Document:

THIS AGREEMENT is made the     02   day of February 2004

PARTIES:

(1)	Dr Boris Gorbunov of 20 Kings Park, Canterbury, Kent CT1
1QH ("Dr Gorbunov"),

(2)	Atlantic Security Inc (incorporated in the Florida) whose
registrar address is (30 St Giles Street, Oxford, OX 1 3LE).

RECITALS:

(A)	Dr Gorbunov is the holder and beneficial owner of the
intellectual property related to the Bio Detection technologies
and part the holder and beneficial owner of the intellectual
property related to the Molecular Detection technologies.

(B)	Dr Gorbunov desires to grant to the Optionholder a call option
in respect of his intellectual property rights and shares in
Company A and Company B that will be or have already been formed
for these technologies.

NOW IT IS HEREBY AGREED as follows:

1.	DEFINITIONS AND INTERPRETATION

In this Agreement unless there is something in the subject or
context inconsistent therewith the following expressions have
the following meanings:

The Articles                   means the articles of association
                               from time to time of Company A and
                               Company B;

Bio- Detection technologies    means the Intellectual Property
                               Rights in relation to bio-detection only

The Company                    means the company which is purchasing
                               the option from company A and company B

the Company(ies)               Means Company A and Company B or a
                               new company set up for the purpose of
                               conveying the IPR as referred to in
                               this document.

Company A                      means a new company registered in
                               England  whose company number is
                               [4645054] and created to incorporate
                               the Bio- Detection technologies for
                               the purposes of this Agreement

<PAGE>

Company B                      means a new company registered in
                               England whose company number is
                               [4645054 ] and created to incorporate
                               the Molecular- Detection technologies
                               for the purposes of this Agreement

Completion                     means the performance of both parties
                               obligations under Clause 3.2;

Encumbrance                    means any charge, lien, equity, third
                               party right, option, right of pre-
                               emption or any other encumbrance,
                               priority or security interest of
                               whatsoever nature other than any such
                               arising under the Articles;

Exercise Date                  means the date of service of an Option Notice;

Intellectual Property Rights   means patents, copyright, trade
                               marks, design rights, registered
                               designs, utility models, plant
                               variety rights, database rights,
                               rights in trade or business names,
                               semiconductor topography rights,
                               domain names, moral rights, rights in
                               performances, rights protecting
                               confidential information and know
                               how, rights protecting goodwill and
                               reputation and all similar or
                               analogous rights or forms of
                               protection anywhere in the world, and
                               all applications and rights to
                               register any of those rights;

"Bonus Price" milestone        The first positive "in-field" test of
                               a demonstration model of
                               Nucleation/Condensation transportable
                               detector or the first positive test
                               of Bio-product for the detection

The Milestone                  A transportable Nucleation/Condensation detector
                               with a performance capability higher than
                               any other competing products
                               currently available on the market
                               (known as InatSniffer)

Molecular Detection
technologies                   means the Intellectual Property
                               Rights in relation to
                               Nucleation/Condensation technology
                               only (for the detection of dangerous
                               compounds in gaseous media known as InatSniffer)

<PAGE>

Option                         means the option granted by Dr
                               Gorbunov to the Optionholder by this
                               Agreement pursuant to Clause 2.2;

Option Notice                  means a notice exercising the Option
                               given pursuant to Clause 2.3;

Option Period                  means the period commencing on the
                               date of this Agreement and expiring
                               at 5p.m. on the date falling 10 month
                               from the date of this Agreement (both
                               dates inclusive) only extendable by
                               the written agreement of Dr Gorbunov;

Option Shares                  Means, separately, the total amount
                               of ordinary shares in the capital of
                               Company A and Company B held by Dr
                               Gorbunov at the date hereof and all
                               securities in  Company A and Company
                               B which are hereafter derived from
                               such shares or which are hereafter
                               distributed by Company A and Company
                               B in respect of such shares or any
                               securities previously so derived or
                               distributed and (in each case) of
                               which Dr Gorbunov is the beneficial
                               owner, or to which he is entitled,
                               from time to time together (if
                               applicable) with any ordinary shares
                               in the capital of Company A and
                               Company B acquired by Dr Gorbunov by
                               transfer from the other members of
                               Company A and Company B;

Reorganisation                 means any variation in the issued
                               share capital of the Company A and
                               Company B whether by  way of
                               capitalisation issue, rights issue,
                               sub-division, consolidation,
                               reduction, purchase or otherwise or
                               any alteration of the rights attached
                               thereto;

Sale                           A sale is the purchase of a single
                               unit of a product to a customer & the
                               payment being made according to
                               Federal accounting standard AcSEC
                               SOP98-4, SOP97-1, SOP97-2and SOP99-1

Technologies                   The "Bio- Detection" and "Molecular
                               Detection" technologies;

<PAGE>

Transfer Price                 means the price to be paid (subject
                               to the satisfaction of certain
                               conditions as set out in Clause 4)
                               for the Option Shares which shall be
                               made up as follows:
                               (i)      2,000,000 pounds sterling
                               ("Initial Price")
                               (ii)     2,000,000 pounds sterling
                               ("Bonus Price")
                               (iii)    1,000,000 pounds sterling
                               ("Total Control Price")
                               (iv)     2,000,000 pounds sterling
                               ("Bonus payment after the first sale of the
                               molecular product")
                               (v)      2,000,000 pounds sterling
                               ("Bonus payment after the first sale of either
                               the bio product, or the second
                               sale of the
                               Nucleation/Condensation product
                               whichever event occurs first

Transfer Terms                 means that all the Option Shares
                               shall be sold and purchased free from
                               any Encumbrance and together with all
                               rights attaching thereto as at the
                               Exercise Date (other than rights to
                               receive dividends which shall have
                               been paid prior thereto) or at any
                               time thereafter and that the
                               consideration for the Option Shares
                               shall be the Transfer Price.

1.2	Words importing persons shall be construed as importing a
corporate body and vice-versa

1.3	Where a party comprises more than one person the obligations and
liabilities of that party under this Agreement shall be joint
and several obligations and liabilities of those persons.

1.4	The clause headings do not form part of this Agreement and shall
not be taken in account in its construction or interpretation

1.5	Any reference to a clause or a paragraph or a schedule is to one
in this Agreement so numbered.

2.	CALL OPTION

2.1	In consideration of the Optionholder paying to Dr Gorbunov the
sum of 1 pound sterling (receipt of which is hereby acknowledged), Dr Gorbunov
hereby grants to the Optionholder the option referred to in
Clause 2.2.

2.2	The Optionholder shall have the option to purchase all (but not
some only) of the Option Shares, on the exercise of which and in
accordance with this Agreement, Dr Gorbunov will become bound to
sell and the Optionholder will become bound to complete the
purchase of all of the Option Shares on the Transfer Terms.

<PAGE>

2.3	The Option must be exercised by notice in writing to Dr Gorbunov
served only during the Option Period, failing which this
Agreement  will lapse and cease to have any further effect. An
Option Notice, once given, may not be withdrawn except with the
written consent of Dr Gorbunov.

2.4	If the Option is exercised, then the remaining provisions of
this Clause 2 and Clauses 3 and 5 will apply.

2.5	Neither Dr Gorbunov nor the Optionholder shall be obliged to
complete the sale and purchase of the Option Shares unless the
sale and purchase of all the Option Shares is completed
simultaneously, but completion of the sale and purchase of some
of the Option Shares will not affect the rights of Dr Gorbunov
or the Optionholder with respect to the other.

2.6	All voting and other rights attached to the Option Shares in
Company A and Company B shall accrue to the Optionholder on the
Completion Date and following that time Dr Gorbunov shall
exercise all voting and other rights at the direction of the
Optionholder if clause 5.7 is not in force. See Appendix A

3	COMPLETION

3.1	Completion of the sale and purchase of the Option Shares
for Company A and Company B shall take place at the
registered office of the Company (or at such other place
as may be agreed) at 12 noon on the day 14 days after the
Exercise Date, provided that if such day is not a business
day then Completion shall take place at 12 noon on the
first business day thereafter.

3.2	In relation to Company A and Company B On Completion, Dr
Gorbunov shall :

3.2.1	transfer or procure the transfer of the Option Shares
to the Optionholder;

3.2.2	deliver all relevant share certificates and other
documents of title in respect of the Option Shares to
the Optionholder;

3.2.3	account to the Optionholder for all benefits received
in respect of the Option Shares between the Exercise
Date and the date of Completion (both dates
inclusive);

3.2.4	deliver to the Optionholder any form of consent or
waiver required from Dr Gorbunov or any other member
of the Company to enable the transfer of the Option
Shares to be registered in accordance with the
Articles;

<PAGE>

3.2.5	use his best endeavours to procure registration of
the transfer of the Option Shares forthwith (subject
to the transfer being stamped with any necessary
stamp duty at the expense of the Optionholder); and

3.2.6	do such things and execute such documents as shall be
necessary or as the Optionholder may reasonably
request to give effect to the sale of the Option
Shares on the Transfer Terms.

3.3  In relation to Company A and Company B, the
Optionholder, shall on achieving the Bonus Price milestone,
pay the Bonus Price 2,000,000 pounds sterling to Dr. Gorbunov in return
for Dr. Gorbunov effecting Completion of the Option Shares
in relation to Company A and Company B.

4	POST-SIGNING OBLIGATIONS OF DOCTOR GORBUNOV AND Optionholder

4.1	As soon as practicable after the execution of this
Agreement, Dr Gorbunuv shall procure that

4.1.1	all the Bio- Detection technologies owned by him are
assigned to, vested in and beneficially held by the
Company A; and,

4.1.2	all the Nucleation/Condensation technologies so far
as they owned only by him are assigned to, vested in
and beneficially held by the Company B.  In the case
of any part ownership in the Nucleation/Condensation
technologies Dr. Gorbunov will use his best
endeavours to procure that the Molecular- Detection
technologies are assigned to, vested in and
beneficially held by the Company A.

4.2	Dr Gorbunov undertakes that at the Exercise Date all his
Intellectual Property Rights in the Technologies shall be
owned by, vested in and beneficially held by the Companies
will be free from all encumbrances and any other third
party rights in accordance with clause 4.1 above .

4.3	As soon as practicable after the execution of this
Agreement, Dr Gorbunuv undertakes that he will use best
endeavours for and on behalf of the Optionholder to enter
into negotiations with all of the other members of the
Companies A & B for the purpose of entering into an
binding agreement to acquire all of their shares in these
Companies.

<PAGE>

4.4	The Optionholder will after completion use its resources
in the best interest of all the Companies to commercially
exploit the IPR & Technologies concerned. The Optionholder
will not withhold reasonable resources to facilitate the
commercialisation of the acquired IPR as long as this will
not contravene US law.

5	PAYMENT OF THE TRANSFER PRICE

Subject to Dr Gorbunov complying with his obligations under
Clause 3, and on completion the Optionholder shall pay the
Transfer Price in accordance with the following provisions:

5.1	The Transfer Price shall be payable in cash provided that
the Optionholder may, at its option, satisfy up to a
maximum of fifty per cent (50%) of the Transfer Price by
the allotment and issue to Dr Gorbunov of such number of
fully tradable shares in the Optionholder as are of equal
value (determined at the Exercise Date) to that part of
the Transfer Price so satisfied as long as this action
will not contravene US securities exchange commission
rules at the time of the transaction.

5.2	The Optionholder shall pay the Initial Price on Completion
or (if later) the date falling 10 months after the
commencement of Dr Gorbunov's employment by the Company
and subject to Dr Gorbunov remaining an employee on that
date.

5.3	If Dr Gorbunov shall have entered into a contract of
employment with the Optionholder in the form reasonably
acceptable to the Optionholder which requires that Dr
Gorbunov serve the Optionholder as an employee for a
period of not less than 10 months from the date of this
Agreement and meets the agreed "Bonus Price" milestone,
the Optionholder shall pay the Bonus Price on Completion
or (if later) the date falling 10 months after the
commencement of Dr Gorbunov's employment by the Company
and subject to Dr Gorbunov remaining an employee on that
date.

5.4	If on Completion, the Option Shares represent the entire
issued share capital of Companies A and Company B, the
Optionholder shall immediately pay to Dr Gorbunov the
Total Control Price on Completion or (if later) the date
falling 10 months after the commencement of Dr Gorbunov's
employment by the Company and subject to Dr Gorbunov
remaining an employee on that date.

5.5	on completion of the first sale of the
Nucleation/Condensation  product as referred to in the
definition of Transfer Price in clause 1 and that uses the

<PAGE>

technologies, Dr Gorbunov is to be immediately paid
2,000,000 pounds sterling as in clause 5.1

5.6	On Completion of the first sale of a bio product as
referred to in the definition of Transfer Price in clause
1 and that uses the Bio- Detection technologies or on the
sale of a second molecular product that uses the
Molecular- Detection technologies, whichever is the first
event, the Optionholder shall immediately pay to Dr
Gorbunov the sum of 2,000,000 pounds sterling as in clause 5.1.

5.7	Should Optionholder fail to meet the payment schedule any
IPR , share certificates and other documents of title in
respect of Option Shares held by the Optionholder in
either Company A or Company B will be returned to Dr
Gorbunov. Monies (both cash and shares) paid for shares
and IPR in Company A and Company B as in the Transfer
price (ii) will be returned to the Company. Monies (both
cash and shares) paid as in the Transfer price (i) and
(iii) to Dr Gorbunov will remain with Dr Gorbunov. Each
party will be fully responsible for their own taxation
liabilities.

6	OWNERSHIP AND ALIENATION

6.1	Dr Gorbunov warrants to the Optionholder that at the time
of execution of this Agreement he is the registered holder
and beneficial owner of the Option Shares and that, apart
from this Agreement, such shares are free from all
Encumbrances and that he has full power and authority to
exercise and enjoy all rights attaching thereto without
the consent of any other person and to grant the Option in
respect of the same upon the terms and conditions of this
Agreement.

6.2	Dr Gorbunov undertakes to the Optionholder that during the
Option Period he will not (without the prior written
consent of the Optionholder) dispose of any interest in
any of the Option Shares or any right attaching thereto
(save as may be required in pursuance of his obligations
under this Agreement) or create or allow to be created any
Encumbrance over any of the Option Shares or agree
(whether subject to any condition precedent or condition
subsequent or otherwise) to do any of such things.

7	DURATION OF OBLIGATIONS

7.1	Agreement shall terminate on the expiry of the Option
Period if no Option Notice shall have been served on or
prior to such date.

7.2	If an Option Notice shall have been served on or prior to
the date mentioned in Clause 7.1  this Agreement shall
continue in force after such date until the fulfilment of
the parties' obligations hereunder in relation to such
Option Notice whereupon it shall terminate.

<PAGE>

8	REORGANISATIONS

8.1	Dr Gorbunov shall procure that until this Agreement
terminates in accordance with Clause 7 the Company A and
Company B shall not effect any Reorganisation without the
prior written consent of the Optionholder.

8.2	Dr Gorbunov shall procure that until this Agreement
terminates in accordance with Clause 7 that Company A and
Company B shall not issue, allot, redeem, purchase or
grant options over any of its shares or other securities
nor issue or create any loan or other security convertible
into its shares.

9	CONFIDENTIALITY

This Clause contains restrictions on the use of information
disclosed by either party ("the Disclosing Party") to the other
("the Receiving Party").

9.1	Definitions.

For the purposes of this clause 9 the following expressions
shall have the following meanings:

9.1.1	"Confidential Information" means:

(a)	All information of a confidential nature or
which is marked or identified as confidential at
the time of disclosure, which is provided
directly or indirectly by the Disclosing Party
to the Receiving Party  (in any form or stored
on any medium), and whether before, on or after
the date of this Agreement;

(b)	any copy of any of the information described in
paragraph (a) above including a version of that
information incorporated in another form; and

(c)	the fact that discussions are taking place
between us the parties to this Agreement and the
terms of this Agreement.

9.1.2	"The Purpose" means negotiations for the exploitation
of the Technologies.

9.2	Confidentiality and Non-Use

The Receiving Party undertakes to the Disclosing Party to keep the
Confidential Information secret at all times, not to disclose it or
allow it to be disclosed in whole or in part to any third party
without the Disclosing Party's prior written consent and not to use
all or any of it except for the Purpose.

<PAGE>

Exceptions.

A party will not breach this the obligations in Clause 9.2
hereof to the extent that the Confidential Information which is
disclosed:

9.2.1	is known to the Receiving Party before its disclosure
by the Disclosing Party; or

9.2.2	is or becomes publicly known without the fault of the
Receiving Party; or

9.2.3	is obtained by the Receiving Party from a third party
in circumstances where the Receiving Party has no
reason to believe that there has been a breach of an
obligation of confidentiality owed to the Disclosing
Party; or

9.2.3.1	is independently developed by the Receiving
Party; or where. Party  such development is
not either a consequence, directly or
indirectly, of access to the Intellectual
Property Rights; or,

9.2.3.2	by way of reverse engineering;

9.2.4	is approved for release in writing by an authorised
representative of the Disclosing Party; or

9.2.5	is required to be disclosed pursuant to an order of
any Court of competent jurisdiction; or

9.2.6	is required to be disclosed for the purpose of
obtaining legal advice

<PAGE>

9.3	Permitted disclosures by the Optionholder

The Optionholder undertakes to permit access to Dr Gorbunov's
Confidential Information only to those third parties (including,
but not limited to, potential investors in the Technologies) who
reasonably need access to Dr Gorbunov's Confidential Information
for the Purpose, and on the condition that those third parties
must have:

9.3.1	those third parties must have entered into legally
binding confidentiality obligations with the
Receiving Party and the Disclosing Party on terms
equivalent to those set out in this Agreement and
applicable to the Confidential Information;

9.3.2	those third parties must have been informed of the
Disclosing Party's interest in the Confidential
Information and the terms of this Agreement; and

9.3.3	those third parties must have been instructed to
treat the Confidential Information as secret and
confidential in accordance with the provisions of
this Agreement.

9.3.4	the Optionholder shall:

9.3.4.1	obtain a full indemnity from each of the
third parties in respect of a breach of
confidentiality; and,

9.3.4.2	will fully indemnify and keep indemnified Dr.
Gorbunov, for any unauthorised disclosure of
Confidential Information by any third party
who had Confidential Information disclosed to
them by the Optionholder

9.7	Return of information and property

The Receiving Party acknowledges and agrees that the property
and copyright in Confidential Information disclosed to it by the
Disclosing Party, including any documents, files and other items
containing any Confidential Information or in any other form of
media, belongs to the Disclosing Party.  At the Disclosing
Party's written request, the Receiving Party will return
immediately to the Disclosing Party all Confidential Information
which the Receiving Party has received under this Agreement and
which whether or not the information is in the Receiving Party's
possession, including any copies made in any other form of
media, and make no further use or disclosure of any of the
Confidential Information.

<PAGE>

9.8       No implied rights

	9.8.1 This Agreement is not intended to grant the Receiving
Party any license or rights howsoever arising in respect of
the Confidential Information other than as expressly set
out in this Agreement nor to require the Disclosing Party
to disclose any Confidential Information to the Receiving
Party.

9.8.2	No warranty, condition or representation, express or
implied, is given as to the accuracy, efficacy,
completeness, capabilities or safety of any materials or
information provided under this Agreement.

9.9	Press releases, etc

Neither party will issue any press release or similar statement
or give any interview to the media relating to the Purpose
without first obtaining the other party's consent.

10  EXCLUSIVITY

In consideration of the Optionholder paying to Dr Gorbunov the
sum of 1 pound sterling receipt of which is hereby acknowledged, Dr Gorbunov
agrees that he shall not (and shall procure that Company A and
Company B shall not,) during the Option Period negotiate with
any party other than the Optionholder for the use or
exploitation in any way of all or any part of the Technologies
or transfer or grant any rights in or to all or any part of the
Technologies to any third party, and the Optionholder is hereby
granted sole and exclusive rights to market, [sell], produce,
[distribute] and otherwise exploit during the Option Period the
Technologies and any products arising from or derived or created
from the Technologies.

11 NOTICES

Any notice required or permitted to be given hereunder shall be
in writing and shall be sent to the relevant party at their
address for service in England and Wales as set out in this
Agreement or to such other address in England as they may
designate by notice to the other party in accordance with this
Clause. Any such notice shall be delivered personally or sent in
a pre-paid letter and shall be deemed to have been served if by
personal delivery when delivered and if by post 48 hours after
posting.

<PAGE>

12 GENERAL

12.1	This Agreement may not be assigned in whole or in part but
is binding upon and shall inure for the benefit of the
parties' personal representatives and other successors.

12.2	This Agreement shall be governed by and construed in
accordance with the laws of England and the parties hereby
submit to the non-exclusive jurisdiction of the English
Courts.

12.3	The parties hereto shall, and shall use their respective
best endeavours to procure that any necessary third
parties shall, execute and do all such further deeds,
documents and things as either party may reasonably
require by notice in writing to the other party to carry
the provisions of this Agreement into full force and
effect and (so far as they are able) shall do everything
necessary (including, without limitation, exercising their
powers as shareholders and as directors of the Company) to
give effect to the spirit and intent of this Agreement.

EXECUTED as a deed the day and year first before written.

SIGNED as a DEED and DELIVERED by	)

/s/ Boris Gurbanov
------------------
BORIS GURBANOV in the presence of:	)

Witness Signature		.........

Witness Name			.........

Witness Address		.........
				..........

Witness Occupation		..........

SIGNED and DELIVERED by
/s/ Terence Sullivan
---------------------
Terence Sullivan

/s/ Greg Chan
------------------
and Greg Chan on behalf 	  	............
of The COMPANY  and thereby
executed by it as its DEED

...President  Terence Sullivan.
[Title of authorised signatory]

..Company Secretary. Greg Chan.
[Title of authorised signatory]

<PAGE>

Appendix A

Dr Boris Gorbunov by signing this document attests that he holds free
from all Encumbrance .92% in company A
The Share percentages in Company A are as follows:
Name		Dr Boris Gorbunov .......92%
Name		Middlesex University ......08%
Name		.................%
Name		.................%
Name		.................%

Dr Boris Gorbunov by signing this document attests that he holds free
from all Encumbrance .92% in company B
The Share percentages in Company B are as follows:
Name		Dr Boris Gorbunov   ......91.2%
Name		Middlesex University   .....08.8%
Name		.................%
Name		.................%
Name		.................%

DATED                 		  2004

<PAGE>Amended 2003 Employee Comp Plan

Exhibit 10.55

KAIRE HOLDINGS INCORPORATED

AMENDED 2003 EMPLOYEE COMPENSATION PLAN

   1.   Purpose of the Amended Plan.   The purpose of the 2003 Amended Employee compensation plan (“Plan”) of Kaire Holdings Incorporated, a Delaware corporation, (“Company”) is to provide the Company with a means of compensating selected key employees, consultants and legal service providers to the Company and its subsidiaries for their services rendered with shares of Common Stock of the Company.

   2.   Administration of the Plan.   The Plan shall be administered by the Company’s Board of Directors (the “Board”).

       2.1   Award or Sales of shares. The Company’s Board shall (a) select those consultants legal service providers to whom shares of the Company’s Common Stock shall be awarded or sold, and (b) determine the number of shares to be awarded or sold; the time or times at which shares shall be awarded or sold; whether the shares to be awarded or sold will be registered with the Securities and Exchange Commission; and such conditions, rights of repurchase, rights of first refusal or other transfer restrictions as the Board may determine. Each award or sale of shares under the Plan may or may not be evidenced by a written agreement between the Company and the persons to whom shares of the Company’s Common Stock are awarded or sold.   

       2.2   Consideration for Shares. Shares of the Company’s Common Stock to be awarded or sold under the Plan shall be issued for services rendered, having a value not less than par value thereof, as shall be determined from time to time by the Board in its sole discretion.

       2.3   Board Procedures. The Board from time to time may adopt such rules and regulations for carrying out the purposes of the Plan as it may deem proper and in the best interests of the Company. The Board shall keep minutes of its meetings and records of its actions. A majority of the members of the Board shall constitute a quorum for the transaction of any business by the Board. The Board may act at any time by an affirmative vote of a majority of those members voting. Such vote shall be taken at a meeting (which may be conducted in person or by any telecommunication medium) or by written consent of Board members without a meeting.

2.4   Finality of Board Action. The Board shall resolve all questions arising under the Plan. Each determination, interpretation, or other action made or taken by the Board shall be final and conclusive and binding on all persons, including, without limitation, the Company, its stockholders, the Board and each of the members of the Board. 

       2.5   Non-Liability of Board Members. No Board member shall be liable for any action or determination made by him in good faith with respect to the Plan or any shares of the Company’s Common Stock sold or awarded under it.

       2.6   Board Power to amend, Suspend, or Terminate the Amendment to the Plan. The Board may, from time to time, make such changes in or additions to the Plan as it may deem proper and in the best interests of the Company and its Stockholders. The Board may also suspend or terminate the Plan at any time, without notice, and in its sole discretion.

	 
	 	1	 
	

	 

 

   3.   Shares Subject to the Plan. For purposes of the Plan, the Board of Directors is authorized to sell or award up 3,950,000 additional shares and/or options of the Company’s Common Stock. $.001 par value per share (“Common Stock”).

   4.   Participants.    All key consultants and qualified legal service providers to the Company and any of its subsidiaries (sometimes referred to herein as (“participants”) are eligible to participate in the Plan. A copy of this Plan shall be delivered to all participants, together with a copy of any Board resolutions authorizing the issuance of the shares and establishing the terms and conditions, if any, relating to the sale or award of such shares.

   5.   Rights and Obligations of Participants.   The award or sale of shares of Common stock shall be conditioned upon the participant providing to the Board a written representation that, at the time of such award or sale, it is the intent of such person(s) to acquire the shares for investment only and not with a view toward distribution. The certificate for unregistered shares issued for investment shall be restricted by the Company as to transfer unless the Company receives an opinion of counsel satisfactory to the Company to the effect that such restriction is not necessary under the pertaining law. The providing of such representation and such restriction on transfer shall not, however, be required upon any person’s receipt of shares of Common Stock under the Amendment to the Plan in the event that, at the time of award or sale, the shares shall be (i) covered by an effective and current registration statement under the Securities Act of 1933, as amended, and (ii) either qualified or exempt from qualification under applicable state securities laws. The Company shall, however, under no circumstances be required to sell or issue any shares under the Amendment to the Plan if, in the opinion of the Board, (i) the issuance of such shares would constitute a violation by the participant or the Company of any applicable law or regulation of any governmental authority, or (ii) the consent or approval of any governmental body is necessary or desirable as a condition of, or in connection with, the issuance of such shares. 

   6.   Payment of Shares.

       (a)   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 in subsection (b) below.

       (b)   At the discretion of the Board, Shares may be issued under the Plan in consideration of services rendered; provided, however, that any issuance of shares under the Plan shall be in compliance with Section 152 of the Delaware General Corporation Law, as amended.

   7.   Adjustments. If the outstanding Common Stock shall be hereafter increased or decreased, or changed into or exchanged for a different number or kind of shares or other securities of the Company or of another corporation, by reason of a recapitalization, reclassification, reorganization, merger, consolidation, share exchange, or other business combination in which the Company is the surviving parent corporation, stock split-up, combination of shares, or dividend or other distribution payable in capital stock or rights to acquire capital stock, appropriate adjustment shall be made by the Board in the number and kind of shares which may be granted under the Amendment to the Plan.

   8.   Tax Withholding.   As a condition to the purchase or award of shares, the participant shall make such arrangements as the Board may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such purchase or award.

   9.   Terms of the Plan.

       9.1   Effective Date. The Amended Plan shall become effective on May 25, 2004.

	 
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       9.2   Termination Date. The Plan shall terminate at Midnight on December 31, 2004, and no shares shall be awarded or sold after that time. The Plan may be suspended or terminated at any earlier time by the Board within the limitations set forth in Section 2.6.

   10.   Non-Exclusivity of the Plan. Nothing contained in the Plan is intended to amend, modify, or rescind any previously approved compensation plans, programs or options entered into by the Company. This Plan shall be construed to be in addition to and independent of any and all such other arrangements. The adoption of the Amendment to the Plan by the Board shall not be construed as creating any limitations on the power of authority of the Board to adopt, with or without stockholder approval, such additional or other compensation arrangements as the Board may from time to time deem desirable.

   11.   Governing Law. The Plan and all rights and obligations under it shall be construed and enforced in accordance with the laws of the state of Delaware.

 

	 
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