Document:

Exhibit 10.38

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED,
QUALIFIED, APPROVED OR DISAPPROVED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER SUCH ACT OR LAWS AND NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER FEDERAL OR STATE REGULATORY
AUTHORITY HAS PASSED ON OR ENDORSED THE MERITS OF THESE SECURITIES.

                                                                   WARRANT NO. 4

                                     WARRANT

                       TO PURCHASE SHARES OF COMMON STOCK

                                       OF

                                  BLUEFLY, INC.

         THIS IS TO CERTIFY THAT SFM DOMESTIC INVESTMENTS LLC, or its registered
assigns (the "Holder"), is the owner of the right to subscribe for and to
purchase from BLUEFLY, INC., a Delaware corporation (the "Company"), ONE
THOUSAND NINE HUNDRED TWO (1,902) (the "Number Issuable"), fully paid, duly
authorized and non-assessable shares of Common Stock at a price per share equal
to the Current Market Price as of March 21, 2002, which is ONE DOLLAR AND
SIXTY-SIX CENTS ($1.66), (the "Exercise Price"), at any time, in whole or in
part, on or after March 30, 2002 (the "Effective Date") through 5:00 PM New York
City time, on March 30, 2007 (the "Expiration Date") all on the terms and
subject to the conditions hereinafter set forth (the "Warrants").

         The Number Issuable and the Exercise Price are subject to further
adjustment from time to time pursuant to the provisions of Section 2 of this
Warrant Certificate.

         Capitalized terms used herein but not otherwise defined shall have the
meanings given to them in Section 12 hereof.

         Section 1. Exercise of Warrants.

            (a) Subject to the last paragraph of this Section 1, the Warrants
evidenced hereby may be exercised, in whole or in part, by the Holder hereof at
any time

<PAGE>

or from time to time, on or after the Effective Date and on or prior to the
Expiration Date upon delivery to the Company at the principal executive office
of the Company in the United States of America, of (A) this Warrant Certificate,
(B) a written notice stating that such Holder elects to exercise the Warrants
evidenced hereby in accordance with the provisions of this Section 1 and
specifying the number of Warrants being exercised and the name or names in which
the Holder wishes the certificate or certificates for shares of Common Stock to
be issued and (C) payment of the Exercise Price for such Warrants, which shall
be payable by any one or any combination of the following: (i) cash; (ii)
certified or official bank check payable to the order of the Company; (iii) by
the surrender (which surrender shall be evidenced by cancellation of the number
of Warrants represented by any Warrant Certificate presented in connection with
a Cashless Exercise (as defined below)) of a Warrant or Warrants (represented by
one or more relevant Warrant Certificates), and without the payment of the
Exercise Price in cash, in return for the delivery to the surrendering Holder of
such number of shares of Common Stock equal to the number of shares of the
Common Stock for which such Warrant is exercisable as of the date of exercise
(if the Exercise Price were being paid in cash or certified or official bank
check) reduced by that number of shares of Common Stock equal to the quotient
obtained by dividing (x) the aggregate Exercise Price (assuming no Cashless
Exercise) to be paid by (y) the Market Price of one Share of Common Stock on the
Business Day which immediately precedes the day of exercise of the Warrant; or
(iv) by the delivery of shares of the Common Stock having a value (as defined by
the next sentence) equal to the aggregate Exercise Price to be paid, that are
either held by the Holder or are acquired in connection with such exercise, and
without payment of the Exercise Price in cash. Any share of Common Stock
delivered as payment for the Exercise Price in connection with an In-Kind
Exercise (as defined below) shall be deemed to have a value equal to the Market
Price of one Share of Common Stock on the Business Day that immediately precedes
the day of exercise of the Warrants. An exercise of a Warrant in accordance with
clause (iii) is herein referred to as a "Cashless Exercise" and an exercise of a
Warrant in accordance with clause (iv) is herein referred to as an "In-Kind
Exercise." The documentation and consideration, if any, delivered in accordance
with subsections (A), (B) and (C) are collectively referred to herein as the
"Warrant Exercise Documentation."

            (b) As promptly as practicable, and in any event within five (5)
Business Days after receipt of the Warrant Exercise Documentation, the Company
shall deliver or cause to be delivered (A) certificates representing the number
of validly issued, fully paid and nonassessable shares of Common Stock specified
in the Warrant Exercise Documentation, (B) if applicable, cash in lieu of any
fraction of a share, as hereinafter provided, and (C) if less than the full
number of Warrants evidenced hereby are being exercised or used in a Cashless
Exercise, a new Warrant Certificate or Certificates, of like tenor, for the
number of Warrants evidenced by this Warrant Certificate, less the number of
Warrants then being exercised and/or used in a Cashless Exercise. Such exercise
shall be deemed to have been made at the close of business on the date of
delivery of the Warrant Exercise Documentation so that the Person entitled to
receive shares of Common Stock upon such exercise shall be treated for all
purposes as having become the record holder of such shares of Common Stock at
such time.

                                       2
<PAGE>

            (c) The Company shall pay all expenses incurred by the Company in
connection with and taxes and other governmental charges (other than income
taxes of the Holder) that may be imposed in respect of, the issue or delivery of
any shares of Common Stock issuable upon the exercise of the Warrants evidenced
hereby. The Company shall not be required, however, to pay any tax or other
charge imposed in connection with any transfer involved in the issue of any
certificate for shares of Common Stock, as the case may be, in any name other
than that of the registered holder of the Warrant evidenced hereby.

            (d) In connection with the exercise of any Warrants evidenced
hereby, no fractions of shares of Common Stock shall be issued, but in lieu
thereof the Company shall pay a cash adjustment in respect of such fractional
interest in an amount equal to such fractional interest multiplied by the Market
Price for one Share of Common Stock on the Business Day which immediately
precedes the day of exercise. If more than one (1) such Warrant shall be
exercised by the holder thereof at the same time, the number of full shares of
Common Stock issuable on such exercise shall be computed on the basis of the
total number of Warrants so exercised.

Section 2.        Certain Adjustments.

            (a) The number of shares of Common Stock purchasable upon the
exercise of this Warrant and the Exercise Price shall be subject to adjustment
as follows:

               (i) Stock Dividends, Subdivision, Combination or Reclassification
of Common Stock. If at any time after the date of the issuance of this Warrant
the Company shall (i) pay a dividend on Common Stock in shares of its capital
stock, (ii) combine its outstanding shares of Common Stock into a smaller number
of shares, (iii) subdivide its outstanding shares of Common Stock as the case
may be, or (iv) issue by reclassification of its shares of Common Stock any
shares of capital stock of the Company, then, on the record date for such
dividend or the effective date of such subdivision or split-up, combination or
reclassification, as the case may be, the number and kind of shares to be
delivered upon exercise of this Warrant will be adjusted so that the Holder will
be entitled to receive the number and kind of shares of capital stock that such
Holder would have owned or been entitled to receive upon or by reason of such
event had this Warrant been exercised immediately prior thereto, and the
Exercise Price will be adjusted as provided below in paragraph 2(a)(v).

               (ii) Extraordinary Distributions. If at any time after the date
of issuance of this Warrant, the Company shall distribute to all holders of
Common Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing or surviving
corporation and Common Stock is not changed or exchanged) cash, evidences of
indebtedness, securities or other assets (excluding (A) ordinary course cash
dividends to the extent such dividends do not exceed the Company's retained
earnings and (B) dividends payable in shares of capital stock for which
adjustment is made under Section 2(a)(i), or rights, options or warrants to
subscribe for or purchase securities of the Company), then in each such case the
number of shares of Common Stock to be delivered to such Holder upon exercise of
this Warrant

                                       3
<PAGE>

shall be increased so that the Holder thereafter shall be entitled to receive
the number of shares of Common Stock determined by multiplying the number of
shares such Holder would have been entitled to receive immediately before such
record date by a fraction, the denominator of which shall be the Exercise Price
on such record date minus the then fair market value (as reasonably determined
by the Board of Directors of the Company in good faith) of the portion of the
cash, evidences of indebtedness, securities or other assets so distributed or of
such rights or warrants applicable to one share of the Common Stock (provided
that such denominator shall in no event be less than $.01) and the numerator of
which shall be the Exercise Price.

               (iii) Reorganization, etc. If at any time after the date of
issuance of this Warrant any consolidation of the Company with or merger of the
Company with or into any other Person (other than a merger or consolidation in
which the Company is the surviving or continuing corporation and which does not
result in any reclassification of, or change (other than a change in par value
or from par value to no par value or from no par value to par value, or as a
result of a subdivision or combination) in, outstanding shares of either Common
Stock) or any sale, lease or other transfer of all or substantially all of the
assets of the Company to any other person (each, a "Reorganization Event"),
shall be effected in such a way that the holders of the Common Stock shall be
entitled to receive cash, stock, other securities or assets (whether such cash,
stock, other securities or assets are issued or distributed by the Company or
another Person) with respect to or in exchange for the Common Stock, then, upon
exercise of this Warrant, the Holder shall have the right to receive the kind
and amount of cash, stock, other securities or assets receivable upon such
Reorganization Event by a holder of the number of shares of the Common Stock
that such holder would have been entitled to receive upon exercise of this
Warrant had this Warrant been exercised immediately before such Reorganization
Event, subject to adjustments that shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Section 2(a). The Company
shall not enter into any of the transactions referred to in this Section
2(a)(iii) unless effective provision shall be made so as to give effect to the
provisions set forth in this Section 2(a)(iii).

               (iv) Carryover. Notwithstanding any other provision of this
Section 2(a), no adjustment shall be made to the number of shares of either
Common Stock to be delivered to the Holder (or to the Exercise Price) if such
adjustment represents less than .05% of the number of shares to be so delivered,
but any lesser adjustment shall be carried forward and shall be made at the time
and together with the next subsequent adjustment that together with any
adjustments so carried forward shall amount to .05% or more of the number of
shares to be so delivered.

               (v) Exercise Price Adjustment. Whenever the Number Issuable upon
the exercise of the Warrant is adjusted as provided pursuant to this Section
2(a), the Exercise Price per share payable upon the exercise of this Warrant
shall be adjusted by multiplying such Exercise Price immediately prior to such
adjustment by a fraction, of which the numerator shall be the Number Issuable
upon the exercise of the Warrant immediately prior to such adjustment, and of
which the denominator shall be the Number Issuable immediately thereafter;
provided, however, that the Exercise Price for

                                       4
<PAGE>

each Share of the Common Stock shall in no event be less than the par value of a
share of such Common Stock.

            (b) Notice of Adjustment. Whenever the Number Issuable or the
Exercise Price is adjusted as herein provided, the Company shall promptly mail
by first class mail, postage prepaid, to the Holder, notice of such adjustment
or adjustments setting forth the Number Issuable and the Exercise Price after
such adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was made.

         Section 3. No Redemption. The Company shall not have any right to
redeem any of the Warrants evidenced hereby.

         Section 4. Notice of Certain Events. In case at any time or from time
to time (i) the Company shall declare any dividend or any other distribution to
all holders of Common Stock, (ii) the Company shall authorize the granting to
the holders of Common Stock of rights or warrants to subscribe for or purchase
any additional shares of stock of any class or any other right, (iii) the
Company shall authorize the issuance or sale of any other shares or rights which
would result in an adjustment to the Number Issuable pursuant to Section
2(a)(i), (ii) or (iii), (iv) there shall be any capital reorganization or
reclassification of Common Stock of the Company or consolidation or merger of
the Company with or into another Person, or any sale or other disposition of all
or substantially all the assets of the Company, or (v) there shall be a
voluntary or involuntary dissolution, liquidation or winding up of the Company,
then, in any one or more of such cases the Company shall mail to the Holder at
such Holder's address as it appears on the transfer books of the Company, as
promptly as practicable but in any event at least 10 days prior to the date on
which the transactions contemplated in Section 2(a)(i), (ii) or (iii) a notice
stating (a) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights or warrants or, if a record is not to be taken,
the date as of which the holders of record of either Common Stock to be entitled
to such dividend, distribution, rights or warrants are to be determined, or (b)
the date on which such reclassification, consolidation, merger, sale,
conveyance, dissolution, liquidation or winding up is expected to become
effective. Such notice also shall specify the date as of which it is expected
that the holders of record of the Common Stock shall be entitled to exchange the
Common Stock for shares of stock or other securities or property or cash
deliverable upon such reorganization, reclassification, consolidation, merger,
sale, conveyance, dissolution, liquidation or winding up.

         Section 5. Certain Covenants. The Company covenants and agrees that all
shares of Capital Stock of the Company which may be issued upon the exercise of
the Warrants evidenced hereby will be duly authorized, validly issued and fully
paid and nonassessable. The Company shall at all times reserve and keep
available for issuance upon the exercise of the Warrants, such number of its
authorized but unissued shares of Common Stock as will from time to time be
sufficient to permit the exercise of all outstanding Warrants, and shall take
all action required to increase the authorized number of shares of Common Stock
if at any time there shall be insufficient authorized but

                                       5
<PAGE>

unissued shares of Common Stock to permit such reservation or to permit the
exercise of all outstanding Warrants.

         Section 6. Registered Holder. The persons in whose names this Warrant
Certificate is registered shall be deemed the owner hereof and of the Warrants
evidenced hereby for all purposes. The registered Holder of this Warrant
Certificate, in their capacity as such, shall not be entitled to any rights
whatsoever as a stockholder of the Company, except as herein provided.

         Section 7. Transfer of Warrants. Any transfer of the rights represented
by this Warrant Certificate shall be effected by the surrender of this Warrant
Certificate, along with the form of assignment attached hereto, properly
completed and executed by the registered Holder hereof, at the principal
executive office of the Company in the United States of America, together with
an appropriate investment letter and opinion of counsel, if deemed reasonably
necessary by counsel to the Company to assure compliance with applicable
securities laws. Thereupon, the Company shall issue in the name or names
specified by the registered Holder hereof and, in the event of a partial
transfer, in the name of the registered Holder hereof, a new Warrant Certificate
or Certificates evidencing the right to purchase such number of shares of Common
Stock as shall be equal to the number of shares of Common Stock then purchasable
hereunder.

         Section 8. Denominations. The Company covenants that it will, at its
expense, promptly upon surrender of this Warrant Certificate at the principal
executive office of the Company in the United States of America, execute and
deliver to the registered Holder hereof a new Warrant Certificate or
Certificates in denominations specified by such Holder for an aggregate number
of Warrants equal to the number of Warrants evidenced by this Warrant
Certificate.

         Section 9. Replacement of Warrants. Upon receipt of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant Certificate and, in the case of loss, theft or destruction, upon
delivery of an indemnity reasonably satisfactory to the Company (in the case of
an insurance company or other institutional investor, its own unsecured
indemnity agreement shall be deemed to be reasonably satisfactory), or, in the
case of mutilation, upon surrender and cancellation thereof, the Company will
issue a new Warrant Certificate of like tenor for a number of Warrants equal to
the number of Warrants evidenced by this Warrant Certificate.

         Section 10. Governing Law. THIS WARRANT CERTIFICATE SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED
BY, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE.

         Section 11. Rights Inure to Registered Holder. The Warrants evidenced
by this Warrant Certificate will inure to the benefit of and be binding upon the
registered Holder thereof and the Company and their respective successors and
permitted assigns. Nothing in this Warrant Certificate shall be construed to
give to any Person other than the

                                       6
<PAGE>

Company and the registered Holder thereof any legal or equitable right, remedy
or claim under this Warrant Certificate, and this Warrant Certificate shall be
for the sole and exclusive benefit of the Company and such registered Holder.
Nothing in this Warrant Certificate shall be construed to give the registered
Holder hereof any rights as a Holder of shares of either Common Stock until such
time, if any, as the Warrants evidenced by this Warrant Certificate are
exercised in accordance with the provisions hereof.

         Section 12. Definitions. For the purposes of this Warrant Certificate,
the following terms shall have the meanings indicated below:

         "Business Day" means any day other than a Saturday, Sunday or other day
on which commercial banks in the City of New York, New York are authorized or
required by law or executive order to close.

         "Capital Stock" of any Person means any and all shares, interests,
participations or other equivalents (however designated) of such Person's
capital stock (or equivalent ownership interests in a Person not a corporation)
whether now outstanding or hereafter issued, including, without limitation, any
rights, warrants or options to purchase such Person's capital stock.

         "Common Stock" shall mean the common stock of the Company.

         "Common Stock Equivalent" means any security or obligation which is by
its terms convertible into or exercisable for shares of Common Stock, including,
without limitation, any option, warrant or other subscription or purchase right
with respect to Common Stock.

         "Current Market Price" per share shall mean, as of the date of
determination, (a) the average of the daily Market Prices under clause (a), (b)
or (c) of the definition thereof, as applicable, of the Common Stock during the
immediately preceding twenty (20) trading days ending on such date, and (b) if
the Common Stock is not then listed or admitted to trading on any national
securities exchange or quoted in the over-the-counter market, then the Market
Price under clause (d) of the definition thereof on such date.

         "Market Price" shall mean, per share of Common Stock, on any date
specified herein: (a) if the Common Stock is listed on a national securities
exchange, the Closing Price per share of Common Stock on such date published in
The Wall Street Journal (National Edition) or, if no such closing price on such
date is published in The Wall Street Journal (National Edition), the average of
the closing bid and asked prices on such date, as officially reported on the
principal national securities exchange on which the Common Stock is then listed
or admitted to trading; or (b) if the Common Stock is not then listed or
admitted to trading on any national securities exchange, but is designated as a
national market system security, the last trading price of the Common Stock on
such date; or (c) if there shall have been no trading on such date or if the
Common Stock is not so designated, the average of the reported closing bid and
asked price of the Common Stock, on such date as shown by NASDAQ and reported by
any

                                       7
<PAGE>

member firm of the NYSE selected by the Company; or (d) if none of (a), (b) or
(c) is applicable, a market price per share determined in good faith by the
Board of Directors of the Company, which shall be deemed to be "Fair Market
Value" unless holders of at least 15% of Common Stock issued or issuable upon
exercise of the Warrants request that the Company obtain an opinion of a
nationally recognized investment banking firm chosen by the Company (who shall
bear the expense) and reasonably acceptable to such requesting holders of the
Warrants, in which event the Fair Market Value shall be as determined by such
investment banking firm.

         "NASDAQ" means the National Market System of the National Association
of Securities Dealers, Inc. Automated Quotations System.

         "NYSE" shall mean the New York Stock Exchange, Inc.

         "Person" shall mean any individual, corporation, limited liability
company, partnership, trust, incorporated or unincorporated association, joint
venture, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

         Section 13. Notices. All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, courier
services or personal delivery, (a) if to the Holder of a Warrant, at such
Holder's last known address appearing on the books of the Company; and (b) if to
the Company, at its principal executive office in the United States, or such
other address as shall have been furnished to the party given or making such
notice, demand or other communication. All such notices and communications shall
be deemed to have been duly given: (i) when delivered by hand, if personally
delivered; (ii) when delivered to a courier if delivered by commercial overnight
courier service; and (iii) five (5) Business Days after being deposited in the
mail, postage prepaid, if mailed.

                                       8
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed as of this 22nd day of March, 2002.

                                          BLUEFLY, INC.

                                          By:  /s/ E. Kenneth Seiff
                                               --------------------
                                               Name: E. Kenneth Seiff
                                               Title: Chief Executive Officer

                                       9
<PAGE>

                            [Form of Assignment Form]

                  [To be executed upon assignment of Warrants]

         The undersigned hereby assigns and transfers this Warrant Certificate
to ___________________ whose Social Security Number or Tax ID Number is
_________________ and whose record address is
_____________________________________, and irrevocably appoints ________________
as agent to transfer this security on the books of the Company. Such agent may
substitute another to act for such agent.

                                            Signature:

                                            -------------------------------
                                            Signature Guarantee:

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

Date: ___________________________

                                       10GROUP MANAGEMENT CORP.
                          2002 OMNIBUS SECURITIES PLAN
                          ----------------------------

<PAGE>

                                TABLE OF CONTENTS
                                -----------------
                                                                            Page
                                                                            ----
SECTION  1.  PURPOSE.                                                         1

SECTION  2.  DEFINITIONS.                                                     1

(a)     "Award"                                                               1
(b)     "Board  of  Directors"                                                1
(c)     "Change  in  Control"                                                 1
(d)     "Code"                                                                1
(e)     "Committee"                                                           1
(f)     "Common-Law  Employee"                                                1
(g)     "Company"                                                             2
(h)     "Employee"                                                            2
(i)     "Exchange  Act"                                                       2
(j)     "Exercise  Price"                                                     2
(k)     "Fair  Market  Value"                                                 2
(l)     "Incentive  Stock  Option"  or  "ISO"                                 2
(m)     "Nonstatutory  Option"  or  "NSO"                                     2
(n)     "Offeree"                                                             2
(o)     "Option"                                                              3
(p)     "Optionee"                                                            3
(q)     "Outside  Director"                                                   3
(r)     "Participant"                                                         3
(s)     "Plan"                                                                3
(t)     "Plan  Year"                                                          3
(u)     "Purchase  Price"                                                     3
(v)     "Restricted  Share"                                                   3
(w)     "Service"                                                             3
(x)     "Share"                                                               3
(y)     "Stock"                                                               3
(z)     "Stock  Award  Agreement"                                             3
(aa)    "Stock  Option  Agreement"                                            3
(bb)    "Stock  Purchase  Agreement"                                          3
(cc)    "Subsidiary"                                                          3
(dd)    "Total  and  Permanent  Disability"                                   3
(ee)    "W-2  Payroll"                                                        3

SECTION  3.  ADMINISTRATION.                                                  4

(a)     Committee  Membership                                                 4
(b)     Committee  Procedures                                                 4
(c)     Committee  Responsibilities                                           4
(d)     Committee  Liability                                                  4
(e)     Financial  Reports                                                    4

SECTION  4.  ELIGIBILITY.                                                     4

(a)     General  Rule                                                         4
(b)     Ten-Percent  Shareholders                                             4
(c)     Attribution  Rules                                                    5
(d)     Outstanding  Stock                                                    5

<PAGE>

SECTION  5.  STOCK  SUBJECT  TO  PLAN.                                        5

(a)     Basic  Limitation                                                     5
(b)     Additional  Shares                                                    5

SECTION  6.  TERMS  AND  CONDITIONS  OF  AWARDS  OR  SALES.                   5

(a)     Stock  Purchase  Agreement                                            5
(b)     Duration  of  Offers                                                  6
(c)     Purchase  Price                                                       6
(d)     Payment  for  Shares                                                  6
(e)     Exercise  of  Awards  on  Termination  of  Service                    6

SECTION  7.  ADDITIONAL  TERMS  AND  CONDITIONS  OF  RESTRICTED               6

(a)     Form  and  Amount  of  Award                                          6
(b)     Exercisability                                                        7
(c)     Effect  of  Change  in  Control                                       7
(d)     Voting  Rights                                                        7

SECTION  8.  TERMS  AND  CONDITIONS  OF  OPTIONS.                             7

(a)     Stock  Option  Agreement                                              7
(b)     Number  of  Shares                                                    7
(c)     Exercise  Price                                                       7
(d)     Exercisability                                                        7
(e)     Effect  of  Change  in  Control                                       7
(f)     Term                                                                  8
(g)     Exercise  of  Options  on  Termination  of  Service                   8
(h)     Payment  of  Option  Shares                                           8
(i)     No  Rights  as  a  Shareholder                                        8
(j)     Modification,  Extension  and  Assumption  of  Options                8

SECTION  9.  ADJUSTMENT  OF  SHARES.                                          9

(a)     General                                                               9
(b)     Reorganizations                                                       9
(c)     Reservation  of  Rights                                               9

SECTION  10.  WITHHOLDING  TAXES.                                             9

(a)     General                                                               9
(b)     Share  Withholding                                                    9
(c)     Cashless  Exercise/Pledge                                             9
(d)     Other  Forms  of  Payment                                             9

SECTION  11.  ASSIGNMENT  OR  TRANSFER  OF  AWARDS.                          10

(a)     General                                                              10
(b)     Trusts                                                               10

SECTION  12.  LEGAL  REQUIREMENTS.                                           10

SECTION  13.  NO  EMPLOYMENT  RIGHTS.                                        10

SECTION  14.  DURATION  AND  AMENDMENTS.                                     10

(a)     Term  of  the  Plan                                                  10
(b)     Right  to  Amend  or  Terminate  the  Plan                           10
(c)     Effect  of  Amendment  or  Termination                               11

<PAGE>

                              GROUP MANAGEMENT CORP.
                              ----------------------
                           2002 OMNIBUS SECURITES PLAN
                           ---------------------------

SECTION  1.PURPOSE.
------------------

     The purpose of the Group Management Corp. 2002 Securities Plan (the "Plan")
is  to  offer  selected  employees,  directors and consultants an opportunity to
acquire  a  proprietary  interest  in the success of the Company, or to increase
such interest, to encourage such selected persons to remain in the employ of the
Company, and to attract new employees with outstanding qualifications.  The Plan
seeks  to achieve this purpose by providing for Awards in the form of Restricted
Shares and Options (which may constitute Incentive Stock Options or Nonstatutory
Stock  Options)  as  well as the direct award or sale of Shares of the Company's
Common  Stock.  Awards  may  be granted under this Plan in reliance upon federal
and  state  securities  law  exemptions.

SECTION  2.DEFINITIONS.
----------------------

     (a)     "Award"
              -----
shall  mean  any  award of an Option, Restricted Share or other right under the
Plan.

     (b)     "Board  of  Directors"
              --------------------
shall  mean  the Board of Directors of the Company, as constituted from time to
time.

     (c)     "Change  in  Control"
              -------------------
shall  mean:

     (i)  The  consummation  of  a  merger, consolidation, sale of the Company's
stock,  or  other reorganization of the Company (other than a reincorporation of
the  Company),  if  after  giving  effect to such merger, consolidation or other
reorganization of the Company, the stockholders of the Company immediately prior
to  such  merger,  consolidation  or  other  reorganization  do  not represent a
majority interest of the holders of voting securities (on a fully diluted basis)
with  the ordinary voting power to elect directors of the surviving or resulting
entity  after  such  merger,  consolidation  or  other  reorganization;  or

     (ii) The sale of all or substantially all of the assets of the Company to a
third  party  who  is  not  an  affiliate  of  the  Company.

     (iii)  The  term Change in Control shall not include: (a) a transaction the
sole  purpose of which is to change the state of the Company's incorporation, or
(b)  the  Company's  initial  public  offering.

     (d)  "Code"
           ----
shall  mean  the  Internal  Revenue  Code  of  1986,  as  amended.

     (e)  "Committee"
           ---------
shall  mean  a  committee  of  the  Board  of  Directors which is authorized to
administer  the  Plan  under  Section  3.

     (f)     "Common-Law  Employee"
              --------------------
shall  mean an individual paid from W-2 Payroll of the Company or a Subsidiary.
If,  during  any  period,  the  Company  (or  Subsidiary, as applicable) has not
treated  an  individual  as  a Common-Law Employee and, for that reason, has not
paid such individual in a manner which results in the issuance of a Form W-2 and
withheld  taxes with respect to him or her, then that individual shall not be an
eligible  Employee  for  that  period,  even  if  any  person,  court  of law or
government  agency  determines,  retroactively, that that individual is or was a
Common-Law  Employee  during  all  or  any  portion  of  that  period.

<PAGE>

     (g)     "Company"
              -------
shall  mean  Group  Management  Corp.,  a  Delaware  corporation.

     (h)     "Employee"
              --------
shall mean (i) any individual who is a Common-Law Employee of the Company or of
a  Subsidiary,  (ii)  a  member  of  the  Board of Directors, including (without
limitation)  an  Outside  Director,  or an affiliate of a member of the Board of
Directors,  (iii) a member of the board of directors of a Subsidiary, or (iv) an
independent  contractor  who  performs services for the Company or a Subsidiary.
Service  as  a  member  of  the  Board  of  Directors,  a member of the board of
directors  of  a  Subsidiary  or  an  independent contractor shall be considered
employment  for  all  purposes of the Plan except the second sentence of Section
4(a).

     (i)     "Exchange  Act"
              -------------
means  the  Securities  and  Exchange  Act  of  1934,  as  amended.

     (j)     "Exercise  Price"
              ---------------
shall  mean the amount for which one Share may be purchased upon exercise of an
Option,  as specified by the Committee in the applicable Stock Option Agreement.

     (k)     "Fair  Market  Value"
              -------------------
means  the  market  price  of  Shares,  determined by the Committee as follows:

     (i)      If the Shares were traded over-the-counter on the date in question
but  were  not  traded  on the Nasdaq Stock Market or the Nasdaq National Market
System,  then  the Fair Market Value shall be equal to the mean between the last
reported  representative  bid  and  asked  prices  quoted  for  such date by the
principal automated inter-dealer quotation system on which the Shares are quoted
or,  if  the  Shares  are  not  quoted  on any such system, by the "Pink Sheets"
published  by  the  National  Quotation  Bureau,  Inc.;

     (ii)     If the Shares were traded over-the-counter on the date in question
and were traded on the Nasdaq Stock Market or the Nasdaq National Market System,
then  the  Fair Market Value shall be equal to the last-transaction price quoted
for  such  date  by  the  Nasdaq  Stock  Market  or  the Nasdaq National Market;

     (iii)    If the Shares  were  traded  on  a  stock  exchange on the date in
question,  then  the  Fair  Market  Value  shall  be  equal to the closing price
reported  by  the  applicable  composite  transactions report for such date; and

     (iv)     If none of the  foregoing  provisions is applicable, then the Fair
Market Value shall be determined by the Committee in good faith on such basis as
it  deems  appropriate.

     In all cases, the determination of Fair Market Value by the Committee shall
be  conclusive  and  binding  on  all  persons.

     (l)     "Incentive  Stock  Option"  or  "ISO"
              ------------------------------------
shall mean an employee incentive stock option described in Code section 422(b).

     (m)     "Nonstatutory  Option"  or  "NSO"
              --------------------------------
shall  mean  an  employee  stock  option  that  is  not  an  ISO.

     (n)     "Offeree"
              -------
shall mean an individual to whom the Committee has offered the right to acquire
Shares  under  the  Plan  (other  than  upon  exercise  of  an  Option).

<PAGE>

     (o)     "Option"
              ------
shall  mean  an  Incentive Stock Option or Nonstatutory Option granted under the
Plan  and  entitling  the  holder  to  purchase  Shares.

     (p)     "Optionee"
              --------
shall  mean  an  individual  or  estate  who  holds  an  Option.

     (q)     "Outside  Director"
              -----------------
shall  mean  a  member  of  the  Board  who is not a Common-Law Employee of the
Company  or  a  Subsidiary.

     (r)     "Participant"
              -----------
shall  mean  an  individual  or  estate  who  holds  an  Award.

     (s)     "Plan"
              ----
shall  mean  this  2002  Omnibus  Securities  Plan  of  Group  Management,  Inc.

     (t)     "Plan  Year"
              ----------
shall  mean any twelve (12) month period (or shorter period during the final
year  of this Plan) commencing March 1 during the term of this Plan.

     (u)     "Purchase  Price"
              ---------------
shall mean the consideration for which one Share may be acquired under the Plan
(other  than  upon  exercise  of  an  Option),  as  specified  by the Committee.

     (v)     "Restricted  Share"
              -----------------
shall  mean  a  Share  sold  or  granted  to  an  eligible  Employee  which  is
nontransferable and subject to substantial risk of forfeiture until restrictions
lapse.

     (w)     "Service"
              -------
shall  mean  service  as  an  Employee.

     (x)     "Share"
              -----
shall  mean  one  share  of Stock, as adjusted in accordance with Section 9 (if
applicable).

     (y)     "Stock"
              -----
shall  mean  the  common  stock  of  the  Company.

     (z)     "Stock  Award  Agreement"
              -----------------------
shall  mean the agreement between the Company and the recipient of a Restricted
Share  which  contains the terms, conditions and restrictions pertaining to such
Restricted  Share.

     (aa)     "Stock  Option  Agreement"
               ------------------------
shall mean the agreement between the Company and an Optionee which contains the
terms,  conditions  and  restrictions  pertaining  to  his  or  her  Option.

     (bb)     "Stock  Purchase  Agreement"
               --------------------------
shall mean the agreement between the Company and an Offeree who acquires Shares
under  the Plan which contains the terms, conditions and restrictions pertaining
to  the  acquisition  of  such  Shares.

     (cc)     "Subsidiary"
               ----------
means  any  corporation  (other  than  the  Company)  in  an  unbroken chain of
corporations  beginning with the Company, if each of the corporations other than
the  last corporation in the unbroken chain owns stock possessing 50% or more of
the  total  combined  voting  power  of all classes of stock in one of the other
corporations  in  such  chain.  A  corporation  that  attains  the  status  of a
Subsidiary  on  a  date  after  the  adoption  of the Plan shall be considered a
Subsidiary  commencing  as  of  such  date.

     (dd)     "Total  and  Permanent  Disability"
               ---------------------------------
means that the Optionee is unable to engage in any substantial gainful activity
by  reason  of  any  medically  determinable  physical  or  mental  impairment.

     (ee)     "W-2  Payroll"
               ------------
means whatever mechanism or procedure that the Company or a Subsidiary utilizes
to  pay  any  individual  which  results  in  the  issuance  of  Form W-2 to the
individual.  "W-2  Payroll"  does  not  include any mechanism or procedure which
results  in  the  issuance  of  any form other than a Form W-2 to an individual,
including,  but  not  limited  to,  any  Form  1099  which  may  be issued to an
independent contractor, an agency employee or a consultant.  Whether a mechanism
or  procedure  qualifies  as a "W-2 Payroll" shall be determined in the absolute
discretion  of  the  Company  (or Subsidiary, as applicable), and the Company or
Subsidiary  determination  shall  be  conclusive  and  binding  on  all persons.

<PAGE>

SECTION  3.ADMINISTRATION.
-------------------------

     (a)     Committee  Membership
             ---------------------
The  Plan  shall be administered by the Compensation Committee (the "Committee")
appointed  by  the Company's Board of Directors and comprised of at least two or
more  Outside  Directors  (although  Committee  functions  may  be  delegated to
officers  to  the extent the awards relate to persons who are not subject to the
reporting  requirements  of Section 16 of the Exchange Act). If no Committee has
been  appointed,  the  entire  Board  shall  constitute  the  Committee.

     (b)     Committee  Procedures
             ---------------------
The  Board  of  Directors shall designate one of the members of the Committee as
chairperson.  The  Committee  may  hold  meetings at such times and places as it
shall  determine.  The  acts  of  a majority of the Committee members present at
meetings  at which a quorum exists, or acts reduced to or approved in writing by
all  Committee  members,  shall  be  valid  acts  of  the  Committee.

     (c)     Committee  Responsibilities
             ---------------------------
The  Committee has and may exercise such power and authority as may be necessary
or  appropriate for the Committee to carry out its functions as described in the
Plan.  The  Committee  has  authority  in  its  discretion to determine eligible
Employees to whom, and the time or times at which, Awards may be granted and the
number of Shares subject to each Award. Subject to the express provisions of the
respective  Award agreements (which need not be identical) and to make all other
determinations necessary or advisable for Plan administration, the Committee has
authority to prescribe, amend, and rescind rules and regulations relating to the
Plan.  All interpretations, determinations, and actions by the Committee will be
final,  conclusive,  and  binding  upon  all  persons.

     (d)     Committee  Liability
             --------------------
No  member  of  the  Board  or  the  Committee  will be liable for any action or
determination  made  in  good faith by the Committee with respect to the Plan or
any  Award  made  under  the  Plan.

     (e)     Financial  Reports
             ------------------
To  the extent required by applicable law, and not less often than annually, the
Company  shall furnish to Offerees, Optionees and Shareholders who have received
Stock  under  the  Plan  its  financial  statements  including  a  balance sheet
regarding  the  Company's  financial condition and results of operations, unless
such  Offerees,  Optionees  or  Shareholders  have  duties with the Company that
assure them access to equivalent information. Such financial statements need not
be  audited.

SECTION  4.ELIGIBILITY.
----------------------

     (a)     General  Rule
             -------------
Only  Employees  shall  be  eligible  for  designation  as  Participants  by the
Committee.  In  addition,  only  individuals  who  are  employed  as  Common-Law
Employees  by  the  Company  or  a Subsidiary shall be eligible for the grant of
ISOs.

     (b)     Ten-Percent  Shareholders
             -------------------------
An  Employee  who  owns more than ten percent (10%) of the total combined voting
power  of  all  classes  of  outstanding  stock  of  the  Company  or any of its
Subsidiaries  shall  not  be  eligible for designation as an Offeree or Optionee
unless  (i)  the  Exercise Price for an ISO (and a NSO to the extent required by
applicable  law)  is  at least one hundred ten percent (110%) of the Fair Market
Value  of  a Share on the date of grant, (ii) if required by applicable law, the
Purchase  Price  of  Shares  is  at least one hundred percent (100%) of the Fair
Market  Value  of a Share on the date of grant, and (iii) in the case of an ISO,
such ISO by its terms is not exercisable after the expiration of five years from
the  date  of  grant.

<PAGE>

     (c)     Attribution  Rules
             ------------------
For  purposes  of  Subsection  (b)  above,  in  determining  stock ownership, an
Employee  shall  be deemed to own the stock owned, directly or indirectly, by or
for  his  brothers,  sisters,  spouse,  ancestors  and lineal descendants. Stock
owned,  directly  or indirectly, by or for a corporation, partnership, estate or
trust  shall  be  deemed to be owned proportionately by or for its shareholders,
partners  or  beneficiaries.  Stock with respect to which such Employee holds an
Option  shall  not  be  counted.

     (d)     Outstanding  Stock
             ------------------
For  purposes  of  Subsection  (b)  above, "outstanding stock" shall include all
stock  actually issued and outstanding immediately after the grant. "Outstanding
Stock"  shall  not  include  shares  authorized  for  issuance under outstanding
Options  held  by  the  Employee  or  by  any  other  person.

SECTION  5.STOCK  SUBJECT  TO  PLAN.
-----------------------------------

     (a)     Basic  Limitation
             -----------------
Shares  offered  under the Plan shall be authorized but unissued Shares. Subject
to  Sections 5(b) and 9 of the Plan, the aggregate number of Shares which may be
issued  or transferred as common stock pursuant to an Award under the Plan shall
not exceed the following amounts of the shares of Authorized Common Stock of the
Company:

Plan Year                                    Available Shares
---------                                    ----------------

March 18, 2002 through February 28, 2003     450,000
----------------------------------------     -------
Each  subsequent  Plan  Year  beginning
March  1, 2003                               10% of outstanding stock on
--------------                               February 28 of the year preceding
                                             each  such  Plan  Year
                                             -----------------------------------

     In  any  event,  the  number of Shares which are subject to Awards or other
rights  outstanding  at  any  time under the Plan shall not exceed the number of
Shares  which  then  remain available for issuance under the Plan.  The Company,
during  the  term  of  the  Plan,  shall at all times reserve and keep available
sufficient  Shares  to  satisfy  the  requirements  of  the  Plan.

     (b)     Additional  Shares
             ------------------
In  the  event that any outstanding Option or other right for any reason expires
or  is canceled or otherwise terminated, the Shares allocable to the unexercised
portion  of such Option or other right shall again be available for the purposes
of  the  Plan. If a Restricted Share is forfeited before any dividends have been
paid  with  respect  to  such Restricted Share, then such Restricted Share shall
again  become  available  for  award  under  the  Plan.

SECTION  6.TERMS  AND  CONDITIONS  OF  AWARDS  OR  SALES.
--------------------------------------------------------

     (a)     Stock  Purchase  Agreement
             --------------------------
Each  award  or  sale  of  Shares under the Plan (other than upon exercise of an
Option) shall be evidenced by a Stock Purchase Agreement between the Offeree and
the  Company.  Such  award  or sale shall be subject to all applicable terms and
conditions  of  the  Plan  and  may be subject to any other terms and conditions
which  are  not  inconsistent  with  the  Plan  and  which  the  Committee deems
appropriate  for  inclusion in a Stock Purchase Agreement. The provisions of the
various  Stock  Purchase  Agreements  entered  into  under  the Plan need not be
identical.

<PAGE>

     (b)     Duration  of  Offers
             --------------------
Any  right  to  acquire  Shares  under  the  Plan  (other  than an Option) shall
automatically  expire  if  not exercised by the Offeree within 30 days after the
grant  of  such  right  was  communicated  to  the  Offeree  by  the  Committee.

     (c)     Purchase  Price
             ---------------
Unless otherwise permitted by applicable law, the Purchase Price of Shares to be
offered  under  the Plan shall not be less than eighty-five percent (85%) of the
Fair  Market  Value of a Share on the date of grant (100% for 10% shareholders),
except as otherwise provided in Section 4(b). Subject to the preceding sentence,
the  Purchase Price shall be determined by the Committee in its sole discretion.
The Purchase Price shall be payable in a form described in Subsection (d) below.

     (d)     Payment  for  Shares
             --------------------
The  entire  Purchase  Price of Shares issued under the Plan shall be payable in
lawful  money  of  the United States of America at the time when such Shares are
purchased,  except  as  provided  below:

     (i)     Surrender of Stock.
             ------------------
To the extent that a Stock Option Agreement so provides, payment may be made all
or  in  part  with  Shares  which  have  already  been  owned by the Optionee or
Optionee's  representative  for  any  time period specified by the Committee and
which  are  surrendered  to  the  Company in good form for transfer. Such shares
shall  be  valued at their Fair Market Value on the date when the new Shares are
purchased  under  the  Plan.

     (ii)    Promissory Notes.
             ----------------
To  the  extent  that  a  Stock  Option Agreement or Stock Purchase Agreement so
provides,  payment  may  be  made all or in part with a full recourse promissory
note  executed by the Optionee or Offeree. The interest rate and other terms and
conditions  of such note shall be determined by the Committee. The Committee may
require that the Optionee or Offeree pledge his or her Shares to the Company for
the  purpose  of  securing the payment of such note. In no event shall the stock
certificate(s)  representing  such Shares be released to the Optionee or Offeree
until  such  note  is  paid  in  full.

     (iii)   Cashless  Exercise.
             ------------------
To  the extent that a Stock Option Agreement so provides and a public market for
the  Shares  exists,  payment  may be made all or in part by delivery (on a form
prescribed  by the Committee) of an irrevocable direction to a securities broker
to sell shares and to deliver all or part of the sale proceeds to the Company in
payment  of  the  aggregate  Exercise  Price.

     (iv)    Other  Forms  of  Payment.
             -------------------------
To  the extent provided in the Stock OptionAgreement, payment may be made in any
other  form  that  is  consistent  with  applicable laws, regulations and rules.

     (e)     Exercise  of  Awards  on  Termination  of  Service
             --------------------------------------------------
Each  Stock  Award  Agreement  shall set forth the extent to which the recipient
shall  have  the  right  to  exercise  the  Award  following  termination of the
recipient's Service with the Company and its Subsidiaries. Such provisions shall
be determined in the sole discretion of the Committee, need not be uniform among
all  the  Awards issued pursuant to the Plan, and may reflect distinctions based
on  the  reasons  for  termination  of  employment.

SECTION  7.ADDITIONAL  TERMS  AND  CONDITIONS  OF  RESTRICTED  SHARES.
----------------------------------------------------------------------

     (a)     Form  and  Amount  of  Award
             ----------------------------
Each  Stock  Award Agreement shall specify the number of Shares that are subject
to the Award. Restricted Shares may be awarded in combination with NSOs and such
an  Award  may provide that the Restricted Shares will be forfeited in the event
that  the  related  NSOs  are  exercised.

<PAGE>

     (b)     Exercisability
             --------------
Each  Stock  Award  Agreement shall specify the conditions upon which Restricted
Shares  shall  become vested, in full or in installments. To the extent required
by  applicable  law,  each  Stock Award shall become exercisable no less rapidly
than  the rate of 20% per year for each of the first five years from the date of
grant.  Subject to the preceding sentence, the exercisability of any Stock Award
shall  be  determined  by  the  Committee  in  its  sole  discretion.

     (c)     Effect  of  Change  in  Control
             -------------------------------
The  Committee  may determine at the time of making an Award or thereafter, that
such  Award  shall become fully vested, in whole or in part, in the event that a
Change  in  Control  occurs  with  respect  to  the  Company.

     (d)     Voting  Rights
             --------------
Holders  of Restricted Shares awarded under the Plan shall have the same voting,
dividend  and  other  rights  as the Company's other stockholders. A Stock Award
Agreement,  however,  may  require  that the holders invested any cash dividends
received  in  additional  Restricted  Shares.  Such additional Restricted Shares
shall  be  subject  to  the  same  conditions and restrictions as the Award with
respect  to  which  the  dividends  were paid. Such additional Restricted Shares
shall  not  reduce  the  number  of  Shares  available  under  Section  5.

SECTION  8.TERMS  AND  CONDITIONS  OF  OPTIONS.
----------------------------------------------

     (a)     Stock  Option  Agreement
             ------------------------
Each  grant  of  an  Option  under the Plan shall be evidenced by a Stock Option
Agreement  between the Optionee and the Company. Such Option shall be subject to
all  applicable terms and conditions of the Plan and may be subject to any other
terms  and  conditions  which  are  not inconsistent with the Plan and which the
Committee  deems  appropriate  for  inclusion  in  a Stock Option Agreement. The
provisions  of  the  various Stock Option Agreements entered into under the Plan
need  not  be  identical.

     (b)     Number  of  Shares
             ------------------
Each  Stock Option Agreement shall specify the number of Shares that are subject
to  the Option and shall provide for the adjustment of such number in accordance
with Section 9. The Stock Option Agreement shall also specify whether the Option
is  an  ISO  or  a  Nonstatutory  Option.

     (c)     Exercise  Price
             ---------------
Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price
of  an  ISO shall not be less than one hundred percent (100%) of the Fair Market
Value  of  a Share on the date of grant, except as otherwise provided in Section
4(b).  To the extent required by applicable law and except as otherwise provided
in  Section  4(b), the Exercise Price of a Nonstatutory Option shall not be less
than  eighty-five  percent (85%) of the Fair Market Value of a Share on the date
of  grant.  Subject to the preceding two sentences, the Exercise Price under any
Option shall be determined by the Committee in its sole discretion. The Exercise
Price  shall  be  payable  in  a  form  described  in  Subsection  (h)  below.

     (d)     Exercisability
             --------------
Each  Stock  Option Agreement shall specify the date when all or any installment
of  the  Option  is  to become exercisable. To the extent required by applicable
law, an Option shall become exercisable no less rapidly than the rate of 20% per
year  for  each  of  the first five years from the date of grant. Subject to the
preceding  sentence, the exercisability of any Option shall be determined by the
Committee  in  its  sole  discretion.

     (e)     Effect  of  Change  in  Control
             -------------------------------
The  Committee  may  determine, at the time of granting an Option or thereafter,
that such Option shall become fully exercisable as to all Shares subject to such
Option in the event that a Change in Control occurs with respect to the Company.

<PAGE>

     (f)     Term
             ----
The  Stock Option Agreement shall specify the term of the Option. The term shall
not  exceed  ten  (10)  years  from the date of grant (or five (5) years for ten
percent  (10%)  shareholders  as  provided  in  Section  4(b)).  Subject  to the
preceding sentence, the Committee at its sole discretion shall determine when an
Option  is  to  expire.

     (g)     Exercise  of  Options  on  Termination  of  Service
             ---------------------------------------------------
Each  Option  shall  set  forth  the extent to which the Optionee shall have the
right  to  exercise  the  Option following termination of the Optionee's Service
with  the  Company  and its Subsidiaries. Such provisions shall be determined in
the  sole  discretion  of  the  Committee, need not be uniform among all Options
issued  pursuant  to the Plan, and may reflect distinctions based on the reasons
for  termination  of  employment.  Notwithstanding  the foregoing, to the extent
required  by  applicable  law, each Option shall provide that the Optionee shall
have  the right to exercise the vested portion of any Option held at termination
for  at  least 60 days following termination of Service with the Company for any
reason, and that the Optionee shall have the right to exercise the Option for at
least  six  months  if  the  Optionee's  Service  terminates  due  to  death  or
Disability.

     (h)     Payment  of  Option  Shares
             ---------------------------
The  entire  Exercise  Price of Shares issued under the Plan shall be payable in
lawful  money  of  the United States of America at the time when such Shares are
purchased,  except  as  provided  below:

     (i)     Surrender of Stock.
             ------------------
To the extent that a Stock Option Agreement so provides, payment may be made all
or  in  part  with  Shares  which  have  already  been  owned by the Optionee or
Optionee's  representative  for  any  time period specified by the Committee and
which  are  surrendered  to  the  Company in good form for transfer. Such shares
shall  be  valued at their Fair Market Value on the date when the new Shares are
purchased  under  the  Plan.

     (ii)    Promissory Notes.
             ----------------
To  the  extent  that  a  Stock  Option Agreement or Stock Purchase Agreement so
provides,  payment  may  be  made all or in part with a full recourse promissory
note  executed by the Optionee or Offeree. The interest rate and other terms and
conditions  of such note shall be determined by the Committee. The Committee may
require that the Optionee or Offeree pledge his or her Shares to the Company for
the  purpose  of  securing the payment of such note. In no event shall the stock
certificate(s)  representing  such Shares be released to the Optionee or Offeree
until  such  note  is  paid  in  full.

     (iii)   Cashless  Exercise.
             ------------------
To  the extent that a Stock Option Agreement so provides and a public market for
the  Shares  exists,  payment  may be made all or in part by delivery (on a form
prescribed  by the Committee) of an irrevocable direction to a securities broker
to sell shares and to deliver all or part of the sale proceeds to the Company in
payment  of  the  aggregate  Exercise  Price.

     (iv)    Other  Forms  of  Payment.
             -------------------------
To the extent provided in the Stock Option Agreement, payment may be made in any
other  form  that  is  consistent  with  applicable laws, regulations and rules.

     (i)     Modification,  Extension  and  Assumption  of  Options
             ------------------------------------------------------
Within  the  limitations of the Plan, the Committee may modify, extend or assume
outstanding  Options  or  may  accept  the  cancellation  of outstanding Options
(whether  granted  by  the Company or another issuer) in return for the grant of
new  Options  for  the same or a different number of Shares and at the same or a
different  Exercise  Price  or  for  other  consideration.

<PAGE>

SECTION  9.ADJUSTMENT  OF  SHARES.
---------------------------------
     (a)     General
             -------
In  the  event  of  a  subdivision  of the outstanding Stock, a declaration of a
dividend  payable  in  Shares, a combination or consolidation of the outstanding
Stock  into a lesser number of Shares, a recapitalization, a reclassification or
a  similar occurrence, the Committee shall make appropriate adjustments, subject
to  the  limitations set forth in Section 9(c), in one or more of (i) the number
of Shares available for future Awards under Section 5, (ii) the number of Shares
covered  by  each outstanding Option or Purchase Agreement or (iii) the Exercise
Price  or  Purchase  Price  under  each  outstanding  Option  or  Stock Purchase
Agreement.

     (b)     Reorganizations
             ---------------
In  the  event  that  the  Company  is  a  party  to a merger or reorganization,
outstanding  Options  shall  be  subject  to  the  agreement  of  merger  or
reorganization, provided however, that the limitations set forth in Section 9(c)
shall  apply.

     (c)     Reservation  of  Rights
             -----------------------
Except  as  provided  in this Section 9, an Optionee or an Offeree shall have no
rights  by  reason of (i) any subdivision or consolidation of shares of stock of
any  class,  (ii)  the  payment  of  any dividend or (iii) any other increase or
decrease in the number of shares of stock of any class. Any issue by the Company
of  shares of stock of any class, or securities convertible into shares of stock
of  any  class,  shall  not affect, and no adjustment by reason thereof shall be
made with respect to, the number, Exercise Price or Purchase Agreement of Shares
subject to an Option or Stock Purchase Agreement. The grant of an Award pursuant
to  the  Plan  shall  not affect in any way the right or power of the Company to
make  adjustments,  reclassifications, reorganizations or changes of its capital
or  business  structure, to merge or consolidate or to dissolve, liquidate, sell
or  transfer  all  or  any  part  of  its  business  or  assets.

SECTION  10.WITHHOLDING  TAXES.
------------------------------

     (a)     General
             -------
To  the  extent  required  by applicable federal, state, local or foreign law, a
Participant  or his or her successor shall make arrangements satisfactory to the
Committee  for the satisfaction of any withholding tax obligations that arise in
connection  with the Plan. The Company shall not be required to issue any Shares
or  make  any  cash payment under the Plan until such obligations are satisfied.

     (b)     Share  Withholding
             ------------------
The  Committee  may  permit  a  Participant to satisfy all or part of his or her
withholding  or  income  tax obligations by having the Company withhold all or a
portion  of  any  Shares  that  otherwise  would  be  issued to him or her or by
surrendering  all or a portion of any Shares that he or she previously acquired.
Such  Shares  shall  be valued at their Fair Market Value on the date when taxes
otherwise would be withheld in cash. Any payment of taxes by assigning Shares to
the  Company may be subject to restrictions, including any restrictions required
by  rules  of  any  federal  or  state  regulatory  body  or  other  authority.

     (c)     Cashless  Exercise/Pledge
             -------------------------
The Committee may provide that if Company Shares are publicly traded at the time
of  exercise,  arrangements  may  be  made  to  meet  the Optionee's withholding
obligation  by  cashless  exercise  or  pledge.

     (d)     Other  Forms  of  Payment
             -------------------------
The  Committee  may  permit  such  other  means  of  tax withholding as it deems
appropriate.

<PAGE>

SECTION  11 .ASSIGNMENT  OR  TRANSFER  OF  AWARDS.
-------------------------------------------------

     (a)     General
             -------
An  Award  granted  under the Plan shall not be anticipated, assigned, attached,
garnished,  optioned,  transferred  or  made  subject to any creditor's process,
whether voluntarily, involuntarily or by operation of law, except as approved by
the Committee. Notwithstanding the foregoing, ISOs may not be transferable. Also
notwithstanding  the  foregoing,  Offerees  and Optionees may not transfer their
rights  hereunder except by will, beneficiary designation or the laws of descent
and  distribution.

     (b)     Trusts
             ------
Neither  this  Section  11  nor any other provision of the Plan shall preclude a
Participant  from transferring or assigning Restricted Shares to (a) the trustee
of  a trust that is revocable by such Participant alone, both at the time of the
transfer  or  assignment and at all times thereafter prior to such Participant's
death,  or  (b)  the  trustee  of  any other trust to the extent approved by the
Committee  in  writing.  A transfer or assignment of Restricted Shares from such
trustee to any other person than such Participant shall be permitted only to the
extent  approved  in  advance by the Committee in writing, and Restricted Shares
held by such trustee shall be subject to all the conditions and restrictions set
forth  in  the  Plan  and  in  the  applicable Stock Award Agreement, as if such
trustee  were  a  party  to  such  Agreement.

SECTION  12.LEGAL  REQUIREMENTS.
-------------------------------

     Shares  shall not be issued under the Plan unless the issuance and delivery
of  such Shares complies with (or is exempt from) all applicable requirements of
law,  including (without limitation) the Securities Act of 1933, as amended, the
rules  and  regulations  promulgated  thereunder,  state  securities  laws  and
regulations,  and  the  regulations of any stock exchange on which the Company's
securities  may  then  be  listed.

SECTION  13.NO  EMPLOYMENT  RIGHTS.
----------------------------------

     No  provision  of the Plan, nor any right or Option granted under the Plan,
shall  be construed to give any person any right to become, to be treated as, or
to  remain  an  Employee.  The Company and its Subsidiaries reserve the right to
terminate  any  person's  Service  at  any  time  and  for  any  reason.

SECTION  14.DURATION  AND  AMENDMENTS.
-------------------------------------

     (a)     Term  of  the  Plan
             -------------------
The  Plan,  as  set  forth  herein,  shall  become  effective on the date of its
adoption  by  the  Board  of Directors, subject to the approval of the Company's
shareholders. In the event that the shareholders fail to approve the Plan within
twelve  (12)  months  after  its  adoption by the Board of Directors, any grants
already  made  shall  be  null  and void, and no additional grants shall be made
after such date. The Plan shall terminate automatically ten (10) years after its
adoption  by  the  Board  of Directors and may be terminated on any earlier date
pursuant  to  Subsection  (b)  below.

     (b)     Right  to  Amend  or  Terminate  the  Plan
             ------------------------------------------
The  Board  of  Directors  may amend the Plan at any time and from time to time.
Rights and obligations under any right or Option granted before amendment of the
Plan  shall not be materially altered, or impaired adversely, by such amendment,
except  with  consent  of the person to whom the right or Option was granted. An
amendment  of  the  Plan  shall  be  subject  to  the  approval of the Company's
shareholders  only  to  the  extent  required by applicable laws, regulations or
rules  including  the  rules  of  any  applicable  exchange.

<PAGE>

     (c)     Effect  of  Amendment  or  Termination
             --------------------------------------
No  Shares shall be issued or sold under the Plan after the termination thereof,
except  upon  exercise  of  an  Option  granted  prior  to such termination. The
termination  of  the Plan, or any amendment thereof, shall not affect any Shares
previously  issued  or  any  Option  previously  granted  under  the  Plan.

<PAGE>

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