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<SEC-DOCUMENT>0000825324-08-000002.txt : 20080130
<SEC-HEADER>0000825324-08-000002.hdr.sgml : 20080130
<ACCEPTANCE-DATETIME>20080130151058
ACCESSION NUMBER:		0000825324-08-000002
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080130
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20080130
DATE AS OF CHANGE:		20080130

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18590
		FILM NUMBER:		08561058

	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>8-K
<SEQUENCE>1
<FILENAME>form8kapprovalomnibus2.htm
<TEXT>
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<p class=MsoTitle><b>&nbsp;</b></p>

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<p class=MsoTitle><b>&nbsp;</b></p>

<p class=MsoTitle><b>UNITED STATES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>SECURITIES AND EXCHANGE COMMISSION</b></p>

<p class=MsoNormal align=center style='text-align:center'>Washington, D.C. 20549</p>



<p class=MsoNormal align=center style='text-align:center'><b>FORM 8-K</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CURRENT REPORT</b></p>

<p class=MsoNormal><b>&nbsp;</b></p>

<h3>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</h3>



<p class=MsoNormal align=center style='text-align:center'>Date of Report (Date of earliest event reported)</p>

<p class=MsoNormal align=center style='text-align:center'>January 29, 2008</p>



<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'>(Exact name of registrant as specified in its charter)</p>



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  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Nevada</p>
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  <td width=234 valign=top style='width:175.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>000-18590</p>
  </td>
  <td width=168 valign=top style='width:126.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>84-1133368</p>
  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>(State or other
  jurisdiction</p>
  </td>
  <td width=234 valign=top style='width:175.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>(Commission File Number)</p>
  </td>
  <td width=168 valign=top style='width:126.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>(IRS Employer</p>
  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>of incorporation)</p>
  </td>
  <td width=234 valign=top style='width:175.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=168 valign=top style='width:126.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Identification No.)</p>
  </td>
 </tr>
</table>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>



<p class=MsoNormal align=center style='text-align:center'>601 Corporate Circle, Golden, Colorado 80401</p>

<p class=MsoNormal align=center style='text-align:center'>(Address of principal executive offices)&nbsp;&nbsp; (Zip Code)</p>



<p class=MsoNormal align=center style='text-align:center'>Registrant's telephone number, including area code:
(303) 384-1400</p>



<p class=MsoNormal align=center style='text-align:center'>Not applicable</p>

<p class=MsoNormal align=center style='text-align:center'>(Former name or former address, if changed since last
report.)</p>





<p class=MsoNormal>Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2.):<br>
<br>
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)<br>
<br>
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)<br>
<br>
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))<br>
<br>
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))</p>



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<p class=MsoNormal><b>&nbsp;</b></p>

<pre><b>Item 1.01 Entry Into A Material Definitive Agreement</b></pre><pre>&nbsp;</pre><pre>On January 24, 2008, at the Annual Meeting of Shareholders of Good Times Restaurants, Inc. (the &quot;Company&quot;), the shareholders of the Company approved the Good Times Restaurants, Inc. 2008 Omnibus Equity Plan (the &quot;Omnibus Plan&quot;), which was previously approved by the Compensation Committee of the Board of Directors and further approved and adopted by the Board of Directors of the Company on December 6, 2007, subject to shareholder approval. The Omnibus Plan became effective upon approval by the shareholders of the Company.</pre><pre><br>
For a description of the material features of the Omnibus Plan, please refer to the Company's Definitive Proxy Statement for the Annual Meeting of Shareholders held on January 24, 2008, a copy of which was filed with the Securities and Exchange Commission (the &quot;Commission&quot;) on December 28, 2007.</pre><pre>&nbsp;</pre><pre><b>Item 9.01 Financial Statements and Exhibits</b></pre><pre><br>
The following Exhibit is furnished as part of this report:</pre><pre>&nbsp;</pre>

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  <p><b>Exhibit No.</b></p>
  </td>
  <td width=511 valign=top style='width:383.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p><b>Description</b></p>
  </td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p>10.1</p>
  </td>
  <td width=511 valign=top style='width:383.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p>2008 Omnibus Equity Plan</p>
  </td>
 </tr>
</table>







<h3><b>SIGNATURES</b></h3>



<p class=MsoBodyTextIndent3>Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</p>





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  </td>
  <td width=350 valign=top style='width:3.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>GOOD TIMES RESTAURANTS
  INC.</b></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top style='width:3.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Date:&nbsp; January 30, 2008</p>
  </td>
  <td width=350 valign=top style='width:3.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>By: <u>/s/ Boyd E. Hoback</u></p>
  </td>
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  <td width=288 valign=top style='width:3.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=350 valign=top style='width:3.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Boyd E. Hoback</p>
  </td>
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  <td width=288 valign=top style='width:3.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=350 valign=top style='width:3.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>President and Chief
  Executive Officer</p>
  </td>
 </tr>
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<div>

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<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>theplan1.htm
<TEXT>
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<body lang=EN-US>



<p class=MsoNormal align=center style='text-align:center;line-height:normal'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'><b>&nbsp;</b></p>









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

<p class=MsoNormal align=center style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:center;line-height:normal'>
2008 OMNIBUS EQUITY INCENTIVE
COMPENSATION PLAN</p>

<p class=MsoNormal style='line-height:normal'><b>ESTABLISHMENT, PURPOSE AND
DURATION</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Establishment of the Plan</u></b>.&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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Purpose of the Plan</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Duration of the Plan</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Successor Plan</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b>DEFINITIONS</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(a) &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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal align=center style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:center;line-height:normal'>A-1</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

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</div>









<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;<u>Change of Control</u>&quot; shall occur if
any of the following events occur: </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:1.0in;line-height:normal'>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; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:1.0in;line-height:normal'>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);
</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:1.0in;line-height:normal'>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 Any other event occurs which the Board of Directors
declares to be a Change of Control. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:.5in;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:1.0in;line-height:normal'>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; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:1.0in;line-height:normal'>Reducing the Employee's base salary below the rate
in effect at the time of a Change of Control; or</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;text-indent:1.0in;line-height:normal'>Failing to pay the Employee's base salary, other
wages or employment-related benefits as required by law.</p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'>A-2</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;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal align=center style='text-align:center;line-height:normal'>A-3</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

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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;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>(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=MsoNormal align=center style='text-align:center;line-height:normal'>
A-4</p>

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text-align:center;line-height:normal'>

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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;line-height:normal'>(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>

<p class=MsoNormal style='line-height:normal'><b>ADMINISTRATION</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>General</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Authority of the Committee</u></b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>.&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>

<p class=MsoNormal style='line-height:normal'><b><u>Delegation</u></b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>.&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>

<p class=MsoNormal style='line-height:normal'><b>SHARES SUBJECT TO THE PLAN AND
MAXIMUM AWARDS</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Number of Shares Available for
Awards</u></b><b>.&nbsp;
</b>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. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>



<p class=MsoNormal style='line-height:normal'><b><u>Options and SAR</u></b><b>:&nbsp; </b>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. </p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'><a
name="_Toc180916587">A-</a>5</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

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<p class=MsoNormal style='line-height:normal'><b><u>Restricted Stock/Restricted Stock Units</u></b><b>:&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916588"><b><u>Performance Shares/Performance
Units</u></b></a><b>:&nbsp;
</b>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. </p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916590"><b><u>Stock Awards</u></b></a><b>:&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Adjustments in Authorized Shares</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b>ELIGIBILITY AND PARTICIPATION</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Eligibility</u></b><b>.&nbsp; </b>Individuals eligible to
participate in the Plan include all Employees, Non-Employee Directors and
Consultants.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Actual Participation</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b>STOCK OPTIONS</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Grant of Options</u></b><b>.&nbsp; </b>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. </p>









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<p class=MsoNormal style='line-height:normal'><b><u>Award Agreement</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Option Price</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Duration of Options</u></b><b>.&nbsp; </b>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; </p>

<p class=MsoNormal style='line-height:normal'><b><u>Exercise of Options</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Payment</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b><u>Restrictions on Share
Transferability</u></b><b>.&nbsp;
</b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Termination of Employment</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Nontransferability of Options</u></b><b><u>.</u></b></p>



<p class=MsoNormal style='line-height:normal'><b><u>Incentive Stock Options</u></b><b>.&nbsp; </b>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.</p>

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name="_Toc180916606">A-</a>7</p>

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<p class=MsoNormal style='line-height:normal'><b><u>Nonqualified Stock Options</u></b>.&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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Notification of Disqualifying
Disposition</u></b><b>.&nbsp;
</b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>$100,000 Annual ISO Limitation</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b>STOCK APPRECIATION RIGHTS</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Grant of SARs</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b><u>SAR Agreement</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Term of SAR</u></b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b><u>Exercise of Freestanding </u></b><u>SARs</u>&nbsp; Freestanding SARs may be
exercised upon whatever terms and conditions the Committee, in its sole
discretion, imposes. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Exercise of Tandem SARs</u></b>.&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. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>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>

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<p class=MsoNormal style='line-height:normal'><b><u>Payment of SAR Amount</u></b>.&nbsp; Upon the exercise of an
SAR, a Participant shall be entitled to receive payment from the Company in an
amount representing 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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Termination of Employment</u></b>.&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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Nontransferability of SARs</u></b>.&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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Other Restrictions</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b>RESTRICTED STOCK AND RESTRICTED
STOCK UNITS</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Grant of Restricted Stock or
Restricted Stock Units</u></b>.&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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Restricted Stock or Restricted
Stock Unit Agreement</u></b><b>.&nbsp;
</b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Nontransferability of Restricted
Stock and Restricted Stock Units</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Other Restrictions</u></b><b>.&nbsp; </b>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. </p>



<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'>A-9</p>

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&nbsp;

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b><u>Certificate Legend</u></b>.&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: </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b><u>Voting Rights</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Dividends and Other Distributions</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Termination of Employment</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Payment in Settlement of
Restricted Stock Units</u></b><b>.&nbsp;
</b>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.</p>

<p class=MsoNormal style='line-height:normal'><b>PERFORMANCE SHARES AND
PERFORMANCE UNITS</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Grant of Performance Shares and
Performance Units</u></b><b>.&nbsp;
</b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Value of Performance Shares and
Performance Units</u></b><b>.&nbsp;
</b>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. </p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'>A-10</p>

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<p class=MsoNormal style='line-height:normal'><b><u>Earning of Performance Shares and Performance Units</u></b>.&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.
</p>

<p class=MsoNormal style='line-height:normal'><b><u>Form and Timing of Payment of
Performance Shares and Performance Units</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Dividends and Other Distributions</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Termination of Employment</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Nontransferability of Performance
Shares and Performance Units</u></b>.&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.</p>

<p class=MsoNormal style='line-height:normal'><b>STOCK-BASED AWARDS</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Stock-Based Awards</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Termination of Employment</u></b>.&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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Nontransferability of Stock-Based
Awards</u></b><b>.&nbsp;
</b>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.</p>

<p class=MsoNormal style='line-height:normal'><b>PERFORMANCE MEASURES</b></p>







<p class=MsoNormal align=center style='text-align:center;line-height:normal'>A-11</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

<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:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916648">Net earnings or net income
(before or after taxes);</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916649">Earnings per share;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916650">Net sales growth;</a></p>

<p class=MsoNormal style='line-height:normal'>Revenue
growth;</p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916651">Same store sales levels or
growth;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916652">Net operating profit;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916653">Operating earnings;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916654">Operating earnings per share;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916655">Return measures (including, but
not limited to, return on assets, capital, equity or sales);</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916656">Cash flow (including, but not
limited to, operating cash flow, free cash flow and cash flow return on
capital);</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916657">Earnings before or after taxes,
interest, depreciation and/or amortization, and including/excluding capital
gains and losses;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916658">Gross or operating margins;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916659">Productivity ratios;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916660">Share price (including, but not
limited to, growth measures and total stockholder return);</a> </p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916661">Operating and/or non-operating
expense levels or reductions;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916663">Operating efficiency;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916664">Customer satisfaction;</a></p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916665">Employee satisfaction;</a> and</p>



<p class=MsoNormal style='line-height:normal'>Working
capital levels or targets.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal align=center style='text-align:center;line-height:normal'>A-12</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

<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:normal'><b>BENEFICIARY
DESIGNATION</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b>DEFERRALS</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b>RIGHTS OF PERSONS ELIGIBLE TO
PARTICIPATE</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Employment</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b><u>Participation</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Rights as a Stockholder</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b>CHANGE OF CONTROL</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Accelerated Vesting and Payment</u></b><b>.&nbsp; </b>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: </p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916679">Any and all Options and SARs
granted hereunder shall be accelerated to become immediately exercisable in
full;</a></p>



<p class=MsoNormal style='line-height:normal'>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=MsoNormal align=center style='text-align:center;line-height:normal'><a
name="_Toc180916681">A-</a>13</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

<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:normal'>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:</p>

<p class=MsoNormal style='line-height:normal'><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></p>

<p class=MsoNormal style='line-height:normal'><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>
</p>

<p class=MsoNormal style='line-height:normal'><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></p>

<p class=MsoNormal style='line-height:normal'><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> </p>

<p class=MsoNormal style='line-height:normal'><b><u>Alternative Awards</u></b><b>.&nbsp; </b>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: </p>

<p class=MsoNormal style='line-height:normal'><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> </p>

<p class=MsoNormal style='line-height:normal'><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>
</p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916689">Have substantially equivalent
economic value to such Award (determined at the time of the Change of Control);
and</a> </p>

<p class=MsoNormal style='line-height:normal'><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></p>



<p class=MsoNormal style='line-height:normal'><b><u>Compliance with Section 280G of the Code</u></b>.&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<b> </b>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<b>.</b></p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'>A-14</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

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

</div>









<p class=MsoNormal style='line-height:normal'><b>AMENDMENT,
MODIFICATION, SUSPENSION AND TERMINATION</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Amendment, Modification,
Suspension and Termination</u></b><b>.&nbsp;
</b>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: </p>

<p class=MsoNormal style='line-height:normal'><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>
</p>

<p class=MsoNormal style='line-height:normal'>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.</p>

<p class=MsoNormal style='line-height:normal'><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<b> accordance with </b>applicable law, regulation, or securities exchange or
market requirement.</a>
</p>

<p class=MsoNormal style='line-height:normal'><b><u>Adjustment of Awards Upon the
Occurrence of Unusual or Nonrecurring Events</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Awards Previously Granted</u></b>.&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.</p>

<p class=MsoNormal style='line-height:normal'><b>WITHHOLDING</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>



<p class=MsoNormal style='line-height:normal'><b>SUCCESSORS</b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b>GENERAL PROVISIONS</b></p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'>A-15</p>

<div class=MsoNormal align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:normal'>

<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:normal'><b><u>Forfeiture Events</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Legend</u></b><b>.&nbsp; </b>The certificates for Shares may
include any legend that the Committee deems appropriate to reflect any
restrictions on transfer of such Shares.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Delivery of Title</u></b>.&nbsp; The Company shall have no
obligation to issue or deliver evidence of title for Shares issued under the
Plan prior to: </p>

<p class=MsoNormal style='line-height:normal'><a name="_Toc180916703">Obtaining any approvals from
governmental agencies that the Company determines are necessary or advisable;
and</a> </p>

<p class=MsoNormal style='line-height:normal'><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> </p>

<p class=MsoNormal style='line-height:normal'><b><u>Investment Representations</u></b><b>.&nbsp; </b>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.
</p>

<p class=MsoNormal style='line-height:normal'><b><u>Uncertificated Shares</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Unfunded Plan</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>No Fractional Shares</u></b><b>.&nbsp; </b>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. </p>

<p class=MsoNormal style='line-height:normal'><b><u>Other Compensation and Benefit
Plans</u></b><b>.&nbsp;
</b>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.</p>



<p class=MsoNormal style='line-height:normal'><b><u>No Constraint on Corporate Action</u></b>.&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. </p>

<p class=MsoNormal style='line-height:normal'><b>LEGAL CONSTRUCTION</b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Gender and Number</u></b><b>.&nbsp;</b> 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.<b> </b></p>

<p class=MsoNormal style='line-height:normal'><b><u>Severability</u></b><b>.&nbsp; </b>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.<b> </b></p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'>A-16</p>

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<p class=MsoNormal style='line-height:normal'><b><u>Requirements of Law</u></b><b>.&nbsp; </b>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.<b> </b></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;line-height:normal'>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>

<p class=MsoNormal style='line-height:normal'><b><u>Governing Law</u></b><b>.&nbsp; </b>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.</p>

<p class=MsoNormal style='line-height:normal'><b><u>Compliance with Section 409A of the Code</u></b><b>.&nbsp; </b></p>

<p class=MsoNormal style='line-height:normal'>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).</p>

<p class=MsoNormal style='line-height:normal'>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.</p>

<p class=MsoNormal style='line-height:normal'>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.</p>

<p class=MsoNormal align=center style='text-align:center;line-height:normal'>&nbsp;A-17</p>



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