Document:

Exhibit 10.6

                                JOINDER AGREEMENT

              THIS JOINDER IN SUBSIDIARY  GUARANTEE,  MASTER SECURITY AGREEMENT,
STOCK PLEDGE AGREEMENT AND SECURITY AGREEMENT (this "JOINDER") is executed as of
April 13, 2006 by Network  System  Technologies,  Inc., an Illinois  corporation
("JOINING  PARTY"),  and delivered to Laurus Master Fund, Ltd., a Cayman Islands
company (the "Purchaser"). Except as otherwise defined herein, terms used herein
and defined in the 2006 Purchase Agreement (as defined below).

                              W I T N E S S E T H:
                               - - - - - - - - - -

              WHEREAS,  Incentra  Solutions,  Inc.,  a Nevada  corporation  (the
"Company"),  certain  Subsidiaries  of the Company (in the case of the  Security
Agreement)  and the  Purchaser,  have  entered  into (x) a  Securities  Purchase
Agreement,  dated as of May 13, 2004 (as amended,  modified or supplemented from
time to time, the "2004 PURCHASE AGREEMENT"), (y) a Security Agreement, dated as
of February 6, 2006 (as amended, modified or supplemented from time to time, the
"2006 SECURITY AGREEMENT") and (z) a Securities Purchase Agreement,  dated as of
the date hereof (as amended,  modified or  supplemented  from time to time,  the
"2006 PURCHASE AGREEMENT"); and

              WHEREAS,  the Joining Party is a direct or indirect  Subsidiary of
the Company and desires,  or is required  pursuant to the  provisions of each of
the 2004 Purchase  Agreement,  the 2006 Security Agreement and the 2006 Purchase
Agreement,  to become a  "Guarantor"  under the 2006  Subsidiary  Guarantee,  an
"Assignor" under the 2004 Master Security Agreement,  a "Pledgor" under the 2006
Stock  Pledge  Agreement  and  an  "Eligible   Subsidiary"  under  the  Security
Agreement;

              NOW,  THEREFORE,  in  consideration  of the  foregoing  and  other
benefits accruing to the Joining Party, the receipt and sufficiency of which are
hereby   acknowledged,   the   Joining   Party   hereby   makes  the   following
representations  and warranties to the Purchaser and hereby covenants and agrees
with the Purchaser as follows:

              NOW, THEREFORE, the Joining Party agrees as follows:

              1.     By  this   Joinder,   the  Joining   Party  becomes  (i)  a
"Guarantor"  for all  purposes  under  the 2006  Subsidiary  Guarantee,  (ii) an
"Assignor" for all purposes under the 2004 Master  Security  Agreement,  (iii) a
"Pledgor"  for all purposes  under the 2006 Stock Pledge  Agreement  and (iv) an
"Eligible Subsidiary" under the 2006 Security Agreement.

              2.     The Joining Party agrees that,  upon its execution  hereof,
it will  become a  Guarantor  under,  and as  defined  in,  the 2006  Subsidiary
Guarantee  with respect to all  Obligations  (as defined in the 2006  Subsidiary
Guarantee),  and will be bound by all terms, conditions and duties applicable to
a Guarantor  under the 2006  Subsidiary  Guarantee.  Without  limitation  of the
foregoing,  and in furtherance  thereof,  the Joining Party  unconditionally and

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                                                                          Page 2

irrevocably,  guarantees  the due and punctual  payment and  performance  of all
Obligations (on the same basis as the other Guarantors under the 2006 Subsidiary
Guarantee).

              3.     The Joining Party agrees that,  upon its execution  hereof,
it will  become a Pledgor  under,  and as  defined  in,  the 2006  Stock  Pledge
Agreement, and will be bound by all terms, conditions and duties applicable to a
Pledgor  under  the 2006  Stock  Pledge  Agreement.  Without  limitation  of the
foregoing  and in  furtherance  thereof,  as security  for the due and  punctual
payment of the Indebtedness (as defined in the 2006 Stock Pledge Agreement), the
Joining Party hereby pledges,  hypothecates,  assigns,  transfers, sets over and
delivers to the Purchaser and grants to the Purchaser a security interest in all
Collateral  (as defined in the 2006 Stock Pledge  Agreement),  if any, now owned
or,  to the  extent  provided  in the 2006  Stock  Pledge  Agreement,  hereafter
acquired by it.

              4.     (x) The  Joining  Party  agrees  that,  upon its  execution
hereof,  it will  become an Assignor  under,  and as defined in, the 2004 Master
Security  Agreement,  and will be  bound by all  terms,  conditions  and  duties
applicable  to an Assignor  under the 2004 Master  Security  Agreement.  Without
limitation of the foregoing and in furtherance  thereof, as security for the due
and punctual  payment of the Obligations (as defined in the 2004 Master Security
Agreement), the Joining Party hereby pledges, hypothecates,  assigns, transfers,
sets over and delivers to the  Purchaser  and grants to the Purchaser a security
interest in all Collateral (as defined in the 2004 Master  Security  Agreement),
if any,  now  owned or,  to the  extent  provided  in the 2004  Master  Security
Agreement, hereafter acquired by it.

              (y)    The Joining Party agrees that,  upon its execution  hereof,
it will  become an  Eligible  Subsidiary  under,  and as  defined  in,  the 2006
Security  Agreement,  and will be  bound by all  terms,  conditions  and  duties
applicable to an Eligible Subsidiary under the 2006 Security Agreement.  Without
limitation of the foregoing and in furtherance  thereof, as security for the due
and punctual payment of the Obligations (as in the 2006 Security Agreement), the
Joining Party hereby pledges,  hypothecates,  assigns,  transfers, sets over and
delivers to the Purchaser and grants to the Purchaser a security interest in all
Collateral (as defined in the 2006 Security Agreement), if any, now owned or, to
the extent provided in the 2006 Security Agreement, hereafter acquired by it.

              5.     In connection with the grant by the Joining Party, pursuant
to paragraphs 3 and 4 above, of a security  interest in all of its right,  title
and interest in the Collateral  (as defined in each of the 2004 Master  Security
Agreement,  the 2006 Security  Agreement and the 2006 Stock Pledge Agreement) in
favor  of the  Purchaser,  the  Joining  Party  (i)  agrees  to  deliver  to the
Purchaser,  together  with  the  delivery  of this  Joinder,  each of the  items
specified  in  Section 3 of the 2006  Stock  Pledge  Agreement,  (ii)  agrees to
execute (if necessary)  and deliver to the Purchaser such financing  statements,
in form  acceptable  to the  Purchaser,  as the  Purchaser may request or as are
necessary or desirable in the opinion of the Purchaser to establish and maintain
a  valid,  enforceable,  first  priority  perfected  security  interest  in  the
Collateral (as defined in each of the 2004 Master Security  Agreement,  the 2006
Security  Agreement  and the 2006 Stock Pledge  Agreement)  owned by the Joining
Party,  (iii)  authorizes  the Purchaser to file any such  financing  statements
without  the  signature  of the  Joining  Party  where  permitted  by law  (such
authorization  includes a description  of the  Collateral as "all assets and all
personal property,  whether now owned and/or hereafter  acquired" of the Joining
Party all assets and all personal

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                                                                          Page 3

property,  whether now owned and/or  hereafter  acquired" (or any  substantially
similar  variation  thereof))  and (iv)  agrees to  execute  and  deliver to the
Purchaser  assignments of United States trademarks,  patents and copyrights (and
the respective applications therefor) to the extent requested by the Purchaser.

              6.     Without  limiting the  foregoing,  the Joining Party hereby
makes and  undertakes,  as the case may be, each  covenant,  representation  and
warranty  made by, and as (i) each  Guarantor  pursuant  to the 2006  Subsidiary
Guarantee,  (ii) each Assignor  pursuant to the 2004 Master Security  Agreement,
(iii) each  Pledgor  pursuant to the 2006 Stock Pledge  Agreement  and (iv) each
Eligible Subsidiary pursuant to the 2006 Security Agreement,  in each case as of
the date  hereof  (except  to the  extent any such  representation  or  warranty
relates solely to an earlier date in which case such representation and warranty
shall be true and correct as of such  earlier  date),  and agrees to be bound by
all covenants,  agreements and obligations of a Guarantor, Assignor, Pledgor and
Eligible  Subsidiary  pursuant  to the 2006  Subsidiary  Guarantee,  2004 Master
Security Agreement, 2006 Stock Pledge Agreement and the 2006 Security Agreement,
respectively,  and all other Related  Agreements (as defined in each of the 2004
Purchase Agreement and the 2006 Purchase Agreement) and/or Ancillary  Agreements
(as defined in the 2006 Security Agreement) to which it is or becomes a party.

              8.     Schedule A to the 2006  Stock  Pledge  Agreement  is hereby
amended by  supplementing  such  Schedule with the  information  for the Joining
Party contained on Schedule A attached hereto as Annex I. In addition,  Schedule
A to the Master  Security  Agreement  is hereby  amended by  supplementing  such
Schedule  with the  information  for the Joining  Party  contained on Schedule A
attached hereto as Annex II.

              9.     This Joinder  shall be binding upon the parties  hereto and
their respective successors and permitted assigns and shall inure to the benefit
of and be  enforceable  by each of the  parties  hereto and its  successors  and
permitted assigns, PROVIDED, HOWEVER, no Joining Party may not assign any of its
rights,  obligations or interest hereunder or under the 2004 Purchase Agreement,
the 2006 Security  Agreement,  the 2006 Purchase Agreement or, in each case, any
agreement related thereto, without the prior written consent of the Purchaser by
such agreement.  THIS JOINDER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH
AND  GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  This Joinder may be executed
in any number of  counterparts,  each of which shall be an original,  but all of
which shall  constitute one instrument.  In the event that any provision of this
Joinder  shall prove to be invalid or  unenforceable,  such  provision  shall be
deemed to be severable  from the other  provisions  of this Joinder  which shall
remain binding on all parties hereto.

              10.    From and after the  execution  and  delivery  hereof by the
parties hereto,  this Joinder shall constitute (I) a "Related Agreement" for all
purposes of (x) the 2004 Purchase Agreement and the Related Agreements  referred
to in the 2004 Purchase Agreement, as each are amended, modified or supplemented
from time to time and (y) the 2006 Purchase Agreement and the Related Agreements
referred to in the 2006  Purchase  Agreement,  as each are amended,  modified or
supplemented  from  time  to time  and  (II) an  "Ancillary  Agreement"  for all
purposes of the 2006 Security Agreement and the Ancillary Agreements referred to
in the 2006 Security Agreement, , as each are amended,  modified or supplemented
from time to time.

              11.    The effective date of this Joinder is March 31, 2006.

                                      * * *
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                                                                          Page 4

              IN WITNESS  WHEREOF,  the Joining Party has caused this Joinder to
be duly executed as of the date first above written.

                                        NETWORK SYSTEM TECHNOLOGIES, INC.

                                        By:  /s/ Thomas P. Sweeney III
                                             -------------------------
                                             Name:  Thomas P. Sweeney III
                                             Title: Chief Executive Officer

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                                                                          Page 5

Accepted and Acknowledged by:

LAURUS MASTER FUND, LTD.

By:   /s/ David Grin
     -----------------------------
     Name:  David Grin
     Title:  DirectorACL SEMICONDUCTORS, INC.

                        2006 INCENTIVE EQUITY STOCK PLAN

     1.  PURPOSES  OF THE PLAN.  The  purposes  of this Plan are to attract  and
retain the best available personnel for positions of substantial responsibility,
to provide additional  incentive to Employees,  Directors and Consultants and to
promote the success of the Company's  business.  Options  granted under the Plan
may be Incentive Stock Options or Nonstatutory  Stock Options,  as determined by
the Administrator at the time of grant. Stock Purchase Rights,  Stock Awards and
Stock Bonuses may also be granted under the Plan.

     2. DEFINITIONS. As used herein, the following definitions shall apply:

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

          b.  "ADMINISTRATOR"  means the Board or any of its Committees as shall
be administering the Plan in accordance with Section 4 hereof.

          c.  "APPLICABLE   LAWS"  means  the   requirements   relating  to  the
administration  of stock  option plans under U.S.  state  corporate  laws,  U.S.
federal and state  securities  laws,  the Code,  any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable  laws of
any other country or  jurisdiction  where Options or Stock  Purchase  Rights are
granted under the Plan.

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

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

          f. "COMMITTEE"  means a committee of Directors  appointed by the Board
in accordance with Section 4 hereof.

          g. "COMMON STOCK" means the Common Stock,  par value $0.001 per share,
of the Company.

          h. "COMPANY" means ACL Semiconductors, Inc., a Delaware corporation.

          i. "CONSULTANT"  means any person who is engaged by the Company or any
Parent or Subsidiary to render consulting services to such entity.

          j. "DIRECTOR" means a member of the Board of Directors of the Company.

          k.  "DISABILITY"  means total and  permanent  disability as defined in
Section 22(e)(3) of the Code.

          l.  "EMPLOYEE"  means any person,  including  Officers and  Directors,
employed by the Company or any Parent or  Subsidiary  of the  Company.  A person
shall not cease

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to be an  Employee  in the case of (i) any  leave  of  absence  approved  by the
Company or (ii)  transfers  between  locations  of the  Company  or between  the
Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive
Stock Options,  no such leave may exceed ninety days,  unless  reemployment upon
expiration of such leave is guaranteed by statute or contract.  If  reemployment
upon  expiration  of a  leave  of  absence  approved  by the  Company  is not so
guaranteed,  on the 181st 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 Nonstatutory  Stock Option.  Neither  service as a
Director nor payment of a director's  fee by the Company  shall be sufficient to
constitute "employment" by the Company.

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

          n. "FAIR  MARKET  VALUE"  means,  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,  including  without  limitation the Nasdaq
National  Market or The Nasdaq Small Cap Market of The Nasdaq Stock Market,  its
Fair  Market  Value  shall be the  closing  sales  price for such  stock (or the
closing 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
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,  the Fair Market Value  thereof  shall be determined in good faith by the
Administrator.

          o. "INCENTIVE  STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

          p. "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

          q.  "OFFICER"  means a person who is an officer of the Company  within
the  meaning  of Section 16 of the  Exchange  Act and the rules and  regulations
promulgated thereunder.

          r. "OPTION" means a stock option granted pursuant to the Plan.

          s. "OPTION AGREEMENT" means a written or electronic  agreement between
the Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the
Plan.

                                       2

<PAGE>

          t.  "OPTION  EXCHANGE  PROGRAM"  means a program  whereby  outstanding
Options are exchanged for Options with a lower exercise price.

          u.  "OPTIONED  STOCK" means the Common Stock subject to an Option or a
Stock Purchase Right.

          v.  "OPTIONEE"  means  the  holder of an  outstanding  Option or Stock
Purchase Right granted under the Plan.

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

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

          y.  "PERFORMANCE  STOCK  BONUS  AGREEMENT"  means an  award  agreement
pursuant to which Stock  Bonuses are granted for achieving  certain  performance
goals.

          z. "PLAN" means this 2006 Incentive Equity Stock Plan.

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

          bb.  "RESTRICTED STOCK" means shares of Common Stock acquired pursuant
to a grant of a Stock Purchase Right under Section 12 below.

          cc. "SERVICE PROVIDER" means an Employee,  Consultant or other service
provider.

          dd.  "SHARE"  means  a share  of the  Common  Stock,  as  adjusted  in
accordance with Section 18 below.

          ee. "STOCK AWARD" means an award of Shares pursuant to Section 10.

          ff. "STOCK BONUS" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 11.

          gg.  "STOCK AWARD  AGREEMENT"  means the award  agreement  pursuant to
which Stock Awards are granted.

          hh.  "STOCK BONUS  AGREEMENT"  means the award  agreement  pursuant to
which Stock Bonuses are granted.

          ii.  "STOCK  PURCHASE  RIGHT"  means a right to purchase  Common Stock
pursuant to Section 12 below.

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

                                       3

<PAGE>

     3. STOCK  SUBJECT TO THE PLAN.  Subject to the  provisions of Section 18 of
the Plan, the maximum  aggregate  number of Shares that may be subject to option
or  otherwise  available  for grant  and  issuance  under the Plan is  5,000,000
Shares. The Shares may be authorized but unissued, or reacquired Common Stock.

     If an  Award or Stock  Purchase  Right  expires  or  becomes  unexercisable
without having been  exercised in full, or is surrendered  pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available  for  future  grant  or sale  under  the  Plan  (unless  the  Plan has
terminated). However, Shares that have actually been issued under the Plan, upon
exercise of either an Award or Stock  Purchase  Right,  shall not be returned to
the Plan and shall not become available for future  distribution under the Plan,
except  that if Shares of  Restricted  Stock are  repurchased  by the Company at
their original  purchase  price,  such Shares shall become  available for future
grant under the Plan.

     4. ADMINISTRATION OF THE PLAN.

          a.  ADMINISTRATOR.  The Plan shall be  administered  by the Board or a
Committee appointed by the Board, which Committee shall be constituted to comply
with Applicable Laws.

          b. POWERS OF THE ADMINISTRATOR.  Subject to the provisions of the Plan
and, in the case of a Committee,  the specific duties  delegated by the Board to
such  Committee,  and subject to the approval of any relevant  authorities,  the
Administrator shall have the authority in its discretion:

               i. to determine Fair Market Value;

               ii. to select  the  Service  Providers  to whom  Awards and Stock
Purchase Rights may from time to time be granted hereunder;

               iii. to determine the number of Shares to be covered by each such
award granted hereunder;

               iv. to approve forms of agreement for use under the Plan;

               v. to determine the terms and  conditions,  of any Award or Stock
Purchase Right granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price,  the time or times when Awards or Stock Purchase
Rights  may be  exercised  (which  may be based on  performance  criteria),  any
vesting acceleration or waiver of forfeiture  restrictions,  and any restriction
or limitation  regarding any Award or Stock  Purchase  Right or the Common Stock
relating thereto,  based in each case on such factors as the  Administrator,  in
its sole discretion, shall determine;

               vi. to determine  whether and under what  circumstances  an Award
may be settled in cash under subsection 8(e) instead of Common Stock;

                                       4

<PAGE>

               vii.  to  reduce  the  exercise  price  of any  Award to the then
current Fair Market  Value if the Fair Market Value of the Common Stock  covered
by such Award has declined since the date the Award was granted;

               viii. to initiate an Option Exchange Program;

               ix.  to  prescribe,  amend  and  rescind  rules  and  regulations
relating to the Plan,  including  rules and  regulations  relating to  sub-plans
established  for the purpose of qualifying  for  preferred  tax treatment  under
foreign tax laws;

               x. to allow  Participants to satisfy  withholding tax obligations
by  electing  to have the  Company  withhold  from the Shares to be issued  upon
exercise of an Award or Stock Purchase Right that number of Shares having a Fair
Market Value equal to the amount required to be withheld.  The Fair Market Value
of the Shares to be withheld  shall be determined on the date that the amount of
tax to be withheld is to be determined.  All elections by  Participants  to have
Shares  withheld  for this  purpose  shall be made in such form and  under  such
conditions as the Administrator may deem necessary or advisable; and

               xi. to construe  and  interpret  the terms of the Plan and awards
granted pursuant to the Plan.

          c. EFFECT OF ADMINISTRATOR'S  DECISION. All decisions,  determinations
and  interpretations  of the  Administrator  shall be final and  binding  on all
Participants.

     5. ELIGIBILITY.

          a. Nonstatutory Stock Options and Stock Purchase Rights may be granted
to Service Providers. Incentive Stock Options may be granted only to Employees.

          b. Each Award shall be designated in the Option Agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However,  notwithstanding
such  designation,  to the extent that the  aggregate  Fair Market  Value of the
Shares with respect to which  Incentive  Stock Options are  exercisable  for the
first time by the  Optionee  during any  calendar  year  (under all plans of the
Company and any Parent or  Subsidiary)  exceeds  $100,000,  such Awards shall be
treated as  Nonstatutory  Stock  Options.  For  purposes of this  Section  5(b),
Incentive  Stock  Options shall be taken into account in the order in which they
were granted.  The Fair Market Value of the Shares shall be determined as of the
time the Award with respect to such Shares is granted.

          c. Neither the Plan nor any Award or Stock Purchase Right shall confer
upon any  Optionee  or  Participant  any right with  respect to  continuing  the
Participant's  relationship as a Service Provider with the Company, nor shall it
interfere in any way with his or her right or the  Company's  right to terminate
such relationship at any time, with or without cause.

     6. TERM OF PLAN.  The Plan shall become  effective upon its adoption by the
Board.  It shall  continue in effect for a term of ten (10) years unless  sooner
terminated under Section 20 of the Plan.

                                       5

<PAGE>

     7. OPTION EXERCISE PRICE AND CONSIDERATION.

          a. The per  share  exercise  price for the  Shares  to be issued  upon
exercise of an Option shall be such price as is determined by the Administrator,
but shall be subject to the following:

               i. In the case of an Incentive Stock Option

                    A. granted to an Employee  who, at the time of grant of such
Option,  owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the exercise
price shall be no less than 110% of the Fair Market  Value per Share on the date
of grant.

                    B.  granted to any other  Employee,  the per Share  exercise
price shall be no less than 100% of the Fair Market  Value per Share on the date
of grant.

               ii. In the case of a Nonstatutory Stock Option

                    A. granted to a Service  Provider  who, at the time of grant
of such  Option,  owns stock  representing  more than ten  percent  (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the exercise price shall be no less than 110% of the Fair Market Value per Share
on the date of grant.

                    B.  granted  to any other  Service  Provider,  the per Share
exercise  price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

               iii. Notwithstanding the foregoing, Options may be granted with a
per Share  exercise  price other than as required  above pursuant to a merger or
other corporate transaction.

          b. 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,  in the case of an Incentive  Stock  Option,  shall be
determined at the time of grant).  Such  consideration  may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired  upon  exercise of an Option,  have been owned by the Optionee for more
than six months on the date of  surrender,  and (y) have a Fair Market  Value on
the date of surrender equal to the aggregate  exercise price of the Shares as to
which such Option shall be exercised,  (5) consideration received by the Company
under a cashless exercise program  implemented by the Company in connection with
the Plan, or (6) any combination of the foregoing methods of payment.  In making
its  determination as to the type of consideration to accept,  the Administrator
shall consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

                                       6

<PAGE>

     8. EXERCISE OF OPTION.

          a. PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any Option granted
hereunder  shall be exercisable  according to the terms hereof at such times and
under such  conditions as determined by the  Administrator  and set forth in the
Option Agreement.  Except in the case of Options granted to Officers,  Directors
and Consultants or as otherwise provided in the Option Agreement,  Options shall
become  exercisable  at a rate of no less  than 20% per year over five (5) years
from the  date the  Options  are  granted.  Unless  the  Administrator  provides
otherwise,  vesting of Options granted hereunder to Officers and Directors shall
be tolled during any unpaid leave of absence. An Option may not be exercised for
a fraction of a Share.

          An Option shall be deemed  exercised  when the Company  receives:  (i)
written  or  electronic  notice  of  exercise  (in  accordance  with the  Option
Agreement)  from the person  entitled  to  exercise  the  Option,  and (ii) full
payment  for the Shares  with  respect to which the  Option is  exercised.  Full
payment may consist of any consideration and method of payment authorized by the
Administrator  and permitted by the Option Agreement and the Plan. Shares issued
upon  exercise of an Option  shall be issued in the name of the  Optionee or, if
requested  by the  Optionee,  in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate  entry on the books
of the Company or of a duly authorized transfer agent of the Company),  no right
to vote or receive  dividends or any other rights as a  shareholder  shall exist
with  respect to the Shares,  notwithstanding  the  exercise of the Option.  The
Company  shall  issue (or cause to be issued)  such  Shares  promptly  after the
Option is exercised.  No  adjustment  will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued,  except as
provided in Section 18 of the Plan.

          Exercise of an Option in any manner  shall result in a decrease in the
number of Shares  thereafter  available,  both for  purposes of the Plan and for
sale  under the  Option,  by the  number  of  Shares  as to which the  Option is
exercised.

          b. TERMINATION OF RELATIONSHIP AS A SERVICE  PROVIDER.  If an Optionee
ceases to be a Service  Provider  (other than by reason of Disability or Death),
such  Optionee may  exercise his or her Option  within such period of time as is
specified in the Option  Agreement  (of at least thirty (30) days) to the extent
that the Option is vested on the date of termination (but in no event later than
the expiration of the term of the Option as set forth in the Option  Agreement).
In the absence of a specified  time in the Option  Agreement,  the Option  shall
remain  exercisable for three (3) months  following the Optionee's  termination.
If, on the date of  termination,  the  Optionee  is not  vested as to his or her
entire Option,  the Shares  covered by the unvested  portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option  within the time  specified  by the  Administrator,  the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

          c.  DISABILITY  OF  OPTIONEE.  If an  Optionee  ceases to be a Service
Provider as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement
(of at least six (6)  months)  to the extent the Option is vested on the date of
termination  (but in no  event  later  than the  expiration  of the term of such
Option as set forth in the Option Agreement). In the absence of a specified time
in the Option  Agreement,  the Option shall remain  exercisable  for twelve (12)
months following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan.

                                       7

<PAGE>

If, after  termination,  the Optionee does not exercise his or her Option within
the time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

          d. DEATH OF OPTIONEE.  If an Optionee  dies while a Service  Provider,
the Option may be  exercised  within such period of time as is  specified in the
Option  Agreement  (of at least six (6) months) to the extent that the Option is
vested on the date of death (but in no event  later than the  expiration  of the
term of such  Option as set forth in the  Option  Agreement)  by the  Optionee's
estate or by a person who  acquires  the right to exercise the Option by bequest
or inheritance.  In the absence of a specified time in the Option Agreement, the
Option shall remain  exercisable for twelve (12) months following the Optionee's
termination.  If, at the time of death,  the  Optionee  is not  vested as to the
entire Option,  the Shares  covered by the unvested  portion of the Option shall
immediately  revert to the Plan.  If the Option is not so  exercised  within the
time specified  herein,  the Option shall  terminate,  and the Shares covered by
such Option shall revert to the Plan.

          e. BUYOUT  PROVISIONS.  The Administrator may at any time offer to buy
out for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

     9. TERM OF OPTION.  The term of each  Option  shall be stated in the Option
Agreement; provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof. In the case of an Incentive Stock Option granted
to an Optionee who, at the time the Option is granted,  owns stock  representing
more than ten percent  (10%) of the voting  power of all classes of stock of the
Company or any Parent or  Subsidiary,  the term of the Option  shall be five (5)
years  from the date of grant or such  shorter  term as may be  provided  in the
Option Agreement.

     10. STOCK AWARD.

          a. NATURE OF 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:

          b.  FORM OF  STOCK  AWARD.  All  purchases  under a Stock  Award  made
pursuant to this Plan will be evidenced by an Award  Agreement (the "Stock Award
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 Award  Agreement (or similar  agreement) and payment for the Shares to the
Company in accordance with the Stock Award Agreement.

          c.  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 100% of the Fair Market  Value of the Shares on
the grant date,  except in the case of

                                       8

<PAGE>

a sale to a Ten Percent  Stockholder,  in which case the Purchase  Price will be
110% of the Fair Market Value.

          d.  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 Award  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.

          e.  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  Award  Agreement,  unless the  Committee  determines
otherwise.

     11. STOCK BONUSES.

          a.  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.

          b. 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

                                       9

<PAGE>

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.

          c. 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.

     12. STOCK PURCHASE RIGHTS.

          a. RIGHTS TO  PURCHASE.  Stock  Purchase  Rights may be issued  either
alone,  in addition  to, or in tandem with other awards  granted  under the Plan
and/or cash awards made outside of the Plan. After the Administrator  determines
that it will offer Stock  Purchase  Rights  under the Plan,  it shall advise the
offeree in writing or electronically  of the terms,  conditions and restrictions
related to the offer,  including  the number of Shares that such person shall be
entitled  to  purchase,  the price to be paid,  and the time  within  which such
person must accept such  offer.  The offer shall be accepted by  execution  of a
Restricted Stock purchase agreement in the form determined by the Administrator.

          b. REPURCHASE OPTION.  Unless the Administrator  determines otherwise,
the  Restricted  Stock purchase  agreement  shall grant the Company a repurchase
option  exercisable  upon  the  voluntary  or  involuntary  termination  of  the
purchaser's  service  with  the  Company  for any  reason  (including  death  or
disability).   The  purchase  price  for  Shares  repurchased  pursuant  to  the
Restricted  Stock  purchase  agreement  shall be the original  price paid by the
purchaser and may be paid by cancellation  of any  indebtedness of the purchaser
to  the  Company.  The  repurchase  option  shall  lapse  at  such  rate  as the
Administrator  may  determine.  Except  with  respect  to  Shares  purchased  by
Officers,  Directors and  Consultants,  the  repurchase  option shall in no case
lapse at a rate of less than 20% per year  over five (5) years  from the date of
purchase.

          c. OTHER  PROVISIONS.  The Restricted  Stock purchase  agreement shall
contain such other terms,  provisions and conditions not  inconsistent  with the
Plan as may be determined by the Administrator in its sole discretion.

          d.  RIGHTS  AS  A  SHAREHOLDER.  Once  the  Stock  Purchase  Right  is
exercised,  the purchaser shall have rights equivalent to those of a shareholder
and shall be a shareholder  when his or her purchase is entered upon the records
of the duly  authorized  transfer agent of the Company.  No adjustment  shall be
made for a dividend  or other  right for which the  record  date is prior to the
date the Stock Purchase Right is exercised,  except as provided in Section 18 of
the Plan.

     13. PAYMENT FOR SHARE PURCHASES.  Payment for Shares purchased  pursuant to
this Plan may be made in case (by check) or,  where  expressly  approved for the
Participant by the Committee and where  permitted by law:

                                       10

<PAGE>

          a. by cancellation of indebtedness of the Company to the Participant;

          b. by  surrender  of shares  that  either:  (A) 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 (B) were obtained by the  Participant  in the public
market;

          c. by waiver of  compensation  due or accrued to the  participant  for
services rendered;

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

e. by any combination of the foregoing.

     14. WITHHOLDING TAXES.

          a.  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.

          b. STOCK  WITHHOLDING.  When, under applicably 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.

     15. PRIVILEGES OF STOCK OWNERSHIP.

          a. 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

                                       11

<PAGE>

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,  than 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 17.

          b. 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.

     16. NON-TRANSFERABILITY OF AWARDS AND STOCK PURCHASE RIGHTS. The Awards and
Stock  Purchase  Rights  may  not  be  sold,  pledged,  assigned,  hypothecated,
transferred,  or disposed of in any manner  other than by will or by the laws of
descent  or  distribution  and may be  exercised,  during  the  lifetime  of the
Optionee, only by the Optionee.

     17. 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 mony  indebytedness  and the
price per share shall be the Participant's  Exercise Price or Purchase Price, as
applicable.

     18. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR ASSET SALE.

          a. CHANGES IN  CAPITALIZATION.  Subject to any required  action by the
shareholders  of the Company,  the number of shares of Common  Stock  covered by
each  outstanding  Award or Stock  Purchase  Right,  and the number of shares of
Common Stock which have been  authorized  for issuance  under the Plan but as to
which no Options or Stock  Purchase  Rights have yet been  granted or which have
been returned to the Plan upon  cancellation  or expiration of an Award or Stock
Purchase  Right,  as well as the price per share of Common Stock covered by each
such  outstanding  Award  or Stock  Purchase  Right,  shall  be  proportionately
adjusted for any  increase or decrease in the number of issued  shares of Common
Stock  resulting  from a stock  split,  reverse  stock  split,  stock  dividend,
combination or  reclassification  of the Common Stock,  or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company. The conversion of any convertible securities of
the  Company  shall  not be deemed to have been  "effected  without  receipt  of
consideration."  Such adjustment shall be made by the Board, whose determination
in that  respect  shall be final,  binding and  conclusive.  Except as expressly
provided herein,  no issuance by the Company of shares of stock of any class, or
securities  convertible into shares of stock of any class,  shall affect, and no
adjustment by reason  thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Award or Stock Purchase Right.

                                       12

<PAGE>

          b.   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.  The Administrator in its discretion may provide for an Participant
to have the right to  exercise  his or her Award or Stock  Purchase  Right until
fifteen  (15) days  prior to such  transaction  as to all of the  Awarded  Stock
covered thereby,  including Shares as to which the Award or Stock Purchase Right
would not otherwise be exercisable.  In addition,  the Administrator may provide
that any Company  repurchase  option  applicable  to any Shares  purchased  upon
exercise of an Award or Stock  Purchase Right shall lapse as to all such Shares,
provided the proposed  dissolution or liquidation takes place at the time and in
the manner contemplated.  To the extent it has not been previously exercised, an
Award  or  Stock  Purchase  Right  will  terminate   immediately  prior  to  the
consummation of such proposed action.

          c. MERGER OR ASSET SALE.  In the event of a merger of the Company with
or into another  corporation,  or the sale of substantially all of the assets of
the Company, each outstanding Award and Stock Purchase Right shall be assumed or
an equivalent  option or right  substituted  by the successor  corporation  or a
Parent  or  Subsidiary  of the  successor  corporation.  In the  event  that the
successor  corporation  refuses to assume or  substitute  for the Award or Stock
Purchase  Right,  the  Participant  shall  fully  vest in and have the  right to
exercise  the  Award or Stock  Purchase  Right as to all of the  Awarded  Stock,
including Shares as to which it would not otherwise be vested or exercisable. If
an Award or Stock Purchase Right becomes fully vested and exercisable in lieu of
assumption  or  substitution  in the  event of a merger or sale of  assets,  the
Administrator shall notify the Participant in writing or electronically that the
Award or Stock Purchase Right shall be fully exercisable for a period of fifteen
(15) days from the date of such notice,  and the Award or Stock  Purchase  Right
shall  terminate  upon the  expiration of such period.  For the purposes of this
paragraph,  the Award or Stock  Purchase  Right shall be considered  assumed if,
following the merger or sale of assets, the option or right confers the right to
purchase or  receive,  for each Share of Awarded  Stock  subject to the Award or
Stock  Purchase  Right  immediately  prior to the merger or sale of assets,  the
consideration (whether stock, cash, or other securities or property) received in
the merger or sale of assets by  holders of Common  Stock for each Share held on
the effective date of the  transaction  (and if holders were offered a choice of
consideration,  the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided,  however, that if such consideration received
in the  merger or sale of assets is not  solely  common  stock of the  successor
corporation  or its  Parent,  the  Administrator  may,  with the  consent of the
successor  corporation,  provide for the  consideration  to be received upon the
exercise of the Award or Stock Purchase  Right,  for each Share of Awarded Stock
subject to the Award or Stock Purchase  Right,  to be solely common stock of the
successor  corporation or its Parent equal in Fair Market Value to the per share
consideration  received  by  holders  of Common  Stock in the  merger or sale of
assets.

     19. TIME OF GRANTING OPTIONS AND STOCK PURCHASE  RIGHTS.  The date of grant
of an Award or Stock  Purchase  Right shall,  for all  purposes,  be the date on
which the  Administrator  makes the  determination  granting such Award or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Service Provider to whom an Award or
Stock Purchase  Right is so granted  within a reasonable  time after the date of
such grant.

                                       13

<PAGE>

     20. AMENDMENT AND TERMINATION OF THE PLAN.

          a. AMENDMENT AND TERMINATION.  The Board may at any time amend, alter,
suspend or terminate the Plan.

          b. SHAREHOLDER  APPROVAL.  The Board shall obtain shareholder approval
of any Plan  amendment  to the extent  necessary  and  desirable  to comply with
Applicable Laws.

          c. EFFECT OF  AMENDMENT  OR  TERMINATION.  No  amendment,  alteration,
suspension  or   termination  of  the  Plan  shall  impair  the  rights  of  any
Participant,  unless mutually agreed  otherwise  between the Participant and the
Administrator,  which agreement must be in writing and signed by the Participant
and the Company.  Termination  of the Plan shall not affect the  Administrator's
ability to exercise the powers  granted to it  hereunder  with respect to Awards
granted under the Plan prior to the date of such termination.

     21. CONDITIONS UPON ISSUANCE OF SHARES.

          a.  LEGAL  COMPLIANCE.  Shares  shall  not be issued  pursuant  to the
exercise  of an Award  unless the  exercise of such Award and the  issuance  and
delivery of such Shares shall comply with  Applicable  Laws and shall be further
subject  to the  approval  of  counsel  for the  Company  with  respect  to such
compliance.

          b.  INVESTMENT  REPRESENTATIONS.  As a condition to the exercise of an
Award,  the  Administrator  may  require  the  person  exercising  such Award to
represent and warrant at the time of any such exercise that the Shares are being
purchased  only for  investment  and without any  present  intention  to sell or
distribute  such Shares if, in the opinion of counsel  for the  Company,  such a
representation is required.

     22. INABILITY TO OBTAIN  AUTHORITY.  The inability of the Company to obtain
authority  from any  regulatory  body having  jurisdiction,  which  authority is
deemed by the Company's  counsel to be necessary to the lawful issuance and sale
of any Shares  hereunder,  shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

     23. RESERVATION OF SHARES. The Company, during the term of this Plan, shall
at all  times  reserve  and keep  available  such  number  of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     24. SHAREHOLDER  APPROVAL.  Issuances of Incentive Stock Options under this
Plan shall be subject to approval of the Plan by the shareholders of the Company
within twelve (12) months after the date the Plan is adopted by the Board.  Such
shareholder  approval shall be obtained in the degree and manner  required under
Applicable Laws.

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