Document:

AGREEMENT AND PLAN OF MERGER

                            PURSUANT TO IRC ss.368(a)

         THIS  AGREEMENT  AND PLAN OF  MERGER  (this  "Agreement"),  is made and
entered into as of April 27, 2005, by and among  MARKETSHARE  RECOVERY,  INC., a
Delaware  corporation  (the "Parent"),  MARKETSHARE  MERGER SUB INC., a Delaware
corporation  to be formed as a wholly  owned  subsidiary  of Parent (the "Merger
Sub"), and BIOMETRX  TECHNOLOGIES,  INC., a Delaware corporation (the "Company")
and the  "Stockholder  Representative",  defined  below  (the  "Parties"),  with
reference to the following facts:

                                    RECITALS

         A.  WHEREAS,  the  respective  Boards of Directors of the Company,  the
Parent and Merger Sub have each  determined that it is advisable and in the best
interests of their respective  stockholders  that the Parent acquire the Company
pursuant to the terms and conditions of this  Agreement,  and, in furtherance of
such  acquisition,  such Boards of Directors  have approved the merger of Merger
Sub with and into the Company  (the  "Merger") in  accordance  with the terms of
this Agreement and the applicable provisions of the Delaware General Corporation
Law (the "Delaware Corporation Law");

         B.  WHEREAS,  Parent will form Merger Sub for the purposes of effecting
the Merger prior to the Effective Time (defined below);

         C.  WHEREAS,  for United  States  federal  income tax  purposes,  it is
intended that the Merger shall qualify as a "reorganization"  within the meaning
of Section 368(a) of the Internal Revenue Code of 1986, as amended (the "Code"),
and  that  this  Agreement  shall  be,  and is  hereby,  adopted  as a "plan  of
reorganization" for purposes of Section 368(a) of the Code;

         D. WHEREAS,  pursuant to the Merger,  (i) each outstanding share of the
Company's  Common  Stock,  $0.001 par value  ("Company  Common  Stock") shall be
converted into the right to receive shares of common stock of the Parent, $.0001
par value per share ("Parent Common Stock"), and (ii) each outstanding option or
warrant to purchase  shares of Company  Common Stock shall be  exchanged  for an
option or warrant to purchase a corresponding  number of shares of Parent Common
Stock, at the exchange ratio set forth herein;

         E. WHEREAS, the Parties have determined it to be in their best interest
for the  Parent to issue its  Parent  Common  Stock  under  the  exemption  made
available  pursuant to Section 4(2) of the  Securities  Act of 1933,  as amended
(the "Securities Act") and Rule 506 of Regulation D, thereunder; and

         F.  WHEREAS,  the  Parties  desire  to  make  certain  representations,
warranties,  covenants, and agreements in connection with, and establish certain
conditions precedent to, the Merger.

                                       1
<PAGE>

         G.  WHEREAS,  the  Parent's  Common Stock is quoted on the OTC Bulletin
board and trades under the symbol MKSH.OB.

         NOW,   THEREFORE,   in   consideration   of   the   mutual   covenants,
representations, warranties and agreements contained herein, and intending to be
legally bound hereby, the Parties agree as follows:

                                   ARTICLE I

                                   THE MERGER

         1.1 The Merger; The Merger Consideration.

                  (a)  As  of  the  date  of  this  Agreement,  the  Parent  has
outstanding  3,808,521 shares of Parent Common Stock. After giving effect to the
surrender  of  2,208,251   shares  of   outstanding   Parent  Common  Stock  for
cancellation in the manner  contemplated  by Section 7.9(b) hereof,  immediately
prior to the  Effective  Time there will be  1,600,000  shares of Parent  Common
Stock outstanding.

                  (b) In connection  with the Merger,  (i) each holder of shares
of Company  Common Stock will receive a number of shares of Parent  Common Stock
based upon the  exchange  ratio of one share of Company  Common  Stock  becoming
1.1306  shares of Parent  Common  Stock,  subject to  adjustment as set forth on
Schedule  1.1 hereto  (the  "Exchange  Ratio"),  (ii) each holder of warrants or
options of the Company  will  receive  corresponding  instruments  in the Parent
having substantially the same rights, preferences and privileges as the original
Company  instrument,  adjusted  as to  exercise  price and number of  underlying
shares of Parent  Common  Stock  based upon the  Exchange  Ratio,  and (iii) the
Company will be operated as a wholly owned subsidiary of the Parent, which shall
own all of the issued and outstanding  capital stock of the Company.  All debts,
liabilities,  obligations,  contracts  and  assets of the  Merger  Sub will,  by
operation  of law as of the  Effective  Time,  become  the  debts,  obligations,
contracts,  liabilities  and assets of the Company and Merger Sub shall cease to
exist.

         1.2 Certificate of Merger. A certificate of merger (the "Certificate of
Merger"),  together with all  appropriate  and necessary  filing fees,  shall be
prepared,  executed  and  delivered  to the  Secretary  of State of the State of
Delaware (the "Delaware  Secretary")  for filing on the Closing Date, as defined
in Section 3, in accordance with the Delaware Corporation Law.

         1.3 Effective  Time. The Merger shall become  effective upon the filing
of the Certificate of Merger with the Delaware  Secretary in accordance with the
provisions of the Delaware Corporation Law. The date and time of the filing with
the Delaware Secretary is referred to herein as the "Effective Time."

         1.4 Tax-Free Merger. The Parties intend that the Merger will be treated
as a tax-free reorganization under Section 368 of the Code.

                                       2
<PAGE>

                                   ARTICLE II

                              EFFECT OF THE MERGER

         2.1 General.  Subject to the terms and conditions of this Agreement, at
the  Effective  Time,  Merger  Sub  shall  merge  with and into the  Company  in
accordance with the Delaware  Corporation Law, the separate corporate  existence
of Merger Sub shall  cease,  and the Company  shall  continue  as the  surviving
corporation  in the Merger.  The  Company,  in its  capacity as the  corporation
surviving  the  Merger,  is  sometimes  referred  to  herein  as the  "Surviving
Corporation."   The  Surviving   Corporation   shall  possess  all  the  rights,
privileges, powers, immunities and franchises, of Merger Sub (sometimes referred
to hereinafter as the "Disappearing Corporation");  all property, real, personal
and mixed, and all debts due on whatever  account,  including  subscriptions for
shares, stock options and warrants,  and all choses in action, and all and every
interest, of or belonging to or due the Disappearing  Corporation shall be taken
and deemed to be transferred to and vested in the Surviving  Corporation without
further act or deed; and the title to any real estate,  or any interest therein,
vested  in the  Disappearing  Corporation  shall  not  revert  or be in any  way
impaired by reason of the Merger.  The Surviving  Corporation shall have all the
rights, privileges, immunities and powers and shall be subject to all the duties
and liabilities of a corporation organized under the Delaware Corporation Law.

         2.2 Conversion of Securities.  At the Effective  Time, by virtue of the
Merger and  without  any action on the part of any Party or the holder of any of
the following securities:

                  (a) Each share of Company Common Stock issued and  outstanding
immediately  prior to the Effective Time and owned  beneficially or of record by
Company  stockholders  shall be converted  into and become the number of validly
issued,  fully paid and non-assessable  shares of Parent Common Stock determined
by the Exchange Ratio.

                  (b) Each option, warrant and security convertible by its terms
into Company Common Stock that is outstanding immediately prior to the Effective
Time shall be assumed by the Parent and shall be deemed to constitute an option,
warrant or convertible  security,  as the case may be, to acquire,  on the terms
and  conditions as were  applicable  under such option,  warrant or  convertible
security, the same number of shares of Parent Common Stock as the holder of such
option,  warrant or  convertible  security  would have been  entitled to receive
pursuant to the Merger had such  holder  exercised  such  option or warrant,  or
converted such convertible  security, in full immediately prior to the Effective
Time (not  taking into  account  whether  such  option,  warrant or  convertible
security was in fact  exercisable or convertible at such time), and the exercise
or  conversion  price  thereof  shall be  proportionately  adjusted.  As soon as
practicable after the Effective Time, the Parent shall deliver to each holder of
a Company  option,  warrant  and  convertible  security  an  option,  warrant or
convertible  security,  as the case may be, in the Parent,  having substantially
identical terms as the original Company option, warrant or convertible security,
as the case may be.

         2.3 Dissenting Shares.  Notwithstanding any provision of this Agreement
to the  contrary,  dissenting  shares of the Company as defined in the  Delaware
Corporation Law  ("Dissenting  Shares") shall not be converted into the right to
receive  shares of Parent Common Stock at or after the Effective Time unless and
until the  holder of such  Dissenting  Shares  withdraws  his or her  demand for

                                       3
<PAGE>

payment of the fair value of such shares in  accordance  with the  provisions of
the Delaware Corporation Law or becomes ineligible for such payment. If a holder
of  Dissenting  Shares shall  withdraw his or her demand for payment of the fair
value of such shares in accordance  with the Delaware  Corporation  Law or shall
become  ineligible  to  receive  such  payment,  then,  as of the  later  of the
Effective Time or the occurrence of such event, such holder's  Dissenting Shares
shall be automatically converted into a corresponding number of shares of Parent
Common Stock in accordance with the terms of this  Agreement.  The Company shall
give the Parent  prompt  notice of any  notices of intent to assert  dissenters'
rights  and to demand  payment  or  withdrawals  of  notices of intent to assert
dissenters'  rights and will not,  except with the prior written  consent of the
Parent,  settle or compromise or offer to settle or compromise any such notices,
voluntarily  make any  payment  with  respect  to any notice of intent to demand
payment for shares of Company Common Stock or approve any withdrawal of any such
notice.  Each  holder of  Dissenting  Shares  shall  have only such  rights  and
remedies as are granted to such holder under the Delaware  Corporation Law. This
Section  notwithstanding,  in the  event  that one  percent  (1%) or more of the
outstanding shares of the Company are Dissenting Shares, the Company may, in its
sole discretion,  terminate this Agreement, in which event, this Agreement shall
forthwith  become void and of no further  force and effect and the Parties shall
be released from any and all  obligations  hereunder;  provided,  however,  that
nothing  herein shall relieve any Party from  liability for the breach of any of
its  representations,  warranties,  covenants  or  agreements  set forth in this
Agreement.

         2.4 Exchange of Certificates.

                  (a) Prior to the Closing  Date,  the Parent shall  appoint its
transfer  agent or such other  person or entity as the  Company  may  reasonably
request to act as exchange agent (the "Exchange Agent") in the Merger.

                  (b) At least five (5) but not more than ten (10) Business Days
after the Effective Time, the Parent,  at its cost and expense,  shall cause the
Exchange  Agent to deliver to each  holder of record of shares of Parent  Common
Stock  to be  exchanged  for  the  Company's  outstanding  shares  ("Outstanding
Shares"),  a letter of  transmittal in the form annexed hereto as Exhibit A (the
"Letter  of  Transmittal")  for use in  effecting  the  surrender  of the  stock
certificates  representing  the  Outstanding  Shares (the  "Certificates").  For
purposes  of this  Agreement,  "Business  Day"  shall  mean a day  other  than a
Saturday,  Sunday or day when  commercial  banks are not  generally  open to the
public in New York, New York. To the extent that holders of  Outstanding  Shares
(each a "Holder") deliver  Certificates along with a duly executed and completed
Letter of  Transmittal  to the Parent or Exchange  Agent,  then the Parent shall
promptly  deliver (or cause and instruct the Exchange  Agent to deliver) to such
each Holder, a certificate(s) representing the number of shares of Parent Common
Stock to which the Holder is entitled  pursuant to Section 2.2 above. The Parent
or Exchange  Agent shall effect  delivery of the  certificate  for Parent Common
Stock  within  three  (3)  Business  Days  after  due  receipt  of the  Holder's
Certificate  and  duly  completed  and  executed  Letter  of  Transmittal.  Each
Certificate surrendered shall immediately be canceled. At the Effective Time, no
Holder of a Certificate  shall have any rights with respect to shares of Company
Common Stock other than to surrender such  Certificate  pursuant to this Section
2.4 or, if the Holder holds  Dissenting  Shares,  to demand  payment of the fair
value thereof pursuant to the Delaware  Corporation Law or to exercise any other
rights under the Delaware Corporation Law.

                                       4
<PAGE>

                  (c) The  Parent  and  Exchange  Agent  shall  follow  the same
procedure with respect to lost, stolen or mutilated  Certificates as the Company
followed  with respect to lost,  stolen or mutilated  certificates  prior to the
Effective  Time which  procedures  shall  include,  at a minimum,  receipt of an
affidavit and indemnity of lost  certificate  in customary form (but without the
requirement of any bond or security for such indemnity).

         2.5 Distributions  With Respect To Unexchanged  Shares. No dividends or
other  distributions  declared or made after the Effective  Time with respect to
Parent Common Stock with a record date after the Effective Time shall be paid to
the holder of any unsurrendered Certificate with respect to the shares of Parent
Common  Stock  evidenced  thereby,  until the holder of such  Certificate  shall
surrender such Certificate.  Subject to the effect of applicable laws, following
surrender  of any such  Certificate,  there  shall be paid to the  holder of the
certificates  evidencing  shares  of Parent  Common  Stock  issued  in  exchange
therefor,  (i) promptly,  the amount of dividends or other  distributions with a
record  date after the  Effective  Time  theretofore  paid with  respect to such
shares of Parent  Common Stock and (ii) at the  appropriate  payment  date,  the
amount  of  dividends  or other  distributions,  with a record  date  after  the
Effective  Time but  prior to  surrender  and a  payment  date  occurring  after
surrender,  payable  with  respect to such  shares of Parent  Common  Stock.  No
interest shall be paid on any amounts payable under this Section 2.5.

         2.6 No Further  Rights in Company  Stock.  All shares of Parent  Common
Stock issued upon  exchange of the shares of Company  Common Stock in accordance
with the terms hereof  shall be deemed to have been issued in full  satisfaction
of all rights pertaining to such shares of Company Common Stock.

         2.7  No  Fractional   Shares.   No  certificates  or  scrip  evidencing
fractional  shares of Parent Common Stock shall be issued upon the surrender for
exchange of Certificates  and such  fractional  share interests will not entitle
the owner  thereof to vote or to any rights of a stockholder  of the Parent.  In
lieu of fractional  shares of Parent Common Stock,  any fractional share will be
rounded up to the nearest whole share of Parent Common Stock.

         2.8 No Transfers of Stock After  Effective  Time.  After the  Effective
Time,  there shall be no transfers of any shares of Company  Common Stock on the
stock transfer books of the Surviving Corporation. If, after the Effective Time,
Certificates are presented to the Surviving Corporation, they shall be forwarded
to the Parent or Exchange Agent and exchanged in accordance with Section 2.4(b),
subject to applicable law in the case of Dissenting Shares.

         2.9 Restrictions on Transfer of New Parent Shares. The shares of Parent
Common  Stock that are being  issued in  connection  with the  Merger  (the "New
Parent Shares"), and any shares of Parent Common Stock issuable upon exercise or
conversion  of  options  or  warrants   issued   pursuant  to  Section   2.2(b),
(collectively with the New Parent Shares, the "New Parent Securities") are being
issued pursuant to an exemption from  registration  provided for in Section 4(2)
of the Securities Act and Rule 506 of Regulation D thereunder.  Each certificate
representing  any New  Parent  Securities  shall  be  subject  to stop  transfer
instructions  and shall bear all legends  required under all applicable  federal
and state securities laws.

                                       5
<PAGE>

         2.10 Certificate of Incorporation and Bylaws of Surviving Corporation.

                  (a) The Certificate of  Incorporation of the Company in effect
at the Effective Time shall be the Certificate of Incorporation of the Surviving
Corporation.

                  (b) The Bylaws of the Company in effect at the Effective  Time
shall be the Bylaws of the Surviving Corporation.

         2.11 Management of Surviving Corporation and Parent.

                  (a) One or more of the  directors  of the Company  immediately
prior  to the  Effective  Time  shall  be the  initial  directors  of  Surviving
Corporation and shall hold office from the Effective Time until their respective
successors are duly elected or appointed and qualified in the manner provided in
the Certificate of  Incorporation  or Bylaws of the Surviving  Corporation or as
otherwise provided by applicable law.

                  (b) The  officers  of the  Company  immediately  prior  to the
Effective Time shall be the initial  officers of the Surviving  Corporation  and
shall hold office from the Effective Time until their respective  successors are
duly  elected  or  appointed  and  qualified  in  the  manner  provided  in  the
Certificate  of  Incorporation  or Bylaws  of the  Surviving  Corporation  or as
otherwise provided by applicable law.

                  (c) At the Closing,  the officers and  directors of the Parent
shall  resign,  to be  replaced by the  officers  and  directors  of the Company
immediately  prior to the  Effective  Time,  provided  that at least one current
director of the Parent shall remain in office until at least ten (10) days after
the Company  makes the filing with the SEC  required by Rule 14f-1 (the  "Rule")
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act") and mails the statement required by said Rule to the Parent's shareholders
of record.  The new management  shall also cause the Parent to make such filings
as may be required or indicated under the Exchange Act; provided,  however,  the
resignation of the directors of the Parent and the  appointment of new directors
in accordance with the terms of this Section 2.11(c) shall accomplished  through
the filling of vacancies  in the Board of Directors of the Parent in  compliance
with the applicable provisions of the Delaware Corporation Law and the Bylaws of
the  Parent and  without  the vote (by  written  consent  or  otherwise)  of the
shareholders of the Parent.

         2.12 Solicitation of Consents by Company.

                  (a) Promptly  following the execution of this  Agreement,  the
Parent will cooperate with the Company in the preparation and distribution of an
information  statement/ offering memorandum (the "Information  Statement") which
will be used by the Company to solicit consents in favor of the Merger.

                  (b) The  Information  Statement will  incorporate  information
concerning  the Parent by including  but not limited to its most recent  filings
made by Parent  under  Section 13 of the  Securities  Exchange  Act of 1934,  as
amended  (the  "Exchange  Act") and such  information  required  of the  Company
necessary  in the  opinion  of  Parent's  counsel to comply  with  informational
requirements of Rule 502(b) of Regulation D.

                                       6
<PAGE>

                  (c) The Company will bear all costs and expenses in connection
with  the  preparation,  printing  and  mailing  of the  Information  Statement,
including without  limitation,  fees and expenses of its counsel,  its auditors,
(but  exclusing  the fees and  expenses  of  Parent's  counsel  and  auditors in
connection with preparing and reviewing the definitive Information Statement and
related  documents nor such fees and expenses  incurred in the  negotiation  and
documentation   of  this  Agreement  and  the  completion  of  the  transactions
contemplated hereunder).

         2.13  Taking  of  Necessary  Action,  Further  Assurances.  Each of the
Company,  the  Parent  and  Merger  Sub  shall  use  its or  their  commercially
reasonable efforts to take all such action as may be necessary or appropriate to
effectuate the Merger in accordance  with this Agreement as promptly as possible
and at the time  contemplated  by this  Agreement.  If,  at any time  after  the
Effective  Time,  any such further action is necessary or desirable to carry out
the purposes of this Agreement and to vest the Surviving  Corporation  with full
right, title and possession to all assets property, rights,  privileges,  powers
and  franchises of the Company and Merger Sub, the officers and directors of the
Company,  the Parent and Merger Sub immediately  prior to the Effective Time are
fully  authorized in the name of their  respective  corporations or otherwise to
take, and will take, all such lawful and necessary action.

         2.14 Stockholder Representative.  The holders of the outstanding shares
of the capital stock of the Company, by virtue of the approval of this Agreement
and the Merger,  will be deemed to have  irrevocably  constituted and appointed,
effective as of the Effective  Time,  Mark Basile  (together  with his permitted
successors,  the "Stockholder  Representative"),  as their true and lawful agent
and attorney-in-fact,  and the Stockholder  Representative,  by his execution of
this Agreement shall be deemed to have accepted such appointment,  to enter into
any  agreement  in  connection  with  the  transactions   contemplated  by  this
Agreement,  to  exercise  all or any of the  powers,  authority  and  discretion
conferred on him under any such agreement,  to waive any terms and conditions of
any such agreement  (other than the Merger  Consideration),  to give and receive
notices on their behalf, and to be their exclusive  representative  with respect
to any matter,  suit,  claim,  action or proceeding  arising with respect to any
transaction contemplated by any such agreement,  including,  without limitation,
the  assertion,  prosecution,  defense,  settlement  or compromise of any claim,
action or proceeding for which any Company Stockholder, Parent or the Merger Sub
may be entitled to indemnification and the Stockholder  Representative agrees to
act as, and to  undertake  the duties and  responsibilities  of,  such agent and
attorney-in-fact.  This power of  attorney is coupled  with an  interest  and is
irrevocable.  The Stockholder  Representative shall not be liable for any action
taken  or not  taken  by him or  her  in  his  or her  capacity  as  Stockholder
Representative  (i) with the consent of stockholders who, as of the date of this
Agreement,  own a majority in number of the outstanding shares of Company Stock,
or (ii)  in the  absence  of his  own  willful  misconduct.  If the  Stockholder
Representative  shall be  unable or  unwilling  to serve in such  capacity,  his
successor  shall be named by those  persons  holding a majority of the shares of
Company Stock  outstanding  immediately  prior to the  Effective  Time who shall
serve and exercise the powers of Stockholder  Representative  hereunder.  Solely
with  respect to any  actions  taken by the  Stockholder  Representative  in his
capacity as such,  the  Stockholder  Representative  shall have no  liability to
Parent or any of its affiliates except for claims based upon fraud.

                                       7
<PAGE>

         2.15  Company  Warrants.  At or prior to the  Effective  Time,  Parent,
Company and Merger Sub shall take all action  necessary to cause the  assumption
by Parent as of the Effective  Time of the warrants to purchase  Company  Common
Stock (the  "Outstanding  Company  Warrants").  Each of the Outstanding  Company
Warrants shall be converted without any action on the part of the holder thereof
into a warrant to purchase  shares of Parent  Common  Stock as of the  Effective
Time. The holder of the Outstanding Company Warrant shall be entitled to receive
upon the exercise  thereof 1.1306 shares of Parent's Common Stock for each share
of Company Common Stock subject to such warrant  determined  immediately  before
the Effective  Time. The exercise  price of each share of Parent's  Common Stock
subject to an Outstanding  Company Warrant shall be the exercise price per share
of Company common stock at which such warrant is exercisable  immediately before
the Effective Time. The assumption and  substitution of the Outstanding  Company
Warrants  as  provided  herein  shall  not give  the  holders  of such  warrants
additional  benefits which they did not have immediately  prior to the Effective
Time or relieve the holders of any  obligations  or  restrictions  applicable to
their  warrants.  Parent shall reserve out of its authorized but unissued shares
of Parents  Common  Stock  sufficient  shares to provide for the exercise of the
Outstanding Company Warrants.

         2.16 Exchange  Ratio.  The aggregate  number of shares of Parent Common
Stock (i) to be issued in the Merger in exchange for all  outstanding  shares of
Company  Common  Stock,  and (ii) to be reserved for issuance by Parent upon the
exercise of all Outstanding Company Warrants is 14,400,000 shares. The number of
shares of Parent  Common  Stock to be issued and  reserved  for  issuance in the
Merger will represent 90% of the issued and outstanding  shares of Parent Common
Stock  immediately  after the  Effective  Time.  The  number of shares of Parent
Common Stock to be issued and/or  reserved in the Merger may not be increased in
the event the Company issues additional  securities prior to the Effective Time.
In such event the  Exchange  Ratio  defined in Section  1.1(b) will be decreased
accordingly.

                                       8
<PAGE>

                                  ARTICLE III

                                     CLOSING

         3.1 Closing.  Subject to the provisions of this Agreement,  the closing
of the  transactions  contemplated by this Agreement (the "Closing")  shall take
place at the offices of Sommer & Schneider LLP, 595 Stewart  Avenue,  Suite 710,
Garden City, New York,  within two (2) Business Days after the date on which the
last of the  conditions  to Closing  set forth in  Article  VIII shall have been
satisfied  or  waived,  or at such  other  place  and on such  other  date as is
mutually  agreeable to Parent and the Company (the "Closing Date").  The Closing
will be effective as of the Effective Time.

         3.2 Closing Deliveries.  At the Closing, each of the Parties shall make
the  Closing  deliveries  required  of it  pursuant  to  Article  VIII  of  this
Agreement.

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         Except  as set  forth in the  disclosure  schedule  attached  hereto as
Exhibit B (the  "Company  Disclosure  Schedule"),  the  Company  represents  and
warrants  to the Parent that the  statements  contained  in this  Article IV are
true,  correct and complete as of the date of this Agreement (or if made as of a
specified  date,  as of such date) and will be true,  correct and complete as of
the Closing Date (or, if made as of a specified date, as of such date).

         4.1 Organization and Qualification.

                  (a) The  Company  is a  corporation  duly  organized,  validly
existing  and in good  standing  under the laws of the State of Delaware and has
the  requisite  corporate  power and authority to carry on its business as it is
now being  conducted.  There is no  pending  or  threatened  proceeding  for the
dissolution or liquidation of the Company.

                  (b) Except as set forth in the  Company  Disclosure  Schedule,
the  Company  (i) does not,  directly  or  indirectly,  own any  interest in any
corporation,  partnership,  joint venture,  limited liability company,  or other
Person and (ii) is not subject to any obligation or requirement to provide funds
to or to make any investment  (in the form of a loan,  capital  contribution  or
otherwise) in or to any Person.  For purposes of this Agreement,  "Person" shall
mean any individual,  sole proprietorship,  partnership,  joint venture,  trust,
unincorporated organization,  association, corporation, institution, government,
entity or government or any group comprised of one or more of the foregoing.

                  (c) The Company is duly  qualified  or licensed to do business
and is in good standing in each jurisdiction in which the nature of its business
or the properties  owned or leased by it makes such  qualification  or licensing
necessary,  except for any such jurisdiction  where the failure to so qualify or
be licensed, individually and in the aggregate for all such jurisdictions, would
not reasonably be expected to have a Material  Adverse  Effect.  For purposes of

                                       9
<PAGE>

this Agreement,  as to the Company,  "Material  Adverse Effect" means an action,
event or  occurrence  if it has, or could  reasonably  be  expected  to have,  a
material adverse effect on the capitalization, financial condition or results of
operations  of the Company.  Any item or event  susceptible  of  measurement  in
monetary  terms which,  when  considered  together with similar items or events,
does not  exceed  the  amount of  $10,000,  shall not be  considered  a Material
Adverse Effect.

                  (d) The  Company  has  provided  to the  Parent  complete  and
accurate copies of the Certificate of  Incorporation  and Bylaws of the Company,
as currently in effect,  and minutes and other records of the meetings and other
proceedings  of the Board of Directors  and  stockholders  of the  Company.  The
Company is not violation of any provisions of its  Certificate of  Incorporation
or Bylaws.

         4.2 Capitalization. The authorized capital stock of Company consists of
20,000,000 shares of Company Common Stock, and no shares of Preferred Stock (the
"Company  Preferred  Stock"),  of which 12,575,599  common shares are or will be
outstanding at the time of Closing. All issued and outstanding shares of Company
Common Stock are validly issued and outstanding,  fully paid and  non-assessable
and free of preemptive rights. Other than as set forth in the Company Disclosure
Schedule, (i) there are no shares of capital stock or other equity securities of
Company  outstanding and (ii) except for 161,000 warrants  exercisable at prices
between $0.75 and $1.00 per share there are other outstanding options, warrants,
subscription rights (including any preemptive rights), calls, or commitments, or
convertible  securities  of any  character  whatsoever to which the Company is a
party or is bound,  requiring  or which  could  require  the  issuance,  sale or
transfer  by the  Company of any shares of capital  stock of the  Company or any
securities  convertible  into or exchangeable  or exercisable  for, or rights to
purchase or otherwise acquire, any shares of capital stock of the Company. There
are no stock appreciation rights or similar rights relating to the Company.

         4.3 Authority.

                  (a)  The  Company  has  the  requisite   corporate  power  and
authority to enter into this Agreement,  to perform its  obligations  hereunder,
and to  consummate  the  transactions  contemplated  hereby.  The  execution and
delivery of this Agreement by the Company and the consummation by the Company of
the transactions contemplated thereby have been duly authorized by all necessary
corporate  action  on the  part  of the  Company,  subject  to  approval  by its
stockholders.  On the date of the execution of this Agreement,  the holders of a
majority of the  outstanding  shares of Company  Common Stock have approved this
Agreement and the merger, in writing.  This Agreement has been duly executed and
delivered by the Company and constitutes a legal,  valid and binding  obligation
of the Company, enforceable against it in accordance with its terms.

                  (b)  The  execution  and  delivery  by  the  Company  of  this
Agreement  does  not,  and the  consummation  of the  transactions  contemplated
thereby will not, (i) conflict  with, or result in a violation of, any provision
of bylaws or other charter  documents of the Company,  (ii) constitute or result
in a breach of or default (or an event  which with  notice or lapse of time,  or
both,  would  constitute  a  default)  under,  or result in the  termination  or
suspension of, or accelerate the  performance  required by, or result in a right
of  termination,  cancellation  or acceleration of any obligation or a loss of a
benefit  under,  any note,  bond,  mortgage,  indenture,  deed of trust,  lease,

                                       10
<PAGE>

permit,  concession,  franchise,  license,  agreement  or  other  instrument  or
obligation to which the Company is a party or to which the  properties or assets
of the Company are subject,  (iii) create any lien upon any of the properties or
assets of the Company, or (iv) constitute,  or result in, a violation of any law
applicable to the Company or any of the properties or assets of the Company.

                  (c) No consent,  approval,  order or authorization  of, notice
to,  registration or filing with any  governmental  authority or other Person is
required to be obtained or made by the Company in connection  with the execution
and delivery of this Agreement by the Company or the consummation by the Company
of the transactions contemplated by this Agreement, except for (i) filing of the
Certificate of Merger with the Delaware Secretary, and (ii) the filing of a Form
D and related state  securities  law notices in connection  with the issuance of
the Excluded Securities.

         4.4 Financial Statements.

                  (a) The Company  Disclosure  Schedule sets forth copies of the
audited  balance  sheets of the Company as of December 31, 2003 and December 31,
2004 (the  "Company  December  Balance  Sheet"),  and the audited  statements of
operations,  redeemable preferred stock and stockholders' deficit and cash flows
for each of the years ended  December 31, 2004 and  December  31, 2003,  and The
Company Financial Statements (including the related notes) have been prepared in
accordance  with  United  States  generally   accepted   accounting   principles
consistently  applied  ("GAAP")  during the periods  involved  (except as may be
indicated  therein or in the notes  thereto),  and present  fairly the financial
position of the Company as of the respective  dates set forth  therein,  and the
results  of the  Company's  operations  and its cash  flows  for the  respective
periods  set forth  therein in  accordance  with GAAP  (subject,  in case of any
unaudited interim financial statements, to normal year-end adjustments).

                  (b)  The  Company   maintains   accurate   books  and  records
reflecting its assets and liabilities and maintains proper and adequate internal
accounting  controls which provide  assurance that (i) transactions are executed
with management v authorization;  (ii) transactions are recorded as necessary to
permit preparation of the consolidated financial statements of the Parent and to
maintain  accountability for the Parent's assets;  (iii,) access to the Parent's
assets is permitted only in accordance with management's authorization; (iv) the
reporting of the Parent's  assets is compared  with  existing  assets at regular
intervals;  and (v)  account  notes  and other  receivables  and  inventory  are
recorded  accurately,  and proper and adequate  procedures  are  implemented  to
effect the collection thereof on a current and timely basis.

                  (c)  Except  as and  to the  extent  reflected,  disclosed  or
reserved  against  in the  Company  Financial  Statements  (including  the notes
thereto) or in the Company Disclosure Schedule,  the Company had no liabilities,
whether absolute,  accrued,  contingent or otherwise,  material to the business,
operations,  assets,  financial condition or prospects of the Company which were
required  by  GAAP  (consistently  applied)  to be  disclosed  in the  Company's
financial  statements as of December 31, 2004, or the notes thereto. The Company
has not incurred any  liabilities  except in the ordinary course of business and
consistent   with  past  practice,   except  as  related  to  the   transactions
contemplated by this Agreement or in the Company Disclosure Schedule.  Except as
listed in the Company's Disclosure Schedule, the Company has not entered into or

                                       11
<PAGE>

effected a  securitization  transaction or "off balance sheet  arrangement"  (as
defined in Item 203 of SEC's  Regulation  SD) since  January  1, 2003.  [Name of
Auditor] "Company Auditor"), which has expressed its opinion with respect to the
Company and financial statements  (including the related notes), is and has been
throughout the periods  covered by such financial  statements"  (x) a registered
public accounting firm (as defined in Section 2(a)(12) of the Sarbanes-Oxley Act
of 2002),  (y)  "independent"  with respect to the Company within the meaning of
Regulation  S-X and,  with respect to the Company,  and (z) in  compliance  with
subsections  (g) through (l) of Section 10A of the  Exchange Act and the related
Rules of the SEC and the Public Company Accounting  Oversight Board. The Company
Disclosure  Schedule  lists all  non-audit  services  performed by the Company's
Auditor for the Company and its subsidiaries since January 1, 2003.

                  (d) Except as set forth in the  Company  Disclosure  Schedule,
the Company has no loans or extensions  of credit in the form of personal  loans
outstanding  from or for the benefit of,  directly or indirectly,  any executive
officer or director of the Company (or someone in an equivalent capacity).

         4.5 Absence of Certain  Changes or Events.  Except as  disclosed in the
Company Disclosure  Schedule,  there has not been any material adverse change in
the  business,  operations,  assets or financial  condition of the Company since
December  31,  2004 and,  to the best of the  Company's  knowledge,  no facts or
condition  exists which the Company  believes will cause such a material adverse
change in the future.

         4.6  Litigation.  There are no legal  actions  (i)  pending  or, to the
knowledge of the  Company,  threatened  against the Company or the  transactions
contemplated  by this  Agreement  or (ii)  pending or, to the  knowledge  of the
Company,  threatened  against any current  employee,  officer or director of the
Company that,  in any way relates to the Company.  The Company is not subject to
any order, judgment, writ, injunction or decree of any governmental authority.

         4.7 Taxes.  The Company has timely  filed all  material tax returns and
reports  required to be filed by it (after giving effect to any filing extension
properly  granted by a governmental  entity having authority to do so) ("Company
Tax Return").  Each such Company Tax Return is true, correct and complete in all
material  respects.  The Company has paid, within the time and manner prescribed
by law, all material  taxes that are due and  payable.  To the  Knowledge of the
Company,  no Company  Tax Return is the subject of any  investigation,  audit or
other proceeding by any federal, state or local tax authority.

         4.8 Contracts.

                  (a) The Company is not in  violation or breach of any material
contract.  There does not exist any event or  condition  that,  after  notice or
lapse of time or both,  would constitute an event of default or breach under any
material  contract  on the  part of the  Company  or,  to the  knowledge  of the
Company, any other party thereto or would permit the modification,  cancellation
or  termination  of any material  contract or result in the creation of any lien
upon, or any person  acquiring any right to acquire,  any assets of the Company.
The Company has not received in writing any claim or threat that the Company has
breached any of the terms and conditions of any material contract.

                                       12
<PAGE>

                  (b) The  consent  of, or the  delivery  of notice to or filing
with,  any party to a material  contract is not required for the  execution  and
delivery  by  the  Company  of  this  Agreement  or  the   consummation  of  the
transactions contemplated under the Agreement.

         4.9  Employee  Benefit  Plans.  Except  as set  forth  in  the  Company
Disclosure  Schedule,  the  Company  does  not  maintain  or  contribute  to any
"employee  pension benefit plan" (the "Company Pension Plans"),  as such term is
defined in Section 3 of the Employee  Retirement Income Security Act of 1974, as
amended  ("ERISA"),  "employee welfare benefit plan," as such term is defined in
Section  3  of  ERISA,   stock  option  plan,  stock  purchase  plan,   deferred
compensation  plan,  cafeteria  plan,  severance  plan,  bonus plan,  employment
agreement or other similar  plan,  program or  arrangement.  The Company has not
contributed to, or been required to contribute to, any "Multiemployer  Plan", as
such term is defined in Section 3(37) of ERISA.

         4.10 Compliance With  Applicable Law. To the Company's  knowledge,  the
Company has complied in all material respects with all applicable federal, state
and local  laws and  regulations  to which it or its  business  may be  subject,
except  where the  failure to so comply did not have and would not be a Material
Adverse Effect, and no action, suit, proceeding, hearing, investigation, charge,
complaint,  claim,  demand or notice has been filed or commenced  against or, to
the Company's  knowledge,  has been threatened  against the Company alleging any
failure to so comply.

         4.11 Intellectual Property.

                  (a) The  Company  owns,  or has the right to use  pursuant  to
valid license,  sublicense,  agreement, or permission, all intellectual property
rights used in or  necessary  for the  operation  of the  Company's  business as
presently conducted. Except as set forth in the Company Disclosure Schedule, (i)
such  intellectual   property  rights  are  owned  free  and  clear  of  royalty
obligations,  liens and  encumbrances,  (ii) the  execution and delivery of this
Agreement and the closing of the transaction  contemplated hereby will not alter
or impair any such rights,  (iii) the use of all such intellectual  property the
Company does not  infringe or violate the  intellectual  property  rights of any
person or entity,  and (iv) the Company has not granted any person or entity any
rights,  pursuant  to  written  license  agreement  or  otherwise,  to use  such
intellectual property. The Company has taken, and shall continue to take through
the Closing  Date,  all  necessary  action to maintain  and protect each item of
intellectual property that it owns or uses.

                  (b)  The  Company  Disclosure  Schedule  identifies  (i)  each
patent, trademark,  trade name, service name or copyright with respect to any of
the  Company's   intellectual   property,   all  applications  and  registration
statements  therefor and renewals  thereof (and sets forth  correct and complete
copies of all such patents, registrations and applications (as amended to date))
and (ii) all  intellectual  property  that the Company uses pursuant to license,
sublicense,  agreement, or permission,  all of which are valid and in full force
and effect,  and the execution and delivery of this Agreement and the closing of
the transaction contemplated hereby will not alter or impair any such rights.

                  (c) The  Company has at all times used  reasonable  efforts to
protect all trade secrets related to its intellectual property.

                                       13
<PAGE>

         4.12  Properties.  Except  as  set  forth  in  the  Company  Disclosure
Schedule,  the Company has good and marketable  title to all material assets and
properties,  whether real or  personal,  tangible or  intangible,  listed on the
Company December Balance Sheet or the Company Disclosure Schedule, subject to no
encumbrances,  liens, mortgages, security interests or pledges, except (i) those
items that secure  liabilities  that are  reflected in said Balance Sheet or the
note  thereto or that  secure  liabilities  incurred in the  ordinary  course of
business after the date of the Company  December  Balance Sheet,  (ii) statutory
liens for amounts not yet delinquent or which are being  contested in good faith
and (iii) such title imperfections that are not in the aggregate material to the
business,  operations,  assets, financial condition or prospects of the Company.
Except as  affected  by the  transactions  contemplated  hereby,  the Company as
lessee has the right under valid and subsisting  leases to occupy,  use, possess
and control all real property listed on the Company  Disclosure  Schedule in all
material respects as presently occupied,  used,  possessed and controlled by the
Company.

         4.13 Insurance.  The business  operations and all insurable  properties
and assets of the Company are insured for their benefit against all risks which,
in the reasonable  judgment of the management of the Company,  should be insured
against (including,  without  limitation,  products liability for human clinical
trials,  professional  liability  for insureds and  employees  and  professional
liability  for clinical  sites and clinical  investigators),  in each case under
policies  or bonds  issued by  insurers of  recognized  responsibility,  in such
amounts  with such  deductibles  and against such risks and losses as are in the
opinion of the management of the Company adequate for the business engaged in by
the Company.  The Company has not received any notice of  cancellation or notice
of a material amendment of any such insurance policy or bond.

         4.14  Information   Statement/Offering   Memorandum.   The  information
contained  in the  information  statement/offering  memorandum  (as  amended  or
supplemented,  the  "Information  Statement"),  together  with the  exhibits and
attachments thereto relating to the Company and the Company  shareholders,  sent
to the  stockholders of the Company in connection  with the Company  Stockholder
Consent to approve the Merger,  which information included the recommendation of
the Board of  Directors  of the Company in favor of the Merger,  did not, on the
date the Information  Statement (or any amendment thereof or supplement thereto)
was first mailed or otherwise  delivered  to any Company  Stockholder  or at the
time of effectiveness of the Company Stockholder Consent,  contain any statement
that,  at such time and in light of the  circumstances  under  which it shall be
made, is false or misleading with respect to any material fact, or omit to state
any material  fact  necessary in order to make the  statements  made therein not
false or misleading; or omit to state any material fact necessary to correct any
statement  in any earlier  communication  with  respect to the  solicitation  of
consents  for  the  Company  Stockholder  Consent  which  has  become  false  or
misleading.  The Company makes no other  representation or warranty with respect
to the information included in the Information Statement.

         4.15  Disclosure.  The  representations  and  warranties of the Company
herein,  or  in  any  document,  exhibit,  statement,  certificate  or  schedule
furnished  by or on  behalf  of  Company  to the  Parent  as  required  by  this
Agreement,  do not  contain  and will not  contain  any  untrue  statement  of a
material  fact and do not omit and  will  not omit to state  any  material  fact
necessary  in order to make the  statements  herein or therein,  in light of the
circumstances under which they were made, not misleading.

                                       14
<PAGE>

                                   ARTICLE V

                  REPRESENTATIONS AND WARRANTIES OF THE PARENT

         Except  as set  forth in the  disclosure  schedule  attached  hereto as
Exhibit C (the "Parent Disclosure Schedule"), the Parent represents and warrants
to the Company that the statements contained in this Article V are true, correct
and  complete  as of the date of this  Agreement  (or if made as of a  specified
date, as of such date) and will be true,  correct and complete as of the Closing
Date (or, if made as of a specified  date, as of such date).  Unless the context
otherwise  requires,  all  references to the Parent  contained in this Article V
will be read to include the Parent  together  with any of its direct or indirect
subsidiaries (including Merger Sub).

         5.1 Organization and Qualification.

                  (a)  The  Parent  is a  corporation  duly  organized,  validly
existing  and in good  standing  under the laws of the state of Delaware and has
the  requisite  corporate  power and authority to carry on its business as it is
now being conducted.

                  (b) Merger Sub will be a corporation  duly organized,  validly
existing and in good  standing  under the laws of the State of Delaware.  Merger
Sub will be formed  solely for the  purpose  of the Merger and has no  business,
assets,  liabilities,  contracts or commitments  other than as set forth in this
Agreement.  There is no pending or threatened  proceeding for the dissolution or
liquidation of Merger Sub.

                  (c) Except for Merger Sub and  MarketShare  Recovery,  Inc., a
New York corporation,  the Parent (i) does not, directly or indirectly,  own any
interest in any  corporation,  partnership,  joint  venture,  limited  liability
company,  or other Person  except for two  subsidiaries  described in the Parent
Disclosure  Schedule that were formed for the sole purpose of a transaction that
did not materialized and are in the process of being dissolved,  and (ii) is not
subject to any  obligation  or  requirement  to provide  funds to or to make any
investment (in the form of a loan,  capital  contribution or otherwise) in or to
any Person.

                  (d) The Parent is duly  qualified  or  licensed to do business
and is in good standing in each jurisdiction in which the nature of its business
or the properties  owned or leased by it makes such  qualification  or licensing
necessary,  except for any such jurisdiction  where the failure to so qualify or
be licensed, individually and in the aggregate for all such jurisdictions, would
not reasonably be expected to have a Material Adverse Effect.

                  (e) The  Parent  will  provide  to the  Company  complete  and
accurate copies of the Certificate of Incorporation and Bylaws of the Parent and
Merger Sub, as currently in effect on the Effective  Date, and minutes and other
records of the meetings  and other  proceedings  of the Board of  Directors  and
shareholders  of the Parent.  Neither the Parent nor Merger Sub is or will be in
violation of any provisions of its Certificate of Incorporation or Bylaws.

         5.2 Capitalization.

                  (a) The authorized capital stock of the Parent consists of (i)
50,000,000  shares of Parent Common Stock, and (ii) 10,000,000  shares of Parent
Preferred Stock. The issued and outstanding capital stock of the Parent consists

                                       15
<PAGE>

entirely of (i)  3,808,521  shares of Parent  Common Stock and (ii) no shares of
Parent Preferred Stock. All issued and outstanding shares of Parent Common Stock
are validly issued and  outstanding,  fully paid and  nonassessable  and free of
preemptive  rights.  There  are no  shares  of  capital  stock or  other  equity
securities  of the Parent  outstanding  and no  outstanding  options,  warrants,
subscription rights (including any preemptive rights), calls, or commitments, or
convertible notes or instruments of any character whatsoever to which the Parent
is a party or is bound,  requiring or which could require the issuance,  sale or
transfer  by the  Parent of any  shares of  capital  stock of the  Parent or any
securities  convertible  into or exchangeable  or exercisable  for, or rights to
purchase or otherwise acquire,  any shares of capital stock of the Parent. There
are no stock appreciation rights or similar rights relating to the Parent.

                  (b) The authorized capital of Merger Sub will consist of 1,000
shares of common stock, $.01 par value per share, of which all 1,000 shares will
be issued and  outstanding and held by the Parent.  Other than such  outstanding
shares,  there will be no shares of capital stock or other equity  securities of
Merger Sub outstanding and no outstanding options, warrants, subscription rights
(including any preemptive rights),  calls, or commitments,  or convertible notes
or instruments of any character  whatsoever to which the Parent or Merger Sub is
a party or is bound,  requiring  or which could  require the  issuance,  sale or
transfer  by the Parent or Merger  Sub of any shares of capital  stock of Merger
Sub, any securities  convertible  into or  exchangeable  or exercisable  for, or
rights to purchase or otherwise  acquire,  any shares of capital stock of Merger
Sub. There are no stock appreciation rights or similar rights relating to Merger
Sub.

                  (c)  Upon  completion  of the  Merger  and the  "Cancellation"
defined in Section 7.9(b),  below, the outstanding shares of Parent Common Stock
shall be held as follows (excluding (X) any shares of Parent Common Stock issued
to holders of Company  Common Stock and  exchanged  for Parent Common Stock as a
result of the Merger and [(X) shares of Parent  common stock  issuable  upon the
exercise of options to purchase  Company shares assumed by Parent,  plus (Y) any
shares of Parent  Common Stock  issued or issuable to placement  agents or other
advisers  retained by the Company in connection  with the Merger or the offering
contemplated by the PPM)]:

                           (i) 1,600,000 held by the  pre-existing  shareholders
of the Parent  (including  300,000  shares  subject to the  "Escrow"  defined in
Section 7.9(b)), below; and

                           (ii)  14,400,000  shares  (issued  in the  Merger  to
Company Shareholders).

                  (b)  Upon  completion  of the  Merger,  none  of the  Parent's
Preferred  Stock  shall  be have  been  issued  nor  shall  any such  shares  be
outstanding.

                  (c)  Upon  completion  of  the  Merger,  and  other  than  any
outstanding  options,  warrants or convertible  securities issued by the Company
and converted into options,  warrants or convertible securities of the Parent as
a result of the Merger, there are no outstanding options, warrants, subscription
rights (including any preemptive rights), calls, or commitments,  or convertible
notes or instruments of any character  whatsoever to which the Parent is a party
or is bound, requiring or which could require the issuance,  sale or transfer by
the  Parent  of any  shares of  capital  stock of the  Parent or any  securities

                                       16
<PAGE>

convertible  into or exchangeable  or exercisable  for, or rights to purchase or
otherwise acquire, any shares of capital stock of the Parent.

                  (d) All of the  shares  of  Parent  Common  Stock  issued  and
outstanding   immediately  prior  to  the  Effective  Time,   relying  upon  the
representations  of the Company herein and the  representation  of the Company's
Stockholders contained in the Letter of Transmittal annexed hereto as Exhibit A,
(i) have been issued in compliance  with  Securities  Act and  applicable  state
securities  laws in reliance on exemptions from  registration  or  qualification
thereunder  and (ii) were issued and are  currently  held by persons who are not
deemed "underwriters" under applicable federal securities laws.

                  (e) The list of all  record  holders of Parent  Common  Stock,
Parent  Preferred Stock included in the Parent  Disclosure  Schedule is complete
and correct.

         5.3 Authority.

                  (a) Each of the  Parent  and  Merger  Sub has or will have the
requisite corporate power and authority to enter into this Agreement, to perform
its  obligations  thereunder,  and to consummate the  transactions  contemplated
thereby.  The execution and delivery of this  Agreement by the Parent and Merger
Sub and the  consummation  by the  Parent  and  Merger  Sub of the  transactions
contemplated thereby have been duly authorized by all necessary corporate action
on the part of the Parent and Merger Sub. This  Agreement has been duly executed
and  delivered  by the  Parent  and by  Parent  on  behalf  of  Merger  Sub  and
constitutes a legal,  valid and binding obligation of the Parent and Merger Sub,
enforceable  against  each of them in  accordance  with  its  terms.  No vote or
approval of the  shareholders  of the Parent is required in connection  with the
Merger.

                  (b) The execution and delivery by the Parent and Merger Sub of
this Agreement does not, and the consummation of the  transactions  contemplated
thereby will not, (i) conflict  with, or result in a violation of, any provision
of  bylaws  or other  charter  documents  of the  Parent  or  Merger  Sub,  (ii)
constitute or result in a breach of or default (or an event which with notice or
lapse of time,  or both,  would  constitute a default)  under,  or result in the
termination  or suspension  of, or accelerate  the  performance  required by, or
result in a right of termination, cancellation or acceleration of any obligation
or a loss of a benefit  under,  any note,  bond,  mortgage,  indenture,  deed of
trust,  lease,  permit,  concession,  franchise,  license,  agreement  or  other
instrument  or  obligation  to which  the  Parent  is a party  or to  which  the
properties  or assets of the Parent or Merger Sub are subject,  (iii) create any
lien upon any of the  properties  or assets of the Parent or Merger Sub, or (iv)
constitute,  or result in, a violation  of any law  applicable  to the Parent or
Merger Sub or any of the properties or assets of either of them.

                  (c) No consent,  approval,  order or authorization  of, notice
to,  registration or filing with any  governmental  authority or other Person is
necessary in connection with the execution and delivery of this Agreement by the
Parent and Merger  Sub or the  consummation  by the Parent and Merger Sub of the
transactions  contemplated  by this  Agreement,  except  for (i)  filing  of the
Certificate of Merger with the Delaware  Secretary,  (ii) the filing of a Form D
and related  state  securities  law notices in  connection  with the issuance of
Parent  Common  Stock in  connection  with the  Merger and (iii) the filing of a

                                       17
<PAGE>

current  report on Form 8-K with the  Securities  and Exchange  Commission  (the
"SEC") announcing completion of the Merger.

         5.4 SEC Filings; Financial Statements.

                  (a) The Parent has filed (and shall continue to file) and made
available  to  Company  all  forms,  reports,  schedules,  statements  and other
documents  required  to be filed by the Parent with the SEC  (collectively,  the
"Parent SEC Reports"). The Parent SEC Reports (i) at the time filed, complied in
all material respects with the applicable requirements of the Securities Act and
the  Exchange  Act,  as the case may be,  and (ii) did not at the time they were
filed  (or if  amended  or  superseded  by a  filing  prior  to the date of this
Agreement,  then on the date of such filing)  contain any untrue  statement of a
material  fact or omit to state a material  fact  required  to be stated in such
Parent SEC Reports or necessary in order to make the  statements  in such Parent
SEC  Reports,  in light of the  circumstances  under  which they were made,  not
misleading.  None of the  Parent's  subsidiaries  is required to file any forms,
reports,  schedules,  statements or other  documents with the SEC. The financial
records  of the  Parent  have  been  prepared  in  compliance  with SEC rules on
internal financial controls.

                  (b) Each of the financial statements (including, in each case,
any related  notes),  contained in the Parent SEC Reports,  including any Parent
SEC Reports filed after the date of this Agreement until the Closing,  complied,
as of its respective  filing date, in all material  respects with all applicable
accounting  requirements and the published rules and regulations of the SEC with
respect  thereto,  was prepared in accordance  with GAAP applied on a consistent
basis  throughout  the periods  involved and fairly  presented the  consolidated
financial  position of the Parent as at the respective  dates and the results of
its  operations  and cash  flows  for the  periods  indicated,  except  that the
unaudited  interim  financial  statements  were or are  subject  to  normal  and
recurring year-end adjustments which were not or are not expected to be material
in amount and comply in all  material  respects  with the  applicable  rules and
regulations of the SEC.

                  (c) Between  December 31, 2004 and the date hereof,  except as
disclosed  in the  Parent  SEC  Reports,  there  has not been any  change in the
business,  operations  or  financial  condition  of the  Parent  that has had or
reasonably would be expected to have a material adverse effect on the Parent.

                  (d) The Parent and  Merger  Sub do not have any  liability  or
obligation (absolute, accrued, contingent or otherwise) other than those arising
under this Agreement and those set forth in the Parent Disclosure Schedule.

         5.5 Brokers. No broker,  finder or investment banker is entitled to any
brokerage,  finder's or other fee or commission in connection with the Merger or
the other  transactions  contemplated by this Agreement based upon  arrangements
made by or on behalf of the Parent, Merger Sub or any shareholder of the Parent.

         5.6 Ownership of Merger Sub, No Prior Activities. As of the date hereof
and as of the Effective Time, except for obligations or liabilities  incurred in
connection  with  its   incorporation   or  organization  and  the  transactions
contemplated  by this  Agreement  and  except for this  Agreement  and any other

                                       18
<PAGE>

agreements or arrangements  contemplated  hereby or thereby,  Merger Sub has not
and  will  not  have  incurred,  directly  or  indirectly,  any  obligations  or
liabilities or engaged in any business activities of any type or kind whatsoever
or entered into any agreements or arrangements with any person.

         5.7 Litigation.  Except as set forth on the Parent Disclosure Schedule,
there are no legal  actions  (i)  pending  or, to the  knowledge  of the Parent,
threatened  against the Parent,  Merger Sub or the transactions  contemplated by
this  Agreement or (ii) pending or, to the  knowledge of the Parent,  threatened
against any current employee, officer or director of the Parent that, in any way
relates to the Parent. The Parent is not subject to any order,  judgment,  writ,
injunction or decree of any governmental authority.

         5.8 Taxes.  The Parent has timely  filed all  material  tax returns and
reports  required to be filed by it (after giving effect to any filing extension
properly  granted by a governmental  entity having  authority to do so) ("Parent
Tax Return").  Each such Parent Tax Return is true,  correct and complete in all
material respects. The Parent has paid, within the time and manner prescribed by
law,  all material  taxes that are due and payable.  No Parent Tax Return is the
subject of any investigation, audit or other proceeding by any federal, state or
local tax authority.

         5.9 No Employees;  Labor Matters. Neither the Parent nor Merger Sub has
any  employees or  consultants.  No unfair labor  practice,  or race,  sex, age,
disability  or  other  discrimination,  complaint  is  pending,  nor is any such
complaint, to the knowledge of the Parent,  threatened against the Parent before
the National Labor Relations Board, Equal Employment  Opportunity  Commission or
any other  governmental  authority,  and no  grievance  is  pending,  nor is any
grievance,  to the  knowledge  of the Parent,  threatened  against the Parent or
Merger Sub.

         5.10  Benefit  Plans.  Neither  the  Parent  nor the Merger Sub has not
adopted  nor is it  party  to  any  bonus,  pension,  profit  sharing,  deferred
compensation,  incentive compensation,  stock ownership,  stock purchase,  stock
option,  phantom  stock,  retirement,  vacation,  severance,  disability,  death
benefit, hospitalization, medical or other employee benefit plan, arrangement or
understanding (whether or not legally binding) providing benefits to any current
or former employee,  officer or director of the Parent or any person  affiliated
with the Parent under  Section  414(b),  (c),  (m) or (o) of the Code;  provided
except to the extent permitted in Section 6.1(b)(i) hereof.

         5.11 Contracts and Commitments.

                  (a)  Except  for  this   Agreement  and  the   agreements  and
transactions specifically contemplated by this Agreement, neither the Parent nor
Merger Sub is a party to or subject to, nor plans to enter into:

                           (i) any agreement or other commitments  requiring any
payments or performance of services by the Parent or Merger Sub;

                           (ii) any  agreement or other  commitments  containing
covenants  limiting  the  freedom  of the Parent or Merger Sub to compete in any
line of business or with any Person or in any  geographic  location or to use or
disclose any information in their possession;

                                       19
<PAGE>

                           (iii) any license agreement (as licensor or licensee)
or royalty agreement;

                           (iv) any  agreement  of  indemnification,  other than
indemnification rights granted in the Bylaws of the Parent;

                           (v) any  agreement or  undertaking  pursuant to which
the Parent is: (A) borrowing or is entitled to borrow any money;  (B) lending or
has  committed  itself to lend any  money;  or (C) a  guarantor  or surety  with
respect to the obligations of any Person;

                           (vi) any powers of attorney granted by the Parent;

                           (vii) any leases of real or personal property; and

                           (viii) any  agreement  or other  obligation  to sell,
transfer, assign, hypothecate or exchange any or all of the assets of the Parent
or the Merger Sub.

                  (b) Except as set forth in the Parent Disclosure Schedule, the
Parent is not in violation or breach of any  contract.  There does not exist any
event or condition that, after notice or lapse of time or both, would constitute
an event of default or breach  under any  contract on the part of the Parent or,
to the  knowledge  of the Parent,  any other party  thereto or would  permit the
modification,  cancellation  or  termination  of any  contract  or result in the
creation of any lien upon,  or any person  acquiring  any right to acquire,  any
assets of the Parent or Merger Sub.  The Parent has not  received in writing any
claim or threat  that  Parent or Merger  Sub has  breached  any of the terms and
conditions of any contract.

                  (c) The  consent  of, or the  delivery  of notice to or filing
with,  any party to a contract is not required for the execution and delivery by
the  Parent  of  this  Agreement  or  the   consummation  of  the   transactions
contemplated under the Agreement.

         5.12 Books and  Records.  The books and records of the Parent have been
maintained and preserved in accordance with applicable  regulations and business
practices. The corporate minutes books of the Parent and Merger Sub are complete
and correct and the minutes and consents  contained therein  accurately  reflect
actions taken at a duly called and held meeting or by sufficient consent without
a meeting.  All actions by the Parent and Merger Sub which required  director or
shareholder approval are reflected on the respective corporate minute books.

         5.13  Assets.  The  Parent  has  no  fixtures,  furniture,   equipment,
inventory, intellectual property, accounts receivable or other assets other than
cash and its interest in this Agreement.

         5.14 Compliance.  To the Parent's knowledge, the Parent has complied in
all material  respects  with all  applicable  federal,  state and local laws and
regulations  to which it or its  business may be subject,  and no action,  suit,
proceeding, hearing,  investigation,  charge, complaint, claim, demand or notice
has been filed or  commenced  against or, to the  Parent's  knowledge,  has been
threatened against the Parent alleging any failure to so comply.

         5.15 Disclosure.  The  representations and warranties of the Parent and
Merger Sub  herein,  or in any  document,  exhibit,  statement,  certificate  or
schedule  furnished  by or on behalf of the  Parent or Merger  Sub to Company as

                                       20
<PAGE>

required  by this  Agreement,  do not  contain  and will not  contain any untrue
statement  of a  material  fact and do not  omit and will not omit to state  any
material fact  necessary in order to make the statements  herein or therein,  in
light of the circumstances under which they were made, not misleading.

                                   ARTICLE VI

                              PRE-CLOSING COVENANTS

         6.1 Operation of the Parent.

                  (a) Except as specifically  provided in this Agreement between
the date of this Agreement and the Effective Time, the Parent shall:

                           (i)  maintain its books of account and records in the
usual and ordinary manner, and in conformity with its past practices;

                           (ii) other than making settlement agreements with its
auditors and former counsel,  pay accounts  payable and other  obligations  when
they become due and payable in the ordinary  course of business  consistent with
past practices except to the extent disputed in good faith;

                           (iii) conduct its  business,  if any, in the ordinary
course consistent with past practices, or as required by this Agreement;

                           (iv) pay all taxes  when due and file all  Parent Tax
Returns on or before the due date therefor except to the extent disputed in good
faith;

                           (v)  make  appropriate  provisions  in its  books  of
account  and records for taxes  relating  to its  operations  during such period
(regardless  of whether  such taxes are required to be reflected in a tax return
having a due date on or prior to the Closing Date);

                           (vi)  withhold all taxes  required to be withheld and
remitted by or on behalf of the Parent in connection  with amounts paid or owing
to any  Parent  personnel  or other  person,  and pay such  taxes to the  proper
governmental authority or set aside such taxes in accounts for such purpose;

                           (vii) make all  required  filings  on a timely  basis
with the SEC or any other state,  federal or local regulatory  body,  including,
without limitation, making all filings under the Securities Act and the Exchange
Act, on a timely  basis so as to  maintain  the  Parent's  status as a reporting
company in good standing under the Exchange Act;

                           (viii) comply with the listing  requirements  of, and
take all steps  reasonably  necessary to maintain  Parent's  listing on, the OTC
Bulletin Board; and

                           (ix) pay all fees and  expenses  due to the  Parent's
Transfer Agent.

                                       21
<PAGE>

                  (b) Without the prior written consent of the Company,  between
the  date of this  Agreement  and the  Effective  Time (or  termination  of this
Agreement), neither the Parent nor Merger Sub shall:

                           (i) issue any capital  stock (except for the issuance
of Parent Common Stock or common stock of Merger Sub  specifically  contemplated
by this Agreement) or any options,  warrants or other rights to subscribe for or
purchase any capital stock or any securities convertible into or exchangeable or
exercisable for, or rights to purchase or otherwise  acquire,  any shares of the
capital stock of the Parent or Merger Sub;

                           (ii) directly or indirectly redeem, purchase, sell or
otherwise  acquire  any  capital  stock of the  Parent,  except as  specifically
contemplated by this Agreement;

                           (iii) hire any employee or retain any consultant;

                           (iv)  borrow or agree to borrow any funds,  incur any
indebtedness  or directly or  indirectly  guarantee  or agree to  guarantee  the
obligations  of  others,  or draw or borrow  on any lines of credit  that may be
available to the Parent or Parent Sub;

                           (v)  except  as  specifically  contemplated  by  this
Agreement,  enter into any oral or written agreement,  contract,  lease or other
commitment;

                           (vi) place or allow to be placed a lien on any of the
assets of the Parent or Merger Sub;

                           (vii)  except as  specifically  contemplated  by this
Agreement,  cancel,  discount or otherwise  compromise any indebtedness owing to
the  Parent or any claims  which the  Parent may  possess or waive any rights of
material value;

                           (viii) sell or otherwise dispose of any assets of the
Parent,  except  in  the  ordinary  course  of  business  consistent  with  past
practices;

                           (ix)  commit any act or omit to do any act which will
cause a breach of this  Agreement  or any other  material  agreement,  contract,
lease or commitment;

                           (x)  violate  any  law  or   governmental   approval,
including, without limitation any federal or state securities laws;

                           (xi) make any loan, advance,  distribution or payment
of any type or to any Person  other than as  specifically  contemplated  by this
Agreement;

                           (xii)  amend  its  Certificate  of  Incorporation  or
Bylaws;

                           (xiii) merge or  consolidate  with, or agree to merge
or  consolidate  with,  or  purchase  substantially  all of the  assets  of,  or
otherwise acquire any business or any Person or division thereof;

                                       22
<PAGE>

                           (xiv) make any tax  election or settle or  compromise
any tax liability other than in the ordinary course of business  consistent with
past practices;

                           (xv) lease or  purchase or agree to lease or purchase
any assets or properties;

                           (xvi)  take any  action  or series  of  actions  that
results  in or is likely to result in (i) the  delisting  of the  Parent  Common
Stock from  trading on the OTC  Bulletin  Board,  or (ii) the Parent  losing its
status as a reporting company in good standing under the Exchange Act; or

                           (xvii) enter into any  negotiations,  commitments  or
agreements that would result in undertaking any of the actions specified in this
Subsection 6.1(b).

         6.2 Operation of Company.

                  (a) Except as specifically provided in this Agreement, between
the date of this Agreement and the Effective Time, the Company shall:

                           (i)  maintain its books of account and records in the
usual and ordinary manner, and in conformity with its past practices;

                           (ii) pay accounts payable and other  obligations when
they become due and payable in the ordinary  course of business  consistent with
past practices except to the extent disputed in good faith;

                           (iii) conduct its  business,  if any, in the ordinary
course consistent with past practices[, or as required by this Agreement;

                           (iv) pay all taxes when due and file all  Company Tax
Returns on or before the due date therefor except to the extent disputed in good
faith;

                           (v)  make  appropriate  provisions  in its  books  of
account  and records for taxes  relating  to its  operations  during such period
(regardless  of whether  such taxes are required to be reflected in a tax return
having a due date on or prior to the Closing Date); and

                           (vi)  withhold all taxes  required to be withheld and
remitted by or on behalf of the Company in connection with amounts paid or owing
to any  Company  personnel  or other  person,  and pay such  taxes to the proper
governmental authority or set aside such taxes in accounts for such purpose.

                  (b) Without the prior written  consent of the Parent,  between
the  date of this  Agreement  and the  Effective  Time (or  termination  of this
Agreement), the Company shall not:

                           (i) except as contemplated  by this Agreement,  issue
any capital  stock or any options,  warrants or other rights to subscribe for or
purchase any capital stock or any securities convertible into or exchangeable or
exercisable for, or rights to purchase or otherwise  acquire,  any shares of the
capital stock of the Company;

                                       23
<PAGE>

                           (ii) directly or indirectly redeem, purchase, sell or
otherwise  acquire  any capital  stock of the  Company,  except as  specifically
contemplated by this Agreement;

                           (iii) grant any increase in the compensation payable,
or to  become  payable,  to any  Company  personnel  or enter  into  any  bonus,
insurance, pension, severance, change-in-control or other benefit plan, payment,
agreement or arrangement for or with any Company personnel, except as consistent
with past  practices in the ordinary  course of business or in  accordance  with
prior recommendations of the Compensation Committee of the Company;

                           (iv)  except  as  may  be   required  or   reasonably
necessary in order to complete the transactions  contemplated by this Agreement,
agree to borrow any funds,  incur any  indebtedness  or directly  or  indirectly
guarantee or agree to guarantee the obligations of others,  or draw or borrow on
any lines of credit that may be available to Company;

                           (v)  place or allow to be placed a lien on any of the
assets of the Company;

                           (vi) sell or  otherwise  dispose of any assets of the
Company,  except  in the  ordinary  course  of  business  consistent  with  past
practices;

                           (vii) commit any act or omit to do any act which will
cause a breach of this  Agreement  or any other  material  agreement,  contract,
lease or commitment to which the Company is party;

                           (viii)  violate  any  law or  governmental  approval,
including, without limitation any federal or state securities laws;

                           (ix) make any loan, advance,  distribution or payment
of any type or to any Person other than as contemplated by this Agreement;

                           (x) amend its Certificate of Incorporation or Bylaws;

                           (xi)  except  as   contemplated  by  this  Agreement,
consolidate   with,  or  agree  to  merge  or  consolidate   with,  or  purchase
substantially  all of the assets of, or  otherwise  acquire any  business or any
Person or division thereof;

                           (xii) make any tax  election or settle or  compromise
any tax liability other than in the ordinary course of business  consistent with
past practices;

                           (xiii)  lease  or  purchase  or  agree  to  lease  or
purchase any assets or properties; or

                           (xiv)  enter into any  negotiations,  commitments  or
agreements that would result in undertaking any of the actions specified in this
Subsection 6.2(b).

                                       24
<PAGE>

                                  ARTICLE VII

                              ADDITIONAL AGREEMENTS

         7.1 Access to Information.

                  (a) From the date hereof to the  Effective  Time,  the Company
shall   afford,   and  shall   cause   its   officers,   directors,   employees,
representatives  and  agents  to  afford,  to the  Parent  and to the  officers,
employees and agents of the Parent  reasonable  access  during  normal  business
hours to the Company's officers, employees, agents, representatives, properties,
books,  records and  contracts,  and shall furnish to the Parent all  financial,
operating  and other data and  information  as the  Parent,  through its agents,
officers, employees or other representatives, may reasonably request.

                  (b) From the date  hereof to the  Effective  Time,  the Parent
shall   afford,   and  shall   cause   its   officers,   directors,   employees,
representatives  and  agents to  afford,  to the  Company  and to the  officers,
employees and agents of the Company  reasonable  access  during normal  business
hours to the Parent's officers, employees, agents, representatives,  properties,
books,  records and  contracts,  and shall furnish to the Company all financial,
operating  and other data and  information  as the Company,  through its agents,
officers, employees or other representatives, may reasonably request.

                  (c) No  investigation  pursuant to Section 7.1(a) shall affect
any representations or warranties of the Parties herein or the conditions to the
obligations of the Parties.

         7.2  Expenses  and  Taxes.  Except to the  extent  otherwise  set forth
herein,  each  of the  Parties  shall  pay  its  respective  costs  incurred  in
connection  with the  preparation,  negotiation,  execution and delivery of this
Agreement  and  the  consummation  of  the  transactions   contemplated  hereby,
including,  without  limitation,  the  fees of the  attorneys,  accountants  and
advisors.

         7.3 News  Releases.  Except as required  by  applicable  law,  any news
releases or other public disclosure pertaining to the transactions  contemplated
hereby  shall be delivered to the other Party for review and approval in writing
at least two (2) Business Days prior to the dissemination thereof.

         7.4 Additional Agreements.  Subject to the terms and conditions of this
Agreement,  each Party agrees to use all reasonable efforts to take, or cause to
be taken,  all  action  and to do, or cause to be done,  all  things  necessary,
proper or advisable  under  applicable  law to consummate and make effective the
transactions  contemplated by this Agreement. If at any time after the Effective
Time any further  action is  necessary or desirable to carry out the purposes of
this  Agreement  or to vest the  Surviving  Corporation  with full  title to all
properties,  assets, rights,  approvals,  immunities and franchises of either of
the  constituent  corporations,  the proper  officers and directors of each such
corporation shall take all such necessary or desirable action.

                                       25
<PAGE>

         7.5 Notification of Certain Matters.

                  (a) The Company  shall give prompt notice to the Parent of any
material  inaccuracy in any representation or warranty made by it herein, or any
material  failure  of the  Company  to  comply  with or  satisfy  any  covenant,
condition  or agreement  to be complied  with or satisfied by the Company  under
this Agreement;  provided,  however,  that no such notification shall affect the
representations  or  warranties or covenants or agreements of the Company or the
conditions to the obligations of the Parent hereunder.

                  (b) The Parent shall give prompt  notice to the Company of any
material  inaccuracy in any representation or warranty made by it herein, or any
material failure of the Parent to comply with or satisfy any covenant, condition
or  agreement  to be  complied  with or  satisfied  by it under this  Agreement;
provided, however, that no such notification shall affect the representations or
warranties  or covenants or  agreements  of the Parent or the  conditions to the
obligations of the Company hereunder.

                  (c) The Company and the Parent shall each promptly  advise the
other orally and in writing of any change or event having, or which,  insofar as
can reasonably be foreseen,  in the future would have, a Material Adverse Effect
or any  adverse  effect on the right or  ability  of any Party to enter into and
complete the Merger and other transactions contemplated hereby.

         7.6 Confidentiality.

                  (a) Each  Party  shall  hold,  and shall  cause its  officers,
employees, agents and representatives, including, without limitation, attorneys,
accountants,  consultants and financial  advisors who obtain such information to
hold,  in  confidence,  and not use for any purpose  other than  evaluating  the
transactions  contemplated by this Agreement,  any  confidential  information of
another Party obtained through the investigations permitted hereunder, which for
the purposes  hereof shall not include any  information  which (i) is or becomes
generally  available  to the public  other than as a result of  disclosure  by a
Party or one of its  affiliates  in  violation  of its  obligations  under  this
Subsection, (ii) becomes available to a Party on a non-confidential basis from a
source,  other than the Party which alleges the  information is  confidential or
its affiliates,  which has represented  that such source is entitled to disclose
it,  or (iii)  was  known to a Party on a  non-confidential  basis  prior to its
disclosure to such Party  hereunder.  If this  Agreement is  terminated,  at the
request of a Party,  the other  Party  shall  deliver,  and cause its  officers,
employees,   agents,  and   representatives,   including,   without  limitation,
attorneys,   accountants,   consultants   and  financial   advisors  who  obtain
confidential  information  of the requesting  Party  pursuant to  investigations
permitted  hereunder,  to deliver to the requesting Party all such  confidential
information that is written (including copies or extracts thereof).

                  (b)  If  a  Party  or a  Person  to  whom  a  Party  transmits
confidential  information  of another  Party is  requested  or  becomes  legally
compelled  (by oral  questions,  interrogatories,  requests for  information  or
documents,  subpoena, criminal or civil investigative demand or similar process)
to disclose  any of such  confidential  information,  such Party or other Person
will provide the other Party with prompt  written  notice so that such Party may
seek a protective  order or other  appropriate  remedy or waive  compliance with
Section 7.6(a). If such protective order or other remedy is not obtained,  or if
the applicable Party waives compliance with Section 7.6(a),  the Party or Person

                                       26
<PAGE>

subject to the  request  will  furnish  only that  portion of such  confidential
information  which is legally required and will exercise  reasonable  efforts to
obtain  reliable  assurance  that  confidential  treatment will be accorded such
confidential information.

         7.7 Consents and Filings.

                  (a)  The  Parties  shall,  promptly  after  execution  of this
Agreement,  make all required filings and submissions with respect to the Merger
and the  Placement.  Each Party will take all  reasonable  actions to obtain any
other  consent,  authorization,  order or approval of, or any  exemption by, any
Person  required  to be  obtained or made in  connection  with the  Merger,  the
Placement, and the other transactions contemplated by this Agreement. Each Party
will  cooperate  with and  promptly  furnish  information  to the other Party in
connection  with  obtaining  such  consents or making any such  filings and will
promptly  furnish  to  the  other  Party  a  copy  of all  filings  made  with a
governmental authority.

                  (b) Without  limiting the  severability  of Section  7.7(a) of
this  Agreement,  the Company  will  prepare  and  distribute  to the  Company's
shareholders  an  Information   Statement/Offering   Memorandum  which,  in  the
reasonable   opinion  of  the  Parent  and  its  counsel,   complies   with  the
informational  requirements  applicable to the Company's solicitation of consent
for the Merger or notify its  non-consenting  shareholders of their rights under
Delaware  Law and the  Parent's  offer  of  shares  of its  common  stock as the
consideration  for the Merger under an exemption from  registration  pursuant to
Rule 506 of the Securities Act. The Parent will take reasonable action necessary
to permit the Company to  incorporate  Parent SEC filings  into the  Information
Statement/Offering Memorandum.

         7.8 Parent SEC Filings.  Between the date hereof and the Closing  Date,
the Company shall  cooperate with the Parent in connection  with the preparation
and filing of, and  provide to the  Parent for  inclusion  or  incorporation  by
reference  in,  any  reports,  filings,  schedules  or  registration  statements
(including any prospectus  contained in any such  registration  statement) to be
filed by the Parent with the SEC (the "Parent  Filings").  Without  limiting the
foregoing,  the Company shall take all commercially reasonable actions requested
by the Parent to enable the Parent to include or incorporate by reference in the
Parent  Filings  any  Financial   Statement  of  Company,   including,   without
limitation,  and any  auditors'  report  thereon.  The Parent agrees that (i) at
least three (3)  Business  Days prior to filing,  the Parent  shall  furnish the
Company  copies of all  proposed  Parent  Filings  relating  to,  disclosing  or
describing the transactions contemplated by this Agreement or the Placement, and
(ii) it shall not make any Parent Filing described in the immediately  preceding
clause  (i)  without  the  prior  consent  of the  Company,  which  shall not be
unreasonably withheld, conditioned or delayed.

         7.9  Escrow  Agreement  and  Cancellation.   Simultaneously   with  the
execution of this Agreement:

                  (a) The  Parent  and the  Company  will  enter  into an Escrow
Agreement in the form annexed hereto as Exhibit D (the "Escrow  Agreement") with
Arnold P. Kling Esq.,  pursuant to which current  shareholders of Parent Company
Common  Stock  will  place  (i)  300,000  shares of Common  Stock  (the  "Escrow
Shares"),  and (ii) the Company at or before Closing,  will deposit $150,000 (of
which  $15,000 is  presently  held by Sommer & Schneider  LLP  representing  the

                                       27
<PAGE>

remaining funds of a deposit of $115,000 made by the Company simultaneously with
the execution of this Agreement and $135,000 will be doposited by Company on the
Effective  Date).  On or after  the  Effective  Date,  $15,000  will be held and
applied to pay the remaining  balance of a $115,000 note payable  within 30 days
of closing;  $95,000  will be held for a period of one year and used during that
period to pay any claims or contingent liabilities of the Parent during the year
and the balance of $40,000 will be used to pay legal fees related to the Merger,
including  $15,000 to the Escrow Agent.  The remaining  shares and funds will be
paid to the manager as a fee at the end of the year.

                  (b) The  Holders of  2,208,521  shares of  outstanding  Parent
Company Common Stock will surrender the  certificates  representing  such shares
with  Medallion  Guaranteed  powers  and  instructions  to cancel the shares and
return them to the status of  authorized  and  unissued  shares (the  "Cancelled
Shares").

                                  ARTICLE VIII

                  CLOSING DELIVERIES AND CONDITIONS TO CLOSING

         8.1  Documents to be Delivered  by Parent.  At the Closing,  the Parent
shall deliver to the Company the following:

                  (a) A  certificate,  executed  by an  officer of the Parent in
such  detail  as the  Company  shall  reasonably  request,  certifying  that all
representations,  warranties  and  covenants of the Parent and Merger Sub herein
are true and correct as of the Effective Time. The delivery of such  certificate
shall  constitute  a  representation  and  warranty  of  the  Parent  as to  the
statements set forth therein.

                  (b) A copy of the resolutions  adopted by (i) the shareholders
and Board of  Directors  of Merger Sub,  and (ii) the Board of  Directors of the
Parent, approving this Agreement,  the Merger and the transactions  contemplated
hereby, certified by their respective Secretaries.

                  (c) The Certificate of Merger, duly executed by the Parent and
Merger Sub.

                  (d) Factual  certificates,  in a form and substance reasonably
satisfactory  to the Company and its  counsel,  confirming  and  supporting  the
representations of the Parent contained in Section 5.2 hereof.

                  (e) An opinion of counsel,  dated as of the Closing Date, in a
form reasonably  acceptable to Company, with respect to the matters of set forth
in Exhibit E to this Agreement.

                  (f) The Escrow  Agreement,  Escrow  Shares  and the  Cancelled
Shares.

                  (g) Such other  customary  certificates or documents as may be
reasonably required by the Company.

                                       28
<PAGE>

         8.2  Documents  to be Delivered  by the  Company.  At the Closing,  the
Company shall deliver to the Parent the following:

                  (a) A  certificate,  executed by the President of the Company,
in such  detail as the Parent  shall  reasonably  request,  certifying  that all
representations,  warranties  and  covenants of the Company  herein are true and
correct  as of the  Effective  Time.  The  delivery  of such  certificate  shall
constitute a representation and warranty of the Company as to the statements set
forth therein.

                  (b) A copy of the resolutions  adopted by the stockholders and
Board of Directors of the Company approving this Agreement,  the Merger, and the
transactions contemplated hereby, certified by the Secretary of the Company.

                  (c) An opinion of counsel,  dated as of the Closing  Date,  in
form reasonably  acceptable to the Parent, with respect to the matters set forth
in Exhibit F to this Agreement.

                  (d) The $150,000 escrow deposit; and

                  (e) Such other  customary  certificates or documents as may be
reasonably required by Parent.

         8.3 Conditions to Obligations of Each Party.  Each Party's  obligations
to consummate the transactions  contemplated by this Agreement is subject to the
satisfaction  or waiver  at or prior to the  Closing,  of each of the  following
conditions:

                  (a) No temporary  restraining order,  preliminary or permanent
injunction or other order issued by any governmental authority or other material
legal restraint or prohibition issued or promulgated by a governmental authority
preventing the consummation of the  transactions  contemplated by this Agreement
shall be in effect  or shall be  threatened,  and there  shall not be any law or
regulation enacted or deemed applicable to the transactions contemplated by this
Agreement that makes consummation of such transactions illegal.

                  (b)  The   Certificate   of  Merger   shall  have  been  filed
simultaneously with the Closing.

         8.4  Conditions  to  Obligations  of the  Parent and  Merger  Sub.  The
obligation of Parent and Merger Sub to consummate the transactions  contemplated
by this Agreement are subject to the satisfaction or waiver,  at or prior to the
Closing, of each of the following conditions:

                  (a) Each of the  representations and warranties of the Company
set forth in this Agreement (i) that are not qualified by materiality  must have
been true and correct in all material  respects as of the Closing Date, and (ii)
that are  qualified  by  materiality  must have been true and  correct as of the
Closing Date; except, in each case, for inaccuracies that would not individually
or in the aggregate have a Material Adverse Effect on the Company.

                  (b) All of the  obligations,  covenants  and  agreements  with
which the  Company is  required  to comply or that the  Company is  required  to
perform under this Agreement at or prior to the Closing shall have been complied
with and performed in all material respects.

                                       29
<PAGE>

                  (c) The  documents  required  to be  delivered  by the Company
pursuant to Section 8.2 above shall have been delivered  simultaneously with the
Closing.

         8.5  Conditions to  Obligations  of the Company.  The obligation of the
Company to  consummate  the  transactions  contemplated  by this  Agreement  are
subject to the  satisfaction or waiver,  at or prior to the Closing,  of each of
the following conditions:

                  (a) Each of the  representations  and warranties of the Parent
and  Merger  Sub set  forth in this  Agreement  (i) that  are not  qualified  by
materiality  must have been true and correct in all material  respects as of the
Closing Date, and (ii) that are qualified by materiality must have been true and
correct as of the Closing Date;  except,  in each case,  for  inaccuracies  that
would not individually or in the aggregate have a material adverse effect on the
Parent.

                  (b) All of the  obligations,  covenants  and  agreements  with
which the  Parent  or Merger  Sub is  required  to comply or that the  Parent or
Merger Sub is  required  to  perform  under  this  Agreement  at or prior to the
Closing shall have been complied with and performed in all material respects.

                  (c) The  documents  required  to be  delivered  by the  Parent
pursuant to Section 8.1 hereof shall have been delivered simultaneously with the
Closing.

                                   ARTICLE IX

                          NO SOLICITATION; TERMINATION

         9.1 No  Solicitation.  Unless and until this Agreement  shall have been
terminated  prior to the Closing Time pursuant to and in compliance with Section
9.2  hereof,  neither  the Parent nor the  Company  shall  (whether  directly or
indirectly through its respective advisors, agents or other intermediaries), nor
shall the  Company  or the  Parent  authorize  or permit  any of its  respective
officers,  directors,  agents,  employees,  representatives  or  advisors to (i)
solicit,  initiate,  encourage  (including by way of furnishing  information) or
take any action to  facilitate  the  submission of any  inquiries,  proposals or
offers (whether or not in writing) from any person (other than the Parent or the
Company, as the case may be, and its respective  affiliates) relating to (A) any
acquisition  or purchase  of any of the assets of the Company or the Parent,  as
the case may be, or of any class of equity  securities of the Company or Parent,
as the case may be (other than the securities as contemplated in the Placement),
B) any tender offer  (including a self tender offer) or exchange offer,  (C) any
merger,  consolidation,  business combination, sale of substantially all assets,
recapitalization,  liquidation, dissolution or similar transaction involving the
Company  or  Parent,  as the  case  may be,  or (D) any  other  transaction  the
consummation of which would or would reasonably be expected to impede, interfere
with,  prevent or materially delay the Merger or which would or would reasonably
be expected to  materially  dilute the benefits to the other Party hereto of the
transactions   contemplated  by  this  Agreement   (collectively,   "Acquisition
Proposals"),  or agree to, recommend or endorse any Acquisition Proposals,  (ii)
enter into or execute any  agreement  with  respect to any of the  foregoing  or
(iii) enter into or participate in any discussions or negotiations regarding any
of the foregoing, or furnish to any other person any information with respect to
its  business,  properties  or  assets  in  connection  with the  foregoing,  or
otherwise cooperate in any way with, or participate in or assist, facilitate, or

                                       30
<PAGE>

encourage,  any effect or attempt by any other person (other than the Company or
the Parent, as the case may be, and its respective affiliates) to do or seek any
of the  foregoing.  If either the Parent or the Company is  contacted by a third
party with respect to an Acquisition  Proposal,  it shall immediately notify the
other  Party  hereto of the  identity  of the third  party and the nature of the
Acquisition  Proposal.  Nothing  herein  contained  however,  shall  prevent the
Company  from  acquiring  assets or the  business  interests  of third  parties,
consistent with its business plans,  for cash,  stock or a combination  thereof,
except to the extent such  transaction (i) increases the number of shares of the
Corporation's  common stock and common stock  equivalents  beyond the number set
forth in Section  4.2,  above,  or (ii)  would  result in any person or group of
person owning more than 5% of the outstanding securities of the Parent, assuming
the Merger had been completed on the day immediately following such transaction.

         9.2 Termination.  This Agreement may be terminated at any time prior to
the Effective Time:

                  (a) by mutual written consent of each of the Parties hereto at
any time prior to the Closing;

                  (b) by the  Parent  in the event of a  material  breach by the
Company of any provision of this  Agreement  for which  written  notice has been
given to the Company  and which  breach has not been cured prior to 60 days from
the date hereof (the "Termination  Date");  provided,  however that the right to
terminate this Agreement under this Section 9.2(b) shall not be available to the
Parent if the Parent or Merger Sub have materially breached or failed to perform
any provision of this Agreement and such breach or failure remains uncured;

                  (c) by the Company in the event of a material breach by Parent
or Merger Sub of any provision of this Agreement which breach has not been cured
prior to the Termination Date;  provided,  however,  that the right to terminate
this  Agreement  under this Section 9.2(c) shall not be available to the Company
if the Company has  materially  breached or failed to perform any  provision  of
this Agreement and such breach or failure remains uncured;

                  (d) by either the Parent or the Company if the  Closing  shall
not  have  occurred  the  Termination  Date;  provided,  however,  the  right to
terminate this Agreement under this Section 9.2(d) shall not be available (i) to
any Party whose failure to fulfill any  obligation  hereunder has been the cause
of, or results in, the failure of the Closing to have  occurred on or before the
Termination Date, or (ii) any failure by the Parent or Merger Sub to deliver (or
have available for immediately  delivery) all documents required to be delivered
by Parent  pursuant  to Section 8.1 of this  Agreement,  or (iii) any failure by
Parent or Merger Sub to comply with all  pre-closing  covenants of the Parent or
Merger Sub contained in Article VII or Section 6.1 of this Agreement; or

                  (e) by the Parent or the Company if the other Party pursues or
otherwise enters into  negotiations  with respect to an Acquisition  Proposal or
enters  into any  agreement  or  understanding  with  respect to an  Acquisition
Proposal.

         9.3 Effect of  Termination.  Except for the provisions of Sections 7.2,
7.3,  7.6,  9.4 and the  provisions  of  Article X hereof,  each of which  shall

                                       31
<PAGE>

survive any termination of this  Agreement,  in the event of termination of this
Agreement  pursuant to Section 9.2, this Agreement shall  forthwith  become void
and of no further  force and effect and the Parties  shall be released  from any
and all obligations hereunder;  provided,  however, that, except as specifically
provided  in Section  9.4 below,  nothing  herein  shall  relieve any Party from
liability for the breach of any of its obligations under this Agreement.

         9.4 Damages Fee; Repayment of Certain Advances..

                  (a)      (i)  In  the  event  of any valid termination of this
Agreement by the Parent in accordance  with the  provisions of Section 9.2(b) or
(e) above,  the Parent  shall be entitled to a lump sum payment from the Company
equal to $25,000 plus Parent's documented  transaction-related legal expenses in
an amount not to exceed $25,000 (collectively, the "Damages Fee") in addition to
retaining all non-refundable  deposits heretofore made by Company. In such event
the Parent may deduct the Damages Fee from the  $115,000  advance made to Parent
by the  Company  and the  balance  will be due six months  from the date of such
termination.

                           (ii) In the  event of any valid  termination  of this
Agreement by the Company in accordance with the provisions of Section 9.2(c), or
(e) above,  the Company  shall be entitled to a lump sum payment from the Parent
equal to the Damages  Fee and the sum of $115,000  advanced to the Parent on the
date this Agreement was executed shall be due to the Company six months from the
date of such termination..

                  (b)  The  Parties  to  this  Agreement  agree  that  it may be
difficult, if not impossible, to accurately determine the amount of damages that
may be incurred by the Parent and Merger Sub, on one hand,  or the  Company,  on
the  other  hand,  as  a  result  of  any  failure  to  close  the  transactions
contemplated by this Agreement.  Accordingly,  the Parties hereto agree that the
Damages  Fee  payable by a Party under the  circumstances  described  in Section
9.4(a) above is  reasonable  and shall be the sole and  exclusive  remedy of the
Parent and Merger Sub against the Company or the Company  against the Parent and
Merger Sub (or any of its respective stockholders,  officers, directors, agents,
employees or direct or indirect  affiliates) in the event of any  termination of
this Agreement prior to Closing which gives rise to a claim for the Damages fee.
Any dispute  concerning  payment of the Damages Fee or the  termination  of this
Agreement by the Parent shall be settled by binding  arbitration  in  accordance
with  the  provisions  of  Section  10.8  hereof;  provided,  however,  that the
arbitrator  shall have no authority to change the amount of the Damages Fee from
$50,000;  however, the arbitrator may assess costs, including reasonable counsel
fees.

                                   ARTICLE X

                               GENERAL PROVISIONS

         10.1  Amendment.  This  Agreement  may  not  be  amended  except  by an
instrument in writing signed on behalf of each of the Parties.

         10.2 Waiver. At any time prior to the Effective Time, whether before or
after approval of this  Agreement and the Merger by the Company's  stockholders,
any Party may (i) extend the time for the  performance of any of the obligations
or other acts of any other Party hereto or (ii) waive compliance with any of the

                                       32
<PAGE>

agreements of any other Party or with any conditions to its own obligations. Any
such  extension or waiver shall be valid only if set forth in an  instrument  in
writing  signed on  behalf  of the Party  making  the  waiver  or  granting  the
extension by a duly  authorized  officer.  No waiver of any of the provisions of
this  Agreement  shall be  deemed  or shall  constitute  a waiver  of any  other
provision  hereof (whether or not similar),  nor shall such waiver  constitute a
continuing waiver unless otherwise expressly provided.

         10.3 Assignment and Binding  Effect.  Neither this Agreement nor any of
the rights or obligations  hereunder may be assigned by the Company  without the
prior  written  consent of the Parent or  assigned  by Parent  without the prior
written  consent of Company.  Subject to the foregoing,  this Agreement shall be
binding  upon and inure to the  benefit  of the  Parties  and  their  respective
successors,  transferees and assigns,  and no other Person shall have any right,
benefit or obligation hereunder.

         10.4 Governing Law. Except as to matters  relating to the internal laws
of a  jurisdiction,  this  Agreement  shall be  governed  by, and  construed  in
accordance  with,  the law of the  State  of  Delaware,  without  regard  to the
conflicts of law principles thereof.

         10.5 Entire Agreement.  This Agreement constitutes the entire agreement
between the Parties  pertaining to the subject  matter hereof and supersedes all
prior agreements, understandings,  negotiations and discussions, whether oral or
written, of the Parties with respect to the subject matter hereof.

         10.6 Severability.  In the event that any one or more of the provisions
contained  in this  Agreement  or in any other  instrument  referred  to herein,
shall,  for any reason,  be held to be invalid,  illegal or unenforceable in any
respect,  then  to  the  maximum  extent  permitted  by  law,  such  invalidity,
illegality  or  unenforceability  shall not affect any other  provision  of this
Agreement or any other such instrument.

         10.7  Titles.  The titles,  captions or  headings of the  Articles  and
Sections herein are for convenience of reference only and are not intended to be
a part of or to affect the meaning or interpretation of this Agreement.

         10.8 Attorneys' Fees.  Should any Party institute any Action to enforce
any provision of this Agreement,  including,  without limitation,  an Action for
declaratory  relief,  damages by reason of an alleged breach of any provision of
this Agreement, equitable relief or otherwise in connection with this Agreement,
or any provision hereof,  the prevailing Party shall be entitled to recover from
the losing Party or Parties  reasonable  attorneys'  fees and costs for services
rendered to the prevailing Party in such Action.

         10.9 Multiple  Counterparts.  This  Agreement may be executed in two or
more counterparts,  each of which shall be deemed an original,  but all of which
shall constitute one and the same instrument.

         10.10 Notices.  Unless  applicable  law requires a different  method of
giving notice, any and all notices,  demands or other communications required or
desired to be given  hereunder by any Party shall be in writing.  Assuming  that
the contents of a notice meet the  requirements of the specific  Section of this
Agreement  which  mandates the giving of that notice,  a notice shall be validly
given or made to another  Party if served  either  personally or if deposited in

                                       33
<PAGE>

the  United  States  mail,  certified  or  registered,  postage  prepaid,  or if
transmitted  by telegraph,  telecopy or other  electronic  written  transmission
device  or if  sent  by  overnight  courier  service,  and if  addressed  to the
applicable  Party  as  set  forth  below.  If  such  notice,   demand  or  other
communication is served personally,  service shall be conclusively  deemed given
at the  time  of  such  personal  service.  If  such  notice,  demand  or  other
communication is given by mail,  service shall be conclusively  deemed given two
(2) Business Days hours after the deposit  thereof in the United States mail. If
such notice,  demand or other  communication is given by overnight  courier,  or
electronic transmission,  service shall be conclusively deemed given at the time
of confirmation of delivery. The addresses for the Parties are as follows:

         If to the Company:              bioMETRX Technologies, Inc.
                                         33 South Service Road, Suite #111
                                         Jericho, NY  11753
                                         Attention: Mark Basile, Chief Executive
                                                    Officer
                                         Fax: (516) 750-9717

         with a copy to:                 Weber & Pullin LLP
                                         7600 Jericho Turnpike
                                         Woodbury, NY  11797
                                         Attention:  Allan Pullin, Esq.
                                         Fax: (516) 364-3456

         If to the Parent or Merger Sub: MarketShare Recovery, Inc.
                                         95 Broadhollow Road, Suite 101
                                         Melville, NY  11747
                                         Attention: Raymond Barton, Chief
                                                    Executive Officer
                                         Fax: (631) 385-3205

         with a copy to:                 Sommer & Schneider LLP
                                         595 Stewart Avenue, Suite 710
                                         Garden City, NY  11530
                                         Attention: Herbert H. Sommer, Esq.
                                         Fax: (516) 228-8211

Any Party may change such Party's address for the purpose of receiving  notices,
demands and other  communications as herein provided,  by a written notice given
in the aforesaid manner to the other Parties.

         10.11  Joint  Drafting.  This  Agreement  shall be  deemed to have been
drafted  jointly by the  Parties  hereto,  and no  inference  or  interpretation
against a Party  shall be made solely by virtue of such Party  allegedly  having
been the draftsperson of this Agreement.

         10.12  Incorporation by Reference.  All Exhibits and Schedules attached
hereto or to be delivered in connection herewith are incorporated herein by this
reference.

                                       34
<PAGE>

                       [SIGNATURES CONTINUED ON NEXT PAGE]

                                       35
<PAGE>

         IN WITNESS WHEREOF,  each of Parent,  Merger Sub and Company has caused
this  Agreement to be executed as of the date first written above by its officer
thereunto duly authorized.

BIOMETRX TECHNOLOGIES, INC.

By: /s/ Mark Basile
    ------------------------------------
    Mark Basile, Chief Executive Officer

MARKETSHARE RECOVERY, INC.

By: /s/ Raymond Barton
    ------------------------------------
    Raymond Barton, Chief Executive Officer

MARKETSHARE MERGER SUB INC.
(a corporation to be formed)

By: MARKETSHARE RECOVERY, INC.

By: /s/ Raymond Barton
    ------------------------------------
    Raymond Barton, Chief Executive Officer

                                       36
<PAGE>

                                    EXHIBIT A

                              Letter of Transmittal

                                       B-1

<PAGE>

                                    EXHIBIT B

                           Company Disclosure Schedule

4.2 Shareholder List

Common Stock - See Attached

4.4 Financial Statements

Audit by Meyer & Schwartz, C.P.A's - See Attached

4.11 Intellectual Property

Patent Application  S.N. 10/818,655 - Collard & Roe, P.C. Company Counsel

                                       B-1

<PAGE>

                                    EXHIBIT C

                           Parent Disclosure Schedule

5.2 (e)  List of Holders:

Common Stock - See attached list

5.7  Litigation

                  Robert Feldman - Mr. Feldman is a former officer, director and
principal  shareholder.  He has made numerous threats to sue the Company and its
management,  as well  as  threatening  to  contact  various  state  and  federal
agencies.  Copies of all  correspondence has be furnished to the Company and its
counsel.

                                       C-1

<PAGE>

                                    EXHIBIT D

                                Escrow Agreement

                                     To Come

                                       E-1

<PAGE>

                                    EXHIBIT E

                 Form of Legal Opinions of Counsel to the Parent

                                     To Come

                                       E-1

<PAGE>

                                    EXHIBIT F

                 Form of Legal Opinion of Counsel to the Company

                                     To Come

                                       F-1Exhibit 4.1

                           EXCALIBUR INDUSTRIES, INC.
                            2005 STOCK INCENTIVE PLAN

      1.  Purpose.  The purpose of the 2005 Stock  Incentive  Plan of  Excalibur
Industries,  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 Excalibur Industries, Inc., a Delaware 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.

<PAGE>

            "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
      Excalibur  Industries,  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.

                                  Page 2 of 11
<PAGE>

      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 Thirty Three Million (33,000,000) 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, reverse
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.

                                  Page 3 of 11
<PAGE>

      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 of a Stock Option shall
not be less than 85  percent  of the Fair  Market  Value of the shares of Common
Stock on the Date of Grant,  provided that the  Committee may in its  discretion
specify for any Stock Option an exercise price per share that is higher than the
Fair Market Value on the Date of Grant,  except that the price shall not be less
than 110  percent  of the Fair  Market  Value in the case of any person who owns
securities possessing more than 10 percent of the total combined voting power of
all classes of securities of the Company.

      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.

                                  Page 4 of 11
<PAGE>

      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 ss.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.

                                  Page 5 of 11
<PAGE>

      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.

                                  Page 6 of 11
<PAGE>

      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,  noncompetition,  nonsolicitation 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;

                                  Page 7 of 11
<PAGE>

                  (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. Forfeirture 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   noncompetition,
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.

                                  Page 8 of 11
<PAGE>

      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.

                                  Page 9 of 11
<PAGE>

      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.

                                 Page 10 of 11
<PAGE>

      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 Delaware,  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.

      11.16 Stockholder Approval.  The Plan must be approved by the stockholders
by a majority of all shares entitled to vote within twelve (12) months after the
date the Plan was adopted by the Board.  Any  Incentive  Stock  Options  granted
before  stockholder  approval is obtained shall be converted  into  Nonqualified
Stock Options if stockholder  approval is not obtained within twelve (12) months
before or after the Plan was adopted.

      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.

                                 Page 11 of 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]