Document:

THE SALE OF THE SECURITIES  REPRESENTED BY THIS WARRANT HAS NOT BEEN
     REGISTERED  UNDER  THE  SECURITIES  ACT OF  1933,  AS  AMENDED  (THE
     "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE SECURITIES HAVE
     BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO OR FOR RESALE IN
     CONNECTION  WITH THE  DISTRIBUTION  THEREOF.  NO  DISPOSITION OF THE
     SECURITIES  MAY BE MADE IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION
     STATEMENT  UNDER THE SECURITIES ACT AND COMPLIANCE  WITH  APPLICABLE
     STATE  SECURITIES LAWS OR AN OPINION OF COUNSEL  SATISFACTORY TO THE
     COMPANY TO THE EFFECT THAT SUCH  DISPOSITION  IS IN COMPLIANCE  WITH
     THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.

                             STOCK PURCHASE WARRANT

      This Stock Purchase Warrant (the "Warrant") is issued this ___ day of
October, 2005, by FractionAir Holdings, Inc., a Nevada corporation (the
"Company"), to _______________, a Tennessee resident (hereinafter, collectively
with any subsequent assignee or transferee thereof, "Holder" or "Holders").

                                    AGREEMENT

      1. Issuance of Warrant; Term. For value received, the Company hereby
grants to Holder the right to purchase __________ (_________) shares of the
Company's common stock (the "Common Stock"). The shares of Common Stock issuable
upon exercise of this Warrant are hereinafter referred to as the "Shares." This
Warrant shall be exercisable at any time and from time to time from the date
hereof until 5:00 p.m. Central Time on OCTOBER __, 2008 or, if such date is a
day on which banking institutions are authorized by law to close, then on the
next succeeding day that shall not be such a day.

      2. Exercise Price. The exercise price (the "Exercise Price") for which all
or any of the Shares may be purchased pursuant to the terms of this Warrant
shall be $0.85 per share, as adjusted from time to time pursuant to Section 7
hereof.

      3. Exercise.

      (a) This Warrant may be exercised by the Holder hereof in whole or in part
(but only on the conditions hereinafter set forth) as to all or any increment or
increments of one thousand (1,000) Shares (or the balance of the Shares if less
than such number), upon delivery of written notice of intent to exercise to the
Company at 30 Burton Hills Boulevard, Suite 210, Nashville, TN 37215, or such
other address as the Company shall designate in a written notice to the Holder
hereof, together with this Warrant and payment to the Company of the Exercise
Price of the Shares so purchased.

Warrant to Purchase Common Stock
<PAGE>

            (b) The Exercise Price shall be payable by (i) cash or by check
      acceptable to the Company, (ii) cancellation by the Holder of indebtedness
      or other obligations of the Company to the Holder, or (iii) a combination
      of (i) and (ii), in the Holder's discretion.

            (c) If the event that the Warrant Shares have not be registered, in
      lieu of exercising this Warrant by paying the Exercise Price in cash, by
      check, or by cancellation of indebtedness or other obligations of the
      Company, the Holder may elect to receive shares of Common Stock equal to
      the value of this Warrant (or the portion thereof being canceled) by
      delivery of this Warrant in the manner described above, specifying in the
      written notice of intent to exercise the Holder's net issue election.
      Thereupon, the Company shall issue to Holder a number of shares of the
      Common Stock computed using the following formula:

                                  X = (Y)(A-B)
                                      -------
                                         A

      Where X =   The number of shares of Common Stock to be issued to Holder.

            Y =   The  number  of shares of Common  Stock  issuable  under  this
                  Warrant  (or,  if only a  portion  of this  Warrant  is  being
                  exercised, the portion of this Warrant being canceled).

            A =   The fair market value of one share of Common Stock.

            B =   Exercise Price (as adjusted to the date of such calculations).

            (d) Upon exercise of this Warrant, the Company shall as promptly as
      practicable, and in any event within fifteen (15) days thereafter, execute
      and deliver to the Holder of this Warrant a certificate or certificates
      for the total number of whole Shares for which this Warrant is being
      exercised in such names and denominations as are requested by such Holder.
      Upon receipt by the Company of this Warrant at its office, accompanied by
      written notice of intent to exercise and the proper amount representing
      the Exercise Price, the Holder shall be deemed to be the holder of record
      of the shares issuable upon such exercise. If this Warrant shall be
      exercised with respect to less than all of the Shares, the Holder shall be
      entitled to receive a new Warrant covering the number of Shares in respect
      of which this Warrant shall not have been exercised, which new Warrant
      shall in all other respects be identical to this Warrant. The Company
      covenants and agrees that it will pay when due any and all state and
      federal issue taxes which may be payable in respect of the issuance of
      this Warrant or the issuance of any Shares upon exercise of this Warrant.
      The Company shall have no obligation to pay any income taxes due and
      payable by Holder by reason of his holding this Warrant or the exercise of
      his rights hereunder.

                                       2

Warrant to Purchase Common Stock
<PAGE>

      4.  Covenants  and  Conditions.  The above  provisions  are subject to the
following:

            (a) Neither this Warrant nor the Shares have been registered under
      the Securities Act of 1933, as amended ("Securities Act"), or any state
      securities laws ("Blue Sky Laws"). This Warrant has been acquired for
      investment purposes and not with a view to distribution and may not be
      sold or otherwise transferred without (i) an effective registration
      statement for such Warrant under the Securities Act and such applicable
      Blue Sky Laws, or (ii) an exemption under the Securities Act and any
      applicable Blue Sky Laws. Transfer of the Shares issued upon the exercise
      of this Warrant shall be restricted in the same manner and to the same
      extent as the Warrant, and the certificates representing such Shares shall
      bear substantially the following legend:

            THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT"), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS,
      AND HAVE BEEN ACQUIRED FOR INVESTMENT AND IN RELIANCE ON EXEMPTIONS UNDER
      THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO TRANSFER MAY
      BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR
      AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE
      STATE SECURITIES LAWS AND AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
      THE COMPANY.

            Holder and the Company agree to execute such other documents and
      instruments as counsel for the Company reasonably deems necessary to
      effect the compliance of the issuance of this Warrant and the Shares
      issued upon exercise hereof with applicable federal and state securities
      laws.

            (b) The Company covenants and agrees that all Shares that may be
      issued upon exercise of this Warrant will, upon issuance and payment
      therefor, be legally and validly issued and outstanding, fully paid and
      nonassessable, free from all taxes, liens, pledges, security interests,
      claims, charges and preemptive rights, if any, with respect thereto or to
      the issuance thereof. The Company shall at all times reserve and keep
      available for issuance upon the exercise of this Warrant such number of
      authorized but unissued shares of Common Stock as will be sufficient to
      permit the exercise in full of this Warrant.

      5. Transfer of Warrant. Subject to compliance with applicable federal and
state securities laws, this Warrant may be transferred by presentation of the
Warrant to the Company with written instructions for such transfer; provided in
each such case the transferee agrees to be bound by all provisions hereof. Upon
such presentation for transfer, the Company shall promptly execute and deliver a
new Warrant or Warrants in the form hereof in the name of the assignee or
assignees and in the denominations specified in such instructions.

                                       3

Warrant to Purchase Common Stock
<PAGE>

      6. Warrant Holder Not a Shareholder. Except as otherwise provided herein,
this Warrant does not confer upon Holder, as such, any right whatsoever as a
shareholder of the Company.

      7. Adjustment Upon Changes in Stock.

            (a) If all or any portion of this Warrant shall be exercised
      subsequent to any stock split, stock dividend, recapitalization,
      combination of shares of the Company, or other similar event, occurring
      after the date hereof, then the Holder exercising this Warrant shall
      receive, for the aggregate price paid upon such exercise, the aggregate
      number and class of shares which such Holder would have received if this
      Warrant had been exercised immediately prior to such stock split, stock
      dividend, recapitalization, combination of shares, or other similar event.
      If any adjustment under this Section 7(a) would create a fractional share
      of Common Stock or a right to acquire a fractional share of Common Stock,
      such fractional share shall be disregarded and the number of shares
      subject to this Warrant shall be the next higher number of shares,
      rounding all fractions upward. Whenever there shall be an adjustment
      pursuant to this Section 7(a), the Company shall forthwith notify the
      Holder or Holders of this Warrant of such adjustment, setting forth in
      reasonable detail the event requiring the adjustment and the method by
      which such adjustment was calculated.

            (b) If all or any portion of this Warrant shall be exercised
      subsequent to any merger, consolidation, exchange of shares, separation,
      reorganization or liquidation of the Company, or other similar event,
      occurring after the date, as a result of which shares of Common Stock
      shall be changed into the same or a different number of shares of the same
      or another class or classes of securities of the Company or another
      entity, or the holders of Common Stock are entitled to receive cash or
      other property, then the Holder exercising this Warrant shall receive, for
      the aggregate price paid upon such exercise, the aggregate number and
      class of shares, cash or other property which such Holder would have
      received if this Warrant had been exercised immediately prior to such
      merger, consolidation, exchange of shares, separation, reorganization or
      liquidation, or other similar event. If any adjustment under this Section
      7(b) would create a fractional share of Common Stock or a right to acquire
      a fractional share of Common Stock, such fractional share shall be
      disregarded and the number of shares subject to this Warrant shall be the
      next higher number of shares, rounding all fractions upward. Whenever
      there shall be an adjustment pursuant to this Section 7(b), the Company
      shall forthwith notify the Holder or Holders of this Warrant of such
      adjustment, setting forth in reasonable detail the event requiring the
      adjustment and the method by which such adjustment was calculated.

                                       4

Warrant to Purchase Common Stock
<PAGE>

            (c) In addition to the adjustments otherwise set forth in this
      Section 7, the Company, in its sole discretion, may reduce the Exercise
      Price or extend the expiration date of this Warrant.

      8. Certain Notices. In case at any time the Company shall propose to:

            (a) take a record of the holders of the Common Stock for the purpose
      of determining the holders thereof who are entitled to receive any
      dividend (other that a cash dividend) or other distribution, or any right
      to subscribe for, purchase or otherwise acquire any shares of stock of any
      class or any other securities or property, or to receive any other right;

            (b) transfer all or substantially all of the assets of the Company
      to, or consolidate or merge the Company with or into, any other person; or

            (c) voluntarily or involuntarily dissolve, liquidate or wind-up the
      business of the Company,

      then and in each such event the Company will mail or cause to be mailed to
      Holder a notice specifying the date on which any such record is to be
      taken for the purpose of such dividend, distribution or right and stating
      the amount and character of such dividend, distribution or right, and also
      the date on which any such transfer, consolidation, merger, dissolution,
      liquidation or winding up is to take place and the time, if any, as of
      which the holders of record of the Common Stock shall be entitled to
      exchange their Common Stock for securities or other property deliverable
      upon such transfer, consolidation, merger, dissolution, liquidation or
      winding up. Such notice shall be mailed at least twenty (20) days prior to
      the proposed record date therein specified.

      9. Registration Rights. Upon exercise of this Warrant, the Holder shall
have and be entitled to exercise the rights of registration granted under the
Common Stock Purchase and Warrant Agreement as to the Shares purchased
thereunder with respect to the shares of Common Stock issuable upon exercise of
this Warrant.

      10. Company Representations. The Company represents, warrants and
acknowledges that fair and adequate consideration has been received by the
Company in exchange for execution and delivery of this Warrant, that the
execution and delivery of this Warrant has been duly authorized by all necessary
action on the Company's part, and that this Warrant constitutes the valid and
binding obligations of the Company enforceable in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or similar laws of general applicability relating to or affecting
creditors' rights. The validity of this Warrant shall not be affected by the
cancellation, termination, lapse or invalidity of any other agreement or
arrangement between the Holder and the Company, except as may be specifically
provided herein.

                                       5

Warrant to Purchase Common Stock
<PAGE>

      11. Article and Section Headings. Numbered and titled article and section
headings are for convenience only and shall not be construed as amplifying or
limiting any of the provisions of this Warrant.

      12. Notice. Any and all notices, elections or demands permitted or
required to be made under this Warrant shall be in writing, signed by the party
giving such notice, election or demand and shall be delivered personally,
telecopied, telexed, or sent by certified mail or overnight via nationally
recognized courier service to the other party at the address set forth below, or
at such other address as may be supplied in writing and of which receipt has
been acknowledged in writing. The date of personal delivery or telecopy or two
(2) business days after the date of mailing (or the next business day after
delivery to such courier service), as the case may be, shall be the effective
date of delivery of such notice, election or demand. For the purposes of this
Warrant:

    if to Holder          to the address under Holder's signature hereto

    if to the Company     FractionAir Holdings, Inc.
                          30 Burton Hills Boulevard
                          Suite 210
                          Nashville, TN 37215
                          Attention: Michael J. Kane, CFO

    with a copy to:       the name and address of the Holder as set forth on the
                          signature page hereto.

      13. Severability. If any provisions of this Warrant or the application
thereof to any person or circumstances shall be invalid or unenforceable to any
extent, the remainder of this Warrant and the application of such provisions to
other persons or circumstances shall not be affected thereby and shall be
enforced to the greatest extent permitted by law.

      14. Entire Agreement. This Warrant between the Company and Holder
represents the entire agreement between the parties concerning the subject
matter hereof, and all oral discussions and prior agreement are merged herein.

      15. Governing Law and Amendments. This Warrant shall be construed and
enforced under the laws of the State of Tennessee applicable to contracts to be
wholly performed in such State. No amendment or modification hereof shall be
effective except in a writing executed by each of the parties hereto.

      16. Counterparts. This Warrant may be executed in any number of
counterparts and by different parties to this Warrant in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same Warrant.

                                       6

Warrant to Purchase Common Stock
<PAGE>

      17. Jurisdiction and Venue. The Company and Holder hereby consent to the
jurisdiction of the courts of the State of Tennessee and the United States
District Court for the Middle District of Tennessee, as well as to the
jurisdiction of all courts from which an appeal may be taken from such courts,
for the purpose of any suit, action or other proceeding arising out of any of
the rights or obligations under this Agreement or with respect to the
transactions contemplated hereby, and expressly waive any and all objections
they may have as to venue in any of such courts.

      IN WITNESS WHEREOF, the parties hereto have set their hands as of the date
of first above written.

                           Company:      FRACTIONAIR HOLDINGS, INC.

                                         By:
                                         ---------------------------------------

                                         Name:
                                         ---------------------------------------

                                         Title:
                                         ---------------------------------------

                           Holder:
                                         ---------------------------------------
                                         [Holder]

                           Holder's
                           Address:
                                         ---------------------------------------
                                         ---------------------------------------
                                         ---------------------------------------

                                       7
Warrant to Purchase Common StockFRACTIONAIR HOLDINGS, INC.
                            2005 STOCK INCENTIVE PLAN

      1. Purposes of the Plan. The purposes of this Stock Incentive Plan are to
attract and retain the best available personnel, to provide additional incentive
to Employees, Directors and Consultants and to promote the success of the
Company's business.

      2. Definitions. As used herein, the following definitions shall apply:

            (a) "Administrator" means the Board or any of the Committees
appointed to administer the Plan.

            (b) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

            (c) "Applicable Laws" means the legal requirements relating to the
administration of stock incentive plans, if any, under applicable provisions of
federal and state securities laws, the corporate laws of Nevada and, to the
extent other than Nevada, the corporate law of the state of the Company's
incorporation, the Code, the rules of any applicable stock exchange or national
market system, and the rules of any foreign jurisdiction applicable to Awards
granted to residents therein.

            (d) "Assumed" means for the purposes of terminating the Award (in
the case of a Corporate Transaction) and the termination of the Continuous
Service of the Grantee (in the case of a Related Entity Disposition) (i)
pursuant to a Corporate Transaction or Related Entity Disposition, as
applicable, that the Award is replaced with a comparable Award with respect to
shares of capital stock of the successor entity or its parent in connection with
the Corporate Transaction or Related Entity Disposition or (ii) pursuant to a
Corporate Transaction defined in Section 2(q)(iv) or 2(q)(v), that the Award is
affirmed by the Company. In addition for purposes of accelerating the vesting
and release of restrictions applicable to Awards, "Assumed" also means that
pursuant to a Corporate Transaction or Related Entity Disposition the Award is
replaced with a cash incentive program of the successor entity or Parent thereof
which preserves the compensation element of such Award existing at the time of
the Corporate Transaction or Related Entity Disposition and provides for
subsequent payout in accordance with the same vesting schedule applicable to
such Award. The determination of Award comparability shall be made by the
Administrator and its determination shall be final, binding and conclusive.

            (e) "Award" means the grant of an Option, Restricted Stock, or other
right or benefit under the Plan.

            (f) "Award Agreement" means the written agreement evidencing the
grant of an Award executed by the Company and the Grantee, including any
amendments thereto.

<PAGE>

            (g) "Board" means the Board of Directors of the Company.

            (h) "Cause" means, with respect to the termination by the Company or
a Related Entity of the Grantee's Continuous Service, that such termination is
for "Cause" as such term is expressly defined in a then-effective written
agreement between the Grantee and the Company or such Related Entity, or in the
absence of such then-effective written agreement and definition, is based on, in
the determination of the Administrator, the Grantee's: (i) performance of any
act or failure to perform any act in bad faith and to the detriment of the
Company or a Related Entity; (ii) dishonesty, intentional misconduct or material
breach of any agreement with the Company or a Related Entity; or (iii)
commission of a crime involving dishonesty, breach of trust, or physical or
emotional harm to any person.

            (i) "Change in Control" means a change in ownership or control of
the Company after the Registration Date effected through either of the following
transactions:

                  (i) the direct or indirect acquisition by any person or
related group of persons (other than an acquisition from or by the Company or by
a Company-sponsored employee benefit plan or by a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the
Exchange Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities pursuant to
a tender or exchange offer made directly to the Company's stockholders which a
majority of the Continuing Directors who are not Affiliates or Associates of the
offeror do not recommend such stockholders accept, or

                  (ii) a change in the composition of the Board over a period of
thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole number) ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who are
Continuing Directors.

            (j) "Code" means the Internal Revenue Code of 1986, as amended.

            (k) "Committee" means any committee appointed by the Board to
administer the Plan.

            (l) "Common Stock" means the common stock of the Company.

            (m) "Company" means FractionAir Holdings, Inc., a Nevada
corporation.

            (n) "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.

            (o) "Continuing Directors" means members of the Board who either (i)
have been Board members continuously for a period of at least thirty-six (36)
months or (ii) have been Board members for less than thirty-six (36) months and
were elected or nominated for election as Board members by at least a majority
of the Board members described in clause (i) who were still in office at the
time such election or nomination was approved by the Board.

                                        2
<PAGE>

            (p) "Continuous Service" means that the provision of services to the
Company or a Related Entity in any capacity of Employee, Director or Consultant,
is not interrupted or terminated. Continuous Service shall not be considered
interrupted in the case of (i) any approved leave of absence, (ii) transfers
among the Company, any Related Entity, or any successor, in any capacity of
Employee, Director or Consultant, 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 or Consultant (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. For purposes of each
Incentive Stock Option granted under the Plan, if such leave exceeds ninety (90)
days, and reemployment upon expiration of such leave is not guaranteed by
statute or contract, then the Incentive Stock Option shall be treated as a Non-
Qualified Stock Option on the day three (3) months and one (1) day following the
expiration of such ninety (90) day period.

            (q) "Corporate Transaction" means any of the following transactions:

                  (i) a merger or consolidation in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated;

                  (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Company (including the capital stock of
the Company's subsidiary corporations);

                  (iii) the complete liquidation or dissolution of the Company;

                  (iv) any reverse merger in which the Company is the surviving
entity but in which securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities are
transferred to a person or persons different from those who held such securities
immediately prior to such merger; or

                  (v) acquisition by any person or related group of persons
(other than the Company or by a Company-sponsored employee benefit plan) of
beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of
securities possessing more than fifty percent (50%) of the total combined voting
power of the Company's outstanding securities (whether or not in a transaction
also constituting a Change in Control).

            (r) "Covered Employee" means an Employee who is a "covered employee"
under Section 162(m)(3) of the Code.

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

                                        3
<PAGE>

            (t) "Disability" means as defined the under the long-term disability
policy of the Company or the Related Entity to which the Grantee provides
services regardless of whether the Grantee is covered by such policy. If the
Company or the Related Entity to which the Grantee provides service does not
have a long-term disability plan in place, "Disability" means that a Grantee is
unable to carry out the responsibilities and functions of the position held by
the Grantee by reason of any medically determinable physical or mental
impairment. A Grantee will not be considered to have incurred a Disability
unless he or she furnishes proof of such impairment sufficient to satisfy the
Administrator in its discretion.

            (u) "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.

            (v) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (w) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation The Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the date of determination (or, if no closing sales price or closing bid was
reported on that date, as applicable, on the last trading date such closing
sales price or closing bid was reported), as reported in The Wall Street Journal
or such other source as the Administrator deems reliable;

                  (ii) If the Common Stock is regularly quoted on an automated
quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on date of determination (or, if no such prices were
reported on that date, on the last date such prices were reported), as reported
in The Wall Street Journal or such other source as the Administrator deems
reliable; or

                  (i) (iii) In the absence of an established market for the
Common Stock of the type described in (i) and (ii), above, the Fair Market Value
thereof shall be determined by the Administrator in good faith.

            (x) "Good Reason" means the occurrence after a Corporate
Transaction, Change in Control or Related Entity Disposition of any of the
following events or conditions unless consented to by the Grantee (and the
Grantee shall be deemed to have consented to any such event or condition unless
the Grantee provides written notice of the Grantees non-acquiescence within 30
days of the effective time of such event or condition):

                                        4
<PAGE>

                  (i) a change in the Grantee's responsibilities or duties which
represents a material and substantial diminution in the Grantee's
responsibilities or duties as in effect immediately preceding the consummation
of a Corporate Transaction, Change in Control or Related Entity Disposition;

                  (ii) a reduction in the Grantee's base salary to a level below
that in effect at any time within six (6) months preceding the consummation of a
Corporate Transaction, Change in Control or Related Entity Disposition or at any
time thereafter; or

                  (iii) requiring the Grantee to be based at any place outside a
50-mile radius from the Grantee's job location or residence prior to the
Corporate Transaction, Change in Control or Related Entity Disposition except
for reasonably required travel on business which is not materially greater than
such travel requirements prior to the Corporate Transaction, Change in Control
or Related Entity Disposition.

            (y) "Grantee" means an Employee, Director or Consultant who receives
an Award under the Plan.

            (z) "Immediate Family" means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law and shall also
include adoptive relationships, any person sharing the Grantee's household
(other than a tenant or employee), a trust in which these persons (or the
Grantee) have more than fifty percent (50%) of the beneficial interest, a
foundation in which these persons (or the Grantee) control the manage of assets,
and any other entity in which these persons (or the Grantee) own more than fifty
percent (50%) of the voting interests.

            (aa) "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

            (bb) "Non-Qualified Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

            (cc) "Officer" means a person who is an officer of the Company or a
Related Entity within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder.

            (dd) "Option" means an option to purchase Shares pursuant to an
Award Agreement granted under the Plan.

            (ee) "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the ------ Code.

            (ff) "Performance-Based Compensation" means compensation qualifying
as "performance-based compensation" under Section 162(m) of the Code.

            (gg) "Plan" means this 2005 Stock Incentive Plan.

                                       5
<PAGE>

            (hh) "Post-Termination Exercise Period" means the period specified
in the Award Agreement of not less than three (3) months commencing on the date
of termination (other than termination by the Company or any Related Entity for
Cause) of the Grantee's Continuous Service, or such longer period as may be
applicable upon death or Disability

            (ii) "Registration Date" means the first to occur of (i) the closing
of the first sale to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended, of (A) the Common Stock or (B) the
same class of securities of a successor corporation (or its Parent) issued
pursuant to a Corporate Transaction in exchange for or in substitution of the
Common Stock; and (ii) in the event of a Corporate Transaction, the date of the
consummation of the Corporate Transaction if the same class of securities of the
successor corporation (or its Parent) issuable in such Corporate Transaction
shall have been sold to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended, on or prior to the date of
consummation of such Corporate Transaction.

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

            (kk) "Related Entity Disposition" means the sale, distribution or
other disposition by the Company, a Parent or a Subsidiary of all or
substantially all of the interests of the Company, a Parent or a Subsidiary in
any Related Entity effected by a sale, merger or consolidation or other
transaction involving that Related Entity or the sale of all or substantially
all of the assets of that Related Entity, other than any Related Entity
Disposition to the Company, a Parent or a Subsidiary.

            (ll) "Restricted Stock" means Shares issued under the Plan to the
Grantee for such consideration, if any, and subject to such restrictions on
transfer, rights of first refusal, repurchase provisions, forfeiture provisions,
and other terms and conditions as established by the Administrator.

            (mm) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange
Act or any successor thereto.

            (nn) "Share" means a share of the Common Stock.

            (oo) "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

      3. Stock Subject to the Plan.

            (a) Subject to the provisions of Section 10 below, the maximum
aggregate number of Shares which may be issued pursuant to all Awards (including
Incentive Stock Options) is Ten Million (10,000,000) Shares, increased by (i) an
annual increase to be added on the first day of the Company's fiscal year
beginning in 2006 equal to Two Million (2,000,000) Shares (appropriately
adjusted for any stock splits, reverse stock splits, recapitalizations or
similar events), or (ii) a lesser number of Shares as determined by the
Administrator.

                                       6
<PAGE>

            (b) Any Shares covered by an Award (or portion of an Award) which is
forfeited or canceled, expires or is settled in cash, shall be deemed not to
have been issued for purposes of determining the maximum aggregate number of
Shares which may be issued under the Plan. Shares that actually have been issued
under the Plan pursuant to an Award shall not be returned to the Plan and shall
not become available for future issuance under the Plan, except that if unvested
Shares are forfeited, or repurchased by the Company at their original purchase
price, such Shares shall become available for future grant under the Plan.

      4. Administration of the Plan.

            (a) Plan Administrator.

                  (i) Administration with Respect to Directors and Officers.
With respect to grants of Awards to Directors or Employees who are also Officers
or Directors of the Company, the Plan shall be administered by (A) the Board or
(B) a Committee designated by the Board, which Committee shall be constituted in
such a manner as to satisfy the Applicable Laws and to permit such grants and
related transactions under the Plan to be exempt from Section 16(b) of the
Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the
Board.

                  (ii) Administration With Respect to Consultants and Other
Employees. With respect to grants of Awards to Employees or Consultants who are
neither Directors nor Officers of the Company, the Plan shall be administered by
(A) the Board or (B) a Committee designated by the Board, which Committee shall
be constituted in such a manner as to satisfy the Applicable Laws. Once
appointed, such Committee shall continue to serve in its designated capacity
until otherwise directed by the Board. The Board may authorize one or more
officers to grant such Awards and may limit such authority as the Board
determines from time to time.

                  (iii) Administration With Respect to Covered Employees.
Notwithstanding the foregoing, as of and after the date that the exemption for
the Plan under Section 162(m) of the Code expires, as set forth in Section 18
herein, grants of Awards to any Covered Employee intended to qualify as
Performance-Based Compensation shall be made only by a Committee (or
subcommittee of a Committee) which is comprised solely of two or more Directors
eligible to serve on a committee making Awards qualifying as Performance-Based
Compensation. In the case of such Awards granted to Covered Employees,
references to the "Administrator" or to a "Committee" shall be deemed to be
references to such Committee or subcommittee.

                  (iv) Administration Errors. In the event an Award is granted
in a manner inconsistent with the provisions of this subsection (a), such Award
may be presumptively valid as of its grant date to the extent permitted by the
Applicable Laws.

                                       7
<PAGE>

            (b) Powers of the Administrator. Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator
shall have the authority, in its discretion:

                  (i) to select the Employees, Directors and Consultants to whom
Awards may be granted from time to time hereunder;

                  (ii) to determine whether and to what extent Awards are
granted hereunder;

                  (iii) to determine the number of Shares or the amount of other
consideration to be covered by each Award granted hereunder;

                  (iv) to approve forms of Award Agreements for use under the
Plan;

                  (v) to determine the terms and conditions of any Award granted
hereunder;

                  (vi) to establish additional terms, conditions, rules or
procedures to accommodate the rules or laws of applicable foreign jurisdictions
and to afford Grantees favorable treatment under such rules or laws; provided,
however, that no Award shall be granted under any such additional terms,
conditions, rules or procedures with terms or conditions which are inconsistent
with the provisions of the Plan;

                  (vii) to amend the terms of any outstanding Award granted
under the Plan, provided that any amendment that would adversely affect the
Grantee's rights under an outstanding Award shall not be made without the
Grantee's written consent;

                  (viii) to construe and interpret the terms of the Plan and
Awards, including without limitation, any notice of award or Award Agreement,
granted pursuant to the Plan; and

                  (ix) to take such other action, not inconsistent with the
terms of the Plan, as the Administrator deems appropriate.

      5. Eligibility. Awards other than Incentive Stock Options may be granted
to Employees, Directors and Consultants. Incentive Stock Options may be granted
only to Employees of the Company, a Parent or a Subsidiary. An Employee,
Director or Consultant who has been granted an Award may, if otherwise eligible,
be granted additional Awards. Awards may be granted to such Employees, Directors
or Consultants who are residing in foreign jurisdictions as the Administrator
may determine from time to time.

      6. Terms and Conditions of Awards.

            (a) Type of Awards. The Administrator is authorized under the Plan
to award any type of arrangement to an Employee, Director or Consultant that is
not inconsistent with the provisions of the Plan and that by its terms involves
or might involve the issuance of (i) Shares, (ii) an Option, or similar right
with a fixed or variable price related to the Fair Market Value of the Shares
and with an exercise or conversion privilege related to the passage of time, the
occurrence of one or more events, or the satisfaction of performance criteria or
other conditions, or (iii) any other security with the value derived from the
value of the Shares. Such awards include, without limitation, Options, or sales
or bonuses of Restricted Stock, and an Award may consist of one such security or
benefit, or two (2) or more of them in any combination or alternative.

                                       8
<PAGE>

            (b) Designation of Award. Each Award shall be designated in the
Award Agreement. In the case of an Option, the Option shall be designated as
either an Incentive Stock Option or a Non-Qualified Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of Shares subject to Options designated as Incentive Stock Options which
become exercisable for the first time by a Grantee during any calendar year
(under all plans of the Company or any Parent or Subsidiary) exceeds $100,000,
such excess Options, to the extent of the Shares covered thereby in excess of
the foregoing limitation, shall be treated as Non-Qualified Stock Options. For
this purpose, Incentive Stock Options shall be taken into account in the order
in which they were granted, and the Fair Market Value of the Shares shall be
determined as of the grant date of the relevant Option.

            (c) Conditions of Award. Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase
provisions, rights of first refusal, forfeiture provisions, form of payment
(cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance
criteria established by the Administrator may be based on any one of, or
combination of, increase in share price, earnings per share, total stockholder
return, return on equity, return on assets, return on investment, net operating
income, cash flow, revenue, economic value added, personal management
objectives, or other measure of performance selected by the Administrator.
Partial achievement of the specified criteria may result in a payment or vesting
corresponding to the degree of achievement as specified in the Award Agreement.

            (d) Acquisitions and Other Transactions. The Administrator may issue
Awards under the Plan in settlement, assumption or substitution for, outstanding
awards or obligations to grant future awards in connection with the Company or a
Related Entity acquiring another entity, an interest in another entity or an
additional interest in a Related Entity whether by merger, stock purchase, asset
purchase or other form of transaction.

            (e) Separate Programs. The Administrator may establish one or more
separate programs under the Plan for the purpose of issuing particular forms of
Awards to one or more classes of Grantees on such terms and conditions as
determined by the Administrator from time to time.

            (f) Individual Option Limit. Following the date that the exemption
from application of Section 162(m) of the Code described in Section 18 (or any
exemption having similar effect) ceases to apply to Awards, the maximum number
of Shares with respect to which Options may be granted to any Grantee in any
fiscal year of the Company shall be one million (1,000,000) Shares. The
foregoing limitation shall be adjusted proportionately in connection with any
change in the Company's capitalization pursuant to Section 11, below. To the
extent required by Section 162(m) of the Code or the regulations thereunder, in
applying the foregoing limitation with respect to a Grantee, if any Option is
canceled, the canceled Option shall continue to count against the maximum number
of Shares with respect to which Options may be granted to the Grantee. For this
purpose, the repricing of an Option shall be treated as the cancellation of the
existing Option and the grant of a new Option.

                                       9
<PAGE>

            (g) Early Exercise. The Award Agreement may, but need not, include a
provision whereby the Grantee may elect at any time while an Employee, Director
or Consultant to exercise any part or all of the Award prior to full vesting of
the Award. Any unvested Shares received pursuant to such exercise may be subject
to a repurchase right in favor of the Company or a Related Entity or to any
other restriction the Administrator determines to be appropriate.

            (h) Term of Award. The term of each Award shall be the term stated
in the Award Agreement, provided, however, that the term shall be no more than
ten (10) years from the date of grant thereof. However, in the case of an
Incentive Stock Option granted to a Grantee who, at the time the Option is
granted, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the term of
the Incentive Stock Option shall be five (5) years from the date of grant
thereof or such shorter term as may be provided in the Award Agreement.

            (i) Transferability of Awards. Non-Qualified Stock Options shall be
transferable (i) to the extent provided in the Award Agreement and to members of
Grantee's Immediate Family and (ii) by will, and by the laws of descent and
distribution. Incentive Stock Options and other Awards may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Grantee, only by the Grantee.

            (j) Time of Granting Awards. The date of grant of an Award shall for
all purposes be the date on which the Administrator makes the determination to
grant such Award, or such other date as is determined by the Administrator.
Notice of the grant determination shall be given to each Employee, Director or
Consultant to whom an Award is so granted within a reasonable time after the
date of such grant.

      7. Award Exercise or Purchase Price, Consideration and Taxes.

            (a) Exercise or Purchase Price. The exercise or purchase price, if
any, for an Award shall be as follows:

                  (i) In the case of an Incentive Stock Option:

                        (A) granted to an Employee who, at the time of the grant
of such Incentive Stock Option owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the per Share exercise price shall be not less than one hundred
ten percent (110%) of the Fair Market Value per Share on the date of grant; or

                                       10
<PAGE>

                        (B) granted to any Employee other than an Employee
described in the preceding paragraph, the per Share exercise price shall be not
less than one hundred percent (100%) of the Fair Market Value per Share on the
date of grant.

                  (ii) In the case of a Non-Qualified Stock Option:

                        (A) granted to a person who, at the time of the grant of
such Option, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be not less than one hundred ten percent (110%)
of the Fair Market Value per Share on the date of grant; or

                        (B) granted to any person other than a person described
in the preceding paragraph, the per Share exercise price shall be not less than
eighty-five percent (85%) of the Fair Market Value per Share on the date of
grant.

                  (iii) In the case of Awards intended to qualify as
Performance-Based Compensation, the exercise or purchase price, if any, shall be
not less than one hundred percent (100%) of the Fair Market Value per Share on
the date of grant.

                  (iv) In the case of the sale of Shares:

                        (A) granted to a person who, at the time of the grant of
such Award, or at the time the purchase is consummated, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the per Share purchase price shall be not
less than one hundred percent (100%) of the Fair Market Value per Share on the
date of grant; or

                        (B) granted to any person other than a person described
in the preceding paragraph, the per Share purchase price shall be not less than
eighty-five percent (85%) of the Fair Market Value per Share on the date of
grant.

                  (v) In the case of other Awards, such price as is determined
by the Administrator.

                  (vi) Notwithstanding the foregoing provisions of this Section
7(a), in the case of an Award issued pursuant to Section 6(d), above, the
exercise or purchase price for the Award shall be determined in accordance with
the principles of Section 424(a) of the Code.

            (b) Consideration. Subject to Applicable Laws, the consideration to
be paid for the Shares to be issued upon exercise or purchase of an Award
including the method of payment, shall be determined by the Administrator (and,
in the case of an Incentive Stock Option, shall be determined at the time of
grant). In addition to any other types of consideration the Administrator may
determine, the Administrator is authorized to accept as consideration for Shares
issued under the Plan the following, provided that the portion of the
consideration equal to the par value of the Shares must be paid in cash or other
legal consideration permitted by Nevada law:

                                       11
<PAGE>

                  (i) cash;

                  (ii) check;

                  (iii) delivery of Grantee's promissory note with such
recourse, interest, security, and redemption provisions as the Administrator
determines as appropriate;

                  (iv) surrender of Shares or delivery of a properly executed
form of attestation of ownership of Shares as the Administrator may require
(including withholding of Shares otherwise deliverable upon exercise of the
Award) which have a Fair Market Value on the date of surrender or attestation
equal to the aggregate exercise price of the Shares as to which said Award shall
be exercised (but only to the extent that such exercise of the Award would not
result in an accounting compensation charge with respect to the Shares used to
pay the exercise price unless otherwise determined by the Administrator);

                  (v) with respect to Options, payment through a broker-dealer
sale and remittance procedure pursuant to which the Grantee (A) shall provide
written instructions to a Company designated brokerage firm to effect the
immediate sale of some or all of the purchased Shares and remit to the Company,
out of the sale proceeds available on the settlement date, sufficient funds to
cover the aggregate exercise price payable for the purchased Shares and (B)
shall provide written directives to the Company to deliver the certificates for
the purchased Shares directly to such brokerage firm in order to complete the
sale transaction; or

                  (vi) any combination of the foregoing methods of payment.

            (c) Taxes. No Shares shall be delivered under the Plan to any
Grantee or other person until such Grantee or other person has made arrangements
acceptable to the Administrator for the satisfaction of any foreign, federal,
state, or local income and employment tax withholding obligations, including,
without limitation, obligations incident to the receipt of Shares or the
disqualifying disposition of Shares received on exercise of an Incentive Stock
Option. Upon exercise of an Award the Company shall withhold or collect from
Grantee an amount sufficient to satisfy such tax obligations.

      8. Exercise of Award.

            (a) Procedure for Exercise; Rights as a Stockholder.

                  (i) Any Award granted hereunder shall be exercisable at such
times and under such conditions as determined by the Administrator under the
terms of the Plan and specified in the Award Agreement. Notwithstanding the
foregoing, in the case of an Option granted to an Officer, Director or
Consultant, the Award Agreement may provide that the Option may become
exercisable, subject to reasonable conditions such as such Officer's, Director's
or Consultant's Continuous Service, at any time or during any period established
in the Award Agreement.

                                       12
<PAGE>

                  (ii) An Award shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the
terms of the Award by the person entitled to exercise the Award and full payment
for the Shares with respect to which the Award is exercised, including, to the
extent selected, use of the broker-dealer sale and remittance procedure to pay
the purchase price as provided in Section 7(b)(v). Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such Shares, no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to Shares subject to an Award,
notwithstanding the exercise of an Option or other Award. The Company shall
issue (or cause to be issued) such stock certificates promptly upon exercise of
the Award. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the stock certificate is issued, except as
provided in the Award Agreement or Section 10 below.

            (b) Exercise of Award Following Termination of Continuous Service.

                  (i) An Award may not be exercised after the termination date
of such Award set forth in the Award Agreement and may be exercised following
the termination of a Grantee's Continuous Service only to the extent provided in
the Award Agreement.

                  (ii) Where the Award Agreement permits a Grantee to exercise
an Award following the termination of the Grantee's Continuous Service for a
specified period, the Award shall terminate to the extent not exercised on the
last day of the specified period or the last day of the original term of the
Award, whichever occurs first.

                  (iii) Any Award designated as an Incentive Stock Option to the
extent not exercised within the time permitted by law for the exercise of
Incentive Stock Options following the termination of a Grantee's Continuous
Service shall convert automatically to a Non-Qualified Stock Option and
thereafter shall be exercisable as such to the extent exercisable by its terms
for the period specified in the Award Agreement.

      9. Conditions Upon Issuance of Shares.

            (a) Shares shall not be issued pursuant to the exercise of an Award
unless the exercise of such Award and the issuance and delivery of such Shares
pursuant thereto shall comply with all Applicable Laws, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

            (b) As a condition to the exercise of an Award, the Company may
require the person exercising such Award to represent and warrant at the time of
any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any
Applicable Laws.

                                       13
<PAGE>

      10. Adjustments Upon Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the number of Shares covered by each
outstanding Award, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which
have been returned to the Plan, the exercise or purchase price of each such
outstanding Award, the maximum number of Shares with respect to which Options
may be granted to any Grantee in any fiscal year of the Company, as well as any
other terms that the Administrator determines require adjustment shall be
proportionately adjusted for (i) any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Shares, or similar transaction affecting
the Shares, (ii) any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company, or (iii) as the
Administrator may determine in its discretion, any other transaction with
respect to Common Stock to which Section 424(a) of the Code applies or a similar
transaction; provided, however that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Administrator and its
determination shall be final, binding and conclusive. Except as the
Administrator determines, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason hereof shall be made with respect to, the
number or price of Shares subject to an Award.

      11. Corporate Transactions/Changes in Control

            (a) Termination of Award to Extent Not Assumed

                  (i) Corporate Transaction. Effective upon the consummation of
a Corporate Transaction, all outstanding Awards under the Plan shall terminate.
However, all such Awards shall not terminate to the extent they are Assumed in
connection with the Corporate Transaction.

                  (ii) Related Entity Disposition. Effective upon the
consummation of a Related Entity Disposition, for purposes of the Plan and all
Awards, there shall be a deemed termination of Continuous Service of each
Grantee who is at the time engaged primarily in service to the Related Entity
involved in such Related Entity Disposition and each Award of such Grantee which
is at the time outstanding under the Plan shall be exercisable in accordance
with the terms of the Award Agreement evidencing such Award. However, such
Continuous Service shall not be deemed to terminate as to the portion of any
such award that is Assumed.

            (b) Acceleration of Award Upon Corporate Transaction/Change in
Control/Related Entity Disposition. Except as provided otherwise in an
individual Award Agreement, in the event of any Corporate Transaction, Change in
Control or Related Entity Disposition, there will not be any acceleration of
vesting or exercisability of any Award.

      12. Effective Date and Term of Plan. The Plan shall become effective upon
the earlier to occur of its adoption by the Board or its approval by the
stockholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated. Subject to Section 13 below, and Applicable
Laws, Awards may be granted under the Plan upon its becoming effective.

                                       14
<PAGE>

      13. Amendment, Suspension or Termination of the Plan.

            (a) The Board may at any time amend, suspend or terminate the Plan.
To the extent necessary to comply with Applicable Laws, the Company shall obtain
stockholder approval of any Plan amendment in such a manner and to such a degree
as required.

            (b) No Award may be granted during any suspension of the Plan or
after termination of the Plan.

            (c) Any amendment, suspension or termination of the Plan (including
termination of the Plan under Section 12 above) shall not affect Awards already
granted, and such Awards shall remain in full force and effect as if the Plan
had not been amended, suspended or terminated, unless mutually agreed otherwise
between the Grantee and the Administrator, which agreement must be in writing
and signed by the Grantee and the Company.

      14. Reservation of Shares.

            (a) The Company, during the term of the Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.

            (b) The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

      15. No Effect on Terms of Employment/Consulting Relationship. The Plan
shall not confer upon any Grantee any right with respect to the Grantee's
Continuous Service, nor shall it interfere in any way with his or her right or
the Company's right to terminate the Grantee's Continuous Service at any time,
with or without Cause, and with or without notice. The Company's ability to
terminate the employment of a Grantee who is employed at will is in no way
affected by its determination that the Grantee's Continuous Service has been
terminated for Cause for the purposes of this Plan.

      16. No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a
Related Entity, Awards shall not be deemed compensation for purposes of
computing benefits or contributions under any retirement plan of the Company or
a Related Entity, and shall not affect any benefits under any other benefit plan
of any kind or any benefit plan subsequently instituted under which the
availability or amount of benefits is related to level of compensation. The Plan
is not a "Retirement Plan" or "Welfare Plan" under the Employee Retirement
Income Security Act of 1974, as amended.

                                       15
<PAGE>

      17. Stockholder Approval. Continuance of the Plan shall be subject to
approval by the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such stockholder approval shall be obtained
in the degree and manner required under Applicable Laws. Any Award exercised
before stockholder approval is obtained shall be rescinded if stockholder
approval is not obtained within the time prescribed, and Shares issued on the
exercise of any such Award shall not be counted in determining whether
stockholder approval is obtained.

      18. Effect of Section 162(m) of the Code. The Plan, and all Awards issued
thereunder, are intended to be exempt from the application of Section 162(m) of
the Code, which restricts under certain circumstances the Federal income tax
deduction for compensation paid by a public company to named executives in
excess of $1 million per year. The exemption is based on Treasury Regulation
Section 1.162-27(f), in the form existing on the effective date of the Plan,
with the understanding that such regulation generally exempts from the
application of Section 162(m) of the Code compensation paid pursuant to a plan
that existed before a company becomes publicly held. Under such Treasury
Regulation, this exemption is available to the Plan for the duration of the
period that lasts until the earlier of (i) the expiration of the Plan, (ii) the
material modification of the Plan, (iii) the exhaustion of the maximum number of
shares of Common Stock available for Awards under the Plan, as set forth in
Section 3(a), (iv) the first meeting of stockholders at which directors are to
be elected that occurs after the close of the third calendar year following the
calendar year in which the Company first becomes subject to the reporting
obligations of Section 12 of the Exchange Act, or (v) such other date required
by Section 162(m) of the Code and the rules and regulations promulgated
thereunder. The Committee may, without stockholder approval, amend the Plan
retroactively and/or prospectively to the extent it determines necessary in
order to comply with any subsequent clarification of Section 162(m) of the Code
required to preserve the Company's Federal income tax deduction for compensation
paid pursuant to the Plan. To the extent that the Administrator determines as of
the date of grant of an Award that (i) the Award is intended to qualify as
Performance-Based Compensation and (ii) the exemption described above is no
longer available with respect to such Award, such Award shall not be effective
until any stockholder approval required under Section 162(m) of the Code has
been obtained.

                                       16

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