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<SEC-DOCUMENT>0000890163-08-000028.txt : 20080118
<SEC-HEADER>0000890163-08-000028.hdr.sgml : 20080118
<ACCEPTANCE-DATETIME>20080118172809
ACCESSION NUMBER:		0000890163-08-000028
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20080118
DATE AS OF CHANGE:		20080118
EFFECTIVENESS DATE:		20080118

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIPEX PHARMACEUTICALS, INC.
		CENTRAL INDEX KEY:			0000894158
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				133808303
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148764
		FILM NUMBER:		08539607

	BUSINESS ADDRESS:	
		STREET 1:		3985 RESEARCH PARK DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108
		BUSINESS PHONE:		734-332-7800

	MAIL ADDRESS:	
		STREET 1:		3985 RESEARCH PARK DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SHEFFIELD PHARMACEUTICALS INC
		DATE OF NAME CHANGE:	19970730

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SHEFFIELD MEDICAL TECHNOLOGIES INC
		DATE OF NAME CHANGE:	19940606
</SEC-HEADER>
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<TYPE>S-8
<SEQUENCE>1
<FILENAME>s11-8078_s8.htm
<DESCRIPTION>S-8
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<TITLE> </TITLE>
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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JANUARY 18, 2008.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>REGISTRATION NO. 333-</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=5>UNITED STATES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=5>SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2> </font><font SIZE=2>WASHINGTON, D.C. 20549</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=5>FORM S-8</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2> </font><b><font SIZE=2>REGISTRATION STATEMENT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>UNDER</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>THE SECURITIES ACT OF 1933</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=5>PIPEX PHARMACEUTICALS, INC.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2> (Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="106%" style='border-collapse:collapse'>
    <tr style='height:24.0pt'>
        <td width="50%" style='height:24.0pt'>
            <p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font SIZE=2>DELAWARE</font></p> </td>
        <td width="50%" style='height:24.0pt'>
            <p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>13-3808303</font></p> </td> </tr>
    <tr style='height:24.0pt'>
        <td width="50%" style='height:24.0pt'>
            <p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>(State or other jurisdiction</font></p>
<p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>of incorporation or organization)</font></p> </td>
        <td width="50%" style='height:24.0pt'>
            <p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>(I.R.S. Employer No.)</font></p>
<p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>Identification Number)</font><br > <br > </p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>3930 Varsity Drive</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Ann Arbor, MI 48108</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(734) 332-7800</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2> (Address, including ZIP code, and telephone number, including</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>area code, of registrant's principal executive office)</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>2001 STOCK INCENTIVE PLAN</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2007 STOCK INCENTIVE PLAN</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Full title of the Plan)</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font SIZE=2>PIPEX PHARMACEUTICALS, INC.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3930 Varsity Drive</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Ann Arbor, MI 48108</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Name, address and telephone number of agent of services)</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font SIZE=2>WITH COPIES TO:</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font SIZE=2>HANK GRACIN, ESQ.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>LEHMAN &amp; EILEN LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20283 State Road 7, Suite 300</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Boca Raton, FL 33498</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(561) 237-0804</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Name, address and telephone number)</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 of the Securities Act of 1933, check the following box |X|</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
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<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>CALCULATION OF REGISTRATION FEE</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="104%" style='border-collapse:collapse'>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>TITLE OF SECURITIES BEING REGISTERED</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>AMOUNT TO BE REGISTERED(1)</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>PROPOSED MAXIMUM OFFERING PRICE PER SHARE(2)</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>PROPOSED </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>AGGREGATE </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>OFFERING PRICE</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>AMOUNT OF </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>REGISTRATION FEE (3)</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Common Stock, par value $0.001 per share, under the 2001 Stock Incentive Plan</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>1,500,000</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$5.15</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$7,725,000</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$303.59</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Common Stock, par value $0.001 per share, under the 2007 Stock Incentive Plan</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2,500,000</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$5.15</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$12,875,000</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$505.99</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="18%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4,000,000</font></p> </td>
        <td width="21%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$5.15</font></p> </td>
        <td width="27%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$20,600,000</font></p> </td>
        <td width="16%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$809.58</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0  style='margin-left:.25in;border-collapse:collapse'>
    <tr >
        <td width="4%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td  valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pursuant to Rule 416, this Registration Statement also covers any additional shares of the Registrant&#146;s common stock that may become issuable under the 2001 Stock Incentive Plan or the 2007 Stock Incentive Plan by reason of any stock dividend, stock split, recapitalization or any other similar transaction effected without the receipt of consideration which results in an increase in the number of Registrant&#146;s outstanding shares of common stock.</font></p> </td> </tr>
    <tr >
        <td width="4%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>
        <td  valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Estimated solely for the purpose of computing the registration fee pursuant to Rule 457 (c) and (h) under the Securities Act of 1933, as amended, on the basis of the average of the high and low prices of the securities being registered hereby on the American Stock Exchange (the "AMEX") on January 14, 2008.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:11.25pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="596" style='margin-left:.25in;border-collapse:collapse'>
    <tr >
        <td width="4%" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(3)</font></p> </td>
        <td width="95%" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Calculated under Section 6(b) of the Securities Act of 1933 as .0000393 of the aggregate offering price.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:11.25pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>EXPLANATORY NOTE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Pipex Pharmaceuticals, Inc. (the &#147;Registrant&#148; or the &#147;Company&#148;) hereby files this Registration Statement on Form S-8 relating to its common stock, par value $0.001 per share (the &#147;Common Stock&#148;), which have been reserved for issuance and are issuable pursuant to (i) the Company&#146;s 2001 Stock Incentive Plan and (ii) the Company&#146;s 2007 Stock Incentive Plan (hereinafter referred to as the &#147;Plans&#148;). </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>PART I</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:justify;'><font size=2>The information specified in Item 1 and Item 2 of Part I of this Registration Statement on Form S-8 (the &#147;Registration Statement&#148;) is omitted from this filing in accordance with the provisions of Rule 428 under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), and the introductory note to Part I of Form S-8.  The documents containing the information specified in Part I will be delivered to the participants in the Plans as required by Rule 428(b)(1). Such documents and the documents incorporated by reference in this Registration Statement pursuant to Item 3 of Part II of this Registration Statement, taken together, constitute a prospectus that meets the requirements of Section 10(a) of the Securities Act.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>PART II</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font SIZE=2>ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>The following documents are incorporated by reference in this Registration Statement:</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>(a) Registrant's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the SEC on April 2, 2007;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>(b) Registrant&#146;s Quarterly Reports on Form 10-QSB for the quarters ended September 30, 2007, June 30, 2007 and March 31, 2007 filed with the SEC on November 14, 2007, August 14, 2007 and May 14, 2007, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>(c) The Company&#146;s Current Reports on Form 8-K filed on February 22, 2007, April 2, 2007, April 5, 2007, June 26, 2007, July 10, 2007, July 26, 2007, September 21, 2007, October 3, 2007, October 16, 2007, October 18, 2007, November 5, 2007, and November 8, 2007; </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>(d) All other reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;) since December 31, 2006;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>(e) The description of Registrant's Common Stock contained in the Registrant's Registration Statement on Form SB-2, as amended, filed with the Commission on December 14, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>All reports and other documents subsequently filed by the Company pursuant to Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange Act shall be deemed to be incorporated by reference in this Registration Statement and to be a part of this Registration Statement from the respective date of filing of each of those reports or documents until the filing of a post-effective amendment to this Registration Statement which indicates either that all securities offered by this Registration Statement have been sold or which deregisters all of the securities under this Registration Statement then remaining unsold.</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:left;'><font size=2>Any statement contained in this Registration Statement or in a document incorporated or deemed to be incorporated by reference in this Registration Statement shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained in this Registration Statement or in any other subsequently filed document which also is or is deemed to be incorporated by reference in this Registration Statement modifies or supersedes that statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font SIZE=2>ITEM 4. DESCRIPTION OF SECURITIES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Not applicable. </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font SIZE=2>ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Not applicable.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font SIZE=2>ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Section 145 of the General Corporation Law of the State of Delaware (the "DGCL") gives the Registrant power to indemnify each of its directors and officers against expenses and liabilities in connection with any proceedings involving him by reason of his being or having been a director or officer if (a) he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Registrant and (b) with respect to any criminal proceeding, he had no reasonable cause to believe his conduct was unlawful. However, in a proceeding by or in the right of the Registrant, there shall be no indemnification in respect of any liabilities or expenses if the officer or director shall have been adjudged liable to the Registrant unless the court in such proceeding determines he is entitled to indemnification for such liabilities and/or expenses. Furthermore, no indemnification shall
be made to or on behalf of a director or officer if a judgment or other final adjudication adverse to such director or officer establishes that his acts or omissions (a) were in breach of his duty of loyalty to the Registrant and its stockholders, (b) were not in good faith or involved a knowing violation of law or (c) resulted in receipt by the director or officer of an improper personal benefit. The DGCL defines an act or omission in breach of a person's duty of loyalty as an act or omission which that person knows or believes to be contrary to the best interests of the Registrant or its stockholders in connection with a matter in which he has a material conflict of interest. If a director or officer is successful in a proceeding, the statute mandates that the Registrant indemnify him against expenses.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>The Registrant's Certificate of Incorporation, as permitted by Delaware law, eliminates the personal liability of the directors and officers to the Registrant or its shareholders for monetary damages for breaches of such director's or officer's duty of care or other duties as a director or officer; except liabilities for any breach of duty based upon an act or omission (a) in breach of such person's duty of loyalty to the corporation or its shareholders, (b) not in good faith or involving a knowing violation of law, or (c) resulting in receipt by such person of an improper personal benefit. This limitation on liability could have the effect of limiting directors' and officers' liability for violations of the federal securities laws. In addition, the Registrant's Certificate of Incorporation and By-Laws provide broad indemnification rights to directors and officers so long as the director or officer acted
in a manner believed in good faith to be in or not opposed to the best interest of the Registrant and with respect to criminal proceedings if the director had no reasonable cause to believe his or her conduct was unlawful. The Registrant believes that the protection provided by these provisions will help the Registrant attract and retain qualified individuals to service as officers and directors. These provisions would provide indemnification for liabilities arising under the federal securities laws to the extent that such indemnification is found to be enforceable under, and to be in accordance with, applicable law and generally will limit the remedies available to a shareholder who is dissatisfied with a Board decision protected by these provisions, and such shareholder's only remedy may be to bring a suit to prevent the Board's action.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font SIZE=2>ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Not applicable.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font SIZE=2>ITEM 8. EXHIBITS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="103%" style='border-collapse:collapse'>
    <tr >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><u><font size=2>Exhibit No.</font></u><u></u></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><u><font size=2>Description of Document</font></u><u></u></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=1>&nbsp;</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>3.1</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>Certificate of Incorporation of the Registrant (incorporated herein by reference to Registrant&#146;s Form 10-KSB for the fiscal year ended December 31, 1996 (&#147;Form 10-KSB&#148;)</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>3.2</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>By-laws of the Registrant (incorporated herein by reference to the Registrant&#146;s Form 10-KSB)</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>4.1</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>Registrant&#146;s 2001 Incentive Stock Plan </font></p> </td> </tr>
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        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>4.2</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>Registrant&#146;s 2007 Incentive Stock Plan</font></p> </td> </tr>
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        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>5.1</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>Opinion of counsel re: legality of securities being registered</font></p> </td> </tr>
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        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>23.1</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>Consent of Berman &amp; Company, PA</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>23.2</font></p> </td>
        <td width="84%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:121.5%'><font size=2>Consent of Counsel (included in Exhibit 5.1)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font SIZE=2>ITEM 9. UNDERTAKINGS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>The undersigned Registrant hereby undertakes:</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>1. To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>i. To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended; </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>ii. To reflect in the prospectus any facts or events arising after the effective date of this registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>iii. To include any material information with respect to the plan of distribution not previously disclosed in this registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the Registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this Registration Statement.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>2. That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>3. To remove from registration by means of a post-effective amendment any of the securities being registered that remain unsold at the termination of the offering.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant's annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>SIGNATURES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Ann Arbor, Michigan, on the 15th day of January, 2008.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>PIPEX PHARMACEUTICALS, INC.</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="51%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:27.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:  </font><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Steve H. Kanzer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u><u></u></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:  Steve H. Kanzer</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="51%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:  Chairman and Chief Executive Officer</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Principal executive officer and </font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="51%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>principal financial officer)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="508" style='border-collapse:collapse'>
    <tr >
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="56%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 15, 2008</font></p> </td>
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="24%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Steve H. Kanzer</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Steve H. Kanzer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Chairman and Chief Executive Office</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>(Principal executive officer and principal financial Officer)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="507" style='border-collapse:collapse'>
    <tr >
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="56%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 15, 2008</font></p> </td>
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="24%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Jeffrey J. Kraws</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Jeffrey J. Kraws</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Director</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="508" style='border-collapse:collapse'>
    <tr >
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="56%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 15, 2008</font></p> </td>
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="24%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Nicholas Stergis</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Nicholas Stergis</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Director</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="508" style='border-collapse:collapse'>
    <tr >
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="56%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 15, 2008</font></p> </td>
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="24%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Charles Bisgaier</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Charles Bisgaier</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Director</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="471" style='border-collapse:collapse'>
    <tr >
        <td width="10%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="61%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 15, 2008</font></p> </td>
        <td width="10%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="18%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Jeff Wolf</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Jeff Wolf</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Director</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="515" style='border-collapse:collapse'>
    <tr >
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="55%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 15, 2008</font></p> </td>
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="25%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Daniel J. Dorman</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Daniel J. Dorman</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Director</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="489" style='border-collapse:collapse'>
    <tr >
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="58%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 15, 2008</font></p> </td>
        <td width="9%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="21%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ James S Kuo</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>James S. Kuo</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:4in;text-align:left;'><font size=2>Director</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="603" style='border-collapse:collapse'>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exhibit</font></u></p> </td>
        <td width="13%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Description</font></u></p> </td>
        <td   colspan="6">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1</font></p> </td>
        <td  colspan="4" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certificate of Incorporation (1)</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2</font></p> </td>
        <td  colspan="2" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By-Laws (1)</font></p> </td>
        <td   colspan="5">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.1</font></p> </td>
        <td  colspan="3" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2001 Incentive Stock Plan (2)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.2</font></p> </td>
        <td  colspan="3" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2007 Incentive Stock Plan (2)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.1</font></p> </td>
        <td  colspan="6" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Opinion of Lehman &amp; Eilen LLP Re: Legality of Shares (2)</font></p> </td>
        <td  width="27%">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23.1</font></p> </td>
        <td  colspan="7" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Consent of Berman &amp; Company, P.A., Independent Registered Public Accounting Firm (2)</font></p> </td> </tr>
    <tr >
        <td width="15%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23.2</font></p> </td>
        <td  colspan="5" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Consent of Lehman &amp; Eilen LLP (contained in Exhibit 5.1)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="96" ></td>

        <td width="83" ></td>

        <td width="4" ></td>

        <td width="92" ></td>

        <td width="7" ></td>

        <td width="152" ></td>

        <td width="1" ></td>

        <td width="168" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:11.25pt; margin-left:3.69in;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>_____________________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>(1) Incorporated by reference to the Registrant&#146;s Form 10-KSB for the fiscal year ended December 31, 1996.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>(2) Filed herewith.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>2
<FILENAME>s11-8078_ex41.htm
<DESCRIPTION>EXHIBIT 4.1
<TEXT>
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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:right;'><b><font SIZE=2>EXHIBIT 4.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:7.2pt; margin-top:0pt;text-align:center;line-height:130%;'><font SIZE=2>PIPEX, INC.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;line-height:116.6667%;'><font size=2>2001 STOCK INCENTIVE PLAN</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;line-height:116.6667%;'><font SIZE=2>ARTICLE I</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt; text-indent:1.19in;text-align:left;'><font size=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Purpose</font></u><font size=2>. The purpose of the Pipex, Inc. 2001 Stock Incentive Plan (the "Plan") is to provide for officers, other employees and directors of, and consultants to, Pipex, Inc. (the "Company" or "Pipex") and its subsidiaries an incentive (a) to enter into and remain in the service of the Company, (b) to enhance the long-term performance of the Company and (c) to acquire a proprietary interest in the success of the Company.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="147" style='margin-left:74.25pt;border-collapse:collapse'>
    <tr >
        <td width="30%" valign=top style='padding:.2in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.2</font></p> </td>
        <td width="69%" valign=top style='padding:.2in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Administration &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>1.2.1 Subject to Section 1.2.6, the Plan shall be administered by the Compensation Committee (the "Committee") of the board of directors of the Company (the "Board"), which shall consist of not less than three directors. The members of the Committee shall be appointed by, and serve at the pleasure of, the Board. To the extent required for transactions under the Plan to qualify for the exemptions available under Rule 16b-3 ("Rule 16b-3") promulgated under the Securities Exchange Act of 1934 (the "1934 Act"), all actions relating to awards to persons subject to Section 16 of the 1934 Act shall be taken by the Board unless each person who serves on the Committee is a "non-employee director" within the meaning of Rule 16b-3 or such actions are taken by a subcommittee of the Committee (or the Board) comprised solely of "non-employee directors". To the extent required for
compensation realized from awards under the Plan to be deductible by the Company pursuant to section 162(m) of the Internal Revenue Code of 1986 (the "Code"), the members of the Committee shall be "outside directors" within the meaning of section 162(m).</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>1.2.2 The Committee shall have the authority (a) to exercise all of the powers granted to it under the Plan, (b) to construe, interpret and implement the Plan and any Plan Agreements executed pursuant to Section 2.1, (c) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules governing its own operations, (d) to make all determinations necessary or advisable in administering the Plan, (e) to correct any defect, supply any omission and reconcile any inconsistency in the Plan, (1) to amend the Plan to reflect changes in applicable law, (g) to determine whether, to what extent and under what circumstances awards may be settled or exercised in cash, shares of Stock, other securities, other awards or other property, or canceled, forfeited or suspended and the method or methods by which awards may be settled, canceled, forfeited or
suspended, and (h) to determine whether, to what extent and under what circumstances cash, shares of Stock, other securities, other awards or other property and other amounts payable with respect to an award shall be deferred either automatically or at the election of the holder thereof or of the Committee.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>1.2.3 Actions of the Committee shall be taken by the vote of a majority of its members. Any action may be taken by a written instrument signed by a majority of the Committee members, and action so taken shall be fully as effective as if it had been taken by a vote at a meeting.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>1.2.4 The determination of the Committee on all matters relating to the Plan or any Plan Agreement shall be final, binding and conclusive.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>1.2.5 No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any award thereunder.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>1.2.6 Notwithstanding anything to the contrary contained herein: (a) until the Board shall appoint the members of the Committee, the Plan shall be administered by the Board; and (b) the Board may, in its sole discretion, at any time and from time to time, grant awards or resolve to administer the Plan. In either of the foregoing events, the Board shall have all of the authority and responsibility granted to the Committee herein.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.3</font></p> </td>
        <td width="76%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Persons Eligible for Awards &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:left;'><font size=2>Awards under the Plan may be made to such directors, officers and other employees of the Company and its subsidiaries (including prospective employees conditioned on their becoming employees), and to such consultants to the Company and its subsidiaries (collectively, "key persons") as the Committee shall in its discretion select.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt;text-align:left;'><font size=2>&nbsp;</font></p>


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    <tr >
        <td width="25%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.4</font></p> </td>
        <td width="74%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Types of Awards Under Plan</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:9pt; text-indent:0.9in;text-align:justify;'><font size=2>Awards may be made under the Plan in the form of (a) incentive stock options (within the meaning of section 422 of the Code), (b) nonqualified stock options, (c) stock appreciation rights, (d) dividend equivalent rights, (e) restricted stock, (0 restricted stock units and (g) other stock-based awards, all as more fully set forth in Article II. The term "award" means any of the foregoing. No incentive stock option (other than an incentive stock option that may be assumed or issued by the Company in connection with a transaction to which section 424(a) of the Code applies) may be granted to a person who is not an employee of the Company on the date of grant.</font></p>

<p style=' margin-bottom:0pt; margin-top:9pt; text-indent:0.9in;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.5</font></p> </td>
        <td width="74%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Shares Available for Awards &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>1.5.1 The total number of shares of Common Stock of the Company ("Stock"), which may be transferred pursuant to awards granted under the Plan shall not exceed 15% of the total of the issued and outstanding Stock, including Common and Preferred Stock as of the effective date of the Plan. Such shares may be authorized but unissued Stock or authorized and issued Stock held in the Company's treasury or acquired by the Company for the purposes of the Plan. The Committee may direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares pursuant to the Plan. If, after the effective date of the Plan, any award is forfeited or any award otherwise terminates or is cancelled without the delivery of shares of Stock, then the shares covered by such award or to which such award relates
shall again become available for transfer pursuant to awards granted or to be granted under this Plan. Any shares of Stock delivered by the Company, any shares of Stock with respect to which awards are made by the Company and any shares of Stock with respect to which the Company becomes obligated to make awards, through the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity, shall not be counted against the shares available for awards under this Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:9pt; text-indent:1.35in;text-align:left;'><font size=2>1.5.2 The total number of shares of Stock with respect to which stock options and stock appreciation rights may be granted to any one employee of the Company or a subsidiary during any one -year period shall not exceed 250,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:9pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:justify;'><font size=2>1.5.3 Upon certain changes in Stock, the number of shares of Stock available for issuance with respect to awards under the Plan, as set forth in Sections 1.5.1 and 1.5.2, shall be adjusted pursuant to Section 3.7.1.</font></p>
<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.45in; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>



<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.45in; text-indent:0.9in;text-align:left;'><font size=2>1.5.4 Except as provided in this Section 1.5 and in Section 2.3.7, there shall be no limit on the number or the value of the shares of Stock that may be subject to awards to any individual under the Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.45in; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.6</font></p> </td>
        <td width="78%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Definitions of Certain Terms &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>1.6.1 The "Fair Market Value" of a share of Stock on any day shall be determined as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.4in;text-align:left;'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the principal market for the Stock (the "Market") is a national securities exchange or the National Association of Securities Dealers Automated Quotation System ("NASDAQ") National Market, the last sale price or, if no reported sales take place on the applicable date, the average of the high bid and low asked price of Stock as reported for such Market on such date or, if no such quotation is made on such date, on the next preceding day on which there were quotations, provided that such quotations shall have been made within the ten (10) business days preceding the applicable date;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.4in;text-align:left;'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the Market is the NASDAQ National List, the NASDAQ Supplemental List or another market, the average of the high bid and low asked price for Stock on the applicable date, or, if no such quotations shall have been made on such date, on the next preceding day on which there were quotations, provided that such quotations shall have been made within the ten (10) business days preceding the applicable date; or</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>(c) In the event that neither paragraph (a) nor (b) shall apply, the Fair Market Value of a share of Stock on any day shall be determined in good faith by the Committee.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>1.6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term "incentive stock option" means an option that is intended to qualify for special federal income tax treatment pursuant to sections 421 and 422 of the Code, as now constituted or subsequently amended, or pursuant to a successor provision of the Code, and which is so designated in the applicable Plan Agreement. Any option that is not specifically designated as an incentive stock option shall under no circumstances be considered an incentive stock option. Any option that is not an incentive stock option is referred to herein as a "nonqualified stock option."</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>1.6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term "employment" means, in the case of a grantee of an award under the Plan who is not an employee of the Company, the grantee's association with the Company or a subsidiary as a director, consultant or otherwise.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>1.6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A grantee shall be deemed to have a "termination of employment" upon ceasing to be employed by the Company and all of its subsidiaries or by a corporation assuming awards in a transaction to which section 424(a) of the Code applies. The Committee may in its discretion determine (a) whether any leave of absence constitutes a termination of employment for purposes of the Plan, (b) the impact, if any, of any such leave of absence on awards theretofore made under the Plan, and (c) when a change in a non-employee's association with the Company constitutes a termination of employment for purposes of the Plan. The Committee shall have the right to determine whether the termination of a grantee's employment is a dismissal for cause and the date of termination in such case, which date the Committee may retroactively deem to be the date
of the action that is cause for dismissal. Such determinations of the Committee shall be final, binding and conclusive.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>1.6.5 The term "cause," when used in connection with termination of a grantee's employment, shall have the meaning set forth in any then-effective employment agreement between the grantee and the Company or a subsidiary thereof. In the absence of or in addition to, as the case may be, such an employment agreement provision, "cause" means: (a) conviction of any crime (whether or not involving the Company) constituting a felony in the jurisdiction involved; (b) engaging in any substantiated act involving moral turpitude; (c) engaging in any act which, in each case, subjects, or if generally known would subject, the Company to public ridicule or embarrassment; (d) material violation of the Company's policies, including, without limitation, those relating to sexual harassment or the disclosure or misuse of confidential information; (e) serious neglect or misconduct in the performance of the
grantee's duties for the Company or a subsidiary or willful or repeated failure or refusal to perform such duties; in each case as determined by the Committee, which determination shall be final, binding and conclusive.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ARTICLE II</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AWARDS UNDER THE PLAN</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="243" style='margin-left:.5in;border-collapse:collapse'>
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        <td width="19%" valign=top style='padding:.25in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.1</font></p> </td>
        <td width="80%" valign=top style='padding:.25in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Agreements Evidencing Awards &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:left;'><font size=2>Each award granted under the Plan (except an award of unrestricted stock) shall be evidenced by a written agreement ("Plan Agreement") which shall contain such provisions as the Committee in its discretion deems necessary or desirable. Such provisions may include, without limitation, a requirement that the grantee become a party to a shareholders' agreement with respect to any shares of Stock acquired pursuant to the award, a requirement that the grantee acknowledge that such shares are acquired for investment purposes only, and a right of first refusal exercisable by the Company in the event that the grantee wishes to transfer any such shares. The Committee may grant awards in tandem with or in substitution for any other award or awards granted under this Plan or any award granted under any other plan of the Company or any subsidiary. Payments or transfers to be made by the Company or any
subsidiary upon the grant, exercise or payment of an award may be made in such form as the Committee shall determine, including cash, shares of Stock, other securities, other awards or other property and may be made in a single payment or transfer, in installments or on a deferred basis, in each case in accordance with rules established by the Committee. By accepting an award pursuant to the Plan, a grantee thereby agrees that the award shall be subject to all of the terms and provisions of the Plan and the applicable Plan Agreement.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.2</font></p> </td>
        <td width="76%" valign=top style='padding:.1in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>No Rights as a Shareholder &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:0.9in;text-align:left;'><font size=2>No grantee of an option or stock appreciation right (or other person having the right to exercise such award) shall have any of the rights of a shareholder of the Company with respect to shares subject to such award until the issuance of a stock certificate to such person for such shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="10%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.3</font></p> </td>
        <td width="89%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Grant of Stock Options, Stock Appreciation Rights and Reload Options &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.3.1 The Committee may grant incentive stock options and nonqualified stock options (collectively, "options") to purchase shares of Stock from the Company, to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall determine in its discretion, subject to the provisions of the Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.3.2 The Committee may grant stock appreciation rights to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall determine in its discretion, subject to the provisions of the Plan. Stock appreciation rights may be granted in connection with all or any part of, or independently of, any option granted under the Plan. A stock appreciation right granted in connection with a nonqualified stock option may be granted at or after the time of grant of such option. A stock appreciation right granted in connection with an incentive stock option may be granted only at the time of grant of such option.</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.35in;text-align:left;'><font size=2>2.3.3 The grantee of a stock appreciation right shall have the right, subject to the terms of the Plan and the applicable Plan Agreement, to receive from the Company an amount equal to (a) the excess of the Fair Market Value of a share of Stock on the date of exercise of the stock appreciation right over (b) the exercise price of such right as set forth in the Plan Agreement (or over the option exercise price if the stock appreciation right is granted in connection with an option), multiplied by (c) the number of shares with respect to which the stock appreciation right is exercised. Payment upon exercise of a stock appreciation right shall be in cash or in shares of Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or both, all as the Committee shall determine in its discretion. Upon the exercise of a stock appreciation right granted in
connection with an option, the number of shares subject to the option shall be correspondingly reduced by the number of shares with respect to which the stock appreciation right is exercised. Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number of shares subject to the stock </font></p>

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<p style=' margin-bottom:0pt; margin-top:3.6pt;text-align:left;'><font size=2>appreciation right shall be correspondingly reduced by the number of shares with respect to which the option is exercised.</font></p>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.3.4 Each Plan Agreement with respect to an option shall set forth the amount (the "option exercise price") payable by the grantee to the Company upon exercise of the option evidenced thereby. The option exercise price per share shall be determined by the Committee in its discretion; provided, however, that the option exercise price of an incentive stock option shall be at least 100% of the Fair Market Value of a share of Stock on the date the option is granted (except as permitted in connection with the assumption or issuance of options in a transaction to which section 424(a) of the Code applies), and provided further that in no event shall the option exercise price be less than the par value of a share of Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:justify;'><font size=2>2.3.5 Each Plan Agreement with respect to an option or stock appreciation right shall set forth the periods during which the award evidenced thereby shall be exercisable, whether in whole or in part. Such periods shall be determined by the Committee in its discretion; provided, however, that no incentive stock option (or a stock appreciation right granted in connection with an incentive stock option) shall be exercisable more than 10 years after the date of grant.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.4in;text-align:left;'><font size=2>2.3.6 The Committee may in its discretion include in any Plan Agreement with respect to an option (the "original option") a provision that an additional option (the "additional option") shall be granted to any grantee who, pursuant to Section 2.4.3(b), delivers shares of Stock in partial or full payment of the exercise price of the original option. The additional option shall be for a number of shares of Stock equal to the number thus delivered, shall have an exercise price equal to the Fair Market Value of a share of Stock on the date of exercise of the original option, and shall have an expiration date no later than the expiration date of the original option. In the event that a Plan Agreement provides for the grant of an additional option, such Agreement shall also provide that the exercise price of the original option be no less than the Fair Market Value of a share of Stock on its
date of grant, and that any shares that are delivered pursuant to Section 2.4.3(b) in payment of such exercise price shall have been held for at least six months.</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.4in;text-align:left;'><font size=2>2.3.7 To the extent that the aggregate Fair Market Value (determined as of the time the option is granted) of the stock with respect to which incentive stock options granted under this Plan and all other plans of the Company and any subsidiary are first exercisable by any employee during any calendar year shall exceed the maximum limit (currently, $100,000), if any, imposed from time to time under section 422 of the Code, such options shall be treated as nonqualified stock options.</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.4in;text-align:justify;'><font size=2>2.3.8 Notwithstanding the provisions of Sections 2.3.4 and 2.3.5, to the extent required under section 422 of the Code, an incentive stock option may not be granted under the Plan to an individual who, at the time the option is granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of his employer corporation or of its parent or subsidiary corporations (as such ownership may be determined for purposes of section 422(b)(6) of the Code) unless (a) at the time such incentive stock option is granted the option exercise price is at least 110% of the Fair Market Value of the shares subject thereto and (b) the incentive stock option by its terms is not exercisable after the expiration of 5 years from the date it is granted.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.4in;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.4</font></p> </td>
        <td width="79%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exercise of Options and Stock Appreciation Rights &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:left;'><font size=2>Subject to the provisions of this Article II, each option or stock appreciation right granted under the Plan shall be exercisable as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.4.1 Unless the applicable Plan Agreement otherwise provides, an option or stock appreciation right shall become exercisable in three substantially equal installments, on each of the first, second and third anniversaries of the date of grant, and each installment, once it becomes exercisable, shall remain </font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt;text-align:left;'><font size=2>exercisable until expiration, cancellation or termination of the award.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.4.2 Unless the applicable Plan Agreement otherwise provides, an option or stock appreciation right may be exercised from time to time as to all or part of the shares as to which such award is then exercisable (but, in any event, only for whole shares). A stock appreciation right granted in connection with an option may be exercised at any time when, and to the same extent that, the related option may be exercised. An option or stock appreciation right shall be exercised by the filing of a written notice with the Company, on such form and in such manner as the Committee shall prescribe.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.35in;text-align:left;'><font size=2>2.4.3 Any written notice of exercise of an option shall be accompanied by payment for the shares being purchased. Such payment shall be made: (a) by certified or official bank check (or the equivalent thereof acceptable to the Company) for the full option exercise price; or (b) unless the applicable Plan Agreement provides otherwise, by delivery of shares of Stock (which, if acquired pursuant to exercise of a stock option, were acquired at least six months prior to the option exercise date) and having a Fair Market Value (determined as of the exercise date) equal to all or part of the option exercise price and a certified or official bank check (or the equivalent thereof acceptable to the Company) for any remaining portion of the full option exercise price; or (c) at the discretion of the Committee and to the extent permitted by law, by such other provision as the Committee may from time
to time prescribe.</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>2.4.4 Promptly after receiving payment of the full option exercise price, or after receiving notice of the exercise of a stock appreciation right for which payment will be made partly or entirely in shares, the Company shall, subject to the provisions of Section 3.3 (relating to certain restrictions), deliver to the grantee or to such other person as may then have the right to exercise the award, a certificate or certificates for the shares of Stock for which the award has been exercised. If the method of payment employed upon option exercise so requires, and if applicable law permits, an optionee may direct the Company to deliver the certificate(s) to the optionee's stockbroker.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="284" style='margin-left:64.5pt;border-collapse:collapse'>
    <tr >
        <td width="24%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.5</font></p> </td>
        <td width="75%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Termination of Employment; Death</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.35in;text-align:left;'><font size=2>2.5.1 Except to the extent otherwise provided in Section 2.5.2 or 2.5.3 or in the applicable Plan Agreement, all options and stock appreciation rights not theretofore exercised shall terminate upon termination of the grantee's employment for any reason (including death).</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.5.2 If a grantee's employment terminates for any reason other than death or dismissal for cause, the grantee may exercise any outstanding option or stock appreciation right on the following terms and conditions: (a) exercise may be made only to the extent that the grantee was entitled to exercise the award on the date of employment termination; and (b) exercise must occur within 90 days after employment terminates, except that this 90 day period shall be increased to one year if the termination is by reason of disability, but in no event after the expiration date of the award as set forth in the Plan Agreement. In the case of an incentive stock option, the term "disability" for purposes of the preceding sentence shall have the meaning given to it by section 422(c)(6) of the Code.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.5.3 If a grantee dies while employed by the Company or any subsidiary, or after employment termination but during the period in which the grantee's awards are exercisable pursuant to Section 2.5.2, any outstanding option or stock appreciation right shall be exercisable on the following terms and conditions: (a) exercise may be made only to the extent that the grantee was entitled to exercise the award on the date of death; and (b) exercise must occur by the earlier of the first anniversary of the grantee's death or the expiration date of the award. Any such exercise of an award following a grantee's death shall be made only by the grantee's executor or administrator, unless the grantee's will specifically disposes of such award, in which case such exercise shall be made only by the recipient of such specific disposition. If a grantee's personal representative or the recipient of a
specific disposition under the grantee's will shall be entitled to exercise any award pursuant to the </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt;text-align:left;'><font size=2>preceding sentence, such representative or recipient shall be bound by all the terms and conditions of the Plan and the applicable Plan Agreement which would have applied to the grantee including, without limitation, the provisions of Sections 3.3 and 3.7 hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="30%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.6</font></p> </td>
        <td width="69%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Grant of Restricted Stock</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.6.1 The Committee may grant restricted shares of Stock to such key persons, in such amounts, and subject to such terms and conditions as the Committee shall determine in its discretion, subject to the provisions of the Plan. Restricted stock awards may be made independently of or in connection with any other award under the Plan. A grantee of a restricted stock award shall have no rights with respect to such award unless such grantee accepts the award within such period as the Committee shall specify by executing a Plan Agreement in such form as the Committee shall determine and, if the Committee shall so require, makes payment to the Company by certified or official bank check (or the equivalent thereof acceptable to the Company) in such amount as the Committee may determine.</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>2.6.2 Promptly after a grantee accepts a restricted stock award, the Company shall issue in the grantee's name a certificate or certificates for the shares of Stock covered by the award. Upon the issuance of such certificate(s), the grantee shall have the rights of a shareholder with respect to the restricted stock, subject to the nontransferability restrictions and Company repurchase rights described in Sections 2.6.4 and 2.6.5 and to such other restrictions and conditions as the Committee in its discretion may include in the applicable Plan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.6.3 Unless the Committee shall otherwise determine, any certificate issued evidencing shares of restricted stock shall remain in the possession of the Company until such shares are free of any restrictions specified in the applicable Plan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>2.6.4 Shares of restricted stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided in this Plan or the applicable Plan Agreement. The Committee at the time of grant shall specify the date or dates (which may depend upon or be related to the attainment of performance goals and other conditions) on which the nontransferability of the restricted stock shall lapse. Unless the applicable Plan Agreement provides otherwise, additional shares of Stock or other property distributed to the grantee in respect of shares of restricted stock, as dividends or otherwise, shall be subject to the same restrictions applicable to such restricted stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.6.5 During the 120 days following termination of the grantee's employment for any reason, the Company shall have the right to require the return of any shares to which restrictions on transferability apply, in exchange for which the Company shall repay to the grantee (or the grantee's estate) any amount paid by the grantee for such shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="249" style='margin-left:1.0in;border-collapse:collapse'>
    <tr >
        <td width="24%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.7</font></p> </td>
        <td width="75%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Grant of Restricted Stock Units</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.7.1 The Committee may grant awards of restricted stock units to such key persons, in such amounts, and subject to such terms and conditions as the Committee shall determine in its discretion, subject to the provisions of the Plan. Restricted stock units may be awarded independently of or in connection with any other award under the Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>2.7.2 At the time of grant, the Committee shall specify the date or dates on which the restricted stock units shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate. In the event of the termination of the grantee's employment by the Company and its subsidiaries for any reason, restricted stock units that have not become nonforfeitable shall be forfeited and cancelled. The Committee at any time may accelerate vesting dates and otherwise waive or amend any conditions of an award of restricted stock units.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.35in;text-align:left;'><font size=2>2.7.3 At the time of grant, the Committee shall specify the maturity date applicable to each grant of restricted stock units, which may be determined at the election of the grantee. Such date may be later than the vesting date or dates of the award. On the maturity date, the Company shall transfer to the grantee one unrestricted, fully transferable share of Stock for each restricted stock unit scheduled to be paid out on such date and not previously forfeited. The Committee shall specify the purchase price, if any, to be paid by the grantee to the Company for such shares of Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="224" style='margin-left:64.5pt;border-collapse:collapse'>
    <tr >
        <td width="26%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.8</font></p> </td>
        <td width="73%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Other Stock-Based Awards &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:0.9in;text-align:left;'><font size=2>The Committee may grant other types of stock-based awards (including the grant of unrestricted shares) to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall in its discretion determine, subject to the provisions of the Plan. Such awards may entail the transfer of actual shares of Stock to Plan participants, or payment in cash or otherwise of amounts based on the value of shares of Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="289" style='margin-left:64.5pt;border-collapse:collapse'>
    <tr >
        <td width="23%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.9</font></p> </td>
        <td width="76%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Grant of Dividend Equivalent Rights</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:1.8pt; margin-left:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.9in;text-align:left;'><font size=2>The Committee may in its discretion include in the Plan Agreement with respect to any award a dividend equivalent right entitling the grantee to receive amounts equal to the ordinary dividends that would be paid, during the time such award is outstanding and unexercised, on the shares of Stock covered by such award if such shares were then outstanding. In the event such a provision is included in a Plan Agreement, the Committee shall determine whether such payments shall be made in cash, in shares of Stock or in another form, whether they shall be conditioned upon the exercise of the award to which they relate, the time or times at which they shall be made, and such other terms and conditions as the Committee shall deem appropriate.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ARTICLE III</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>MISCELLANEOUS</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="349" style='margin-left:1.0in;border-collapse:collapse'>
    <tr >
        <td width="19%" valign=top style='padding:.25in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1</font></p> </td>
        <td width="80%" valign=top style='padding:.25in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Amendment of the Plan; Modification of Awards &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.4in;text-align:left;'><font size=2>3.1.1 The Board may from time to time suspend, discontinue, revise or amend the Plan in any respect whatsoever, except that no such amendment shall materially impair any rights or materially increase any obligations under any award theretofore made under the Plan without the consent of the grantee (or, after the grantee's death, the person having the right to exercise the award). For purposes of this Section 3.1, any action of the Board or the Committee that alters or affects the tax treatment of any award shall not be considered to materially impair any rights of any grantee.</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.4in;text-align:left;'><font size=2>3.1.2 Shareholder approval of any amendment shall be obtained to the extent necessary to comply with section 422 of the Code (relating to incentive stock options) or other applicable law or regulation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>3.1.3 The Committee may amend any outstanding Plan Agreement, including, without limitation, by amendment which would accelerate the time or times at which the award becomes unrestricted or may be exercised, or waive or amend any goals, restrictions or conditions set forth in the Agreement. However, any such amendment (other than an amendment pursuant to Section 3.7.2, relating to change in control) that materially impairs the rights or materially increases the obligations of a grantee under an outstanding award shall be made only with the consent of the grantee (or, upon the grantee's death, the person having the right to exercise the award).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="163" style='margin-left:1.0in;border-collapse:collapse'>
    <tr >
        <td width="31%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2</font></p> </td>
        <td width="68%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Tax Withholding</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.4in;text-align:left;'><font size=2>3.2.1 As a condition to the receipt of any shares of Stock pursuant to any award or the lifting of restrictions on any award, or in connection with any other event that gives rise to a federal or other </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt;text-align:left;'><font size=2>governmental tax withholding obligation on the part of the Company relating to an award (including, without limitation, FICA tax), the Company shall be entitled to require that the grantee remit to the Company an amount sufficient in the opinion of the Company to satisfy such withholding obligation.</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>3.2.2 If the event giving rise to the withholding obligation is a transfer of shares of Stock, then, unless otherwise specified in the applicable Plan Agreement, the grantee may satisfy the withholding obligation imposed under Section 3.2.1 by electing to have the Company withhold shares of Stock having a Fair Market Value equal to the amount of tax to be withheld. For this purpose, Fair Market Value shall be determined as of the date on which the amount of tax to be withheld is determined (and any fractional share amount shall be settled in cash).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="132" style='margin-left:.5in;border-collapse:collapse'>
    <tr >
        <td width="36%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.3</font></p> </td>
        <td width="63%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Restrictions</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.35in;text-align:left;'><font size=2>3.3.1 If the Committee shall at any time determine that any consent (as hereinafter defined) is necessary or desirable as a condition of, or in connection with, the granting of any award under the Plan, the issuance or purchase of shares or other rights thereunder, or the taking of any other action thereunder (each such action being hereinafter referred to as a "plan action"), then such plan action shall not be taken, in whole or in part, unless and until such consent shall have been effected or obtained to the full satisfaction of the Committee.</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.35in;text-align:left;'><font size=2>3.3.2 The term "consent" as used herein with respect to any plan action means (a) any and all listings, registrations or qualifications in respect thereof upon any securities exchange or under any federal, state or local law, rule or regulation, (b) any and all written agreements and representations by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Committee shall deem necessary or desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made and (c) any and all consents, clearances and approvals in respect of a plan action by any governmental or other regulatory bodies.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="155" style='margin-left:71.25pt;border-collapse:collapse'>
    <tr >
        <td width="29%" valign=top style='padding:5.4pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.4</font></p> </td>
        <td width="70%" valign=top style='padding:5.4pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Nonassignability &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:0.9in;text-align:left;'><font size=2>Except to the extent otherwise provided in the applicable Plan Agreement, no award or right granted to any person under the Plan shall be assignable or transferable other than by will or by the laws of descent and distribution, and all such awards and rights shall be exercisable during the life of the grantee only by the grantee or the grantee's legal representative.</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


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    <tr >
        <td width="18%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.5</font></p> </td>
        <td width="81%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Notification of Election Under Code Section 83(11)</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:0.9in;text-align:left;'><font size=2>If any grantee shall, in connection with the acquisition of shares of Stock under the Plan, make the election permitted under section 83(b) of the Code (that is, an election to include in gross income in the year of transfer the amounts specified in section 83(b)), such grantee shall notify the Company of such election within 10 days of filing notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under the authority of Code section 83(b).</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="19%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.6</font></p> </td>
        <td width="80%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Notification Upon Disqualifying Disposition &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:left;'><font size=2>If any grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an incentive stock option under the circumstances described in section 421(b) of the Code (relating to certain disqualifying dispositions), such grantee shall notify the Company of such disposition within 10 days thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


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    <tr >
        <td width="23%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.7</font></p> </td>
        <td width="76%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Adjustment Upon Changes in Stock</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:1.8pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>3.7.1 </font><u><font size=2>Shares Available for Grants. </font></u><font size=2>In the event of any change in the number of shares of Stock outstanding by reason of any stock dividend or split, reverse stock split, recapitalization, merger, consolidation, combination or exchange of shares or similar corporate change, the maximum number of shares of Stock with respect to which the Committee may grant awards under Article II hereof, as described in Section 1.5.1, and the individual annual limit described in Section 1.5.2, shall be appropriately adjusted by the Committee. In the event of any change in the number of shares of Stock outstanding by reason of any other event or transaction, the Committee may, but need not, make such adjustments in the number and class of shares of Stock with respect to which awards: (i) may be granted under Article II hereof and (ii) granted to any one
employee of the Company or a subsidiary during any one calendar year, in each case as the Committee may deem appropriate, unless such adjustment would cause any award that would otherwise qualify as performance based compensation with respect to a "162(m) covered employee" (as defined in Section 162 of the Code), to cease to so qualify.</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>3.7.2 </font><u><font size=2>Outstanding Restricted Stock and Restricted Stock Units. </font></u><font size=2>Unless the Committee in its absolute discretion otherwise determines, any securities or other property (including dividends paid in cash) received by a grantee with respect to a share of restricted stock, the issue date with respect to which occurs prior to such event, but which has not vested as of the date of such event, as a result of any dividend, stock split, reverse stock split, recapitalization, merger, consolidation, combination, exchange of shares or otherwise will not vest until such share of restricted stock vests, and shall be promptly deposited with the Company or otherwise treated as was the certificate for the underlying share of restricted stock, pursuant to Section 2.6.3 hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.9in;text-align:left;'><font size=2>The Committee may, in its absolute discretion, adjust any grant of shares of restricted stock, the issue date with respect to which has not occurred as of the date of the occurrence of any of the following events, or any grant of restricted stock units, to reflect any dividend, stock split, reverse stock split, recapitalization, merger, consolidation, combination, exchange of shares or similar corporate change as the Committee may deem appropriate to prevent the enlargement or dilution of rights of grantees.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>3.7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Outstanding Options, Stock Appreciation Rights and Dividend Equivalent Rights &#151;Increase or Decrease in Issued Shares Without Consideration. </font></u><font size=2>Subject to any required action by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Stock resulting from a subdivision or consolidation of shares of Stock or the payment of a stock dividend (but only on the shares of Stock), or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company, the Committee shall proportionally adjust the number of shares of Stock subject to each outstanding option and stock appreciation right, and the exercise price-per-share of Stock of each such option and stock appreciation right and the number of
any related dividend equivalent rights.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>3.7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Outstanding Options, Stock Appreciation Rights and Dividend Equivalent Rights &#151;Certain Mergers. </font></u><font size=2>Subject to any required action by the stockholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders of shares of Stock receive securities of another corporation), each option, stock appreciation right and dividend equivalent right outstanding on the date of such merger or consolidation shall pertain to and apply to the securities which a holder of the number of shares of Stock subject to such option, stock appreciation right or dividend equivalent right would have received in such merger or consolidation.</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:5.4pt; text-indent:1.35in;text-align:left;'><font size=2>3.7.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Outstanding Options, Stock Appreciation Rights and Dividend Equivalent Rights &#151;Certain Other Transactions. </font></u><font size=2>In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all or substantially all of the Company's assets, (iii) a merger or consolidation involving the Company in which the Company is not the surviving corporation or (iv) a merger or consolidation involving the </font></p>

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<p style=' margin-bottom:0pt; margin-top:5.4pt;text-align:left;'><font size=2>Company in which the Company is the surviving corporation but the holders of shares of Stock receive securities of another corporation and/or other property, including cash, the Committee shall, in its absolute discretion, have the power to:</font></p>


<table border="0" cellspacing=0 cellpadding=0  style='margin-left:1.35in;border-collapse:collapse'>
    <tr >
        <td width="7%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>cancel, effective immediately prior to the occurrence of such event, each option and stock appreciation right (including each dividend equivalent right related thereto) outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted an amount in cash, for each share of Stock subject to such option or stock appreciation right, respectively, equal to the excess of (x) the value, as determined by the Committee in its absolute discretion, of the property (including cash) received by the holder of a share of Stock as a result of such event over (y) the exercise price of such option or stock appreciation right;</font></p> </td> </tr>
    <tr >
        <td width="7%" valign=top style='padding:.2in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:.2in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>cancel, effective immediately prior to the occurrence of such event, each option and stock appreciation right (including each dividend equivalent right related thereto) outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted, for each share of Stock subject to such option or stock appreciation right, respectively, the property (including cash) received by the holder of a share of Stock as a result of such event; or</font></p> </td> </tr>
    <tr >
        <td width="7%" valign=top style='padding:.2in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:.2in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>provide for the exchange of each option and stock appreciation right (including any related dividend equivalent right) outstanding immediately prior to such event (whether or not then exercisable) for an option on or stock appreciation right and dividend equivalent right with respect to, as appropriate, some or all of the property which a holder of the number of shares of Stock subject to such option or stock appreciation right would have received and, incident thereto, make an equitable adjustment as determined by the Committee in its absolute discretion in the exercise price of the option or stock appreciation right, or the number of shares or amount of property subject to the option, stock appreciation right or dividend equivalent right or, if appropriate, provide for a cash payment to the grantee to whom such option or stock
appreciation right was granted in partial consideration for the exchange of the option or stock appreciation right.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:14.4pt; margin-left:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.4in;text-align:left;'><font size=2>3.7.6 </font><u><font size=2>Outstanding Options, Stock Appreciation Rights and Dividend Equivalent Rights &#151; Other Changes. </font></u><font size=2>In the event of any change in the capitalization of the Company or a corporate change other than those specifically referred to in Sections 3.7.3, 3.7.4 or 3.7.5 hereof, the Committee may, in its absolute discretion, make such adjustments in the number and class of shares subject to options, stock appreciation rights and dividend equivalent rights outstanding on the date on which such change occurs and in the per-share exercise price of each such option and stock appreciation right as the Committee may consider appropriate to prevent dilution or enlargement of rights. In addition, if and to the extent the Committee determines it is appropriate, the Committee may elect to cancel each option and stock appreciation right (including each
dividend equivalent right related thereto) outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted an amount in cash, for each share of Stock subject to such option or stock appreciation right, respectively, equal to the excess of (i) the Fair Market Value of Stock on the date of such cancellation over (ii) the exercise price of such option or stock appreciation right.</font></p>

<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.35in;text-align:left;'><font size=2>3.7.7 </font><u><font size=2>No Other Rights. </font></u><font size=2>Except as expressly provided in the Plan, no grantee shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation. Except as expressly provided in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to an award or the exercise price of any option or stock appreciation right. Except as otherwise provided in Section 3.7, no adjustment shall be made for dividends, distributions or other rights
(whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate is issued.</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.8</font></p> </td>
        <td width="71%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Right of Discharge Reserved &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:3.6pt; margin-left:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.9in;text-align:left;'><font size=2>Nothing in the Plan or in any Plan Agreement shall confer upon any grantee the right to continue in the employ of the Company or affect any right which the Company may have to terminate such employment.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


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    <tr >
        <td width="27%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.9</font></p> </td>
        <td width="72%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Nature of Payments &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.4in;text-align:left;'><font size=2>3.9.1 Any and all grants of awards and issuances of shares of Stock under the Plan shall be in consideration of services performed for the Company by the grantee.</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>3.9.2 All such grants and issuances shall constitute a special incentive payment to the grantee and shall not be taken into account in computing the amount of salary or compensation of the grantee for the purpose of determining any benefits under any pension, retirement, profit-sharing, bonus, life insurance or other benefit plan of the Company or under any agreement between the Company and the grantee, unless such plan or agreement specifically provides otherwise.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.4in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="22%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.10</font></p> </td>
        <td width="77%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Non-Uniform Determinations &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:0.9in;text-align:left;'><font size=2>The Committee's determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, awards under the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Plan agreements, as to (a) the persons to receive awards under the Plan, (b) the terms and provisions of awards under the Plan, and (c) the treatment of leaves of absence pursuant to Section 1.6.4.</font></p>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="23%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.11</font></p> </td>
        <td width="76%" valign=top style='padding:.05in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Other Payments or Awards &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:justify;'><font size=2>Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company from making any award or payment to any person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.</font></p>

<p style=' margin-bottom:0pt; margin-top:7.2pt; text-indent:0.9in;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="28%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.12</font></p> </td>
        <td width="71%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Section Headings &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:9pt; text-indent:0.9in;text-align:left;'><font size=2>The section headings contained herein are for the purpose of convenience only and are not intended to define or limit the contents of the sections.</font></p>

<p style=' margin-bottom:0pt; margin-top:9pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:9pt; text-indent:0.9in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.13</font></p> </td>
        <td width="77%" valign=top style='padding:1.8pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Effective Date and Term of Plan &nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>3.13.1 The Plan was adopted by the Board on March 4, 2002, subject to approval by the Company's shareholders. All awards under the Plan prior to such shareholder approval are subject in their entirety to such approval. If such approval is not obtained prior to the first anniversary of the date of adoption of the Plan, the Plan and all awards thereunder shall terminate on that date.</font></p>

<p style=' margin-bottom:0pt; margin-top:10.8pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>3.13.2 Unless sooner terminated by the Board, the provisions of the Plan respecting the grant of incentive stock options shall terminate on the day before the tenth anniversary of the adoption of the Plan by the Board, and no incentive stock option awards shall thereafter be made under the Plan. All awards made under the Plan prior to its termination shall remain in effect until such awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable Plan Agreements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.35in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:3.6pt; margin-left:0.9in;text-align:left;'><font size=2>3.14 </font><u><font size=2>Governing Law</font></u></p>

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<p style=' margin-bottom:0pt; margin-top:1.8pt; text-indent:0.9in;text-align:left;'><font size=2>All rights and obligations under the Plan shall be construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflict of laws.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:right;'><b><font SIZE=2>EXHIBIT 4.2</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>PIPEX PHARMACEUTICALS, INC.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>2007 STOCK INCENTIVE PLAN</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>ARTICLE I</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>GENERAL</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>1.1 </font></b><u><b><font size=2>Purpose</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>The purpose of the Pipex Pharmaceuticals, Inc. 2007 Stock Incentive Plan (the &#147;Plan&#148;) is to provide an incentive for he employees, directors, and consultants to Pipex, Pharmaceuticals, Inc. (the &#147;Company&#148; or &#147;Pipex&#148;) and its subsidiaries an incentive (a) to enter into and remain in the service of the Company, (b) to enhance the long-term performance of the Company and (c) to acquire a proprietary interest in the success of the Company.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>1.2 </font></b><u><b><font size=2>Administration</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.2.1 The Plan shall be administered by the Compensation Committee (the &#147;Committee&#148;) of the board of directors of the Company (the &#147;Board&#148;), which shall consist of not less than two directors. The members of the Committee shall be appointed by, and serve at the pleasure of, the Board. To the extent required for transactions under the Plan to qualify for the exemptions available under Rule 16b-3 (&#147;Rule 16b-3&#148;) promulgated under the Securities Exchange Act of 1934 (the &#147;1934 Act&#148;), all actions relating to awards to persons subject to Section 16 of the 1934 Act shall be taken by the Board unless each person who serves on the Committee is a &#147;non-employee director&#148; within the meaning of Rule 16b-3 or such actions are taken by a sub-committee of the Committee (or the Board) comprised solely of &#147;non-employee directors&#148;. To the extent
required for compensation realized from awards under the Plan to be deductible by the Company pursuant to section 162(m) of the Internal Revenue Code of 1986 (the &#147;Code&#148;), the members of the Committee shall be &#147;outside directors&#148; within the meaning of section 162(m).</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.2.2 The Committee shall have the authority (a) to exercise all of the powers granted to it under the Plan, (b) to construe, interpret and implement the Plan and any Plan Agreements executed pursuant to Section 2.1, (c) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules governing its own operations, (d) to make all determinations necessary or advisable in administering the Plan, (e) to correct any defect, supply any omission and reconcile any inconsistency in the Plan, (f) to amend the Plan to reflect changes in applicable law, (g) to determine whether, to what extent and under what circumstances awards may be settled or exercised in cash, shares of the Company&#146;s common stock, par value $.001 (the &#147;Common Stock&#148;), other securities, other awards or other property, or canceled, forfeited or suspended and the method or methods by
which awards may be settled, canceled, forfeited or suspended, and (h) to determine whether, to what extent and under what circumstances cash, shares of the Common Stock, other securities, other awards or other property and other amounts payable with respect to an award shall be deferred either automatically or at the election of the holder thereof or of the Committee.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.2.3 Actions of the Committee shall be taken by the vote of a majority of its members. Any action may be taken by a written instrument signed by a majority of the Committee members, and action so taken shall be fully as effective as if it had been taken by a vote at a meeting.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.2.4 The determination of the Committee on all matters relating to the Plan or any Plan Agreement shall be final, binding and conclusive.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.2.5 No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any award thereunder.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.2.6 Notwithstanding anything to the contrary contained herein: (a) until the Board shall appoint the members of the Committee, the Plan shall be administered by the Board; and (b) the Board may, in its sole discretion, at any </font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>time and from time to time, grant awards or resolve to administer the Plan. In either of the foregoing events, the Board shall have all of the authority and responsibility granted to the Committee herein.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>1.3 </font></b><u><b><font size=2>Persons Eligible for Awards</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>Awards under the Plan may be made to such directors, officers and other employees of the Company and its subsidiaries (including prospective employees conditioned on their becoming employees), and to such consultants to the Company and its subsidiaries (collectively, &#147;key persons&#148;) as the Committee shall in its discretion select.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>1.4 </font></b><u><b><font size=2>Types of Awards Under the Plan</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>Awards may be made under the Plan in the form of (a) incentive stock options (within the meaning of section 422 of the Code), (b) nonqualified stock options, (c) stock appreciation rights, (d)&nbsp;restricted stock, (e) restricted stock units and (f) other stock-based awards, all as more fully set forth in Article II. The term &#147;award&#148; means any of the foregoing. No incentive stock option may be granted to a person who is not an employee of the Company on the date of grant.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>1.5 </font></b><u><b><font size=2>Shares Available for Awards</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.5.1 The total number of shares of the Common Stock which may be transferred pursuant to awards granted under the Plan shall not exceed 2,500,000. Such shares may be authorized but unissued shares of the Common Stock or authorized and issued shares of the Common Stock held in the Company&#146;s treasury or acquired by the Company for the purposes of the Plan. The Committee may direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares pursuant to the Plan. If, after the effective date of the Plan, any award is forfeited or any award otherwise terminates or is cancelled without the delivery of shares of Stock, then the shares covered by such award or to which such award relates shall again become available for transfer pursuant to awards granted or to be granted under
this Plan. Any shares of Stock delivered by the Company, any shares of Stock with respect to which awards are made by the Company and any shares of Stock with respect to which the Company becomes obligated to make awards, through the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity, shall not be counted against the shares available for awards under this Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.5.2 Upon certain changes in Stock, the number of shares of Stock available for issuance with respect to awards under the Plan, as set forth in Sections 1.5.1 and 1.5.2, shall be adjusted pursuant to Section 3.7.1.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.5.3 Except as provided in this Section 1.5 and in Section 2.3.7, there shall be no limit on the number or the value of the shares of Stock that may be subject to awards to any individual under the Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>1.6 </font></b><u><b><font size=2>Definitions of Certain Terms</font></b></u></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.6.1 The &#147;Fair Market Value&#148; of a share of Stock on any day shall be determined as follows.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.27in;text-align:left;'><font size=2>(a) If the principal market for the Stock (the &#147;Market&#148;) is a national securities exchange or the National Association of Securities Dealers Automated Quotation System (&#147;NASDAQ&#148;) Market, the last sale price or, if no reported sales take place on the applicable date, the average of the high bid and low asked price of Stock as reported for such Market on such date or, if no such quotation is made on such date, on the next preceding day on which there were quotations, provided that such quotations shall have been made within the ten (10) business days preceding the applicable date;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.27in;text-align:left;'><font size=2> (b) If the Market is the Over the Counter Bulletin Board or another market, the average of the high bid and low asked price for Stock on the applicable date, or, if no such quotations shall have been made on such date, on the next preceding day on which there were quotations, provided that such quotations shall have been made within the ten (10) business days preceding the applicable date; or, </font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.27in;text-align:left;'><font size=2> (c) In the event that neither paragraph (a) nor (b) shall apply, the Fair Market Value of a share of Stock on any day shall be determined in good faith by the Committee.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.6.2 The term &#147;incentive stock option&#148; means an option that is intended to qualify for special federal income tax treatment pursuant to sections 421 and 422 of the Code, as now constituted or subsequently amended, or pursuant to a successor provision of the Code, and which is so designated in the applicable Plan Agreement. Any option that is not specifically designated as an incentive stock option shall under no circumstances be considered an incentive stock option. Any option that is not an incentive stock option is referred to herein as a &#147;nonqualified stock option.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.6.3 The term &#147;employment&#148; means, in the case of a grantee of an award under the Plan who is not an employee of the Company, the grantee&#146;s association with the Company or a subsidiary as a director, consultant or otherwise.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.6.4 A grantee shall be deemed to have a &#147;termination of employment&#148; upon ceasing to be employed by the Company and all of its subsidiaries or by a corporation assuming awards in a transaction to which section 424(a) of the Code applies. The Committee may in its discretion determine (a) whether any leave of absence constitutes a termination of employment for purposes of the Plan, (b) the impact, if any, of any such leave of absence on awards theretofore made under the Plan, and (c) when a change in a non-employee&#146;s association with the Company constitutes a termination of employment for purposes of the Plan. The Committee shall have the right to determine whether the termination of a grantee&#146;s employment is a dismissal for cause and the date of termination in such case, which date the Committee may retroactively deem to be the date of the action that is cause for
dismissal. Such determinations of the Committee shall be final, binding and conclusive.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>1.6.5 The term &#147;cause,&#148; when used in connection with termination of a grantee&#146;s employment, shall have the meaning set forth in any then-effective employment agreement between the grantee and the Company or a subsidiary thereof. In the absence, of or in addition to, as the case may be, such an employment agreement provision, &#147;cause&#148; means: (a) conviction of any crime (whether or not involving the Company) constituting a felony in the jurisdiction involved; (b) engaging in any substantiated act involving moral turpitude; (c) engaging in any act which, in each case, subjects, or if generally known would subject, the Company to public ridicule or embarrassment; (d) material violation of the Company&#146;s policies, including, without limitation, those relating to sexual harassment or the disclosure or misuse of confidential information; (e) serious neglect or
misconduct in the performance of the grantee&#146;s duties for the Company or a subsidiary or willful or repeated failure or refusal to perform such duties; in each case as determined by the Committee, which determination shall be final, binding and conclusive.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>ARTICLE II</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>AWARDS UNDER THE PLAN</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.1 </font></b><u><b><font size=2>Agreements Evidencing Awards</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>Each award granted under the Plan shall be evidenced by a written agreement (&#147;Plan Agreement&#148;) which shall contain such provisions as the Committee in its discretion deems necessary or desirable. Such provisions may include, without limitation, a requirement that the grantee become a party to a shareholders&#146; agreement with respect to any shares of Stock acquired pursuant to the award, a requirement that the grantee acknowledge that such shares are acquired for investment purposes only, and a right of first refusal exercisable by the Company in the event that the grantee wishes to transfer any such shares. The Committee may grant awards in tandem with or in substitution for any other award or awards granted under this Plan or any award granted under any other plan of the Company or any subsidiary. Payments or transfers to be made by the Company or any subsidiary upon the
grant, exercise or payment of an award may be made in such form as the Committee shall determine, including cash, shares of Stock, other securities, other awards or other property and may be made in a single payment or transfer, in installments or on a deferred basis, in each case in accordance with rules established by the Committee. By accepting an award pursuant to the Plan, a grantee thereby agrees that the award shall be subject to all of the terms and provisions of the Plan and the applicable Plan Agreement.</font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.2 </font></b><u><b><font size=2>No Rights as a Shareholder</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>No grantee of an option or stock appreciation right (or other person having the right to exercise such award) shall have any of the rights of a shareholder of the Company with respect to shares subject to such award until the issuance of a stock certificate to such person for such shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.3 </font></b><u><b><font size=2>Grant of Stock Options and Stock Appreciation Rights</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.1 The Committee may grant incentive stock options and nonqualified stock options (collectively, &#147;options&#148;) to purchase shares of the Common Stock from the Company, to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall determine in its discretion, subject to the provisions of the Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.2 The Committee may grant stock appreciation rights to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall determine in its discretion, subject to the provisions of the Plan. Stock appreciation rights may be granted in connection with all or any part of, or independently of, any option granted under the Plan. A stock appreciation right granted in connection with a nonqualified stock option may be granted at or after the time of grant of such option. A stock appreciation right granted in connection with an incentive stock option may be granted only at the time of grant of such option.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.3 The grantee of a stock appreciation right shall have the right, subject to the terms of the Plan and the applicable Plan Agreement, to receive from the Company an amount equal to (a) the excess of the Fair Market Value of a share of the Common Stock on the date of exercise of the stock appreciation right over (b) the exercise price of such right as set forth in the Plan Agreement (or over the option exercise price if the stock appreciation right is granted in connection with an option), multiplied by (c) the number of shares with respect to which the stock appreciation right is exercised. Payment upon exercise of a stock appreciation right shall be in cash or in shares of the Common Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or both, all as the Committee shall determine in its discretion. Upon the exercise of a stock
appreciation right granted in connection with an option, the number of shares subject to the option shall be correspondingly reduced by the number of shares with respect to which the stock appreciation right is exercised. Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number of shares subject to the stock appreciation right shall be correspondingly reduced by the number of shares with respect to which the option is exercised.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.4 Each Plan Agreement with respect to an option shall set forth the amount (the &#147;option exercise price&#148;) payable by the grantee to the Company upon exercise of the option evidenced thereby. The option exercise price per share shall be determined by the Committee in its discretion; provided, however, that the option exercise price of an incentive stock option shall be at least 100% of the Fair Market Value of a share of the Common Stock on the date the option is granted, and provided further that in no event shall the option exercise price be less than the par value of a share of the Common Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.5 Each Plan Agreement with respect to an option or stock appreciation right shall set forth the periods during which the award evidenced thereby shall be exercisable, whether in whole or in part. Such periods shall be determined by the Committee in its discretion; provided, however, that no incentive stock option (or a stock appreciation right granted in connection with an incentive stock option) shall be exercisable more than 10 years after the date of grant.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.6 The Committee may in its discretion include in any Plan Agreement with respect to an option (the &#147;original option&#148;) a provision that an additional option (the &#147;additional option&#148;) shall be granted to any grantee who, pursuant to Section 2.4.3(b), delivers shares of the Common Stock in partial or full payment of the exercise price of the original option. The additional option shall be for a number of shares of the Common Stock equal to the number thus delivered, shall have an exercise price equal to the Fair Market Value of a share of the Common Stock on the date of exercise of the original option, and shall have an expiration date no later than the expiration date of the original option. In the event that a Plan Agreement provides for the grant of an additional option, such Agreement shall also provide that the exercise price of the original option be no less
than the Fair Market Value of a share of </font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Stock on its date of grant, and that any shares that are delivered pursuant to Section 2.4.3(b) in payment of such exercise price shall have been held for at least six months.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.7 To the extent that the aggregate Fair Market Value (determined as of the time the option is granted) of the stock with respect to which incentive stock options granted under this Plan and all other plans of the Company and any subsidiary are first exercisable by any employee during any calendar year shall exceed the maximum limit (currently, $100,000), if any, imposed from time to time under section 422 of the Code, such options shall be treated as nonqualified stock options.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.3.8 Notwithstanding the provisions of Sections 2.3.4 and 2.3.5, to the extent required under section 422 of the Code, an incentive stock option may not be granted under the Plan to an individual who, at the time the option is granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of his employer corporation or of its parent or subsidiary corporations (as such ownership may be determined for purposes of section 422(b)(6) of the Code) unless (a) at the time such incentive stock option is granted the option exercise price is at least 110% of the Fair Market Value of the shares subject thereto and (b) the incentive stock option by its terms is not exercisable after the expiration of 5 years from the date it is granted.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.4 </font></b><u><b><font size=2>Exercise of Options and Stock Appreciation Rights</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>Subject to the provisions of this Article II, each option or stock appreciation right granted under the Plan shall be exercisable as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.4.1 Unless the applicable Plan Agreement otherwise provides, an option or stock appreciation right may be exercised from time to time as to all or part of the shares as to which such award is then exercisable (but, in any event, only for whole shares). A stock appreciation right granted in connection with an option may be exercised at any time when, and to the same extent that, the related option may be exercised. An option or stock appreciation right shall be exercised by the filing of a written notice with the Company, on such form and in such manner as the Committee shall prescribe.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.4.2 Any written notice of exercise of an option shall be accompanied by payment for the shares being purchased. Such payment shall be made: (a) by certified or official bank check (or the equivalent thereof acceptable to the Company) for the full option exercise price; or (b) unless the applicable Plan Agreement provides otherwise, by delivery of shares of the Common Stock (which, if acquired pursuant to exercise of a stock option, were acquired at least six months prior to the option exercise date) and having a Fair Market Value (determined as of the exercise date) equal to all or part of the option exercise price and a certified or official bank check (or the equivalent thereof acceptable to the Company) for any remaining portion of the full option exercise price; or (c) at the discretion of the Committee and to the extent permitted by law, by such other provision as the Committee
may from time to time prescribe.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.4.3 Promptly after receiving payment of the full option exercise price, or after receiving notice of the exercise of a stock appreciation right for which payment will be made partly or entirely in shares, the Company shall, subject to the provisions of Section 3.3 (relating to certain restrictions), deliver to the grantee or to such other person as may then have the right to exercise the award, a certificate or certificates for the shares of the Common Stock for which the award has been exercised. If the method of payment employed upon option exercise so requires, and if applicable law permits, an optionee may direct the Company to deliver the certificate(s) to the optionee&#146;s stockbroker.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.5 </font></b><u><b><font size=2>Termination of Employment; Death</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.5.1 Except to the extent otherwise provided in Section 2.5.2 or 2.5.3 or in the applicable Plan Agreement, all options and stock appreciation rights not theretofore exercised shall terminate upon termination of the grantee&#146;s employment for any reason (including death). </font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.5.2 If a grantee&#146;s employment terminates for any reason other than death or dismissal for cause, the grantee may exercise any outstanding option or stock appreciation right on the following terms and conditions: (a) exercise may be made only to the extent that the grantee was entitled to exercise the award on the date of employment termination; and (b) exercise must occur within 90 days after employment terminates, except that this 90 day period shall be increased to one year if the termination is by reason of disability, but in no event after the expiration date of the award as set forth in the Plan Agreement. In the case of an incentive stock option, the term &#147;disability&#148; for purposes of the preceding sentence shall have the meaning given to it by section 422(c)(6) of the Code.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.5.3 If a grantee dies while employed by the Company or any subsidiary, or after employment termination but during the period in which the grantee&#146;s awards are exercisable pursuant to Section 2.5.2, any outstanding option or stock appreciation right shall be exercisable on the following terms and conditions: (a) exercise may be made only to the extent that the grantee was entitled to exercise the award on the date of death; and (b) exercise must occur by the earlier of the first anniversary of the grantee&#146;s death or the expiration date of the award. Any such exercise of an award following a grantee&#146;s death shall be made only by the grantee&#146;s executor or administrator, unless the grantee&#146;s will specifically disposes of such award, in which case such exercise shall be made only by the recipient of such specific disposition. If a grantee&#146;s personal
representative or the recipient of a specific disposition under the grantee&#146;s will shall be entitled to exercise any award pursuant to the preceding sentence, such representative or recipient shall be bound by all the terms and conditions of the Plan and the applicable Plan Agreement which would have applied to the grantee including, without limitation, the provisions of Sections 3.3 and 3.7 hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.6 </font></b><u><b><font size=2>Grant of Restricted Stock</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.6.1 The Committee may grant restricted shares of Stock to such key persons, in such amounts, and subject to such terms and conditions as the Committee shall determine in its discretion, subject to the provisions of the Plan. Restricted stock awards may be made independently of or in connection with any other award under the Plan. A grantee of a restricted stock award shall have no rights with respect to such award unless such grantee accepts the award within such period as the Committee shall specify by executing a Plan Agreement in such form as the Committee shall determine and, if the Committee shall so require, makes payment to the Company by certified or official bank check (or the equivalent thereof acceptable to the Company) in such amount as the Committee may determine.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.6.2 Promptly after a grantee accepts a restricted stock award, the Company shall issue in the grantee&#146;s name a certificate or certificates for the shares of the Common Stock covered by the award. Upon the issuance of such certificate(s), the grantee shall have the rights of a shareholder with respect to the restricted stock, subject to the nontransferability restrictions and Company repurchase rights described in Sections 2.6.4 and 2.6.5 and to such other restrictions and conditions as the Committee in its discretion may include in the applicable Plan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.6.3 Unless the Committee shall otherwise determine, any certificate issued evidencing shares of restricted stock shall remain in the possession of the Company until such shares are free of any restrictions specified in the applicable Plan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.6.4 Shares of restricted stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided in this Plan or the applicable Plan Agreement. The Committee at the time of grant shall specify the date or dates (which may depend upon or be related to the attainment of performance goals and other conditions) on which the nontransferability of the restricted stock shall lapse. Unless the applicable Plan Agreement provides otherwise, additional shares of Stock or other property distributed to the grantee in respect of shares of restricted stock, as dividends or otherwise, shall be subject to the same restrictions applicable to such restricted stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.6.5 During the 120 days following termination of the grantee&#146;s employment for any reason, the Company shall have the right to require the return of any shares to which restrictions on transferability apply, in exchange for which the Company shall repay to the grantee (or the grantee&#146;s estate) any amount paid by the grantee for such shares.</font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.7 </font></b><u><b><font size=2>Grant of Restricted Stock Units</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.7.1 The Committee may grant awards of restricted stock units to such key persons, in such amounts, and subject to such terms and conditions as the Committee shall determine in its discretion, subject to the provisions of the Plan. Restricted stock units may be awarded independently of or in connection with any other award under the Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.7.2 At the time of grant, the Committee shall specify the date or dates on which the restricted stock units shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate. In the event of the termination of the grantee&#146;s employment by the Company and its subsidiaries for any reason, restricted stock units that have not become nonforfeitable shall be forfeited and cancelled. The Committee at any time may accelerate vesting dates and otherwise waive or amend any conditions of an award of restricted stock units.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>2.7.3 At the time of grant, the Committee shall specify the maturity date applicable to each grant of restricted stock units, which may be determined at the election of the grantee. Such date may be later than the vesting date or dates of the award. On the maturity date, the Company shall transfer to the grantee one unrestricted, fully transferable share of the Common Stock for each restricted stock unit scheduled to be paid out on such date and not previously forfeited. The Committee shall specify the purchase price, if any, to be paid by the grantee to the Company for such shares of the Common Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>2.8 </font></b><u><b><font size=2>Other Stock-Based Awards</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>The Committee may grant other types of stock-based awards (including the grant of unrestricted shares) to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall in its discretion determine, subject to the provisions of the Plan. Such awards may entail the transfer of actual shares of the Common Stock to Plan participants, or payment in cash or otherwise of amounts based on the value of shares of the Common Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>ARTICLE III</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>MISCELLANEOUS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.1 </font></b><u><b><font size=2>Amendment of the Plan; Modification of Awards</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.1.1 The Board may from time to time suspend, discontinue, revise or amend the Plan in any respect whatsoever, except that no such amendment shall materially impair any rights or materially increase any obligations under any award theretofore made under the Plan without the consent of the grantee (or, after the grantee&#146;s death, the person having the right to exercise the award). For purposes of this Section 3.1, any action of the Board or the Committee that alters or affects the tax treatment of any award shall not be considered to materially impair any rights of any grantee.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.1.2 Stockholder approval of any amendment shall be obtained to the extent necessary to comply with section 422 of the Code (relating to incentive stock options) or other applicable law or regulation.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.1.3 The Committee may amend any outstanding Plan Agreement, including, without limitation, by amendment which would accelerate the time or times at which the award becomes unrestricted or may be exercised, or waive or amend any goals, restrictions or conditions set forth in the Agreement. However, any such amendment (other than an amendment pursuant to Section 3.7.2, relating to change in control) that materially impairs the rights or materially increases the obligations of a grantee under an outstanding award shall be made only with the consent of the grantee (or, upon the grantee&#146;s death, the person having the right to exercise the award). </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.2 </font></b><u><b><font size=2>Tax Withholding</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.2.1 As a condition to the receipt of any shares of the Common Stock pursuant to any award or the lifting of restrictions on any award, or in connection with any other event that gives rise to a federal or other governmental tax </font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>withholding obligation on the part of the Company relating to an award (including, without limitation, FICA tax), the Company shall be entitled to require that the grantee remit to the Company an amount sufficient in the opinion of the Company to satisfy such withholding obligation.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.2.2 If the event giving rise to the withholding obligation is a transfer of shares of the Common Stock, then, unless otherwise specified in the applicable Plan Agreement, the grantee may satisfy the withholding obligation imposed under Section 3.2.1 by electing to have the Company withhold shares of the Common Stock having a Fair Market Value equal to the amount of tax to be withheld. For this purpose, Fair Market Value shall be determined as of the date on which the amount of tax to be withheld is determined (and any fractional share amount shall be settled in cash).</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.3 </font></b><u><b><font size=2>Restrictions</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.3.1 If the Committee shall at any time determine that any consent (as hereinafter defined) is necessary or desirable as a condition of, or in connection with, the granting of any award under the Plan, the issuance or purchase of shares or other rights thereunder, or the taking of any other action thereunder (each such action being hereinafter referred to as a &#147;plan action&#148;), then such plan action shall not be taken, in whole or in part, unless and until such consent shall have been effected or obtained to the full satisfaction of the Committee.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.3.2 The term &#147;consent&#148; as used herein with respect to any plan action means (a) any and all listings, registrations or qualifications in respect thereof upon any securities exchange or under any federal, state or local law, rule or regulation, (b) any and all written agreements and representations by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Committee shall deem necessary or desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made and (c) any and all consents, clearances and approvals in respect of a plan action by any governmental or other regulatory bodies.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.4 </font></b><u><b><font size=2>Nonassignability</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>Except to the extent otherwise provided in the applicable Plan Agreement, no award or right granted to any person under the Plan shall be assignable or transferable other than by will or by the laws of descent and distribution, and all such awards and rights shall be exercisable during the life of the grantee only by the grantee or the grantee&#146;s legal representative.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.5 </font></b><u><b><font size=2>Notification of Election Under Code Section 83(b)</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>If any grantee shall, in connection with the acquisition of shares of the Common Stock under the Plan, make the election permitted under section 83(b) of the Code (that is, an election to include in gross income in the year of transfer the amounts specified in section 83(b)), such grantee shall notify the Company of such election within 10 days of filing notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under the authority of Code section 83(b).</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.6 </font></b><u><b><font size=2>Notification Upon Disqualifying Disposition</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>If any grantee shall make any disposition of shares of the Common Stock issued pursuant to the exercise of an incentive stock option under the circumstances described in section 421(b) of the Code (relating to certain disqualifying dispositions), such grantee shall notify the Company of such disposition within 10 days thereof. </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.7 </font></b><u><b><font size=2>Adjustment Upon Changes in Stock</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.7.1 </font><u><font size=2>Shares Available for Grants</font></u><font size=2> . In the event of any change in the number of shares of Stock outstanding by reason of any stock dividend or split, reverse stock split, recapitalization, merger, consolidation, combination or exchange of shares or similar corporate change, the maximum number of shares of the Common Stock with respect to which the Committee may grant awards under Article II hereof, as described in Section 1.5.1, and the individual </font></p>

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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>annual limit described in Section 1.5.2, shall be appropriately adjusted by the Committee. In the event of any change in the number of shares of the Common Stock outstanding by reason of any other event or transaction, the Committee may, but need not, make such adjustments in the number and class of shares of the Common Stock with respect to which awards: (i) may be granted under Article II hereof and (ii) granted to any one employee of the Company or a subsidiary during any one calendar year, in each case as the Committee may deem appropriate, unless such adjustment would cause any award that would otherwise qualify as performance based compensation with respect to a &#147;162(m) covered employee&#148; (as defined in Section 162 of the Code), to cease to so qualify.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.7.2 </font><u><font size=2>Outstanding Restricted Stock and Restricted Stock Units</font></u><font size=2> . Unless the Committee in its absolute discretion otherwise determines, any securities or other property (including dividends paid in cash) received by a grantee with respect to a share of restricted stock, the issue date with respect to which occurs prior to such event, but which has not vested as of the date of such event, as a result of any dividend, stock split, reverse stock split, recapitalization, merger, consolidation, combination, exchange of shares or otherwise will not vest until such share of restricted stock vests, and shall be promptly deposited with the Company or otherwise treated as was the certificate for the underlying share of restricted stock, pursuant to Section 2.6.3 hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>The Committee may, in its absolute discretion, adjust any grant of shares of restricted stock, the issue date with respect to which has not occurred as of the date of the occurrence of any of the following events, or any grant of restricted stock units, to reflect any dividend, stock split, reverse stock split, recapitalization, merger, consolidation, combination, exchange of shares or similar corporate change as the Committee may deem appropriate to prevent the enlargement or dilution of rights of grantees.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.7.3 </font><u><font size=2>Outstanding Options and Stock Appreciation Rights &#151; Increase or Decrease in Issued Shares Without Consideration</font></u><font size=2> . Subject to any required action by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Stock resulting from a subdivision or consolidation of shares of Stock or the payment of a stock dividend (but only on the shares of Stock), or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company, the Committee shall proportionally adjust the number of shares of the Common Stock subject to each outstanding option and stock appreciation right, and the exercise price-per-share of the Common Stock of each such option and stock appreciation right.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.7.4 </font><u><font size=2>Outstanding Options and Stock Appreciation Rights &#151; Certain Mergers</font></u><font size=2> . Subject to any required action by the stockholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders of shares of Stock receive securities of another corporation), each option and stock appreciation right outstanding on the date of such merger or consolidation shall pertain to and apply to the securities which a holder of the number of shares of the Common Stock subject to such option or stock appreciation right would have received in such merger or consolidation.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.7.5 </font><u><font size=2>Outstanding Options and Stock Appreciation Rights &#151; Certain Other Transactions</font></u><font size=2> . In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all or substantially all of the Company&#146;s assets, (iii) a merger or consolidation involving the Company in which the Company is not the surviving corporation or (iv) a merger or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of the Common Stock receive securities of another corporation and/or other property, including cash, the Committee shall, in its absolute discretion, have the power to: </font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>cancel, effective immediately prior to the occurrence of such event, each option and stock appreciation right outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted an amount in cash, for each share of the Common Stock subject to such option or stock appreciation right, respectively, equal to the excess of (x) the value, as determined by the Committee in its absolute discretion, of the property (including cash) received by the holder of a share of the Common Stock as a result of such event over (y) the exercise price of such option or stock appreciation right;</font></p>
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        <td width="5%" valign=top style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td width="2%" valign=top style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;</font></p> </td>
        <td width="74%" valign=top style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>cancel, effective immediately prior to the occurrence of such event, each option and stock appreciation right outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted, for each share of the Common Stock subject to such option or stock appreciation right, respectively, the property (including cash) received by the holder of a share of the Common Stock as a result of such event; or</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>
        <td width="5%" valign=top style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td width="2%" valign=top style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>provide for the exchange of each option and stock appreciation right outstanding immediately prior to such event (whether or not then exercisable) for an option on or stock appreciation right with respect to, as appropriate, some or all of the property which a holder of the number of shares of the Common Stock subject to such option or stock appreciation right would have received and, incident thereto, make an equitable adjustment as determined by the Committee in its absolute discretion in the exercise price of the option or stock appreciation right, or the number of shares or amount of property subject to the option or stock appreciation right or, if appropriate, provide for a cash payment to the grantee to whom such option or stock appreciation right was granted in partial consideration for the exchange of the option or stock
appreciation right.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.7.6 </font><u><font size=2>Outstanding Options and Stock Appreciation Rights &#151; Other Changes</font></u><font size=2> . In the event of any change in the capitalization of the Company or a corporate change other than those specifically referred to in Sections 3.7.3, 3.7.4 or 3.7.5 hereof, the Committee may, in its absolute discretion, make such adjustments in the number and class of shares subject to options and stock appreciation rights outstanding on the date on which such change occurs and in the per-share exercise price of each such option and stock appreciation right as the Committee may consider appropriate to prevent dilution or enlargement of rights. In addition, if and to the extent the Committee determines it is appropriate, the Committee may elect to cancel each option and stock appreciation right outstanding immediately prior to such event (whether or
not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted an amount in cash, for each share of the Common Stock subject to such option or stock appreciation right, respectively, equal to the excess of (i) the Fair Market Value of the Common Stock on the date of such cancellation over (ii) the exercise price of such option or stock appreciation right.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.7.7 </font><u><font size=2>No Other Rights</font></u><font size=2> . Except as expressly provided in the Plan, no grantee shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation. Except as expressly provided in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of the Common Stock subject to an award or the exercise price of any option or stock appreciation right. Except as otherwise provided in Section 3.7, no adjustment shall be made for dividends, distributions or
other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate is issued. </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.8 </font></b><u><b><font size=2>Right of Discharge Reserved</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>Nothing in the Plan or in any Plan Agreement shall confer upon any grantee the right to continue in the employ of the Company or affect any right which the Company may have to terminate such employment.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.9 </font></b><u><b><font size=2>Nature of Payments</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.9.1 Any and all grants of awards and issuances of shares of the Common Stock under the Plan shall be in consideration of services performed for the Company by the grantee.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.9.2 All such grants and issuances shall constitute a special incentive payment to the grantee and shall not be taken into account in computing the amount of salary or compensation of the grantee for the purpose of determining any benefits under any pension, retirement, profit-sharing, bonus, life insurance or other benefit plan of the Company or under any agreement between the Company and the grantee, unless such plan or agreement specifically provides otherwise.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.10 </font></b><u><b><font size=2>Non-Uniform Determinations</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>The Committee&#146;s determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, awards under the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Plan agreements, as to (a) the persons to receive awards under the Plan, (b) the terms and provisions of awards under the Plan, and (c) the treatment of leaves of absence pursuant to Section 1.6.4.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.11 </font></b><u><b><font size=2>Other Payments or Awards</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company from making any award or payment to any person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.12 </font></b><u><b><font size=2>Section Headings</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>The section headings contained herein are for the purpose of convenience only and are not intended to define or limit the contents of the sections.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.13 </font></b><u><b><font size=2>Effective Date and Term of Plan</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.13.1 The Plan was adopted by the Board on March 20, 2007, subject to approval by the Company&#146;s stockholders. All awards under the Plan prior to such stockholder approval are subject in their entirety to such approval. If such approval is not obtained prior to the first anniversary of the date of adoption of the Plan, the Plan and all awards thereunder shall terminate on that date.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.24in;text-align:left;'><font size=2>3.13.2 Unless sooner terminated by the Board, the Plan will terminate on the close of business on March 19, 2017, ten years from the original effective date. All awards made under the Plan prior to its termination shall remain in effect until such awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable Plan Agreements.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><b><font size=2>3.14 </font></b><u><b><font size=2>Governing Law</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.23in;text-align:left;'><font size=2>All rights and obligations under the Plan shall be construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflict of laws.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<DESCRIPTION>EXHIBIT 5.1
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; text-indent:0.5in;text-align:right;'><b><font SIZE=2>EXHIBIT 5.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>Lehman &amp; Eilen LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20283 State Road 7, Suite 300</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Boca Raton, FL 33498</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Telephone (561) 237-0804</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Facsimile (561) 237-0803</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>January 18, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>The Board of Directors</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Pipex Pharmaceuticals, Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>3985 Research Park Drive</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Ann Arbor, MI 48108</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="260" style='margin-left:.5in;border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Re:</font></p> </td>
        <td width="81%" valign=top style='padding:11.25pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Registration Statement on Form S-8</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Gentlemen:</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>At your request, we have examined the Registration Statement on Form S-8 (the &#147;Registration Statement&#148;) to which this letter is attached as Exhibit 5.1 filed by Pipex Pharmaceuticals, Inc., a Delaware corporation (the &#147;Company&#148;), that is intended to register under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), 4,000,000 shares which are issuable pursuant to (i) the Company&#146;s 2001 Stock Incentive Plan and (ii) the Company&#146;s 2007 Stock Incentive Plan (hereinafter referred to as the &#147;Plans&#148;). </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>We have examined originals or certified copies of such corporate records of the Company and other certificates and documents of officials of the Company, public officials and others as we have deemed appropriate for purposes of this letter. We have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to authentic original documents of all copies submitted to us as conformed and certified or reproduced copies.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Based on the foregoing, we are of the opinion that 4,000,000 shares of the Company&#146;s common stock which may be issued under the Plans are duly authorized shares of the Company&#146;s common stock, and when issued against receipt of the consideration therefore in accordance with the provisions of the Plans, will be validly issued, fully paid and non-assessable. </font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>We consent to the use of this opinion as an Exhibit to the Registration Statement.</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; margin-left:4in;text-align:left;'><font size=2>Very truly yours,</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; margin-left:4in;text-align:left;'><font size=2>/s/ Lehman &amp; Eilen LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; margin-left:4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt; margin-left:4in;text-align:left;'><font size=2>Lehman &amp; Eilen LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<FILENAME>s11-8078_ex231.htm
<DESCRIPTION>EXHIBIT 23.1
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:right;'><b><font SIZE=2>EXHIBIT 23.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></p>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 of Pipex Pharmaceuticals, Inc. and Subsidiaries  of our report dated February 23, 2007 on the consolidated financial statements of Pipex Pharmaceuticals, Inc. and Subsidiaries for the years ended December 31, 2006 and 2005 and for the period from January 8, 2001 (inception) to December 31, 2006, included in Form 10-KSB filed on April 2 , 2007. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Berman &amp; Company, P.A.<BR>BERMAN &amp; COMPANY, P.A.<BR>Certified Public Accountants<BR>Boca Raton, Florida<BR><BR></font></u><BR></td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><BR><BR></font></p> </td> </tr>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 16, 2008</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr> </TABLE>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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