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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>As
      filed with the Securities and Exchange Commission on July 12,
      2007</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Registration
      No.&#160;333-<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="left" noshade size="3" width="100%">
      </div><strong>UNITED STATES</strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font>
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="15%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>FORM
      S-8</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>REGISTRATION
      STATEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><em>UNDER</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><em>THE
      SECURITIES ACT OF 1933</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <hr style="COLOR: black" align="center" noshade size="1" width="15%">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>POSITRON
      CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(Exact
      Name of Registrant as Specified in Its Charter)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <hr style="COLOR: black" align="center" noshade size="1" width="15%"><font size="3">&#160;</font></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="middle" width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Texas</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>76-0083622</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>(State
                or Other Jurisdiction of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Incorporation
                or Organization)</strong></font></div>
              <div>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>(I.R.S.
                Employer</strong></font></div>
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                No.)</strong></font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>1304
      Langham Creek Drive, Suite 300</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Houston,
      Texas 77084</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(Address
      of Principal Executive Offices, including Zip Code)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <hr style="COLOR: black" align="center" noshade size="1" width="15%">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>2007
      Stock Option Plan</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(Full
      Title of the Plan)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div>
      <hr style="COLOR: black" align="center" noshade size="1" width="15%">&#160;<br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Patrick
      Rooney</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Chairman</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>1304
      Langham Creek Drive, Suite 300</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Houston,
      Texas&#160;&#160;77084</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>&#160;(Name,
      Address and Telephone Number of Agent For Service)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <hr style="COLOR: black" align="center" noshade size="1" width="15%">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><em>Copies
      of all communications to:</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Peter
      Campitiello, Esq.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Levy
      &amp; Boonshoft, P.C.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>477
      Madison Avenue</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>New
      York, NY 10022</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>212
      751-1414</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div><br></div>
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        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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      <div id="HDR">
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>CALCULATION
      OF REGISTRATION FEE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font>
      <div>
        <hr style="COLOR: black" align="left" noshade size="3" width="100%">
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="middle" width="24%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="7%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="10%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="10%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="7%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="bottom" width="24%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Title
                Of Each Class Of Securities to be Registered</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td valign="bottom" width="7%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Amount</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>to
                be</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Registered(1)</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Proposed&#160;Maximum</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Offering
                Price</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Per
                Share</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Proposed&#160;Maximum</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Aggregate</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Offering
                Price</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td colspan="2" valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Amount&#160;Of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Registration&#160;Fee</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="24%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="7%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="7%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="24%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Common
                Stock, $0,01 par value per share</font></div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">5,000,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(2)</font></div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">$</font></div>
            </td>
            <td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">0.09(3)</font></div>
            </td>
            <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">$</font></div>
            </td>
            <td align="right" valign="bottom" width="10%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">450,000</font></div>
            </td>
            <td align="left" valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">$</font></div>
            </td>
            <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">48.15</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <hr style="COLOR: black" align="left" noshade size="3" width="100%">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(1)</font></div>
            </td>
            <td align="justify" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">This
                Registration Statement shall also cover any additional shares of
                Common
                Stock which become issuable under the 2007 Stock Option Plan by reason
                of
                any stock dividend, stock split, recapitalization or other similar
                transaction effected without the Registrant&#8217;s receipt of consideration
                which results in an increase in the number of the outstanding shares
                of
                Registrant&#8217;s Common Stock.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(2)</font></div>
            </td>
            <td align="justify" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Represents
                shares automatically reserved for issuance under the 2007 Omnibus
                Securities and Incentive Plan.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(3)</font></div>
            </td>
            <td align="justify" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Estimated
                solely for the purpose of calculating the registration fee in accordance
                with Rules 457(c) and (h)&#160;promulgated under the Securities Act of
                1933 and based upon the average of the high and low sales prices
                of
                Positron Corporation Common Stock reported on the Over the Counter
                Bulletin Board on July 10, 2007.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <hr style="COLOR: black" align="left" noshade size="3" width="100%">
      <div>
        <hr style="COLOR: gray" align="left" noshade size="3" width="100%">
      </div><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Table
      of Contents</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>TABLE
      OF CONTENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="66%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#part1">PART
                I:
                INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
                </a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item&#160;1.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item1">Plan
                Information</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;4</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                2.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item2">Registrant
                Information and Employee Plan Annual
                Information</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;4</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td colspan="5" valign="middle" width="76%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#part2">PART
                II:
                INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
                </a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;4</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                3.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item3">Incorporation
                of
                Documents by Reference</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;4</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                4.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item4">Description
                of
                Securities</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;4</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                5.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item5">Interests
                of
                Named Experts and Counsel</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;4</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                6.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item6">Indemnification
                of Directors and Officers</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;5</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                7.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item7">Exemption
                from
                Registration Claimed</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;5</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                8.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item8">Exhibits</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;5</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="68%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="right" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Item
                9.</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#item9">Undertakings</a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;5</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td colspan="5" valign="middle" width="76%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><a href="#signature">SIGNATURES
                </a></font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;5</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td colspan="5" valign="middle" width="76%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;">EXHIBIT
                INDEX
                </font></font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td colspan="5" valign="middle" width="76%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">EXHIBIT&#160;5.1</font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td colspan="5" valign="middle" width="76%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">EXHIBIT&#160;23.1</font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td colspan="5" valign="middle" width="76%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">EXHIBIT
                23.2</font></div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: gray" align="left" noshade size="3" width="100%">&#160;<br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="part1">PART</a>
      I</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>INFORMATION
      REQUIRED IN THE PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item1">Item</a>&#160;1.
      Plan Information.</strong>*</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;&#160;&#160;
</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item2">Item&#160;</a>2.
      Registrant Information and Employee Program Annual
      Information.*</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font>
      <div>
        <hr style="COLOR: black" align="left" noshade size="1" width="7%">
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">*</font></div>
            </td>
            <td align="left" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Information
                required by Part I to be contained in each Section&#160;10(a) prospectus
                is omitted from this Registration Statement in accordance with Rule
                428
                under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;) and
                the Note to Part I of Form S-8.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="part2">PART</a>
      II</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item3">Item&#160;</a>3.
      Incorporation of Documents by
      Reference.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      following documents previously filed by Positron Corporation (the &#8220;Registrant&#8221;)
      with the Securities and Exchange Commission (the &#8220;Commission&#8221;) are hereby
      incorporated by reference in this Registration Statement:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(a)
      Registrant&#8217;s Annual Report on Form 10-KSB for the fiscal year ended
      December&#160;31, 2006, filed with the Commission on April 13, 2007 pursuant to
      Section&#160;13(a) of the Securities Exchange Act of 1934, as amended (the
&#8220;Exchange Act&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(b)
      All
      other reports filed pursuant to Section&#160;13(a) or 15(d) of the Exchange Act
      since the end of the latest fiscal year covered by the document referred to
      in
      (a)&#160;above, including Registrant&#8217;s Quarterly Reports on Form 10-QSB for the
      quarterly periods ended March 31, 2007, September 30, 2006 and June 30, 2006,
      filed with the Commission on May 15, 2007,&#160;November 14, 2006 and August 21,
      2006, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(c)
      The
      description of Registrant&#8217;s Common Stock contained in Registrant&#8217;s Registration
      Statement on Form SB-2, filed with the Commission on September 20, 2006 (File
      No. 333-137464) pursuant to Rule 14(c) of the Exchange Act, including any
      amendments or reports filed for the purpose of updating such
      description.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">In
      addition, all documents subsequently filed by Registrant pursuant to Sections
      13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a
      post-effective amendment which indicates that all securities offered have been
      sold or which deregisters all securities then remaining unsold, shall be deemed
      to be incorporated by reference in this registration statement and to be a
      part
      hereof from the date of filing of such documents. Unless expressly incorporated
      into this Registration Statement, a report furnished on Form 8-K prior or
      subsequent to the date hereof shall not be incorporated by reference into this
      Registration Statement. Any statement contained in a document incorporated
      or
      deemed to be incorporated by reference herein shall be deemed to be modified
      or
      superseded for purposes of this Registration Statement to the extent that a
      statement contained in any subsequently filed document which also is deemed
      to
      be incorporated by reference herein modifies or supersedes such
      statement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item4">Item</a>&#160;4.
      Description of Securities.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item5">Item</a>&#160;5.
      Interests of Named Experts and
      Counsel.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Not
      applicable.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item6">Item&#160;</a>6.
      Indemnification of Directors and
      Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Pursuant
      to the Texas Business
      Corporation Act (the "BCA"), Positron's Articles of Incorporation exclude
      personal liability on the part of its directors to the Company for monetary
      damages based upon any violation of their fiduciary duties as directors,
      provided the director acted in good faith, reasonably believed the conduct
      was
      in the best interests of the corporation and had no reason to believe the
      conduct was unlawful. Positron's Articles of Incorporation and its By-laws
      require indemnification of directors and officers of the registrant to the
      fullest extent permitted by the BCA for claims against them in their official
      capacities, including stockholders' derivative actions.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Insofar
      as indemnification for
      liabilities arising under the Securities Act may be permitted to directors,
      officers and controlling persons of the Company pursuant to the foregoing
      provisions, or otherwise, we have 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.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item7">Item</a>&#160;7.
      Exemption from Registration
      Claimed.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item8">Item</a>&#160;8.
      Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;4</font></td>
            <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">*&#160;</font></td>
            <td align="left" valign="bottom" width="72%">
              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">2007
                Omnibus&#160;Securities and Incentive Plan&#160;</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="5%">
              <div>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">5</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">*&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Opinion
                of Levy &amp; Boonshoft, P.C.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="73%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="right" valign="top" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">23.1</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Consent
                of Independent Registered Public Accounting Firm</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="73%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="right" valign="top" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">23.2</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">*&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Consent
                of Levy &amp; Boonshoft, P.C. (included in Exhibit 5)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="73%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="right" valign="top" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">24.1</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Powers
                of Attorney (included on the signature page included in this registration
                statement)</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="72%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="right" valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;*</font></td>
            <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="72%">
              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Filed
                herewith.&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="item9">Item</a>&#160;9.
      Undertakings.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(a)
      The
      undersigned Registrant hereby undertakes:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(1)
      To
      file, during any period in which offers or sales are being made, a
      post-effective amendment to this Registration Statement:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(i)
      to
      include any prospectus required by Section&#160;10(a)(3) of the Securities
      Act;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(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
      hereof) which, individually or in the aggregate, represent a fundamental change
      in the information set forth in this Registration Statement. Notwithstanding
      the
      foregoing, any increase or decrease in volume of securities offered (if the
      total dollar value of securities offered would not exceed that which was
      registered) and any deviation from the low or high end of the estimated maximum
      offering range may be reflected in the form of prospectus filed with the
      Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
      and price represent no more than a 20% change in the maximum aggregate offering
      price set forth in the &#8220;Calculation of Registration Fee&#8221; table in the effective
      Registration Statement; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(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 this 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&#160;13 or
      Section&#160;15(d) of the Exchange Act that are incorporated by reference in
      this Registration Statement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(2)
      That,
      for the purpose of determining any liability under the Securities Act, 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></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(3)
      To
      remove from registration by means of a post-effective amendment any of the
      securities being registered which remain unsold at the termination of the
      offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(b)
      The
      undersigned Registrant hereby undertakes that, for purposes of determining
      any
      liability under the Securities Act, each filing of the Registrant&#8217;s annual
      report pursuant to Section&#160;13(a) or Section&#160;15(d) of the Exchange Act
      (and, where applicable, each filing of an employee benefit plan&#8217;s annual report
      pursuant to Section15(d) of the Exchange Act) that is incorporated by reference
      into this 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></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(c)
      Insofar as indemnification for liabilities arising under the Securities Act
      may
      be permitted to directors, officers and controlling persons of the Registrant
      pursuant to the foregoing provisions, or otherwise, the Registrant has been
      advised that in the opinion of the Securities and Exchange Commission 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 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></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="signature">SIGNATURES</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;">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 the City of Houston, State
      of&#160;Texas on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt;">July 12,
      2007</font><font style="DISPLAY: inline; FONT-SIZE: 10pt;">.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="middle" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td colspan="2" valign="middle" width="35%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>POSITRON
                CORPORATION</strong></font></div>
            </td>
            <td width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="30%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="50%">
            </td>
            <td align="left" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">By:</font></div>
              </div>
            </td>
            <td valign="top" width="30%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">/s/
                  Patrick Rooney</font></div>
              </div>
            </td>
            <td width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Patrick
                Rooney</font></div>
            </td>
            <td width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Chairman
                of the Board</font></div>
            </td>
            <td width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>POSITRON
        CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>2007
        OMNIBUS SECURITIES AND INCENTIVE PLAN</strong></font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        I</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">PURPOSE</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
        purpose of this Positron
        Corporation 2007 Omnibus Securities and Incentive Plan (the &#8220;Plan&#8221;) is to
        benefit the stockholders of Positron Corporation, a Texas corporation (the
        &#8220;Company&#8221;), by assisting the Company to attract, retain and provide incentives
        to key management employees and nonemployee directors of, and non-employee
        consultants to, the Company and its Affiliates, and to align the interests
        of
        such employees, nonemployee directors and nonemployee consultants with those
        of
        the Company&#8217;s stockholders. Accordingly, the Plan provides for the granting of
        Incentive Stock Options, Non-Qualified Stock Options, Performance Share Awards,
        Restricted Stock Awards, Unrestricted Stock Awards or any combination of
        the
        foregoing, as may be best suited to the circumstances of the particular
        Employee, Director or Consultant as provided herein.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        II</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">DEFINITIONS</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
        following definitions shall be
        applicable throughout the Plan unless the context otherwise
        requires:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Affiliate&#8221;
</em>shall
        mean any
        person or entity which, at the time of reference, directly, or indirectly
        through one or more intermediaries, controls, is controlled by, or is under
        common control with, the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Award&#8221;
</em>shall
        mean,
        individually or collectively, any Distribution Equivalent Right, Option,
        Performance Share Award, Performance Unit Award, Restricted Stock Award,
        Stock
        Appreciation Right or Unrestricted Stock Award.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Award
        Agreement&#8221;</em> shall mean a
        written agreement between the Company and the Holder with respect to an Award,
        each of which shall constitute a part of the Plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Board&#8221;</em>
        shall mean the Board
        of Directors of the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Cause&#8221;
</em>shall
        mean (i)&#160;if
        the Holder is a party to an employment or similar agreement with the Company
        or
        an Affiliate which agreement defines &#8220;Cause&#8221; (or a similar term) therein,
&#8220;Cause&#8221; shall have the same meaning as provided for in such agreement, or
        (ii)&#160;for a Holder who is not a party to such an agreement, &#8220;Cause&#8221; shall
        mean termination by the Company or an Affiliate of the employment (or
        other</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">service
        relationship) of the Holder by reason of the Holder&#8217;s (A)&#160;intentional
        failure to perform reasonably assigned duties, (B)&#160;dishonesty or willful
        misconduct in the performance of the Holder&#8217;s duties, (C)&#160;involvement in a
        transaction which is materially adverse to the Company or an Affiliate,
        (D)&#160;breach of fiduciary duty involving personal profit, (E) willful
        violation of any law, rule, regulation or court order (other than misdemeanor
        traffic violations and misdemeanors not involving misuse or misappropriation
        of
        money or property), (F) commission of an act of fraud or intentional
        misappropriation or conversion of any asset or opportunity of the Company
        or an
        Affiliate, or (G)&#160;material breach of any provision of the Plan or the
        Holder&#8217;s Award Agreement or any other written agreement between the Holder and
        the Company or an Affiliate, in each case as determined in good faith by
        the
        Board, the determination of which shall be final, conclusive and binding
        on all
        parties.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Code&#8221;
</em>shall
        mean the Internal
        Revenue Code of 1986, as amended. Reference in the Plan to any section of
        the
        Code shall be deemed to include any amendments or successor provisions to
        any
        section and any regulation under such section.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#160;&#8220;Common
        Stock&#8221;</em> shall
        mean the common stock, par value $0.01 per share, of the Company.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Company&#8221;
</em>shall
        mean Positron
        Corporation, a Texas corporation, and any successor thereto.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Consultant&#8221;
</em>shall
        mean any
        non-Employee (individual or entity) advisor to the Company or an Affiliate
        who
        or which has contracted directly with the Company or an Affiliate to render
        bona
        fide consulting or advisory services thereto.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Director&#8221;</em>
        shall mean a member
        of the Board or a member of the board of directors of an Affiliate, in either
        case, who is not an Employee.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Effective
        Date&#8221;</em> shall mean
        July&#160;1, 2007.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Employee&#8221;
</em>shall
        mean any
        employee, including officers, of the Company or an Affiliate.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Exchange
        Act&#8221;</em> shall mean the
        Securities Exchange Act of 1934, as amended.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Fair
        Market Value&#8221;</em> shall
        mean, as determined consistent with the applicable requirements of
        Sections&#160;409A and 422 of the Code, as of any specified date, the closing
        sales price of the Common Stock for such date (or, in the event that the
        Common
        Stock is not traded on such date, on the immediately preceding trading date)
        on
        the Nasdaq Stock Market or a domestic or foreign national securities exchange
        (including London&#8217;s Alternative Investment Market) on which the Common Stock may
        be listed, as reported in The Wall Street Journal or The Financial Times.
        If the
        Common Stock is not listed on the Nasdaq Stock Market or on a national
        securities exchange, but is quoted on the OTC Bulletin Board or by the National
        Quotation Bureau, the Fair Market Value of the Common Stock shall be the
        mean of
        the bid and asked prices per share of the Common Stock for such date. If
        the
        Common Stock is not quoted or listed as set forth above, Fair Market Value
        shall
        be determined by the Board in good faith by any fair and</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">2</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">reasonable
        means (which means, with respect to a particular Award grant, may be set
        forth
        with greater specificity in the applicable Award Agreement). The Fair Market
        Value of property other than Common Stock shall be determined by the Board
        in
        good faith by any fair and reasonable means, and consistent with the applicable
        requirements of Sections&#160;409A and 422 of the Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Family
        Member&#8221; </em>shall mean any
        child, stepchild, grandchild, parent, spouse, former spouse, sibling, niece,
        nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
        brother-in-law or sister-in-law, including adoptive relationships, any person
        sharing the Holder&#8217;s household (other than a tenant of the Holder), a trust in
        which such persons have more than fifty percent (50%) of the beneficial
        interest, a foundation in which such persons (or the Holder) control the
        management of assets, and any other entity in which such persons (or the
        Holder)
        own more than fifty percent (50%) of the voting interests.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Holder&#8221;</em>
        shall mean an
        Employee, Director or Consultant who has been granted an Award or any such
        individual&#8217;s beneficiary, estate or representative, to the extent
        applicable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Incentive
        Stock Option&#8221;</em> shall
        mean an Option which is intended by the Board to constitute an &#8220;incentive stock
        option&#8221; under Section&#160;422 of the Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Non-Qualified
        Stock Option&#8221;</em>
        shall mean an Option which is not an Incentive Stock Option.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Option&#8221;</em>
        shall mean an Award
        granted under Article&#160;VII of the Plan of an option to purchase shares of
        Common Stock and includes both Incentive Stock Options and Non-Qualified
        Stock
        Options.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Option
        Agreement&#8221;</em> shall mean
        a written agreement between the Company and a Holder with respect to an
        Option.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Performance
        Share Award&#8221;</em>
        shall mean an Award granted under Article&#160;X of the Plan under which, upon
        the satisfaction of predetermined individual and/or Company (and/or Affiliate)
        performance goals and/or objectives, shares of Common Stock are paid to the
        Holder.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Performance
        Share Award Agreement&#8221;
</em>shall mean a written agreement between the Company and a Holder with
        respect to a Performance Share Award.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Plan&#8221;</em>
        shall mean this
        Positron Corporation 2007 Omnibus Securities and Incentive Plan, as amended
        from
        time to time, together with each of the Award Agreements utilized
        hereunder.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Restricted
        Stock Award&#8221;</em> shall
        mean an Award granted under Article&#160;VIII of the Plan of shares of Common
        Stock, the transferability of which by the Holder shall be subject to
        Restrictions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Restricted
        Stock Award
        Agreement&#8221;</em> shall mean a written agreement between the Company and a Holder
        with respect to a Restricted Stock Award.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Restriction
        Period&#8221;</em> shall
        mean the period of time for which shares of Common Stock subject to a Restricted
        Stock Award shall be subject to Restrictions, as set forth in the applicable
        Restricted Stock Award Agreement.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">3</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Restrictions&#8221;
</em>shall
        mean
        forfeiture, transfer and/or other restrictions applicable to shares of Common
        Stock awarded to an Employee, Director or Consultant under the Plan pursuant
        to
        a Restricted Stock Award and set forth in a Restricted Stock Award
        Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Rule&#160;16b-3&#8221;</em>
        shall mean
        Rule&#160;16b-3 promulgated by the Securities and Exchange Commission under the
        Exchange Act, as such may be amended from time to time, and any successor
        rule,
        regulation or statute fulfilling the same or a substantially similar
        function.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Ten
        Percent Stockholder&#8221;
</em>shall mean an Employee who, at the time an Option is granted to him
        or her,
        owns stock possessing more than ten percent (10%) of the total combined voting
        power of all classes of stock of the Company or of any parent corporation
        or
        subsidiary corporation thereof (both as defined in Section&#160;424 of the
        Code), within the meaning of Section&#160;422(b)(6) of the Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Total
        and Permanent
        Disability&#8221;</em> shall mean the inability to engage in any substantial gainful
        activity by reason of any medically determinable physical or mental impairment
        which can be expected to result in death or which has lasted or can be expected
        to last for a continuous period of not less than twelve (12)&#160;months, all as
        described in Section&#160;22(e)(3) of the Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Units&#8221;
</em>shall
        mean bookkeeping
        units, each of which represents such monetary amount as shall be designated
        by
        the Board in each Performance Unit Award Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Unrestricted
        Stock Award&#8221;</em>
        shall mean an Award granted under Article&#160;IX of the Plan of shares of
        Common Stock which are not subject to Restrictions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font><em>&#8220;Unrestricted
        Stock Award
        Agreement&#8221; </em>shall mean a written agreement between the Company and a Holder
        with respect to an Unrestricted Stock Award.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        III</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">EFFECTIVE
        DATE OF PLAN</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
        Plan shall be effective as of the
        Effective Date.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        IV</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ADMINISTRATION</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;4.1
        Composition of Board.
        The Plan shall be administered by the Board.&#160;&#160;If a member of the Board
        shall be eligible to receive an Award under the Plan, such Board member shall
        have no authority hereunder with respect to his or her own Award.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;4.2
        Powers. Subject to the
        provisions of the Plan, the Board shall have the sole authority, in its
        discretion, to make all determinations under the Plan, including but not
        limited
        to determining which Employees, Directors or Consultants shall receive an
        Award,
        the time or times when an Award</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">shall
        be
        made, what type of Award shall be granted, the term of an Award, the date
        or
        dates on which an Award vests (including acceleration of vesting), the form
        of
        any payment to be made pursuant to an Award, the terms and conditions of
        an
        Award, the Restrictions under a Restricted Stock Award and the number of
        shares
        of Common Stock which may be issued under an Award, all as applicable. In
        making
        such determinations the Board may take into account the nature of the services
        rendered by the respective Employees, Directors and Consultants, their present
        and potential contribution to the Company&#8217;s (or the Affiliate&#8217;s) success and
        such other factors as the Board in its discretion shall deem
        relevant.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;4.3
        Additional Powers. The
        Board shall have such additional powers as are delegated to it under the
        other
        provisions of the Plan. Subject to the express provisions of the Plan, the
        Board
        is authorized to construe the Plan and the respective Award Agreements executed
        hereunder, to prescribe such rules and regulations relating to the Plan as
        it
        may deem advisable to carry out the intent of the Plan, and to determine
        the
        terms, restrictions and provisions of each Award, including such terms,
        restrictions and provisions as shall be requisite in the judgment of the
        Board
        to cause designated Options to qualify as Incentive Stock Options, and to
        make
        all other determinations necessary or advisable for administering the Plan.
        The
        Board may correct any defect or supply any omission or reconcile any
        inconsistency in any Award Agreement in the manner and to the extent it shall
        deem expedient to carry it into effect. The determinations of the Board on
        the
        matters referred to in this Article&#160;IV shall be conclusive and binding on
        the Company and all Holders.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;4.4
        Board Action. In the
        absence of specific rules to the contrary, action by the Board shall require
        the
        consent of a majority of the members of the Board, expressed either orally
        at a
        meeting of the Board or in writing in the absence of a meeting.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        V</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">STOCK
        SUBJECT TO PLAN AND LIMITATIONS THEREON</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;5.1
        Stock Grant and Award
        Limits. The Board may from time to time grant Awards to one or more Employees,
        Directors and/or Consultants determined by it to be eligible for participation
        in the Plan in accordance with the provisions of Article&#160;VI. Subject to
        Article&#160;XIV, the aggregate number of shares of Common Stock that may be
        issued under the Plan shall not exceed Five Million (5,000,000) shares. To
        the
        extent that an Award lapses, expires, is canceled, is terminated unexercised
        or
        ceases to be exercisable for any reason, or the rights of its Holder terminate,
        any shares of Common Stock subject to such Award shall again be available
        for
        the grant of a new Award.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;5.2
        Stock Offered. The
        stock to be offered pursuant to the grant of an Award may be authorized but
        unissued Common Stock, Common Stock purchased on the open market or Common
        Stock
        previously issued and outstanding and reacquired by the Company.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        VI</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ELIGIBILITY
        FOR AWARDS; TERMINATION OF</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">EMPLOYMENT,
        DIRECTOR STATUS OR CONSULTANT STATUS</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;6.1
        Eligibility. Awards
        made under the Plan may be granted solely to persons or entities who, at
        the
        time of grant, are Employees, Directors or Consultants. An Award may be granted
        on more than one occasion to the same Employee, Director or Consultant, and,
        subject to the limitations set forth in the Plan, such Award may include,
        a
        Non-Qualified Stock Option, a Restricted Stock Award, an Unrestricted Stock
        Award, a Distribution Equivalent Right Award, any combination thereof or,
        solely
        for Employees, an Incentive Stock Option.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;6.2
        Termination of
        Employment or Director Status. Except to the extent inconsistent with the
        terms
        of the applicable Award Agreement and/or the provisions of Section&#160;6.4, the
        following terms and conditions shall apply with respect to the termination
        of a
        Holder&#8217;s employment with, or status as a Director of, the Company or an
        Affiliate, as applicable, for any reason, including, without limitation,
        Total
        and Permanent Disability or death:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>(a)&#160;The
        Holder&#8217;s rights, if any,
        to exercise any then exercisable Non-Qualified Stock Options shall
        terminate:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(1)&#160;If
        such termination is for a
        reason other than the Holder&#8217;s Total and Permanent Disability or death, not more
        than ninety (90)&#160;days after the date of such termination of employment or
        after the date of such termination of Director status;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(2)&#160;If
        such termination is on
        account of the Holder&#8217;s Total and Permanent Disability, one (1)&#160;year after
        the date of such termination of employment or Director status; or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(3)&#160;If
        such termination is on
        account of the Holder&#8217;s death, one (1)&#160;year after the date of the Holder&#8217;s
        death.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Upon
        such
        applicable date the Holder (and such Holder&#8217;s estate, designated beneficiary or
        other legal representative) shall forfeit any rights or interests in or with
        respect to any such Non-Qualified Stock Options.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>(b)&#160;The
        Holder&#8217;s rights, if any,
        to exercise any then exercisable Incentive Stock Option shall
        terminate:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(1)&#160;If
        such termination is for a
        reason other than the Holder&#8217;s Total and Permanent Disability or death, not more
        than three (3)&#160;months after the date of such termination of
        employment;</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">6</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(2)&#160;If
        such termination is on
        account of the Holder&#8217;s Total and Permanent Disability, one (1)&#160;year after
        the date of such termination of employment; or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(3)&#160;If
        such termination is on
        account of the Holder&#8217;s death, one (1)&#160;year after the date of the Holder&#8217;s
        death.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Upon
        such
        applicable date the Holder (and such Holder&#8217;s estate, designated beneficiary or
        other legal representative) shall forfeit any rights or interests in or with
        respect to any such Incentive Stock Options.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>(c)&#160;If
        a Holder&#8217;s employment with,
        or status as a Director of, the Company or an Affiliate, as applicable,
        terminates for any reason prior to the actual or deemed satisfaction and/or
        lapse of the restrictions, terms and conditions applicable to an Award of
        Restricted Stock and/or Deferred Stock, such Restricted Stock and/or Deferred
        Stock shall immediately be canceled, and the Holder (and such Holder&#8217;s estate,
        designated beneficiary or other legal representative) shall forfeit any rights
        or interests in and with respect to any such Restricted Stock and/or Deferred
        Stock. The immediately preceding sentence to the contrary notwithstanding,
        the
        Board, in its sole discretion, may determine, prior to or within thirty
        (30)&#160;days after the date of such termination of employment or Director
        status, that all or a portion of any such Holder&#8217;s Restricted Stock and/or
        Deferred Stock shall not be so canceled and forfeited.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;6.3
        Termination of
        Consultant Status. Except to the extent inconsistent with the terms of the
        applicable Award Agreement and/or the provisions of Section&#160;6.4, the
        following terms and conditions shall apply with respect to the termination
        of a
        Holder&#8217;s status as a Consultant, for any reason:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>(a)&#160;The
        Holder&#8217;s rights, if any,
        to exercise any then exercisable Non-Qualified Stock Options shall
        terminate:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(1)&#160;If
        such termination is for a
        reason other than the Holder&#8217;s death, not more than ninety (90)&#160;days after
        the date of such termination; or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>(2)&#160;If
        such termination is on
        account of the Holder&#8217;s death, one (1)&#160;year after the date of the Holder&#8217;s
        death.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>(b)&#160;If
        the status of a Holder as a
        Consultant terminates for any reason prior to the actual or deemed satisfaction
        and/or lapse of the restrictions, terms and conditions applicable to an Award
        of
        Restricted Stock and/or Deferred Stock, such Restricted Stock and/or Deferred
        Stock shall immediately be canceled, and the Holder (and such Holder&#8217;s estate,
        designated beneficiary or other legal representative) shall forfeit any rights
        or interests in and with respect to any such Restricted Stock and/or Deferred
        Stock. The immediately preceding sentence to the contrary notwithstanding,
        the
        Board, in its sole discretion, may determine, prior to or within thirty
        (30)&#160;days after the date of such termination of such a Holder&#8217;s status as a
        Consultant, that all or a portion of any such Holder&#8217;s Restricted Stock and/or
        Deferred Stock shall not be so canceled and forfeited.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">7</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;6.4
        Special Termination
        Rule. Except to the extent inconsistent with the terms of the applicable
        Award
        Agreement, and notwithstanding anything to the contrary contained in this
        Article&#160;VI, if a Holder&#8217;s employment with, or status as a Director of, the
        Company or an Affiliate shall terminate, if, within ninety (90)&#160;days of
        such termination, such Holder shall become a Consultant, such Holder&#8217;s rights
        with respect to any Award or portion thereof granted thereto prior to the
        date
        of such termination may be preserved, if and to the extent determined by
        the
        Board in its sole discretion, as if such Holder had been a Consultant for
        the
        entire period during which such Award or portion thereof had been outstanding.
        Should the Board effect such determination with respect to such Holder, for
        all
        purposes of the Plan, such Holder shall not be treated as if his or her
        employment or Director status had terminated until such time as his or her
        Consultant status shall terminate, in which case his or her Award, as it
        may
        have been reduced in connection with the Holder&#8217;s becoming a Consultant, shall
        be treated pursuant to the provisions of Section 6.3; provided, however,
        that
        any such Award which is intended to be an Incentive Stock Option shall, upon
        the
        Holder&#8217;s no longer being an Employee, automatically convert to a Non-Qualified
        Stock Option. Should a Holder&#8217;s status as a Consultant terminate, if, within
        ninety (90)&#160;days of such termination, such Holder shall become an Employee
        or a Director, such Holder&#8217;s rights with respect to any Award or portion thereof
        granted thereto prior to the date of such termination may be preserved, if
        and
        to the extent determined by the Board in its sole discretion, as if such
        Holder
        had been an Employee or a Director, as applicable, for the entire period
        during
        which such Award or portion thereof had been outstanding, and, should the
        Board
        effect such determination with respect to such Holder, for all purposes of
        the
        Plan, such Holder shall not be treated as if his or her Consultant status
        had
        terminated until such time as his or her employment with the Company or an
        Affiliate, or his or her Director status, as applicable, shall terminate,
        in
        which case his or her Award shall be treated pursuant to the provisions of
        Section&#160;6.2.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;6.5
        Termination for Cause.
        Notwithstanding anything in this Article&#160;VI or elsewhere in the Plan to the
        contrary, and unless a Holder&#8217;s Award Agreement specifically provides otherwise,
        should a Holder&#8217;s employment, Director status or engagement as a Consultant with
        or for the Company or an Affiliate be terminated by the Company or Affiliate
        for
        Cause, all of such Holder&#8217;s then outstanding Awards shall expire immediately and
        be forfeited in their entirety upon such termination.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        VII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">OPTIONS</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;7.1
        Option Period. The
        term of each Option shall be as specified in the Option
        Agreement.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">8</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;7.2
        Limitations on
        Exercise of Option. An Option shall be exercisable in whole or in such
        installments and at such times as specified in the Option
        Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;7.3
        Option Agreement. Each
        Option shall be evidenced by an Option Agreement in such form and containing
        such provisions not inconsistent with the provisions of the Plan as the Board
        from time to time shall approve, including, but not limited to, provisions
        intended to qualify an Option as an Incentive Stock Option. An Option Agreement
        may provide for the payment of the Option price, in whole or in part, by
        the
        delivery of a number of shares of Common Stock (plus cash if necessary) having
        a
        Fair Market Value equal to such Option price. Each Option Agreement shall,
        solely to the extent inconsistent with the provisions of Sections&#160;6.2, 6.3
        and 6.4, as applicable, specify the effect of termination of employment,
        Director status or Consultant status on the exercisability of the Option.
        Moreover, an Option Agreement may provide for a &#8220;cashless exercise&#8221; of the
        Option by establishing procedures whereby the Holder, by a properly-executed
        written notice, directs (i)&#160;an immediate market sale or margin loan
        respecting all or a part of the shares of Common Stock to which he is entitled
        upon exercise pursuant to an extension of credit by the Company to the Holder
        of
        the Option price, (ii)&#160;the delivery of the shares of Common Stock from the
        Company directly to a brokerage firm and (iii)&#160;the delivery of the Option
        price from sale or margin loan proceeds from the brokerage firm directly
        to the
        Company. An Option Agreement may also include provisions relating to
        (i)&#160;subject to the provisions hereof, accelerated vesting of Options,
        (ii)&#160;tax matters (including provisions covering any applicable Employee
        wage withholding requirements and requiring additional &#8220;gross-up&#8221; payments to
        Holders to meet any excise taxes or other additional income tax liability
        imposed as a result of a payment upon a &#8220;change of control&#8221; of the Company
        resulting from the operation of the Plan or of such Option Agreement) and
        (iii)&#160;any other matters not inconsistent with the terms and provisions of
        the Plan that the Board shall in its sole discretion determine. The terms
        and
        conditions of the respective Option Agreements need not be
        identical.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;7.5
        Option Price and
        Payment. The price at which a share of Common Stock may be purchased upon
        exercise of an Option shall be determined by the Board; provided, however,
        that
        such Option price (i)&#160;shall not be less than the Fair Market Value of a
        share of Common Stock on the date such Option is granted, and (ii)&#160;shall be
        subject to adjustment as provided in Article&#160;XIV. The Option or portion
        thereof may be exercised by delivery of an irrevocable notice of exercise
        to the
        Company. The Option price for the Option or portion thereof shall be paid
        in
        full in the manner prescribed by the Board as set forth in the applicable
        Option
        Agreement. Separate stock certificates shall be issued by the Company for
        those
        shares of Common Stock acquired pursuant to the exercise of an Incentive
        Stock
        Option and for those shares of Common Stock acquired pursuant to the exercise
        of
        a Non-Qualified Stock Option.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">9</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;7.6
        Stockholder Rights and
        Privileges. The Holder of an Option shall be entitled to all the privileges
        and
        rights of a stockholder of the Company solely with respect to such shares
        of
        Common Stock as have been purchased under the Option and for which certificates
        of stock have been registered in the Holder&#8217;s name.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        VIII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">RESTRICTED
        STOCK AWARDS</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;8.1
        Restriction Period to
        be Established by Board. At the time a Restricted Stock Award is made, the
        Board
        shall establish the Restriction Period applicable to such Award. Each Restricted
        Stock Award may have a different Restriction Period, in the discretion of
        the
        Board. The Restriction Period applicable to a particular Restricted Stock
        Award
        shall not be changed except as permitted by Section&#160;8.2.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;8.2
        Other Terms and
        Conditions. Common Stock awarded pursuant to a Restricted Stock Award shall
        be
        represented by a stock certificate registered in the name of the Holder of
        such
        Restricted Stock Award. If provided for under the Restricted Stock Award
        Agreement, the Holder shall have the right to vote Common Stock subject thereto
        and to enjoy all other stockholder rights, including the entitlement to receive
        dividends on the Common Stock during the Restriction Period, except that
        (i)&#160;the Holder shall not be entitled to delivery of the stock certificate
        until the Restriction Period shall have expired, (ii)&#160;the Company shall
        retain custody of the stock certificate during the Restriction Period (with
        a
        stock power endorsed by the Holder in blank), (iii)&#160;the Holder may not
        sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the
        Common
        Stock during the Restriction Period and (iv)&#160;a breach of the terms and
        conditions established by the Board pursuant to the Restricted Stock Award
        Agreement shall cause a forfeiture of the Restricted Stock Award. At the
        time of
        such Award, the Board may, in its sole discretion, prescribe additional terms
        and conditions or restrictions relating to Restricted Stock Awards, including,
        but not limited to, rules pertaining to the effect of termination of employment,
        Director status or Consultant status prior to expiration of the Restriction
        Period. Such additional terms, conditions or restrictions shall, to the extent
        inconsistent with the provisions of Sections&#160;6.2, 6.3 and 6.4, as
        applicable, be set forth in a Restricted Stock Award Agreement made in
        conjunction with the Award. Such Restricted Stock Award Agreement may also
        include provisions relating to (i)&#160;subject to the provisions hereof,
        accelerated vesting of Awards, including but not limited to accelerated vesting
        upon the occurrence of a &#8220;change of control&#8221; of the Company, (ii)&#160;tax
        matters (including provisions covering any applicable Employee wage withholding
        requirements and requiring additional &#8220;gross-up&#8221; payments to Holders to meet any
        excise taxes or other additional income tax liability imposed as a result
        of a
        payment made in connection with a &#8220;change of control&#8221; of the Company resulting
        from the operation of</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">10</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">the
        Plan
        or of such Restricted Stock Award Agreement) and (iii)&#160;any other matters
        not inconsistent with the terms and provisions of the Plan that the Board
        shall
        in its sole discretion determine. The terms and conditions of the respective
        Restricted Stock Agreements need not be identical.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;8.3
        Payment for Restricted
        Stock. The Board shall determine the amount and form of any payment from
        a
        Holder for Common Stock received pursuant to a Restricted Stock Award, if
        any,
        provided that in the absence of such a determination, a Holder shall not
        be
        required to make any payment for Common Stock received pursuant to a Restricted
        Stock Award, except to the extent otherwise required by law.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;8.4
        Restricted Stock Award
        Agreements. At the time any Award is made under this Article&#160;VIII, the
        Company and the Holder shall enter into a Restricted Stock Award Agreement
        setting forth each of the matters contemplated hereby and such other matters
        as
        the Board may determine to be appropriate.</font></div>
      <div><br></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        IX</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">UNRESTRICTED
        STOCK AWARDS</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Pursuant
        to the terms of the applicable
        Unrestricted Stock Award Agreement, a Holder may be awarded (or sold at a
        discount) shares of Common Stock which are not subject to Restrictions, in
        consideration for past services rendered thereby to the Company or an Affiliate
        or for other valid consideration.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        X</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">PERFORMANCE
        SHARE AWARDS</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;10.1
        Terms and Conditions.
        The Board shall set forth in the applicable Performance Share Award Agreement
        the performance goals and objectives (and the period of time to which such
        goals
        and objectives shall apply) which the Holder and/or the Company would be
        required to satisfy before the Holder would become entitled to the receipt
        of
        shares of Common Stock pursuant to such Holder&#8217;s Performance Share Award and the
        number of shares of Common Stock subject to such Performance Share
        Award.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;10.2
        Stockholder Rights
        and Privileges. The Holder of a Performance Share Award shall have no rights
        as
        a stockholder of the Company until such time, if any, as the Holder actually
        receives shares of Common Stock pursuant to the Performance Share
        Award.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">11</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        XI</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">RECAPITALIZATION
        OR REORGANIZATION</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;11.1
        Adjustments to Common
        Stock. The shares with respect to which Awards may be granted under the Plan
        are
        shares of Common Stock as presently constituted; provided, however, that
        if, and
        whenever, prior to the expiration or distribution to the Holder of an Award
        theretofore granted, the Company shall effect a subdivision or consolidation
        of
        shares of Common Stock or the payment of a stock dividend on Common Stock
        without receipt of consideration by the Company, the number of shares of
        Common
        Stock with respect to which such Award may thereafter be exercised or satisfied,
        as applicable, (i)&#160;in the event of an increase in the number of outstanding
        shares, shall be proportionately increased, and the purchase price per share
        shall be proportionately reduced, and (ii)&#160;in the event of a reduction in
        the number of outstanding shares, shall be proportionately reduced, and the
        purchase price per share shall be proportionately increased. Notwithstanding
        the
        foregoing, any such adjustment made with respect to an Award which is an
        Incentive Stock Option shall comply with the requirements of Section 424(a)
        of
        the Code, and in no event shall any such adjustment be made which would render
        any Incentive Stock Option granted under the Plan to be other than an &#8220;incentive
        stock option&#8221; for purposes of Section&#160;422 of the Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;11.2
        Recapitalization. If
        the Company recapitalizes or otherwise changes its capital structure, thereafter
        upon any exercise or satisfaction, as applicable, of a previously granted
        Award,
        the Holder shall be entitled to receive (or entitled to purchase, if applicable)
        under such Award, in lieu of the number of shares of Common Stock then covered
        by such Award, the number and class of shares of stock and securities to
        which
        the Holder would have been entitled pursuant to the terms of the
        recapitalization if, immediately prior to such recapitalization, the Holder
        had
        been the holder of record of the number of shares of Common Stock then covered
        by such Award.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;11.3
        Other Events. In the
        event of changes to the outstanding Common Stock by reason of recapitalization,
        reorganization, mergers, consolidations, combinations, exchanges or other
        relevant changes in capitalization occurring after the date of the grant
        of any
        Award and not otherwise provided for under this Article&#160;XI, any outstanding
        Awards and any Award Agreements evidencing such Awards shall be adjusted
        by the
        Board in its discretion as to the number and price of shares of Common Stock
        or
        other consideration subject to such Awards. In the event of any such change
        to
        the outstanding Common Stock, the aggregate number of shares available under
        the
        Plan may be appropriately adjusted by the Board, the determination of which
        shall be conclusive.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;11.4
        Powers Not Affected.
        The existence of the Plan and the Awards granted hereunder shall not affect
        in
        any way the right or power of the Board or of the stockholders of the Company
        to
        make or authorize any adjustment, recapitalization, reorganization or other
        change of the Company&#8217;s capital </font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">12</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">structure
        or business, any merger or consolidation of the Company, any issue of debt
        or
        equity securities ahead of or affecting Common Stock or the rights thereof,
        the
        dissolution or liquidation of the Company or any sale, lease, exchange or
        other
        disposition of all or any part of its assets or business or any other corporate
        act or proceeding.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;11.5
        No Adjustment for
        Certain Awards. Except as hereinabove expressly provided, the issuance by
        the
        Company of shares of stock of any class or securities convertible into shares
        of
        stock of any class, for cash, property, labor or services, upon direct sale,
        upon the exercise of rights or warrants to subscribe therefor or upon conversion
        of shares or obligations of the Company convertible into such shares or other
        securities, and in any case whether or not for fair value, shall not affect
        previously granted Awards, and no adjustment by reason thereof shall be made
        with respect to the number of shares of Common Stock subject to Awards
        theretofore granted or the purchase price per share, if applicable.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        XII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">AMENDMENT
        AND TERMINATION OF PLAN</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
        Board in its discretion may
        terminate the Plan at any time with respect to any shares for which Awards
        have
        not theretofore been granted; provided, however, that the Plan&#8217;s termination
        shall not materially and adversely impair the rights of a Holder with respect
        to
        any Award theretofore granted without the consent of the Holder. The Board
        shall
        have the right to alter or amend the Plan or any part hereof from time to
        time;
        provided, however, that no change in any Award theretofore granted may be
        made
        which would materially and adversely impair the rights of a Holder with respect
        to such Award without the consent of the Holder (unless such change is required
        in order to cause the benefits under the Plan to qualify as &#8220;performance-based&#8221;
compensation within the meaning of Section 162(m) of the Code).</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
        XIII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 12.55pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">MISCELLANEOUS</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.1
        No Right to Award.
        Neither the adoption of the Plan by the Company nor any action of the Board
        shall be deemed to give an Employee, Director or Consultant any right to
        an
        Award except as may be evidenced by an Award Agreement duly executed on behalf
        of the Company, and then solely to the extent and on the terms and conditions
        expressly set forth therein.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.2
        No Rights Conferred.
        Nothing contained in the Plan shall (i)&#160;confer upon any Employee any right
        with respect to continuation of employment with the Company or any Affiliate,
        (ii)&#160;interfere in any way with any right of the Company or any Affiliate to
        terminate the employment of an</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">13</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;Employee
        at any time, (iii)&#160;confer upon any Director any right with respect to
        continuation of such Director&#8217;s membership on the Board, (iv)&#160;interfere in
        any way with any right of the Company or an Affiliate to terminate a Director&#8217;s
        membership on the Board at any time, (v) confer upon any Consultant any right
        with respect to continuation of his or her consulting engagement with the
        Company or any Affiliate, or (vi)&#160;interfere in any way with any right of
        the Company or an Affiliate to terminate a Consultant&#8217;s consulting engagement
        with the Company or an Affiliate at any time.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.3
        No Fractional Shares;
        Withholding. No fractional shares of Common Stock shall be delivered, nor
        shall
        any cash in lieu of fractional shares be paid. The Company shall have the
        right
        to deduct in cash (whether under this Plan or otherwise) in connection with
        all
        Awards any taxes required by law to be withheld and to require any payments
        required to enable it to satisfy its withholding obligations. In the case
        of any
        Award satisfied in the form of shares of Common Stock, no shares shall be
        issued
        unless and until arrangements satisfactory to the Company shall have been
        made
        to satisfy any tax withholding obligations applicable with respect to such
        Award. Subject to such terms and conditions as the Board may impose, the
        Company
        shall have the right to retain, or the Board may, subject to such terms and
        conditions as it may establish from time to time, permit Holders to elect
        to
        tender, Common Stock (including Common Stock issuable in respect of an Award)
        to
        satisfy, in whole or in part, the amount required to be withheld.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.4
        No Restriction on
        Corporate Action. Nothing contained in the Plan shall be construed to prevent
        the Company or any Affiliate from taking any corporate action which is deemed
        by
        the Company or such Affiliate to be appropriate or in its best interest,
        whether
        or not such action would have an adverse effect on the Plan or any Award
        made
        under the Plan. No Employee, Director, Consultant, beneficiary or other person
        shall have any claim against the Company or any Affiliate as a result of
        any
        such action.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.5
        Beneficiary
        Designations. Each Holder may, from time to time, name a beneficiary or
        beneficiaries (who may be contingent or successive beneficiaries) for purposes
        of receiving any amount which is payable in connection with an Award under
        the
        Plan upon or subsequent to the Holder&#8217;s death. Each such beneficiary designation
        shall serve to revoke all prior beneficiary designations, be in a form
        prescribed by the Company and be effective solely when filed by the Holder
        in
        writing with the Company during the Holder&#8217;s lifetime. In the absence of any
        such written beneficiary designation, for purposes of the Plan, a Holder&#8217;s
        beneficiary shall be the Holder&#8217;s estate.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.6
        Other Plans. No
        Award, payment or amount received hereunder shall be taken into account in
        computing an Employee&#8217;s salary or compensation for the purposes of determining
        any benefits under any pension, retirement, life insurance or other benefit
        plan
        of the Company or any Affiliate, unless such other plan specifically provides
        for the inclusion of such Award, payment or amount received.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt;">14</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.7
        Limits of Liability.
        Any liability of the Company with respect to an Award shall be based solely
        upon
        the contractual obligations created under the Plan and the Award Agreement.
        None
        of the Company, any member of the Board nor any member of the Board shall
        have
        any liability to any party for any action taken or not taken, in good faith,
        in
        connection with or under the Plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.8
        Governing Law. Except
        as otherwise provided herein, the Plan shall be construed in accordance with
        the
        laws of the State of Texas, without regard to principles of conflicts of
        law.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.9
        Severability of
        Provisions. If any provision of the Plan is held invalid or unenforceable,
        such
        invalidity or unenforceability shall not affect any other provision of the
        Plan,
        and the Plan shall be construed and enforced as if such invalid or unenforceable
        provision had not been included in the Plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.10
        No Funding. The Plan
        shall be unfunded. The Company shall not be required to establish any special
        or
        separate fund or to make any other segregation of funds or assets to ensure
        the
        payment of any Award.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.11
        Headings. Headings
        used throughout the Plan are for convenience only and shall not be given
        legal
        significance.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Section&#160;13.12
        Terms of Award
        Agreements. Each Award shall be evidenced by an Award Agreement, which Award
        Agreement, if it provides for the issuance of Common Stock, shall require
        the
        Holder to enter into and be bound by the terms of the Company&#8217;s Stockholders&#8217;
Agreement, if any. The terms of the Award Agreements utilized under the Plan
        need not be the same.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 18.8pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">15</font></div>
      <div>
        <hr style="COLOR: black" noshade size="2">&#160;</div>
    </div>
    <div>&#160;</div>
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forms-8.htm
As
      filed with the Securities and Exchange Commission on July 12,
      2007
Registration
      No. 333-
UNITED STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      S-8
REGISTRATION
      STATEMENT
UNDER
THE
      SECURITIES ACT OF 1933
POSITRON
      CORPORATION
(Exact
      Name of Registrant as Specified in Its Charter)
Texas
76-0083622
(State
                or Other Jurisdiction of
Incorporation
                or Organization)
(I.R.S.
                Employer
Identification
                No.)
1304
      Langham Creek Drive, Suite 300
Houston,
      Texas 77084
(Address
      of Principal Executive Offices, including Zip Code)
2007
      Stock Option Plan
(Full
      Title of the Plan)
Patrick
      Rooney
Chairman
1304
      Langham Creek Drive, Suite 300
Houston,
      Texas  77084
(Name,
      Address and Telephone Number of Agent For Service)
Copies
      of all communications to:
Peter
      Campitiello, Esq.
Levy
      & Boonshoft, P.C.
477
      Madison Avenue
New
      York, NY 10022
212
      751-1414
CALCULATION
      OF REGISTRATION FEE
Title
                Of Each Class Of Securities to be Registered
Amount
to
                be
Registered(1)
Proposed Maximum
Offering
                Price
Per
                Share
Proposed Maximum
Aggregate
Offering
                Price
Amount Of
Registration Fee
Common
                Stock, $0,01 par value per share
5,000,000
(2)
$
0.09(3)
$
450,000
$
48.15
(1)
This
                Registration Statement shall also cover any additional shares of
                Common
                Stock which become issuable under the 2007 Stock Option Plan by reason
                of
                any stock dividend, stock split, recapitalization or other similar
                transaction effected without the Registrant's receipt of consideration
                which results in an increase in the number of the outstanding shares
                of
                Registrant's Common Stock.
(2)
Represents
                shares automatically reserved for issuance under the 2007 Omnibus
                Securities and Incentive Plan.
(3)
Estimated
                solely for the purpose of calculating the registration fee in accordance
                with Rules 457(c) and (h) promulgated under the Securities Act of
                1933 and based upon the average of the high and low sales prices
                of
                Positron Corporation Common Stock reported on the Over the Counter
                Bulletin Board on July 10, 2007.
Table
      of Contents
TABLE
      OF CONTENTS
PART
                I:
                INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1.
Plan
                Information
4
Item
                2.
Registrant
                Information and Employee Plan Annual
                Information
4
PART
                II:
                INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
4
Item
                3.
Incorporation
                of
                Documents by Reference
4
Item
                4.
Description
                of
                Securities
4
Item
                5.
Interests
                of
                Named Experts and Counsel
4
Item
                6.
Indemnification
                of Directors and Officers
5
Item
                7.
Exemption
                from
                Registration Claimed
5
Item
                8.
Exhibits
5
Item
                9.
Undertakings
5
SIGNATURES
5
EXHIBIT
                INDEX
EXHIBIT 5.1
EXHIBIT 23.1
EXHIBIT
                23.2
PART
I
INFORMATION
      REQUIRED IN THE PROSPECTUS
Item
1.
      Plan Information.
*
Item
2.
      Registrant Information and Employee Program Annual
      Information.*
*
Information
                required by Part I to be contained in each Section 10(a) prospectus
                is omitted from this Registration Statement in accordance with Rule
                428
                under the Securities Act of 1933, as amended (the "Securities Act") and
                the Note to Part I of Form S-8.
PART
II
INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT
Item
3.
      Incorporation of Documents by
      Reference.
The
      following documents previously filed by Positron Corporation (the "Registrant")
      with the Securities and Exchange Commission (the "Commission") are hereby
      incorporated by reference in this Registration Statement:
(a)
      Registrant's Annual Report on Form 10-KSB for the fiscal year ended
      December 31, 2006, filed with the Commission on April 13, 2007 pursuant to
      Section 13(a) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act").
(b)
      All
      other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act
      since the end of the latest fiscal year covered by the document referred to
      in
      (a) above, including Registrant's Quarterly Reports on Form 10-QSB for the
      quarterly periods ended March 31, 2007, September 30, 2006 and June 30, 2006,
      filed with the Commission on May 15, 2007, November 14, 2006 and August 21,
      2006, respectively.
(c)
      The
      description of Registrant's Common Stock contained in Registrant's Registration
      Statement on Form SB-2, filed with the Commission on September 20, 2006 (File
      No. 333-137464) pursuant to Rule 14(c) of the Exchange Act, including any
      amendments or reports filed for the purpose of updating such
      description.
In
      addition, all documents subsequently filed by Registrant pursuant to Sections
      13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a
      post-effective amendment which indicates that all securities offered have been
      sold or which deregisters all securities then remaining unsold, shall be deemed
      to be incorporated by reference in this registration statement and to be a
      part
      hereof from the date of filing of such documents. Unless expressly incorporated
      into this Registration Statement, a report furnished on Form 8-K prior or
      subsequent to the date hereof shall not be incorporated by reference into this
      Registration Statement. Any statement contained in a document incorporated
      or
      deemed to be incorporated by reference herein shall be deemed to be modified
      or
      superseded for purposes of this Registration Statement to the extent that a
      statement contained in any subsequently filed document which also is deemed
      to
      be incorporated by reference herein modifies or supersedes such
      statement.
Item
4.
      Description of Securities.
Not
      applicable.
Item
5.
      Interests of Named Experts and
      Counsel.
Not
      applicable.
Item
6.
      Indemnification of Directors and
      Officers
Pursuant
      to the Texas Business
      Corporation Act (the "BCA"), Positron's Articles of Incorporation exclude
      personal liability on the part of its directors to the Company for monetary
      damages based upon any violation of their fiduciary duties as directors,
      provided the director acted in good faith, reasonably believed the conduct
      was
      in the best interests of the corporation and had no reason to believe the
      conduct was unlawful. Positron's Articles of Incorporation and its By-laws
      require indemnification of directors and officers of the registrant to the
      fullest extent permitted by the BCA for claims against them in their official
      capacities, including stockholders' derivative actions.
Insofar
      as indemnification for
      liabilities arising under the Securities Act may be permitted to directors,
      officers and controlling persons of the Company pursuant to the foregoing
      provisions, or otherwise, we have 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.
Item
7.
      Exemption from Registration
      Claimed.
Not
      applicable.
Item
8.
      Exhibits.
4
*
2007
                Omnibus Securities and Incentive Plan
5
*
Opinion
                of Levy & Boonshoft, P.C.
23.1
Consent
                of Independent Registered Public Accounting Firm
23.2
*
Consent
                of Levy & Boonshoft, P.C. (included in Exhibit 5)
24.1
Powers
                of Attorney (included on the signature page included in this registration
                statement)
*
Filed
                herewith.
Item
9.
      Undertakings.
(a)
      The
      undersigned Registrant hereby undertakes:
(1)
      To
      file, during any period in which offers or sales are being made, a
      post-effective amendment to this Registration Statement:
(i)
      to
      include any prospectus required by Section 10(a)(3) of the Securities
      Act;
(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
      hereof) which, individually or in the aggregate, represent a fundamental change
      in the information set forth in this Registration Statement. Notwithstanding
      the
      foregoing, any increase or decrease in volume of securities offered (if the
      total dollar value of securities offered would not exceed that which was
      registered) and any deviation from the low or high end of the estimated maximum
      offering range may be reflected in the form of prospectus filed with the
      Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
      and price represent no more than a 20% change in the maximum aggregate offering
      price set forth in the "Calculation of Registration Fee" table in the effective
      Registration Statement; and
(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 this 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 Exchange Act that are incorporated by reference in
      this Registration Statement.
(2)
      That,
      for the purpose of determining any liability under the Securities Act, 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.
(3)
      To
      remove from registration by means of a post-effective amendment any of the
      securities being registered which remain unsold at the termination of the
      offering.
(b)
      The
      undersigned Registrant hereby undertakes that, for purposes of determining
      any
      liability under the Securities Act, each filing of the Registrant's annual
      report pursuant to Section 13(a) or Section 15(d) of the Exchange Act
      (and, where applicable, each filing of an employee benefit plan's annual report
      pursuant to Section15(d) of the Exchange Act) that is incorporated by reference
      into this 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.
(c)
      Insofar as indemnification for liabilities arising under the Securities Act
      may
      be permitted to directors, officers and controlling persons of the Registrant
      pursuant to the foregoing provisions, or otherwise, the Registrant has been
      advised that in the opinion of the Securities and Exchange Commission 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 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.
SIGNATURES
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 the City of Houston, State
      of Texas on
July 12,
      2007
.
POSITRON
                CORPORATION
By:
/s/
                  Patrick Rooney
Patrick
                Rooney
Chairman
                of the Board
POSITRON
        CORPORATION
2007
        OMNIBUS SECURITIES AND INCENTIVE PLAN
ARTICLE
        I
PURPOSE
The
        purpose of this Positron
        Corporation 2007 Omnibus Securities and Incentive Plan (the "Plan") is to
        benefit the stockholders of Positron Corporation, a Texas corporation (the
        "Company"), by assisting the Company to attract, retain and provide incentives
        to key management employees and nonemployee directors of, and non-employee
        consultants to, the Company and its Affiliates, and to align the interests
        of
        such employees, nonemployee directors and nonemployee consultants with those
        of
        the Company's stockholders. Accordingly, the Plan provides for the granting of
        Incentive Stock Options, Non-Qualified Stock Options, Performance Share Awards,
        Restricted Stock Awards, Unrestricted Stock Awards or any combination of
        the
        foregoing, as may be best suited to the circumstances of the particular
        Employee, Director or Consultant as provided herein.
ARTICLE
        II
DEFINITIONS
The
        following definitions shall be
        applicable throughout the Plan unless the context otherwise
        requires:
"Affiliate"
shall
        mean any
        person or entity which, at the time of reference, directly, or indirectly
        through one or more intermediaries, controls, is controlled by, or is under
        common control with, the Company.
"Award"
shall
        mean,
        individually or collectively, any Distribution Equivalent Right, Option,
        Performance Share Award, Performance Unit Award, Restricted Stock Award,
        Stock
        Appreciation Right or Unrestricted Stock Award.
"Award
        Agreement"
shall mean a
        written agreement between the Company and the Holder with respect to an Award,
        each of which shall constitute a part of the Plan.
"Board"
shall mean the Board
        of Directors of the Company.
"Cause"
shall
        mean (i) if
        the Holder is a party to an employment or similar agreement with the Company
        or
        an Affiliate which agreement defines "Cause" (or a similar term) therein,
"Cause" shall have the same meaning as provided for in such agreement, or
        (ii) for a Holder who is not a party to such an agreement, "Cause" shall
        mean termination by the Company or an Affiliate of the employment (or
        other
service
        relationship) of the Holder by reason of the Holder's (A) intentional
        failure to perform reasonably assigned duties, (B) dishonesty or willful
        misconduct in the performance of the Holder's duties, (C) involvement in a
        transaction which is materially adverse to the Company or an Affiliate,
        (D) breach of fiduciary duty involving personal profit, (E) willful
        violation of any law, rule, regulation or court order (other than misdemeanor
        traffic violations and misdemeanors not involving misuse or misappropriation
        of
        money or property), (F) commission of an act of fraud or intentional
        misappropriation or conversion of any asset or opportunity of the Company
        or an
        Affiliate, or (G) material breach of any provision of the Plan or the
        Holder's Award Agreement or any other written agreement between the Holder and
        the Company or an Affiliate, in each case as determined in good faith by
        the
        Board, the determination of which shall be final, conclusive and binding
        on all
        parties.
"Code"
shall
        mean the Internal
        Revenue Code of 1986, as amended. Reference in the Plan to any section of
        the
        Code shall be deemed to include any amendments or successor provisions to
        any
        section and any regulation under such section.
"Common
        Stock"
shall
        mean the common stock, par value $0.01 per share, of the Company.
"Company"
shall
        mean Positron
        Corporation, a Texas corporation, and any successor thereto.
"Consultant"
shall
        mean any
        non-Employee (individual or entity) advisor to the Company or an Affiliate
        who
        or which has contracted directly with the Company or an Affiliate to render
        bona
        fide consulting or advisory services thereto.
"Director"
shall mean a member
        of the Board or a member of the board of directors of an Affiliate, in either
        case, who is not an Employee.
"Effective
        Date"
shall mean
        July 1, 2007.
"Employee"
shall
        mean any
        employee, including officers, of the Company or an Affiliate.
"Exchange
        Act"
shall mean the
        Securities Exchange Act of 1934, as amended.
"Fair
        Market Value"
shall
        mean, as determined consistent with the applicable requirements of
        Sections 409A and 422 of the Code, as of any specified date, the closing
        sales price of the Common Stock for such date (or, in the event that the
        Common
        Stock is not traded on such date, on the immediately preceding trading date)
        on
        the Nasdaq Stock Market or a domestic or foreign national securities exchange
        (including London's Alternative Investment Market) on which the Common Stock may
        be listed, as reported in The Wall Street Journal or The Financial Times.
        If the
        Common Stock is not listed on the Nasdaq Stock Market or on a national
        securities exchange, but is quoted on the OTC Bulletin Board or by the National
        Quotation Bureau, the Fair Market Value of the Common Stock shall be the
        mean of
        the bid and asked prices per share of the Common Stock for such date. If
        the
        Common Stock is not quoted or listed as set forth above, Fair Market Value
        shall
        be determined by the Board in good faith by any fair and
2
reasonable
        means (which means, with respect to a particular Award grant, may be set
        forth
        with greater specificity in the applicable Award Agreement). The Fair Market
        Value of property other than Common Stock shall be determined by the Board
        in
        good faith by any fair and reasonable means, and consistent with the applicable
        requirements of Sections 409A and 422 of the Code.
"Family
        Member"
shall mean any
        child, stepchild, grandchild, parent, spouse, former spouse, sibling, niece,
        nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
        brother-in-law or sister-in-law, including adoptive relationships, any person
        sharing the Holder's household (other than a tenant of the Holder), a trust in
        which such persons have more than fifty percent (50%) of the beneficial
        interest, a foundation in which such persons (or the Holder) control the
        management of assets, and any other entity in which such persons (or the
        Holder)
        own more than fifty percent (50%) of the voting interests.
"Holder"
shall mean an
        Employee, Director or Consultant who has been granted an Award or any such
        individual's beneficiary, estate or representative, to the extent
        applicable.
"Incentive
        Stock Option"
shall
        mean an Option which is intended by the Board to constitute an "incentive stock
        option" under Section 422 of the Code.
"Non-Qualified
        Stock Option"
shall mean an Option which is not an Incentive Stock Option.
"Option"
shall mean an Award
        granted under Article VII of the Plan of an option to purchase shares of
        Common Stock and includes both Incentive Stock Options and Non-Qualified
        Stock
        Options.
"Option
        Agreement"
shall mean
        a written agreement between the Company and a Holder with respect to an
        Option.
"Performance
        Share Award"
shall mean an Award granted under Article X of the Plan under which, upon
        the satisfaction of predetermined individual and/or Company (and/or Affiliate)
        performance goals and/or objectives, shares of Common Stock are paid to the
        Holder.
"Performance
        Share Award Agreement"
shall mean a written agreement between the Company and a Holder with
        respect to a Performance Share Award.
"Plan"
shall mean this
        Positron Corporation 2007 Omnibus Securities and Incentive Plan, as amended
        from
        time to time, together with each of the Award Agreements utilized
        hereunder.
"Restricted
        Stock Award"
shall
        mean an Award granted under Article VIII of the Plan of shares of Common
        Stock, the transferability of which by the Holder shall be subject to
        Restrictions.
"Restricted
        Stock Award
        Agreement"
shall mean a written agreement between the Company and a Holder
        with respect to a Restricted Stock Award.
"Restriction
        Period"
shall
        mean the period of time for which shares of Common Stock subject to a Restricted
        Stock Award shall be subject to Restrictions, as set forth in the applicable
        Restricted Stock Award Agreement.
3
"Restrictions"
shall
        mean
        forfeiture, transfer and/or other restrictions applicable to shares of Common
        Stock awarded to an Employee, Director or Consultant under the Plan pursuant
        to
        a Restricted Stock Award and set forth in a Restricted Stock Award
        Agreement.
"Rule 16b-3"
shall mean
        Rule 16b-3 promulgated by the Securities and Exchange Commission under the
        Exchange Act, as such may be amended from time to time, and any successor
        rule,
        regulation or statute fulfilling the same or a substantially similar
        function.
"Ten
        Percent Stockholder"
shall mean an Employee who, at the time an Option is granted to him
        or her,
        owns stock possessing more than ten percent (10%) of the total combined voting
        power of all classes of stock of the Company or of any parent corporation
        or
        subsidiary corporation thereof (both as defined in Section 424 of the
        Code), within the meaning of Section 422(b)(6) of the Code.
"Total
        and Permanent
        Disability"
shall mean the inability to engage in any substantial gainful
        activity by reason of any medically determinable physical or mental impairment
        which can be expected to result in death or which has lasted or can be expected
        to last for a continuous period of not less than twelve (12) months, all as
        described in Section 22(e)(3) of the Code.
"Units"
shall
        mean bookkeeping
        units, each of which represents such monetary amount as shall be designated
        by
        the Board in each Performance Unit Award Agreement.
"Unrestricted
        Stock Award"
shall mean an Award granted under Article IX of the Plan of shares of
        Common Stock which are not subject to Restrictions.
"Unrestricted
        Stock Award
        Agreement"
shall mean a written agreement between the Company and a Holder
        with respect to an Unrestricted Stock Award.
ARTICLE
        III
EFFECTIVE
        DATE OF PLAN
The
        Plan shall be effective as of the
        Effective Date.
ARTICLE
        IV
ADMINISTRATION
Section 4.1
        Composition of Board.
        The Plan shall be administered by the Board.  If a member of the Board
        shall be eligible to receive an Award under the Plan, such Board member shall
        have no authority hereunder with respect to his or her own Award.
Section 4.2
        Powers. Subject to the
        provisions of the Plan, the Board shall have the sole authority, in its
        discretion, to make all determinations under the Plan, including but not
        limited
        to determining which Employees, Directors or Consultants shall receive an
        Award,
        the time or times when an Award
4
shall
        be
        made, what type of Award shall be granted, the term of an Award, the date
        or
        dates on which an Award vests (including acceleration of vesting), the form
        of
        any payment to be made pursuant to an Award, the terms and conditions of
        an
        Award, the Restrictions under a Restricted Stock Award and the number of
        shares
        of Common Stock which may be issued under an Award, all as applicable. In
        making
        such determinations the Board may take into account the nature of the services
        rendered by the respective Employees, Directors and Consultants, their present
        and potential contribution to the Company's (or the Affiliate's) success and
        such other factors as the Board in its discretion shall deem
        relevant.
Section 4.3
        Additional Powers. The
        Board shall have such additional powers as are delegated to it under the
        other
        provisions of the Plan. Subject to the express provisions of the Plan, the
        Board
        is authorized to construe the Plan and the respective Award Agreements executed
        hereunder, to prescribe such rules and regulations relating to the Plan as
        it
        may deem advisable to carry out the intent of the Plan, and to determine
        the
        terms, restrictions and provisions of each Award, including such terms,
        restrictions and provisions as shall be requisite in the judgment of the
        Board
        to cause designated Options to qualify as Incentive Stock Options, and to
        make
        all other determinations necessary or advisable for administering the Plan.
        The
        Board may correct any defect or supply any omission or reconcile any
        inconsistency in any Award Agreement in the manner and to the extent it shall
        deem expedient to carry it into effect. The determinations of the Board on
        the
        matters referred to in this Article IV shall be conclusive and binding on
        the Company and all Holders.
Section 4.4
        Board Action. In the
        absence of specific rules to the contrary, action by the Board shall require
        the
        consent of a majority of the members of the Board, expressed either orally
        at a
        meeting of the Board or in writing in the absence of a meeting.
ARTICLE
        V
STOCK
        SUBJECT TO PLAN AND LIMITATIONS THEREON
Section 5.1
        Stock Grant and Award
        Limits. The Board may from time to time grant Awards to one or more Employees,
        Directors and/or Consultants determined by it to be eligible for participation
        in the Plan in accordance with the provisions of Article VI. Subject to
        Article XIV, the aggregate number of shares of Common Stock that may be
        issued under the Plan shall not exceed Five Million (5,000,000) shares. To
        the
        extent that an Award lapses, expires, is canceled, is terminated unexercised
        or
        ceases to be exercisable for any reason, or the rights of its Holder terminate,
        any shares of Common Stock subject to such Award shall again be available
        for
        the grant of a new Award.
5
Section 5.2
        Stock Offered. The
        stock to be offered pursuant to the grant of an Award may be authorized but
        unissued Common Stock, Common Stock purchased on the open market or Common
        Stock
        previously issued and outstanding and reacquired by the Company.
ARTICLE
        VI
ELIGIBILITY
        FOR AWARDS; TERMINATION OF
EMPLOYMENT,
        DIRECTOR STATUS OR CONSULTANT STATUS
Section 6.1
        Eligibility. Awards
        made under the Plan may be granted solely to persons or entities who, at
        the
        time of grant, are Employees, Directors or Consultants. An Award may be granted
        on more than one occasion to the same Employee, Director or Consultant, and,
        subject to the limitations set forth in the Plan, such Award may include,
        a
        Non-Qualified Stock Option, a Restricted Stock Award, an Unrestricted Stock
        Award, a Distribution Equivalent Right Award, any combination thereof or,
        solely
        for Employees, an Incentive Stock Option.
Section 6.2
        Termination of
        Employment or Director Status. Except to the extent inconsistent with the
        terms
        of the applicable Award Agreement and/or the provisions of Section 6.4, the
        following terms and conditions shall apply with respect to the termination
        of a
        Holder's employment with, or status as a Director of, the Company or an
        Affiliate, as applicable, for any reason, including, without limitation,
        Total
        and Permanent Disability or death:
(a) The
        Holder's rights, if any,
        to exercise any then exercisable Non-Qualified Stock Options shall
        terminate:
(1) If
        such termination is for a
        reason other than the Holder's Total and Permanent Disability or death, not more
        than ninety (90) days after the date of such termination of employment or
        after the date of such termination of Director status;
(2) If
        such termination is on
        account of the Holder's Total and Permanent Disability, one (1) year after
        the date of such termination of employment or Director status; or
(3) If
        such termination is on
        account of the Holder's death, one (1) year after the date of the Holder's
        death.
Upon
        such
        applicable date the Holder (and such Holder's estate, designated beneficiary or
        other legal representative) shall forfeit any rights or interests in or with
        respect to any such Non-Qualified Stock Options.
(b) The
        Holder's rights, if any,
        to exercise any then exercisable Incentive Stock Option shall
        terminate:
(1) If
        such termination is for a
        reason other than the Holder's Total and Permanent Disability or death, not more
        than three (3) months after the date of such termination of
        employment;
6
(2) If
        such termination is on
        account of the Holder's Total and Permanent Disability, one (1) year after
        the date of such termination of employment; or
(3) If
        such termination is on
        account of the Holder's death, one (1) year after the date of the Holder's
        death.
Upon
        such
        applicable date the Holder (and such Holder's estate, designated beneficiary or
        other legal representative) shall forfeit any rights or interests in or with
        respect to any such Incentive Stock Options.
(c) If
        a Holder's employment with,
        or status as a Director of, the Company or an Affiliate, as applicable,
        terminates for any reason prior to the actual or deemed satisfaction and/or
        lapse of the restrictions, terms and conditions applicable to an Award of
        Restricted Stock and/or Deferred Stock, such Restricted Stock and/or Deferred
        Stock shall immediately be canceled, and the Holder (and such Holder's estate,
        designated beneficiary or other legal representative) shall forfeit any rights
        or interests in and with respect to any such Restricted Stock and/or Deferred
        Stock. The immediately preceding sentence to the contrary notwithstanding,
        the
        Board, in its sole discretion, may determine, prior to or within thirty
        (30) days after the date of such termination of employment or Director
        status, that all or a portion of any such Holder's Restricted Stock and/or
        Deferred Stock shall not be so canceled and forfeited.
Section 6.3
        Termination of
        Consultant Status. Except to the extent inconsistent with the terms of the
        applicable Award Agreement and/or the provisions of Section 6.4, the
        following terms and conditions shall apply with respect to the termination
        of a
        Holder's status as a Consultant, for any reason:
(a) The
        Holder's rights, if any,
        to exercise any then exercisable Non-Qualified Stock Options shall
        terminate:
(1) If
        such termination is for a
        reason other than the Holder's death, not more than ninety (90) days after
        the date of such termination; or
(2) If
        such termination is on
        account of the Holder's death, one (1) year after the date of the Holder's
        death.
(b) If
        the status of a Holder as a
        Consultant terminates for any reason prior to the actual or deemed satisfaction
        and/or lapse of the restrictions, terms and conditions applicable to an Award
        of
        Restricted Stock and/or Deferred Stock, such Restricted Stock and/or Deferred
        Stock shall immediately be canceled, and the Holder (and such Holder's estate,
        designated beneficiary or other legal representative) shall forfeit any rights
        or interests in and with respect to any such Restricted Stock and/or Deferred
        Stock. The immediately preceding sentence to the contrary notwithstanding,
        the
        Board, in its sole discretion, may determine, prior to or within thirty
        (30) days after the date of such termination of such a Holder's status as a
        Consultant, that all or a portion of any such Holder's Restricted Stock and/or
        Deferred Stock shall not be so canceled and forfeited.
7
Section 6.4
        Special Termination
        Rule. Except to the extent inconsistent with the terms of the applicable
        Award
        Agreement, and notwithstanding anything to the contrary contained in this
        Article VI, if a Holder's employment with, or status as a Director of, the
        Company or an Affiliate shall terminate, if, within ninety (90) days of
        such termination, such Holder shall become a Consultant, such Holder's rights
        with respect to any Award or portion thereof granted thereto prior to the
        date
        of such termination may be preserved, if and to the extent determined by
        the
        Board in its sole discretion, as if such Holder had been a Consultant for
        the
        entire period during which such Award or portion thereof had been outstanding.
        Should the Board effect such determination with respect to such Holder, for
        all
        purposes of the Plan, such Holder shall not be treated as if his or her
        employment or Director status had terminated until such time as his or her
        Consultant status shall terminate, in which case his or her Award, as it
        may
        have been reduced in connection with the Holder's becoming a Consultant, shall
        be treated pursuant to the provisions of Section 6.3; provided, however,
        that
        any such Award which is intended to be an Incentive Stock Option shall, upon
        the
        Holder's no longer being an Employee, automatically convert to a Non-Qualified
        Stock Option. Should a Holder's status as a Consultant terminate, if, within
        ninety (90) days of such termination, such Holder shall become an Employee
        or a Director, such Holder's rights with respect to any Award or portion thereof
        granted thereto prior to the date of such termination may be preserved, if
        and
        to the extent determined by the Board in its sole discretion, as if such
        Holder
        had been an Employee or a Director, as applicable, for the entire period
        during
        which such Award or portion thereof had been outstanding, and, should the
        Board
        effect such determination with respect to such Holder, for all purposes of
        the
        Plan, such Holder shall not be treated as if his or her Consultant status
        had
        terminated until such time as his or her employment with the Company or an
        Affiliate, or his or her Director status, as applicable, shall terminate,
        in
        which case his or her Award shall be treated pursuant to the provisions of
        Section 6.2.
Section 6.5
        Termination for Cause.
        Notwithstanding anything in this Article VI or elsewhere in the Plan to the
        contrary, and unless a Holder's Award Agreement specifically provides otherwise,
        should a Holder's employment, Director status or engagement as a Consultant with
        or for the Company or an Affiliate be terminated by the Company or Affiliate
        for
        Cause, all of such Holder's then outstanding Awards shall expire immediately and
        be forfeited in their entirety upon such termination.
ARTICLE
        VII
OPTIONS
Section 7.1
        Option Period. The
        term of each Option shall be as specified in the Option
        Agreement.
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Section 7.2
        Limitations on
        Exercise of Option. An Option shall be exercisable in whole or in such
        installments and at such times as specified in the Option
        Agreement.
Section 7.3
        Option Agreement. Each
        Option shall be evidenced by an Option Agreement in such form and containing
        such provisions not inconsistent with the provisions of the Plan as the Board
        from time to time shall approve, including, but not limited to, provisions
        intended to qualify an Option as an Incentive Stock Option. An Option Agreement
        may provide for the payment of the Option price, in whole or in part, by
        the
        delivery of a number of shares of Common Stock (plus cash if necessary) having
        a
        Fair Market Value equal to such Option price. Each Option Agreement shall,
        solely to the extent inconsistent with the provisions of Sections 6.2, 6.3
        and 6.4, as applicable, specify the effect of termination of employment,
        Director status or Consultant status on the exercisability of the Option.
        Moreover, an Option Agreement may provide for a "cashless exercise" of the
        Option by establishing procedures whereby the Holder, by a properly-executed
        written notice, directs (i) an immediate market sale or margin loan
        respecting all or a part of the shares of Common Stock to which he is entitled
        upon exercise pursuant to an extension of credit by the Company to the Holder
        of
        the Option price, (ii) the delivery of the shares of Common Stock from the
        Company directly to a brokerage firm and (iii) the delivery of the Option
        price from sale or margin loan proceeds from the brokerage firm directly
        to the
        Company. An Option Agreement may also include provisions relating to
        (i) subject to the provisions hereof, accelerated vesting of Options,
        (ii) tax matters (including provisions covering any applicable Employee
        wage withholding requirements and requiring additional "gross-up" payments to
        Holders to meet any excise taxes or other additional income tax liability
        imposed as a result of a payment upon a "change of control" of the Company
        resulting from the operation of the Plan or of such Option Agreement) and
        (iii) any other matters not inconsistent with the terms and provisions of
        the Plan that the Board shall in its sole discretion determine. The terms
        and
        conditions of the respective Option Agreements need not be
        identical.
Section 7.5
        Option Price and
        Payment. The price at which a share of Common Stock may be purchased upon
        exercise of an Option shall be determined by the Board; provided, however,
        that
        such Option price (i) shall not be less than the Fair Market Value of a
        share of Common Stock on the date such Option is granted, and (ii) shall be
        subject to adjustment as provided in Article XIV. The Option or portion
        thereof may be exercised by delivery of an irrevocable notice of exercise
        to the
        Company. The Option price for the Option or portion thereof shall be paid
        in
        full in the manner prescribed by the Board as set forth in the applicable
        Option
        Agreement. Separate stock certificates shall be issued by the Company for
        those
        shares of Common Stock acquired pursuant to the exercise of an Incentive
        Stock
        Option and for those shares of Common Stock acquired pursuant to the exercise
        of
        a Non-Qualified Stock Option.
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Section 7.6
        Stockholder Rights and
        Privileges. The Holder of an Option shall be entitled to all the privileges
        and
        rights of a stockholder of the Company solely with respect to such shares
        of
        Common Stock as have been purchased under the Option and for which certificates
        of stock have been registered in the Holder's name.
ARTICLE
        VIII
RESTRICTED
        STOCK AWARDS
Section 8.1
        Restriction Period to
        be Established by Board. At the time a Restricted Stock Award is made, the
        Board
        shall establish the Restriction Period applicable to such Award. Each Restricted
        Stock Award may have a different Restriction Period, in the discretion of
        the
        Board. The Restriction Period applicable to a particular Restricted Stock
        Award
        shall not be changed except as permitted by Section 8.2.
Section 8.2
        Other Terms and
        Conditions. Common Stock awarded pursuant to a Restricted Stock Award shall
        be
        represented by a stock certificate registered in the name of the Holder of
        such
        Restricted Stock Award. If provided for under the Restricted Stock Award
        Agreement, the Holder shall have the right to vote Common Stock subject thereto
        and to enjoy all other stockholder rights, including the entitlement to receive
        dividends on the Common Stock during the Restriction Period, except that
        (i) the Holder shall not be entitled to delivery of the stock certificate
        until the Restriction Period shall have expired, (ii) the Company shall
        retain custody of the stock certificate during the Restriction Period (with
        a
        stock power endorsed by the Holder in blank), (iii) the Holder may not
        sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the
        Common
        Stock during the Restriction Period and (iv) a breach of the terms and
        conditions established by the Board pursuant to the Restricted Stock Award
        Agreement shall cause a forfeiture of the Restricted Stock Award. At the
        time of
        such Award, the Board may, in its sole discretion, prescribe additional terms
        and conditions or restrictions relating to Restricted Stock Awards, including,
        but not limited to, rules pertaining to the effect of termination of employment,
        Director status or Consultant status prior to expiration of the Restriction
        Period. Such additional terms, conditions or restrictions shall, to the extent
        inconsistent with the provisions of Sections 6.2, 6.3 and 6.4, as
        applicable, be set forth in a Restricted Stock Award Agreement made in
        conjunction with the Award. Such Restricted Stock Award Agreement may also
        include provisions relating to (i) subject to the provisions hereof,
        accelerated vesting of Awards, including but not limited to accelerated vesting
        upon the occurrence of a "change of control" of the Company, (ii) tax
        matters (including provisions covering any applicable Employee wage withholding
        requirements and requiring additional "gross-up" payments to Holders to meet any
        excise taxes or other additional income tax liability imposed as a result
        of a
        payment made in connection with a "change of control" of the Company resulting
        from the operation of
10
the
        Plan
        or of such Restricted Stock Award Agreement) and (iii) any other matters
        not inconsistent with the terms and provisions of the Plan that the Board
        shall
        in its sole discretion determine. The terms and conditions of the respective
        Restricted Stock Agreements need not be identical.
Section 8.3
        Payment for Restricted
        Stock. The Board shall determine the amount and form of any payment from
        a
        Holder for Common Stock received pursuant to a Restricted Stock Award, if
        any,
        provided that in the absence of such a determination, a Holder shall not
        be
        required to make any payment for Common Stock received pursuant to a Restricted
        Stock Award, except to the extent otherwise required by law.
Section 8.4
        Restricted Stock Award
        Agreements. At the time any Award is made under this Article VIII, the
        Company and the Holder shall enter into a Restricted Stock Award Agreement
        setting forth each of the matters contemplated hereby and such other matters
        as
        the Board may determine to be appropriate.
ARTICLE
        IX
UNRESTRICTED
        STOCK AWARDS
Pursuant
        to the terms of the applicable
        Unrestricted Stock Award Agreement, a Holder may be awarded (or sold at a
        discount) shares of Common Stock which are not subject to Restrictions, in
        consideration for past services rendered thereby to the Company or an Affiliate
        or for other valid consideration.
ARTICLE
        X
PERFORMANCE
        SHARE AWARDS
Section 10.1
        Terms and Conditions.
        The Board shall set forth in the applicable Performance Share Award Agreement
        the performance goals and objectives (and the period of time to which such
        goals
        and objectives shall apply) which the Holder and/or the Company would be
        required to satisfy before the Holder would become entitled to the receipt
        of
        shares of Common Stock pursuant to such Holder's Performance Share Award and the
        number of shares of Common Stock subject to such Performance Share
        Award.
Section 10.2
        Stockholder Rights
        and Privileges. The Holder of a Performance Share Award shall have no rights
        as
        a stockholder of the Company until such time, if any, as the Holder actually
        receives shares of Common Stock pursuant to the Performance Share
        Award.
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ARTICLE
        XI
RECAPITALIZATION
        OR REORGANIZATION
Section 11.1
        Adjustments to Common
        Stock. The shares with respect to which Awards may be granted under the Plan
        are
        shares of Common Stock as presently constituted; provided, however, that
        if, and
        whenever, prior to the expiration or distribution to the Holder of an Award
        theretofore granted, the Company shall effect a subdivision or consolidation
        of
        shares of Common Stock or the payment of a stock dividend on Common Stock
        without receipt of consideration by the Company, the number of shares of
        Common
        Stock with respect to which such Award may thereafter be exercised or satisfied,
        as applicable, (i) in the event of an increase in the number of outstanding
        shares, shall be proportionately increased, and the purchase price per share
        shall be proportionately reduced, and (ii) in the event of a reduction in
        the number of outstanding shares, shall be proportionately reduced, and the
        purchase price per share shall be proportionately increased. Notwithstanding
        the
        foregoing, any such adjustment made with respect to an Award which is an
        Incentive Stock Option shall comply with the requirements of Section 424(a)
        of
        the Code, and in no event shall any such adjustment be made which would render
        any Incentive Stock Option granted under the Plan to be other than an "incentive
        stock option" for purposes of Section 422 of the Code.
Section 11.2
        Recapitalization. If
        the Company recapitalizes or otherwise changes its capital structure, thereafter
        upon any exercise or satisfaction, as applicable, of a previously granted
        Award,
        the Holder shall be entitled to receive (or entitled to purchase, if applicable)
        under such Award, in lieu of the number of shares of Common Stock then covered
        by such Award, the number and class of shares of stock and securities to
        which
        the Holder would have been entitled pursuant to the terms of the
        recapitalization if, immediately prior to such recapitalization, the Holder
        had
        been the holder of record of the number of shares of Common Stock then covered
        by such Award.
Section 11.3
        Other Events. In the
        event of changes to the outstanding Common Stock by reason of recapitalization,
        reorganization, mergers, consolidations, combinations, exchanges or other
        relevant changes in capitalization occurring after the date of the grant
        of any
        Award and not otherwise provided for under this Article XI, any outstanding
        Awards and any Award Agreements evidencing such Awards shall be adjusted
        by the
        Board in its discretion as to the number and price of shares of Common Stock
        or
        other consideration subject to such Awards. In the event of any such change
        to
        the outstanding Common Stock, the aggregate number of shares available under
        the
        Plan may be appropriately adjusted by the Board, the determination of which
        shall be conclusive.
Section 11.4
        Powers Not Affected.
        The existence of the Plan and the Awards granted hereunder shall not affect
        in
        any way the right or power of the Board or of the stockholders of the Company
        to
        make or authorize any adjustment, recapitalization, reorganization or other
        change of the Company's capital
12
structure
        or business, any merger or consolidation of the Company, any issue of debt
        or
        equity securities ahead of or affecting Common Stock or the rights thereof,
        the
        dissolution or liquidation of the Company or any sale, lease, exchange or
        other
        disposition of all or any part of its assets or business or any other corporate
        act or proceeding.
Section 11.5
        No Adjustment for
        Certain Awards. Except as hereinabove expressly provided, the issuance by
        the
        Company of shares of stock of any class or securities convertible into shares
        of
        stock of any class, for cash, property, labor or services, upon direct sale,
        upon the exercise of rights or warrants to subscribe therefor or upon conversion
        of shares or obligations of the Company convertible into such shares or other
        securities, and in any case whether or not for fair value, shall not affect
        previously granted Awards, and no adjustment by reason thereof shall be made
        with respect to the number of shares of Common Stock subject to Awards
        theretofore granted or the purchase price per share, if applicable.
ARTICLE
        XII
AMENDMENT
        AND TERMINATION OF PLAN
The
        Board in its discretion may
        terminate the Plan at any time with respect to any shares for which Awards
        have
        not theretofore been granted; provided, however, that the Plan's termination
        shall not materially and adversely impair the rights of a Holder with respect
        to
        any Award theretofore granted without the consent of the Holder. The Board
        shall
        have the right to alter or amend the Plan or any part hereof from time to
        time;
        provided, however, that no change in any Award theretofore granted may be
        made
        which would materially and adversely impair the rights of a Holder with respect
        to such Award without the consent of the Holder (unless such change is required
        in order to cause the benefits under the Plan to qualify as "performance-based"
compensation within the meaning of Section 162(m) of the Code).
ARTICLE
        XIII
MISCELLANEOUS
Section 13.1
        No Right to Award.
        Neither the adoption of the Plan by the Company nor any action of the Board
        shall be deemed to give an Employee, Director or Consultant any right to
        an
        Award except as may be evidenced by an Award Agreement duly executed on behalf
        of the Company, and then solely to the extent and on the terms and conditions
        expressly set forth therein.
Section 13.2
        No Rights Conferred.
        Nothing contained in the Plan shall (i) confer upon any Employee any right
        with respect to continuation of employment with the Company or any Affiliate,
        (ii) interfere in any way with any right of the Company or any Affiliate to
        terminate the employment of an
13
Employee
        at any time, (iii) confer upon any Director any right with respect to
        continuation of such Director's membership on the Board, (iv) interfere in
        any way with any right of the Company or an Affiliate to terminate a Director's
        membership on the Board at any time, (v) confer upon any Consultant any right
        with respect to continuation of his or her consulting engagement with the
        Company or any Affiliate, or (vi) interfere in any way with any right of
        the Company or an Affiliate to terminate a Consultant's consulting engagement
        with the Company or an Affiliate at any time.
Section 13.3
        No Fractional Shares;
        Withholding. No fractional shares of Common Stock shall be delivered, nor
        shall
        any cash in lieu of fractional shares be paid. The Company shall have the
        right
        to deduct in cash (whether under this Plan or otherwise) in connection with
        all
        Awards any taxes required by law to be withheld and to require any payments
        required to enable it to satisfy its withholding obligations. In the case
        of any
        Award satisfied in the form of shares of Common Stock, no shares shall be
        issued
        unless and until arrangements satisfactory to the Company shall have been
        made
        to satisfy any tax withholding obligations applicable with respect to such
        Award. Subject to such terms and conditions as the Board may impose, the
        Company
        shall have the right to retain, or the Board may, subject to such terms and
        conditions as it may establish from time to time, permit Holders to elect
        to
        tender, Common Stock (including Common Stock issuable in respect of an Award)
        to
        satisfy, in whole or in part, the amount required to be withheld.
Section 13.4
        No Restriction on
        Corporate Action. Nothing contained in the Plan shall be construed to prevent
        the Company or any Affiliate from taking any corporate action which is deemed
        by
        the Company or such Affiliate to be appropriate or in its best interest,
        whether
        or not such action would have an adverse effect on the Plan or any Award
        made
        under the Plan. No Employee, Director, Consultant, beneficiary or other person
        shall have any claim against the Company or any Affiliate as a result of
        any
        such action.
Section 13.5
        Beneficiary
        Designations. Each Holder may, from time to time, name a beneficiary or
        beneficiaries (who may be contingent or successive beneficiaries) for purposes
        of receiving any amount which is payable in connection with an Award under
        the
        Plan upon or subsequent to the Holder's death. Each such beneficiary designation
        shall serve to revoke all prior beneficiary designations, be in a form
        prescribed by the Company and be effective solely when filed by the Holder
        in
        writing with the Company during the Holder's lifetime. In the absence of any
        such written beneficiary designation, for purposes of the Plan, a Holder's
        beneficiary shall be the Holder's estate.
Section 13.6
        Other Plans. No
        Award, payment or amount received hereunder shall be taken into account in
        computing an Employee's salary or compensation for the purposes of determining
        any benefits under any pension, retirement, life insurance or other benefit
        plan
        of the Company or any Affiliate, unless such other plan specifically provides
        for the inclusion of such Award, payment or amount received.
14
Section 13.7
        Limits of Liability.
        Any liability of the Company with respect to an Award shall be based solely
        upon
        the contractual obligations created under the Plan and the Award Agreement.
        None
        of the Company, any member of the Board nor any member of the Board shall
        have
        any liability to any party for any action taken or not taken, in good faith,
        in
        connection with or under the Plan.
Section 13.8
        Governing Law. Except
        as otherwise provided herein, the Plan shall be construed in accordance with
        the
        laws of the State of Texas, without regard to principles of conflicts of
        law.
Section 13.9
        Severability of
        Provisions. If any provision of the Plan is held invalid or unenforceable,
        such
        invalidity or unenforceability shall not affect any other provision of the
        Plan,
        and the Plan shall be construed and enforced as if such invalid or unenforceable
        provision had not been included in the Plan.
Section 13.10
        No Funding. The Plan
        shall be unfunded. The Company shall not be required to establish any special
        or
        separate fund or to make any other segregation of funds or assets to ensure
        the
        payment of any Award.
Section 13.11
        Headings. Headings
        used throughout the Plan are for convenience only and shall not be given
        legal
        significance.
Section 13.12
        Terms of Award
        Agreements. Each Award shall be evidenced by an Award Agreement, which Award
        Agreement, if it provides for the issuance of Common Stock, shall require
        the
        Holder to enter into and be bound by the terms of the Company's Stockholders'
Agreement, if any. The terms of the Award Agreements utilized under the Plan
        need not be the same.
15