Document:

Exhibit
      10.4

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      AGREEMENT is made this 15th
      day of
      May, 2006, by, Disaster
      Preparedness Systems, Inc.,
      a Nevada
      corporation (“Company” or “Employer”) and Bill
      Majcher (“Employee”).

    

    R
      e c i t a l s:

    

    A. Company
      believes that Employee is a key employee and that it is in the Company’s best
      interests to obtain the services of Employee for the period of this
      Agreement.

     

    B. Employee
      desires to accept said employment and enter into this Agreement.

    

    A
      g r e e m e n t s:

    

    In
      consideration of the premises, the mutual covenants and agreements contained
      herein and other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereto agree as follows:

    

    1.Employment.
      Company
      hereby employs Employee, and Employee accepts such employment and agrees to
      perform services for Company, upon the terms and conditions set forth in this
      Agreement.

    

    2. Term.
      Company
      hereby agrees to employ Employee for a term commencing on May 15th 2006 and
      continuing through the Initial Public Offering hereof (the “Initial Term”),
      unless earlier terminated as hereinafter provided. At the end of the Initial
      Term and sixty (60) days prior to the end of each successive one-year term
      thereafter (the “Extended Terms”), the base salary will be negotiated unless
      terminated as otherwise provided herein, the term of this Agreement shall be
      automatically extended for one (1) additional year, unless Employee or Company
      gives the other written notice, at least sixty (60) days prior to the end of
      the
      Initial Term or the Extended Terms, as the case may be, that either party does
      not intend for the term of this Agreement to be extended further (the Initial
      Term and the Extended Terms & collectively referred to herein as the “Period
      of Employment”).

    

    3. Position
      and Duties.

    

    
      	
              3.1

            	
              Service
                with the Company.
                During the Period of Employment, Employee shall serve as, and his
                title
                shall be President and Director. Employee agrees to perform such
                employment duties as the Board of Directors of Company (the “Board”) shall
                assign to him from time to time.

            

    

    

    
      	
              3.2

            	
              Performance
                of  Duties.
                Employee agrees to serve Company faithfully and to the best of his
                ability. Employee shall devote his time as required to the business
                of
                Company, shall act at all times in the best interests of Company.
                and
                shall not, during the Period of Employment, be engaged in any other
                competitive business activity, whether or not such business is pursued
                for
                gain, profit or other pecuniary advantage; provided, however, that
                nothing
                in this Agreement shall be construed as preventing Employee from
                participating in non-competing business activities or investing his
                personal assets in any form or manner that will not require any services
                by Employee in the operation of the affairs of the businesses in
                which
                such investments are made. Employee hereby confirms that he is under
                no
                contractual commitments inconsistent with his obligations set forth
                in
                this Agreement, and that during the Period of Employment, he will
                not
                render or perform services, or enter into any contract to do so,
                for any
                other corporation, firm, entity or person which are inconsistent
                with the
                provisions of this Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3.3

            	
              Personnel
                Policies.
                Employee shall conduct himself at all times in a businesslike and
                professional manner as appropriate for a person in his position,
                and shall
                represent Company in all respects as complies with good business
                and
                ethical practices. In addition, Employee shall be subject to and
                abide by
                the policies and procedures of Company applicable to personnel of
                Company,
                as adopted from time to time.

            

    

    

    4. Compensation
      and Benefits.

    

    
      	
              4.1

            	
              Annual
                Base Salary.
                As compensation for all services to be rendered by Employee under
                this
                Agreement during the Initial Term, Company shall issue 75,000 common
                shares of Disaster Preparedness Systems Inc. To be negotiated 60
                days
                prior to end of extended terms.

            

    

    

    
      	
              4.2

            	
              Company/Parent
                Incentives.
                Employee shall be entitled to participate in any incentive or supplemental
                compensation plans or arrangements instituted by Company or Parent
                and
                covering their senior management and principal executive officers,
                and
                shall be entitled to receive additional compensation (of a comparable
                nature and in a proportionate amount) as Company or Parent may pay
                to
                senior management and principal executive officers
                generally.

            

    

    

    
      	
              4.3

            	
              Employee
                Benefits.
                Employee shall be entitled, to the extent that his position, title,
                tenure, salary, age, health and other qualifications make him eligible,
                to
                participate in all employee benefit plans or programs of the
                Parent/Company currently in existence on the date hereof. Employee’s
                participation in any such plan or program shall be subject to the
                provisions, rules and regulations applicable thereto. Such benefits
                shall
                include: participation in any and all vacation (to include no less
                than
                four (4) weeks vacation annually), medical insurance or other benefit
                plans from time to time in effect and generally applicable to senior
                management and principal executive officers of Parent or Company,
                whichever shall be more favorable to
                Employee.

            

    

    

    
      	
              4.4

            	
              Other Expenses.
                In accordance with the Company’s policies established from time to time,
                Company will pay or reimburse Employee for all reasonable and necessary
                out-of-pocket expenses incurred by him in the performance of his
                duties
                under this Agreement, subject to the terms and conditions of Company’s
                expense reimbursement policy, including, but not limited to, the
                presentment of appropriate vouchers and receipts sufficient to permit
                deductibility of such expenses by Company pursuant to the applicable
                regulations under the Internal Revenue Code of 1986, as
                amended.

            

    

     

    
      
        
        

      

      
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              4.5

            	
              Withholding.
                All references herein to compensation to be paid to the Employee
                are to
                the gross amounts thereof which are due hereunder. Company shall
                have the
                right to deduct there from all sums which may be required to be deducted
                or withheld under any provision of law (including, but not limited
                to,
                social security payments, income tax withholding, and any other deduction
                required by law) now in effect or which may become effective at any
                time
                during the term of this Agreement.

            

    

    

    
      	
              4.6

            	
              Cash
                and Stock Options Based on Performance of Company.
                Employee shall be entitled to stock options based on performance
                of
                Company as deemed by the Directors.

            

    

    

    The
      parties shall comply with all applicable federal and state securities laws,
      rules and regulations in connection with the exercise of the options and
      issuance of the stock certificates.

    

    
      	5.	
              Ventures.
                If, during the term of this Agreement, Employee is engaged in or
                associated with the planning or implementing of any project, program
                or
                venture involving Company and a third party or parties, all rights
                in the
                project, program or venture shall belong to Company and shall constitute
                a
                corporate opportunity belonging exclusively to Company, unless otherwise
                approved in writing by Company’s Board. Employee shall not be entitled to
                any interest in such project, program or venture or to any commission,
                finder’s fee or other compensation in connection therewith other than the
                salary to be paid to Employee as provided in this
                Agreement.

            

    

    

    6. Termination
      of Employment.

    

    
      	
              6.1

            	
              Early
                Termination of the Period of Employment.
                Notwithstanding Section 2, and with specific reference to the definitions
                set forth in Section 6.5 hereof, the Period of Employment shall end
                upon
                the earliest to occur of (i) a termination of Employee’s employment on
                account of Employee’s death, (ii) a Termination by Company due to
                Disability, (iii) a Termination by Company for Cause, (iv) a Termination
                by Company without Cause or because of Change of Control, (v) a
                Termination by Employee for Good Reason or (vi) a Termination by
                Employee
                not for Good Reason. For purposes of this Agreement, a transfer of
                Employee’s employment (i) to any other entity controlled by or under
                common control with Company (for so long as such entity continues
                to be
                controlled by or under common control with Company) or (ii) as a
                result of
                the implementation of any restructuring of Company, shall not be
                treated
                as a termination of employment, provided that, in either case, the
                successor employer (the “New Entity”) expressly assumes and agrees to
                perform all of Company’s obligations under this Agreement and there is not
                a Change of Control Triggering Event as hereafter
                described.

            

    

     

    
      
        
        

      

      
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              6.2

            	
              Benefits
                Payable Upon Termination.
                Following the end of the Period of Employment pursuant to Section
                6.1,
                Employee (or, in the event of his death, his surviving spouse, if
                any, or
                his estate) shall be paid the type or types of compensation determined
                to
                be payable in accordance with the following table at the times established
                pursuant to Section 6.3:

            

    

     

    
      
        	 	
                Earned
                  Salary

              	
                Vested
                  Benefits

              	
                Accrued
                  Bonus

              	
                Remaining
                  Salary

              
	
                Change
                  of Control or by Company without Cause 

              	
                Payable

              	
                Payable

              	
                Payable

              	
                Payable

              
	
                Death
                  and Disability of Employee

              	
                Payable

              	
                Payable

              	
                Payable

              	
                Payable

              
	
                Good
                  Reason by Employee 

              	
                Payable

              	
                Payable

              	
                Payable

              	
                Payable

              
	
                Cause
                  by Company 

              	
                Payable

              	
                Payable

              	
                Not
                  Payable

              	
                Not
                  Payable

              
	
                Voluntary
                  termination by Employee

              	
                Payable

              	
                Payable

              	
                Not
                  Payable

              	
                Not
                  Payable

              

      

    

    

    
      	
              6.3

            	
              Timing
                of Payments.

            

    

    

    (a) Earned
      Salary and Accrued Bonus shall be paid in a single lump-sum as soon as
      practicable, but in no event more than 30 days following the end of the Period
      of Employment.

    

    (b) Vested
      Benefits shall be paid in accordance with the terms of the plan, policy,
      practice, program, contract or agreement under which such benefits have
      accrued.

    

    (c) Remaining
      Salary shall continue to be paid after termination in the manner in which it
      was
      paid prior to termination, unless such termination is pursuant to a Change
      of
      Control Triggering Event, in which case it shall be paid as set forth in Section
      6.4(b).

    

    (d) Anything
      herein to the contrary notwithstanding, the foregoing payments shall be subject
      to the prior satisfaction of the conditions specified in Section 6.6 and any
      requirements of applicable law.

    

    
      	
              6.4

            	
              Employee’s
                Rights Upon
                Change of Control.

            

    

    

    (a) If
      a
      Change in Control occurs and one or more of the following events occurs (which
      event, when it occurs after a Change in Control, is referred to herein as a
      “Triggering Event”):

    

    
      	
            	
              (i)

            	
              The
                assignment to Employee of duties, responsibilities, or status materially
                inconsistent with his duties, responsibilities and status prior to
                the
                Change in Control, or a material reduction or alteration in the nature
                or
                status of Employee’s duties and responsibilities from those in effect
                prior to the Change in Control;

            

    

    

    
      	
            	
              (ii)

            	
              The
                failure by Employer to continue in effect Employee’s insurance,
                disability, stock option plan, or any other employee benefit plans,
                policies, practices or arrangements in which Employee participates
                or the
                failure of Employer to continue Employee’s participation therein on
                substantially the same basis, both in terms of the amount of benefits
                provided and the level of Employee’s participation relative to other
                participants, as existed prior to the Change in
                Control;

            

    

     

    
      
        
        

      

      
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              (iii)

            	
              The
                failure of Employer to obtain an agreement~ from a successor entity
                which
                is not controlled by or under common control with Company, which
                is
                acceptable to Employee, to assume and agree to perform this Agreement;
                or

            

    

    

    
      	
            	
              (iv)

            	
              Any
                purported termination by Employer of Employee’s employment other than
                provided hereby; then Employee may, in his sole discretion, within
                two (2)
                months of the date of the Triggering Event, give notice (the “Notice of
                Intention”) that he intends to elect to exercise his rights to receive the
                payment provided.

            

    

    

    (b) Within
      thirty (30) days after receipt of the Notice of Intention, Company shall pay
      to
      Employee in cash the entire Base Salary due to Employee for the remainder of
      the
      Initial Term. 

    

    (c) Notwithstanding
      anything herein to the contrary, and regardless of the time of termination
      of
      Employee’s employment under this Section 6.4, the provisions of Section 4 hereof
      relating to stock and/or stock options shall continue and remain in full force
      and effort for a period of five (5) years after the date Employee receives
      all
      of his Base Salary, as requested in subsection (b) immediately
      above.

     

    6.5 Definitions.
      For
      purposes of this Section 6, capitalized terms have the following
      meanings:

     

    (a) “Accrued
      Bonus” means a prorated amount equal to the product of (i) the annual incentive
      compensation Employee would have been entitled to receive under Section 4.2
      for
      the calendar year in which his active service for Company terminates pursuant
      to
      Section 6.1 had he remained employed for the entire year and assuming that
      all
      targets for such year had been met, multiplied by (ii) a fraction, the numerator
      of which is equal to the number of days in such calendar year occurring on
      or
      prior to the termination of Employee’s active service for Company and the
      denominator of which is 365.

    

    (b) “Earned
      Salary” means any Base Salary earned, but unpaid, for services rendered to
      Company on or prior to the date on which the Period of Employment
      ends.

    

    (c) “Termination
      by Company for Cause” means a termination of Employee’s employment by Company
      due to (i) Employee’s deliberate and intentional continuing refusal to
      substantially perform his duties and obligations under this Agreement (except
      by
      reason of incapacity due to disability or illness), if he shall have either
      failed to remedy such alleged breach within forty-five (45) days from his
      receipt of written notice demanding that he remedy such alleged breach, or
      shall
      have failed to take reasonable steps in good faith to that end during such
      forty-five (45) day period and shall continue diligently to take such steps;
      provided that Company has delivered to Employee a further notice after the
      end
      of such forty-five (45) day period asserting that Employee has failed to comply
      with the remedy provisions of this Section 6.5, and specifying the particulars
      thereof in detail, and provided further that Employee thereafter receives a
      certified copy of a resolution of the Board of Company adopted by the
      affirmative vote of not less than seventy-five percent (75%) of the entire
      Board
      at a meeting called and held for that purpose and at which Employee was given
      an
      opportunity to be heard, finding that Employee exhibited conduct set forth
      in
      this Section and that Employee failed to take reasonable steps in good faith
      to
      remedy such alleged breach and specifying the particulars thereof in detail;
      (ii) Employee’s engaging in serious misconduct that is injurious to Company or
      any subsidiary or any affiliate of Company, (iii) Employee’s having been
      convicted of; or entered a plea of nolo contendere to, a crime involving an
      act
      that is immoral or wrong in and of itself (e.g., burglary, larceny, murder
      and
      arson) or a crime involving deceit, fraud, perjury or embezzlement, (iv) the
      breach by Employee of any one or more of the restrictive covenants contained
      in
      Section 7, or (v) upon a determination that Employee has engaged in willful
      fraud or defalcation involving material funds or other assets of
      Employer.

     

    
      
        
        

      

      
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    (d) “Termination
      by Company Due to Disability” means a termination of Employee’s employment by
      Company because Employee has been incapable of substantially fulfilling the
      positions, duties, responsibilities and obligations set forth in this Agreement
      because of physical, mental or emotional incapacity resulting from injury,
      sickness or disease for a period of (i) at least three (3) consecutive months
      or
      (ii) more than six (6) months in any twelve (12) month period. Any question
      as
      to the existence, extent or potentiality of Employee’s disability shall be made
      by Company, except that Employee shall have the right to request that Company
      present the question of whether he is disabled to a qualified, independent
      physician mutually acceptable to Company and Employee. The determination of
      any
      such physician shall be final and conclusive for all purposes of this
      Agreement.

    

    (e) “Termination
      by Employee for Good Reason” means a termination of Employee’s employment by
      Employee within 90 days following (i) a material reduction in Employee’s
      positions, duties and responsibilities from those described herein; (ii) the
      relocation of Employee’s principal place of employment to a location more than
      50 miles from the location at which he performed his principal duties on the
      date immediately prior to such relocation, (iii) a breach of the obligation
      to
      provide Employee with the benefits required to be provided, (iv) a failure
      by
      Company to pay any amounts due and owing to Employee within 10 days following
      written notice from Employee of such failure to pay, or (v) any other material
      breach of Company’s obligations to Employee hereunder that significantly affects
      the compensation or benefits payable to Employee or materially impairs
      Employee’s ability to perform the duties and responsibilities of his position.
      In the event of Termination by Employee for Good Reason, the Company shall
      pay
      to Employee the Base Salary payment for the next twelve (12) months or for
      the
      period remaining during the Initial Term, whichever is longer. Notwithstanding
      the foregoing, a termination shall not be treated as a Termination for Good
      Reason (i) if Employee shall have consented in writing to the occurrence of
      the
      event giving rise to the claim of Termination for Good Reason or (ii) unless
      Employee shall have delivered a written notice to the President of Company
      within 60 days of his having actual knowledge of the occurrence of one of such
      events stating that he intends to terminate his employment for Good Reason
      and
      specifying the factual basis for such termination, and such event shall not
      have
      been cured within 30 days of the receipt of such notice.

     

    
      
        
        

      

      
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    (f) “Termination
      by Company without Cause” means any termination of Employee’s employment by
      Company other than (i) a Termination due to Disability or (ii) a Termination
      for
      Cause. Subject to Company’s obligations to make the Base Salary payments
      remaining due during the Initial Term or for the next twelve (12) months,
      whichever is longer, nothing in this Agreement shall be construed to limit
      the
      right of Company to terminate Employee’s employment at any time for cause or
      without cause. A termination on account of Employee’s death shall not be deemed
      a termination by Company.

    

    (g) “Termination
      by Employee not for Good Reason” means any termination of Employee’s employment
      by Employee for any reason whatsoever, including, but not limited to, Employee’s
      retirement, other than a Termination for Good Reason or a termination on account
      of Employee’s death.

    

    (h) “Vested
      Benefits” means amounts which are vested or which Employee is otherwise entitled
      to receive under the terms of or in accordance with any plan, policy, practice
      or program of; or any contract or agreement with, Company or any of its
      subsidiaries, at or subsequent to the date of his termination without regard
      to
      the performance by Employee of further services or the resolution of a
      contingency.

    

    6.6 Full
      Discharge of Company Obligations.
      Except
      to the extent provided in this Section 6 the amounts payable to Employee
      pursuant to this Section 6 following termination of his employment shall be
      in
      full and complete satisfaction of Employee’s rights under this Agreement and any
      other claims he may have in respect of his employment by Company or any of
      its
      subsidiaries. Such amounts shall constitute liquidated damages with respect
      to
      any and all such rights and claims, shall not be subject to any offset or
      mitigation, and, upon Employee’s receipt of such amounts, Company shall be
      released and discharged from any and all liability to Employee in connection
      with this Agreement or otherwise in connection with Employee’s employment with
      Company and its subsidiaries. Notwithstanding anything else contained herein
      to
      the contrary, (i) Company’s obligations under this Section 6 are expressly
      conditioned upon Employee’s execution of a general release and waiver of any
      claims he may have in connection with the termination of, or arising out of,
      his
      employment with Company and (ii) nothing in this Section 6.6 shall be construed
      to waive, release or otherwise limit any amounts required to be paid hereunder
      or any benefits due and payable to Employee under the terms of any employee
      pension benefit plan, as defined in Section 3(2) of the Employee Retirement
      Income Security Act of 1974, as amended, or any other Vested
      Benefit.

     

    
      
        
        

      

      
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    6.7 Surrender
      of Records. etc.
      Upon
      termination of employment with Company, Employee shall promptly deliver to
      Company all records, manuals, books, blank forms, documents, letters, memoranda,
      notes, notebooks, reports, data, tables, calculations or copies thereof, which
      are the property of Company and which relate in any way to the business,
      products, practices or techniques of Company, and all other property, trade
      secrets and confidential information of Company, including, but not limited
      to,
      all documents which, in whole or in part, contain any trade secrets or
      confidential information of Company, which in any of these cases are in his
      possession or under his control.

    

    6.8 Survival.
      Notwithstanding any termination of the Agreement, Employee, in consideration
      of
      his employment hereunder to the date of such termination, shall remain bound
      by
      the provisions of this Agreement which specifically relate to his activities
      or
      obligations upon or subsequent to the termination of Employee’s employment. The
      salary and other benefits provided herein shall be paid to Employee up to the
      effective date of termination of this Agreement for whatever reason, including
      the death of Employee, and not thereafter.

     

    6.9 Death
      of Employee.
      In the
      event of Employee’s death during the term of his employment hereunder, Company
      shall pay to Employee’s surviving spouse or to the executor or administrator of
      Employee’s estate (if his spouse shall not survive him) an amount equal to the
      installments of his Base Salary then payable for the month in which he dies
      and
      for an additional twelve (12) months.

    

    6.10 Disability
      of Employee.
      Employee shall be covered by Company’s disability benefit plan as such plan may
      from time to time exist. The Company may terminate Employee’s employment for
      reason of his disability in accordance with Section 6.5(d). In such event,
      Company shall be obligated to pay Employee monthly installments of his Base
      Salary for the shorter of (i) the expiration of the Initial Term or (ii) one
      (1)
      year after the date on which written notice of such termination is received
      by
      Employee. The foregoing payment obligations shall be reduced by the amount
      of
      any payment made to such Employee under the coverage then afforded to Employee
      by any disability benefit plan in effect at the time such disability
      determination is made.

     

    7. Restrictions
      on Conduct of Employee.
      Employee and Company understand and agree that the purpose of the provisions
      of
      this Section 7 is to protect legitimate business interests of Company, as more
      fully described below, and are not intended to eliminate Employee’s
      post-employment competition with Company, nor is it intended to impair or
      infringe upon Employee’s right to work, earn a living, or acquire and possess
      property from the fruits of his labor. Employee hereby acknowledges that the
      post-employment restrictions set forth in this Section 7 are reasonable in
      scope
      and duration, as contemplated by NRS 613.200(2), and that they do not, and
      will
      not, unduly impair his ability to earn a living after the termination of this
      Agreement. Employee further acknowledges that such restrictions do not impose
      on
      him (a) any greater restraint than is reasonably necessary to protect the
      business and goodwill of the Company or (b) any undue hardship. Therefore,
      subject to the limitations of reasonableness imposed by law upon the
      restrictions set forth herein by the time and geographical area described below,
      Employee shall be subject to the restrictions set forth in this Section
      7.

     

    
      
        
        

      

      
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        7.1
          Definitions.
          The
          following capitalized terms used in this Section 7 shall have the meanings
          assigned to them below, which definitions shall apply to both the singular
          and
          the plural forms of such terms:

      

    

    

    (a)
       “Competitive
      Products” means any products used in the fire fighting/rescue/
      environmental/training industry (“fire industry”) owned by or licensed to
      Company or which Company has the right to sell, distribute or sublicense to
      others, at the Determination Date, including, but not limited to, aircraft
      fir
      training equipment, pumps and related products.

    

    (b) “Competitive
      Services” means any services provided by Company at the Determination Date,
      including, but not limited to, services used in the fire industry.

    

    (c) “Confidential
      Information”
      means
      any
      confidential or proprietary information possessed by Company or its affiliated
      entities or relating to its or their business, including without limitation,
      any
      confidential “know-how”, customer lists, details of client or consultant
      contracts, current and anticipated customer requirements, pricing policies,
      price lists, market studies, fire fighting and/or rescue data, business plans,
      operational methods, marketing plans or strategies, product development
      techniques or plans, computer software programs (including object code and
      source code), data and documentation, data base technologies, systems,
      structures and architectures, inventions and ideas, past, current and planned
      research and development, compilations, devices, methods, techniques, processes,
      financial information and data, business acquisition plans, new personnel
      acquisition plans and any other Confidential Information that would constitute
      a
      Trade Secret (as defined herein).

    

    (d) “Determination
      Date” means the date of termination of Employee’s employment with Company for
      any reason whatsoever, or any earlier date (during the Employment Period) of
      an
      alleged breach of the Restrictive Covenants by Employee.

    

    (e)
       “Person”
      means any individual or any corporation, partnership, joint venture, association
      or other entity or enterprise.

    

    (f)
       “Principal
      or Representative” means a principal, owner, partner, shareholder, joint
      venturer, investor, member, trustee, director, officer, manager, employee,
      agent, representative or consultant.

     

    
      
        
        

      

      
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    (g)
       “Protected
      Clients” means clients of Company that obtained services or products from
      Company within one (1) year prior to the Determination Date.

    

    (h) “Protected
      Employees” means employees of Company who were employed by Company at any time
      within six (6) months prior to the Determination Date.

    

    (i) “Restricted
      Period” means the Period of Employment and a period extending two (2) years from
      the termination of Employee’s employment with Company for any reason
      whatsoever.

    

    (j) “Restrictive
      Covenants” means the restrictive covenants contained in Section 7.2
      hereof.

    

    (k) “Trade
      Secret “means any item of Confidential Information that constitutes a “trade
      secret(s)” under the common law or statutory law of the State of
      Nevada.

    

    (1) “Change
      in Control” shall mean a change in control of Employer, which shall be deemed to
      have occurred if and when, with or without the approval of the Board of
      Employer:

    

    
      	
            	
              (i)

            	
              More
                than twenty-five percent (25%)
                of
                Employer’s outstanding securities entitled to vote in elections of
                directors shall be acquired by any person (as such term is used in
                Section
                13(d) and 14(d) of the Securities Exchange Act of 1934, as amended)
                other
                than; or

            

    

    

    
      	
            	
              (ii)

            	
              As
                the result of a tender offer, merger, consolidation, sale of assets
                contested election or any combination of such transactions, the persons
                who were directors of Company immediately before the transaction
                shall
                cease to constitute a majority of the Board or of the board of directors
                of any successor to Employer.

            

    

    

    7.2 Restrictive
      Covenants.

    

    (a) Restriction
      on Disclosure and Use of Confidential Information.
      Employee
      understands and agrees that the Confidential Information constitutes a valuable
      asset of Company and its affiliated entities and may not converted to Employee’s
      own use. Accordingly, Employee hereby agrees that Employee shall not, directly
      or indirectly, at any time during the Restricted Period reveal, divulge, or
      disclose to any Person not expressly authorized by Company any Confidential
      Information, and Employee shall not, directly or indirectly, at any time during
      the Restricted Period use or make use of any Confidential Information in
      connection with any business activity other than that of Company; provided,
      however, in the event the Confidential Information constitutes a Trade Secret,
      the Restricted Period referred to above shall be five (5) years.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (b) Non-solicitation
      of Protected Employees.
      Employee understands and agrees that the relationship between Company and each
      of its Protected Employees constitutes a valuable asset of Company and may
      not
      be converted to Employee’s own use. Accordingly, Employee hereby agrees that
      during the Restricted Period Employee shall not directly or indirectly on
      Employee’s own behalf or as a Principal or Representative of any Person or
      otherwise solicit or induce any Protected Employee to terminate his or her
      employment relationship with Company or to enter into employment with any other
      Person.

    

    (c) Restriction
      on Relationships with Protected Clients.
      Employee
      understands and agrees that the relationship between Company and each of its
      Protected Clients constitutes a valuable asset of Company and may not be
      converted to Employee’s own use. Accordingly, Employee hereby agrees that during
      the Restricted Period Employee shall not, without the prior written consent
      of
      Company, become a Principal or Representative of a Protected Client or otherwise
      provide services to a Protected Client as a consultant or independent
      contractor.

    

    (d) Non-competition
      with Company.
      During
      the Restricted Period, Employee, unless acting in accordance with Company’s
      prior written consent, will not directly provide any Competitive Services to,
      and will not, directly or indirectly, (i) own, manage, operate, join, control,
      finance or participate in the ownership, management, operation, control or
      financing of, or (ii) be connected as a Principal or Representative or otherwise
      with, or (iii) permit Employee’s name to be used by or in connection with, any
      Person engaged in (a) providing Competitive Services to any Person conducting
      business activities within a 25-mile radius of the downtown center of any city
      in the United States or any foreign country in which Employee performed services
      for Company, equal to at least 25% of Employee’s total service days, during the
      twelve (12) month period immediately prior to the Determination Date, or (b)
      marketing, selling, distributing or licensing Competitive Products anywhere
      in
      the United States; provided, however, that the provisions of this Agreement
      shall not be deemed to prohibit the ownership by Employee of any securities
      of
      Company or its affiliated entities or not more than five percent (5%) of any
      class of securities of any corporation having a class of securities registered
      pursuant to the Securities Exchange Act of 1934, as amended. Employee
      acknowledges that (x) the provisions of this Agreement are reasonable and
      necessary to protect the legitimate interests of Company and (y) any violation
      of this Agreement will result in irreparable injury to Company and damages
      at
      law would not be reasonable or adequate compensation to Company for a violation
      of this Agreement.

    

    7.3 Exceptions
      from Disclosure Restrictions.
      Anything herein to the contrary notwithstanding, Employee shall not be
      restricted from disclosing or using Confidential Information that: (a) is or
      becomes generally available to the public other than as a result of an
      unauthorized disclosure by Employee or his agent; (b)becomes available to
      Employee in a manner that is not in contravention of applicable law from a
      source (other than Company or its affiliated entities or one of its or their
      officers, employees, agents or representatives) that is not bound by a
      confidential relationship with Company or its affiliated entities or by a
      confidentiality or other similar agreement; (c) was known to Employee on a
      non-confidential basis and not in contravention of applicable law or a
      confidentiality or other similar agreement before its disclosure to Employee
      by
      Company or its affiliated entities or one of its or their officers, employees,
      agents or representatives; or (d) is required to be disclosed by law, court
      order or other legal process; provided, however, that in the event disclosure
      is
      required by law, Employee shall provide Company with prompt notice of such
      requirement so that Company may seek an appropriate protective order prior
      to
      any such required disclosure by Employee.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    7.4 Enforcement
      of Restrictive Covenants.

    

    (a) Rights
      and Remedies Upon Breach.
      In the
      event Employee breaches, or anticipatorily breaches any of the provisions of
      the
      Restrictive Covenants, Company shall have the following rights and remedies,
      which shall be independent of any others and severally enforceable, and shall
      be
      in addition to, and not in lieu of, any other rights and remedies available
      to
      Company at law or inequity:

    

    
      	
            	
              (i)

            	
              the
                right and remedy to enjoin, preliminarily and permanently, Employee
                from
                violating or threatening to violate the Restrictive Covenants and
                to have
                the Restrictive Covenants specifically enforced by any court of competent
                jurisdiction, it being agreed that any breach or threatened breach
                of the
                Restrictive Covenants would cause irreparable injury to Company and
                that
                money damages would not provide an adequate remedy to Company;
                and

            

    

    

    
      	
            	
              (ii)

            	
              the
                right and remedy to require the Employee to account for and pay over
                to
                Company all compensation, profits, monies, accruals, increments or
                other
                benefits derived or received by such party as the result of any
                transactions constituting a breach of the Restrictive
                Covenants.

            

    

    

    (b) Separate
      Enforcement of Provisions.
      If for
      any reason a part of this Agreement is unenforceable, the remainder of the
      Agreement shall be enforced to the fullest extent possible, giving due deference
      to the intent of the parties, as expressed herein.. In particular, if any of
      the
      restrictions imposed on EMPLOYEE hereunder are deemed by a Court of competent
      jurisdiction to contravene NRS 613.200(2) or the guidelines for reasonableness”
of restrictions on EMPLOYEE, as set forth by the Nevada Supreme Court in the
      case styled, Jones
      v. Deeter, 112 Nev. 291, 913 P.2d 1271 (1996),
      then
      the parties expressly request that the Court amend the provisions hereof to
      satisfy the standards for reasonableness” of such restrictions and not deem them
      totally unenforceable.

    

    8. Assignment.
      This
      Agreement shall not be assignable, in whole or in part, by either party without
      the written consent of the other party, except that Company may, without the
      consent of Employee, assign its rights and obligations under this Agreement
      to
      any corporation, firm or other business entity with or into which Company may
      merge or consolidate, or into which Company may sell or transfer all or
      substantially all of its assets or of which fifty percent (50%)
      or
      more
      of the equity investment and voting control is owned, directly or indirectly,
      by, or is under common ownership with, Company. After any such assignment by
      Company, Company shall be discharged from all further liability hereunder and
      such assignee shall thereafter be deemed to be Company for the purposes of
      all
      provisions of this Agreement including this Section 8.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    9. Miscellaneous.

    

    9.1 Governing
      Law.
      This
      Agreement is made under and shall be governed by and construed in accordance
      with the laws of the State of Nevada.

    

    9.2 Entire
      Agreement and Amendment.
      This
      Agreement, together with the instruments and agreements contemplated hereby,
      represents the entire agreement of the parties with respect to the subject
      matter hereof, and all agreements entered into prior hereto with respect to
      the
      subject matter hereof are revoked and superseded by this Agreement, and no
      representations, warranties, inducements or oral agreements have been made
      by
      any of the parties except as expressly set forth herein, or in other
      contemporaneous written agreements. This Agreement may not be changed, modified
      or rescinded except in writing, signed by all parties hereto, and any attempt
      at
      oral modification hereof shall be void and of no effect.

    

    9.3 No
      Waiver.
      No term
      or condition of this Agreement shall be deemed to have been waived, nor shall
      there be any estoppel to enforce any provisions of this Agreement, except by
      a
      statement in writing signed by the party against whom enforcement of the waiver
      or estoppel is sought. Any written waiver shall not be deemed a continuing
      waiver unless specifically stated, shall operate only as to the specific term
      or
      condition waived and shall not constitute a waiver or such term or condition
      for
      the future or as to any act other than that specifically waived.

    

    9.4 Severability.
      To the
      extent any provisions of this Agreement shall be invalid or unenforceable,
      it
      shall be considered deleted here from and the remainder of such provision and
      of
      this Agreement shall be unaffected and shall continue in full force and effect.
      It is the intention of the parties hereto that the provisions of this Agreement
      shall be enforced to the fullest extent permissible under the laws or public
      policies of each state and jurisdiction in which such enforcement is sought,
      but
      that the unenforceability (or the modification to conform with such laws or
      public policies) of any provision hereof shall not render unenforceable or
      impair the remainder of this Agreement, which shall be deemed amended to delete
      or modify, as necessary, the invalid or unenforceable provisions. The parties
      further agree to alter the balance of this Agreement in order to render the
      same
      valid and enforceable.

    

    9.5 Agency.
      Except
      to the extent conferred upon him by Company Board, Employee shall have no
      authority to enter into any contracts binding upon Company or to create any
      obligations on the part of Company.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    9.6 Notices.
      All
      notices hereunder shall be in writing and shall be effective (i) when personally
      delivered by facsimile transmission, courier (including overnight carriers)
      or
      otherwise, or (ii) on the third business day following the date deposited in
      the
      mail if such notice is sent by certified or registered mail with return receipt
      requested and postage thereon fully prepaid. The address for such notices shall
      be as follows:

    

    

    
      	 	
              If
                to Company: 

            	
              Global
                Preparedness Systems, Inc.,

            

      	 	 	
              C/O
                #212, 1802 Carson Street

              Carson
                City, NV, 89701 USA.

              Attn:
                Mr. P.Patton. 

            

    

     

    
      	
            	
              If
                to Employee: 

            	
              William
                Majcher

            

      	 	 	
              
                1303
                  West 8th Ave.

                Vancouver,
                  BC, V6H 3W4

              

            

    

     

    9.7 Inurement.
      This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and the respective heirs, executors, administrators, successors and permitted
      assigns.

    

    9.8 Attorneys
      Fees.
      In any
      action relating to the enforcement of this Agreement or the Restrictive
      Covenants, the prevailing party in such action shall be entitled to be paid
      any
      and all costs and expenses incurred by him or it in enforcing or establishing
      his or its rights there under, including, without limitation, reasonable
      attorneys’ fees, whether suit be brought or not, and whether or not incurred in
      trial, bankruptcy or appellate proceedings.

    

    9.9 No
      Right of Set-Off.
      Company
      and Parent shall have no right of set-off or counter-claim in respect of any
      debt or other obligation of Employee to them against any payment or other
      obligation to Employee provided for in this Agreement or pursuant to any other
      plan, agreement or policy.

    

    9.1 Required
      Payments Hereunder.
      If any
      amounts which are to be paid by Company or Parent hereunder are not paid
      promptly at the times required, such amounts shall accrue interest at the rate
      of twelve percent (12%) per annum from the date due until paid in
      full.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      this
      Agreement has been duly executed by the parties hereto the day and year first
      above written.

    

    

    Disaster
      Preparedness Systems, Inc.

    

    

    /s/
      Mark
      Henrickson

    By__________________________________

    

    

    /s/
      Ronald Rogers

    By________________________________
      

    

    

    

    /s/
      Bill
      Majcher

    __________________________________

     Employee

     

    
15Exhibit
      10.5

     

    DISASTER
      PREPAREDNESS SYSTEMS, INC.

     

    2006
      INCENTIVE PLAN

    

    1. PURPOSE.
      The purpose of the Disaster Preparedness Systems, Inc. 2006 Incentive Plan
      (the
“Plan”)
      is to
      advance the interests of the Company and its shareholders by encouraging and
      facilitating the ownership of the Stock (as defined in Section 2) of the Company
      by persons performing services for the Company or an Affiliate in order to
      enhance the ability of the Company to attract, retain and reward such persons
      and motivate them to contribute to the growth and profitability of the Company.
      Awards
      may be granted subject to shareholder approval, but may not be exercised or
      otherwise settled in the event shareholder approval is not
      obtained.

    

    2.
       DEFINITIONS
      AND CONSTRUCTION.

    

    2.1
       DEFINITIONS.
      Whenever used herein, the following terms shall have their respective meanings
      set forth below:

    

    (a) “Affiliate”
means
      any corporation that is a “parent corporation” or “subsidiary corporation” of
      the Company, as those terms are defined in Section 424(e) and (f) of the Code,
      or any successor provisions.

    

    (b) “Agreement”
means
      a
      written contract consistent with the terms of the Plan entered into between
      the
      Company and a Participant, containing the terms and conditions of an Award
      in
      such form and not inconsistent with this Plan as the Board shall approve from
      time to time, together with all amendments thereto, which amendments may be
      unilaterally made by the Company (with the approval of the Board) unless such
      amendments are deemed by the Board to be materially adverse to the Participant
      and not required as a matter of law.

    

    (c) “Award”
or
      “Awards”
means
      a
      grant made under this Plan in the form of Options or Restricted
      Shares. 

    

    (d) “Beneficiary”
means
      the person, persons, trust, or trusts entitled by will or by the laws of
      descent, to exercise a Participant’s Option or to receive a Participant’s
      Restricted Share under the Plan after the Participant’s death. To the extent
      that the transfer of a Participant’s Award at his or her death is permitted
      under an Agreement, a Participant’s Award shall be transferable at death to the
      estate or to the person who acquires the right to succeed to the Award by
      bequest or inheritance.

    

    (e) “Board”
means
      the Board of Directors of the Company. If one or more Committees have been
      appointed by the Board to administer the Plan, the term “Board” also means such
      Committee(s).

    

       (f) “Cause”
used
      in
      connection with the termination of employment or service of a Participant,
      means,
      as
      determined by the Board and unless otherwise provided in an applicable agreement
      with the Company or an Affiliate, (i) gross negligence or willful misconduct
      in
      connection with the performance of duties; (ii) conviction of a criminal offense
      (other than minor traffic offenses); or (iii) material breach of any term of
      any
      employment, consulting or other services, confidentiality, intellectual property
      or non-competition agreements, if any, between the Participant
      and the
      Company or an Affiliate.

    

    (g) “Change
      in Control”
shall
      mean an Ownership Change Event or a series of related Ownership Change Events
      (collectively, a “Transaction”)
      wherein the shareholders of the Company, immediately before a Transaction,
      do
      not retain immediately after a Transaction, in substantially the same
      proportions as their ownership of shares of the Company’s voting stock
      immediately before a Transaction, direct or indirect beneficial ownership of
      more than fifty percent (50%) of the total combined voting power of the
      outstanding voting securities of the Company. For purposes of the preceding
      sentence, indirect beneficial ownership shall include, without limitation,
      an
      interest resulting from ownership of the voting securities of one or more
      corporations or other business entities which own the Company, either directly
      or through one or more subsidiary corporations or other business entities.
      The
      Board shall have the right to determine whether multiple sales or exchanges
      of
      the voting securities of the Company or multiple Ownership Change Events are
      related, and its determination shall be final, binding and
      conclusive.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (h) “Code”
means
      the Internal Revenue Code of 1986, as amended, and any applicable regulations
      promulgated thereunder.

    

    (i) “Committee”
      means
      a
      committee of, and designated from time to time by resolution of, the Board,
      which shall be constituted as provided in Section
      3.2.

    

    (j) “Company”
means
      Disaster Preparedness Systems, Inc., a Nevadacorporation, or any successor
      corporation thereto.

    

    (k) “Consultant”
means
      a
      person engaged to provide consulting or advisory services (other than as an
      employee, a director or a consultant who provides management services) to the
      Company or an Affiliate and who provides significant services to two or more
      unrelated service recipients (i.e., revenues from any service recipient (or
      group of related service recipients) which do not exceed 70% of the revenues
      of
      the consultant’s business).

    

    (l) “Director”
means
      a
      member of the Board or a member of the Board of Directors of an
      Affiliate.

    

    (m) “Disability”
      means
      the
      Grantee is unable to perform each of the essential duties of such Grantee’s
      position by reason of a medically determinable physical or mental impairment
      which is potentially permanent in character or which has or can be expected
      to
      last for a continuous period of not less than 12 months.

    

    (n) “Employee”
means
      any person treated as an employee (including an officer or a director who is
      also treated as an employee) in the records of the Company or an Affiliate
      and,
      with respect to any Award to such person, who is an employee for purposes of
      Section 422 of the Code; provided,
      however,
      that
      neither service as a director nor payment of a director’s fee shall alone be
      sufficient to constitute employment for purposes of the Plan. The Company shall
      determine in good faith and in the sole exercise of its discretion, whether
      an
      individual has become, or has ceased to be, an Employee and the effective date
      of such individual’s employment or termination of employment, as the case may
      be. For purposes of an individual’s rights, if any, under the Plan as of the
      time of the Company’s determination, all such determinations by the Company
      shall be final, binding and conclusive, notwithstanding that the Company or
      any
      court of law or governmental agency subsequently makes a contrary
      determination.

    

    (o) “Fair
      Market Value”
means,
      as of any date, what the Board determines in good faith to be 100% of the fair
      market value of a share of Stock on that date, using one of the methods of
      valuation that complies with Code Section 409A and
      the
      rules and regulations issued thereunder as determined by the Board, in its
      discretion, to be appropriate for such valuation, which shall be used
      consistently for all equity-based compensatory
      arrangements.
      If the
      Stock is listed for trading over a public market, the “fair market value” of the
      Stock on a given day shall be (i) the closing price of the Stock on the exchange
      on which the Stock is listed on the
      last
      preceding date on which there was a sale of such Stock on such exchange
,
      or
      (ii)
      if the Stock is not then traded on an exchange but is traded on an
      over-the-counter market, the average of the closing bid and asked prices for
      the
      Stock in such over-the-counter market on the last preceding date on which there
      was a sale of such Stock in such market.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (p) “Grantee”
shall
      mean a Participant who has been awarded one or more Options or Restricted
      Shares.  

    

    (q) “Incentive
      Stock Option”
means
      an incentive stock option within the meaning of Section 422(b) of the
      Code.

    

    (r) “Nonqualified
      Stock Option”
means
      an Option not intended to be (as set forth in the Option Agreement) or which
      does not qualify as an Incentive Stock Option.

    

    (s) “Officer”
means
      any person designated by the Board as an officer of the Company.

    

    (t) “Option”
means
      a
      right to purchase Stock pursuant to the terms and conditions of the Plan.

    

    (u) “Option
      Agreement”
means
      a
      written agreement between the Company and a Grantee setting forth the terms,
      conditions and restrictions pertaining to the Option granted to the Optionee
      and
      to any shares of Stock acquired upon the exercise thereof.

    

    (v) “Ownership
      Change Event”
shall
      be deemed to have occurred if any of the following occurs with respect to the
      Company the direct or indirect sale or exchange in a single or series of related
      transactions by the shareholders of the Company of more than fifty percent
      (50%)
      of the voting stock of the Company.

    

    (w) “Parent
      Corporation”
means
      any present or future “parent corporation” of the Company, as defined in Section
      424(e) of the Code.

    

    (x) “Participant”
means
      any Employee, Consultant or Director to whom an Award has been made under the
      Plan.

    

    (y) “Participating
      Company”
means
      the Company or any Parent Corporation or Subsidiary Corporation.

    

    (z) “Resignation”
means
      the submission of notice of resignation of Service by a Participant to a
      Participating Company and acceptance thereof by such Participating
      Company.

    

    (aa) “Restricted
      Shares”
means
      shares awarded pursuant to a “Restricted
      Share Agreement”
between
      the Company and Participant setting forth the terms, conditions or restrictions
      applicable to an Award of shares of Stock under the Plan.

    

    (bb) “Retirement”
shall
      have such meaning as the Board shall determine from time to time.

    

    (cc) “Service”
means
      a
      Participant’s employment or service with a Participating Company, whether in the
      capacity of an employee, a director or a consultant. A Participant’s Service
      shall not be deemed to have terminated merely because of a change in the
      capacity in which the Participant renders Service to the Participating Company
      or a change in the Participating Company for which the Participant renders
      such
      Service, provided that there is no interruption or termination of the
      Participant’s Service. Furthermore, a Participant’s Service with the
      Participating Company shall not be deemed to have terminated if the Participant
      takes any military leave, sick leave, or other bona fide leave of absence
      approved by the Company; provided, however, that if any such leave exceeds
      ninety (90) days, on the ninety-first (91st) day of such leave the Participant’s
      Service shall be deemed to have terminated unless the Participant’s right to
      return to Service with the Participating Company is guaranteed by statute or
      contract. Notwithstanding the foregoing, unless otherwise designated by the
      Company or required by law, a leave of absence shall not be treated as service
      for purposes of determining vesting under the Participant’s Option or Restricted
      Share Agreement. The Participant’s Service shall be deemed to have terminated
      either upon an actual termination of service or upon the corporation for which
      the Participant performs services ceasing to be a Participating Company. Subject
      to the foregoing, the Company, in its discretion, shall determine whether the
      Participant’s Service has terminated and the effective date of such
      termination.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (dd) “Stock”
means
      the common stock of the Company, as adjusted from time to time in accordance
      with Section 4.2. 

    

    (ee) “Subsidiary
      Corporation”
means
      any present or future “subsidiary corporation” of the Company, as defined in
      Section 424(f) of the Code.

    

    2.2 CONSTRUCTION.
      Captions and titles contained herein are for convenience only and shall not
      affect the meaning or interpretation of any provision of the Plan. Except when
      otherwise indicated by the context, the singular shall include the plural and
      the plural shall include the singular. Use of the term “or” is not intended to
      be exclusive, unless the context clearly requires otherwise.

    

    3. ADMINISTRATION OF
      THE
      PLAN.

    

    3.1. BOARD.
      The Board shall have such powers and authorities related to the administration
      of the Plan as are consistent with the Company’s certificate of incorporation
      and by-laws and applicable law. The Board shall have full power and authority
      to
      take all actions and to make all determinations required or provided for under
      the Plan, any Award or any Award Agreement, and shall have full power and
      authority to take all such other actions and make all such other determinations
      not inconsistent with the specific terms and provisions of the Plan that the
      Board deems to be necessary or appropriate to the administration of the Plan,
      any Award or any Award Agreement. All such actions and determinations shall
      be
      by the affirmative vote of a majority of the members of the Board present at
      a
      meeting or by unanimous consent of the Board executed in writing in accordance
      with the Company’s certificate of incorporation and by-laws and applicable law.
      The interpretation and construction by the Board of any provision of the Plan,
      any Award or any Award Agreement shall be final and conclusive. Notwithstanding
      anything herein to the contrary, the Board shall not change, alter or modify
      any
      terms or provisions of any issued and outstanding Options or Restricted Shares
      which are subject to an Award that has been granted without the written consent
      of the Grantee thereof if any such changes, alterations or modifications would
      adversely affect any such Options or Restricted Shares. 

     

    3.2. COMMITTEE.
      The Board from time to time may delegate to the Committee such powers and
      authorities related to the administration and implementation of the Plan, as
      set
      forth in Section
      3.1
      above
      and other applicable provisions, as the Board shall determine, consistent with
      the certificate of incorporation and by-laws of the Company and applicable
      law.
      The Committee, if any, appointed by the Board to administer the Plan shall
      be
      the Compensation Committee of the Board. In the event that the Plan, any Award
      or any Award Agreement entered into hereunder provides for any action to be
      taken by or determination to be made by the Board, such action may be taken
      or
      such determination may be made by the Committee if the power and authority
      to do
      so has been delegated to the Committee by the Board as provided for in this
      Section. Unless otherwise expressly determined by the Board, any such action
      or
      determination by the Committee shall be final, binding and conclusive. To the
      extent permitted by law, the Committee may delegate its authority under the
      Plan
      to a member of the Board. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    3.3. TERMS
      OF
      AWARDS. Subject
      to the other terms and conditions of the Plan, the Board shall have full and
      final authority to: 

     

    (a)  
       designate
      Grantees; 

    

    (b)  
       determine
      the type or types of Awards to be made to a Grantee; 

     

    (c)  
       determine
      the number of shares of Stock to be subject to an Award; 

    

       (d)  
       establish
      the terms and conditions of each Award (including, but not limited to, the
      exercise price of any Option (“Option
      Price”),
      the
      nature and duration of any restriction or condition (or provision for lapse
      thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award
      or the shares of Stock subject thereto); provided,
      however,
      that
      the terms and conditions of each Award shall
      be
      established
      to
      ensure that each Award shall be
      exempt
      from the application of Code Section 409A including, without limitation,
      the Option Price being not less than 100% of the Fair Market Value of the shares
      of Stock underlying the Option on the date of grant of the Option. 

     

    (e)   prescribe
      the form of each Award Agreement evidencing an Award; and 

     

    (f)   amend,
      modify, or supplement the terms of any outstanding Award. 

     

    As
      a
      condition to any subsequent Award, the Board shall have the right, at its
      discretion, to require Grantees to return to the Company Awards previously
      made
      under the Plan. Subject to the terms and conditions of the Plan, any such new
      Award shall be upon such terms and conditions as are specified by the Board
      at
      the time the new Award is made. The Board shall have the right, in its
      discretion, to make Awards in substitution or exchange for any other award
      under
      another plan of the Company, any Affiliate, or any business entity to be
      acquired by the Company or an Affiliate. The Company may retain the right in
      an
      Award Agreement to cause a forfeiture of the Award and/or the gain realized
      by a
      Grantee on account of actions taken by the Grantee in violation or breach of
      or
      in conflict with any non-competition agreement, any agreement prohibiting
      solicitation of employees or clients of the Company or any Affiliate thereof
      or
      any confidentiality obligation with respect to the Company or any Affiliate
      thereof or otherwise in competition with the Company or any Affiliate thereof,
      to the extent specified in such Award Agreement applicable to the Grantee.
      Furthermore, except to the extent otherwise provided in an agreement or contract
      with a Grantee, the Company may annul an Award if the Grantee is an employee
      of
      the Company or an Affiliate thereof and is terminated for Cause as defined
      in
      the applicable Award Agreement or the Plan, as applicable. The grant of any
      Award may be contingent upon the Grantee executing the appropriate Award
      Agreement. 

     

    3.4. DEFERRAL
      ELECTIONS. The Board may permit Participants to elect to defer any
      Award
      payment, subject
      to Code
      Section 409A and such rules, regulations, procedures, and programs as it may
      establish. 

      

    3.5. NO
      LIABILITY. No member of the Board or of the Committee shall be liable for any
      action or determination made in good faith with respect to the Plan or any
      Award
      or Award Agreement. 

    

    3.6 CODE
      SECTION 409A. Notwithstanding the foregoing, if at any time the Board determines
      that any Award may be subject to Code Section 409A, the Board shall
      have the right, in its sole discretion, and without a Participant’s prior
      consent, to amend the Plan or any Award as it may determine is necessary or
      desirable either for the Plan and Awards to be exempt from the
      application of Section 409A or to satisfy the requirements of
      Section 409A, including by adding conditions with respect to the vesting
      and/or the payment of the Awards.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    4. STOCK
      SUBJECT TO THE PLAN.

    

    4.1 MAXIMUM
      NUMBER OF SHARES OF STOCK ISSUABLE. Subject to adjustment as provided in Section
      4.2, Section 6.1(i) and Section 7(f), the maximum aggregate number of shares
      of
      Stock that may be issued under the Plan shall not exceed ONE MILLION EIGHT
      HUNDRED FIFTY THOUSAND (1,850,000) and shall consist of authorized but unissued
      or reacquired shares of Stock, treasury shares or any combination thereof.
      If
      any shares of Stock subject to an Award are forfeited, canceled, exchanged
      or
      surrendered or if an Award otherwise terminates or expires without a
      distribution of shares of the Stock to the Grantee, the shares of Stock with
      respect to such Award shall, to the extent of any such forfeiture, cancellation,
      exchange, surrender, termination or expiration, again be available for Awards
      under the Plan. 

    

    4.2 ADJUSTMENTS
      FOR CHANGES IN CAPITAL STRUCTURE. In the event of any stock dividend, stock
      split, reverse stock split, recapitalization, combination, reclassification
      or
      similar change in the capital structure of the Company, appropriate adjustments
      shall be made in the number and class of shares subject to the Plan and to
      any
      outstanding Options and Restricted Shares, and in the exercise price per share
      of any outstanding Options.

    

    5. ELIGIBILITY.

    

    Awards
      may be granted only to Employees, Consultants and Directors. For purposes of
      the
      foregoing sentence, “Employees,” “Consultants”, and “Directors” shall include
      prospective Employees, prospective Consultants and prospective Directors to
      whom
      Options or Restricted Shares may be awarded in connection with written offers
      of
      an employment or other service relationship with the Company or an Affiliate.
      In
      determining the persons to whom Awards shall be granted and the number of shares
      to be covered by each Award, the Board shall take into account the duties of
      the
      respective persons, their present and potential contributions to the success
      of
      the Company or an Affiliate and such other factors as the Board shall deem
      relevant in connection with accomplishing the purpose of the Plan. 

    

    6. TERMS
      AND
      CONDITIONS OF OPTIONS.

    

    Each
      Option granted pursuant to the Plan shall be evidenced by a written Agreement
      between the Company and the Grantee, which Agreement shall comply with and
      be
      subject to the following terms and conditions (and with such other terms and
      conditions not inconsistent with the terms of this Plan as the Board, in its
      discretion, shall establish):

    

    (a)
       NUMBER
      OF
      SHARES. Each Agreement shall state the number of shares of Stock to which the
      Option relates.

    

       (b)
       TYPE
      OF
      OPTION. Each Agreement shall specifically state whether the Option constitutes
      an Incentive Stock Option or a Nonqualified Stock Option.

    

       (c)
       OPTION
      PRICE. Each Agreement shall state the Option Price, which shall not be less
      than
      one hundred percent (100%) of the Fair Market Value of the shares of Stock
      of
      the Company on the date of grant of the Option. The Option Price shall be
      subject to adjustment as provided in Section
      4.2
      and
Section
      6(i)
      hereof.
      The date on which the Board adopts a resolution expressly granting an Option
      shall be considered the day on which such Option is granted, unless such
      resolution expressly provides for a specific later date.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    (d)
       MEDIUM
      AND TIME OF PAYMENT. The Option Price shall be paid in full, at the time of
      exercise, (i)
      in
      cash,
(ii)
      in
      shares of Stock having a Fair Market Value equal to such Option Price, (iii)
      in
      a combination of cash and shares, (iv) in the sole discretion of the Board,
      through a cashless exercise procedure implemented by the Company in connection
      with the Plan (e.g., by reducing the number of shares
      of
      Stock otherwise deliverable to the Grantee upon exercise of the
      Option)
      or (v)
by
      such
      other consideration as may be approved by the Board from time to
      time;
      provided,
      however,
      that
      such method and time for payment shall be permitted by and be in compliance
      with
      applicable law. 

    

    (e)
       TERM
      AND
      EXERCISE OF OPTIONS. Except as provided in Section
      6(i)
      hereof
      or unless otherwise determined by the Board, the shares of Stock covered by
      an
      Option shall become exercisable over such period, in cumulative installments
      or
      otherwise, or upon the satisfaction of such performance goals or other
      conditions, as the Board shall determine; provided,
      however,
      that
      the Board shall have the authority to accelerate the exercisability of all
      or
      any portion of any outstanding Option at such time and under such circumstances
      as it, in its sole discretion, deems appropriate; and further, provided,
      however, that such exercise period shall not exceed ten (10) years from the
      date
      of grant of such Option. The exercise period shall be subject to earlier
      termination as provided in Sections
      6(f)
      and
Section
      6(g)
      hereof.
      An Option may be exercised, as to any or all full shares of Stock as to which
      the Option has become exercisable, by giving written notice of such exercise to
      the Board.

    

    (f)
       TERMINATION.
      Except as provided in this Section
      6(f)
      and in
Section
      6(g)
      hereof,
      an Option may not be exercised unless the Grantee is then in the Service of
      a
      Participating Company, and unless the Grantee has remained continuously in
      such
      Service since the date of grant of the Option. In
      the
      event that the Service of a Grantee shall terminate other than by reason of
      death, Disability, Resignation or Retirement, all Options theretofore granted
      to
      such Grantee that are exercisable at the time of such termination may, to the
      extent not theretofore exercised or canceled, be exercised at any time within
      the earlier of when the Options expire pursuant to Section
      6(e)
      hereof
      and three (3) months after such termination of Service, as applicable;
provided,
      however,
      that
      the Board may in its discretion extend the period for exercise of such Options
      to a date later than three (3) months after such termination date, but in any
      event not beyond the date on which the Option would otherwise expire pursuant
      to
Section
      6(e)
      hereof;
      notwithstanding the foregoing, if the Service of a Grantee shall terminate
      for
      Cause, all Options theretofore granted to such Grantee shall, to the extent
      not
      theretofore exercised, terminate immediately
      upon such termination
      of
      Service.

    

       (g)
       DEATH,
      DISABILITY, RESIGNATION, OR RETIREMENT OF OPTIONEE. If a Grantee shall die
      while
      in Service to a Participating Company, or if the Grantee’s Service shall
      terminate by reason of Disability, Resignation or Retirement, all Options
      theretofore granted to such Grantee, but only to the extent vested and
      exercisable on the date of death or termination, may be exercised by the Grantee
      or by the Grantee’s estate or by a person who acquired the right to exercise
      such Option by bequest or inheritance or otherwise by reason of the death or
      Disability of the Grantee, at any time within one (1) year after the date of
      death or termination by reason of Disability, Resignation or Retirement, or
      at
      such later time as the Board may in its discretion determine, but in any event
      not beyond the date on which the Option would otherwise expire pursuant to
      Section
      6(e)
      hereof.
      There shall be no further vesting of any Options on and after the date of
      Grantee’s death or the date of termination of Grantee’s Service by reason of
      Disability, Resignation or Retirement.

    

    (h)
       NONTRANSFERABILITY
      OF OPTIONS. Options granted under the Plan shall not be transferable except
      (i)
      by will or the laws of descent and distribution, or (ii) as specifically
      provided below in this Section
      (6)(h).
      Any
      Grantee may transfer Options to members of his or her Immediate Family (as
      defined below) if (i) the Agreement pursuant to which the Option was granted
      so
      provides, (ii) such Agreement was approved by the Board, and (iii) the Grantee
      does not receive any consideration for the transfer. “Immediate
      Family”
means
      children, grandchildren, and spouse of the Grantee or one or more trusts for
      the
      benefit of such family members or partnerships in which such family members
      are
      the only partners. Any Option Agreement may be amended to provide for the
      transferability feature as outlined above, provided that such amendment is
      approved by the Board. Any Option not granted pursuant to an Agreement expressly
      permitting its transfer shall not be transferable. During the lifetime of the
      Grantee, Options may be exercised only by the Grantee, the guardian or legal
      representative of the Grantee, or the transferee as permitted under this Section
      6(h). The Board may also in its discretion impose such other restrictions and
      conditions on Options granted as it deems appropriate, including, without
      limitation, the imposition of provisions that will result in forfeiture of
      Options (or gains realized by a Grantee) in the event the Grantee breaches
      covenants relating to non-competition, confidentiality and non-solicitation
      of
      employees and customers. 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (i)
       EFFECT
      OF
      CERTAIN CHANGES. (i) If there is any change in the shares of Stock through
      the
      declaration of stock dividends, distributions made with respect to shares of
      Stock, recapitalizations, restructurings, stock splits, or combinations or
      exchanges of such shares, or the like, then the number of shares of Stock or
      other securities available for Options, the kind and amount of shares and other
      securities covered by outstanding Options, and/or the Option Price, as
      appropriate, shall be adjusted as necessary to reflect equitably such change
      in
      the shares of Stock; provided, however, that any fractional shares resulting
      from such adjustment shall be eliminated.

    

        (ii)
       In
      the
      event of a change in Stock as presently constituted which is limited to a change
      of all of the Company’s authorized shares with par value into the same number of
      shares with a different par value or without par value, the shares resulting
      from any such change shall be deemed to be the Stock within the meaning of
      the
      Plan.

    

    (iii)
       The
      foregoing adjustments shall be made by the Board, whose determination in that
      respect shall be final, binding and conclusive.

    

    (iv)
       Except
      as
      hereinbefore expressly provided in this Section 6(i), the Grantee shall have
      no
      rights by reason of any subdivision or consolidation of shares of stock of
      any
      class or the payment of any stock dividend or any other increase or decrease
      in
      the number of shares of stock of any class or by reason of any dissolution,
      liquidation, merger, or consolidation or spin-off of assets or stock of another
      corporation; and any issue by the Company of shares of stock of any class,
      or
      securities convertible into shares of stock of any class, shall not affect,
      and
      no adjustment by reason thereof shall be made with respect to, the number or
      price of shares of Stock subject to the Option. The grant of an Option pursuant
      to the Plan shall not affect in any way the right or power of the Company to
      make adjustments, reclassifications, reorganizations or changes of its capital
      or business structures or to merge or to consolidate or to dissolve, liquidate
      or sell, or transfer all or part of its business or assets.

    

    (j)
       METHOD
      OF
      EXERCISE. An
      Option
      that is exercisable may be exercised by the Grantee’s delivery to the Company of
      written notice of exercise on any business day, at the Company’s principal
      office, on the form specified by the Company. Such notice shall specify the
      number of shares of Stock with respect to which the Option is being exercised
      and shall be accompanied by payment in full of the Option Price of the shares
      for which the Option is being exercised.

    

    (k)
       RIGHTS
      AS
      A SHAREHOLDER. A Grantee or a transferee of an Option shall have no rights
      as a
      shareholder with respect to any shares of Stock covered by the Option until
      the
      date of the issuance of a stock certificate for such shares. No adjustment
      shall
      be made for dividends (ordinary or extraordinary, whether in cash, securities
      or
      other property) or distribution of other rights for which the record date is
      prior to the date such stock certificate is issued, except as provided in
      Section 6(i) hereof.

    

    (l)
       OTHER
      PROVISIONS. The Agreements authorized under the Plan may contain such other
      provisions, including without limitation the imposition of (i) restrictions
      upon
      the exercise of an Option and (ii) provisions that will result in the forfeiture
      of an Option and/or the shares acquired thereunder in the event the Grantee
      breaches covenants relating to non-competition, confidentiality and
      non-solicitation of employees and customers, as the Board shall deem
      advisable.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    7. TERMS
      AND
      CONDITIONS OF RESTRICTED SHARES.

    

    Each
      Restricted Share granted under the Plan shall be evidenced by a written
      Restricted Share Agreement between the Company and the Grantee, which Agreement
      shall comply with, and be subject to, the following terms and conditions (and
      with such other terms and conditions not inconsistent with the terms of this
      Plan as the Board, in its discretion, shall establish):

    

    (a)
       NUMBER
      OF
      SHARES AND UNITS. The Board shall determine the number of Restricted Shares
      to
      be awarded to a Grantee pursuant to a Restricted Share Award.

    

    (b)
       NONTRANSFERABILITY.
      Except as set forth in subsections (f) and (g) of this Section 7, a Grantee
      may
      not sell, assign, transfer, pledge, hypothecate or otherwise dispose of any
      Restricted Shares awarded to said Grantee under this Plan, nor may such
      Restricted Shares be made subject to execution, attachment or similar process
      or
      otherwise be disposed of, whether by operation of law or otherwise, until the
      Restricted Period (as defined below) shall have elapsed. The Board may also
      in
      its discretion impose such other restrictions and conditions on Restricted
      Shares awarded as it deems appropriate, including, without limitation, the
      imposition of provisions that will result in the forfeiture of Restricted Shares
      (or gains realized by a Grantee) in the event the Grantee breaches covenants
      relating to non-competition, confidentiality and non-solicitation of employees
      and customers. In determining the Restricted Period of an Award, the Board
      may
      provide that the restrictions shall lapse with respect to specified percentages
      of the awarded units on successive anniversaries of the date of such Award
      or
      upon the satisfaction of such other conditions as the Board may impose. In
      no
      event shall the Restricted Period end with respect to a Restricted Share Award
      prior to the satisfaction by the Grantee of any liability arising under
Section
      10
      hereof.
      Any attempt to dispose of any Restricted Shares in contravention of any such
      restrictions shall be null and void and without effect. The period during which
      such restrictions on transfer, and such other restrictions as the Board may
      impose, are in effect is referred to as the “Restricted
      Period.”

    

    (c)
       CERTIFICATES
      REPRESENTING RESTRICTED SHARES. Upon
      the
      expiration or termination of the Restricted Period and the satisfaction of
      any
      other conditions prescribed by the Board, the restrictions applicable to
      Restricted Shares shall lapse, and, unless otherwise provided in the Agreement,
      a stock certificate for the shares of Stock covered by such Restricted Shares
      shall be delivered, free of all such restrictions, to the Grantee or the
      Beneficiary, as the case may be.

    

    (d)
       TERMINATION.
      If the Grantee’s continuous Service with a Participating Company shall terminate
      for any reason prior to the expiration of the Restricted Period applicable
      to
      any Restricted Shares granted to such Grantee, or prior to the satisfaction
      of
      any other conditions established by the Board applicable to such Award, any
      such
      Restricted Shares then remaining subject to restrictions (after taking into
      account the provisions of subsections (f) and (g) of this Section 7) shall
      thereupon be forfeited by the Grantee. Units forfeited pursuant to the preceding
      sentence shall be transferred to, and cancelled by, the Company without payment
      of any consideration by the Company, and neither the Grantee nor any of the
      Grantee’s successors, heirs, assigns or personal representatives shall
      thereafter have any rights or interests in such Units.

    

    (e)
       RIGHTS
      AS
      A SHAREHOLDER. A Grantee or a transferee of a Restricted Share shall have no
      rights of shareholder with respect to any shares of Stock covered by the
      Restricted Share until the date of the issuance of a stock certificate for
      such
      shares. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    (f)
       EFFECT
      OF
      CERTAIN CHANGES. The number of Restricted Shares subject to a Grant shall be
      appropriately adjusted by the Board in the event of any change in the shares
      of
      the Stock set forth in Section 6(i)(1). 

    

    (g)
       OTHER
      PROVISIONS. The Board shall have the authority (and the Restricted Share
      Agreement may so provide) to cancel all or any portion of any outstanding
      restrictions and conditions prior to the expiration of the Restricted Period
      with respect to all or part of a Restricted Stock Unit Award on such terms
      and
      conditions as the Board may deem appropriate. The Restricted Share Agreements
      authorized under this Plan shall contain such other provisions not inconsistent
      with the terms hereof as the Board shall deem advisable.

    

    8. CHANGE
      IN
      CONTROL. 

    

    In
      the
      event of a Change in Control, the surviving, continuing, successor, or
      purchasing corporation or other business entity or parent thereof, as the case
      may be (the “Acquiring
      Corporation”),
      may,
      without the consent of any Participant, either assume the Company’s rights and
      obligations under outstanding Options or Restricted Shares or substitute for
      such outstanding Options or Restricted Shares substantially equivalent options
      or restricted shares for, or in relation to, the Acquiring Corporation’s
      stock.

    

    9.  CODE
      SECTION 409A.

    

    Except
      as
      may be expressly provided with respect to any Award granted under the Plan,
      the
      Plan and the Awards are intended to be exempt from the application of Code
      Section 409A. To the extent that the Plan and/or Awards are nevertheless
      deemed to be subject to Code Section 409A, the Plan and Awards shall be
      interpreted in accordance with Code Section 409A and United States
      Department of the Treasury regulations and other interpretive guidance issued
      thereunder, including without limitation any such regulations or other guidance
      that may be issued after the grant of any Award. Notwithstanding any provision
      of the Plan or any Award to the contrary, in the event that the Board determines
      that any Award may be or become subject to Code Section 409A, the Board may
      adopt such amendments to the Plan and the affected Award (as described above)
      or
      adopt other policies and procedures (including amendments, policies and
      procedures with retroactive effect), or take any other actions, that the Board
      determines are necessary or appropriate to (a) exempt the Plan and any
      Award from the application of Code Section 409A and/or preserve the
      intended tax treatment of the benefits provided with respect to the Award,
      or
      (b) comply with the requirements of Code Section 409A. 

    

    10.  WITHHOLDING
      TAXES.

     

    When
      a
      Grantee or other person becomes entitled to receive shares of Stock pursuant
      to
      the exercise of an Option or with respect to a Restricted Share upon the lapse
      of restrictions relating thereto, the Company shall have the right to require
      the Grantee or such other person to remit to the Company an amount sufficient
      to
      satisfy any federal, state and local withholding tax requirements related
      thereto. Unless otherwise prohibited by the Board or by applicable law,
      satisfaction of the withholding tax obligation may be accomplished by any of
      the
      following methods or by a combination of such methods: (a) tendering a cash
      payment, and (b) authorizing the Company to withhold from the shares of Stock
      otherwise payable one or more of such shares having an aggregate Fair Market
      Value, determined as of the date the withholding tax obligation arises, less
      than or equal to the amount of the total withholding tax
      obligation.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    11. AMENDMENT
      AND TERMINATION OF THE PLAN. 

    

    The
      Board
      may, at any time and from time to time, suspend, terminate, modify or amend
      the
      Plan. Except as provided in Section
      6
      and
Section
      7
      hereof,
      no suspension, termination, modification or amendment of the Plan may adversely
      affect any Award previously made, unless the written consent of the Grantee
      is
      obtained.

    

    12. EFFECTIVE
      DATE; TERM
      OF
      PLAN. 

    

    The
      Plan
      shall take effect on August 28, 2006, the date of its adoption by the
      Board. Unless
      terminated earlier by the Board, the term of this Plan shall be ten (10) years
      from the date the Plan was adopted. No Award shall be granted pursuant to this
      Plan later than August 28, 2016, but Awards theretofore granted may extend
      beyond that date in accordance with their terms.

    

    13. MISCELLANEOUS
      PROVISIONS.

    

    13.1 NO
      RIGHT
      TO CONTINUED EMPLOYMENT. Nothing contained herein shall be deemed to give any
      person any right to employment by the Company or by a Participating Company,
      or
      to interfere with the right of the Company or a Participating Company to
      discharge any person at any time without regard to the effect that such
      discharge will have upon such person’s rights or potential rights, if any, under
      the Plan. The provisions of the Plan are in addition to, and not a limitation
      on, any rights a Participant may have against the Company or a Participating
      Company by reason of any employment or other agreement with the Company or
      a
      Participating Company.

    

    13.2 COMPLIANCE
      WITH LEGAL REQUIREMENTS. The Plan and the other obligations of the Company
      under
      the Plan and any Agreement shall be subject to all applicable federal and state
      laws, rules and regulations, and to such approvals by any regulatory or
      governmental agency as may be required. The Company, in its discretion, may
      postpone the issuance or delivery of Stock under any Award as the Company may
      consider appropriate, and may require any Grantee to make such representations
      and furnish such information as it may consider appropriate in connection with
      the issuance or delivery of Stock in compliance with applicable laws, rules
      and
      regulations.

    

    13.3 SEVERABILITY.
      If any provision of this Plan is held to be illegal or invalid for any reason,
      the remaining provisions are to remain in full force and effect and are to
      be
      construed and enforced in accordance with the purposes of the Plan as if the
      illegal or invalid provision or provisions did not exist.

    

    13.4 GOVERNING
      LAW. The
      Plan
      shall be construed and administered in accordance with the laws of the state
      of
      Nevada without regard to its principles of conflicts of law.

    

    

    11

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