Document:

Exhibit 4.1

                           MOTORSPORTS EMPORIUM, INC.

                       2006 EMPLOYEE STOCK INCENTIVE PLAN

                           AS ADOPTED JANUARY 18, 2006

                           AS AMENDED ON JULY 6, 2006

1. PURPOSE; AMENDMENT

     The purpose of this Plan is to provide  incentives  to attract,  retain and
motivate  eligible  persons  whose  present  and  potential   contributions  are
important  to the  success  of the  Company,  its Parent  and  Subsidiaries,  by
offering them an opportunity to participate in the Company's future  performance
through awards of Options, Restricted Stock and Stock Bonuses. Capitalized terms
not  defined in the text are  defined  in  Section  2. This Plan was  originally
adopted on January 18, 2006 and provided that 150,000,000 shares of common stock
would be reserved and available for grant and issuance.  As of July 5, 2006, the
Plan' shares of common stock had been exhausted and no shares were available for
grant or  issuance.  The  Board of  Directors  voted to amend the Plan to add an
additional  71,687,908  shares to the Plan, so that the total shares  covered by
the Plan is 221,687,908.

2. DEFINITIONS.

     As used in this Plan, the following terms will have the following meanings:

"AWARD" means any award under this Plan, including any Option,  Restricted Stock
or Stock Bonus.

"AWARD  AGREEMENT"  means,  with  respect  to each  Award,  the  signed  written
agreement  between the Company and the  Participant  setting forth the terms and
conditions of the Award.

"BOARD" means the Board of Directors of the Company.

"CAUSE" means any cause,  as defined by applicable law, for the termination of a
Participant's  employment  with the  Company  or a Parent or  Subsidiary  of the
Company.

"CODE" means the Internal Revenue Code of 1986, as amended.

"COMPANY"  means  MotorSports  Emporium,  Inc.,  a  Nevada  corporation,  or any
successor corporation.

"DEBT  OBLIGATION"  means  any  obligation  of  the  Company  to  a  Participant
(including an Insider) for services rendered to the Company.

"DISABILITY"  means a disability,  whether  temporary or  permanent,  partial or
total, as determined by the Board.

"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

"EXCHANGE  PRICE" means the price at which Shares are exchanged  with holders of
Debt Obligations.

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"EXERCISE PRICE" means the price at which a holder of an Option may purchase the
Shares issuable upon exercise of the Option.

"FAIR MARKET VALUE" means, as of any date, the value of a share of the Company's
Common Stock determined as follows:

     (a) if such  Common  Stock  is  publicly  traded  and is then  listed  on a
national securities exchange,  its closing price on the date of determination on
the principal national  securities  exchange on which the Common Stock is listed
or admitted to trading as reported in The Wall Street Journal;

     (b) if such  Common  Stock is quoted on the  NASDAQ  National  Market,  its
closing  price on the NASDAQ  National  Market on the date of  determination  as
reported in The Wall Street Journal;

     (c) if such Common Stock is publicly traded,  but is not listed or admitted
to trading on a  securities  exchange,  the average of the closing bid and asked
prices on the date of determination as reported by Bloomberg, L.P.;

     (d) in the case of an Award made on the Effective Date, the price per share
at which shares of the Company's Common Stock are initially  offered for sale to
the public by the Company's  underwriters  in the initial public offering of the
Company's  Common Stock pursuant to a registration  statement filed with the SEC
under the Securities Act; or

     (e) if none of the foregoing is applicable, by the Board in good faith.

"INSIDER"  means an officer or director of the Company or any other person whose
transactions  in the  Company's  Common  Stock are  subject to Section 16 of the
Exchange Act.

"OPTION" means an award of an option to purchase Shares pursuant to Section 6.

"PARENT" means any corporation  (other than the Company) in an unbroken chain of
corporations ending with the Company if each of such corporations other than the
Company owns stock  possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

"PARTICIPANT" means a person who receives an Award under this Plan.

"PERFORMANCE  FACTORS" means the factors  selected by the Board, in its sole and
absolute discretion,  from among the following measures to determine whether the
performance goals applicable to Awards have been satisfied:

     (a) Net revenue and/or net revenue growth;

     (b)  Earnings before income taxes and  amortization  and/or earnings before
          income taxes and amortization growth;

     (c) Operating income and/or operating income growth;

     (d) Net income and/or net income growth;

     (e)  Earnings per share and/or earnings per share growth;

     (f)  Total stockholder return and/or total stockholder return growth;

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     (g)  Return on equity;

     (h)  Operating cash flow return on income;

     (i)  Adjusted operating cash flow return on income;

     (j)  Economic value added; and

     (k)  Individual confidential business objectives.

"PERFORMANCE PERIOD" means the period of service determined by the Board, not to
exceed  five  years,  during  which  years of  service or  performance  is to be
measured for Restricted Stock Awards or Stock Bonuses.

"PLAN" means this MotorSports Emporium, Inc. 2006 Employee Stock Incentive Plan,
as amended from time to time.

"RESTRICTED STOCK AWARD" means an award of Shares pursuant to Section 7.

"SEC" means the Securities and Exchange Commission.

"SECURITIES ACT" means the Securities Act of 1933, as amended.

"SHARES" means shares of the Company's  Common Stock reserved for issuance under
this  Plan,  as  adjusted  pursuant  to  Sections  3 and 19,  and any  successor
security.

"STOCK BONUS" means an award of Shares,  or cash in lieu of Shares,  pursuant to
Section 8.

"SUBSIDIARY" means any corporation (other than the Company) in an unbroken chain
of  corporations  beginning with the Company if each of the  corporations  other
than the last  corporation  in the unbroken  chain owns stock  possessing 50% or
more of the total  combined  voting  power of all classes of stock in one of the
other corporations in such chain.

"TERMINATION" or "TERMINATED" means, for purposes of this Plan with respect to a
Participant,  that the Participant has for any reason ceased to provide services
as an  employee,  officer,  director,  consultant,  independent  contractor,  or
advisor to the Company or a Parent or  Subsidiary  of the  Company.  An employee
will not be deemed to have  ceased to provide  services  in the case of (i) sick
leave,  (ii) military leave, or (iii) any other leave of absence approved by the
Company,  provided  that  such  leave is for a period  of not more than 90 days,
unless  reemployment upon the expiration of such leave is guaranteed by contract
or statute or unless provided otherwise pursuant to a formal policy adopted from
time to time by the Company and issued and  promulgated to employees in writing.
In the case of any employee on an approved leave of absence,  the Board may make
such  provisions  respecting  suspension  of vesting of the Award while on leave
from the  employ of the  Company  or a  Subsidiary  as it may deem  appropriate,
except that in no event may an Option be exercised  after the  expiration of the
term set forth in the Option  agreement.  The Board will have sole discretion to
determine whether a Participant has ceased to provide services and the effective
date on which the Participant ceased to provide services ("TERMINATION DATE").

"UNVESTED SHARES" means "Unvested Shares" as defined in the Award Agreement.

"VESTED SHARES" means "Vested Shares" as defined in the Award Agreement.

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3. SHARES SUBJECT TO THE PLAN.

     3.1. NUMBER OF SHARES AVAILABLE.  Subject to Sections 3.2 and 19, the total
aggregate  number of  Shares  reserved  and  available  for  grant and  issuance
pursuant  to  this  Plan  will  be  221,687,908  (including  150,000,000  shares
originally  reserved for the Plan and an additional  71,687,908  shares added to
the Plan by this  amendment)  plus Shares that are subject to: (a) issuance upon
exercise  of an Option  but cease to be  subject  to such  Option for any reason
other than exercise of such Option; (b) an Award granted hereunder but forfeited
or repurchased by the Company at the original issue price; and (c) an Award that
otherwise terminates without Shares being issued. At all times the Company shall
reserve and keep available a sufficient number of Shares as shall be required to
satisfy the requirements of all outstanding  Options granted under this Plan and
all other outstanding but unvested Awards granted under this Plan.

     3.2.  ADJUSTMENT  OF SHARES.  In the event  that the number of  outstanding
shares is changed by a stock dividend,  recapitalization,  stock split,  reverse
stock split, subdivision, combination, reclassification or similar change in the
capital structure of the Company without  consideration,  then (a) the number of
Shares  reserved for issuance  under this Plan,  (b) the Exercise  Prices of and
number of Shares  subject to outstanding  Options,  and (c) the number of Shares
subject to other outstanding Awards will be proportionately adjusted, subject to
any  required  action  by the  Board  or the  stockholders  of the  Company  and
compliance with applicable securities laws; provided, however, that fractions of
a Share will not be issued but will either be replaced by a cash  payment  equal
to the Fair  Market  Value of such  fraction of a Share or will be rounded up to
the nearest whole Share, as determined by the Board.

     3.3. LIMITATION ON TOTAL NUMBER OF SHARES ISSUABLE UNDER THE PLAN. In order
to comply with the California Code of Regulations,  the Company will insure that
at no time shall the total  number of Shares  issuable  under this Plan and upon
the exercise of all outstanding  options and the total number of shares provided
for under  this Plan and any other  Company  plan or  agreement  of the  Company
exceed the applicable percentage as calculated in accordance with the conditions
and exclusions of regulation 260.140.45 of Rules of the California  Corporations
Commissioner.

4. ELIGIBILITY.

     ISOs (as  defined  in Section 6 below)  may be  granted  only to  employees
(including officers and directors who are also employees) of the Company or of a
Parent  or  Subsidiary  of the  Company.  All other  Awards  may be  granted  to
employees,  officers,  directors,   consultants,   independent  contractors  and
advisors of the Company or any Parent or  Subsidiary  of the  Company;  provided
such  consultants,  contractors  and advisors  render bona fide  services not in
connection  with  the  offer  and  sale  of  securities  in  a   capital-raising
transaction.

5. ADMINISTRATION.

     5.1. BOARD AUTHORITY.  This Plan will be administered by the Board. Subject
to the general purposes,  terms and conditions of this Plan, the Board will have
full power to implement and carry out this Plan. Without  limitation,  the Board
will have the authority to:

     (a)  construe and interpret  this Plan,  any Award  Agreement and any other
          agreement or document executed pursuant to this Plan;

     (b)  prescribe,  amend and rescind rules and  regulations  relating to this
          Plan or any Award;

     (c)  select persons to receive Awards;

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     (d)  determine the form and terms of Awards;

     (e)  determine  the  number  of Shares or other  consideration  subject  to
          Awards;

     (f)  determine  whether Awards will be granted singly, in combination with,
          in tandem with, in replacement of, or as alternatives to, other Awards
          under this Plan or any other  incentive  or  compensation  plan of the
          Company or any Parent or Subsidiary of the Company;

     (g)  grant waivers of Plan or Award conditions;

     (h)  determine the vesting, ability to exercise and payment of Awards;

     (i)  correct any defect, supply any omission or reconcile any inconsistency
          in this Plan, any Award or any Award Agreement;

     (j)  determine whether an Award has been earned; and

     (k)  make  all  other   determinations   necessary  or  advisable  for  the
          administration of this Plan.

     5.2. BOARD DISCRETION.  Any determination made by the Board with respect to
any  Award  will  be made at the  time of  grant  of the  Award  or,  unless  in
contravention  of any express term of this Plan or Award, at any later time, and
such  determination  will be final and binding on the Company and on all persons
having an interest in any Award under this Plan.  The Board may  delegate to one
or more  officers of the Company the authority to grant an Award under this Plan
to Participants who are not Insiders of the Company.

6. OPTIONS.

     The Board may grant Options to eligible persons and will determine  whether
such  Options  will be Incentive  Stock  Options  within the meaning of the Code
("ISO") or Nonqualified Stock Options ("NQSOS"), the number of Shares subject to
the Option, the Exercise Price of the Option, the period during which the Option
may be exercised,  and all other terms and conditions of the Option,  subject to
the following:

     6.1.  FORM OF OPTION  GRANT.  Each Option  granted  under this Plan will be
evidenced by an Award  Agreement that will  expressly  identify the Option as an
ISO or an NQSO (hereinafter  referred to as the "STOCK OPTION  AGREEMENT"),  and
will be in such form and contain such provisions (which need not be the same for
each  Participant)  as the Board may from time to time  approve,  and which will
comply with and be subject to the terms and conditions of this Plan.

     6.2.  DATE OF  GRANT.  The date of grant of an  Option  will be the date on
which the Board makes the  determination to grant such Option,  unless otherwise
specified by the Board.  The Stock Option Agreement and a copy of this Plan will
be delivered to the  Participant  within a reasonable time after the granting of
the Option.

     6.3. EXERCISE PERIOD.  Options may be exercisable  within the times or upon
the events  determined  by the Board as set forth in the Stock Option  Agreement
governing  such Option;  provided,  however,  that no Option will be exercisable
after the expiration of ten (10) years from the date the Option is granted;  and
provided  further that no ISO granted to a person who directly or by attribution
owns  more than ten  percent  (10%) of the total  combined  voting  power of all
classes of stock of the  Company or of any Parent or  Subsidiary  of the Company
("TEN PERCENT STOCKHOLDER") will be exercisable after the expiration of five (5)

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years from the date the ISO is  granted.  The Board also may provide for Options
to  become  exercisable  at one  time or  from  time to  time,  periodically  or
otherwise,  in such  number  of  Shares  or  percentage  of  Shares as the Board
determines. All Options granted hereunder shall grant the Participants the right
to exercise  their  Options at the rate of at least 20% per year for five years,
subject to the continued employment of the Participant by the Company.

     6.4.  EXERCISE PRICE. The Exercise Price of an Option will be determined by
the Board when the  Option is  granted  and may be not less than 85% of the Fair
Market Value of the Shares on the date of grant; provided that: (a) the Exercise
Price of an ISO  will be not less  than  100% of the  Fair  Market  Value of the
Shares on the date of grant;  and (b) the Exercise Price of any ISO granted to a
Ten Percent  Stockholder  will not be less than 110% of the Fair Market Value of
the Shares on the date of grant. Payment for the Shares purchased may be made in
accordance with Section 9 of this Plan.

     6.5.  METHOD OF EXERCISE.  Options may be exercised only by delivery to the
Company of a written stock option exercise agreement (the "EXERCISE  AGREEMENT")
in a  form  approved  by the  Board,  (which  need  not be  the  same  for  each
Participant),  stating the number of Shares being  purchased,  the  restrictions
imposed on the Shares purchased under such Exercise Agreement,  if any, and such
representations  and agreements  regarding  Participant's  investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable  securities laws, together with payment
in full of the Exercise Price for the number of Shares being purchased.

     6.6.  TERMINATION.  Notwithstanding  the exercise  periods set forth in the
Stock  Option  Agreement,  exercise  of an Option  will always be subject to the
following:

          (a) If the  Participant's  service is Terminated for any reason except
     death or Disability,  then the Participant may exercise such  Participant's
     Options  only to the extent that such Options  would have been  exercisable
     upon  the  Termination  Date no later  than  three  (3)  months  after  the
     Termination  Date(or such shorter or longer time period not exceeding  five
     (5) years as may be determined by the Board, with any exercise beyond three
     (3) months  after the  Termination  Date deemed to be an NQSO),  but in any
     event, no later than the expiration date of the Options.

          (b)  If  the   Participant's   service   is   Terminated   because  of
     Participant's death or Disability (or the Participant dies within three (3)
     months after a Termination other than for Cause or because of Participant's
     Disability), then Participant's Options may be exercised only to the extent
     that  such  Options  would  have been  exercisable  by  Participant  on the
     Termination  Date and must be exercised by  Participant  (or  Participant's
     legal  representative  or  authorized  assignee)  no later than twelve (12)
     months  after the  Termination  Date (or such shorter or longer time period
     not exceeding  five (5) years as may be  determined by the Board,  with any
     such exercise beyond (i) three (3) months after the  Termination  Date when
     the  Termination  is for any reason other than the  Participant's  death or
     Disability,  or (ii) twelve (12) months after the Termination Date when the
     Termination  is for  Participant's  death or  Disability,  deemed  to be an
     NQSO), but in any event no later than the expiration date of the Options.

          (c)  Notwithstanding  the provisions in paragraph  6.6(a) above,  if a
     Participant's service is Terminated for Cause, neither the Participant, the
     Participant's  estate  nor such  other  person who may then hold the Option
     shall be  entitled  to  exercise  any  Option  with  respect  to any Shares
     whatsoever,  after  Termination,  whether  or  not  after  Termination  the
     Participant may receive payment from the Company or Subsidiary for vacation
     pay, for services rendered prior to Termination,  for services rendered for
     the day on which Termination  occurs,  for salary in lieu of notice, or for
     any other benefits. For the purpose of this paragraph, Termination shall be
     deemed to occur on the date when the Company dispatches notice or advice to
     the Participant that his service is Terminated.

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     6.7.  LIMITATIONS ON EXERCISE.  The Board may specify a reasonable  minimum
number of Shares that may be purchased  on any  exercise of an Option,  provided
that such minimum number will not prevent Participant from exercising the Option
for the full number of Shares for which it is then exercisable.

     6.8.  LIMITATIONS ON ISO. The aggregate Fair Market Value (determined as of
the date of grant) of Shares with respect to which ISO are  exercisable  for the
first time by a  Participant  during any calendar year (under this Plan or under
any other  incentive  stock option plan of the Company,  Parent or Subsidiary of
the Company) will not exceed $100,000. If the Fair Market Value of Shares on the
date of grant with respect to which ISO are  exercisable for the first time by a
Participant during any calendar year exceeds $100,000,  then the Options for the
first $100,000 worth of Shares to become  exercisable in such calendar year will
be ISO and the  Options  for the  amount  in  excess  of  $100,000  that  become
exercisable  in that calendar year will be NQSOs.  In the event that the Code or
the regulations  promulgated  thereunder are amended after the Effective Date of
this Plan to provide  for a different  limit on the Fair Market  Value of Shares
permitted  to be  subject to ISO,  such  different  limit will be  automatically
incorporated  herein and will apply to any Options  granted  after the effective
date of such amendment.

     6.9.  MODIFICATION,  EXTENSION OR RENEWAL. The Board may modify,  extend or
renew outstanding Options and authorize the grant of new Options in substitution
therefor,  provided that any such action may not, without the written consent of
a  Participant,  impair  any of  such  Participant's  rights  under  any  Option
previously granted. Any outstanding ISO that is modified,  extended,  renewed or
otherwise altered will be treated in accordance with Section 424(h) of the Code.
The Board may reduce the  Exercise  Price of  outstanding  Options  without  the
consent of Participants affected by a written notice to them; provided, however,
that the Exercise Price may not be reduced below the minimum Exercise Price that
would be  permitted  under  Section 6.4 of this Plan for Options  granted on the
date the action is taken to reduce the Exercise Price.

     6.10.  NO  DISQUALIFICATION.  Notwithstanding  any other  provision in this
Plan,  no term of this Plan  relating  to ISO will be  interpreted,  amended  or
altered,  nor will any  discretion  or  authority  granted  under  this  Plan be
exercised,  so as to  disqualify  this Plan  under  Section  422 of the Code or,
without the consent of the  Participant  affected,  to disqualify  any ISO under
Section 422 of the Code.

7. RESTRICTED STOCK.

     A Restricted  Stock Award is an offer by the Company to sell to an eligible
person Shares that are subject to restrictions. The Board will determine to whom
an offer will be made,  the number of Shares the person may purchase,  the price
to be paid (the "PURCHASE PRICE"),  the restrictions to which the Shares will be
subject,  and all other terms and  conditions  of the  Restricted  Stock  Award,
subject to the following:

     7.1. FORM OF RESTRICTED STOCK AWARD. All purchases under a Restricted Stock
Award made  pursuant to this Plan will be  evidenced  by an Award  Agreement(the
"RESTRICTED STOCK PURCHASE AGREEMENT") that will be in such form (which need not
be the same for each  Participant)  as the Board will from time to time approve,
and will  comply with and be subject to the terms and  conditions  of this Plan.
The offer of Restricted  Stock will be accepted by the  Participant's  execution
and delivery of the Restricted Stock Purchase Agreement and full payment for the
Shares to the Company within thirty (30) days from the date the Restricted Stock
Purchase  Agreement is delivered to the person.  If such person does not execute
and deliver the Restricted Stock Purchase  Agreement along with full payment for
the  Shares  to the  Company  within  thirty  (30)  days,  then the  offer  will
terminate, unless otherwise extended by the Board.

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     7.2.  PURCHASE  PRICE.  The  Purchase  Price of Shares  sold  pursuant to a
Restricted  Stock  Award  will  be  determined  by the  Board  on the  date  the
Restricted Stock Award is granted, except in the case of a sale to a Ten Percent
Stockholder,  in which case the  Purchase  Price will be 100% of the Fair Market
Value.  Payment of the Purchase Price must be made in accordance  with Section 9
of this Plan.

     7.3.  TERMS OF RESTRICTED  STOCK AWARDS.  Restricted  Stock Awards shall be
subject to such restrictions as the Board may impose.  These restrictions may be
based upon completion of a specified number of years of service with the Company
or  upon  completion  of the  performance  goals  as set out in  advance  in the
Participant's  individual Restricted Stock Purchase Agreement.  Restricted Stock
Awards  may  vary  from   Participant  to  Participant  and  between  groups  of
Participants.  Prior to the grant of a Restricted  Stock Award, the Board shall:
(a) determine the nature, length and starting date of any Performance Period for
the Restricted Stock Award; (b) select from among the Performance  Factors to be
used to measure  performance  goals,  if any;  and (c)  determine  the number of
Shares  that may be  awarded  to the  Participant.  Prior to the  payment of any
Restricted  Stock  Award,  the Board  shall  determine  the extent to which such
Restricted  Stock  Award has been  earned.  Performance  Periods may overlap and
Participants  may participate  simultaneously  with respect to Restricted  Stock
Awards  that are subject to  different  Performance  Periods and have  different
performance goals and other criteria.

     7.4.  TERMINATION DURING PERFORMANCE PERIOD. If a Participant is Terminated
during a  Performance  Period  for any  reason,  then such  Participant  will be
entitled to payment  (whether in Shares,  cash or otherwise) with respect to the
Restricted  Stock Award only to the extent earned as of the date of  Termination
in accordance  with the Restricted  Stock Purchase  Agreement,  unless the Board
determines otherwise.

     7.5.  "RESTRICTED  STOCK  MEANS."  "Restricted  Stock" as used in this Plan
means  Shares that are subject to  restrictions  imposed by this Plan and not by
restrictions  required by the Securities Act and, therefore,  "Restricted Stock"
is not intended to be the same as "Restricted  Securities"  under the Securities
Act.

8. STOCK BONUSES.

     8.1.  AWARDS OF STOCK  BONUSES.  A Stock Bonus is an award of Shares (which
may consist of  Restricted  Stock) for  extraordinary  services  rendered to the
Company  or any  Parent or  Subsidiary  of the  Company.  A Stock  Bonus will be
awarded  pursuant to an Award Agreement (the "STOCK BONUS  AGREEMENT") that will
be in such form (which need not be the same for each  Participant)  as the Board
will from time to time approve, and will comply with and be subject to the terms
and conditions of this Plan. A Stock Bonus may be awarded upon  satisfaction  of
such performance goals as are set out in advance in the Participant's individual
Award Agreement (the  "PERFORMANCE  STOCK BONUS AGREEMENT") that will be in such
form  (which need not be the same for each  Participant)  as the Board will from
time to time  approve,  and will  comply  with and be  subject  to the terms and
conditions of this Plan.  Stock Bonuses may vary from Participant to Participant
and between groups of Participants, and may be based upon the achievement of the
Company, Parent or Subsidiary and/or individual performance factors or upon such
other criteria as the Board may determine.

     8.2. TERMS OF STOCK BONUSES.  The Board will determine the number of Shares
to be awarded to the  Participant.  If the Stock Bonus is being  earned upon the
satisfaction  of  performance  goals  pursuant  to  a  Performance  Stock  Bonus
Agreement,  then the Board will:  (a) determine the nature,  length and starting
date of any Performance  Period for each Stock Bonus;  (b) select from among the
Performance  Factors  to be used to measure  the  performance,  if any;  and (c)
determine the number of Shares that may be awarded to the Participant.  Prior to

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the payment of any Stock Bonus,  the Board shall  determine  the extent to which
such Stock  Bonuses  have been  earned.  Performance  Periods  may  overlap  and
Participants may participate  simultaneously  with respect to Stock Bonuses that
are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with
such performance goals and criteria as may be determined by the Board. The Board
may adjust the  performance  goals  applicable to the Stock Bonuses to take into
account changes in law and accounting or tax rules and to make such  adjustments
as  the  Board  deems   necessary  or  appropriate  to  reflect  the  impact  of
extraordinary  or unusual items,  events or  circumstances to avoid windfalls or
hardships.

     8.3.  FORM OF PAYMENT.  The earned  portion of a Stock Bonus may be paid to
the  Participant by the Company either  currently or on a deferred  basis,  with
such  interest  or  dividend  equivalent,  if any,  as the Board may  determine.
Payment  may be made  in the  form of cash  or  whole  Shares  or a  combination
thereof, either in a lump sum payment or in installments,  all as the Board will
determine.

9. PAYMENT FOR SHARE PURCHASES.

     9.1.  PAYMENT.  Payment for Shares  purchased  pursuant to this Plan may be
made in cash (by check) or, where expressly  approved for the Participant by the
Board and where permitted by law:

          (a) by cancellation of indebtedness of the Company to the Participant;

          (b) by  surrender  of  shares  that  either:  (1) have  been  owned by
     Participant  for more  than one year and  have  been  paid for  within  the
     meaning of Rule 144 of the Securities Act of 1933 (and, if such shares were
     purchased from the Company by use of a promissory  note, such note has been
     fully  paid  with  respect  to  such  shares);  or  (2)  were  obtained  by
     Participant in the public market;

          (c) by waiver of  compensation  due or accrued to the  Participant for
     services rendered;

          (d) with  respect only to purchases  upon  exercise of an Option,  and
     provided that a public market for the Company's stock exists:

               (1) through a "same day sale" commitment from the Participant and
          a  broker-dealer  that is a  member  of the  National  Association  of
          Securities   Dealers  (an  "NASD  DEALER")   whereby  the  Participant
          irrevocably elects to exercise the Option and to sell a portion of the
          Shares so  purchased to pay for the  Exercise  Price,  and whereby the
          NASD Dealer irrevocably commits upon receipt of such Shares to forward
          the Exercise Price directly to the Company; or

               (2) through a "margin" commitment from the Participant and a NASD
          Dealer  whereby the  Participant  irrevocably  elects to exercise  the
          Option and to pledge the Shares so  purchased  to the NASD Dealer in a
          margin  account  as  security  for a loan from the NASD  Dealer in the
          amount of the Exercise Price, and whereby the NASD Dealer  irrevocably
          commits  upon  receipt of such  Shares to forward the  Exercise  Price
          directly to the Company; or

          (e) by any combination of the foregoing.

                                       9
<PAGE>
10. WITHHOLDING TAXES.

     10.1.  WITHHOLDING   GENERALLY.   Whenever  Shares  are  to  be  issued  in
satisfaction  of Awards  granted  under this Plan,  the  Company may require the
Participant  to remit to the Company an amount  sufficient  to satisfy  federal,
state  and local  withholding  tax  requirements  prior to the  delivery  of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount  sufficient  to  satisfy  federal,   state,  and  local  withholding  tax
requirements.

     10.2.  STOCK  WITHHOLDING.  When,  under applicable tax laws, a participant
incurs tax  liability  in  connection  with the exercise or vesting of any Award
that is subject to tax  withholding  and the Participant is obligated to pay the
Company the amount required to be withheld,  the Board may allow the Participant
to satisfy  the  minimum  withholding  tax  obligation  by  electing to have the
Company  withhold  from the Shares to be issued that  number of Shares  having a
Fair  Market  Value  equal  to  the  minimum  amount  required  to be  withheld,
determined  on  the  date  that  the  amount  of  tax  to be  withheld  is to be
determined.  All  elections by a  Participant  to have Shares  withheld for this
purpose will be made in  accordance  with the  requirements  established  by the
Board and be in writing in a form acceptable to the Board.

11. PRIVILEGES OF STOCK OWNERSHIP.

     11.1. VOTING AND DIVIDENDS. No Participant will have any of the rights of a
stockholder  with  respect  to any  Shares  until the  Shares  are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a stockholder and will have all the rights of a stockholder with respect to such
Shares,  including  the  right  to vote  and  receive  all  dividends  or  other
distributions made or paid with respect to such Shares;  provided,  that if such
Shares are Restricted  Stock, then any new,  additional or different  securities
the  Participant  may become  entitled to receive with respect to such Shares by
virtue of a stock dividend,  stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided,  further, that the Participant will have no right to
retain such stock dividends or stock  distributions  with respect to Shares that
are repurchased at the  Participant's  Purchase Price or Exercise Price pursuant
to Section 12.

     11.2. FINANCIAL STATEMENTS.  Pursuant to regulation 260.140.46 of the Rules
of the California Corporations Commissioner,  the Company will provide financial
statements to each Participant  prior to such  Participant's  purchase of Shares
under this  Plan,  and to each  Participant  annually  during  the  period  such
Participant has Awards outstanding;  provided,  however, the Company will not be
required to provide such financial  statements to Participants whose services in
connection with the Company assure them access to equivalent information.

12. TRANSFERABILITY.

     Awards  granted  under this Plan,  and any  interest  therein,  will not be
transferable  or  assignable  by  Participant,  and may not be made  subject  to
execution,  attachment or similar process,  other than by will or by the laws of
descent and  distribution.  During the lifetime of the Participant an Award will
be exercisable only by the Participant.  During the lifetime of the Participant,
any  elections  with  respect  to an Award may be made  only by the  Participant
unless  otherwise  determined by the Board and set forth in the Award  Agreement
with respect to Awards that are not ISOs.

13. RESTRICTIONS ON SHARES.

     At the  discretion  of the Board,  the Company may reserve to itself and/or
its assignee(s) in the Award Agreement a right to repurchase a portion of or all
Unvested Shares held by a Participant  following such Participant's  Termination
at any time  within  ninety  (90)  days  after  the  later of (a)  Participant's

                                       10
<PAGE>
Termination Date, or (b) the date Participant  purchases Shares under this Plan.
Such repurchase by the Company shall be for cash and/or cancellation of purchase
money indebtedness,  and the price per share shall be the Participant's Exercise
Price or the Purchase Price, as applicable; provided that the Company's right to
repurchase  at the  original  Purchase  Price  shall lapse at the rate of 20% of
Unvested  Shares per year over five years from the date the Options were granted
(without respect to the date the Options were exercised or became exercisable).

14. CERTIFICATES.

     All certificates  for Shares or other securities  delivered under this Plan
will be subject to such stock transfer orders, legends and other restrictions as
the Board may deem  necessary or  advisable,  including  restrictions  under any
applicable federal,  state or foreign securities law, or any rules,  regulations
and other  requirements of the SEC or any stock exchange or automated  quotation
system upon which the Shares may be listed or quoted.

15. ESCROW; PLEDGE OF SHARES.

     To  enforce  any  restrictions  on a  Participant's  Shares,  the Board may
require  the  Participant  to  deposit  all  certificates  representing  Shares,
together  with stock  powers or other  instruments  of transfer  approved by the
Board  appropriately  endorsed in blank, with the Company or an agent designated
by the  Company  to hold in  escrow  until  such  restrictions  have  lapsed  or
terminated,  and the  Board  may  cause a legend  or  legends  referencing  such
restrictions to be placed on the certificates.  Any Participant who is permitted
to execute a promissory note as partial or full  consideration  for the purchase
of Shares  under  this Plan will be  required  to pledge  and  deposit  with the
Company  all or part of the  Shares so  purchased  as  collateral  to secure the
payment of  Participant's  obligation to the Company under the promissory  note;
provided,  however,  that the Board may  require or accept  other or  additional
forms of collateral to secure the payment of such  obligation and, in any event,
the Company will have full recourse against the Participant under the promissory
note notwithstanding any pledge of the Participant's Shares or other collateral.
In  connection  with any pledge of the Shares,  Participant  will be required to
execute and deliver a written  pledge  agreement  in such form as the Board will
from time to time approve.  The Shares purchased with the promissory note may be
released from the pledge on a pro rata basis as the promissory note is paid.

16. EXCHANGE AND BUYOUT OF AWARDS.

     The Board may,  at any time or from time to time,  authorize  the  Company,
with the consent of the respective Participants, to issue new Awards in exchange
for the surrender and cancellation of any or all outstanding  Awards.  The Board
may at any time buy from a Participant an Award previously  granted with payment
in cash, Shares (including  Restricted Stock) or other  consideration,  based on
such terms and conditions as the Board and the Participant may agree.

17. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.

     An Award will not be effective  unless such Award is in compliance with all
applicable  federal and state  securities  laws,  rules and  regulations  of any
governmental  body,  and the  requirements  of any stock  exchange or  automated
quotation system upon which the Shares may then be listed or quoted, as they are
in effect on the date of grant of the Award and also on the date of  exercise or
other  issuance.  Notwithstanding  any other provision in this Plan, the Company
will have no obligation to issue or deliver  certificates  for Shares under this
Plan prior to: (a) obtaining any approvals from  governmental  agencies that the
Company  determines  are  necessary or advisable;  and/or (b)  completion of any
registration  or other  qualification  of such Shares under any state or federal
law or  ruling  of any  governmental  body  that the  Company  determines  to be
necessary or advisable.  The Company will be under no obligation to register the

                                       11
<PAGE>
Shares with the SEC or to effect compliance with the registration, qualification
or  listing  requirements  of any  state  securities  laws,  stock  exchange  or
automated  quotation  system,  and the Company  will have no  liability  for any
inability or failure to do so.

18. NO OBLIGATION TO EMPLOY.

     Nothing in this Plan or any Award granted under this Plan will confer or be
deemed to confer on any  Participant  any right to continue in the employ of, or
to continue any other relationship with, the Company or any Parent or Subsidiary
of the  Company  or limit in any way the right of the  Company  or any Parent or
Subsidiary  of the  Company  to  terminate  Participant's  employment  or  other
relationship at any time, with or without cause.

19. CORPORATE TRANSACTIONS.

     19.1. ASSUMPTION OR REPLACEMENT OF AWARDS BY SUCCESSOR. In the event of (a)
a dissolution or liquidation of the Company,  (b) a merger or  consolidation  in
which the  Company  is not the  surviving  corporation  (other  than a merger or
consolidation with a wholly-owned  subsidiary,  a reincorporation of the Company
in a  different  jurisdiction,  or  other  transaction  in  which  there  is  no
substantial  change in the  stockholders  of the Company or their relative stock
holdings  and the Awards  granted  under  this Plan are  assumed,  converted  or
replaced by the successor  corporation,  which assumption will be binding on all
Participants),  (c) a merger in which the Company is the  surviving  corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any  stockholder  that  merges,  or which owns or  controls  another
corporation  that merges,  with the Company in such  merger)  cease to own their
shares or other equity  interest in the Company,  (d) the sale of  substantially
all of the assets of the Company,  or (e) the acquisition,  sale, or transfer of
more than 50% of the  outstanding  shares  of the  Company  by  tender  offer or
similar transaction,  any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption,  conversion or
replacement  will  be  binding  on all  Participants.  In the  alternative,  the
successor  corporation may substitute equivalent Awards or provide substantially
similar  consideration  to Participants  as was provided to stockholders  (after
taking into  account the  existing  provisions  of the  Awards).  The  successor
corporation may also issue,  in place of outstanding  Shares of the Company held
by the  Participant,  substantially  similar shares or other property subject to
repurchase restrictions no less favorable to the Participant.  In the event such
successor  corporation  (if any)  refuses  to assume or  substitute  Awards,  as
provided above,  pursuant to a transaction  described in this  Subsection  19.1,
such Awards will expire on such  transaction at such time and on such conditions
as the  Board  will  determine.  Notwithstanding  anything  in this  Plan to the
contrary,  the Board may provide  that the vesting of any or all Awards  granted
pursuant  to this Plan will  accelerate  upon a  transaction  described  in this
Section 19. If the Board exercises such discretion with respect to Options, such
Options will become  exercisable in full prior to the consummation of such event
at such time and on such conditions as the Board determines, and if such Options
are not exercised prior to the consummation of the corporate  transaction,  they
shall terminate at such time as determined by the Board.

     19.2.  OTHER TREATMENT OF AWARDS.  Subject to any greater rights granted to
Participants under the foregoing  provisions of this Section 19, in the event of
the occurrence of any  transaction  described in Section 19.1,  any  outstanding
Awards  will be treated  as  provided  in the  applicable  agreement  or plan of
merger, consolidation, dissolution, liquidation, or sale of assets.

     19.3.  ASSUMPTION OF AWARDS BY THE COMPANY. The Company, from time to time,
also may substitute or assume  outstanding  awards  granted by another  company,
whether in connection with an acquisition of such other company or otherwise, by
either:  (a)  granting  an Award under this Plan in  substitution  of such other
company's award; or (b) assuming such award as if it had been granted under this
Plan if the terms of such  assumed  award  could be applied to an Award  granted

                                       12
<PAGE>
under this Plan.  Such  substitution  or assumption  will be  permissible if the
holder of the  substituted  or  assumed  award  would have been  eligible  to be
granted an Award  under this Plan if the other  company had applied the rules of
this Plan to such grant.  In the event the Company  assumes an award  granted by
another   company,   the  terms  and   conditions  of  such  award  will  remain
unchanged(except  that the  exercise  price and the  number and nature of Shares
issuable  upon  exercise  of any  such  option  will be  adjusted  appropriately
pursuant  to Section  424(a) of the Code).  In the event the  Company  elects to
grant a new Option rather than assuming an existing option,  such new Option may
be granted with a similarly adjusted Exercise Price.

20. ADOPTION AND STOCKHOLDER APPROVAL.

     This amended Plan will become  effective on the date on which it is adopted
by the Board  ("EFFECTIVE  DATE").  This  amended  Plan shall be approved by the
stockholders  of the Company  within twelve (12) months before or after the date
this amended Plan is adopted by the Board.  Upon the Effective  Date,  the Board
may grant Awards  pursuant to this amended Plan.  In the event that  stockholder
approval of this amended Plan is not  obtained  within the time period  provided
herein,  all Awards  granted  hereunder  shall be  cancelled,  any Shares issued
pursuant to any Awards  shall be  cancelled  and any  purchase of Shares  issued
hereunder shall be rescinded.

21. TERM OF PLAN/GOVERNING LAW.

     Unless earlier terminated as provided herein,  this Plan will terminate ten
(10) years from the date this Plan is adopted by the Board or, if  earlier,  the
date of stockholder  approval.  This Plan and all agreements thereunder shall be
governed by and construed in accordance with the laws of the State of Nevada.

22. AMENDMENT OR TERMINATION OF PLAN.

     The  Board may at any time  terminate  or amend  this Plan in any  respect,
including  without  limitation  amendment  of any  form of  Award  Agreement  or
instrument to be executed  pursuant to this Plan;  provided,  however,  that the
Board will not, without the approval of the  stockholders of the Company,  amend
this Plan in any manner that requires such stockholder approval.

23. NONEXCLUSIVITY OF THE PLAN.

     Neither the adoption of this Plan by the Board, the submission of this Plan
to the stockholders of the Company for approval,  nor any provision of this Plan
will be construed as creating any limitations on the power of the Board to adopt
such additional compensation  arrangements as it may deem desirable,  including,
without  limitation,  the granting of stock options and bonuses  otherwise  than
under this Plan, and such  arrangements  may be either  generally  applicable or
applicable only in specific cases.

24. ACTION BY BOARD.

     Any action  permitted  or required to be taken by the Board or any decision
or determination  permitted or required to be made by the Board pursuant to this
Plan shall be taken or made in the Board's sole and absolute discretion.

                                       13Exhibit 4C

COPY

Centerra Gold

September 12, 2005

Mr. Tim Searcy

President

Luna Gold Corp.

475 West Georgia Street

Suite 920

Vancouver, B.C. V6B 4M9  Canada

Re:

Letter of Intent, LS Claim Group, Lander County, Nevada

Dear Mr. Searcy:

This binding Letter of Intent will confirm our mutual intention to negotiate an Exploration Option Agreement (the “Agreement”) between Centerra (U.S.) Inc., a Nevada corporation (“Centerra”), and Luna Gold Corp., a Wyoming corporation (“Luna”), affecting the LS claim group situated in Lander County, Nevada (the “Property”, as more particularly defined in Paragraph 1 below).  Pursuant to the Agreement, Centerra can acquire up to an undivided 60% interest in the Property and in a Joint Venture with Luna and can subsequently acquire up to an undivided additional 15% in the Property and in the Joint Venture with Luna.

1.  Property Description.  The Property consists, in part, of Luna’s leasehold interest in the 99 LS lode mining claims more particularly described in the attached Exhibit A from the “Lease” described below.  The 99 LS claims are situated in Sections 14, 15, 16, 21, 22, 23, 26, 27, and 28, T. 28 N., R. 44 E., MDB&M, Lander County, Nevada.  The mining claims are subject to a just-completed Mining Lease with Option to Purchase (the “Lease”) dated effective March 1, 2004, between Arthur R. Leger, a married man (“Leger”), as Owner, and Luna Gold Corp., a Wyoming corporation, as Lessee.  The Lease replaces a Letter Agreement, also dated effective March 1, 2004, between Arthur R. Leger as Optionor, and Luna Gold Corp. as Optionee.  The Property also consists of Luna’s leasehold interest in certain additional claims currently being staked, or which may be staked in the future, by Luna, Leger, or Centerra in an area of interest more particularly described in the attached Exhibit B from the Lease (the “Area of Interest”), and which are subject to the Lease.  The Property described in this Letter of Intent, as well as in the Lease, specifically excludes 24 RRC claims currently owned by Centerra within the Area of Interest which are more particularly described in the attached Exhibit C from the Lease.  Centerra will pay for or reimburse one of the other parties for the new claim filing fees for claims not listed in Exhibit A which become part of the Property.

 

2.  Exclusive License to Negotiate Agreement, Examine Title, and Operate Project.  Luna hereby grants Centerra an exclusive license to negotiate the Agreement commencing on execution of this Letter of Intent and terminating on January 15, 2006, or on any other mutually agreed date, unless this Letter of Intent is extended as described in section 4(a) below.  Centerra

2

Mr. Tim Searey

September 12, 2005

 shall pay Luna the sum of TWELVE THOUSAND FIVE HUNDRED DOLLARS ($12,500.00) upon execution of this Letter of Intent which is intended as approximate reimbursement for claim maintenance fees paid by Luna to the United States in August 2005 for the 2005-2006 assessment year.  During the license period Centerra shall have the sole, exclusive, and immediate right to enter upon and explore, including exploration trenching or drilling, but not to develop, the Property and to have quiet and exclusive possession of the Property.  During the license period Luna shall not deal or attempt to deal with its right, title, and interest in the Property in any way that would preclude negotiation and execution of the Agreement.  In conducting its work on the Property, Centerra shall keep the Property free of all liens and encumbrances, and shall defend, indemnify, and hold Luna harmless from all claims, demands, and liabilities arising from Centerra’s activities on the Property.  Centerra shall conduct an examination of the title to the Property which may include a claim survey and/or preparation of a title opinion satisfactory to Centerra.  Luna shall provide Centerra with copies of all title-related and technical information related to the Property in its possession, including but not limited to assays and analyses, maps, reports, and drill data.

3.  The Agreement.  The Agreement will consist of an Exploration Option to enter into a Joint Venture with the following provisions, among others:

a.  The option period will consist of a maximum of six Agreement Years.  The anniversary date for each Agreement Year is March 1, such that Agreement Year 1 extends from the date of execution of this Letter of Intent through February 28, 2006, and each subsequent Agreement Year extends from March 1 to the last day of February of the following calendar year.  In order to earn an undivided 60% interest in a Joint Venture and in the Property, Centerra must expend a total of ONE MILLION NINE HUNDRED THOUSAND DOLLARS ($1,900,000.00), as follows:

Agreement Year     Ending Feb. 28 or 29

Minimum Expenditure

1

2006

$100,000

2

2007

$150,000

3

2008

$250,000

4

2009

$400,000

5

2010

$500,000

6

2011

$500,000

Any expenditures which exceed the minimum amount shall be credited toward subsequent expenditures.  Minimum expenditures shall not include advance royalty payments to Leger according to the Lease, but shall include all other land-related, exploration, development, and reclamation costs including the $12.500.00 payment to Luna described in Paragraph 2 above.  Allowable expenses also include Centerra’s 10% administration-overhead fee.  The fee will not be assessed against the advance royalty payments but will be assessed against all other land-related, exploration, and development costs.  In no case shall the Minimum Expenditure be insufficient to meet the Work Commitment obligations of Luna to Leger under the Lease, to which purpose FIFTY THOUSAND DOLLARS ($50,000.00) of the Agreement Year 1 expenditure represents an obligation of Centerra, even if this Letter of Intent is terminated before the end of Agreement Year 1.  Upon a total expenditure of $1.9 million by Centerra, a Joint

3

Mr. Tim Searey

September 12, 2005

 Venture will be formed.  The parties will diligently pursue completion of a Joint Venture agreement based upon the model form of venture agreement contained in Form 5A of the Rocky Mountain Mineral Law Foundation, together with such modifications and additions as may reasonably be required to reflect the terms and conditions of the Agreement.  Luna will execute a Quitclaim Deed in recordable form evidencing transfer of 60% of its interest in the Property to Centerra.  Deemed expenditures upon formation of the Joint Venture will be $1,900,000 by Centerra and $1,266,667 by Luna.

b.  For a period of 90 days after formation of a Joint Venture, Centerra will have a one-time option (the “Secondary Option”) to elect to earn an additional undivided 15% interest in the Property and in the Joint Venture.  If Centerra exercises the Secondary Option, in order to earn the additional 15% interest Centerra must expend an additional THREE MILLION ONE HUNDRED THOUSAND DOLLARS ($3,100,000.00) as follows:

Option Year

Minimum Expenditure

1

$750,000

2

$750,000

3

$750,000

4

$850,000

The anniversary date for each Option Year will be the month and day of formation of the Joint Venture.  Any expenditures which exceed the minimum amount shall be credited toward subsequent expenditures.  Allowable expenditures include the same items listed for the initial option period described in paragraph 3(a) above.  Upon completion of the Secondary Option, deemed expenditures will be $5,000,000 by Centerra and $1,666,667 by Luna.  If Centerra exercises the Secondary Option and does not complete the earn-in according to the minimum schedule, Centerra’s interest in the Property and in the Joint Venture reverts to 60%, the option expires, and deemed expenditures return to the amounts identified in section 3(a) above ($1,900,000 by Centerra and $1,266,667 by Luna).

c.  After formation of a Joint Venture and, if Centerra so elects, after completion of Centerra’s Secondary Option earn-in described in paragraph 3b above, or after reversion of Centerra’s interest to 60% if Centerra elects the Second Option and fails to complete the earn-in, both parties will contribute their pro rata share of funding for expenditures with respect to the Property.  Any party electing to contribute to a given work program and budget is obligated to contribute its share of funding during the course of that work program.  Deemed expenditures will be increased according to actual expenditures.  If either party elects not to contribute to any given budget, standard dilution provisions will apply based on deemed expenditures to that date until the non-contributing party’s interest drops to 10%, at which time there will be an automatic conversion of that party’s working interest to a 5% net profits interest (“NPI”).  A non-contributing party may elect to resume contributing only on an annual basis upon adoption of a new work program and budget, and may not resume contributing after its interest has dropped to 10% and converted to the 5% NPI.

d.  Centerra shall manage the project during the terms of the Agreement and this Letter of Intent and shall have the exclusive right to determine work plans and budgets.  After

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Mr. Tim Searey

September 12, 2005

formation of a Joint Venture, Centerra shall be appointed as the initial Manager of the Joint Venture (the “Manager”) and, if Centerra elects to exercise the Secondary Option, Centerra will remain as the Manager during the term of the Secondary Option earn-in.  After completion of the Secondary Option earn-in, or after reversion of Centerra’s interest to 60% as described in section 3(b) above, or after formation of the Joint Venture if Centerra elects not to exercise the Secondary Option, the Manager will be elected by majority interest of the parties according to percentage interest in the Joint Venture, with the exception that, if one party elects not to contribute to expenditures, the contributing party will be the Manager.  The Manager shall be in charge of all day-to-day operations affecting exploration, development, and mining of the Property and shall prepare suitable work plans and budgets prior to the beginning of each year’s activities and submit them to a Management Committee consisting of one representative each from Centerra and Luna.  In the event that Centerra and Luna are unable to agree on a work plan and budget, the program will be determined by majority interest of the parties according to percentage interest in the Joint Venture, with the exception that, if one party elects not to contribute to expenditures, the contributing party will determine the work plan and budget.

e.  Each party shall have full access on a timely basis to information derived from operations conducted on the Property.  On or before April 1 of each year Centerra shall provide Luna with a report in reasonable detail on its activities conducted on the Property during the year, on the basis of either the Agreement Year or the calendar year.  Within sixty days after termination of the Agreement or this Letter of Intent, and annually within sixty days after completion of a work program, if so requested by Luna, Centerra shall provide Luna with copies of all relevant project data.  All information shall be confidential and shall be disclosed only (1) as required pursuant to applicable securities laws or stock exchange rules, or (2) by mutual consent of the parties.  Any press releases and other public announcements prepared by one party will be provided to the other party for review and comment in advance.  Neither party shall issue any release or announcement that includes the name of the other party without written consent of the other party, which consent shall not be unreasonably withheld.  Copies of press releases and announcements in final form will also be provided to the non-releasing party.

f.  Either party may assign or otherwise transfer its interest in the Agreement to a wholly-owned subsidiary or affiliate controlled by the assigning party.  Either party may pledge its interest in the Agreement for the purpose of securing a loan, line of credit, or other financial arrangement used to finance development of the property for mining.  If either party wishes to assign or otherwise transfer its interest or a portion of its interest in the Agreement to a non-related party, it shall grant to the other party a right of first refusal to acquire the interest on the same terms as offered by the non-related party, with a 60-day period in which to consider the proposal.  In the case of a proposed assignment agreement consisting wholly or in part of non-cash considerations, the non-assigning party may choose to acquire the assigning party’s interest for payment of the cash component plus the cash equivalent of the non-cash considerations.

g.  Centerra may terminate the Agreement and this Letter of Intent at any time by providing written notice to Luna.  If such termination is after January 15 of any calendar year, Centerra shall be obligated to pay the Advance Royalty payment to Leger under the Lease on or before the next anniversary date of the lease (March 1), and to comply with the work commitment schedule of the Lease such that the Lease remains in good standing on the same

5

Mr. Tim Searey

September 12, 2005

anniversary date.  If such termination is after July 1 of any calendar year, Centerra shall be obligated to pay the claim maintenance fees to the United States on or before the following August 31 and recording fees to Lander County for the Affidavit of Intent to Hold the following October 31, for the then-active claims.  If the federal government reinstates an assessment work requirement, and if such termination is after July 1 of any calendar year, Centerra shall be obligated to carry out assessment work by the end of that assessment year and timely record a document evidencing such work.  From time to time during the terms of the Agreement and this Letter of Intent, Centerra may elect to drop certain claims from the Agreement but not terminate the Agreement itself (a “partial termination”).  Such claims will be returned to Leger according to terms of the Lease including, if such partial termination is after July 1 of any calendar year, the obligation to pay the claim maintenance fees on or before the following August 31 and recording fees to Lander County for the Affidavit of Intent to Hold the following October 31, or to complete sufficient assessment work to satisfy regulatory or legislative requirements for the current assessment year.  After formation of a Joint Venture, the Manager may similarly elect to drop certain claims from the Venture; such claims will be returned to Leger according to terms of the lease.  If Centerra commits a default in the performance of any duty or obligation of the Agreement, Luna may terminate the Agreement thirty days after giving Centerra written notice of default unless Centerra pays any amounts due with interest as necessary, or uses its best efforts to diligently pursue curing the default, or gives Luna an unequivocal written undertaking to use its best efforts to cure the default.

h.  Reclamation of disturbance and other permit-related liabilities deriving from Centerra’s work programs during the term of the Agreement and this Letter of Intent are Centerra’s responsibility and shall survive termination of the Agreement or this Letter of Intent.  After termination of the Agreement or this Letter of Intent, Centerra shall diligently pursue by best efforts reclamation of its activities on the Property.  After formation of a Joint Venture, the Joint Venture will be responsible for reclamation of all disturbance including that conducted by Centerra during the term of the Agreement and this Letter of Intent and any other prior disturbance, which responsibility shall survive termination of the Joint Venture.

i.  Centerra and Luna shall execute a short form of the Agreement in recordable form so as to give constructive notice to third parties of its terms.

j.  The Agreement shall contain a force majeure clause.  Force majeure shall be defined to include, among other items, inability to obtain licenses or permits; inability to obtain workmen, material, or proper equipment; delay in transportation; and severe weather.

k.  The Agreement shall be governed by the laws of the State of Nevada.

l.  The final Agreement shall be subject to regulatory approval.

4.  Other Provisions.

a.  The parties agree to act diligently and in good faith to negotiate and execute the Agreement by January 15, 2006, or by any other mutually agreed date pursuant to section 2 above.  If, despite diligent and good faith efforts by both parties, the parties are unable to

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Mr. Tim Searey

September 12, 2005

negotiate and execute the Agreement by the agreed-upon date, this Letter of Intent shall terminate, except that Centerra shall have an exclusive option to extend the term of this Letter of Intent as long as necessary to continue negotiating the Agreement or to complete the expenditure schedule and form a Joint Venture.

b.  This Letter of Intent may be executed in counterparts by original or facsimile signature, and each such counterpart when taken together shall constitute one and the same Letter of Intent.

c.  This Letter of Intent may only be amended or modified by written instrument executed by Centerra and Luna.

d.  This Letter of Intent reflects the entire agreement between the parties.

If this Letter of Intent provides an acceptable basis to proceed with the more definitive negotiations and initial exploration of the Property as provided for herein, please indicate your acceptance by signing in the space provided below and returning a copy by mail or by facsimile to (775) 829-8877.  Upon your acceptance, Centerra will prepare a draft Option Agreement for your review.  Finalization of the Agreement is subject to the approval of the Board of Directors of Luna and the President and/or the Board of Directors of Centerra.

Sincerely yours,

CENTERRA (U.S.) INC.

/s/

Gaylord Cleveland

Regional Exploration Manager, Nevada

ACCEPTED BY:

LUNA GOLD CORP.

/s/

Tim Searcy, President

Date:  14/09/2005

cc:  C. Hering, R. Chapman

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