A. On December 13, 2005, the Board of Directors of Hudson Technologies, Inc. (the "Registrant") approved the acceleration of the vesting of certain unvested options awarded under the Registrant's 1997 Stock Option Plan (the "Plan") on September 30, 2005 to the following individuals, effective December 14, 2005: James R. Buscemi, Brian F. Coleman, Charles F. Harkins, Stephen P. Mandracchia and Kevin J. Zugibe (collectively, the "Executive Officers"), as well as to two other key employees of the Registrant. As a result of this action, the following options to purchase 65,625 shares of the Company's common stock that were granted under the Plan on September 30, 2005, will vest in full effective December 14, 2005:

The closing market price of the Company's common stock on December 14, 2005 was $2.01. Since the exercise price of the options subject to acceleration is below the closing market price as of the effective date of the acceleration, the options subject to acceleration had no economic value to the holders on the date of acceleration, and the Company has incurred no stock based compensation expense as a result of the acceleration of these options.

The purpose of accelerating the vesting of these outstanding previously unvested options is to enable the Company to avoid recognizing stock based compensation expense associated with these options in future periods after the Company adopts Statement of Financial Accounting Standard No. 123 (revised 2004), "Share-Based Payment" ("SFAS 123(R)"), in January 2006.

B. On December 15, 2005, the Registrant entered into a Lease Termination Agreement (the Agreement) with Ramapo Land Co., Inc. ("Ramapo Land") pursuant to which the Registrant paid Ramapo Land $70,451.63 for legal and consulting fees incurred by Ramapo Land as a result of the April 1, 1999 release (the "1999 Release") at the Registrants facility located at Hillburn, New York (the "Hillburn facility") of approximately 7,800 lbs. of R-11 refrigerant, and Ramapo Land agreed to release the Registrant "from any claims and causes of action which it has or may have including, without limitation, any claim for a reduction in the value" of the Hillburn facility.

On December 15, 2005, the Registrant entered into a Stipulation of Discontinuance (the "Stipulation") with Ramapo Land by which Ramapo Land agreed to dismiss with prejudice all claims asserted by Ramapo Land in the action commenced by Ramapo Land against the Registrant in the Supreme Court of the State of New York, Rockland County, which action was commenced in July 2005.

The execution of the Agreement and the Stipulation resolves all claims of Ramapo Land arising out of the 1999 Release, and which were disclosed and discussed in the Legal Proceedings Section in Part II, Item 1 of the Registrant's Form QSB for the three and nine months ended September 30, 2005. For further information on the 1999 Release, refer to the Legal Proceedings Section in Part I, Item 3 of the Company's Form 10-KSB for the year ended December 31, 2004.