Document:

PGE DRAFT
                                                                        01/31/05

                          AMERICAN PALLET LEASING, INC.
                            2005 STOCK INCENTIVE PLAN

1.    PURPOSE OF PLAN.

      The purpose of the American Pallet Leasing, Inc. 2005 Stock Incentive Plan
(the "Plan") is to advance the interests of American Pallet  Leasing,  Inc. (the
"Company") and its  stockholders by enabling the Company and its Subsidiaries to
attract  and  retain  qualified  individuals  through  opportunities  for equity
participation in the Company,  and to reward those individuals who contribute to
the Company's achievement of its economic objectives.

2.    DEFINITIONS.

      The  following  terms will have the meanings  set forth below,  unless the
context clearly otherwise requires:

      2.1   "BOARD" means the Company's Board of Directors.

      2.2   "BROKER  EXERCISE NOTICE" means a written notice pursuant to which a
Participant,  upon  exercise  of an Option,  irrevocably  instructs  a broker or
dealer to sell a  sufficient  number of  shares or loan a  sufficient  amount of
money to pay all or a portion of the  exercise  price of the  Option  and/or any
related  withholding  tax  obligations  and remit such sums to the  Company  and
directs  the  Company  to  deliver  stock  certificates  to be issued  upon such
exercise directly to such broker or dealer or their nominee.

      2.3   "CAUSE" means (i) dishonesty, fraud, misrepresentation, embezzlement
or deliberate injury or attempted injury, in each case related to the Company or
any  Subsidiary,  (ii) any  unlawful or criminal  activity of a serious  nature,
(iii)  any  intentional  and  deliberate  breach  of  a  duty  or  duties  that,
individually or in the aggregate,  are material in relation to the Participant's
overall duties,  (iv) any material breach of any  confidentiality  or noncompete
agreement  entered into with the Company or any Subsidiary,  or (v) with respect
to a particular Participant,  any other act or omission that constitutes "cause"
as may be defined in any  employment,  consulting or similar  agreement  between
such Participant and the Company or any Subsidiary.

      2.4   "CHANGE IN CONTROL" means an event  described in Section 11.1 of the
Plan.

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

      2.6   "COMMITTEE"  means the group of individuals  administering the Plan,
as provided in Section 3 of the Plan.

      2.7   "COMMON  STOCK"  means the common  stock of the  Company,  par value
$0.001 per share, or the number and kind of shares of stock or other  securities
into which such Common  Stock may be changed in  accordance  with Section 4.3 of
the Plan.

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      2.8   "DISABILITY"  means the disability of the Participant  such as would
entitle the Participant to receive  disability  income benefits  pursuant to the
long-term  disability  plan of the  Company  or  Subsidiary  then  covering  the
Participant or, if no such plan exists or is applicable to the Participant,  the
permanent and total disability of the Participant  within the meaning of Section
22(e)(3) of the Code.

      2.9   "EFFECTIVE  DATE"  means  January 31, 2005 or such later date as the
Plan is initially approved by the Company's stockholders.

      2.10  "ELIGIBLE RECIPIENTS" means all employees, officers and directors of
the Company or any  Subsidiary,  and any consultants and advisors who provide to
the Company or any  Subsidiary  bona fide services  otherwise than in connection
with the offer or sale of securities in any capital raising transaction.

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

      2.12  "FAIR MARKET VALUE" means,  with respect to the Common Stock,  as of
any date:  (i) the mean  between  the  reported  high and low sale prices of the
Common  Stock at the end of the regular  trading  session if the Common Stock is
listed,  admitted to unlisted  trading  privileges,  or reported on any national
securities  exchange  or on the Nasdaq  National  Market on such date (or, if no
shares were traded on such day, as of the next  preceding day on which there was
such a  trade);  or (ii) if the  Common  Stock  is not so  listed,  admitted  to
unlisted  trading  privileges,  or reported on any  national  exchange or on the
Nasdaq National Market,  the closing bid price as of such date at the end of the
regular trading session, as reported by the Nasdaq SmallCap Market, OTC Bulletin
Board, the National Quotation  Bureaus,  Inc., or other comparable  service;  or
(iii) if the  Common  Stock is not so  listed  or  reported,  such  price as the
Committee determines in good faith in the exercise of its reasonable discretion.

      2.13  "INCENTIVE  AWARD"  means  an  Option,  Restricted  Stock  Award  or
Performance Stock Award granted to an Eligible Recipient pursuant to the Plan.

      2.14  "INCENTIVE  STOCK  OPTION"  means a right to purchase  Common  Stock
granted  to an  Eligible  Recipient  pursuant  to  Section  6 of the  Plan  that
qualifies as an "incentive  stock  option"  within the meaning of Section 422 of
the Code.

      2.15  "NON-STATUTORY  STOCK OPTION" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Section 6 of the Plan that does not
qualify as an Incentive Stock Option.

      2.16  "OPTION" means an Incentive  Stock Option or a  Non-Statutory  Stock
Option.

      2.17  "PARTICIPANT"  means an Eligible  Recipient who receives one or more
Incentive Awards under the Plan.

      2.18  "PERFORMANCE  CRITERIA" means the  performance  criteria that may be
used by the  Committee  in granting  Performance  Stock Awards  contingent  upon
achievement of such performance goals as the Committee may determine in its sole
discretion.  The  Committee  may

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select one  criterion or multiple  criteria for measuring  performance,  and the
measurement may be based upon Company,  Subsidiary or business unit performance,
or the individual  performance of the Eligible Recipient,  either absolute or by
relative  comparison to other companies,  other Eligible Recipients or any other
external measure of the selected criteria.

      2.19  "PERFORMANCE STOCK AWARDS" means an award of Common Stock granted to
an Eligible Recipient pursuant to Section 8 of the Plan and which may be subject
to the future achievement of Performance  Criteria or be free of any performance
or vesting conditions.

      2.20  "PREVIOUSLY  ACQUIRED  SHARES" means shares of Common Stock that are
already owned by the Participant or, with respect to any Incentive  Award,  that
are to be issued upon the grant, exercise or vesting of such Incentive Award.

      2.21  "RESTRICTED  STOCK AWARD" means an award of Common Stock  granted to
an Eligible  Recipient  pursuant to Section 7 of the Plan that is subject to the
restrictions  on  transferability  and the  risk of  forfeiture  imposed  by the
provisions of such Section 7.

      2.22  "RETIREMENT"   means  normal  or  approved   early   termination  of
employment  or  service   pursuant  to  and  in  accordance   with  the  regular
retirement/pension  plan or practice of the Company or Subsidiary  then covering
the  Participant,  provided that if the  Participant  is not covered by any such
plan or practice,  the Participant will be deemed to be covered by the Company's
plan or practice for purposes of this determination.

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

      2.24  "SUBSIDIARY"  means  any  entity  that  is  directly  or  indirectly
controlled  by the Company or any entity in which the Company has a  significant
equity interest, as determined by the Committee.

3.    PLAN ADMINISTRATION.

      3.1   THE COMMITTEE.  The Plan will be  administered  by the Board or by a
committee  of the  Board.  So long as the  Company  has a  class  of its  equity
securities  registered  under  Section 12 of the  Exchange  Act,  any  committee
administering  the Plan will consist  solely of two or more members of the Board
who are  "non-employee  directors"  within the  meaning of Rule 16b-3  under the
Exchange Act. Such a committee, if established, will act by majority approval of
the members (unanimous approval with respect to action by written consent),  and
a majority of the members of such a committee will constitute a quorum.  As used
in the Plan,  "Committee"  will  refer to the Board or to such a  committee,  if
established.  To the extent  consistent  with  applicable  corporate  law of the
Company's  jurisdiction  of  incorporation,  the  Committee  may delegate to any
officers of the Company the duties,  power and authority of the Committee  under
the Plan  pursuant  to such  conditions  or  limitations  as the  Committee  may
establish;  provided, however, that only the Committee may exercise such duties,
power and  authority  with  respect to  Eligible  Recipients  who are subject to
Section 16 of the Exchange Act. The Committee may exercise its duties, power and
authority under the Plan in its sole and absolute discretion without the consent
of any  Participant  or  other  party,  unless  the Plan  specifically  provides
otherwise.  Each determination,  interpretation or other action made or taken by
the Committee  pursuant to the

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provisions  of the Plan will be  conclusive  and binding for all purposes and on
all  persons,  and no member of the  Committee  will be liable for any action or
determination made in good faith with respect to the Plan or any Incentive Award
granted under the Plan.

      3.2   AUTHORITY OF THE COMMITTEE.

            (a)   In accordance  with and subject to the provisions of the Plan,
      the  Committee  will have the  authority to determine  all  provisions  of
      Incentive  Awards as the Committee may deem  necessary or desirable and as
      consistent with the terms of the Plan, including,  without limitation, the
      following:  (i) the Eligible  Recipients  to be selected as  Participants;
      (ii) the  nature  and  extent of the  Incentive  Awards to be made to each
      Participant  (including the number of shares of Common Stock to be subject
      to each Incentive Award, any exercise price, the manner in which Incentive
      Awards will vest or become  exercisable and whether  Incentive Awards will
      be granted in tandem with other Incentive  Awards) and the form of written
      agreement,  if any,  evidencing  such Incentive  Award;  (iii) the time or
      times when  Incentive  Awards will be granted;  (iv) the  duration of each
      Incentive  Award;  and (v) the  restrictions and other conditions to which
      the payment or vesting of  Incentive  Awards may be subject.  In addition,
      the  Committee  will  have  the  authority  under  the  Plan  in its  sole
      discretion to pay the economic value of any Incentive Award in the form of
      cash, Common Stock or any combination of both.

            (b)   Subject to Section 3.2(d),  below, the Committee will have the
      authority  under the Plan to amend or modify the terms of any  outstanding
      Incentive  Award  in  any  manner,  including,   without  limitation,  the
      authority to modify the number of shares or other terms and  conditions of
      an Incentive Award, extend the term of an Incentive Award,  accelerate the
      exercisability or vesting or otherwise terminate any restrictions relating
      to an Incentive Award,  accept the surrender of any outstanding  Incentive
      Award or, to the extent not previously exercised or vested,  authorize the
      grant of new Incentive  Awards in substitution  for surrendered  Incentive
      Awards; provided, however that the amended or modified terms are permitted
      by the Plan as then in effect and that any Participant  adversely affected
      by such  amended or modified  terms has  consented  to such  amendment  or
      modification.

            (c)   In the event of (i) any reorganization, merger, consolidation,
      recapitalization,  liquidation,  reclassification,  stock dividend,  stock
      split,  combination of shares, rights offering,  extraordinary dividend or
      divestiture  (including  a  spin-off)  or any other  change  in  corporate
      structure or shares; (ii) any purchase,  acquisition, sale, disposition or
      write-down  of a significant  amount of assets or a significant  business;
      (iii) any change in accounting principles or practices,  tax laws or other
      such laws or  provisions  affecting  reported  results;  or (iv) any other
      similar  change,  in each case with  respect  to the  Company or any other
      entity  whose  performance  is  relevant  to the  grant or  vesting  of an
      Incentive  Award,  the Committee  (or, if the Company is not the surviving
      corporation  in any  such  transaction,  the  board  of  directors  of the
      surviving   corporation)   may,   without  the  consent  of  any  affected
      Participant,  amend or modify the vesting criteria (including  Performance
      Criteria) of any outstanding  Incentive Award that is based in whole or in
      part on the  financial  performance  of the Company (or any  Subsidiary or

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      division or other subunit thereof) or such other entity so as equitably to
      reflect  such  event,  with  the  desired  result  that the  criteria  for
      evaluating such financial  performance of the Company or such other entity
      will be substantially the same (in the sole discretion of the Committee or
      the board of directors of the surviving  corporation) following such event
      as prior to such event;  provided,  however,  that the amended or modified
      terms are permitted by the Plan as then in effect.

            (d)   Notwithstanding  any other  provision  of this Plan other than
      Section  4.3,  the  Committee  may  not,  without  prior  approval  of the
      Company's  stockholders,  seek to effect any  re-pricing of any previously
      granted,  "underwater"  Option by: (i) amending or modifying  the terms of
      the Option to lower the exercise  price;  (ii)  canceling  the  underwater
      Option and granting either (A) replacement Options having a lower exercise
      price;  (B) Restricted  Stock Awards;  or (C) Performance  Stock Awards in
      exchange;  or (iii)  repurchasing the underwater  Options and granting new
      Incentive  Awards under this Plan. For purposes of this Section 3.2(d) and
      Section 11.4, an Option will be deemed to be "underwater" at any time when
      the Fair Market Value of the Common Stock is less than the exercise  price
      of the Option.

4.    SHARES AVAILABLE FOR ISSUANCE.

      4.1   MAXIMUM NUMBER OF SHARES AVAILABLE;  CERTAIN RESTRICTIONS ON AWARDS.
Subject to adjustment as provided in Section 4.3 of the Plan, the maximum number
of shares of Common  Stock that will be available  for  issuance  under the Plan
will be 1,500,000.  The shares available for issuance under the Plan may, at the
election of the Committee,  be either treasury  shares or shares  authorized but
unissued,  and, if treasury  shares are used,  all references in the Plan to the
issuance of shares  will,  for  corporate  law  purposes,  be deemed to mean the
transfer of shares from treasury.

      4.2   ACCOUNTING  FOR  INCENTIVE  AWARDS.  Shares of Common Stock that are
issued under the Plan or that are subject to outstanding  Incentive  Awards will
be applied  to reduce the  maximum  number of shares of Common  Stock  remaining
available for issuance under the Plan; provided, however, that shares subject to
an Incentive Award that lapses,  expires, is forfeited  (including issued shares
forfeited  under a  Restricted  Stock  Award) or for any  reason  is  terminated
unexercised  or  unvested  or is  settled or paid in cash or any form other than
shares of Common Stock will  automatically  again become  available for issuance
under the Plan.  To the extent  that the  exercise  price of any  Option  and/or
associated tax  withholding  obligations are paid by tender or attestation as to
ownership  of  Previously  Acquired  Shares,  or to the  extent  that  such  tax
withholding  obligations  are  satisfied  by  withholding  of  shares  otherwise
issuable upon exercise of the Option,  only the number of shares of Common Stock
issued net of the number of shares  tendered,  attested to or  withheld  will be
applied  to reduce  the  maximum  number of  shares  of Common  Stock  remaining
available for issuance under the Plan.

      4.3   ADJUSTMENTS  TO SHARES  AND  INCENTIVE  AWARDS.  In the event of any
reorganization,    merger,   consolidation,    recapitalization,    liquidation,
reclassification,  stock  dividend,  stock split,  combination  of shares or any
other change in the corporate structure or shares of the Company,  the Committee
(or, if the Company is not the surviving  corporation  in any such  transaction,
the

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board  of  directors  of  the  surviving   corporation)  will  make  appropriate
adjustment (which determination will be conclusive) as to the number and kind of
securities or other property  (including cash) available for issuance or payment
under the Plan and, in order to prevent dilution or enlargement of the rights of
Participants,  the number and kind of  securities or other  property  (including
cash)  subject  to  outstanding  Incentive  Awards  and the  exercise  price  of
outstanding Options.

5.    PARTICIPATION.

      Participants  in the Plan will be those  Eligible  Recipients  who, in the
judgment of the Committee, have contributed, are contributing or are expected to
contribute  to the  achievement  of  economic  objectives  of the Company or its
Subsidiaries.  Eligible  Recipients may be granted from time to time one or more
Incentive  Awards,  singly or in combination  or in tandem with other  Incentive
Awards, as may be determined by the Committee in its sole discretion.  Incentive
Awards  will be  deemed  to be  granted  as of the date  specified  in the grant
resolution  of the  Committee,  which  date  will  be the  date  of any  related
agreement with the Participant.

6.    OPTIONS.

      6.1   GRANT.  An Eligible  Recipient  may be granted  one or more  Options
under the Plan,  and such Options will be subject to such terms and  conditions,
consistent  with the other  provisions  of the Plan, as may be determined by the
Committee in its sole discretion.  The Committee may designate whether an Option
is to be considered an Incentive Stock Option or a  Non-Statutory  Stock Option.
To the extent that any Incentive  Stock Option granted under the Plan ceases for
any reason to qualify as an "incentive stock option" for purposes of Section 422
of the Code,  such Incentive  Stock Option will continue to be  outstanding  for
purposes of the Plan but will thereafter be deemed to be a  Non-Statutory  Stock
Option.

      6.2   EXERCISE PRICE. The per share price to be paid by a Participant upon
exercise of an Option will be determined  by the Committee in its  discretion at
the time of the Option grant; provided, however, that (a) such price will not be
less than 100% of the Fair Market Value of one share of Common Stock on the date
of grant with  respect to any  Incentive  Stock  Option (110% of the Fair Market
Value with respect to an Incentive  Stock Option if, at the time such  Incentive
Stock Option is granted, the Participant owns, directly or indirectly, more than
10% of the total combined voting power of all classes of stock of the Company or
any parent or subsidiary corporation of the Company) and (b) such price will not
be less than 85% of the Fair  Market  Value of one share of Common  Stock on the
date of grant with respect to a Non-Statutory Stock Option..

      6.3   EXERCISABILITY  AND DURATION.  An Option will become  exercisable at
such times and in such installments and upon such terms and conditions as may be
determined  by the  Committee  in its  sole  discretion  at the  time  of  grant
(including  without  limitation  (i)  the  achievement  of  one or  more  of the
Performance  Criteria and/or (ii) that the Participant  remain in the continuous
employ  or  service  of the  Company  or a  Subsidiary  for a  certain  period);
provided,  however,  that no Option may be  exercisable  after 10 years from its
date of grant  (five  years  from its date of grant in the case of an  Incentive
Stock  Option  if,  at the time the  Incentive  Stock

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Option is granted,  the Participant owns, directly or indirectly,  more than 10%
of the total combined voting power of all classes of stock of the Company or any
parent or subsidiary corporation of the Company).

      6.4   PAYMENT OF EXERCISE PRICE. The total purchase price of the shares to
be purchased upon exercise of an Option will be paid entirely in cash (including
check, bank draft or money order); provided, however, that the Committee, in its
sole discretion and upon terms and conditions established by the Committee,  may
allow  such  payments  to be made,  in whole or in part,  by  tender of a Broker
Exercise  Notice,  by tender,  or  attestation  as to  ownership,  of Previously
Acquired  Shares that have been held for the period of time necessary to avoid a
charge to the Company's  earnings for financial  reporting purposes and that are
otherwise acceptable to the Committee,  or by a combination of such methods. For
purposes of such payment,  Previously  Acquired Shares tendered or covered by an
attestation will be valued at their Fair Market Value on the exercise date.

      6.5   MANNER OF EXERCISE.  An Option may be exercised by a Participant  in
whole or in part from time to time,  subject to the conditions  contained in the
Plan and in the  agreement  evidencing  such Option,  by delivery in person,  by
facsimile or electronic  transmission  or through the mail of written  notice of
exercise to the Company at its principal  executive office in Cedar Rapids, Iowa
and by paying in full the total exercise price for the shares of Common Stock to
be purchased in accordance with Section 6.4 of the Plan.

7.    RESTRICTED STOCK AWARDS.

      7.1   GRANT.  An Eligible  Recipient may be granted one or more Restricted
Stock Awards under the Plan, and such Restricted Stock Awards will be subject to
such terms and conditions,  consistent with the other provisions of the Plan, as
may be  determined by the  Committee in its sole  discretion.  The Committee may
impose such restrictions or conditions,  not inconsistent with the provisions of
the  Plan,  to  the  vesting  of  such  Restricted  Stock  Awards  as  it  deems
appropriate,  including,  without limitation, (i) the achievement of one or more
of the  Performance  Criteria  and/or  (ii) that the  Participant  remain in the
continuous  employ or  service  of the  Company  or a  Subsidiary  for a certain
period.

      7.2   RIGHTS AS A  STOCKHOLDER;  TRANSFERABILITY.  Except as  provided  in
Sections 7.1, 7.3, 7.4 and 12.3 of the Plan, a Participant will have all voting,
dividend,  liquidation  and other  rights with respect to shares of Common Stock
issued to the Participant as a Restricted  Stock Award under this Section 7 upon
the  Participant  becoming  the  holder  of  record  of such  shares  as if such
Participant were a holder of record of shares of unrestricted Common Stock.

      7.3   DIVIDENDS  AND  DISTRIBUTIONS.   Unless  the  Committee   determines
otherwise  in its  sole  discretion  (either  in the  agreement  evidencing  the
Restricted  Stock  Award at the time of grant or at any time  after the grant of
the Restricted Stock Award), any dividends or distributions  (other than regular
quarterly cash dividends) paid with respect to shares of Common Stock subject to
the  unvested  portion of a  Restricted  Stock Award will be subject to the same
restrictions as the shares to which such dividends or distributions  relate. The
Committee  will

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determine  in its sole  discretion  whether  any  interest  will be paid on such
dividends or distributions.

      7.4   ENFORCEMENT OF RESTRICTIONS. To enforce the restrictions referred to
in this Section 7, the  Committee  may place a legend on the stock  certificates
referring  to such  restrictions  and may  require  the  Participant,  until the
restrictions  have lapsed,  to keep the stock  certificates,  together with duly
endorsed stock powers,  in the custody of the Company or its transfer  agent, or
to maintain  evidence of stock  ownership,  together  with duly  endorsed  stock
powers,  in a  certificateless  book-entry  stock  account  with  the  Company's
transfer agent.

8.    PERFORMANCE STOCK AWARDS.

      8.1   An Eligible  Recipient may be granted one or more Performance  Stock
Awards under the Plan,  and the  issuance of shares of Common Stock  pursuant to
such Performance  Stock Awards will be subject to such terms and conditions,  if
any,  consistent with the other  provisions of the Plan, as may be determined by
the  Committee  in its sole  discretion,  including,  but not  limited  to,  the
achievement of one or more of the Performance Criteria.

      8.2 RESTRICTIONS ON TRANSFERS.  The right to receive shares of Performance
Stock Awards on a deferred basis may not be sold, assigned, transferred, pledged
or  otherwise  encumbered,  other  than  by  will or the  laws  of  descent  and
distribution.

9.    EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.

      9.1   TERMINATION DUE TO DEATH OR DISABILITY. In the event a Participant's
employment or other service with the Company and all  Subsidiaries is terminated
by reason of death or Disability:

            (a)   All  outstanding  Options  then held by the  Participant  will
      become  immediately  exercisable in full and will remain exercisable for a
      period of six (6) months after such termination (but in no event after the
      expiration date of any such Option); and

            (b)   All Restricted  Stock Awards then held by the Participant will
      become fully vested; and

            (c)   Any  conditions  with  respect  to the  issuance  of shares of
      Common Stock pursuant to Performance Stock Awards will lapse.

      9.2   TERMINATION  DUE TO RETIREMENT.  Subject to Section 9.5 of the Plan,
in the event a  Participant's  employment  or other service with the Company and
all Subsidiaries is terminated by reason of Retirement:

            (a)   All outstanding  Options then held by the Participant will, to
      the extent exercisable as of such termination,  remain exercisable in full
      for a period of three (3) months after such  termination  (but in no event
      after the expiration date of any such Option).  Options not exercisable as
      of such Retirement will be forfeited and terminate; and

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            (b)   All Restricted  Stock Awards then held by the Participant that
      have not vested as of such  termination  will be terminated and forfeited;
      and

            (c)   All  outstanding  Performance  Stock  Awards  then held by the
      Participant that have not vested as of such termination will be terminated
      and forfeited.

      9.3   TERMINATION FOR REASONS OTHER THAN DEATH,  DISABILITY OR RETIREMENT.
Subject to Section 9.5 of the Plan, in the event a  Participant's  employment or
other service is terminated with the Company and all Subsidiaries for any reason
other than death, Disability or Retirement, or a Participant is in the employ of
a Subsidiary and the Subsidiary ceases to be a Subsidiary of the Company (unless
the Participant continues in the employ of the Company or another Subsidiary):

            (a)   All outstanding  Options then held by the Participant will, to
      the extent exercisable as of such termination,  remain exercisable in full
      for a period of three months after such termination (but in no event after
      the  expiration  date of any such Option).  Options not  exercisable as of
      such termination will be forfeited and terminate; and

            (b)   All Restricted  Stock Awards then held by the Participant that
      have not vested as of such  termination  will be terminated and forfeited;
      and

            (c)   All  outstanding  Performance  Stock  Awards  then held by the
      Participant that have not vested as of such termination will be terminated
      and forfeited.

      9.4   MODIFICATION OF RIGHTS UPON TERMINATION.  Notwithstanding  the other
provisions of this Section 9, upon a Participant's  termination of employment or
other service with the Company and all  Subsidiaries,  the Committee may, in its
sole  discretion  (which  may be  exercised  at any time on or after the date of
grant,  including  following  such  termination),  cause  Options  (or any  part
thereof)  then  held by  such  Participant  to  become  or  continue  to  become
exercisable and/or remain  exercisable  following such termination of employment
or service,  and Restricted Stock Awards and Performance  Stock Awards then held
by  such  Participant  to  vest  and/or  continue  to  vest  or  become  free of
restrictions  and  conditions to issuance,  as the case may be,  following  such
termination of employment or service,  in each case in the manner  determined by
the Committee.

      9.5   EFFECTS OF ACTIONS CONSTITUTING CAUSE.  Notwithstanding  anything in
the Plan to the contrary,  in the event that a Participant  is determined by the
Committee,  acting in its sole  discretion,  to have  committed any action which
would constitute  Cause as defined in Section 2.3,  irrespective of whether such
action or the Committee's  determination  occurs before or after  termination of
such Participant's employment or service with the Company or any Subsidiary, all
rights  of the  Participant  under  the Plan and any  agreements  evidencing  an
Incentive  Award then held by the  Participant  shall terminate and be forfeited
without  notice of any kind. The Company may defer the exercise of any Option or
the vesting of any Restricted  Stock Award for a period of up to forty-five (45)
days in order for the Committee to make any determination as to the existence of
Cause.

                                       9
<PAGE>

      9.6   DETERMINATION OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.  Unless
the Committee  otherwise  determines  in its sole  discretion,  a  Participant's
employment or other  service  will,  for purposes of the Plan, be deemed to have
terminated on the date recorded on the personnel or other records of the Company
or the Subsidiary for which the Participant  provides  employment or service, as
determined by the Committee in its sole discretion based upon such records.

10.   PAYMENT OF WITHHOLDING TAXES.

      10.1  GENERAL  RULES.  The Company is entitled to (a)  withhold and deduct
from future wages of the  Participant (or from other amounts that may be due and
owing to the  Participant  from the  Company  or a  Subsidiary),  or make  other
arrangements for the collection of, all legally  required  amounts  necessary to
satisfy  any  and  all  federal,   foreign,  state  and  local  withholding  and
employment-related   tax  requirements   attributable  to  an  Incentive  Award,
including,  without limitation, the grant, exercise or vesting of, or payment of
dividends with respect to, an Incentive Award or a disqualifying  disposition of
stock  received upon exercise of an Incentive  Stock Option,  or (b) require the
Participant  promptly  to remit the amount of such  withholding  to the  Company
before taking any action,  including  issuing any shares of Common  Stock,  with
respect to an Incentive Award.

      10.2  SPECIAL RULES.  The Committee  may, in its sole  discretion and upon
terms  and  conditions  established  by  the  Committee,  permit  or  require  a
Participant   to   satisfy,   in   whole  or  in  part,   any   withholding   or
employment-related  tax  obligation  described  in  Section  10.1 of the Plan by
electing to tender,  or by attestation as to ownership of,  Previously  Acquired
Shares that have been held for the period of time necessary to avoid a charge to
the Company's  earnings for financial  reporting purposes and that are otherwise
acceptable  to the  Committee,  by  delivery  of a Broker  Exercise  Notice or a
combination  of  such  methods.  For  purposes  of  satisfying  a  Participant's
withholding or  employment-related  tax obligation,  Previously  Acquired Shares
tendered or covered by an attestation will be valued at their Fair Market Value.

11.   CHANGE IN CONTROL.

      11.1  A "Change in Control"  shall be deemed to have occurred if the event
set forth in any one of the following paragraphs has occurred:

            (a)   the sale,  lease,  exchange  or other  transfer,  directly  or
      indirectly,  of  substantially  all of the assets of the  Company  (in one
      transaction or in a series of related transactions) to any Successor;

            (b)   the approval by the stockholders of the Company of any plan or
      proposal for the liquidation or dissolution of the Company;

            (c)   any Successor (as defined in Section 11.2 below), other than a
      Bona Fide  Underwriter  (as defined in Section 11.2 below),  becomes after
      the effective date of the Plan the "beneficial  owner" (as defined in Rule
      13d-3 under the Exchange Act), directly or indirectly, of (i) 20% or more,
      but not  50% or  more,  of the  combined  voting  power  of the  Company's
      outstanding securities ordinarily having the right to vote at elections of

                                       10
<PAGE>

      directors,  unless the  transaction  resulting in such  ownership has been
      approved  in advance by the  Continuity  Directors  (as defined in Section
      11.2  below),  or (ii) more than 50% of the  combined  voting power of the
      Company's  outstanding  securities  ordinarily having the right to vote at
      elections  of  directors  (regardless  of any  approval by the  Continuity
      Directors);

            (d)   a merger or  consolidation  to which the Company is a party if
      the  stockholders  of the Company  immediately  prior to effective date of
      such merger or consolidation  have  "beneficial  ownership" (as defined in
      Rule 13d-3 under the Exchange  Act),  immediately  following the effective
      date of such  merger or  consolidation,  of  securities  of the  surviving
      corporation  representing  (i) 50% or more,  but not more than 80%, of the
      combined  voting power of the  surviving  corporation's  then  outstanding
      securities  ordinarily having the right to vote at elections of directors,
      unless such merger or  consolidation  has been  approved in advance by the
      Continuity  Directors,  or (ii) less than 50% of the combined voting power
      of the surviving  corporation's  then  outstanding  securities  ordinarily
      having the right to vote at  elections  of  directors  (regardless  of any
      approval by the Continuity Directors); or

            (e)   the Continuity Directors cease for any reason to constitute at
      least 50% or more of the Board.

      11.2  CHANGE IN CONTROL DEFINITIONS. For purposes of this Section 11:

            (a)   "CONTINUITY   DIRECTORS"   of  the   Company   will  mean  any
      individuals who are members of the Board on the effective date of the Plan
      and any  individual who  subsequently  becomes a member of the Board whose
      election,  or nomination for election by the Company's  stockholders,  was
      approved  by a vote of at least a  majority  of the  Continuity  Directors
      (either by specific vote or by approval of the Company's  proxy  statement
      in which  such  individual  is named as a  nominee  for  director  without
      objection to such nomination).

            (b)   "BONA FIDE UNDERWRITER" means an entity engaged in business as
      an  underwriter  of  securities  that  acquires  securities of the Company
      through such  entity's  participation  in good faith in a firm  commitment
      underwriting  until  the  expiration  of 40 days  after  the  date of such
      acquisition.

            (c)   "SUCCESSOR"  means any individual,  corporation,  partnership,
      group, association or other person," as such term is used in Section 13(d)
      or  Section  14(d)  of the  Exchange  Act,  other  than the  Company,  any
      "affiliate"  (as defined  below) or any benefit  plan(s)  sponsored by the
      Company or any affiliate that succeeds to, or has the practical ability to
      control  (either  immediately  or solely  with the  passage of time),  the
      Company's  business  directly,  by merger,  consolidation or other form of
      business  combination,   or  indirectly,  by  purchase  of  the  Company's
      outstanding securities ordinarily having the right to vote at the election
      of directors or all or substantially  all of its assets or otherwise.  For
      this purpose, an "affiliate" is (i) any corporation at least a majority of
      whose  outstanding  securities  ordinarily  having  the  right  to vote at
      elections of directors is owned

                                       11
<PAGE>

      directly or  indirectly  by the Company or (ii) any other form of business
      entity in which the Company,  by virtue of a direct or indirect  ownership
      interest,  has the  right  to  elect a  majority  of the  members  of such
      entity's governing body.

      11.3  ACCELERATION  OF VESTING.  Without  limiting  the  authority  of the
Committee  under Sections 3.2 and 4.3 of the Plan, if a Change in Control of the
Company occurs, then, if approved by the Committee in its sole discretion either
in an agreement  evidencing  an  Incentive  Award at the time of grant or at any
time  after the grant of an  Incentive  Award:  (a) all  Options  that have been
outstanding for at least six months will become immediately  exercisable in full
and will remain  exercisable in accordance with their terms;  (b) all Restricted
Stock  Awards  that have been  outstanding  for at least six months  will become
immediately  fully vested and  non-forfeitable;  and (c) any  conditions  to the
issuance of shares of Common  Stock  pursuant to  Performance  Stock Awards that
have been outstanding for at least six months will lapse.

      11.4  CASH PAYMENT. If a Change in Control of the Company occurs, then the
Committee,  if approved by the  Committee  in its sole  discretion  either in an
agreement  evidencing  an  Incentive  Award  at the time of grant or at any time
after  the  grant  of an  Incentive  Award,  and  without  the  consent  of  any
Participant affected thereby, may determine that:

            (a)   some or all  Participants  holding  outstanding  Options  will
      receive, with respect to some or all of the shares of Common Stock subject
      to such Options, as of the effective date of any such Change in Control of
      the  Company,  cash in an amount  equal to the  excess of the Fair  Market
      Value  of such  shares  immediately  prior to the  effective  date of such
      Change in Control of the Company over the exercise price per share of such
      Options; and

            (b)   any Options which, as of the effective date of any such Change
      in  Control,  are  "underwater"  (as  defined  in  Section  3.2(d))  shall
      terminate as of the effective date of any such Change in Control.

            (c)   some or all Participants holding Performance Stock Awards will
      receive, with respect to some or all of the shares of Common Stock subject
      to such  Performance  Stock Awards that remain  subject to issuance  based
      upon the future  achievement of  Performance  Criteria as of the effective
      date of any such Change in Control of the Company, cash in an amount equal
      the Fair Market Value of such shares  immediately  prior to the  effective
      date of such Change in Control.

      11.5  LIMITATION ON CHANGE IN CONTROL PAYMENTS.  Notwithstanding  anything
in  Section  11.3 or 11.4 of the Plan to the  contrary,  if,  with  respect to a
Participant,  the acceleration of the exercisability of an Option as provided in
Section  11.3 or the payment of cash in exchange for all or part of an Option as
provided  in Section  11.4  (which  acceleration  or  payment  could be deemed a
"payment" within the meaning of Section  280G(b)(2) of the Code),  together with
any other  "payments"  that such  Participant  has the right to receive from the
Company or any corporation that is a member of an "affiliated group" (as defined
in Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of
which the  Company is a member,  would  constitute  a  "parachute  payment"  (as
defined in Section 280G(b)(2) of the Code), then the

                                       12
<PAGE>

"payments" to such Participant pursuant to Section 11.3 or 11.4 of the Plan will
be reduced to the largest amount as will result in no portion of such "payments"
being  subject to the excise tax imposed by Section 4999 of the Code;  provided,
however,  that if a  Participant  is subject to a  separate  agreement  with the
Company or a Subsidiary which specifically  provides that payments  attributable
to one or more forms of employee stock incentives or to payments made in lieu of
employee  stock  incentives  will not  reduce  any  other  payments  under  such
agreement,  even if it would constitute an excess parachute payment, or provides
that the  Participant  will have the discretion to determine which payments will
be reduced in order to avoid an excess parachute  payment,  then the limitations
of this Section 11.4 will, to that extent, not apply.

12.   RIGHTS OF ELIGIBLE RECIPIENTS AND PARTICIPANTS; TRANSFERABILITY.

      12.1  EMPLOYMENT OR SERVICE.  Nothing in the Plan will  interfere  with or
limit in any way the right of the Company or any  Subsidiary  to  terminate  the
employment or service of any Eligible  Recipient or Participant at any time, nor
confer upon any Eligible  Recipient or Participant  any right to continue in the
employ or service of the Company or any Subsidiary.

      12.2  RIGHTS AS A STOCKHOLDER. As a holder of Incentive Awards (other than
Restricted  Stock  Awards),  a Participant  will have no rights as a stockholder
unless and until such  Incentive  Awards are exercised  for, or paid in the form
of, shares of Common Stock and the  Participant  becomes the holder of record of
such shares.  Except as otherwise  provided in the Plan, no  adjustment  will be
made for dividends or distributions  with respect to such Incentive Awards as to
which  there is a record date  preceding  the date the  Participant  becomes the
holder of record of such shares,  except as the  Committee  may determine in its
discretion.

      12.3  RESTRICTIONS ON TRANSFER.

            (a)   Except  pursuant to  testamentary  will or the laws of descent
      and  distribution or as otherwise  expressly  permitted by subsections (b)
      and (c) below,  no right or interest of any  Participant  in an  Incentive
      Award  prior to the  exercise  (in the case of Options) or vesting (in the
      case  of  Restricted  Stock  Awards)  of  such  Incentive  Award  will  be
      assignable or transferable,  or subjected to any lien, during the lifetime
      of the  Participant,  either  voluntarily  or  involuntarily,  directly or
      indirectly, by operation of law or otherwise.

            (b)   A Participant  will be entitled to designate a beneficiary  to
      receive an Incentive Award upon such Participant's death, and in the event
      of such  Participant's  death,  payment of any  amounts due under the Plan
      will be made to, and  exercise  of any  Options  (to the extent  permitted
      pursuant to Section 9 of the Plan) may be made by, such beneficiary.  If a
      deceased  Participant  has  failed to  designate  a  beneficiary,  or if a
      beneficiary   designated   by  the   Participant   fails  to  survive  the
      Participant,  payment of any  amounts  due under the Plan will be made to,
      and exercise of any Options (to the extent permitted pursuant to Section 9
      of the  Plan) may be made by,  the  Participant's  legal  representatives,
      heirs and legatees. If a deceased Participant has designated a beneficiary
      and such  beneficiary  survives the  Participant  but dies before complete
      payment of all amounts  due under the Plan or exercise of all  exercisable
      Options, then such payments

                                       13
<PAGE>

      will be made to,  and the  exercise  of such  Options  may be made by, the
      legal representatives, heirs and legatees of the beneficiary.

            (c)   Upon a Participant's  request,  the Committee may, in its sole
      discretion, permit a transfer of all or a portion of a Non-Statutory Stock
      Option,  other than for value,  to such  Participant's  child,  stepchild,
      grandchild,  parent,  stepparent,   grandparent,  spouse,  former  spouse,
      sibling,   niece,  nephew,   mother-in-law,   father-in-law,   son-in-law,
      daughter-in-law, brother-in-law, or sister-in-law, any person sharing such
      Participant's  household  (other  than a tenant or  employee),  a trust in
      which any of the foregoing  have more than fifty percent of the beneficial
      interests, a foundation in which any of the foregoing (or the Participant)
      control  the  management  of assets,  and any other  entity in which these
      persons  (or the  Participant)  own more than fifty  percent of the voting
      interests.  Any permitted  transferee will remain subject to all the terms
      and  conditions  applicable to the  Participant  prior to the transfer.  A
      permitted  transfer  may be  conditioned  upon  such  requirements  as the
      Committee  may,  in its sole  discretion,  determine,  including,  but not
      limited to  execution  and/or  delivery of  appropriate  acknowledgements,
      opinion of counsel, or other documents by the transferee.

      12.4  NON-EXCLUSIVITY  OF THE  PLAN.  Nothing  contained  in the  Plan  is
intended  to modify or rescind any  previously  approved  compensation  plans or
programs of the Company or create any  limitations  on the power or authority of
the Board to adopt such  additional or other  compensation  arrangements  as the
Board may deem necessary or desirable.

13.   SECURITIES LAW AND OTHER RESTRICTIONS.

      Notwithstanding  any other provision of the Plan or any agreements entered
into pursuant to the Plan,  the Company will not be required to issue any shares
of Common  Stock  under  this  Plan,  and a  Participant  may not sell,  assign,
transfer  or  otherwise  dispose of shares of Common  Stock  issued  pursuant to
Incentive  Awards  granted  under the Plan,  unless (a) there is in effect  with
respect to such shares a registration statement under the Securities Act and any
applicable  securities  laws of a state or foreign  jurisdiction or an exemption
from such registration  under the Securities Act and applicable state or foreign
securities laws, and (b) there has been obtained any other consent,  approval or
permit from any other U.S. or foreign  regulatory  body which the Committee,  in
its sole  discretion,  deems  necessary or advisable.  The Company may condition
such  issuance,  sale or  transfer  upon the receipt of any  representations  or
agreements  from the  parties  involved,  and the  placement  of any  legends on
certificates  representing shares of Common Stock, as may be deemed necessary or
advisable  by the Company in order to comply with such  securities  law or other
restrictions.

14.   PLAN AMENDMENT, MODIFICATION AND TERMINATION.

      The Board may suspend or terminate the Plan or any portion  thereof at any
time, and may amend the Plan from time to time in such respects as the Board may
deem advisable in order that Incentive Awards under the Plan will conform to any
change in applicable  laws or  regulations or in any other respect the Board may
deem to be in the best interests of the Company; provided, however, that no such
amendments to the Plan will be effective without approval of the

                                       14
<PAGE>

Company's  stockholders  if: (i)  stockholder  approval of the amendment is then
required  pursuant to Section 422 of the Code or the rules of any stock exchange
or Nasdaq or similar  regulatory  body; or (ii) such  amendment  seeks to modify
Section 3.2(d) hereof.  No termination,  suspension or amendment of the Plan may
adversely  affect any  outstanding  Incentive  Award  without the consent of the
affected Participant;  provided, however, that this sentence will not impair the
right of the  Committee  to take  whatever  action  it deems  appropriate  under
Sections 3.2(c), 4.3 and 11 of the Plan.

15.   EFFECTIVE DATE AND DURATION OF THE PLAN.

      The Plan is effective as of the Effective Date. The Plan will terminate at
midnight on January 31, 2015, and may be terminated  prior to such time by Board
action.  No  Incentive  Award will be  granted  after  termination  of the Plan.
Incentive  Awards  outstanding  upon  termination of the Plan may continue to be
exercised, or become free of restrictions, according to their terms.

16.   MISCELLANEOUS.

      16.1  GOVERNING LAW. Except to the extent expressly  provided herein or in
connection  with other matters of corporate  governance  and  authority  (all of
which  shall  be  governed  by  the  laws  of  the  Company's   jurisdiction  of
incorporation), the validity, construction,  interpretation,  administration and
effect of the Plan and any rules,  regulations and actions  relating to the Plan
will be governed by and construed exclusively in accordance with the laws of the
State  of  Iowa   notwithstanding  the  conflicts  of  laws  principles  of  any
jurisdictions.

      16.2  SUCCESSORS  AND ASSIGNS.  The Plan will be binding upon and inure to
the  benefit of the  successors  and  permitted  assigns of the  Company and the
Participants.

                                       15Exhibit 10.5

THE WARRANT EVIDENCED HEREBY, AND THE SECURITIES ISSUABLE HEREUNDER, HAVE BEEN
AND SHALL BE ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE APPLICABLE STATE SECURITY LAWS. THE WARRANT AND SUCH SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE,
AND SHALL NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS THE PROPOSED
DISPOSITION IS THE SUBJECT OF A CURRENTLY EFFECTIVE REGISTRATION STATEMENT UNDER
SAID ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR UNLESS THE COMPANY HAS
RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO
THE COMPANY, TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SAID ACT
AND SUCH STATE SECURITIES LAWS IN CONNECTION WITH SUCH DISPOSITION.

                         AMERICAN PALLET LEASING, INC.

                         COMMON STOCK PURCHASE WARRANT

                      Original Issue Date: APRIL 27, 2005
                           Void After: APRIL 27, 2010

                           This Warrant is Issued to
                      BRITTANY CAPITAL MANAGEMENT LIMITED

(hereinafter called the "HOLDER" which term shall include the Holder's legal
representatives, heirs, successors and assigns) by American Pallet Leasing,
Inc., a Delaware corporation (hereinafter referred to as the "COMPANY"). This
Warrant may be transferred by the Holder only in accordance with the provisions
of Section 12.

   1. EXERCISE OF WARRANT. For value received and subject to the terms and
conditions hereinafter set forth, the Holder is entitled, upon surrender of this
Warrant at any time on or after April 27, 2005 and on or prior to April 27, 2010
(the "EXERCISE DATE") (with the subscription form annexed hereto (the
"SUBSCRIPTION FORM") duly executed) at the office of the Company at 425 Second
Street, S.E., Suite 600, Cedar Rapids, IA 54201, or such other office in the
United States of which the Company shall notify the Holder hereof in writing, to
purchase from the Company, at the purchase price hereinafter specified (as
adjusted from time to time, the "EXERCISE PRICE"), 115,385 shares (the "WARRANT
SHARES") (as adjusted from time to time) of the Common Stock, $0.001 par value
per share, of the Company (the "COMMON STOCK"). The initial Exercise Price
shall be $0.65 per share

   2. ISSUANCE OF STOCK CERTIFICATES. As promptly as practicable after surrender
of this Warrant and receipt of payment of the Exercise Price, the Company shall
issue and deliver to the Holder a certificate or certificates for the shares
purchased hereunder, in certificates of such denominations and in such names as
the Holder may specify.

<PAGE>

   3. PAYMENT OF EXERCISE PRICE. Payment of the Exercise Price shall be made by
check made payable to the order of the Company or wire transfer of funds to a
bank account designated by the Company.

   4. CASHLESS EXERCISE. The Holder may notify the Company in a Subscription
Form of its election to utilize cashless exercise, in which event the Company
shall issue to the Holder the number of Warrant Shares determined as follows:

                    X = Y [(A-B)/A]

               where:

                    X = the number of Warrant Shares to be issued to the Holder.

                    Y = the number of Warrant Shares with respect to which this
                    Warrant is being exercised.

                    A = the average of the closing prices for the five trading
                    days immediately prior to (but not including) the Exercise
                    Date.

                    B = the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and
the holding period for the Warrant Shares shall be deemed to have commenced, on
the date this Warrant was originally issued.

     5. LIMITATION ON EXERCISE. Notwithstanding anything to the contrary
contained herein, the number of Warrant Shares that may be acquired by the
Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall
be limited to the extent necessary to insure that, following such exercise (or
other issuance), the total number of shares of Common Stock then beneficially
owned by such Holder and its affiliates and any other persons whose beneficial
ownership of Common Stock would be aggregated with the Holder's for purposes of
Section 13(d) of the Exchange Act, does not exceed 4.999% of the total number of
issued and outstanding shares of Common Stock (including for such purpose the
shares of Common Stock issuable upon such exercise). For such purposes,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder.

     6. ADJUSTMENT FOR DIVIDENDS, DISTRIBUTIONS, SUBDIVISIONS. COMBINATIONS,
MERGERS, CONSOLIDATIONS OF SALE OF ASSETS

          6.1 MANNER OF ADJUSTMENT.

               (a) STOCK DIVIDENDS, DISTRIBUTIONS OR SUBDIVISIONS. In the event
the Company shall issue shares of Common Stock in a stock. dividend, stock
distribution or subdivision, the Exercise Price in effect immediately before
such stock dividend, stock distribution or subdivision shall, concurrently with
the effectiveness of such stock dividend,

                                     - 2 -
<PAGE>

stock distribution or, subdivision, be proportionately decreased and the number
of shares of Common Stock purchasable by exercise of this Warrant shall be
proportionately increased.

               (b) COMBINATIONS OR CONSOLIDATIONS. In the event the outstanding
shares of Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser, number of shares of Common Stock, the Exercise Price
in effect immediately prior to such combination or consolidation shall,
concurrently with the effectiveness of such combination or consolidation, be
proportionately increased and the number of shares of Common Stock purchasable
by exercise of this Warrant shall be proportionately decreased

               (c) ADJUSTMENT FOR RECLASSIFICATION EXCHANGE OR SUBSTITUTION. In
the event that the class of securities issuable upon the exercise of this
Warrant shall be changed into the same or a different number of shares of any
class or classes of stock, whether by capital reorganization, reclassification
or otherwise (other than any event addressed by Sections 6. 1 (a), 6.1 (b) or
6.1 (d)), then and in each such event the Holder shall have the right thereafter
to exercise this Warrant for the kind and amount of shares of stock and other
securities and property receivable upon such reorganization, reclassification,
or other change, by holders of the number of shares of the class of securities
into which such Warrant might have been exercisable for immediately prior to
such reorganization, reclassification, or change, all subject to further
adjustment as provided herein.

               (d) ADJUSTMENT FOR MERGER, CONSOLIDATION OR SALE OF ASSETS. In
the event that the Company shall merge or consolidate with or into another
entity or sell all or substantially all of its assets, this Warrant shall
thereafter be exercisable for the kind and amount of shares of stock or other
securities or property to which a holder of the number of shares of Common Stock
of the Company deliverable upon exercise of this Warrant would have been
entitled upon such consolidation, merger or sale; and, in such case, appropriate
adjustment (as determined in good faith by the Company's Board of Directors)
shall be made in the application of the provisions set forth in this Section 6
with respect to the rights and interest thereafter of the Holder of this
Warrant, to the end that the provisions set forth in this Section 6 shall
thereafter be applicable, as nearly as reasonably may be, in relation to any
shares of stock or other property thereafter deliverable upon the exercise of
this Warrant.

          6.2 CERTIFICATE AS TO ADJUSTMENTS. Upon the occurrence of each
adjustment or readjustment of the Exercise Price pursuant to this Section 6, the
Company at its expense shall promptly compute such adjustment or readjustment in
accordance with the terms hereof and furnish to the Holder a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based.

          6.3 CLOSING OF BOOKS. The Company shall at no time close its transfer
books against the transfer of any shares of Common Stock issued or issuable upon
the exercise of thisWarrant in any manner which interferes with the timely and
proper issuance of such shares.

     7. COVENANTS OF THE COMPANY. During the period within which the rights
represented by this Warrant may be exercised, the Company shall at all times
have authorized and reserved for the purpose of issue upon exercise of the
rights evidenced hereby, a sufficient number of shares of the class of
securities issuable upon exercise of this Warrant to provide for

                                     - 3 -
<PAGE>

the exercise of such rights. All securities which may be issued upon the
exercise of the rights represented by this Warrant shall, upon issuance, be duly
authorized, validly issued, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issue thereof. Upon surrender for
exercise, this Warrant shall be canceled and shall not be reissued; PROVIDED,
HOWEVER, that upon the partial exercise hereof a substitute Warrant of like
tenor and date representing the rights to subscribe for and purchase any such
unexercised portion hereof shall be issued.

     8. NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE. This Warrant shall not entitle
the Holder to any voting rights or any other rights as a stockholder of the
Company but upon presentation of this Warrant with the Subscription Form duly
executed and the tender of payment of the Exercise Price at the office of the
Company pursuant to the provisions of this Warrant, the Holder shall forthwith
be deemed a stockholder of the Company in respect of the securities for which
the Holder has so subscribed and paid.

     9. NO CHANGE NECESSARY. The form of this Warrant need not be changed
because of any adjustment in the Exercise Price or in the number of shares
issuable upon its exercise. A Warrant issued after any adjustment or any partial
exercise or upon replacement may continue to express the same Exercise Price and
the same number of shares (appropriately reduced in the case of partial
exercise) as are stated on this Warrant as initially issued, and that Exercise
Price and that number of shares shall be considered to have been so changed as
of the close of business on the date of adjustment.

     10. ADDRESSES FOR NOTICES. All notices, requests, consents and other
communications hereunder shall be in writing, either delivered in hand or mailed
by registered or certified mail, return receipt requested, or sent by facsimile,
and shall be deemed to have been duly made when delivered:

          (a) If to the Holder, to the Holder's address as shown on the books of
the Company; or

          (b) If to the Company, to the address set forth on the first page of
this Warrant.

     11. SUBSTITUTION. In the case this Warrant shall be mutilated, lost, stolen
or destroyed, the Company shall issue a new Warrant of like tenor and
denomination and deliver the same (a) in exchange and substitution for and upon
surrender and cancellation of any mutilated Warrant, or (b) in lieu of any
Warrant lost, stolen or destroyed, upon receipt of evidence satisfactory to the
Company of the loss, theft, or destruction of such Warrant (including, without
limitation, a reasonably detailed affidavit with respect to the circumstances of
any loss, theft or destruction), and of indemnity (or, in the case of the
initial Holder or any other institutional holder, an indemnity agreement)
satisfactory to the Company.

     12. TRANSFER RESTRICTIONS. This Warrant shall not be transferable by the
Holder and shall be exercisable only by the Holder. Without the prior written
consent of the Company, the Warrant shall not be assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and shall not
be subject to execution, attachment or similar process. Any

                                     - 4 -
<PAGE>

attempted transfer, assignment, pledge, hypothecation or other disposition of
the Warrant or of any rights granted hereunder contrary to the provisions of
this Section 12, or the levy of any attachment or similar process upon the
Warrant or such rights, shall be null and void.

     13. TAXES. The Company makes no representation about tax treatment to the
Holder with respect to receipt or exercise of the Warrant or acquiring, holding
or disposing of the Common Stock, and the Holder represents that the Holder has
had the opportunity to discuss such treatment with the Holder's tax advisers.

     14. REMEDIES. Each party stipulates that the remedies at law in the event
of any default or threatened default by the other party in the performance or
compliance with any of the terms of this Warrant are and shall not be, adequate,
and that such terms may be specifically enforced by a decree for that specific
performance of any agreement contained herein or by an injunction against a
violation of any of the terms hereof or otherwise.

     15. GOVERNING LAW. This Warrant shall be construed and enforced in
accordance with, and governed by, the laws of the State of New York without
regard to its principles of conflicts of laws.

     16. MISCELLANEOUS. This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the Holder
and the Company.

     17. FIVE PERCENT LIMITATION. Holder shall not have the right to exercise
this Warrant such that the issuance of any shares of common stock pursuant to
such exercise, when aggregated with all other shares of common stock then
beneficially owned by Holder, or deemed beneficially owned by Holder, would
result in Holder owning more than 4.99% of all common stock outstanding at the
date of such exercise, as determined in accordance with Section 16 of the
Securities Exchange Act of 1934 and the regulations promulgated thereunder.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     - 5 -
<PAGE>

                                                   COMMON STOCK PURCHASE WARRANT

                                     * * *

     IN WITNESS WHEREOF, the parties have caused this Warrant to be executed
this 27h day of April, 2005.

                                                   AMERICAN PALLET LEASING, INC.

                                                   By:    /s/ Tim Bumgarner
                                                          ----------------------
                                                   Name:  Tim Bumgarner
                                                          ----------------------
                                                   Title: CEO
                                                          ----------------------
                                                          4-28-05

<PAGE>

                               SUBSCRIPTION FORM

                         (TO BE EXECUTED BY THE HOLDER
                       IN ORDER TO EXERCISE THE WARRANT)

                                                            Date: ______________

To:      American Pallet Leasing, Inc.
         425 Second Street, S.E., Suite 600
         Cedar Rapids, IA 54201

     The undersigned, pursuant to the provisions set forth in the attached
Warrant hereby irrevocably elects to purchase ________ shares of the Common
Stock (the "COMMON STOCK") covered by such Warrant and herewith makes payment of
$__________ , representing the [full/partial] purchase price for such shares at
the price per share provided for in such Warrant.

     The undersigned hereby agrees to take such other action and execute and
deliver such other documents as American Pallet Leasing, Inc. may require, in
connection with the issue of shares of Common Stock to the undersigned as
aforesaid, in order to comply with the provisions of such Warrant.

     The undersigned is aware that the Common Stock has not been registered
under the Securities Act of 1933, as amended (the"Act") or any state securities
laws. The undersigned understands that the reliance by the Company on exemptions
under the Act is predicated in part upon the truth and accuracy of the
statements of the undersigned in this Subscription Form.

     The undersigned represents and warrants that (1) it has been furnished with
all information which it deems necessary to evaluate the merits and risks of
the purchase of the Common Stock; (2) it has had the opportunity to ask
questions concerning the Common Stock and the Company and all questions posed
have been answered to its satisfaction; (3) it has been given the opportunity to
obtain any additional information it deems necessary to verify the accuracy of
any information obtained concerning the Common Stock and the Company; and (4) it
has such knowledge and experience in financial and business matters that it is
able to evaluate the merits and risks of purchasing the Common Stock and to make
an informed investment decision relating thereto.

     The undersigned hereby represents and warrants that it is purchasing the
Common Stock for its own account and not with a view to the sale or distribution
of all or any part of the Common Stock.

     The undersigned understands that because the Common Stock has not been
registered under the Act, it must continue to bear the economic risk of the
investment for an indefinite time and the Common Stock cannot be sold unless the
Common Stock is subsequently registered under applicable federal and state
securities laws or an exemption from such registration is available.

     The undersigned agrees that it shall in no event sell or distribute or
otherwise dispose of all or any part of the Common Stock unless (1) there is an
effective registration statement under

<PAGE>

the Act and applicable state securities laws covering any such transaction
involving the Common Stock or (2) the Company receives an opinion of legal
counsel to the undersigned (concurred in by legal counsel for the Company)
stating that such transaction is exempt from registration or the Company
otherwise satisfies itself that such transaction is exempt from registration.

     The undersigned consents to the placing of a legend on its certificate for
the Common Stock stating that the Common Stock has not been registered and
setting forth the restriction on transfer contemplated hereby and to the placing
of a stop transfer order on the books of the Company and with any transfer
agents against the Common Stock until the Common Stock may be legally resold or
distributed without restriction.

     The undersigned has considered the federal and state income tax
implications of the exercise of the Warrant and the purchase and subsequent sale
of the Common Stock.

                                                   _____________________________
                                                   Signature

                                                   Print name: _________________

                                                   Date: _______________________

                                     - 2 -

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