Document:

EXHIBIT 10.11

                             SAGAMORE HOLDINGS, INC.

                            PLACEMENT AGENT AGREEMENT

                                                 Dated as of: September 15, 2004

Newbridge Securities Corporation
1451 Cypress Creek Road, Suite 204
Fort Lauderdale, Florida 33309

Ladies and Gentlemen:

         The undersigned, Sagamore Holdings, Inc., a Florida corporation (the
"Company"), hereby agrees with Newbridge Securities Corporation (the "Placement
Agent") and Cornell Capital Partners, LP, a Delaware Limited Partnership (the
"Investor"), as follows:

      1. Offering. The Company hereby engages the Placement Agent to act as its
exclusive placement agent in connection with the Standby Equity Distribution
Agreement of even date herewith (the "Standby Equity Distribution Agreement"),
pursuant to which the Company shall issue and sell to the Investor, from time to
time, and the Investor shall purchase from the Company (the "Offering") up to
Thirty Million Dollars ($30,000,000) of the Company's common stock (the
"Commitment Amount"), par value $.001 per share (the "Common Stock"), at price
per share equal to the Purchase Price, as that term is defined in the Standby
Equity Distribution Agreement. The Placement Agent services shall consist of
reviewing the terms of the Standby Equity Distribution Agreement and advising
the Company with respect to those terms.

      All capitalized terms used herein and not otherwise defined herein shall
have the same meaning ascribed to them as in the Standby Equity Distribution
Agreement. The Investor will be granted certain registration rights with respect
to the Common Stock as more fully set forth in the Registration Rights Agreement
of even date herewith between the Company and the Investor (the "Registration
Rights Agreement"). The documents to be executed and delivered in connection
with the Offering, including, but not limited to, this Agreement, the Standby
Equity Distribution Agreement, the Registration Rights Agreement, and the Escrow
Agreement of even date herewith (the "Escrow Agreement"), are referred to
sometimes hereinafter collectively as the "Offering Materials." The Company's
Common Stock purchased by the Investor hereunder or to be issued in connection
with the conversion of any debentures are sometimes referred to hereinafter as
the "Securities." The Placement Agent shall not be obligated to sell any
Securities.

      2. Compensation.

            A. For its services hereunder, the Company shall pay to the
Placement Agent a fee of Ten Thousand Dollars ($10,000), payable by the issuance
of shares of the Company's Common Stock (the "Placement Agent's Shares"), which
shall be determined by dividing $10,000 by the Volume Weighted Average Price of

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the Company's Common Stock on the fifth (5th) trading day of the Company's
Common Stock. The Placement Agent shall be entitled to "piggy-back" registration
rights, which shall be triggered upon registration of any shares of Common Stock
by the Investor with respect to the Placement Agent's Shares pursuant to the
Registration Rights Agreement.

      3. Representations, Warranties and Covenants of the Placement Agent.

            A. The Placement Agent represents, warrants and covenants as
follows:

                  (i) The Placement Agent has the necessary power to enter into
this Agreement and to consummate the transactions contemplated hereby.

                  (ii) The execution and delivery by the Placement Agent of this
Agreement and the consummation of the transactions contemplated herein will not
result in any violation of, or be in conflict with, or constitute a default
under, any agreement or instrument to which the Placement Agent is a party or by
which the Placement Agent or its properties are bound, or any judgment, decree,
order or, to the Placement Agent's knowledge, any statute, rule or regulation
applicable to the Placement Agent. This Agreement when executed and delivered by
the Placement Agent, will constitute the legal, valid and binding obligations of
the Placement Agent, enforceable in accordance with their respective terms,
except to the extent that (a) the enforceability hereof or thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, (b)
the enforceability hereof or thereof is subject to general principles of equity,
or (c) the indemnification provisions hereof or thereof may be held to be in
violation of public policy.

                  (iii) Upon receipt and execution of this Agreement, the
Placement Agent will promptly forward copies of this Agreement to the Company or
its counsel and the Investor or its counsel.

                  (iv) The Placement Agent will not intentionally take any
action that it reasonably believes would cause the Offering to violate the
provisions of the Securities Act of 1933, as amended (the "1933 Act"), the
Securities Exchange Act of 1934 (the "1934 Act"), the respective rules and
regulations promulgated thereunder (the "Rules and Regulations") or applicable
"Blue Sky" laws of any state or jurisdiction.

                  (v) The Placement Agent is a member of the National
Association of Securities Dealers, Inc., and is a broker-dealer registered as
such under the 1934 Act and under the securities laws of the states in which the
Securities will be offered or sold by the Placement Agent unless an exemption
for such state registration is available to the Placement Agent. The Placement
Agent is in material compliance with the rules and regulations applicable to the
Placement Agent generally and applicable to the Placement Agent's participation
in the Offering.

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      4. Representations and Warranties of the Company.

            A. The Company represents and warrants as follows:

                  (i) The execution, delivery and performance of each of this
Agreement, the Standby Equity Distribution Agreement, the Escrow Agreement, and
the Registration Rights Agreement has been or will be duly and validly
authorized by the Company and is, or with respect to this Agreement, the Standby
Equity Distribution Agreement, the Escrow Agreement, and the Registration Rights
Agreement will be, a valid and binding agreement of the Company, enforceable in
accordance with its respective terms, except to the extent that (a) the
enforceability hereof or thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect and
affecting the rights of creditors generally, (b) the enforceability hereof or
thereof is subject to general principles of equity or (c) the indemnification
provisions hereof or thereof may be held to be in violation of public policy.
The Securities to be issued pursuant to the transactions contemplated by this
Agreement and the Standby Equity Distribution Agreement have been duly
authorized and, when issued and paid for in accordance with this Agreement, the
Standby Equity Distribution Agreement and the certificates/instruments
representing such Securities, will be valid and binding obligations of the
Company, enforceable in accordance with their respective terms, except to the
extent that (1) the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws from time to time in
effect and affecting the rights of creditors generally, and (2) the
enforceability thereof is subject to general principles of equity. All corporate
action required to be taken for the authorization, issuance and sale of the
Securities has been duly and validly taken by the Company.

                  (ii) The Company has a duly authorized, issued and outstanding
capitalization as set forth herein and in the Standby Equity Distribution
Agreement. The Company is not a party to or bound by any instrument, agreement
or other arrangement providing for it to issue any capital stock, rights,
warrants, options or other securities, except for this Agreement, the agreements
described herein and as described in the Standby Equity Distribution Agreement
and the agreements described therein. All issued and outstanding securities of
the Company have been duly authorized and validly issued and are fully paid and
non-assessable; the holders thereof have no rights of rescission or preemptive
rights with respect thereto and are not subject to personal liability solely by
reason of being security holders; and none of such securities were issued in
violation of the preemptive rights of any holders of any security of the
Company. As of the date hereof, the authorized capital stock of the Company
consists of 2,100,000,000 shares of stock, of which 2,000,000,000 shares are
designated as Common Stock and 100,000,000 shares are designated as Preferred
Stock. As of the date hereof, there are 100,000,000 shares of Common Stock,
6,000,000 shares of Series A Preferred Stock and 10,000,000 shares of Series B
Preferred Stock outstanding.

                  (iii) The Common Stock to be issued in accordance with this
Agreement and the Standby Equity Distribution Agreement have been duly
authorized and, when issued and paid for in accordance with this Agreement, the
Standby Equity Distribution Agreement and the certificates/instruments
representing such Common Stock will be validly issued, fully-paid and
non-assessable; the holders thereof will not be subject to personal liability
solely by reason of being such holders; such Securities are not and will not be
subject to the preemptive rights of any holder of any security of the Company.

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                  (iv) The Company has good and marketable title to, or valid
and enforceable leasehold estates in, all items of real and personal property
necessary to conduct its business (including, without limitation, any real or
personal property stated in the Offering Materials to be owned or leased by the
Company), free and clear of all liens, encumbrances, claims, security interests
and defects of any material nature whatsoever, other than those set forth in the
Offering Materials and liens for taxes not yet due and payable.

                  (v) There is no litigation or governmental proceeding pending
or, to the best of the Company's knowledge, threatened against, or involving the
properties or business of the Company, except as set forth in the Offering
Materials.

                  (vi) The Company has been duly organized and is validly
existing as a corporation in good standing under the laws of the State of
Florida. Except as set forth in the Offering Materials, the Company does not own
or control, directly or indirectly, an interest in any other corporation,
partnership, trust, joint venture or other business entity. The Company is duly
qualified or licensed and in good standing as a foreign corporation in each
jurisdiction in which the character of its operations requires such
qualification or licensing and where failure to so qualify would have a material
adverse effect on the Company. The Company has all requisite corporate power and
authority, and all material and necessary authorizations, approvals, orders,
licenses, certificates and permits of and from all governmental regulatory
officials and bodies (domestic and foreign) to conduct its businesses (and
proposed business) as described in the Offering Materials. Any disclosures in
the Offering Materials concerning the effects of foreign, federal, state and
local regulation on the Company's businesses as currently conducted and as
contemplated are correct in all material respects and do not omit to state a
material fact. The Company has all corporate power and authority to enter into
this Agreement, the Standby Equity Distribution Agreement, the Registration
Rights Agreement, and the Escrow Agreement, to carry out the provisions and
conditions hereof and thereof, and all consents, authorizations, approvals and
orders required in connection herewith and therewith have been obtained. No
consent, authorization or order of, and no filing with, any court, government
agency or other body is required by the Company for the issuance of the
Securities or execution and delivery of the Offering Materials except for
applicable federal and state securities laws. The Company, since its inception,
has not incurred any liability arising under or as a result of the application
of any of the provisions of the 1933 Act, the 1934 Act or the Rules and
Regulations.

                  (vii) There has been no material adverse change in the
condition or prospects of the Company, financial or otherwise, from the latest
dates as of which such condition or prospects, respectively, are set forth in
the Offering Materials, and the outstanding debt, the property and the business
of the Company conform in all material respects to the descriptions thereof
contained in the Offering Materials.

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                  (viii) Except as set forth in the Offering Materials, the
Company is not in breach of, or in default under, any term or provision of any
material indenture, mortgage, deed of trust, lease, note, loan or Standby Equity
Distribution Agreement or any other material agreement or instrument evidencing
an obligation for borrowed money, or any other material agreement or instrument
to which it is a party or by which it or any of its properties may be bound or
affected. The Company is not in violation of any provision of its charter or
by-laws or in violation of any franchise, license, permit, judgment, decree or
order, or in violation of any material statute, rule or regulation. Neither the
execution and delivery of the Offering Materials nor the issuance and sale or
delivery of the Securities, nor the consummation of any of the transactions
contemplated in the Offering Materials nor the compliance by the Company with
the terms and provisions hereof or thereof, has conflicted with or will conflict
with, or has resulted in or will result in a breach of, any of the terms and
provisions of, or has constituted or will constitute a default under, or has
resulted in or will result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or pursuant to the terms
of any indenture, mortgage, deed of trust, note, loan or any other agreement or
instrument evidencing an obligation for borrowed money, or any other agreement
or instrument to which the Company may be bound or to which any of the property
or assets of the Company is subject except (a) where such default, lien, charge
or encumbrance would not have a material adverse effect on the Company and (b)
as described in the Offering Materials; nor will such action result in any
violation of the provisions of the charter or the by-laws of the Company or,
assuming the due performance by the Placement Agent of its obligations
hereunder, any material statute or any material order, rule or regulation
applicable to the Company of any court or of any foreign, federal, state or
other regulatory authority or other government body having jurisdiction over the
Company.

                  (ix) Subsequent to the dates as of which information is given
in the Offering Materials, and except as may otherwise be indicated or
contemplated herein or therein and the securities offered pursuant to the
Securities Purchase Agreement the Company has not (a) issued any securities or
incurred any liability or obligation, direct or contingent, for borrowed money,
or (b) entered into any transaction other than in the ordinary course of
business, or (c) declared or paid any dividend or made any other distribution on
or in respect of its capital stock. Except as described in the Offering
Materials, the Company has no outstanding obligations to any officer or director
of the Company.

                  (x) There are no claims for services in the nature of a
finder's or origination fee with respect to the sale of the Common Stock or any
other arrangements, agreements or understandings that may affect the Placement
Agent's compensation, as determined by the National Association of Securities
Dealers, Inc.

                  (xi) The Company owns or possesses, free and clear of all
liens or encumbrances and rights thereto or therein by third parties, the
requisite licenses or other rights to use all trademarks, service marks,
copyrights, service names, trade names, patents, patent applications and
licenses necessary to conduct its business (including, without limitation, any
such licenses or rights described in the Offering Materials as being owned or
possessed by the Company) and, except as set forth in the Offering Materials,
there is no claim or action by any person pertaining to, or proceeding, pending
or threatened, which challenges the exclusive rights of the Company with respect
to any trademarks, service marks, copyrights, service names, trade names,
patents, patent applications and licenses used in the conduct of the Company's
businesses (including, without limitation, any such licenses or rights described
in the Offering Materials as being owned or possessed by the Company) except any
claim or action that would not have a material adverse effect on the Company;
the Company's current products, services or processes do not infringe or will
not infringe on the patents currently held by any third party.

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                  (xii) Except as described in the Offering Materials, the
Company is not under any obligation to pay royalties or fees of any kind
whatsoever to any third party with respect to any trademarks, service marks,
copyrights, service names, trade names, patents, patent applications, licenses
or technology it has developed, uses, employs or intends to use or employ, other
than to their respective licensors.

                  (xiii) Subject to the performance by the Placement Agent of
its obligations hereunder, the offer and sale of the Securities complies, and
will continue to comply, in all material respects with the requirements of Rule
506 of Regulation D promulgated by the SEC pursuant to the 1933 Act and any
other applicable federal and state laws, rules, regulations and executive
orders. Neither the Offering Materials nor any amendment or supplement thereto
nor any documents prepared by the Company in connection with the Offering will
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. All
statements of material facts in the Offering Materials are true and correct as
of the date of the Offering Materials.

                  (xiv) All material taxes which are due and payable from the
Company have been paid in full or adequate provision has been made for such
taxes on the books of the Company, except for those taxes disputed in good faith
by the Company.

                  (xv) None of the Company nor any of its officers, directors,
employees or agents, nor any other person acting on behalf of the Company, has,
directly or indirectly, given or agreed to give any money, gift or similar
benefit (other than legal price concessions to customers in the ordinary course
of business) to any customer, supplier, employee or agent of a customer or
supplier, or official or employee of any governmental agency or instrumentality
of any government (domestic or foreign) or any political party or candidate for
office (domestic or foreign) or other person who is or may be in a position to
help or hinder the business of the Company (or assist it in connection with any
actual or proposed transaction) which (A) might subject the Company to any
damage or penalty in any civil, criminal or governmental litigation or
proceeding, or (B) if not given in the past, might have had a materially adverse
effect on the assets, business or operations of the Company as reflected in any
of the financial statements contained in the Offering Materials, or (C) if not
continued in the future, might adversely affect the assets, business, operations
or prospects of the Company in the future.

      5. Representations, Warranties and Covenants of the Investor.

            A. The Investor represents, warrants and covenants as follows:

                  (i) The Investor has the necessary power to enter into this
Agreement and to consummate the transactions contemplated hereby.

                  (ii) The execution and delivery by the Investor of this
Agreement and the consummation of the transactions contemplated herein will not
result in any violation of, or be in conflict with, or constitute a default
under, any agreement or instrument to which the Investor is a party or by which
the Investor or its properties are bound, or any judgment, decree, order or, to
the Investor's knowledge, any statute, rule or regulation applicable to the
Investor. This Agreement when executed and delivered by the Investor, will

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constitute the legal, valid and binding obligations of the Investor, enforceable
in accordance with their respective terms, except to the extent that (a) the
enforceability hereof or thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect and
affecting the rights of creditors generally, (b) the enforceability hereof or
thereof is subject to general principles of equity, or (c) the indemnification
provisions hereof or thereof may be held to be in violation of public policy.

                  (iii) The Investor will promptly, upon request by the
Placement Agent, forward copies of any and all due diligence questionnaires
compiled by the Investor to the Placement Agent.

                  (iv) The Investor is an Accredited Investor (as defined under
the 1933 Act).

                  (v) The Investor is acquiring the Securities for the
Inventor's own account as principal, not as a nominee or agent, for investment
purposes only, and not with a view to, or for, resale, distribution or
fractionalization thereof in whole or in part and no other person has a direct
or indirect beneficial interest in such Securities. Further, the Investor does
not have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person,
with respect to any of the Securities.

                  (vi) The Investor acknowledges the Investor's understanding
that the offering and sale of the Securities is intended to be exempt from
registration under the 1933 Act by virtue of Section 3(b) of the 1933 Act and
the provisions of Regulation D promulgated thereunder ("Regulation D"). In
furtherance thereof, the Investor represents and warrants as follows:

                  (a) The Investor has the financial ability to bear the
economic risk of the Investor's investment, has adequate means for providing for
the Inventor's current needs and personal contingencies and has no need for
liquidity with respect to the Investor's investment in the Company; and

                  (b) The Investor has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of the prospective investment. The Inventor also represents it has not
been organized for the purpose of acquiring the Securities.

                  (vii) The Investor has been given the opportunity for a
reasonable time prior to the date hereof to ask questions of, and receive
answers from, the Company or its representatives concerning the terms and
conditions of the Offering, and other matters pertaining to this investment, and
has been given the opportunity for a reasonable time prior to the date hereof to
obtain such additional information in connection with the Company in order for
the Investor to evaluate the merits and risks of purchase of the Securities, to
the extent the Company possesses such information or can acquire it without
unreasonable effort or expense. The Investor is not relying on the Placement
Agent or any of its affiliates with respect to the accuracy or completeness of
the Offering Materials or for any economic considerations involved in this
investment.

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      6. Certain Covenants and Agreements of the Company.

      The Company covenants and agrees at its expense and without any expense to
the Placement Agent as follows:

            A. To advise the Placement Agent and the Investor of any material
adverse change in the Company's financial condition, prospects or business or of
any development materially affecting the Company or rendering untrue or
misleading any material statement in the Offering Materials occurring at any
time as soon as the Company is either informed or becomes aware thereof.

            B. To use its commercially reasonable efforts to cause the Common
Stock issuable in connection with the Standby Equity Distribution Agreement to
be qualified or registered for sale on terms consistent with those stated in the
Registration Rights Agreement and under the securities laws of such
jurisdictions as the Placement Agent and the Investor shall reasonably request.
Qualification, registration and exemption charges and fees shall be at the sole
cost and expense of the Company.

            C. Upon written request, to provide and continue to provide the
Placement Agent and the Investor copies of all quarterly financial statements
and audited annual financial statements prepared by or on behalf of the Company,
other reports prepared by or on behalf of the Company for public disclosure and
all documents delivered to the Company's stockholders.

            D. To deliver, during the registration period of the Standby Equity
Distribution Agreement, to the Investor upon the Investor's request, within
forty five (45) days, a statement of its income for each such quarterly period,
and its balance sheet and a statement of changes in stockholders' equity as of
the end of such quarterly period, all in reasonable detail, certified by its
principal financial or accounting officer; (ii) within ninety (90) days after
the close of each fiscal year, its balance sheet as of the close of such fiscal
year, together with a statement of income, a statement of changes in
stockholders' equity and a statement of cash flow for such fiscal year, such
balance sheet, statement of income, statement of changes in stockholders' equity
and statement of cash flow to be in reasonable detail and accompanied by a copy
of the certificate or report thereon of independent auditors if audited
financial statements are prepared; and (iii) a copy of all documents, reports
and information furnished to its stockholders at the time that such documents,
reports and information are furnished to its stockholders.

            E. To comply with the terms of the Offering Materials.

            F. To ensure that any transactions between or among the Company, or
any of its officers, directors and affiliates be on terms and conditions that
are no less favorable to the Company, than the terms and conditions that would
be available in an "arm's length" transaction with an independent third party.

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      7. Indemnification and Limitation of Liability.

            A. The Company hereby agrees that it will indemnify and hold the
Placement Agent and each officer, director, shareholder, employee or
representative of the Placement Agent and each person controlling, controlled by
or under common control with the Placement Agent within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act or the SEC's Rules and
Regulations promulgated thereunder (the "Rules and Regulations"), harmless from
and against any and all loss, claim, damage, liability, cost or expense
whatsoever (including, but not limited to, any and all reasonable legal fees and
other expenses and disbursements incurred in connection with investigating,
preparing to defend or defending any action, suit or proceeding, including any
inquiry or investigation, commenced or threatened, or any claim whatsoever or in
appearing or preparing for appearance as a witness in any action, suit or
proceeding, including any inquiry, investigation or pretrial proceeding such as
a deposition) to which the Placement Agent or such indemnified person of the
Placement Agent may become subject under the 1933 Act, the 1934 Act, the Rules
and Regulations, or any other federal or state law or regulation, common law or
otherwise, arising out of or based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in (a) Section 4 of this
Agreement, (b) the Offering Materials (except those written statements relating
to the Placement Agent given by the Placement Agent for inclusion therein), (c)
any application or other document or written communication executed by the
Company or based upon written information furnished by the Company filed in any
jurisdiction in order to qualify the Common Stock under the securities laws
thereof, or any state securities commission or agency; (ii) the omission or
alleged omission from documents described in clauses (a), (b) or (c) above of a
material fact required to be stated therein or necessary to make the statements
therein not misleading; or (iii) the breach of any representation, warranty,
covenant or agreement made by the Company in this Agreement. The Company further
agrees that upon demand by an indemnified person, at any time or from time to
time, it will promptly reimburse such indemnified person for any loss, claim,
damage, liability, cost or expense actually and reasonably paid by the
indemnified person as to which the Company has indemnified such person pursuant
hereto. Notwithstanding the foregoing provisions of this Paragraph 7(A), any
such payment or reimbursement by the Company of fees, expenses or disbursements
incurred by an indemnified person in any proceeding in which a final judgment by
a court of competent jurisdiction (after all appeals or the expiration of time
to appeal) is entered against the Placement Agent or such indemnified person
based upon specific finding of fact that the Placement Agent or such indemnified
person's gross negligence or willful misfeasance will be promptly repaid to the
Company.

            B. The Placement Agent hereby agrees that it will indemnify and hold
the Company and each officer, director, shareholder, employee or representative
of the Company, and each person controlling, controlled by or under common
control with the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act or the Rules and Regulations, harmless from and
against any and all loss, claim, damage, liability, cost or expense whatsoever
(including, but not limited to, any and all reasonable legal fees and other
expenses and disbursements incurred in connection with investigating, preparing
to defend or defending any action, suit or proceeding, including any inquiry or

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investigation, commenced or threatened, or any claim whatsoever or in appearing
or preparing for appearance as a witness in any action, suit or proceeding,
including any inquiry, investigation or pretrial proceeding such as a
deposition) to which the Company or such indemnified person of the Company may
become subject under the 1933 Act, the 1934 Act, the Rules and Regulations, or
any other federal or state law or regulation, common law or otherwise, arising
out of or based upon (i) the material breach of any representation, warranty,
covenant or agreement made by the Placement Agent in this Agreement, or (ii) any
false or misleading information provided to the Company in writing by one of the
Placement Agent's indemnified persons specifically for inclusion in the Offering
Materials.

            C. The Investor hereby agrees that it will indemnify and hold the
Placement Agent and each officer, director, shareholder, employee or
representative of the Placement Agent, and each person controlling, controlled
by or under common control with the Placement Agent within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act or the Rules and
Regulations, harmless from and against any and all loss, claim, damage,
liability, cost or expense whatsoever (including, but not limited to, any and
all reasonable legal fees and other expenses and disbursements incurred in
connection with investigating, preparing to defend or defending any action, suit
or proceeding, including any inquiry or investigation, commenced or threatened,
or any claim whatsoever or in appearing or preparing for appearance as a witness
in any action, suit or proceeding, including any inquiry, investigation or
pretrial proceeding such as a deposition) to which the Placement Agent or such
indemnified person of the Placement Agent may become subject under the 1933 Act,
the 1934 Act, the Rules and Regulations, or any other federal or state law or
regulation, common law or otherwise, arising out of or based upon (i) the
conduct of the Investor or its officers, employees or representatives in its
acting as the Investor for the Offering, (ii) the material breach of any
representation, warranty, covenant or agreement made by the Investor in the
Offering Materials, or (iii) any false or misleading information provided to the
Placement Agent by one of the Investor's indemnified persons.

            D. The Placement Agent hereby agrees that it will indemnify and hold
the Investor and each officer, director, shareholder, employee or representative
of the Investor, and each person controlling, controlled by or under common
control with the Investor within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act or the Rules and Regulations, harmless from and
against any and all loss, claim, damage, liability, cost or expense whatsoever
(including, but not limited to, any and all reasonable legal fees and other
expenses and disbursements incurred in connection with investigating, preparing
to defend or defending any action, suit or proceeding, including any inquiry or
investigation, commenced or threatened, or any claim whatsoever or in appearing
or preparing for appearance as a witness in any action, suit or proceeding,
including any inquiry, investigation or pretrial proceeding such as a
deposition) to which the Investor or such indemnified person of the Investor may
become subject under the 1933 Act, the 1934 Act, the Rules and Regulations, or
any other federal or state law or regulation, common law or otherwise, arising
out of or based upon the material breach of any representation, warranty,
covenant or agreement made by the Placement Agent in this Agreement.

            E. Promptly after receipt by an indemnified party of notice of
commencement of any action covered by Section 7(A), (B), (C) or (D), the party
to be indemnified shall, within five (5) business days, notify the indemnifying
party of the commencement thereof; the omission by one (1) indemnified party to
so notify the indemnifying party shall not relieve the indemnifying party of its
obligation to indemnify any other indemnified party that has given such notice
and shall not relieve the indemnifying party of any liability outside of this
indemnification if not materially prejudiced thereby. In the event that any
action is brought against the indemnified party, the indemnifying party will be
entitled to participate therein and, to the extent it may desire, to assume and
control the defense thereof with counsel chosen by it which is reasonably
acceptable to the indemnified party. After notice from the indemnifying party to
such indemnified party of its election to so assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under such
Section 7(A), (B), (C), or (D) for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof, but
the indemnified party may, at its own expense, participate in such defense by
counsel chosen by it, without, however, impairing the indemnifying party's
control of the defense. Subject to the proviso of this sentence and
notwithstanding any other statement to the contrary contained herein, the
indemnified party or parties shall have the right to choose its or their own
counsel and control the defense of any action, all at the expense of the
indemnifying party if (i) the employment of such counsel shall have been
authorized in writing by the indemnifying party in connection with the defense
of such action at the expense of the indemnifying party, or (ii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
such indemnified party to have charge of the defense of such action within a
reasonable time after notice of commencement of the action, or (iii) such
indemnified party or parties shall have reasonably concluded that there may be

                                       10
<PAGE>

defenses available to it or them which are different from or additional to those
available to one or all of the indemnifying parties (in which case the
indemnifying parties shall not have the right to direct the defense of such
action on behalf of the indemnified party or parties), in any of which events
such fees and expenses of one additional counsel shall be borne by the
indemnifying party; provided, however, that the indemnifying party shall not, in
connection with any one action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general allegations or
circumstance, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys at any time for all such indemnified parties. No
settlement of any action or proceeding against an indemnified party shall be
made without the consent of the indemnifying party.

            F. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in Section 7(A) or 7(B)
is due in accordance with its terms but is for any reason held by a court to be
unavailable on grounds of policy or otherwise, the Company and the Placement
Agent shall contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with the
investigation or defense of same) which the other may incur in such proportion
so that the Placement Agent shall be responsible for such percent of the
aggregate of such losses, claims, damages and liabilities as shall equal the
percentage of the gross proceeds paid to the Placement Agent and the Company
shall be responsible for the balance; provided, however, that no person guilty
of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
Act shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 7(F), any person
controlling, controlled by or under common control with the Placement Agent, or
any partner, director, officer, employee, representative or any agent of any
thereof, shall have the same rights to contribution as the Placement Agent and
each person controlling, controlled by or under common control with the Company
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
and each officer of the Company and each director of the Company shall have the
same rights to contribution as the Company. Any party entitled to contribution
will, promptly after receipt of notice of commencement of any action, suit or
proceeding against such party in respect of which a claim for contribution may
be made against the other party under this Section 7(D), notify such party from
whom contribution may be sought, but the omission to so notify such party shall
not relieve the party from whom contribution may be sought from any obligation
they may have hereunder or otherwise if the party from whom contribution may be
sought is not materially prejudiced thereby.

            G. The indemnity and contribution agreements contained in this
Section 7 shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any indemnified person or any termination
of this Agreement.

                                       11
<PAGE>

            H. The Company hereby waives, to the fullest extent permitted by
law, any right to or claim of any punitive, exemplary, incidental, indirect,
special, consequential or other damages (including, without limitation, loss of
profits) against the Placement Agent and each officer, director, shareholder,
employee or representative of the placement agent and each person controlling,
controlled by or under common control with the Placement Agent within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act or the Rules
and Regulations arising out of any cause whatsoever (whether such cause be based
in contract, negligence, strict liability, other tort or otherwise).
Notwithstanding anything to the contrary contained herein, the aggregate
liability of the Placement Agent and each officer, director, shareholder,
employee or representative of the Placement Agent and each person controlling,
controlled by or under common control with the Placement Agent within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act or the Rules
and Regulations shall not exceed the compensation received by the Placement
Agent pursuant to Section 2 hereof. This limitation of liability shall apply
regardless of the cause of action, whether contract, tort (including, without
limitation, negligence) or breach of statute or any other legal or equitable
obligation.

      8. Payment of Expenses.

      The Company hereby agrees to bear all of the expenses in connection with
the Offering, including, but not limited to the following: filing fees, printing
and duplicating costs, advertisements, postage and mailing expenses with respect
to the transmission of Offering Materials, registrar and transfer agent fees,
escrow agent fees and expenses, fees of the Company's counsel and accountants,
issue and transfer taxes, if any.

      9. Conditions of Closing.

      The Closing shall be held at the offices of the Investor or its counsel.
The obligations of the Placement Agent hereunder shall be subject to the
continuing accuracy of the representations and warranties of the Company and the
Investor herein as of the date hereof and as of the Date of Closing (the
"Closing Date") with respect to the Company or the Investor, as the case may be,
as if it had been made on and as of such Closing Date; the accuracy on and as of
the Closing Date of the statements of the officers of the Company made pursuant
to the provisions hereof; and the performance by the Company and the Investor on
and as of the Closing Date of its covenants and obligations hereunder and to the
following further conditions:

            A. Upon the effectiveness of a registration statement covering the
Standby Equity Distribution Agreement, the Investor and the Placement Agent
shall receive the opinion of Counsel to the Company, dated as of the date
thereof, which opinion shall be in form and substance reasonably satisfactory to
the Investor, their counsel and the Placement Agent.

                                       12
<PAGE>

            B. At or prior to the Closing, the Investor and the Placement Agent
shall have been furnished such documents, certificates and opinions as it may
reasonably require for the purpose of enabling them to review or pass upon the
matters referred to in this Agreement and the Offering Materials, or in order to
evidence the accuracy, completeness or satisfaction of any of the
representations, warranties or conditions herein contained.

            C. At and prior to the Closing, (i) there shall have been no
material adverse change nor development involving a prospective change in the
condition or prospects or the business activities, financial or otherwise, of
the Company from the latest dates as of which such condition is set forth in the
Offering Materials; (ii) there shall have been no transaction, not in the
ordinary course of business, except for the transactions pursuant to the
Securities Purchase Agreement entered into by the Company on the date hereof
which has not been disclosed in the Offering Materials or to the Placement Agent
in writing; (iii) except as set forth in the Offering Materials, the Company
shall not be in default under any provision of any instrument relating to any
outstanding indebtedness for which a waiver or extension has not been otherwise
received; (iv) except as set forth in the Offering Materials, the Company shall
not have issued any securities (other than those to be issued as provided in the
Offering Materials) or declared or paid any dividend or made any distribution of
its capital stock of any class and there shall not have been any change in the
indebtedness (long or short term) or liabilities or obligations of the Company
(contingent or otherwise) and trade payable debt; (v) no material amount of the
assets of the Company shall have been pledged or mortgaged, except as indicated
in the Offering Materials; and (v) no action, suit or proceeding, at law or in
equity, against the Company or affecting any of its properties or businesses
shall be pending or threatened before or by any court or federal or state
commission, board or other administrative agency, domestic or foreign, wherein
an unfavorable decision, ruling or finding could materially adversely affect the
businesses, prospects or financial condition or income of the Company, except as
set forth in the Offering Materials.

            D. If requested at Closing the Investor and the Placement Agent
shall receive a certificate of the Company signed by an executive officer and
chief financial officer, dated as of the applicable Closing, to the effect that
the conditions set forth in subparagraph (C) above have been satisfied and that,
as of the applicable closing, the representations and warranties of the Company
set forth herein are true and correct.

            E. The Placement Agent shall have no obligation to insure that (x)
any check, note, draft or other means of payment for the Common Stock will be
honored, paid or enforceable against the Investor in accordance with its terms,
or (y) subject to the performance of the Placement Agent's obligations and the
accuracy of the Placement Agent's representations and warranties hereunder, (1)
the Offering is exempt from the registration requirements of the 1933 Act or any
applicable state "Blue Sky" law or (2) the Investor is an Accredited Investor.

      10. Termination.

      This Agreement shall be co-terminus with, and terminate upon the same
terms and conditions as those set forth in, the Standby Equity Distribution
Agreement. The rights of the Investor and the obligations of the Company under
the Registration Rights Agreement, and the rights of the Placement Agent and the
obligations of the Company shall survive the termination of this Agreement
unabridged.

                                       13
<PAGE>

      11. Miscellaneous.

            A. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all which shall be deemed
to be one and the same instrument.

            B. Any notice required or permitted to be given hereunder shall be
given in writing and shall be deemed effective when deposited in the United
States mail, postage prepaid, or when received if personally delivered or faxed
(upon confirmation of receipt received by the sending party), addressed as
follows to such other address of which written notice is given to the others):

If to Placement Agent, to:       Newbridge Securities Corporation
                                 1451 Cypress Creek Road, Suite 204
                                 Fort Lauderdale, Florida 33309
                                 Attention:        Doug Aguililla
                                 Telephone:        (954) 334-3450
                                 Facsimile:        (954) 229-9937

If to the Company, to:           Sagamore Holdings, Inc.
                                 33 South Wood Avenue - Suite 600
                                 Iselin, NJ 08830
                                 Attention:    Robert Farrell/ Joseph Donohue
                                 Telephone:    (732) 603-4967
                                 Facsimile:    (732) 603-3883

With a copy to:                  Kirkpatrick & Lockhart LLP
                                 201 South Biscayne Boulevard - Suite 2000
                                 Miami, FL  33131-2399
                                 Attention:     Clayton E. Parker, Esq.
                                 Telephone:     (305) 539-3300
                                 Facsimile:     (305) 358-7095
                                 Kirkpatrick & Lockhart LLP

If to the Investor:              Cornell Capital Partners, LP
                                 101 Hudson Street - Suite 3700
                                 Jersey City, New Jersey 07302
                                 Attention:    Mark A. Angelo
                                               Portfolio Manager
                                 Telephone:    (201) 985-8300
                                 Facsimile:    (201) 985-8266

                                       14
<PAGE>

With copies to:                  Cornell Capital Partners, LP
                                 101 Hudson Street - Suite 3700
                                 Jersey City, New Jersey 07302
                                 Attention:    Troy J. Rillo, Esq.
                                 Telephone:    (201) 985-8300
                                 Facsimile:    (201) 985-8266

            C. This Agreement shall be governed by and construed in all respects
under the laws of the State of New Jersey, without reference to its conflict of
laws rules or principles. Any suit, action, proceeding or litigation arising out
of or relating to this Agreement shall be brought and prosecuted exclusively in
such federal or state court or courts located in Hudson County, New Jersey. The
parties hereby irrevocably and unconditionally consent to the jurisdiction and
venue of the Superior Court of New Jersey, sitting in Hudson County, New Jersey,
and the United States District Court of New Jersey, sitting in Newark, New
Jersey, and to service of process by registered or certified mail, return
receipt requested, or by any other manner provided by applicable law, and hereby
irrevocably and unconditionally waive any right to claim that any suit, action,
proceeding or litigation so commenced has been commenced in an inconvenient
forum.

            D. This Agreement and the other agreements referenced herein contain
the entire understanding between the parties hereto and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the modification or amendment is sought.

            E. If any provision of this Agreement shall be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>

Signature Page for Placement Agent Agreement

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                          COMPANY:
                                          SAGAMORE HOLDINGS, INC.

                                          By:      /s/Robert Farrell
                                            ------------------------------------
                                          Name:    Robert Farrell
                                          Title:   President

                                          PLACEMENT AGENT:
                                          NEWBRIDGE SECURITIES CORPORATION

                                          By:      /s/Guy S. Amico
                                            ------------------------------------
                                          Name:    Guy S. Amico
                                          Title:   President

                                          INVESTOR:
                                          CORNELL CAPITAL PARTNERS, LP

                                          BY:      YORKVILLE ADVISORS, LLC
                                          ITS:     GENERAL PARTNER

                                          By:      /s/Mark Angelo
                                            ------------------------------------
                                          Name:    Mark A. Angelo
                                          Title:   Portfolio Manager

                                       16EXHIBIT 10.12

                             SAGAMORE HOLDINGS, INC.
                            2004 STOCK INCENTIVE PLAN

--------------------------------------------------------------------------------

                                   ARTICLE I.

                        PURPOSE AND ADOPTION OF THE PLAN

1.1 PURPOSE. The purpose of the Sagamore Holdings, Inc. 2004 Stock Incentive
Plan (hereinafter referred to as the "Plan") is to assist in attracting and
retaining highly competent key employees, non-employee directors and consultants
and to act as an incentive in motivating selected key employees, non-employee
directors and consultants of Sagamore Holdings, Inc. (hereinafter the "Company")
and its Subsidiaries (as defined below) to achieve long-term corporate
objectives. Additionally, the purpose of the Plan is to compensate employees,
non-employee directors and consultants with shares of the Company's common stock
in lieu of cash compensation.

1.2 ADOPTION AND TERM. The Plan has been approved by the Board of Directors
(hereinafter referred to as the "Board") of the Company, to be effective
September ___, 2004 (the "Effective Date"). The Plan shall remain in effect
until terminated by action of the Board.

                                   ARTICLE II.

                                   DEFINITIONS

For the purposes of this Plan, capitalized terms shall have the following
meanings:

2.1 "AWARD" means any grant to a Participant of Restricted Shares described in
Article VI.

2.2 "AWARD AGREEMENT" means a written agreement between the Company and a
Participant or a written notice from the Company to a Participant specifically
setting forth the terms and conditions of an Award granted under the Plan.

2.3 "AWARD PERIOD" means, with respect to an Award, the period of time set forth
in the Award Agreement during which SPECIFIED target performance goals must be
achieved or other conditions set forth in the Award Agreement must be satisfied.

2.4 "BENEFICIARY" means an individual, trust or estate who or which, by a
written designation of the Participant filed with the Company or by operation of
law, succeeds to the rights and obligations of the Participant under the Plan
and an Award Agreement upon the Participant's death.

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

2.6 "CODE" means the Internal Revenue Code of 1986, as amended. References to a
section of the Code include that section and any comparable section or sections
of any future legislation that amends, supplements or supersedes said section.

2.7 "COMMITTEE" means the committee established in accordance with Section 3.1.

<PAGE>

2.8 "COMPANY" means Sagamore Holdings, Inc., a Florida corporation, and its
successors.

2.9 "COMMON STOCK" means common stock of the Company, par value $0.001 per
share.

2.10 "COMPANY VOTING SECURITIES" mean the combined voting power of all
outstanding securities of the Company entitled to vote generally in the election
of directors of the Company.

2.11 "DATE OF GRANT" means the date designated by the Committee as the date as
of which it grants an Award, which shall not be earlier than the date on which
the Committee approves the granting of such Award.

2.12 "EFFECTIVE DATE" shall have the meaning given to such term in Section 1.2.

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

2.15. "EXERCISE PRICE" means, with respect to a Stock Appreciation Right, the
amount established by the Committee in the related Award Agreement as the amount
to be subtracted from the Fair Market Value on the date of exercise in order to
determine the amount of the payment to be made to the Participant, as further
described in Section 6.2(b).

2.14 "FAIR MARKET VALUE" means, as of any applicable date: (i) if the Common
Stock is listed on a national securities exchange or is authorized for quotation
on The Nasdaq National Market System ("NMS"), the closing price, regular way, of
the Common Stock on such exchange or NMS, as the case may be, on such date or if
no sale of the Common Stock shall have occurred on such date, on the next
preceding date on which there was such a reported sale; or (ii) if the Common
Stock is not listed for trading on a national securities exchange or authorized
for quotation on NMS, the closing bid price as reported by The Nasdaq SmallCap
Market on such date, or if no such price shall have been reported for such date,
on the next preceding date for which such price was so reported; or (iii) if the
Common Stock is not listed for trading on a national securities exchange or
authorized for quotation on NMS or The Nasdaq SmallCap Market (if applicable),
the last reported bid price published in the "pink sheets" or displayed on the
National Association of Securities Dealers, Inc. ("NASD") Electronic Bulletin
Board, as the case may be; or (iv) if the Common Stock is not listed for trading
on a national securities exchange, is not authorized for quotation on NMS or The
Nasdaq SmallCap Market and is not published in the "pink sheets" or displayed on
the NASD Electronic Bulletin Board, the fair market value of the Common Stock as
determined in good faith by the Committee.

2.15. INCENTIVE STOCK OPTION means a stock option within the meaning of Section
422 of the Code.

2.15 "MERGER" means any merger, reorganization, consolidation, share exchange,
transfer of assets or other transaction having similar effect involving the
Company.

2.16 "NON-EMPLOYEE DIRECTOR" means a member of the Board who (i) is not
currently an officer or otherwise employed by the Company or a parent or a
subsidiary of the Company, (ii) does not receive compensation directly or
indirectly from the Company or a parent or a subsidiary of the Company for
services rendered as a consultant or in any capacity other than as a director,
except for an amount for which disclosure would not be required pursuant to Item
404(a) of Regulation S-K, (iii) does not possess an interest in any other
transaction for which disclosure would be required pursuant to Item 404(a) of
Regulation S-K, and (iv) is not engaged in a business relationship for which
disclosure would be required pursuant to Item 404(b) of Regulation S-K.

<PAGE>

2.17 NON-QUALIFIED STOCK OPTION means a stock option which is not an Incentive
Stock Option.

2.19. "OPTIONS" mean all Non-Qualified Stock Options and Incentive Stock Options
granted at any time under the Plan.

2.17 "OUTSTANDING COMMON STOCK" means, at any time, the issued and outstanding
shares of Common Stock.

2.18 "PARTICIPANT" means a person designated to receive an Award under the Plan
in accordance with Section 5.1.

2.19 "PLAN" means the Sagamore Holdings, Inc. 2004 Stock Incentive Plan as
described herein, as the same may be amended from time to time.

2.27. "PURCHASE PRICE," with respect to Options, shall have the meaning set
forth in Section 6.1(b).

2.20 "RESTRICTED SHARES" mean shares of Common Stock subject to restrictions, if
any, imposed in connection with Awards granted under Article VI.

2.21 "RETIREMENT" means early or normal retirement under a pension plan or
arrangement of the Company or one of its Subsidiaries in which the Participant
participates.

2.22. "STOCK APPRECIATION RIGHTS" mean Awards granted in accordance with Article
VI.

2.22 "SUBSIDIARY" means a subsidiary of the Company within the meaning of
Section 424(f) of the Code.

2.23 "TERMINATION OF EMPLOYMENT" means the voluntary or involuntary termination
of a Participant's employment with the Company or a Subsidiary for any reason,
including death, disability, retirement or as the result of the divestiture of
the Participant's employer or any similar transaction in which the Participant's
employer ceases to be the Company or one of its Subsidiaries. Whether entering
military or other government service shall constitute Termination of Employment,
or whether a Termination of Employment shall occur as a result of disability,
shall be determined in each case by the Committee in its sole discretion. In the
case of a consultant who is not an employee of the Company or a Subsidiary,
Termination of Employment shall mean voluntary or involuntary termination of the
consulting relationship for any reason. In the case of a Non-Employee Director,
Termination of Employment shall mean voluntary or involuntary termination,
non-election, removal or other act which results in such Non-Employee Director
no longer serving in such capacity.

                                  ARTICLE III.

                                 ADMINISTRATION

3.1 COMMITTEE. The Plan shall be administered by a committee of the Board (the
"Committee") comprised of at least two persons. The Committee shall have
exclusive and final authority in each determination, interpretation or other
action affecting the Plan and its Participants. The Committee shall have the
sole discretionary authority to interpret the Plan, to establish and modify
administrative rules for the Plan, to impose such conditions and restrictions on
Awards as it determines appropriate, and to take such steps in connection with
the Plan and Awards granted hereunder as it may deem necessary or advisable. The
Committee may, subject to compliance with applicable legal requirements, with
respect to Participants who are not subject to Section 16(b) of the Exchange
Act, delegate such of its powers and authority under the Plan as it deems
appropriate to designated officers or employees of the Company. In addition, the
Board may exercise any of the authority conferred upon the Committee hereunder.
In the event of any such delegation of authority or exercise of authority by the
Board, references in the Plan to the Committee shall be deemed to refer to the
delegate of the Committee or the Board, as the case may be.

                                       3
<PAGE>

                                   ARTICLE IV.

                                     SHARES

4.1 NUMBER OF SHARES ISSUABLE. The total number of shares initially authorized
to be issued under the Plan shall be Fifteen Million (15,000,000) shares of
Common Stock. The number of shares available for issuance under the Plan shall
be subject to adjustment in accordance with Section 7.6. The shares to be
offered under the Plan shall be authorized and unissued shares of Common Stock,
or issued shares of Common Stock which will have been reacquired by the Company.

4.2 SHARES SUBJECT TO TERMINATED AWARDS. Shares of Common Stock subject to any
Award that are otherwise surrendered by a Participant may be subject to new
Awards under the Plan.

                                   ARTICLE V.

                                  PARTICIPATION

5.1 ELIGIBLE PARTICIPANTS. Participants in the Plan shall be such key employees,
Non-Employee Directors and consultants of the Company and its Subsidiaries,
whether or not members of the Board, as the Committee, in its sole discretion,
may designate from time to time. The Committee's designation of a Participant in
any year shall not require the Committee to designate such person to receive
Awards in any other year. The Committee shall consider such factors as it deems
pertinent in selecting Participants and in determining the types and amounts of
their respective Awards.

                                   ARTICLE VI.

                   STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

6.1.     OPTION AWARDS.

                  (A) GRANT OF OPTIONS. The Committee may grant, to such
Participants as the Committee may select, Options entitling the Participants to
purchase shares of Common Stock from the Company in such numbers, at such
prices, and on such terms and subject to such conditions, not inconsistent with
the terms of the Plan, as may be established by the Committee. The terms of any
Option granted under the Plan shall be set forth in an Award Agreement.
Non-Qualified Stock Options granted after the Effective Date shall have an
exercise price of not less than 100% of the Fair Market Value on the Date of
Grant. Except as provided in Sections 6.3(c), 6.3(e) or 6.5, Non-Employee
Director Options shall not be exercisable prior to the first anniversary of the
Date of Grant, at which time they will be immediately exercisable, in whole or
in part, and shall remain exercisable until the tenth anniversary of the Date of
Grant.

                  (B) PURCHASE PRICE OF OPTIONS. The Purchase Price of each
share of Common Stock which may be purchased upon exercise of any Option granted
under the Plan shall be determined by the Committee.

                  (C) DESIGNATION OF OPTIONS. Except as otherwise expressly
provided in the Plan, the Committee may designate, at the time of the grant of
an Option, such Option as an Incentive Stock Option or a Non-Qualified Stock

                                       4
<PAGE>

Option; provided, however, that an Option may be designated as an Incentive
Stock Option only if the applicable Participant is an employee of the Company or
a Subsidiary on the Date of Grant.

                  (D) INCENTIVE STOCK OPTION SHARE LIMITATION. No Participant
may be granted Incentive Stock Options under the Plan (or any other plans of the
Company and its Subsidiaries) that would result in Incentive Stock Options to
purchase shares of Common Stock with an aggregate Fair Market Value (measured on
the Date of Grant) of more than $100,000 first becoming exercisable by such
Participant in any one calendar year.

                  (E) RIGHTS AS A STOCKHOLDER. A Participant or a transferee of
an Option pursuant to Section 8.4 shall have no rights as a stockholder with
respect to the shares of Common Stock covered by an Option until that
Participant or transferee shall have become the holder of record of any such
shares, and no adjustment shall be made with respect to any such shares of
Common Stock for dividends in cash or other property or distributions of other
rights on the Common Stock for which the record date is prior to the date on
which that Participant or transferee shall have become the holder of record of
any shares covered by such Option; provided, however, that Participants are
entitled to share adjustments to reflect capital changes under Section 8.7.

6.2.     STOCK APPRECIATION RIGHTS.

                  (A) STOCK APPRECIATION RIGHT AWARDS. The Committee is
authorized to grant to any Participant one or more Stock Appreciation Rights.
Such Stock Appreciation Rights may be granted either independent of or in tandem
with Options granted to the same Participant. Stock Appreciation Rights granted
in tandem with Options may be granted simultaneously with, or, in the case of
Non-Qualified Stock Options, subsequent to, the grant to such Participant of the
related Options; provided, however, that: (i) any Option covering any share of
Common Stock shall expire and not be exercisable upon the exercise of any Stock
Appreciation Right with respect to the same share, (ii) any Stock Appreciation
Right covering any share of Common Stock shall expire and not be exercisable
upon the exercise of any Option with respect to the same share, and (iii) an
Option and a Stock Appreciation Right covering the same share of Common Stock
may not be exercised simultaneously. Upon exercise of a Stock Appreciation Right
with respect to a share of Common Stock, the Participant shall be entitled to
receive an amount equal to the excess, if any, of (A) the Fair Market Value of a
share of Common Stock on the date of exercise over (B) the Exercise Price of
such Stock Appreciation Right established in the Award Agreement, which amount
shall be payable as provided in Section 6.2(c).

                  (B) EXERCISE PRICE. The Exercise Price established for any
Stock Appreciation Right granted under this Plan shall be determined by the
Committee, but in the case of Stock Appreciation Rights granted in tandem with
Options shall not be less than the Purchase Price of the related Options. Upon
exercise of Stock Appreciation Rights, the number of shares issuable upon
exercise under any related Options shall automatically be reduced by the number
of shares of Common Stock represented by such Options which are surrendered as a
result of the exercise of such Stock Appreciation Rights.

                  (C) PAYMENT OF INCREMENTAL VALUE. Any payment that may become
due from the Company by reason of a Participant's exercise of a Stock
Appreciation Right may be paid to the Participant as determined by the Committee
(i) all in cash, (ii) all in Common Stock, or (iii) in any combination of cash
and Common Stock. In the event that all or a portion of the payment is to be
made in Common Stock, the number of shares of Common Stock to be delivered in
satisfaction of such payment shall be determined by dividing the amount of such
payment or portion thereof by the Fair Market Value on the date of exercise. No
fractional share of Common Stock shall be issued to make any payment in respect
of Stock Appreciation Rights; if any fractional share would otherwise be
issuable, the combination of cash and Common Stock payable to a Participant
shall be adjusted as directed by the Committee to avoid the issuance of any
fractional share.

                                       5
<PAGE>

6.3.     TERMS OF STOCK OPTIONS AND STOCK APPRECIATION RIGHTS.

                  (A) CONDITIONS ON EXERCISE. An Award Agreement with respect to
Options and/or Stock Appreciation Rights may contain such waiting periods,
exercise dates and restrictions on exercise (including, but not limited to,
periodic installments) as may be determined by the Committee at the time of
grant.

                  (B) DURATION OF OPTIONS AND STOCK APPRECIATION RIGHTS. Options
and Stock Appreciation Rights shall terminate after the first to occur of the
following events:

                  (i) Expiration of the Option or Stock Appreciation Right as
provided in the related Award Agreement; or

                  (ii) Termination of the Award as provided in Section 6.3(e),
following the applicable Participant's Termination of Employment; or

                  (iii) In the case of an Incentive Stock Option, ten years from
the Date of Grant; or

                  (iv) Solely in the case of a Stock Appreciation Right granted
in tandem with an Option, upon the expiration of the related Option.

                  (C) ACCELERATION OF EXERCISE TIME. The Committee, in its sole
discretion, shall have the right (but shall not in any case be obligated),
exercisable at any time after the Date of Grant, to permit the exercise of any
Option or Stock Appreciation Right prior to the time such Option or Stock
Appreciation Right would otherwise become exercisable under the terms of the
related Award Agreement.

                  (D) EXTENSION OF EXERCISE TIME. In addition to the extensions
permitted under Section 6.3(e) in the event of Termination of Employment, the
Committee, in its sole discretion, shall have the right (but shall not in any
case be obligated), exercisable on or at any time after the Date of Grant, to
permit the exercise of any Option or Stock Appreciation Right after its
expiration date described in Section 6.3(e), subject, however, to the
limitations described in Sections 6.3(b)(i), (iii) and (iv).

                  (E) EXERCISE OF OPTIONS OR STOCK APPRECIATION RIGHTS UPON
TERMINATION OF EMPLOYMENT.

                  (i) TERMINATION OF VESTED OPTIONS AND STOCK APPRECIATION
RIGHTS UPON TERMINATION OF EMPLOYMENT.

                  (A) TERMINATION. In the event of Termination of Employment of
a Participant other than by reason of death, disability or Retirement, the right
of the Participant to exercise any Option or Stock Appreciation Right shall
terminate on the date of such Termination of Employment, unless the exercise
period is extended by the Committee in accordance with Section 6.3(d).

                                       6
<PAGE>

                  (B) DISABILITY OR RETIREMENT. In the event of a Participant's
Termination of Employment by reason of disability or Retirement, the right of
the Participant to exercise any Option or Stock Appreciation Right which he or
she was entitled to exercise upon Termination of Employment (or which became
exercisable at a later date pursuant to Section 6.3(e)(ii)) shall terminate one
year after the date of such Termination of Employment, unless the exercise
period is extended by the Committee in accordance with Section 6.3(d). In no
event, however, may any Option or Stock Appreciation Right be exercised later
than the date of expiration of the Option determined pursuant to Section
6.3(b)(i), (iii) or (iv).

                  (C) DEATH. In the event of the death of a Participant while
employed by the Company or a Subsidiary or within any additional period of time
from the date of the Participant's Termination of Employment and prior to the
expiration of any Option or Stock Appreciation Right as provided pursuant to
Section 6.3(e)(i)(B) or Section 6.3(d) above, to the extent the right to
exercise the Option or Stock Appreciation Right was accrued as of the date of
such Termination of Employment and had not expired during such additional
period, the right of the Participant's Beneficiary to exercise the Option or
Stock Appreciation Right shall terminate one year after the date of the
Participant's death (but in no event more than one year from the date of the
Participant's Termination of Employment by reason of disability or Retirement),
unless the exercise period is extended by the Committee in accordance with
Section 6.3(d). In no event, however, may any Option or Stock Appreciation Right
be exercised later than the date of expiration of the Option determined pursuant
to Section 6.3(b)(i), (iii) or (iv).

                  (ii) TERMINATION OF UNVESTED OPTIONS OR STOCK APPRECIATION
RIGHTS UPON TERMINATION OF EMPLOYMENT. Subject to Section 6.3(c), to the extent
the right to exercise an Option or a Stock Appreciation Right, or any portion
thereof, has not accrued as of the date of Termination of Employment, such right
shall expire at the date of such Termination of Employment. Notwithstanding the
foregoing, the Committee, in its sole discretion and under such terms as it
deems appropriate, may permit, for a Participant who terminates employment by
reason of Retirement and who will continue to render significant services to the
Company or one of its Subsidiaries after his or her Termination of Employment,
the continued vesting of his or her Options and Stock Appreciation Rights during
the period in which that individual continues to render such services.

6.4. EXERCISE PROCEDURES. Each Option and Stock Appreciation Right granted under
the Plan shall be exercised by written notice to the Company which must be
received by the officer or employee of the Company designated in the Award
Agreement at or before the close of business on the expiration date of the
Award. The Purchase Price of shares purchased upon exercise of an Option granted
under the Plan shall be paid in full in cash by the Participant pursuant to the
Award Agreement; provided, however, that the Committee may (but shall not be
required to) permit payment to be made by delivery to the Company of either (a)
shares of Common Stock (which may include Restricted Shares or shares otherwise
issuable in connection with the exercise of the Option, subject to such rules as
the Committee deems appropriate) or (b) any combination of cash and Common Stock
or (c) such other consideration as the Committee deems appropriate and in
compliance with applicable law (including payment in accordance with a cashless
exercise program under which, if so instructed by a Participant, shares of
Common Stock may be issued directly to the Participant's broker or dealer upon
receipt of an irrevocable written notice of exercise from the Participant). In
the event that any shares of Common Stock shall be transferred to the Company to
satisfy all or any part of the Purchase Price, the part of the Purchase Price
deemed to have been satisfied by such transfer of shares of Common Stock shall
be equal to the product derived by multiplying the Fair Market Value as of the
date of exercise times the number of shares of Common Stock transferred to the
Company. The Participant may not transfer to the Company in satisfaction of the
Purchase Price any fractional share of Common Stock. Any part of the Purchase
Price paid in cash upon the exercise of any Option shall be added to the general
funds of the Company and may be used for any proper corporate purpose. Unless
the Committee shall otherwise determine, any shares of Common Stock transferred
to the Company as payment of all or part of the Purchase Price upon the exercise
of any Option shall be held as treasury shares.

7
<PAGE>

6.5. CHANGE IN CONTROL. Unless otherwise provided by the Committee in the
applicable Award Agreement, in the event of a Change in Control, all Options and
Stock Appreciation Rights outstanding on the date of such Change in Control
shall become immediately and fully exercisable. The provisions of this Section
6.5 shall not be applicable to any Options or Stock Appreciation Rights granted
to a Participant if any Change in Control results from such Participant's
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act)
of Common Stock or Company Voting Securities.

                                  ARTICLE VII.

                                RESTRICTED SHARES

7.1 RESTRICTED SHARE AWARDS. The Committee may grant to any Participant an Award
of such number of shares of Common Stock on such terms, conditions, restrictions
and price, whether based on performance standards, granted in lieu of cash
compensation, periods of service, retention by the Participant of ownership of
purchased or designated shares of Common Stock or other criteria, as the
Committee shall establish, including no restrictions. With respect to
performance-based Awards of Restricted Shares intended to qualify for
deductibility under Section 162(m) of the Code, performance targets will include
specified levels of one or more of operating income, return or investment,
return on stockholders' equity, earnings before interest, taxes, depreciation
and amortization and/or earnings per share. The terms of any Restricted Share
Award granted under this Plan shall be set forth in an Award Agreement which
shall contain provisions determined by the Committee and not inconsistent with
this Plan; provided, however, that, if the Committee determines to issue shares
of Restricted Stock without any conditions or restrictions other than those
imposed by law, then the Company may issue such shares of Common Stock to a
Participant as directed by the Committee without the necessity of any Award
Agreement. For example, if the Committee should determine to issue shares of
Common Stock to Participants in lieu of cash compensation, then no Award
Agreement shall be required.

                  (A) ISSUANCE OF RESTRICTED SHARES. As soon as practicable
after the Date of Grant of a Restricted Share Award by the Committee, the
Company shall cause to be transferred on the books of the Company or its agent,
shares of Common Stock, registered on behalf of the Participant, evidencing the
Restricted Shares covered by the Award, subject to forfeiture to the Company as
of the Date of Grant if an Award Agreement with respect to the Restricted Shares
covered by the Award is not duly executed by the Participant and timely returned
to the Company if an Award Agreement is required. All shares of Common Stock
covered by Awards under this Article VI shall be subject to the restrictions,
terms and conditions contained in the Plan and the Award Agreements, if
applicable, entered into by a Participant. Until the lapse or release of all
restrictions applicable to an Award of Restricted Shares the share certificates
representing such Restricted Shares may be held in custody by the Company, its
designee, or, if the certificates bear a restrictive legend, by the Participant.
Upon the lapse or release of all restrictions with respect to an Award as
described in Section 7.1(d), one or more share certificates, registered in the
name of the Participant, for an appropriate number of shares as provided in
Section 6.1(d), free of any restrictions set forth in the Plan and the related
Award Agreement (however subject to any restrictions that may be imposed by law)
shall be delivered to the Participant.

                  (B) STOCKHOLDER RIGHTS. Beginning on the Date of Grant of a
Restricted Share Award and subject to execution of the related Award Agreement,
if any, as provided in Section 7.1(a), and except as otherwise provided in such
Award Agreement, the Participant shall become a stockholder of the Company with
respect to all Restricted Shares granted to the Participant, and shall have all
of the rights of a stockholder, including, but not limited to, the right to vote
such shares and the right to receive dividends; provided, however, that any
shares of Common Stock distributed as a dividend or otherwise with respect to
any Restricted Shares as to which the restrictions have not yet lapsed, shall be
subject to the same restrictions as such Restricted Shares and held or
restricted as provided in Section 7.1(a).

                                       8
<PAGE>

                  (C) RESTRICTION ON TRANSFERABILITY. None of the Restricted
Shares may be assigned or transferred (other than by will or the laws of descent
and distribution or to an inter vivos trust with respect to which the
Participant is treated as the owner under Sections 671 through 677 of the Code),
pledged or sold prior to the lapse of the restrictions, if any, applicable
thereto.

                  (D) DELIVERY OF SHARES UPON VESTING. Upon expiration or
earlier termination of the forfeiture period, if any, without a forfeiture and
the satisfaction of or release from any other conditions prescribed by the
Committee, or at such earlier time as provided under the provisions of Section
7.3, the restrictions applicable to the Restricted Shares shall lapse. As
promptly as administratively feasible thereafter, subject to the requirements of
Section 7.4, the Company shall deliver to the Participant or, in case of the
Participant's death, to the Participant's Beneficiary, one or more share
certificates for the appropriate number of shares of Common Stock, free of all
such restrictions, except for any restrictions that may be imposed by law.

7.2      TERMS OF RESTRICTED SHARES.

                  (A) FORFEITURE OF RESTRICTED SHARES. Subject to Sections
7.2(b) and 7.3, Restricted Shares shall be forfeited and returned to the Company
and all rights of the Participant with respect to such Restricted Shares shall
terminate unless the Participant continues in the service of the Company or a
Subsidiary as an employee until the expiration of the forfeiture period for such
Restricted Shares and satisfies any and all other conditions set forth in the
Award Agreement, if any. The Committee shall determine the forfeiture period
(which may, but need not, lapse in installments or may be set at no forfeiture
period) and any other terms and conditions applicable with respect to any
Restricted Share Award.

                  (B) WAIVER OF FORFEITURE PERIOD. Notwithstanding anything
contained in this Article VI to the contrary, the Committee may, in its sole
discretion, waive the forfeiture period and any other conditions set forth in
any Award Agreement under appropriate circumstances (including the death,
disability or Retirement of the Participant or a material change in
circumstances arising after the date of an Award) and subject to such terms and
conditions (including forfeiture of a proportionate number of the Restricted
Shares) as the Committee shall deem appropriate.

                                  ARTICLE VIII.

              TERMS APPLICABLE TO ALL AWARDS GRANTED UNDER THE PLAN

8.1 PLAN PROVISIONS CONTROL AWARD TERMS. The terms of the Plan shall govern all
Awards granted under the Plan, and in no event shall the Committee have the
power to grant any Award under the Plan the terms of which are contrary to any
of the provisions of the Plan. In the event any provision of any Award granted
under the Plan shall conflict with any term in the Plan as constituted on the
Date of Grant of such Award, the term in the Plan as constituted on the Date of
Grant of such Award shall control. Except as provided in Section 8.3 and Section
8.6, the terms of any Award granted under the Plan may not be changed after the
Date of Grant of such Award so as to materially decrease the value of the Award
without the express written approval of the holder.

                                       9
<PAGE>

8.2 AWARD AGREEMENT. No person shall have any rights under any Award granted
under the Plan unless and until the Company and the Participant to whom such
Award shall have been granted shall have executed and delivered an Award
Agreement, except as provided in Section 8.1, or the Participant shall have
received and acknowledged notice of the Award authorized by the Committee
expressly granting the Award to such person and containing provisions setting
forth the terms of the Award.

8.3 MODIFICATION OF AWARD AFTER GRANT. No Award granted under the Plan to a
Participant may be modified (unless such modification does not materially
decrease the value of that Award) after its Date of Grant except by express
written agreement between the Company and such Participant, provided that any
such change (a) may not be inconsistent with the terms of the Plan, and (b)
shall be approved by the Committee.

8.4. LIMITATION ON TRANSFER. Except as provided in Section 7.1(c) in the case of
Restricted Shares, a Participant's rights and interest under the Plan may not be
assigned or transferred other than by will or the laws of descent and
distribution and, during the lifetime of a Participant, only the Participant
personally (or the Participant's personal representative) may exercise rights
under the Plan. The Participant's Beneficiary may exercise the Participant's
rights to the extent they are exercisable under the Plan following the death of
the Participant. Notwithstanding the foregoing, the Committee may grant
Non-Qualified Stock Options that are transferable, without payment of
consideration, to immediate family members of the Participant or to trusts or
partnerships for such family members, and the Committee may also amend
outstanding Non-Qualified Stock Options to provide for such transferability.

8.5 TAXES. The Company shall be entitled, if the Committee deems it necessary or
desirable, to withhold (or secure payment from the Participant in lieu of
withholding) the amount of any withholding or other tax required by law to be
withheld or paid by the Company with respect to any amount payable and/or shares
issuable under such Participant's Award, and the Company may defer payment of
cash or issuance of shares upon exercise or vesting of an Award unless
indemnified to its satisfaction against any liability for any such tax. The
amount of such withholding or tax payment shall be determined by the Committee
and shall be payable by the Participant at such time as the Committee determines
in accordance with the following rules:

                  (a) The Committee shall have the right to elect to have a
Participant to meet his or her withholding requirement (i) by having withheld
from such Award at the appropriate time that number of shares of Common Stock,
rounded up to the next whole share, the Fair Market Value of which is equal to
the amount of withholding taxes due, (ii) by direct payment to the Company in
cash of the amount of any taxes required to be withheld with respect to such
Award or (iii) by a combination of withholding such shares and paying cash.

                  (b) The Committee shall have the discretion as to any Award to
cause the Company to pay to tax authorities for the benefit of the applicable
Participant, or to reimburse such Participant for, the individual taxes which
are due on the grant, exercise or vesting of any Award or the lapse of any
restriction on any Award (whether by reason of such Participant's filing of an
election under Section 83(b) of the Code or otherwise), including, but not
limited to, Federal income tax, state income tax, local income tax and excise
tax under Section 4999 of the Code, as well as for any such taxes as may be
imposed upon such tax payment or reimbursement.

                  (c) In the case of Participants who are subject to Section 16
of the Exchange Act, the Committee may impose such limitations and restrictions
as it deems necessary or appropriate with respect to the delivery or withholding
of shares of Common Stock to meet tax withholding obligations.

                                       10
<PAGE>

8.6 SURRENDER OF AWARDS. Any Award granted under the Plan may be surrendered to
the Company for cancellation on such terms as the Committee and the Participant
approve.

8.7 ADJUSTMENTS TO REFLECT CAPITAL CHANGES.

                  (A) RECAPITALIZATION. The number and kind of shares subject to
outstanding Awards, the number and kind of shares available for Awards
subsequently granted under the Plan and the maximum number of shares in respect
of which Awards can be made to any Participant in any calendar year shall be
appropriately adjusted to reflect any stock dividend, stock split, combination
or exchange of shares, merger, consolidation or other change in capitalization
with a similar substantive effect upon the Plan or the Awards granted under the
Plan. The Committee shall have the power and sole discretion to determine the
amount of the adjustment to be made in each case.

                  (B) MERGER. After any Merger in which the Company is the
surviving corporation, each Participant shall, at no additional cost, be
entitled upon receipt of any Award to receive (subject to any required action by
stockholders), in lieu of the number of shares of Common Stock receivable or
exercisable pursuant to such Award prior to such Merger, the number and class of
shares or other securities to which such Participant would have been entitled
pursuant to the terms of the Merger if, at the time of the Merger, such
Participant had been the holder of record of a number of shares of Common Stock
equal to the number of shares of Common Stock receivable or exercisable pursuant
to such Award. Comparable rights shall accrue to each Participant in the event
of successive Mergers of the character described above. In the event of a Merger
in which the Company is not the surviving corporation, the surviving,
continuing, successor or purchasing corporation, as the case may be (the
"Acquiring Corporation"), will either assume the Company's rights and
obligations under outstanding Award Agreements or substitute awards in respect
of the Acquiring Corporation's stock for outstanding Awards, provided, however,
that if the Acquiring Corporation does not assume or substitute for such
outstanding Awards, the Board shall provide prior to the Merger that any
unvested portion of the outstanding Awards shall be immediately vested as of a
date prior to such merger or consolidation, as the Board so determines. The
vesting of any Award that was permissible solely by reason of this Section
8.7(b) shall be conditioned upon the consummation of the Merger.

8.8 NO RIGHT TO EMPLOYMENT. No employee or other person shall have any claim of
right to be granted an Award under the Plan. Neither the Plan nor any action
taken hereunder shall be construed as giving any employee any right to be
retained in the employ of the Company or any of its Subsidiaries.

8.9 AWARDS NOT INCLUDABLE FOR BENEFIT PURPOSES. Payments received by a
Participant pursuant to the provisions of the Plan shall not be included in the
determination of benefits under any pension, group insurance or other benefit
plan applicable to the Participant which is maintained by the Company or any of
its Subsidiaries, except as may be provided under the terms of such plans or
determined by the Board.

8.10 GOVERNING LAW. All determinations made and actions taken pursuant to the
Plan shall be governed by the laws of the State of New Jersey and construed in
accordance therewith.

8.11 NO STRICT CONSTRUCTION. No rule of strict construction shall be implied
against the Company, the Committee or any other person in the interpretation of
any of the terms of the Plan, any Award granted under the Plan or any rule or
procedure established by the Committee.

8.12 CAPTIONS. The captions (i.e., all Section headings) used in the Plan are
for convenience only, do not constitute a part of the Plan, and shall not be
deemed to limit, characterize or affect in any way any provisions of the Plan,
and all provisions of the Plan shall be construed as if no captions had been
used in the Plan.

                                       11
<PAGE>

8.13 SEVERABILITY. Whenever possible, each provision in the Plan and every Award
at any time granted under the Plan shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of the Plan or
any Award at any time granted under the Plan shall be held to be prohibited by
or invalid under applicable law, then (a) such provision shall be deemed amended
to accomplish the objectives of the provision as originally written to the
fullest extent permitted by law and (b) all other provisions of the Plan, such
Award and every other Award at any time granted under the Plan shall remain in
full force and effect.

8.14     AMENDMENT AND TERMINATION.

                  (A) AMENDMENT. The Board shall have complete power and
authority to amend the Plan at any time without the authorization or approval of
the Company's stockholders, unless the amendment (i) materially increases the
benefits accruing to Participants under the Plan, (ii) materially increases the
aggregate number of securities that may be issued under the Plan or (iii)
materially modifies the requirements as to eligibility for participation in the
Plan, but in each case only to the extent then required by the Code or
applicable law, or deemed necessary or advisable by the Board. No termination or
amendment of the Plan may, without the consent of the Participant to whom any
Award shall theretofore have been granted under the Plan, materially adversely
affect the right of such individual under such Award.

                  (B) TERMINATION. The Board shall have the right and the power
to terminate the Plan at any time. No Award shall be granted under the Plan
after the termination of the Plan, but the termination of the Plan shall not
have any other effect and any Award outstanding at the time of the termination
of the Plan may be exercised after termination of the Plan at any time prior to
the expiration date of such Award to the same extent such Award would have been
exercisable had the Plan not been terminated.

                                      * * *

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