Document:

EXHIBIT 10.3

                        INVESTMENT CAPITAL FEE AGREEMENT

AGREEMENT   made  this  2nd  day  of  August  2004  by  and   between   Gridline
Communications Corp., a Delaware Corporation (herein "Gridline"), and D. E. Wine
Investments Inc., a Texas Corporation (herein "Wine").

WHEREAS,  Gridline is engaged in the business of  developing,  engineering,  and
providing high-speed internet services over power lines: and,

WHEREAS,  Wine is in the business of  providing  management  investment  banking
services and identifying and securing strategic alliances; and,

WHEREAS,  Gridline  requires  introductions  to  potential  equity and  business
partners to provide  working  capital and to replace  existing  lines of credit:
and,

WHEREAS,  the  Parties  desire to enter into this  Agreement  for the purpose of
utilizing the services of Wine on a non-exclusive  basis to identify  sources of
equity financing and assist Gridline in securing financing from such sources for
itself and its clients.

NOW, THEREFORE, the Parties do hereby agree as follows:

1.     SERVICES  WINE hereby  agrees to use its  reasonable  efforts to identify
       potential   equity  or  debt  investors  (each,   "Investor",   together,
       Investors"),  to  introduce  the same to Gridline  and  otherwise  assist
       Gridline in securing  funding from the Investors  ("Services").  Gridline
       agrees  to  utilize  the  Services  and to pay for the  services  as more
       particularly  set-forth  herein.  Gridline will utilize the Services on a
       non-exclusive  basis and  shall be free to  utilize  the same or  similar
       services of one or more other providers at any time. Wine shall list such
       Investors  on  Schedule  A, and may add to  Schedule A from time to time.
       Gridline  shall  automatically  accept  such  listing  unless  it  has an
       existing active  discussion  regarding an investment in Gridline with the
       proposed Investor, or another Finder has already listed such Investor. In
       such event,  Gridline shall notify Wine of such conflict  within 24 hours
       of listing by Wine.

2.     TERM This Agreement  shall have a term  commencing on the date hereof and
       ending on August 2, 2005 unless earlier  terminated by either Party. Such
       earlier  termination shall be by written notice and shall be effective on
       the date specified in the notice.  After termination,  no party will have
       any further obligation hereunder, except that Wine will retain all rights
       under this  agreement  regarding  payment of any fees earned  through the
       date of the termination.

3.     FEES

       (a)    a cash fee (the "Financing Fee") consisting of:

              (i)    a cash placement fee (the "Cash  Placement Fee") for EQUITY
                     financing of :

                     10% of the first million dollars,

                     8% of the second million,

                     6% of the third million,

                     4% of the forth million,

                     3% of everything thereafter,

              (ii)   a cash placement fee for DEBT financing  equal to 5% of the
                     financing amount.

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       (b)    a stock  placement fee (the "Stock  Placement Fee") payable at the
              closing of the  financing  equal to 50,000 shares for each million
              dollars of  financing.  All shares issued per this section will be
              restricted common stock of the company.

       The cash  placement fee and the stock  placement fee will be payable on a
       prorate  basis for any  financing  amount which falls between the million
       dollar breakpoints.

       The cash and,  stock fee for the  Services  shall  apply  during the term
       hereof, or any extensions thereto,  from any Investor first introduced to
       Gridline by Wine.

       In the event a potential  Investor is first  identified to Gridline prior
       to the termination of this Agreement,  but no funding by such Investor is
       made  prior to the  termination  date,  then  the  foregoing  fees  shall
       nevertheless  be paid to the extent the  investment  by such  Investor is
       funded  and  received  by  Gridline  on or before  Two (2) years from the
       effective  date of  termination.  In the event such  persons who were not
       initially identified and personally  introduced to the Company by Wine in
       the  Company,  no  compensation  will be owed to Wine.  Wine shall not be
       entitled to any fee if the investment is  consummated or if  negotiations
       thereto  are  completed,  more  than Two (2)  years  after  the date of a
       notification  of  termination  or if someone  other than Wine had already
       submitted the name of the potential Investor to Gridline.

4.     INVESTOR  QUALIFICATION No investment originated by Wine will be accepted
       by Gridline  until the  following  criteria  are met: (1) the investor is
       determined  to be  "accredited"  (2)  the  investor  is  approved  by the
       Company, in its sole discretion.

5.     PAYMENT OF FEES Gridline  shall pay the  foregoing  fees to Wine out of a
       transaction  escrow  account no later  than  Forty  Eight (48) hours from
       completion  of the  investment,  or, if cleared  funds are not  available
       after 48 hours,  then no later  than when  funds  are made  available  by
       banking institution.

6.     INVESTMENT  TERMS  The  amount of funds to be  invested,  the form of the
       investment and each of the terms of such  investment  shall be determined
       in the sole and exclusive discretion of Gridline. Gridline shall be under
       no obligation to contact or deal with any Investor identified by Wine nor
       shall it be obligated to commit to funding in any amount.  Gridline shall
       not be under any obligation to close any funding in connection with which
       it has had discussions or received commitments.

7.     PROHIBITION  OF  REPRESENTATIONS  Wine  will not make any  representation
       concerning  Gridline or its  business or provide  any  information  about
       Gridline  or its  business  except to the extent in  writing  and made or
       provided by Gridline;  provided, however, that Wine may identify Gridline
       to potential Investors and describe the general nature of the business of
       Gridline and the amount and type of investment sought.

8.     INDEPENDENT  CONTRACTOR  The Parties  agree that the  Services  are being
       provided by Wine  strictly as an  independent  contractor.  It is not the
       purpose  or  intention  of this  Agreement  to  create,  nor  shall  this
       Agreement be construed as creating,  any type of partnership,  employment
       or agency  relationship  between the Parties.  Wine is not  authorized to
       take any action on behalf of Gridline  or to bind  Gridline in any manner
       except as expressly provided herein

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9.     WINE'S ROLE Gridline acknowledges that Wine is a registered broker-dealer
       but Wine shall not be required  hereunder to, engage in the offer or sale
       of securities on behalf of Gridline. Wine agrees that, in connection with
       its  activities  on behalf of  Gridline,  it will not engage in a general
       solicitation of potential investors,  as defined in the Securities Act of
       1933  and  the  regulations  promulgated  pursuant  thereto,  and it will
       conduct  all  activities  on  behalf  of  Gridline  in  compliance   with
       applicable state and federal securities laws.

10.    INDEMNITY  Each of the Parties will  indemnify and defend the other Party
       against and hold the other Party harmless from any and all claims,  loss,
       liabilities,  damage,  demand,  or suit (and legal and related  costs and
       expenses that arise,  directly or indirectly,  from acts or omissions by,
       or from the breach of any term or condition of this Agreement  attributed
       to the associated Party.

11.    MISCELLANEOUS  This  Agreement  shall be governed by and  interpreted  in
       accordance  with the laws of the State of Texas and  controlling  federal
       law. No amendments,  changes or  modifications to this Agreement shall be
       valid  except if the same are in writing and signed by a duly  authorized
       representative of each of the parties hereto.

       The rights and  obligations  arising under this Agreement are personal in
       nature and shall not be  assigned  or  transferred  by Wine  without  the
       express written  consent of Gridline.  This Agreement shall be binding on
       and shall  inure to the  benefit  of the  Parties  and  their  respective
       successors and permitted assigns.

12.    DISPUTE RESOLUTION THROUGH ARBITRATION

       Arbitration:  All disputes,  controversies  or claims by or between AISMI
       and Wine arising out of or relating to this Agreement shall be settled by
       binding  arbitration  in  accordance  with  generally  accepted  Industry
       Arbitration Rules of the American  Arbitration  Association.  The parties
       agree  that  binding  arbitration  shall  be the  sole  remedy  as to all
       disputes arising out of this Agreement. All arbitration hearings shall be
       held at a place  designated by the  arbitrators  as shall be agreed to by
       the parties.

       Choice of Law: In determining any matter(s) the  arbitrators  shall apply
       the terms of this Agreement, without adding to, modifying or changing the
       terms in any respect, and shall apply Tribal law, or in its absence, then
       federal  law,  or in its  absence,  then state law where the  Project (or
       Agreement) is to be performed.

       Action to Compel Arbitration:  Both parties agree that either Party shall
       have the right to compel and/or enforce,  including,  if appropriate,  by
       injunctive  relief or specific  performance,  any  arbitration  decisions
       and/or  arbitration   awards  in  a  court  of  competent   jurisdiction.
       Arbitration  shall be held in the City and State  where the  Project  (or
       Agreement) is to be performed.

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IN WITNESS  WHEREOF,  the duly  authorized  representatives  of the parties have
caused this Agreement to be executed on the date first written above.

--------------------------------------- ----------------------------------------
GRIDLINE COMMUNICATIONS CORP             D. E. WINE INVESTMENTS, INC

BY: /s/ Blaize Kaduru                    BY: /s/ W. Randal Miller
    ---------------------------------        ---------------------------------

NAME:   BLAIZE KADURU                    NAME:   W. RANDAL MILLER

TITLE:  PRESIDENT/CEO                    TITLE:  VICE PRESIDENT

DATE:   AUGUST 2, 2004                   DATE:   AUGUST 2, 2004
--------------------------------------- ----------------------------------------

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                                   SCHEDULE A

               LIST OF PROSPECTS FOR GRIDLINE COMMUNICATIONS CORP.

                                 AUGUST 2, 2004_
                                 ---------------

                  (LIST WILL BE UPDATED WEEKLY OR AS NECESSARY)

       1.     SBI USA.

       3.

       4.

       5.

                                       5EXHIBIT 10.4

                          GRIDLINE COMMUNICATION CORP.

                           2004 EQUITY INCENTIVE PLAN

    SECTION                             DESCRIPTION

       1                                Purpose of the Plan

       2                                Definitions

       3                                Types of Awards Covered

       4                                Administration

       5                                Eligibility

       6                                Shares of Stock Subject to the Plan

       7                                Non-Employee Director Awards

       8                                Stock Options

       9                                Stock Appreciation Rights

       10                               Restricted Stock

       11                               Performance Awards

       12                               Other Stock-Based Incentive Awards

       13                               Exercise of Options

       14                               Rights in Event of Death or Disability

       15                               Award Agreements

       16                               Tax Withholding

       17                               Change of Control

       18                               Dilution or Other Adjustment

       19                               Transferability

       20                               Amendment or Termination

       21                               General Provisions

       22                               Plan Effective Date

       23                               Plan Termination

<PAGE>

                          GRIDLINE COMMUNICATIONS CORP.

                           2004 EQUITY INCENTIVE PLAN

                                    SECTION 1
                               PURPOSE OF THE PLAN

1.1     The purposes of the 2004 Equity Incentive Plan are to attract and retain
        qualified  personnel,  to provide additional  incentive to Employees and
        Consultants  of Gridline  Communications  Corp.  in order to promote the
        success of the Company's business and enhance shareholder value.

                                    SECTION 2
                                   DEFINITIONS

2.1     Unless the context indicates  otherwise,  the following terms, when used
        in this Plan, shall have the meanings set forth in this Section:

        (a)     "AWARD"  shall mean grants or awards under this Plan in the form
                of Options, SARs, Restricted Stock,  Performance Awards or other
                stock-based incentive awards.

        (b)     "BOARD" shall mean the Board of Directors of the Company.

        (c)     "CHANGE OF  CONTROL"  shall be deemed to have taken  place on an
                occurrence of an event as defined in Section 17 of this Plan.

        (d)     "CODE" shall mean the Internal Revenue Code of 1986 as it may be
                amended from time to time and related Treasury Regulations.

        (e)     "COMMITTEE" shall mean the Board, or any Committee  comprised of
                two or more Outside  Directors,  that may be  designated  by the
                Board to  administer  the Plan,  in  accordance  with  Section 4
                hereof.

        (f)     "COMMON STOCK" shall mean the common stock, par value $.0001, of
                the Company.

        (g)     "COMPANY" shall mean Gridline Communications Corp.

        (h)     "CONSULTANT" shall mean any consultant or advisor to the Company
                or any Subsidiary, but not including any Employee.

        (i)     "DEFERRED  SHARES" an award made  pursuant  to Section 12 of the
                Plan  of the  right  to  receive  Common  Stock  in lieu of cash
                thereof at the end of a specified time period.

        (j)     "DIRECTOR" shall mean any member of the Board.

<PAGE>

        (k)     "DISABILITY"  shall mean permanent and total  disability  within
                the meaning of Section 22(e)(3) of the Code.

        (l)     "EMPLOYEE"  shall mean any full-time  employee of the Company or
                its Subsidiaries (including Directors who are otherwise employed
                on a full-time basis by the Company or its Subsidiaries).

        (m)     "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934 as
                it may be amended from time to time.

        (n)     "FAIR MARKET VALUE" of the Common Stock on a given date shall be
                based  upon  either  (i) if the  Common  Stock  is  listed  on a
                national   securities  exchange  or  quoted  in  an  interdealer
                quotation system,  the last sales price or, if unavailable,  the
                average  of the  closing  bid and asked  prices per share of the
                Common  Stock on such  date  (or,  if there  was no  trading  or
                quotation  in the  Common  Stock  on  such  date,  on  the  next
                preceding  date on which  there was  trading  or  quotation)  as
                provided  by one of such  organizations  or  (ii) if the  Common
                Stock is not listed on a national  securities exchange or quoted
                in an interdealer  quotation system,  the price will be equal to
                the Company's fair market value,  as determined by the Committee
                in  good  faith  based  upon  the  best   available   facts  and
                circumstances at the time.

        (o)     "GRANTEE" shall mean a person granted an Award under the Plan.

        (p)     "IMMEDIATE  FAMILY"  shall mean with respect to a given  Grantee
                that Grantee's  spouse,  children,  or grandchildren  (including
                adopted children or grandchildren).

        (q)     "IPO DATE" shall mean the date of closing of the initial  public
                offering of the Company's Common Stock.

        (r)     "ISO"  shall  mean an  Award  granted  pursuant  to the  Plan to
                purchase  shares of the Stock and is  intended  to qualify as an
                incentive  stock option under Section 422 of the Code, as now or
                hereafter constituted.

        (s)     "NQSO"  shall  mean an  Award  granted  pursuant  to the Plan to
                purchase  shares of stock and is not  intended  to qualify as an
                incentive  stock option under Section 422 of the Code, as now or
                hereafter constituted.

        (t)     "OPTIONS"  shall  refer  collectively  to NQSOs and ISOs  issued
                under and subject to the Plan.

        (u)     "OUTSIDE DIRECTOR" shall mean a non-employee Director within the
                meaning  of Rule  16b-3(b)(3)  under the  Exchange  Act,  or any
                successor thereto,  who are also "outside  directors" within the
                meaning  of  Section  162(m)  of the  Code  and the  regulations
                thereunder.

<PAGE>

        (v)     "PERFORMANCE  AWARDS" shall mean Awards under the Plan,  payable
                in cash,  Common  Stock,  other  securities  or other awards and
                shall  confer  on  the  holder  thereof  the  right  to  receive
                payments,  upon the achievement of such performance goals during
                such performance periods as the Committee shall establish.

        (w)     "PERMITTED  TRANSFEREE"  shall mean any  individual or entity as
                defined in Section 19.2 of this Plan.

        (x)     "PLAN" shall mean this 2004 Equity  Incentive  Plan as set forth
                herein and as amended from time to time.

        (y)     "RESTRICTED  STOCK" shall mean an Award of Common Stock  subject
                to restrictions  on transfer  and/or such other  restrictions on
                incidents of ownership as the Committee may determine.

        (z)     "RULES"  means  Rule  16(b)(3)  and  any  successor   provisions
                promulgated  by the  Securities  and Exchange  Commission  under
                Section 16 of the Exchange Act.

        (aa)    "SAR"  shall mean an Award  constituting  the right to  receive,
                upon  surrender  of the right,  but without  payment,  an amount
                payable in cash.

        (bb)    "SUBSIDIARY or  SUBSIDIARIES"  shall mean any entity or entities
                in which the Company owns a majority of the voting power.

        (cc)    "TEN PERCENT  SHAREHOLDER"  shall mean any Grantee who owns more
                than 10% of the combined voting power of all classes of stock of
                the Company, within the meaning of Section 422 of the Code.

                                    SECTION 3
                             TYPES OF AWARDS COVERED

3.1     Awards granted under the Plan may be:

        (a)     stock options ("Options") which may be designated as:

                (i)     nonqualified stock options ("NQSOs"); or

                (ii)    incentive stock options ("ISOs");

        (b)     stock appreciation rights ("SARs");

        (c)     restricted stock awards ("Restricted Stock");

        (d)     performance awards ("Performance Awards"); or

        (e)     other forms of stock-based incentive awards.

                                       3
<PAGE>

                                    SECTION 4
                                 ADMINISTRATION

4.1     The  Plan  shall  be  administered  by  the  Committee.  Subject  to the
        provisions of the Plan and applicable law, the Committee shall have full
        discretion and the exclusive power to:

        (a)     select the individuals  who will  participate in the Plan and to
                make Awards to such individuals;

        (b)     determine the time at which such Awards shall be granted and any
                terms and conditions with respect to such Awards as shall not be
                inconsistent with the provisions of the Plan; and

        (c)     resolve  all  questions  relating to the  administration  of the
                Plan, and applicable law.

4.2     The  interpretation of and application by the Committee of any provision
        of the Plan shall be final and  conclusive.  The Committee,  in its sole
        discretion, may establish such rules and guidelines relating to the Plan
        as it may deem appropriate.

4.3     The Committee may employ such legal counsel,  consultants, and agents as
        it may deem  desirable for the  administration  of the Plan and may rely
        upon any opinion  received from any such counsel or  consultant  and any
        computation  received from any such  consultant or agent.  The Committee
        shall keep minutes of its actions under the Plan.

4.4     No member of the Board of Directors or the Committee shall be liable for
        any action or determination  made in good faith with respect to the Plan
        or any Awards granted  hereunder.  All members of the Committee shall be
        fully   protected  by  the  Company  in  respect  to  any  such  action,
        determination or interpretation.

                                    SECTION 5
                                   ELIGIBILITY

5.1     The  individuals  who shall be eligible to participate in the Plan shall
        be officers, management, and such other key Employees and Consultants of
        the  Company and  Subsidiaries  as the  Committee  may from time to time
        determine.

5.2     Directors of the Company who are not  employees of the Company  shall be
        eligible to participate in the Plan as provided in Section 7.

5.3     An Employee, Consultant or Non-Employee Director who has been granted an
        Award in one year shall not necessarily be entitled to be granted Awards
        in subsequent years.

                                       4
<PAGE>

                                    SECTION 6
                       SHARES OF STOCK SUBJECT TO THE PLAN

6.1     Awards may be granted with respect to the Common Stock of the Company.

6.2     Shares  delivered  upon  exercise of the Awards,  at the election of the
        Board  of  Directors  of  the  Company,  may be  Common  Stock  that  is
        authorized but previously unissued,  or stock reacquired by the Company,
        or both.

6.3     Subject to the  provisions  of Section 18, the maximum  number of shares
        available for issuance under the Plan shall be not more than  10,000,000
        shares,  subject to  adjustment as provided in Section 18.2 in the event
        of any reclassification,  stock split, combination of shares, separation
        (including  a spin-off),  dividend on shares of Common Stock  payable in
        stock or other similar change in capitalization. The number of shares of
        Common  Stock  reserved  under the Plan shall not be less than the total
        number of shares  granted,  whether  exercised  or  unexercised  for all
        Awards under the Plan.

6.4     Any shares of Common Stock awarded  under the Plan,  which Award for any
        reason  expires or is terminated  unexercised  as to such shares,  shall
        again be  available  for the  grant  of other  Awards  under  the  Plan;
        provided,  however,  that forfeited shares or other securities shall not
        be available for further Awards if the Grantee has realized any benefits
        of ownership from such shares.

                                    SECTION 7
                          NON-EMPLOYEE DIRECTOR AWARDS

7.1     The Board may grant NQSOs to Non-Employee  Directors in such amounts and
        at such times as the Board may determine.

7.2     Each option granted to a  Non-Employee  Director shall be exercisable in
        full one year after the date of grant.

7.3     Each option granted to a Non-Employee Director may not be exercised more
        than 10 years  after the date such  option is  granted  and such  option
        shall expire on such date unless  sooner  exercised or cancelled  due to
        termination of service or death.

7.4     Upon the  termination  of  directorship,  such  Non-Employee  Director's
        option  privileges shall be limited to the shares which were immediately
        purchasable at the date of such  termination of  directorship  and shall
        expire unless  exercised on or before the second annual  anniversary  of
        the date of such termination of directorship.

7.5     If a Non-Employee  Director dies while a member of the Board, his or her
        option shall become fully  exercisable  and shall remain  exercisable by
        such Non-Employee Director's estate (or other successor) until the first
        annual anniversary date of death, at which time they shall expire.

                                       5
<PAGE>

                                    SECTION 8
                                  STOCK OPTIONS

8.1     The Committee may grant Options, as follows, which shall be evidenced by
        a stock  option  agreement  and may be  designated  as (i) NQSOs or (ii)
        ISOs:

        (a)     NQSOS

                (i)     A NQSO is a right to  purchase  a  specified  number  of
                        shares of Common Stock during such time as the Committee
                        may  determine,  not to  exceed  ten  years,  at a price
                        determined  by the  Committee  that is not less than the
                        par value per  share of each  share of Common  Stock for
                        which the option is granted.

                (ii)    The purchase  price of the Common  Stock  subject to the
                        NQSO  may be  paid in  cash.  At the  discretion  of the
                        Committee,  the  purchase  price may also be paid by the
                        tender  of Common  Stock or  through  a  combination  of
                        Common Stock and cash or through such other means as the
                        Committee  determines  are  consistent  with the  Plan's
                        purpose  and  applicable  law. No  fractional  shares of
                        Common Stock will be issued or accepted.

                (iii)   No NQSO may be  exercised  more than 10 years  after the
                        date the NQSO is granted.

                (iv)    Without limiting the foregoing,  to the extent permitted
                        by law (including relevant state law):

                        A.      the  Committee  may agree to accept,  as full or
                                partial  payment of the purchase price of Common
                                Stock  issued upon the  exercise of the NQSO,  a
                                promissory  note of the  person  exercising  the
                                NQSO evidencing the person's  obligation to make
                                future  cash  payments  to  the  Company,  which
                                promissory  note shall be payable as  determined
                                by the Company  (but in no event later than five
                                years after the date thereof),  shall be secured
                                by a  pledge  of  the  shares  of  Common  Stock
                                purchased  and  shall  bear  interest  at a rate
                                established by the Committee; and

                        B.      the Committee  may permit the person  exercising
                                the NQSO,  either on a  selective  or  aggregate
                                basis, to  simultaneously  exercise the NQSO and
                                sell  the  shares  of  Common  Stock   acquired,
                                pursuant to a brokerage  or similar  arrangement
                                approved  in advance by the  Committee,  and use
                                the  proceeds   from  sale  as  payment  of  the
                                exercise price of the NQSO.

                                       6
<PAGE>

                (v)     if the option is not exercised it will be canceled.

        (b)     ISOS

                (i)     No ISO may be  granted  under the Plan to an  individual
                        who is not an Employee.

                (ii)    The aggregate Fair Market Value  (determined at the time
                        of the grant of the Award) of the shares of Common Stock
                        subject to ISOs which are  exercisable  by a Grantee for
                        the first time during a particular  calendar  year shall
                        not exceed $100,000.  To the extent that ISOs granted to
                        a  Grantee  exceed  the  limitation  set  forth  in  the
                        preceding  sentence,  ISOs granted last shall be treated
                        as NQSOs.

                (iii)   No ISO may be exercisable more than:

                        A.      in  the  case  of a  Grantee  who  is  not a Ten
                                Percent  Shareholder,  on the  date  the  ISO is
                                granted,  ten  years  after  the date the ISO is
                                granted; and

                        B.      in the case of a  Grantee  who is a Ten  Percent
                                Shareholder,  on the  date  the ISO is  granted,
                                five years after the date the ISO is granted.

                (iv)    The exercise price of any ISO shall be determined by the
                        Committee and shall not be less than:

                        A.      in  the  case  of a  Grantee  who  is  not a Ten
                                Percent  Shareholder  on  the  date  the  ISO is
                                granted,  the Fair  Market  Value of the  Common
                                Stock subject to the ISO on such date; and

                        B.      in the case of an employee  who is a Ten Percent
                                Shareholder on the date the ISO is granted,  not
                                less than 110 percent of the Fair  Market  Value
                                of the Common  Stock  subject to the ISO on such
                                date.

                (v)     The Committee may provide that the option price under an
                        ISO may be paid by one or more of the methods  available
                        for  paying  the  option  price of an NQSO  per  Section
                        8.1(a)(iv).

8.2     The Committee shall specify in the stock option agreement the terms upon
        which the Options shall become exercisable.

8.3     The aggregate  number of shares of Common Stock to be issued pursuant to
        ISOs shall not exceed 7,000,000 shares,  except in the event of a change
        in capitalization as described in Section 18.2.

                                       7
<PAGE>

                                    SECTION 9
                            STOCK APPRECIATION RIGHTS

9.1     The amount  payable  with respect to each SAR shall be equal in value to
        the  applicable  percentage  of the  excess,  if any, of the Fair Market
        Value of a share of Common Stock on the exercise  date over the exercise
        price of the SAR. The exercise  price of the SAR shall be  determined by
        the Committee and shall not be less than 50% of the Fair Market Value of
        a share of  Common  Stock on the  date the SAR is  granted.  SARs may be
        granted  in tandem  with an Option in which  event the  Grantee  has the
        right to elect to  exercise  either  the SAR or the  Option.  Upon their
        election  to  exercise  one  of  these   Awards,   the  other  Award  is
        subsequently  terminated.  SARs may also be  granted  as an  independent
        Award.

9.2     In the case of an SAR granted in tandem  with an ISO to an employee  who
        is a Ten  Percent  Shareholder  on the date of such  grant,  the  amount
        payable  with  respect  to each  SAR  shall  be  equal  in  value to the
        applicable percentage of the excess, if any, of the Fair Market Value of
        a share of Common Stock on the exercise date over the exercise  price of
        the SAR,  which exercise price shall not be less than 110 percent of the
        Fair  Market  Value  of a share of  Common  Stock on the date the SAR is
        granted.

9.3     The applicable percentage and exercise price shall be established by the
        Committee at the time the SAR is granted.

                                   SECTION 10
                                RESTRICTED STOCK

10.1    Restricted  Stock is  Common  Stock of the  Company  that is issued to a
        Grantee at a price determined by the Committee, which price may be zero,
        and  is  subject  to   restrictions   on  transfer   and/or  such  other
        restrictions on incidents of ownership as the Committee may determine.

10.2    The Committee  shall specify in the Award agreement the terms upon which
        such shares of Common Stock granted to a Grantee as an Award shall vest;
        provided,  however,  that the  Grantee  continues  to be employed by the
        Company on such date.

10.3    The Committee may, in its discretion, provide for accelerated vesting of
        Restricted Stock upon the achievement of specified  performance goals to
        be determined by the Committee.

10.4    Grantee may make the election under Section 83(b) of the Code.

                                   SECTION 11
                               PERFORMANCE AWARDS

11.1    A Performance Award granted under the Plan:

                                       8
<PAGE>

        (a)     may be denominated or payable in cash, Common Stock,  Restricted
                Stock, other securities, or other Awards; and

        (b)     shall  confer  on  the  holder  thereof  the  right  to  receive
                payments,  in  whole or in part,  upon the  achievement  of such
                performance  goals  during  such  performance   periods  as  the
                Committee shall establish.

11.2    Subject to the terms of the Plan and any applicable Award agreement, the
        performance  goals to be achieved  during any  performance  period,  the
        length of any performance  period,  the amount of any Performance  Award
        granted and the amount of any payment or transfer to be made pursuant to
        any  Performance  Award  shall  be  determined  by the  Committee.  Such
        performance  goals that the  Committee  may select are  earnings  before
        interest and taxes, net income, gross sales,  earnings per share, return
        on  equity,  return on  investment,  economic  value  added,  divisional
        performance goals, etc.

                                   SECTION 12
                       OTHER STOCK-BASED INCENTIVE AWARDS

12.1    The  Committee  may from time to time grant  Awards under this Plan that
        provide a Grantee the right to purchase  Common  Stock or units that are
        valued  by  reference  to the  Fair  Market  Value of the  Common  Stock
        (including,   but  not  limited  to,  phantom   securities  or  dividend
        equivalents)  or  to  receive  Deferred  Shares  which  are  stock-based
        incentive  grants in lieu of a cash  deferral  of  bonuses.  Such Awards
        shall be in a form  determined by the  Committee  (and may include terms
        contingent upon a change of control of the Company);  provided that such
        Awards  shall not be  inconsistent  with the terms and  purposes  of the
        Plan.

12.2    The Committee  shall determine the price of any Award and may accept any
        lawful consideration.

                                   SECTION 13
                               EXERCISE OF OPTIONS

13.1    The  Committee  may provide for the exercise of Options in  installments
        and upon such terms,  conditions  and  restrictions  as it may determine
        subject to applicable law and the other requirements of this Plan.

13.2    The  Committee may provide for  termination  of an Option in the case of
        termination of employment or directorship or any other reason.

13.3    An Option granted  hereunder shall be exercisable,  in whole or in part,
        only by written  notice  delivered in person or by mail to the Secretary
        of the Company at its principal office,  specifying the number of shares
        of Common Stock to be purchased and  accompanied by payment  thereof and
        otherwise  in  accordance  with the stock option  agreement  pursuant to
        which the Option was granted.

                                       9
<PAGE>

                                   SECTION 14
                     RIGHTS IN EVENT OF DEATH OR DISABILITY

14.1    If  a  Grantee  dies  or  becomes  subject  to  a  Disability  prior  to
        termination of his or her right to exercise an Option in accordance with
        the  provisions  of his or her stock  option  agreement  without  having
        totally  exercised  the Option,  the stock option  agreement may provide
        that the Option may be  exercised,  to the extent  that the shares  with
        respect to the Option  could have been  exercised  by the Grantee on the
        date of his or her  death or  Disability,  by (i),  in the  event of the
        Grantee's  death, the Grantee's estate or by the person who acquired the
        right to exercise the Option by bequest or  inheritance  or (ii), in the
        event of the  Grantee's  Disability,  the Grantee or his or her personal
        representative.

14.2    In the event of the Grantee's death or Disability,  the Option shall not
        be exercisable  after the date of its expiration or more than six months
        from the date of the  Grantee's  death or  Disability,  whichever  first
        occurs.

14.3    The  date  of  Disability  of a  Grantee  shall  be  determined  by  the
        Committee.

                                   SECTION 15
                                AWARD AGREEMENTS

15.1    Each  Award  granted  under  the  Plan  shall be  evidenced  by an award
        agreement  between  the  Grantee  to whom the Award is  granted  and the
        Company,  setting forth the number of shares of Common  Stock,  SARs, or
        units  subject  to  the  Award  and  such  other  terms  and  conditions
        applicable to the Award not inconsistent  with the Plan as the Committee
        may deem appropriate.

15.2    The award  agreement  for an Option shall also be referred to as a stock
        option agreement.

                                   SECTION 16
                                 TAX WITHHOLDING

16.1    The Committee may  establish  such rules and  procedures as it considers
        desirable in order to satisfy any  obligation of the Company to withhold
        federal income taxes or other taxes with respect to any Award made under
        the Plan. Such rules and procedures may provide:

        (a)     in the case of  Awards  paid in  shares  of  Common  Stock,  the
                Company may withhold shares of Common Stock  otherwise  issuable
                upon  exercise  of such  Award in order to  satisfy  withholding
                obligations,  unless  otherwise  instructed  by the  Grantee  or
                unless the Committee  determines otherwise at the time of Grant;
                and

        (b)     in the case of an  Award  paid in  cash,  that  the  withholding
                obligation  shall be satisfied  by  withholding  the  applicable
                amount and paying the net amount in cash

                                       10
<PAGE>

                to the Grantee;  provided that the requirements of the Rules, to
                the extent  applicable,  must be  satisfied  with  regard to any
                withholding pursuant to clause (a).

                                   SECTION 17
                                CHANGE OF CONTROL

17.1    For the purpose of the Plan,  a "Change of  Control"  shall be deemed to
        have occurred if:

        (a)     the Company is merged or consolidated  with another  corporation
                and as a result of such merger or consolidation less than 50% of
                the outstanding  voting securities of the surviving or resulting
                corporation   are  owned  in  the   aggregate   by  the   former
                shareholders of the Company;

        (b)     the Company sells,  leases or exchanges all or substantially all
                of  its   assets  to  another   corporation,   which  is  not  a
                wholly-owned Subsidiary of the Company;

        (c)     any person or "group" within the meaning of Section  13(d)(3) of
                the Exchange Act acquires  (together  with voting  securities of
                the Company  held by such person or "group")  50% or more of the
                outstanding  voting securities of the Company (whether directly,
                indirectly,   beneficially   or  of  record)   pursuant  to  any
                transaction or combination of transactions;

        (d)     there is a change of  control of the  Company  of a nature  that
                would be  required  to be  reported  in response to Item 6(e) of
                Schedule 14A of Regulation  14A  promulgated  under the Exchange
                Act,  whether  or not  the  Company  is  then  subject  to  such
                reporting requirements; or

        (e)     the  individuals  who, at the  beginning of any period of twelve
                consecutive  months,  constituted the Board of Directors  cease,
                for any  reason,  to  constitute  at least a  majority  thereof,
                unless the  nomination for election or election by the Company's
                shareholders of each new Director of the Company was approved by
                a vote of at least  two-thirds  of the  Directors  then still in
                office who either were Directors at the beginning of such period
                or whose  election or nomination  for election was previously so
                approved.

17.2    In the  event  of a Change  of  Control  affecting  the  Company,  then,
        notwithstanding  any  provision of the Plan or of any  provisions of any
        Award agreements entered into between the Company and any Grantee to the
        contrary,  all Awards  that have not  expired and which are then held by
        any  Grantee  (or the person or persons to whom any  deceased  Grantee's
        rights  have been  transferred)  shall,  as of such  Change of  Control,
        become fully and immediately vested and exercisable and may be exercised
        for the remaining term of such Awards.

                                       11
<PAGE>

                                   SECTION 18
                          DILUTION OR OTHER ADJUSTMENT

18.1    If the Company is a party to any merger or  consolidation,  or undergoes
        any merger, consolidation,  separation,  reorganization,  liquidation or
        the like, the Committee shall have the power to make arrangements, which
        shall  be  binding  upon  the  holders  of  unexpired  Awards,  for  the
        substitution of new Awards for, or the assumption by another corporation
        of, any unexpired Awards then outstanding hereunder.

18.2    In the event of a reclassification,  stock split, combination of shares,
        separation  (including  a  spin-off),  dividend  on shares of the Common
        Stock payable in stock or other similar change in  capitalization  or in
        the  corporate  structure of shares of the Common  Stock,  the Committee
        shall  conclusively  determine the appropriate  adjustment in the option
        prices of  outstanding  Options,  and the  number  and kind of shares or
        other  securities as to which  outstanding  Awards shall be exercisable,
        and in the  aggregate  number of shares with respect to which Awards may
        be granted.

18.3    The number of shares  reserved under the Plan shall adjust as the number
        of shares of Common  Stock  increases as provided in Section 6.3 of this
        Plan.

                                   SECTION 19
                                 TRANSFERABILITY

19.1    No  Award,  other  than an  NQSO,  shall  be  sold,  pledged,  assigned,
        transferred,  or  encumbered  by a Grantee  other than by will or by the
        laws of descent and distribution.

19.2    Only an NQSO may be  pledged,  assigned,  transferred,  or  gifted  by a
        Grantee  to  another  individual  provided  that  the  NQSO is  pledged,
        assigned,  transferred  or gifted  without  consideration  by a Grantee,
        subject to such rules as the Committee may adopt, to (i) a member of the
        Grantee's  immediate family,  (ii) a trust solely for the benefit of the
        Grantee  and his or her  immediate  family  or  (iii) a  partnership  or
        limited liability company whose only partners or members are the Grantee
        and  his  or  her  Immediate  Family  (hereinafter  referred  to as  the
        Permitted  Transferee);  provided  that the  Committee  is  notified  in
        advance in writing of the terms and  conditions of any proposed  pledge,
        assignment,  transfer,  or gift and the Committee  determines  that such
        pledge,  assignment,  transfer or gift complies with the requirements of
        the Plan and the applicable Award agreement.

19.3    Any pledge, assignment or gift of an Award that does not comply with the
        provisions of the Plan and the applicable  Award agreement shall be void
        and unenforceable against the Company.

19.4    All terms and conditions of a pledged,  assigned,  transferred or gifted
        Award  shall  apply to the  beneficiary,  executor,  administrator,  and
        Permitted Transferee, whether one or more, of the Grantee (including the
        beneficiary,  executor  and  administrator  of a permitted  transferee),
        including the right to amend the applicable  Award  agreement;  provided
        that

                                       12
<PAGE>

        the Permitted Transferee shall not pledge, assign,  transfer, or gift an
        Award other than by will or by the laws of descent and distribution.

                                   SECTION 20
                            AMENDMENT OR TERMINATION

20.1    The  Committee  may at any time amend,  suspend or  terminate  the Plan;
        provided, that:

        (a)     no change in any Awards  previously  granted may be made without
                the consent of the holder thereof; and

        (b)     no amendment,  other than an amendment  authorized by Section 18
                or Section 6.3, may be made  increasing the aggregate  number of
                shares of the  Common  Stock  with  respect to which ISOs may be
                granted,  or changing the class of employees eligible to receive
                ISOs  hereunder,  without  the  approval  of  the  holders  of a
                majority of the outstanding voting shares of the Company.

                                   SECTION 21
                               GENERAL PROVISIONS

21.1    No Awards  may be  exercised  by a  Grantee  if such  exercise,  and the
        receipt of cash or stock thereunder, would be, in the opinion of counsel
        selected by the Company,  contrary to law or the regulations of any duly
        constituted authority having jurisdiction over the Plan.

21.2    A bona fide leave of absence approved by a duly  constituted  officer of
        the Company  shall not be  considered  interruption  or  termination  of
        service of any  Grantee for any  purposes of the Plan or Awards  granted
        thereunder, except that no Awards may be granted to an Employee while he
        or she is on a bona fide leave of absence.

21.3    No Grantee  shall have any rights as a  shareholder  with respect to any
        shares  subject to Awards  granted to him or her under the Plan prior to
        the date as of which he or she is  actually  recorded  as the  holder of
        such shares upon the stock records of the Company.

21.4    Nothing  contained  in  the  Plan  or  in  an  Award  agreement  granted
        thereunder  shall  confer upon any Grantee any right to (i)  continue in
        the employ of the Company or any of its Subsidiaries or continue serving
        on the Board of  Directors  of the Company or (ii)  interfere in any way
        with the right of the Company or any of its  Subsidiaries  to  terminate
        the Grantee's employment at any time or service on the Board.

21.5    Any Award  agreement  may provide that stock issued upon exercise of any
        Awards  may  be  subject  to  such  restrictions,   including,   without
        limitation,   restrictions  as  to   transferability   and  restrictions
        constituting  substantial  risks  of  forfeiture  as the  Committee  may
        determine at the time such Award is granted.

                                       13
<PAGE>

                                   SECTION 22
                               PLAN EFFECTIVE DATE

22.1    The Plan shall become effective on the date of its adoption by the Board
        of  Directors  of the  Company  subject to  approval  of the Plan by the
        holders of a majority of the  outstanding  voting  shares of the Company
        within twelve (12) months after the date of the Plan's  adoption by said
        Board  of  Directors.  In  the  event  of the  failure  to  obtain  such
        shareholder approval, the Plan and any Awards granted thereunder,  shall
        be null and void and the Company shall have no liability thereunder.

22.2    No  Award  granted  under  the  Plan  shall be  exercisable  until  such
        shareholder approval has been obtained.

                                   SECTION 23
                                PLAN TERMINATION

23.1    No Award may be granted under the Plan on or after the date which is ten
        years following the effective date specified in Section 22.1, but Awards
        previously granted may be exercised in accordance with their terms.

                                       14
<PAGE>

                          GRIDLINE COMMUNICATIONS CORP.

                           2004 EQUITY INCENTIVE PLAN

<PAGE>

                        INCENTIVE STOCK OPTION AGREEMENT

       THIS AGREEMENT made effective as of ____________, 2004 (the "GRANT DATE")
between Gridline  Communications  Corp., a Delaware corporation (the "COMPANY"),
and ___________ (the "OPTION  HOLDER")  relating to an option to purchase shares
of the Company's common stock, par value [$0.001] per share ("COMMON STOCK").

       1.     GRANT OF  OPTION.  Subject  to the  terms and  conditions  of this
Agreement and the Company's 2004 Equity Incentive Plan (the "PLAN"), the Company
hereby grants to the Option Holder an option (the "OPTION") to purchase ________
shares of Common Stock at a price per share of $________  (the "OPTION  PRICE").
The Option shall be exercisable  as set forth in EXHIBIT A attached  hereto (the
"VESTING SCHEDULE"). Notwithstanding anything in this Agreement to the contrary,
the Vesting  Schedule is subject to Section 4 herein and the Board of Directors,
in its sole discretion,  may waive the Vesting Schedule and, upon written notice
to the Option Holder,  accelerate the earliest date or dates in which any of the
Options granted  hereunder are  exercisable.  This Agreement and the purchase of
the shares of Common Stock  hereunder is intended and should be  interpreted  to
qualify as an Incentive  Stock Option as that term is used in Section 422 of the
Internal  Revenue  Code of 1986,  as it may be  amended  from  time to time (the
"INTERNAL  REVENUE  CODE"),  and any  provisions  of this  Agreement  are hereby
amended in their  entirety to any extent  necessary  to permit all Common  Stock
purchased  hereunder to qualify for  treatment as such under  Section 422 of the
Internal Revenue Code.

       2.     METHOD FOR EXERCISING THE OPTION. The vested portion of the Option
may be  exercised  in whole or in part only by  delivery  in  person or  through
certified or registered mail to the Company at its principal  office in Houston,
Texas (attention:  Corporate  Secretary) of written notice specifying the Option
that is being exercised and the number of shares of Common Stock with respect to
which the Option is being  exercised.  The notice must be accompanied by payment
of the total Option Price.

       The total Option  Price for the Common  Stock to be acquired  pursuant to
the  Option  shall  be  paid  in full  by any of the  following  methods  or any
combination of the following methods:

              (a)    In cash or by  certified  or  cashier's  check  payable  to
Gridline Communications Corp.

              (b)    The  delivery to the Company of  certificates  representing
the  number of shares of Common  Stock  then  owned by the  Option  Holder,  the
Designated  Value (defined below) of which equals the Option Price of the Common
Stock purchased  pursuant to the Option,  properly  endorsed for transfer to the
Company. (For purposes of this Agreement,  the Designated Value of any shares of
Common  Stock  delivered  in payment of the Option  Price upon  exercise  of the
Option shall be the  Designated  Value as of the exercise date, and the exercise
date shall be the day of delivery of the  certificates for the Common Stock used
as payment of the Option Price);

              (c)    The delivery to the Company of a properly  executed  notice
of  exercise  together  with  irrevocable  instructions  to a broker to  deliver
promptly to the Company, in

<PAGE>

payment of the Option  Price,  the  amount of the cash  proceeds  of the sale of
shares  of  Common  Stock  or a  loan  from  the  broker  to the  Option  Holder
sufficient, in each case, to pay the Option Price, and in a form satisfactory to
the Corporate Secretary; or

              (d)    The  delivery to the Company of  sufficient  Options  under
this Agreement,  properly  endorsed for transfer to the Company,  having a value
(determined  by  subtracting  the  Option  Price  from  the  Designated   Value)
sufficient  to pay the Option  Price with  respect to other  Options  under this
Agreement to be exercised.

              Upon such  notice to the  Corporate  Secretary  and payment of the
total Option Price,  the exercise of the Option shall be deemed to be effective,
and a properly  executed  certificate or  certificates  representing  the Common
Stock so  purchased  shall be issued by the Company and  delivered to the Option
Holder.

       For purposes of this Agreement,  the "DESIGNATED  VALUE" of the shares of
Common  Stock on a given date  shall  mean (i) if the Common  Stock is listed or
admitted for trading on any national  securities exchange or the National Market
System  of the  National  Association  of  Securities  Dealers,  Inc.  Automated
Quotation System, the last sale price, or if no sale occurred,  the mean between
the closing high bid and low asked  quotations for such date of the Common Stock
on the principal securities exchange on which shares of Common Stock are listed,
(ii) if Common  Stock is not traded on any national  securities  exchange but is
quoted  on the  National  Association  of  Securities  Dealers,  Inc.  Automated
Operations  System,  or  any  similar  system  of  automated   dissemination  of
quotations or securities prices in common use, the mean between the closing high
bid and low asked  quotations  for such day of the Common  Stock on such system,
(iii) if neither  clause (i) nor (ii) is  applicable,  the mean between the high
bid and low asked  quotations  for the Common  Stock as reported by the National
Quotation Bureau  Incorporated if at least two securities  dealers have inserted
both bid and asked quotations for shares of the Common Stock on at least five of
the ten  preceding  days, or (iv) if none of the  conditions  set forth above is
met, the fair market value of shares of Common Stock as determined by the Board.
Provided, for purposes of determining "fair market value" of the Common Stock of
the Company,  such value shall be determined  without regard to any  restriction
other than a  restriction  which will never  lapse.  In no event  shall the fair
market value of the Common Stock be less than its par value.

       3.     ADJUSTMENT OF THE OPTION.

              (a)    ADJUSTMENT BY STOCK SPLIT,  STOCK DIVIDEND,  ETC. If at any
time the Company increases or decreases the number of its outstanding  shares of
Common  Stock,  or changes in any way the  rights and  privileges  of its Common
Stock,  by means of the  payment of a stock  dividend or the making of any other
distribution on such shares payable in Common Stock, or through a stock split or
subdivision  of shares of Common Stock,  or a  consolidation  or  combination of
shares of  Common  Stock,  or  through a  reclassification  or  recapitalization
involving the Common Stock, the numbers,  rights and privileges of the shares of
Common Stock included in the Option shall be increased,  decreased or changed in
like manner as if such shares of Common  Stock had been issued and  outstanding,
fully paid and non-assessable at the time of such occurrence.

                                       2
<PAGE>

              (b)    OTHER  CHANGES IN STOCK.  In the event  there  shall be any
change,  other than as specified in the preceding subsection 3(a), in the number
or kind  of  outstanding  shares  of  Common  Stock  or of any  stock  or  other
securities  into which the Common  Stock  shall be changed or for which it shall
have been exchanged,  then and if the Board of Directors of the Company shall in
its discretion  determine that such change  equitably  requires an adjustment in
the number or kind of shares subject to the Option,  such  adjustments  shall be
made by the Board of Directors  and shall be effective  for all purposes of this
Agreement.

              (c)    APPORTIONMENT   OF  OPTION  PRICE.   Upon  any   occurrence
described in the preceding  subsections 3(a) and (b), the aggregate Option Price
for the shares of Common Stock then subject to the Option shall remain unchanged
and shall be  apportioned  ratably over the  increased  or  decreased  number or
changed kinds of securities or other properties subject to the Option.

       4.     CHANGE OF CONTROL; CORPORATE TRANSACTIONS.

              (a)    Unless  otherwise  agreed by the parties  involved,  in the
event of a Change of Control (as defined in the Plan), all outstanding  Options,
whether  exercisable or not, shall  immediately  vest and become  exercisable in
accordance with Section 17.2 of the Plan.

              (b)    If the  Company  recapitalizes  or  otherwise  changes  its
capital structure, or merges, consolidates, sells all of its assets or dissolves
and such  transaction  is not a Change  of  Control,  then  thereafter  upon any
exercise of the Option  hereunder,  the  Optionee  shall be entitled to purchase
under the  Option,  in lieu of the number of shares of Common  Stock  covered by
this  Option  then  exercisable,  the  number  and  class of shares of stock and
securities to which the Optionee would have been entitled  pursuant to the terms
of the agreement of merger,  consolidation,  sale of assets or dissolution,  if,
immediately prior to such agreement of merger, consolidation,  sale of assets or
dissolution,  the Optionee had been the holder of record of the number of shares
of Common Stock as to which the Option is then exercisable.

       5.     EXPIRATION AND TERMINATION OF THE OPTION.  The Option shall expire
at 5:00 p.m.  Houston,  Texas,  time on the fifth  anniversary of the Grant Date
(the period from the date of this Agreement to the expiration date is defined as
the "OPTION PERIOD") or prior to such time as follows:

              (a)    Upon  termination  of the  employment  of the Option Holder
with the Company for any reason other than death or  termination  by the Company
without  "Cause"  (as  defined in the  Employment  Agreement  between the Option
Holder and the Company),  the Options  exercisable as of the date of termination
may be  exercised  by Option  Holder  within  three months after the date of the
termination  of employment of the Option Holder with the Company  (provided such
Options are exercised prior to their expiration date).

              (b)    Upon  termination  of the  employment  of the Option Holder
with the  Company  by reason  of the death of the  Option  Holder,  the  Options
exercisable as of the date of the Option  Holder's death may be exercised by the
Option  Holder's  estate or by the person who acquired the right to exercise the
Option by bequest or inheritance. Such Options shall not be

                                       3
<PAGE>

exercisable  after the date they expire or more than six months from the date of
the Option Holder's death, whichever first occurs.

              (c)    Upon  termination  of the  employment  of the Option Holder
with the Company by the Company  without  "Cause" (as defined in the  Employment
Agreement  between the Option Holder and the Company) all  outstanding  Options,
whether  exercisable or not, shall immediately vest and become exercisable as of
the date of  termination  and may be exercised by the Option Holder within three
months after the date of  termination  of employment  (provided such Options are
exercised prior to their expiration date).

       6.     TRANSFERABILITY.  The Option may not be transferred except by will
or pursuant to the laws of descent and distribution, and it shall be exercisable
during the Option  Holder's life only by him, or in the event of his  disability
or incapacity, by his personal representative,  and after his death, only by his
estate or by the person who acquired the right to exercise the Option by bequest
or inheritance.

       7.     COMPLIANCE  WITH  SECURITIES  LAWS.  Upon the  acquisition  of any
shares pursuant to the exercise of the Option herein  granted,  Option holder or
any  person   acting   under   Section   5(b)  will  enter  into  such   written
representations, warranties and agreements as the Company may reasonably request
in order to comply with applicable securities laws or with this Agreement.

       8.     LEGENDS ON CERTIFICATES.  The Certificates representing the shares
of Common Stock  purchased by exercise of an Option will be stamped or otherwise
imprinted  with  legends in such form as the  Company or its counsel may require
with respect to any  applicable  restrictions  on sale or transfer and the stock
transfer  records of the Company will reflect  stop-transfer  instructions  with
respect to such shares.

       9.     WITHHOLDING.

              (a)    ARRANGEMENT  FOR  WITHHOLDING.  The  Option  Holder  hereby
agrees to make  appropriate  arrangements  with the  Company to provide  for the
amount  of  additional  tax  withholding  under  Sections  3102  and 3402 of the
Internal  Revenue Code and  applicable  state income tax laws resulting from the
exercise  of the  Option.  If such  arrangements  are not made,  the Company may
refuse to issue any Common Stock to the Option Holder.

              (b)    WITHHOLDING  ELECTION.  The Option  Holder may elect to pay
all such  amounts  of tax  withholding,  or any part  thereof,  by  electing  to
transfer to the Company,  or to have the Company  withhold from shares otherwise
issuable to the Option  Holder,  shares of Common  Stock having a value equal to
the amount  required to be  withheld or such lesser  amount as may be elected by
the Option Holder. All elections shall be subject to the approval or disapproval
of the Board of  Directors.  The value of shares of Common  Stock to be withheld
shall be based on the Designated  Value of the Common Stock on the date that the
amount of tax to be  withheld is to be  determined  (the "TAX  DATE").  Any such
election by the Option  Holder to have shares of Common Stock  withheld for this
purpose will be subject to the following restrictions:

                                       4
<PAGE>

                     (i)    All elections must be made prior to the Tax Date.

                     (ii)   All elections shall be irrevocable.

                     (iii)  If the Option  Holder is an officer or  director  of
the Company within the meaning of Section 16 of the  Securities  Exchange Act of
1934,  as  amended,   ("SECTION   16"),  the  Option  Holder  must  satisfy  the
requirements of such Section 16 and any applicable rules thereunder with respect
to the use of Common  Stock as  consideration  to satisfy  such tax  withholding
obligation.

       11.    MISCELLANEOUS.

              (a)    NOTICES. Any notice required or permitted to be given under
this Agreement shall be in writing and shall be given by first class  registered
or certified mail,  postage prepaid,  or by personal delivery to the appropriate
party, addressed:

                     (i)    If to the Company,  to the Company at its  principal
place of business as of the date hereof, 14505 Torrey Chase, Suite 400, Houston,
Texas 77014  (Attention:  Corporate  Secretary)  or at such other address as may
have been furnished to the Option Holder in writing by the Company; or

                     (ii)   If to the Option Holder, to the Option Holder at his
address  on file with the  Company  or at such  other  address  as may have been
furnished to the Company by the Option Holder.

              Any such  notice  shall be  deemed  to have  been  given as of the
fourth day after deposit in the United States Postal Service,  postage  prepaid,
properly  addressed as set forth above,  in the case of mailed notice,  or as of
the date delivered in the case of personal delivery.

              (b)    AMENDMENT.  The Board of Directors may make any  adjustment
in the Option  Price,  the number of shares of Common  Stock  subject to, or the
terms of the Option by amendment or by  substitution  of an outstanding  Option.
Such amendment or  substitution  may result in terms and  conditions  (including
Option Price, the number of shares of Common Stock covered,  Vesting Schedule or
Option  Period) that differ from the terms and  conditions  of this Option.  The
Board of Directors may not,  however,  adversely affect the rights of the Option
Holder without the consent of the Option Holder.  If such action is effective by
amendment, the effective date of such amendment will be the date of the original
grant of this  Option.  Except as provided  herein,  this  Agreement  may not be
amended or  otherwise  modified  unless  evidenced  in writing and signed by the
Company and the Option Holder.

              (c)    SEVERABILITY.  The  invalidity or  unenforceability  of any
provision of this Agreement shall not affect the validity or  enforceability  of
any  other  provision  of this  Agreement,  and  each  other  provision  of this
Agreement shall be severable and enforceable to the extent permitted by law.

              (d)    WAIVER.  Any provision  contained in this  Agreement may be
waived, either generally or in any particular instance, by the Company.

                                       5
<PAGE>

              (e)    BINDING  EFFECT.  This Agreement  shall be binding upon and
inure to the benefit of the Company and the Option  Holder and their  respective
heirs, executors, administrators, legal representatives, successors and assigns.

              (f)    RIGHTS TO EMPLOYMENT.  Nothing  contained in this Agreement
shall be construed  as giving the Option  Holder any right to be retained in the
employ of the Company and this  Agreement  is limited  solely to  governing  the
rights and obligations of the Option Holder with respect to the Common Stock and
the Option.

              (g)    GENDER AND NUMBER.  Except when otherwise  indicated by the
context,  the masculine gender shall also include the feminine  gender,  and the
definition of any term herein in the singular shall also include the plural.

              (h)    GOVERNING  LAW.  This  Agreement  shall be  governed by and
construed in accordance  with the laws of the State of Delaware  without  giving
effect to the conflicts of laws provisions thereof.

                                       6
<PAGE>

       IN WITNESS  WHEREOF,  the parties have executed this  Agreement as of the
day and year first above written.

                            GRIDLINE COMMUNICATIONS CORP.

                            By:
                               -------------------------------------------------
                            Printed Name:
                                         ---------------------------------------
                            Title:
                                  ----------------------------------------------

                            OPTION HOLDER

                            Printed Name:
                                         ---------------------------------------

                                       7
<PAGE>

                                    EXHIBIT A
                                VESTING SCHEDULE
                                 (FOR EMPLOYEES)

         CONDITIONS TO VESTING                                AMOUNT EXERCISABLE

-------------------------------- --------------- -------------------------------
Upon the continuous employment                    Cumulative proportion of
of Option Holder by the Company                   the Stock as to all or part
from the grant date through the                   of which the Option can be
applicable date indicated below:                  exercised after satisfaction
                                                  of the respective conditions
                                                  to vesting:

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

1.  The First Anniversary of                              50 percent
    the Grant Date
-------------------------------- --------------- -------------------------------

2.  The Second Anniversary of                            100 percent
    the Grant Date
-------------------------------- --------------- -------------------------------

                                       8
<PAGE>

                                    EXHIBIT A
                                VESTING SCHEDULE
                                 (FOR DIRECTORS)

       Any options granted to the Director hereunder shall vest immediately upon
the execution of this Option Agreement by the Company and the Director.

                                       9
<PAGE>

                       NONQUALIFIED STOCK OPTION AGREEMENT

       THIS  AGREEMENT  made  effective  as of  ________________,  2004  between
Gridline  Communications  Corp., a Delaware  corporation  (the  "COMPANY"),  and
_______________  (the "OPTION HOLDER")  relating to an option to purchase shares
of the Company's common stock, par value [$0.001] per share ("COMMON STOCK").

       1.     GRANT OF  OPTION.  Subject  to the  terms and  conditions  of this
Agreement and the Company's 2004 Equity Incentive Plan (the "PLAN"), the Company
hereby  grants to the Option  Holder  effective as of  _____________,  2004 (the
"GRANT DATE") an option (the "OPTION") to purchase  ____________shares of Common
Stock. The Option shall be exercisable,  in whole or in part,  during the Option
Period (as  hereinafter  defined) at an exercise price of [$____] per share (the
"OPTION  PRICE").  This Agreement and the purchase of the shares of Common Stock
hereunder  is not  intended  and  should  not be  interpreted  to  qualify as an
Incentive  Stock  Option as that  term is used in  Section  422 of the  Internal
Revenue  Code of 1986,  as it may be  amended  from time to time (the  "INTERNAL
REVENUE CODE").

       2.     METHOD FOR EXERCISING  THE OPTION.  The Option may be exercised in
whole or in part only by delivery in person or through  certified or  registered
mail to the  Company  at its  principal  office in  Houston,  Texas  (attention:
Corporate  Secretary)  of written  notice  specifying  the Option  that is being
exercised  and the number of shares of Common  Stock  with  respect to which the
Option is being  exercised.  The notice  must be  accompanied  by payment of the
total Option Price.

       The total Option  Price for the Common  Stock to be acquired  pursuant to
the  Option  shall  be  paid  in full  by any of the  following  methods  or any
combination of the following methods:

              (a)    In cash or by certified or cashier's  check  payable to the
order of Gridline Communications Corp.;

              (b)    The  delivery to the Company of  certificates  representing
the  number of shares of Common  Stock  then  owned by the  Option  Holder,  the
Designated  Value (defined below) of which equals the Option Price of the Common
Stock purchased  pursuant to the Option,  properly  endorsed for transfer to the
Company;  PROVIDED,  HOWEVER, that no Option may be exercised by delivery to the
Company of certificates  representing Common Stock, unless such Common Stock has
been held by the Option  Holder for more than six months.  (For purposes of this
Agreement,  the  Designated  Value of any shares of Common  Stock  delivered  in
payment of the Option Price upon exercise of the Option shall be the  Designated
Value  as of the  exercise  date,  and the  exercise  date  shall  be the day of
delivery of the  certificates for the Common Stock used as payment of the Option
Price); or

              (c)    By delivery to the Company of a properly executed notice of
exercise together with irrevocable  instructions to a broker to deliver promptly
to the Company,  in payment of the Option Price, the amount of the cash proceeds
of the sale of shares of Common

                                       1
<PAGE>

Stock or a loan from the broker to the Option Holder  sufficient,  in each case,
to pay the Option Price, and in a form satisfactory to the Corporate Secretary.

              (d)    By delivery to the Company of sufficient Options,  properly
endorsed  for  transfer to the  Company,  having a value  sufficient  to pay the
Option  Price with respect to the other  Options that are to be exercised  under
this  Agreement.  The value of each Option to be  surrendered  in payment of the
Option  Price  shall be  determined  by  subtracting  the Option  Price from the
Designated  Value as of the date of  receipt  of notice of the  exercise  of the
Options by the Corporate Secretary of the Company.

              Upon such  notice to the  Corporate  Secretary  and payment of the
total Option Price,  the exercise of the Option shall be deemed to be effective,
and a properly  executed  certificate or  certificates  representing  the Common
Stock so  purchased  shall be issued by the Company and  delivered to the Option
Holder.

       For purposes of this Agreement,  the "DESIGNATED  VALUE" of the shares of
Common  Stock on a given date  shall  mean (i) if the Common  Stock is listed or
admitted for trading on any national  securities exchange or the National Market
System  of the  National  Association  of  Securities  Dealers,  Inc.  Automated
Quotation System, the last sale price, or if no sale occurred,  the mean between
the closing high bid and low asked  quotations for such date of the Common Stock
on the principal securities exchange on which shares of Common Stock are listed,
(ii) if Common  Stock is not traded on any national  securities  exchange but is
quoted  on the  National  Association  of  Securities  Dealers,  Inc.  Automated
Operations  System,  or  any  similar  system  of  automated   dissemination  of
quotations or securities prices in common use, the mean between the closing high
bid and low asked  quotations  for such day of the Common  Stock on such system,
(iii) if neither  clause (i) nor (ii) is  applicable,  the mean between the high
bid and low asked  quotations  for the Common  Stock as reported by the National
Quotation Bureau  Incorporated if at least two securities  dealers have inserted
both bid and asked  quotations  for shares of the Common  Stock on at least five
(5) of the ten (10) preceding  days, or (iv) if none of the conditions set forth
above is met, the fair market value of shares of Common Stock as  determined  by
the Board.  Provided,  for purposes of  determining  "fair market  value" of the
Common Stock of the Company,  such value shall be determined  without  regard to
any  restriction  other than a restriction  which will never lapse.  In no event
shall the fair market value of the Common Stock be less than its par value.

       3.     ADJUSTMENT OF THE OPTION.

              (a)    ADJUSTMENT BY STOCK SPLIT,  STOCK DIVIDEND,  ETC. If at any
time the Company increases or decreases the number of its outstanding  shares of
Common  Stock,  or changes in any way the  rights and  privileges  of its Common
Stock,  by means of the  payment of a stock  dividend or the making of any other
distribution on such shares payable in Common Stock, or through a stock split or
subdivision  of shares of Common Stock,  or a  consolidation  or  combination of
shares of  Common  Stock,  or  through a  reclassification  or  recapitalization
involving the Common Stock, the numbers,  rights and privileges of the shares of
Common Stock included in the Option shall be increased,  decreased or changed in
like manner as if such shares of Common  Stock had been issued and  outstanding,
fully paid and non-assessable at the time of such occurrence.

                                       2
<PAGE>

              (b)    DIVIDENDS PAYABLE IN STOCK OF ANOTHER CORPORATION,  ETC. If
at any time the Company  pays or makes any dividend or other  distribution  upon
its Common Stock payable in securities or other property (except money or Common
Stock),  a proportionate  part of such securities or other property shall be set
aside and  delivered  to the Option  Holder upon  issuance  of the Common  Stock
purchased at the time of the exercise of the Option.  The  securities  and other
property  delivered to the Option Holder upon exercise of the Option shall be in
the same ratio to the total  securities  and  property  set aside for the Option
Holder as the number of shares of Common  Stock with respect to which the Option
is then  exercised is to the total shares of Common Stock subject to the Option.
Prior to the time that any such  securities  or other  property are delivered to
the Option Holder in  accordance  with the  foregoing,  the Company shall be the
owner of such  securities or other property and Option Holder shall not have the
right to vote the securities,  receive any dividends payable on such securities,
or in any other respect be treated as the owner. If securities or other property
which have been set aside by the Company in  accordance  with this Section 3 are
not delivered to the Option  Holder  because the Option is not  exercised,  then
such  securities or other  property shall remain the property of the Company and
shall be dealt with by the Company as it shall determine in its sole discretion.

              (c)    OTHER  CHANGES IN STOCK.  In the event  there  shall be any
change,  other than as specified in the preceding  subsections  3(a) and (b), in
the  number or kind of  outstanding  shares  of Common  Stock or of any stock or
other  securities  into which the Common  Stock shall be changed or for which it
shall have been  exchanged,  then and if the Board of  Directors  of the Company
shall in its  discretion  determine  that  such  change  equitably  requires  an
adjustment  in the  number  or  kind  of  shares  subject  to the  Option,  such
adjustments  shall be made by the Board of Directors  and shall be effective for
all purposes as of this Agreement.

              (d)    APPORTIONMENT   OF  OPTION  PRICE.   Upon  any   occurrence
described in the preceding  subsections 3(a), (b), and (c), the aggregate Option
Price for the shares of Common  Stock then  subject to the Option  shall  remain
unchanged  and shall be  apportioned  ratably  over the  increased  or decreased
number or changed kinds of securities or other properties subject to the Option.

       4.     CHANGE  OF   CONTROL;   TERMINATION   WITHOUT   CAUSE;   CORPORATE
TRANSACTIONS.

              (a)    In the  event of a Change of  Control  (as  defined  in the
Plan), all outstanding  Options,  whether  exercisable or not, shall immediately
become exercisable in accordance with Section 17.2 of the Plan.

              (b)    If the  Company  recapitalizes  or  otherwise  changes  its
capital structure, or merges, consolidates, sells all of its assets or dissolves
and such  transaction  is not a Change  of  Control,  then  thereafter  upon any
exercise of the Option  hereunder,  the  Optionee  shall be entitled to purchase
under the  Option,  in lieu of the number of shares of Common  Stock  covered by
this  Option  then  exercisable,  the  number  and  class of shares of stock and
securities to which the Optionee would have been entitled  pursuant to the terms
of the agreement of merger,  consolidation,  sale of assets or dissolution,  if,
immediately prior to such agreement of merger, consolidation,  sale of assets or
dissolution,  the Optionee had been the holder of record of the number of shares
of Common Stock as to which the Option is then exercisable.

                                       3
<PAGE>

       5.     EXPIRATION AND TERMINATION OF THE OPTION.  The Option shall expire
at 5:00 p.m. Houston,  Texas, time on ___________,  (the period from the date of
this Agreement to the expiration date is defined as the "OPTION PERIOD"). In the
event of the death of the Option  Holder  during the Option  Period,  the Option
shall be exercisable by the Option Holder's estate or by the person who acquired
the right to  exercise  the Option by bequest or  inheritance  during the Option
Period  and for a period of up to six months  following  the death of the Option
Holder, if later.

       6.     TRANSFERABILITY.  The Option may not be transferred except by will
or pursuant to the laws of descent and distribution, and it shall be exercisable
during the Option  Holder's life only by him, or in the event of his  disability
or incapacity, by his personal representative,  and after his death, only by his
estate or by the person who acquired the right to exercise the Option by bequest
or inheritance.

       7.     COMPLIANCE  WITH  SECURITIES  LAWS.  Upon the  acquisition  of any
shares pursuant to the exercise of the Option herein  granted,  Option holder or
any person acting under Section 5 will enter into such written  representations,
warranties  and  agreements  as the Company may  reasonably  request in order to
comply with applicable securities laws or with this Agreement.

       8.     LEGENDS ON CERTIFICATES.  The Certificates representing the shares
of Common Stock  purchased by exercise of an Option will be stamped or otherwise
imprinted  with  legends in such form as the  Company or its counsel may require
with respect to any  applicable  restrictions  on sale or transfer and the stock
transfer records of the Company will reflect  stock-transfer  instructions  with
respect to such shares.

       9.     WITHHOLDING.

              (a)    ARRANGEMENT  FOR  WITHHOLDING.  The  Option  Holder  hereby
agrees to make  appropriate  arrangements  with the  Company to provide  for the
amount of tax withholding, if any, under applicable federal and state income tax
laws resulting  from the exercise of the Option.  If such  arrangements  are not
made, the Company may refuse to issue any Common Stock to the Option Holder.

              (b)    WITHHOLDING  ELECTION.  The Option  Holder may elect to pay
all such  amounts  of tax  withholding,  or any part  thereof,  by  electing  to
transfer to the Company,  or to have the Company  withhold from shares otherwise
issuable to the Option  Holder,  shares of Common  Stock having a value equal to
the amount  required to be  withheld or such lesser  amount as may be elected by
the Option Holder. All elections shall be subject to the approval or disapproval
of the Board of  Directors.  The value of shares of Common  Stock to be withheld
shall be based on the Designated  Value of the Common Stock on the date that the
amount of tax to be  withheld is to be  determined  (the "TAX  DATE").  Any such
election by the Option  Holder to have shares of Common Stock  withheld for this
purpose will be subject to the following restrictions:

                     (i)    All elections must be made prior to the Tax Date.

                     (ii)   All elections shall be irrevocable.

                                       4
<PAGE>

                     (iii)  If the Option  Holder is an officer or  director  of
the Company within the meaning of Section 16 of the  Securities  Exchange Act of
1934,  as  amended,   ("SECTION   16"),  the  Option  Holder  must  satisfy  the
requirements of such Section 16 and any applicable rules thereunder with respect
to the use of Common  Stock as  consideration  to satisfy  such tax  withholding
obligation.

       10.    MISCELLANEOUS.

              (a)    NOTICES. Any notice required or permitted to be given under
this Agreement shall be in writing and shall be given by first class  registered
or certified mail,  postage prepaid,  or by personal delivery to the appropriate
party, addressed:

                     (i)    If to the Company,  to the Company at its  principal
place of  business  (as of the date  hereof,  14505  Torrey  Chase,  Suite  400,
Houston, Texas 77014) (Attention:  Corporate Secretary) or at such other address
as may have been furnished to the Option Holder in writing by the Company; or

                     (ii)   If to the Option Holder, to the Option Holder at his
address  on file with the  Company  or at such  other  address  as may have been
furnished to the Company by the Option Holder.

              Any such  notice  shall be  deemed  to have  been  given as of the
fourth day after deposit in the United States Postal Service,  postage  prepaid,
properly  addressed as set forth above,  in the case of mailed notice,  or as of
the date delivered in the case of personal delivery.

              (b)    AMENDMENT.  The Board of Directors may make any  adjustment
in the Option  Price,  the number of shares of Common  Stock  subject to, or the
terms of the Option by amendment or by  substitution  of an outstanding  Option.
Such amendment or  substitution  may result in terms and  conditions  (including
Option Price,  the number of shares of Common Stock  covered,  or Option Period)
that differ from the terms and conditions of this Option. The Board of Directors
may not,  however,  adversely affect the rights of the Option Holder without the
consent of the Option  Holder.  If such action is  effective by  amendment,  the
effective  date of such amendment will be the date of the original grant of this
Option.  Except  as  provided  herein,  this  Agreement  may not be  amended  or
otherwise modified unless evidenced in writing and signed by the Company and the
Option Holder.

              (c)    SEVERABILITY.  The  invalidity or  unenforceability  of any
provision of this Agreement shall not affect the validity or  enforceability  of
any  other  provision  of this  Agreement,  and  each  other  provision  of this
Agreement shall be severable and enforceable to the extent permitted by law.

              (d)    WAIVER.  Any provision  contained in this  Agreement may be
waived, either generally or in any particular instance, by the Company.

              (e)    BINDING  EFFECT.  This Agreement  shall be binding upon and
inure to the benefit of the Company and the Option  Holder and their  respective
heirs, executors, administrators, legal representatives, successors and assigns.

                                       5
<PAGE>

              (f)    RIGHTS TO EMPLOYMENT.  Nothing  contained in this Agreement
shall be construed  as giving the Option  Holder any right to be retained in the
employ of the Company and this  Agreement  is limited  solely to  governing  the
rights and obligations of the Option Holder with respect to the Common Stock and
the Option.

              (g)    GENDER AND NUMBER.  Except when otherwise  indicated by the
context,  the masculine gender shall also include the feminine  gender,  and the
definition of any term herein in the singular shall also include the plural.

              (h)    GOVERNING  LAW.  This  Agreement  shall be  governed by and
construed in accordance  with the laws of the State of Delaware  without  giving
effect to the conflicts of laws provisions thereof.

                                       6
<PAGE>

       IN WITNESS  WHEREOF,  the parties have executed this  Agreement as of the
day and year first above written.

                                        GRIDLINE COMMUNICATIONS CORP.

                                        By:
                                              ----------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                              ----------------------------------

                                        OPTION HOLDER

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

                                       7

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