Document:

[EXHIBIT 10.5]

  BOARD RESOLUTION ESTABLISHING AND APPROVING THE DESIGNATION,
PREFERENCES AND RIGHTS OF SERIES 1 CONVERTIBLE PREFERENCE SHARES
                               OF
                SIX DIAMOND RESORTS INTERNATIONAL

A meeting of the Board of Directors of Six Diamond Resorts
International (the "Company") held on the 1st day of August, 2007
                    -------

PRESENT:  Joseph Rozelle, President and Chairman  of the Company.
          David Richardson, Director of the Company

By agreement Joe Rozelle acted as Chairman of the meeting and
David Richardson acted as Secretary.

Notice of Quorum

The Chairman noted that due notice of the meeting had been given
that all directors were present in person and/or by phone that
the meeting could proceed to business.

     That pursuant to the authority conferred, granted and vested
upon  the  Board  of  Directors by  the  Members  &  Articles  of
Association  of Six Diamond Resorts International (the  "Articles
                                                         --------
of Association"), and in accordance with the Companies Law of the
--------------
Cayman  Islands (2004 Revision), the said Board of Directors,  as
of  August  1 2007 adopted the following resolutions  creating  a
series  of  Twenty-Five Million (25,000,000) shares of Preference
Shares,  designated as "Series 1 Convertible Preference  Shares,"
none of which shares have been issued;

     RESOLVED,  that the Company is authorized to  issue  Twenty-
five  million  (25,000,000) shares of its  Series  1  Convertible
Preference Shares (the "Series 1 Preference Shares"),  par  value
                        --------------------------
$0.000320375   per   share,  which   shall   have   the   powers,
designations,  preferences and other  special  rights  set  forth
below.  The  term  "Preference Shares" shall mean  the  Series  1
                    -----------------
Convertible Preference Shares.

     (1)  Voting Rights.  Except as otherwise provided herein, in the
          -------------
Articles of Association or as required by law, the holders of the
Preference   Shares  (each  a  "Holder"  and   collectively   the
                                ------
"Holders") and the holders of the Company's Ordinary Shares,  par
 -------
value  $0.00320375 per share (the "Ordinary Shares")  shall  vote
                                   ---------------
together as a single class with each Preference Share having  the
number  of  votes equal to the largest whole number  of  Ordinary
Shares  into  which such Preference Share could be converted,  at
the  record  date  for  the  determination  of  the  stockholders
entitled  to vote on such matters or, if no such record  date  is
established, at the date such vote is taken.

<PAGE>

     (2)  Stated Value.  Each Series 1 Preference Share shall have a
          ------------
"Stated  Value"  equal  to  One Dollar  and  Seventy  Five  Cents
 -------------
($1.75).

     (3)  Conversion of Preference Shares. Preference Shares shall be
convertible into Ordinary Shares on the terms and conditions  set
forth in this Section 3.  The term "Conversion Shares" shall mean
              ---------             -----------------
the  Ordinary  Shares issuable upon conversion of  the  Series  1
Preference Shares.  The Company shall not issue any fraction of a
Ordinary   Share  upon  any  conversion.   All  Ordinary   Shares
(including  fractions thereof) issuable upon conversion  of  more
than  one  Preference Share by a Holder shall be  aggregated  for
purposes  of determining whether the conversion would  result  in
the  issuance  of a fraction of a Ordinary Share. If,  after  the
aforementioned  aggregation, the issuance  would  result  in  the
issuance of a fraction of a Ordinary Share, the Company shall, in
lieu  of  issuing such fractional share, issue one whole Ordinary
Share  to the Holder thereof. The Company shall pay any  and  all
taxes  that  may  be  payable with respect to  the  issuance  and
delivery of Ordinary Shares upon conversion of Preference  Shares
unless  such  taxes result from the issuance of  Ordinary  Shares
upon conversion to a person other than the Holder.

          (a)  Optional Conversion.  With respect to each Series 1
               -------------------
Preference  Share, at any time or times on or after the  date  of
issuance  of such Series 1 Preference Shares (such date for  each
Series  1  Preference  Share  hereinafter  referred  to  as   the
"Original  Issuance  Date"),  any Holder  shall  be  entitled  to
 ------------------------
convert  all  or a portion of such Holder's Series  1  Preference
Shares  into fully paid and non-assessable Ordinary Shares  (each
an  "Optional Conversion"), in accordance with this Section 3(a),
     -------------------                            -------------
Section 3(c) and Section 3(d).
-----------------------------

          (b)  Mandatory Conversion.  The Series 1 Preference Shares
               --------------------
shall automatically convert  into Ordinary Shares (the "Mandatory
Conversion"), in accordance with this Section 3(b), Section  3(c)
                                      ------------  -------------
and Section 3(d), on December 31, 2010 (the "Mandatory Conversion
    ------------                             --------------------
Date").
----
          (c)  Conversion Price.  Subject to anti-dilution adjustment
               ----------------
as provided in Section 3(e), upon an Optional Conversion pursuant to
               ------------
Section 3(a) or a Mandatory Conversion pursuant to Section  3(b),
------------                                       -------------
the  conversion price (the "Conversion Price") of each  Series  1
                            ----------------
Preference Share shall equal $1.75. Upon a conversion pursuant to
Section 3(a) or Section 3(b), all accrued and unpaid dividends on
------------    ------------
the  Series  1  Preference Shares through the date of  conversion
shall  be paid in additional Ordinary Shares as if such dividends
had  been paid in additional shares of Series 1 Preference Shares
rounded  up  to  the nearest whole number, and then automatically
converted into additional Ordinary Shares in accordance with  and
pursuant  to the terms set forth herein. Each Series 1 Preference
Share will convert into that number of Ordinary Shares determined
by dividing the Stated Value by the Conversion Price, as adjusted
at the time of conversion.

          (d)  Mechanics of Conversion.
               -----------------------

      (i)  To convert Series 1 Preference Shares into Conversion Shares
   pursuant to Section 3(a) on any date, the Holder thereof shall
               ------------
   (i) transmit by facsimile (or otherwise deliver), for receipt on
   or prior to 11:59 p.m. Eastern Time on such date, a copy of an
   executed notice of conversion (the "Optional Conversion Notice")
                                       --------------------------

                                  2
<PAGE>

   to  the  Company, and (ii) surrender to a common  carrier  for
   delivery to the Company within three (3) business days of such
   date the Preference Shares Certificates (as hereinafter defined)
   representing the Series 1 Preference Shares being converted (or
   an indemnification undertaking with respect to such shares in the
   case of their loss, theft or destruction).  The term "Preference
                                                         ----------
   Shares  Certificates"  shall mean  the  original  certificates
   --------------------
   representing the Series 1 Preference Shares.

      (ii) Preference Shares converted pursuant to Section 3(b) shall
                                                   ------------
   be  deemed to be converted as of the Mandatory Conversion Date
   notwithstanding  the  date  on  which  the  Preference  Shares
   Certificates representing the Preference Shares being converted
   (or an indemnification undertaking with respect to such shares in
   the case of their loss, theft or destruction), are submitted to
   the  Company  in  connection with such  conversion,  and  such
   Preference Shares Certificates shall be deemed to represent the
   right to receive Conversion Shares.  To receive Conversion Shares
   subsequent  to a Mandatory Conversion, each Holder  shall  (i)
   transmit  by  facsimile (or otherwise deliver) a  copy  of  an
   executed notice of conversion (the "Mandatory Conversion Notice")
                                       ---------------------------
   to  the  Company, and (ii) surrender to a common  carrier  for
   delivery to the Company within three (3) business days of such
   facsimile  transmission or delivery such  Holder's  Preference
   Shares Certificates.

      (iii)  On or before the third (3rd) Business Day following the
   date  of  receipt  of a fully executed and completed  Optional
   Conversion  Notice  or  Mandatory Conversion  Notice  (each  a
   "Conversion Notice"), the Company shall (x) issue and deliver to
    -----------------
   the address as specified in the Conversion Notice, a certificate,
   registered in the name of the Holder or its designee, for  the
   number of Ordinary Shares to which the Holder shall be entitled,
   or (y) provided that the Conversion Shares have been registered
   under the Securities Act, upon the request of a Holder, credit
   such  aggregate number of Ordinary Shares to which the  Holder
   shall  be entitled to such Holder's or its designee's  balance
   account  with the Depository Trust Company through its Deposit
   Withdrawal Agent Commission system. If the number of Preference
   Shares  represented  by  the Preference Shares  Certificate(s)
   submitted for conversion pursuant to Section 3(d)(i) is greater
                                        ---------------
   than the number of Preference Shares being converted, then the
   Company shall, as soon as practicable and in no event later than
   three (3) business days after receipt of the Preference Shares
   Certificate(s) and at its own expense, issue and deliver to the
   Holder thereof a new preference shares certificate representing
   the  number of Preference Shares not converted. The person  or
   persons entitled to receive the Ordinary Shares issuable upon a
   conversion of Preference Shares shall be treated for all purposes
   as the record holder or holders of such Ordinary Shares on the
   applicable conversion date.

          (e)  Anti-Dilution Provisions. The Conversion Price in effect
   at any  time  and  the number and kind of securities  issuable  upon
   conversion   of  the  Preference  Shares  shall  be  subject   to
   adjustment from time to time upon the happening of certain events
   as follows:

      (i)  Adjustment for Stock Splits and Combinations. If the Company
           --------------------------------------------
   at  any  time  or from time to time on or after  the  Original
   Issuance Date effects a subdivision of the outstanding Ordinary
   Shares, the Conversion Price then in effect immediately before
   that  subdivision  shall  be  proportionately  decreased,  and
   conversely, if the Company at any time or from time to time on or
   after  the  Original  Issuance Date combines  the  outstanding

                                  3
<PAGE>

   Ordinary Shares into a smaller number of shares, the Conversion
   Price then in effect immediately before the combination shall be
   proportionately increased.  Any adjustment under this  Section
                                                          -------
   3(e)(i) shall become effective at the close of business on the
   -------
   date the subdivision or combination becomes effective.

                  (ii)  Adjustment  for  Certain  Dividends   and
                        -----------------------------------------
   Distributions.  If the Company at any time  or  from  time  to
   --------------
   time  on or after the Original Issuance Date makes or fixes  a
   record  date  for  the  determination of holders  of  Ordinary
   Shares  entitled  to receive a dividend or other  distribution
   payable  in additional Ordinary Shares, then and in each  such
   event  the  Conversion Price then in effect shall be decreased
   as  of  the time of such issuance or, in the event such record
   date  is  fixed,  as of the close of business on  such  record
   date, by multiplying the Conversion Price then in effect by  a
   fraction  (1)  the numerator of which is the total  number  of
   Ordinary  Shares issued and outstanding immediately  prior  to
   the  time  of such issuance or the close of business  on  such
   record  date  and (2) the denominator of which  shall  be  the
   total   number  of  Ordinary  Shares  issued  and  outstanding
   immediately  prior to the time of such issuance or  the  close
   of  business  on such record date plus the number of  Ordinary
   Shares  issuable in payment of such dividend or  distribution;
   provided, however, that if such record date is fixed and  such
   --------  -------
   dividend  is  not  fully paid or if such distribution  is  not
   fully  made  on the date fixed therefor, the Conversion  Price
   shall  be  recomputed accordingly as of the close of  business
   on  such record date and thereafter the Conversion Price shall
   be  adjusted pursuant to this Section 3(e)(ii) as of the  time
                                 ----------------
   of actual payment of such dividends or distributions.

                  (iii)    Adjustments for Other Dividends  and
                           ------------------------------------
   Distributions. In the event the Company at any  time  or  from
   -------------
   time  to time on or after the Original Issuance Date makes  or
   fixes  a  record  date  for the determination  of  holders  of
   Ordinary  Shares  entitled  to receive  a  dividend  or  other
   distribution payable in securities of the Company  other  than
   Ordinary  Shares, then and in each such event provision  shall
   be  made  so  that  the Holders shall receive upon  conversion
   thereof,  in  addition  to  the  number  of  Ordinary   Shares
   receivable thereupon, the amount of securities of the  Company
   which  they  would  have received had their Preference  Shares
   been  converted into Ordinary Shares on the date of such event
   and  had  they thereafter, during the period from the date  of
   such  event  to  and including the conversion  date,  retained
   such  securities receivable by them as aforesaid  during  such
   period,  subject  to all other adjustments called  for  during
   such  period  under  this Section 3(e)  with  respect  to  the
                             ------------
   rights of the Holders.

                  (iv)  Adjustment for Reclassification, Exchange
                        -----------------------------------------
   and  Substitution. In the event that at any time or from  time
   -----------------
   to   time  on  or  after  the  Original  Issuance  Date,   the
   Conversion  Shares are changed into the same  or  a  different
   number of shares of any class or classes of stock, whether  by
   recapitalization, reclassification or otherwise (other than  a
   subdivision  or combination of shares or stock dividend  or  a
   reorganization,  merger,  consolidation  or  sale  of  assets,
   provided for elsewhere in this Section 3(e)), then and in  any
                                  -------------
   such  event  each  Holder shall have the right  thereafter  to
   convert  such  stock  into the kind and amount  of  stock  and
   other   securities   and   property   receivable   upon   such
   recapitalization,  reclassification  or   other   change,   by
   holders  of  the maximum number of Ordinary Shares into  which
   such  Preference Shares could have been converted  immediately

                                  4
<PAGE>

   prior  to  such recapitalization, reclassification or  change,
   all subject to further adjustment as provided herein.

                  (v)   Reorganizations, Mergers,  Consolidations
                        -----------------------------------------
   or  Sales of Assets. If at any time or from time to time on or
   -------------------
   after   the   Original  Issuance  Date  there  is  a   capital
   reorganization   of  the  Ordinary  Shares   (other   than   a
   recapitalization,  subdivision, combination,  reclassification
   or  exchange of shares provided for elsewhere in this  Section
                                                          -------
   3(e))  or  a  merger or consolidation of the Company  with  or
   -----
   into another Company, or the sale of all or substantially  all
   of  the  Company's properties and assets to any other  person,
   then,  as a part of such reorganization, merger, consolidation
   or  sale,  provision shall be made so that the  Holders  shall
   thereafter  be  entitled  to receive upon  conversion  of  the
   Preference  Shares  the number of shares  of  stock  or  other
   securities  or  property to which a holder of  the  number  of
   Ordinary  Shares deliverable upon conversion would  have  been
   entitled    on    such    capital   reorganization,    merger,
   consolidation,   or  sale.  In  any  such  case,   appropriate
   adjustment  shall be made in the application of the provisions
   of  this  Section  3(e)  with respect to  the  rights  of  the
             -------------
   Holders  after  the reorganization, merger,  consolidation  or
   sale  to  the  end  that the provisions of this  Section  3(e)
                                                    -------------
   (including adjustment of the Conversion Price then  in  effect
   and  the number of shares purchasable upon conversion  of  the
   Preference  Shares) shall be applicable after that  event  and
   be as nearly equivalent as is practicable.

                  (vi) Sale of Shares Below Conversion Price.
                       -------------------------------------

       If,  at  any time or from time to time after the  Original
   Issuance Date, the Company issues or sells, Additional  Shares
   (as   hereinafter  defined)  without  consideration   or   for
   consideration  per  share less than the applicable  Conversion
   Price  in effect on the date of and immediately prior to  such
   issuance  of Additional Shares, then, concurrently  with  such
   issuance  of Additional Shares, the Conversion Price shall  be
   reduced   to   a  price  (calculated  to  the  nearest   cent)
   determined by multiplying (1) the Conversion Price  by  (2)  a
   fraction  of  which  (A) the numerator shall  be  the  sum  of
   (x) the number of Ordinary Shares outstanding at the close  of
   business  on  the day immediately preceding the date  of  such
   issuance  of  Additional  Shares,  plus  (y)  the  number   of
   Ordinary  Shares  which  the aggregate consideration  received
   (or  by  the  express provisions hereof deemed  to  have  been
   received)  by  the Company for the total number of  Additional
   Shares  so  issued  or sold would purchase at  the  Conversion
   Price  then  in effect and (B) the denominator  shall  be  the
   number  of  Ordinary  Shares  outstanding  at  the  close   of
   business  on  the  date  of  such  issuance  or  sale  of  the
   Additional  Shares (after giving effect to  such  issuance  or
   sale).   For the purpose of the calculation described in  this
   Section  3(e)(vi),  the number of Ordinary Shares  outstanding
   -----------------
   shall  include,  in addition to the number of Ordinary  Shares
   actually  outstanding, (A) the number of Ordinary Shares  into
   which  the  then outstanding Series 1 Preference Shares  could
   be  converted  into if fully converted on the day  immediately
   preceding the issuance or sale or deemed issuance or  sale  of
   Additional  Shares;  and  (B) the number  of  Ordinary  Shares
   which would be obtained through the exercise or conversion  of
   all   rights,   options   and   Convertible   Securities   (as
   hereinafter   defined)  outstanding  on  the  day  immediately
   preceding the issuance or sale or deemed issuance or  sale  of
   Additional Shares.

                    (A)  For the purpose of making any adjustment
     required  under  this  Section 3(e)(vi),  the  consideration
                            ----------------

                                  5
<PAGE>

     received  by  the  Company  for  any  issuance  or  sale  of
     securities  shall (A) to the extent it consists of  property
     other  than  cash,  be the fair value of  that  property  as
     determined in good faith by the Company's Board of Directors
     (the  "Board");  and  (B) if Additional Shares,  Convertible
            -----
     Securities (as hereinafter defined) or rights or options  to
     purchase  either Additional Shares or Convertible Securities
     are  issued  or sold together with other stock or securities
     or  other  assets  of the Company for a consideration  which
     covers  both, be the portion of the consideration  allocable
     to  such Additional Shares, Convertible Securities or rights
     or options as determined in good faith by the Board.

                     (B)   For  the  purpose  of  the  adjustment
     required under this Section 3(e)(vi), if the Company  issues
                         ----------------
     or  sells  any rights, warrants or options for the  purchase
     of,   or   stock  or  other  securities  convertible   into,
     Additional  Shares  (such convertible  stock  or  securities
     being  hereinafter referred to as "Convertible  Securities")
                                        -----------------------
     and  if the Effective Price (as defined in Clause (D) below)
     of  such  Additional Shares is less than  the  then  current
     Conversion  Price,  the  Company shall  be  deemed  to  have
     issued,  at the time of the issuance of such rights, options
     or  Convertible Securities, the maximum number of Additional
     Shares  issuable upon exercise or conversion thereof and  to
     have  received as consideration therefor an amount equal  to
     (1)  the total amount of the consideration, if any, received
     by the Company for the issuance of such rights or options or
     Convertible  Securities plus (2) in the case of such  rights
     or  options,  the minimum amount of consideration,  if  any,
     payable  to the Company upon the exercise of such rights  or
     options  or,  in  the  case of Convertible  Securities,  the
     minimum  amount  of consideration, if any,  payable  to  the
     Company upon the conversion thereof.  Thereafter, no further
     adjustment of the Conversion Price shall be made as a result
     of  the actual issuance of Additional Shares on the exercise
     of  any such rights or options or the conversion of any such
     Convertible  Securities, unless the  price  is  subsequently
     again  amended.   If  any  such rights  or  options  or  the
     conversion  privilege  represented by any  such  Convertible
     Securities  shall  expire  or  otherwise  terminate  without
     having been exercised, the Conversion Price shall thereafter
     be  the Conversion Price which would have been in effect had
     an   adjustment  been  made  on  the  basis  that  the  only
     Additional  Shares so issued were the Additional Shares,  if
     any,  actually issued or sold on the exercise of such rights
     or  options  or  rights of conversion  of  such  Convertible
     Securities,  and  were issued or sold for the  consideration
     actually  received  by the Company upon such  exercise  plus
     (1)  the  consideration, if any, actually received  for  the
     granting  of  all  such rights or options,  whether  or  not
     exercised, (2) the consideration, if any, actually  received
     by  issuing  or selling the Convertible Securities  actually
     converted,  and  (3)  the consideration,  if  any,  actually
     received  on  the conversion of such Convertible Securities.
     However,  if  any  such  rights or  options  or  Convertible
     Securities by their terms provide, with the passage of  time
     or  otherwise, for any increase in the consideration payable
     to  the  Company, upon the exercise, conversion or  exchange
     thereof,  the  Conversion Price for the Series 1  Preference
     Shares, and any subsequent adjustments based thereon, shall,
     upon  any  such increase or decrease becoming effective,  be
     recomputed  to reflect such increase or decrease insofar  as
     it  affects such rights, options or the rights of conversion
     or exchange under such Convertible Securities.

                                  6
<PAGE>

                     (C)   For  the  purpose  of  any  adjustment
     required  under  this Section 3(e)(vi), if (a)  the  Company
                           ----------------
     issues  or  sells any rights or options for the purchase  of
     Convertible  Securities and (b) if the Effective  Price  (as
     defined  below)  of  the Additional Shares  underlying  such
     Convertible  Securities is less than  the  Conversion  Price
     then in effect, then in each such event the Company shall be
     deemed  to have issued at the time of the issuance  of  such
     rights  or  options the maximum number of Additional  Shares
     issuable  upon conversion of the total number of Convertible
     Securities covered by such rights or options (as  set  forth
     in  the  legal instruments setting forth the terms  of  such
     Convertible   Securities)   and   to   have   received    as
     consideration for the issuance of such Additional Shares  an
     amount  equal  to  the  amount  of  consideration,  if  any,
     received  for  the issuance of such rights or  options  plus
     (A)  the  minimum amount of consideration, if  any,  payable
     upon  the  exercise of such rights or options  and  (B)  the
     minimum  amount of consideration, if any, payable  upon  the
     conversion of such Convertible Securities, unless the  price
     is  subsequently  amended.   No further  adjustment  of  the
     Conversion  Price shall be made as a result  of  the  actual
     issuance of the Convertible Securities upon the exercise  of
     such  rights  or  options  or upon the  actual  issuance  of
     Additional  Shares upon the conversion of  such  Convertible
     Securities.

                     (D)   "Additional Shares" shall mean, except
                            -----------------
     as  may  be otherwise agreed to by the holders of a majority
     of the Series 1 Preference Shares then outstanding, Ordinary
     Shares  or  options,  warrants or other  rights  to  acquire
     equity  or  debt securities convertible into or exchangeable
     for  Ordinary Shares, including, but not limited to,  shares
     held  in the Company's treasury, and Ordinary Shares  issued
     upon  the  exercise of any options, rights  or  warrants  to
     subscribe  for  Ordinary Shares and Ordinary  Shares  issued
     upon  the  direct  or  indirect conversion  or  exchange  of
     securities  for  Ordinary Shares, issued  on  or  after  the
     Original Issuance Date, other than:
                             ----- ----
     *  Ordinary Shares issued pursuant to the securities exchange
        (the "Exchange Transaction") by and between Six Diamond Resorts
              --------------------
        International, S.A., a Panamanian corporation ("SDRI") and the
                                                        ----
        Company;

     *  Ordinary Shares issued upon conversion of the Series 1
        Preference Shares Stock and/or exercise of warrants issued by the
        Company in connection with the private placement (the "Offering")
                                                               --------
        of the Company's units ("Units") pursuant to the Company's
                                 -----
        Confidential Private Placement Memorandum dated August 15, 2007
        (the "Memorandum") used in such Offering (including, but not
              ----------
        limited to, those issued to any investor and/or placement agent
        in the Offering);

     *  Ordinary Shares issued upon exercise of any options,
        warrants, or rights to purchase any securities of the Company or
        upon conversion of an convertible securities of the Company
        issued and outstanding (or reserved for issuance) as of the first
        closing of the Offering; or

     *  Ordinary Shares issuable as dividends and/or interest payments;

                                  7
<PAGE>

            The "Effective Price" of Additional Shares shall mean
                 ---------------
the  quotient obtained by dividing the total number of Additional
Shares  issued  or sold, or deemed to have been issued  or  sold,
under  this Section 3 into the aggregate consideration  received,
or deemed to have been received for such Additional Shares.

             (v)     No Adjustments in Certain Circumstances.  No
                     ---------------------------------------
adjustment in the Conversion Price shall be required unless  such
adjustment would require an increase or decrease of at least  one
($0.01)   cent  in  such  price;  provided,  however,  that   any
                                  --------   -------
adjustments  which  by reason of this Section 3(e)(vii)  are  not
                                      -----------------
required  to  be  made shall be carried forward  and  taken  into
account  in  any  subsequent  adjustment  required  to  be   made
hereunder. All calculations under this Section 3(e)(vii) shall be
                                       -----------------
made  to  the nearest cent or to the nearest one-hundredth  of  a
share, as the case may be.

     (f)   No  Impairment. The Company will not, by amendment  of
           --------------
its  Articles  of  Association  or  through  any  reorganization,
transfer of assets, consolidation, merger, dissolution, issue  or
sale  of securities or any other voluntary action, avoid or  seek
to  avoid the observance or performance of any of the terms to be
observed  or performed hereunder by the Company but will  at  all
times  in  good  faith  assist in the carrying  out  of  all  the
provisions of this Section 3 and in the taking of all such action
                   ---------
as  may  be  necessary  or appropriate in order  to  protect  the
conversion rights of the Holders of the Preference Shares against
impairment.

     (g)   Certificate as to Adjustments. Upon the occurrence  of
           -----------------------------
each  adjustment or readjustment of the Conversion Price pursuant
to  this  Section  3, the Company at its expense  shall  promptly
          ----------
compute  such adjustment or readjustment in accordance  with  the
terms  hereof and furnish to each Holder of Preference  Shares  a
certificate  setting  forth such adjustment or  readjustment  and
showing  in  detail  the  facts upon  which  such  adjustment  or
readjustment  is  based.  The Company  shall,  upon  the  written
request  at  any  time  of any Holder, furnish  or  cause  to  be
furnished  to  such Holder a like certificate setting  forth  (i)
such adjustments and readjustments, (ii) Conversion Price at  the
time  in effect, and (iii) the number of Ordinary Shares and  the
amount,  if  any, of other property which at the  time  would  be
received upon the conversion of the Preference Shares.

     (h)  Status of Converted Preference Shares. In the event any
          -------------------------------------
Preference  Shares  shall  be converted  pursuant  to  Section  3
                                                       ----------
hereof,  the shares so converted shall be canceled and shall  not
be reissued as Preference Shares.

     (4)  Assumption and Provision Upon Organic Change. Prior  to
          --------------------------------------------
the  consummation of any Organic Change (as defined  below),  the
Company  shall make appropriate provision to ensure that each  of
the Holders will thereafter have the right to acquire and receive
in  lieu  of or in addition to (as the case may be) the  Ordinary
Shares immediately theretofore acquirable and receivable upon the
conversion  of  such Holder's Preference Shares  such  shares  of
stock,  securities  or  assets that would  have  been  issued  or
payable in such Organic Change with respect to or in exchange for
the  number  of Ordinary Shares which would have been  acquirable
and  receivable  upon the conversion of such Holder's  Preference
Shares  into  Ordinary Shares immediately prior to  such  Organic
Change.  The following shall constitute an "Organic Change:"  any
                                            --------------
recapitalization, reorganization, reclassification, consolidation

                                  8
<PAGE>

or  merger,  sale  of all or substantially all of  the  Company's
assets  to another person or other transaction which is  effected
in  such  a  way that holders of Ordinary Shares are entitled  to
receive  (either directly or upon subsequent liquidation)  stock,
securities or assets with respect to or in exchange for  Ordinary
Shares.

     (5)  Reservation of Authorized Shares. The Company shall, so
long  as  any of the Preference Shares are outstanding, take  all
action  necessary  to  reserve and  keep  available  out  of  its
authorized  and unissued Ordinary Shares, solely for the  purpose
of  effecting  the conversion of the Preference Shares,  100%  of
such  number  of Ordinary Shares as shall from time  to  time  be
sufficient  to  effect the conversion of all  of  the  Preference
Shares then outstanding.

     (6)  Liquidation, Dissolution, Winding-Up.

          (a)     Series 1 Preference Shares.  Holders  shall  be
                  --------------------------
entitled  to  receive  out of the assets of the  Company  legally
available  for distribution therefrom (the "Liquidation  Funds"),
                                            ------------------
before  any  amount shall be paid to the holders of  any  of  the
capital stock of the Company of any class junior in rank  to  the
Series  1 Preference Shares in respect of the preferences  as  to
the  distributions  and payments on the liquidation,  dissolution
and  winding up of the Company, an amount per Series 1 Preference
Share  equal to 100% of the sum of (i) of the Stated Value,  plus
(ii)  all  dividends, if any, which have accrued or  are  payable
under  Section 8 hereof, but have not been paid and  received  by
       ---------
the  Holders,  up  to  and including the  date  full  payment  is
tendered   to  the  Holders  with  respect  to  such  Liquidation
(collectively, the "Liquidation Preference").
                    ----------------------

          (b)      Liquidation  Distribution.    If,   upon   any

Liquidation, the Liquidation Funds are insufficient to pay, issue
or  deliver  the  full amount due to the Holders and  holders  of
shares  of  other classes or series of preference shares  of  the
Company that are expressly provided for as of equal rank with the
Preference Shares as to payments of Liquidation Funds (the  "Pari
                                                             ----
Passu  Shares"), then each holder of Preference Shares  and  Pari
-------------
Passu  Shares shall receive a percentage of the Liquidation Funds
equal  to  the full amount of Liquidation Funds payable  to  such
holder  as  a  liquidation preference, in accordance  with  their
respective certificates of designation of preferences rights  and
limitations,  as a percentage of the full amount  of  Liquidation
Funds  payable to all holders of Preference Shares and Pari Passu
Shares.   No  Holder of Preference Shares shall  be  entitled  to
receive  any  amounts with respect thereto upon  any  Liquidation
other  than  the  amounts provided for herein;  provided  that  a
Holder  of  Preference Shares shall be entitled  to  all  amounts
previously  accrued with respect to amounts owed  hereunder.  The
form  of consideration in which the Liquidation Preference is  to
be  paid  to the Holders of the Preference Shares as provided  in
this Section 6 shall be the form of consideration received by the
     ---------
Company  or the other holders of the Company's capital stock,  as
the case may be.

          (c)      "Liquidation"  means  (i)   any   liquidation,
                    -----------
dissolution  or winding up of the Company, whether  voluntary  or
involuntary,  and/or (ii) any filing for bankruptcy  pursuant  to
applicable federal and/or state laws.

            (7)  Preferred Rank. All Ordinary Shares shall be  of
                 --------------
junior rank to all Series 1 Preference Shares in all respects  as
to  the  preferences as to distributions and  payments  upon  any

                                  9
<PAGE>

Liquidation.  The rights of the Ordinary Shares shall be  subject
to the preferences and relative rights of the Series 1 Preference
Shares.

          (8)  Dividends; Participation.
               ------------------------

     (a)   Series  1 Preference Shares.  Each Series 1 Preference
           ---------------------------
Share  shall  accrue dividends at the rate of eight (8%)  percent
($0.14  per share) per annum of the Stated Value, which dividends
shall be paid when, as, and if declared by the Board out of funds
legally  available thereof, payable on December 31 of  each  year
commencing December 31, 2007.  Dividends payable will be prorated
from  the  date  of issuance based upon the number  of  days  the
Series  1  Preference  Shares is outstanding  in  the  applicable
fiscal  year.  Dividends on the Series 1 Preference Shares  shall
be cumulative. No dividends or other distributions may be paid or
otherwise made with respect to the Ordinary Shares and no  shares
of  the  Ordinary Shares may be repurchased by the Company during
any  fiscal  year  of the Company until dividends  equal  to  the
amount  specified above (the "Annual Dividend") on the  Series  1
Preference  Shares have been declared, paid or set  apart  during
that fiscal year.

      (b)   Optional  Dividends .  In addition to  the  dividends
            -------------------
described  in Section 8(a) above, the Company reserves the  right
to declare and pay optional dividends to the Holders of Series  1
Preference Shares in such amounts, form (securities and/or  cash)
and  at  such  time  as  determined by  the  Company's  Board  of
Directors.

     (c)   Dividend Payments.  The Annual Dividend payments shall
           -----------------
be  made  in either cash or at the option of the Company  through
the  issuance of additional Preference Shares in such  amount  of
Preference  Shares  equal to the quotient  of  (i)  the  dividend
amount  payment then due, divided by (ii) the Stated  Value.   So
long  as any Preference Shares shall be outstanding, no dividend,
whether  in  cash,  securities or  property,  shall  be  paid  or
declared,  nor  shall  any other distribution  be  made,  on  the
Ordinary  Shares or any other security junior to  the  Preference
Shares  as  to  dividend  rights, unless  the  Company  shall  in
addition to the payment of all cumulative Annual Dividends,  also
declare  and  pay to the Preference Shares, at the same  time  it
declares and pays such dividend or distribution to the holders of
Ordinary  Shares, the dividend or distribution  that  would  have
been declared and paid with respect to the Conversion Shares  had
all  of  the  Preference  Shares been converted  into  Conversion
Shares immediately prior to the record date for such dividend  or
distribution, or if no record date is fixed, the date as of which
the  Company  pays to the record holders of Ordinary Shares  such
dividend or distribution.

     (9)  Limited Special Voting Rights.
          -----------------------------

          (a)     The affirmative vote of the Holders owning  not
less   than  a  majority  of  the  then  issued  and  outstanding
Preference Shares, at a meeting duly called for such purpose,  or
by  the  written consent without a meeting of the Holders of  not
less  than a majority of the then outstanding Preference  Shares,
shall  be  required for any amendment to any of the  preferences,
rights  and  limitations of the Preference Shares, the  Company's
Articles  of  Association or Bylaws which would  directly  and/or
indirectly  amend,  alter, change, repeal or otherwise  adversely
affect any of the powers, designations, preferences and rights of
the  Preference  Shares,  including to  increase  the  amount  of
authorized capital stock of any such class.

                                  10
<PAGE>

       (b)  For  so long as Preference Shares remain outstanding,
the  Company  shall not, without the express written  consent  of
Holders  owning  no less than a majority of the aggregate  Stated
Value  of  the  then issued and outstanding Series  1  Preference
Shares  issue any preference shares senior to or pari passu  with
the Preference Shares.

     (10)  Lost  or  Stolen  Certificates. Upon  receipt  by  the
           ------------------------------
Company of evidence reasonably satisfactory to the Company of the
loss,  theft, destruction or mutilation of any Preference  Shares
Certificate(s) representing the Preference Shares,  and,  in  the
case  of  loss,  theft  or  destruction, of  any  indemnification
undertaking by the Holder to the Company in customary  form  and,
in the case of mutilation, upon surrender and cancellation of the
Preference  Shares Certificate(s), the Company shall execute  and
deliver  new preference shares certificate(s) of like  tenor  and
date.

     (11)  Notices. Whenever notice is required to be given under
           -------
any  of the preferences, rights and limitations of the Preference
Shares,  unless otherwise provided herein, such notice  shall  be
given  in  writing and will be mailed by certified  mail,  return
receipt  requested, or delivered against receipt to the party  to
whom  it  is to be given (a) if to the Company, at the  Company's
executive offices or (b) if to a Holder, at the address set forth
on Company's books and records.

           Remainder of Page Intentionally Left Blank

                                  11
<PAGE>

The  undersigned  declare  under  penalty  of  perjury  that  the
matters  set  forth  in the foregoing Certificate  are  true  and
correct of their own knowledge.

     Executed on August 1, 2007.

                                   _______________________
                                   Joseph Rozelle
                                   Chairman and President

                                  12
<PAGE>[EXHIBIT 10.6]

                 SIX DIAMOND RESORTS INTERNATIONAL

                     2007 STOCK INCENTIVE PLAN

       1.   Purposes of the Plan.  The purposes of this Stock Incentive
            --------------------
Plan are to attract and retain the best available personnel, to
provide additional incentive to Employees, Directors and Consultants
and to promote the success of the Corporation's business.

       2.   Definitions.
            -----------

            2.01.  Certain Defined Terms. As used herein, the following
                   ---------------------
definitions shall apply:

                   "Administrator" means the Board or any of the
                    -------------
Committees appointed to administer the Plan.

                   "Affiliate" and "Associate" shall have the respective
                    ---------       ---------
meanings ascribed to such terms in Rule 12b-2 promulgated under the
Exchange Act.

                   "Applicable Laws" means the legal requirements
                    ---------------
relating to the administration of stock incentive plans, if any, under
applicable provisions of federal securities laws, state corporate and
securities laws, the Code, the rules of any applicable stock exchange
or national market system, and the rules of any foreign jurisdiction
applicable to Awards granted to residents therein.

                   "Assumed" means that (i) pursuant to a Corporate
                    -------
Transaction (as defined in section (i), (ii), or (iii) of the
definition of such term) or a Related Entity Disposition, the
contractual obligations represented by the Award are assumed by the
successor entity or its Parent in connection with the Corporate
Transaction or Related Entity Disposition or (ii) pursuant to a
Corporate Transaction (as defined in sections (iv) or (v) of the
definition of such term), the Award is affirmed by the Corporation.
The Award shall not be deemed "Assumed" for purposes of terminating
the Award (in the case of a Corporate Transaction) and the termination
of the Continuous Service of the Grantee (in the case of a Related
Entity Disposition) if pursuant to a Corporate Transaction or a
Related Entity Disposition the Award is replaced with a comparable
award with respect to shares of capital stock of the successor entity
or its Parent.  However, for purposes of determining whether the
vesting of the Award accelerates, the Award shall be deemed "Assumed"
if the Award is replaced with such a comparable stock award or the
Award is replaced with a cash incentive program of the successor
entity or Parent thereof which preserves the compensation element of
such Award existing at the time of the Corporate Transaction or
Related Entity Disposition and provides for subsequent payout in
accordance with the same vesting schedule applicable to such Award.

The determination of Award comparability shall be made by the
Administrator and its determination shall be final, binding and
conclusive.

                   "Award" means the grant of an Option, SAR, Dividend
                    -----
Equivalent Right, Restricted Stock, Performance Unit, Performance
Share, or other right or benefit under the Plan.

                                 -1-

<PAGE>

                   "Award Agreement" means the written agreement
                    ---------------
evidencing the grant of an Award executed by the Corporation and the
Grantee, including any amendments thereto.

                   "Board" means the Board of Directors of the
                    -----
Corporation.

                   "Cause" means, with respect to the termination by the
                    -----
Corporation or a Related Entity of the Grantee's Continuous Service,
that such termination is for "Cause" as such term is expressly defined
in a then-effective written agreement between the Grantee and the
Corporation or such Related Entity, or in the absence of such then-
effective written agreement and definition, is based on, in the
determination of the Administrator, the Grantee's: (i) performance of
any act or failure to perform any act in bad faith and to the
detriment of the Corporation or a Related Entity; (ii) dishonesty,
intentional misconduct or material breach of any agreement with the
Corporation or a Related Entity; or (iii) commission of a crime
involving dishonesty, breach of trust, or physical or emotional harm
to any person.

                   "Change in Control" means a change in ownership or
                    -----------------
control of the Corporation after the Registration Date effected
through either of the following transactions: (i) the direct or
indirect acquisition by any person or related group of persons (other
than an acquisition from or by the Corporation or by a Corporation-
sponsored employee benefit plan or by a person that directly or
indirectly controls, is controlled by, or is under common control
with, the Corporation) of beneficial ownership (within the meaning of
Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the
Corporation's outstanding securities pursuant to a tender or exchange
offer made directly to the Corporation's stockholders which a majority
of the Continuing Directors who are not Affiliates or Associates of
the offeror do not recommend such stockholders accept, or (ii) a
change in the composition of the Board over a period of thirty-six
(36) months or less such that a majority of the Board members (rounded
up to the next whole number) ceases, by reason of one or more
contested elections for Board membership, to be comprised of
individuals who are Continuing Directors.

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

                   "Committee" means any committee appointed by the Board
                    ---------
to administer the Plan.

                   "Common Stock" means the common stock of the
                    ------------
Corporation.

                   "Corporation" means Six Diamond Resorts International
                    -----------
a Cayman corporation.

                   "Consultant" means any person (other than an Employee
                    ----------
or a Director, solely with respect to rendering services in such
person's capacity as a Director) who is engaged by the Corporation or
any Related Entity to render consulting or advisory services to the
Corporation or such Related Entity.

                   "Continuing Directors" means members of the Board who
                    --------------------
either (i) have been Board members continuously for a period of at
least thirty-six (36) months or (ii) have been Board members for less
than thirty-six (36) months and were elected or nominated for election

                                 -2-

<PAGE>

as Board members by at least a majority of the Board members described
in clause (i) who were still in office at the time such election or
nomination was approved by the Board.

                   "Continuous Service" means that the provision of
                    ------------------
services to the Corporation or a Related Entity in any capacity of
Employee, Director or Consultant, is not interrupted or terminated.
Continuous Service shall not be considered interrupted in the case of
(i) any approved leave of absence, (ii) transfers among the
Corporation, any Related Entity, or any successor, in any capacity of
Employee, Director or Consultant, or (iii) any change in status as
long as the individual remains in the service of the Corporation or a
Related Entity in any capacity of Employee, Director or Consultant
(except as otherwise provided in the Award Agreement). An approved
leave of absence shall include sick leave, military leave, or any
other authorized personal leave.  For purposes of each Incentive Stock
Option granted under the Plan, if such leave exceeds ninety (90) days,
and reemployment upon expiration of such leave is not guaranteed by
statute or contract, then the Incentive Stock Option shall be treated
as a Non-Qualified Stock Option on the day three (3) months and one
(1) day following the expiration of such ninety (90) day period.

                   "Corporate Transaction" means any of the following
                    ---------------------
transactions: (i) a merger or consolidation in which the Corporation
is not the surviving entity, except for a transaction the principal
purpose of which is to change the state in which the Corporation is
incorporated; (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Corporation (including the
capital stock of the Corporation's subsidiary corporations); (iii)
approval by the Corporation's stockholders of any plan or proposal for
the complete liquidation or dissolution of the Corporation; (iv) any
reverse merger in which the Corporation is the surviving entity but in
which securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation's outstanding securities are
transferred to a person or persons different from those who held such
securities immediately prior to such merger; or (v) acquisition by any
person or related group of persons (other than the Corporation or by a
Corporation-sponsored employee benefit plan) of beneficial ownership
(within the meaning of Rule 13d-3 of the Exchange Act) of securities
possessing more than fifty percent (50%) of the total combined voting
power of the Corporation's outstanding securities (whether or not in a
transaction also constituting a Change in Control) but excluding any
such transaction that the Administrator determines shall not be a
Corporate Transaction.

                   "Covered Employee" means an Employee who is a "covered
                    ----------------
employee" under Section 162(m)(3) of the Code.

                   "Director" means a member of the Board or the board of
                    --------
directors of any Related Entity.

                   "Disability" means as defined under the long-term
                    ----------
disability policy of the Corporation or the Related Entity to which
the Grantee provides services regardless of whether the Grantee is
covered by such policy. If the Corporation or the Related Entity to
which the Grantee provides service does not have a long-term
disability plan in place, "Disability" means that a Grantee is unable
to carry out the responsibilities and functions of the position held
by the Grantee by reason of any medically determinable physical or
mental impairment. A Grantee will not be considered to have incurred a
Disability unless he or she furnishes proof of such impairment
sufficient to satisfy the Administrator in its discretion.

                                 -3-

<PAGE>

                   "Dividend Equivalent Right" means a right entitling
                    -------------------------
the Grantee to compensation measured by dividends paid with respect to
Common Stock.

                   "Employee" means any person, including an Officer or
                    --------
Director, who is in the employ of the Corporation or any Related
Entity, subject to the control and direction of the Corporation or any
Related Entity as to both the work to be performed and the manner and
method of performance. The payment of a director's fee by the
Corporation or a Related Entity shall not be sufficient to constitute
"employment" by the Corporation.

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

                   "Fair Market Value" means, as of any date, the value
                    -----------------
of Common Stock determined as follows: (i) where there exists a public
market for the Common Stock, the Fair Market Value shall be (A) the
closing price for a Share on the date of the determination (or, if no
closing price was reported on that date, on the last trading date on
which a closing price was reported) on the stock exchange determined
by the Administrator to be the primary market for the Common Stock or
the NASDAQ National Market, whichever is applicable or (B) if the
Common Stock is not traded on any such exchange or national market
system, the average of the closing bid and asked prices of a Share on
the NASDAQ Small Cap Market on the date of the determination (or, if
no such prices were reported on that date, on the last date on which
such prices were reported), in each case, as reported in The Wall
Street Journal or such other source as the Administrator deems
reliable; or (ii) in the absence of an established market for the
Common Stock of the type described in (i), above, the Fair Market
Value thereof shall be determined by the Administrator in good faith.

                   "Good Reason" means the occurrence after a Corporate
                    -----------
Transaction, Change in Control or Related Entity Disposition of any of
the following events or conditions unless consented to by the Grantee
(and the Grantee shall be deemed to have consented to any such event
or condition unless the Grantee provides written notice of the
Grantee's non-acquiescence within 30 days of the effective time of
such event or condition): (i) a change in the Grantee's
responsibilities or duties which represents a material and substantial
diminution in the Grantee's responsibilities or duties as in effect
immediately preceding the consummation of a Corporate Transaction,
Change in Control or Related Entity Disposition; (ii) a reduction in
the Grantee's base salary to a level below that in effect at any time
within six (6) months preceding the consummation of a Corporate
Transaction, Change in Control or Related Entity Disposition or at any
time thereafter; or (iii) requiring the Grantee to be based at any
place outside a [____]-mile radius from the Grantee's job location
prior to the Corporate Transaction, Change in Control or Related
Entity Disposition except for reasonably required travel on business
which is not materially greater than such travel requirements prior to
the Corporate Transaction, Change in Control or Related Entity
Disposition.

                   "Grantee" means an Employee, Director or Consultant
                    -------
who receives an Award under the Plan.

                   "Immediate Family" means any child, stepchild,
                    ----------------
grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the Grantee's household (other than
a tenant or employee), a trust in which these persons (or the Grantee)
have more than fifty percent (50%) of the beneficial interest, a

                                 -4-

<PAGE>

foundation in which these persons (or the Grantee) control the
management of assets, and any other entity in which these persons (or
the Grantee) own more than fifty percent (50%) of the voting
interests.

                   "Incentive Stock Option" means an Option intended to
                    ----------------------
qualify as an incentive stock option within the meaning of Section 422
of the Code.

                   "Non-Qualified Stock Option" means an Option not
                    --------------------------
intended to qualify as an Incentive Stock Option.

                   "Officer" means a person who is an officer of the
                    -------
Corporation or a Related Entity within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated thereunder.

                   "Option" means an option to purchase Shares pursuant
                    ------
to an Award Agreement granted under the Plan.

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

                   "Performance-Based Compensation" means compensation
                    ------------------------------
qualifying as "performance-based compensation" under Section 162(m) of
the Code.

                   "Performance Shares" means Shares or an Award
                    ------------------
denominated in Shares which may be earned in whole or in part upon
attainment of performance criteria established by the Administrator.

                   "Performance Units" means an Award which may be earned
                    -----------------
in whole or in part upon attainment of performance criteria
established by the Administrator and which may be settled for cash,
Shares or other securities or a combination of cash, Shares or other
securities as established by the Administrator.

                   "Plan" means this 2007 Stock Incentive Plan.
                    ----

                   "Registration Date" means the first to occur of (i)
                    -----------------
the closing of the first sale to the general public pursuant to a
registration statement filed with and declared effective by the
Securities and Exchange Commission under the Securities Act of 1933,
as amended, of (A) the Common Stock or (B) the same class of
securities of a successor corporation (or its Parent) issued pursuant
to a Corporate Transaction in exchange for or in substitution of the
Common Stock; and (ii) in the event of a Corporate Transaction, the
date of the consummation of the Corporate Transaction if the same
class of securities of the successor corporation (or its Parent)
issuable in such Corporate Transaction shall have been sold to the
general public pursuant to a registration statement filed with and
declared effective by the Securities and Exchange Commission under the
Securities Act of 1933, as amended, on or prior to the date of
consummation of such Corporate Transaction.

                   "Related Entity" means any Parent, Subsidiary and any
                    --------------
business, corporation, partnership, limited liability company or other
entity in which the Corporation, a Parent or a Subsidiary holds a
substantial ownership interest, directly or indirectly.

                                 -5-

<PAGE>

                   "Related Entity Disposition" means the sale,
                    --------------------------
distribution or other disposition by the Corporation, a Parent or a
Subsidiary of all or substantially all of the interests of the
Corporation, a Parent or a Subsidiary in any Related Entity effected
by a sale, merger or consolidation or other transaction involving that
Related Entity or the sale of all or substantially all of the assets
of that Related Entity, other than any Related Entity Disposition to
the Corporation, a Parent or a Subsidiary.

                   "Restricted Stock" means Shares issued under the Plan
                    ----------------
to the Grantee for such consideration, if any, and subject to such
restrictions on transfer, rights of first refusal, repurchase
provisions, forfeiture provisions, and other terms and conditions as
established by the Administrator.

                   "Rule 16b-3" means Rule 16b-3 promulgated under the
                    ----------
Exchange Act or any successor thereto.

                   "SAR" means a stock appreciation right entitling the
                    ---
Grantee to Shares or cash compensation, as established by the
Administrator, measured by appreciation in the value of Common Stock.

                   "Share" means a share of the Common Stock.
                    -----

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

             2.02. Other Defined Terms. Other capitalized terms not
                   -------------------
defined above in Section 2.01 of this plan shall have the meanings
provided elsewhere in this plan.

       3.   Stock Subject to the Plan.
            -------------------------

            3.01.      Fixed Share Limit.  Subject to the provisions of
                       -----------------
Section 10, below, the maximum aggregate number of Shares which may be
issued pursuant to all Awards (including Incentive Stock Options) is
Four Million (4,000,000) Shares. The Shares to be issued pursuant to
Awards may be authorized, but unissued, or reacquired Common Stock.

            3.02.      Shares Deemed Not Issued.  Any Shares covered by an
                       ------------------------

Award (or portion of an Award) which is forfeited or canceled, expires
or is settled in cash, shall be deemed not to have been issued for
purposes of  determining the maximum aggregate number of Shares which
may be issued under the Plan. Shares that actually have been issued
under the Plan pursuant to an Award shall not be returned to the Plan
and shall not become available for future issuance under the Plan,
except that if unvested Shares are forfeited, or repurchased by the
Corporation at their original purchase price, such Shares shall become
available for future grant under the Plan.

       4.   Administration of the Plan.
            --------------------------

            4.01.      Plan Administrator.
                       ------------------

                   (a) Administration with Respect to Directors and
                       --------------------------------------------
Officers. With respect to grants of Awards to Directors or Employees
--------
who are also Officers or Directors of the Corporation, the Plan shall

                                 -6-

<PAGE>

be administered by (i) the Board or (ii) a Committee designated by the
Board, which Committee shall be constituted in such a manner as to
satisfy the Applicable Laws and to permit such grants and related
transactions under the Plan to be exempt from Section 16(b) of the
Exchange Act in accordance with Rule 16b-3. Once appointed, such
Committee shall continue to serve in its designated capacity until
otherwise directed by the Board.

                    (b)	Administration with Respect to Consultants and
                        ----------------------------------------------
Other Employees.  With respect to grants of Awards to Employees or
---------------
Consultants who are neither Directors nor Officers of the Corporation,
the Plan shall be administered by (i) the Board or (ii) a Committee
designated by the Board, which Committee shall be constituted in such
a manner as to satisfy the Applicable Laws. Once appointed, such
Committee shall continue to serve in its designated capacity until
otherwise directed by the Board. The Board may authorize one or more
Officers to grant such Awards and may limit such authority as the
Board determines from time to time.

                    (c)	Administration with Respect to Covered Employees.
                        ------------------------------------------------
Notwithstanding the foregoing, grants of Awards to any Covered
Employee intended to qualify as Performance-Based Compensation shall
be made only by a Committee (or subcommittee of a Committee) which is
comprised solely of two or more Directors eligible to serve on a
committee making Awards qualifying as Performance-Based Compensation.
In the case of such Awards granted to Covered Employees, references to
the "Administrator" or to a "Committee" shall be deemed to be
references to such Committee or subcommittee.

                    (d)	Administration Errors.  In the event an Award is
                        ---------------------
granted in a manner inconsistent with the provisions of this Section
4.01, such Award shall be presumptively valid as of its grant date to
the extent permitted by the Applicable Laws.

            4.02.   Powers of the Administrator.  Subject to Applicable
                    ---------------------------
Laws and the provisions of the Plan (including any other powers given
to the Administrator hereunder), and except as other wise provided by
the Board, the Administrator shall have the authority, in its
discretion:

                    (a)	to select the Employees, Directors and
Consultants to whom Awards may be granted from time to time hereunder;

                    (b)	to determine whether and to what extent Awards
are granted hereunder;

                    (c)	to determine the number of Shares or the amount
of other consideration to be covered by each Award granted hereunder;

                    (d)	to approve forms of Award Agreements for use
under the Plan;

                    (e)	to determine the terms and conditions of any
Award granted hereunder;

                    (f)	to amend the terms of any outstanding Award
granted under the Plan, provided that any amendment that would
adversely affect the Grantee's rights under an outstanding Award shall
not be made without the Grantee's written consent;

                                 -7-

<PAGE>

                    (g)	to construe and interpret the terms of the Plan
and Awards, including with out limitation, any notice of Award or
Award Agreement, granted pursuant to the Plan;

                    (h)	to establish additional terms, conditions, rules
or procedures to accommodate the rules or laws of applicable foreign
jurisdictions and to afford Grantees favorable treatment under such
rules or laws; provided, however, that no Award shall be granted under
any such additional terms, conditions, rules or procedures with terms
or conditions which are inconsistent with the provisions of the Plan;
and

                    (i)	to take such other action, not inconsistent with
the terms of the Plan, as the Administrator deems appropriate.

       5.	Eligibility.  Awards other than Incentive Stock Options may
                -----------
be granted to Employees, Directors and Consultants. Incentive Stock
Options may be granted only to Employees of the Corporation, a Parent
or a Subsidiary. An Employee, Director or Consultant who has been
granted an Award may, if otherwise eligible, be granted additional
Awards. Awards may be granted to such Employees, Directors or
Consultants who are residing in foreign jurisdictions as the
Administrator may determine from time to time.

       6.   Terms and Conditions of Awards.
            ------------------------------

            6.01.   Type of Awards.  The Administrator is authorized under
                    --------------
the Plan to award any type of arrangement to an Employee, Director or
Consultant that is not inconsistent with the provisions of the Plan
and that by its terms involves or might involve the issuance of (i)
Shares, (ii) an Option, a SAR, or similar right with a fixed or
variable price related to the Fair Market Value of the Shares and with
an exercise or conversion privilege related to the passage of time,
the occurrence of one or more events, or the satisfaction of
performance criteria or other conditions, or (iii) any other security
with the value derived from the value of the Shares. Such awards
include, without limitation, Options, SARs, or sales or bonuses of
Restricted Stock, Dividend Equivalent Rights, Performance Units or
Performance Shares, and an Award may consist of one such security or
benefit, or two (2) or more of them in any combination or alternative.

            6.02.   Designation of Award.  Each Award shall be designated
                    --------------------
in the Award Agreement.  In the case of an Option, the Option shall be
designated as either an Incentive Stock Option or a Non-Qualified
Stock Option. However, notwithstanding such designation, to the extent
that the aggregate Fair Market Value of Shares subject to Options
designated as Incentive Stock Options which become exercisable for the
first time by a Grantee during any calendar year (under all plans of
the Corporation or any Parent or Subsidiary) exceeds $100,000, such
excess Options, to the extent of the Shares covered thereby in excess
of the foregoing limitation, shall be treated as Non-Qualified Stock
Options. For this purpose, Incentive Stock Options shall be taken into
account in the order in which they were granted, and the Fair Market
Value of the Shares shall be determined as of the grant date of the
relevant Option.

            6.03.   Conditions of Award.  Subject to the terms of the
                    -------------------
Plan, the Administrator shall determine the provisions, terms, and
conditions of each Award including, but not limited to, the Award
vesting schedule, repurchase provisions, rights of first refusal,
forfeiture provisions, form of payment (cash, Shares, or other

                                 -8-

<PAGE>

consideration) upon settlement of the Award, payment contingencies,
and satisfaction of any performance criteria. The performance criteria
established by the Administrator may be based on any one of, or
combination of, increase in share price, earnings per share, total
stockholder return, return on equity, return on assets, return on
investment, net operating income, cash flow, revenue, economic value
added, personal management objectives, or other measure of performance
selected by the Administrator. Partial achievement of the specified
criteria may result in a payment or vesting corresponding to the
degree of achievement as specified in the Award Agreement.

            6.04.   Acquisitions and Other Transactions.  The
                    -----------------------------------
Administrator may issue Awards under the Plan in settlement,
assumption or substitution for, outstanding awards or obligations to
grant future awards in connection with the Corporation or a Related
Entity acquiring another entity, an interest in another entity or an
additional interest in a Related Entity whether by merger, stock
purchase, asset purchase or other form of transaction.

            6.05    Deferral of Award Payment.  The Administrator may
                    -------------------------
establish one or more programs under the Plan to permit selected
Grantees the opportunity to elect to defer receipt of consideration
upon exercise of an Award, satisfaction of performance criteria, or
other event that absent the election would entitle the Grantee to
payment or receipt of Shares or other consideration under an Award
(but only to the extent that such deferral programs would not result
in an accounting compensation charge unless otherwise determined by
the Administrator). The Administrator may establish the election
procedures, the timing of such elections, the mechanisms for payments
of, and accrual of interest or other earnings, if any, on amounts,
Shares or other consideration so deferred, and such other terms,
conditions, rules and procedures that the Administrator deems
advisable for the administration of any such deferral program.

            6.06.   Separate Programs.  The Administrator may establish
                    -----------------
one or more separate programs under the Plan for the purpose of
issuing particular forms of Awards to one or more classes of Grantees
on such terms and conditions as determined by the Administrator from
time to time.

            6.07.   Individual Option and SAR Limit.  There shall be no
                    -------------------------------
limit to the maximum number of Shares with respect to which Options
and SARs may be granted to any Grantee in any fiscal year of the
Corporation, except to the extent required by Section 162(m) of the
Code or the regulations thereunder.

            6.08.   Early Exercise.  The Award Agreement may, but need
                    --------------
not, include a provision whereby the Grantee may elect at any time
while an Employee, Director or Consultant to exercise any part or all
of the Award prior to full vesting of the Award. Any unvested Shares
received pursuant to such exercise may be subject to a repurchase
right in favor of the Corporation or a Related Entity or to any other
restriction the Administrator determines to be appropriate.

            6.09.   Term of Award.  The term of each Award shall be the
                    -------------
term stated in the Award Agreement, provided, however, that the term
of an Incentive Stock Option shall be no more than ten (10) years from
the date of grant thereof. However, in the case of an Incentive Stock
Option granted to a Grantee who, at the time the Option is granted,
owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Corporation or any Parent or
Subsidiary, the term of the Incentive Stock Option shall be five (5)

                                 -9-

<PAGE>

years from the date of grant thereof or such shorter term as may be
provided in the Award Agreement.

            6.10.   Transferability of Awards.  Incentive Stock Options
                    -------------------------
may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent
or distribution and may be exercised, during the lifetime of the
Grantee, only by the Grantee; provided, however, that the Grantee may
designate a beneficiary of the Grantee's Incentive Stock Option in the
event of the Grantee's death on a beneficiary designation form
provided by the Administrator. Other Awards shall be transferred by
will and by the laws of descent and distribution, and during the
lifetime of the Grantee, by gift and/or pursuant to a domestic
relations order to members of the Grantee's Immediate Family to the
extent and in the manner determined by the Administrator.

            6.11.   Time of Granting Awards.  The date of grant of an
                    -----------------------
Award shall for all purposes be the date on which the Administrator
makes the determination to grant such Award, or such other date as is
determined by the Administrator. Notice of the grant determination
shall be given to each Employee, Director or Consultant to whom an
Award is so granted within a reasonable time after the date of such
grant.

       7.   Award Exercise or Purchase Price, Consideration and Taxes.
            ---------------------------------------------------------

            7.01.   Exercise or Purchase Price.  The exercise or purchase
                    --------------------------
price, if any, for an Award shall be as follows:

                    (a)	In the case of an Incentive Stock Option:

                        (i)   granted to an Employee who, at the time of
the grant of such Incentive Stock Option owns stock representing more
than ten percent (10%) of the voting power of all classes of stock of
the Corporation or any Parent or Subsidiary, the per Share exercise
price shall be not less than one hundred ten percent (110%) of the
Fair Market Value per Share on the date of grant; or

                        (ii)  granted to any Employee other than an
Employee described in the preceding paragraph, the per Share exercise
price shall be not less than one hundred percent (100%) of the Fair
Market Value per Share on the date of grant.

                    (b)	In the case of a Non-Qualified Stock Option, the
per Share exercise price shall be not less than eighty-five percent
(85%) of the Fair Market Value per Share on the date of grant unless
otherwise determined by the Administrator.

                    (c)	In the case of Awards intended to qualify as
Performance-Based Compensation, the exercise or purchase price, if
any, shall be not less than one hundred percent (100%) of the Fair
Market Value per Share on the date of grant.

                    (d)	In the case of other Awards, such price as is
determined by the Administrator.

                                 -10-

<PAGE>

                    (e)	Notwithstanding the foregoing provisions of this
Section 7.01, in the case of an Award issued pursuant to Section 6.04,
above, the exercise or purchase price for the Award shall be
determined in accordance with the principles of Section 424(a) of the
Code.

            7.02.   Consideration.  Subject to Applicable Laws, the
                    -------------
consideration to be paid for the Shares to be issued upon exercise or
purchase of an Award including the method of payment, shall be
determined by the Administrator (and, in the case of an Incentive
Stock Option, shall be determined at the time of grant). In addition
to any other types of consideration the Administrator may determine,
the Administrator is authorized to accept as consideration for Shares
issued under the Plan the following; provided, however, that the
portion of the consideration equal to the par value of the Shares must
be paid in cash or other legal consideration permitted by the Cayman
General Corporation Law:

                    (a)	cash;

                    (b)	check;

                    (c)	delivery of Grantee's promissory note with such
recourse, interest, security, and redemption provisions as the
Administrator determines as appropriate;

                    (d)	if the exercise or purchase occurs on or after
the Registration Date, surrender of Shares or delivery of a properly
executed form of attestation of ownership of Shares as the
Administrator may require (including withholding of Shares otherwise
deliverable upon exercise of the Award) which have a Fair Market Value
on the date of surrender or attestation equal to the aggregate
exercise price of the Shares as to which said Award shall be exercised
(but only to the extent that such exercise of the Award would not
result in an accounting compensation charge with respect to the Shares
used to pay the exercise price unless otherwise determined by the
Administrator);

                    (e)	with respect to Options, if the exercise occurs
on or after the Registration Date, payment through a broker-dealer
sale and remittance procedure pursuant to which the Grantee (A) shall
provide written instructions to a Corporation-designated brokerage
firm to effect the immediate sale of some or all of the purchased
Shares and remit to the Corporation, out of the sale proceeds
available on the settlement date, sufficient funds to cover the
aggregate exercise price payable for the purchased Shares and (B)
shall provide written directives to the Corporation to deliver the
certificates for the purchased Shares directly to such brokerage firm
in order to complete the sale transaction; or

                    (f)	any combination of the foregoing methods of
payment.

            7.03.   Taxes.  No Shares shall be delivered under the Plan to
                    -----
any Grantee or other person until such Grantee or other person has
made arrangements acceptable to the Administrator for the satisfaction
of any foreign, federal, state, or local income and employment tax
withholding obligations, including, without limitation, obligations
incident to the receipt of Shares or the disqualifying disposition of
Shares received on exercise of an Incentive Stock Option. Upon
exercise of an Award, the Corporation shall withhold or collect from
Grantee an amount sufficient to satisfy such tax obligations.

                                 -11-

<PAGE>

       8.   Exercise of Award.
            -----------------

            8.01.   Procedure for Exercise; Rights as a Stockholder.
                    -----------------------------------------------

                    (a)	Any Award granted hereunder shall be exercisable
at such times and under such conditions as determined by the
Administrator under the terms of the Plan and specified in the Award
Agreement.

                    (b)	An Award shall be deemed to be exercised when
written notice of such exercise has been given to the Corporation in
accordance with the terms of the Award by the person entitled to
exercise the Award and full payment for the Shares with respect to
which the Award is exercised, including, to the extent selected, use
of the broker-dealer sale and remittance procedure to pay the purchase
price as provided in Section 7.02(e). Until the issuance (as evidenced
by the appropriate entry on the books of the Corporation or of a duly
authorized transfer agent of the Corporation) of the stock certificate
evidencing such Shares, no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to Shares
subject to an Award, notwithstanding the exercise of an Option or
other Award. The Corporation shall issue (or cause to be issued) such
stock certificate promptly upon exercise of the Award. No adjustment
will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as
provided in the Award Agreement or Section 10, below.

            8.02.   Exercise of Award Following Termination of Continuous
                    -----------------------------------------------------
Service.
-------

                    (a)	An Award may not be exercised after the
termination date of such Award set forth in the Award Agreement and
may be exercised following the termination of a Grantee's Continuous
Service only to the extent provided in the Award Agreement.

                    (b)	Where the Award Agreement permits a Grantee to
exercise an Award following the termination of the Grantee's
Continuous Service for a specified period, the Award shall terminate
to the extent not exercised on the last day of the specified period or
the last day of the original term of the Award, whichever occurs
first.

                    (c)	Any Award designated as an Incentive Stock Option
to the extent not exercised within the time permitted by law for the
exercise of Incentive Stock Options following the termination of a
Grantee's Continuous Service shall convert automatically to a Non-
Qualified Stock Option and thereafter shall be exercisable as such to
the extent exercisable by its terms for the period specified in the
Award Agreement.

       9.   Conditions upon Issuance of Shares. Shares shall not be
            ----------------------------------
issued pursuant to the exercise of an Award unless the exercise of
such Award and the issuance and delivery of such Shares pursuant
thereto shall comply with all Applicable Laws, and shall be further
subject to the approval of counsel for the Corporation with respect to
such compliance. As a condition to the exercise of an Award, the
Corporation may require the person exercising such Award to represent
and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the
Corporation, such a representation is required by any Applicable Laws.

                                 -12-

<PAGE>

       10.  Adjustments upon Changes in Capitalization.  Subject to any
            ------------------------------------------
required action by the stockholders of the Corporation, the number of
Shares covered by each outstanding Award, and the number of Shares
which have been authorized for issuance under the Plan but as to which
no Awards have yet been granted or which have been returned to the
Plan, the exercise or purchase price of each such outstanding Award,
the maximum number of Shares with respect to which Options and SARs
may be granted to any Grantee in any fiscal year of the Corporation,
as well as any other terms that the Administrator determines require
adjustment shall be proportionately adjusted for (a) any increase or
decrease in the number of issued Shares resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification
of the Shares, or similar transaction affecting the Shares, (b) any
other increase or decrease in the number of issued Shares effected
without receipt of consideration by the Corporation, or (c) as the
Administrator may determine in its discretion, any other transaction
with respect to Common Stock to which Section 424(a) of the Code
applies or a similar transaction; provided, however that conversion of
any convertible securities of the Corporation shall not be deemed to
have been "effected without receipt of consideration." Such adjustment
shall be made by the Administrator and its determination shall be
final, binding and conclusive. Except as the Administrator determines,
no issuance by the Corporation of shares of stock of any class, or
securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason hereof shall be made with respect
to, the number or price of Shares subject to an Award.

       11.   Corporate Transactions/Changes in Control/Related Entity
             --------------------------------------------------------
Dispositions.
------------

             11.01. Termination of Award to Extent Not Assumed.
                    ------------------------------------------

                    (a)	Corporate Transaction.  Effective upon the
consummation of a Corporate Transaction, all outstanding Awards under
the Plan shall terminate; provided, however, that all such Awards
shall not terminate to the extent they are Assumed in connection with
the Corporate Transaction.

                    (b)	Related Entity Disposition.  Effective upon the
consummation of a Related Entity Disposition, for purposes of the Plan
and all Awards, there shall be a deemed termination of Continuous
Service of each Grantee who is at the time engaged primarily in
service to the Related Entity involved in such Related Entity
Disposition and each Award of such Grantee which is at the time
outstanding under the Plan shall be exercisable in accordance with the
terms of the Award Agreement evidencing such Award. However, such
Continuous Service shall not be deemed to terminate as to the portion
of any such award that is Assumed.

             11.02. Acceleration of Award upon Corporate Transaction/
                    -------------------------------------------------
Change in Control/Related Entity Disposition.
--------------------------------------------

                    (a)	Corporate Transaction.  Except as provided
                        ---------------------
otherwise in an individual Award Agreement, in the event of a
Corporate Transaction and:

                          (i)	for the portion of each Award that is
Assumed, then such Award (if assumed), the replacement Award (if
replaced), or the cash incentive program automatically shall become
fully vested, exercisable and payable and be released from any
repurchase or forfeiture rights (other than repurchase rights
exercisable at Fair Market Value) for all of the Shares at the time
represented by such Assumed portion of the Award, immediately upon
termination of the Grantee's Continuous Service (substituting the
successor employer corporation, if any, for "Corporation or Related

                                 -13-

<PAGE>

Entity" for the definition of "Continuous Service") if such Continuous
Service is terminated by the successor company or the Corporation
without Cause or voluntarily by the Grantee with Good Reason within
twelve (12) months of the Corporate Transaction; and

                          (ii)	for the portion of each Award that is not
Assumed, such portion of the Award shall automatically become fully
vested and exercisable and be released from any repurchase or
forfeiture rights (other than repurchase rights exercisable at Fair
Market Value) for all of the Shares at the time represented by such
portion of the Award, immediately prior to the specified effective
date of such Corporate Transaction.

                    (b)	Change in Control.  Except as provided otherwise
                        -----------------
in an individual Award Agreement, following a Change in Control (other
than a Change in Control which also is a Corporate Transaction) and
upon the termination of the Continuous Service of a Grantee if such
Continuous Service is terminated by the Corporation or Related Entity
without Cause or voluntarily by the Grantee with Good Reason within
twelve (12) months of a Change in Control, each Award of such Grantee
which is at the time outstanding under the Plan automatically shall
become fully vested and exercisable and be released from any
repurchase or forfeiture rights (other than repurchase rights
exercisable at Fair Market Value), immediately upon the termination of
such Continuous Service.

                    (c) Related Entity Disposition.  Except as provided
                        --------------------------
otherwise in an individual Award Agreement, in the event of a Related
Entity Disposition and:

                          (i)	for the portion of each Award that is
Assumed, then such Award (if assumed), the replacement Award (if
replaced), or the cash incentive program automatically shall become
vested, exercisable and payable and be released from any repurchase or
forfeiture rights (other than repurchase rights exercisable at Fair
Market Value) for all of the Shares at the time represented by such
Assumed portion of the Award, immediately upon termination of the
Grantee's Continuous Service (substituting the successor employer
corporation, if any, for "Corporation or Related Entity" for the
definition of "Continuous Service") if such Continuous Service is
terminated by the successor company without Cause or voluntarily by
the Grantee with Good Reason within twelve (12) months of the Related
Entity Disposition; and

                          (ii)	for the portion of each Award of a Grantee
who is at the time engaged primarily in service to the Related Entity
involved in such Related Entity Disposition that is not Assumed, such
portion of the Award of such Grantee automatically shall become fully
vested and exercisable and be released from any repurchase or
forfeiture rights (other than repurchase rights exercisable at Fair
Market Value) for all of the Shares at the time represented by such
portion of the Award, immediately prior to the specified effective
date of such Related Entity Disposition.

                    (d) Effect of Acceleration on Incentive Stock Options.
                        -------------------------------------------------
The portion of any Incentive Stock Option accelerated under this
Section 11 in connection with a Corporate Transaction, Change in
Control or Related Entity Disposition shall remain exercisable as an
Incentive Stock Option under the Code only to the extent the $100,000
dollar limitation of Section 422(d) of the Code is not exceeded. To
the extent such dollar limitation is exceeded, the accelerated excess
portion of such Option shall be exercisable as a Non-Qualified Stock
Option.

                                 -14-

<PAGE>

       12.   Effective Date and Term of Plan.  The Plan shall become
             -------------------------------
effective upon the earlier to occur of its adoption by the Board or
its approval by the stockholders of the Corporation. It shall continue
in effect for a term of ten (10) years unless sooner terminated.
Subject to Section 17, below, and Applicable Laws, Awards may be
granted under the Plan upon its becoming effective.

       13.   Amendment, Suspension or Termination of the Plan. The Board
             ------------------------------------------------
may at any time amend, suspend or terminate the Plan. To the extent
necessary to comply with Applicable Laws, the Corporation shall obtain
stockholder approval of any Plan amendment in such a manner and to
such a degree as required. No Award may be granted during any
suspension of the Plan or after termination of the Plan. Any
amendment, suspension or termination of the Plan (including
termination of the Plan under Section 12, above) shall not affect
Awards already granted, and such Awards shall remain in full force and
effect as if the Plan had not been amended, suspended or terminated,
unless mutually agreed otherwise between the Grantee and the
Administrator, which agreement must be in writing and signed by the
Grantee and the Corporation.

       14.   Reservation of Shares. The Corporation, during the term of
             ---------------------
the Plan, will at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan.
The inability of the Corporation to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the
Corporation's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Corporation of any
liability in respect of the failure to issue or sell such Shares as to
which such requisite authority shall not have been obtained.

       15.   No Effect on Terms of Employment/Consulting Relationship.
             --------------------------------------------------------
The Plan shall not confer upon any Grantee any right with respect to
the Grantee's Continuous Service, nor shall it interfere in any way
with his or her right or the Corporation's right to terminate the
Grantee's Continuous Service at any time, with or without Cause, and
with or without notice. The Corporation's ability to terminate the
employment of a Grantee who is employed at will is in no way affected
by its determination that the Grantee's Continuous Service has been
terminated for Cause for the purposes of this Plan.

       16.   No Effect on Retirement and Other Benefit Plans.  Except as
             -----------------------------------------------
specifically provided in a retirement or other benefit plan of the
Corporation or a Related Entity, Awards shall not be deemed
compensation for purposes of computing benefits or contributions under
any retirement plan of the Corporation or a Related Entity, and shall
not affect any benefits under any other benefit plan of any kind or
any benefit plan subsequently instituted under which the availability
or amount of benefits is related to level of compensation. The Plan is
not a "Retirement Plan" or "Welfare Plan" under the Employee
Retirement Income Security Act of 1974, as amended.

       17.   Stockholder Approval.  The grant of Incentive Stock Options
             --------------------
under the Plan shall be subject to approval by the stockholders of the
Corporation within twelve (12) months before or after the date the
Plan is adopted excluding Incentive Stock Options issued in
substitution for outstanding Incentive Stock Options pursuant to
Section 424(a) of the Code. Such stockholder approval shall be
obtained in the degree and manner required under Applicable Laws. The
Administrator may grant Incentive Stock Options under the Plan prior
to approval by the stockholders, but until such approval is obtained,
no such Incentive Stock Option shall be exercisable. In the event that
stockholder approval is not obtained within the twelve (12) month

                                 -15-

<PAGE>

period provided above, all Incentive Stock Options previously granted
under the Plan shall be exercisable as Non-Qualified Stock Options.

                                 -16-

<PAGE>

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