Document:

Exhibit 10.20

                            Design Services Agreement

This Agreement for Professional Services (the "Agreement") is made and effective
this July 5, 2005, between Execute Sports (the "Client"), a corporation
organized and existing under the laws of the Nevada, with its head office
located at 1284 Puerta Del Sol, Suite 150, San Clemente, CA 92673: and Chris
Martin, an individual, with his place of residence at 34192 Doheny Park Rd
Capistrano Beach, CA 92624 ("Contractor"):

     WHEREAS, Client finds that the Contractor is willing to perform certain
     work hereinafter described in accordance with the provisions of this
     Agreement; and

WHEREAS, Client finds that the Contractor is qualified to perform the work, all
relevant factors considered, and that such performance will be in furtherance of
Client's business.

NOW, THEREFORE, in consideration of the mutual covenants set forth herein and
intending to be legally bound, the parties hereto agree as follows:

1.       SERVICES TO CLIENT

The Contractor shall provide the following ("Services") to Client:

Brand, logo and other design work for the Client's existing products as well as
those in development. Collaboration on co-branding strategies with marketing and
distribution partners and channels.

2.       PAYMENT AND INVOICING TERMS

2.1      Payment for Services

      The Client will pay Contractor 40,000 shares of its common stock with
      "piggy back" registration rights in lieu of cash.

2.2      Reimbursable Costs

      Client shall reimburse, based on written pre-authorization, the Contractor
      all costs incurred in connection with the Services rendered. Reimbursable
      costs include, but are not limited to, travel costs, subcontractors,
      materials, computer costs, telephone, copies, delivery, etc. that are
      attributable to a project or Service (the "Reimbursable Costs"). Travel
      costs are defined as air travel, lodging, meals and incidentals, ground
      transportation, tools, and all costs associated with travel. All
      extraordinary travel expenses must receive Client's approval. The
      Contractor shall provide to Client substantiation of Reimbursable Costs
      incurred.

2.3      Invoicing

      Invoices will submitted monthly by the Contractor for payment by Client.
      Payment is due upon receipt and is past due Five (5) business days from
      receipt of invoice. If Client has any valid reason for disputing any
      portion of an invoice, Client will so notify the Contractor within Three
      (3) calendar days of receipt of invoice by Client, and if no such
      notification is given, the invoice will be deemed valid. The portion of
      the Contractor's invoice which is not in dispute shall be paid in
      accordance with the procedures set forth herein.
<PAGE>

      A finance charge of Two Percent [2%] per month on the unpaid amount of an
      invoice, or the maximum amount allowed by law, will be charged on past due
      accounts. Payments by Client will thereafter be applied first to accrued
      interest and then to the principal unpaid balance. Any attorney fees,
      court costs, or other costs incurred in collection of delinquent accounts
      shall be paid by Client. If payment of invoices is not current, the
      Contractor may suspend performing further work.

2.4      Taxes

      All amounts payable pursuant to this Agreement are exclusive of taxes.
      Accordingly, there will be added to any such amount payable by Client the
      monetary sum equal to any and all current and future applicable taxes,
      however designated, incurred as a result of or otherwise in connection
      with this Agreement or the Services, including without limitation state
      and local privilege, excise, sales, services, withholding, and use taxes
      and any taxes or other amounts in lieu thereof paid or payable by Client
      (other than taxes based on the Contractor's net income). If Client does
      not pay such taxes, the Contractor may make such payments and Client will
      reimburse the Contractor for those payments. Client will hold the
      Contractor harmless for any payments made by Client pursuant to this
      Section 2.4.

3.       CHANGES

Client may, with the approval of the Contractor, issue written directions within
the general scope of any Services to be ordered. Such changes (the "Change
Order") may be for additional work or the Contractor may be directed to change
the direction of the work covered by the Task Order, but no change will be
allowed unless agreed to by the Contractor in writing.

4.       STANDARD OF CARE

     The Contractor warrants that it services shall be performed by personnel
     possessing competency consistent with applicable industry standards. No
     other representation, express or implied, and no warranty or guarantee are
     included or intended in this Agreement, or in any report, opinion,
     deliverable, work product, document or otherwise. Furthermore, no guarantee
     is made as to the efficacy or value of any services performed or software
     developed. THIS SECTION SETS FORTH THE ONLY WARRANTIES PROVIDED BY THE
     CONTRACTOR CONCERNING THE SERVICES AND RELATED WORK PRODUCT. THIS WARRANTY
     IS MADE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
     INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF FITNESS FOR A
     PARTICULAR PURPOSE, MERCHANTABILITY, NON-INFRINGEMENT, TITLE OR OTHERWISE.

5.       LIABILITY

5.1      Limitation

      The Contractor's liability, including but not limited to Client's claims
      of contributions and indemnification related to third party claims arising
      out of services rendered by the Contractor, and for any losses, injury or
      damages to persons or properties or work performed arising out of or in
      connection with this Agreement and for any other claim, shall be limited
      to the lesser of (i) [AMOUNT] or (ii) payment received by the Contractor
      from Client for the particular service provided giving rise to the claim.
      Notwithstanding anything to the contrary in this Agreement, the Contractor
      shall not be liable for any special, indirect, consequential, lost
      profits, or punitive damages. Client agrees to limit the Contractor's
      liability to Client and any other third party for any damage on account of
      any error, omission or negligence to a sum not to exceed the lesser of (i)
      [AMOUNT] or (ii) the payment received by the Contractor for the particular
      service provided giving rise to the claim. The limitation of liability set
      forth herein is for any and all matters for which the Contractor may
      otherwise have liability arising out of or in connection with this
      Agreement, whether the claim arises in contract, tort, statute, or
      otherwise.
<PAGE>

5.2      Remedy

      Client's exclusive remedy for any claim arising out of or relating to this
      Agreement will be for the Contractor, upon receipt of written notice,
      either (i) to use commercially reasonable efforts to cure, at its expense,
      the matter that gave rise to the claim for which the Contractor is at
      fault, or (ii) return to Client the fees paid by Client to the Contractor
      for the particular service provided that gives rise to the claim, subject
      to the limitation contained in Section 5.1. Client agrees that it will not
      allege that this remedy fails its essential purpose.

5.3      Survival

      Articles 2, 4, 5, and 6 survive the expiration or termination of this
Agreement for any reason.

6.       MISCELLANEOUS

6.1      Insecurity and Adequate Assurances

      If reasonable grounds for insecurity arise with respect to Client's
      ability to pay for the Services in a timely fashion, the Contractor may
      demand in writing adequate assurances of Client's ability to meet its
      payment obligations under this Agreement. Unless Client provides the
      assurances in a reasonable time and manner acceptable to the Contractor,
      in addition to any other rights and remedies available, Client may
      partially or totally suspend its performance while awaiting assurances,
      without liability to Client.

6.2      Severability

      Should any part of this Agreement for any reason be declared invalid, such
      decision shall not affect the validity of any remaining provisions, which
      remaining provisions shall remain in full force and effect as if this
      Agreement had been executed with the invalid portion thereof eliminated,
      and it is hereby declared the intention of the parties that they would
      have executed the remaining portion of this Agreement without including
      any such part, parts, or portions which may, for any reason, be hereafter
      declared invalid. Any provision shall nevertheless remain in full force
      and effect in all other circumstances.

6.3      Modification and Waiver

      Waiver of breach of this Agreement by either part shall not be considered
      a waiver of any other subsequent breach.

6.4      Independent Contractor

      The Contractor is an independent contractor of Client.

6.5      Notices

      Client shall give the Contractor written notice within [NUMBER] days of
      obtaining knowledge of the occurrence of any claim or cause of action
      which Client believes that it has, or may seek to assert or allege,
      against the Contractor, whether such claim is based in law or equity,
      arising under or related to this Agreement or to the transactions
      contemplated hereby, or any act or omission to act by the Contractor with
      respect hereto. If Client fails to give such notice to the Contractor with
      regard to any such claim or cause of action and shall not have brought
      legal action for such claim or cause of action within said time period,
      Client shall be deemed to have waived, and shall be forever barred from
      bringing or asserting such claim or cause of action in any suit, action or
      proceeding in any court or before any governmental agency or authority or
      any arbitrator. All notices or other communications hereunder shall be in
      writing, sent by courier or the fastest possible means, provided that
      recipient receives a manually signed copy and the transmission method is
      scheduled to deliver within [HOURS] and shall be deemed given when
      delivered to the address specified below or such other address as may be
      specified in a written notice in accordance with this Section.
<PAGE>

      If to the Contractor:

      Chris Martin

      34192 Doheny Park Rd

      Capistrano Beach, CA 92624

      If to Client:

      Don Dallape

      Execute Sports

      1284 Puerta Del Sol, Suite 150

      San Clemente CA 92673

      Any party may, by notice given in accordance with this Section to the
      other parties, designate another address or person or entity for receipt
      of notices hereunder.

6.6      Assignment

      The Agreement is not assignable or transferable by Client. This Agreement
      is not assignable or transferable by the Contractor without the written
      consent of Client, which consent shall not be unreasonably withheld or
      delayed.

6.7      Disputes

      The Contractor and Client recognize that disputes arising under this
      Agreement are best resolved at the working level by the parties directly
      involved. Both parties are encouraged to be imaginative in designing
      mechanism and procedures to resolve disputes at this level. Such efforts
      shall include the referral of any remaining issues in dispute to higher
      authority within each participating party's organization for resolution.
      Failing resolution of conflicts at the organizational level, the
      Contractor and Client agree that any remaining conflicts arising out of or
      relating to this Contract shall be submitted to nonbinding mediation
      unless the Contractor and Client mutually agree otherwise. If the dispute
      is not resolved through non-binding mediation, then the parties may take
      other appropriate action subject to the other terms of this Agreement.

6.8      Section Headings

      Title and headings of sections of this Agreement are for convenience of
      reference only and shall not affect the construction of any provision of
      this Agreement.

6.9      Representations; Counterparts

      Each person executing this Agreement on behalf of a party hereto
      represents and warrants that such person is duly and validly authorized to
      do so on behalf of such party, with full right and authority to execute
      this Agreement and to bind such party with respect to all of its
      obligations hereunder. This Agreement may be executed (by original or
      telecopied signature) in counterparts, each of which shall be deemed an
      original, but all of which taken together shall constitute but one and the
      same instrument.

6.10     Residuals

      Nothing in this Agreement or elsewhere will prohibit or limit the
      Contractor's ownership and use of ideas, concepts, know-how, methods,
      models, data, techniques, skill knowledge and experience that were used,
      developed or gained in connection with this Agreement. The Contractor and
      Client shall each have the right to use all data collected or generated
      under this Agreement.

6.11     Non-solicitation of Employees
<PAGE>

      During and for [NUMBER] year after the term of this Agreement, Client will
      not solicit the employment of, or employ the Contractor's personnel,
      without the Contractor's prior written consent.

6.12     Cooperation

      Client will cooperate with the Contractor in taking actions and executing
      documents, as appropriate, to achieve the objectives of this Agreement.
      Client agrees that the Contractor's performance is dependent on Client's
      timely and effective cooperation with the Contractor. Accordingly, Client
      acknowledges that any delay by Client may result in the Contractor being
      released from an obligation or scheduled deadline or in Client having to
      pay extra fees for the Contractor's agreement to meet a specific
      obligation or deadline despite the delay.

6.13     Governing Law and Construction

      This Agreement will be governed by and construed in accordance with the
      laws of California, without regard to the principles of conflicts of law.
      The language of this Agreement shall be deemed to be the result of
      negotiation among the parties and their respective counsel and shall not
      be construed strictly for or against any party. Each party (i) agrees that
      any action arising out of or in connection with this Agreement shall be
      brought solely in courts of the State of California (ii) hereby consents
      to the jurisdiction of the courts of the State of California and (iii)
      agrees that, whenever a party is requested to execute one or more
      documents evidencing such consent, it shall do so immediately.

6.14     Entire Agreement; Survival

      This Agreement, including any Exhibits, states the entire Agreement
      between the parties and supersedes all previous contracts, proposals, oral
      or written, and all other communications between the parties respecting
      the subject matter hereof, and supersedes any and all prior
      understandings, representations, warranties, agreements or contracts
      (whether oral or written) between Client and the Contractor respecting the
      subject matter hereof. This Agreement may only be amended by an agreement
      in writing executed by the parties hereto.

6.15     Force Majeure

      The Contractor shall not be responsible for delays or failures (including
      any delay by the Contractor to make progress in the prosecution of any
      Services) if such delay arises out of causes beyond its control. Such
      causes may include, but are not restricted to, acts of God or of the
      public enemy, fires, floods, epidemics, riots, quarantine restrictions,
      strikes, freight embargoes, earthquakes, electrical outages, computer or
      communications failures, and severe weather, and acts or omissions of
      subcontractors or third parties.

6.16     Use By Third Parties

      Work performed by the Contractor pursuant to this Agreement are only for
      the purpose intended and may be misleading if used in another context.
      Client agrees not to use any documents produced under this Agreement for
      anything other than the intended purpose without the Contractor's written
      permission. This Agreement shall, therefore, not create any rights or
      benefits to parties other than to Client and the Contractor.

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

CONTRACTOR                                         CLIENT

Authorized Signature                               Authorized Signature

By: Chris Martin                                   By: Donald Dallape

Title:                                             Title: President and ChairmanUS GLOBAL NANOSPACE, INC.

                                 2005 STOCK PLAN

                           As Adopted August 25, 2005

1.    PURPOSE.

The  purpose  of this Plan is to  provide  incentives  to  attract,  retain  and
motivate  eligible  persons  whose  present  and  potential   contributions  are
important to the success of the  Company,  and its Parent and  Subsidiaries  (if
any), by offering them an opportunity  to  participate  in the Company's  future
performance  through awards of Options,  the right to purchase  Common Stock and
Stock Bonuses.  Capitalized terms not defined in the text are defined in Section
2.

2.    DEFINITIONS.

      As used in  this  Plan,  the  following  terms  will  have  the  following
meanings:

      "AWARD" means any award under this Plan, including any Option, Stock Award
or Stock Bonus.

      "AWARD  AGREEMENT"  means,  with respect to each Award, the signed written
agreement  between the Company and the  Participant  setting forth the terms and
conditions of the Award.

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

      "CAUSE" means any cause, as defined by applicable law, for the termination
of a Participant's  employment with the Company or a Parent or Subsidiary of the
Company.

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

      "COMPANY" means US Global Nanospace, Inc., a Delaware corporation,  or any
successor corporation.

      "COMMITTEE"  means that  committee  appointed by the Board of Directors to
administer and interpret the Plan as more particularly described in Section 5 of
the Plan; provided,  however, that the term Committee will refer to the Board of
Directors  during  such  times as no  Committee  is  appointed  by the  Board of
Directors.

      "DISABILITY" means a disability,  whether temporary or permanent,  partial
or total, as determined by the Committee.

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

      "EXERCISE  PRICE"  means  the  price at which a holder  of an  Option  may
purchase the Shares issuable upon exercise of the Option.

      "FAIR MARKET  VALUE"  means,  as of any date,  the value of a share of the
Company's Common Stock determined as follows:

<PAGE>

            (a) if such Common Stock is publicly  traded and is then listed on a
      national   securities   exchange,   its  closing  price  on  the  date  of
      determination on the principal national  securities  exchange on which the
      Common Stock is listed or admitted to trading;

            (b) if such Common Stock is quoted on the NASDAQ  National Market or
      the NASDAQ  SmallCap  Market,  its  closing  price on the NASDAQ  National
      Market  or the  NASDAQ  SmallCap  Market,  respectively,  on the  date  of
      determination;

            (c) if neither of the foregoing is  applicable,  by the Committee in
      good faith.

      "INSIDER"  means an officer or director of the Company or any other person
whose  transactions  in the Company's  Common Stock are subject to Section 16 of
the Exchange Act.

      "OPTION"  means an award of an  option  to  purchase  Shares  pursuant  to
Section 6.

      "PARENT"  means any  corporation  (other than the  Company) in an unbroken
chain of corporations ending with the Company if each of such corporations other
than the Company owns stock  possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

      "PARTICIPANT" means a person who receives an Award under this Plan.

      "PERFORMANCE FACTORS" means the factors selected by the Committee,  in its
sole and absolute  discretion,  from among the  following  measures to determine
whether the performance goals applicable to Awards have been satisfied:

            (a)   Net revenue and/or net revenue growth;

            (b)   Earnings before income taxes and amortization  and/or earnings
                  before income taxes and amortization growth;

            (c)   Operating income and/or operating income growth;

            (d)   Net income and/or net income growth;

            (e)   Earnings per share and/or earnings per share growth;

            (f)   Total  stockholder  return  and/or  total  stockholder  return
                  growth;

            (g)   Return on equity;

            (h)   Operating cash flow return on income;

            (i)   Adjusted operating cash flow return on income;

            (j)   Economic value added; and

            (k)   Individual business objectives.

<PAGE>

      "PERFORMANCE  PERIOD"  means  the  period  of  service  determined  by the
Committee,  not  to  exceed  five  years,  during  which  years  of  service  or
performance is to be measured for Stock Awards or Stock Bonuses,  if such Awards
are restricted.

      "PLAN" means this US Global  Nanospace,  Inc.  2005 Stock Plan, as amended
from time to time.

      "PURCHASE PRICE" means the price at which the Participant of a Stock Award
may purchase the Shares.

      "SEC" means the Securities and Exchange Commission.

      "SECURITIES ACT" means the Securities Act of 1933, as amended.

      "SHARES" means shares of the Company's  Common Stock reserved for issuance
under this Plan,  as adjusted  pursuant to Sections 3 and 19, and any  successor
security.

      "STOCK AWARD" means an award of Shares pursuant to Section 7.

      "STOCK  BONUS"  means  an  award  of  Shares,  or cash in lieu of  Shares,
pursuant to Section 8.

      "SUBSIDIARY" means any corporation (other than the Company) in an unbroken
chain of  corporations  beginning  with the Company if each of the  corporations
other than the last  corporation in the unbroken chain owns stock possessing 50%
or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

      "TERMINATION"  or  "TERMINATED"  means,  for  purposes  of this  Plan with
respect to a  Participant,  that the  Participant  has for any reason  ceased to
provide  services as an employee,  officer,  director,  consultant,  independent
contractor  or advisor to the Company or a Parent or  Subsidiary of the Company.
An employee will not be deemed to have ceased to provide services in the case of
(i) sick  leave,  (ii)  military  leave,  or (iii)  any other  leave of  absence
approved by the  Company,  provided  that such leave is for a period of not more
than  90  days,  unless  reemployment  upon  the  expiration  of such  leave  is
guaranteed  by contract or statute or unless  provided  otherwise  pursuant to a
formal  policy  adopted  from  time  to  time  by the  Company  and  issued  and
promulgated to employees in writing.  In the case of any employee on an approved
leave of absence, the Committee may make such provisions  respecting  suspension
of  vesting  of the Award  while on leave  from the  employ of the  Company or a
Subsidiary as it may deem appropriate,  except that in no event may an Option be
exercised  after the  expiration of the term set forth in the Option  agreement.
The Committee will have sole  discretion to determine  whether a Participant has
ceased to  provide  services  and the  effective  date on which the  Participant
ceased to provide services (the "Termination Date").

3.    SHARES SUBJECT TO THE PLAN.

      3.1 Number of Shares Available.  Subject to Sections 3.2 and 19, the total
aggregate  number of  Shares  reserved  and  available  for  grant and  issuance
pursuant to this Plan,  shall be 25,000,000  Shares and will include Shares that
are subject to: (a) issuance  upon exercise of an Option but cease to be subject
to such Option for any reason other than  exercise of such Option;  (b) an Award
granted  hereunder but forfeited or  repurchased  by the Company at the original
issue price;  and (c) an Award that  otherwise  terminates  without Shares being
issued.  At all times the Company shall reserve and keep  available a sufficient
number  of  Shares as shall be  required  to  satisfy  the  requirements  of all
outstanding  Options  granted  under  this  Plan and all other  outstanding  but
unvested Awards granted under this Plan.

<PAGE>

      3.2  Adjustment  of Shares.  In the event  that the number of  outstanding
shares is changed by a stock dividend,  recapitalization,  stock split,  reverse
stock split, subdivision, combination, reclassification or similar change in the
capital structure of the Company without  consideration,  then (a) the number of
Shares  reserved for issuance  under this Plan,  (b) the Exercise  Prices of and
number of Shares  subject to outstanding  Options,  and (c) the number of Shares
subject to other outstanding Awards will be proportionately adjusted, subject to
any  required  action  by the  Board  or the  stockholders  of the  Company  and
compliance with applicable securities laws; provided, however, that fractions of
a Share will not be issued but will either be replaced by a cash  payment  equal
to the Fair  Market  Value of such  fraction of a Share or will be rounded up to
the nearest whole Share, as determined by the Committee.

4.    ELIGIBILITY.

      ISOs (as  defined in Section 6 below)  may be  granted  only to  employees
(including officers and directors who are also employees) of the Company or of a
Parent  or  Subsidiary  of the  Company.  All other  Awards  may be  granted  to
employees,  officers,  directors,   consultants,   independent  contractors  and
advisors of the Company or any Parent or  Subsidiary  of the  Company,  provided
such consultants, independent contractors and advisors render bona-fide services
not in connection  with the offer and sale of  securities  in a  capital-raising
transaction  or promotion of the Company's  securities.  A person may be granted
more than one Award under this Plan.

5.    ADMINISTRATION.

      5.1   Committee.

            (a) The Plan shall be  administered  and  interpreted by a committee
consisting of two (2) or more members of the Board.

            (b) Members of the  Committee  may resign at any time by  delivering
written  notice to the Board.  The Board shall fill  vacancies in the Committee.
The  Committee  shall act by a majority of its members in office.  The Committee
may  act  either  by vote at a  meeting  or by a  memorandum  or  other  written
instrument signed by a majority of the Committee.

            (c) If the Board, in its  discretion,  does not appoint a Committee,
the Board  itself will  administer  and  interpret  the Plan and take such other
actions as the  Committee is  authorized  to take  hereunder;  provided that the
Board may take such  actions  hereunder in the same manner as the Board may take
other actions under the Certificate of  Incorporation  and bylaws of the Company
generally.

      5.2 Committee Authority.  Without limitation,  the Committee will have the
authority to:

            (a) construe and interpret  this Plan,  any Award  Agreement and any
other agreement or document executed pursuant to this Plan;

<PAGE>

            (b) prescribe,  amend and rescind rules and regulations  relating to
this Plan or any Award;

            (c) select persons to receive Awards;

            (d) determine the form and terms of Awards;

            (e) determine the number of Shares or other consideration subject to
Awards;

            (f) determine  whether Awards will be granted singly, in combination
with, in tandem with, in  replacement  of, or as  alternatives  to, other Awards
under this Plan or any other  incentive or  compensation  plan of the Company or
any Parent or Subsidiary of the Company;

            (g) grant waivers of Plan or Award conditions;

            (h) determine the vesting, exercisability and payment of Awards;

            (i)  correct  any  defect,  supply any  omission  or  reconcile  any
inconsistency in this Plan, any Award or any Award Agreement;

            (j) determine whether an Award has been earned; and

            (k) make all other  determinations  necessary or  advisable  for the
administration of this Plan.

      5.3 Committee  Discretion.  Any  determination  made by the Committee with
respect to any Award  will be made at the time of grant of the Award or,  unless
in  contravention  of any express term of this Plan or Award, at any later time,
and such  determination  will be final and  binding  on the  Company  and on all
persons  having an  interest  in any Award under this Plan.  The  Committee  may
delegate to one or more  officers of the Company the authority to grant an Award
under this Plan to Participants  who are not Insiders of the Company.  No member
of the  Committee  shall be  personally  liable for any action taken or decision
made in good faith relating to this Plan, and all members of the Committee shall
be fully  protected  and  indemnified  to the  fullest  extent  permitted  under
applicable law by the Company in respect to any such action,  determination,  or
interpretation.

6.    OPTIONS.

      The  Committee may grant  Options to eligible  persons and will  determine
whether such Options will be Incentive  Stock Options  within the meaning of the
Code  ("ISO") or  Nonqualified  Stock  Options  ("NQSOs"),  the number of Shares
subject to the Option, the Exercise Price of the Option, the period during which
the Option may be exercised,  and all other terms and  conditions of the Option,
subject to the following:

      6.1 Form of Option  Grant.  Each  Option  granted  under this Plan will be
evidenced by an Award Agreement  which will expressly  identify the Option as an
ISO or an NQSO (hereinafter  referred to as the "Stock Option  Agreement"),  and
will be in such form and contain such provisions (which need not be the same for
each Participant) as the Committee may from time to time approve, and which will
comply with and be subject to the terms and conditions of this Plan.

<PAGE>

      6.2 Date of  Grant.  The date of  grant of an  Option  will be the date on
which the  Committee  makes  the  determination  to grant  such  Option,  unless
otherwise  specified by the Committee.  The Stock Option Agreement and a copy of
this Plan will be delivered to the  Participant  within a reasonable  time after
the granting of the Option.

      6.3 Exercise Period.  Options may be exercisable  within the times or upon
the  events  determined  by the  Committee  as set  forth  in the  Stock  Option
Agreement  governing  such  Option;  provided,  however,  that no Option will be
exercisable  after the  expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or by
attribution  owns more than ten percent (10%) of the total combined voting power
of all  classes of stock of the  Company or of any Parent or  Subsidiary  of the
Company ("Ten Percent  Stockholder") will be exercisable after the expiration of
five (5) years from the date the ISO is granted.  The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically
or otherwise,  in such number of Shares or percentage of Shares as the Committee
determines, provided, however, that in all events a Participant will be entitled
to  exercise an Option at the rate of at least 20% per year over five years from
the  date  of  grant,  subject  to  reasonable   conditions  such  as  continued
employment;  and further provided that an Option granted to a Participant who is
an officer or  director  may become  fully  exercisable,  subject to  reasonable
conditions  such as  continued  employment,  at any time or  during  any  period
established by the Company.

      6.4 Exercise Price.  The Exercise Price of an Option will be determined by
the  Committee  when the Option is  granted  and may be not less than 85% of the
Fair Market  Value of the Shares on the date of grant;  provided  that:  (a) the
Exercise  Price of an ISO will be not less than 100% of the Fair Market Value of
the  Shares  on the date of  grant;  and (b) the  Exercise  Price of any  Option
granted  to a Ten  Percent  Stockholder  will not be less  than 110% of the Fair
Market  Value  of the  Shares  on the  date of  grant.  Payment  for the  Shares
purchased may be made in accordance with Section 9 of this Plan.

      6.5 Method of Exercise.  Options may be exercised  only by delivery to the
Company of a written stock option exercise agreement (the "Exercise  Agreement")
in a form  approved  by the  Committee,  (which  need  not be the  same for each
Participant),  stating the number of Shares being  purchased,  the  restrictions
imposed on the Shares purchased under such Exercise Agreement,  if any, and such
representations and agreements regarding the Participant's investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable  securities laws, together with payment
in full of the Exercise Price for the number of Shares being purchased.

      6.6  Termination.  Notwithstanding  the exercise  periods set forth in the
Stock  Option  Agreement,  exercise  of an Option  will always be subject to the
following:

      (a) If the Participant's service is Terminated for any reason except death
or Disability, then the Participant may exercise such Participant's Options only
to the extent that such Options would have been exercisable upon the Termination
Date no later than three (3) months after the  Termination  Date (or such longer
time period not exceeding  five (5) years as may be determined by the Committee,
with any exercise beyond three (3) months after the  Termination  Date deemed to
be an NQSO).

<PAGE>

      (b)  If  the   Participant's   service  is   Terminated   because  of  the
Participant's  death or  Disability  (or the  Participant  dies within three (3)
months  after a  Termination  other than for Cause or  because of  Participant's
Disability),  then the Participant's Options may be exercised only to the extent
that  such  Options  would  have  been  exercisable  by the  Participant  on the
Termination Date and must be exercised by the Participant (or the  Participant's
legal  representative)  no later than twelve (12) months  after the  Termination
Date (or  such  longer  time  period  not  exceeding  five  (5)  years as may be
determined by the Committee,  with any such exercise beyond (i) three (3) months
after the Termination Date when the Termination is for any reason other than the
Participant's  death  or  Disability,  or (ii)  twelve  (12)  months  after  the
Termination Date when the Termination is for Participant's  death or Disability,
deemed to be an NQSO).

      (c)  Notwithstanding  the  provisions in paragraph  6.6(a)  above,  if the
Participant's  service is Terminated  for Cause,  neither the  Participant,  the
Participant's estate nor such other person who may then hold the Option shall be
entitled to exercise  any Option with  respect to any Shares  whatsoever,  after
Termination,  whether  or not after  Termination  the  Participant  may  receive
payment from the Company or a Subsidiary for vacation pay, for services rendered
prior to  Termination,  for services  rendered for the day on which  Termination
occurs, for salary in lieu of notice, or for any other benefits. For the purpose
of this  paragraph,  Termination  shall be  deemed to occur on the date when the
Company  dispatches  notice or advice to the  Participant  that his  service  is
Terminated.

      6.7  Limitations  on  Exercise.  The  Committee  may specify a  reasonable
minimum  number of Shares that may be  purchased  on any  exercise of an Option,
provided  that  such  minimum  number  will not  prevent  the  Participant  from
exercising  the  Option  for the full  number  of  Shares  for  which it is then
exercisable.

      6.8 Limitations on ISO. The aggregate Fair Market Value  (determined as of
the date of grant) of Shares with respect to which ISO are  exercisable  for the
first time by a  Participant  during any calendar year (under this Plan or under
any other  incentive  stock option plan of the Company,  Parent or Subsidiary of
the Company) will not exceed $100,000. If the Fair Market Value of Shares on the
date of grant with respect to which ISO are  exercisable for the first time by a
Participant during any calendar year exceeds $100,000,  then the Options for the
first $100,000 worth of Shares to become  exercisable in such calendar year will
be ISO and the  Options  for the  amount  in  excess  of  $100,000  that  become
exercisable  in that calendar year will be NQSOs.  In the event that the Code or
the regulations  promulgated  thereunder are amended after the Effective Date of
this Plan to provide  for a different  limit on the Fair Market  Value of Shares
permitted  to be  subject to ISO,  such  different  limit will be  automatically
incorporated  herein and will apply to any Options  granted  after the effective
date of such amendment.

      6.9 Modification,  Extension or Renewal. The Committee may modify,  extend
or  renew  outstanding  Options  and  authorize  the  grant  of new  Options  in
substitution  therefore,  provided  that any such  action may not,  without  the
written consent of a Participant,  impair any of such Participant's rights under
any Option previously granted.  Any outstanding ISO that is modified,  extended,
renewed or otherwise  altered will be treated in accordance  with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding  Options
without  the  consent  of  Participants  affected  by a written  notice to them;
provided,  however, that the Exercise Price may not be reduced below the minimum
Exercise  Price  that  would be  permitted  under  Section  6.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

<PAGE>

      6.10 No  Disqualification.  Notwithstanding  any other  provision  in this
Plan,  no term of this Plan  relating  to ISO will be  interpreted,  amended  or
altered,  nor will any  discretion  or  authority  granted  under  this  Plan be
exercised,  so as to  disqualify  this Plan  under  Section  422 of the Code or,
without the consent of the  Participant  affected,  to disqualify  any ISO under
Section 422 of the Code.

7.    STOCK AWARD.

      A Stock  Award is an offer by the  Company to sell to an  eligible  person
Shares  that may or may not be  subject  to  restrictions.  The  Committee  will
determine  to whom an offer  will be made,  the  number of Shares the person may
purchase, the price to be paid (the "Purchase Price"), the restrictions to which
the Shares will be subject,  if any, and all other terms and  conditions  of the
Stock Award, subject to the following:

      7.1 Form of Stock Award.  All purchases  under a Stock Award made pursuant
to this  Plan will be  evidenced  by an Award  Agreement  (the  "Stock  Purchase
Agreement")  that  will be in such  form  (which  need  not be the same for each
Participant)  as the Committee  will from time to time approve,  and will comply
with and be subject  to the terms and  conditions  of this Plan.  The offer of a
Stock Award will be accepted by the Participant's  execution and delivery of the
Stock Purchase Agreement and payment for the Shares to the Company in accordance
with the Stock Purchase Agreement.

      7.2 Purchase Price.  The Purchase Price of Shares sold pursuant to a Stock
Award will be determined by the Committee on the date the Stock Award is granted
and may not be less than 85% of the Fair Market Value of the Shares on the grant
date, except in the case of a sale to a Ten Percent  Stockholder,  in which case
the  Purchase  Price  will be 100% of the  Fair  Market  Value.  Payment  of the
Purchase Price must be made in accordance with Section 9 of this Plan.

      7.3  Terms  of  Stock  Awards.   Stock  Awards  may  be  subject  to  such
restrictions as the Committee may impose.  These  restrictions may be based upon
completion  of a specified  number of years of service  with the Company or upon
completion of the performance  goals as set out in advance in the  Participant's
individual Stock Purchase  Agreement.  Stock Awards may vary from Participant to
Participant  and between groups of  Participants.  Prior to the grant of a Stock
Award subject to  restrictions,  the Committee  shall: (a) determine the nature,
length and starting  date of any  Performance  Period for the Stock  Award;  (b)
select  from among the  Performance  Factors  to be used to measure  performance
goals, if any; and (c) determine the number of Shares that may be awarded to the
Participant.  Prior to the  transfer of any Stock  Award,  the  Committee  shall
determine  the  extent to which such Stock  Award has been  earned.  Performance
Periods may overlap and Participants may participate simultaneously with respect
to Stock  Awards  that are  subject to  different  Performance  Periods and have
different performance goals and other criteria.

      7.4 Termination During Performance  Period. If a Participant is Terminated
during a  Performance  Period  for any  reason,  then such  Participant  will be
entitled to payment  (whether in Shares,  cash or otherwise) with respect to the
Stock  Award  only  to the  extent  earned  as of the  date  of  Termination  in
accordance with the Stock Purchase  Agreement,  unless the Committee  determines
otherwise.

<PAGE>

8.    STOCK BONUSES.

      8.1  Awards of Stock  Bonuses.  A Stock  Bonus is an award of  Shares  for
extraordinary  services  rendered to the Company or any Parent or  Subsidiary of
the Company.  A Stock Bonus will be awarded  pursuant to an Award Agreement (the
"Stock Bonus  Agreement")  that will be in such form (which need not be the same
for each Participant) as the Committee will from time to time approve,  and will
comply  with and be subject to the terms and  conditions  of this Plan.  A Stock
Bonus may be awarded upon  satisfaction of such performance goals as are set out
in advance in the  Participant's  individual  Award Agreement (the  "Performance
Stock  Bonus  Agreement")  that will be in such form (which need not be the same
for each Participant) as the Committee will from time to time approve,  and will
comply  with and be subject  to the terms and  conditions  of this  Plan.  Stock
Bonuses  may  vary  from  Participant  to  Participant  and  between  groups  of
Participants,  and may be based upon the  achievement of the Company,  Parent or
Subsidiary and/or individual  performance factors or upon such other criteria as
the Committee may determine.

      8.2 Terms of Stock  Bonuses.  The Committee  will  determine the number of
Shares to be awarded to the Participant. If the Stock Bonus is being earned upon
the  satisfaction  of performance  goals  pursuant to a Performance  Stock Bonus
Agreement,  then the  Committee  will:  (a)  determine  the  nature,  length and
starting date of any  Performance  Period for each Stock Bonus;  (b) select from
among the Performance Factors to be used to measure the performance, if any; and
(c) determine the number of Shares that may be awarded to the Participant. Prior
to the payment of any Stock Bonus,  the Committee  shall determine the extent to
which such Stock Bonuses have been earned.  Performance  Periods may overlap and
Participants may participate  simultaneously  with respect to Stock Bonuses that
are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with
such performance  goals and criteria as may be determined by the Committee.  The
Committee may adjust the  performance  goals  applicable to the Stock Bonuses to
take into account  changes in law and  accounting  or tax rules and to make such
adjustments  as the  Committee  deems  necessary or  appropriate  to reflect the
impact of  extraordinary  or unusual  items,  events or  circumstances  to avoid
windfalls or hardships.

      8.3 Form of  Payment.  The earned  portion of a Stock Bonus may be paid to
the  Participant by the Company either  currently or on a deferred  basis,  with
such interest or dividend  equivalent,  if any, as the Committee may  determine.
Payment of an interest or dividend  equivalent  (if any) may be made in the form
of cash or whole Shares or a combination  thereof,  either in a lump sum payment
or in installments, all as the Committee will determine.

9.    PAYMENT FOR SHARE PURCHASES.

      Payment for Shares purchased pursuant to this Plan may be made in cash (by
check) or, where  expressly  approved for the  Participant  by the Committee and
where permitted by law:

            (a)  by   cancellation   of  indebtedness  of  the  Company  to  the
Participant;

            (b) by surrender  of shares that either:  (1) have been owned by the
Participant  for more than six (6)  months  and have been  paid for  within  the
meaning of SEC Rule 144; or (2) were obtained by the  Participant  in the public
market;

            (c) by waiver of compensation  due or accrued to the Participant for
services rendered;

<PAGE>

            (d) with respect only to purchases  upon exercise of an Option,  and
provided that a public market for the Company's stock exists:

                  (1) through a "same day sale"  commitment from the Participant
and a broker-dealer  that is a member of the National  Association of Securities
Dealers  (an  "NASD  Dealer")  whereby  the  Participant  irrevocably  elects to
exercise  the Option and to sell a portion of the Shares so purchased to pay for
the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt
of such Shares to forward the Exercise Price directly to the Company; or

                  (2) through a "margin"  commitment  from the Participant and a
NASD Dealer whereby the  Participant  irrevocably  elects to exercise the Option
and to pledge the Shares so purchased to the NASD Dealer in a margin  account as
security  for a loan from the NASD Dealer in the amount of the  Exercise  Price,
and whereby the NASD Dealer  irrevocably  commits upon receipt of such Shares to
forward the Exercise Price directly to the Company; or

            (f) by any combination of the foregoing.

10.   WITHHOLDING TAXES.

      10.1  Withholding   Generally.   Whenever  Shares  are  to  be  issued  in
satisfaction  of Awards  granted  under this Plan,  the  Company may require the
Participant  to remit to the Company an amount  sufficient  to satisfy  federal,
state  and local  withholding  tax  requirements  prior to the  delivery  of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount  sufficient  to  satisfy  federal,   state,  and  local  withholding  tax
requirements.

      10.2 Stock  Withholding.  When,  under  applicable tax laws, a participant
incurs tax  liability  in  connection  with the exercise or vesting of any Award
that is subject to tax  withholding  and the Participant is obligated to pay the
Company  the  amount  required  to be  withheld,  the  Committee  may  allow the
Participant  to satisfy the minimum  withholding  tax  obligation by electing to
have the  Company  withhold  from the Shares to be issued  that number of Shares
having a Fair Market Value equal to the minimum amount  required to be withheld,
determined  on  the  date  that  the  amount  of  tax  to be  withheld  is to be
determined.  All  elections by a  Participant  to have Shares  withheld for this
purpose will be made in  accordance  with the  requirements  established  by the
Committee and will be in writing in a form acceptable to the Committee.

11.   PRIVILEGES OF STOCK OWNERSHIP.

      11.1 Voting and Dividends. No Participant will have any of the rights of a
stockholder  with  respect  to any  Shares  until the  Shares  are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a stockholder and will have all the rights of a stockholder with respect to such
Shares,  including  the  right  to vote  and  receive  all  dividends  or  other
distributions made or paid with respect to such Shares;  provided,  that if such
Shares are issued  pursuant  to a Stock Award with  restrictions,  then any new,
additional  or  different  securities  the  Participant  may become  entitled to
receive with respect to such Shares by virtue of a stock  dividend,  stock split
or any other change in the corporate or capital structure of the Company will be
subject to the same restrictions as the Stock Award; provided, further, that the
Participant  will  have no  right  to  retain  such  stock  dividends  or  stock
distributions  with respect to Shares that are repurchased at the  Participant's
Purchase Price or Exercise Price pursuant to Section 13.

<PAGE>

      11.2 Financial  Statements.  The Company will provide financial statements
to each Participant  prior to such  Participant's  purchase of Shares under this
Plan, and to each  Participant  annually during the period such  Participant has
Awards  outstanding;  provided,  however,  the  Company  will not be required to
provide such financial  statements to Participants  whose services in connection
with the Company assure them access to equivalent information.

12.   NON-TRANSFERABILITY.

      Awards of Shares granted under this Plan, and any interest  therein,  will
not be  transferable  or  assignable  by the  Participant,  and  may not be made
subject to execution,  attachment or similar  process,  other than by will or by
the laws of descent and distribution. Awards of Options granted under this Plan,
and  any  interest  therein,  will  not be  transferable  or  assignable  by the
Participant,  and may not be made subject to  execution,  attachment  or similar
process,  other  than by will or by the laws of  descent  and  distribution,  by
instrument to an inter vivos or  testamentary  trust in which the options are to
be  passed  to  beneficiaries  upon  the  death  of the  trustor,  or by gift to
"immediate family" as that term is defined in 17 C.F.R. 240.16a-1(e). During the
lifetime  of  the  Participant  an  Award  will  be  exercisable   only  by  the
Participant.  During the lifetime of the Participant, any elections with respect
to an Award may be made only by the Participant  unless otherwise  determined by
the Committee and set forth in the Award  Agreement  with respect to Awards that
are not ISOs.

13.   REPURCHASE RIGHTS.

      At the  discretion  of the  Committee,  the  Company may reserve to itself
and/or its assignee(s) in the Award Agreement a right to repurchase a portion of
or all of the unvested Shares held by a Participant following such Participant's
Termination  Date.  Such  repurchase  by the  Company  shall be for cash  and/or
cancellation of purchase money indebtedness and the price per share shall be the
Participant's Exercise Price or Purchase Price, as applicable.

14.   CERTIFICATES.

      All certificates for Shares or other securities  delivered under this Plan
will be subject to such stop transfer orders,  legends and other restrictions as
the Committee may deem necessary or advisable,  including restrictions under any
applicable federal,  state or foreign securities law, or any rules,  regulations
and other  requirements of the SEC or any stock exchange or automated  quotation
system upon which the Shares may be listed or quoted.

15.   ESCROW; PLEDGE OF SHARES.

      To enforce any restrictions on a Participant's  Shares,  the Committee may
require  the  Participant  to  deposit  all  certificates  representing  Shares,
together  with stock  powers or other  instruments  of transfer  approved by the
Committee  appropriately  endorsed  in  blank,  with  the  Company  or an  agent
designated by the Company to hold in escrow until such  restrictions have lapsed
or terminated,  and the Committee may cause a legend or legends referencing such
restrictions to be placed on the certificates.

16.   EXCHANGE AND BUYOUT OF AWARDS.

      The  Committee  may,  at any  time or from  time to  time,  authorize  the
Company, with the consent of the respective Participants, to issue new Awards in
exchange for the surrender and  cancellation of any or all  outstanding  Awards.
The Committee may at any time buy from a Participant an Award previously granted
with  payment in cash,  Shares or other  consideration,  based on such terms and
conditions as the Committee and the Participant may agree.

<PAGE>

17.   SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.

      An Award will not be effective unless such Award is in compliance with all
applicable  federal and state  securities  laws,  rules and  regulations  of any
governmental  body,  and the  requirements  of any stock  exchange or  automated
quotation system upon which the Shares may then be listed or quoted, as they are
in effect on the date of grant of the Award and also on the date of  exercise or
other  issuance.  Notwithstanding  any other provision in this Plan, the Company
will have no obligation to issue or deliver  certificates  for Shares under this
Plan prior to: (a) obtaining any approvals from  governmental  agencies that the
Company  determines  are  necessary or advisable;  and/or (b)  completion of any
registration  or other  qualification  of such Shares under any state or federal
law or  ruling  of any  governmental  body  that the  Company  determines  to be
necessary or advisable.  The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the registration, qualification
or  listing  requirements  of any  state  securities  laws,  stock  exchange  or
automated  quotation  system,  and the Company  will have no  liability  for any
inability or failure to do so.

<PAGE>

18.   NO OBLIGATION TO EMPLOY.

      Nothing in this Plan or any Award  granted  under this Plan will confer or
be deemed to confer on any  Participant  any right to continue in the employ of,
or to  continue  any other  relationship  with,  the  Company  or any  Parent or
Subsidiary  of the  Company or limit in any way the right of the  Company or any
Parent or  Subsidiary  of the Company to terminate  Participant's  employment or
other relationship at any time, with or without cause.

19.   CORPORATE TRANSACTIONS.

      19.1 Assumption or Replacement of Awards by Successor. In the event of (a)
a dissolution or liquidation of the Company,  (b) a merger or  consolidation  in
which the  Company  is not the  surviving  corporation  (other  than a merger or
consolidation with a wholly-owned  subsidiary,  a reincorporation of the Company
in a  different  jurisdiction,  or  other  transaction  in  which  there  is  no
substantial  change in the  stockholders  of the Company or their relative stock
holdings  and the Awards  granted  under  this Plan are  assumed,  converted  or
replaced by the successor  corporation,  which assumption will be binding on all
Participants),  (c) a merger in which the Company is the  surviving  corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any  stockholder  that  merges,  or which owns or  controls  another
corporation  that merges,  with the Company in such  merger)  cease to own their
shares or other equity  interest in the Company,  (d) the sale of  substantially
all of the assets of the Company,  or (e) the acquisition,  sale, or transfer of
more than 50% of the  outstanding  shares  or the  Company  by  tender  offer or
similar transaction,  any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption,  conversion or
replacement  will  be  binding  on all  Participants.  In the  alternative,  the
successor  corporation may substitute equivalent Awards or provide substantially
similar  consideration  to Participants  as was provided to stockholders  (after
taking into  account the  existing  provisions  of the  Awards).  The  successor
corporation may also issue,  in place of outstanding  Shares of the Company held
by the  Participant,  substantially  similar shares or other property subject to
repurchase restrictions no less favorable to the Participant.  In the event such
successor  corporation  (if any)  refuses  to assume or  substitute  Awards,  as
provided above,  pursuant to a transaction described in this Subsection 19.1, or
if the Committee so provides in an Award Agreement (i) the vesting of any or all
Awards  granted  pursuant  to  this  Plan  will  accelerate  upon a  transaction
described  in this  Section 19 and (ii) any or all Options  granted  pursuant to
this Plan will  become  exercisable  in full prior to the  consummation  of such
event at such time and on such conditions as the Committee  determines.  If such
Options  are  not  exercised   prior  to  the   consummation  of  the  corporate
transaction, they shall terminate at such time as determined by the Committee.

      19.2 Other  Treatment of Awards.  Subject to any greater rights granted to
Participants under the foregoing  provisions of this Section 19, in the event of
the occurrence of any  transaction  described in Section 19.1,  any  outstanding
Awards  will be treated  as  provided  in the  applicable  agreement  or plan of
merger, consolidation, dissolution, liquidation, or sale of assets.

      19.3 Assumption of Awards by the Company. The Company,  from time to time,
also may substitute or assume  outstanding  awards  granted by another  company,
whether in connection with an acquisition of such other company or otherwise, by
either;  (a)  granting  an Award under this Plan in  substitution  of such other
company's award; or (b) assuming such award as if it had been granted under this
Plan if the terms of such  assumed  award  could be applied to an Award  granted
under this Plan.  Such  substitution  or assumption  will be  permissible if the
holder of the  substituted  or  assumed  award  would have been  eligible  to be
granted an Award  under this Plan if the other  company had applied the rules of
this Plan to such grant.  In the event the Company  assumes an award  granted by
another  company,  the terms and conditions of such award will remain  unchanged
(except  that the  exercise  price and the number and nature of Shares  issuable
upon  exercise of any such option  will be  adjusted  appropriately  pursuant to
Section  424(a) of the  Code).  In the event the  Company  elects to grant a new
Option rather than assuming an existing  option,  such new Option may be granted
with a similarly adjusted Exercise Price.

<PAGE>

20.   ADOPTION AND STOCKHOLDER APPROVAL.

      This Plan will become  effective on the date on which it is adopted by the
Board (the "Effective  Date").  Upon the Effective Date, the Committee may grant
Awards pursuant to this Plan. The Company intends to seek  stockholder  approval
of the Plan within twelve (12) months after the date this Plan is adopted by the
Board; provided, however, if the Company fails to obtain stockholder approval of
the Plan during such 12-month  period,  pursuant to Section 422 of the Code, any
Option  granted as an ISO at any time under the Plan will not  qualify as an ISO
within the meaning of the Code and will be deemed to be an NQSO.

21.   TERM OF PLAN/GOVERNING LAW.

      Unless earlier terminated as provided herein, this Plan will terminate ten
(10) years from the date this Plan is adopted by the Board or, if  earlier,  the
date of stockholder  approval.  This Plan and all agreements thereunder shall be
governed by and construed in accordance with the laws of the State of Delaware.

22.   AMENDMENT OR TERMINATION OF PLAN.

      The Board may at any time  terminate  or amend  this Plan in any  respect,
including  without  limitation  amendment  of any  form of  Award  Agreement  or
instrument to be executed  pursuant to this Plan;  provided,  however,  that the
Board will not, without the approval of the  stockholders of the Company,  amend
this Plan in any manner that requires such stockholder approval.

23.   NONEXCLUSIVITY OF THE PLAN.

      Neither the  adoption of this Plan by the Board,  the  submission  of this
Plan to the stockholders of the Company for approval,  nor any provision of this
Plan will be construed as creating any  limitations on the power of the Board to
adopt  such  additional  compensation  arrangements  as it may  deem  desirable,
including,  without  limitation,  the  granting  of stock  options  and  bonuses
otherwise than under this Plan, and such  arrangements  may be either  generally
applicable or applicable only in specific cases.

24.   ACTION BY COMMITTEE.

      Any action  permitted  or  required  to be taken by the  Committee  or any
decision or  determination  permitted  or  required to be made by the  Committee
pursuant  to this  Plan  shall  be  taken  or made in the  Committee's  sole and
absolute discretion.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]