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| (a)   | Definitions |
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| (i)   | A      "Change of Control" shall be deemed to have occurred if any of the      following occurs with respect to theCompany |
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| (1)   | Any      person or group of persons (within the meaning of the Securities Exchange      Act of 1934) shall have acquired beneficial ownership (within the meaning      of Rule 13D-3 promulgated by the Securities and Exchange Commission under      the Securities Exchange Act of 1934,) of 50% or more of the issued and      outstanding shares of capital stock of the Company having the right to      vote for the election of directors of the Company under ordinary      circumstance; |
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| (2)   | a      merger or consolidation in which the Company is not the surviving      entity; |
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| (3)   | the      sale, exchange, or transfer of all or substantially all of the assets of      the Company; |
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| (4)   | a      liquidation or dissolution of the Company;or |
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| (5)   | a      repayment in full in cash of all obligations of Lehman and Woodside,      including the financing debt which closes as of the date      hereof. |
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| (b)   | Effect      of Change of Control on Shares and Options.  In the event of an      eligible Change of Control, any unissued Shares or Options shall be vested      immediately and issued.  The vesting of the Shares or Options      permissible solely by reason of this Section 8(b) shall be conditioned      upon the consummation of the Change ofControl. |
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| (a)   | Executive      shall be entitled to participate in all Company sponsored retirement      plans, 401(k) plans, life insurance plans, medical insurance plans,      short-term and long-term disability insurance plans, and such other      benefit plans generally available from time to time to executive      management of the Company for which he qualifies under the terms of the      plans.  Executive’s participation in and benefits under any      benefit plan shall be on the terms and subject to the conditions specified      in such plan.  The Company shall supplement the insurance      coverage and benefits in a separate executive benefits plan, including      supplementary health insurance coverage, a minimum of $1 million life      insurance coverage and appropriate long-term disability coverage, to be      fully paid by Company. |
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| (b)   | Executive      will receive at least four (4) weeks of paid vacation per      year. |
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| (c)   | Executive      shall receive a housing and office allowance of Five Thousand Dollars      ($5,000.00) per month. |
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| (d)   | The      Company shall maintain directors’ and officers’ insurance for the benefit      of Executive of the type and with at least the same coverage as the      directors’ and officers’ insurance currently in  effect. |
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| (a)   | Executive’s      employment under this Agreement may be terminated at any time by the Board      of Directors of Company for Cause. |
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| (b)   | Executive’s      employment under this Agreement shall terminate upon expiration of the      Term without extension as described in Section  2. |
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| (c)   | Executive’s      employment under this Agreement shall terminate upon his resignation or      death. |
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| (d)   | Executive’s      employment under this Agreement shall terminate upon written notice by      Company to Executive of a termination due to  Disability. |
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| (e)   | If      Executive’s employment terminates for Cause, Company shall be obligated      only to continue to pay Executive’s base salary and, to the extent earned,      accrued and unpaid, annual incentive bonus and vacation pay, and furnish      the then existing benefits under Section 9 up to the date of termination;      provided, that if Executive’s employment is terminated as a result of      Executive’s Disability, Executive shall remain eligible for benefits under      any long-term disability program of Company, as amended from time to time,      as long as his Disability continues.  Executive shall also be      entitled to reimbursement of allexpenses. |
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| (f)   | If      Executive’s employment is terminated by Company or Board of Directors      other than for Cause (which shall not include termination in connection      with non-renewal pursuant to Section 2), or in the event the Executive      terminates employment for Good Reason, or in the event of a Change in      Control, in addition to the amounts payable under Section 11(e), Executive      shall be entitled to receive (a) a lump sum payment equivalent to one year      of his current base salary and the targeted bonus compensation pursuant      hereto payable for such year and medical and other insurance benefits      under Section 9(a) for a period of twelve (12) months or (b) if there are      more than twelve (12) months remaining in the Term at the time of      termination, payment of current base salary for such period in excess of      twelve (12) months and any targeted bonus compensation (if any) for any      subsequent year during the Term, in each case, payable as and when such      amounts would have been paid in the absence of termination; provided that,      in the event of termination in the event of a Change of Control, the      amounts set forth in this clause (b), if any, shall be paid upon      termination in a lump sum.  Further, if Executive’s employment      is terminated by Company or Board of Directors other than for Cause (but      excluding termination in connection with non-renewal pursuant to Section      2), or in the event the Executive terminates employment for Good Reason,      or in the event of a Change in Control, in addition to the amounts payable      under Section 11(e) and 11(f), Executive shall be entitled to receive any      restricted stock not yet issued at the time of termination, including the      100,000 shares due December 31, 2009, will be issued to Executive, and any      options granted Executive not yet vested will fully      vest.  Further, (a) if Executive’s employment is terminated due      to non-renewal by Company pursuant to Section 2 at the end of the Term      where the Executive has offered to continue Executive’s employment on      substantially similar terms, but Company declines, Executive shall be      entitled to receive a lump sum payment equivalent to nine (9) months of      his current base salary, (b) if Executive’s employment is terminated due      to a non-renewal by Executive pursuant to Section 2 at the end of the Term      where the Company has offered to continue Executive’s employment on      substantially similar terms, but Executive declines, no additional      payments will be made, and (c) in the event of any other non-renewal at      the expiration of the Term, no additional payments will be      made.  As a condition to the salary and benefit continuation      under this Section 11(f), Executive must first execute and deliver to      Company, in a form prepared by Company, a release of all claims against      Company and other appropriate parties, excluding Company’s performance      under this Section 11(f) and of Executive’s vested rights under any      Company sponsored retirement plans, 401(k) plans and stock ownership      plans.  Executive shall also be entitled to reimbursement of all      expenses. |
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| (a)   | “Cause”      shall consist of any of thefollowing: |
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| (i)   | the      Executive is convicted of, or has pleaded guilty or entered a plea of nolo      contendere to, a felony (under the laws of the United States or any state      thereof); |
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| (ii)   | fraudulent      conduct by the Executive in connection with the business or other affairs      of the Company or any related company or the theft, embezzlement, or other      criminal misappropriation of funds by the Executive from the Company or      any related company; |
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| (iii)   | the      Executive’s failure to perform the duties of Chief Executive Officer,      after reasonable notice has been provided of such non-performance and, if      such failure is curable, Executive has not cured such failure within a      reasonable period following such notice;or |
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| (iv)   | the      Executive’s failure to comply with reasonable directives of the Board      which are communicated to him in writing, after reasonable notice has been      provided of such non-performance and, if such failure is curable,      Executive has not cured such failure within a reasonable period following      such notice. |
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| (b)   |  “Disability”      means the inability of Executive, due to injury, illness, disease or      bodily or mental infirmity, to engage in the performance of his material      duties of employment with Company as determined in good faith by Company,      for (i) any period of one hundred twenty (120) consecutive days or (ii) a      period of one hundred eighty days (180) in any continuous twenty-four (24)      month period, provided that interim returns to work of less than ten (10)      consecutive business days in duration shall not be deemed to interfere      with a determination of consecutive absent days if the reason for absence      before and after the interim return are the same.  Benefits to      which Executive is entitled under any disability policy or plan provided      by Company shall reduce the base salary paid to Executive during any      period of Disability on a dollar-for-dollar  basis. |
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| (c)   | “Good      Reason” means (a) any material reduction in the Base Salary or executive      duties and responsibilities of the Executive or (b) any material breach by      the Company of this Agreement that continues without cure for a period of      thirty (30) days after notice of such breach is given by Executive to the      Company. |
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| (a)   | Engage,      own or have any interest in; |
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| (b)   | Manage,      operate, join, participate in, accept employment with, render advice to,      or become interested in or be connectedwith; |
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| (c)   | Furnish      consultation or advice to; or |
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| (d)   | Permit      his name to be used in connectionwith; |
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| (a)   | No      provision of this Agreement may be modified, waived or discharged unless      such waiver, modification or discharge is agreed to in writing and signed      by the Company and Executive.  The waiver or nonenforcement by      the Company of a breach by Executive of any provision of this Agreement      shall not be construed as a waiver of any subsequent breach by      Executive. |
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| (b)   | Any      notice under this Agreement must be in writing and delivered personally or      by overnight courier, sent by facsimile transmission or mailed by      registered or certified mail to the parties at their respective      addresses. |
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| (c)   | This      Agreement shall be governed by the laws of the State of      California. |
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| (d)   | This      Agreement may be executed in counterparts, which together shall constitute      one Agreement. |
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| (e)   | By      their signatures below, the parties acknowledge that they have had      sufficient opportunity to read and consider, and that they have carefully      read and considered, each provision of this Agreement and that they are      voluntarily signing this Agreement. |
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| (f)   | All      notices and other communications under this Agreement shall be in writing      and may be given by personal delivery, registered or certified mail,      postage prepaid, return receipt requested or generally recognized      overnight delivery service.  Notices shall be sent to the      appropriate party at the followingaddresses: |
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| (g)   |  This      Agreement may be executed in counterparts, both of which shall be      considered an original, but both of which together shall constitute the      same instrument. |
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| (h)   | This      Agreement contains the complete statement of all arrangements between the      parties with respect to its subject matter, supersedes all prior      agreements between them with respect to that subject matter, and may not      be changed or terminated orally.  Any amendment or modification      must be in writing and signed by the party to be  charged. |
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