Strategy, Information Resources
and Development and Feasibility areas through key executives on the Eastern
Regional Team.&nbsp;&nbsp;Mr. Grissen joined Marriott from Dreyer's Grand Ice
Cream in 1987, where he had served as Director of Finance and Planning.
&nbsp;Mr. Grissen holds a B.A. from Michigan State University and a M.B.A. from
Loyola University in Chicago.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Boyd E. Hoback</i>, age 52, has
served as a Good Times director since 1992 and is President and Chief Executive
Officer of Good Times Restaurants, a position which he has held since December
1992 and he has been in the restaurant business since the age of 16.&nbsp; Mr.
Hoback has been a vital part of the development of Good Times to a 54-restaurant
chain and has been involved in developing all areas of the company.&nbsp; Mr. Hoback
has served on several boards over his career including The Colorado Restaurant
Association, Juvenile Diabetes Foundation and is a former member of The Young
President's Organization.&nbsp; Mr. Hoback is an honors graduate of the University
of Colorado in finance.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Eric W. Reinhard</i>, age 49, has
served as a Good Times director since 2005 and in addition to serving as an
officer of Good Times and Chairman of the Board, Mr. Reinhard also serves as
President of the Pepsi Cola Bottler's Association.&nbsp; Prior to June 2004 he was
the General Manager for the Pepsi Bottling Group's Great West Business Unit.&nbsp;
While in this role, Mr. Reinhard was also a member of the Pepsi Bottling
Group's Chairman's Operating Council, a member of the Food Service Strategic
Planning Committee, and a member of The Dr. Pepper Bottler Marketing
Committee.&nbsp;&nbsp; Mr. Reinhard joined Pepsi Cola in 1984 after four years with The
Proctor &amp; Gamble Distributing Company.&nbsp; Since 1984 he has held several
field and headquarters positions including Vice President/General Manager
Pepsi-Lipton Tea partnership (JV), General Manager Mid-Atlantic business Unit,
Area Vice President Retail Channels, Vice President On-Premise Operations and
Area Vice President of Franchise Operations.&nbsp; Eric holds a BA from Michigan
State University and has completed the Executive Business Program at the
University of Michigan.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Richard J. Stark</i>, age 67, has
served as a Good Times director since July 1990.&nbsp; He is Chairman of the Audit
Committee, and a member of the Compensation Committee.&nbsp; Mr. Stark has spent
over 40 years in the investment industry.&nbsp; He is currently President of Boulder
Asset Management, a firm that he founded in 1984. Previously Mr. Stark was the
Chief Investment Officer of Interfirst Investment Management in Dallas, Texas
and was responsible for all individual asset management at S&amp;P/Intercapital
in New York.&nbsp; Mr. Stark is a graduate of Marquette University with a BS in
business administration (finance) and has an MBA from the University of
Illinois with a major in finance.&nbsp; Mr. Stark received his chartered financial
analyst designation in 1974.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Alan A. Teran</i>, age 62, has
served as a Good Times director since 1994.&nbsp; He is a member of the Audit and
Compensation Committees.&nbsp; Mr. Teran has spent the past 28 years working in the
restaurant industry, including serving as president of Cork &amp; Cleaver.&nbsp; He
was one of the first franchisees of Le Peep Restaurants.&nbsp; Mr. Teran graduated
from the University of Akron in 1968 with a degree in business.</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><a name="_Toc92016736"></a><a
name="_Toc89839945"></a><a name="_Toc89839450">There
are no family relationships among the directors.&nbsp; The board has determined that
of the current directors Geoffrey R. Bailey, Ron Goodson, David Grissen,
Richard J. Stark and Alan A. Teran are independent directors under the NASDAQ
listing standards.</a></p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Geoffrey
R. Bailey was originally elected to the board of directors pursuant to
contractual board representation rights granted to The Bailey Company in
connection with its investment in shares of our Series A Convertible Preferred
Stock in 1996.&nbsp; Mr. Bailey continues to serve on the board pursuant to
contractual board representation rights held by The Bailey Company and its
affiliates (&quot;The Bailey Group&quot;) in connection with our Series B Convertible
Preferred Stock financing in February 2005, whereby The Bailey Group is
currently entitled to elect three members of our board of directors, two of
whom must be independent directors.&nbsp; Richard J. Stark and Alan A. Teran are the
additional members of the board of directors and nominees designated by The
Bailey Group under these provisions.&nbsp; Accordingly, the votes of The Bailey
Group shall be determinative as to the election of Messrs. Bailey, Stark and
Teran.&nbsp; The other investors in our Series B Convertible Preferred Stock
financing also have board representation rights whereby they are currently
entitled to elect three members of our board of directors.&nbsp; Ron Goodson, David
Grissen and Eric W. Reinhard are the members of the board of directors and
nominees designated under these provisions.&nbsp; Accordingly, the votes of the
other investors in our Series B Convertible Preferred Stock financing shall be
determinative as to the election of Messrs. Goodson, Grissen and Reinhard.&nbsp; See
&quot;Certain relationships and related transactions&quot; for additional discussion of
these provisions.&nbsp; There are no other arrangements or understandings between
any current director and any other person under which that director was elected
or nominated.</p>

<p class=BodyText5 style='margin-top:6.0pt;text-indent:0in'><b>Recommendation of the board of
directors:&nbsp; The board of directors recommends voting &quot;For&quot; electing all of the
nominees.</b></p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'><b>Board
Committees</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016737"></a><a
name="_Toc89839946"></a><a name="_Toc89839451"><b>Audit Committee</b></a><b>:</b> The Audit
Committee currently consists of Messrs. Grissen, Teran and Stark, each of whom
are independent directors under the applicable NASDAQ listing standards.&nbsp;&nbsp; The
Board has determined that Richard Stark is an audit committee financial expert,
as that term is defined by the Securities and Exchange Commission
(&quot;SEC&quot;) rules.&nbsp; The function of this Committee relates to oversight
of the auditors, the auditing, accounting and financial reporting processes and
the review of the Company's financial reports and information.&nbsp; In addition,
the functions of this Committee have included, among other things, recommending
to the Board the engagement or discharge of independent auditors, discussing
with the auditors their review of the Company's quarterly results and the
results of their audit and reviewing the Company's internal accounting
controls.&nbsp; The Audit Committee operates pursuant to a written Charter adopted
by the Board of Directors.&nbsp; A current copy of the Audit Committee Charter is
available on our website at www.goodtimesburgers.com.&nbsp; The Audit Committee held
four meetings during fiscal 2007.</p>

<p class=Style style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016738"></a><a
name="_Toc89839947"></a><a name="_Toc89839452"><b>Compensation Committee</b></a><b>:</b> The
Compensation Committee currently consists of Messrs. Goodson, Stark and Teran,
each of whom are independent directors under the applicable NASDAQ listing
standards..&nbsp; The function of this Committee is to consider and determine all
matters relating to the compensation of the President and CEO and other executive officers, including matters relating to the employment agreements.&nbsp; The
Compensation Committee held two meetings during fiscal 2007.</p>

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<p class=Style style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The Compensation Committee does not have a
Charter. The
responsibility of the Compensation Committee is to review and approve the
compensation and other terms of employment of our Chief Executive Officer and
our other executive officers, including all of the executive officers named in
the Summary Compensation Table in this proxy statement (the &quot;Named Executive
Officers&quot;).&nbsp; Among its other duties, the Compensation Committee oversees all
significant aspects of the Company's compensation plans and benefit programs.&nbsp;
The Compensation Committee annually reviews and approves corporate goals and
objectives for the Chief Executive Officer's compensation and evaluates the
Chief Executive Officer's performance in light of those goals and objectives.&nbsp;
The Compensation Committee also recommends to the Board of Directors the
compensation and benefits for members of the Board of Directors.&nbsp; The
Compensation Committee has also been appointed by the Board of Directors to
administer our 2008 Omnibus Equity Incentive Compensation Plan (the &quot;2008 Plan&quot;),
which is the successor equity compensation plan to the Company's 2001 Stock
Option Plan (the &quot;2001 Plan&quot;) and is further described in this proxy statement
in connection with the submission of the 2008 Plan for stockholder approval.&nbsp;
The Compensation Committee does not delegate any of its authority to other
persons.</p>

<p class=Style style='margin-top:6.0pt;margin-right:6.05pt;margin-bottom:6.0pt;
margin-left:.2pt;text-align:justify'>In carrying out its duties, the Compensation
Committee participates in the design and implementation and ultimately reviews
and approves specific compensation programs.&nbsp; The Compensation Committee
reviews and determines the base salaries for the Named Executive Officers, and
also approves awards to the Named Executive Officers under the Company's equity
compensation plans.</p>

<p class=Style style='margin-top:6.0pt;margin-right:.25pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In determining the amount and form of compensation
for Named Executive Officers other than the Chief Executive Officer, the
Compensation Committee obtains input from the Chief Executive Officer regarding
the duties, responsibilities and performance of the other executive officers
and the results of performance reviews.&nbsp; The Chief Executive Officer also
recommends to the Compensation Committee the base salary levels for all Named
Executive Officers and the award levels for all Named Executive Officers under
the Company's equity compensation programs.&nbsp; No Named Executive Officer attends
any executive session of the Compensation Committee or is present during final
deliberations or determinations of such Named Executive Officer's
compensation.&nbsp; The Chief Executive Officer also provides input with respect to
the amount and form of compensation for the members of the Board of Directors.</p>

<p class=Style style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The Compensation Committee has the authority to
directly engage, at the Company's expense, any compensation consultants or
other advisers as it deems necessary to carry out its responsibilities in determining
the amount and form of executive and director compensation.&nbsp; For fiscal 2007,
the Compensation Committee did not use the services of a compensation
consultant or other adviser.&nbsp; However, the Compensation Committee has reviewed
surveys, reports and other market data against which it has measured the
competitiveness of the Company's compensation programs.&nbsp; In determining the
amount and form of executive and director compensation, the Compensation
Committee has reviewed and discussed historical salary information as well as
salaries for similar positions at comparable companies.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016739"></a><a
name="_Toc89839948"></a><a name="_Toc89839453"><b>Directors' meetings and attendance</b></a><b>:</b> There were
four meetings of the board of directors held during the last full fiscal year.
No member of the board of directors attended fewer than 75% of the board
meetings and applicable committee meetings.</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>Each
director attended the 2007 annual meeting of stockholders.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016740"></a><a
name="_Toc89839949"></a><a name="_Toc89839454"><b>Directors' compensation</b></a><b>:</b> Each
non-employee director receives $500 for each board of directors meeting
attended.&nbsp; Members of the compensation and audit committees generally each
receive $100 per meeting attended.&nbsp; However, where both compensation and audit
committee meetings are held at the same gathering only $100 is paid to
directors attending both committee meetings.&nbsp; Additionally, for the fiscal year
ended September 30, 2007, each non-employee director received a non-statutory
stock option to acquire 2,000 shares of common stock at an exercise price of $6.38.</p>

<p class=BodyText5 style='margin-bottom:6.0pt;text-indent:0in'><a
name="_Toc92016741"></a><a name="_Toc89839950"></a><a name="_Toc89839455">Audit Committee Report</a>: Good Times Restaurant's
management is responsible for the internal controls and financial reporting
process for Good Times Restaurants.&nbsp; The independent accountants for Good Times
Restaurants are responsible for performing an independent audit of the
financial statements in accordance with generally accepted auditing standards
and to issue a report on those financial statements.&nbsp; The audit committee's
responsibility is to monitor and oversee these processes.</p>

<p class=BodyText5 style='margin-bottom:6.0pt;text-indent:0in'>In this context, the audit
committee met with management and the independent accountants to review and
discuss the Good Times Restaurants financial statements for the fiscal year
ended September 30, 2007.&nbsp; Management represented to the audit committee that
the financial statements were prepared in accordance with generally accepted
accounting principles, and the audit committee has reviewed and discussed the
financial statements with management and the independent accountants.</p>

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clear=all style='page-break-before:always'>










<p class=BodyText5 style='margin-bottom:6.0pt;text-indent:0in'>The audit committee has
discussed with the independent accountants matters required to be discussed by
Statement on Auditing Standards No. 61, Communication with Audit Committees.&nbsp;
The audit committee has also received the written disclosures and the letter
from the independent accountants required by Independence Standards Board
Standard No. 1, Independence Discussions with Audit Committees, and the audit
committee discussed with the independent accountants that firm's independence.</p>

<p class=BodyText5 style='text-indent:0in'>Based
on the audit committee's review and discussions referred to above, the audit
committee recommended to the board of directors that the audited financial
statements be included in the Good Times Restaurants Annual Report on Form
10-KSB for the fiscal year ended September 30, 2007 for filing with the SEC.</p>

<p class=MsoNormal align=center style='text-align:center;page-break-after:avoid'><b>SUBMITTED BY
THE AUDIT COMMITTEE</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center;
page-break-after:avoid'><b>OF
THE COMPANY'S BOARD OF DIRECTORS</b></p>

<p class=MsoNormal align=center style='margin-top:12.0pt;text-align:center'><i>David Grissen&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Richard
Stark&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alan Teran</i></p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><i>&nbsp;</i></p>

<p class=MsoFooter align=center style='text-align:center'>8</p>



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<p class=MsoNormal style='line-height:1.0pt'><a name="_Toc92016742">&nbsp;</a></p>







<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><b>Ownership of common stock by principal
stockholders and management</b><b>:</b> The following table shows the
beneficial ownership of shares of Good Times Restaurants common stock as of December
6, 2007 by each person known by Good Times Restaurants to be the beneficial
owner of five percent or more of the shares of Good Times Restaurants common
stock, each director and each executive officer named in the Summary
Compensation Table, and all directors and executive officers as a group.&nbsp; The
address for the principal stockholders and the Directors and Officers is 601
Corporate Circle, Golden, CO 80401.</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:23.4pt;border-collapse:collapse'>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'><b><br
  clear=all style='page-break-before:always'>
  </b>
  <p class=MsoNormal><b><u>Holder</u></b></p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=center style='margin-left:.3pt;text-align:center'><b>Number of
  shares </b></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.3pt;
  margin-bottom:0in;margin-left:.9pt;margin-bottom:.0001pt;text-align:center'><b>Percent of</b></p>
  </td>
 </tr>
 <tr style='height:.25in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.25in'>
  <p class=MsoNormal><b><u>Principal
  stockholders</u></b></p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.25in'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>beneficially
  owned</u></b></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.25in'>
  <p class=MsoNormal align=center style='margin-left:.9pt;text-align:center'><b><u>class**</u></b></p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>The
  Bailey Company, LLLP</p>
  </td>
  <td width=168 valign=top style='width:1.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>821,512<sup>1</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;background:#EEECE1;padding:
  0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>21.20%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>The
  Erie County Investment Co.</p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>1,034,792<sup>1</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>26.70%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Commonwealth
  Equity Services LLP</p>
  </td>
  <td width=168 valign=top style='width:1.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>362,763<sup>2</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;background:#EEECE1;padding:
  0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>9.36%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Paul
  T. Bailey</p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>1,092,792<sup>3</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>28.20%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal><b><u>Directors
  and Officers</u></b></p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'><b>&nbsp;</b></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Geoffrey
  R. Bailey, Director</p>
  </td>
  <td width=168 valign=top style='width:1.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>40,200<sup>4</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;background:#EEECE1;padding:
  0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>1.03%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Ron
  Goodson, Director</p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>208,000<sup>5</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>5.36%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>David
  Grissen, Director</p>
  </td>
  <td width=168 valign=top style='width:1.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>208,000<sup>5</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;background:#EEECE1;padding:
  0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>5.36%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Boyd
  E. Hoback, Director, Officer</p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>187,724<sup>6</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>4.65%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Scott
  G. LeFever, Vice President, Operations</p>
  </td>
  <td width=168 valign=top style='width:1.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>15,915<sup>7</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;background:#EEECE1;padding:
  0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>*</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Richard
  J. Stark, Director</p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>41,105<sup>8</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>1.06%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Alan
  A. Teran, Director</p>
  </td>
  <td width=168 valign=top style='width:1.75in;background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>85,639<sup>8</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;background:#EEECE1;padding:
  0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>2.20%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal>Eric
  W. Reinhard, Chairman</p>
  </td>
  <td width=168 valign=top style='width:1.75in;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>272,500<sup>9</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>7.01%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>Robert
  D. Turrill, Vice President-Marketing</p>
  </td>
  <td width=168 valign=top style='width:1.75in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>42,068<sup>10</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  background:#EEECE1;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>1.08%</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width=264 valign=top style='width:2.75in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal>All
  directors and executive officers as a group (11 persons including all those
  named above)</p>
  </td>
  <td width=168 valign=top style='width:1.75in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-right:37.35pt;text-align:right'>1,115,695<sup>11</sup></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:.2in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:43.9pt;
  margin-bottom:0in;margin-left:32.2pt;margin-bottom:.0001pt;text-align:right'>26.72%</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:
- -9.0pt'><sup>1&nbsp;&nbsp;&nbsp; </sup>The Bailey
Company is 99% owned by The Erie County Investment Co., which should be deemed
the beneficial owner of Good Times Restaurants common stock held by The Bailey
Company.&nbsp; The Erie County Investment Co. also owns 213,280 shares of Good Times
Restaurants common stock in its own name.&nbsp; Geoffrey R. Bailey is a director and
executive officer of The Erie County Investment Co.&nbsp; Geoffrey R. Bailey
disclaims beneficial ownership of the shares of Good Times Restaurants common
stock held by The Bailey Company and The Erie County Investment Co.&nbsp; See
footnote 3 below.</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>2&nbsp;&nbsp;&nbsp; </sup>The information
as to Commonwealth Equity Services LLP (&quot;Commonwealth&quot;) and entities
controlled directly or indirectly by Commonwealth is derived in part from
Schedule&nbsp;13D, as filed with the Securities and Exchange Commission on
December 23, 2005 and most recently amended on February 15, 2006, and information
furnished to Good Times separately by Commonwealth.</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>3&nbsp;&nbsp;&nbsp; </sup>Includes
821,512 shares beneficially owned by The Bailey Company and 213,280 shares held
of record by The Erie County Investment Co.&nbsp; Paul T. Bailey is the principal
owner of The Erie County Investment Co. and may be deemed the beneficial owner
of shares held by The Erie County Investment Co. and The Bailey Company.&nbsp; Paul
T. Bailey disclaims beneficial ownership of the shares held by The Erie County
Investment Co. and The Bailey Company.&nbsp; Paul T. Bailey is the father of
Geoffrey R. Bailey.</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>4&nbsp;&nbsp;&nbsp; </sup>Includes 10,000
shares underlying presently exercisable stock options.</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>5&nbsp;&nbsp;&nbsp; </sup>Includes 8,000
shares underlying presently exercisable stock options.</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>6&nbsp;&nbsp;&nbsp; </sup>Includes 141,732
shares underlying presently exercisable stock options.</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>7&nbsp;&nbsp;&nbsp; </sup>Includes 15,915
shares underlying presently exercisable stock options</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>8&nbsp;&nbsp;&nbsp; </sup>Includes 10,000
shares underlying presently exercisable stock options</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>9&nbsp;&nbsp;&nbsp; </sup>Includes 12,500
shares underlying presently exercisable stock options</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>10</sup> Includes
32,777 shares underlying presently exercisable stock options</p>

<p class=MsoNormal style='margin-left:9.0pt;text-align:justify;text-indent:
- -9.0pt'><sup>11&nbsp; </sup>Does not
include shares held beneficially by The Bailey Company and The Erie County
Investment Co.&nbsp; If those shares were included, the number of shares
beneficially held by all directors and executive officers as a group would be
2,150,487 and the percentage of class would be 51.51%.</p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less
than one percent.</p>

<p class=MsoNormal style='margin-left:31.35pt;text-indent:-31.35pt'>**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under
SEC rules, beneficial ownership includes shares over which the individual or
entity has voting or investment power and any shares which the individual or
entity has the right to acquire within sixty days.</p>

<p class=MsoFooter align=center style='text-align:center'>9</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>


<p class=MsoNormal style='line-height:1.0pt'><a name="_Toc92016743"></a><a
name="_Toc89839951"></a><a name="_Toc89839456">&nbsp;</a></p>







<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in'><b>Executive
officers</b><b>:</b> The executive
officers of Good Times Restaurants are as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr style='height:17.1pt'>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal style='margin-left:17.1pt;text-align:justify'><b><u>Name</u></b></p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'><b><u>Age</u></b></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal align=center style='margin-left:8.85pt;text-align:center'><b><u>Position</u></b></p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:17.1pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'><b><u>Date Began
  With Company</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>James A. DeBolt</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>46</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>VP of Franchise Sales &amp;
  Development</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>October 2007</p>
  </td>
 </tr>
 <tr>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Boyd E. Hoback</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>52</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>President &amp; CEO</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>September 1987</p>
  </td>
 </tr>
 <tr>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Susan M. Knutson</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>49</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>Controller</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>September 1987</p>
  </td>
 </tr>
 <tr style='height:11.85pt'>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal style='text-align:justify'>Scott G. LeFever</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>49</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>VP of Operations</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:11.85pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>September 1987</p>
  </td>
 </tr>
 <tr style='height:13.6pt'>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:13.6pt'>
  <p class=MsoNormal style='text-align:justify'>Robert D. Turrill</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.6pt'>
  <p class=MsoNormal align=center style='margin-left:-2.55pt;text-align:center'>59</p>
  </td>
  <td width=228 valign=top style='width:171.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.6pt'>
  <p class=MsoNormal style='margin-left:2.85pt'>VP of Marketing</p>
  </td>
  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.6pt'>
  <p class=MsoNormal style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:44.1pt;margin-bottom:.0001pt'>October 1990</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><i>James A. DeBolt</i> has been Vice
President of Franchise Sales &amp; Development since October 1, 2007 and has
been involved in franchising since 1991 including serving as Vice President of
Development for the International Franchise Association in addition to the
primary franchise development role at Taco John's International and Back Yard
Burgers, Inc.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Boyd E. Hoback.</i>&nbsp; See the
description of Mr. Hoback's business experience under &quot;Item 1 For Voting -
Election of Directors.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Susan M. Knutson </i>has been
Controller since 1993 with direct responsibility for overseeing the accounting
department, maintaining cash controls, producing budgets, financials, 10-QSBs
and 10-KSBs and preparing all information for the annual audit.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Scott G. LeFever</i> has been Vice
President of Operations since August 1995, and has been involved in all phases
of operations with direct responsibility for restaurant service performance,
personnel and cost controls.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Robert D. Turrill</i> has been Vice
President of Marketing since October 1994 with direct responsibility for menu
development, purchasing, research and multi-media advertising for the Company.</p>

<p class=BodyText5 style='margin-top:6.0pt;text-indent:0in'>Executive officers serve at the
discretion of the board of directors.&nbsp; There are no family relationships among
the executive officers, directors or director nominees.</p>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
12.0pt;margin-left:0in;text-align:justify'><a name="_Toc92016744"></a><a
name="_Toc89839952"></a><a name="_Toc89839457"><b>Code of ethics</b></a>: Good Times
Restaurants has adopted a Code of Business Conduct which applies to all
directors, officers, employees and franchisees of Good Times Restaurants.&nbsp; The
Code of Business Conduct was filed with the SEC as an exhibit to the Annual
Report on Form 10-KSB for the fiscal year ended September 30, 2004. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Executive Compensation:</b>
The following table sets forth compensation information for 2007 and 2006 with
respect to the named executive officers:</p>

<p class=MsoNormal align=center style='text-align:center;text-autospace:none'><b>Summary
Compensation Table</b></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=674
 style='border-collapse:collapse'>
 <tr style='height:43.45pt'>
  <td width=104 valign=bottom style='width:78.0pt;border:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal style='text-autospace:none'>Name and Principal
  Position</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Year</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Salary
  $</p>
  </td>
  <td width=42 valign=bottom style='width:31.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Bonus
  $</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Stock
  Awards $</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Option
  Awards $<sup>3</sup></p>
  </td>
  <td width=84 valign=bottom style='width:63.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Non-Equity
  Incentive Plan Compensation $</p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Change
  in Pension Value and Nonqualified Deferred Compensation Earnings $</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>All
  Other Compensation $</p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 1.5pt 0in 1.5pt;height:43.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>Total
  $</p>
  </td>
 </tr>
 <tr>
  <td width=104 valign=top style='width:78.0pt;border:none;border-left:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='text-autospace:none'>Boyd E. Hoback</p>
  </td>
  <td width=48 valign=top style='width:.5in;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2007</p>
  </td>
  <td width=48 valign=top style='width:.5in;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>173,117</p>
  </td>
  <td width=42 valign=top style='width:31.5pt;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>15,150</p>
  </td>
  <td width=84 valign=top style='width:63.0pt;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>19,093<sup>1</sup></p>
  </td>
  <td width=72 valign=top style='width:.75in;border:none;border-right:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>207,360</p>
  </td>
 </tr>
 <tr style='height:23.5pt'>
  <td width=104 valign=top style='width:78.0pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal style='text-autospace:none'>President and Chief
  Executive Officer</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2006</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>170,000</p>
  </td>
  <td width=42 style='width:31.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=84 style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;
  height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>20,187<sup>1</sup></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:23.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>190,187</p>
  </td>
 </tr>
 <tr style='height:8.9pt'>
  <td width=104 valign=top style='width:78.0pt;border:none;border-left:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=42 valign=top style='width:31.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=78 valign=top style='width:58.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
 </tr>
 <tr>
  <td width=104 valign=top style='width:78.0pt;border-top:solid windowtext 1.0pt;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:none;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='text-autospace:none'>Scott G. Lefever</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2007</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>117,108</p>
  </td>
  <td width=42 valign=top style='width:31.5pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>6,173</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>4,585</p>
  </td>
  <td width=84 valign=top style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border:none;border-top:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>11,314<sup>2</sup></p>
  </td>
  <td width=72 valign=top style='width:.75in;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>139,180</p>
  </td>
 </tr>
 <tr style='height:22.45pt'>
  <td width=104 valign=top style='width:78.0pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal style='text-autospace:none'>Vice President of
  Operations</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2006</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>115,000</p>
  </td>
  <td width=42 style='width:31.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=84 style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>11,278<sup>2</sup></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>126,278</p>
  </td>
 </tr>
 <tr style='height:8.9pt'>
  <td width=104 valign=top style='width:78.0pt;border:none;border-left:solid windowtext 1.0pt;
  padding:0in 1.5pt 0in 1.5pt;height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=42 valign=top style='width:31.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=48 valign=top style='width:.5in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=78 valign=top style='width:58.5pt;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 1.5pt 0in 1.5pt;
  height:8.9pt'>

  </td>
 </tr>
 <tr>
  <td width=104 valign=top style='width:78.0pt;border-top:solid windowtext 1.0pt;
  border-left:solid windowtext 1.0pt;border-bottom:none;border-right:none;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal style='text-autospace:none'>Robert D. Turrill</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2007</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>90,123</p>
  </td>
  <td width=42 valign=top style='width:31.5pt;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>6,389</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 valign=top style='width:.5in;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>3,528</p>
  </td>
  <td width=84 valign=top style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border:none;border-top:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>11,396<sup>2</sup></p>
  </td>
  <td width=72 valign=top style='width:.75in;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>111,436</p>
  </td>
 </tr>
 <tr style='height:22.45pt'>
  <td width=104 valign=top style='width:78.0pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.0pt;border-right:
  none;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal style='text-autospace:none'>Vice President of
  Marketing</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>2006</p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>88,500</p>
  </td>
  <td width=42 style='width:31.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=48 style='width:.5in;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=84 style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=102 style='width:76.5pt;border:none;border-bottom:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>_</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;
  height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>13,649<sup>2</sup></p>
  </td>
  <td width=72 valign=bottom style='width:.75in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  background:#DAEEF3;padding:0in 1.5pt 0in 1.5pt;height:22.45pt'>
  <p class=MsoNormal align=center style='text-align:center;text-autospace:none'>102,149</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:-13.5pt;margin-bottom:
0in;margin-left:13.5pt;margin-bottom:.0001pt;text-indent:-13.5pt;text-autospace:
none'><sup>1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>The amount indicated for Mr. Hoback
includes an automobile allowance, long-term disability and 401(K) Plan matching
contributions.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:-13.5pt;margin-bottom:
0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
- -13.5pt;text-autospace:none'><sup>2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>The
amounts indicated for Mr. Lefever and Mr. Turrill include automobile
allowances, long-term disability, personal expenses and 401(K) Plan matching
contributions.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:-13.5pt;margin-bottom:
0in;margin-left:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
- -13.5pt;text-autospace:none'><sup>3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>The
value of stock option awards shown in this column includes all amounts expensed
in the Company's financial statements in 2007 for equity awards pursuant to Statement
of Financial Accounting Standard No 123&reg; - &quot;Share Based Payments&quot; (&quot;SFAS
123R&quot;), excluding any estimate for forfeitures.&nbsp; The Company's accounting
treatment for, and assumptions made in the valuations of, equity awards is set
forth in Note 1 of the notes to the Company's 2007 consolidated financial
statements.&nbsp; There were no option awards repriced in 2007 or 2006.</p>

<p class=MsoFooter align=center style='text-align:center'>10</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:6.0pt;margin-right:-13.5pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-autospace:none'>There
were no shares&nbsp; of SARs granted during 2007 or 2006 nor has there been any
nonqualified deferred compensation paid to any named executive officers during
2007 or 2006.&nbsp; The Company does not have any plans that provide for specified
retirement payments and benefits at, following or in connection with
retirement.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:-13.7pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-autospace:none'>The following
table sets forth information as of September 30, 2007 on all unexercised
options previously awarded to the named executive officers:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=705
 style='margin-left:-.05in;border-collapse:collapse'>
 <tr style='height:26.25pt'>
  <td width=705 nowrap colspan=12 style='width:528.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:26.25pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Outstanding
  Equity Awards at Fiscal Year-End</b></p>
  </td>
 </tr>
 <tr style='height:19.5pt'>
  <td width=422 nowrap colspan=6 style='width:316.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:19.5pt'>
  <p class=MsoNormal><b>___________________________ Option
  Awards___________________ </b></p>
  </td>
  <td width=16 colspan=2 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;
  height:19.5pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  </td>
  <td width=267 nowrap colspan=4 style='width:200.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:19.5pt'>
  <p class=MsoNormal><b>_______________ Stock
  Awards__________ </b></p>
  </td>
 </tr>
 <tr style='height:85.0pt'>
  <td width=54 valign=bottom style='width:40.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal>Name
  </p>
  </td>
  <td width=68 valign=bottom style='width:51.35pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Number of
  Securities Underlying Unexercised Options -Exercisable (#)</p>
  </td>
  <td width=102 valign=bottom style='width:76.55pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Number of
  Securities Underlying Unexercised Options -Unexercisable (#)</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Equity
  Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned
  Options (#)</p>
  </td>
  <td width=60 valign=bottom style='width:45.0pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Option
  Exercise Price $</p>
  </td>
  <td width=66 colspan=2 valign=bottom style='width:49.5pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Option
  Expiration Date</p>
  </td>
  <td width=66 colspan=2 valign=bottom style='width:49.5pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Number of
  Shares or Units of Stock That Have Not Vested (#)</p>
  </td>
  <td width=60 valign=bottom style='width:44.95pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Market Value
  of Shares or Units of Stock That Have Not Vested ($)</p>
  </td>
  <td width=72 valign=bottom style='width:54.05pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Equity
  Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That
  Have Not Vested (#)</p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:none;border-bottom:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:85.0pt'>
  <p class=MsoNormal align=center style='text-align:center'>Equity
  Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or
  Other Rights That Have Not Vested ($)</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;border:none;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal>Boyd
  E. Hoback</p>
  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;border:none;
  background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>9,590</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;border:none;
  background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;border:none;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;border:none;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.31</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;border:none;
  background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/08</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;border:none;
  background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:44.95pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:54.05pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>30,361</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.50</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/08</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>19,231</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.12</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/09</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,500</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.38</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/10</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>50,000</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$1.75</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/11</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>3,750</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.70</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/12</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>3,900</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.60</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/13</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>12,000</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.11</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/14</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>8,500</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$5.68</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/15</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=top style='width:40.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap style='width:51.35pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.55pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>19,000 <sup>(1)</sup></p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$6.38</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>11/17/16</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 nowrap valign=bottom style='width:40.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=60 nowrap valign=bottom style='width:44.95pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=72 nowrap valign=bottom style='width:54.05pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal>Scott
  G. Lefever</p>
  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>1,260</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.70</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/12</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,580</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.60</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/13</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>5,750</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.11</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/14</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>5,750</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$5.68</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/15</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>5,750 <sup>(1)</sup></p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$6.38</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>11/17/16</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 nowrap valign=bottom style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=60 nowrap valign=bottom style='width:44.95pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=72 nowrap valign=bottom style='width:54.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;background:#DAEEF3;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal>Robert
  D. Turrill</p>
  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>14,507</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.50</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/08</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:44.95pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap valign=bottom style='width:54.05pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;background:#DAEEF3;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>12,821</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.12</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/09</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;background:#DAEEF3;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,460</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$2.70</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/12</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;background:#DAEEF3;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,460</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.60</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/13</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;background:#DAEEF3;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>4,425</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$3.11</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/14</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;background:#DAEEF3;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>4,425</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$5.68</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>10/01/15</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=54 valign=bottom style='width:40.5pt;background:#DAEEF3;padding:
  0in 5.4pt 0in 5.4pt;height:12.75pt'>

  </td>
  <td width=68 nowrap valign=bottom style='width:51.35pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.55pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>4,425 <sup>(1)</sup></p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>$6.38</p>
  </td>
  <td width=66 nowrap colspan=2 valign=bottom style='width:49.5pt;background:
  #DAEEF3;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>11/17/16</p>
  </td>
  <td width=66 nowrap colspan=2 style='width:49.5pt;background:#DAEEF3;
  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:44.95pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=72 nowrap style='width:54.05pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;background:#DAEEF3;padding:0in 5.4pt 0in 5.4pt;
  height:12.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
 </tr>
 <tr height=0>
  <td width=54 style='border:none'></td>
  <td width=68 style='border:none'></td>
  <td width=102 style='border:none'></td>
  <td width=78 style='border:none'></td>
  <td width=60 style='border:none'></td>
  <td width=60 style='border:none'></td>
  <td width=6 style='border:none'></td>
  <td width=9 style='border:none'></td>
  <td width=57 style='border:none'></td>
  <td width=60 style='border:none'></td>
  <td width=72 style='border:none'></td>
  <td width=78 style='border:none'></td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:-27.0pt;margin-bottom:
0in;margin-left:-9.0pt;margin-bottom:.0001pt;text-indent:-13.5pt'><sup>1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </sup>The options
were granted on November 17, 2006. Assuming continued employment with the
Company, the shares under the option agreements will become exercisable per a
vesting schedule beginning on November 17, 2007 continuing through November 17,
2010.</p>

<p class=MsoFooter align=center style='text-align:center'>11</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:12.0pt;margin-right:-27.0pt;margin-bottom:
12.0pt;margin-left:-9.0pt;text-indent:-13.5pt'>The following table sets forth
compensation information for 2007 with respect to directors:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=685
 style='border-collapse:collapse'>
 <tr style='height:15.75pt'>
  <td width=685 nowrap colspan=8 style='width:513.9pt;border:solid windowtext 1.0pt;
  border-right:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Director
  Compensation Table</b></p>
  </td>
 </tr>
 <tr style='height:77.25pt'>
  <td width=114 valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>Name</p>
  </td>
  <td width=67 valign=bottom style='width:50.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>Fees Earned
  or Paid in Cash ($)</p>
  </td>
  <td width=60 valign=bottom style='width:45.0pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>Stock Awards
  ($)</p>
  </td>
  <td width=66 valign=bottom style='width:49.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>Option
  Awards ($) <sup>1</sup></p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>Non-Equity
  Incentive Plan Compensation ($)</p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>Change in
  Pension Value and Nonqualified Deferred Compensation Earnings $</p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>All Other
  Compensation $ <sup>2</sup></p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:77.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>Total $</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Geoffrey
  R. Bailey</p>
  </td>
  <td width=67 nowrap valign=bottom style='width:50.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=60 nowrap valign=bottom style='width:45.0pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>7,673</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap valign=bottom style='width:58.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'>9,673</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=top style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Ron
  Goodson</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,100</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>7,673</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'>9,773</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 nowrap valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>David
  Grissen</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,000</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>7,673</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'>9,673</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Eric
  W. Reinhard </p>
  </td>
  <td width=67 nowrap valign=bottom style='width:50.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>7,673</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>12,600</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'>20,273</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 valign=top style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Richard
  J. Stark</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,100</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>7,673</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'>9,773</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 nowrap valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Alan
  A. Teran</p>
  </td>
  <td width=67 nowrap style='width:50.35pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>2,100</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap style='width:49.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>7,673</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='margin-right:.05in;text-align:center'>9,773</p>
  </td>
 </tr>
 <tr style='height:14.25pt'>
  <td width=114 nowrap valign=bottom style='width:85.55pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal>Boyd
  E. Hoback <sup>3</sup></p>
  </td>
  <td width=67 nowrap valign=bottom style='width:50.35pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=60 nowrap style='width:45.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=66 nowrap valign=bottom style='width:49.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=96 nowrap style='width:1.0in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap style='width:76.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=102 nowrap valign=bottom style='width:76.5pt;border-top:none;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='text-align:center'>-</p>
  </td>
  <td width=78 nowrap style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
  <p class=MsoNormal align=center style='margin-right:-.2in;text-align:center'>0</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:-.25in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'><sup>1</sup>&nbsp;&nbsp; The value of
stock option awards shown in this column includes all amounts expensed in the
Company's financial statements in 2007 for equity awards pursuant to SFAS 123R,
excluding any estimate for forfeitures.&nbsp; The Company's accounting treatment for,
and assumptions made in the valuation of equity awards are set forth in Note 1
of the notes to the Company's 2007 consolidated financial statements. There
were no option awards re-priced in 2007.</p>

<p class=MsoNormal style='margin-right:-.25in;text-align:justify'><sup>2&nbsp;&nbsp;&nbsp; </sup>The amount
indicated for Mr. Reinhard represents an expense allowance in his role as
Chairman.</p>

<p class=MsoNormal style='margin-right:-.25in;text-align:justify'><sup>3&nbsp;&nbsp;&nbsp; </sup>Mr. Hoback is
an employee director and does not receive additional fees for service as a
member of the Board.</p>

<p class=00BodyText5 style='text-align:justify;text-indent:0in'>As of September
30, 2007, the following directors held options to purchase the following number
of shares of our common stock:&nbsp; Mr. Bailey 10,000 shares; Mr. Goodson 8,000
shares; Mr. Grissen 8,000 shares; Mr. Reinhard 12,500 shares; Mr. Stark 10,000
shares; Mr. Teran 10,000 shares; and Mr. Hoback 158,832 shares.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;text-align:justify'><a name="_Toc92016746"></a><a
name="_Toc89839954"></a><a name="_Toc89839459">A description of the standard
compensation arrangements (such as fees for committee service, service as
chairman of the board or a committee, and meeting attendance is set forth in
the section entitled &quot;Directors' Compensation&quot; on page 8 of the proxy
statement.</a></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;text-align:justify'><b>Employment Agreement:</b>&nbsp; Mr. Hoback
entered into an employment agreement with us in October 2001 and the terms of
the agreement were revised effective October 2007 for compliance with Section
409A of the IRS code.&nbsp; The revised agreement provides for his employment as
president and chief executive officer for two years from the date of the
agreement at a minimum salary of $190,000 per year, terminable by us only for
cause.&nbsp; The agreement provides for payment of one year's salary and benefits in
the event that change of ownership control results in a termination of his
employment or termination other than for cause.&nbsp; This agreement renews
automatically unless specifically not renewed by the board of directors.&nbsp; Mr.
Hoback's compensation, including salary, expense allowance, bonus and any
equity award, is reviewed and set annually by the Compensation Committee.&nbsp;&nbsp; Mr.
Hoback's bonus is based on the company achieving certain Earnings Before
Interest, Taxes, Depreciation and Amortization (&quot;EBITDA&quot;) targets for the year.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Other Employment Arrangements:</b>&nbsp; Mr. Lefever
and Mr. Turrill are employed as &quot;employees at will&quot; and do not have any written
employment agreements.&nbsp; However, their compensation, including salary, expense
allowance, bonus and any equity awards, is reviewed and approved by the
Compensation Committee annually.&nbsp;&nbsp; They participate in a bonus program that is
based on both the company's level of EBITDA for the year and achieving certain
operating metrics and sales targets. </p>

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clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Certain relationships and related
transactions</b><b>:</b> In February
2005, we issued 1,240,000 shares of our Series B Convertible Preferred Stock,
including 180,000 shares to The Erie County Investment Co, a substantial holder
of our common stock and member of The Bailey Group.&nbsp; In June 2006, we exercised
our mandatory conversion rights under the terms of the Series B preferred stock
to convert all of those shares into a total of 1,240,000 shares of our common
stock.&nbsp; Under the agreements for the Series B preferred stock financing, The
Bailey Group currently has the right to elect three directors, provided that
two directors meet the NASDAQ independence standards.&nbsp; Furthermore, the other
investors in the Series B preferred stock financing currently have the right to
elect three directors.&nbsp; The number of director positions subject to these
provisions will decrease proportionally to the extent that the original
investors sell or otherwise transfer the common stock into which the Series B
shares have been converted.&nbsp; An additional provision of the Series B preferred
stock financing restricts, for as long as the original investors hold at least
two-thirds of the common stock into which the Series B shares have been
converted, our ability to increase the size of the board of directors above
seven directors unless we first receive approval from the holders of at least
three-fourths of all outstanding shares of common stock.&nbsp; Geoffrey R. Bailey,
Richard J. Stark and Alan A. Teran are the current directors designated by The
Bailey Group, and Ron Goodson, David Grissen and Eric W. Reinhard are the
current directors designated by the other investors.&nbsp; Geoffrey R. Bailey is a
director of The Erie County Investment Co., which owns 99% of The Bailey
Company.&nbsp; The Bailey Company and The Erie County Investment Co. are principal
stockholders of us.&nbsp; Geoffrey R. Bailey's father, Paul T. Bailey, is the
principal owner of The Erie County Investment Co.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Our corporate headquarters are located in a
building owned by The Bailey Company and in which The Bailey Company also has
its corporate headquarters.&nbsp; We currently lease our executive office space of
approximately 3,693 square feet from The Bailey Company for approximately $54,000
per year.&nbsp; The lease will expire September 30, 2008.&nbsp; We anticipate extending
the lease on terms similar to the current lease.</p>

<p class=BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>The
Bailey Company is also the owner of two franchised Good Times Drive Thru
restaurants which are located in Thornton and Loveland, Colorado.&nbsp; The Bailey
Company has entered into two franchise and management agreements with us, and
payments under those agreements totaled $90,000 for the fiscal year ended
September 30, 2007.</p>

<p class=BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-indent:0in'>On
December 3, 2007, we entered into a development agreement with Zen Partners LLC
that is comprised of a Development Agreement, a Management Agreement and a Site
Selection, Construction Management and Pre-Opening Services Agreement.&nbsp; David
Grissen, a significant stockholder and a member of our board of directors, has
a 20% ownership interest in Zen Partners LLC.&nbsp; The agreements provide for the
development of up to twenty-five restaurants with a five year development
schedule for up to ten restaurants with an option to develop an additional
fifteen restaurants, exercisable any time during the initial five year period.&nbsp;
We will operate the restaurants utilizing our employees on the same basis as we
would company-owned restaurants; however, Zen Partners LLC will provide all
development and operating capital.&nbsp; For each restaurant that is developed, we
will receive a monthly management fee of 5% of gross operating revenues for the
restaurant, and a services fee of $25,000.&nbsp; We may provide a limited lease
guarantee on the initial three restaurants developed, for which we will receive
a lease guaranty fee equal to 1% of net sales of the restaurant for so long as
the lease guaranty is in effect.&nbsp; We may also arrange sale leaseback
transactions for sites of the restaurants developed, for which we will receive
a sale leaseback fee of $7,500 per restaurant.&nbsp; We will also participate in the
ongoing profitability of the restaurants by receiving an incentive fee equal to
(i) 30% of the incentive income (as defined in the Management Agreement) per
year until Zen Partners LLC has received a 25% return on its net equity
investment and (ii) 20% of the incentive income per year thereafter.&nbsp; The total
future amounts of these fees and participations, if any, to be received by us,
and the interest therein of David Grissen, in connection with this transaction
are not currently determinable.</p>

<p class=MsoNormal style='margin-top:12.0pt;text-align:justify'><a
name="_Toc92016747"></a><a name="_Toc89839955"></a><a name="_Toc89839460"><b>Section 16(a)
beneficial ownership reporting compliance</b></a><b>:</b> Under Section
16(a) of the Securities Exchange Act of 1934, directors, executive officers and
persons who own more than ten percent of Good Times Restaurants common stock
must disclose their initial beneficial ownership of the common stock and any changes
in that ownership in reports which must be filed with the SEC and Good Times
Restaurants. The SEC has designated specific deadlines for these reports and
Good Times Restaurants must identify in this proxy statement those persons who
did not file these reports when due.</p>

<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-align:justify'>Based
solely on a review of the reports filed with Good Times Restaurants and written
representations received from reporting persons Good Times Restaurants believes
that during the fiscal year ended September 30, 2007 all Section 16(a) filing
requirements for its officers, directors, and more than ten percent
shareholders were complied with on a timely basis.</p>

<p class=00TitleL style='margin-top:12.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;page-break-after:auto'><a name="_Toc92016773"></a><a
name="_Toc89839956"></a><a name="_Toc89839461">ITEM 2 FOR VOTING -- APPROVAL OF 2008
OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN</a></p>

<p class=00Normal style='margin-bottom:6.0pt;text-align:justify'>We are seeking
stockholder approval of the 2008 Omnibus Equity Incentive Compensation Plan
(the &quot;2008 Plan&quot;) to authorize the issuance of nonqualified stock options,
incentive stock options, stock appreciation rights, restricted stock,
restricted stock units, performance shares, performance units and stock-based
awards to employees, non-employee directors, and consultants as equity-based
incentive compensation under the 2008 Plan.&nbsp; The purpose of the 2008 Plan is to
promote our success and enhance our value by linking the personal interests of
the participants to those of our stockholders, and by providing participants
with an incentive for outstanding performance.&nbsp; The 2008 Plan is further
intended to provide flexibility to us in our ability to attract, motivate and
retain the services of participants upon whose judgment, interest and special
effort our success is substantially dependent.</p>

<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The 2008 Plan shall serve as the successor to our
2001 Stock Option Plan, as amended (the &quot;Predecessor Plan&quot;), and no further
awards shall be made under the Predecessor Plan from and after the effective
date of the 2008 Plan.&nbsp; All outstanding awards under the Predecessor Plan
immediately prior to the effective date of the 2008 Plan shall be incorporated
into the 2008 Plan and shall accordingly be treated as awards under the 2008
Plan.&nbsp; However, each such award shall continue to be governed solely by the
terms and conditions of the instrument evidencing such grant or issuance, and,
except as otherwise expressly provided in the 2008 Plan or by the Committee
that administers the 2008 Plan, no provision of the 2008 Plan shall affect or
otherwise modify the rights or obligations of holders of such incorporated
awards.</p>

<p class=MsoFooter align=center style='text-align:center'>13</p>



<div class=MsoNormal align=center style='text-align:center'>

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clear=all style='page-break-before:always'>










<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>The 2008 Plan covers a stated total of 150,000
shares of common stock, plus any remaining shares available for grant under the
Predecessor Plan.&nbsp; As of December 6, 2007, there were 38,130 remaining shares
of common stock available for grant under the Predecessor Plan.&nbsp; The approval
of the 2008 Plan will ensure that we have a sufficient number of shares of
common stock available to continue issuing incentive compensation awards for
the foreseeable future.&nbsp; On December 6, 2007, the closing price of our common
stock as reported on the NASDAQ Capital Market was $6.00 per share.</p>

<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Although the levels and recipients of awards under
the 2008 Plan are not currently determinable since such grants will be based in
part upon the future performance and the relative incentive compensation
objectives for possible recipients, stock options were granted under the
Predecessor Plan in fiscal 2006 and fiscal 2007 to purchase the total number of
shares of common stock as follows:</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:5.4pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'><b>Stock Option Award Recipient</b></p>
  </td>
  <td width=84 style='width:63.0pt;border:solid windowtext 1.0pt;border-left:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-bottom:6.0pt;text-align:center;
  page-break-after:avoid'><b>Fiscal 2006</b></p>
  </td>
  <td width=84 style='width:63.0pt;border:solid windowtext 1.0pt;border-left:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-bottom:6.0pt;text-align:center;
  page-break-after:avoid'><b>Fiscal 2007</b></p>
  </td>
 </tr>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:8.1pt;text-indent:-.9pt;page-break-after:avoid'>Boyd E. Hoback, Chief Executive Officer</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>8,500</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>19,000</p>
  </td>
 </tr>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:8.1pt;text-indent:-.9pt;page-break-after:avoid'>Scott G. Lefever, Vice President of Operations</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>5,750</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>5,750</p>
  </td>
 </tr>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:8.1pt;text-indent:-.9pt;page-break-after:avoid'>Robert D. Turrill, Vice President of Marketing</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>4,425</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>4,425</p>
  </td>
 </tr>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:8.1pt;text-indent:-.9pt;page-break-after:avoid'>All current executive officers as a group</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>4,400</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>4,400</p>
  </td>
 </tr>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:8.1pt;text-indent:-.9pt;page-break-after:avoid'>All current directors and director nominees who are not executive
  officers as a group</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>18,500</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>12,000</p>
  </td>
 </tr>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:8.1pt;text-indent:-.9pt;page-break-after:avoid'>All employees, including all current officers who are not executive
  officers, as a group</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>13,700</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>19,200</p>
  </td>
 </tr>
 <tr>
  <td width=504 style='width:5.25in;border:solid windowtext 1.0pt;border-top:
  none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
  margin-left:8.1pt;text-indent:-.9pt;page-break-after:avoid'>Total</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>55,275</p>
  </td>
  <td width=84 style='width:63.0pt;border-top:none;border-left:none;border-bottom:
  solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=00Normal align=center style='margin-top:0in;margin-right:0in;
  margin-bottom:6.0pt;margin-left:.5in;text-align:center;text-indent:-.25in;
  page-break-after:avoid'>64,775</p>
  </td>
 </tr>
</table>

<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We anticipate that in fiscal 2008 a similar number
of persons will be designated to participate in and be eligible to receive
awards under the 2008 Plan although the number of shares of common stock that
underlie such awards will depend on our performance results and compensation
objectives.&nbsp; Although the 2008 Plan provides flexibility to us to issue
different types of awards, we intend in the near future to primarily grant 50,000
in relative share amounts generally consistent with our past practices.</p>

<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Any shares issued in connection with a stock
option or stock appreciation right shall be counted against the total share
authorization limit as one share for every one share issued; for awards other
than stock options and stock appreciation rights, any shares issued shall be
counted against the total share authorization limit as two shares for every one
share issued.&nbsp; The maximum aggregate number of shares that may be issued
through nonqualified stock options shall be equal to the total share
authorization.&nbsp; The maximum aggregate number of shares that may be issued
through incentive stock options shall be equal to the total share
authorization.&nbsp; To the extent there are grants, cancellations or forfeitures
under the Predecessor Plan or the 2008 Plan, the remaining shares available for
grant under the 2008 Plan shall change accordingly.</p>

<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>On December 6, 2007, our board of directors
approved the 2008 Plan.&nbsp; Under applicable NASDAQ rules, we must obtain
stockholder approval of the 2008 Plan.&nbsp; In addition, stockholder approval of
the 2008 Plan is necessary to allow us to ensure that compensation paid under
the 2008 Plan can be eligible for the &quot;performance-based compensation&quot; exemption
from the limits on tax deductibility imposed by Section 162(m) of the Internal
Revenue Code and to permit us to issue incentive stock options in accordance
with Section 422 of the Internal Revenue Code.</p>

<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>No person who (i) has been a director or executive
officer of the Company since the beginning of its last fiscal year, (ii) is a
director nominee, or (iii) is an associate of any of the foregoing persons, has
any substantial interest, direct or indirect, by security holdings or
otherwise, in this proposal to approve the 2008 Plan, except with respect to
any future awards that may be granted under the 2008 Plan, which must be
approved by our Compensation Committee or our board of directors.</p>

<p class=00Normal style='margin-top:6.0pt;text-align:justify'>The following
is a summary of the principal features of the 2008 Plan, a copy of which is
attached to this proxy statement as Annex A.&nbsp; In addition, we will furnish a
copy of the 2008 Plan to any stockholder upon written request to the secretary.</p>

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<p class=00Normal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Administration</b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The
Compensation Committee of our board of directors, or any other duly authorized
committee of our board of directors appointed by our board of directors,
referred to herein as the Committee, is responsible for administering the 2008
Plan.&nbsp; The Committee shall have full and exclusive discretion in interpreting the
terms and the intent of the 2008 Plan and other any agreement made in
connection with the 2008 Plan, determining eligibility for awards, and adopting
such rules, regulations and guidelines for administering the 2008 Plan as the
Committee may deem necessary or proper.&nbsp; Such authority shall include, but not
be limited to, selecting award recipients, establishing all award terms and
conditions and, subject to the 2008 Plan, adopting modifications and
amendments, or subplans to the 2008 Plan or any award agreement, including,
without limitation, any that are necessary or appropriate to comply with laws
or compensation practices of the jurisdictions in which we and our affiliates
operate. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Eligibility
and Participation</b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Individuals
eligible to participate in the 2008 Plan include our non-employee directors and
all current employees and consultants of us or our affiliates.&nbsp; Subject to the
provisions of the 2008 Plan, the Committee may, from time to time, in its sole
discretion select from among eligible employees, non-employee directors and
consultants, those to whom awards shall be granted under the 2008 Plan, and
shall determine in its discretion the nature, terms, conditions and amount of
each award.&nbsp; We currently have six non-employee directors and approximately 20
employees and consultants.&nbsp; Based on our prior stock option awards granted
under our Predecessor Plan, we currently expect that approximately 26 individuals
may be granted awards under the 2008 Plan during fiscal 2008.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Duration of
the 2008 Plan</b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The 2008 Plan
shall be adopted and become effective on the date that our stockholders approve
the 2008 Plan and it shall remain in effect, subject to the right of the
Committee or our board of directors to amend or terminate the 2008 Plan at any
time, until the earlier of the tenth anniversary of the effective date of the
2008 Plan or when all shares of common stock subject to the 2008 Plan have been
purchased or acquired according to the provisions of the 2008 Plan.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Stock Options</b></p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Subject to the
terms and provisions of the 2008 Plan, incentive and nonqualified stock options
may be granted to participants in consideration for the services and benefit
that they provide to us in such number, and upon such terms, and at any time
and from time to time as shall be determined by the Committee.&nbsp; Notwithstanding
the foregoing, no incentive stock options may be granted more than 10 years
after the effective date of the 2008 Plan.&nbsp; Each stock option granted to a
participant shall expire at such time as the Committee shall determine at the
time of grant; provided, however, that no stock option shall be exercisable
later than the tenth anniversary date of its grant and provided further that no
incentive stock option granted to a significant stockholder, as defined in the
2008 Plan, shall be exercisable later than the fifth anniversary of the date of
its grant.&nbsp; Stock options granted under the 2008 Plan shall be exercisable at
such times and on the occurrence of such events, and be subject to such
restrictions and conditions, as the Committee shall in each instance approve,
which need not be the same for each grant or for each participant. </p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The stock
option price for each grant of a stock option shall be determined by the
Committee and shall be specified in the award agreement.&nbsp; The stock option
price for a nonqualified stock option may include a stock option price based on
100% of the fair market value of the shares of common stock on the date of
grant, a stock option price that is set at a premium to the fair market value
of the shares of common stock on the date of grant, or a stock option price
that is indexed to the fair market value of the shares of common stock on the
date of grant, with the index determined by the Committee in its discretion.&nbsp;
The stock option price for an incentive stock option shall be not less than
100% of the fair market value of the shares of common stock on the date of
grant; provided that the stock option price for an incentive stock option
granted to a significant stockholder, as defined in the 2008 Plan, shall be not
less than 110% of the fair market value of the shares of common stock.</p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Stock
Appreciation Rights</b></p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Subject to the
terms and conditions of the 2008 Plan, stock appreciation rights, or SARs, may
be granted to participants at any time and from time to time and upon such
terms as shall be determined by the Committee in its discretion.&nbsp; The Committee
may grant freestanding SARs, tandem SARs, or any combination of these forms of
SARs.&nbsp; A tandem SAR means a SAR that the Committee specifies is granted in
connection with a related stock option pursuant to the 2008 Plan, the exercise
of which shall require forfeiture of the right to purchase a share of common
stock under the related stock option (and when a share of common stock is
purchased under the stock option, the tandem SAR shall similarly be cancelled)
or a SAR that is granted in tandem with a stock option but the exercise of such
stock option does not cancel the SAR, but rather results in the exercise of the
related SAR.&nbsp; Regardless of whether a stock option is granted coincident with a
SAR, a SAR is not a tandem SAR unless so specified by the Committee at time of
grant.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Restricted Stock and Restricted Stock
Unit Awards</b></p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Subject to the
terms and conditions of the 2008 Plan, the Committee, at any time and from time
to time, may grant shares of restricted stock or restricted stock units to
participants in such amounts and upon such terms as the Committee shall
determine.&nbsp; Restricted stock are shares of common stock that are subject to a
period of restriction.&nbsp; A restricted stock unit is an award denominated in
units subject to a period of restriction, with a right to receive shares of
common stock or cash or a combination thereof upon settlement of the award.&nbsp;
During the period of restriction, restricted stock and restricted stock units
are subject to forfeiture based on the passage of time, the achievement of
performance criteria, or upon the occurrence of other events as determined by
the Committee.&nbsp; To the extent required by law, participants holding shares of
restricted stock shall have the right to exercise full voting rights with
respect to those shares of common stock during the period of restriction.&nbsp; A
participant shall have no voting rights with respect to any restricted stock
units.</p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The Committee
shall impose, in the award agreement at the time of grant or anytime
thereafter, such other conditions or restrictions on any shares of restricted
stock or restricted stock units granted pursuant to the 2008 Plan as it may
deem advisable, including, without limitation, a requirement that participants
pay a stipulated purchase price for each share of restricted stock or each
restricted stock unit, restrictions based upon the achievement of specific
performance criteria, time-based restrictions on vesting following the
attainment of the performance criteria, time-based restrictions, restrictions
under applicable laws or under the requirements of any stock exchange or market
upon which such shares are listed or traded, or holding requirements or sale
restrictions placed on the shares of common stock by us upon vesting of such
restricted stock or restricted stock units.</p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>During the
period of restriction, participants holding shares of restricted stock or
restricted stock units granted under the 2008 Plan may, if the Committee so
determines, be credited with dividends paid with respect to the underlying
shares or dividend equivalents while they are so held in a manner and with such
restrictions as may be determined by the Committee in its sole discretion. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Performance
Shares and Performance Units</b></p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Subject to the
terms and conditions of the 2008 Plan, the Committee, at any time and from time
to time, may grant performance shares or performance units to participants in
such amounts and upon such terms as the Committee shall determine.&nbsp; Each
performance share shall have an initial value equal to the fair market value of
a share of common stock on the date of grant.&nbsp; Each performance unit shall have
an initial value that is established by the Committee at the time of grant
which may be less than, equal to, or greater than the fair market value of a
share of common stock.&nbsp; The Committee shall set performance criteria for a
performance period in its discretion, which, depending on the extent to which
they are met, will determine, in the manner determined by the Committee and set
forth in the award agreement, the value or number of each performance share or
performance unit that will be paid to the participant. </p>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Subject to the
terms of the 2008 Plan, the Committee, in its sole discretion, may pay earned
performance shares or performance units in the form of cash or in shares of
common stock (or in a combination thereof) equal to the value of the earned
performance shares or performance units, as applicable, at the end of the
applicable performance period.&nbsp; Any shares of common stock may be granted
subject to any restrictions deemed appropriate by the Committee.&nbsp; The Committee
shall determine whether participants holding performance shares will receive
dividend equivalents with respect to dividends declared with respect to the
performance shares.&nbsp; <a name="_Toc180913301"></a><a name="_Toc180916250"></a><a
name="_Toc180916388"></a><a name="_Toc180916526"></a><a name="_Toc180916718"></a><a
name="_Toc180916975"></a><a name="_Toc180917113"></a><a name="_Toc181171936"></a><a
name="_Toc181180439"></a><a name="_Toc181182400"></a><a name="_Toc184458891"></a><a
name="_Toc184520951"></a><a name="_Toc184521044"></a></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Stock-Based
Awards</b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The Committee
may grant other types of equity-based or equity-related awards not otherwise
described by the terms of the 2008 Plan (including the grant or offer for sale
of unrestricted shares of common stock) in such amounts and subject to such
terms and conditions, including, but not limited to, being subject to
performance criteria, or in satisfaction of such obligations, as the Committee
shall determine.&nbsp; Such awards may involve the transfer of actual shares of
common stock to participants, or payment in cash or otherwise of amounts based
on the value of shares of common stock.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Performance
Measures</b></p>

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<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Notwithstanding
any other terms of the 2008 Plan, the vesting, payability or value (as
determined by the Committee) of each award other than a stock option or SAR
that, at the time of grant, the Committee intends to be performance-based
compensation to a covered employee, shall be determined by the attainment of
one or more performance goals as determined by the Committee in conformity with
Section 162(m) of the Internal Revenue Code.&nbsp; A list of general performance
measures on which performance goals may be based is set forth in Article 11 of
the 2008 Plan.&nbsp; The Committee shall specify in writing, by resolution or
otherwise, the participants eligible to receive such an award (which may be
expressed in terms of a class of individuals) and the performance goal(s)
applicable to such awards within 90 days after the commencement of the period
to which the performance goal(s) relate(s), or such earlier time as required to
comply with Section&nbsp;162(m) of the Internal Revenue Code.&nbsp; No such award
shall be payable unless the Committee certifies in writing, by resolution or
otherwise, that the performance goal(s) applicable to the award were
satisfied.&nbsp; In no case may the Committee increase the value of an award of
performance-based compensation above the maximum value determined under the
performance formula by the attainment of the applicable performance goal(s),
but the Committee may retain the discretion to reduce the value below such
maximum.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Deferrals</b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The Committee
may permit or require a participant to defer such participant's receipt of any
award, or payment in settlement or exercise of any award, provided that any
such deferral must comply with the applicable requirements of Section 409A of
the Internal Revenue Code.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Tax Matters </b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The following
is a brief summary of advice received from our counsel regarding the principal
United States federal income tax consequences of benefits under the 2008 Plan
under present laws and regulations: </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Incentive
Stock Options:&nbsp; The grant of an incentive stock option will not result in any
immediate tax consequences to us or the optionee.&nbsp; An optionee will not
recognize taxable income, and we will not be entitled to any deduction upon the
timely exercise of an incentive stock option, but the excess of the fair market
value of the shares of common stock acquired over the stock option price will
be an item of tax preference for purposes of the alternative minimum tax.&nbsp; If
the optionee does not dispose of the shares of common stock acquired within one
year after their receipt (and within two years after the stock option was
granted), gain or loss recognized on the subsequent disposition of the shares
of common stock will be treated as long-term capital gain or loss.&nbsp; Capital
losses of individuals are deductible only against capital gains and a limited
amount of ordinary income.&nbsp; In the event of an earlier disposition, the
optionee will recognize ordinary taxable income in an amount equal to the
lesser of (i) the excess of the fair market value of the shares of common stock
on the date of exercise over the stock option price, or (ii) if the disposition
is a taxable sale or exchange, the amount of any gain recognized.&nbsp; Upon such a
disqualifying disposition, we will be entitled to a deduction in the same
amount and at the same time as the optionee recognizes such ordinary taxable
income. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Nonqualified
Stock Options:&nbsp; The grant of a nonqualified stock option will not result in any
immediate tax consequences to us or the optionee.&nbsp; Upon the exercise of a
nonqualified stock option, the optionee will recognize ordinary taxable income,
and we will be entitled to a deduction, equal to the difference between the
stock option price and the fair market value of the shares of common stock
acquired at the time of exercise. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Stock
Appreciation Rights:&nbsp; The grant of either a tandem SAR or a freestanding SAR
will not result in any immediate tax consequences to us or the grantee.&nbsp; Upon
the exercise of either a tandem SAR or a freestanding SAR, any cash received
and the fair market value on the exercise date of any shares of common stock
received will constitute ordinary taxable income to the grantee.&nbsp; We will be
entitled to a deduction in the same amount and at the same time. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Restricted
Stock:&nbsp; A grantee normally will not recognize taxable income upon an award of
restricted stock, and we will not be entitled to a deduction, until the
termination of the restrictions.&nbsp; Upon such termination, the grantee will
recognize ordinary taxable income in an amount equal to the fair market value
of the shares of common stock at that time, plus the amount of any dividends
and interest thereon to which the grantee then becomes entitled. However, a
grantee may elect to recognize ordinary taxable income in the year the
restricted stock is awarded in an amount equal to its fair market value at that
time, determined without regard to the restrictions.&nbsp; We will be entitled to a
deduction in the same amount and at the same time as the grantee recognizes
income, subject to the limitations of Section 162(m) of the Internal Revenue
Code. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Restricted
Stock Units, Performance Shares and Performance Units: &nbsp;The grant of a
restricted stock unit, performance share or performance unit will not result in
any immediate tax consequences to us or the grantee.&nbsp; Upon payment of a
restricted stock unit, performance share or performance unit, the grantee will
recognize ordinary taxable income in an amount equal to the fair market value
of the shares of common stock or cash received at that time.&nbsp; We will be
entitled to a deduction in the same amount and at the same time, subject to the
limitations of Section 162(m) of the Internal Revenue Code. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Payouts of
Performance Compensation Awards:&nbsp; The designation of an award of restricted
stock or performance shares or the grant of a restricted stock unit or a
performance unit as a performance compensation award will not change the tax
treatment described above to an employee who receives such an award or grant.&nbsp;
Such a designation will, however, enable such award or grant to qualify as
performance-based compensation not subject to the $1 million limitation on
deductible compensation under Section 162(m) of the Internal Revenue Code.
Applicable taxes required by law will be withheld from all amounts paid in
satisfaction of an award.&nbsp; The amount of the withholding will generally be
determined with reference to the closing price of the shares of common stock as
reported on the NASDAQ Capital Market on the date of determination. </p>

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<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>Golden
Parachute Tax and Section 280G of the Internal Revenue Code:&nbsp; If an award is
accelerated as a result of a change in control of us, all or a portion of the
value of the award at that time may be a &quot;parachute payment&quot; under
Section 280G of the Internal Revenue Code for certain employees and other
individuals who perform services for us.&nbsp; Section 280G generally provides that
if parachute payments equal or exceed three times an award holder's average W-2
compensation for the five tax years preceding the year of the change in
control, we will not be permitted to claim its deduction with respect to any
&quot;excess parachute payments&quot; made to the individual.&nbsp; An &quot;excess
parachute payment&quot; generally is the portion of a parachute payment that
exceeds such individual's historical average compensation.&nbsp; Section 280G of the
Internal Revenue Code generally applies to employees or other individuals who
perform services for us if within the 12 month period preceding the change in
control the individual is one of our officers, a stockholder owning more than
one percent of the our stock, or a member of the group consisting of the lesser
of the highest paid one percent of our employees or our highest paid 250
employees.&nbsp; A recipient of an excess parachute payment is subject to a 20
percent excise tax on such excess parachute payment under Section 4999 of the
Internal Revenue Code. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The discussion
set forth above is intended only as a summary and does not purport to be a
complete enunciation or analysis of all potential tax consequences relevant to
recipients of awards under the 2008 Plan.&nbsp; We have not undertaken to discuss
the tax treatment of awards under the 2008 Plan in connection with a merger,
consolidation, or similar transaction.&nbsp; Such treatment will depend on the terms
of the transaction and the method of dealing with the awards in connection
therewith. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Change of
Control </b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Accelerated
Vesting and Payment:</b>&nbsp;
Subject to the provisions of the 2008 Plan or as otherwise provided in the
award agreement, in the event of a change of control, unless otherwise
specifically prohibited under law or by the rules and regulations of a national
securities exchange or market on which the shares are listed or traded: </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any
and all stock options and SARs granted shall be accelerated to become
immediately exercisable in full; </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any
period of restriction and other restrictions imposed on restricted stock or
restricted stock units shall lapse, and restricted stock units shall be
immediately settled and payable; </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
target payout opportunities attainable under all outstanding awards of
performance-based restricted stock, performance-based restricted stock units,
performance shares and performance units (including, but not limited to, awards
intended to be performance-based compensation) shall be deemed to have been
fully earned based on targeted performance being attained as of the effective
date of the change of control, and:</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:1.0in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
vesting of all awards denominated in shares of common stock shall be
accelerated as of the effective date of the change of control, and shall be
paid out to participants within 30 days following the effective date of the
change of control; and </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:1.0in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Awards
denominated in cash shall be paid to participants in cash within 30 days
following the effective date of the change of control; </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon
a change of control, unless otherwise specifically provided in a written
agreement entered into between the participant and us or an affiliate, the
Committee shall immediately vest and pay out all other stock-based awards as
determined by the Committee; and </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Committee shall have the ability to unilaterally determine that all outstanding
awards are cancelled upon a change in control, and the value of such awards, as
determined by the Committee in accordance with the terms of the 2008 Plan and
the award agreement, be paid out in cash in an amount based on the change of
control price within a reasonable time subsequent to the change in control;
provided, however, that no such payment shall be made on account of an
incentive stock option using a value higher than the fair market value on the
date of settlement. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Alternate
Awards:</b>&nbsp;
Subject to certain conditions set forth in the 2008 Plan, no cancellation,
acceleration of vesting, lapsing of restrictions, payment of an award, cash
settlement, or other payment shall occur with respect to any award if the
Committee reasonably determines in good faith prior to the occurrence of a
change of control that such award shall be honored or assumed, or new rights
substituted therefore by any successor, all as described in the 2008 Plan.</p>

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<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Compliance
with Section 280G of the Internal Revenue Code</b>:&nbsp; In the
event that any accelerated award vesting or payment received or to be received
by a participant pursuant to the 2008 Plan, referred to herein as a benefit,
would (i) constitute a &quot;parachute payment&quot; within the meaning of and subject to
Section 280G of the Internal Revenue Code and (ii) but for the limitations set
forth in the 2008 Plan, be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code, then such benefit shall be reduced to the extent
necessary so that no portion of the benefit will be subject to the excise tax,
as determined in good faith by the Committee; provided, however, that if, in
the absence of any such reduction (or after such reduction), the participant
believes that the benefit or any portion thereof (as reduced, if applicable)
would be subject to the excise tax, the benefit shall be reduced (or further
reduced) to the extent determined by the participant in his or her discretion
so that the excise tax would not apply.&nbsp; If, notwithstanding any such reduction
(or in the absence of such reduction), the Internal Revenue Service determines
that the participant is liable for the excise tax as a result of the benefit,
then the participant shall be obligated to return to us, within 30 days of such
determination by the Internal Revenue Service, a portion of the benefit sufficient
such that none of the benefit retained by the participant constitutes a
&quot;parachute payment&quot; within the meaning of Section 280G of the Internal Revenue
Code that is subject to the excise tax.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><a
name="_Toc181172030"></a><a name="_Toc181180533"></a><a name="_Toc181182494"></a><a
name="_Toc184458982"></a><a name="_Toc184521042"></a><a name="_Toc184521135"><b>Compliance
with Section 409A of the Internal Revenue Code</b></a><b>:</b>&nbsp; To the
extent applicable, it is intended that the 2008 Plan and any awards made
hereunder shall not provide for the payment of &quot;deferred compensation&quot; within
the meaning of Section 409A of the Internal Revenue Code or shall be structured
in a manner and have such terms and conditions that would not cause a
participant to be subject to taxes and interest pursuant to Section 409A of the
Internal Revenue Code.&nbsp; Notwithstanding anything in the 2008 Plan or in any
award agreement to the contrary, to the extent that any amount or benefit that
would constitute &quot;deferred compensation&quot; for purposes of Section 409A of the
Internal Revenue Code would otherwise be payable or distributable under the
2008 Plan or any award agreement by reason of the occurrence of a change of
control or the participant's disability or separation from service, such amount
or benefit will not be payable or distributable to the participant by reason of
such circumstance unless (i) the circumstances giving rise to such change of
control, disability or separation from service meet the description or
definition of &quot;change in control event,&quot; &quot;disability,&quot; or &quot;separation from
service,&quot; as the case may be, in Section 409A of the Internal Revenue Code, and
(ii) the payment or distribution of such amount or benefit would otherwise
comply with Section 409A of the Internal Revenue Code and not subject the
participant to taxes and interest pursuant to Section 409A of the Internal
Revenue Code (which may require, if the participant is a &quot;specified employee&quot;
within the meaning of Section 409A of the Internal Revenue Code, that the
payment date shall not be earlier than the date that is six months after the
date of the participant's separation from service).&nbsp; This provision does not
prohibit the vesting of any award or the vesting of any right to eventual
payment or distribution of any amount or benefit under the 2008 Plan or any
award agreement.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Amendment,
Modification, Suspension, and Termination </b></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>The Committee
or our board of directors may, at any time and from time to time, alter, amend,
modify, suspend, or terminate the 2008 Plan in whole or in part; provided
however, that: </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Without
the prior approval of our stockholders, stock options and SARs issued under the
2008 Plan will not be repriced, replaced, or regranted such that the stock
option price of a previously granted stock option or the grant price of a
previously granted SAR is effectively reduced from the original stock option
price or grant price. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No
amendment or modification which would increase the total number of shares of
common stock available for issuance under the 2008 Plan or the total number of
shares of common stock available for incentive stock options under the 2008
Plan shall be effective unless approved by our stockholders. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To
the extent necessary under any applicable law, regulation, or securities
exchange or market requirement, no amendment shall be effective unless approved
by our stockholders in accordance with applicable law, regulation, or
securities exchange or market requirement. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Adjustment of
Awards:</b>&nbsp;
The Committee may make appropriate proportionate adjustments or substitutions
in the terms and conditions of, and the criteria included in, awards in
recognition of unusual or nonrecurring events affecting us or our financial
statements or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent unintended dilution or enlargement of the
benefits or potential benefits intended to be made available under the 2008
Plan. </p>

<h3><b>Recommendation of the board of
directors:&nbsp; The board of directors recommends voting &quot;For&quot; the approval of the
2008 Plan.</b></h3>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>INDEPENDENT
PUBLIC ACCOUNTANTS</b><b>:</b> The board of
directors appointed HEIN &amp; ASSOCIATES LLP as Good Times Restaurants'
independent auditors for the fiscal year ended September 30, 2007 and fiscal
year 2008, and to perform other accounting services.&nbsp; Representatives of HEIN
&amp; ASSOCIATES LLP are expected to be present at the annual meeting of shareholders,
and will have the opportunity to make a statement if they so desire and to
respond to appropriate shareholder questions.<a name="_Toc92016774"></a><a
name="_Toc89839957"></a><a name="_Toc89839462"></a></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Audit Fees</b><b>:</b> The aggregate
fees billed for professional services rendered by HEIN &amp; ASSOCIATES LLP for
its audit of the Company's annual financial statements for the fiscal year
ended September 30, 2007, and its reviews of the financial statements included
in the Company's Forms 10-QSBs for fiscal year 2007 were $63,325 compared to $62,504
in fees for the fiscal year ended 2006.<a name="_Toc92016775"></a><a
name="_Toc89839958"></a><a name="_Toc89839463"></a></p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:0in'><b>Audit Related
Fees:</b>
There
were no aggregate fees billed by HEIN &amp; ASSOCIATES LLP for assurance and
related services that are reasonably related to the performance of the audit or
review of our financial statements and are not reported under &quot;Audit Fees&quot; for
the fiscal years ended September 30, 2007 and September 30, 2006.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Tax Fees:</b> The aggregate
fees billed by HEIN &amp; ASSOCIATES LLP for the preparation and review of the
Company's tax returns for the fiscal year ended September 30, 2007 were $8,375
compared to $7,975 in fees for the fiscal year ended September 30, 2006.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>All Other Fees</b><b>:</b> The aggregate
fees billed to Good Times Restaurants for all other services rendered by HEIN
&amp; ASSOCIATES LLP for fiscal year 2007 were $11,983 compared to $15,118 in
fees for the fiscal year ended September 30, 2006.&nbsp; These fees related to a
401(k) plan audit and services provided for the Company's Uniform Franchise
Offering Circular registration and filings.<a name="_Toc92016776"></a><a
name="_Toc89839959"></a><a name="_Toc89839464"></a></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Audit Committee:</b> Policy on
Pre-Approval Policies of Auditor Services: Under the provisions of the Audit
Committee Charter, all audit services and all permitted non-audit services
(unless subject to a de minimis exception allowed by law) provided by our
independent auditors, as well as fees and other compensation to be paid to
them, must be approved in advance by our Audit Committee.&nbsp; All audit and other
services provided by HEIN &amp; ASSOCIATES LLP during the fiscal year ended
September 30, 2007, and the related fees as discussed above, were approved in
advance in accordance with SEC rules and the provisions of the Audit Committee
Charter.&nbsp; There were no other services or products provided by HEIN &amp;
ASSOCIATES LLP to us or related fees during the fiscal year ended September 30,
2007 except as discussed above.<a name="_Toc92016777"></a><a name="_Toc89839960"></a><a
name="_Toc89839465"></a></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Auditor Independence</b><b>:</b> The audit
committee of the board of directors has considered the effect that the
provision of the services described above under the caption &quot;All Other Fees&quot;
may have on the independence of HEIN &amp; ASSOCIATES LLP.&nbsp; The audit committee
has determined that provision of those services is compatible with maintaining
the independence of HEIN &amp; ASSOCIATES LLP as the Company's principal
accountants.</p>

<h3><a name="_Toc92016778"></a><a name="_Toc89839961"></a><a
name="_Toc89839466">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
FUTURE
STOCKHOLDER PROPOSALS</a>: Any Good Times Restaurants stockholder proposal for the
annual meeting of stockholders in 2009 must be received by Good Times
Restaurants by August 15, 2008 for the proposal to be included in the Good
Times Restaurants' proxy statement and form of proxy for that meeting.&nbsp; If
notice of a proposal for which a stockholder will conduct his or her own proxy
solicitation is not received by Good Times Restaurants by November 12, 2008, such
proposal will be considered untimely pursuant to Rules 14a-4 and 14a-5(e) of
the Securities Exchange Act of 1934, and the person named in proxies solicited
by the Good Times Restaurants board of directors may use his discretionary
authority when the matter is raised at the meeting, without including any
discussion of the matter in the proxy statement.</h3>

<h3><a name="_Toc92016779"></a><a
name="_Toc89839962"></a><a name="_Toc89839467">OTHER
MATTERS</a>: The board of directors does not know of any other matters
to be brought before the annual meeting.&nbsp; If any other matter not discussed in
this proxy statement is properly brought before the annual meeting, the persons
named in the enclosed proxy intend to vote such proxy in accordance with his or
her best judgment on that matter.</h3>

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<h3><a name="_Toc92016780">INCORPORATION OF DOCUMENTS BY
REFERENCE</a>: Our Annual
Report on Form 10-KSB, including financial statements, for the fiscal year
ended September 30, 2007, is being mailed to stockholders along with this proxy
statement.&nbsp; The following information from the Form 10-KSB is incorporated into
this proxy statement by reference:</h3>

<p class=BulletList style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:23.05pt;text-indent:-23.05pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the
information under the caption &quot;Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations&quot;;</p>

<p class=BulletList style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:23.05pt;text-indent:-23.05pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the
information under the caption &quot;Item 8. Financial Statements&quot;; and</p>

<p class=BulletList style='margin-top:6.0pt;margin-right:0in;margin-bottom:
12.0pt;margin-left:23.05pt;text-indent:-23.05pt'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the
information under the caption &quot;Item 9. Changes In and Disagreements with
Accountants on Accounting and Financial Disclosure&quot;.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>BY
ORDER OF THE BOARD OF DIRECTORS</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>/s/
Boyd E. Hoback</p>

<p class=MsoNormal><i>Boyd
E. Hoback</i></p>

<p class=MsoNormal>President
and Chief Executive Officer</p>

<p class=MsoFooter align=center style='text-align:center'>December 6,
200721</p>



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<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC.</b></p>

<p class=00TitleC style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>2008
OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN</p>

<h3><a name="_Toc184521043"></a><a
name="_Toc184520950"></a><a name="_Toc184458890"></a><a name="_Toc181182399"></a><a
name="_Toc181180438"></a><a name="_Toc181171935"></a><a name="_Toc180917112"></a><a
name="_Toc180916974"></a><a name="_Toc180916717"></a><a name="_Toc180916525"></a><a
name="_Toc180916387"></a><a name="_Toc180916249"></a><a name="_Toc180913300">ESTABLISHMENT, PURPOSE AND DURATION</a></h3>

<h3><u>Establishment
of the Plan</u>.&nbsp; Good Times Restaurants Inc., a Nevada corporation (the
&quot;Company&quot;), hereby establishes an incentive compensation plan to be known as
the 2008 Omnibus Equity Incentive Compensation Plan (the &quot;Plan&quot;).&nbsp; The Plan
permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Shares, Performance Units and Stock-Based Awards.&nbsp; The Plan shall be adopted
and become effective, if approved by the Company's stockholders, on the date of
such stockholder approval on January 24, 2008 (the &quot;Effective Date&quot;) and shall
remain in effect as provided in Section 1.3 hereof. </h3>

<h3><a
name="_Toc180913302"></a><a name="_Toc184521045"></a><a name="_Toc184520952"></a><a
name="_Toc184458892"></a><a name="_Toc181182401"></a><a name="_Toc181180440"></a><a
name="_Toc181171937"></a><a name="_Toc180917114"></a><a name="_Toc180916976"></a><a
name="_Toc180916719"></a><a name="_Toc180916527"></a><a name="_Toc180916389"></a><a
name="_Toc180916251"><u>Purpose of the Plan</u></a>.&nbsp; The purpose
of the Plan is to promote the success and enhance the value of the Company by
linking the personal interests of the Participants to those of the Company's
stockholders, and by providing Participants with an incentive for outstanding
performance.&nbsp; The Plan is further intended to provide flexibility to the
Company in its ability to attract, motivate and retain the services of
Participants upon whose judgment, interest and special effort the success of
the Company is substantially dependent. </h3>

<h3><a
name="_Toc180913303"></a><a name="_Toc184521046"></a><a name="_Toc184520953"></a><a
name="_Toc184458893"></a><a name="_Toc181182402"></a><a name="_Toc181180441"></a><a
name="_Toc181171938"></a><a name="_Toc180917115"></a><a name="_Toc180916977"></a><a
name="_Toc180916720"></a><a name="_Toc180916528"></a><a name="_Toc180916390"></a><a
name="_Toc180916252"><u>Duration of the Plan</u></a>.&nbsp; The Plan
shall commence as of the Effective Date, as described in Section 1.1 herein,
and shall remain in effect, subject to the right of the Committee or the Board
to amend or terminate the Plan at any time pursuant to Article 16 hereof, until
the earlier of (i) the tenth anniversary of the Effective Date, or (ii) all
Shares subject to the Plan have been purchased or acquired according to the
Plan's provisions.</h3>

<h3><a
name="_Toc180913304"></a><a name="_Toc184521047"></a><a name="_Toc184520954"></a><a
name="_Toc184458894"></a><a name="_Toc181182403"></a><a name="_Toc181180442"></a><a
name="_Toc181171939"></a><a name="_Toc180917116"></a><a name="_Toc180916978"></a><a
name="_Toc180916721"></a><a name="_Toc180916529"></a><a name="_Toc180916391"></a><a
name="_Toc180916253"><u>Successor Plan</u></a>.&nbsp; This Plan shall
serve as the successor to the Company's 2001 Stock Option Plan, as amended (the
&quot;Predecessor Plan&quot;), and no further awards shall be made under the Predecessor
Plan from and after the Effective Date of this Plan.&nbsp; All outstanding awards
under the Predecessor Plan immediately prior to the Effective Date of this Plan
are hereby incorporated into this Plan and shall accordingly be treated as
Awards under this Plan.&nbsp; However, each such award shall continue to be governed
solely by the terms and conditions of the instrument evidencing such grant or
issuance, and, except as otherwise expressly provided herein or by the
Committee, no provision of this Plan shall affect or otherwise modify the
rights or obligations of holders of such incorporated awards.
</h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Any Shares of the Company's common stock
reserved for issuance under the Predecessor Plan in excess of the number of
Shares as to which awards have been awarded thereunder shall be transferred
into this Plan upon the Effective Date and shall become available for grant
under this Plan.&nbsp; Any Shares related to awards granted or issued under the
Predecessor Plan that after the Effective Date may lapse, expire, terminate, or
are cancelled, are settled in cash in lieu of the Company's common stock, are
tendered (either by actual delivery or attestation) to pay the option price, or
are used to satisfy any tax withholding requirements shall be deemed available
for issuance or reissuance under Section 4.1 of this Plan.</p>

<h3><a name="_Toc184521048"></a><a
name="_Toc184520955"></a><a name="_Toc184458895"></a><a name="_Toc181182404"></a><a
name="_Toc181180443"></a><a name="_Toc181171940"></a><a name="_Toc180917117"></a><a
name="_Toc180916979"></a><a name="_Toc180916722"></a><a name="_Toc180916530"></a><a
name="_Toc180916392"></a><a name="_Toc180916254"></a><a name="_Toc180913305">DEFINITIONS</a></h3>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Whenever used in the Plan, the following
terms shall have the respective meanings set forth below, unless the context
clearly requires otherwise, and when such meaning is intended, such term shall
be capitalized. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913306"></a><a
name="_Toc180917118"></a><a name="_Toc180916980"></a><a name="_Toc180916723"></a><a
name="_Toc180916531"></a><a name="_Toc180916393"></a><a name="_Toc180916255"></a>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Affiliate</u>&quot; shall have the
meaning ascribed to such term in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act, with reference to the Company, and shall
also include any corporation, partnership, joint venture, limited liability
company or other entity in which the Company owns, directly or indirectly, at
least fifty percent (50%) of the total combined Voting Power of such
corporation or of the capital interest or profits interest of such partnership
or other entity.
</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913307"></a><a
name="_Toc180917119"></a><a name="_Toc180916981"></a><a name="_Toc180916724"></a><a
name="_Toc180916532"></a><a name="_Toc180916394"></a><a name="_Toc180916256"></a>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Award</u>&quot; means, individually
or collectively, a grant under this Plan of NQSOs, ISOs, SARs, Restricted
Stock, Restricted Stock Units, Performance Shares, Performance Units or
Stock-Based Awards, in each case subject to the terms of this Plan. </p>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913308"></a><a name="_Toc180917120"></a><a name="_Toc180916982"></a><a
name="_Toc180916725"></a><a name="_Toc180916533"></a><a name="_Toc180916395"></a><a
name="_Toc180916257">A-</a>1</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Award
Agreement</u>&quot;
means either (i) a written agreement entered into by the Company or an
Affiliate and a Participant setting forth the terms and provisions applicable
to Awards granted under this Plan; or (ii) a written statement issued by the
Company or an Affiliate to a Participant describing the terms and provisions of
such Award.&nbsp;
All Award Agreements shall be deemed to incorporate the provisions of the
Plan.&nbsp; An Award Agreement need not be identical to other Award Agreements
either in form or substance.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913309"></a><a
name="_Toc180917121"></a><a name="_Toc180916983"></a><a name="_Toc180916726"></a><a
name="_Toc180916534"></a><a name="_Toc180916396"></a><a name="_Toc180916258"></a>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Beneficial
Owner</u>&quot; or &quot;<u>Beneficial Ownership</u>&quot; shall have the meaning ascribed to such
term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913310"></a><a
name="_Toc180917122"></a><a name="_Toc180916984"></a><a name="_Toc180916727"></a><a
name="_Toc180916535"></a><a name="_Toc180916397"></a><a name="_Toc180916259"></a>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Board</u>&quot;
or &quot;<u>Board of Directors</u>&quot; means the Board of Directors of the Company. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180917123"></a><a
name="_Toc180916985"></a><a name="_Toc180916728"></a><a name="_Toc180916536"></a><a
name="_Toc180916398"></a><a name="_Toc180916260"></a><a name="_Toc180913311"></a>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a
name="_Toc180913313"></a><a name="_Toc180917125"></a><a name="_Toc180916987"></a><a
name="_Toc180916730"></a><a name="_Toc180916538"></a><a name="_Toc180916400"></a><a
name="_Toc180916262"></a>&quot;<u>Change
of Control</u>&quot;
shall occur if any of the following events occur: </p>

<h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify;text-indent:1.0in'><a name="_Toc180917126"></a><a
name="_Toc180916539">Any Person acquires Beneficial Ownership, directly or
indirectly, of securities of the Company representing fifty percent (50%) or
more of the combined Voting Power of the Company's securities;</a>
</h3>

<h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify;text-indent:1.0in'><a name="_Toc180917127"></a><a
name="_Toc180916540">Within any twenty-four (24) month period, the individuals
who were Directors of the Company at the beginning of such period (the
&quot;Incumbent Directors&quot;) shall cease to constitute at least a majority of the
Board of Directors or the Board of Directors of any successor to the Company;
provided, however, that any Director elected or nominated for election to the
Board of Directors by a majority of the Incumbent Directors then still in
office shall be deemed to be an Incumbent Director for purposes of this
Section&nbsp;2.6(ii);</a> </h3>

<h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify;text-indent:1.0in'><a name="_Toc180917128"></a><a
name="_Toc180916541">The stockholders of the Company approve a merger,
consolidation, share exchange, division, sale or other disposition of all or
substantially all of the assets of the Company which is consummated (a
&quot;Corporate Event&quot;), and immediately following the consummation of which the
stockholders of the Company immediately prior to such Corporate Event do not
hold, directly or indirectly, a majority of the Voting Power of (i) in the case
of a merger or consolidation, the surviving or resulting entity, (ii) in the
case of a share exchange, the acquiring entity, or (iii) in the case of a
division or a sale or other disposition of assets, each surviving, resulting or
acquiring entity which, immediately following the relevant Corporate Event,
holds more than twenty-five percent (25%) of the consolidated assets of the
Company immediately prior to such Corporate Event; or</a>
</h3>

<h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify;text-indent:1.0in'><a name="_Toc180917129"></a><a
name="_Toc180916542">Any other event occurs which the Board of Directors
declares to be a Change of Control.</a> </h3>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:.5in'>Notwithstanding the foregoing, the
Committee may modify the definition of a Change of Control for a particular
Award or Awards as the Committee deems appropriate to comply with Section 409A
of the Code.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913314"></a><a
name="_Toc180917130"></a><a name="_Toc180916988"></a><a name="_Toc180916731"></a><a
name="_Toc180916543"></a><a name="_Toc180916401"></a><a name="_Toc180916263"></a>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Change
of Control Price</u>&quot;
means the highest price per Share offered in conjunction with any transaction
resulting in a Change of Control (as determined in good faith by the Committee
if any part of the offered price is payable other than in cash) or, in the case
of a Change of Control occurring solely by reason of a change in the
composition of the Board, the highest Fair Market Value of the Company's common
stock on any of the thirty (30) trading days immediately preceding the date on
which a Change of Control occurs. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913315"></a><a
name="_Toc180917131"></a><a name="_Toc180916989"></a><a name="_Toc180916732"></a><a
name="_Toc180916544"></a><a name="_Toc180916402"></a><a name="_Toc180916264"></a>(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Code</u>&quot; means the U.S.
Internal Revenue Code of 1986, as amended from time to time, or any successor
thereto.
</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913316"></a><a
name="_Toc180917132"></a><a name="_Toc180916990"></a><a name="_Toc180916733"></a><a
name="_Toc180916545"></a><a name="_Toc180916403"></a><a name="_Toc180916265"></a>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Committee</u>&quot; means the
Compensation Committee of the Board of Directors, or any other duly authorized
committee of the Board appointed by the Board to administer the Plan. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913317"></a><a
name="_Toc180917133"></a><a name="_Toc180916991"></a><a name="_Toc180916734"></a><a
name="_Toc180916546"></a><a name="_Toc180916404"></a><a name="_Toc180916266"></a>(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Company</u>&quot; means Good Times
Restaurants Inc., a Nevada corporation, and any successor thereto as provided
in Article 18 herein.
</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913318"></a><a
name="_Toc180917134"></a><a name="_Toc180916992"></a><a name="_Toc180916735"></a><a
name="_Toc180916547"></a><a name="_Toc180916405"></a><a name="_Toc180916267"></a>(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Constructively
Terminated</u>&quot;
means, unless otherwise specified by the Committee in the Award Agreement, a
voluntary termination of employment by an Employee within ten (10) business
days after any of the following actions by the Company, an Affiliate, or a
person acting on behalf of either: </p>

<h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify;text-indent:1.0in'><a name="_Toc180917135"></a><a
name="_Toc180916548">Requiring the Employee to be based as his/her regular or
customary place of employment at any office or location more than fifty (50)
miles from the location at which the Employee performed his/her duties
immediately prior to the Change of Control, or in a state other than the one in
which the Employee performed his/her duties immediately prior to the Change of
Control, in each case except for travel reasonably required in the performance
of the individual's responsibilities;</a> </h3>

<h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify;text-indent:1.0in'><a name="_Toc180917136"></a><a
name="_Toc180916549">Reducing the Employee's base salary below the rate in
effect at the time of a Change of Control; or</a></h3>

<h3 style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:
0in;text-align:justify;text-indent:1.0in'><a name="_Toc180917137"></a><a
name="_Toc180916550">Failing to pay the Employee's base salary, other wages or
employment-related benefits as required by law.</a></h3>

<p class=MsoFooter align=center style='text-align:center'>A-2</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br
clear=all style='page-break-before:always'>










<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Consultant</u>&quot;
means a natural person who provides bona fide consulting or advisory services
to the Company or an Affiliate, and such services are not in connection with
the offer or sale of securities in a capital-raising transaction and do not
directly or indirectly promote or maintain a market for the Company's
securities.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Covered
Employee</u>&quot; means an Employee who is, or who the Committee expects to become,
a &quot;covered employee&quot; within the meaning of Section&nbsp;162(m) of the Code.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913319"></a><a
name="_Toc180917138"></a><a name="_Toc180916993"></a><a name="_Toc180916736"></a><a
name="_Toc180916551"></a><a name="_Toc180916406"></a><a name="_Toc180916268"></a>(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Director</u>&quot; means any
individual who is a member of the Board of Directors of the Company. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180917139"></a><a
name="_Toc180916994"></a><a name="_Toc180916737"></a><a name="_Toc180916552"></a><a
name="_Toc180916407"></a><a name="_Toc180916269"></a><a name="_Toc180913320"></a>(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Dividend
Equivalent</u>&quot; means a right with respect to an Award to receive cash, Shares
or other property equal in value and form to dividends declared by the Board
and paid with respect to outstanding Shares.&nbsp; Dividend Equivalents shall not
apply to an Award unless specifically provided for in the Award Agreement, and
if specifically provided for in the Award Agreement shall be subject to such
terms and conditions set forth in the Award Agreement as the Committee shall
determine.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Employee</u>&quot;
means any employee of the Company or an Affiliate.&nbsp; Directors who are not
otherwise employed by the Company or an Affiliate shall not be considered
Employees under this Plan.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913321"></a><a
name="_Toc180917140"></a><a name="_Toc180916995"></a><a name="_Toc180916738"></a><a
name="_Toc180916553"></a><a name="_Toc180916408"></a><a name="_Toc180916270"></a>(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;Exchange<u>
Act</u>&quot;
means the Securities Exchange Act of 1934, as amended from time to time, or any
successor act thereto.
</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913322"></a><a
name="_Toc180917141"></a><a name="_Toc180916996"></a><a name="_Toc180916739"></a><a
name="_Toc180916554"></a><a name="_Toc180916409"></a><a name="_Toc180916271"></a>(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Fair
Market Value</u>&quot; or &quot;<u>FMV</u>&quot; means, unless otherwise required by any
applicable provision of the Code or any regulations thereunder or by any
applicable accounting standard for the Company's desired accounting for Awards,
a price that is based on the opening, closing, actual, high, low or average
selling prices of a Share on the NASDAQ Stock Market (&quot;NASDAQ&quot;) or other
established stock exchange (or exchanges) on the applicable date, the preceding
trading day, the next succeeding trading day, or an average of trading days
(within not more than 30 days before and not more than 30 days after the
applicable valuation date), as determined by the Committee in its discretion.&nbsp;
Such definition(s) of FMV shall be specified in each Award Agreement and may
differ depending on whether FMV is in reference to the grant, exercise,
vesting, settlement or payout of an Award.&nbsp; If, however, the accounting
standards used to account for equity awards granted to Participants are
substantially modified subsequent to the Effective Date of the Plan, the
Committee shall have the ability to determine FMV with respect to an Award
based on the relevant facts and circumstances.&nbsp; If Shares are not traded on an
established stock exchange, FMV shall be determined by the Committee based on
objective criteria consistently applied. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913323"></a><a
name="_Toc180917142"></a><a name="_Toc180916997"></a><a name="_Toc180916740"></a><a
name="_Toc180916555"></a><a name="_Toc180916410"></a><a name="_Toc180916272"></a>(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Fiscal
Year</u>&quot;
means the Company's fiscal year commencing on October&nbsp;1 and ending on
September&nbsp;30 or such other fiscal year as approved by the Board. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913324"></a><a
name="_Toc180917143"></a><a name="_Toc180916998"></a><a name="_Toc180916741"></a><a
name="_Toc180916556"></a><a name="_Toc180916411"></a><a name="_Toc180916273"></a>(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Freestanding
SAR</u>&quot;
means an SAR that is not a Tandem SAR, as described in Article 7 herein.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913325"></a><a
name="_Toc180917144"></a><a name="_Toc180916999"></a><a name="_Toc180916742"></a><a
name="_Toc180916557"></a><a name="_Toc180916412"></a><a name="_Toc180916274"></a>(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Grant
Price</u>&quot;
means the price against which the amount payable is determined upon exercise of
an SAR.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913326"></a><a
name="_Toc180917145"></a><a name="_Toc180917000"></a><a name="_Toc180916743"></a><a
name="_Toc180916558"></a><a name="_Toc180916413"></a><a name="_Toc180916275"></a>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Incentive
Stock Option</u>&quot; or &quot;<u>ISO</u>&quot; means an Option to purchase Shares
granted under Article 6 herein and that is designated as an Incentive Stock
Option and is intended to meet the requirements of Section 422 of the Code, or
any successor provision.
</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180917146"></a><a
name="_Toc180917001"></a><a name="_Toc180916744"></a><a name="_Toc180916559"></a><a
name="_Toc180916414"></a><a name="_Toc180916276"></a><a name="_Toc180913327"></a>(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Non-Employee
Director</u>&quot; means a Director who is not an Employee.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913328"></a><a
name="_Toc180917147"></a><a name="_Toc180917002"></a><a name="_Toc180916745"></a><a
name="_Toc180916560"></a><a name="_Toc180916415"></a><a name="_Toc180916277"></a>(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Nonqualified
Stock Option</u>&quot; or &quot;<u>NQSO</u>&quot; means an Option to purchase Shares,
granted under Article 6 herein, which is not intended to be an Incentive Stock
Option or that otherwise does not meet the requirements for treatment as an
Incentive Stock Option under Section&nbsp;422 of the Code, or any successor provision.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913329"></a><a
name="_Toc180917148"></a><a name="_Toc180917003"></a><a name="_Toc180916746"></a><a
name="_Toc180916561"></a><a name="_Toc180916416"></a><a name="_Toc180916278"></a>(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Option</u>&quot; means the
conditional right to purchase Shares at a stated Option Price for a specified
period of time in the form of an Incentive Stock Option or a Nonqualified Stock
Option subject to the terms of this Plan.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913330"></a><a
name="_Toc180917149"></a><a name="_Toc180917004"></a><a name="_Toc180916747"></a><a
name="_Toc180916562"></a><a name="_Toc180916417"></a><a name="_Toc180916279"></a>(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Option
Price</u>&quot;
means the price at which a Share may be purchased by a Participant pursuant to
an Option, as determined by the Committee. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913331"></a><a
name="_Toc180917150"></a><a name="_Toc180917005"></a><a name="_Toc180916748"></a><a
name="_Toc180916563"></a><a name="_Toc180916418"></a><a name="_Toc180916280"></a>(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Participant</u>&quot; means an
Employee, Non-Employee Director or Consultant who has been selected to receive
an Award, or who has an outstanding Award granted under the Plan.</p>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913332"></a><a name="_Toc180917151"></a><a name="_Toc180917006"></a><a
name="_Toc180916749"></a><a name="_Toc180916564"></a><a name="_Toc180916419"></a><a
name="_Toc180916281">A-</a>3</p>



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<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Performance-Based
Compensation</u>&quot;
means compensation under an Award that is granted in order to provide
remuneration solely on account of the attainment of one or more Performance
Goals under circumstances that satisfy the requirements of Section 162(m) of
the Code.
</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913333"></a><a
name="_Toc180917152"></a><a name="_Toc180917007"></a><a name="_Toc180916750"></a><a
name="_Toc180916565"></a><a name="_Toc180916420"></a><a name="_Toc180916282"></a>(cc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Performance
Goal</u>&quot;
means a performance criterion selected by the Committee for a given Award for
purposes of Article 11 based on one or more Performance Measures. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913334"></a><a
name="_Toc180917153"></a><a name="_Toc180917008"></a><a name="_Toc180916751"></a><a
name="_Toc180916566"></a><a name="_Toc180916421"></a><a name="_Toc180916283"></a>(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Performance
Measures</u>&quot;
means measures as described in Article&nbsp;11, the attainment of one or more
of which shall, as determined by the Committee, determine the vesting,
payability or value of an Award to a Covered Employee that is designated to
qualify as Performance-Based Compensation.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913335"></a><a
name="_Toc180917154"></a><a name="_Toc180917009"></a><a name="_Toc180916752"></a><a
name="_Toc180916567"></a><a name="_Toc180916422"></a><a name="_Toc180916284"></a>(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Performance
Period</u>&quot;
means the period of time during which the assigned performance criteria must be
met in order to determine the degree of payout and/or vesting with respect to
an Award.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913336"></a><a
name="_Toc180917155"></a><a name="_Toc180917010"></a><a name="_Toc180916753"></a><a
name="_Toc180916568"></a><a name="_Toc180916423"></a><a name="_Toc180916285"></a>(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Performance
Share</u>&quot;
means an Award granted under Article 9 herein and subject to the terms of this
Plan, denominated in Shares, the value of which at the time it is payable is
determined as a function of the extent to which corresponding performance
criteria have been achieved. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913337"></a><a
name="_Toc180917156"></a><a name="_Toc180917011"></a><a name="_Toc180916754"></a><a
name="_Toc180916569"></a><a name="_Toc180916424"></a><a name="_Toc180916286"></a>(gg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Performance
Unit</u>&quot;
means an Award granted under Article 9 herein and subject to the terms of this
Plan, denominated in units, the value of which at the time it is payable is
determined as a function of the extent to which corresponding performance
criteria have been achieved. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913338"></a><a
name="_Toc180917157"></a><a name="_Toc180917012"></a><a name="_Toc180916755"></a><a
name="_Toc180916570"></a><a name="_Toc180916425"></a><a name="_Toc180916287"></a>(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Period
of Restriction</u>&quot;
means the period when an Award of Restricted Stock or Restricted Stock Units is
subject to forfeiture based on the passage of time, the achievement of
performance criteria, and/or upon the occurrence of other events as determined
by the Committee, in its discretion.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913339"></a><a
name="_Toc180917158"></a><a name="_Toc180917013"></a><a name="_Toc180916756"></a><a
name="_Toc180916571"></a><a name="_Toc180916426"></a><a name="_Toc180916288"></a>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Person</u>&quot; shall have the
meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used
in Sections 13(d) and 14(d) thereof, including a &quot;group&quot; as defined in Section
13(d) thereof; provided, however, that &quot;Person&quot; shall not include (i) the
Company or any Affiliate, or (ii) any employee benefit plan (including an
employee stock ownership plan) sponsored by the Company or any Affiliate.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913340"></a><a
name="_Toc180917159"></a><a name="_Toc180917014"></a><a name="_Toc180916757"></a><a
name="_Toc180916572"></a><a name="_Toc180916427"></a><a name="_Toc180916289"></a>(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Restricted
Stock</u>&quot;
means an Award of Shares subject to a Period of Restriction, granted under
Article 8 herein and subject to the terms of this Plan. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913341"></a><a
name="_Toc180917160"></a><a name="_Toc180917015"></a><a name="_Toc180916758"></a><a
name="_Toc180916573"></a><a name="_Toc180916428"></a><a name="_Toc180916290"></a>(kk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Restricted
Stock Unit</u>&quot;
means an Award denominated in units subject to a Period of Restriction, with a
right to receive Shares or cash or a combination thereof upon settlement of the
Award, granted under Article 8 herein and subject to the terms of this Plan. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913342"></a><a
name="_Toc180917161"></a><a name="_Toc180917016"></a><a name="_Toc180916759"></a><a
name="_Toc180916574"></a><a name="_Toc180916429"></a><a name="_Toc180916291"></a>(ll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Shares</u>&quot; means shares of
common stock of the Company, $.001 par value per share.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>(mm)&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Significant
Stockholder</u>&quot; means a person who at the time of a grant of an ISO to such
person owns (or is deemed to own pursuant to Section&nbsp;424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any of its Affiliates.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913343"></a><a
name="_Toc180917162"></a><a name="_Toc180917017"></a><a name="_Toc180916760"></a><a
name="_Toc180916575"></a><a name="_Toc180916430"></a><a name="_Toc180916292"></a>(nn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Stock
Appreciation Right</u>&quot; or &quot;<u>SAR</u>&quot; means the conditional right to receive
the difference between the FMV of a Share on the date of exercise over the
Grant Price, pursuant to the terms of Article 7 herein and subject to the terms
of this Plan.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913344"></a><a
name="_Toc180917163"></a><a name="_Toc180917018"></a><a name="_Toc180916761"></a><a
name="_Toc180916576"></a><a name="_Toc180916431"></a><a name="_Toc180916293"></a>(oo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Stock-Based
Award</u>&quot;
means an equity-based or equity-related Award granted under Article 10 herein
and subject to the terms of this Plan, and not otherwise described by the terms
of this Plan.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913345"></a><a
name="_Toc180917164"></a><a name="_Toc180917019"></a><a name="_Toc180916762"></a><a
name="_Toc180916577"></a><a name="_Toc180916432"></a><a name="_Toc180916294"></a>(pp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Tandem
SAR</u>&quot;
means an SAR that the Committee specifies is granted in connection with a related
Option pursuant to Article 7 herein and subject to the terms of this Plan, the
exercise of which shall require forfeiture of the right to purchase a Share
under the related Option (and when a Share is purchased under the Option, the
Tandem SAR shall similarly be cancelled) or an SAR that is granted in tandem
with an Option but the exercise of such Option does not cancel the SAR, but
rather results in the exercise of the related SAR.&nbsp; Regardless of whether an
Option is granted coincident with an SAR, an SAR is not a Tandem SAR unless so
specified by the Committee at the time of grant.</p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><a name="_Toc180913346"></a><a
name="_Toc180917165"></a><a name="_Toc180917020"></a><a name="_Toc180916763"></a><a
name="_Toc180916578"></a><a name="_Toc180916433"></a><a name="_Toc180916295"></a>(qq)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Voting
Power</u>&quot;
shall mean such number of Voting Securities as shall enable the holders thereof
to cast all the votes which could be cast in an annual election of directors of
a company.
</p>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913347"></a><a name="_Toc180917166"></a><a name="_Toc180917021"></a><a
name="_Toc180916764"></a><a name="_Toc180916579"></a><a name="_Toc180916434"></a><a
name="_Toc180916296">A-</a>4</p>



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<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>(rr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Voting
Securities</u>&quot;
shall mean all securities entitling the holders thereof to vote in an annual
election of directors of a company.</p>

<h3><a name="_Toc184521049"></a><a
name="_Toc184520956"></a><a name="_Toc184458896"></a><a name="_Toc181182405"></a><a
name="_Toc181180444"></a><a name="_Toc181171941"></a><a name="_Toc180917167"></a><a
name="_Toc180917022"></a><a name="_Toc180916765"></a><a name="_Toc180916580"></a><a
name="_Toc180916435"></a><a name="_Toc180916297"></a><a name="_Toc180913348">ADMINISTRATION</a></h3>

<h3><a
name="_Toc180913349"></a><a name="_Toc184521050"></a><a name="_Toc184520957"></a><a
name="_Toc184458897"></a><a name="_Toc181182406"></a><a name="_Toc181180445"></a><a
name="_Toc181171942"></a><a name="_Toc180917168"></a><a name="_Toc180917023"></a><a
name="_Toc180916766"></a><a name="_Toc180916581"></a><a name="_Toc180916436"></a><a
name="_Toc180916298"><u>General</u></a>.&nbsp; The Committee shall
be responsible for administering the Plan.&nbsp; The Committee may employ attorneys,
consultants, accountants, agents and other individuals, any of whom may be an
Employee, and the Committee, the Company, and its officers and Directors shall
be entitled to rely upon the advice, opinions or valuations of any such
persons.&nbsp; All actions taken and all interpretations and determinations made by
the Committee shall be final, conclusive and binding upon the Participants, the
Company, and all other interested parties. </h3>

<h3><a
name="_Toc180913350"></a><a name="_Toc184521051"></a><a name="_Toc184520958"></a><a
name="_Toc184458898"></a><a name="_Toc181182407"></a><a name="_Toc181180446"></a><a
name="_Toc181171943"></a><a name="_Toc180917169"></a><a name="_Toc180917024"></a><a
name="_Toc180916767"></a><a name="_Toc180916582"></a><a name="_Toc180916437"></a><a
name="_Toc180916299"><u>Authority of the Committee</u></a></h3>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>.&nbsp; The Committee shall have full and
exclusive discretionary power to interpret the terms and the intent of the Plan
and any Award Agreement or other agreement ancillary to or in connection with
the Plan, to determine eligibility for Awards, and to adopt such rules,
regulations and guidelines for administering the Plan as the Committee may deem
necessary or proper.&nbsp; Such authority shall include, but not be limited to,
selecting Award recipients, establishing all Award terms and conditions and,
subject to Article 16, adopting modifications and amendments, or subplans to
the Plan or any Award Agreement, including, without limitation, any that are
necessary or appropriate to comply with the laws or compensation practices of
the jurisdictions in which the Company and Affiliates operate. </p>

<h3><a
name="_Toc180913351"></a><a name="_Toc184521052"></a><a name="_Toc184520959"></a><a
name="_Toc184458899"></a><a name="_Toc181182408"></a><a name="_Toc181180447"></a><a
name="_Toc181171944"></a><a name="_Toc180917170"></a><a name="_Toc180917025"></a><a
name="_Toc180916768"></a><a name="_Toc180916583"></a><a name="_Toc180916438"></a><a
name="_Toc180916300"><u>Delegation</u></a></h3>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>.&nbsp; The Committee may delegate to one or
more of its members any of the Committee's administrative duties or powers as
it may deem advisable; provided, however, that any such delegation shall not be
inconsistent with the provisions of Rule 16b-3 under the Exchange Act or
Section&nbsp;162(m) of the Code as to actions to be taken by the Committee in
connection therewith.</p>

<h3><a name="_Toc184521053"></a><a
name="_Toc184520960"></a><a name="_Toc184458900"></a><a name="_Toc181182409"></a><a
name="_Toc181180448"></a><a name="_Toc181171945"></a><a name="_Toc180917171"></a><a
name="_Toc180917026"></a><a name="_Toc180916769"></a><a name="_Toc180916584"></a><a
name="_Toc180916439"></a><a name="_Toc180916301"></a><a name="_Toc180913352">SHARES SUBJECT TO THE PLAN AND
MAXIMUM AWARDS</a></h3>

<h3><a
name="_Toc180913353"></a><a name="_Toc184521054"></a><a name="_Toc184520961"></a><a
name="_Toc184458901"></a><a name="_Toc181182410"></a><a name="_Toc181180449"></a><a
name="_Toc181171946"></a><a name="_Toc180917172"></a><a name="_Toc180917027"></a><a
name="_Toc180916770"></a><a name="_Toc180916585"></a><a name="_Toc180916440"></a><a
name="_Toc180916302"><u>Number of Shares Available for Awards</u></a>.&nbsp;
Subject to adjustment as provided in Section 4.2 herein, the number of Shares
hereby reserved for issuance to Participants under the Plan shall be 150,000
plus any remaining Shares available for grant under the Predecessor Plan as set
forth in Section 1.4 (such total number of Shares, including such adjustment
and remaining Shares, the &quot;Total Share Authorization&quot;).&nbsp; Any Shares issued in
connection with an Option or SAR shall be counted against the Total Share
Authorization limit as one (1) Share for every one (1) Share issued; for Awards
other than Options and SARs, any Shares issued shall be counted against the
Total Share Authorization limit as two (2) Shares for every one (1) Share
issued.&nbsp; The maximum aggregate number of Shares that may be issued through
Nonqualified Stock Options shall be equal to the Total Share Authorization.&nbsp;
The maximum aggregate number of Shares that may be issued through Incentive
Stock Options shall be equal to the Total Share Authorization.
</h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>For greater clarity, any Awards that are
not settled in Shares shall not reduce any of these reserves.&nbsp; Any Shares
related to Awards (or, after the Effective Date, awards granted under the
Predecessor Plan) which (i) terminate by expiration, forfeiture, cancellation
or otherwise without the issuance of such Shares, (ii) are settled in cash
either in lieu of Shares or otherwise, or (iii) are exchanged with the
Committee's approval for Awards not involving Shares, shall be available again
for issuance under the Plan.&nbsp; In addition, if the Option Price of any Option
granted under the Plan or the tax withholding requirements with respect to any
Award granted under the Plan are satisfied by tendering Shares to the Company
(by either actual delivery or by attestation), or if an SAR is exercised, only
the number of Shares issued, net of the Shares tendered, if any, will be deemed
delivered for purposes of determining the maximum number of Shares available
for issuance under the Plan.&nbsp; The maximum number of Shares available for
issuance under the Plan shall not be reduced to reflect any dividends or
Dividend Equivalents that are reinvested into additional Shares or credited as
additional Restricted Stock, Restricted Stock Units, Performance Shares or
Stock-Based Awards.&nbsp; The Shares available for issuance under the Plan may be
authorized and unissued Shares or treasury Shares. </p>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Unless and until the Committee determines
that an Award to a Covered Employee shall not be designed to qualify as
Performance-Based Compensation, the following limits (&quot;Award Limits&quot;) shall
apply to grants of Awards to Covered Employees under the Plan: </p>

<h3><a name="_Toc180916586"><u>Options and SAR</u></a>:&nbsp; The maximum
aggregate number of Shares that may be granted in the form of Options or Stock
Appreciation Rights, pursuant to any Award granted in any one Fiscal Year to
any one Participant, shall be 50,000. </h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180916587">A-</a>5</p>



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<h3><u>Restricted Stock/Restricted Stock Units</u>:&nbsp; The maximum
aggregate number of Shares that may be granted in the form of Restricted
Stock/Restricted Stock Units in any one Fiscal Year to any one Participant
shall be 25,000.</h3>

<h3><a name="_Toc180916588"><u>Performance
Shares/Performance Units</u></a>:&nbsp; The maximum aggregate of Performance
Shares or Performance Units in any one Fiscal Year to any one Participant shall
be 25,000, or equal to the value of 25,000 Shares determined as of the date of
vesting or payout, as applicable. </h3>

<h3><a name="_Toc180916590"><u>Stock Awards</u></a>:&nbsp; The maximum
aggregate number of Shares that may be granted in the form of Stock-Based
Awards in any one Fiscal Year to any one Participant shall be 25,000. </h3>

<h3><a
name="_Toc180913354"></a><a name="_Toc184521055"></a><a name="_Toc184520962"></a><a
name="_Toc184458902"></a><a name="_Toc181182411"></a><a name="_Toc181180450"></a><a
name="_Toc181171947"></a><a name="_Toc180917173"></a><a name="_Toc180917028"></a><a
name="_Toc180916771"></a><a name="_Toc180916591"></a><a name="_Toc180916441"></a><a
name="_Toc180916303"><u>Adjustments in Authorized Shares</u></a>.&nbsp;
In the event of any corporate event or transaction (including, but not limited
to, a change in the Shares of the Company or the capitalization of the Company)
such as a merger, consolidation, reorganization, recapitalization, separation,
stock dividend, extraordinary dividend, stock split, reverse stock split, split
up, spin-off or other distribution of stock or property of the Company,
combination of securities, exchange of securities, dividend in kind, or other
like change in capital structure or distribution (other than normal cash
dividends) to stockholders of the Company, or any similar corporate event or
transaction, the Committee shall make or provide for such adjustments or
substitutions, as applicable, in the number and kind of Shares that may be
issued under the Plan, the number and kind of Shares subject to outstanding
Awards, the Option Price or Grant Price applicable to outstanding Awards, the
Award Limits, the limit on issuing Awards other than Options granted with an
Option Price equal to at least the FMV of a Share on the date of grant or Stock
Appreciation Rights with a Grant Price equal to at least the FMV of a Share on
the date of grant, and any other value determinations applicable to outstanding
Awards or to this Plan, as are equitably necessary to prevent dilution or
enlargement of Participants' rights under the Plan that otherwise would result
from such corporate event or transaction.&nbsp; Such adjustments
shall be made automatically, without the necessity of Committee action, on the
customary arithmetical basis in the case of any stock split, including a stock
split effected by means of a stock dividend, and in the case of any other
dividend paid in Shares.</h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The Committee shall also make appropriate
adjustments in the terms of any Awards under the Plan as are equitably
necessary to reflect such corporate event or transaction and may modify any
other terms of outstanding Awards, including modifications of performance
criteria and changes in the length of Performance Periods.&nbsp; The determination
of the Committee as to the foregoing adjustments, if any, shall be conclusive
and binding on Participants under the Plan. </p>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Subject to the provisions of Article 15
and any applicable law or regulatory requirement, without affecting the number
of Shares reserved or available hereunder, the Committee may authorize the
issuance, assumption, substitution or conversion of Awards under this Plan in
connection with any such corporate event or transaction, upon such terms and
conditions as it may deem appropriate.&nbsp; Additionally, the Committee may amend
the Plan, or adopt supplements to the Plan, in such manner as it deems
appropriate to provide for such issuance, assumption, substitution or
conversion as provided in the previous sentence.</p>

<h3><a name="_Toc184521056"></a><a
name="_Toc184520963"></a><a name="_Toc184458903"></a><a name="_Toc181182412"></a><a
name="_Toc181180451"></a><a name="_Toc181171948"></a><a name="_Toc180917174"></a><a
name="_Toc180917029"></a><a name="_Toc180916772"></a><a name="_Toc180916592"></a><a
name="_Toc180916442"></a><a name="_Toc180916304"></a><a name="_Toc180913355">ELIGIBILITY AND PARTICIPATION</a></h3>

<h3><a
name="_Toc180913356"></a><a name="_Toc184521057"></a><a name="_Toc184520964"></a><a
name="_Toc184458904"></a><a name="_Toc181182413"></a><a name="_Toc181180452"></a><a
name="_Toc181171949"></a><a name="_Toc180917175"></a><a name="_Toc180917030"></a><a
name="_Toc180916773"></a><a name="_Toc180916593"></a><a name="_Toc180916443"></a><a
name="_Toc180916305"><u>Eligibility</u></a>.&nbsp; Individuals eligible
to participate in the Plan include all Employees, Non-Employee Directors and
Consultants.</h3>

<h3><a
name="_Toc180913357"></a><a name="_Toc184521058"></a><a name="_Toc184520965"></a><a
name="_Toc184458905"></a><a name="_Toc181182414"></a><a name="_Toc181180453"></a><a
name="_Toc181171950"></a><a name="_Toc180917176"></a><a name="_Toc180917031"></a><a
name="_Toc180916774"></a><a name="_Toc180916594"></a><a name="_Toc180916444"></a><a
name="_Toc180916306"><u>Actual Participation</u></a>.&nbsp; Subject to
the provisions of the Plan, the Committee may, from time to time, in its sole
discretion select from among eligible Employees, Non-Employee Directors and
Consultants, those to whom Awards shall be granted under the Plan, and shall
determine in its discretion the nature, terms, conditions and amount of each
Award. </h3>

<h3><a name="_Toc184521059"></a><a
name="_Toc184520966"></a><a name="_Toc184458906"></a><a name="_Toc181182415"></a><a
name="_Toc181180454"></a><a name="_Toc181171951"></a><a name="_Toc180917177"></a><a
name="_Toc180917032"></a><a name="_Toc180916775"></a><a name="_Toc180916595"></a><a
name="_Toc180916445"></a><a name="_Toc180916307"></a><a name="_Toc180913358">STOCK OPTIONS</a></h3>

<h3><a
name="_Toc180913359"></a><a name="_Toc184521060"></a><a name="_Toc184520967"></a><a
name="_Toc184458907"></a><a name="_Toc181182416"></a><a name="_Toc181180455"></a><a
name="_Toc181171952"></a><a name="_Toc180917178"></a><a name="_Toc180917033"></a><a
name="_Toc180916776"></a><a name="_Toc180916596"></a><a name="_Toc180916446"></a><a
name="_Toc180916308"><u>Grant of Options</u></a>.&nbsp; Subject to the terms
and provisions of the Plan, Options may be granted to Participants in such
number, and upon such terms, and at any time and from time to time as shall be
determined by the Committee in its discretion.&nbsp; ISOs may be granted only to
Employees of the Company or a parent or subsidiary corporation of the Company
within the meaning of Section&nbsp;424 of the Code, and no ISOs may be granted
more than ten (10) years after the Effective Date.
</h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913360"></a><a name="_Toc184521061"></a><a name="_Toc184520968"></a><a
name="_Toc184458908"></a><a name="_Toc181182417"></a><a name="_Toc181180456"></a><a
name="_Toc181171953"></a><a name="_Toc180917179"></a><a name="_Toc180917034"></a><a
name="_Toc180916777"></a><a name="_Toc180916597"></a><a name="_Toc180916447"></a><a
name="_Toc180916309">A-</a>6</p>



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<h3><u>Award
Agreement</u>.&nbsp; Each Option grant shall be evidenced by an Award
Agreement that shall specify the Option Price, the duration of the Option, the
number of Shares to which the Option pertains, the conditions upon which an
Option shall become vested and exercisable, and any such other provisions as
the Committee shall determine.&nbsp; The Award Agreement shall also specify whether
the Option is intended to be an ISO or a NQSO, and the Award Agreement for an
Option intended to be an ISO shall provide that the ISO cannot be exercised
more than ten (10) years (five (5) years in the case of an ISO granted to a
Significant Stockholder) after the date on which the ISO was granted, and that
the ISO cannot be transferred other than by will or by the laws of descent and
distribution. </h3>

<h3><a
name="_Toc180913361"></a><a name="_Toc184521062"></a><a name="_Toc184520969"></a><a
name="_Toc184458909"></a><a name="_Toc181182418"></a><a name="_Toc181180457"></a><a
name="_Toc181171954"></a><a name="_Toc180917180"></a><a name="_Toc180917035"></a><a
name="_Toc180916778"></a><a name="_Toc180916598"></a><a name="_Toc180916448"></a><a
name="_Toc180916310"><u>Option Price</u></a>.&nbsp; The Option Price for
each grant of an Option under this Plan shall be determined by the Committee
and shall be specified in the Award Agreement.&nbsp; The Option Price for an NQSO
may include an Option Price based on one hundred percent (100%) of the FMV of
the Shares on the date of grant, an Option Price that is set at a premium to
the FMV of the Shares on the date of grant, or an Option Price that is indexed
to the FMV of the Shares on the date of grant, with the index determined by the
Committee in its discretion.&nbsp; The Option Price for an ISO shall
be not less than one hundred percent (100%) of the FMV of the Shares on the
date of grant; provided, however, that the Option Price for an ISO granted to a
Significant Stockholder shall be not less than one hundred ten percent (110%)
of the FMV of the Shares on the date of grant.</h3>

<h3><a
name="_Toc180913362"></a><a name="_Toc184521063"></a><a name="_Toc184520970"></a><a
name="_Toc184458910"></a><a name="_Toc181182419"></a><a name="_Toc181180458"></a><a
name="_Toc181171955"></a><a name="_Toc180917181"></a><a name="_Toc180917036"></a><a
name="_Toc180916779"></a><a name="_Toc180916599"></a><a name="_Toc180916449"></a><a
name="_Toc180916311"><u>Duration of Options</u></a>.&nbsp; Each Option
granted to a Participant shall expire at such time as the Committee shall
determine at the time of grant; provided, however, that no Option shall be
exercisable later than the tenth (10th) anniversary date of its grant, and
provided further that no ISO granted to a Significant Stockholder shall be
exercisable after the expiration of five (5) years from the date of grant.&nbsp; </h3>

<h3><a
name="_Toc180913363"></a><a name="_Toc184521064"></a><a name="_Toc184520971"></a><a
name="_Toc184458911"></a><a name="_Toc181182420"></a><a name="_Toc181180459"></a><a
name="_Toc181171956"></a><a name="_Toc180917182"></a><a name="_Toc180917037"></a><a
name="_Toc180916780"></a><a name="_Toc180916600"></a><a name="_Toc180916450"></a><a
name="_Toc180916312"><u>Exercise of Options</u></a>.&nbsp; Options
granted under this Article 6 shall be exercisable at such times and on the
occurrence of such events, and be subject to such restrictions and conditions,
as the Committee shall in each instance approve, which need not be the same for
each grant or for each Participant. </h3>

<h3><a
name="_Toc180913364"></a><a name="_Toc184521065"></a><a name="_Toc184520972"></a><a
name="_Toc184458912"></a><a name="_Toc181182421"></a><a name="_Toc181180460"></a><a
name="_Toc181171957"></a><a name="_Toc180917183"></a><a name="_Toc180917038"></a><a
name="_Toc180916781"></a><a name="_Toc180916601"></a><a name="_Toc180916451"></a><a
name="_Toc180916313"><u>Payment</u></a>.&nbsp; Options granted
under this Article 6 shall be exercised by the delivery of a notice of exercise
to the Company or an agent designated by the Company in a form specified or
accepted by the Committee, or by complying with any alternative procedures
which may be authorized by the Committee, setting forth the number of Shares
with respect to which the Option is to be exercised, accompanied by full
payment for the Shares. </h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The Option Price upon exercise of any
Option shall be payable to the Company in full either: (a) in cash or its
equivalent; (b) by tendering (either by actual delivery or attestation)
previously acquired Shares having an aggregate FMV at the time of exercise
equal to the total Option Price; (c) by a combination of (a) and (b); or (d) by
any other method approved or accepted by the Committee in its sole discretion
subject to such rules and regulations as the Committee may establish. </p>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Subject to Section 6.7 and any governing
rules or regulations, as soon as practicable after receipt of a notification of
exercise and full payment for the Shares, the Company shall cause to be
delivered to the Participant Share certificates or evidence of book entry
Shares in an appropriate amount based upon the number of Shares purchased under
the Option(s), but in any event, on or before the 15<sup>th</sup> day of the
third month of the year following the year in which the Option was exercised.&nbsp; </p>

<h3><a
name="_Toc180913365"></a><a name="_Toc184521066"></a><a name="_Toc184520973"></a><a
name="_Toc184458913"></a><a name="_Toc181182422"></a><a name="_Toc181180461"></a><a
name="_Toc181171958"></a><a name="_Toc180917184"></a><a name="_Toc180917039"></a><a
name="_Toc180916782"></a><a name="_Toc180916602"></a><a name="_Toc180916452"></a><a
name="_Toc180916314"><u>Restrictions on Share Transferability</u></a>.&nbsp;
The Committee may impose such restrictions on any Shares acquired pursuant to
the exercise of an Option granted pursuant to this Plan as it may deem
advisable, including, without limitation, requiring the Participant to hold the
Shares acquired pursuant to exercise for a specified period of time, or
restrictions under applicable laws or under the requirements of any stock
exchange or market upon which such Shares are listed and/or traded.
</h3>

<h3><a
name="_Toc180913366"></a><a name="_Toc184521067"></a><a name="_Toc184520974"></a><a
name="_Toc184458914"></a><a name="_Toc181182423"></a><a name="_Toc181180462"></a><a
name="_Toc181171959"></a><a name="_Toc180917185"></a><a name="_Toc180917040"></a><a
name="_Toc180916783"></a><a name="_Toc180916603"></a><a name="_Toc180916453"></a><a
name="_Toc180916315"><u>Termination of Employment</u></a>.&nbsp;
Each Participant's Award Agreement shall set forth the extent to which the
Participant shall have the right to exercise the Option following termination
of the Participant's employment or other relationship with the Company or
Affiliates.&nbsp; Such provisions shall be determined in the sole discretion of the
Committee, need not be uniform among all Options issued pursuant to this
Article 6, and may reflect distinctions based on the reasons for termination.
</h3>

<h3><a
name="_Toc184521068"></a><a name="_Toc184520975"></a><a name="_Toc184458915"></a><a
name="_Toc181182424"></a><a name="_Toc181180463"></a><a name="_Toc181171960"></a><a
name="_Toc180917186"></a><a name="_Toc180917041"></a><a name="_Toc180916784"></a><a
name="_Toc180916604"></a><a name="_Toc180916454"></a><a name="_Toc180916316"></a><a
name="_Toc180913367"><u>Nontransferability of Options</u></a><u>.</u></h3>

<h3><a name="_Toc180916605"><u>Incentive Stock
Options</u></a>.&nbsp;
No ISO granted under the Plan may be sold, transferred, pledged, assigned or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.&nbsp; Further, all ISOs granted to a Participant under
this Article&nbsp;6 shall be exercisable during such Participant's lifetime
only by such Participant.</h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180916606">A-</a>7</p>



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<h3><u>Nonqualified Stock Options</u>.&nbsp; Except as
otherwise provided in a Participant's Award Agreement at the time of grant or
thereafter by the Committee, a NQSO granted under this Article 6 may not be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution.&nbsp; Further, except
as otherwise provided in a Participant's Award Agreement at the time of grant
or thereafter by the Committee, all NQSOs granted to a Participant under this
Article 6 shall be exercisable during such Participant's lifetime only by such
Participant.
</h3>

<h3><a
name="_Toc180913368"></a><a name="_Toc184521069"></a><a name="_Toc184520976"></a><a
name="_Toc184458916"></a><a name="_Toc181182425"></a><a name="_Toc181180464"></a><a
name="_Toc181171961"></a><a name="_Toc180917187"></a><a name="_Toc180917042"></a><a
name="_Toc180916785"></a><a name="_Toc180916607"></a><a name="_Toc180916455"></a><a
name="_Toc180916317"><u>Notification of Disqualifying Disposition</u></a>.&nbsp;
The Participant to whom an ISO is granted shall notify the Company upon the
disposition of Shares issued pursuant to the exercise of an ISO or Shares
received as a dividend on ISO stock.&nbsp; The Company shall use such information to
determine whether a disqualifying disposition as described in Section 421(b) of
the Code has occurred.</h3>

<h3><a
name="_Toc180913369"></a><a name="_Toc184521070"></a><a name="_Toc184520977"></a><a
name="_Toc184458917"></a><a name="_Toc181182426"></a><a name="_Toc181180465"></a><a
name="_Toc181171962"></a><a name="_Toc180917188"></a><a name="_Toc180917043"></a><a
name="_Toc180916786"></a><a name="_Toc180916608"></a><a name="_Toc180916456"></a><a
name="_Toc180916318"><u>$100,000 Annual ISO Limitation</u></a>.&nbsp;
To the extent that the aggregate FMV of Shares (determined
as of the time the ISOs with respect to such Shares are granted) with respect
to which ISOs are exercisable for the first time by any Participant during any
calendar year (under this Plan and all other plans of the Company and any
Affiliate) exceeds $100,000, such ISOs shall be treated as NQSOs.&nbsp; The foregoing
provisions shall be applied by taking ISOs into account in the order in which
they were granted.</h3>

<h3><a name="_Toc184521071"></a><a
name="_Toc184520978"></a><a name="_Toc184458918"></a><a name="_Toc181182427"></a><a
name="_Toc181180466"></a><a name="_Toc181171963"></a><a name="_Toc180917189"></a><a
name="_Toc180917044"></a><a name="_Toc180916787"></a><a name="_Toc180916609"></a><a
name="_Toc180916457"></a><a name="_Toc180916319"></a><a name="_Toc180913370">STOCK APPRECIATION RIGHTS</a></h3>

<h3><a
name="_Toc180913371"></a><a name="_Toc184521072"></a><a name="_Toc184520979"></a><a
name="_Toc184458919"></a><a name="_Toc181182428"></a><a name="_Toc181180467"></a><a
name="_Toc181171964"></a><a name="_Toc180917190"></a><a name="_Toc180917045"></a><a
name="_Toc180916788"></a><a name="_Toc180916610"></a><a name="_Toc180916458"></a><a
name="_Toc180916320"><u>Grant of SARs</u></a>.&nbsp; Subject to the terms
and conditions of the Plan, SARs may be granted to Participants at any time and
from time to time and upon such terms as shall be determined by the Committee
in its discretion.&nbsp; The Committee may grant Freestanding SARs, Tandem SARs, or
any combination of these forms of SARs. </h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The SAR Grant Price for each grant of a
Freestanding SAR shall be determined by the Committee and shall be specified in
the Award Agreement.&nbsp; The SAR Grant Price may include a Grant Price based on
one hundred percent (100%) of the FMV of the Shares on the date of grant, a
Grant Price that is set at a premium to the FMV of the Shares on the date of
grant, or is indexed to the FMV of the Shares on the date of grant, with the
index determined by the Committee, in its discretion, provided that the Grant
Price may never be less than the FMV of the Shares on the date of Grant.&nbsp; The Grant
Price of Tandem SARs shall be equal to the Option Price of the related Option. </p>

<h3><a
name="_Toc180913372"></a><a name="_Toc184521073"></a><a name="_Toc184520980"></a><a
name="_Toc184458920"></a><a name="_Toc181182429"></a><a name="_Toc181180468"></a><a
name="_Toc181171965"></a><a name="_Toc180917191"></a><a name="_Toc180917046"></a><a
name="_Toc180916789"></a><a name="_Toc180916611"></a><a name="_Toc180916459"></a><a
name="_Toc180916321"><u>SAR Agreement</u></a>.&nbsp; Each SAR Award shall
be evidenced by an Award Agreement that shall specify the Grant Price, the term
of the SAR, and any such other provisions as the Committee shall determine.
</h3>

<h3><a
name="_Toc180913373"></a><a name="_Toc184521074"></a><a name="_Toc184520981"></a><a
name="_Toc184458921"></a><a name="_Toc181182430"></a><a name="_Toc181180469"></a><a
name="_Toc181171966"></a><a name="_Toc180917192"></a><a name="_Toc180917047"></a><a
name="_Toc180916790"></a><a name="_Toc180916612"></a><a name="_Toc180916460"></a><a
name="_Toc180916322"><u>Term of SAR</u></a></h3>

<p class=HeadingBody2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>.&nbsp; The term of an SAR granted under the
Plan shall be determined by the Committee, in its sole discretion, and except
as determined otherwise by the Committee and specified in the SAR Award
Agreement, no SAR shall be exercisable later than the tenth (10th) anniversary
date of its grant.&nbsp; </p>

<h3><a
name="_Toc180913374"></a><a name="_Toc184521075"></a><a name="_Toc184520982"></a><a
name="_Toc184458922"></a><a name="_Toc181182431"></a><a name="_Toc181180470"></a><a
name="_Toc181171967"></a><a name="_Toc180917193"></a><a name="_Toc180917048"></a><a
name="_Toc180916791"></a><a name="_Toc180916613"></a><a name="_Toc180916461"></a><a
name="_Toc180916323"><u>Exercise of Freestanding SARs</u></a>&nbsp;
Freestanding SARs may be exercised upon whatever terms and conditions the
Committee, in its sole discretion, imposes. </h3>

<h3><a
name="_Toc180913375"></a><a name="_Toc184521076"></a><a name="_Toc184520983"></a><a
name="_Toc184458923"></a><a name="_Toc181182432"></a><a name="_Toc181180471"></a><a
name="_Toc181171968"></a><a name="_Toc180917194"></a><a name="_Toc180917049"></a><a
name="_Toc180916792"></a><a name="_Toc180916614"></a><a name="_Toc180916462"></a><a
name="_Toc180916324"><u>Exercise of Tandem SARs</u></a>.&nbsp;
Tandem SARs may be exercised for all or part of the Shares subject to the
related Option upon the surrender of the right to exercise the equivalent
portion of the related Option.&nbsp; A Tandem SAR may be exercised only with respect
to the Shares for which its related Option is then exercisable.
</h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Notwithstanding any other provision of
this Plan to the contrary, with respect to a Tandem SAR granted in connection
with an ISO: (a) the Tandem SAR will expire no later than the expiration of the
underlying ISO; (b) the value of the payout with respect to the Tandem SAR may
be for no more than one hundred percent (100%) of the difference between the
Option Price of the underlying ISO and the FMV of the Shares subject to the
underlying ISO at the time the Tandem SAR is exercised; and (c) the Tandem SAR
may be exercised only when the FMV of the Shares subject to the ISO exceeds the
Option Price of the ISO. </p>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913376"></a><a name="_Toc184521077"></a><a name="_Toc184520984"></a><a
name="_Toc184458924"></a><a name="_Toc181182433"></a><a name="_Toc181180472"></a><a
name="_Toc181171969"></a><a name="_Toc180917195"></a><a name="_Toc180917050"></a><a
name="_Toc180916793"></a><a name="_Toc180916615"></a><a name="_Toc180916463"></a><a
name="_Toc180916325">A-</a>8</p>



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<h3><u>Payment
of SAR Amount</u>.&nbsp; Upon the exercise of an SAR, a Participant shall be
entitled to receive payment from the Company in an amount representing <a
name="_Toc180916616"></a>the difference between the FMV of the underlying Shares on
the date of exercise over the Grant Price.&nbsp; At the discretion of
the Committee, the payment upon SAR exercise may be in cash, Shares of
equivalent value (based on the FMV on the date of exercise of the SAR, as
defined in the Award Agreement or otherwise defined by the Committee
thereafter), in some combination thereof, or in any other form approved by the
Committee at its sole discretion.&nbsp; Payment shall be made not earlier than the
date of exercise nor later than 2-1/2 months after the close of the year in
which the SAR is exercised.&nbsp; The Committee's determination regarding the form
of SAR payout shall be set forth or reserved for later determination in the
Award Agreement for the grant of the SAR. </h3>

<h3><a
name="_Toc180913377"></a><a name="_Toc184521078"></a><a name="_Toc184520985"></a><a
name="_Toc184458925"></a><a name="_Toc181182434"></a><a name="_Toc181180473"></a><a
name="_Toc181171970"></a><a name="_Toc180917196"></a><a name="_Toc180917051"></a><a
name="_Toc180916794"></a><a name="_Toc180916618"></a><a name="_Toc180916464"></a><a
name="_Toc180916326"><u>Termination of Employment</u></a>.&nbsp;
Each Award Agreement shall set forth the extent to which the Participant shall
have the right to exercise the SAR following termination of the Participant's
employment or other relationship with the Company or Affiliates.&nbsp; Such
provisions shall be determined in the sole discretion of the Committee, need
not be uniform among all SARs issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination.
</h3>

<h3><a
name="_Toc180913378"></a><a name="_Toc184521079"></a><a name="_Toc184520986"></a><a
name="_Toc184458926"></a><a name="_Toc181182435"></a><a name="_Toc181180474"></a><a
name="_Toc181171971"></a><a name="_Toc180917197"></a><a name="_Toc180917052"></a><a
name="_Toc180916795"></a><a name="_Toc180916619"></a><a name="_Toc180916465"></a><a
name="_Toc180916327"><u>Nontransferability of SARs</u></a>.&nbsp;
Except as otherwise provided in a Participant's Award Agreement at the time of
grant or thereafter by the Committee, an SAR granted under the Plan may not be
sold, transferred, pledged, assigned or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution.&nbsp; Further, except
as otherwise provided in a Participant's Award Agreement at the time of grant
or thereafter by the Committee, all SARs granted to a Participant under the
Plan shall be exercisable during such Participant's lifetime only by such
Participant.</h3>

<h3><a
name="_Toc180913379"></a><a name="_Toc184521080"></a><a name="_Toc184520987"></a><a
name="_Toc184458927"></a><a name="_Toc181182436"></a><a name="_Toc181180475"></a><a
name="_Toc181171972"></a><a name="_Toc180917198"></a><a name="_Toc180917053"></a><a
name="_Toc180916796"></a><a name="_Toc180916620"></a><a name="_Toc180916466"></a><a
name="_Toc180916328"><u>Other Restrictions</u></a>.&nbsp; Without
limiting the generality of any other provision of this Plan, the Committee may
impose such other conditions and/or restrictions on any Shares received upon
exercise of an SAR granted pursuant to the Plan as it may deem advisable.&nbsp; This
includes, but is not limited to, requiring the Participant to hold the Shares
received upon exercise of an SAR for a specified period of time.</h3>

<h3><a name="_Toc184521081"></a><a
name="_Toc184520988"></a><a name="_Toc184458928"></a><a name="_Toc181182437"></a><a
name="_Toc181180476"></a><a name="_Toc181171973"></a><a name="_Toc180917199"></a><a
name="_Toc180917054"></a><a name="_Toc180916797"></a><a name="_Toc180916621"></a><a
name="_Toc180916467"></a><a name="_Toc180916329"></a><a name="_Toc180913380">RESTRICTED STOCK AND RESTRICTED
STOCK UNITS</a></h3>

<h3><a
name="_Toc180913381"></a><a name="_Toc184521082"></a><a name="_Toc184520989"></a><a
name="_Toc184458929"></a><a name="_Toc181182438"></a><a name="_Toc181180477"></a><a
name="_Toc181171974"></a><a name="_Toc180917200"></a><a name="_Toc180917055"></a><a
name="_Toc180916798"></a><a name="_Toc180916622"></a><a name="_Toc180916468"></a><a
name="_Toc180916330"><u>Grant of Restricted Stock or Restricted Stock Units</u></a>.&nbsp;
Subject to the terms and conditions of the Plan, the Committee, at any time and
from time to time, may grant Shares of Restricted Stock and/or Restricted Stock
Units to Participants in such amounts and upon such terms as the Committee
shall determine. </h3>

<h3><a
name="_Toc180913382"></a><a name="_Toc184521083"></a><a name="_Toc184520990"></a><a
name="_Toc184458930"></a><a name="_Toc181182439"></a><a name="_Toc181180478"></a><a
name="_Toc181171975"></a><a name="_Toc180917201"></a><a name="_Toc180917056"></a><a
name="_Toc180916799"></a><a name="_Toc180916623"></a><a name="_Toc180916469"></a><a
name="_Toc180916331"><u>Restricted Stock or Restricted Stock Unit Agreement</u></a>.&nbsp;
Each Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by
an Award Agreement that shall specify the Period(s) of Restriction, the number
of Shares of Restricted Stock or the number of Restricted Stock Units granted,
the settlement date for Restricted Stock Units, and any such other provisions
as the Committee shall determine. </h3>

<h3><a
name="_Toc180913383"></a><a name="_Toc184521084"></a><a name="_Toc184520991"></a><a
name="_Toc184458931"></a><a name="_Toc181182440"></a><a name="_Toc181180479"></a><a
name="_Toc181171976"></a><a name="_Toc180917202"></a><a name="_Toc180917057"></a><a
name="_Toc180916800"></a><a name="_Toc180916624"></a><a name="_Toc180916470"></a><a
name="_Toc180916332"><u>Nontransferability of Restricted Stock and Restricted Stock
Units</u></a>.&nbsp; Except as otherwise provided in this Plan or the Award
Agreement, the Shares of Restricted Stock and/or Restricted Stock Units granted
herein may not be sold, transferred, pledged, assigned or otherwise alienated
or hypothecated until the end of the applicable Period of Restriction specified
in the Award Agreement (and in the case of Restricted Stock Units until the
date of settlement through delivery or other payment), or upon earlier
satisfaction of any other conditions, as specified by the Committee in its sole
discretion and set forth in the Award Agreement at the time of grant or
thereafter by the Committee.&nbsp; All rights with respect to the Restricted Stock
and/or Restricted Stock Units granted to a Participant under the Plan shall be
available during such Participant's lifetime only to such Participant, except
as otherwise provided in the Award Agreement at the time of grant or thereafter
by the Committee. </h3>

<h3><a
name="_Toc180913384"></a><a name="_Toc184521085"></a><a name="_Toc184520992"></a><a
name="_Toc184458932"></a><a name="_Toc181182441"></a><a name="_Toc181180480"></a><a
name="_Toc181171977"></a><a name="_Toc180917203"></a><a name="_Toc180917058"></a><a
name="_Toc180916801"></a><a name="_Toc180916625"></a><a name="_Toc180916471"></a><a
name="_Toc180916333"><u>Other Restrictions</u></a>.&nbsp; The Committee
shall impose, in the Award Agreement at the time of grant or anytime thereafter,
such other conditions and/or restrictions on any Shares of Restricted Stock or
Restricted Stock Units granted pursuant to this Plan as it may deem advisable,
including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock
Unit, restrictions based upon the achievement of specific performance criteria,
time-based restrictions on vesting following the attainment of the performance
criteria, time-based restrictions, restrictions under applicable laws or under
the requirements of any stock exchange or market upon which such Shares are
listed or traded, or holding requirements or sale restrictions placed on the
Shares by the Company upon vesting of such Restricted Stock or Restricted Stock
Units. </h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>To the extent deemed appropriate by the
Committee, subject to Section 19.5, the Company may retain the certificates
representing Shares of Restricted Stock, or Shares delivered in settlement of
Restricted Stock Units, in the Company's possession until such time as all
conditions and/or restrictions applicable to such Shares have been satisfied or
lapse, but in no event will delivery of such Shares be made later than 2-1/2
months after the close of the year in which such conditions or restrictions
were satisfied or lapsed. </p>

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<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Except as otherwise provided in this
Article 8, Shares of Restricted Stock covered by each Restricted Stock Award
shall become freely transferable by the Participant after all conditions and
restrictions applicable to such Shares have been satisfied or lapse, and
Restricted Stock Units shall be settled through payment in cash, Shares, or a
combination of cash and Shares as the Committee, in its sole discretion, shall
determine. </p>

<h3><a
name="_Toc180913385"></a><a name="_Toc184521086"></a><a name="_Toc184520993"></a><a
name="_Toc184458933"></a><a name="_Toc181182442"></a><a name="_Toc181180481"></a><a
name="_Toc181171978"></a><a name="_Toc180917204"></a><a name="_Toc180917059"></a><a
name="_Toc180916802"></a><a name="_Toc180916626"></a><a name="_Toc180916472"></a><a
name="_Toc180916334"><u>Certificate Legend</u></a>.&nbsp; In addition
to any legends placed on certificates pursuant to Section 8.4 herein, each
certificate representing Shares of Restricted Stock granted pursuant to the
Plan may bear a legend such as the following: </h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The sale or other transfer of the shares
of stock represented by this certificate, whether voluntary, involuntary or by
operation of law, is subject to certain restrictions on transfer as set forth
in the 2008 Omnibus Equity Incentive Compensation Plan and in the associated
Award Agreement.&nbsp; A copy of the Plan and such Award Agreement may be obtained
from Good Times Restaurants Inc. </p>

<h3><a
name="_Toc180913386"></a><a name="_Toc184521087"></a><a name="_Toc184520994"></a><a
name="_Toc184458934"></a><a name="_Toc181182443"></a><a name="_Toc181180482"></a><a
name="_Toc181171979"></a><a name="_Toc180917205"></a><a name="_Toc180917060"></a><a
name="_Toc180916803"></a><a name="_Toc180916627"></a><a name="_Toc180916473"></a><a
name="_Toc180916335"><u>Voting Rights</u></a>.&nbsp; To the extent
required by law, Participants holding Shares of Restricted Stock granted
hereunder shall have the right to exercise full voting rights with respect to
those Shares during the Period of Restriction.&nbsp; A Participant shall have no
voting rights with respect to any Restricted Stock Units granted hereunder.
</h3>

<h3><a
name="_Toc180913387"></a><a name="_Toc184521088"></a><a name="_Toc184520995"></a><a
name="_Toc184458935"></a><a name="_Toc181182444"></a><a name="_Toc181180483"></a><a
name="_Toc181171980"></a><a name="_Toc180917206"></a><a name="_Toc180917061"></a><a
name="_Toc180916804"></a><a name="_Toc180916628"></a><a name="_Toc180916474"></a><a
name="_Toc180916336"><u>Dividends and Other Distributions</u></a>.&nbsp;
During the Period of Restriction, Participants holding Shares of Restricted
Stock or Restricted Stock Units granted hereunder may, if the Committee so
determines, be credited with dividends paid with respect to the underlying
Shares or Dividend Equivalents while they are so held in a manner determined by
the Committee in its sole discretion.&nbsp; Dividend Equivalents shall not apply to
an Award unless specifically provided for in the Award Agreement.&nbsp; The
Committee may apply any restrictions to the dividends or Dividend Equivalents
that the Committee deems appropriate.&nbsp; The Committee, in its sole discretion,
may determine the form of payment of dividends or Dividend Equivalents,
including cash, Shares, Restricted Stock or Restricted Stock Units.</h3>

<h3><a
name="_Toc180913388"></a><a name="_Toc184521089"></a><a name="_Toc184520996"></a><a
name="_Toc184458936"></a><a name="_Toc181182445"></a><a name="_Toc181180484"></a><a
name="_Toc181171981"></a><a name="_Toc180917207"></a><a name="_Toc180917062"></a><a
name="_Toc180916805"></a><a name="_Toc180916629"></a><a name="_Toc180916475"></a><a
name="_Toc180916337"><u>Termination of Employment</u></a>.&nbsp;
Each Award Agreement shall set forth the extent to which the Participant shall
have the right to retain Restricted Stock and/or Restricted Stock Units
following termination of the Participant's employment or other relationship
with the Company or Affiliates.&nbsp; Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all Shares of Restricted
Stock or Restricted Stock Units issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination.
</h3>

<h3><a
name="_Toc180913389"></a><a name="_Toc184521090"></a><a name="_Toc184520997"></a><a
name="_Toc184458937"></a><a name="_Toc181182446"></a><a name="_Toc181180485"></a><a
name="_Toc181171982"></a><a name="_Toc180917208"></a><a name="_Toc180917063"></a><a
name="_Toc180916806"></a><a name="_Toc180916630"></a><a name="_Toc180916476"></a><a
name="_Toc180916338"><u>Payment in Settlement of Restricted Stock Units</u></a>.&nbsp;
When and if Restricted Stock Units become payable, a Participant having
received the grant of such units shall be entitled to receive payment from the
Company in settlement of such units in cash, Shares of equivalent value (based
on the FMV, as defined in the Award Agreement at the time of grant or
thereafter by the Committee), in some combination thereof, or in any other form
determined by the Committee at its sole discretion.&nbsp; The Committee's
determination regarding the form of payout shall be set forth or reserved for
later determination in the Award Agreement for the grant of the Restricted
Stock Unit.</h3>

<h3><a name="_Toc184521091"></a><a
name="_Toc184520998"></a><a name="_Toc184458938"></a><a name="_Toc181182447"></a><a
name="_Toc181180486"></a><a name="_Toc181171983"></a><a name="_Toc180917209"></a><a
name="_Toc180917064"></a><a name="_Toc180916807"></a><a name="_Toc180916631"></a><a
name="_Toc180916477"></a><a name="_Toc180916339"></a><a name="_Toc180913390">PERFORMANCE SHARES AND PERFORMANCE
UNITS</a></h3>

<h3><a
name="_Toc180913391"></a><a name="_Toc184521092"></a><a name="_Toc184520999"></a><a
name="_Toc184458939"></a><a name="_Toc181182448"></a><a name="_Toc181180487"></a><a
name="_Toc181171984"></a><a name="_Toc180917210"></a><a name="_Toc180917065"></a><a
name="_Toc180916808"></a><a name="_Toc180916632"></a><a name="_Toc180916478"></a><a
name="_Toc180916340"><u>Grant of Performance Shares and Performance Units</u></a>.&nbsp;
Subject to the terms and conditions of the Plan, the Committee, at any time and
from time to time, may grant Performance Shares and/or Performance Units to
Participants in such amounts and upon such terms as the Committee shall
determine. </h3>

<h3><a
name="_Toc180913392"></a><a name="_Toc184521093"></a><a name="_Toc184521000"></a><a
name="_Toc184458940"></a><a name="_Toc181182449"></a><a name="_Toc181180488"></a><a
name="_Toc181171985"></a><a name="_Toc180917211"></a><a name="_Toc180917066"></a><a
name="_Toc180916809"></a><a name="_Toc180916633"></a><a name="_Toc180916479"></a><a
name="_Toc180916341"><u>Value of Performance Shares and Performance Units</u></a>.&nbsp;
Each Performance Share shall have an initial value equal to the FMV of a Share
on the date of grant.&nbsp; Each Performance Unit shall have an initial value that
is established by the Committee at the time of grant which may be less than,
equal to, or greater than the FMV of a Share.&nbsp; The Committee shall set
performance criteria for a Performance Period in its discretion, which,
depending on the extent to which they are met, will determine, in the manner
determined by the Committee and set forth in the Award Agreement, the value and/or
number of each Performance Share or Performance Unit that will be paid to the
Participant. </h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913393"></a><a name="_Toc184521094"></a><a name="_Toc184521001"></a><a
name="_Toc184458941"></a><a name="_Toc181182450"></a><a name="_Toc181180489"></a><a
name="_Toc181171986"></a><a name="_Toc180917212"></a><a name="_Toc180917067"></a><a
name="_Toc180916810"></a><a name="_Toc180916634"></a><a name="_Toc180916480"></a><a
name="_Toc180916342">A-</a>10</p>



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<h3><u>Earning
of Performance Shares and Performance Units</u>.&nbsp; Subject to
the terms of this Plan and the applicable Award Agreement, after the applicable
Performance Period has ended, the holder of Performance Shares/Performance
Units shall be entitled to receive payout on the value and number of
Performance Shares/Performance Units, determined as a function of the extent to
which the corresponding performance criteria have been achieved.&nbsp;
Notwithstanding the foregoing, the Company shall have the ability to require
the Participant to hold any Shares received pursuant to such Award for a
specified period of time. </h3>

<h3><a
name="_Toc180913394"></a><a name="_Toc184521095"></a><a name="_Toc184521002"></a><a
name="_Toc184458942"></a><a name="_Toc181182451"></a><a name="_Toc181180490"></a><a
name="_Toc181171987"></a><a name="_Toc180917213"></a><a name="_Toc180917068"></a><a
name="_Toc180916811"></a><a name="_Toc180916635"></a><a name="_Toc180916481"></a><a
name="_Toc180916343"><u>Form and Timing of Payment of Performance Shares and
Performance Units</u></a>.&nbsp; Payment of earned Performance Shares/Performance Units
shall be as determined by the Committee and as set forth in the Award
Agreement.&nbsp; Subject to the terms of the Plan, the Committee, in its sole
discretion, may pay earned Performance Shares/Performance Units in the form of
cash or in Shares (or in a combination thereof) equal to the value of the
earned Performance Shares/Performance Units at the end of the applicable
Performance Period.&nbsp; Any Shares may be granted subject to any restrictions deemed
appropriate by the Committee.&nbsp; The determination of the Committee with respect
to the form of payout of such Awards shall be set forth in the Award Agreement
for the grant of the Award or reserved for later determination.
</h3>

<h3><a
name="_Toc180913395"></a><a name="_Toc184521096"></a><a name="_Toc184521003"></a><a
name="_Toc184458943"></a><a name="_Toc181182452"></a><a name="_Toc181180491"></a><a
name="_Toc181171988"></a><a name="_Toc180917214"></a><a name="_Toc180917069"></a><a
name="_Toc180916812"></a><a name="_Toc180916636"></a><a name="_Toc180916482"></a><a
name="_Toc180916344"><u>Dividends and Other Distributions</u></a>.&nbsp;
The Committee shall determine whether Participants holding Performance Shares
will receive Dividend Equivalents with respect to dividends declared with
respect to the Shares.&nbsp; Dividends or Dividend Equivalents may be subject to
accrual, forfeiture or payout restrictions as determined by the Committee in
its sole discretion. </h3>

<h3><a
name="_Toc180913396"></a><a name="_Toc184521097"></a><a name="_Toc184521004"></a><a
name="_Toc184458944"></a><a name="_Toc181182453"></a><a name="_Toc181180492"></a><a
name="_Toc181171989"></a><a name="_Toc180917215"></a><a name="_Toc180917070"></a><a
name="_Toc180916813"></a><a name="_Toc180916637"></a><a name="_Toc180916483"></a><a
name="_Toc180916345"><u>Termination of Employment</u></a>.&nbsp;
Each Award Agreement shall set forth the extent to which the Participant shall
have the right to retain Performance Shares/Performance Units following
termination of the Participant's employment or other relationship with the
Company or an Affiliate.&nbsp; Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all Awards of
Performance Shares/Performance Units issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination.
</h3>

<h3><a
name="_Toc180913397"></a><a name="_Toc184521098"></a><a name="_Toc184521005"></a><a
name="_Toc184458945"></a><a name="_Toc181182454"></a><a name="_Toc181180493"></a><a
name="_Toc181171990"></a><a name="_Toc180917216"></a><a name="_Toc180917071"></a><a
name="_Toc180916814"></a><a name="_Toc180916638"></a><a name="_Toc180916484"></a><a
name="_Toc180916346"><u>Nontransferability of Performance Shares and Performance
Units</u></a>.&nbsp; Except as otherwise provided in a Participant's Award
Agreement at the time of grant or thereafter by the Committee, Performance
Shares/Performance Units may not be sold, transferred, pledged, assigned or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.&nbsp; Further, except as otherwise provided in a
Participant's Award Agreement or otherwise by the Committee at any time, a
Participant's rights under the Plan shall inure during such Participant's
lifetime only to such Participant.</h3>

<h3><a name="_Toc184521099"></a><a
name="_Toc184521006"></a><a name="_Toc184458946"></a><a name="_Toc181182455"></a><a
name="_Toc181180494"></a><a name="_Toc181171991"></a><a name="_Toc180917217"></a><a
name="_Toc180917072"></a><a name="_Toc180916815"></a><a name="_Toc180916639"></a><a
name="_Toc180916485"></a><a name="_Toc180916347"></a><a name="_Toc180913398">STOCK-BASED AWARDS</a></h3>

<h3><a
name="_Toc180913403"></a><a name="_Toc184521100"></a><a name="_Toc184521007"></a><a
name="_Toc184458947"></a><a name="_Toc181182460"></a><a name="_Toc181180499"></a><a
name="_Toc181171996"></a><a name="_Toc180917222"></a><a name="_Toc180917077"></a><a
name="_Toc180916820"></a><a name="_Toc180916644"></a><a name="_Toc180916490"></a><a
name="_Toc180916352"><u>Stock-Based Awards</u></a>.&nbsp; The Committee
may grant other types of equity-based or equity-related Awards not otherwise
described by the terms of this Plan (including the grant or offer for sale of
unrestricted Shares) in such amounts and subject to such terms and conditions,
including, but not limited to, being subject to performance criteria, or in
satisfaction of such obligations, as the Committee shall determine.&nbsp; Such
Awards may involve the transfer of actual Shares to Participants, or payment in
cash or otherwise of amounts based on the value of Shares.</h3>

<h3><a
name="_Toc180913404"></a><a name="_Toc184521101"></a><a name="_Toc184521008"></a><a
name="_Toc184458948"></a><a name="_Toc181182461"></a><a name="_Toc181180500"></a><a
name="_Toc181171997"></a><a name="_Toc180917223"></a><a name="_Toc180917078"></a><a
name="_Toc180916821"></a><a name="_Toc180916645"></a><a name="_Toc180916491"></a><a
name="_Toc180916353"><u>Termination of Employment</u></a>.&nbsp;
Each Award Agreement shall set forth the extent to which the Participant shall
have the right to receive Stock-Based Awards following termination of the
Participant's employment or other relationship with the Company or Affiliates.&nbsp;
Such provisions shall be determined in the sole discretion of the Committee,
need not be uniform among all Stock-Based Awards issued pursuant to the Plan,
and may reflect distinctions based on the reasons for termination.
</h3>

<h3><a
name="_Toc180913405"></a><a name="_Toc184521102"></a><a name="_Toc184521009"></a><a
name="_Toc184458949"></a><a name="_Toc181182462"></a><a name="_Toc181180501"></a><a
name="_Toc181171998"></a><a name="_Toc180917224"></a><a name="_Toc180917079"></a><a
name="_Toc180916822"></a><a name="_Toc180916646"></a><a name="_Toc180916492"></a><a
name="_Toc180916354"><u>Nontransferability of Stock-Based Awards</u></a>.&nbsp;
Except as otherwise provided in a Participant's Award Agreement at the time of
grant or thereafter by the Committee, Stock-Based Awards may not be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution.&nbsp; Further, except as
otherwise provided in a Participant's Award Agreement at the time of grant or
thereafter by the Committee, a Participant's rights under the Plan shall be
exercisable during such Participant's lifetime only by such Participant.</h3>

<h3><a name="_Toc184521103"></a><a
name="_Toc184521010"></a><a name="_Toc184458950"></a><a name="_Toc181182463"></a><a
name="_Toc181180502"></a><a name="_Toc181171999"></a><a name="_Toc180917225"></a><a
name="_Toc180917080"></a><a name="_Toc180916823"></a><a name="_Toc180916647"></a><a
name="_Toc180916493"></a><a name="_Toc180916355"></a><a name="_Toc180913406">PERFORMANCE MEASURES</a></h3>

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<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Notwithstanding any other terms of this
Plan, the vesting, payability or value (as determined by the Committee) of each
Award other than an Option or SAR that, at the time of grant, the Committee
intends to be Performance-Based Compensation to a Covered Employee, shall be
determined by the attainment of one or more Performance Goals as determined by
the Committee in conformity with Section 162(m) of the Code.&nbsp; The Committee
shall specify in writing, by resolution or otherwise, the Participants eligible
to receive such an Award (which may be expressed in terms of a class of
individuals) and the Performance Goal(s) applicable to such Awards within
ninety (90) days after the commencement of the period to which the Performance
Goal(s) relate(s), or such earlier time as required to comply with
Section&nbsp;162(m) of the Code.&nbsp; No such Award shall be payable unless the
Committee certifies in writing, by resolution or otherwise, that the
Performance Goal(s) applicable to the Award were satisfied.&nbsp; In no case may the
Committee increase the value of an Award of Performance-Based Compensation
above the maximum value determined under the performance formula by the
attainment of the applicable Performance Goal(s), but the Committee may retain
the discretion to reduce the value below such maximum. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Unless and until the Committee proposes
for stockholder vote and the stockholders approve a change in the general
Performance Measures set forth in this Article 11, the Performance Goal(s) upon
which the payment or vesting of an Award to a Covered Employee that is intended
to qualify as Performance-Based Compensation shall be limited to the following
Performance Measures:</p>

<h3><a
name="_Toc180916648">Net
earnings or net income (before or after taxes);</a></h3>

<h3><a
name="_Toc180916649">Earnings
per share;</a></h3>

<h3><a
name="_Toc180916650">Net
sales growth;</a></h3>

<h3>Revenue growth;</h3>

<h3><a
name="_Toc180916651">Same
store sales levels or growth;</a></h3>

<h3><a
name="_Toc180916652">Net
operating profit;</a></h3>

<h3><a
name="_Toc180916653">Operating
earnings;</a></h3>

<h3><a
name="_Toc180916654">Operating
earnings per share;</a></h3>

<h3><a
name="_Toc180916655">Return
measures (including, but not limited to, return on assets, capital, equity or
sales);</a></h3>

<h3><a
name="_Toc180916656">Cash
flow (including, but not limited to, operating cash flow, free cash flow and
cash flow return on capital);</a></h3>

<h3><a name="_Toc180916657">Earnings before or
after taxes, interest, depreciation and/or amortization, and
including/excluding capital gains and losses;</a></h3>

<h3><a
name="_Toc180916658">Gross
or operating margins;</a></h3>

<h3><a
name="_Toc180916659">Productivity
ratios;</a></h3>

<h3><a
name="_Toc180916660">Share
price (including, but not limited to, growth measures and total stockholder
return);</a>
</h3>

<h3><a
name="_Toc180916661">Operating
and/or non-operating expense levels or reductions;</a></h3>

<h3><a
name="_Toc180916663">Operating
efficiency;</a></h3>

<h3><a
name="_Toc180916664">Customer
satisfaction;</a></h3>

<h3><a
name="_Toc180916665">Employee
satisfaction;</a>
and</h3>

<h3><a
name="_Toc180916666">Working
capital levels or targets.</a></h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Any Performance Measure(s) may be used to
measure the performance of the Company as a whole and/or any Affiliate,
business unit or regional operation of the Company or any combination thereof,
as the Committee may deem appropriate, and any of the above Performance
Measures may be used in comparison to the performance of a group of peer
companies, or a published or special index that the Committee, in its sole
discretion, deems appropriate.&nbsp; The Committee shall also have the authority to
provide in Award Agreements for accelerated vesting of an Award based on the
achievement of Performance Goal(s). </p>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The Committee may provide in any Award
Agreement that any evaluation of attainment of a Performance Goal may include
or exclude any of the following events that occurs during the relevant period:
(a) asset write-downs; (b) litigation or claim judgments or settlements; (c)
the effect of changes in tax laws, accounting principles, or other laws or
provisions affecting reported results; (d) any reorganization or restructuring
transactions; (e) extraordinary nonrecurring items as described in Accounting
Principles Board Opinion No. 30 and/or in management's discussion and analysis
of financial condition and results of operations appearing in the Company's
Annual Report on Form&nbsp;10-KSB or Form 10-K for the applicable year; and (f)
significant acquisitions or divestitures.&nbsp; To the extent such inclusions or
exclusions affect Awards to Covered Employees, they shall be prescribed in a
form that meets the requirements of Section&nbsp;162(m) of the Code for
deductibility. </p>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>In the event that applicable tax and/or
securities laws change to permit discretion by the Committee to alter the
governing Performance Measures without obtaining stockholder approval of such changes,
the Committee shall have sole discretion to make such changes without obtaining
stockholder approval.&nbsp; In addition, in the event that the Committee determines
that it is advisable to grant Awards to Covered Employees that shall not
qualify as Performance-Based Compensation, the Committee may make such grants
without satisfying the requirements of Section&nbsp;162(m) of the Code.</p>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc184521104"></a><a name="_Toc184521011"></a><a name="_Toc184458951"></a><a
name="_Toc181182464"></a><a name="_Toc181180503"></a><a name="_Toc181172000"></a><a
name="_Toc180917226"></a><a name="_Toc180917081"></a><a name="_Toc180916824"></a><a
name="_Toc180916671"></a><a name="_Toc180916494"></a><a name="_Toc180916356"></a><a
name="_Toc180913407">A-</a>12</p>



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<h3>BENEFICIARY
DESIGNATION</h3>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>A Participant's &quot;beneficiary&quot; is the
person or persons entitled to receive payments or other benefits or exercise
rights that are available under the Plan in the event of the Participant's
death.&nbsp; A Participant may designate a beneficiary or change a previous
beneficiary designation at such times as prescribed by the Committee and by
using such forms and following such procedures approved or accepted by the
Committee for that purpose.&nbsp; If no beneficiary designated by the Participant is
eligible to receive payments or other benefits or exercise rights that are
available under the Plan at the Participant's death, the beneficiary shall be
the Participant's estate. </p>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Notwithstanding the provisions above, the
Committee may, in its discretion, after notifying the affected Participants,
modify the foregoing requirements, institute additional requirements for
beneficiary designations, or suspend the existing beneficiary designations of
living Participants or the process of determining beneficiaries under this
Article 12, or both, in favor of another method of determining beneficiaries.</p>

<h3><a name="_Toc184521105"></a><a
name="_Toc184521012"></a><a name="_Toc184458952"></a><a name="_Toc181182465"></a><a
name="_Toc181180504"></a><a name="_Toc181172001"></a><a name="_Toc180917227"></a><a
name="_Toc180917082"></a><a name="_Toc180916825"></a><a name="_Toc180916672"></a><a
name="_Toc180916495"></a><a name="_Toc180916357"></a><a name="_Toc180913408">DEFERRALS</a></h3>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The Committee may permit or require a
Participant to defer such Participant's receipt of any Award, or payment in
settlement or exercise of any Award, provided that any such deferral must
comply with the applicable requirements of Section&nbsp;409A of the Code and
the Treasury regulations thereunder so that such deferral does not cause the
Participant to be subject to taxes and interest pursuant to Section&nbsp;409A
of the Code.</p>

<h3><a name="_Toc184521106"></a><a
name="_Toc184521013"></a><a name="_Toc184458953"></a><a name="_Toc181182466"></a><a
name="_Toc181180505"></a><a name="_Toc181172002"></a><a name="_Toc180917228"></a><a
name="_Toc180917083"></a><a name="_Toc180916826"></a><a name="_Toc180916673"></a><a
name="_Toc180916496"></a><a name="_Toc180916358"></a><a name="_Toc180913409">RIGHTS OF PERSONS ELIGIBLE TO
PARTICIPATE</a></h3>

<h3><a
name="_Toc180913410"></a><a name="_Toc184521107"></a><a name="_Toc184521014"></a><a
name="_Toc184458954"></a><a name="_Toc181182467"></a><a name="_Toc181180506"></a><a
name="_Toc181172003"></a><a name="_Toc180917229"></a><a name="_Toc180917084"></a><a
name="_Toc180916827"></a><a name="_Toc180916674"></a><a name="_Toc180916497"></a><a
name="_Toc180916359"><u>Employment</u></a>.&nbsp; Nothing in the Plan
or an Award Agreement shall interfere with or limit in any way the right of the
Company or an Affiliate to terminate any Participant's employment, consulting
or other service relationship with the Company or an Affiliate at any time, nor
confer upon any Participant any right to continue in the capacity in which he
or she is employed or otherwise serves the Company or an Affiliate.
</h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Neither an Award nor any benefits arising
under this Plan shall constitute part of an employment or service contract with
the Company or an Affiliate, and, accordingly, subject to the terms of this
Plan, this Plan may be terminated or modified at any time in the sole and
exclusive discretion of the Committee or the Board without giving rise to
liability on the part of the Company or an Affiliate for severance payments or
otherwise, except as provided in this Plan. </p>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>For purposes of the Plan, unless otherwise
provided by the Committee, a transfer of employment of a Participant between
the Company and an Affiliate or among Affiliates, shall not be deemed a
termination of employment.&nbsp; The Committee may provide in a Participant's Award
Agreement or otherwise the conditions under which a transfer of employment to
an entity that is spun off from the Company or an Affiliate shall not be deemed
a termination of employment for purposes of an Award. </p>

<h3><a
name="_Toc180913411"></a><a name="_Toc184521108"></a><a name="_Toc184521015"></a><a
name="_Toc184458955"></a><a name="_Toc181182468"></a><a name="_Toc181180507"></a><a
name="_Toc181172004"></a><a name="_Toc180917230"></a><a name="_Toc180917085"></a><a
name="_Toc180916828"></a><a name="_Toc180916675"></a><a name="_Toc180916498"></a><a
name="_Toc180916360"><u>Participation</u></a>.&nbsp; No Employee or other
person eligible to participate in the Plan shall have the right to be selected
to receive an Award.&nbsp; No person selected to receive an Award shall have the
right to be selected to receive a future Award, or, if selected to receive a
future Award, the right to receive such future Award on terms and conditions
identical or in proportion in any way to any prior Award.
</h3>

<h3><a
name="_Toc180913412"></a><a name="_Toc184521109"></a><a name="_Toc184521016"></a><a
name="_Toc184458956"></a><a name="_Toc181182469"></a><a name="_Toc181180508"></a><a
name="_Toc181172005"></a><a name="_Toc180917231"></a><a name="_Toc180917086"></a><a
name="_Toc180916829"></a><a name="_Toc180916676"></a><a name="_Toc180916499"></a><a
name="_Toc180916361"><u>Rights as a Stockholder</u></a>.&nbsp;
A Participant shall have none of the rights of a stockholder with respect to
Shares covered by any Award until the Participant becomes the record holder of
such Shares.</h3>

<h3><a name="_Toc184521110"></a><a
name="_Toc184521017"></a><a name="_Toc184458957"></a><a name="_Toc181182470"></a><a
name="_Toc181180509"></a><a name="_Toc181172006"></a><a name="_Toc180917232"></a><a
name="_Toc180917087"></a><a name="_Toc180916830"></a><a name="_Toc180916677"></a><a
name="_Toc180916500"></a><a name="_Toc180916362"></a><a name="_Toc180913413">CHANGE OF
CONTROL</a></h3>

<h3><a
name="_Toc180913414"></a><a name="_Toc184521111"></a><a name="_Toc184521018"></a><a
name="_Toc184458958"></a><a name="_Toc181182471"></a><a name="_Toc181180510"></a><a
name="_Toc181172007"></a><a name="_Toc180917233"></a><a name="_Toc180917088"></a><a
name="_Toc180916831"></a><a name="_Toc180916678"></a><a name="_Toc180916501"></a><a
name="_Toc180916363"><u>Accelerated Vesting and Payment</u></a>.&nbsp;
Subject to the provisions of Section 15.2 or as otherwise provided in the Award
Agreement, in the event of a Change of Control, unless otherwise specifically
prohibited under law or by the rules and regulations of a national securities
exchange or market on which Shares are listed or traded:
</h3>

<h3><a name="_Toc180916679">Any and all
Options and SARs granted hereunder shall be accelerated to become immediately
exercisable in full;</a></h3>

<h3><a name="_Toc180916680">Any Period of
Restriction and other restrictions imposed on Restricted Stock or Restricted
Stock Units shall lapse, and Restricted Stock Units shall be immediately
settled and payable;</a></h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180916681">A-</a>13</p>



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<h3>The target payout opportunities attainable
under all outstanding Awards of performance-based Restricted Stock,
performance-based Restricted Stock Units, Performance Units and Performance
Shares (including, but not limited to, Awards intended to be Performance-Based
Compensation) shall be deemed to have been fully earned based on targeted
performance being attained as of the effective date of the Change of Control,
and:</h3>

<h3><a name="_Toc180916682">The vesting of all
Awards denominated in Shares shall be accelerated as of the effective date of
the Change of Control, and shall be paid out to Participants within thirty (30)
days following the effective date of the Change of Control; and</a></h3>

<h3><a name="_Toc180916683">Awards denominated
in cash shall be paid to Participants in cash within thirty (30) days following
the effective date of the Change of Control;</a> </h3>

<h3><a name="_Toc180916684">Upon a Change of
Control, unless otherwise specifically provided in a written agreement entered
into between the Participant and the Company or an Affiliate, the Committee
shall immediately cause all other Stock-Based Awards to vest and be paid out as
determined by the Committee; and</a></h3>

<h3><a name="_Toc180916685">The Committee
shall have the discretion to unilaterally determine that all outstanding Awards
shall be cancelled upon a Change of Control, and that the value of such Awards,
as determined by the Committee in accordance with the terms of the Plan and the
Award Agreements, shall be paid out in cash in an amount based on the Change of
Control Price within a reasonable time subsequent to the Change of Control;
provided, however, that no such payment shall be made on account of an ISO
using a value higher than the FMV of the underlying Shares on the date of
settlement.</a>
</h3>

<h3><a
name="_Toc180913415"></a><a name="_Toc184521112"></a><a name="_Toc184521019"></a><a
name="_Toc184458959"></a><a name="_Toc181182472"></a><a name="_Toc181180511"></a><a
name="_Toc181172008"></a><a name="_Toc180917234"></a><a name="_Toc180917089"></a><a
name="_Toc180916832"></a><a name="_Toc180916686"></a><a name="_Toc180916502"></a><a
name="_Toc180916364"><u>Alternative Awards</u></a>.&nbsp;
Notwithstanding Section 15.1, no cancellation, acceleration of vesting, lapsing
of restrictions, payment of an Award, cash settlement or other payment shall
occur with respect to any Award if the Committee reasonably determines in good
faith prior to the occurrence of a Change of Control that such Award shall be
honored or assumed, or new rights substituted therefor (with such honored,
assumed or substituted Award hereinafter referred to as an &quot;Alternative Award&quot;)
by any successor to the Company or an Affiliate as described in Article 18;
provided, however, that any such Alternative Award must:
</h3>

<h3><a name="_Toc180916687">Be based on stock
which is traded on an established U.S. securities market, or that the Committee
reasonably believes will be so traded within sixty (60) days after the Change
of Control;</a>
</h3>

<h3><a name="_Toc180916688">Provide such
Participant with rights and entitlements substantially equivalent to or better
than the rights, terms and conditions applicable under such Award, including,
but not limited to, an identical or better exercise or vesting schedule and
identical or better timing and methods of payment;</a> </h3>

<h3><a name="_Toc180916689">Have substantially
equivalent economic value to such Award (determined at the time of the Change
of Control); and</a>
</h3>

<h3><a name="_Toc180916690">Have terms and
conditions which provide that in the event that the Participant's employment
with the Company, an Affiliate or any successor as described in Article&nbsp;18
is involuntarily terminated or Constructively Terminated, any conditions on a
Participant's rights under, or any restrictions on transfer or exercisability
applicable to, each such Alternative Award shall be waived or shall lapse, as
the case may be.</a></h3>

<h3><a
name="_Toc184521113"></a><a name="_Toc184521020"></a><a name="_Toc184458960"><u>Compliance
with Section 280G of the Code</u></a>.&nbsp; In the event that
any accelerated Award vesting or payment received or to be received by a
Participant pursuant to Section 15.1 herein (the &quot;Benefit&quot;) would (i)
constitute a &quot;parachute payment&quot; within the meaning of and subject to Section
280G of the Code and (ii) but for this Section 15.3, be subject to the excise
tax imposed by Section 4999 of the Code (the &quot;Excise Tax&quot;), then such Benefit
shall be reduced to the extent necessary so that no portion of the Benefit will
be subject to the Excise Tax, as determined in good faith by the Committee;
provided, however, that if, in the absence of any such reduction (or after such
reduction), the Participant believes that the Benefit or any portion thereof
(as reduced, if applicable) would be subject to the Excise Tax, the Benefit
shall be reduced (or further reduced) to the extent determined by the
Participant in his or her discretion so that the Excise Tax would not apply.&nbsp;
If, notwithstanding any such reduction (or in the absence of such reduction),
the Internal Revenue Service (&quot;IRS&quot;) determines that the Participant is liable
for the Excise Tax as a result of the Benefit, then the Participant shall be
obligated to return to the Company, within thirty days of such determination by
the IRS, a portion of the Benefit sufficient such that none of the Benefit
retained by the Participant constitutes a &quot;parachute payment&quot; within the
meaning of Section 280G of the Code that is subject to the Excise Tax.</h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc184521114"></a><a name="_Toc184521021"></a><a name="_Toc184458961"></a><a
name="_Toc181182473"></a><a name="_Toc181180512"></a><a name="_Toc181172009"></a><a
name="_Toc180917235"></a><a name="_Toc180917090"></a><a name="_Toc180916833"></a><a
name="_Toc180916691"></a><a name="_Toc180916503"></a><a name="_Toc180916365"></a><a
name="_Toc180913416">A-</a>14</p>



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<h3>AMENDMENT,
MODIFICATION, SUSPENSION AND TERMINATION</h3>

<h3><a
name="_Toc180913417"></a><a name="_Toc184521115"></a><a name="_Toc184521022"></a><a
name="_Toc184458962"></a><a name="_Toc181182474"></a><a name="_Toc181180513"></a><a
name="_Toc181172010"></a><a name="_Toc180917236"></a><a name="_Toc180917091"></a><a
name="_Toc180916834"></a><a name="_Toc180916692"></a><a name="_Toc180916504"></a><a
name="_Toc180916366"><u>Amendment, Modification, Suspension and Termination</u></a>.&nbsp;
The Committee or Board may, at any time and from time to time, alter, amend,
modify, suspend or terminate the Plan in whole or in part; provided, however,
that: </h3>

<h3><a name="_Toc180916693">Without the prior
approval of the Company's stockholders, Options and SARs issued under the Plan
shall not be repriced, replaced or regranted such that the Option Price of a
previously granted Option or the Grant Price of a previously granted SAR is
effectively reduced from the original Option Price or Grant Price, except for
adjustments to the Option Price or Grant Price applicable to outstanding Awards
pursuant to Section&nbsp;4.2 hereof.</a> </h3>

<h3>No amendment or modification which would
increase the total number of Shares available for issuance under the Plan or
the total number of Shares available for ISOs under the Plan shall be effective
unless approved by the Stockholders of the Company.</h3>

<h3><a name="_Toc180916694">To the extent
necessary under any applicable law, regulation or securities exchange or market
requirement, no amendment shall be effective unless approved by the
stockholders of the Company in accordance with applicable law, regulation, or
securities exchange or market requirement.</a> </h3>

<h3><a
name="_Toc180913418"></a><a name="_Toc184521116"></a><a name="_Toc184521023"></a><a
name="_Toc184458963"></a><a name="_Toc181182475"></a><a name="_Toc181180514"></a><a
name="_Toc181172011"></a><a name="_Toc180917237"></a><a name="_Toc180917092"></a><a
name="_Toc180916835"></a><a name="_Toc180916695"></a><a name="_Toc180916505"></a><a
name="_Toc180916367"><u>Adjustment of Awards Upon the Occurrence of Unusual or
Nonrecurring Events</u></a>.&nbsp; The Committee may make
adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events in addition to the
events described in Section 4.2 hereof affecting the Company or the financial
statements of the Company or of changes in applicable laws, regulations or
accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent unintended dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan.&nbsp;
The determination of the Committee as to the foregoing adjustments, if any,
shall be conclusive and binding on Participants under the Plan.&nbsp; To the extent
such adjustment affects Awards to Covered Employees intended to be Performance-Based
Compensation, they shall be prescribed in a form that meets the requirements of
Section 162(m) of the Code for deductibility.</h3>

<h3><a
name="_Toc180913419"></a><a name="_Toc184521117"></a><a name="_Toc184521024"></a><a
name="_Toc184458964"></a><a name="_Toc181182476"></a><a name="_Toc181180515"></a><a
name="_Toc181172012"></a><a name="_Toc180917238"></a><a name="_Toc180917093"></a><a
name="_Toc180916836"></a><a name="_Toc180916696"></a><a name="_Toc180916506"></a><a
name="_Toc180916368"><u>Awards Previously Granted</u></a>.&nbsp;
Notwithstanding any other provision of the Plan to the contrary, no
termination, amendment, suspension or modification of the Plan shall adversely
affect in any material way any Award previously granted under the Plan, without
the written consent of the Participant holding such Award.</h3>

<h3><a name="_Toc184521118"></a><a
name="_Toc184521025"></a><a name="_Toc184458965"></a><a name="_Toc181182477"></a><a
name="_Toc181180516"></a><a name="_Toc181172013"></a><a name="_Toc180917239"></a><a
name="_Toc180917094"></a><a name="_Toc180916837"></a><a name="_Toc180916697"></a><a
name="_Toc180916507"></a><a name="_Toc180916369"></a><a name="_Toc180913420">WITHHOLDING</a></h3>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The Company or any Affiliate shall have
the power and the right to deduct or withhold, or require a Participant to
remit to the Company or any Affiliate, an amount sufficient to satisfy federal,
state and local taxes, domestic or foreign (including the Participant's FICA
obligation), required by law or regulation to be withheld with respect to any
taxable event arising or as a result of this Plan or any Award hereunder.&nbsp; The
Committee may provide for Participants to satisfy withholding requirements by
having the Company withhold Shares or the Participant making such other
arrangements, in either case on such conditions as the Committee specifies.</p>

<h3><a name="_Toc184521119"></a><a
name="_Toc184521026"></a><a name="_Toc184458966"></a><a name="_Toc181182478"></a><a
name="_Toc181180517"></a><a name="_Toc181172014"></a><a name="_Toc180917240"></a><a
name="_Toc180917095"></a><a name="_Toc180916838"></a><a name="_Toc180916698"></a><a
name="_Toc180916508"></a><a name="_Toc180916370"></a><a name="_Toc180913421">SUCCESSORS</a></h3>

<p class=00BodyText5 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>Any obligations of the Company or an
Affiliate under the Plan with respect to Awards granted hereunder shall be
binding on any successor to the Company or Affiliate, respectively, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation or otherwise, of all or substantially all of the
businesses and/or assets of the Company or Affiliate, as applicable.</p>

<h3><a name="_Toc184521120"></a><a
name="_Toc184521027"></a><a name="_Toc184458967"></a><a name="_Toc181182479"></a><a
name="_Toc181180518"></a><a name="_Toc181172015"></a><a name="_Toc180917241"></a><a
name="_Toc180917096"></a><a name="_Toc180916839"></a><a name="_Toc180916699"></a><a
name="_Toc180916509"></a><a name="_Toc180916371"></a><a name="_Toc180913422">GENERAL PROVISIONS</a></h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913423"></a><a name="_Toc184521121"></a><a name="_Toc184521028"></a><a
name="_Toc184458968"></a><a name="_Toc181182480"></a><a name="_Toc181180519"></a><a
name="_Toc181172016"></a><a name="_Toc180917242"></a><a name="_Toc180917097"></a><a
name="_Toc180916840"></a><a name="_Toc180916700"></a><a name="_Toc180916510"></a><a
name="_Toc180916372">A-</a>15</p>



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<h3><u>Forfeiture
Events</u>.&nbsp; Without limiting in any way the generality of the
Committee's power to specify any terms and conditions of an Award consistent
with law, and for greater clarity, the Committee may specify in an Award
Agreement that the Participant's rights, payments and benefits with respect to
an Award shall be subject to reduction, cancellation, forfeiture or recoupment
upon the occurrence of certain specified events, in addition to any otherwise
applicable vesting or performance conditions of an Award.&nbsp; Such events may
include, but shall not be limited to, failure to accept the terms of the Award
Agreement, termination of employment under certain or all circumstances,
violation of material Company and Affiliate policies, breach of noncompetition,
confidentiality, nonsolicitation, noninterference, corporate property
protection or other agreements that may apply to the Participant, or other
conduct by the Participant that is detrimental to the business or reputation of
the Company and Affiliates. </h3>

<h3><a
name="_Toc180913424"></a><a name="_Toc184521122"></a><a name="_Toc184521029"></a><a
name="_Toc184458969"></a><a name="_Toc181182481"></a><a name="_Toc181180520"></a><a
name="_Toc181172017"></a><a name="_Toc180917243"></a><a name="_Toc180917098"></a><a
name="_Toc180916841"></a><a name="_Toc180916701"></a><a name="_Toc180916511"></a><a
name="_Toc180916373"><u>Legend</u></a>.&nbsp; The certificates for
Shares may include any legend that the Committee deems appropriate to reflect
any restrictions on transfer of such Shares.</h3>

<h3><a
name="_Toc180913425"></a><a name="_Toc184521123"></a><a name="_Toc184521030"></a><a
name="_Toc184458970"></a><a name="_Toc181182482"></a><a name="_Toc181180521"></a><a
name="_Toc181172018"></a><a name="_Toc180917244"></a><a name="_Toc180917099"></a><a
name="_Toc180916842"></a><a name="_Toc180916702"></a><a name="_Toc180916512"></a><a
name="_Toc180916374"><u>Delivery of Title</u></a>.&nbsp; The Company
shall have no obligation to issue or deliver evidence of title for Shares
issued under the Plan prior to: </h3>

<h3><a name="_Toc180916703">Obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable; and</a>
</h3>

<h3><a name="_Toc180916704">Completion of any
registration or other qualification of the Shares under any applicable law or ruling
of any governmental body that the Company determines to be necessary or
advisable.</a>
</h3>

<h3><a
name="_Toc180913426"></a><a name="_Toc184521124"></a><a name="_Toc184521031"></a><a
name="_Toc184458971"></a><a name="_Toc181182483"></a><a name="_Toc181180522"></a><a
name="_Toc181172019"></a><a name="_Toc180917245"></a><a name="_Toc180917100"></a><a
name="_Toc180916843"></a><a name="_Toc180916705"></a><a name="_Toc180916513"></a><a
name="_Toc180916375"><u>Investment Representations</u></a>.&nbsp;
The Committee may require each Participant receiving Shares pursuant to an
Award under this Plan to represent and warrant in writing that the Participant
is acquiring the Shares for investment and without any present intention to
sell or distribute such Shares. </h3>

<h3><a
name="_Toc180913427"></a><a name="_Toc184521125"></a><a name="_Toc184521032"></a><a
name="_Toc184458972"></a><a name="_Toc181182484"></a><a name="_Toc181180523"></a><a
name="_Toc181172020"></a><a name="_Toc180917246"></a><a name="_Toc180917101"></a><a
name="_Toc180916844"></a><a name="_Toc180916706"></a><a name="_Toc180916514"></a><a
name="_Toc180916376"><u>Uncertificated Shares</u></a>.&nbsp; To the extent
that the Plan provides for issuance of certificates to reflect the transfer of
Shares, the transfer of such Shares may be effected on a noncertificated basis
to the extent not prohibited by applicable law or the rules of any applicable
stock exchange. </h3>

<h3><a
name="_Toc180913428"></a><a name="_Toc184521126"></a><a name="_Toc184521033"></a><a
name="_Toc184458973"></a><a name="_Toc181182485"></a><a name="_Toc181180524"></a><a
name="_Toc181172021"></a><a name="_Toc180917247"></a><a name="_Toc180917102"></a><a
name="_Toc180916845"></a><a name="_Toc180916707"></a><a name="_Toc180916515"></a><a
name="_Toc180916377"><u>Unfunded Plan</u></a>.&nbsp; Participants shall
have no right, title or interest whatsoever in or to any investments that the
Company or an Affiliate may make to aid it in meeting its obligations under the
Plan.&nbsp; Nothing contained in the Plan, and no action taken pursuant to its
provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company or an Affiliate and any Participant,
beneficiary, legal representative or any other person.&nbsp; Awards shall be general
unsecured obligations of the Company, except that if an Affiliate executes an
Award Agreement instead of the Company the Award shall be a general unsecured
obligation of the Affiliate and not any obligation of the Company.&nbsp; To the
extent that any individual acquires a right to receive payments from the
Company or an Affiliate, such right shall be no greater than the right of an
unsecured general creditor of the Company or Affiliate, as applicable.&nbsp; All
payments to be made hereunder shall be paid from the general funds of the
Company or Affiliate, as applicable, and no special or separate fund shall be
established and no segregation of assets shall be made to assure payment of
such amounts except as expressly set forth in the Plan.&nbsp; The Plan is not
intended to be subject to ERISA.</h3>

<h3><a
name="_Toc180913429"></a><a name="_Toc184521127"></a><a name="_Toc184521034"></a><a
name="_Toc184458974"></a><a name="_Toc181182486"></a><a name="_Toc181180525"></a><a
name="_Toc181172022"></a><a name="_Toc180917248"></a><a name="_Toc180917103"></a><a
name="_Toc180916846"></a><a name="_Toc180916708"></a><a name="_Toc180916516"></a><a
name="_Toc180916378"><u>No Fractional Shares</u></a>.&nbsp; No fractional
Shares shall be issued or delivered pursuant to the Plan or any Award
Agreement.&nbsp; In such an instance, unless the Committee determines otherwise,
fractional Shares and any rights thereto shall be forfeited or otherwise
eliminated. </h3>

<h3><a
name="_Toc180913430"></a><a name="_Toc184521128"></a><a name="_Toc184521035"></a><a
name="_Toc184458975"></a><a name="_Toc181182487"></a><a name="_Toc181180526"></a><a
name="_Toc181172023"></a><a name="_Toc180917249"></a><a name="_Toc180917104"></a><a
name="_Toc180916847"></a><a name="_Toc180916709"></a><a name="_Toc180916517"></a><a
name="_Toc180916379"><u>Other Compensation and Benefit Plans</u></a>.&nbsp;
Nothing in this Plan shall be construed to limit the right of the Company or an
Affiliate to establish other compensation or benefit plans, programs, policies
or arrangements.&nbsp; Except as may be otherwise specifically stated in any other
benefit plan, policy, program or arrangement, no Award shall be treated as
compensation for purposes of calculating a Participant's rights under any such
other plan, policy, program or arrangement.</h3>

<h3><a
name="_Toc180913431"></a><a name="_Toc184521129"></a><a name="_Toc184521036"></a><a
name="_Toc184458976"></a><a name="_Toc181182488"></a><a name="_Toc181180527"></a><a
name="_Toc181172024"></a><a name="_Toc180917250"></a><a name="_Toc180917105"></a><a
name="_Toc180916848"></a><a name="_Toc180916710"></a><a name="_Toc180916518"></a><a
name="_Toc180916380"><u>No Constraint on Corporate Action</u></a>.&nbsp;
Nothing in this Plan shall be construed (i) to limit, impair or otherwise
affect the Company's or an Affiliate's right or power to make adjustments,
reclassifications, reorganizations or changes in its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell or transfer
all or any part of its business or assets, or (ii) to limit the right or power
of the Company or an Affiliate to take any action which such entity deems to be
necessary or appropriate. </h3>

<h3><a name="_Toc184521130"></a><a
name="_Toc184521037"></a><a name="_Toc184458977"></a><a name="_Toc181182489"></a><a
name="_Toc181180528"></a><a name="_Toc181172025"></a><a name="_Toc180917251"></a><a
name="_Toc180917106"></a><a name="_Toc180916849"></a><a name="_Toc180916711"></a><a
name="_Toc180916519"></a><a name="_Toc180916381"></a><a name="_Toc180913432">LEGAL CONSTRUCTION</a></h3>

<h3><a
name="_Toc180913433"></a><a name="_Toc184521131"></a><a name="_Toc184521038"></a><a
name="_Toc184458978"></a><a name="_Toc181182490"></a><a name="_Toc181180529"></a><a
name="_Toc181172026"></a><a name="_Toc180917252"></a><a name="_Toc180917107"></a><a
name="_Toc180916850"></a><a name="_Toc180916712"></a><a name="_Toc180916520"></a><a
name="_Toc180916382"><u>Gender and Number</u></a>.&nbsp; Except where
otherwise indicated by the context, any masculine term used herein also shall
include the feminine, the plural shall include the singular, and the singular
shall include the plural. </h3>

<h3><a
name="_Toc180913434"></a><a name="_Toc184521132"></a><a name="_Toc184521039"></a><a
name="_Toc184458979"></a><a name="_Toc181182491"></a><a name="_Toc181180530"></a><a
name="_Toc181172027"></a><a name="_Toc180917253"></a><a name="_Toc180917108"></a><a
name="_Toc180916851"></a><a name="_Toc180916713"></a><a name="_Toc180916521"></a><a
name="_Toc180916383"><u>Severability</u></a>.&nbsp; In the event any
provision of this Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included. </h3>

<p class=MsoFooter align=center style='text-align:center'><a
name="_Toc180913435"></a><a name="_Toc184521133"></a><a name="_Toc184521040"></a><a
name="_Toc184458980"></a><a name="_Toc181182492"></a><a name="_Toc181180531"></a><a
name="_Toc181172028"></a><a name="_Toc180917254"></a><a name="_Toc180917109"></a><a
name="_Toc180916852"></a><a name="_Toc180916714"></a><a name="_Toc180916522"></a><a
name="_Toc180916384">A-</a>16</p>



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<h3><u>Requirements
of Law</u>.&nbsp; The granting of Awards and the issuance of Shares under the
Plan shall be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national securities exchanges as
may be required.&nbsp; The Company or an Affiliate shall receive the consideration
required by law for the issuance of Awards under the Plan.
</h3>

<p class=00BodyText1 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The inability of the Company or an
Affiliate to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company or an Affiliate to be necessary for
the lawful issuance and sale of any Shares hereunder, shall relieve the Company
or Affiliate of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained. </p>

<h3><a
name="_Toc180913436"></a><a name="_Toc184521134"></a><a name="_Toc184521041"></a><a
name="_Toc184458981"></a><a name="_Toc181182493"></a><a name="_Toc181180532"></a><a
name="_Toc181172029"></a><a name="_Toc180917255"></a><a name="_Toc180917110"></a><a
name="_Toc180916853"></a><a name="_Toc180916715"></a><a name="_Toc180916523"></a><a
name="_Toc180916385"><u>Governing Law</u></a>.&nbsp; The Plan and each
Award Agreement shall be governed by the laws of the State of Colorado,
excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of the Plan to the substantive law of
another jurisdiction, except that the Nevada General Corporation Law shall
govern as to matters of corporate law pertaining to the Company.</h3>

<h3><u>Compliance
with Section 409A of the Code</u>.&nbsp; </h3>

<h3>To the extent applicable, it is intended
that this Plan and any Awards made hereunder shall not provide for the payment
of &quot;deferred compensation&quot; within the meaning of Section 409A of the Code or
shall be structured in a manner and have such terms and conditions that would
not cause a Participant to be subject to taxes and interest pursuant to Section
409A of the Code.&nbsp; This Plan and any Awards made hereunder shall be
administrated and interpreted in a manner consistent with this intent, and any
provision that would cause this Plan or any Award made hereunder to become
subject to taxation under Section 409A of the Code shall have no force and
effect until amended to comply with Section 409A of the Code (which amendment
may be retroactive to the extent permitted by Section 409A of the Code and may
be made by the Company without the consent of Participants).</h3>

<h3>Notwithstanding anything in this Plan or
in any Award Agreement to the contrary, to the extent that any amount or
benefit that would constitute &quot;deferred compensation&quot; for purposes of Section
409A of the Code would otherwise be payable or distributable under this Plan or
any Award Agreement by reason of the occurrence of a Change of Control or the
Participant's disability or separation from service, such amount or benefit
will not be payable or distributable to the Participant by reason of such
circumstance unless (i) the circumstances giving rise to such Change of
Control, disability or separation from service meet the description or
definition of &quot;change in control event,&quot; &quot;disability,&quot; or &quot;separation from
service,&quot; as the case may be, in Section 409A of the Code and applicable
proposed or final Treasury regulations thereunder, and (ii) the payment or
distribution of such amount or benefit would otherwise comply with Section 409A
of the Code and not subject the Participant to taxes and interest pursuant to
Section 409A of the Code (which may require, if the Participant is a &quot;specified
employee&quot; within the meaning of Section 409A of the Code, that the payment date
shall not be earlier than the date that is six (6) months after the date of the
Participant's separation from service).&nbsp; This provision does not prohibit the
vesting of any Award or the vesting of any right to eventual payment or
distribution of any amount or benefit under this Plan or any Award Agreement.</h3>

<p class=MsoFooter align=center style='text-align:center'>Notwithstanding
anything in this Plan or in any Award Agreement to the contrary, to the extent
necessary to avoid the application of Section 409A of the Code, (i) the
Committee may not amend an outstanding Option, SAR or similar Award to extend
the time to exercise such Award beyond the later of the 15th day of the third
month following the date at which, or December 31 of the calendar year in
which, the Award would otherwise have expired if the Award had not been
extended, based on the terms of the Award at the original grant date (the &quot;Safe
Harbor Extension Period&quot;), and (ii) any purported extension of the exercise
period of an outstanding Award beyond the Safe Harbor Extension Period shall be
deemed to be an amendment to the last day of the Safe Harbor Extension Period
and no later.
A-17</p>



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