Document:

CERTIFICATE
      OF DESIGNATIONS, VOTING POWERS,

    

    PREFERENCES
      AND RIGHTS

    

    OF

    

    THE
      SERIES OF PREFERRED STOCK

    

    OF

    

    INTELLIHOME,
      INC. (F/K/A THE JON ASHTON CORPORATION)

    

    TO
      BE DESIGNATED

    

    SERIES
      B CONVERTIBLE PREFERRED STOCK

    (As
      Amended January 2007)

    

    Pursuant
      to Article 2.13 of the Texas Business Corporation Act, I, Mark Trimble,
      President of IntelliHome, Inc., a Texas corporation (the "Corporation"),
      hereby certify that the following is a true and correct copy of a resolution
      duly adopted by the Corporation's Board of Directors as of January 3, 2007,
      and
      that said resolution has not been amended or rescinded and is in full force
      and
      effect at the date hereof:

    

    RESOLVED,
      that pursuant to the authority expressly granted and vested in the Board of
      Directors of the Corporation by the Corporation's Articles of Incorporation,
      as
      amended to date, and the authorization of the holders of outstanding shares
      of
      Series B Preferred Stock, the Board of Directors hereby amends the terms of
      a
      series of Preferred Stock of the Corporation, par value $0.001 per share,
      designated "Series B Convertible Preferred Stock" and consisting of two million
      seven hundred thousand (2,700,000) shares, and hereby fixes the voting powers,
      designations, preferences and relative, participating, optional or other rights
      and the qualifications, limitations or restrictions thereon, of the Series
      B
      Convertible Preferred Stock (the "Series
      B Preferred Stock"),
      as
      follows:

    

    1. Voting
      Rights.
      The
      holder of each share of Series B Preferred Stock shall have the right to one
      vote for each share of Common Stock into which such Series B Preferred Stock
      could then be converted, and with respect to such vote, such holder shall have
      full voting rights and powers equal to the voting rights and powers of the
      holders of Common Stock, and shall be entitled, notwithstanding any provision
      hereof, to notice of any shareholders’ meeting in accordance with the bylaws of
      this Corporation, and shall be entitled to vote, together with holders of Common
      Stock, with respect to any question upon which holders of Common Stock have
      the
      right to vote. Fractional votes shall not, however, be permitted and any
      fractional voting rights available on an as-converted basis (after aggregating
      all shares into which shares of Series B Preferred Stock held by each holder
      could be converted) shall be rounded to the nearest whole number (with one-half
      being rounded upward).

    

    2. Dividends.
      Subject
      to the rights of series of Preferred Stock which may from time to time come
      into
      existence, the holders of shares of Series B Preferred Stock shall be entitled
      to receive dividends, out of any assets legally available therefore, prior
      and
      in preference to any declaration or payment of any dividend (payable other
      than
      in Common Stock or other securities or rights convertible into or entitling
      the
      holder thereof to receive, directly or indirectly, additional shares of Common
      Stock of the Corporation) on the Common Stock of the Corporation, at the rate
      of
      $0.008 per share per annum or, if greater (as determined on a per annum basis
      and an as converted basis for the Series B Preferred Stock), an amount equal
      to
      that paid on any other outstanding shares of the Corporation, payable quarterly
      when, as and if declared by the Board of Directors. Such dividends shall accrue
      on each share from and after the date of issuance and shall accrue from day
      to
      day whether or not earned or declared. Such dividends shall be cumulative so
      that if such dividends in respect of any previous or current annual dividend
      period, at the annual rate specified above, shall not have been paid the
      deficiency shall first be fully paid before any dividend or other distribution
      shall be paid on or declared and set apart for the Common Stock. Any
      accumulation of dividends on the Series B Preferred Stock shall not bear
      interest. Cumulative dividends with respect to a share of Series B Preferred
      Stock which are accrued, payable and/or in arrears shall upon conversion of
      such
      share to Common Stock not then or thereafter be paid and shall cease to be
      accrued, payable and/or in arrears.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Protective
      Provisions.
      Notwithstanding anything herein to the contrary, so long as not less than
      1,250,000 shares of Series B Preferred Stock are outstanding, the Corporation
      shall not without first obtaining the approval (by vote or written consent,
      as
      provided by law) of holders of at least a majority of the then outstanding
      Series B Preferred Stock:

    

    (a) sell,
      convey or otherwise dispose of or transfer all or substantially all of the
      property or business of the Corporation or merge into or consolidate with any
      other corporation (other than a wholly-owned subsidiary of the Corporation)
      or
      effect any transaction or series of related transactions in which more than
      fifty percent (50%) of the voting power of the Corporation is disposed
      of;

    

    (b) alter
      or
      change the rights, preferences or privileges of the shares of Series B Preferred
      Stock so as to affect adversely the Series B Preferred Stock;

    

    (c) increase
      or decrease (other than by redemption or conversion) the total number of
      authorized shares of Series B Preferred Stock;

    

    (d) authorize
      or issue, or obligate itself to issue, any other equity security, including
      any
      other security convertible into or exercisable for any equity security having
      a
      preference over, or being on a parity with, the Series B Preferred Stock with
      respect to dividends or upon liquidation; 

    

    (e) redeem,
      purchase or otherwise acquire (or pay into or set aside for a sinking fund
      for
      such purpose) any share or shares of Preferred Stock or Common Stock; provided,
      however, that this restriction shall not apply to (i) the repurchase of shares
      of Common Stock from employees, officers, directors, consultants or other
      persons performing services for the Corporation or any subsidiary pursuant
      to
      agreements under which the Corporation has the option to repurchase such shares
      at cost or at cost upon the occurrence of certain events, such as the
      termination of employment, or (ii) the redemption of shares of Series B
      Preferred Stock in accordance with Section
      6;
      

    

    (f) amend
      the
      Corporation’s Articles of Incorporation or Bylaws in a manner so as to affect
      adversely the Series B Preferred Stock; or

    

    (g) issue,
      until 12 months following the commencement of public trading in the
      Corporation’s common stock, shares of its common stock at prices less than, or
      issue other securities convertible into shares of common stock at prices less
      than, the then applicable Conversion Price. For purposes hereof, a public
      trading market will be deemed to have commenced upon the commencement of trading
      on a national exchange or upon the first publication of bid and ask prices
      on an
      over-the-counter market.

    

    4. Liquidation
      Preference.

    

    (a) In
      the
      event of any proposed liquidation, dissolution or winding up of the Corporation,
      the Corporation shall provide written notice (the "Liquidation
      Notice")
      to the
      holders of Series B Preferred Stock of the anticipated date on which the initial
      payment in liquidation of the Corporation will be made, which date shall not
      be
      earlier than fifteen days following the giving of the Liquidation Notice (the
      "Liquidation
      Date").
      In
      the event of any liquidation, dissolution or winding up of this Corporation,
      either voluntary or involuntary, subject to the right of series of Preferred
      Stock that may from time to time come into existence, the holders of Series
      B
      Preferred Stock shall be entitled to receive, prior and in preference to any
      distribution of any of the assets of the Corporation to the holders of Common
      Stock, Series A Preferred Stock or any other class or series of stock ranking
      on
      liquidation junior to the Series B Preferred Stock by reason of their
      ownership thereof, an amount per share equal to the sum of (i) $0.10 for each
      outstanding share of Series B Preferred Stock (the "Liquidation
      Preference")
      and
      (ii) an amount equal to accrued but unpaid dividends on such share. If upon
      the
      occurrence of such event, the assets and funds thus distributed among the
      holders of the Series B Preferred Stock and any class or series of stock ranking
      on liquidation on a parity with the Series B Preferred Stock shall be
      insufficient to permit the payment to such holders of the full aforesaid
      preferential amounts, then the entire assets and funds of the Corporation
      legally available for distribution shall be distributed ratably among the
      holders of the Series B Preferred Stock and any class or series of stock ranking
      on liquidation on a parity with the Series B Preferred Stock in proportion
      to the amount of such stock owned by each such holder in proportion to the
      preferential amount each such holder is otherwise entitled to
      receive.

     

    
      
        
        

      

      
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    (b) After
      the
      payment of all preferential amounts required to be paid to the holders of shares
      of Series B Preferred Stock and any other class or series of stock of the
      Corporation ranking on liquidation senior to the Common Stock, the remaining
      assets available for distribution to the Corporation’s stockholders shall be
      distributed among the holders of the shares of Series B Preferred Stock and
      Common Stock, pro rata based on the number of shares held by each such holder,
      treating for this purpose all shares of Series B Preferred Stock as if they
      had
      been converted to Common Stock pursuant to the terms set forth in Section
      5
      immediately prior to such dissolution, liquidation or winding up of the
      Corporation; provided, however, that if the aggregate amount which the holders
      of Series B Preferred Stock are entitled to receive under Sections
      4(a) and 4(b)
      shall
      exceed $0.30 per share (subject to appropriate adjustment in the event of a
      stock split, stock dividend, combination, reclassification, or similar event
      affecting the Series B Preferred Stock ) (the "Maximum
      Participation Amount"),
      each
      holder of Series B Preferred Stock shall be entitled to receive upon such
      dissolution, liquidation or winding up of the Corporation the greater of (i)
      the
      Maximum Participation Amount and (ii) the amount such holder would have received
      if such holder had converted his, her or its shares of Series B Preferred Stock
      into Common Stock immediately prior to such dissolution, liquidation or winding
      up of the Corporation (the greater of which is hereinafter referred to as the
      "Series
      B Liquidation Amount").

    

    (c) Upon
      the
      completion of the distribution required by Sections
      4(a) and 4(b)
      and any
      other distributions that may be required with respect to series of Preferred
      Stock that may from time to time come into existence, if assets remain in the
      Corporation, the holders of Common Stock of the Corporation shall receive all
      of
      the remaining assets of this Corporation.

    

    (d)(i) For
      purposes of this Section
      4,
      a
      liquidation, dissolution or winding up of the Corporation shall be deemed to
      be
      occasioned by, or to include, (A) the acquisition of the Corporation by another
      entity my means of any transaction or series of related transactions (including,
      without limitation, any reorganization, merger or consolidation but, excluding
      any merger effected exclusively for the purpose of changing the domicile of
      the
      Corporation); or (B) a sale of all or substantially all of the assets of the
      Corporation; unless the Corporation’s shareholders of record as constituted
      immediately prior such acquisition or sale will, immediately after such
      acquisition or sale (by virtue of securities issued as consideration for the
      Corporation’s acquisition or sale or otherwise) hold at least 50% of the voting
      power of the surviving or acquiring entity.

    

    (ii) In
      any of
      such events, as a condition of, and upon closing of such transaction, and
      assuming the consideration paid in such transaction is entirely payable in
      cash
      and/or securities ("Traded
      Shares")
      publicly traded on a national exchange or Nasdaq, holders of Series B Preferred
      Stock shall be entitled to receive in liquidation of the holder’s entire
      interest in the Series B Preferred Stock an amount, payable in cash or in Traded
      Shares, or a combination thereof, per share equal to the Series B Liquidation
      Amount.

    

    (iii) In
      any of
      such events, as a condition of, and upon closing of such transaction, and
      assuming the consideration paid in such transaction is in part or in whole
      by
      shares of stock ("Non-Traded
      Shares")
      not
      qualifying as Traded Shares, and the Liquidation Amount is less than the Series
      B Liquidation Amount, holders of Series B Preferred Stock shall be entitled
      to
      receive in liquidation of the holder’s entire interest in the Series B Preferred
      Stock, at the election of the holder, either:

    

    (A) the
      Series B Liquidation Amount in cash, but not in excess of the cash consideration
      paid in the transaction less the Corporation’s expenses incurred in connection
      with such transaction and, to the extent cash is insufficient to pay the full
      Series B Liquidation Amount, the balance in Non-Traded Shares or other
      consideration determined by the Board of Directors to be reasonably equivalent
      to the balance of the Series B Liquidation Amount; or

    

    (B) the
      Series B Liquidation Amount, payable in cash and Non-Traded Shares in the same
      proportions as if the Series B Preferred Stock had been converted into Common
      Stock immediately prior to the transaction.

     

    
      
        
        

      

      
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    (e) For
      purposes of this Section
      4,
      the
      value of Traded Shares shall be deemed to be the average of the closing prices
      of the securities on such exchange over the thirty-day period ending three
      (3)
      days prior to closing.

    

    5. Conversion.
      The
      shares of Series B Preferred Stock shall be subject to conversion rights as
      follows (the "Conversion
      Rights"):

    

    (a) Holder
      Conversion Right.
      Subject
      to the limitation set forth in Section
      5(c),
      each
      share of Series B Preferred Stock shall be convertible, at the option of the
      holder thereof, at any time after the date of issuance of such share and on
      or
      prior to the day prior to the Liquidation Date, if any, as may have been fixed
      in any Liquidation Notice, at the office of this Corporation or any transfer
      agent for such stock, into such number of fully paid and nonassessable shares
      of
      Common Stock as is determined by dividing the Liquidation Preference by the
      Conversion Price applicable to such share, determined as hereafter provided,
      in
      effect on the date the certificate is surrendered for conversion. The
      "Conversion
      Price"
      per
      share shall initially be fixed at $0.10; subject to adjustment as set forth
      in
Section
      5(e).

    

    (b) Automatic
      Conversion.
      Each
      share of Series B Preferred Stock shall automatically be converted into shares
      of Common Stock at the Conversion Price at the time in effect for such Series
      B
      Preferred Stock immediately upon the earlier of (i) the Corporation’s sale of
      shares of its Common Stock in a firm commitment underwritten public offering
      pursuant to a registration statement under the Securities Act of 1933, the
      public offering price of which is not less than $0.30 per share (adjusted to
      reflect subsequent stock dividends, stock splits or recapitalizations) and
      in an
      aggregate amount not less than $10,000,000, or (ii) the date specified by
      written consent or agreement of the holders of not less than two-thirds of
      the
      then outstanding shares of Series B Preferred Stock.

    

    (c) Limitation
      on Conversion.
      The
      holders of shares of Series B Preferred Stock shall be prohibited from
      converting shares of Series B Preferred Stock pursuant to Section
      5(a),
      and the
      Corporation shall not honor any attempted conversion of Series B Preferred
      Stock, if, and to the extent, the shares of Common Stock held such converting
      holder of Series B Preferred Stock following any attempted conversion would
      exceed 4.99% of the outstanding shares of Common Stock of the Corporation after
      giving effect to such conversion.

    

    (d) Mechanics
      of Conversion.
      Before
      any holder of Series B Preferred Stock shall be entitled to convert the same
      into shares of Common Stock, he shall surrender the certificate or certificates
      therefor, duly endorsed, at the office of the Corporation or of any transfer
      agent for the Series B Preferred Stock, and shall give written notice to the
      Corporation at its principal office, of the election to convert the same and
      shall state therein the name or names in which the certificate or certificates
      for shares of Common Stock are to be issued. The Corporation shall, as soon
      as
      practicable thereafter, issue and deliver at such office to such holder of
      Series B Preferred Stock, or to the nominee or nominees of such holder, a
      certificate or certificates for the number of shares of Common Stock to which
      such holder shall be entitled as aforesaid. Such conversion shall be deemed
      to
      have been made immediately prior to the close of business on the date of such
      surrender of the shares of Series B Preferred Stock to be converted, and the
      person or persons entitled to receive the shares of Common Stock issuable upon
      such conversion shall be treated for all purposes as the record holder or
      holders of such shares of Common Stock as of such date. If conversion occurs,
      other than pursuant to an effective registration under the Securities Act of
      1933, certificates evidencing the shares of Common Stock issuable upon
      conversion shall bear the following restrictive legend:

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
      AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF EITHER AN
      EFFECTIVE REGISTRATION STATEMENT FOR THESE SHARES UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR AN OPINION OF COUNSEL THAT REGISTRATION IS NOT REQUIRED
      UNDER SAID ACT.

     

    
      
        
        

      

      
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    (e) Conversion
      Price Adjustments of Preferred Stock for Certain Dilutive Issuances, Splits
      and
      Combinations.
      The
      Conversion Price of the Series B Preferred Stock shall be subject to adjustment
      from time to time as follows:

    

    (i) Reserved

    

    (ii) Reserved

    

    (iii) In
      the
      event the Corporation should at any time or from time to time after the Purchase
      Date fix a record date for the effectuation of a split or subdivision of the
      outstanding shares of Common Stock or the determination of holders of Common
      Stock entitled to receive a dividend or other distribution payable in additional
      shares of Common Stock or other securities or rights convertible into, or
      entitling the holder thereof to receive directly or indirectly, additional
      shares of Common Stock (hereinafter referred to as "Common
      Stock Equivalents")
      without payment of any consideration by such holder for the additional shares
      of
      Common Stock or the Common Stock Equivalents (including the additional shares
      of
      Common Stock issuable upon conversion or exercise thereof), then, as of such
      record date (or the date of such dividend distribution, split or subdivision
      if
      no record date is fixed), the Conversion Price of the Series B Preferred Stock
      shall be appropriately decreased so that the number of shares of Common Stock
      issuable on conversion of each share of such series shall be increased in
      proportion to such increase of the aggregate of shares of Common Stock
      outstanding and those issuable with respect to such Common Stock
      Equivalents.

    

    (iv) If
      the
      number of shares of Common Stock outstanding at any time after the Purchase
      Date
      is decreased by a combination of the outstanding shares of Common Stock, then,
      following the record date of such combination, the Conversion Price for the
      Series B Preferred Stock shall be appropriately increased so that the number
      of
      shares of Common Stock issuable on conversion of each shares of such series
      shall be decreased in proportion to such decrease in outstanding
      shares.

    

    (f) Other
      Distributions.
      In the
      event the Corporation shall declare a distribution payable in securities of
      other persons, evidences of indebtedness issued by the Corporation or other
      persons, assets (excluding cash dividends) or options or rights not referred
      to
      in Section
      5(e)(iii),
      then,
      in each such case for the purpose of this Section
      5(f),
      the
      holders of the Series B Preferred Stock shall be entitled to a proportionate
      share of any such distribution as though they were the holders of the number
      of
      shares of Common Stock of the Corporation into which their shares of Series
      B
      Preferred Stock are convertible as of the record date fixed for the
      determination of the holders of Common Stock of the Corporation entitled to
      receive such distribution.

    

    (g) Recapitalization.
      If at
      any time or from time to time there shall be a recapitalization of the Common
      Stock (other than a subdivision, combination or merger or sale of assets
      transaction provided for elsewhere in this Section
      5)
      provision shall be made so that the holders of the Series B Preferred Stock
      shall thereafter be entitled to receive upon conversion of the Series B
      Preferred Stock the number of shares of stock or other securities or property
      of
      the Corporation or otherwise, to which a holder of Common Stock deliverable
      upon
      conversion would have been entitled on such recapitalization. In any such case,
      appropriate adjustment shall be made in the application of the provisions of
      this Section
      5
      with
      respect to the rights of the holders of the Series B Preferred Stock after
      the
      recapitalization to the end that the provisions of this Section
      5
      (including adjustment of the Conversion Price then in effect and the number
      of
      shares purchasable upon conversion of the Series B Preferred Stock) shall be
      applicable after that event as nearly equivalent as may be
      practicable.

    

    (h) No
      Impairment.
      The
      Corporation will not, by amendment of its Articles of Incorporation or through
      any reorganization, recapitalization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms to be observed
      or performed hereunder by the Corporation, but will at all times in good faith
      assist in the carrying out of all the provisions of this Section
      5
      and in
      taking of all such action as may be necessary or appropriate in order to protect
      the Conversion Rights of the holders of the Series B Preferred Stock against
      impairment.

     

    
      
        
        

      

      
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    (i) No
      Fractional Shares and Certificate as to Adjustments. 

    

    (i) No
      fractional shares shall be issued upon the conversion of any share or shares
      of
      the Series B Preferred Stock, and the number of shares of Common Stock to be
      issued shall be rounded to the nearest whole share. Whether or not fractional
      shares are issuable upon such conversion shall be determined on the basis of
      the
      total number of shares of Series B Preferred Stock the holder is at the time
      converting into Common Stock and the number of shares of Common Stock issuable
      upon such aggregate conversion.

    

    (ii) Upon
      the
      occurrence of each adjustment or readjustment of the Conversion Price of Series
      B Preferred Stock pursuant this Section
      5,
      the
      Corporation, at its expense, shall promptly compute such adjustment or
      readjustment in accordance with the terms hereof and prepare and furnish to
      each
      holder of Series B Preferred Stock a certificate setting forth such adjustment
      or readjustment and showing in detail the facts upon which such adjustment
      or
      readjustment is based. The Corporation shall, upon the written request at any
      time of any holder of Series B Preferred Stock, furnish or cause to be furnished
      to such holder a like certificate setting forth (A) such adjustment and
      readjustment, (B) the Conversion Price for the Series B Preferred Stock at
      the
      time in effect, and (C) the number of shares of Common Stock and the amount,
      if
      any, of other property which at the time would be received upon the conversion
      of a share of Series B Preferred Stock.

    

    (j) Notice
      of Record Dates.
      In the
      event of any taking by the Corporation of a record of the holders of any class
      of securities for the purpose of determining the holders thereof who are
      entitled to receive any dividend (other than a cash dividend) or other
      distribution, any right to subscribe for, purchase or otherwise acquire any
      shares of stock of any class or any other securities or property, or to receive
      any other right, the Corporation shall mail to each holder of Series B Preferred
      Stock, at least 20 days prior to the date specified therein, a notice specifying
      the date on which any such record is to be taken for the purpose of such
      dividend, distribution or right, and the amount and character of such dividend,
      distribution or right.

    

    (k) Reservation
      of Stock Issuable Upon Conversion.
      The
      Corporation shall at all times reserve and keep available out of its authorized
      but unissued shares of Common Stock, solely for the purpose of effecting the
      conversion of the shares of the Series B Preferred Stock, such number of shares
      of its Common Stock as shall from time to time be sufficient to effect the
      conversion of all outstanding shares of the Series B Preferred Stock; and if
      at
      any time the number of authorized shares of Common Stock shall not be sufficient
      to effect the conversion of all then outstanding shares of the Series B
      Preferred Stock, in addition to such other remedies as shall be available to
      the
      holder of such Preferred Stock, the Corporation will take such corporate action
      as may, in the opinion of its counsel, be necessary to increase its authorized
      but unissued shares of Common Stock to such number of shares as shall be
      sufficient for such purposes, including, without limitation, engaging in best
      efforts to obtain the requisite shareholder approval of any necessary amendment
      to the Corporation’s Articles of Incorporation.

    

    (l) Notices.
      Any
      notice required by the provisions of this Section
      5
      to be
      given to the holders of shares of the Series B Preferred Stock shall be deemed
      given if deposited in the United States mail, postage prepaid, and addressed
      to
      each holder of record at his address appearing on the books of the
      Corporation.

    

    6. Redemption.
      The
      shares of Series B Preferred Stock are not redeemable except in accordance
      with
      the liquidation provisions of Section 4.

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Certificate this ___ day
      of
      January 2007.

    

    INTELLIHOME,
      INC.

    

    

    By: /s/
      Mark
      Trimble 

    Name:
       Mark
      Trimble

    Title:
       President

    

    
      
        
        

      

      
        6THE
      JON ASHTON CORPORATION

    

    2005
      STOCK OPTION PLAN

    

    1.
      Purpose.
      The
      purpose of this The
      Jon Ashton Corporation 2005 Stock Option Plan ("Plan")
      is to encourage ownership of common stock, $0.001 par value ("Common Stock"),
      of
The
      Jon Ashton Corporation,
      a Texas
      corporation (the "Company"), by eligible key employees, consultants and
      directors of the Company and its Affiliates (as defined below) and to provide
      increased incentive for such employees, consultants and directors to render
      services and to exert maximum effort for the business success of the Company.
      In
      addition, the Company expects that this Plan will further strengthen the
      identification of employees, consultants and directors with the shareholders.
      Certain options to be granted under this Plan are intended to qualify as
      Incentive Stock Options ("ISOs") pursuant to Section 422 of the Internal Revenue
      Code of 1986, as amended ("Code"), while other options granted under this Plan
      will be nonqualified options which are not intended to qualify as ISOs
      ("Nonqualified Options"), either or both as provided in the agreements
      evidencing the options as provided in Section 6 hereof. As used in this Plan,
      the term "Affiliates" means any "parent corporation" of the Company and any
      "subsidiary corporation" of the Company within the meaning of Sections 424(e)
      and (f), respectively, of the Code.

    

    2.
      Administration.

    

    2.1
      Administration
      by the Board or the Compensation Committee.
      This
      Plan shall be administered by the Board of Directors (the "Board") unless the
      Board establishes a committee comprised of one or more of its members to carry
      out such administration, in which case administration of the Plan shall be
      by a
      Compensation Committee (the "Committee") designated by the Board of the Company,
      which shall also designate the Chairman of the Committee.

    

    2.2
      Board
      or Committee Action.
      The
      Board, or the Committee as appropriate, shall hold its meetings at such times
      and places as it may be determine. A majority of the members of such Board
      or
      Committee shall constitute a quorum, and all determinations of the Board or
      Committee shall be made by not less than a majority of its members. Any decision
      or determination reduced to writing and signed by a majority of the members
      shall be fully effective as if it had been made by a majority vote of its
      members at a meeting duly called and held. The Board or Committee may designate
      the Secretary of the Company or other Company employees to assist the Board
      or
      Committee in the administration of this Plan, and may grant authority to such
      persons to execute award agreements or other documents on behalf of the Board
      or
      the Committee and the Company. Any duly constituted committee of the Board
      satisfying the qualifications of this Section 2 may be appointed as the
      Committee.

    

    2.3
      Expenses.
      All
      expenses and liabilities incurred by the Board or the Committee in the
      administration of this Plan shall be borne by the Company. The Board or the
      Committee may employ attorneys, consultants, accountants or other
      persons.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.
      Stock
      Reserved.
      The
      aggregate number of shares of Common Stock that may be optioned under this
      Plan
      is 1,000,000. The shares subject to this Plan shall consist of authorized but
      unissued shares of Common Stock and such number of shares shall be and is hereby
      reserved for sale for such purpose. Any of such shares which may remain unsold
      and which are not subject to outstanding options at the termination of this
      Plan
      shall cease to be reserved for the purpose of this Plan, but until termination
      of this Plan or the termination of the last of the options granted under this
      Plan, whichever last occurs, the Company shall at all times reserve a sufficient
      number of shares to meet the requirements of this Plan. Should any option expire
      or be canceled prior to its exercise in full, the shares theretofore subject
      to
      such option may again be made subject to an option under this Plan.

    

    4.
      Eligibility.
      The
      persons eligible to participate in this Plan as a recipient of options
      ("Optionee") shall include only key employees, consultants and directors of
      the
      Company or its Affiliates at the time the option is granted. An employee or
      consultant who has been granted an option hereunder may be granted an additional
      option or options, if the Board or the Committee, as appropriate, shall so
      determine.

    

    5.
      Grant
      of Options.

    

    5.1
      Discretion.
      The
      Board or Committee, as appropriate, shall have sole and absolute discretionary
      authority (i) to determine, authorize, and designate those key employees,
      consultants and directors of the Company or its Affiliates who are to receive
      options under this Plan, (ii) to determine the number of shares of Common Stock
      to be covered by such options and the terms thereof, and (iii) to determine
      the
      type of option granted: ISOs, Nonqualified Options or a combination of ISOs
      and
      Nonqualified Options; provided that consultants and directors who are not
      employees of the Company may not receive any ISOs. The Board or Committee shall
      thereupon grant options in accordance with such determination as evidenced
      by a
      written option agreement. Subject to the express provisions of this Plan, the
      Board or the Committee shall have discretionary authority to prescribe, amend
      and rescind rules and regulations relating to this Plan, to interpret this
      Plan,
      to prescribe and amend the terms of the option agreements (which need not be
      identical) and to make all other determinations deemed necessary or advisable
      for the administration of this Plan.

    

    5.2
      Shareholder
      Approval.
      All
      options granted under this Plan are subject to, and may not be exercised before,
      the approval of this Plan by the shareholders prior to the first anniversary
      date of the Board meeting held to approve this Plan, by the affirmative vote
      of
      the holders of a majority of the outstanding shares of the Company present,
      or
      represented by proxy, and entitled to vote thereat or written consent in
      accordance with the laws of the State of Texas; provided that if such approval
      by the shareholders of the Company is not forthcoming, all options previously
      granted under this Plan shall be void.

    

    5.3
      Limitation
      on Incentive Stock Options.
      The
      aggregate fair market value (determined in accordance with Section 6.2 of this
      Plan at the time the option is granted) of the Common Stock with respect to
      which ISOs may be exercisable for the first time by any Optionee during any
      calendar year under all such plans of the Company and its Affiliates shall
      not
      exceed $100,000.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    6.
      Terms
      and Conditions.
      Each
      option granted under this Plan shall be evidenced by an agreement, in a form
      approved by the Board or the Committee, which shall be subject to the following
      express terms and conditions and to such other terms and conditions as the
      Board
      or the Committee may deem appropriate.

    

    6.1
      Option
      Period.
      The
      Board or the Committee shall promptly notify the Optionee of the option grant
      and a written agreement shall promptly be executed and delivered by and on
      behalf of the Company and the Optionee, provided that the option grant shall
      expire if a written agreement is not signed by said Optionee (or his agent
      or
      attorney) and returned to the Company within 60 days from date of receipt by
      the
      Optionee of such agreement. The date of grant shall be the date the option
      is
      actually granted by the Board or the Committee, even though the written
      agreement may be executed and delivered by the Company and the Optionee after
      that date. Each option agreement shall specify the period for which the option
      thereunder is granted (which in no event shall exceed ten years from the date
      of
      grant in the case of an ISO) and shall provide that the ISO shall expire at
      the
      end of such period. If the original term of an option is less than ten years
      from the date of grant, the option may be amended prior to its expiration,
      with
      the approval of the Board or the Committee and the Optionee, to extend the
      term
      so that the term as amended is not more than ten years from the date of grant.
      However, in the case of an ISO granted to an individual who, at the time of
      grant, owns stock possessing more than 10 percent of the total combined voting
      power of all classes of stock of the Company or its Affiliate ("Ten Percent
      Stockholder"), such period shall not exceed five years from the date of
      grant.

    

    6.2
      Exercise
      Price.
      The
      exercise price of each share of Common Stock subject to each option granted
      pursuant to this option is granted and, in the case of ISOs, shall not be less
      than 100% of the fair market value of a share of Common Stock on the date the
      option is granted, as determined by the Board or the Committee. In the case
      of
      ISOs granted to a Ten Percent Stockholder, the exercise price shall not be
      less
      than 110% of the fair market value of a share of Common Stock on the date the
      option is granted. The exercise price of each share of Common Stock subject
      to a
      Nonqualified Option under this Plan shall be determined by the Board or the
      Committee prior to granting the option. The Board or the Committee shall set
      the
      exercise price for each share subject to a Nonqualified Option at such price
      as
      the Board or the Committee in its sole discretion shall determine, provided
      that
      the exercise price of each share of Common Stock subject to a Nonqualified
      Option shall not be less than 85% of the fair market value of a share of Common
      Stock on the date the option is granted as determined by the Board or the
      Committee.

    

    For
      all
      purposes under this Plan, the fair market value of a share of Common Stock
      on a
      particular date shall be equal to the mean of the reported high and low sales
      prices of the Common Stock on the principal market on which the Common Stock
      is
      listed on that date, or if no prices are reported on that date, on the last
      preceding date on which such prices of the Common Stock are so reported. If
      the
      Common Stock is not traded on public market at the time a determination of
      its
      fair market value is required to be made hereunder, its fair market value shall
      be deemed to be equal to the average between the closing bid and ask prices
      of
      the Common Stock on the most recent date the Common Stock was publicly traded.
      In the event the Common Stock is not publicly traded at the time a determination
      of its value is required to be made hereunder, the determination of its fair
      market value shall be made by the Board or the Committee in such manner as
      it
      deems appropriate.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    6.3
      Exercise
      Period.
      The
      Board or the Committee may provide in the option agreement that an option may
      be
      exercised immediately or over the period of the grant and in whole or in
      increments. However, no portion of any option may be exercisable by an Optionee
      prior to the approval of this Plan by the shareholders of the
      Company.

    

    6.4
      Procedure
      for Exercise.
      Options
      shall be exercised by the delivery by the Optionee of written notice to the
      Secretary of the Company setting forth the number of shares of Common Stock
      with
      respect to which the option is being exercised. The notice shall be accompanied
      by, at the election of the Optionee and as permitted by the Board or the
      Committee in the Agreement granting such options, (i) cash, cashier's check,
      bank draft, or postal or express money order payable to the order of the
      Company, (ii) certificates representing shares of Common Stock theretofore
      owned
      by the Optionee duly endorsed for transfer to the Company, (iii) an election
      by
      the Optionee to have the Company withhold the number of shares of Common Stock
      the fair market value, less the exercise price, of which is equal to the
      aggregate exercise price of the shares of Common Stock issuable upon exercise
      of
      the option, or (iv) any combination of the preceding, equal in value to the
      full
      amount of the exercise price. Notice may also be delivered by telecopy provided
      that the exercise price of such shares is received by the Company via wire
      transfer on the same day the telecopy transmission is received by the Company.
      The notice shall specify the address to which the certificates for such shares
      are to be mailed. An option to purchase shares of Common Stock in accordance
      with this Plan, shall be deemed to have been exercised immediately prior to
      the
      close of business on the date (i) written notice of such exercise and (ii)
      payment in full of the exercise price for the number of share for which options
      are being exercised, are both received by the Company and the Optionee shall
      be
      treated for all purposes as the record holder of such shares of Common Stock
      as
      of such date.

    

    As
      promptly as practicable after receipt of such written notice and payment, the
      Company shall deliver to the Optionee certificates for the number of shares
      with
      respect to which such option has been so exercised, issued in the Optionee's
      name or such other name as Optionee directs; provided, however, that such
      delivery shall be deemed effected for all purposes when a stock transfer agent
      of the Company shall have deposited such certificates in the United States
      mail,
      addressed to the Optionee at the address specified pursuant to this Section
      6.4.

    

    6.5
      Termination
      of Employment.
      If an
      employee to whom an option is granted ceases to be employed by the Company
      or
      its affiliates for any reason other than death or disability or if a director
      or
      consultant to whom an option is granted ceases to serve on the Board or as
      a
      consultant for any reason other than death or disability, any option which
      is
      exercisable on the date of such termination of employment or cessation of
      serving on the Board or cessation of service as a consultant shall expire
      three-months from the date of such termination or cessation but in no event
      may
      the option be exercised after its expiration under the terms of the option
      agreement.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    6.6
      Disability
      or Death.
      In the
      event the Optionee dies or is determined under this Plan to be disabled while
      the Optionee is employed by the Company or its Affiliates, acts as consultant
      or
      while serves on the Board of the Company, the options previously granted to
      the
      Optionee may be exercised (to the extent the Optionee would have been entitled
      to do so at the date of death or the determination of disability) at any time
      and from time to time, within a three-month period after such death or
      determination of disability, by the Optionee, the guardian of the Optionee's
      estate, the executor or administrator of the Optionee's estate or by the person
      or persons to whom the Optionee's rights under the option shall pass by will
      or
      the laws of descent and distribution, but in no event may the option be
      exercised after its expiration under the terms of the option agreement. An
      Optionee shall be deemed to be disabled if, in the opinion of a physician
      selected by the Board or the Committee, the Optionee is incapable of performing
      services for the Company of the kind the Optionee was performing at the time
      the
      disability occurred by reason of any medically determinable physical or mental
      impairment which can be expected to result in death or to be of long, continued
      and indefinite duration. The date of determination of disability for purposes
      hereof shall be the date of such determination by such physician.

    

    6.7
      Transferability.
      An
      option granted pursuant to this Plan shall not be assignable or otherwise
      transferable by the Optionee otherwise than by Optionee's will or by the laws
      of
      descent and distribution or pursuant to a qualified domestic relations order
      as
      defined in the code or Title I of the Employee Retirement Income Security Act,
      as amended, or the rules thereunder. During the lifetime of an Optionee, an
      option shall be exercisable only by such Optionee. Any heir or legatee of the
      Optionee shall take rights granted herein and in the option agreement subject
      to
      the terms and conditions hereof and thereof. No such transfer of any option
      to
      heirs or legatees of the Optionee shall be effective to bind the Company unless
      the Company shall have been furnished with written notice thereof and a copy
      of
      such evidence as the Board or the Committee may deem necessary to establish
      the
      validity of the transfer and the acceptance by the transferee or transferees
      of
      the terms and conditions hereof.

    

    6.8
      Incentive
      Stock Options.
      Each
      option agreement may contain such terms and provisions as the Board or the
      Committee may determine to be necessary or desirable in order to qualify under
      the Code of option designated as an incentive stock option.

    

    6.9
      No
      Rights as Shareholder.
      No
      Optionee shall have any rights as a shareholder with respect to shares covered
      by an option until the option is exercised by written notice and accompanied
      by
      payment as provided in Section 6.4 above.

    

    6.10
      Extraordinary
      Corporate Transactions.
      The
      existence of outstanding options shall not affect in any way the right or power
      of the Company or its shareholders to make or authorize any or all adjustments,
      recapitalizations, reorganizations, exchanges, or other changes in the Company's
      capital structure or its business, or any merger or consolidation of the
      Company, or any issuance of Common Stock or other securities or subscription
      rights thereto, or any issuance of bonds, debentures, preferred or prior
      preference stock ahead of or affecting the Common Stock or the rights thereof,
      or the dissolution or liquidation of the Company, or any sale or transfer of
      all
      or any part of its assets or business, or any other corporate act or proceeding,
      whether of a similar character or otherwise. If the Company recapitalizes or
      otherwise changes its capital structure, or merges, consolidates, sells all
      of
      its assets or dissolves (each of the forgoing a "Fundamental Change"), then
      thereafter upon any exercise of an option theretofore granted the Optionee
      shall
      be entitled to purchase under such option, in lieu of the number of shares
      of
      Common Stock as to which option shall then be exercisable, the number and class
      of shares of stock and securities to which the Optionee would have been entitled
      pursuant to the terms of the Fundamental Change if, immediately prior to such
      Fundamental Change, the Optionee had been the holder of record of the number
      of
      shares of Common Stock as to which such option is then exercisable. If (i)
      the
      Company shall not be the surviving entity in any merger or consolidation (or
      survives only as a subsidiary of another entity), (ii) the Company sells all
      or
      substantially all of its assets to any other person or entity (other than a
      wholly-owned subsidiary), (iii) any person or entity (including a "group" as
      contemplated by Section 13(d)(3) of the Exchange Act) acquires or gains
      ownership or control of (including, without limitation, power to vote) more
      than
      50% of the outstanding shares of Common Stock, (iv) the Company is to be
      dissolved and liquidated, or (v) as a result of or in connection with a
      contested election of directors, the persons who were directors of the Company
      before such election shall cease to constitute a majority of the Board (each
      such event in clauses (i) through (v) above is referred to herein as a
      "Corporate Change"), the committee, in its sole discretion, may accelerate
      the
      time at which all or a portion of an Optionee's options may be exercised for
      a
      limited period of time before or after a specified date.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    6.11
      Changes
      in Capital Structure.
      If the
      outstanding shares of Common Stock or other securities of the Company, or both,
      for which the option is then exercisable shall at any time be changed or
      exchanged by declaration of a stock dividend, stock split, combination of shares
      or recapitalization, the number and kind of shares of Common Stock or other
      securities which are subject to this Plan or subject to any options theretofore
      granted, and the exercise prices, shall be appropriately and equitably adjusted
      so as to maintain the proportionate number of shares or other securities without
      changing the aggregate exercise price.

    

    6.12
      Acceleration
      of Options.
      Except
      as hereinbefore expressly provided, (i) the issuance by the Company of shares
      of
      stock of any class of securities convertible into shares of stock of any class,
      for cash, property, labor or services, upon direct sale, upon the exercise
      of
      rights or warrants to subscribe therefor, or upon conversion of shares or
      obligations of the Company convertible into such shares or other securities,
      (ii) the payment of a dividend in property other than Common Stock, or (iii)
      the
      occurrence of any similar transaction, and in any case whether or not for fair
      value, shall not affect, and no adjustment by reason thereof shall be made
      with
      respect to, the number of shares of Common Stock subject to options thereto
      fore
      granted or the purchase price per share, unless the Board or the Committee
      shall
      determine in its sole discretion that an adjustment is necessary to provide
      equitable treatment to Optionee. Notwithstanding anything to the contrary
      contained in this Plan, the Board or the Committee may in its sole discretion
      accelerate the time at which any option may be exercised, including, but not
      limited to, upon the occurrence of the events specified in this Section
      6.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    7.
      Amendments
      or Termination.
      The
      Board may amend, alter or discontinue this Plan, but no amendment or alteration
      shall be made which would impair the rights of any Optionee, without his
      consent, under any option theretofore granted, or which, without the approval
      of
      the shareholders, would: (i) except as is provided in Section 6.11 of this
      Plan,
      increase the total number of shares reserved for the purposes of this Plan,
      (ii)
      change the class of persons eligible to participate in this Plan as provided
      in
      Section 4 of this Plan, (iii) extend the applicable maximum option period
      provided for in Section 6.1 of this Plan, (iv) extend the expiration date of
      this Plan set forth in Section 14 of this Plan, (v) except as provided in
      Section 6.11 of this Plan, decrease to any extent the exercise price of any
      option granted under this Plan or (vi) withdraw the administration of this
      Plan
      from the Board or the Committee.

    

    8.
      Compliance
      With Other Laws and Regulations.
      This
      Plan, the grant and exercise of options thereunder, and the obligation of the
      Company to sell and deliver shares under such options, shall be subject to
      all
      applicable federal and state laws, rules and regulations and to such approvals
      by any governmental or regulatory agency as may be required. The Company shall
      not be required to issue or deliver any certificates for shares of Common Stock
      prior to the completion of any registration or qualification of such shares
      under any federal or state law or issuance of any ruling or regulation of any
      government body which the Company shall, in its sole discretion, determine
      to be
      necessary or advisable. Any adjustments provided for in Sections 6.10, .11
      and
      .12 of this Plan shall be subject to any shareholder action required by Nevada
      corporate law.

    

    9.
      Purchase
      for Investment.
      Unless
      the options and shares of Common Stock covered by this Plan have been registered
      under the Securities Act of 1933, as amended, or the Company has determined
      that
      such registration is unnecessary, each person exercising an option under this
      Plan may be required by the Company to give a representation in writing that
      such person is acquiring such shares for his or her own account for investment
      and not with a view to, or for sale in connection with, the distribution of
      any
      part thereof.

    

    10.
      Taxes.

    

    10.1
      The
      Company may make such provisions as it may deem appropriate for the withholding
      of any taxes which it determines is required in connection with any options
      granted under this Plan.

    

    10.2
      Notwithstanding the terms of Section 10.1, each Optionee must pay all taxes
      required to be withheld by the Company or paid by the Optionee in connection
      with the exercise of a Nonqualified Option.

    

    11.
      Replacement
      of Options.
      The
      Board or the Committee from time to time may permit an Optionee under this
      Plan
      to surrender for cancellation any unexercised outstanding option and receive
      from the Company in exchange an option for such number of shares of Common
      Stock
      as may be designated by the Board or the Committee. The Board or the Committee
      may, with the consent of the person entitled to exercise any outstanding option,
      amend such option, including reducing the exercise price of any option to not
      less than the fair market value of the Common Stock at the time of the amendment
      and extending the term thereof.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    12.
      No
      Right to Employment.
      Employees shall be considered to be in the employment of the Company so long
      as
      they remain employees of the Company or its Affiliates. Any questions as to
      whether and when there has been a termination of such employment and the cause
      of such termination shall be determined by the Board or the Committee, and
      its
      determination shall be final. Nothing contained herein shall be construed as
      conferring upon the Optionee the right to continue in the employ of the Company
      or its Affiliates, nor shall anything contained herein be construed or
      interpreted to limit the "employment at will" relationship between the Optionee
      and the Company or its Affiliates. The option agreements may contain such
      provisions as the Board or the Committee may approve with reference to the
      effect of approved leaves of absence.

    

    13.
      Liability
      of Company for Non-Issuance of Shares and Tax Consequences.
      The
      Company and any Affiliates that are in existence or hereafter come into
      existence shall not be liable to an Optionee or other persons as
      to:

    

    13.1
      The
      non-issuance or sale of shares as to which the Company has been unable to obtain
      from any regulatory body having jurisdiction the authority deemed by the
      Company's counsel to be necessary to the lawful issuance and sale of any shares
      hereunder; and

    

    13.2
      Any
      tax consequence expected, but not realized, by any Optionee or other person
      due
      to the exercise of any option granted hereunder.

    

    14.
      Effectiveness
      and Expiration of Plan.
      This
      Plan shall be effective on the date of adoption by the Board. If the
      shareholders of the Company fail to approve this Plan within twelve months
      of
      the date of the Board adoption, this Plan shall terminate and all options
      previously granted under this Plan shall become void and of no effect. This
      Plan
      shall expire ten years after the date of the Board adopts this Plan and
      thereafter no option shall be granted pursuant to this Plan.

    

    15.
      Non-Exclusivity
      of this Plan.
      Neither
      the adoption by the Board nor the submission for approval of this Plan to the
      shareholders of the Company shall be construed as creating any limitations
      on
      the power of the Board to adopt such other incentive arrangements as it may
      deem
      desirable, including without limitation, the granting of restricted stock or
      stock options otherwise than under this Plan, and such arrangements may be
      either generally applicable or applicable only in specific cases.

    

    16.
      Governing
      Law.
      This
      Plan and any agreements hereunder shall be interpreted and construed in
      accordance with the laws of the State of Texas and applicable federal
      law.

    

    17.
      Cashless
      Exercise.
      The
      Board or the Committee also may allow cashless exercises as permitted under
      the
      Federal Reserve Board's Regulation T, subject to applicable securities law
      restrictions, or by any other means which the Board or the Committee determines
      to be consistent with this Plan's purpose and applicable law. The proceeds
      from
      such a payment shall be added to the general funds of the Company and shall
      be
      used for general corporate purposes.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, and as conclusive evidence of the adoption of the foregoing
      by
      directors of the Company, The Jon Ashton Corporation has caused these presents
      to be duly executed in its name and behalf by its proper officers thereunto
      duly
      authorized as of this 10th day of October 2005.

     

    
      	 	 	 
	 	THE
              JON
              ASHTON CORPORATION
	 
ATTEST:	 
 	 
 
	 	By:  	/s/ Mark
              Trimble
	/s/ John Peper	Name:  	Mark Trimble
	Secretary	Title:	President

    

     

    
      
         

      

      
        9

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