Document:

Exhibit 4.1

    Exhibit
      4.1

    

    

    

    

    

    

    

    

    

    

    

    2005
      Incentive Compensation Plan

    =================================

    

    FRONTIER
      STAFFING, INC.

    

    2005
      INCENTIVE COMPENSATION PLAN

    

    =================================

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FRONTIER
      STAFFING, INC.

    2005
      INCENTIVE COMPENSATION PLAN

    
      	
              1.
                Purpose 

            	
              1
                

            
	
              2.
                Definitions

            	
              1
                

            
	
              3.
                Administration

            	
              6
                

            
	
                  (a)
                Authority of the Committee

            	
              6
                

            
	
                  (b)
                Manner of Exercise of Committee Authority

            	
              6
                

            
	
                  (c)
                Limitation of Liability

            	
              6
                

            
	
              4.
                Shares Subject to Plan

            	
              7
                

            
	
                  (a)
                Limitation on Overall Number of Shares Available for Delivery Under
                Plan

            	7
	
                  (b)
                Application of Limitation to Grants of Award

            	
              7
                

            
	
                  (c)
                Availability of Shares Not Delivered under Awards and Adjustments
                to Limits

            	7
	
                  (d)
                No
                Further Awards Under Prior Plan

            	
              8
                

            
	
              5.
                Eligibility; Per-Person Award Limitations

            	
              8
                

            
	
              6.
                Specific Terms of Awards

            	
              8
                

            
	
                  (a)
                General

            	
              8
                

            
	
                  (b)
                Options

            	
              8
                

            
	
                  (c)
                Stock Appreciation Rights

            	
              10
                

            
	
                  (d)
                Restricted Stock Awards

            	
              11
                

            
	
                  (e)
                Deferred Stock Award

            	
              12
                

            
	
                  (f)
                Bonus Stock and Awards in Lieu of Obligations

            	
              13
                

            
	
                  (g)
                Dividend Equivalents

            	
              13
                

            
	
                  (h)
                Performance Awards

            	
              13
                

            
	
                  (i)
                Other Stock-Based Awards

            	
              14
                

            
	
              7.
                Certain Provisions Applicable to Awards.

            	
              14
                

            
	
                  (a)
                Stand-Alone, Additional, Tandem, and Substitute Awards

            	
              14
                

            
	
                  (b)
                Term of Awards.

            	
              15
                

            
	
                  (c)
                Form and Timing of Payment Under Awards; Deferrals.

            	
              15
                

            
	
                  (d)
                Exemptions from Section 16(b) Liability

            	
              15
                

            
	
              8.
                Code Section 162(m) Provisions

            	
              15
                

            
	
                  (a)
                Covered Employees

            	
              15
                

            
	
                  (b)
                Performance Criteria

            	
              15
                

            
	
                  (c)
                Performance Period; Timing for Establishing Performance
                Goals

            	
              16
                

            
	
                  (d)
                Adjustments

            	
              16
                

            
	
                  (e)
                Committee Certification

            	
              16
                

            
	
              9.
                Change in Control

            	
              16
                

            
	
                  (a)
                Effect of Change in Control

            	
              16
                

            
	
                  (b)
                Definition of Change in Control

            	
              17
                

            
	
              10.
                General Provisions

            	
              19
                

            
	
                  (a)
                Compliance With Legal and Other Requirements.

            	
              19
                

            
	
                  (b)
                Limits on Transferability; Beneficiaries 

            	
              19
                

            
	
                  (c)
                Adjustments .

            	
              19
                

            
	
                  (d)
                Taxes 

            	
              20
                

            
	
                  (e)
                Changes to the Plan and Awards 

            	
              21
                

            
	
                  (f)
                Limitation on Rights Conferred Under Plan 

            	
              21
                

            
	
                  (g)
                Unfunded Status of Awards; Creation of Trusts 

            	
              21
                

            
	
                  (h)
                Nonexclusivity of the Plan 

            	
              21
                

            
	
                  (i)
                Payments in the Event of Forfeitures; Fractional Shares 

            	
              22
                

            
	
                  (j)
                Governing Law 

            	
              22
                

            
	
                  (k)
                Non-U.S. Laws 

            	
              22
                

            
	
                  (l)
                Plan Effective Date and Shareholder Approval; Termination of
                Plan 

            	22
              

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    FRONTIER
      STAFFING, INC.

    

    2005
      INCENTIVE COMPENSATION PLAN

    

    

    

    1.
       Purpose.

    

    The
      purpose of this 2005 INCENTIVE COMPENSATION PLAN (the "Plan") is to assist
      FRONTIER STAFFING, INC., a Nevada corporation (the "Company") and its Related
      Entities (as hereinafter defined) in attracting, motivating, retaining and
      rewarding high-quality executives and other employees, officers, directors,
      consultants and other persons who provide services to the Company or its Related
      Entities by enabling such persons to acquire or increase a proprietary interest
      in the Company in order to strengthen the mutuality of interests between such
      persons and the Company's shareholders, and providing such persons with
      performance incentives to expend their maximum efforts in the creation of
      shareholder value.

    

    2.
       Definitions.

    

    For
      purposes of the Plan, the following terms shall be defined as set forth below,
      in addition to such terms defined in Section 1 hereof. 

    

    (a)
      "Award" means any Option, Stock Appreciation Right, Restricted Stock Award,
      Deferred Stock Award, Share granted as a bonus or in lieu of another award,
      Dividend Equivalent, Other Stock-Based Award or Performance Award, together
      with
      any other right or interest, granted to a Participant under the
      Plan.

    

    (b)
      "Award Agreement" means any written agreement, contract or other instrument
      or
      document evidencing any Award granted by the Committee hereunder.

    

    (c)
      "Beneficiary" means the person, persons, trust or trusts that have been
      designated by a Participant in his or her most recent written beneficiary
      designation filed with the Committee to receive the benefits specified under
      the
      Plan upon such Participant's death or to which Awards or other rights are
      transferred if and to the extent permitted under Section 10(b) hereof. If,
      upon
      a Participant's death, there is no designated Beneficiary or surviving
      designated Beneficiary, then the term Beneficiary means the person, persons,
      trust or trusts entitled by will or the laws of descent and distribution to
      receive such benefits. 

    

    (d)
      "Beneficial Owner" shall have the meaning ascribed to such term in Rule 13d-3
      under the Exchange Act and any successor to such Rule. 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    (e)
      "Board" means the Company's Board of Directors.

     

    (f)
      "Cause" shall, with respect to any Participant have the meaning specified in
      the
      Award Agreement. In the absence of any definition in the Award Agreement,
      "Cause" shall have the equivalent meaning or the same meaning as "cause" or
      "for
      cause" set forth in any employment, consulting, or other agreement for the
      performance of services between the Participant and the Company or a Related
      Entity or, in the absence of any such agreement or any such definition in such
      agreement, such term shall mean (i) the failure by the Participant to perform,
      in a reasonable manner, his or her duties as assigned by the Company or a
      Related Entity, (ii) any violation or breach by the Participant of his or her
      employment, consulting or other similar agreement with the Company or a Related
      Entity, if any, (iii) any violation or breach by the Participant of any
      non-competition, non-solicitation, non-disclosure and/or other similar agreement
      with the Company or a Related Entity, (iv) any act by the Participant of
      dishonesty or bad faith with respect to the Company or a Related Entity, (v)
      use
      of alcohol, drugs or other similar substances in a manner that adversely affects
      the Participant's work performance, or (vi) the commission by the Participant
      of
      any act, misdemeanor, or crime reflecting unfavorably upon the Participant
      or
      the Company or any Related Entity. The good faith determination by the committee
      of whether the Participant's Continuous Service was terminated by the Company
      for "Cause" shall be final and binding for all purposes hereunder.

    

    (g)
      "Change in Control" means a Change in Control as defined with related terms
      in
      Section 9(b) of the Plan.

    

    (h)
      "Code" means the Internal Revenue Code of 1986, as amended from time to time,
      including regulations thereunder and successor provisions and regulations
      thereto.

    

    (i)
      "Committee" means a committee designated by the Board to administer the Plan;
      provided, however, that if the Board fails to designate a committee or if there
      are no longer any members on the committee so designated by the Board, then
      the
      Board shall serve as the Committee. The Committee shall consist of at least
      two
      directors, and each member of the Committee shall be (i)a "non-employee
      director" within the meaning of Rule 16b-3 (or any successor rule) under the
      Exchange Act, unless administration of the Plan by "non-employee directors"
      is
      not then required in order for exemptions under Rule 16b-3 to apply to
      transactions under the Plan, (ii) an "outside director" within the meaning
      of
      Section 162(m) of the Code, and (iii) "Independent."

    

    (j)
      "Consultant" means any person (other than an Employee or a Director, solely
      with
      respect to rendering services in such person's capacity as a director) who
      is
      engaged by the Company or any Related Entity to render consulting or advisory
      services to the Company or such Related Entity.

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (k)
      "Continuous Service" means the uninterrupted provision of services to the
      Company or any Related Entity in any capacity of Employee, Director, Consultant
      or other service provider. Continuous Service shall not be considered to be
      interrupted in the case of (i) any approved leave of absence, (ii) transfers
      among the Company, any Related Entities, or any successor entities, in any
      capacity of Employee, Director, Consultant or other service provider, or (iii)
      any change in status as long as the individual remains in the service of the
      Company or a Related Entity in any capacity of Employee, Director, Consultant
      or
      other service provider (except as otherwise provided in the Award Agreement).
      An
      approved leave of absence shall include sick leave, military leave, or any
      other
      authorized personal leave.

    

    (l)
      "Covered Employee" means an Eligible Person who is a "covered employee" within
      the meaning of Section 162(m)(3) of the Code, or any successor provision
      thereto.

    

    (m)
      "Deferred Stock" means a right to receive Shares, including Restricted Stock,
      cash or a combination thereof, at the end of a specified deferral
      period.

    

    (n)
      "Deferred Stock Award" means an Award of Deferred Stock granted to a Participant
      under Section 6(e) hereof.

    

    (o)
      "Director" means a member of the Board or the board of directors of any Related
      Entity.

    

    (p)
      "Disability" means a permanent and total disability (within the meaning of
      Section 22(e) of the Code), as determined by a medical doctor satisfactory
      to
      the Committee.

    

    (q)
      "Discounted Option" means any Option awarded under Section 6(b) hereof with
      an
      exercise price that is less than the Fair Market Value of a Share on the date
      of
      grant.

    

    (r)
      "Discounted Stock Appreciation Right" means any Stock Appreciation Right awarded
      under Section 6(c) hereof with an exercise price that is less than the Fair
      Market Value of a Share on the date of grant. 

    

    (s)
      "Dividend Equivalent" means a right, granted to a Participant under Section
      6(g)
      hereof, to receive cash, Shares, other Awards or other property equal in value
      to dividends paid with respect to a specified number of Shares, or other
      periodic payments.

    

    (t)
      "Effective Date" means the effective date of the Plan, which shall be June
      20,
      2005.

    

    (u)
      "Eligible Person" means each officer, Director, Employee, Consultant and other
      person who provides services to the Company or any Related Entity. The foregoing
      notwithstanding, only employees of the Company, or any parent corporation or
      subsidiary corporation of the Company (as those terms are defined in Sections
      424(e) and (f) of the Code, respectively), shall be Eligible Persons for
      purposes of receiving any Incentive Stock Options. An Employee on leave of
      absence may be considered as still in the employ of the Company or a Related
      Entity for purposes of eligibility for participation in the
      Plan.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (v)
      "Employee" means any person, including an officer or Director, who is an
      employee of the Company or any Related Entity. The payment of a director's
      fee
      by the Company or a Related Entity shall not be sufficient to constitute
      "employment" by the Company.

    

    (w)
      "Exchange Act" means the Securities Exchange Act of 1934, as amended from time
      to time, including rules thereunder and successor provisions and rules
      thereto.

    

    (x)
      "Executive Committee" means the Executive Committee of the Board. 

    

    (y)
      "Fair
      Market Value" means the fair market value of Shares, Awards or other property
      as
      determined by the Committee, or under procedures established by the Committee.
      Unless otherwise determined by the Committee, the Fair Market Value of a Share
      as of any given date shall be the closing sale price per Share reported on
      a
      consolidated basis for stock listed on the principal stock exchange or market
      on
      which Shares are traded on the date as of which such value is being determined
      or, if there is no sale on that date, then on the last previous day on which
      a
      sale was reported. 

    

    (z)
      "Good
      Reason" shall, with respect to any Participant, have the meaning specified
      in
      the Award Agreement. In the absence of any definition in the Award Agreement,
      "Good Reason" shall have the equivalent meaning or the same meaning as "good
      reason" or "for good reason" set forth in any employment, consulting or other
      agreement for the performance of services between the Participant and the
      Company or a Related Entity or, in the absence of any such agreement or any
      such
      definition in such agreement, such term shall mean (i) the assignment to the
      Participant of any duties inconsistent in any material respect with the
      Participant's position, authority, duties or responsibilities as assigned by
      the
      Company or a Related Entity, or any other action by the Company or a Related
      Entity which results in a material diminution in such position, authority,
      duties or responsibilities, excluding for this purpose any action not taken
      in
      bad faith and which is remedied by the Company or a Related Entity promptly
      after receipt of notice thereof given by the Participant; or (ii) any material
      failure by the Company or a Related Entity to comply with its obligations to
      the
      Participant as agreed upon, other than any failure not occurring in bad faith
      and which is remedied by the Company or a Related Entity promptly after receipt
      of notice thereof given by the Participant. 

    

    (aa)
      "Incentive Stock Option" means any Option intended to be designated as an
      incentive stock option within the meaning of Section 422 of the Code or any
      successor provision thereto.

    

    (bb)
      "Independent," when referring to either the Board or members of the Committee,
      shall have the same meaning as used in the rules of the Nasdaq Stock Market
      or
      any national securities exchange on which any securities of the Company are
      listed for trading, and if not listed for trading, by the rules of the Nasdaq
      Stock Market.

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (cc)
      "Incumbent Board" means the Incumbent Board as defined in Section 9(b)(ii)
      of
      the Plan.

    

    (dd)
      "Option" means a right granted to a Participant under Section 6(b) hereof,
      to
      purchase Shares or other Awards at a specified price during specified time
      periods.

    

    (ee)
      "Optionee" means a person to whom an Option is granted under this Plan or any
      person who succeeds to the rights of such person under this Plan.

    

    (ff)
      "Option Proceeds" means the cash actually received by the Company for the
      exercise price in connection with the exercise of Options that are exercised
      after the Effective Date of the Plan, plus the maximum tax benefit that could
      be
      realized by the Company as a result of the exercise of such Options, which
      tax
      benefit shall be determined by multiplying (i) the amount that is deductible
      for
      Federal income tax purposes as a result of any such option exercise (currently,
      equal to the amount upon which the Participant's withholding tax obligation
      is
      calculated), times (ii) the maximum Federal corporate income tax rate for the
      year of exercise. With respect to Options, to the extent that a Participant
      pays
      the exercise price and/or withholding taxes with Shares, Option Proceeds shall
      not be calculated with respect to the amounts so paid in Shares. 

    

    (gg)
      "Other Stock-Based Awards" means Awards granted to a Participant under Section
      6(i) hereof.

    

    (hh)
      "Outside Director" means a member of the Board who is not an
      Employee.

    

    (ii)
      "Participant" means a person who has been granted an Award under the Plan which
      remains outstanding, including a person who is no longer an Eligible
      Person.

    

    (jj)
      "Performance Award" shall mean any Award of Performance Shares or Performance
      Units granted pursuant to Section 6(h).

    

    (kk)
      "Performance Period" means that period established by the Committee at the
      time
      any Performance Award is granted or at any time thereafter during which any
      performance goals specified by the Committee with respect to such Award are
      to
      be measured.

    

    (ll)
      "Performance Share" means any grant pursuant to Section 6(h) of a unit valued
      by
      reference to a designated number of Shares, which value may be paid to the
      Participant by delivery of such property as the Committee shall determine,
      including cash, Shares, other property, or any combination thereof, upon
      achievement of such performance goals during the Performance Period as the
      Committee shall establish at the time of such grant or
      thereafter.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (mm)
      "Performance Unit" means any grant pursuant to Section 6(h) of a unit valued
      by
      reference to a designated amount of property (including cash) other than Shares,
      which value may be paid to the Participant by delivery of such property as
      the
      Committee shall determine, including cash, Shares, other property, or any
      combination thereof, upon achievement of such performance goals during the
      Performance Period as the Committee shall establish at the time of such grant
      or
      thereafter.

    

    (nn)
      "Person" shall have the meaning ascribed to such term in Section 3(a)(9) of
      the
      Exchange Act and used in Sections 13(d) and 14(d) thereof, and shall include
      a
      "group" as defined in Section 13(d) thereof. 

    

    (oo)
      "Prior Plan" means any prior plan.

    

    (pp)
      "Related Entity" means any Subsidiary, and any business, corporation,
      partnership, limited liability company or other entity designated by Board
      in
      which the Company or a Subsidiary holds a substantial ownership interest,
      directly or indirectly. 

    

    (qq)
      "Restricted Stock" means any Share issued with the restriction that the holder
      may not sell, transfer, pledge or assign such Share and with such risks of
      forfeiture and other restrictions as the Committee, in its sole discretion,
      may
      impose (including any restriction on the right to vote such Share and the right
      to receive any dividends), which restrictions may lapse separately or in
      combination at such time or times, in installments or otherwise, as the
      Committee may deem appropriate. 

    

    (rr)
      "Restricted Stock Award" means an Award granted to a Participant under Section
      6(d) hereof.

    

    (ss)
      "Rule 16b-3" means Rule 16b-3, as from time to time in effect and applicable
      to
      the Plan and Participants, promulgated by the Securities and Exchange Commission
      under Section 16 of the Exchange Act. 

    

    (tt)
      "Shareholder Approval Date" means the date on which this Plan is approved
      shareholders of the Company eligible to vote in the election of directors,
      by a
      vote sufficient to meet the requirements of Code Sections 162(m) (if applicable)
      and 422, Rule 16b-3 under the Exchange Act (if applicable), applicable
      requirements under the rules of any stock exchange or automated quotation system
      on which the Shares may be listed on quoted, and other laws, regulations and
      obligations of the Company applicable to the Plan.

    

    (uu)
      "Shares" means the shares of common stock of the Company, par value $.001 per
      share, and such other securities as may be substituted (or resubstituted) for
      Shares pursuant to Section 10(c) hereof. 

    

    (vv)
      "Stock Appreciation Right" means a right granted to a Participant under Section
      6(c) hereof.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (ww)
      "Subsidiary" means any corporation or other entity in which the Company has
      a
      direct or indirect ownership interest of 50% or more of the total combined
      voting power of the then outstanding securities or interests of such corporation
      or other entity entitled to vote generally in the election of directors or
      in
      which the Company has the right to receive 50% or more of the distribution
      of
      profits or 50% or more of the assets on liquidation or dissolution.

    

    (xx)
      "Substitute Awards" shall mean Awards granted or Shares issued by the Company
      in
      assumption of, or in substitution or exchange for, awards previously granted,
      or
      the right or obligation to make future awards, by a company acquired by the
      Company or any Related Entity or with which the Company or any Related Entity
      combines.

    

    3.
       Administration.

    

    (a)
      Authority of the Committee. The Plan shall be administered by the Committee,
      except to the extent the Board elects to administer the Plan, in which case
      the
      Plan shall be administered by only those directors who are Independent
      Directors, in which case references herein to the "Committee" shall be deemed
      to
      include references to the Independent members of the Board. The Committee shall
      have full and final authority, subject to and consistent with the provisions
      of
      the Plan, to select Eligible Persons to become Participants, grant Awards,
      determine the type, number and other terms and conditions of, and all other
      matters relating to, Awards, prescribe Award Agreements (which need not be
      identical for each Participant) and rules and regulations for the administration
      of the Plan, construe and interpret the Plan and Award Agreements and correct
      defects, supply omissions or reconcile inconsistencies therein, and to make
      all
      other decisions and determinations as the Committee may deem necessary or
      advisable for the administration of the Plan. In exercising any discretion
      granted to the Committee under the Plan or pursuant to any Award, the Committee
      shall not be required to follow past practices, act in a manner consistent
      with
      past practices, or treat any Eligible Person or Participant in a manner
      consistent with the treatment of other Eligible Persons or
      Participants.

    

    (b)
      Manner of Exercise of Committee Authority. The Committee, and not the Board,
      shall exercise sole and exclusive discretion on any matter relating to a
      Participant then subject to Section 16 of the Exchange Act with respect to
      the
      Company to the extent necessary in order that transactions by such Participant
      shall be exempt under Rule 16b-3 under the Exchange Act. Any action of the
      Committee shall be final, conclusive and binding on all persons, including
      the
      Company, its Related Entities, Participants, Beneficiaries, transferees under
      Section 10(b) hereof or other persons claiming rights from or through a
      Participant, and shareholders. The express grant of any specific power to the
      Committee, and the taking of any action by the Committee, shall not be construed
      as limiting any power or authority of the Committee. The Committee may delegate
      to officers or managers of the Company or any Related Entity, or committees
      thereof, the authority, subject to such terms as the Committee shall determine,
      to perform such functions, including administrative functions as the Committee
      may determine to the extent that such delegation will not result in the loss
      of
      an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject
      to Section 16 of the Exchange Act in respect of the Company and will not cause
      Awards intended to qualify as "performance-based compensation" under Code
      Section 162(m) to fail to so qualify. The Committee may appoint agents to assist
      it in administering the Plan.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (c)
      Limitation of Liability. The Committee and the Board, and each member thereof,
      shall be entitled to, in good faith, rely or act upon any report or other
      information furnished to him or her by any officer or Employee, the Company's
      independent auditors, Consultants or any other agents assisting in the
      administration of the Plan. Members of the Committee and the Board, and any
      officer or Employee acting at the direction or on behalf of the Committee or
      the
      Board, shall not be personally liable for any action or determination taken
      or
      made in good faith with respect to the Plan, and shall, to the extent permitted
      by law, be fully indemnified and protected by the Company with respect to any
      such action or determination.

    

    4.
       Shares
      Subject to Plan.

    

    (a)
      Limitation on Overall Number of Shares Available for Delivery Under Plan.
      Subject to adjustment as provided in Section 10(c) hereof, the total number
      of
      Shares reserved and available for delivery under the Plan shall be 2,400,000.
      Any Shares delivered under the Plan may consist, in whole or in part, of
      authorized and unissued shares or treasury shares. 

    

    (b)
      Application of Limitation to Grants of Award. No Award may be granted if the
      number of Shares to be delivered in connection with such an Award or, in the
      case of an Award relating to Shares but settled only in cash (such as cash-only
      Stock Appreciation Rights), the number of Shares to which such Award relates,
      exceeds the number of Shares remaining available for delivery under the Plan,
      minus the number of Shares deliverable in settlement of or relating to then
      outstanding Awards. The Committee may adopt reasonable counting procedures
      to
      ensure appropriate counting, avoid double counting (as, for example, in the
      case
      of tandem or substitute awards) and make adjustments if the number of Shares
      actually delivered differs from the number of Shares previously counted in
      connection with an Award.

    

    (c)
      Availability of Shares Not Delivered under Awards and Adjustments to
      Limits.

    

    (i)
      If
      any Shares subject to an Award, or any award under the Prior Plan that was
      outstanding on the Effective Date, are forfeited, expire or otherwise terminate
      without issuance of such Shares, or any Award, or any Award under any Prior
      Plan, that was outstanding on the Effective Date, is settled for cash or
      otherwise does not result in the issuance of all or a portion of the Shares
      subject to such Award or award the Shares shall, to the extent of such
      forfeiture, expiration, termination, cash settlement or non-issuance, again
      be
      available for Awards under the Plan, subject to Section 4(c)(v) below.

    

    (ii)
      In
      the event that any Option or other Award granted hereunder, or any Award under
      the Prior Plan that was outstanding on the Effective Date, is exercised through
      the tendering of Shares (either actually or by attestation) or by the
      withholding of Shares by the Company, or withholding tax liabilities arising
      from such option or other award are satisfied by the tendering of Shares (either
      actually or by attestation) or by the withholding of Shares by the Company,
      then
      only the number of Shares issued net of the Shares tendered or withheld shall
      be
      counted for purposes of determining the maximum number of Shares available
      for
      grant under the Plan. 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (iii)
      Shares reacquired by the Company on the open market using Option Proceeds shall
      be available for Awards under the Plan. The increase in Shares available
      pursuant to the repurchase of Shares with Option Proceeds shall not be greater
      than the amount of such proceeds divided by the Fair Market Value of a Share
      on
      the date of exercise of the Option giving rise to such Option
      Proceeds.

    

    (iv)
      Substitute Awards shall not reduce the Shares authorized for grant under the
      Plan or authorized for grant to a Participant in any period. Additionally,
      in
      the event that a company acquired by the Company or any Related Entity or with
      which the Company or any Related Entity combines has shares available under
      a
      pre-existing plan approved by shareholders and not adopted in contemplation
      of
      such acquisition or combination, the shares available for delivery pursuant
      to
      the terms of such pre-existing plan (as adjusted, to the extent appropriate,
      using the exchange ratio or other adjustment or valuation ratio or formula
      used
      in such acquisition or combination to determine the consideration payable to
      the
      holders of common stock of the entities party to such acquisition or
      combination) may be used for Awards under the Plan and shall not reduce the
      Shares authorized for delivery under the Plan; provided that Awards using such
      available shares shall not be made after the date awards or grants could have
      been made under the terms of the pre-existing plan, absent the acquisition
      or
      combination, and shall only be made to individuals who were not Employees or
      Directors prior to such acquisition or combination.

    

    (v)
      Any
      Shares that again become available for delivery pursuant to this Section 4(c)
      shall be added back as one (1) Share. 

    

    (vi)
      Notwithstanding anything in this Section 4(c) to the contrary and solely for
      purposes of determining whether Shares are available for the delivery of
      Incentive Stock Options, the maximum aggregate number of shares that may be
      granted under this Plan shall be determined without regard to any Shares
      restored pursuant to this Section 4(c) that, if taken into account, would cause
      the Plan to fail the requirement under Code Section 422 that the Plan designate
      a maximum aggregate number of shares that may be issued. 

    

    (d)
      No
      Further Awards Under any Prior Plan. In light of the adoption of this Plan,
      no
      further awards shall be made under any Prior Plan after the Effective
      Date.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    5.
       Eligibility;
      Per-Person Award Limitations.

    

    Awards
      may be granted under the Plan only to Eligible Persons. Subject to adjustment
      as
      provided in Section 10(c), in any fiscal year of the Company during any part
      of
      which the Plan is in effect, no Participant may be granted (i) Options or Stock
      Appreciation Rights with respect to more than 45,000 Shares or (ii) Restricted
      Stock, Deferred Stock, Performance Shares and/or Other Stock-Based Awards with
      respect to more than 45,000 Shares. In addition, the maximum dollar value
      payable to any one Participant with respect to Performance Units is (x)
      $5,000,000 with respect to any 12 month Performance Period, and (y) with respect
      to any Performance Period that is more than 12 months, $5,000,000 multiplied
      by
      the number of full years in the Performance Period. 

    

    6.
       Specific
      Terms of Awards.

    

    (a)
      General. Awards may be granted on the terms and conditions set forth in this
      Section 6. In addition, the Committee may impose on any Award or the exercise
      thereof, at the date of grant or thereafter (subject to Section 10(e)), such
      additional terms and conditions, not inconsistent with the provisions of the
      Plan, as the Committee shall determine, including terms requiring forfeiture
      of
      Awards in the event of termination of the Participant's Continuous Service
      and
      terms permitting a Participant to make elections relating to his or her Award.
      The Committee shall retain full power and discretion to accelerate, waive or
      modify, at any time, any term or condition of an Award that is not mandatory
      under the Plan. Except in cases in which the Committee is authorized to require
      other forms of consideration under the Plan, or to the extent other forms of
      consideration must be paid to satisfy the requirements of Nevada law, no
      consideration other than services may be required for the grant (but not the
      exercise) of any Award.

    

    (b)
      Options. The Committee is authorized to grant Options to any Eligible Person
      on
      the following terms and conditions:

    

    (i)
      Exercise Price. Other than in connection with Substitute Awards, the exercise
      price per Share purchasable under an Option shall be determined by the
      Committee, provided that such exercise price shall not, in the case of Incentive
      Stock Options, be less than 100% of the Fair Market Value of a Share on the
      date
      of grant of the Option and shall not, in any event, be less than the par value
      of a Share on the date of grant of the Option. If an Employee owns or is deemed
      to own (by reason of the attribution rules applicable under Section 424(d)
      of
      the Code) more than 10% of the combined voting power of all classes of stock
      of
      the Company (or any parent corporation or subsidiary corporation of the Company,
      as those terms are defined in Sections 424(e) and (f) of the Code, respectively)
      and an Incentive Stock Option is granted to such employee, the exercise price
      of
      such Incentive Stock Option (to the extent required by the Code at the time
      of
      grant) shall be no less than 110% of the Fair Market Value a Share on the date
      such Incentive Stock Option is granted. 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

      (ii)
      Time
      and Method of Exercise. The Committee shall determine the time or times at
      which
      or the circumstances under which an Option may be exercised in whole or in
      part
      (including based on achievement of performance goals and/or future service
      requirements), the time or times at which Options shall cease to be or become
      exercisable following termination of Continuous Service or upon other
      conditions, the methods by which the exercise price may be paid or deemed to
      be
      paid (including in the discretion of the Committee a cashless exercise
      procedure), the form of such payment, including, without limitation, cash,
      Shares, other Awards or awards granted under other plans of the Company or
      a
      Related Entity, or other property (including notes or other contractual
      obligations of Participants to make payment on a deferred basis provided that
      such deferred payments are not in violation of the Sarbanes-Oxley Act of 2002,
      or any rule or regulation adopted thereunder or any other applicable law),
      and
      the methods by or forms in which Shares will be delivered or deemed to be
      delivered to Participants.

    

    (iii)
      Incentive Stock Options. The terms of any Incentive Stock Option granted under
      the Plan shall comply in all respects with the provisions of Section 422 of
      the
      Code. Anything in the Plan to the contrary notwithstanding, no term of the
      Plan
      relating to Incentive Stock Options (including any Stock Appreciation Right
      issued in tandem therewith) shall be interpreted, amended or altered, nor shall
      any discretion or authority granted under the Plan be exercised, so as to
      disqualify either the Plan or any Incentive Stock Option under Section 422
      of
      the Code, unless the Participant has first requested, or consents to, the change
      that will result in such disqualification. Thus, if and to the extent required
      to comply with Section 422 of the Code, Options granted as Incentive Stock
      Options shall be subject to the following special terms and
      conditions:

    

    (A)
      the
      Option shall not be exercisable more than ten years after the date such
      Incentive Stock Option is granted; provided, however, that if a Participant
      owns
      or is deemed to own (by reason of the attribution rules of Section 424(d) of
      the
      Code) more than 10% of the combined voting power of all classes of stock of
      the
      Company (or any parent corporation or subsidiary corporation of the Company,
      as
      those terms are defined in Sections 424(e) and (f) of the Code, respectively)
      and the Incentive Stock Option is granted to such Participant, the term of
      the
      Incentive Stock Option shall be (to the extent required by the Code at the
      time
      of the grant) for no more than five years from the date of grant;
      and

    

    (B)
      The
      aggregate Fair Market Value (determined as of the date the Incentive Stock
      Option is granted) of the Shares with respect to which Incentive Stock Options
      granted under the Plan and all other option plans of the Company (and any parent
      corporation or subsidiary corporation of the Company, as those terms are defined
      in Sections 424(e) and (f) of the Code, respectively) during any calendar year
      exercisable for the first time by the Participant during any calendar year
      shall
      not (to the extent required by the Code at the time of the grant) exceed
      $100,000.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    (iv)
      Automatic Grants to Outside Directors and Executive Committee
      Members.

    

    (A)
      Annual Grants. Upon the conclusion of each regular annual meeting of the
      Company's stockholders held in the year 2005 and thereafter, (1) each Outside
      Director who will continue serving as a member of the Board thereafter shall
      receive an Option as determined by the Committee, (2) each member of the
      Executive Committee who will continue serving as a member of the Executive
      Committee shall receive an Option as determined by the Committee; and (3) the
      person who will continue serving as the Chairman of the Executive Committee
      shall receive, in addition to any Options granted pursuant to (1) and (2) above,
      an Option as determined by the Committee. A Participant who serves in more
      than
      one capacity shall be eligible for the foregoing awards applicable to each
      capacity in which the individual serves. Options granted under this Section
      6(b)(iv)(A) shall become exercisable in 3 equal installments on each of the
      first three anniversaries of the date on which the Option is granted. An Outside
      Director or member of the Executive Committee who previously was an Employee
      shall be eligible to receive grants under this Section 6(b)(iv)(A).

    

    (B)
      Exercise Price. The exercise price under all Options granted to an Outside
      Director or member of the Executive Committee under this Section 6(b)(iv) shall
      be equal to 100% of the Fair Market Value of a Share on the date on which the
      Option is granted, payable in one of the forms determined by the
      Committee.

    

    (C)
      Term.
      All Options granted to an Outside Director or member of the Executive Committee
      under this Section 6(b)(iv) shall terminate on the earliest of (a) the 10th
      anniversary of the date on which the Option is granted, (b) the date three
      (3)
      months after the termination of the Service of the Outside Director or member
      of
      the Executive Committee for any reason other than death or total and permanent
      disability or (c) the date 12 months after the termination of such Service
      because of death or total and permanent disability.

    

    (D)
      Other
      Awards. Outside Directors and members of the Executive Committee shall be
      eligible to receive any other Options or other Awards awarded by the Committee
      pursuant to this Plan.

    

    (c)
      Stock
      Appreciation Rights. The Committee may grant Stock Appreciation Rights to any
      Eligible Person in conjunction with all or part of any Option granted under
      the
      Plan or at any subsequent time during the term of such Option (a "Tandem Stock
      Appreciation Right"), or without regard to any Option (a "Freestanding Stock
      Appreciation Right"), in each case upon such terms and conditions as the
      Committee may establish in its sole discretion, not inconsistent with the
      provisions of the Plan, including the following:

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (i)
      Right
      to Payment. A Stock Appreciation Right shall confer on the Participant to whom
      it is granted a right to receive, upon exercise thereof, the excess of (A)
      the
      Fair Market Value of one Share on the date of exercise over (B) the grant price
      of the Stock Appreciation Right as determined by the Committee. The grant price
      of a Stock Appreciation Right shall not be less than 75% of the Fair Market
      Value of a Share on the date of grant, in the case of a Freestanding Stock
      Appreciation Right, or less than the associated Option exercise price, in the
      case of a Tandem Stock Appreciation Right.

    

              (ii)
      Other Terms. The Committee
      shall determine at the date of grant or thereafter, the time or times at which
      and the circumstances under which a Stock Appreciation Right may be exercised
      in
      whole or in part (including based on achievement of performance goals and/or
      future service requirements), the time or times at which Stock Appreciation
      Rights shall cease to be or become exercisable following termination of
      Continuous Service or upon other conditions, the method of exercise, method
      of
      settlement, form of consideration payable in settlement, method by or forms
      in
      which Shares will be delivered or deemed to be delivered to Participants,
      whether or not a Stock Appreciation Right shall be in tandem or in combination
      with any other Award, and any other terms and conditions of any Stock
      Appreciation Right.

    

              (iii)
      Tandem Stock Appreciation
      Rights. Any Tandem Stock Appreciation Right may be granted at the same time
      as
      the related Option is granted or, for Options that are not Incentive Stock
      Options, at any time thereafter before exercise or expiration of such Option.
      Any Tandem Stock Appreciation Right related to an Option may be exercised only
      when the related Option would be exercisable and the Fair Market Value of the
      Shares subject to the related Option exceeds the exercise price at which Shares
      can be acquired pursuant to the Option. In addition, if a Tandem Stock
      Appreciation Right exists with respect to less than the full number of Shares
      covered by a related Option, then an exercise or termination of such Option
      shall not reduce the number of Shares to which the Tandem Stock Appreciation
      Right applies until the number of Shares then exercisable under such Option
      equals the number of Shares to which the Tandem Stock Appreciation Right
      applies. Any Option related to a Tandem Stock Appreciation Right shall no longer
      be exercisable to the extent the Tandem Stock Appreciation Right has been
      exercised, and any Tandem Stock Appreciation Right shall no longer be
      exercisable to the extent the related Option has been exercised.

    

    (d)
      Restricted Stock Awards. The Committee is authorized to grant Restricted Stock
      Awards to any Eligible Person on the following terms and
      conditions:

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    (i)
      Grant
      and Restrictions. Restricted Stock Awards shall be subject to such restrictions
      on transferability, risk of forfeiture and other restrictions, if any, as the
      Committee may impose, or as otherwise provided in this Plan, covering a period
      of time specified by the Committee (the "Restriction Period"). The terms of
      any
      Restricted Stock Award granted under the Plan shall be set forth in a written
      Award Agreement which shall contain provisions determined by the Committee
      and
      not inconsistent with the Plan. The restrictions may lapse separately or in
      combination at such times, under such circumstances (including based on
      achievement of performance goals and/or future service requirements), in such
      installments or otherwise, as the Committee may determine at the date of grant
      or thereafter. Except to the extent restricted under the terms of the Plan
      and
      any Award Agreement relating to a Restricted Stock Award, a Participant granted
      Restricted Stock shall have all of the rights of a shareholder, including the
      right to vote the Restricted Stock and the right to receive dividends thereon
      (subject to any mandatory reinvestment or other requirement imposed by the
      Committee). During the Restriction Period, subject to Section 10(b) below,
      the
      Restricted Stock may not be sold, transferred, pledged, hypothecated, margined
      or otherwise encumbered by the Participant.

    

    (ii)
      Forfeiture. Except as otherwise determined by the Committee, upon termination
      of
      a Participant's Continuous Service during the applicable Restriction Period,
      the
      Participant's Restricted Stock that is at that time subject to a risk of
      forfeiture that has not lapsed or otherwise been satisfied shall be forfeited
      and reacquired by the Company; provided that the Committee may provide, by
      rule
      or regulation or in any Award Agreement, or may determine in any individual
      case, that forfeiture conditions relating to Restricted Stock Awards shall
      be
      waived in whole or in part in the event of terminations resulting from specified
      causes.

    

    (iii)
      Certificates for Stock. Restricted Stock granted under the Plan may be evidenced
      in such manner as the Committee shall determine. If certificates representing
      Restricted Stock are registered in the name of the Participant, the Committee
      may require that such certificates bear an appropriate legend referring to
      the
      terms, conditions and restrictions applicable to such Restricted Stock, that
      the
      Company retain physical possession of the certificates, and that the Participant
      deliver a stock power to the Company, endorsed in blank, relating to the
      Restricted Stock.

    

    (iv)
      Dividends and Splits. As a condition to the grant of a Restricted Stock Award,
      the Committee may require or permit a Participant to elect that any cash
      dividends paid on a Share of Restricted Stock be automatically reinvested in
      additional Shares of Restricted Stock or applied to the purchase of additional
      Awards under the Plan. Unless otherwise determined by the Committee, Shares
      distributed in connection with a stock split or stock dividend, and other
      property distributed as a dividend, shall be subject to restrictions and a
      risk
      of forfeiture to the same extent as the Restricted Stock with respect to which
      such Shares or other property have been distributed.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

             
      (v) Automatic Grants to Outside Directors and Executive Committee Members.
      Upon
      the conclusion of each regular annual meeting of the Company's stockholders
      held
      in the year 2006 and thereafter, (1) each Outside Director who will continue
      serving as a member of the Board thereafter shall receive an award of Shares
      of
      Restricted Stock as determined by the Committee, which shall vest in two equal
      installments on each of the first two anniversaries of the date on which the
      Restricted Stock is granted; and, (2) each member of the Executive Committee
      who
      will continue serving as a member of the Executive Committee shall receive
      an
      award of Shares of Restricted Stock as determined by the Committee. The Shares
      of Restricted Stock granted pursuant to this section 6(d)(vi) shall vest in
      two
      equal installments on each of the first two anniversaries of the date on which
      the Restricted Stock is granted. A Participant who serves in more than one
      capacity shall be eligible for the foregoing awards applicable to each capacity
      in which the individual serves. 

    

    (e)
      Deferred Stock Award. The Committee is authorized to grant Deferred Stock Awards
      to any Eligible Person on the following terms and conditions:

    

    (i)
      Award
      and Restrictions. Satisfaction of a Deferred Stock Award shall occur upon
      expiration of the deferral period specified for such Deferred Stock Award by
      the
      Committee (or, if permitted by the Committee, as elected by the Participant).
      In
      addition, a Deferred Stock Award shall be subject to such restrictions (which
      may include a risk of forfeiture) as the Committee may impose, if any, which
      restrictions may lapse at the expiration of the deferral period or at earlier
      specified times (including based on achievement of performance goals and/or
      future service requirements), separately or in combination, in installments
      or
      otherwise, as the Committee may determine. A Deferred Stock Award may be
      satisfied by delivery of Shares, cash equal to the Fair Market Value of the
      specified number of Shares covered by the Deferred Stock, or a combination
      thereof, as determined by the Committee at the date of grant or thereafter.
      Prior to satisfaction of a Deferred Stock Award, a Deferred Stock Award carries
      no voting or dividend or other rights associated with Share
      ownership.

    

    (ii)
      Forfeiture. Except as otherwise determined by the Committee, upon termination
      of
      a Participant's Continuous Service during the applicable deferral period or
      portion thereof to which forfeiture conditions apply (as provided in the Award
      Agreement evidencing the Deferred Stock Award), the Participant's Deferred
      Stock
      Award that is at that time subject to a risk of forfeiture that has not lapsed
      or otherwise been satisfied shall be forfeited; provided that the Committee
      may
      provide, by rule or regulation or in any Award Agreement, or may determine
      in
      any individual case, that forfeiture conditions relating to a Deferred Stock
      Award shall be waived in whole or in part in the event of terminations resulting
      from specified causes, and the Committee may in other cases waive in whole
      or in
      part the forfeiture of any Deferred Stock Award.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    (iii)
      Dividend Equivalents. Unless otherwise determined by the Committee at date
      of
      grant, any Dividend Equivalents that are granted with respect to any Deferred
      Stock Award shall be either (A) paid with respect to such Deferred Stock Award
      at the dividend payment date in ash or in Shares of unrestricted stock having
      a
      Fair Market Value equal to the amount of such dividends, or (B) deferred with
      respect to such Deferred Stock Award and the amount or value thereof
      automatically deemed reinvested in additional Deferred Stock, other Awards
      or
      other investment vehicles, as the Committee shall determine or permit the
      Participant to elect.

    

    (f)
      Bonus
      Stock and Awards in Lieu of Obligations. The Committee is authorized to grant
      Shares to any Eligible Persons as a bonus, or to grant Shares or other Awards
      in
      lieu of obligations to pay cash or deliver other property under the Plan or
      under other plans or compensatory arrangements, provided that, in the case
      of
      Eligible Persons subject to Section 16 of the Exchange Act, the amount of such
      grants remains within the discretion of the Committee to the extent necessary
      to
      ensure that acquisitions of Shares or other Awards are exempt from liability
      under Section 16(b) of the Exchange Act. Shares or Awards granted hereunder
      shall be subject to such other terms as shall be determined by the
      Committee.

    

    (g)
      Dividend Equivalents. The Committee is authorized to grant Dividend Equivalents
      to any Eligible Person entitling the Eligible Person to receive cash, Shares,
      other Awards, or other property equal in value to the dividends paid with
      respect to a specified number of Shares, or other periodic payments. Dividend
      Equivalents may be awarded on a free-standing basis or in connection with
      another Award. The Committee may provide that Dividend Equivalents shall be
      paid
      or distributed when accrued or shall be deemed to have been reinvested in
      additional Shares, Awards, or other investment vehicles, and subject to such
      restrictions on transferability and risks of forfeiture, as the Committee may
      specify.

    

    (h)
      Performance Awards. The Committee is authorized to grant Performance Awards
      to
      any Eligible Person payable in cash, Shares, or other Awards, on terms and
      conditions established by the Committee, subject to the provisions of Section
      8
      if and to the extent that the Committee shall, in its sole discretion, determine
      that an Award shall be subject to those provisions. The performance criteria
      to
      be achieved during any Performance Period and the length of the Performance
      Period shall be determined by the Committee upon the grant of each Performance
      Award; provided, however, that a Performance Period shall not be shorter than
      12
      months nor longer than five years. Except as provided in Section 9 or as may
      be
      provided in an Award Agreement, Performance Awards will be distributed only
      after the end of the relevant Performance Period. The performance goals to
      be
      achieved for each Performance Period shall be conclusively determined by the
      Committee and may be based upon the criteria set forth in Section 8(b), or
      in
      the case of an Award that the Committee determines shall not be subject to
      Section 8 hereof, any other criteria that the Committee, in its sole discretion,
      shall determine should be used for that purpose. The amount of the Award to
      be
      distributed shall be conclusively determined by the Committee. Performance
      Awards may be paid in a lump sum or in installments following the close of
      the
      Performance Period or, in accordance with procedures established by the
      Committee, on a deferred basis. 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (i)
      Other
      Stock-Based Awards. The Committee is authorized, subject to limitations under
      applicable law, to grant to any Eligible Person such other Awards that may
      be
      denominated or payable in, valued in whole or in part by reference to, or
      otherwise based on, or related to, Shares, as deemed by the Committee to be
      consistent with the purposes of the Plan. Other Stock Based Awards may be
      granted to Participants either alone or in addition to other Awards granted
      under the Plan, and such Other Stock-Based Awards shall also be available as
      a
      form of payment in the settlement of other Awards granted under the Plan. The
      Committee shall determine the terms and conditions of such Awards. Shares
      delivered pursuant to an Award in the nature of a purchase right granted under
      this Section 6(i) shall be purchased for such consideration (including, without
      limitation, loans from the Company or a Related Entity provided that such loans
      are not in violation of the Sarbanes Oxley Act of 2002, or any rule or
      regulation adopted thereunder or any other applicable law) paid for at such
      times, by such methods, and in such forms, including, without limitation, cash,
      Shares, other Awards or other property, as the Committee shall determine.

    

    7.
       Certain
      Provisions Applicable to Awards.

    

    (a)
      Stand-Alone, Additional, Tandem and Substitute Awards. Awards granted under
      the
      Plan may, in the discretion of the Committee, be granted either alone or in
      addition to, in tandem with, or in substitution or exchange for, any other
      Award
      or any award granted under another plan of the Company, any Related Entity,
      or
      any business entity to be acquired by the Company or a Related Entity, or any
      other right of a Participant to receive payment from the Company or any Related
      Entity. Such additional, tandem, and substitute or exchange Awards may be
      granted at any time. If an Award is granted in substitution or exchange for
      another Award or award, the Committee shall require the surrender of such other
      Award or award in consideration for the grant of the new Award. In addition,
      Awards may be granted in lieu of cash compensation, 

    including
      in lieu of cash amounts payable under other plans of the Company or any Related
      Entity, in which the value of Stock subject to the Award is equivalent in value
      to the cash compensation (for example, Deferred Stock or Restricted Stock),
      or
      in which the exercise price, grant price or purchase price of the Award in
      the
      nature of a right that may be exercised is equal to the Fair Market Value of
      the
      underlying Stock minus the value of the cash compensation surrendered (for
      example, Options or Stock Appreciation Right granted with an exercise price
      or
      grant price "discounted" by the amount of the cash compensation
      surrendered).

    

    (b)
      Term
      of Awards. The term of each Award shall be for such period as may be determined
      by the Committee; provided that in no event shall the term of any Option or
      Stock Appreciation Right exceed a period of ten years (or in the case of an
      Incentive Stock Option such shorter term as may be required under Section 422
      of
      the Code).

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    (c)
      Form
      and Timing of Payment Under Awards; Deferrals. Subject to the terms of the
      Plan
      and any applicable Award Agreement, payments to be made by the Company or a
      Related Entity upon the exercise of an Option or other Award or settlement
      of an
      Award may be made in such forms as the Committee shall determine, including,
      without limitation, cash, Shares, other Awards or other property, and may be
      made in a single payment or transfer, in installments, or on a deferred basis.
      Any installment or deferral provided for in the preceding sentence shall,
      however, be subject to the Company's compliance with the provisions of the
      Sarbanes-Oxley Act of 2002, the rules and regulations adopted by the U.S.
      Securities and Exchange Commission thereunder, and all applicable rules of
      the
      Nasdaq Stock Market or any national securities exchange on which the Company's
      securities are listed for trading and, if not listed for trading on either
      the
      Nasdaq Stock Market or a national securities exchange, then the rules of the
      Nasdaq Stock Market. The settlement of any Award may be accelerated, and cash
      paid in lieu of Stock in connection with such settlement, in the discretion
      of
      the Committee or upon occurrence of one or more specified events (in addition
      to
      a Change in Control). Installment or deferred payments may be required by the
      Committee (subject to Section 10(e) of the Plan, including the consent
      provisions thereof in the case of any deferral of an outstanding Award not
      provided for in the original Award Agreement) or permitted at the election
      of
      the Participant on terms and conditions established by the Committee. Payments
      may include, without limitation, provisions for the payment or crediting of
      a
      reasonable interest rate on installment or deferred payments or the grant or
      crediting of Dividend Equivalents or other amounts in respect of installment
      or
      deferred payments denominated in Shares.

    

    (d)
      Exemptions from Section 16(b) Liability. It is the intent of the Company that
      the grant of any Awards to or other transaction by a Participant who is subject
      to Section 16 of the Exchange Act shall be exempt from Section 16 pursuant
      to an
      applicable exemption (except for transactions acknowledged in writing to be
      non-exempt by such Participant). Accordingly, if any provision of this Plan
      or
      any Award Agreement does not comply with the requirements of Rule 16b-3 then
      applicable to any such transaction, such provision shall be construed or deemed
      amended to the extent necessary to conform to the applicable requirements of
      Rule 16b-3 so 

    that
      such
      Participant shall avoid liability under Section 16(b). 

    

    8.
       Code
      Section 162(m) Provisions.

    

    (a)
      Covered Employees. The Committee, in its discretion, may determine at the time
      an Award is granted to an Eligible Person who is, or is likely to be, as of
      the
      end of the tax year in which the Company would claim a tax deduction in
      connection with such Award, a Covered Employee, that the provisions of this
      Section 8 shall be applicable to such Award. 

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    (b)
      Performance Criteria. If an Award is subject to this Section 8, then the lapsing
      of restrictions thereon and the distribution of cash, Shares or other property
      pursuant thereto, as applicable, shall be contingent upon achievement of one
      or
      more objective performance goals. Performance goals shall be objective and
      shall
      otherwise meet the requirements of Section 162(m) of the Code and regulations
      thereunder including the requirement that the level or levels of performance
      targeted by the Committee result in the achievement of performance goals being
      "substantially uncertain." One or more of the following business criteria for
      the Company, on a consolidated basis, and/or for Related Entities, or for
      business or geographical units of the Company and/or a Related Entity (except
      with respect to the total shareholder return and earnings per share criteria),
      shall be used by the Committee in establishing performance goals for such
      Awards: (1) earnings per share; (2) revenues or margins; (3) cash flow; (4)
      operating margin; (5) return on net assets, investment, capital, or equity;
      (6)
      economic value added; (7) direct contribution; (8) net income; pretax earnings;
      earnings before interest and taxes; earnings before interest, taxes,
      depreciation and amortization; earnings after interest expense and before
      extraordinary or special items; operating income; income before interest income
      or expense, unusual items and income taxes, local, state or federal and
      excluding budgeted and actual bonuses which might be paid under any ongoing
      bonus plans of the Company; (9) working capital; (10) management of fixed costs
      or variable costs; (11) identification or consummation of investment
      opportunities or completion of specified projects in accordance with corporate
      business plans, including strategic mergers, acquisitions or divestitures;
      (12)
      total shareholder return; and (13) debt reduction. Any of the above goals may
      be
      determined on an absolute or relative basis or as compared to the performance
      of
      a published or special index deemed applicable by the Committee including,
      but
      not limited to, the Standard & Poor's 500 Stock Index or a group of
      companies that are comparable to the Company. The Committee may exclude the
      impact of an event or occurrence which the Committee determines should
      appropriately be excluded, including without limitation (i) restructurings,
      discontinued operations, extraordinary items, and other unusual or non-recurring
      charges, (ii) an event either not directly related to the operations of the
      Company or not within the reasonable control of the Company's management, or
      (iii) a change in accounting standards required by generally accepted accounting
      principles.

    

    (c)
      Performance Period; Timing For Establishing Performance Goals. Achievement
      of
      performance goals in respect of such Performance Awards shall be measured over
      a
      Performance Period no shorter than 12 months and no longer than five years,
      as
      specified by the Committee. Performance goals shall be established not later
      than 90 days after the beginning of any 

    Performance
      Period applicable to such Performance Awards, or at such other date as may
      be
      required or permitted for "performance-based compensation" under Code Section
      162(m).

    

    (d)
      Adjustments. The Committee may, in its discretion, reduce the amount of a
      settlement otherwise to be made in connection with Awards subject to this
      Section 8, but may not exercise discretion to increase any such amount payable
      to a Covered Employee in respect of an Award subject to this Section 8. The
      Committee shall specify the circumstances in which such Awards shall be paid
      or
      forfeited in the event of termination of Continuous Service by the Participant
      prior to the end of a Performance Period or settlement of
      Awards.

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (e)
      Committee Certification. No Participant shall receive any payment under the
      Plan
      unless the Committee has certified, by resolution or other appropriate action
      in
      writing, that the performance criteria and any other material terms previously
      established by the Committee or set forth in the Plan, have been satisfied
      to
      the extent necessary to qualify as "performance based compensation" under Code
      Section 162(m). 

    

    9.
       Change
      in Control.

    

    (a)
      Effect of "Change in Control." Subject to Section 9(a)(iv), and if and only
      to
      the extent provided in the Award Agreement, or to the extent otherwise
      determined by the Committee, upon the occurrence of a "Change in Control,"
      as
      defined in Section 9(b):

    

    (i)
      Any
      Option or Stock Appreciation Right that was not previously vested and
      exercisable as of the time of the Change in Control, shall become immediately
      vested and exercisable, subject to applicable restrictions set forth in Section
      10(a) hereof. 

    

    (ii)
      Any
      restrictions, deferral of settlement, and forfeiture conditions applicable
      to a
      Restricted Stock Award, Deferred Stock Award or an Other Stock-Based Award
      subject only to future service requirements granted under the Plan shall lapse
      and such Awards shall be deemed fully vested as of the time of the Change in
      Control, except to the extent of any waiver by the Participant and subject
      to
      applicable restrictions set forth in Section 10(a) hereof. 

    

    (iii)
      With respect to any outstanding Award subject to achievement of performance
      goals and conditions under the Plan, the Committee may, in its discretion,
      deem
      such performance goals and conditions as having been met as of the date of
      the
      Change in Control. 

    

    (iv)
      Notwithstanding the foregoing, if in the event of a Change in Control the
      successor company assumes or substitutes for an Option, Stock Appreciation
      Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based Award,
      then each outstanding Option, Stock Appreciation Right, Restricted Stock Award,
      Deferred Stock Award or Other Stock-Based Award shall not be accelerated as
      described in Sections 9(a)(i), (ii) and (iii). For the purposes of this Section
      9(a)(iv), an Option, Stock Appreciation Right, Restricted Stock Award, Deferred
      Stock Award or Other Stock-Based Award shall be considered assumed or
      substituted for if following the Change in Control the award confers the right
      to purchase or receive, for each Share subject to the Option, Stock Appreciation
      Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based Award
      immediately prior to the Change in Control, the consideration (whether stock,
      cash or other securities or property) received in the transaction constituting
      a
      Change in Control by holders of Shares for each Share held on the effective
      date
      of such transaction (and if holders were offered a choice of consideration,
      the
      type of consideration chosen by the holders of a majority of the outstanding
      shares); provided, however, that if such consideration received in the
      transaction constituting a Change in 

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Control
      is not solely common stock of the successor company or its parent or subsidiary,
      the Committee may, with the consent of the successor company or its parent
      or
      subsidiary, provide that the consideration to be received upon the exercise
      or
      vesting of an Option, Stock Appreciation Right, Restricted Stock Award, Deferred
      Stock Award or Other Stock-Based Award, for each Share subject thereto, will
      be
      solely common stock of the successor company or its parent or subsidiary
      substantially equal in fair market value to the per share consideration received
      by holders of Shares in the transaction constituting a Change in Control. The
      determination of such substantial equality of value of consideration shall
      be
      made by the Committee in its sole discretion and its determination shall be
      conclusive and binding. Notwithstanding the foregoing, on such terms and
      conditions as may be set forth in an Award Agreement, in the event of a
      termination of a Participant's employment in such successor company (other
      than
      for Cause) within 24 months following such Change in Control, each Award held
      by
      such Participant at the time of the Change in Control shall be accelerated
      as
      described in Sections 9(a)(i), (ii) and (iii) above.

    

    (b)
      Definition of "Change in Control." Unless otherwise specified in an Award
      Agreement, a "Change in Control" shall mean the occurrence of any of the
      following:

    

    (i)
      The
      acquisition by any Person of Beneficial Ownership (within the meaning of Rule
      13d-3 promulgated under the Exchange Act) of more than fifty percent (50%)
      of
      either (A) the then outstanding shares of common stock of the Company (the
      "Outstanding Company Common Stock") or (B) the combined voting power of the
      then
      outstanding voting securities of the Company entitled to vote generally in
      the
      election of directors (the "Outstanding Company Voting Securities) (the
      foregoing Beneficial Ownership hereinafter being referred to as a "Controlling
      Interest"); provided, however, that for purposes of this Section 9(b), the
      following acquisitions shall not constitute or result in a Change of Control:
      (v) any acquisition directly from the Company; (w) any acquisition by the
      Company; (x) any acquisition by any Person that as of the Effective Date owns
      Beneficial Ownership of a Controlling Interest; (y) any acquisition by any
      employee benefit plan (or related trust) sponsored or maintained by the Company
      or any Subsidiary; or (z) any acquisition by any corporation pursuant to a
      transaction which complies with clauses (A), (B) and (C) of subsection (iii)
      below; or

    

    (ii)
      During any period of two (2) consecutive years (not including any period prior
      to the Effective Date) individuals who constitute the Board on the Effective
      Date (the "Incumbent Board") cease for any reason to constitute at least a
      majority of the Board; provided, however, that any individual becoming a
      director subsequent to the Effective Date whose election, or nomination for
      election by the Company's shareholders, was approved by a vote of at least
      a
      majority of the directors then comprising the Incumbent Board shall be
      considered as though such individual were a member of the Incumbent Board,
      but
      excluding, for this purpose, any such individual whose initial assumption of
      office occurs as a result of an actual or threatened election contest with
      respect to the election or removal of directors or other actual or threatened
      solicitation of proxies or consents by or on behalf of a Person other than
      the
      Board; or 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (iii)
      Consummation of a reorganization, merger, statutory share exchange or
      consolidation or similar corporate transaction involving the Company or any
      of
      its Subsidiaries, a sale or other disposition of all or substantially all of
      the
      assets of the Company, or the acquisition of assets or stock of another entity
      by the Company or any of its Subsidiaries (each a "Business Combination"),
      in
      each case, unless, following such Business Combination, (A) all or substantially
      all of the individuals and entities who were the Beneficial Owners,
      respectively, of the Outstanding Company Common Stock and Outstanding Company
      Voting Securities immediately prior to such Business Combination beneficially
      own, directly or indirectly, more than fifty percent (50%) of the then
      outstanding shares of common stock and the combined voting power of the then
      outstanding voting securities entitled to vote generally in the election of
      directors, as the case may be, of the corporation resulting from such Business
      Combination (including, without limitation, a corporation which as a result
      of
      such transaction owns the Company or all or substantially all of the Company's
      assets either directly or through one or more subsidiaries) in substantially
      the
      same proportions as their ownership, immediately prior to such Business
      Combination of the Outstanding Company Common Stock and Outstanding Company
      Voting Securities, as the case may be, (B) no Person (excluding any employee
      benefit plan (or related trust) of the Company or such corporation resulting
      from such Business Combination or any Person that as of the Effective Date
      owns
      Beneficial Ownership of a Controlling Interest) beneficially owns, directly
      or
      indirectly, fifty percent (50%) or more of the then outstanding shares of common
      stock of the corporation resulting from such Business Combination or the
      combined voting power of the then outstanding voting securities of such
      corporation except to the extent that such ownership existed prior to the
      Business Combination and (C) at least a majority of the members of the Board
      of
      Directors of the corporation resulting from such Business Combination were
      members of the Incumbent Board at the time of the execution of the initial
      agreement, or of the action of the Board, providing for such Business
      Combination; or

    

    (iv)
      Approval by the shareholders of the Company of a complete liquidation or
      dissolution of the Company.

    

    10.
       General
      Provisions.

    

    (a)
      Compliance With Legal and Other Requirements. The Company may, to the extent
      deemed necessary or advisable by the Committee, postpone the issuance or
      delivery of Shares or payment of other benefits under any Award until completion
      of such registration or qualification of such Shares or other required action
      under any federal or state law, rule or regulation, listing or other required
      action with respect to any stock exchange or automated quotation system upon
      which the Shares or other Company securities are listed or quoted, or compliance
      with any other obligation of the Company, as the Committee, may consider
      appropriate, and may require any Participant to make such representations,
      furnish such information and comply with or be subject to such other conditions
      as it may consider appropriate in connection with the issuance or delivery
      of
      Shares or payment of other benefits in compliance with applicable laws, rules,
      and regulations, listing requirements, or other obligations. 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (b)
      Limits on Transferability; Beneficiaries. No Award or other right or interest
      granted under the Plan shall be pledged, hypothecated or otherwise encumbered
      or
      subject to any lien, obligation or liability of such Participant to any party,
      or assigned or transferred by such Participant otherwise than by will or the
      laws of descent and distribution or to a Beneficiary upon the death of a
      Participant, and such Awards or rights that may be exercisable shall be
      exercised during the lifetime of the Participant only by the Participant or
      his
      or her guardian or legal representative, except that Awards and other rights
      (other than Incentive Stock Options and Stock Appreciation Rights in tandem
      therewith) may be transferred to one or more Beneficiaries or other transferees
      during the lifetime of the Participant, and may be exercised by such transferees
      in accordance with the terms of such Award, but only if and to the extent such
      transfers are permitted by the Committee pursuant to the express terms of an
      Award Agreement (subject to any terms and conditions which the Committee may
      impose thereon). A Beneficiary, transferee, or other person claiming any rights
      under the Plan from or through any Participant shall be subject to all terms
      and
      conditions of the Plan and any Award Agreement applicable to such Participant,
      except as otherwise determined by the Committee, and to any additional terms
      and
      conditions deemed necessary or appropriate by the Committee.

    

    (c)
      Adjustments.

    

    (i)
      Adjustments to Awards. In the event that any extraordinary dividend or other
      distribution (whether in the form of cash, Shares, or other property),
      recapitalization, forward or reverse split, reorganization, merger,
      consolidation, spin-off, combination, repurchase, share exchange, liquidation,
      dissolution or other similar corporate transaction or event affects the Shares
      and/or such other securities of the Company or any other issuer such that a
      substitution, exchange, or adjustment is determined by the Committee to be
      appropriate, then the Committee shall, in such manner as it may deem equitable,
      substitute, exchange or adjust any or all of (A) the number and kind of Shares
      which may be delivered in connection with Awards granted thereafter, (B) the
      number and kind of Shares by which annual per-person Award limitations are
      measured under Section 5 hereof, (C) the number and kind of Shares subject
      to or
      deliverable in respect of outstanding Awards, (D) the exercise price, grant
      price or purchase price relating to any Award and/or make provision for payment
      of cash or other property in respect of any outstanding Award, and (E) any
      other
      aspect of any Award that the Committee determines to be
      appropriate.

    

    (ii)
      Adjustments in Case of Certain Corporate Transactions. In the event of any
      merger, consolidation or other reorganization in which the Company does not
      survive, or in the event of any Change in Control, any outstanding Awards may
      be
      dealt with in accordance with any of the following approaches, as determined
      by
      the agreement effectuating the transaction or, if and to the extent not so
      determined, as determined by the Committee: (a) the continuation of the
      outstanding Awards by the Company, if the Company is a surviving corporation,
      (b) the assumption or substitution for, as those terms are defined in Section
      9(b)(iv) hereof, the outstanding Awards by the surviving corporation or its
      parent or subsidiary, (c) full exercisability or vesting and accelerated

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    expiration
      of the outstanding Awards, or (d) settlement of the value of the outstanding
      Awards in cash or cash equivalents or other property followed by cancellation
      of
      such Awards (which value, in the case of Options or Stock Appreciation Rights,
      shall be measured by the amount, if any, by which the Fair Market Value of
      a
      Share exceeds the exercise or grant price of the Option or Stock Appreciation
      Right as of the effective date of the transaction). The Committee shall give
      written notice of any proposed transaction referred to in this Section 10(c)(ii)
      a reasonable period of time prior to the closing date for such transaction
      (which notice may be given either before or after the approval of such
      transaction), in order that Participants may have a reasonable period of time
      prior to the closing date of such transaction within which to exercise any
      Awards that are then exercisable (including any Awards that may become
      exercisable upon the closing date of such transaction). A Participant may
      condition his exercise of any Awards upon the consummation of the transaction.
      

    

    (iii)
      Other Adjustments. The Committee (and the Board if and only to the extent such
      authority is not required to be exercised by the Committee to comply with
      Section 162(m) of the Code) is authorized to make adjustments in the terms
      and
      conditions of, and the criteria included in, Awards (including Performance
      Awards, or performance goals relating thereto) in recognition of unusual or
      nonrecurring events (including, without limitation, acquisitions and
      dispositions of businesses and assets) affecting the Company, any Related Entity
      or any business unit, or the financial statements of the Company or any Related
      Entity, or in response to changes in applicable laws, regulations, accounting
      principles, tax rates and regulations or business conditions or in view of
      the
      Committee's assessment of the business strategy of the Company, any Related
      Entity or business unit thereof, performance of comparable organizations,
      economic and business conditions, personal performance of a Participant, and
      any
      other circumstances deemed relevant; provided that no such adjustment shall
      be
      authorized or made if and to the extent that such authority or the making of
      such adjustment would cause Options, Stock Appreciation Rights, Performance
      Awards granted pursuant to Section 8(b) hereof to Participants designated by
      the
      Committee as Covered Employees and intended to qualify as "performance-based
      compensation" under Code Section 162(m) and the regulations thereunder to
      otherwise fail to qualify as "performance-based compensation" under Code Section
      162(m) and regulations thereunder.

    

    (d)
      Taxes. The Company and any Related Entity are authorized to withhold from any
      Award granted, any payment relating to an Award under the Plan, including from
      a
      distribution of Shares, or any payroll or other payment to a Participant,
      amounts of withholding and other taxes due or potentially payable in connection
      with any transaction involving an Award, and to take such other action as the
      Committee may deem advisable to enable the Company or any Related Entity and
      Participants to satisfy obligations for the payment of withholding taxes and
      other tax obligations relating to any Award. This authority shall include
      authority to withhold or receive Shares or other property and to make cash
      payments in respect thereof in satisfaction of a Participant's tax obligations,
      either on a mandatory or elective basis in the discretion of the
      Committee.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    (e)
      Changes to the Plan and Awards. The Board may amend, alter, suspend, discontinue
      or terminate the Plan, or the Committee's authority to grant Awards under the
      Plan, without the consent of shareholders or Participants, except that any
      amendment or alteration to the Plan shall be subject to the approval of the
      Company's shareholders not later than the annual meeting next following such
      Board action if such shareholder approval is required by any federal or state
      law or regulation (including, without limitation, Rule 16b-3 or Code Section
      162(m)) or the rules of any stock exchange or automated quotation system on
      which the Shares may then be listed or quoted, and the Board may otherwise,
      in
      its discretion, determine to submit other such changes to the Plan to
      shareholders for approval; provided that, without the consent of an affected
      Participant, no such Board action may materially and adversely affect the rights
      of such Participant under any previously granted and outstanding Award. The
      Committee may waive any conditions or rights under, or amend, alter, suspend,
      discontinue or terminate any Award theretofore granted and any Award Agreement
      relating thereto, except as otherwise provided in the Plan; provided that,
      without the consent of an affected Participant, no such Committee or the Board
      action may materially and adversely affect the rights of such Participant under
      such Award.

    

    (f)
      Limitation on Rights Conferred Under Plan. Neither the Plan nor any action
      taken
      hereunder shall be construed as (i) giving any Eligible Person or Participant
      the right to continue as an Eligible Person or Participant or in the employ
      or
      service of the Company or a Related Entity; (ii) interfering in any way with
      the
      right of the Company or a Related 

    Entity
      to
      terminate any Eligible Person's or Participant's Continuous Service at any
      time,
      (iii) giving an Eligible Person or Participant any claim to be granted any
      Award
      under the Plan or to be treated uniformly with other Participants and Employees,
      or (iv) conferring on a Participant any of the rights of a shareholder of the
      Company unless and until the Participant is duly issued or transferred Shares
      in
      accordance with the terms of an Award.

    

    (g)
      Unfunded Status of Awards; Creation of Trusts. The Plan is intended to
      constitute an "unfunded" plan for incentive and deferred compensation. With
      respect to any payments not yet made to a Participant or obligation to deliver
      Shares pursuant to an Award, nothing contained in the Plan or any Award shall
      give any such Participant any rights that are greater than those of a general
      creditor of the Company; provided that the Committee may authorize the creation
      of trusts and deposit therein cash, Shares, other Awards or other property,
      or
      make other arrangements to meet the Company's obligations under the Plan. Such
      trusts or other arrangements shall be consistent with the "unfunded" status
      of
      the Plan unless the Committee otherwise determines with the consent of each
      affected Participant. The trustee of such trusts may be authorized to dispose
      of
      trust assets and reinvest the proceeds in alternative investments, subject
      to
      such terms and conditions as the Committee may specify and in accordance with
      applicable law.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    (h)
      Nonexclusivity of the Plan. Neither the adoption of the Plan by the Board nor
      its submission to the shareholders of the Company for approval shall be
      construed as creating any limitations on the power of the Board or a committee
      thereof to adopt such other incentive arrangements as it may deem desirable
      including incentive arrangements and awards which do not qualify under Section
      162(m) of the Code.

    

    (i)
      Payments in the Event of Forfeitures; Fractional Shares. Unless otherwise
      determined by the Committee, in the event of a forfeiture of an Award with
      respect to which a Participant paid cash or other consideration, the Participant
      shall be repaid the amount of such cash or other consideration. No fractional
      Shares shall be issued or delivered pursuant to the Plan or any Award. The
      Committee shall determine whether cash, other Awards or other property shall
      be
      issued or paid in lieu of such fractional shares or whether such fractional
      shares or any rights thereto shall be forfeited or otherwise
      eliminated.

    

    (j)
      Governing Law. The validity, construction and effect of the Plan, any rules
      and
      regulations under the Plan, and any Award Agreement shall be determined in
      accordance with the laws of the State of Nevada without giving effect to
      principles of conflict of laws, and applicable federal law.

    

    (k)
      Non-U.S. Laws. The Committee shall have the authority to adopt such
      modifications, procedures, and sub-plans as may be necessary or desirable to
      comply with provisions of the laws of foreign countries in which the Company
      or
      its Subsidiaries may operate to assure the viability of the benefits from Awards
      granted to Participants performing services in such countries and to meet the
      objectives of the Plan.

    

    (l)
      Plan
      Effective Date and Shareholder Approval; Termination of Plan. The Plan shall
      become effective on the Effective Date, subject to subsequent approval, within
      12 months of its adoption by the Board, by shareholders of the Company eligible
      to vote in the election of directors, by a vote sufficient to meet the
      requirements of Code Sections 162(m) (if applicable) and 422, Rule 16b-3 under
      the Exchange Act (if applicable), applicable requirements under the rules of
      any
      stock exchange or automated quotation system on which the Shares may be listed
      or quoted, and other laws, regulations, and obligations of the Company
      applicable to the Plan. Awards may be granted subject to shareholder approval,
      but may not be exercised or otherwise settled in the event the shareholder
      approval is not obtained. The Plan shall terminate at the earliest of (a) such
      time as no Shares remain available for issuance under the Plan, (b) termination
      of this Plan by the Board, or (c) the tenth anniversary of the Effective Date.
      Awards outstanding upon expiration of the Plan shall remain in effect until
      they
      have been exercised or terminated, or have expired. 

     

    26EXHIBIT 10.1

Memorandum
of Understanding

This Memorandum of
Understanding (“MOU”) is entered into and is effective as of 9 Nov. 2006,
between General Dynamics Land Systems Inc., (“GDLS”) and Force Protection Inc.,
(“FPI”), Individually, a “Party” and collectively, the “Parties.”

Whereas FPI is a
new business which has designed and produced a mine-protected and armored
vehicle called the Cougar; and,

Whereas the
Government requires additional Cougar vehicles; and

Whereas FPI has
limited capacity to meet these requirements and needs industry assistance in
the production of FPI’s Cougar vehicles, and;

Whereas GDLS has
recognized capability in combat vehicle systems integration, to include
production expertise, and has available capacity at Joint Services Manufacturing
Center (“JSMC”) for structure fabrication; and,

Whereas, GDLS and FPI intend to establish a
relationship where FPI will be the Prime and GDLS with be the Subcontractor,
for structure fabrication of two hundred (200) variants of the Cougar vehicle (“Work”).

Therefore,
GDLS and FPI to the extent allowed by applicable law and regulations, agree to
the following:

1.                                       Subcontractor
Relationship

The Parties agree
to negotiate a subcontract agreement for fabrication of the Cougar structures
in accordance with the attached Term Sheet (Attachment A).

2.                                       Term
and Conditions

The terms and
conditions of the subcontract agreement will be mutually agreed upon by the
parties for the Work which will be substantially similar to the attached form
of subcontract (Attachment B).

3.                                       Expenses

Each of the
Parties will bear all expenses incurred by it or on its behalf in connection
with its actions pursuant to this MOU.

4.                                       Assignment

Neither Party may
assign or delegate to a third party (including but not limited to any successor
in interest to either Party as the result of a merger, sale or acquisition of
all or substantially all of the assets or stock of either Party) such Party’s
rights or obligations in connection with this MOU without the written consent
of the other Party.

5.                                       Severability

This MOU will be
interpreted in such manner as to be effective and valid under any applicable
law and/or regulation, but if any provision of this MOU is held to be
prohibited by or invalid under any applicable law and/or regulation, such
provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this MOU.

6.                                       Entire
Agreement

This MOU
constitutes the entire agreement between the Parties with respect to the
subject matter hereof, and supercedes any prior understandings, agreements or
representations by or between the Parties, written or oral, that may have
related in any way to the subject matter hereof.

 

 

7.                                       Life
of the Agreement

This MOU shall be
effective from the date of the last signature below.  The life of the agreement will be for five
(5) years with an option to renew upon mutual agreement of the parties. The MOU
may be terminated by either party upon ninety (90) days written notice.

8.                                       Confidentiality
and Intellectual Property

The Parties agree
to negotiate a confidentiality agreement under this MOU which shall be
substantially similar to the terms of the attached confidentiality agreement
(Attachment C). FPI shall at all times retain the sole and exclusive rights to
the design of the Cougar vehicles or any of its derivatives or improvements,
and the design, bill of materials, drawings, work instructions, transition to
production plans, and technical data package relating to the Cougar vehicles
whether provided by FPI, developed by GDLS from FPI information or the Work or
developed by FPI and GDLS jointly (“intellectual property”) provided, however,
GDLS shall own any processes developed by GDLS in the performance of the Work
and FPI shall have the right to use such processes.  GDLS agrees to implement a firewall
procedure, acceptable to FPI, with respect to FPI Confidential Information and
Intellectual Property to prevent disclosures to other corporations, divisions,
affiliates, contractors or consultants to GDLS.

9.                                       Public
Relations Clause

Any news release,
public announcement, advertisement, or other publicity to be released by a
party in connection with this MOU must fires have the prior written approval of
the other party, which approval shall not be unreasonably withheld.

10.                                 Limitations
of Liability

EXCEPT AS SET FORTH IN THIS AGREEMENT, NEITHER PARTY
MAKES AND EACH PARTY HEREBY SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE PRODUCTS AND SERVICES
CONTEMPLATED BY THIS AGREEMENT, INCLUDING ANY IMPLIED WARRANTY OF
MERCHANTIBILITY, NON-INFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE.

EXCEPT FOR A
VIOLATION OF ANY CONFIDENTIALITY OR INTELLECTUAL PROPERTY PROVISIONS, IN NO
EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL PUNITIVE OR EXEMPLARY DAMAGES, EVEN IF THAT PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES ARISING FROM ANY PROVISION OF
THIS AGREEMENT, SUCH AS, BUT NOT LIMITED TO, LOSS OF USE, INCOME OR PROFITS, OR
ANTICIPATED PROFITS OR LOST BUSINESS OR THE COSTS OF PROCUREMENT OF SUBSTITUTE
GOODS OR SERVICES.

11.                                 Dispute
Resolution

All claims, disputes controversies, or other matter in
question arising out of, connected with, or relating to the Agreement that
cannot be resolved by the Parties through face to face negotiations between
senior executives of each Party, will be settled by binding arbitration in
accordance with the Commercial Rules of the American Arbitration Association
then in effect.  All arbitration proceedings
will be held in Delaware.  The Parties
may take discovery by any mean s allowed by the Federal Rules of Civil
Procedure then in effect.  The arbitrator
may exclude from evidence any evidence not previously shared with the other
side.  The administrative costs of any
arbitration or litigation will be borne equally by the Parties pending the
arbitrator’s award.  The arbitrator shall
be bound by the express provisions set forth in this agreement and shall not
modify any terms of this agreement or make any award of damages in excess of
the amounts set forth in this agreement or grant any relief not expressly set
forth in this agreement.  The
determinations of the arbitrator shall be final and, except as provided by law,
shall not be subject to judicial revue. 
Any court of competent jurisdiction may enforce any award or
determination rendered by the arbitrator. 
The language to be used in the arbitral proceedings shall be English.  The arbitrator shall not have the authority
to award consequential damages of any sort (which are 

 

defined to include, without limitation, damages for
lost profits, damages for delay, damages for lost opportunities and the like)
or punitive exemplary damages of any sort. 
This Agreement shall be construed and enforced in accordance with, and
governed by, the laws of the State of Delaware without regard to its conflict
of law principles.

In Witness Whereof, the Parties have executed this MOU

	
  General Dynamics Land
  Systems Inc.

  	
   

  	
  Force Protection, Inc.

  
	
   

  	
   

  	
   

  
	
  /s/ David K.
  Heeber

  	
   

  	
  /s/ Gordon McGilton

  
	
  Name: David K.
  Heeber

  	
   

  	
  Name: Gordon McGilton

  
	
  Title:
  President, GDLS

  	
   

  	
  Title: CEO

  
	
  Date: November
  9, 2006

  	
   

  	
  Date: November 9, 2006

  

 

 

 

Attachment
A:  Term Sheet

GDLS/FPI
Subcontractor Relationship for Cougar Production

GDLS’ Scope

1) Exclusively for a minimum of two hundred (200)
Cougar variants GDLS intends to fabricate, blast and paint the crew capsule,
install the spall liner, and deliver to an FPII designated final assembly
location.

2) GDLS will busy all material and services and manage
the supply chain for GDLS’entire content. Alternatively, upon mutual agreement,
FPI may buay all material, manage the supply chain and provide to GDLS.

3) GDLS scope may include procurement of additional
material as mutually agreed (e.g. Weapon Station or other special equipment for
mission variants).

4) Price lead-time and delivery schedules will be
mutually agreed at the time of negotiation of the subcontract.

5) Respond to an RFQ for the Work.

FPI SCOPE

1) Provide GDLS with the Confidential Information and
Intellectual Property associated with the capsule of the Cougar vehicle to be
fabricated by GDLS.

2) Provide GDLS with an RFQ for the Work.

Other Conditions of this Agreement

1) GDLS will be FPIIs subcontractor for GDLS’ content,
except for:

a) capsule fabrication to be completed by FPI

b) ILAV vehicles covered under the current teaming
obligation with BAE

c) Work outside of GDLS’ scope (e.g. automotive, final
assembly, capsule fabrication by FPII or its subcontractors)

2) GDLS will not use any of FPIIs Confidential
Information or Intellectual Property except for performance of the Work.

Not Included in this Agreement

1) Fabrication and integration of Buffalo, Mastiff or
Cheetah

2) Cougar and its variants service and support work.

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