Document:

GK INTELLIGENT SYSTEMS, INC.

                        AMENDED 2004 STOCK OPTION PLAN

      1.  Purposes  of the Plan.  The  purposes  of the Plan are to attract
and retain the best available personnel for positions of substantial
responsibility, to provide additional  incentive to Employees and Consultants
and to promote the success of the  Company's  business  through  the  issuance
of  options,  stock purchase rights,  other stock-based awards, and other
benefits.  Options granted under the Plan may be Incentive  Stock Options or
Nonstatutory  Stock  Options. Stock purchase rights may also be granted under
the Plan

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

            a.  "Administrator"  means  the  Board  or  any  of  its
Committees appointed pursuant to Section 4 of the Plan to administer the Plan.

            b.  "Award"  means any award or benefit  granted to any
participant under the Plan,  including,  without  limitation,  the grant of
Options,  Stock Purchase Rights, and other Stock-based awards and other
benefits.

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

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

            e. "Committee" means a Committee appointed by the Board of
Directors in accordance with Section 4 of the Plan.

            f. "Common Stock" means the Common Stock of the Company.

            g. "Company" means GK Intelligent Systems, Inc.

            h. "Consultant" means any person,  including an advisor,  who is
not an Employee but is engaged by the Company or any Parent or  Subsidiary to
render services and is compensated  for such services,  and any director of
the Comany whether  compensated  for such services or not provided that if and
in the event the Company  registers any class of any equity security pursuant
to the Exchange Act, the term  Consultant  shall  thereafter  not include
directors who are not compensated for their services or are paid only a
director's fee by the Company.

            i.  "Disability"  means,  with  respect  to an  Optionee,  that
the Optionee has any medically  determinable physical or mental impairment
which can be expected  to result in death or which has lasted or can be
expected to last for a continuous  period of not less than twelve (12) months,
and which renders the Optionee unable to engage in any substantial  gainful
activity.  An Optionee shall not be considered to have a Disability unless
Optionee  furnishes proof of the  existence  thereof  in such  form  and
manner,  and at such  time,  as the Administrator may require,  and the
Administrator  determines in its discretion that  the  Optionee  has  such  a
medically  determinable  physical  or  mental impairment.

            j.   "Employee"   means any person who is  determined  by the
Administrator  to be a common  law  employee  of the  Company  or any  Parent
or Subsidiary  of the Company.  With respect to any entity for which the
Company or any  Parent  of  Subsidiary  of the  Company  is a  single  owner
and  which is disregarded  as  an  entity   separate  from  its  owner
pursuant  to  Treasury Regulations Section  301.7701-3,  any person who
determined by the Administrator to be a common law employee of that entity
shall be treated as an Employee.

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

            l. "Fair Market  Value" means,  as of any date,  the value of
Common Stock determined as follows:

                 i. If the Common Stock is listed on any  established  stock
exchange or a national  market system  including  without  limitation  the
National Market  System of the National  Association  of Securities  Dealers,
Inc. Automated Quotation  ("NASDAQ") System, its Fair Market Value shall be
the  closing  sales price for such stock on the date of  determination  (or
the closing  bid,  if no sales were  reported,  as quoted on such  exchange or
system for the last market trading day prior to the time of determination)
as  reported  in The Wall  Street  Journal  or such  other  source  as the
Administrator deems reliable;

                 ii. If the Common  Stock is quoted on the NASDAQ  System (but
not on the National  Market System  thereof) or regularly  quoted by a
recognized securities  dealer but selling  prices are not  reported,  its Fair
Market  Value shall be the mean  between the high bid and low asked prices for
the  Common Stock on the date of determination or;

                 iii. In the absence of an  established  market for the Common
Stock, the Fair Market Value  thereof  shall be  determined  in good faith by
the Administrator.

            m.  "Incentive  Stock Option" means an Option which is treated as
an incentive  stock option within the meaning of Section 422 of the Code. An
Option shall only be treated as an Incentive Stock Option pursuant to the Plan
if it is originally  designated as an Incentive Stock Option in the Option
Agreement.  An Option originally designated in an Option Agreement as an
Incentive Stock Option may  nonetheless be treated as a Nonstatutory  Stock
Option if the Option at any time after  grant  fails to meet to  requirements
for  incentive  stock  option treatment under Section 422 of the Code.

            n.  "Nonstatutory  Stock  Option"  means an  Option  which is not
an Incentive  Stock Option.  An Option which is designated as a Nonstatutory
Stock Option in the Option Agreement pursuant to which the Option was granted
shall in all events be treated as a  Nonstatutory  Stock Option.  Furthermore,
an Option originally  designated as an Incentive  Stock Option may
subsequently become a Nonstatutory  Stock  Option  upon the  Option
subsequently  failing to meet the requirements for incentive stock option
under Section 422 of the Code.

            o. "Officer"  means a person who is an officer of the Company
within the  meaning  of Section 16 of the  Exchange  Act and the rules and
regulations promulgated thereunder.

            p. "Option" means a stock option granted pursuant to the Plan.

            q.  "Option  Agreement"  has the  meaning  set forth in  Section
18 hereof.

            r. "Optioned Stock" means the Common Stock subject to an Option or
a Stock Purchase Right.

            s. "Optionee" means an Employee or Consultant who receives an
Option or Stock Purchase Right, other Stock-based award, or other benefit.

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

            u. "Plan" means this 2004 Stock Option Plan, as amended from time
to time in accordance with the terms hereof.

            v.  "Restricted  Stock" has the meaning  set forth in Section
11(a) hereof.

            w. "Restricted  Stock Purchase  Agreement" has the meaning set
forth in Section 11(a) hereof.

             x.  "Share"  means a share  of the  Common Stock, as adjusted in
accordance with Section 12 below.

            y. "Stock  Purchase  Right" means the right to purchase Common
Stock pursuant to Section 11 below.

            z. "Stock  Purchase  Right  Agreement"  has the meaning set forth
in Section 18 hereof.

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

            bb.  "Ten  Percent  Shareholder"  means a person who, at the time
an Option is granted, owns, or is deemed within the meaning of Section
422(b)(6) of the Code to own,  stock  possessing  more  than ten  percent
(10%) of the total combined  voting  power  of all  classes  of  stock  of the
Company  (or of its Subsidiary or parent (within the meaning of Section 424(e)
of the Code)).

      3. Stock Subject to the Plan. Subject to adjustment pursuant to Section
12 of the Plan, and effective as of December 27, 2004, the maximum  aggregate
number of shares which may be issued  pursuant to the Plan is 90,000,000
shares of Common Stock.  Such  number of shares of  Common  Stock may be
issued  under  this Plan pursuant to Incentive Stock Options,  Nonstatutory
Stock Options, Stock Purchase Rights, other Stock-based awards, other
benefits, or any combination thereof, so long as the aggregate  number of
shares so issued does not exceed such number of shares, as adjusted.  The
shares may be authorized,  but unissued, or reacquired Common Stock. If an
Option should expire or become unexercisable for any reason without having
been exercised in full, the unpurchased Shares which were subject thereto
shall, unless the Plan shall have been terminated,  become available for
future grant under the Plan.

      4. Administration of the Plan.

            a. Initial Plan Procedure. Prior to the date, if any, upon which
the  Company  becomes  subject to the Exchange  Act,  the  Plan  shall be
administered by the Board or a committee appointed by the Board.

            b. Plan Procedure After the Date,  if any,  Upon Which the Company
Becomes Subject to the Exchange Act.

                  i. Administration With Respect to Directors and Officers.
With respect  to  grants  of  Options,   Stock  Purchase  Rights,   other
Stock-based  awards,  or other  benefits,  to Employees who are also officers
or directors of the Company, the Plan shall be administered by (A) the Board
if the Board may  administer the Plan in compliance with Rule 16b-3
promulgated under the Exchange Act or any successor thereto  ("Rule  16b-3")
with respect to a plan  intended to qualify thereunder as a discretionary
plan, or (B) a committee designated by the  Board  to  administer  the  Plan,
which  committee  shall  be constituted  in such a manner as to permit  the
Plan to comply  with Rule 16b-3 with respect to a plan intended to qualify
thereunder as a discretionary plan. Once appointed,  such Committee shall
continue to serve in its designated  capacity until otherwise directed by the
Board.  From  time to time the Board  may  increase  the size of the Committee
and appoint  additional  members  thereof,  remove members(with or without
cause) and  appoint  new  members in  substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and  thereafter
directly  administer the Plan, all to the extent  permitted by Rule 16b-3 with
respect to a plan  intended to qualify thereunder as a discretionary plan.

                  ii.  Multiple  Administrative  Bodies.  If  permitted  by
Rule 16b-3, the Plan may be administered by different bodies with respect to
directors,  non-director  officers and Employees who are neither directors nor
officers.

                  iii.  Administration  With  Respect to  Consultants  and
Other Employees. With respect to grants of Options, Stock Purchase Rights,
other  Stock-based  awards,  or  other  benefits,  to  Employees  or
Consultants  who are neither  directors nor officers of the Company, the Plan
shall be  administered  by (A) the Board or (B) a committee designated by the
Board,  which  committee  shall be  constituted in such a manner as to satisfy
the legal  requirements  relating to the administration  of incentive stock
option plans, if any, of Delaware corporate and  securities  laws, of the
Code,  and of any applicable stock  exchange (the "Applicable  Laws").  Once
appointed,  such Committee  shall continue to serve in its designated
capacity until otherwise  directed  by the  Board.  From time to time the
Board may increase the size of the  Committee and appoint  additional  members
thereof,  remove  members  (with or without  cause) and  appoint new members
in substitution  therefor,  fill vacancies,  however caused, and remove all
members of the  Committee  and  thereafter  directly administer the Plan,  all
to the extent permitted by the Applicable Laws.

                  iv.  Administration  With  Respect  to  Directors  Who Are
Not Employees. With respect to grants of Options, Stock Purchase Rights,
other Stock-based awards, or other benefits to directors who are not
Employees,  the Plan shall be administered by (A) the Board or (B) a committee
designated by the Board;  provided that any policy of the Company concerning
grants of Options,  Stock Purchase Rights,  other Stock-based  awards, or
other benefits to non-Employee  directors as director compensation shall be
approved by a majority of the members of the Board who are either Employees of
the Company or non-Employee directors who have waived their right to receive
such compensation.

            c. Powers of the  Administrator.  Subject to the  provisions  of
the Plan and in the case of a Committee,  the specific duties delegated by the
Board to such  Committee,  and subject to the  approval of any  relevant
authorities, including the approval, if required, of any stock exchange upon
which the Common Stock is listed, the Administrator shall have the authority,
in its discretion:

                  i. to determine the Fair Market Value of the Common Stock,
in accordance with Section 2(k) of the Plan;

                  ii. to select the  Consultants  and Employees to whom
Options, Stock Purchase Rights,  other Stock-based  awards, or other benefits
may from time to time be granted hereunder;

                  iii. to determine whether and to what extent Options and
Stock Purchase Rights or any combination thereof are granted hereunder;

                  iv. to  determine  the number of shares of Common  Stock to
be covered by each such award granted hereunder;

                  v. to  approve  forms of  agreement  for use  under  the
Plan, including  without  limitation,  Stock  Purchase  Right  Agreements,
Restricted Stock Purchase  Agreements and Option  Agreements,  which forms
need not be the same for any Optionee;

                  vi. to determine the terms and  conditions,  not
inconsistent with the terms of the Plan,  of any Option,  Stock  Purchase
Right, other  Stock-based  awards,  or other  benefits  granted  hereunder,
including without limitation  establishing vesting schedules for the exercise
of  Options  which  are  based  upon the  passage  of time performing services
for the Company,  meeting specified  performance criteria or any other
standards as may be determined  appropriate by the Administrator;

                  vii.  to  determine  whether and under what  circumstances
an Option may be settled in cash instead of Common Stock;

                  viii.  to reduce the exercise  price of any Option to the
then current  Fair Market  Value if the Fair  Market  Value of the Common
Stock covered by such Option shall have declined  since the date the Option
was granted;

                  ix. to determine  the terms and  restrictions  applicable
to Stock Purchase Rights and the Restricted Stock purchased by exercising such
Stock Purchase Rights; and

                  x. to interpret  the Plan,  establish,  amend and rescind
any rules and  regulations  relating to the Plan, to determine the terms
and provision of any  agreements  entered into pursuant to the Plan, and to
make  all  other  determinations  that  may be  necessary  or advisable for
the administration of the Plan.

            d. Effect of Administrator's  Decision.  Whether explicitly
provided elsewhere in this Plan with respect to any matter, all decisions,
determinations and interpretations of the Administrator  provided in this Plan
shall be made in the Administrator's sole and absolute discretion, and shall
be final and binding on all Optionees and any other holders of any Options,
Stock  Purchase  Rights, other Stock-based awards, or other benefits.

      5. Eligibility.

            a.  Nonstatutory  Stock  Options  and Stock  Purchase  Rights may
be granted  to  such   Employees  and   Consultants  as  may  be  selected  by
the Administrator.  Incentive  Stock Options may be granted to such Employees
as may be selected by the  Administrator and may in no event be granted to
someone who, on the date of grant, is not an Employee. An Employee or
Consultant who has been granted an Option or Stock Purchase Right may, if
otherwise eligible, be granted additional  Options,  Stock Purchase Rights,
other Stock-based awards, or other benefits.

            b. Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option.
Notwithstanding such designations,  to the extent that the aggregate Fair
Market Value (determined as of the date of grant of the Option) of the shares
of Option  Stock with  respect to which Options initially designated as
Incentive Stock Options are exercisable for the first time by any Optionee
during any calendar year (under all plans of the Company or any Parent or
Subsidiary)  exceeds $100,000,  such excess Options shall be treated as
Nonstatutory Stock Options.

            c. For purposes of Section  5(b),  Incentive  Stock Options shall
be taken into account in the order in which they were granted,  and the Fair
Market Value of the Shares shall be  determined  as of the time the Option
with respect to such Shares is granted.

            d. The Plan  shall not  confer  upon any  Optionee  any  right
with respect to  continuation  of  employment  or  consulting  relationship
with the Company,  nor  shall  it  interfere  in any way  with  his or her
right or the Company's right to terminate his or her employment or consulting
relationship at any time, with or without cause.

            e. Non-Uniform  Determinations.  The Administrator's
determinations under the Plan (including  without  limitation  determinations
of the persons to receive  awards,  the form,  amount  and  timing of such
awards,  the terms and provisions  of such  awards  and the  agreements
evidencing  same)  need not be uniform and may be made by it  selectively
among  persons who  receive,  or are eligible  to receive,  awards  under the
Plan,  whether or not such  persons are similarly situated.

            f. Newly Eligible Employees.  The Administrator shall be entitled
to make such rules, regulations,  determinations and awards as it deems
appropriate in respect of any Employee who becomes  eligible to  participate
in the Plan or any portion thereof after the commencement of an award or
incentive period.

            g. Leaves of Absence.  The  Administrator  shall be entitled to
make such rules,  regulations and  determinations  as it deems  appropriate
under the Plan in  respect of any leave of absence  taken by the  recipient
of any award. Without  limiting the generality of the foregoing,  the
Administrator shall be entitled  to  determine  (i)  whether  or not any such
leave of  absence  shall constitute a termination  of employment  within the
meaning of the Plan and (ii) the  impact,  if any,  of any such  leave of
absence  on awards  under the Plan theretofore made to any recipient who takes
such leave of absence.

      6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company as described in Section 19 of the Plan. It shall
continue in effect for a term of ten (10) years unless  sooner  terminated
under Section 15 of the Plan.

      7. Term of Option. The term of each Option shall be the term stated in
the Option  Agreement;  provided,  however,  that the term shall be no more
than ten (10) years from the date of grant thereof.  However, in the case of
an Incentive Stock Option granted to a Ten Percent  Shareholder  the term of
the Option shall be five (5) years from the date of grant  thereof or such
shorter term as may be provided in the Option Agreement.

      8. Option Exercise Price and Consideration.

            a. The per share  exercise  price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Administrator; provided  however,  that with respect to any Incentive  Stock
Option,  the price shall be:

               i. no less than 110% of the Fair Market Value per Share on the
date of grant, if granted to a Ten Percent Shareholder;

               ii. no less than  100% of the Fair  Market  Value per Share on
the date of grant,  if granted to a person  other than a Ten Percent
Shareholder.

            b. The consideration  to be paid for the  Shares to be issued
upon exercise of an Option,  including the method of payment,  shall be
determined by the  Administrator  (and,  in the case of an Incentive  Stock
Option, shall be determined  at the time of grant)  and may  consist  entirely
of (1) cash,  (2) check,  (3)  promissory  note,  (4) other Shares which (x)
in the case of Shares acquired  upon  exercise of an Option either have been
owned by the Optionee for more than six months on the date of surrender or
were not acquired,  directly or indirectly,  from the  Company,  and (y) have
a Fair Market Value on the date of surrender  equal to the aggregate  exercise
price of the Shares as to which said Option shall be exercised,  (5) delivery
of a properly  executed exercise notice together with such other documentation
as the  Administrator and the broker, if applicable,  shall  require to effect
an exercise of the Option and  delivery to the Company of the sale or loan
proceeds  required to pay the exercise price, or (6)  any  combination  of the
foregoing  methods  of  payment.  In  making  its determination as to the type
of consideration to accept, the Administrator shall consider if  acceptance
of such  consideration  may be  reasonably  expected to benefit the Company.

      9. Exercise of Option.

            a.  Procedure  for  Exercise;  Rights as a  Shareholder.  Any
Option granted  hereunder  shall be exercisable at such times and under such
conditions as determined by the Administrator,  including performance criteria
with respect to the Company and/or the Optionee,  and as shall be permissible
under the terms of the Plan.

                 i. An Option may not be exercised for a fraction of a Share.

                 ii. An Option shall be deemed to be exercised  when written
notice of such  exercise has been given to the Company in accordance with the
terms of the Option  Agreement  by the person  entitled  to exercise the
Option and full payment for the Shares with respect to
which the Option is exercised has been received by the Company. Full payment
may, as  authorized  by the  Administrator,  consist of any consideration and
method of payment allowable under Section 8(b) of the Plan. Until the issuance
(as evidenced by the appropriate  entry on the books of the Company or of a
duly  authorized  transfer agent of the Company) of the stock certificate
evidencing such Shares, no right  to  vote  or  receive  dividends  or any
other rights as a shareholder shall exist with respect to the  Optioned
Stock, notwithstanding  the exercise of the Option. The Company shall issue
(or  cause  to be  issued)  such  stock  certificate  promptly  upon exercise
of the Option. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the stock certificate is issued,
except as provided in Section 12 of the Plan.

                  iii.  Exercise  of an Option in any manner shall result in a
decrease in the number of Shares which  thereafter may be available,  both for
purposes of the Plan and for sale under the Option,  by the number of Shares
as to which the Option is exercised.

            b. Withholding Taxes.  Whenever the Company proposes or is
required to issue or transfer  shares of Common Stock under the Plan,  the
Company shall have the  right to  require  the  grantee  to remit  to the
Company  an  amount sufficient  to  satisfy  any  federal,   state  and/or
local withholding  tax requirements  prior to the delivery of any certificate
or certificates  for such shares.  Alternatively,  the Company may issue or
transfer such shares of Common Stock net of the number of shares  sufficient
to satisfy  the  withholding  tax requirements.  For withholding tax purposes,
the shares of Common Stock shall be valued on the date the withholding
obligation is incurred.

            c. Termination or Lapse of Options Issued to Employees. The
following provisions  of this  Section  9(c) and Section  9(e) shall apply to
every Option unless the Option  Agreement  explicitly  specifies that such
provisions do not apply to the Option evidenced by that Option Agreement. Any
portion of an Option which is not otherwise  exercisable as of the date of an
Optionee's  termination of employment with the Company and any Parent or
Subsidiary  shall terminate and not be  exercisable.  Any portion of an Option
which was  exercisable  as of the date of termination of any such employment
shall be exercisable  following such termination  of employment  only as
hereinafter  provided in this Section 9(c), subject to Section 9(e).

                  i.  Termination  of  Employment;  Generally.  In the  event
of termination  of an  Optionee's  employment  with the Company and any Parent
or Subsidiary under any situation not described in paragraphs  2) or 3) of
this Section 9(c),  the Optionee may exercise any Option to the  extent  the
Option  was  exercisable  as of  the  date  of termination  of  employment
until the  earlier of the date which is three (3) months after the date of
termination of employment or the expiration  the  term  of the  Option  as set
forth  in the  Option Agreement,  whereupon  the Option shall  terminate  and
no longer be exercisable.   For  purposes  of  this  paragraph,   a  transfer
of employment  relationship  between  or  among  the  Company  and/or a
related entity shall not be deemed to constitute a cessation of the employment
relationship  with  the  Company  or any of its  related entities. For
purposes of this paragraph,  with respect to Incentive  Stock  Options,
employment  shall be deemed to  continue  while the Optionee is on military
leave,  sick leave or other bona fide leave of absence  (as  determined  by
the  Administrator).  The  foregoing notwithstanding,  employment  shall not
be deemed to continue beyond the first 90 days of such leave, unless the
Optionee's  reemployment rights are guaranteed by statute or by contract.

                  ii. Disability of Optionee.  In the event of termination of
an Optionee's  employment with the Company and any Parent or Subsidiary due to
Disability,  the  Optionee  may  exercise  any Option to the extent the Option
was  exercisable  as of the date of termination of employment until the
earlier of the date which is twelve (12) months from the date of such
termination  or the expiration of the term of the  Option  as set forth in the
Option  Agreement,  whereupon  the option shall terminate and no longer be
exercisable.

                  iii.  Death of  Optionee.  In the event of  termination  of
an Optionee's  employment with the Company and any Parent or Subsidiary as a
result of the death of an Optionee, the Option may be exercised to the extent
the  Option  was  exercisable  as of the date of death until the  earlier of
the date which is twelve  (12) months from the date of death or the
expiration  of the term of the  Option  as set forth in the Option Agreement,
whereupon the Option shall terminate and no longer be exercisable.

            d. Termination of Options issued to Consultants. The conditions
upon which an  Option  granted  to a  Consultant  will  terminate  as a result
of the Consultants'  termination  of  services to the  Company,  whether as a
result of death, disability,  voluntary termination,  termination for cause,
or nonrenewal of any  consulting  agreement,  shall be as  determined  by the
Company and the Consultant  at the time of  grant  of the  Option  as set
forth  in the  Option Agreement.

            e. Termination of Options due to Termination for Cause. In the
event an Optionee is terminated as an Employee or Consultant for cause,  as
determined by the Administrator in its sole discretion,  or breaches any
agreement with the Company,  before  or  after  termination,  including  any
noncompete  covenant, confidentiality agreement, or employment agreement, then
any Options held by the Optionee shall immediately terminate.  As used herein,
"cause" shall mean fraud; dishonesty;  negligence;  willful  misconduct  in
the  performance  of a persons duties as an Employee or  Consultant;
commission of a felony;  commission of an act of moral turpitude (e.g. theft,
embezzlement and the like) which in the good faith determination of the
Administrator, is materially injurious to the Company or any  Parent or
Subsidiary;  inattention  to or  substandard  performance  of duties;  failure
to  perform a properly  assigned  duty;  failure to follow the lawful  written
policies,  rules or  directives of the Company or any Parent of Subsidiary
which failures, in the good faith determination of the Administrator, are
materially  injurious to the Company or any Parent or Subsidiary;  violating
any restrictive  covenant in favor of the Company or any Parent of Subsidiary
or any other  material  breach of any  employment or consulting  agreement
with the Company or any Parent or Subsidiary.

            f. Rule 16b-3.  Options  granted to persons subject to Section
16(b) of the  Exchange  Act must  comply  with  Rule  16b-3  and  shall
contain such additional  conditions or restrictions as may be determined by
the Administrator to be required  thereunder to qualify for the maximum
exemption from Section 16 of the Exchange Act with respect to Plan
transactions.

            g. Buyout Provisions. The Administrator may at any time offer to
buy out for a payment in cash or Shares, an Option previously granted, based
on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

      10.  Non-Transferability of Options and Stock Purchase Rights. Options
and Stock  Purchase  Rights  may  not  be  sold,  pledged,  assigned,
hypothecated, transferred,  or disposed of in any manner  other than by will
or by the laws of descent  or  distribution  and may be  exercised,  during
the  lifetime  of the Optionee, only by the Optionee.

      11. Stock Purchase Rights.

            a. Rights to Purchase.  Stock  Purchase  Rights may be issued to
any Employee or Consultant.  After the  Administrator  determines that it will
offer Stock Purchase  Rights under the Plan, it shall advise the offeree in
writing of the terms,  conditions  and  restrictions  related to the offer,
including  the number of Shares that such person shall be entitled to
purchase, the rice to be paid, and the time within which such person must
accept such offer,  which shall in no event  exceed  sixty (60) days from the
date upon which the  Administrator made the  determination  to grant the Stock
Purchase  Right.  The offer shall be accepted by  execution  of a  restricted
stock  purchase  agreement in the form determined by the Administrator
("Restricted Stock Purchase Agreement").  Shares purchased  pursuant to the
grant of a Stock  Purchase Right shall be referred to herein as "Restricted
Stock")

            b. Repurchase Option. Unless the Administrator determines
otherwise, the  Restricted  Stock Purchase  Agreement  shall grant the Company
a repurchase option  exercisable  upon  the  voluntary  or  involuntary
termination  of  the purchaser's  employment  with the  Company  for any
reason  (including  death or Disability).   The  purchase  price  for  Shares
repurchased  pursuant  to  the Restricted  Stock  Purchase  Agreement  shall
be the original  price paid by the purchaser and may be paid by cancellation
of any  indebtedness of the purchaser to  the  Company.  The  repurchase
option  shall  lapse  at  such  rate  as the Administrator may determine.

            c. Other Provisions.  The Restricted Stock Purchase  Agreement
shall contain such other terms,  provisions and conditions not  inconsistent
with the Plan as may be  determined  by the  Administrator  in its  sole
discretion.  In addition, the provisions of Restricted Stock Purchase
Agreements need not be the same with respect to each purchaser.

            d.  Rights  as a  Shareholder.  Once  the  Stock  Purchase  Right
is exercised,  the  purchaser  shall  have  the  rights  equivalent  to  those
of a shareholder, and shall be a shareholder when his or her purchase is
entered upon the records of the duly authorized  transfer agent of the
Company. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the Stock Purchase Right is exercised,
except as provided in Section 12 of the Plan.

      12. Other Awards

            a. Other  Stock-Based  Awards.  Other awards,  valued in whole or
in part by reference  to, or otherwise  based on,  shares of Stock,  may be
granted either alone or in addition to or in  conjunction  with any awards
described  in this Plan for such  consideration,  if any,  and in such amounts
and having such terms and conditions as the Board may determine.

            b. Other  Benefits.  The Board shall have the right to provide
types of  benefits  under the Plan in addition to those  specifically  listed,
if the Board believe that such  benefits  would further the purposes for which
the Plan was established.

      13. Adjustments Upon Changes in Capitalization or Change in Control.

            a. Changes in Capitalization. If the shares of Common Stock shall
be subdivided  or combined  into a greater or smaller  number of shares,  or
if the Company shall  issue  any  shares of Common  Stock as a stock  dividend
on its outstanding  Common Stock, the number of shares of Option Stock
deliverable upon the  exercise  of an  Option  or Stock  Purchase  Right
shall be  appropriately increased or decreased  proportionately,  and
appropriate  adjustments  shall be made in the purchase price per share to
reflect such subdivision, combination or stock dividend, all as determined by
the Administrator in its discretion. Except as expressly  provided herein,  no
issuance by the Company of shares of stock of any class, or securities
convertible  into shares of stock of any class,  shall affect,  and no
adjustment by reason  thereof shall be made with respect to, the number or
price of shares of Common Stock subject to an Option,  Stock  Purchase Right,
other Stock-based awards, or other benefits. Upon the happening of any of the
events described in this paragraph, the class and aggregate number of shares
set forth in Section 3 hereof  shall also be  appropriately  adjusted to
reflect such events.  The Administrator  shall determine the specific
adjustments to be made under this paragraph.

            b.  Change  in  Control.  In  the  event  of  (1) a  dissolution
or liquidation of the Company,  (2) a merger or  consolidation in which the
Company is not the surviving corporation (other than a merger or consolidation
with a wholly-owned  subsidiary,  a  reincorporation  of  the  Company  in a
different jurisdiction, or other transaction in which there is no substantial
change in the stockholders of the Company or their relative stock holdings and
the Options granted  under this Plan are  assumed,  converted  or replaced by
the  successor corporation,  which  assumption  will be binding on Optionees),
(3) a merger in which the Company is the surviving  corporation but after
which the stockholdersof the Company immediately prior to such merger (other
than any stockholder that merges,  or which owns or controls another
corporation  that merges,  with the Company in such  merger)  cease to own
their  shares or equity  interests in the Company), (4) the sale of
substantially all of the assets of the Company; or (5) the acquisition, sale,
or transfer of more than 50% of the outstanding shares of the Company by
tender offer or similar  transaction  (any of the foregoing shall be referred
to as a "Corporate  Transaction"),  any or all outstanding  Options, Stock
Purchase  Rights,  other  Stock-based  awards,  or other  benefits may be
assumed,  converted or replaced by the  successor  corporation  (if any),
which assumption,  conversion or replacement will be binding on all Optionees.
In the alternative,  the successor corporation may substitute equivalent
Options, Stock Purchase  Rights  other  Stock-based   awards,  or  other
benefits or provide substantially similar consideration to Optionees as was
provided to stockholders (after taking into account the existing  provisions
of the Options and the Stock Purchase  Rights).  In the event such successor
corporation (if any) refuses to assume or substitute such Options,  as
provided  above,  pursuant to a Corporate Transaction  described  in this
paragraph,  then any  Options, Stock Purchase Rights,  other  Stock-based
awards,  or other  benefits which are not exercised prior to the  consummation
of the  Corporate  Transaction  shall  terminate  in accordance  with the
provisions  of this  Plan.  In the  event  of a  Corporate Transaction, the
Administrator is authorized, in its sole discretion, but is not obligated,  to
waive any vesting  schedule in some or all of the Options,  Stock Purchase
Rights,  other  Stock-based  awards,  or other benefits,  such that the
vesting of any such Options and Stock Purchase Rights be accelerated so that
all or part of the  previously  unvested  portion of such  Options,  Stock
Purchase Rights, other Stock-based awards, or other benefits are exercisable
prior to the consummation of such Corporate  Transaction at such times and on
such conditions as the Administrator  determines.  In addition, the
Administrator is authorized, but not  obligated,  at the time  any  Options,
Stock  Purchase  Rights,  other Stock-based  awards,  or other  benefits  is
granted  or  thereafter,  to grant Optionees  the right to receive a cash
payment equal to the  difference  between the exercise price of the Options,
Stock  Purchase  Rights,  other  Stock-based awards,  or other  benefits  and
the price per share of the Common Stock paid in connection with the Corporate
Transaction on such terms and conditions that the Administrator may approve at
the time.

      14. Time of Granting Options and Stock Purchase Rights.  The date of
grant of an Option,  Stock Purchase Right, other Stock-based awards, or other
benefits shall,  for all  purposes,  be the date on which  the  Administrator
makes the determination  granting such Option or Stock Purchase  Right, or
such other date as is  determined by the  Administrator.  Notice of the
determination  shall be given to each Employee or Consultant to whom an
Option,  Stock  Purchase  Right, other  Stock-based  awards,  or other
benefits is so granted within a reasonable time after the date of such grant.

      15. Amendment and Termination of the Plan.

            a.  Amendment  and  Termination.  The Board  may at any time
amend, alter,  suspend or  discontinue  the Plan,  but no amendment,
alteration, suspension or discontinuation  shall be made which would impair
the rights of any  Optionee  under any grant  theretofore  made,  without  his
or her consent. In addition, to the extent necessary and desirable to comply
with Rule 16b-3 under the  Exchange Act or with Section 422 of the Code (or
any other applicable law or regulation, including the requirements of the NASD
or an established  stock exchange),  the Company shall obtain shareholder
approval of any Plan amendment in such a manner and to such a degree as
required.

            b.  Effect  of  Amendment  or  Termination.  Any such  amendment
or termination of the Plan shall not affect Options,  Stock Purchase  Rights,
other  Stock-based  awards,  or other  benefits  already  granted and such
Options and Stock Purchase Rights shall remain in full force and effect as
if this Plan had not been amended or terminated,  unless  mutually  agreed
otherwise between the Optionee and the Administrator, which agreement must
be in writing and signed by the Optionee and the Company.

      16.  Conditions  Upon  Issuance  of  Shares.  Shares  shall  not be
issued pursuant to the exercise of an Option,  Stock Purchase Right,  other
Stock-based awards,  or other benefits  unless the exercise of such Option or
Stock Purchase Right and the issuance and delivery of such Shares pursuant
thereto shall comply with  all  relevant  provisions  of  law,  including,
without  limitation,  the Securities Act of 1933, as amended,  the Exchange
Act, the rules and regulations promulgated  thereunder,  and the  requirements
of any stock exchange upon which the Shares may then be listed,  and shall be
further  subject to the approval of counsel for the Company with respect to
such compliance.

            As a condition to the exercise of an Option,  Stock Purchase
Right, other  Stock-based  awards, or other benefits the Company may require
the person exercising  such Option or Stock  Purchase Right to represent and
warrant at the time of any  such  exercise  that  the  Shares  are  being
purchased  only  for investment and without any present  intention to sell or
distribute  such Shares if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned relevant provisions of
law.

            The Company shall be under no obligation to any person  receiving
an Award  under the Plan to  register  for  offering  or resale or to  qualify
for exemption  under the  Securities  Act,  or to  register  or qualify  under
state securities laws, any shares of Common Stock,  security or interest in a
security paid or issued under, or created by, the Plan, or to continue in
effect any such registrations or qualifications if made. The Company may issue
certificates for shares  with such  legends  and subject to such  restrictions
or transfer and stop-transfer  instructions  as  counsel  for the  Company
deems necessary or desirable for compliance by the Company with federal and
state securities laws.

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

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

      18. Agreements.  The grant of any Option shall be evidenced by the
Company and the Optionee  entering into a written  agreement (an "Option
Agreement") in such form as the Administrator  shall from time to time
approve.  The grant of a Stock Purchase Right shall be evidenced by written
agreement (a "Stock Purchase Right Agreement") in such form as the
Administrator  shall approve from time to time.  The  grant of any  other
Stock-based award or other benefit shall be evidenced in such form as the
Administrator shall approve from time to time.

      19.  Shareholder  Approval.  Continuance  of the Plan  shall be subject
to approval by the  shareholders of the Company within twelve (12) months
before or after the date the Plan is adopted.  Such shareholder approval shall
be obtained in the degree and manner required under applicable state and
federal law and the rules of any stock exchange upon which the Common Stock is
listed.

      20.  Information  to  Optionees  and  Purchasers.  The Company  shall
make available to each Optionee and to each  individual who acquired  Shares
pursuant to the Plan,  during the  period  such  Optionee  or  purchaser  has
one or more Options,  Stock Purchase Rights,  other  Stock-based  awards,  or
other benefits outstanding,  and, in the case of an individual who acquired
Shares pursuant to the Plan,  during the period such individual owns such
Shares, copies of annual financial statements.  The  Company shall not be
required to provide such statements to key employees whose duties in
connection  with the Company assure their access to equivalent information.

      21. Certain Tax Matters.

            a. The  Administrator may require the holder of any Option,  Stock
Purchase Right,  Option Stock, other Stock-based awards, or other benefits
to remit to the Company,  regardless  of when such  liability  arises,  an
amount sufficient to satisfy any Federal,  state and local tax withholding
requirements  associated with such Stock Right. The Administrator  may, in its
discretion,  permit the holder of a Stock  Right to satisfy  any such
obligation by having withheld from the shares (or where applicable, cash) to
be delivered to the holder of upon exercise  of an Option or Stock Purchase
Right a number of shares (or, where applicable, amount of cash) sufficient to
meet any such withholding requirement.

            b. If a  Participant  makes an election  under  Section 83(b) of
the Code with respect to the acquisition of any Option Stock,  or disposes of
Option Stock acquired  pursuant to the exercise of an Incentive Stock
Option in a transaction  deemed to be a  disqualifying  disposition  under
Section 421 of the Code,  then,  within  thirty (30) days of such Section
83(b) election or disqualifying disposition, the Participant shall inform
the Company of such actions.

      22. Miscellaneous

            a. Upon receipt of any shares of Common Stock under the Plan, if
the Company requires its shareholders to enter into a shareholders  agreement
at the time of their  acquisition of Common Stock,  then, as a condition to
the receipt of shares under the Plan, the  Administrator  may require the
holder of an Award to execute and deliver to the Company a shareholders
agreement in substantially the form in use at the time of exercise or receipt
of shares.  This  requirement shall not apply if either:  (i) the holder of
the Award has previously  executed and delivered such shareholder agreement,
it is in effect at the time the holder of Award receives the shares,  and the
shareholders  agreement  would cover the shares received under the Plan; or
(ii) such shareholders agreement is no longer in effect with respect to other
holders of Common Stock.

            b. The  Administrator  may, in its discretion,  subject any Award
to repurchase rights provisions.  The terms and conditions of any repurchase
rights will be established by the Administrator in its sole discretion and
shall be set forth in the agreement  representing  the Award. To ensure that
shares of Common Stock  subject to a repurchase  right under this Section
22(b) will be available for repurchase,  the Administrator may require the
holder of an Award to deposit the certificate or certificates  evidencing such
shares with an agent designated by the  Administrator  under the terms and
conditions  of escrow  and  security agreements approved by the Administrator.

            c. The  Administrator  may,  in its  discretion,  subject  any
Award consisting of Common Stock to right of first refusal  provisions.  The
terms and conditions of any right of first refusal  provisions  will be
established by the Administrator in its sole discretion and set forth in the
agreement representing the Award.QuickLinks
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Exhibit 10.14  

 
 

AMENDED & RESTATED
  FOUNDER'S EMPLOYMENT AGREEMENT    
    

        THIS AMENDED & RESTATED FOUNDER'S EMPLOYMENT AGREEMENT (this "Agreement") is entered into by and between HyperSpace Communications, Inc., a Colorado
corporation (the "Company"), and John P. Yeros, an individual ("Founder"), effective as of the date ninety (90) days after the effective date of the Company's registration statement of form
SB-2, filed with the U.S. Securities and Exchange Commission (the "Effective Date"). 

RECITALS  

        A.    Founder
has participated in, and been instrumental to, the formation and organization of the Company by contributing, as a founder, his full time, business skill,
knowledge and expertise. 

        B.    Recognizing
that Founder's continued employment with the Company is essential to its ongoing operations, growth, and success, the Company desires Founder to continue in
the employ of the Company. 

        C.    The
Company desires to retain the services and to continue to employ Founder upon the terms and conditions set forth herein, and Founder desires to continue in the employ
of the Company and to provide services to the Company on the terms and conditions set forth herein. 

AGREEMENT  

        NOW THEREFORE, in consideration of the covenants and obligations set forth in this Agreement, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Company and Founder hereby agree as follows: 

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

        2.     Term. The initial term of employment hereunder shall commence on the Effective Date and shall continue for a period of one
(1) year from that date. At the end of the initial term of this Agreement, and on each anniversary thereafter, the term of Founder's employment shall be extended automatically for one
additional year unless, at least thirty (30) days prior to such anniversary, the Company shall have delivered to the Founder, or the Founder shall have delivered to the Company, written notice
that the term of the Founder's employment hereunder will not be extended. The initial term, together with any additional one year terms under this Agreement, are collectively referred to herein as the
"Term." 

        3.     Position and Duties. 

        3.1.  Service with Company. During the Term of this Agreement, Founder agrees to perform those duties described on  Exhibit A hereto, and such other reasonable employment
duties as are delegated to Founder, from time to time, by the board of directors of the
Company (the "Board"). 

        3.2.  Performance of Duties. Founder covenants and agrees to serve the Company faithfully and to the best of his ability and
to devote his full time, attention, and effort to the business and affairs of the Company during the Term, provided,  however, that the covenants set forth
in this Section 3.2 shall not be construed to prohibit Founder from devoting reasonable periods of time to
(a) engaging in personal investment activities, (b) serving on the board of directors of the Company, its subsidiaries, or other corporations or entities, so long as such service would
not otherwise be prohibited by Section 6 hereof, and/or (c) engaging in charitable or community service activities, including professional organizations, so long as such foregoing
activities do not materially interfere with Founder's duties under this Agreement. Founder hereby confirms that he

 
is under no contractual obligation or commitment inconsistent with his obligations set forth in this Agreement, and that during the Term, Founder will not render or perform services for any other
corporation, firm, or person, which are inconsistent with the provisions of this Agreement. 

        4.     Compensation. 

        4.1.  Base Salary. Commencing the Effective Date, as annual compensation for all services rendered or to be rendered by
Founder to Company under this Agreement, before all customary payroll deductions, the Company shall pay to Founder an annual base salary of Two Hundred Thousand Dollars ($200,000), which salary shall
be paid in installments on not less than a monthly basis in accordance with the Company's ordinary payroll policies. The compensation payable to Founder during each subsequent year during the Term
shall be established by the Board, but in no event shall the salary for any subsequent year be less than the salary in effect for the prior year unless founder agrees in advance to a reduced role that
warrants a lower salary. 

        4.2.  Incentive Compensation. In addition to the base salary described in Section 4.1 above, Founder shall be eligible
to participate in such bonus or incentive compensation plans as may be established by the Board from time-to-time for employees and/or directors of the Company, at the
discretion of the Board. 

        4.3.  Participation in Benefit Plans. During the Term of this Agreement, Founder shall be entitled to receive such medical and
hospitalization insurance and other fringe benefits as are being provided, from time-to-time, to other employees and/or directors of the Company of similar authority or
position, to the extent that Founder's age, position, or other factors qualify him for such fringe benefits. 

        4.4.  Expenses. The Company will pay or reimburse Founder for all reasonable and necessary
out-of-pocket expenses incurred by him in the performance of his duties under this Agreement, subject to the presentment by Founder of appropriate invoices, bills, or receipts
in accordance with the Company's ordinary policies for expense reimbursement. 

        5.     Confidential Information. Other than for the sole benefit of the Company, during the Term of this Agreement and for a
period of three (3) years thereafter, Founder shall not divulge, furnish, or make accessible to anyone or use in any way any confidential or secret knowledge, information, or intellectual
property of the Company which Founder has acquired or become acquainted with or will acquire or become acquainted with during the Term, whether developed by himself or by others concerning any trade
secrets, confidential or secret designs, processes, formulae, plans, devices or material (whether or not patented or patentable) directly or indirectly useful in any aspect of the business of the
Company, any development or research work of the Company, or any other confidential or proprietary information of the Company (the "Confidential Information"). Founder acknowledges that the
Confidential Information constitutes a unique and valuable asset of the Company and represents a substantial investment of time and expense by the Company, and that disclosure or other use of such
Confidential Information other than for the sole benefit of the Company would cause irreparable harm to the Company. Both during the Term, and for a period of three (3) years threreafter,
Founder shall refrain from any acts or omissions that would reduce the value of such Confidential Information to the Company. 

        6.     Non-competition Covenant. 

        6.1.  Covenant Not to Compete. Founder agrees that during the Term of this Agreement, and for a period of three
(3) years from and after the date of the termination or expiration of this Agreement, Founder shall not, directly or indirectly, engage in competition with the Company in the research,
commercial application, or development of internet content acceleration software or technology in any manner or capacity (e.g., as an advisor, principal, agent, consultant, independent

 
contractor, partner, officer, director, control person, stockholder, employee, member of any association, or otherwise). 

        6.2.  Geographic Extent of Covenant. The obligations of Founder under Section 6.1 of this Agreement shall apply to any
geographic area in which the Company: (a) has engaged in business during the Term of this Agreement through conducting research, production, promotional, sales, or marketing activity, or
otherwise, or (b) has otherwise established its goodwill, business reputation, or any customer or supplier relationships. 

        6.3.  Limitations on Covenant. The following shall not constitute a breach of this Section 6: 

        6.3.1.
Ownership by Founder, as a passive investment, of five percent (5%) or less of the outstanding shares of capital stock of any corporation listed on a national securities exchange
or publicly traded in the over-the-counter market; or 

        6.3.2.
Founder's engaging in software, telecommunications related, or other business as an employee, consultant, independent contractor, agent, partner, officer, director, control
person, stockholder, member of any association or otherwise, provided, however, that such engagement
does not compete, directly or indirectly, with the business of the Company conducted at the time of the termination or expiration of this Agreement. 

        6.4.  Indirect Competition. Founder further agrees that, during the Term of this Agreement, he will not, directly or
indirectly, assist or encourage any other person or entity in carrying out any activity that would be prohibited by the above provisions of this Section 6 if such action were to be carried out
by Founder, either directly or indirectly; and, in particular, Founder agrees that he will not, directly or indirectly, induce any employee of the Company to carry out any such activity. 

        6.5.  No Interference; Nonsolicitation. Consistent with the provisions of Section 6 of this Agreement, Founder shall
not take any action to interfere with the relationships between the Company and its customers. During the three (3) year period following the termination or expiration of this Agreement,
Founder shall not directly or indirectly through any person or entity (a) induce or attempt to induce any employee of the Company, or any subsidiary or affiliate to leave the employ of the
Company or such subsidiary or affiliate; (b) hire any person who was an employee of the Company or its subsidiaries or affiliates at any time during the six (6) month period prior to
such hiring, or (c) induce or attempt to induce any customer, supplier, licensee, or other business relation of the Company, or its subsidiaries and affiliates, to withdraw, curtail, or cease
doing business with the Company or its subsidiaries and affiliates. 

        7.     Intellectual Property. 

        7.1.  Disclosure and Assignment. Founder has disclosed, and will promptly disclose, in writing to the Company complete
information concerning each and every invention, discovery, improvement, device, design, apparatus, practice, process, method, or product, whether or not patentable, made developed, perfected,
devised, conceived or first reduced to practice by Founder, either solely or in collaboration with others, prior to and during the Term of this Agreement, whether or not during regular
working hours, relating either directly or indirectly to the business, products, practices, or techniques of the Company (the "Developments"). Founder, to the extent that he has the legal right
to do so, hereby acknowledges that any and all of said Developments are the property of the Company and hereby assigns and agrees to assign to the Company any and all of Founder's right, title, and
interest in and to any and all of such Developments. 

        7.2.  Future Developments. As to any future Developments made by Founder which relate to the business, products, or practices
of the Company that are first conceived or reduced to practice during the Term of this Agreement but which are claimed for any reason to belong to an entity or person other than the Company, Founder
will promptly disclose the same in writing to the

 
Company and shall not disclose the same to others if the Company, within twenty (20) days thereafter, shall claim ownership of such Developments under the terms of this Agreement. 

        7.3.  Further Assurance. Upon request and without further compensation therefor, but at no expense to Founder, and whether
during the Term of this Agreement or thereafter, Founder will do all lawful acts, including but not limited to, the execution of papers and lawful oaths, and the giving of testimony, that in the
opinion of the Company, its successors and assigns, may be necessary or desirable in obtaining, sustaining, reissuing, extending and enforcing United States and foreign patents, including, but not
limited to, design patents, on any and all such Developments, and for perfecting, affirming and recording the Company's complete ownership and title thereto, and to cooperate otherwise in all
proceedings and matters relating thereto. 

        7.4.  Records. Founder will keep complete, accurate, and authentic accounts, notes, data and records of all Developments in
the manner and form requested by the Company. Such accounts, notes, data, and records shall be the property of the Company and upon the Company's request, Founder will promptly surrender the same to
the Company, and all copies thereof, upon the conclusion of his employment. 

        8.     Termination. 

        8.1.  Grounds for Termination. The Company shall have no right to terminate Founder, or otherwise cease to employ Founder
under the terms and conditions of this Agreement, prior to the expiration of its Term, or any extension thereof, unless one or more of the following
occur: 

        8.1.1.
Founder dies; 

        8.1.2.
Founder becomes Disabled (as defined below), so that he cannot perform the essential functions of his position with reasonable accommodation, or 

        8.1.3.
The Company terminates this Agreement for Cause (as defined below) and notifies Founder in writing of such termination for Cause. 

        If
this Agreement is terminated pursuant to subsections 8.1.1, 8.1.2, or 8.1.3 such termination shall be effective immediately. Provided, however, if this Agreement is terminated
pursuant to subsection 8.1.3 of this Agreement, Founder shall be paid, as additional severance, in addition to any other amounts required pursuant to the terms of this Agreement, not less than
an amount equal to 30 days salary. Termination of Founder prior to the expiration of this Agreement for any reason other than pursuant to subsections 8.1.1, 8.1.2, or 8.1.3, shall be
deemed a termination "Without Cause." 

        8.2.  Cause. For the purposes of this Section 8 of the Agreement "Cause" shall be defined only as follows: 

        8.2.1.
Founder has breached the provisions of Sections 5, 6, or 7 of this Agreement in any material respect; or 

        8.2.2.
Founder has committed fraud, violated securities laws or rules as set out under Federal, State or International regulations, misappropriation, or embezzlement in connection with
the Company's business; 

        8.2.3.
Founder has voluntarily resigned, for a reason other than the Company's material breach of this Agreement, without just cause, or engaged in willful and material misconduct,
including willful and material failure to perform Founder's duties as an employee of the Company and has failed to cure such willful and material misconduct within thirty (30) days after
delivery of written notice of such willful and material misconduct;

 

        8.3.  Termination for Cause. In the event the Company terminates Founder's employment for Cause, pursuant to this
Section 8, Founder shall have twenty (20) days after receipt of such written notice of termination to object in writing to the Company's determination that there exists Cause for
termination. If Founder fails to object to any such determination of Cause in writing within such twenty (20) day period, he shall be deemed to have waived his right to object to the Company's
determination that Cause exists. 

        8.4.  Effect of Termination. Upon the lawful termination or expiration of this Agreement, Founder, in consideration of his
employment hereunder, shall remain bound by the provisions of this Agreement that by their terms survive the termination or expiration of this Agreement for the periods of time explicitly set forth
herein. 

        8.5.  Disability. As used in this Agreement, the term "Disability" or "Disabled" means any mental or physical condition which
renders Founder unable to perform the essential functions of his position, with or without reasonable accommodation, for a period in excess of one hundred twenty (120) consecutive days
or more than one hundred eighty (180) days during any three hundred sixty five (365) day period. 

        8.6.  Surrender of Property. Upon termination of his employment with the Company, Founder shall deliver promptly to the
Company all records, manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, computers, reports, data, tables, calculations, or copies thereof, which are the property of the
Company or which relate in any way to the business, products, practices, or techniques of the Company, and all other property, trade secrets, Confidential Information, Developments, or other
intellectual property of the Company, including but not limited to, all documents, files, computers, or data that in whole or in part contain any intellectual property, trade secrets, Confidential
Information, or Developments of the Company, which are in Founder's possession or control, and all copies thereof. 

        8.7.  Wage Continuation. 

        8.7.1.
If Founder's employment is terminated pursuant to subsection 8.1.1 of this Agreement (i.e., due to death), the Company shall continue to provide health and medical benefits to the
Founder's dependents (if such dependents were covered by the Company's health and medical benefits plan immediately prior to Founder's death and termination pursuant to subsection 8.1.1) for
the longer of (a) the remaining Term or (b) thirty six (36) months from the termination of Founder's employment pursuant to subsection 8.1.1. 

        8.7.2.
If Founder's employment is terminated by the Company pursuant to subsection 8.1.2 of this Agreement (i.e., due to Disability), the Company shall continue to provide health and
medical insurance benefits to Founder and his dependants under any benefit program of the Company through the later to occur of (a) the remaining Term, or (b) eighteen (18) months
from the termination of Founder's employment pursuant to subsection 8.1.2 of this Agreement. 

        8.7.3.
If this Agreement is terminated pursuant to subsection 8.1.3 (i.e., voluntary resignation; material failure to perform duties), all of Founder's right to compensation under
this Agreement, other than for services already rendered, shall immediately terminate except as otherwise provided by applicable law. 

        8.8.  Termination Without Cause. In the event Company terminates Founder Without Cause, Company shall: 

        8.8.1.
immediately pay to Founder the base salary due Founder for the unexpired Term of this Agreement plus an additional eighteen (18) months;

 

        8.8.2.
continue to provide health and medical insurance benefits to Founder under applicable benefit programs of the Company as if Founder had not been terminated through the earlier to
occur of (a) the unexpired Term of this Agreement plus eighteen (18) months, or (b) the enrollment of Founder, at Founder's election, into a separate health and medical insurance
benefit program; 

        8.8.3.
[Intentionally Omitted] 

        8.8.4.
the obligations of Founder to the Company under Sections 5, 6, and 7 shall cease to be applicable to Founder, and Founder shall no longer be bound by the obligations set
forth in such Sections of this Agreement; 

        8.8.5.
The express contractual remedies set forth above in this subsection 8.8 are in addition to all other remedies that may be available to Founder at law or in equity. 

        8.8.6.
In the event of a dispute arising in connection with the enforcement of the provisions of subsection 8.8 of this Agreement, in the event the Founder prevails in such a
dispute, the Company shall pay the reasonable attorney's fees and other costs incurred by Founder in connection with the resolution of such dispute, whether by litigation, arbitration, settlement or
otherwise. 

        9.     Resolution of Certain Claims—Injunctive Relief. Founder agrees and acknowledges that, in addition to, but not
to the exclusion of any other available remedy, the Company shall have the right to enforce the provisions of Sections 5, 6, 7, and 8.6 of this Agreement by applying for and obtaining temporary
or permanent restraining orders or injunctive relief from a court of competent jurisdiction without the necessity of filing a bond therefor. 

        10.   Miscellaneous. 

        10.1.   Capitalized Terms. Capitalized terms shall have the meanings set forth herein. 

        10.2.   Integration. This Agreement contains the entire agreement of the parties relating to the employment of
Founder by the Company and the terms and conditions thereof, and supersedes all prior agreements and understandings with respect to such matters; the parties hereto acknowledge and agree that they
have made no agreements, representations, or warranties relating to the subject matter of this Agreement that are not set forth herein. 

        10.3.   Severability. To the extent any provision of this Agreement shall be invalid or unenforceable, it shall
be considered deleted herefrom and the remainder of such provision and the remainder of this Agreement shall be unaffected and shall continue in full force and effect.  Provided, however, should the
duration, geographical extent of, or business activity constrained by any limitation or restriction set forth in this
Agreement be in excess of that which is valid and enforceable under applicable law, then such limitation or restriction shall be construed to cover only the maximum duration or extent, or those
activities which may be lawfully, validly, and enforceably limited or restricted by agreement. 

        10.4.   Governing Law; Venue. This Agreement will be interpreted, construed and enforced in all respects in
accordance with the laws of the State of Colorado without regard to its choice of law principles to the contrary. Each party hereby irrevocably consents to the jurisdiction and venue of the state and
federal courts located in the City and County of Denver, Colorado, and all applicable appellate courts, in connection with any action to interpret or enforce, or otherwise arising out of or relating
to, this Agreement. Further, neither party will bring or become party to any action to interpret or enforce, or arising out of or otherwise relating to, this Agreement, other than in the state and
federal courts located in the City and County of Denver, Colorado.

 

        10.5.   Amendments. No amendment or modification of this Agreement shall be deemed effective unless made in
writing and signed by the parties hereto. 

        10.6.   No Waiver. The waiver by any party to this Agreement of any breach, or the failure of any party to
enforce any of the terms and conditions of this Agreement at any time shall not in any way affect, limit, or waive that party's rights thereafter to enforce and/or compel strict compliance by the
breaching party with any term or condition of this Agreement. 

        10.7.   Assignment. This Agreement shall not be assignable, in whole or in part, by any of the parties hereto
without the written consent of the other party, except that the Company may assign its rights and obligations under this Agreement to any corporation, firm, or other business entity with or into which
the Company may merge or consolidate, or to which the Company may sell or transfer all or substantially all of its assets. 

        10.8.   Notices. Any notice required or permitted to be given by a party hereto shall be deemed validly given if
personally delivered, mailed via first class mail, postage prepaid, or sent via overnight courier that insures next day delivery, such as Federal Express, and addressed as follows: 

If
to Founder: 

John
P. Yeros

6471 E. Radcliff Ave.

Englewood, CO 80111 

If
to Company: 

Hyperspace
Communications, Inc.

8480 E. Orchard Rd., Suite 6600

Greenwood Village, Colorado 80111

Attn: Board of Directors 

A
party hereto may from time-to-time notify the other party, in writing, of a new address to which notices to that party shall thereafter be given. Any notice given in
accordance with this Section 10.8, shall be deemed effective, whether or not received, (a) when personally delivered, (b) three (3) days after deposit with the U.S. postal
service if mailed, and (c) one (1) day after deposit with an overnight courier for next day delivery. 

        10.9.   Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original and all of which, when taken together, shall constitute one entire instrument and agreement. 

        10.10.   Captions and Headings. The captions and Section headings used in the Agreement are for
convenience and reference only, and shall not affect the construction or interpretation of this Agreement or any of the provisions hereof. 

[Remainder
of page intentionally left blank.] 

 

        IN
WITNESS WHEREOF, Founder and the Company have executed this Agreement effective as of the day and year first set forth above. 

	

 	
 	

"Founder"
	

 	
 	

 John P. Yeros
	

 	
 	

"Company"
	

 	
 	

HyperSpace Communications, Inc., a Colorado corporation
	

 	
 	

By:	
 	

	 	 	Name:	 	 
	 	 	Title:	 	 

 

Exhibit A  

HyperSpace Communications, Inc.—Chairman's Role:  

        On the broadest level, the Chairman of the Board of Directors provides overall leadership to both internal and
external constituents of the Company. In this revised capacity, the Chairman will have primary responsibility for the oversight of all central corporate compliance functions and accountabilities. In
addition, he shall have a significant role in executing the following duties and responsibilities on a daily basis: 

	•
	Maintaining
state-of-the-art corporate governance policies and standards, including clear and disciplined adherence to all relevant
Sarbanes/Oxley guidelines and securities laws and regulations.

	•
	Developing
a clear public relations strategy for the Company, including any/all primary interfaces with external agencies, legal and governmental resources.

	•
	Taking
primary responsibility for all shareholder communications, including joint development with CEO of relevant and periodic investor communications to keep HCI
stakeholders fully informed of business matters.

	•
	Managing,
coaching and supervising the various activities and strategies designed by the President & CEO, including relevant personnel matters and decisions.

	•
	Interfacing
with corporate Board members and relevant Advisory Board members to enhance the overall effectiveness of a coordinated team of HCI insiders and outsiders.

	•
	Taking
primary responsibility for all investor fund-raising and financing alternatives, including direct interfacing with key individual investors, investment
banking resources and the Company's business banking professionals.

	•
	Participating,
as appropriate and relevant, in internal discussions/matters that revolve around strategy development, business partner development and corporate policies.

	•
	Participating,
at the behest and direction of the President & CEO, in managing and facilitating any/all critical business relationships with customers, suppliers and
business partners.

	•
	Serving
as a sounding board to the President & CEO in any/all matters deemed relevant and appropriate by the President & CEO. 

QuickLinks

AMENDED & RESTATED FOUNDER'S EMPLOYMENT AGREEMENT

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