Document:

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Exhibit 10.3
Agreement with Manoj Hippola

                    EMPLOYMENT AND NON-COMPETITION AGREEMENT

This  AGREEMENT,  effective  as of the 21st day of  April  2004,  is made by and
between Liska Biometry,  Inc., a Florida corporation (the "Company"),  and Manoj
Hippola, a resident of the province of Ontario (the "Executive").

 RECITALS

A. The  Company is in the  business  of  developing  a Finger  Print  Biometrics
business (the "Business");

B. The Company desires to retain the services of the Executive;

C. The Executive is willing to be employed by the Company; and

D. The parties  hereto desire to enter into this Agreement in order to set forth
the respective  rights,  limitations and obligations of both the Company and the
Executive  with respect to the  Executive's  employment  with the  Company,  the
Confidential  Information,  the  Discoveries,  and the other  matters  set forth
herein.

         NOW THEREFORE,  in  consideration of the employment of the Executive by
the Company,  the compensation paid to the Executive and the Company  continuing
to  provide  Confidential  Information  to the  Executive,  as well as the other
mutual  promises  and  consideration  hereinafter  contained,  the  receipt  and
sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as
follows:

1.       Term.

Subject to the provisions for termination  hereinafter provided, the Executive's
employment  hereunder  shall  commence  on the first day of the month  after the
Company receives  funding in the amount of US$ 100,000 (the  "Employment  Date")
and unless otherwise extended,  end one year after the Employment Date commences
(the  "Contract  Termination  Date").  The  Contract  Termination  Date shall be
automatically  extended for a successive  one (1) year period at the end of each
contract year unless the Board of Directors of the Company (the  "Board")  shall
give  contrary  notice to the  Executive,  pursuant  to the terms of  Section 11
below,  at least ninety (90) days prior to the end of the each contract year. In
the event that the Company does not receive funding in the amount of $100,000 on
or before December 31, 2004, this agreement shall become null and void.

2.       Position and Duties.

During  the  Employment  Term,  the  Executive  shall  serve as Chief  Financial
Officer.  The  Executive  will  report  to the  Company's  President  and to the
Company's Board of Directors as required by law and by the Company's  governance
policy  in  effect  from  time to time,  and  perform  such  employment  duties,
consistent with his position, as specified in the Job Description. The Executive
shall  not have  the  ability  to enter  into any  agreements  or  contracts  or
otherwise  legally  bind the Company  without  the  express  consent and written
approval of the President.  The Executive shall devote his full productive time,
energy  and  ability  to the  proper  and  efficient  conduct  of the  Company's
business. The Executive may only devote reasonable periods of time to service as
a Director of other  businesses,  with the prior written approval and consent of
the  President,  to the extent that such  service  does not  interfere  with the
performance of his obligations hereunder. Similarly, the Executive may engage in
such  charitable  or  community  activities  as  shall  not  interfere  with the
performance of his obligations hereunder. The Executive shall observe and comply
with all lawful and reasonable  rules of conduct set by the Board for executives
of the  Company,  and shall  endeavor to promote the  business,  reputation  and
interests of the Company.

3.       Compensation.

Base Compensation.

As defined in further detail below, during the Employment Term the Company shall
pay the Executive a Base  Compensation,  subject to annual review, as the Board,
in its sole discretion,  may determine.  The Base Compensation  shall be paid in
Canadian Dollars in accordance with the Company's normal payroll practices.  The
Base Compensation paid to the Executive shall be sixty five thousand (C$ 65,000)
per year, payable bi-weekly in arrears.

Other Compensation.

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Annual  Bonus:  The Executive  shall be eligible to receive a Performance  Bonus
(the "Bonus") for the achievement of the performance  goals as determined by the
Board, and dependent upon the financial  performance of the Company.  The annual
bonus  may  be  paid  in  cash,  free  trading  stock,  restricted  stock,  or a
combination thereof.

The Executive  shall be granted 100,000 free trading shares upon signing of this
agreement.

 The Executive shall be granted 1,200,000  restricted common shares upon signing
of  this  agreement.  The  Executive  and the  Company  acknowledge  that  these
restricted  shares of common stock have no fair market  value at this time.  The
Company cannot  guarantee  that this  situation  will change in the  foreseeable
future.  The Executive  acknowledges that he has no claim on the Company for any
valuation of restricted common shares received in this regard. In the event that
it is  conclusively  determined  by Canada  Customs  and  Revenue  Agency or the
Ontario Ministry of Revenue that this  compensation  has  consequences  that are
materially adverse to the interests of the Executive, the Executive may elect to
waive his entitlement to such shares with retroactive  effect, in which case the
Company  shall award the  Executive an equal number of stock  options  under the
prevailing  terms of the  Company's  Employee  Stock  Option Plan at an exercise
price equal to the value  established  by the  Company's  Board of  Directors to
represent  fair  value  of the  shares  as of the  date  of  execution  of  this
agreement.

(iii) The Executive  shall be eligible to participate  in any Company  incentive
plan established by the Company under the terms and conditions of the Plan.

Expenses.

The  Executive  shall  be  entitled  to  receive  prompt  reimbursement  for all
reasonable  business  expenses  pre-approved by the President  (exclusive of any
commuting  expenses)  incurred  by him in the  course of his  employment  by the
Company.

Other Benefits.

(i)  Insurance:  The Executive  shall be entitled to  participate  in or receive
benefits on the same basis as other executive  officers of the Company under any
employee  benefit  plans  and  arrangements   applicable  to  senior  management
including life insurance plans,  pension and profit-sharing  plans,  medical and
health plans or other employee welfare benefit plans, annual paid vacation, sick
leave, sick pay and short-term and long-term  disability  benefits and holidays,
as in effect from time to time.

(ii)  Vacation:  The  Executive  shall be entitled to receive three (3) weeks of
paid  vacation  per  contract  year,  which  shall  accrue from April 1, 2003 to
recognize  the  efforts  of the  executive  in  the  founding  of the  Company's
business.  Such  vacation  days  shall  accrue  and  become  vested on the first
anniversary  day of each year of the  Employment  Term.  This  benefit  shall be
reviewed  by the  Board of  Directors  and the  Executive  from time to time and
increased when appropriate.

(iii)  Holidays:  The  Executive  shall be  entitled to the  designated  Company
holidays.

Termination.
The  Executive's  employment  by the  Company  pursuant  hereto  is  subject  to
termination during the Employment Term as follows:

(a) Death. The Executive's  employment hereunder shall terminate upon his death.
In such event, the Executive's Base  Compensation and any prorated amount of the
Bonus,  if any,  shall  be paid  through  the  date  of the  Executive's  death.
Eligibility  for all  other  benefits  shall be  determined  by the terms of any
applicable plan or program.

(b) Disability.  The Company may, by written notice to the Executive,  terminate
the Executive's  employment if, as a result of the Executive's incapacity due to
physical or mental illness, the Executive shall have been absent from his duties
hereunder for ninety (90)  consecutive days or for a total of one hundred eighty
(180) days in any three  hundred  sixty five (365) day period  (the  "Disability
Period"). In the event of such termination, the Executive shall receive the same
benefits  payable in the event of death;  provided  however that, if the Company
should adopt a disability  policy at any time during the  Employment  Term,  the
terms of such policy shall govern.

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(c) Termination by the Company for Cause or Executive's  Voluntary  Termination.
The Company  shall be entitled to terminate  the  Executive's  employment at any
time, by written notice to the Executive, for Cause, as defined herein:

(i) fraud or embezzlement on the part of the Executive;

(ii) conviction of or the entry of a plea of nolo contendere by the Executive to
any felony or other crime of fraud or moral turpitude;

(iii) any act of willful  or  negligent  misconduct  by the  Executive  which is
either intended to result in substantial personal enrichment of the Executive at
the expense of the Company or any of its  subsidiaries  or affiliates,  or has a
material adverse impact on the business or reputation of the Company, any of its
subsidiaries or affiliates,  or directors or other officers (such  determination
to be made by the Company's Board of Directors in the good faith exercise of its
reasonable judgment); or

In the event of termination for Cause,  the Executive's  Base  Compensation  and
other  benefits  shall be paid  through the Date of  Termination  (as  hereafter
defined),  and the Executive  shall have no further  rights to  compensation  or
benefits  other  than as  determined  by the  terms  of any  applicable  plan or
program.  The  Executive  shall not be  eligible  to receive  any portion of his
Annual Bonus.

The Executive may terminate his  employment  hereunder  voluntarily  at any time
with  ninety  (90)  day's  written  notice  to the  Board.  In the  event of the
Executive's  voluntary  termination,  the Executive shall be entitled to receive
his Base  Compensation and prorated Bonus, if any, and benefits through the Date
of Termination.

(d) Without Cause.  The Company may terminate the Executive's  employment at any
time by giving  written  notice to the Executive of its intent to terminate this
Agreement without Cause. In such event:

         (i) the  Executive  shall be paid his Base  Compensation,  any prorated
Bonus and other benefits to which the Executive is entitled for the remainder of
the Employment  Term,  provided that the Base  Compensation  shall represent not
less than 3 months pay in lieu of notice of termination;

         (ii) all stock  options  held by the  Executive  under any stock option
plan of the Company shall become fully exercisable, and shall remain exercisable
for a period of 180 days following the Date of Termination; and

         (iii) the  Executive  shall  have such  other  rights in respect of any
incentive,  other  compensation  plan or  benefit  plan or program as may be set
forth in such plan or program.

(e) Change in Control.  Notwithstanding  any other  provision of this Agreement,
should a "change  in  control"  occur,  the  Employee,  at his sole  option  and
discretion, may terminate his employment under this Agreement at any time within
one (1) year after such change of control upon fifteen (15) days notice.  In the
event of such termination, Company shall pay to the Employee a severance payment
("Severance  Payment")  equal to three (3) times the base  amount as  defined in
paragraph 3(a) above. The amount  determined  under the foregoing  provisions of
this  Section  4(e)  shall be  payable  no later  than one (1)  month  after the
effective date of the Employee's termination of employment.  A change in control
means:  the  acquisition,  without  the  approval  of  the  Company's  board  of
directors, by any person or entity, other than Company or a "related entity," of
more than twenty  percent (20%) of the  outstanding  shares of Company's  voting
common  stock  through  a  tender  offer,  exchange  offer  or  otherwise;   the
liquidation or dissolution of the Company  following a sale or other disposition
of all or substantially  all of its assets; a merger of consolidation  involving
the  Company  which  results  in the  Company  not  being the  surviving  parent
corporation; or any time during any two-year (2) period in which individuals who
constituted  the board of  directors  of Company at the start of such period (or
whose  election was approved by at least  two-thirds  of the then members of the
board of  directors  of Company  who were  members at the start of the  two-year
period) do not  constitute at least fifty (50%) of the board of  directors,  for
any reason. A related entity is the parent, a subsidiary or any employee benefit
plan  (including  a trust  forming  a part of  such a  plan)  maintained  by the
Company, its parent or a subsidiary.

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(f) Date of  Termination.  The date upon which a  termination  pursuant  to this
Section 4 becomes  effective (the "Date of Termination"  or "Termination  Date")
shall be: the date upon which the party  terminating  this  Agreement  gives the
other party written notice thereof in accordance with Section 11 hereof.

5.       Confidential Information.

(a) The Executive  recognizes that the services to be performed by him hereunder
are special, unique and extraordinary and that, by reason of his employment with
the Company, he may acquire  Confidential  Information (as hereinafter  defined)
concerning  the  operation of the Company,  the use or disclosure of which would
cause the  Company  substantial  loss and  damage  which  could  not be  readily
calculated  and for which no remedy at law would be adequate.  Accordingly,  the
Executive agrees that he will not (directly or indirectly) at any time,  whether
during or after the Employment Term:

         (i) knowingly  use for an improper  personal  benefit any  Confidential
Information  that he may learn or has learned by reason of his  employment  with
the Company; or

         (ii) disclose any such  Confidential  Information  to any person except
(A) in the  performance  of his  obligations  to the Company  hereunder,  (B) as
required  by a court  of  competent  jurisdiction,  (C) in  connection  with the
enforcement of his rights under this Employment  Agreement or (D) with the prior
consent of the Board.

As used herein,  "Confidential Information" includes information with respect to
the  Company's  facilities  and methods,  trade  secrets and other  intellectual
property,  systems,  patents  and  patent  applications,   procedures,  manuals,
confidential  reports,  financial  information,  business  plans,  prospects  or
opportunities,  personnel  information  or lists  of  customers  and  suppliers;
provided,  however,  that such term shall not include any information that is or
becomes  generally  known  or  available  publicly  other  than as a  result  of
disclosure by the  Executive  which is not permitted as described in clause (ii)
above,  or the Company  discloses  to others  without  obtaining an agreement of
confidentiality.

(b) The Executive  confirms that all  Confidential  Information is the exclusive
property  of the  Company.  All  business  records,  papers  and  documents  and
electronic  materials kept or made by the Executive  relating to the business of
the Company  which  comprise  Confidential  Information  shall be and remain the
property of the Company during the Employment Term and at all times  thereafter.
Upon the  termination of his employment  with the Company or upon the request of
the Company at any time, the Executive  shall  promptly  deliver to the Company,
and,  without the express  consent of the Board,  shall  retain no copies of any
written or electronic materials,  records and documents made by the Executive or
coming into his possession concerning the business or affairs of the Company and
which comprise Confidential Information.

(c) The Executive shall keep the terms of this Agreement strictly  confidential,
other than as may be necessary  to enforce his rights  hereunder or as otherwise
required by law, or for estate planning or personal financial reasons.

6. Non-Competition.

                  (a)  During  the  Employment  Term and for a period of one (1)
year after the Termination Date (the "Restricted  Period"),  the Executive shall
not  directly or  indirectly,  for his own account or for the account of others,
serve as an officer, director,  stockholder, owner, partner, employee, promoter,
consultant,   advisor,  manager  or  otherwise  participate  in  the  promotion,
financing,  ownership,  operation,  or  management  of, or assist in or carry on
through a  proprietorship,  corporation,  partnership  or other form of business
entity or otherwise  that  intends to compete  against the Company or any of its
affiliates or customers.

Nothing in this Section 6 shall prohibit the Executive from acquiring or holding
any  issue  of  stock  or  securities  of any  Person  that  has any  securities
registered under Section 12 of the Exchange Act, listed on a national securities
exchange or quoted on the automated quotation system of the National Association
of  Securities  Dealers,  Inc. so long as the  Executive  is not deemed to be an
"affiliate"  of such  Person as such term is used in  paragraphs  (c) and (d) of
Rule 145 under the Securities  Act and the  Executive,  members of his immediate
family,  or persons  under his control do not own or hold more than five percent
(5%) of any voting securities of any such Person.

(b) During the Restricted  Period,  the Executive shall not, whether for his own
account or for the account of any other person (excluding the Company):

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(i)  solicit or contact  in an effort to do  business  with any person who was a
customer  or a  potential  customer  of the  Company  during  the  term  of this
Agreement,  or any affiliate of any such person, if such solicitation or contact
is for the purpose of competition with the Company;

(ii) solicit or induce any of the Company's  employees to leave their employment
with the Company or accept employment with anyone except the Company; or

(iii) interfere in a similar manner with the business of the Company.

Nothing  herein shall  prohibit or preclude the Executive  from  performing  any
other types of services  that are not  precluded  by Section 6 (a) for any other
Person.

(c) The Executive  has  carefully  read and  considered  the  provisions of this
Section 6 and,  having done so, agrees that the  restrictions  set forth in this
Section 6 (including the Restricted  Period,  scope of activity to be restrained
and the geographical  scope) are fair and reasonable and are reasonably required
for the  protection  of the interests of the Company,  its officers,  directors,
employees,  creditors  and  shareholders.  The  Executive  understands  that the
restrictions  contained  in this  Section 6 may limit his ability to engage in a
business  similar  to the  Company's  business,  but  acknowledges  that he will
receive  sufficiently  high  remuneration  and other  benefits  from the Company
hereunder to justify such restrictions.

7. Inventions.

(a)  Disclosure of  Inventions:  The Executive  shall  promptly  disclose to the
Company  (or  any  persons  designated  by it)  all  discoveries,  developments,
designs, improvements,  inventions, blueprints, formulae, processes, techniques,
computer  programs,   strategies,   and  data,  whether  or  not  patentable  or
registerable  under copyright or similar statutes,  made or conceived or reduced
to practice or learned by the  Executive,  either  alone or jointly with others,
during the period of employment  that result directly from tasks assigned to the
Executive by the Company and relate  specifically to the Business or result from
the use of premises  or property  (including  computer  systems and  engineering
facilities)   owned,   leased  or  contracted  for  by  the  Company  (all  such
discoveries,   developments,   designs,  improvements,   inventions,   formulae,
processes,  techniques, computer programs, strategies,  blueprints, know-how and
data are  hereinafter  referred to as  "Inventions").  The  Executive  will also
promptly  disclose to the Company,  and the Company hereby agrees to receive all
such disclosures in confidence,  all other discoveries,  developments,  designs,
improvements,  inventions,  formulae, processes,  techniques, computer programs,
strategies, blueprints and data, whether or not patentable or registerable under
copyright  or similar  statutes,  made or  conceived  or reduced to  practice or
learned by the Executive, either alone or jointly with others, during the period
of  employment   for  the  purpose  of  determining   whether  they   constitute
"Inventions", as defined above.

(b) Ownership of Inventions.

         (i) All  Inventions  shall be the sole  property of the Company and its
assigns, and the Company and its assigns shall be the sole owner of all patents,
copyrights,  trademarks and other rights in connection therewith.  The Executive
does hereby  assign to the Company any rights the  Executive may have or acquire
in such  Inventions.  The  Executive  shall assist the Company (at the Company's
expense) in obtaining  and, from time to time,  enforcing  patents,  copyrights,
trademarks and other rights and  protections  relating to said Inventions in any
and all countries.  The Executive will execute all documents  necessary to apply
for and  obtain  such  patents,  copyrights,  trademarks  and other  rights  and
protections on such  Inventions,  as the Company may request,  together with any
assignments  thereof to the Company or persons designated by it. The Executive's
obligation to assist the Company in obtaining and enforcing patents, copyrights,
trademarks and other rights and protections  relating to such  Inventions  shall
continue beyond the termination of employment,  but the Company shall compensate
the Executive at a reasonable rate after the Executive's  termination,  for time
actually spent by the Executive at the Company's request on such assistance.

         (ii) In the event the Company is unable,  after reasonable  effort,  to
secure the  Executive's  signature on any document or documents  needed to apply
for or prosecute any patent,  copyright or other right or protection relating to
an Invention,  for any reason whatsoever,  the Executive does hereby irrevocably
designate and appoint the Company and its duly authorized officers and agents as
his agent and attorney-in-fact, to act for and on his behalf to execute and file
any such application or applications and to do all other lawfully permitted acts
to further  the  prosecution  and  issuance of  patents,  copyrights  or similar
protections  solely  with  respect to  Inventions  with the same legal force and
effect as if executed by the Executive and the Executive does ratify, affirm and
approve all such lawfully permitted acts accordingly.

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8. Specific Performance.

The Executive  acknowledges  that a breach of any of the covenants  contained in
this  agreement  may result in material,  irreparable  injury to the Company for
which  there is no  adequate  remedy  at law,  that it will not be  possible  to
measure  damages for such  injuries  precisely  and that, in the event of such a
breach, any payments remaining under the terms of this Agreement shall cease and
the Company,  without posting any bond,  shall be entitled to obtain a temporary
restraining  order and a preliminary  or permanent  injunction  restraining  the
Executive from engaging in activities prohibited by this agreement or such other
relief as may be  required  to enforce any of the  covenants  contained  in this
agreement.

9. Successors; Binding Agreement.

(a) The Company  will require any  successor  (whether  direct or  indirect,  by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business or assets of the Company to expressly  assume and agree to perform this
Agreement  in the same manner and to the same  extent that the Company  would be
required  to  perform  if no such  succession  had taken  place.  Failure of the
Company to obtain such  assumption and agreement prior to the  effectiveness  of
any such succession  shall be a material  breach of this  Agreement.  As used in
this Employment  Agreement,  "Company" shall mean the Company as defined in this
Agreement and any successor to its business or assets as aforesaid which assumes
and agrees to perform this Agreement by operation of law, or otherwise.

(b) This  Agreement  shall  inure to the  benefit of and be  enforceable  by the
Executive's  personal  or  legal  representatives,   executors,  administrators,
successors, heirs, distributees,  devisees and legatees. If the Executive should
die while any amount would still be payable to him hereunder if he had continued
to live, all such amounts,  unless otherwise  provided herein,  shall be paid in
accordance  with the terms of this  Agreement to the  Executive's  spouse or, if
there is no such spouse, to the Executive's  estate.  This Agreement is personal
to the Executive and may not be assigned by him.

10. Resignation as Officer and/or Director.

         In the event that the  Executive's  employment  is  terminated  for any
reason whatsoever or the Executive  voluntarily  terminates his employment,  the
Executive agrees to resign immediately as an Officer and/or Director of Company.

11. Notice.

For the  purposes  of this  Agreement,  notices  and  all  other  communications
provided for in this  Agreement  shall be in writing and shall be deemed to have
been duly  given when  delivered  by hand or mailed by United  States  overnight
express mail, or nationally  recognized private delivery service on an overnight
basis, return receipt requested, postage prepaid, addressed as follows:

If to the Executive:       Manoj Hippola
                           123 Saphir Avenue
                           Ottawa, Ontario K4B 1J9
                           (613) 824-7424

With copies to:            Virginia K. Sourlis
                           The Galleria
                           2 Bridge Avenue
                           Redbank, New Jersey 07701
                           Telephone: (732) 530-9007
                           Fax:  (732) 530-9008

If to the Company:         Liska Biometry, Inc.

Notices  may  also be sent to such  other  address  as  either  party  may  have
furnished to the other in writing in accordance herewith,  except that notice of
change of address shall be effective only upon receipt.

Arbitration of Disputes.

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Any  controversy  or claim  arising out of or relating to this  Agreement or the
breach  hereof,  other than an action  brought by the Company for  injunctive or
other equitable  relief in the enforcement of the Company's rights under Section
8 above,  in which case such  action  may be  brought in any court of  competent
jurisdiction, shall be settled by arbitration in accordance with the laws of the
Province of Ontario by a single arbitrator.  Such arbitration shall be conducted
in the City of Ottawa, Ontario in accordance with the rules of the ADR Institute
of Canada. Judgment upon the award rendered by the arbitrators may be entered in
any court having  jurisdiction  thereof. In the event that it shall be necessary
or desirable for the Executive to retain legal counsel  and/or incur other costs
and expenses in connection with the enforcement of any or all of the Executive's
rights under this  Agreement,  the Company shall pay (or the Executive  shall be
entitled  to  recover  from the  Company,  as the  case may be) the  Executive's
reasonable attorneys' fees and other reasonable costs and expenses in connection
with  the  enforcement  of  said  rights   (including  the  enforcement  of  any
arbitration  award in court) in the event that an  arbitration  award is made in
favor of the  Executive,  unless and to the extent  that the  arbitrators  shall
determine that under the circumstances  recovery by the Executive of all or part
of any such  fees and costs  and  expenses  would be  inequitable  or  otherwise
unjust.

13.      Attorneys' Fees.

         The prevailing party in any legal or arbitration proceedings brought by
or against the other party to enforce any provision of this  Agreement  shall be
entitled to recover against the non-prevailing  party the reasonable  attorneys'
fees,  court  costs,  arbitration  fees  and  other  expenses  incurred  by  the
prevailing party.

14.      Representations and Warranties.

         The  Executive  hereby  represents  and warrants that he is willing and
able to enter into this Employment Agreement and to render his services pursuant
hereto and that neither the execution and delivery of this Employment Agreement,
nor the  performance  of his duties  hereunder,  violates the  provisions of any
other  agreement  to which he is a party or by which he is bound.  It is further
provided that the Executive  shall indemnify the Company for any and all damages
and/or  expenses  (including  attorney's  fees) that may result from a breach of
such representations.

15.      Expenses.

         Each party shall pay its own expenses  incident to the  performance  or
enforcement  of this  Agreement,  including all fees and expenses of its counsel
for all activities of such counsel undertaken pursuant to this Agreement, except
as otherwise herein specifically provided.

16.      Waivers and Further Agreements.

         Any  waiver  of any terms or  conditions  of this  Agreement  shall not
operate as a waiver of any other breach of such terms or conditions or any other
term or condition, nor shall any failure to enforce any provision hereof operate
as a waiver  of such  provision  or of any  other  provision  hereof;  provided,
however,  that no such written waiver,  unless it, by its own terms,  explicitly
provides to the  contrary,  shall be construed to effect a continuing  waiver of
the provision being waived and no such waiver in any instance shall constitute a
waiver in any other instance or for any other purpose or impair the right of the
party  against  whom such  waiver is claimed in all other  instances  or for all
other  purposes to require  full  compliance  with such  provision.  Each of the
parties hereto agrees to execute all such further  instruments and documents and
to take all such  further  action as the other party may  reasonably  require in
order to effectuate the terms and purposes of this Agreement.

17.      Amendments.

         This  Agreement  may not be  amended,  nor  shall any  waiver,  change,
modification,  consent or  discharge  be  effected  except by an  instrument  in
writing  executed by or on behalf of the party against whom  enforcement  of any
waiver, change, modification, consent or discharge is sought.

18.      Severability.

         If any  provision of this  Agreement  shall be held or deemed to be, or
shall in fact be,  invalid,  inoperative  or  unenforceable  as  applied  to any
particular case in any jurisdiction or jurisdictions, or in all jurisdictions or
in all cases,  because of the conflict of any provision with any constitution or
statute  or rule of public  policy or for any other  reason,  such  circumstance
shall not have the effect of rendering  the  provision or provisions in question
invalid,  inoperative or unenforceable in any other jurisdiction or in any other
case or circumstance  or of rendering any other  provision or provisions  herein
contained  invalid,  inoperative or  unenforceable to the extent that such other
provisions  are not  themselves  actually  in conflict  with such  constitution,
statute  or rule of  public  policy,  but  this  Employment  Agreement  shall be
reformed and  construed  in any such  jurisdiction  or case as if such  invalid,
inoperative or unenforceable  provision had never been contained herein and such
provision  reformed so that it would be valid,  operative and enforceable to the
maximum extent permitted in such jurisdiction or in such case.

<PAGE>

19.      Counterparts.

         This  Agreement  may be executed in two or more  counterparts,  each of
which shall be deemed an original,  but all of which together  shall  constitute
one and the same  instrument,  and in pleading or proving any  provision of this
Agreement,  it  shall  not be  necessary  to  produce  more  than  one  of  such
counterparts.

20       Survival.
         Sections 3, 4, 5, 6, 7, 8, 11, 12, and 20 shall survive the termination
of this Agreement.

21.      Section Headings.

         The headings  contained in this  Agreement are for  reference  purposes
only and shall not in any way  affect  the  meaning  or  interpretation  of this
Agreement.

22.      Gender.

         Whenever used herein, the singular number shall include the plural, the
plural shall include the  singular,  and the use of any gender shall include all
genders.

23.      Entire Agreement.

         This  Agreement  together  with  any  attachments  or  Exhibits  hereto
contains the entire  agreement of the parties and there are no other promises or
conditions  in any other  agreement,  whether  oral or written.  This  Agreement
supersedes any prior written or oral agreements between the parties.

24.      Governing Law.

         This  Agreement  shall be governed  by and  construed  and  enforced in
accordance with the law (other than the law governing conflict of law questions)
of the State of Florida.

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

Executive:

Name: ______________________
      Manoj Hippola

Liska Biometry, Inc.

By: _________________________
    Lam Ko Chau
    PresidentTEMECULA VALLEY BANCORP INC.
                            2004 STOCK INCENTIVE PLAN

      1. Purpose of the Plan. The purpose of this Temecula Valley Bancorp Inc.
Stock Incentive Plan is to offer certain Employees, Directors and Consultants
the opportunity to acquire a proprietary interest in the Company. Through the
Plan, the Company and its subsidiaries seek to attract, motivate and retain
highly competent persons. The success of the Company and its affiliates is
dependent upon the efforts of these persons. The Plan provides for the grant of
Options to purchase common stock. An Option granted under the Plan may be a
Non-Statutory Stock Option or an Incentive Stock Option, as determined by the
Administrator.

      2. Definitions. As used herein, the following definitions shall apply.

         "2004 Plan" or "Plan" shall mean the Temecula Valley Bancorp Inc. 2004
         Stock Incentive Plan, adopted as of March 24, 2004 by the Board of
         Directors, and as may be amended and restated from time to time.

         "Act" shall mean the Securities Act of 1933, as amended.

         "Administrator" shall mean the Board or any one of the Committees.

         "Affiliate" shall mean any parent or subsidiary (as defined in Sections
         424(e) and (f) of the Code) of the Company.

         "APB 25" shall mean Opinion 25 of the Accounting Principles Board, as
         amended, and any successor thereof.

         "Board" shall mean the Board of Directors of the Company.

         "Cause" shall have the meaning given to it under the Participant's
         employment agreement with the Company or Affiliate, or a policy of the
         Company or an Affiliate. If the Participant does not have an employment
         agreement or the employment agreement does not define this term, or if
         the Company or an Affiliate does not have a policy that defines this
         term, then Cause shall include malfeasance or gross misfeasance in the
         performance of duties or conviction of illegal activity in connection
         therewith or any conduct detrimental to the interests of the Company or
         an Affiliate which results in termination of the Participant's service
         with the Company or an Affiliate, as determined by the Administrator.

         "Code" shall mean the Internal Revenue Code of 1986, as amended.

         "Committee" shall mean a committee appointed by the Board in accordance
         with Section 3 below.

                                       1
<PAGE>

         "Common Stock" shall mean the common stock of the Company, no par
         value.

         "Company" shall mean Temecula Valley Bancorp Inc., a California
         corporation.

         "Consultant" shall mean any natural person who performs bona fide
         Services for the Company or an Affiliate as a consultant or advisor,
         excluding Employees and Non-Employee Directors and provided that the
         Services are not in connection with the offer or sale of securities in
         a capital raising transaction and do not directly or indirectly promote
         or maintain a market for the Company securities.

         "Date of Grant" shall mean the effective date as of which the
         Administrator grants an Option to an Optionee.

         "Director" shall mean a member of the Board.

         "Disability" shall mean total and permanent disability as defined in
         Section 22(e)(3) of the Code.

         "Employee" shall mean any individual who is a common-law employee of
         the Company or an Affiliate.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
         amended.

         "Exercise Price" shall mean the exercise price of a share of Optioned
         Stock.

         "Fair Market Value" shall mean, as of any date, the value of Common
         Stock determined as follows:

          (i)  If the Common Stock is listed on any established stock exchange
               or a national market system or an electronic bulletin board,
               including without limitation, The Nasdaq National Market, The
               Nasdaq SmallCap Market of The Nasdaq Stock Market or the
               Over-the-Counter Bulletin Board, its Fair Market Value shall be
               the closing sales price for such stock (or the closing
               representative bid, if no sales were reported) as quoted on such
               exchange or system for the last market trading day prior to the
               time of determination, as reported in The Wall Street Journal or
               such other source as the Administrator deems reliable;

          (ii) If the Common Stock is regularly quoted by a recognized
               securities dealer but selling prices are not reported, its Fair
               Market Value shall be the mean between the high bid and low asked
               prices for the Common Stock quoted by such recognized securities
               dealer on the last market trading day prior to the day of
               determination; or

          (iii) In the absence of an established market for the Common Stock,
               its Fair Market Value shall be determined, in good faith, by the
               Administrator.

                                       2
<PAGE>

         "FASB" shall mean the Financial Accounting Standards Board.

         "Grantee" shall mean any person who is granted an Option.

         "Immediate Family" means any child, stepchild, grandchild, parent,
         stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
         son-in-law, daughter-in-law, brother-in-law or sister-in-law, and also
         includes adoptive relationships.

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

         "Mature Shares" shall mean Shares that had been held by the Participant
         for a meaningful period of time such as six months or such other period
         of time that is consistent with FASB's interpretation of APB 25.

         "Non-Employee Director" shall mean a non-employee member of the Board.

         "Non-Statutory Stock Option" shall mean an Option not intended to
         qualify as an Incentive Stock Option.

         "Notice of Stock Option Grant" shall mean the notice delivered by the
         Company to the Optionee evidencing the grant of an Option.

         "Option" shall mean a stock option granted pursuant to the Plan.

         "Option Agreement" shall mean a written agreement that evidences an
         Option in such form as the Administrator shall approve from time to
         time.

         "Optioned Stock" shall mean the Common Stock subject to an Option.

         "Optionee" shall mean any person who receives an Option.

         "Participant" shall mean an Optionee or a Grantee.

         "Rule 16b-3" shall mean Rule 16b-3 promulgated under the Exchange Act
         or any successor to Rule 16b-3.

         "Service" shall mean the performance of services for the Company (or
         any Affiliate) by an Employee, Director or Consultant, as determined by
         the Administrator in its sole discretion. Service shall not be
         considered interrupted in the case of: (i) a change of status (i.e.,
         from Employee to Consultant, Non-Employee Director to Consultant, or
         any other combination); (ii) transfers between locations of the Company
         or between the Company and any Affiliate; or (iii) a leave of absence
         approved by the Company or an Affiliate. A leave of absence approved by

                                       3
<PAGE>

         the Company or an Affiliate shall include sick leave, military leave,
         or any other personal leave approved by an authorized representative of
         the Company or an Affiliate.

         "Service Provider" shall mean an Employee, Director or Consultant.

         "Share" shall mean a share of Common Stock.

         "Tax" or "Taxes" shall mean the federal, state, and local income,
         employment and excise tax liabilities incurred by the Participant in
         connection with his/her Options.

         "10% Shareholder" shall mean the owner of stock (as determined under
         Section 424(d) of the Code) possessing more than 10% of the total
         combined voting power of all classes of stock of the Company (or any
         Affiliate) on the Date of Grant, as applicable.

         "Termination Date" shall mean the date on which a Participant's Service
         terminates, as determined by the Administrator in its sole discretion.

      3. Administration of the Plan.

          (a)  Except as otherwise provided for below, the Plan shall be
               administered by (i) the Board or (ii) a Committee, which
               Committee shall be constituted to satisfy applicable laws. To the
               extent desirable to qualify transactions hereunder as exempt
               under Rule 16b-3, the transactions contemplated hereunder shall
               be structured to satisfy the requirements for exemption under
               Rule 16b-3.

          (b)  Powers of the Administrator. Subject to the provisions of the
               Plan and in the case of specific duties delegated by the
               Administrator, and subject to the approval of relevant
               authorities, including the approval, if required, of any stock
               exchange or national market system upon which the Common Stock is
               then listed, the Administrator shall have the authority, in its
               sole discretion:

               (i)  to determine the Fair Market Value of the Common Stock;

               (ii) to select the Service Providers to whom Options may, from
                    time to time, be granted under the Plan;

               (iii) to determine whether and to what extent Options are granted
                    under the Plan;

               (iv) to determine the number of Shares that pertain to each
                    Option;

               (v)  to approve the terms of the Option Agreements;

                                       4
<PAGE>

               (vi) to determine the terms and conditions, not inconsistent with
                    the terms of the Plan, of any Option. Such terms and
                    conditions may include, but are not limited to, the Exercise
                    Price, the status of an Option (Non-Statutory Stock Option
                    or Incentive Stock Option), the time or times when Options
                    may be exercised, any vesting acceleration or waiver of
                    forfeiture restrictions, and any restriction or limitation
                    regarding any Option or the Shares relating thereto, based
                    in each case on such factors as the Administrator, in its
                    sole discretion, shall determine;

               (vii) to determine the method of payment of the Exercise Price;

               (viii) with the prior approval of a majority of the Non-Employee
                    Directors of the Administrator, reduce the Exercise Price of
                    any Option to the then current Fair Market Value if the Fair
                    Market Value of the Optioned Stock has declined since the
                    Date of Grant of such Option;

               (ix) to delegate to others responsibilities to assist in
                    administering the Plan;

               (x)  to construe and interpret the terms of the Plan, Option
                    Agreements and any other documents related to the Options;
                    and

               (xi) to interpret and administer the terms of the Plan to comply
                    with all Tax rules and regulations.

          (c)  Effect of Administrator's Decision. All decisions,
               determinations, and interpretations of the Administrator shall be
               final and binding on all Participants and any other holders of
               any Options. The Administrator's decisions and determinations
               under the Plan need not be uniform and may be made selectively
               among Participants whether or not such Participants are similarly
               situated.

          (d)  Liability. No member of the Administrator shall be personally
               liable by reason of any mistake of judgment made in good faith
               while acting in such capacity if he or she was acting within
               her/his authority as a member of the Administrator at the time of
               the mistake, and the Company shall indemnify and hold harmless
               each member of the Administrator and each other employee, officer
               or director of the Company to whom any duty or power relating to
               the administration or interpretation of the Plan may be allocated
               or delegated, against any cost or expense (including counsel
               fees) or liability (including any sum paid in settlement of a
               claim) arising out of any act or omission to act in connection
               with the Plan unless arising out of such person's own fraud or
               bad faith. The foregoing right of indemnification shall not be
               exclusive of any other rights of indemnification to which such
               persons may be entitled under the Company's Articles of
               Incorporation or Bylaws, as a matter of law, or otherwise, or any
               power the Company may have to indemnify them or hold them
               harmless. The Board shall make the determination if any such
               person shall be entitled to indemnification and such decision by
               the Board shall be made in good faith, final and binding.

                                       5
<PAGE>

      4. Stock Subject To The Plan.

          (a)  Basic Limitation. The total number of Options under the Plan may
               not exceed 2,250,000, subject to the adjustments provided for in
               Section 8 of the Plan.

          (b)  Additional Shares. In the event that any outstanding Option
               expires or is canceled or otherwise terminated, the Shares that
               pertain to the unexercised Option shall again be available for
               the purposes of the Plan.

      5. Eligibility. The persons eligible to participate in the Plan shall be
limited to Employees, Directors and Consultants who have the potential to impact
the long-term success of the Company and/or its Affiliates and who have been
selected by the Administrator to participate in the Plan.

      6. Option Terms. Each Option shall be evidenced by an Option Agreement, in
the form approved by the Administrator and may contain such provisions as the
Administrator deems appropriate; provided, however, that each Option Agreement
shall comply with the terms specified below and shall be subject to all of the
other provisions of the Plan. Each Option Agreement evidencing an Incentive
Stock Option shall be subject to the following applicable provisions (except
ISOs if in conflict with Section 7) as well as Section 7 below.

          (a)  Exercise Price.

               (i)  The Exercise Price of an Incentive Stock Option shall be
                    determined by the Administrator but shall not be less than
                    100% of the Fair Market Value of a Share on the Date of
                    Grant of such Option, and the exercise price of a
                    Non-Statutory Stock Option shall not be less than 85% of the
                    Fair Market Value of a Share on the Date of Grant of such
                    Option.

               (ii) The consideration to be paid for the Shares to be issued
                    upon exercise of an Option, including the method of payment,
                    shall be determined by the Administrator and may consist
                    entirely of (A) cash, (B) check, (C) Mature Shares, or (D)
                    any combination of the foregoing methods of payment. The
                    Administrator may also permit Optionees, either on a
                    selective or aggregate basis, to simultaneously exercise
                    Options and sell the shares of Common Stock thereby
                    acquired, pursuant to a brokerage or similar arrangement,
                    approved in advance by the Administrator, and use the
                    proceeds from such sale as payment of part or all of the
                    exercise price of such shares. Notwithstanding the
                    foregoing, a method of payment may not be used if it causes
                    the Company to: (x) recognize compensation expense for

                                       6
<PAGE>

                    financial reporting purposes; (y) violate Section 402 of the
                    Sarbanes-Oxley Act of 2002 or any regulations adopted
                    pursuant thereto; or (z) violate Regulation O, promulgated
                    by the Board of Governors of the Federal Reserve System, as
                    determined by the Administrator in its sole discretion.

          (b)  Vesting. Any Option granted hereunder shall be exercisable and
               shall vest at such times and under such conditions as determined
               by the Administrator and set forth in the Option Agreement, but
               in any event all Options granted to an Optionee who is not an
               officer, Director or Consultant of the Company shall vest at a
               rate of at least 20% per year over five years from the Date of
               Grant of the Option subject to reasonable conditions such as
               continued employment. An Option may not be exercised for a
               fraction of a Share and the Optionee shall receive cash in lieu
               thereof equal to the Fair Market Value of such fraction on the
               date of exercise.

          (c)  Term of Options. No Option shall have a term in excess of 10
               years measured from the Date of Grant of such Option.

          (d)  Procedure for Exercise. An Option shall be deemed to be exercised
               when written notice of such exercise has been given to the
               Administrator in accordance with the terms of the Option
               Agreement by the person entitled to exercise the Option and full
               payment of the applicable Exercise Price for the Share being
               exercised has been received by the Administrator. Full payment
               may, as authorized by the Administrator, consist of any
               consideration and method of payment allowable under Section
               (a)(iii) above in this Section. In the event of a cashless
               exercise, the broker shall not be deemed to be an agent of the
               Administrator.

          (e)  Effect of Termination of Service.

               (i)  Termination of Service. Upon termination of an Optionee's
                    Service, other than due to death, Disability, or Cause, the
                    Optionee may exercise his/her Option, but only on or prior
                    to the date that is three months following the Optionee's
                    Termination Date, and only to the extent that the Optionee
                    was entitled to exercise such Option on the Termination Date
                    (but in no event later than the expiration of the term of
                    such Option, as set forth in the Notice of Stock Option
                    Grant to the Option Agreement). If, on the Termination Date,
                    the Optionee is not entitled to exercise the Optionee's
                    entire Option, the Shares covered by the unexercisable
                    portion of the Option shall immediately revert to the Plan.
                    If, after termination of Service, the Optionee does not
                    exercise his/her Option within the time specified herein,
                    the Option shall terminate, and the Optioned Stock shall
                    immediately revert to the Plan.

               (ii) Disability of Optionee. In the event of termination of an
                    Optionee's Service due to his/her Disability, the Optionee
                    may exercise his/her Option, but only on or prior to the
                    date that is twelve months following the Termination Date,
                    and only to the extent that the Optionee was entitled to
                    exercise such Option on the Termination Date (but in no

                                       7
<PAGE>

                    event later than the expiration date of the term of his/her
                    Option, as set forth in the Notice of Stock Option Grant to
                    the Option Agreement). To the extent the Optionee is not
                    entitled to exercise the Option on the Termination Date, the
                    Shares covered by the unexercisable portion of the Option
                    shall immediately revert to the Plan. If, after Termination
                    of Service due to Disability, the Optionee does not exercise
                    the Option to the extent so entitled within the time
                    specified herein, the Option shall terminate, and the
                    Optioned Stock shall immediately revert to the Plan.

               (iii) Death of Optionee. In the event that an Optionee should die
                    while in Service, the Optionee's Option may be exercised by
                    the Optionee's estate or by a person who has acquired the
                    right to exercise the Option by bequest or inheritance, but
                    only on or prior to the date that is twelve months following
                    the date of death, and only to the extent that the Optionee
                    was entitled to exercise the Option at the date of death
                    (but in no event later than the expiration date of the term
                    of his/her Option, as set forth in the Notice of Stock
                    Option Grant to the Option Agreement). If, at the time of
                    death, the Optionee was not entitled to exercise his/her
                    entire Option, the Shares covered by the unexercisable
                    portion of the Option shall immediately revert to the Plan.
                    If after death, the Optionee's estate or a person who
                    acquires the right to exercise the Option by bequest or
                    inheritance does not exercise the Option within the time
                    specified herein, the Option shall terminate, and the
                    Optioned Stock shall immediately revert to the Plan.

               (iv) Cause. In the event of termination of an Optionee's Service
                    due to Cause, the Optionee's Options shall terminate on the
                    Termination Date.

               (v)  To the extent that the Company does not violate Section 402
                    of the Sarbanes-Oxley Act of 2002 or any regulations adopted
                    pursuant thereto or Regulation O, promulgated by the Board
                    of Governors of the Federal Reserve System (as determined by
                    the Administrator in its sole discretion), the Administrator
                    shall have complete discretion, exercisable either at the
                    time an Option is granted or at any time while the Option
                    remains outstanding, to:

                    (A)  extend the period of time for which the Option is to
                         remain exercisable following the Optionee's cessation
                         of Service from the limited exercise period otherwise
                         in effect for that Option to such greater period of
                         time as the Administrator shall deem appropriate, but
                         in no event beyond the expiration of the Option term;
                         and/or

                    (B)  permit the Option to be exercised, during the
                         applicable post-Service exercise period, not only with
                         respect to the number of vested Shares for which such

                                       8
<PAGE>

                         Option is exercisable at the time of the Optionee's
                         cessation of Service but also with respect to one or
                         more additional installments in which the Optionee
                         would have vested had the Optionee continued in
                         Service.

          (f)  Shareholder Rights. Until the issuance (as evidenced by the
               appropriate entry on the books of the Company or of a duly
               authorized transfer agent of the Company) of the stock
               certificate evidencing such Shares, no right to vote or receive
               dividends or any other rights as a shareholder shall exist with
               respect to the Optioned Stock, notwithstanding the exercise of
               the Option. The Company shall issue (or cause to be issued) such
               certificate promptly upon exercise of the Option. 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 Section 8 below.

          (g)  Non-transferability of Options. Options may not be sold, pledged,
               assigned, hypothecated, transferred, or disposed of in any manner
               other than by will, by the laws of descent and distribution, by
               instrument to an inter vivos or testamentary trust in which
               Options are to be passed to beneficiaries upon the death of the
               trustor (settler) or by gift to Immediate Family. Notwithstanding
               the immediately preceding sentence, Incentive Stock Option
               transfers may be limited by the Administrator in order to comply
               with the Code and shall be further limited, if necessary, so that
               neither the transfer of an Option other than an Incentive Stock
               Option to such Immediate Family, nor the ability of a Optionee to
               make such a transfer shall have adverse consequences to the
               Company or the Optionee by reason of Section 162(m) of the Code.

          (h)  10% Shareholder. If any Grantee to whom an Option is granted is a
               10% Shareholder on the Date of Grant, then the Exercise Price
               shall not be less than 110% of the Fair Market Value of a Share
               on the Date of Grant of such Option.

      7. Incentive Stock Options. The terms specified below shall be applicable
to all Incentive Stock Options, and these terms shall, as to such Incentive
Stock Options, supercede any conflicting terms in Section 6 above. Options which
are specifically designated as Non-Statutory Stock Options when issued under the
Plan shall not be subject to the terms of this Section.

          (a)  Eligibility. Incentive Stock Options may only be granted to
               Employees.

          (b)  Exercise Price. The Exercise Price of an Incentive Stock Option
               shall not be less than 100% of the Fair Market Value of a Share
               on the Date of Grant of such Option, except as otherwise provided
               for in Subsection (d) below.

                                       9
<PAGE>

          (c)  Dollar Limitation. In the case of an Incentive Stock Option, the
               aggregate Fair Market Value of the Optioned Stock (determined as
               of the Date of Grant of each Option) with respect to Options
               granted to any Employee under the Plan (or any other option plan
               of the Company or any Affiliate) that may for the first time
               become exercisable as Incentive Stock Options during any one
               calendar year shall not exceed the sum of $100,000. To the extent
               the Employee holds two or more such Options which become
               exercisable for the first time in the same calendar year, the
               foregoing limitation on the exercisability of such Options as
               Incentive Stock Options shall be applied on the basis of the
               order in which such Options are granted. Any Options in excess of
               such limitation shall automatically be treated as Non-Statutory
               Stock Options.

          (d)  Option Term for 10% Shareholder. The Option term of an Incentive
               Stock Option granted to a 10% Shareholder shall not exceed five
               years measured from the Date of Grant of such Option.

          (e)  Change in Status. In the event of an Optionee's change of status
               from Employee to Consultant or to Non-Employee Director, an
               Incentive Stock Option held by the Optionee shall cease to be
               treated as an Incentive Stock Option and shall be treated for tax
               purposes as a Non-Statutory Stock Option three months and one day
               following such change of status.

          (f)  Approved Leave of Absence. If an Optionee is on an approved leave
               of absence, and the Optionee's reemployment upon expiration of
               such leave is not guaranteed by statute or contract, including
               Company policies, then on the 91st day of such leave any
               Incentive Stock Option held by the Optionee shall cease to be
               treated as an Incentive Stock Option and shall be treated for tax
               purposes as a Non-Statutory Stock Option.

      8. Adjustments

          (a)  Recapitalization, Etc. If the outstanding Common Stock is
               hereafter increased or decreased, or changed into or exchanged
               for a different number or kind of shares or other securities of
               the Company or of another corporation, by reason of a
               recapitalization, reclassification, reorganization, merger,
               consolidation, share exchange or other business combination in
               which the Company is the surviving parent corporation, stock
               split-up, combination of shares or dividend or other distribution
               payable in capital stock or rights to acquire capital stock,
               appropriate adjustment shall be made by the Administrator in the
               number and kind of shares for which Options may be granted under
               the Plan. In addition, the Administrator shall make appropriate
               adjustment in the number and kind of shares as to which
               outstanding and unexercised Options shall be exercisable, to the
               end that the proportionate interest of the holder of the Option
               shall, to the extent practicable, be maintained as before the
               occurrence of the event. The adjustment in outstanding Options
               shall be made without change in the total price applicable to the
               unexercised portion of the Option but with a corresponding
               adjustment in the exercise price per share.

                                       10
<PAGE>

          (b)  Reorganization. Upon a Reorganization (as hereinafter defined):

               (i)  If there is no plan or agreement with respect to the
                    Reorganization ("Reorganization Agreement"), or if the
                    Reorganization Agreement does not specifically provide for
                    the adjustment, change, conversion, or exchange of the
                    outstanding and unexercised Options for cash or other
                    property or securities of another corporation, then any
                    outstanding and unexercised Options shall terminate as of a
                    future date to be fixed by the Administrator; or

               (ii) If there is a Reorganization Agreement, and the
                    Reorganization Agreement specifically provides for the
                    adjustment, change, conversion or exchange of the
                    outstanding and unexercised Options for cash or other
                    property or securities of another corporation, then the
                    Administrator shall adjust the shares under the outstanding
                    and unexercised Options, and shall adjust the shares
                    remaining under the Plan which are then available for the
                    issuance of Options under the Plan if the Reorganization
                    Agreement makes specific provisions therefor, in a manner
                    not inconsistent with the provisions of the Reorganization
                    Agreement for the adjustment, change, conversion, or
                    exchange of the Options and shares.

          (c)  Reorganization Defined. The term "Reorganization" as used in this
               Section 8 means any reorganization, merger, consolidation, share
               exchange or other business combination pursuant to which the
               Company is not the surviving parent corporation after the
               effective date of the Reorganization, or any sale or lease of all
               or substantially all of the assets of the Company. Nothing herein
               shall require the Company to adopt a Reorganization Agreement, or
               to make provision for the adjustment, change, conversion, or
               exchange of any Options or the shares subject thereto, in any
               Reorganization Agreement that it does adopt.

          (d)  Notice to Optionees. The Administrator shall provide to each
               Optionee then holding an outstanding and unexercised Option not
               less than 30 calendar days' advanced written notice of any date
               fixed by the Administrator pursuant to this Section 8 and of the
               terms of any Reorganization Agreement providing for the
               adjustment, change, conversion, or exchange of outstanding and
               unexercised Options. Except as the Administrator may otherwise
               provide, each Optionee shall have the right during that period to
               exercise his or her Option only to the extent that the Option was
               exercisable on the date the notice was provided to the Optionee.

          (e)  Adjustment Must Conform. Any adjustment to any outstanding ISO
               pursuant to this Section 8, if made by reason of a transaction
               described in Section 424(a) of the Code, shall be made so as to
               conform to the requirements of that Section and the regulations
               thereunder. If any other transaction described in Section 424(a)

                                       11
<PAGE>

               of the Code affects the Common Stock subject to any unexercised
               ISO theretofore granted under the Plan ("old option"), the Board
               or the board of directors of any surviving or acquiring
               corporation may take such action as it deems appropriate, in
               conformity with the requirements of that Code Section and the
               regulations thereunder, to substitute a new option for the old
               option, in order to make the new option, as nearly as may be
               practicable, equivalent to the old option, or to assume the old
               option.

          (f)  No Modification. No modification, extension, renewal, or other
               change in any Option granted under the Plan may be made, after
               the grant of the Option, without the Optionee's consent, unless
               it is permitted by the provisions of the Plan and the option
               agreement. In the case of an ISO, Optionees are hereby advised
               that certain changes may disqualify the ISO from being considered
               as such under Section 422 of the Code, or constitute a
               modification, extension, or renewal of the ISO under Section
               424(h) of the Code.

          (g)  Good Faith of the Administrator. All adjustments and
               determinations under this Section 8 shall be made by the
               Administrator in good faith in its sole discretion.

          (h)  Dissolution or Liquidation. In the event of the proposed
               dissolution or liquidation of the Company, the Administrator
               shall notify each Participant as soon as practicable prior to the
               effective date of such proposed transaction. In such event, the
               Administrator, in its discretion, may provide for a Participant
               to fully vest in his/her Option. To the extent it has not been
               previously exercised, an Option will terminate upon dissolution
               or liquidation of the Company.

      9. Cancellation and Regrant of Options. The Administrator shall have the
authority to effect, at any time and from time to time, with the consent of the
affected Optionee, the cancellation of any or all outstanding Options and to
grant in substitution new Options covering the same or a different number of
Shares but with an Exercise Price per Share based on the Fair Market Value per
Share on the new Date of Grant of the Option. For purposes of Section 4 hereof,
Shares underlying any Option cancelled by the Company in such exchange shall be
available for issuance under the Plan; furthermore, except with respect to a
Participant subject to Section 162(m) of the Code, a grant of any Option to a
Participant pursuant to such exchange shall be disregarded for purposes of
determining whether such Participant has exceeded any limitations hereunder
limiting the amount of any type of Option or aggregate amount of Options that
may be granted to a Participant (except to the extent the number of Shares
underlying such Options exceeds the number of Shares underlying the
Participant's cancelled Options).

      10. Information to Holders of Options. The Company shall provide to each
Optionee, on an annual basis, the information required by Section 260.140.46,
Title 10 of the California Code of Regulations and any successor law or
regulation.

                                       12
<PAGE>

      11. Tax Withholding.

          (a)  For corporate purposes, the Company's obligation to deliver
               Shares upon the exercise of Options under the Plan shall be
               subject to the satisfaction of all applicable federal, state and
               local income and employment tax withholding requirements.

          (b)  To the extent permitted under Section 402 of the Sarbanes-Oxley
               Act of 2002 and the regulations adopted pursuant thereto, the
               Administrator may, in its discretion, provide any or all holders
               of Non-Statutory Stock Options with the right to use previously
               vested Shares in satisfaction of all or part of the Taxes
               incurred by such holders in connection with the exercise of their
               Non-Statutory Stock Options, provided, however, that this form of
               payment shall be limited to the withholding amount calculated
               using the minimum statutory rates. Such right may be provided to
               any such holder as follows: The election to have the Company
               withhold, from the Shares otherwise issuable upon the exercise of
               such Non-Statutory Stock Option, a portion of those Shares with
               an aggregate Fair Market Value equal to the Taxes calculated
               using the minimum statutory withholding rates interpreted in
               accordance with APB 25 and FASB Interpretation No. 44.

      12. Effective Date and Term of the Plan. The Plan was adopted by the Board
on March 24, 2004, and shall become effective on the date of its approval by the
Company's shareholders. Unless sooner terminated by the Administrator, the Plan
shall continue until March 24, 2014. When the Plan terminates, no Options shall
be granted under the Plan thereafter. The termination of the Plan shall not
affect any Option previously granted under the Plan.

      13. Time of Granting Options. The Date of Grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination to
grant such Option, or such other date as determined by the Administrator;
provided, however, that any Option granted prior to the date on which the Plan
is approved by the Company's shareholders shall be subject to the shareholders'
approval of the Plan. Notice of the determination shall be given to each Service
Provider to whom an Option is so granted within a reasonable period of time
after the date of such grant.

      14. Amendment and Termination of the Plan.

          (a)  Amendment and Termination. The Board may at any time amend,
               alter, suspend, or discontinue the Plan, but no amendment,
               alteration, suspension, or discontinuation shall be made which
               would impair the rights of any Participant under any grant
               theretofore made without his/her consent. In addition, to the
               extent necessary and desirable to comply with Section 422 of the
               Code (or any other applicable law or regulation, including the
               requirements of any stock exchange or national market system upon
               which the Common Stock is then listed), the Company shall obtain
               shareholder approval of any Plan amendment in such a manner and
               to such a degree as required.

                                       13
<PAGE>

          (b)  Effect of Amendment and Termination. Any such amendment or
               termination of the Plan shall not affect Options already granted,
               and such Options shall remain in full force and effect as if this
               Plan had not been amended or terminated, unless mutually agreed
               otherwise between the Participant and the Board, which agreement
               must be in writing and signed by the Participant and the Company.

      15. Regulatory Approvals.

          (a)  The implementation of the Plan, the granting of any Options and
               the issuance of any Shares upon the exercise of any granted
               Options shall be subject to the Company's procurement of all
               approvals and permits required by regulatory authorities having
               jurisdiction over the Plan, the Options granted under it, and the
               Shares issued pursuant to it.

          (b)  No Shares or other assets shall be issued or delivered under the
               Plan unless and until there shall have been compliance with all
               applicable requirements of federal and state securities laws,
               including the filing and effectiveness of the Form S-8
               registration statement (if required) and under state law (if
               required) for the Shares issuable under the Plan.

          (c)  The receipt of Shares upon the exercise of an Option shall be
               conditioned upon the Optionee (or any other person who exercises
               the Option on his or her behalf as permitted by this Plan)
               providing to the Administrator a written representation that, at
               the time of such exercise, it is the intent of that person(s) to
               acquire the shares for investment only and not with a view toward
               distribution. The certificate for unregistered shares issued for
               investment shall be restricted by the Company as to transfer
               unless the Company receives an opinion of counsel satisfactory to
               the Company to the effect that the restriction is not necessary
               under then pertaining law. The providing of the representation
               and the restrictions on transfer shall not, however, be required
               upon any person's receipt of Shares under the Plan if, at the
               time of grant of the Option relating to receipt or upon receipt,
               whichever is the appropriate measure under applicable federal or
               state securities laws, the Optioned Stock is: (i) covered by an
               effective and current registration statement under the Securities
               Act of 1933, as amended; and (ii) either qualified or exempt from
               qualification under applicable state securities laws.

      16. No Employment/Service Rights. Nothing in the Plan shall confer upon
the Participant any right to continue in Service for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the
Company (or any Affiliate employing or retaining such person) or of the
Participant, which rights are hereby expressly reserved by each, to terminate
such person's Service at any time for any reason, with or without cause.

      17. Governing Law. This Plan shall be governed by California law, applied
without regard to conflict of law principles.

                                       14
<PAGE>

      18. Non-Exclusivity of the Plan. Nothing contained in the Plan is intended
to amend, modify or rescind any previously approved compensation plans, programs
or options entered into by the Company. This Plan shall be construed to be in
addition to and independent of any and all other arrangements. Neither the
adoption of the Plan by the Board nor the submission of the Plan to the
shareholders of the Company for approval shall be construed as creating any
limitations on the power or authority of the Board to adopt, with or without
shareholder approval, such additional or other compensation arrangements as the
Board may from time to time deem desirable.

                                       15
<PAGE>

                                       16

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