Document:

THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT
         HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
         EXCEPT AS OTHERWISE SET FORTH HEREIN OR IN A SECURITIES PURCHASE
         AGREEMENT DATED AS OF SEPTEMBER 20, 2005, NEITHER THIS WARRANT NOR ANY
         OF SUCH SHARES MAY BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
         AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SAID ACT
         OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, CUSTOMARY FOR
         OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS
         NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR
         REGULATION S UNDER SUCH ACT.

                                                                     Right to
                                                                     Purchase
                                                                     1,020,000
                                                                     Shares of
                                                                     Common
                                                                     Stock, par
                                                                     value $.001
                                                                     per share

                             STOCK PURCHASE WARRANT

         THIS CERTIFIES THAT, for value received, AJW Qualified Partners, LLC or
its registered assigns, is entitled to purchase from GPS Industries, Inc., a
Nevada corporation (the "Company"), at any time or from time to time during the
period specified in Paragraph 2 hereof, 1,020,000 fully paid and nonassessable
shares of the Company's Common Stock, par value $.001 per share (the "Common
Stock"), at an exercise price per share equal to $.25 (the "Exercise Price").
The term "Warrant Shares," as used herein, refers to the shares of Common Stock
purchasable hereunder. The Warrant Shares and the Exercise Price are subject to
adjustment as provided in Paragraph 4 hereof. The term "Warrants" means this
Warrant and the other warrants issued pursuant to that certain Securities
Purchase Agreement, dated September 20, 2005, by and among the Company and the
Buyers listed on the execution page thereof (the "Securities Purchase
Agreement").

         This Warrant is subject to the following terms, provisions, and
conditions:

     1.  Manner of  Exercise;  Issuance  of  Certificates;  Payment  for Shares.
Subject to the  provisions  hereof,  this Warrant may be exercised by the holder
hereof,  in whole or in part, by the surrender of this Warrant,  together with a
completed  exercise  agreement  in  the  form  attached  hereto  (the  "Exercise
Agreement"),  to the Company during normal business hours on any business day at
the Company's principal executive offices (or such other office or agency of the
Company  as it may  designate  by notice  to the  holder  hereof),  and upon (i)
payment to the Company in cash,  by certified or official  bank check or by wire

<PAGE>

transfer  for the account of the Company of the  Exercise  Price for the Warrant
Shares specified in the Exercise  Agreement or (ii) if the resale of the Warrant
Shares  by  the  holder  is  not  then  registered   pursuant  to  an  effective
registration  statement  under  the  Securities  Act of 1933,  as  amended  (the
"Securities Act"), delivery to the Company of a written notice of an election to
effect a "Cashless Exercise" (as defined in Section 11(c) below) for the Warrant
Shares  specified in the  Exercise  Agreement.  The Warrant  Shares so purchased
shall be deemed to be issued to the holder hereof or such holder's designee,  as
the record  owner of such  shares,  as of the close of  business  on the date on
which this Warrant shall have been surrendered, the completed Exercise Agreement
shall have been  delivered,  and payment shall have been made for such shares as
set forth above. Certificates for the Warrant Shares so purchased,  representing
the aggregate  number of shares  specified in the Exercise  Agreement,  shall be
delivered to the holder hereof within a reasonable  time, not exceeding five (5)
business days, after this Warrant shall have been so exercised. The certificates
so delivered  shall be in such  denominations  as may be requested by the holder
hereof and shall be  registered in the name of such holder or such other name as
shall be  designated by such holder.  If this Warrant shall have been  exercised
only in part, then,  unless this Warrant has expired,  the Company shall, at its
expense,  at the time of delivery of such certificates,  deliver to the holder a
new Warrant representing the number of shares with respect to which this Warrant
shall not then have been exercised.  In addition to all other available remedies
at law or in  equity,  if the  Company  fails to  deliver  certificates  for the
Warrant  Shares  within five (5) business  days after this Warrant is exercised,
then the Company shall pay to the holder in cash a penalty (the "Penalty") equal
to 2% of the number of Warrant  Shares that the holder is entitled to multiplied
by the Market Price (as hereinafter defined) for each day that the Company fails
to deliver  certificates for the Warrant Shares.  For example,  if the holder is
entitled  to 100,000  Warrant  Shares and the  Market  Price is $2.00,  then the
Company  shall pay to the holder  $4,000 for each day that the Company  fails to
deliver  certificates  for the Warrant Shares.  The Penalty shall be paid to the
holder  by the  fifth  day of the  month  following  the  month  in which it has
accrued.

     Notwithstanding anything in this Warrant to the contrary, in no event shall
the holder of this  Warrant be entitled  to  exercise a number of  Warrants  (or
portions thereof) in excess of the number of Warrants (or portions thereof) upon
exercise  of  which  the  sum of (i)  the  number  of  shares  of  Common  Stock
beneficially owned by the holder and its affiliates (other than shares of Common
Stock  which may be deemed  beneficially  owned  through  the  ownership  of the
unexercised  Warrants and the  unexercised or  unconverted  portion of any other
securities  of the Company  (including  the Notes (as defined in the  Securities
Purchase Agreement)) subject to a limitation on conversion or exercise analogous
to the  limitation  contained  herein)  and (ii) the  number of shares of Common
Stock issuable upon exercise of the Warrants (or portions  thereof) with respect
to which the  determination  described  herein is being  made,  would  result in
beneficial  ownership by the holder and its  affiliates of more than 4.9% of the
outstanding  shares of Common Stock.  For purposes of the immediately  preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d) of the Securities  Exchange Act of 1934, as amended,  and Regulation 13D-G
thereunder,  except  as  otherwise  provided  in  clause  (i) of  the  preceding
sentence.  Notwithstanding  anything  to  the  contrary  contained  herein,  the
limitation  on  exercise  of this  Warrant  set forth  herein may not be amended
without  (i) the written  consent of the holder  hereof and the Company and (ii)
the approval of a majority of shareholders of the Company.

                                      -2-

<PAGE>

     2. Period of Exercise. This Warrant is exercisable at any time or from time
to time on or after  the date on which  this  Warrant  is issued  and  delivered
pursuant to the terms of the Securities Purchase Agreement and before 6:00 p.m.,
New York,  New York time on the fifth (5th)  anniversary of the date of issuance
(the "Exercise Period").

     3. Certain  Agreements  of the Company.  The Company  hereby  covenants and
agrees as follows:

     (a) Shares to be Fully Paid.  All Warrant  Shares  will,  upon  issuance in
accordance with the terms of this Warrant,  be validly  issued,  fully paid, and
nonassessable  and free from all taxes,  liens,  and charges with respect to the
issue thereof.

     (b) Reservation of Shares. During the Exercise Period, the Company shall at
all times  have  authorized,  and  reserved  for the  purpose of  issuance  upon
exercise  of this  Warrant,  a  sufficient  number of shares of Common  Stock to
provide for the exercise of this Warrant.

     (c) Listing. The Company shall promptly secure the listing of the shares of
Common Stock issuable upon exercise of the Warrant upon each national securities
exchange or  automated  quotation  system,  if any,  upon which shares of Common
Stock are then listed  (subject to official  notice of issuance upon exercise of
this  Warrant) and shall  maintain,  so long as any other shares of Common Stock
shall be so listed, such listing of all shares of Common Stock from time to time
issuable  upon the exercise of this  Warrant;  and the Company  shall so list on
each national securities exchange or automated quotation system, as the case may
be, and shall maintain such listing of, any other shares of capital stock of the
Company  issuable upon the exercise of this Warrant if and so long as any shares
of the same  class  shall be  listed on such  national  securities  exchange  or
automated quotation system.

     (d) Certain Actions  Prohibited.  The Company will not, by amendment of its
charter or  through  any  reorganization,  transfer  of  assets,  consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the  observance or  performance of any of the terms to be
observed  or  performed  by it  hereunder,  but will at all times in good  faith
assist in the  carrying  out of all the  provisions  of this  Warrant and in the
taking of all such action as may  reasonably  be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against dilution or other  impairment,  consistent with the tenor and purpose of
this Warrant.  Without limiting the generality of the foregoing, the Company (i)
will not increase the par value of any shares of Common  Stock  receivable  upon
the exercise of this Warrant above the Exercise  Price then in effect,  and (ii)
will take all such actions as may be necessary or  appropriate in order that the
Company may validly and  legally  issue fully paid and  nonassessable  shares of
Common Stock upon the exercise of this Warrant.

     (e)  Successors  and Assigns.  This Warrant will be binding upon any entity
succeeding to the Company by merger,  consolidation,  or  acquisition  of all or
substantially all the Company's assets.

     4. Antidilution Provisions.  During the Exercise Period, the Exercise Price
and the number of Warrant  Shares  shall be subject to  adjustment  from time to
time as provided in this Paragraph 4.

                                      -3-

<PAGE>

         In the event that any adjustment of the Exercise Price as required
herein results in a fraction of a cent, such Exercise Price shall be rounded up
to the nearest cent.

     (a)  Adjustment  of Exercise  Price and Number of Shares  upon  Issuance of
Common Stock.  Except as otherwise  provided in Paragraphs 4(c) and 4(e) hereof,
if and  whenever on or after the date of issuance of this  Warrant,  the Company
issues or sells,  or in accordance  with Paragraph 4(b) hereof is deemed to have
issued  or sold,  any  shares  of Common  Stock  for no  consideration  or for a
consideration per share (before deduction of reasonable  expenses or commissions
or underwriting  discounts or allowances in connection  therewith) less than the
Market Price on the date of issuance (a "Dilutive  Issuance"),  then immediately
upon the  Dilutive  Issuance,  the  Exercise  Price  will be  reduced to a price
determined by multiplying the Exercise Price in effect  immediately prior to the
Dilutive  Issuance by a fraction,  (i) the numerator of which is an amount equal
to the sum of (x) the  number of shares of  Common  Stock  actually  outstanding
immediately  prior  to the  Dilutive  Issuance,  plus  (y) the  quotient  of the
aggregate  consideration,  calculated  as set forth in  Paragraph  4(b)  hereof,
received by the Company upon such Dilutive  Issuance divided by the Market Price
in effect immediately prior to the Dilutive  Issuance,  and (ii) the denominator
of which is the total number of shares of Common Stock  Deemed  Outstanding  (as
defined below) immediately after the Dilutive Issuance.

     (b) Effect on Exercise Price of Certain Events. For purposes of determining
the adjusted  Exercise Price under Paragraph 4(a) hereof,  the following will be
applicable:

     (i) Issuance of Rights or Options.  If the Company in any manner  issues or
grants any warrants,  rights or options, whether or not immediately exercisable,
to subscribe  for or to purchase  Common Stock or other  securities  convertible
into or exchangeable for Common Stock ("Convertible Securities") (such warrants,
rights and  options to  purchase  Common  Stock or  Convertible  Securities  are
hereinafter  referred to as "Options")  and the price per share for which Common
Stock is  issuable  upon the  exercise  of such  Options is less than the Market
Price on the date of issuance or grant of such  Options,  then the maximum total
number of shares of Common Stock  issuable upon the exercise of all such Options
will, as of the date of the issuance or grant of such  Options,  be deemed to be
outstanding  and to have been  issued and sold by the Company for such price per
share.  For purposes of the preceding  sentence,  the "price per share for which
Common Stock is issuable  upon the exercise of such  Options" is  determined  by
dividing (i) the total amount,  if any, received or receivable by the Company as
consideration for the issuance or granting of all such Options, plus the minimum
aggregate  amount of additional  consideration,  if any,  payable to the Company
upon  the  exercise  of all  such  Options,  plus,  in the  case of  Convertible
Securities  issuable  upon the exercise of such Options,  the minimum  aggregate
amount of  additional  consideration  payable  upon the  conversion  or exchange
thereof at the time such  Convertible  Securities  first become  convertible  or
exchangeable,  by (ii) the  maximum  total  number of  shares  of  Common  Stock
issuable  upon the exercise of all such Options  (assuming  full  conversion  of
Convertible  Securities,  if applicable).  No further adjustment to the Exercise
Price  will be made upon the  actual  issuance  of such  Common  Stock  upon the
exercise of such  Options or upon the  conversion  or  exchange  of  Convertible
Securities issuable upon exercise of such Options.

                                      -4-

<PAGE>

     (ii)  Issuance  of  Convertible  Securities.  If the  Company in any manner
issues  or  sells  any  Convertible  Securities,   whether  or  not  immediately
convertible  (other  than  where  the same are  issuable  upon the  exercise  of
Options) and the price per share for which  Common  Stock is issuable  upon such
conversion  or exchange is less than the Market  Price on the date of  issuance,
then the  maximum  total  number of shares of  Common  Stock  issuable  upon the
conversion or exchange of all such  Convertible  Securities will, as of the date
of the issuance of such Convertible Securities,  be deemed to be outstanding and
to have been issued and sold by the  Company  for such price per share.  For the
purposes of the preceding sentence,  the "price per share for which Common Stock
is issuable upon such  conversion or exchange" is determined by dividing (i) the
total amount, if any, received or receivable by the Company as consideration for
the  issuance  or sale of all such  Convertible  Securities,  plus  the  minimum
aggregate  amount of additional  consideration,  if any,  payable to the Company
upon the conversion or exchange thereof at the time such Convertible  Securities
first become  convertible or  exchangeable,  by (ii) the maximum total number of
shares of Common  Stock  issuable  upon the  conversion  or exchange of all such
Convertible Securities. No further adjustment to the Exercise Price will be made
upon the actual  issuance of such Common  Stock upon  conversion  or exchange of
such Convertible Securities.

     (iii) Change in Option Price or  Conversion  Rate.  If there is a change at
any time in (i) the amount of  additional  consideration  payable to the Company
upon the exercise of any Options;  (ii) the amount of additional  consideration,
if  any,  payable  to  the  Company  upon  the  conversion  or  exchange  of any
Convertible  Securities;  or (iii) the rate at which any Convertible  Securities
are convertible  into or  exchangeable  for Common Stock (other than under or by
reason of provisions  designed to protect against dilution),  the Exercise Price
in effect at the time of such change will be  readjusted  to the Exercise  Price
which  would have been in effect at such time had such  Options  or  Convertible
Securities still outstanding provided for such changed additional  consideration
or changed  conversion rate, as the case may be, at the time initially  granted,
issued or sold.

     (iv) Treatment of Expired Options and Unexercised  Convertible  Securities.
If, in any case,  the total  number  of  shares of Common  Stock  issuable  upon
exercise  of any  Option  or upon  conversion  or  exchange  of any  Convertible
Securities is not, in fact,  issued and the rights to exercise such Option or to
convert  or  exchange  such   Convertible   Securities  shall  have  expired  or
terminated, the Exercise Price then in effect will be readjusted to the Exercise
Price  which  would  have  been in  effect  at the  time of such  expiration  or
termination had such Option or Convertible Securities, to the extent outstanding
immediately  prior to such  expiration or termination  (other than in respect of
the actual  number of shares of Common Stock issued upon  exercise or conversion
thereof), never been issued.

     (v) Calculation of Consideration  Received. If any Common Stock, Options or
Convertible  Securities are issued,  granted or sold for cash, the consideration
received  therefor for  purposes of this Warrant will be the amount  received by
the Company therefor,  before deduction of reasonable commissions,  underwriting
discounts or  allowances  or other  reasonable  expenses paid or incurred by the
Company in  connection  with such  issuance,  grant or sale.  In case any Common
Stock, Options or Convertible  Securities are issued or sold for a consideration
part or all of which shall be other than cash,  the amount of the  consideration
other  than  cash  received  by the  Company  will  be the  fair  value  of such
consideration,  except where such consideration consists of securities, in which
case the amount of  consideration  received  by the  Company  will be the Market
Price thereof as of the date of receipt.  In case any Common  Stock,  Options or
Convertible Securities are issued in connection with any acquisition,  merger or
consolidation in which the Company is the surviving  corporation,  the amount of
consideration  therefor  will be deemed to be the fair value of such  portion of
the net assets and business of the non-surviving  corporation as is attributable
to such Common Stock, Options or Convertible Securities, as the case may be. The
fair value of any consideration other than cash or securities will be determined
in good faith by the Board of Directors of the Company.

                                      -5-

<PAGE>

     (vi)  Exceptions  to  Adjustment  of Exercise  Price.  No adjustment to the
Exercise  Price will be made (i) upon the exercise of any  warrants,  options or
convertible  securities granted,  issued and outstanding on the date of issuance
of this  Warrant;  (ii) upon the grant or exercise of any stock or options which
may hereafter be granted or exercised  under any employee  benefit  plan,  stock
option  plan or  restricted  stock plan of the  Company  now  existing  or to be
implemented  in the future,  so long as the issuance of such stock or options is
approved by a majority of the  independent  members of the Board of Directors of
the Company or a majority of the members of a committee of independent directors
established for such purpose; or (iii) upon the exercise of the Warrants.

     (c)  Subdivision or Combination of Common Stock. If the Company at any time
subdivides   (by   any   stock   split,   stock   dividend,    recapitalization,
reorganization,  reclassification  or  otherwise)  the  shares of  Common  Stock
acquirable  hereunder into a greater number of shares,  then,  after the date of
record for effecting such subdivision,  the Exercise Price in effect immediately
prior to such subdivision will be proportionately reduced. If the Company at any
time  combines  (by  reverse  stock  split,  recapitalization,   reorganization,
reclassification  or otherwise) the shares of Common Stock acquirable  hereunder
into a smaller  number of shares,  then,  after the date of record for effecting
such  combination,  the  Exercise  Price  in  effect  immediately  prior to such
combination will be proportionately increased.

     (d)  Adjustment in Number of Shares.  Upon each  adjustment of the Exercise
Price  pursuant to the  provisions of this  Paragraph 4, the number of shares of
Common  Stock  issuable  upon  exercise  of this  Warrant  shall be  adjusted by
multiplying a number equal to the Exercise Price in effect  immediately prior to
such  adjustment by the number of shares of Common Stock  issuable upon exercise
of this Warrant immediately prior to such adjustment and dividing the product so
obtained by the adjusted Exercise Price.

     (e)  Consolidation,  Merger or Sale.  In case of any  consolidation  of the
Company with, or merger of the Company into any other corporation, or in case of
any sale or conveyance of all or substantially  all of the assets of the Company
other than in  connection  with a plan of complete  liquidation  of the Company,
then  as a  condition  of such  consolidation,  merger  or  sale or  conveyance,
adequate provision will be made whereby the holder of this Warrant will have the
right to acquire and receive upon exercise of this Warrant in lieu of the shares
of Common Stock  immediately  theretofore  acquirable  upon the exercise of this
Warrant, such shares of stock,  securities or assets as may be issued or payable
with  respect  to or in  exchange  for the  number of  shares  of  Common  Stock
immediately  theretofore acquirable and receivable upon exercise of this Warrant
had such  consolidation,  merger or sale or conveyance  not taken place.  In any
such case,  the  Company  will make  appropriate  provision  to insure  that the
provisions of this Paragraph 4 hereof will thereafter be applicable as nearly as
may be in relation to any shares of stock or securities  thereafter  deliverable
upon  the   exercise  of  this   Warrant.   The  Company  will  not  effect  any
consolidation,  merger or sale or  conveyance  unless prior to the  consummation
thereof,  the  successor  corporation  (if other  than the  Company)  assumes by
written instrument the obligations under this Paragraph 4 and the obligations to
deliver to the holder of this Warrant such shares of stock, securities or assets
as, in accordance with the foregoing  provisions,  the holder may be entitled to
acquire.

                                      -6-

<PAGE>

     (f)  Distribution of Assets.  In case the Company shall declare or make any
distribution  of its assets  (including  cash) to  holders of Common  Stock as a
partial liquidating  dividend,  by way of return of capital or otherwise,  then,
after  the  date  of  record  for  determining  shareholders  entitled  to  such
distribution,  but prior to the date of distribution, the holder of this Warrant
shall be entitled  upon  exercise of this Warrant for the purchase of any or all
of the shares of Common  Stock  subject  hereto,  to receive  the amount of such
assets  which  would have been  payable to the holder had such  holder  been the
holder of such shares of Common  Stock on the record date for the  determination
of shareholders entitled to such distribution.

     (g) Notice of  Adjustment.  Upon the occurrence of any event which requires
any adjustment of the Exercise  Price,  then, and in each such case, the Company
shall give notice  thereof to the holder of this  Warrant,  which  notice  shall
state the Exercise  Price  resulting  from such  adjustment  and the increase or
decrease  in the  number  of  Warrant  Shares  purchasable  at such  price  upon
exercise,  setting forth in reasonable  detail the method of calculation and the
facts upon which such calculation is based.  Such calculation shall be certified
by the Chief Financial Officer of the Company.

     (h) Minimum  Adjustment  of Exercise  Price.  No adjustment of the Exercise
Price shall be made in an amount of less than 1% of the Exercise Price in effect
at the time such  adjustment  is  otherwise  required  to be made,  but any such
lesser  adjustment  shall be carried  forward  and shall be made at the time and
together  with  the  next  subsequent   adjustment  which,   together  with  any
adjustments  so  carried  forward,  shall  amount  to not  less  than 1% of such
Exercise Price.

     (i) No Fractional  Shares.  No fractional  shares of Common Stock are to be
issued upon the  exercise  of this  Warrant,  but the  Company  shall pay a cash
adjustment in respect of any fractional  share which would otherwise be issuable
in an amount equal to the same fraction of the Market Price of a share of Common
Stock on the date of such exercise.

     (j) Other Notices. In case at any time:

     (i) the Company shall declare any dividend upon the Common Stock payable in
shares of stock of any class or make any other distribution (including dividends
or distributions payable in cash out of retained earnings) to the holders of the
Common Stock;

     (ii) the Company  shall offer for  subscription  pro rata to the holders of
the Common Stock any additional shares of stock of any class or other rights;

     (iii)  there  shall  be  any  capital  reorganization  of the  Company,  or
reclassification  of the Common Stock, or consolidation or merger of the Company
with or  into,  or sale of all or  substantially  all  its  assets  to,  another
corporation or entity; or

     (iv) there shall be a voluntary or involuntary dissolution,  liquidation or
winding up of the Company;

                                      -7-

<PAGE>

then, in each such case, the Company shall give to the holder of this Warrant
(a) notice of the date on which the books of the Company shall close or a record
shall be taken for determining the holders of Common Stock entitled to receive
any such dividend, distribution, or subscription rights or for determining the
holders of Common Stock entitled to vote in respect of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up and (b) in the case of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding-up, notice of
the date (or, if not then known, a reasonable approximation thereof by the
Company) when the same shall take place. Such notice shall also specify the date
on which the holders of Common Stock shall be entitled to receive such dividend,
distribution, or subscription rights or to exchange their Common Stock for stock
or other securities or property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation, or
winding-up, as the case may be. Such notice shall be given at least 30 days
prior to the record date or the date on which the Company's books are closed in
respect thereto. Failure to give any such notice or any defect therein shall not
affect the validity of the proceedings referred to in clauses (i), (ii), (iii)
and (iv) above.

     (k) Certain  Events.  If any event occurs of the type  contemplated  by the
adjustment provisions of this Paragraph 4 but not expressly provided for by such
provisions,  the Company will give notice of such event as provided in Paragraph
4(g)  hereof,  and the  Company's  Board of Directors  will make an  appropriate
adjustment  in the  Exercise  Price and the  number  of  shares of Common  Stock
acquirable  upon exercise of this Warrant so that the rights of the holder shall
be neither enhanced nor diminished by such event.

     (l) Certain Definitions.

     (i) "Common  Stock Deemed  Outstanding"  shall mean the number of shares of
Common Stock actually  outstanding (not including shares of Common Stock held in
the treasury of the Company), plus (x) pursuant to Paragraph 4(b)(i) hereof, the
maximum  total  number of shares of Common Stock  issuable  upon the exercise of
Options,  as of the date of such issuance or grant of such Options,  if any, and
(y) pursuant to Paragraph 4(b)(ii) hereof, the maximum total number of shares of
Common Stock issuable upon conversion or exchange of Convertible Securities,  as
of the date of issuance of such Convertible Securities, if any.

     (ii)  "Market  Price,"  as of any date,  (i) means the  average of the last
reported  sale  prices for the shares of Common  Stock on the OTCBB for the five
(5) Trading Days  immediately  preceding such date as reported by Bloomberg,  or
(ii) if the OTCBB is not the principal  trading  market for the shares of Common
Stock,  the average of the last reported  sale prices on the  principal  trading
market for the Common Stock during the same period as reported by Bloomberg,  or
(iii)  if  market  value  cannot  be  calculated  as of such  date on any of the
foregoing  bases,  the Market Price shall be the fair market value as reasonably
determined in good faith by (a) the Board of Directors of the Company or, at the
option of a  majority-in-interest  of the holders of the outstanding Warrants by
(b) an  independent  investment  bank of nationally  recognized  standing in the
valuation of businesses  similar to the business of the corporation.  The manner
of  determining  the Market Price of the Common Stock set forth in the foregoing
definition  shall apply with respect to any other security in respect of which a
determination as to market value must be made hereunder.

                                      -8-

<PAGE>

     (iii) "Common Stock," for purposes of this Paragraph 4, includes the Common
Stock,  par value  $.001 per  share,  and any  additional  class of stock of the
Company having no preference as to dividends or  distributions  on  liquidation,
provided that the shares purchasable pursuant to this Warrant shall include only
shares of Common  Stock,  par value  $.001 per  share,  in respect of which this
Warrant is exercisable,  or shares resulting from any subdivision or combination
of such Common Stock,  or in the case of any  reorganization,  reclassification,
consolidation,  merger,  or sale of the character  referred to in Paragraph 4(e)
hereof,  the  stock  or  other  securities  or  property  provided  for in  such
Paragraph.

     5. Issue Tax.  The  issuance of  certificates  for Warrant  Shares upon the
exercise  of this  Warrant  shall be made  without  charge to the holder of this
Warrant or such shares for any issuance  tax or other costs in respect  thereof,
provided  that the  Company  shall not be  required  to pay any tax which may be
payable in respect of any transfer  involved in the issuance and delivery of any
certificate in a name other than the holder of this Warrant.

     6. No  Rights or  Liabilities  as a  Shareholder.  This  Warrant  shall not
entitle the holder  hereof to any voting rights or other rights as a shareholder
of the  Company.  No provision of this  Warrant,  in the absence of  affirmative
action by the holder hereof to purchase Warrant Shares,  and no mere enumeration
herein of the rights or privileges of the holder hereof,  shall give rise to any
liability  of such  holder for the  Exercise  Price or as a  shareholder  of the
Company,  whether  such  liability is asserted by the Company or by creditors of
the Company.

     7. Transfer, Exchange, and Replacement of Warrant.

     (a)  Restriction  on Transfer.  This Warrant and the rights  granted to the
holder  hereof are  transferable,  in whole or in part,  upon  surrender of this
Warrant,  together  with a properly  executed  assignment  in the form  attached
hereto,  at the office or agency of the Company  referred to in  Paragraph  7(e)
below,  provided,  however,  that any transfer or assignment shall be subject to
the  conditions  set  forth  in  Paragraph  7(f)  hereof  and to the  applicable
provisions of the  Securities  Purchase  Agreement.  Until due  presentment  for
registration of transfer on the books of the Company,  the Company may treat the
registered  holder hereof as the owner and holder  hereof for all purposes,  and
the Company shall not be affected by any notice to the contrary. Notwithstanding
anything to the contrary contained herein, the registration  rights described in
Paragraph  8 are  assignable  only in  accordance  with the  provisions  of that
certain  Registration  Rights Agreement,  dated September 20, 2005, by and among
the  Company  and  the  other  signatories  thereto  (the  "Registration  Rights
Agreement").

     (b) Warrant  Exchangeable  for  Different  Denominations.  This  Warrant is
exchangeable,  upon the  surrender  hereof by the holder hereof at the office or
agency of the Company  referred to in Paragraph 7(e) below,  for new Warrants of
like tenor  representing  in the  aggregate  the right to purchase the number of
shares  of  Common  Stock  which may be  purchased  hereunder,  each of such new
Warrants to  represent  the right to purchase  such number of shares as shall be
designated by the holder hereof at the time of such surrender.

     (c)   Replacement   of  Warrant.   Upon  receipt  of  evidence   reasonably
satisfactory to the Company of the loss,  theft,  destruction,  or mutilation of
this  Warrant and, in the case of any such loss,  theft,  or  destruction,  upon
delivery of an indemnity agreement reasonably satisfactory in form and amount to
the  Company,  or,  in the  case of any  such  mutilation,  upon  surrender  and
cancellation  of this  Warrant,  the Company,  at its expense,  will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

                                      -9-

<PAGE>

     (d) Cancellation;  Payment of Expenses.  Upon the surrender of this Warrant
in connection  with any transfer,  exchange,  or replacement as provided in this
Paragraph 7, this Warrant shall be promptly canceled by the Company. The Company
shall  pay all  taxes  (other  than  securities  transfer  taxes)  and all other
expenses  (other  than  legal  expenses,  if  any,  incurred  by the  holder  or
transferees) and charges payable in connection with the preparation,  execution,
and delivery of Warrants pursuant to this Paragraph 7.

     (e)  Register.  The Company  shall  maintain,  at its  principal  executive
offices (or such other  office or agency of the Company as it may  designate  by
notice to the holder hereof), a register for this Warrant,  in which the Company
shall  record the name and address of the person in whose name this  Warrant has
been issued,  as well as the name and address of each  transferee and each prior
owner of this Warrant.

     (f)  Exercise  or  Transfer  Without  Registration.  If, at the time of the
surrender of this Warrant in connection with any exercise, transfer, or exchange
of this  Warrant,  this  Warrant (or, in the case of any  exercise,  the Warrant
Shares issuable hereunder),  shall not be registered under the Securities Act of
1933, as amended (the "Securities Act") and under applicable state securities or
blue sky laws,  the  Company  may  require,  as a  condition  of  allowing  such
exercise,  transfer,  or  exchange,  (i) that the holder or  transferee  of this
Warrant,  as the case may be,  furnish  to the  Company  a  written  opinion  of
counsel,  which opinion and counsel are acceptable to the Company, to the effect
that such exercise, transfer, or exchange may be made without registration under
said Act and under  applicable  state securities or blue sky laws, (ii) that the
holder or transferee  execute and deliver to the Company an investment letter in
form and substance acceptable to the Company and (iii) that the transferee be an
"accredited investor" as defined in Rule 501(a) promulgated under the Securities
Act; provided that no such opinion, letter or status as an "accredited investor"
shall be required in connection  with a transfer  pursuant to Rule 144 under the
Securities  Act.  The first  holder of this  Warrant,  by taking and holding the
same,  represents to the Company that such holder is acquiring  this Warrant for
investment and not with a view to the distribution thereof.

     8.  Registration  Rights.  The initial  holder of this Warrant (and certain
assignees  thereof) is entitled  to the benefit of such  registration  rights in
respect of the Warrant Shares as are set forth in Section 2 of the  Registration
Rights Agreement.

     9. Notices. All notices,  requests,  and other  communications  required or
permitted to be given or delivered hereunder to the holder of this Warrant shall
be in writing, and shall be personally delivered,  or shall be sent by certified
or registered mail or by recognized overnight mail courier,  postage prepaid and
addressed,  to such holder at the address  shown for such holder on the books of
the  Company,  or at such  other  address as shall  have been  furnished  to the
Company  by  notice  from  such  holder.  All  notices,   requests,   and  other
communications  required or permitted to be given or delivered  hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid and  addressed,  to the office of the Company at Suite 214,  5500- 152nd
Street, Surrey, British Columbia V3S-5J9, Attention: Chief Executive Officer, or
at such other address as shall have been furnished to the holder of this Warrant

                                      -10-

<PAGE>

by notice from the Company. Any such notice, request, or other communication may
be sent by  facsimile,  but shall in such case be  subsequently  confirmed  by a
writing  personally  delivered  or sent by certified  or  registered  mail or by
recognized overnight mail courier as provided above. All notices,  requests, and
other  communications  shall be deemed to have been given  either at the time of
the receipt thereof by the person entitled to receive such notice at the address
of such person for purposes of this  Paragraph 9, or, if mailed by registered or
certified mail or with a recognized overnight mail courier upon deposit with the
United States Post Office or such overnight mail courier,  if postage is prepaid
and the mailing is properly addressed, as the case may be.

     10.  Governing  Law.  THIS  WARRANT  SHALL  BE  ENFORCED,  GOVERNED  BY AND
CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK  APPLICABLE  TO
AGREEMENTS MADE AND TO BE PERFORMED  ENTIRELY WITHIN SUCH STATE,  WITHOUT REGARD
TO THE  PRINCIPLES OF CONFLICT OF LAWS.  THE PARTIES HERETO HEREBY SUBMIT TO THE
EXCLUSIVE  JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT,  THE AGREEMENTS
ENTERED INTO IN CONNECTION  HEREWITH OR THE TRANSACTIONS  CONTEMPLATED HEREBY OR
THEREBY.  BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO
THE  MAINTENANCE  OF SUCH SUIT OR  PROCEEDING.  BOTH PARTIES  FURTHER AGREE THAT
SERVICE OF PROCESS  UPON A PARTY  MAILED BY FIRST  CLASS MAIL SHALL BE DEEMED IN
EVERY  RESPECT  EFFECTIVE  SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN
ANY  OTHER  MANNER   PERMITTED  BY  LAW.   BOTH  PARTIES   AGREE  THAT  A  FINAL
NON-APPEALABLE  JUDGMENT IN ANY SUCH SUIT OR PROCEEDING  SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER  JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL  MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE  ARISING  UNDER
THIS  WARRANT  SHALL  BE  RESPONSIBLE  FOR  ALL  FEES  AND  EXPENSES,  INCLUDING
ATTORNEYS'  FEES,  INCURRED  BY THE  PREVAILING  PARTY IN  CONNECTION  WITH SUCH
DISPUTE.

     11. Miscellaneous.

     (a) Amendments.  This Warrant and any provision  hereof may only be amended
by an instrument in writing signed by the Company and the holder hereof.

     (b)  Descriptive   Headings.   The  descriptive  headings  of  the  several
paragraphs  of this Warrant are inserted  for  purposes of reference  only,  and
shall not affect the meaning or construction of any of the provisions hereof.

     (c) Cashless Exercise.  Notwithstanding  anything to the contrary contained
in this Warrant,  if the resale of the Warrant  Shares by the holder is not then
registered pursuant to an effective  registration statement under the Securities
Act, this Warrant may be exercised by presentation and surrender of this Warrant
to the Company at its principal  executive  offices with a written notice of the
holder's intention to effect a cashless exercise, including a calculation of the
number of shares of Common Stock to be issued upon such  exercise in  accordance
with the  terms  hereof (a  "Cashless  Exercise").  In the  event of a  Cashless
Exercise,  in lieu of  paying  the  Exercise  Price in cash,  the  holder  shall

                                      -11-

<PAGE>

surrender  this Warrant for that number of shares of Common Stock  determined by
multiplying the number of Warrant Shares to which it would otherwise be entitled
by a fraction,  the numerator of which shall be the difference  between the then
current Market Price per share of the Common Stock and the Exercise  Price,  and
the  denominator  of which shall be the then  current  Market Price per share of
Common Stock. For example,  if the holder is exercising  100,000 Warrants with a
per Warrant  exercise price of $0.75 per share through a cashless  exercise when
the Common Stock's current Market Price per share is $2.00 per share,  then upon
such Cashless Exercise the holder will receive 62,500 shares of Common Stock.

     (d)  Remedies.  The  Company  acknowledges  that  a  breach  by it  of  its
obligations  hereunder will cause  irreparable harm to the holder,  by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly,  the
Company  acknowledges  that the  remedy at law for a breach  of its  obligations
under this Warrant will be  inadequate  and agrees,  in the event of a breach or
threatened  breach by the Company of the  provisions of this  Warrant,  that the
holder shall be entitled,  in addition to all other available remedies at law or
in equity, and in addition to the penalties  assessable herein, to an injunction
or injunctions restraining,  preventing or curing any breach of this Warrant and
to enforce specifically the terms and provisions thereof,  without the necessity
of showing economic loss and without any bond or other security being required.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed by its duly authorized officer.

                                                    GPS INDUSTRIES, INC.

                                                    By: ________________________
                                                         Robert Silzer
                                                         Chief Executive Officer

Dated as of September 20, 2005

<PAGE>

                           FORM OF EXERCISE AGREEMENT

                                                        Dated: ________ __, 200_

To:      ______________________

         The undersigned, pursuant to the provisions set forth in the within
Warrant, hereby agrees to purchase ________ shares of Common Stock covered by
such Warrant, and makes payment herewith in full therefor at the price per share
provided by such Warrant in cash or by certified or official bank check in the
amount of, or, if the resale of such Common Stock by the undersigned is not
currently registered pursuant to an effective registration statement under the
Securities Act of 1933, as amended, by surrender of securities issued by the
Company (including a portion of the Warrant) having a market value (in the case
of a portion of this Warrant, determined in accordance with Section 11(c) of the
Warrant) equal to $_________. Please issue a certificate or certificates for
such shares of Common Stock in the name of and pay any cash for any fractional
share to:

                                            Name: ______________________________

                                            Signature:
                                            Address:____________________________

                                                    ____________________________

                                            Note: The above signature should
                                                  correspond exactly with the
                                                  name on the face of the within
                                                  Warrant, if applicable.

and, if said number of shares of Common Stock shall not be all the shares
purchasable under the within Warrant, a new Warrant is to be issued in the name
of said undersigned covering the balance of the shares purchasable thereunder
less any fraction of a share paid in cash.

<PAGE>

                               FORM OF ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers all the rights of the undersigned under the within Warrant, with
respect to the number of shares of Common Stock covered thereby set forth
hereinbelow, to:

Name of Assignee                    Address                      No of Shares

, and hereby irrevocably constitutes and appoints ______________________________
as agent and attorney-in-fact to transfer said Warrant on the books of the
within-named corporation, with full power of substitution in the premises.

Dated:   ________ __, 200_

In the presence of:                               ______________________________

                                             Name:______________________________

                                             Signature:_________________________
                                             Title of Signing Officer or Agent
                                             (if any):

                                                  ______________________________

                                         Address: ______________________________

                                                  ______________________________

                                            Note:    The above signature should
                                                     correspond exactly with the
                                                     name on the face of the
                                                     within Warrant, if
                                                     applicable.Exhibit 4.1

                                                                                                        Exhibit
    4.1

    VOS
      INTERNATIONAL, INC.

    

    2005
      STOCK INCENTIVE PLAN

     

    1.
         Purpose.    The
      purpose of the 2005 Stock Incentive Plan of VOS International, Inc. is to
      further align the interests of employees, directors and non-employee Consultants
      with those of the stockholders by providing incentive compensation opportunities
      tied to the performance of the Common Stock and by promoting increased ownership
      of the Common Stock by such individuals. The Plan is also intended to advance
      the interests of the Company and its stockholders by attracting, retaining
      and
      motivating key personnel upon whose judgment, initiative and effort the
      successful conduct of the Company’s business is largely dependent. 

     

    2.
         Definitions.    Wherever
      the following capitalized terms are used in the Plan, they shall have the
      meanings specified below: 

     

    “Affiliate”
      means
      (i) any entity that would be treated as an “affiliate” of the Company for
      purposes of Rule 12b-2 under the Exchange Act and (ii) any joint venture or
      other entity in which the Company has a direct or indirect beneficial ownership
      interest representing at least one-third (1/3) of the aggregate voting power
      of
      the equity interests of such entity or one-third (1/3) of the aggregate fair
      market value of the equity interests of such entity, as determined by the
      Committee.

     

    “Award”
      means an
      award of a Stock Option, Stock Award, or Restricted Stock Award granted under
      the Plan. 

     

    “Award
      Agreement”
      means a
      written or electronic agreement entered into between the Company and a
      Participant setting forth the terms and conditions of an Award granted to a
      Participant. 

     

    “Board”
      means
      the Board of Directors of the Company. 

     

    “Code”
      means
      the Internal Revenue Code of 1986, as amended. 

     

    “Common
      Stock”
      means
      the Company’s common stock, $0.001 par value per share. 

     

    “Committee”
      means
      the Compensation Committee of the Board, or such other committee of the Board
      appointed by the Board to administer the Plan, or if no such committee exists,
      the Board. 

     

    “Company”
      means
      VOS International, Inc., a Colorado corporation. 

    

    “Consultant”means
      any
      person which is a consultant or advisor to the Company and which is a natural
      person and who provides bona fide services to the Company which are not in
      connection with the offer or sale of securities in a capital-raising transaction
      for the Company, and do not directly or indirectly promote or maintain a market
      for the Company’s securities.

    

    “Date
      of Grant”
      means
      the date on which an Award under the Plan is made by the Committee, or such
      later date as the Committee may specify to be the effective date of an Award.
      

     

    “Disability”
      means a
      Participant being considered “disabled” within the meaning of Section
      409A(a)(2)(C) of the Code, unless otherwise provided in an Award Agreement.
      

     

    “Eligible
      Person”
      means
      any person who is an employee of the Company or any Affiliate or any person
      to
      whom an offer of employment with the Company or any Affiliate is extended,
      as
      determined by the Committee, or any person who is a Non-Employee Director,
      or
      any person who is Consultant to the Company.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended. 

     

    “Fair
      Market Value”
      means
      the mean between the highest and lowest reported sales prices of the Common
      Stock on the New York Stock Exchange Composite Tape or, if not listed on such
      exchange, on any other national securities exchange on which the Company’s
      common stock is listed or on The Nasdaq Stock Market, or, if not so listed
      on
      any other national securities exchange or The Nasdaq Stock Market, then the
      average of the bid price of the Company’s common stock during the last five
      trading days on the OTC Bulletin Board immediately preceding the last trading
      day prior to the date with respect to which the Fair Market Value is to be
      determined. If the Company’s common stock is not then publicly traded, then the
      Fair Market Value of the Common Stock shall be the book value of the Company
      per
      share as determined on the last day of March, June, September, or December
      in
      any year closest to the date when the determination is to be made. For the
      purpose of determining book value hereunder, book value shall be determined
      by
      adding as of the applicable date called for herein the capital, surplus, and
      undivided profits of the Company, and after having deducted any reserves
      theretofore established; the sum of these items shall be divided by the number
      of shares of the Company’s common stock outstanding as of said date, and the
      quotient thus obtained shall represent the book value of each share of the
      Company’s common stock.

     

    “Incentive
      Stock Option”
      means a
      Stock Option granted under Section 6 hereof that is intended to meet the
      requirements of Section 422 of the Code and the regulations thereunder.

     

    “Non-Employee
      Director”
      means
      any member of the Board who is not an employee of the Company. 

     

    “Nonqualified
      Stock Option”
      means a
      Stock Option granted under Section 6 hereof that is not an Incentive Stock
      Option. 

     

    “Participant”
      means
      any Eligible Person who holds an outstanding Award under the Plan. 

     

    “Plan”
      means
      the 2005 Stock Incentive Plan of VOS International, Inc. as set forth herein,
      as
      amended from time to time. 

    

    “Restricted
      Stock Award”
      means a
      grant of shares of Common Stock to an Eligible Person under Section 8 hereof
      that are issued subject to such vesting and transfer restrictions as the
      Committee shall determine and set forth in an Award Agreement. 

     

    “Service”
      means a
      Participant’s employment with the Company or any Affiliate or a Participant’s
      service as a Non-Employee Director with the Company, as applicable.

     

    “Stock
      Award”
      means a
      grant of shares of Common Stock to an Eligible Person under Section 7 hereof
      that are issued free of transfer restrictions and forfeiture conditions.

     

    “Stock
      Option”
      means a
      contractual right granted to an Eligible Person under Section 6 hereof to
      purchase shares of Common Stock at such time and price, and subject to such
      conditions, as are set forth in the Plan and the applicable Award Agreement.
      

     

    3.
         Administration. 

     

    3.1    Committee
      Members.    The
      Plan shall be administered by a Committee comprised of one or more members
      of
      the Board, or if no such committee exists, the Board.

     

    3.2    Committee
      Authority.    The
      Committee shall have such powers and authority as may be necessary or
      appropriate for the Committee to carry out its functions as described in the
      Plan. Subject to the express limitations of the Plan, the Committee shall have
      authority in its discretion to determine the Eligible Persons to whom, and
      the
      time or times at which, Awards may be granted, the number of shares, units
      or
      other rights subject to each Award, the exercise, base or purchase price of
      an
      Award (if any), the time or times at which an Award will become vested,
      exercisable or payable, the performance goals and other conditions of an Award,
      the duration of the Award, and all other terms of the Award. Subject to the
      terms of the Plan, the Committee shall have the authority to amend the terms
      of
      an Award in any manner that is not inconsistent with the Plan, provided that
      no
      such action shall adversely affect the rights of a Participant with respect
      to
      an outstanding Award without the Participant’s consent. The Committee shall also
      have discretionary authority to interpret the Plan, to make factual
      determinations under the Plan, and to make all other determinations necessary
      or
      advisable for Plan administration, including, without limitation, to correct
      any
      defect, to supply any omission or to reconcile any inconsistency in the Plan
      or
      any Award Agreement hereunder. The Committee may prescribe, amend, and rescind
      rules and regulations relating to the Plan. The Committee’s determinations under
      the Plan need not be uniform and may be made by the Committee selectively among
      Participants and Eligible Persons, whether or not such persons are similarly
      situated. The Committee shall, in its discretion, consider such factors as
      it
      deems relevant in making its interpretations, determinations and actions under
      the Plan including, without limitation, the recommendations or advice of any
      officer or employee of the Company or such attorneys, consultants, accountants
      or other advisors as it may select. All interpretations, determinations and
      actions by the Committee shall be final, conclusive, and binding upon all
      parties. 

     

    3.3    Delegation
      of Authority.    The
      Committee shall have the right, from time to time, to delegate to one or more
      officers of the Company the authority of the Committee to grant and determine
      the terms and conditions of Awards granted under the Plan, subject to the
      requirements of state law and such other limitations as the Committee shall
      determine. In no event shall any such delegation of authority be permitted
      with
      respect to Awards to any members of the Board or to any Eligible Person who
      is
      subject to Rule 16b-3 under the Exchange Act or Section 162(m) of the Code.
      The
      Committee shall also be permitted to delegate, to any appropriate officer or
      employee of the Company, responsibility for performing certain ministerial
      functions under the Plan. In the event that the Committee’s authority is
      delegated to officers or employees in accordance with the foregoing, all
      provisions of the Plan relating to the Committee shall be interpreted in a
      manner consistent with the foregoing by treating any such reference as a
      reference to such officer or employee for such purpose. Any action undertaken
      in
      accordance with the Committee’s delegation of authority hereunder shall have the
      same force and effect as if such action was undertaken directly by the Committee
      and shall be deemed for all purposes of the Plan to have been taken by the
      Committee. 

     

    4.
         Shares Subject to the Plan. 

     

    4.1    Maximum
      Share Limitations.    Subject
      to Section 4.3 hereof, the maximum aggregate number of shares of Common Stock
      that may be issued and sold under all Awards granted under the Plan shall be
      Ten
      Million (10,000,000) shares. Shares of Common Stock issued and sold under the
      Plan may be either authorized but unissued shares or shares held in the
      Company’s treasury. To the extent that any Award involving the issuance of
      shares of Common Stock is forfeited, cancelled, returned to the Company for
      failure to satisfy vesting requirements or other conditions of the Award, or
      otherwise terminates without an issuance of shares of Common Stock being made
      thereunder, the shares of Common Stock covered thereby will no longer be counted
      against the foregoing maximum share limitations and may again be made subject
      to
      Awards under the Plan pursuant to such limitations. Any Awards or portions
      thereof that are settled in cash and not in shares of Common Stock shall not
      be
      counted against the foregoing maximum share limitations. 

     

    4.2    Adjustments.
         If
      there shall occur any change with respect to the outstanding shares of Common
      Stock by reason of any recapitalization, reclassification, stock dividend,
      extraordinary dividend, stock split, or other distribution with respect to
      the
      shares of Common Stock, or any merger, reorganization, consolidation,
      combination, spin-off or other similar corporate change, or any other change
      affecting the Common Stock, the Committee may, in the manner and to the extent
      that it deems appropriate and equitable to the Participants and consistent
      with
      the terms of the Plan, cause an adjustment to be made in (i) the maximum number
      and kind of shares provided in Section 4.1 hereof, (ii) the number and kind
      of
      shares of Common Stock, or other rights subject to then outstanding Awards,
      (iii) the exercise or base price for each share or other right subject to then
      outstanding Awards, and (iv) any other terms of an Award that are affected
      by
      the event. Notwithstanding the foregoing, in the case of Incentive Stock
      Options, any such adjustments shall, to the extent practicable, be made in
      a
      manner consistent with the requirements of Section 424(a) of the Code.

    

    4.3
      Anti-Dilution.
      Notwithstanding anything contained in the Plan to cover the contrary, including
      any adjustments discussed in this Section 4, the maximum aggregate number of
      shares of Common Stock that may be issued and sold under all Awards granted
      under the Plan shall be anti-dilutive in the event of a reverse stock split
      by
      the Company and shall not result in any reduction in the number of shares
      available and authorized under the Plan at the effective time of such reverse
      stock split(s).

    

    5.
         Participation and Awards.

     

    5.1    Designations
      of Participants.    All
      Eligible Persons are eligible to be designated by the Committee to receive
      Awards and become Participants under the Plan. The Committee has the authority,
      in its discretion, to determine and designate from time to time those Eligible
      Persons who are to be granted Awards, the types of Awards to be granted and
      the
      number of shares of Common Stock or units subject to Awards granted under the
      Plan. In selecting Eligible Persons to be Participants and in determining the
      type and amount of Awards to be granted under the Plan, the Committee shall
      consider any and all factors that it deems relevant or appropriate.

     

    5.2    Determination
      of Awards.    The
      Committee shall determine the terms and conditions of all Awards granted to
      Participants in accordance with its authority under Section 3.2 hereof. An
      Award
      may consist of one type of right or benefit hereunder or of two or more such
      rights or benefits granted in tandem or in the alternative. In the case of
      any
      fractional share or unit resulting from the grant, vesting, payment or crediting
      of dividends or dividend equivalents under an Award, the Committee shall have
      the discretionary authority to (i) disregard such fractional share or unit,
      (ii)
      round such fractional share or unit to the nearest lower or higher whole share
      or unit, or (iii) convert such fractional share or unit into a right to receive
      a cash payment. To the extent deemed necessary by the Committee, an Award shall
      be evidenced by an Award Agreement as described in Section 11.1 hereof.

     

    6.
         Stock Options. 

     

    6.1    Grant
      of Stock Options.    A
      Stock Option may be granted to any Eligible Person selected by the Committee.
      Subject to the provisions of Section 6.8 hereof and Section 422 of the Code,
      each Stock Option shall be designated, in the discretion of the Committee,
      as an
      Incentive Stock Option or as a Nonqualified Stock Option. 

     

    6.2    Exercise
      Price.    The
      exercise price per share for any Stock Option shall be determined by the
      Committee in its discretion on the Date of Grant.

    

    6.3    Vesting
      of Stock Options.    The
      Committee shall in its discretion prescribe the time or times at which, or
      the
      conditions upon which, a Stock Option or portion thereof shall become vested
      and/or exercisable, and may accelerate the vesting or exercisability of any
      Stock Option at any time, provided, however, that any Stock Option shall vest
      at
      the rate of at least twenty percent (20%) per year over five (5) years from
      the
      date the Stock Option is granted, subject to reasonable conditions as may be
      provided for in the Award Agreement. However, in the case of a Stock Option
      granted to officers, Non-employee Directors, managers or Consultants of the
      Company, the Stock Option may become fully exercisable, subject to reasonable
      conditions, at anytime or during any period established by the Company. The
      requirements for vesting and exercisability of a Stock Option may be based
      on
      the continued Service of the Participant with the Company or its Affiliates
      for
      a specified time period (or periods) or on the attainment of specified
      performance goals established by the Committee in its discretion. 

     

    6.4    Term
      of Stock Options.    The
      Committee shall in its discretion prescribe in an Award Agreement the period
      during which a vested Stock Option may be exercised, provided that the maximum
      term of a Stock Option shall be ten years from the Date of Grant. Except as
      otherwise provided in this Section 6 or as otherwise may be provided by the
      Committee, no Stock Option issued to an employee or a Non-Employee Director
      of
      the Company may be exercised at any time during the term thereof unless the
      employee or a Non-Employee Director Participant is then in the Service of the
      Company or one of its Affiliates. 

     

    6.5    Termination
      of Service.    Subject
      to Section 6.8 hereof with respect to Incentive Stock Options, the Stock Option
      of any Participant whose Service with the Company or one of its Affiliates
      is
      terminated for any reason shall terminate on the earlier of (A) the date that
      the Stock Option expires in accordance with its terms or (B) unless otherwise
      provided in an Award Agreement, and except for termination for cause (as
      described in Section 10.2 hereof), the expiration of the applicable time period
      following termination of Service, in accordance with the following: (1) twelve
      months if Service ceased due to Disability, (2) eighteen months if Service
      ceased at a time when the Participant is eligible to elect immediate
      commencement of retirement benefits at a specified retirement age under a
      pension plan to which the Company or any of its Affiliates had made
      contributions, (3) eighteen months if the Participant died while in the Service
      of the Company or any of its Affiliates, or (iv) three months if Service ceased
      for any other reason. During the foregoing applicable period, except as
      otherwise specified in the Award Agreement or in the event Service was
      terminated by the death of the Participant, the Stock Option may be exercised
      by
      such Participant in respect of the same number of shares of Common Stock, in
      the
      same manner, and to the same extent as if he or she had remained in the
      continued Service of the Company or any Affiliate during the first three months
      of such period; provided that no additional rights shall vest after such three
      months. The Committee shall have authority to determine in each case whether
      an
      authorized leave of absence shall be deemed a termination of Service for
      purposes hereof, as well as the effect of a leave of absence on the vesting
      and
      exercisability of a Stock Option. Unless otherwise provided by the Committee,
      if
      an entity ceases to be an Affiliate of the Company or otherwise ceases to be
      qualified under the Plan or if all or substantially all of the assets of an
      Affiliate of the Company are conveyed (other than by encumbrance), such
      cessation or action, as the case may be, shall be deemed for purposes hereof
      to
      be a termination of the Service. 

     

    6.6    Stock
      Option Exercise; Tax Withholding.    Subject
      to such terms and conditions as shall be specified in an Award Agreement, a
      Stock Option may be exercised in whole or in part at any time during the term
      thereof by notice in the form required by the Company, together with payment
      of
      the aggregate exercise price therefor and applicable withholding tax. Payment
      of
      the exercise price shall be made in the manner set forth in the Award Agreement,
      unless otherwise provided by the Committee: (i) in cash or by cash equivalent
      acceptable to the Committee, (ii) by payment in shares of Common Stock that
      have
      been held by the Participant for at least six months (or such period as the
      Committee may deem appropriate, for accounting purposes or otherwise) valued
      at
      the Fair Market Value of such shares on the date of exercise, (iii) through
      an
      open-market, broker-assisted sales transaction pursuant to which the Company
      is
      promptly delivered the amount of proceeds necessary to satisfy the exercise
      price, (iv) by a combination of the methods described above or (v) by such
      other
      method as may be approved by the Committee and set forth in the Award Agreement.
      In addition to and at the time of payment of the exercise price, the Participant
      shall pay to the Company the full amount of any and all applicable income tax,
      employment tax and other amounts required to be withheld in connection with
      such
      exercise, payable under such of the methods described above for the payment
      of
      the exercise price as may be approved by the Committee and set forth in the
      Award Agreement.

     

    6.7    Limited
      Transferability of Nonqualified Stock Options.    All
      Stock Options shall be nontransferable except (i) upon the Participant’s death,
      in accordance with Section 11.2 hereof or (ii) in the case of Nonqualified
      Stock
      Options only, for the transfer of all or part of the Stock Option to a
      Participant’s “family member” (as defined for purposes of the Form S-8
      registration statement under the Securities Act of 1933), as may be approved
      by
      the Committee in its discretion at the time of proposed transfer. The transfer
      of a Nonqualified Stock Option may be subject to such terms and conditions
      as
      the Committee may in its discretion impose from time to time. Subsequent
      transfers of a Nonqualified Stock Option shall be prohibited other than in
      accordance with Section 11.2 hereof. 

     

    6.8    Additional
      Rules for Incentive Stock Options. 

     

    (a)    Eligibility.
         An
      Incentive Stock Option may only be granted to an Eligible Person who is
      considered an employee for purposes of Treasury Regulation §1.421-7(h) with
      respect to the Company or any Affiliate that qualifies as a “subsidiary
      corporation” with respect to the Company for purposes of Section 424(f) of the
      Code. 

     

    (b)     Termination
      of Employment.    An
      Award of an Incentive Stock Option may provide that such Stock Option may be
      exercised not later than 3 months following termination of employment of the
      Participant with the Company and all Subsidiaries, or not later than one year
      following a permanent and total disability within the meaning of Section
      22(e)(3) of the Code, as and to the extent determined by the Committee to comply
      with the requirements of Section 422 of the Code. 

     

    (c)    Other
      Terms and Conditions; Nontransferability.    Any
      Incentive Stock Option granted hereunder shall contain such additional terms
      and
      conditions, not inconsistent with the terms of the Plan, as are deemed necessary
      or desirable by the Committee, which terms, together with the terms of the
      Plan,
      shall be intended and interpreted to cause such Incentive Stock Option to
      qualify as an “incentive stock option” under Section 422 of the Code. An Award
      Agreement for an Incentive Stock Option may provide that such Stock Option
      shall
      be treated as a Nonqualified Stock Option to the extent that certain
      requirements applicable to “incentive stock options” under the Code shall not be
      satisfied. An Incentive Stock Option shall by its terms be nontransferable
      other
      than by will or by the laws of descent and distribution, and shall be
      exercisable during the lifetime of a Participant only by such Participant.
      

     

    (d)    Disqualifying
      Dispositions.    If
      shares of Common Stock acquired by exercise of an Incentive Stock Option are
      disposed of within two years following the Date of Grant or one year following
      the transfer of such shares to the Participant upon exercise, the Participant
      shall, promptly following such disposition, notify the Company in writing of
      the
      date and terms of such disposition and provide such other information regarding
      the disposition as the Company may reasonably require. 

     

    6.9    Repricing
      Prohibited.    Subject
      to the adjustment provisions contained in Section 4.2 hereof, without the prior
      approval of the Company’s stockholders, evidenced by a majority of votes cast,
      neither the Committee nor the Board shall cause the cancellation, substitution
      or amendment of a Stock Option that would have the effect of reducing the
      exercise price of such a Stock Option previously granted under the Plan, or
      otherwise approve any modification to such a Stock Option that would be treated
      as a “repricing” under the then applicable rules, regulations or listing
      requirements. 

     

    7.
         Stock Awards. 

     

    7.1    Grant
      of Stock Awards.    A
      Stock Award may be granted to any Eligible Person selected by the Committee.
      A
      Stock Award may be granted for past services, in lieu of bonus or other cash
      compensation, as directors’ compensation or for any other valid purpose as
      determined by the Committee. A Stock Award granted to an Eligible Person
      represents shares of Common Stock that are issued without restrictions on
      transfer and other incidents of ownership and free of forfeiture conditions,
      except as otherwise provided in the Plan and the Award Agreement. The Committee
      may, in connection with any Stock Award, require the payment of a specified
      purchase price. 

     

    7.2    Rights
      as Stockholder.    Subject
      to the foregoing provisions of this Section 10 and the applicable Award
      Agreement, upon the issuance of the Common Stock under a Stock Award the
      Participant shall have all rights of a stockholder with respect to the shares
      of
      Common Stock, including the right to vote the shares and receive all dividends
      and other distributions paid or made with respect thereto. 

    

    8.    Restricted
      Stock Awards. 

     

    8.1    Grant
      of Restricted Stock Awards.    A
      Restricted Stock Award may be granted to any Eligible Person selected by the
      Committee. The Committee may require the payment by the Participant of a
      specified purchase price in connection with any Restricted Stock Award.

     

    8.2    Vesting
      Requirements.    The
      restrictions imposed on shares granted under a Restricted Stock Award shall
      lapse in accordance with the vesting requirements specified by the Committee
      in
      the Award Agreement, provided that the Committee may accelerate the vesting
      of a
      Restricted Stock Award at any time. Such vesting requirements may be based
      on
      the continued Service of the Participant with the Company or its Affiliates
      for
      a specified time period (or periods) or on the attainment of specified
      performance goals established by the Committee in its discretion. If the vesting
      requirements of a Restricted Stock Award shall not be satisfied, the Award
      shall
      be forfeited and the shares of Common Stock subject to the Award shall be
      returned to the Company. 

     

    8.3    Restrictions.    Shares
      granted under any Restricted Stock Award may not be transferred, assigned or
      subject to any encumbrance, pledge, or charge until all applicable restrictions
      are removed or have expired, unless otherwise allowed by the Committee. Failure
      to satisfy any applicable restrictions shall result in the subject shares of
      the
      Restricted Stock Award being forfeited and returned to the Company. The
      Committee may require in an Award Agreement that certificates representing
      the
      shares granted under a Restricted Stock Award bear a legend making appropriate
      reference to the restrictions imposed, and that certificates representing the
      shares granted or sold under a Restricted Stock Award will remain in the
      physical custody of an escrow holder until all restrictions are removed or
      have
      expired. 

     

    8.4    Rights
      as Stockholder.    Subject
      to the foregoing provisions of this Section 8 and the applicable Award
      Agreement, the Participant shall have all rights of a stockholder with respect
      to the shares granted to the Participant under a Restricted Stock Award,
      including the right to vote the shares and receive all dividends and other
      distributions paid or made with respect thereto. The Committee may provide
      in an
      Award Agreement for the payment of dividends and distributions to the
      Participant at such times as paid to stockholders generally or at the times
      of
      vesting or other payment of the Restricted Stock Award. 

     

    8.5    Section
      83(b) Election.    If
      a Participant makes an election pursuant to Section 83(b) of the Code with
      respect to a Restricted Stock Award, the Participant shall file, within 30
      days
      following the Date of Grant, a copy of such election with the Company and with
      the Internal Revenue Service, in accordance with the regulations under Section
      83 of the Code. The Committee may provide in an Award Agreement that the
      Restricted Stock Award is conditioned upon the Participant’s making or
      refraining from making an election with respect to the Award under Section
      83(b)
      of the Code. 

     

    9.
         Change in Control. 

     

    9.1    Effect
      of Change in Control.    Except
      to the extent an Award Agreement provides for a different result (in which
      case
      the Award Agreement will govern and this Section 9 of the Plan shall not be
      applicable), notwithstanding anything elsewhere in the Plan or any rules adopted
      by the Committee pursuant to the Plan to the contrary, if a Triggering Event
      shall occur within the 12-month period beginning with a Change in Control of
      the
      Company, then, effective immediately prior to such Triggering Event, each
      outstanding Stock Option, to the extent that it shall not otherwise have become
      vested and exercisable, shall automatically become fully and immediately vested
      and exercisable, without regard to any otherwise applicable vesting requirement.
      

     

    9.2    Definitions 

     

    (a)    Cause.
         For
      purposes of this Section 9, the term “Cause” shall mean a determination by the
      Committee that a Participant (i) has been convicted of, or entered a plea of
      nolo contendere to, a crime that constitutes a felony under Federal or state
      law, (ii) has engaged in willful gross misconduct in the performance of the
      Participant’s duties to the Company or an Affiliate or (iii) has committed a
      material breach of any written agreement with the Company or any Affiliate
      with
      respect to confidentiality, non-competition, non-solicitation or similar
      restrictive covenant. Subject to the first sentence of Section 9.1 hereof,
      in
      the event that a Participant is a party to an employment agreement with the
      Company or any Affiliate that defines a termination on account of “Cause” (or a
      term having similar meaning), such definition shall apply as the definition
      of a
      termination on account of “Cause” for purposes hereof, but only to the extent
      that such definition provides the Participant with greater rights. A termination
      on account of Cause shall be communicated by written notice to the Participant,
      and shall be deemed to occur on the date such notice is delivered to the
      Participant. 

     

    (b)    Change
      in Control.    For
      purposes of this Section 9, a “Change in Control” shall be deemed to have
      occurred upon: 

     

    (i)
      the
      occurrence of an acquisition by any individual, entity or group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of
      beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
      Exchange Act) of a percentage of the combined voting power of the then
      outstanding voting securities of the Company entitled to vote generally in
      the
      election of directors (the “Company Voting Securities”) (but excluding (1) any
      acquisition directly from the Company (other than an acquisition by virtue
      of
      the exercise of a conversion privilege of a security that was not acquired
      directly from the Company), (2) any acquisition by the Company or an Affiliate
      and (3) any acquisition by an employee benefit plan (or related trust) sponsored
      or maintained by the Company or any Affiliate) (an “Acquisition”) that is thirty
      percent (30%) or more of the Company Voting Securities; 

     

    (ii)
      at
      any time during a period of two (2) consecutive years or less, individuals
      who
      at the beginning of such period constitute the Board (and any new directors
      whose election by the Board or nomination for election by the Company’s
      stockholders was approved by a vote of at least two-thirds (2/3) of the
      directors then still in office who either were directors at the beginning of
      the
      period or whose election or nomination for election was so approved) cease
      for
      any reason (except for death, Disability or voluntary retirement) to constitute
      a majority thereof;

     

    (iii)
      an
      Acquisition that is fifty percent (50%) or more of the Company Voting
      Securities; 

     

    (iv)
      the
      consummation of a merger, consolidation, reorganization or similar corporate
      transaction, whether or not the Company is the surviving company in such
      transaction, other than a merger, consolidation, or reorganization that would
      result in the Persons who are beneficial owners of the Company Voting Securities
      outstanding immediately prior thereto continuing to beneficially own, directly
      or indirectly, in substantially the same proportions, at least fifty percent
      (50%) of the combined voting power of the Company Voting Securities (or the
      voting securities of the surviving entity) outstanding immediately after such
      merger, consolidation or reorganization; 

     

    (v)
      the
      sale or other disposition of all or substantially all of the assets of the
      Company; 

     

    (vi)
      the
      approval by the stockholders of the Company of a complete liquidation or
      dissolution of the Company; or 

     

    (vii)
      the
      occurrence of any transaction or event, or series of transactions or events,
      designated by the Board in a duly adopted resolution as representing a change
      in
      the effective control of the business and affairs of the Company, effective
      as
      of the date specified in any such resolution. 

     

    (c)    Constructive
      Termination.    For
      purposes of this Section 9, a “Constructive Termination” shall mean a
      termination of employment by a Participant within sixty (60) days following
      the
      occurrence of any one or more of the following events without the Participant’s
      written consent (i) any reduction in position, title (for Vice Presidents or
      above), overall responsibilities, level of authority, level of reporting (for
      Vice Presidents or above), base compensation, annual incentive compensation
      opportunity, aggregate employee benefits or (ii) a request that the
      Participant’s location of employment be relocated by more than fifty (50) miles.
      Subject to the first sentence of Section 9.1 hereof, in the event that a
      Participant is a party to an employment agreement with the Company or any
      Affiliate (or a successor entity) that defines a termination on account of
      “Constructive Termination,”“Good Reason” or “Breach of Agreement” (or a term
      having a similar meaning), such definition shall apply as the definition of
      “Constructive Termination” for purposes hereof in lieu of the foregoing, but
      only to the extent that such definition provides the Participant with greater
      rights. A Constructive Termination shall be communicated by written notice
      to
      the Committee, and shall be deemed to occur on the date such notice is delivered
      to the Committee, unless the circumstances giving rise to the Constructive
      Termination are cured within five (5) days of such notice. 

     

    (d)    Triggering
      Event.    For
      purposes of this Section 9, a “Triggering Event” shall mean (i) the termination
      of Service of a Participant by the Company or an Affiliate (or any successor
      thereof) other than on account of death, Disability or Cause, (ii) the
      occurrence of a Constructive Termination or (iii) any failure by the Company
      (or
      a successor entity) to assume, replace, convert or otherwise continue any Award
      in connection with the Change in Control (or another corporate transaction
      or
      other change effecting the Common Stock) on the same terms and conditions as
      applied immediately prior to such transaction, except for equitable adjustments
      to reflect changes in the Common Stock pursuant to Section 4.2 hereof.

     

    9.3    Excise
      Tax Limit.    In
      the event that the vesting of Awards together with all other payments and the
      value of any benefit received or to be received by a Participant would result
      in
      all or a portion of such payment being subject to the excise tax under Section
      4999 of the Code, then the Participant’s payment shall be either (i) the full
      payment or (ii) such lesser amount that would result in no portion of the
      payment being subject to excise tax under Section 4999 of the Code (the “Excise
      Tax”), whichever of the foregoing amounts, taking into account the applicable
      Federal, state, and local employment taxes, income taxes, and the Excise Tax,
      results in the receipt by the Participant, on an after-tax basis, of the
      greatest amount of the payment notwithstanding that all or some portion of
      the
      payment may be taxable under Section 4999 of the Code. All determinations
      required to be made under this Section 9 shall be made by Malone & Bailey,
      PLLC or any other accounting firm which is the Company’s outside auditor
      immediately prior to the event triggering the payments that are subject to
      the
      Excise Tax (the “Accounting Firm”). The Company shall cause the Accounting Firm
      to provide detailed supporting calculations of its determinations to the Company
      and the Participant. All fees and expenses of the Accounting Firm shall be
      borne
      solely by the Company. The Accounting Firm’s determinations must be made with
      substantial authority (within the meaning of Section 6662 of the Code). For
      the
      purposes of all calculations under Section 280G of the Code and the application
      of this Section 9.3, all determinations as to present value shall be made using
      120 percent of the applicable Federal rate (determined under Section 1274(d)
      of
      the Code) compounded semiannually, as in effect on December 30, 2004.

     

    10.
         Forfeiture Events. 

     

    10.1    General.
         The
      Committee may specify in an Award Agreement at the time of the Award that the
      Participant’s rights, payments and benefits with respect to an Award shall be
      subject to reduction, cancellation, forfeiture or recoupment upon the occurrence
      of certain specified events, in addition to any otherwise applicable vesting
      or
      performance conditions of an Award. Such events shall include, but shall not
      be
      limited to, termination of Service for cause, violation of material Company
      policies, breach of non-competition, confidentiality or other restrictive
      covenants that may apply to the Participant, or other conduct by the Participant
      that is detrimental to the business or reputation of the Company. 

     

    10.2    Termination
      for Cause.    Unless
      otherwise provided by the Committee and set forth in an Award Agreement, if
      a
      Participant’s employment with the Company or any Affiliate shall be terminated
      for cause, the Company may, in its sole discretion, immediately terminate such
      Participant’s right to any further payments, vesting or exercisability with
      respect to any Award in its entirety. In the event a Participant is party to
      an
      employment (or similar) agreement with the Company or any Affiliate that defines
      the term “cause,” such definition shall apply for purposes of the Plan. The
      Company shall have the power to determine whether the Participant has been
      terminated for cause and the date upon which such termination for cause occurs.
      Any such determination shall be final, conclusive and binding upon the
      Participant. In addition, if the Company shall reasonably determine that a
      Participant has committed or may have committed any act which could constitute
      the basis for a termination of such Participant’s employment for cause, the
      Company may suspend the Participant’s rights to exercise any option, receive any
      payment or vest in any right with respect to any Award pending a determination
      by the Company of whether an act has been committed which could constitute
      the
      basis for a termination for “cause” as provided in this Section 10.2.

     

    11.
         General Provisions. 

     

    11.1    Award
      Agreement.    To
      the extent deemed necessary by the Committee, an Award under the Plan shall
      be
      evidenced by an Award Agreement in a written or electronic form approved by
      the
      Committee setting forth the number of shares of Common Stock or units subject
      to
      the Award, the exercise price, base price, or purchase price of the Award,
      the
      time or times at which an Award will become vested, exercisable or payable
      and
      the term of the Award. The Award Agreement may also set forth the effect on
      an
      Award of termination of Service under certain circumstances. The Award Agreement
      shall be subject to and incorporate, by reference or otherwise, all of the
      applicable terms and conditions of the Plan, and may also set forth other terms
      and conditions applicable to the Award as determined by the Committee consistent
      with the limitations of the Plan. Award Agreements evidencing Incentive Stock
      Options shall contain such terms and conditions as may be necessary to meet
      the
      applicable provisions of Section 422 of the Code. The grant of an Award under
      the Plan shall not confer any rights upon the Participant holding such Award
      other than such terms, and subject to such conditions, as are specified in
      the
      Plan as being applicable to such type of Award (or to all Awards) or as are
      expressly set forth in the Award Agreement. The Committee need not require
      the
      execution of an Award Agreement by a Participant, in which case, acceptance
      of
      the Award by the Participant shall constitute agreement by the Participant
      to
      the terms, conditions, restrictions and limitations set forth in the Plan and
      the Award Agreement as well as the administrative guidelines of the Company
      in
      effect from time to time. 

     

    11.2    No
      Assignment or Transfer; Beneficiaries.    Except
      as provided in Section 6.7 hereof, Awards under the Plan shall not be assignable
      or transferable by the Participant, except by will or by the laws of descent
      and
      distribution, and shall not be subject in any manner to assignment, alienation,
      pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee
      may
      provide in the terms of an Award Agreement that the Participant shall have
      the
      right to designate a beneficiary or beneficiaries who shall be entitled to
      any
      rights, payments or other benefits specified under an Award following the
      Participant’s death. During the lifetime of a Participant, an Award shall be
      exercised only by such Participant or such Participant’s guardian or legal
      representative. In the event of a Participant’s death, an Award may to the
      extent permitted by the Award Agreement be exercised by the Participant’s
      beneficiary as designated by the Participant in the manner prescribed by the
      Committee or, in the absence of an authorized beneficiary designation, by the
      legatee of such Award under the Participant’s will or by the Participant’s
      estate in accordance with the Participant’s will or the laws of descent and
      distribution, in each case in the same manner and to the same extent that such
      Award was exercisable by the Participant on the date of the Participant’s death.

     

    11.3    Deferrals
      of Payment.    The
      Committee may in its discretion permit a Participant to defer the receipt of
      payment of cash or delivery of shares of Common Stock that would otherwise
      be
      due to the Participant by virtue of the exercise of a right or the satisfaction
      of vesting or other conditions with respect to an Award. If any such deferral
      is
      to be permitted by the Committee, the Committee shall establish rules and
      procedures relating to such deferral in a manner intended to comply with the
      requirements of Section 409A of the Code, including, without limitation, the
      time when an election to defer may be made, the time period of the deferral
      and
      the events that would result in payment of the deferred amount, the interest
      or
      other earnings attributable to the deferral and the method of funding, if any,
      attributable to the deferred amount. 

     

    11.4    Rights
      as Stockholder.    A
      Participant shall have no rights as a holder of shares of Common Stock with
      respect to any unissued securities covered by an Award until the date the
      Participant becomes the holder of record of such securities. Except as provided
      in Section 4.2 hereof, no adjustment or other provision shall be made for
      dividends or other stockholder rights, except to the extent that the Award
      Agreement provides for dividend payments or dividend equivalent rights.

     

    11.5    Employment
      or Service.    Nothing
      in the Plan, in the grant of any Award or in any Award Agreement shall confer
      upon any Eligible Person any right to continue in the Service of the Company
      or
      any of its Affiliates, or interfere in any way with the right of the Company
      or
      any of its Affiliates to terminate the Participant’s employment or other service
      relationship for any reason at any time. 

     

    11.6    Securities
      Laws.    No
      shares of Common Stock will be issued or transferred pursuant to an Award unless
      and until all then applicable requirements imposed by Federal and state
      securities and other laws, rules and regulations and by any regulatory agencies
      having jurisdiction, and by any exchanges upon which the shares of Common Stock
      may be listed, have been fully met. As a condition precedent to the issuance
      of
      shares pursuant to the grant or exercise of an Award, the Company may require
      the Participant to take any reasonable action to meet such requirements. The
      Committee may impose such conditions on any shares of Common Stock issuable
      under the Plan as it may deem advisable, including, without limitation,
      restrictions under the Securities Act of 1933, as amended, under the
      requirements of any exchange upon which such shares of the same class are then
      listed, and under any blue sky or other securities laws applicable to such
      shares. The Committee may also require the Participant to represent and warrant
      at the time of issuance or transfer that the shares of Common Stock are being
      acquired only for investment purposes and without any current intention to
      sell
      or distribute such shares. 

     

    11.7    Tax
      Withholding.    The
      Participant shall be responsible for payment of any taxes or similar charges
      required by law to be withheld from an Award or an amount paid in satisfaction
      of an Award, which shall be paid by the Participant on or prior to the payment
      or other event that results in taxable income in respect of an Award. The Award
      Agreement may specify the manner in which the withholding obligation shall
      be
      satisfied with respect to the particular type of Award. 

     

    11.8    Unfunded
      Plan.    The
      adoption of the Plan and any reservation of shares of Common Stock or cash
      amounts by the Company to discharge its obligations hereunder shall not be
      deemed to create a trust or other funded arrangement. Except upon the issuance
      of Common Stock pursuant to an Award, any rights of a Participant under the
      Plan
      shall be those of a general unsecured creditor of the Company, and neither
      a
      Participant nor the Participant’s permitted transferees or estate shall have any
      other interest in any assets of the Company by virtue of the Plan.
      Notwithstanding the foregoing, the Company shall have the right to implement
      or
      set aside funds in a grantor trust, subject to the claims of the Company’s
      creditors or otherwise, to discharge its obligations under the Plan.

     

    11.9    Other
      Compensation and Benefit Plans.    The
      adoption of the Plan shall not affect any other share incentive or other
      compensation plans in effect for the Company or any Affiliate, nor shall the
      Plan preclude the Company from establishing any other forms of share incentive
      or other compensation or benefit program for employees of the Company or any
      Affiliate. The amount of any compensation deemed to be received by a Participant
      pursuant to an Award shall not constitute includable compensation for purposes
      of determining the amount of benefits to which a Participant is entitled under
      any other compensation or benefit plan or program of the Company or an
      Affiliate, including, without limitation, under any pension or severance
      benefits plan, except to the extent specifically provided by the terms of any
      such plan. 

     

    11.10    Plan
      Binding on Transferees.    The
      Plan shall be binding upon the Company, its transferees and assigns, and the
      Participant, the Participant’s executor, administrator and permitted transferees
      and beneficiaries. 

     

    11.11    Severability.
         If
      any provision of the Plan or any Award Agreement shall be determined to be
      illegal or unenforceable by any court of law in any jurisdiction, the remaining
      provisions hereof and thereof shall be severable and enforceable in accordance
      with their terms, and all provisions shall remain enforceable in any other
      jurisdiction. 

     

    11.12    Foreign
      Jurisdictions.    The
      Committee may adopt, amend and terminate such arrangements and grant such
      Awards, not inconsistent with the intent of the Plan, as it may deem necessary
      or desirable to comply with any tax, securities, regulatory or other laws of
      other jurisdictions with respect to Awards that may be subject to such laws.
      The
      terms and conditions of such Awards may vary from the terms and conditions
      that
      would otherwise be required by the Plan solely to the extent the Committee
      deems
      necessary for such purpose. Moreover, the Board may approve such supplements
      to
      or amendments, restatements or alternative versions of the Plan, not
      inconsistent with the intent of the Plan, as it may consider necessary or
      appropriate for such purposes, without thereby affecting the terms of the Plan
      as in effect for any other purpose. 

     

    11.13    Substitute
      Awards in Corporate Transactions.    Nothing
      contained in the Plan shall be construed to limit the right of the Committee
      to
      grant Awards under the Plan in connection with the acquisition, whether by
      purchase, merger, consolidation or other corporate transaction, of the business
      or assets of any corporation or other entity. Without limiting the foregoing,
      the Committee may grant Awards under the Plan to an employee or director of
      another corporation who becomes an Eligible Person by reason of any such
      corporate transaction in substitution for awards previously granted by such
      corporation or entity to such person. The terms and conditions of the substitute
      Awards may vary from the terms and conditions that would otherwise be required
      by the Plan solely to the extent the Committee deems necessary for such purpose.
      

     

    11.14
      Governing Law. The
      Plan
      and all rights hereunder shall be subject to and interpreted in accordance
      with
      the laws of the State of Colorado, without reference to the principles of
      conflicts of laws, and to applicable Federal securities laws. 

    

    11.15
      Performance Based Awards.    For
      purposes of Stock Awards and Restricted Stock Awards granted under the Plan
      that
      are intended to qualify as “performance-based” compensation under Section 162(m)
      of the Code, such Awards shall be granted to the extent necessary to satisfy
      the
      requirements of Section 162(m) of the Code. 

    

    12.
         Effective Date; Amendment and Termination.

     

    12.1    Effective
      Date.    The
      Plan shall become effective following its adoption by the Board. The term of
      the
      Plan shall be ten (10) years from the date of adoption by the Board, subject
      to
      Section 12.3 hereof. 

     

    12.2    Amendment.
         
      The Board may at any time and from time to time and in any respect, amend or
      modify the Plan. The Board may seek the approval of any amendment or
      modification by the Company’s stockholders to the extent it deems necessary or
      advisable in its discretion for purposes of compliance with Section 162(m)
      or
      Section 422 of the Code, or exchange or securities market or for any other
      purpose. No amendment or modification of the Plan shall adversely affect any
      Award theretofore granted without the consent of the Participant or the
      permitted transferee of the Award. 

     

    12.3    Termination.
         The
      Plan shall terminate on the tenth anniversary of the date of its adoption by
      the
      Board. The Board may, in its discretion and at any earlier date, terminate
      the
      Plan. Notwithstanding the foregoing, no termination of the Plan shall adversely
      affect any Award theretofore granted without the consent of the Participant
      or
      the permitted transferee of the Award.

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