Document:

Exhibit 10.6 to 8-K

                             [Letterhead of Diomed]

                                February 15, 2005

Mr. Kevin Stearn
c/o Diomed Limited
One Dundee Park
Andover, MA 01810

Dear Kevin:

This letter refers to the agreement dated September 4, 2001, between you and
Diomed, Ltd. (the "Company") (the "Agreement"). After consideration by the
Compensation Committee of the Board of Directors of Diomed Holdings, Inc., the
Company has determined to extend to you a right to receive severance pay that
may become payable under certain circumstance set forth below in this letter.

Subject to your acceptance of the following terms and conditions, the Company
proposes to amend the Agreement by the following new Section 18 thereto:

         "18. ADDITIONAL SEVERANCE.

         If the Company terminates your employment without Cause (as defined
         below in this Section), you shall be entitled to receive as severance
         an amount equal to twelve (12) months of your annual base salary at the
         time in effect (including the three (3) month notice period provided
         for in Section 11.3 of the Agreement) and subject to deduction of
         income tax and national insurance contributions as appropriate as
         liquidated damages in full and final settlement of all your claims
         arising from such termination, payable in a single lump sum payable
         within ten (10) business days of the date on which you receive notice
         of termination of employment;

         provided, that the Company shall have no obligation to make any
         severance payment to you

         (i) to the extent permitted under applicable law, unless and until you
         execute and deliver to the Company compromise agreement which satisfies
         the conditions regulating compromise agreements under s.203 of the
         Employment Rights Act and any other acts which may be applicable in
         full satisfaction of all claims arising from the termination of your
         employment, or

         (ii) if you breach your obligation not to compete with the Company or
         not to divulge confidential information of the Company as set forth in
         the Agreement, or

         (iii) if you voluntarily terminate your employment.
<PAGE>

         For all purposes of the Agreement, "Cause" shall mean:

         (i) your embezzlement, willful breach of fiduciary duty or fraud with
         regard to the Company or any of the Company's assets or businesses;

         (ii) your conviction of any criminal offense (other than a traffic
         violation);

         (iii) your behavior, which is likely in the reasonable opinion of the
         Company to prejudice the interests or reputation of the Company, or;

         (iv) any other breach by you of a material provision of the terms of
         your employment hereunder that remains uncured for thirty (30) days
         after written notice thereof is given to you. If the Company terminates
         your employment for Cause, the Company shall have no further obligation
         or liability to you relating to your employment hereunder, or the
         termination thereof, other than for your base salary earned but unpaid
         through to the date of termination."

Except as expressly set forth herein, the Agreement will remain in full force
and effect without further amendment of any other provision thereof.

To indicate your agreement with the foregoing, please sign in the space provided
below and return an original executed counterpart to me, whereupon the
Agreement, as amended hereby, will be a binding and enforceable agreement
between you and the Company.

                                          Very truly yours,

                                          /s/  James A. Wylie, Jr.
                                          --------------------------------------
                                          James A. Wylie, Jr.
                                          President and Chief Executive Officer

Accepted and agreed to:

  /s/  Kevin Stearn
  ----------------------
  Kevin StearnEXHIBIT 4.1

                         DYNA GROUP INTERNATIONAL, INC.

                          2005 Stock Compensation Plan

1. PURPOSE. This Plan is intended to provide employees, directors, consultants
and other individuals (individually, a "Participant" and, collectively, the
"Participants") rendering services to or on behalf of Dyna Group International,
Inc. (the "Corporation") and/or one or more of its subsidiaries (individually, a
"Subsidiary" and, collectively, the "Subsidiaries") an opportunity to acquire an
equity interest in the Corporation. The Corporation intends to use the Plan to
link the long-term interests of shareholders of the Corporation and Plan
Participants, attract and retain Participants' services, motivate Participants
to increase the Corporation's value, and create flexibility in compensating
Participants. The Plan allows the Corporation to reward Participants with (i)
incentive stock options and/or non-qualified stock options to purchase shares of
Common Stock, $.001 par value per share (the "Common Stock"), of the
Corporation, (ii) stock appreciation rights with respect to shares of Common
Stock, (iii) performance share awards which are designated as a specified number
of shares of Common Stock and earned based on performance, and (iv) performance
unit awards which are designated as having a certain value per unit and earned
based on performance (individually an "Award" and collectively the "Awards").
The Corporation has reserved the number of shares of Common Stock of the
Corporation specified in Section 6(a) for purposes of the Plan.

2. DEFINITIONS. The following words have the meanings set forth below when used
in the Plan or any Award.

      "Award" shall mean any grant of a benefit under the Plan.

      "Award Agreement" shall mean, with respect to each Award, the signed
      written agreement between the Corporation and the Participant receiving
      the Award setting forth the terms and conditions of the Award. The general
      terms and conditions described in this Plan with respect to such type of
      Award shall be incorporated by reference into the Award Agreement and
      shall apply to such Award, except to the extent specifically provided
      otherwise in the Award Agreement.

      "Board" shall mean the Board of Directors of the Corporation.

      "Change-in-Control" of the Corporation shall mean any of the following
      events occurring on or following the Effective Date of the Plan: (i) any
      Person (other than those Persons in control of the corporation on the
      Effective Date of the Plan, a trustee or other fiduciary holding
      securities under an employee benefit plan of the Corporation, or a
      corporation owned directly or indirectly by the stockholders of the
      Corporation in substantially the same proportions as their ownership of
      stock of the Corporation) becomes the beneficial owner, directly or
      indirectly, of securities of the Corporation representing fifty percent
      (50%) or more of the combined Voting Power of the Corporation's then

<PAGE>

      outstanding securities; or (ii) individuals who on the Effective Date
      constitute the Board (and any new Director whose election by the
      Corporation'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 to constitute a majority thereof; or
      (iii) the stockholders of the Corporation approve (A) a plan of complete
      liquidation of the Corporation, (B) an agreement for the sale or
      disposition of all or substantially all the Corporation's assets other
      than to Person controlled by the Corporation or by the stockholders of the
      Corporation, or (C) a merger, consolidation, or reorganization of the
      Corporation with or involving any other entity, other than a merger,
      consolidation, or reorganization that would result in the voting
      securities of the Corporation outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or by being
      converted into voting securities of the surviving entity) at least fifty
      percent (50%) of the combined Voting Power of the securities of the
      Corporation (or such surviving entity) outstanding immediately after such
      merger, consolidation, or reorganization. However, in no event shall a
      Change-in-Control be deemed to have occurred with respect to a
      Participant, if the Participant is part of a purchasing group which
      consummates the Change-in-Control transaction. The Participant shall be
      deemed "part of a purchasing group" for purposes of the preceding sentence
      if the Participant is either directly or indirectly an equity participant
      in the purchasing group (except for passive ownership of less than three
      percent (3%) of the stock of the purchasing group or ownership of equity
      participation in the purchasing group which is otherwise not significant,
      as determined prior to the Change-in-Control by the Committee).

      "Code" shall mean the Internal Revenue Code of 1986, as amended.

      "Committee" shall mean any special committee appointed by the Board in
      accordance with Section 4 to administer the Plan, or if no such committee
      has been appointed by the Board, the Board.

      "Common Stock" shall mean the Common Stock, $.001 par value per share, of
      the Corporation, as constituted on the Effective Date of the Plan, or any
      shares or securities into which the Common Stock may be changed,
      reclassified, subdivided, consolidated or converted thereafter.

      "Consultant" shall mean any natural person who is not an Employee or
      Director and who has or will render services to or on behalf of the
      Corporation or a Subsidiary.

      "Corporation" shall mean Dyna Group International, Inc., a corporation
      organized under the laws of the State of Nevada, and any successor or
      continuing corporation resulting from the amalgamation of the Corporation
      and any other corporation or resulting from any other form of corporate
      reorganization of the Corporation.

      "Director" shall mean a member of the Board.

<PAGE>

      "Effective Date" shall mean February 8, 2005.

      "Employee" shall mean any individual, including an officer, who is a
      common law employee of the Corporation or a Subsidiary.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

      "Exercise Price" shall mean: (i) with respect to an Option, the price per
      Share at which the Option may be exercised, as determined by the Committee
      and as specified in the Participant's Award Agreement; or (ii) with
      respect to a Stock Appreciation Right, the price per Share which is the
      base price for determining the future value of the Stock Appreciation
      Right, as determined by the Committee and as specified in the
      Participant's Award Agreement.

      "Fair Market Value" shall mean the value of one Share determined as of any
      specified date as follows: (i) if the Shares are traded on any recognized
      United States securities exchange, the value per Share shall be the
      closing price of the Common Stock on the business day immediately
      preceding such specified date (or, if there are no sales on that day, the
      last preceding day on which there was a sale) on the principal exchange on
      which the Common Stock is traded; (ii) if the Shares are not traded on any
      United States securities exchange but are traded on any formal
      over-the-counter quotation system in general use in the United States, the
      value per Share shall be the mean between the closing bid and closing
      asked quotations for the Common Stock on the business day immediately
      preceding such specified date (or, if there are no such quotations on that
      day, the last preceding day on which there were such quotations) on the
      principal system on which the Common Stock is traded; or (iii) if neither
      Paragraph (i) nor (ii) applies, then the value per Share shall be
      determined by the Committee in good faith as an estimate of the value per
      Share a willing purchaser would pay a willing seller in an arms' length
      transaction with both parties having full knowledge of all relevant
      material facts and neither party being compelled to buy or sell. Such
      determination shall be conclusive and binding on all persons. The
      Committee may engage an independent appraiser to determine the Fair Market
      Value of the Shares on any date.

      "For Cause" shall mean the termination of a Participant's status as an
      Employee, a Director or Consultant (as applicable) for (i) willful failure
      to substantially perform the Participant's duties (other than any such
      failure resulting from the Participant's Total and Permanent Disability);
      (ii) material breach of any employment, consulting, confidentiality or
      similar agreement with the Corporation or a Subsidiary; (iii) conviction
      (whether after trial, plea of guilty or plea of nolo contendere) of any
      act of fraud, embezzlement, theft, or other act constituting a felony; or
      (iv) gross misconduct or willful violation of a Corporation or a
      Subsidiary policy which is materially and demonstrably injurious to the
      Corporation and/or a Subsidiary; provided, however, no act or failure to
      act on the Participant's part shall be considered "willful" if done, or
      omitted to be done, by the Participant in good faith and with the
      reasonable belief that the Participant's action or omission was in the
      best interest of the Corporation or the Subsidiary.

<PAGE>

      "Incentive Stock Option" shall mean an Option of the type which is
      described in Section 422(b) of the Code.

      "Non-Employee Director" shall mean a member of the Board who is not an
      Employee of the Corporation or any Subsidiary.

      "Non-qualified Stock Option" shall mean an Option which is not of the type
      described in Section 422(b) of the Code.

      "Option" shall mean the right to purchase one or more Shares of Common
      Stock, whether granted as an Incentive Stock Option or as a Non-qualified
      Stock Option, for a specified price.

      "Participant" shall mean any individual to whom an Award has been granted
      under the Plan, and any Permitted Transferee of such Award.

      "Performance Share" shall mean an Award designated as a specified number
      of Shares which may, in whole or in part, be earned by and paid to a
      Participant at the end of a performance period based on the achievement of
      the performance objectives specified in the Participant's Award Agreement.

      "Performance Unit" shall mean an Award designated as a specified dollar
      value which may, in whole or in part, be earned by and paid to the
      Participant at the end of a performance period based on the achievement of
      the performance objectives specified in the Participant's Award Agreement.

      "Permitted Transferee" shall mean, with respect to an individual to whom
      an Award has been granted under the Plan, (i) the spouse or child or
      children of such individual or a trust or other entity established for
      their benefit; (ii) the duly appointed conservator or other legal
      representative of a mentally incompetent Participant; and (iii) the estate
      of a deceased Participant.

      "Person" shall have the meaning ascribed to such term in Section 3(a)(9)
      of the Exchange Act and used in Sections 14(d) and 14(d) thereof,
      including a "group" as defined in Section 14(d).

      "Plan"  shall  mean  this  Dyna  Group  International,  Inc.  2005  Stock
      Compensation Plan, as amended.

      "Restricted Stock" shall mean Share(s) of Common Stock issued to a
      Participant which will Vest in accordance with the conditions specified in
      the Participant's Award Agreement.

<PAGE>

      "Retirement" shall mean, except as otherwise specifically provided in an
      Award Agreement: (i) a Participant's voluntary termination of employment
      with the Corporation at or following "normal retirement age" (as defined
      in the Corporation's or the Subsidiary's qualified 401(k) retirement plan
      covering the Participant); or (ii) If there is no such plan, the
      Participant's voluntary termination of employment with the Corporation
      and, if applicable, all Subsidiaries at or following age 65.

      "Share" shall mean one authorized share of Common Stock.

      "Stock Appreciation Right" or "SAR" shall mean a right issued to a
      Participant to receive all or any portion of the future appreciation in
      the Fair Market Value of one Share over the Exercise Price provided in the
      Participant's Award Agreement.

      "Subsidiary" shall mean: (i) for purposes of granting Incentive Stock
      Options, any corporation (other than the Corporation) in an unbroken chain
      of corporations beginning with the Corporation if, at the time of granting
      an Award, each of the corporations (other than the last corporation in the
      unbroken chain) owns stock possessing 80% or more of the voting power in
      one of the other corporations in such chain; and (ii) for all other
      purposes of the Plan, any business entity (other than the Corporation) in
      which the Corporation has an equity interest.

      "Tandem Option/Stock Appreciation Right" shall mean an Option to purchase
      a specified number of Share(s) and a Stock Appreciation Right granted with
      respect to a specified number of Share(s) which are granted together and
      designated as a "Tandem Option/SAR" in the Participant's Award Agreement,
      whereby the exercise of either the Option or the SAR cancels the other
      granted in tandem with it.

      "Ten Percent Stockholder" shall, for purposes of granting Incentive Stock
      Options, have the meaning ascribed to such term in Code Section 422(b)(6)
      or in any successor provision of the Code.

      "Total and Permanent Disability" shall mean with respect to a Participant:
      (i) the mental or physical disability which satisfies the definition of
      "total disability" in the principal long-term disability policy or plan
      provided by the Corporation or a Subsidiary covering the Participant; or
      (ii) if no such policy is then covering the Participant, a physical or
      mental infirmity which, as determined by the Committee upon receipt of and
      in reliance on sufficient competent medical advice from one or more
      individuals selected by the Committee who are qualified to give
      professional medical advice, impairs or is expected to impair the
      Participant's ability to substantially perform the Participant's duties
      for a period of at least one hundred eighty (180) consecutive days.

      "Vest" or "Vesting" shall mean the date on which an Award becomes
      exercisable, payable and/or nonforfeitable, as applicable.

<PAGE>

      "Voting Power" shall mean the total combined rights to cast votes for
      election of the members of the Board.

3. EFFECTIVE DATE. The Plan was adopted by the Board on February 8, 2005,
subject to the approval of the Corporation's shareholders in accordance with
Section 19.

4. ADMINISTRATION.

      (a) Administration by the Board or the Committee.

            (i) The Plan shall be administered by the Board, unless the Board
            appoints Committee to administer the Plan. With respect to any
            period during which the Board administers the Plan, the term
            "Committee" as used in the Plan and any Award Agreement shall mean
            the Board.

            (ii) Any Committee shall consist of not less than two members, each
            of whom shall be a "non-employee director" within the meaning of
            Rule 16b-3(b)(3)(i) promulgated by the Securities Exchange
            Commission under the Exchange Act, and an "outside director" within
            the meaning of Section 162(m)(4)(C)(i) of the Code and the
            regulations issued thereunder.

      (b) Actions of the Committee.

            (i) The Committee shall hold meetings at such times and places as it
            may determine. For a Committee meeting, if the Committee has two
            members, both members must be present to constitute a quorum, and if
            the Committee has three or more members, a majority of the Committee
            shall constitute a quorum. Acts by a majority of the members present
            at a meeting at which a quorum is present and acts approved in
            writing by all the members of the Committee shall constitute valid
            acts of the Committee.

            (ii) Members of the Committee may vote on any matters affecting the
            administration of the Plan or the grant of any Award pursuant to the
            Plan, subject to the remainder of this Section 4(b)(ii). No member
            shall act upon the granting of an Award to himself or herself.

      (c) Powers of the Committee. On behalf of the Corporation and subject to
      the provisions of the Plan and Rule 16b-3 of the Exchange Act, the
      Committee shall have the authority and the sole and complete discretion
      to: (i) prescribe, amend and rescind rules and regulations of the Plan,
      and, if desired, delegate authority to take actions under the Plan to the
      President or other appropriate officer(s) of the Corporation within the
      limits determined by the Committee; (ii) select Participants to receive
      Awards; (iii) determine the form and terms of Awards; (iv) determine the
      number of Shares or other consideration subject to Awards; (v) determine
      whether Awards will be granted singly, in combination or in tandem with,

<PAGE>

      in replacement of, or as alternatives to, other Awards under the Plan or
      any other incentive or compensation plan of the Corporation or any
      Subsidiary; (vi) construe and interpret in a consistent manner the Plan,
      any Award Agreement and any other agreement or document executed pursuant
      to the Plan; (vii) correct any defect or omission, or reconcile any
      inconsistency in the Plan, any Award or any Award Agreement; (viii)
      determine whether an Award has been earned and/or Vested; (ix) determine
      whether a Participant has incurred a Total and Permanent Disability; (x)
      accelerate or, with the consent of the Participant, defer the Vesting of
      any Award and/or the exercise date of any Award; (xi) determine whether a
      Participant's status as an Employee, Director or Consultant of the
      Corporation or any Subsidiary has been terminated For Cause; (xii)
      authorize any person to execute on behalf of the Corporation or any
      Subsidiary any instrument required to effectuate the grant of an Award;
      (xiii) with the consent of the Participant, reprice, cancel and reissue,
      or otherwise adjust the terms of an Award previously issued to the
      Participant; (xiv) determine when an Employee's period of employment is
      deemed to be continued during an approved leave of absence; (xv) determine
      when a Consultant's period of rendering service is deemed to be continuous
      notwithstanding a period of interrupted service and when a Consultant's
      period of rendering services has ended; (xvi) determine, upon review of
      relevant information, the Fair Market Value of the Common Stock; and
      (xvii) make all other determinations deemed necessary or advisable for the
      administration of the Plan.

      (d) Committee's Interpretation of the Plan. The Committee's interpretation
      and construction of any provision of the Plan, of any Award granted under
      the Plan, or of any Award Agreement shall be final and binding on all
      persons claiming an interest in an Award granted or issued under the Plan.
      Neither the Committee, a member of the Committee nor any Director shall be
      liable for any action or determination made in good faith with respect to
      the Plan. The Corporation, in accordance with its bylaws, shall indemnify
      and defend such parties to the fullest extent provided by law and such
      bylaws.

5. PARTICIPATION.

      (a) Eligibility for Participation. Subject to the conditions of Section
      5(b), all Employees, Directors and Consultants rendering services to the
      Corporation and/or any Subsidiary are eligible to be selected as
      Participants by the Committee. The Committee's determination of an
      individual's eligibility for participation shall be final.

      (b) Eligibility for Awards. The Committee has the authority to grant
      Award(s) to Participants. A Participant may be granted more than one Award
      under the Plan.

6. SHARES OF STOCK OF THE CORPORATION.

      (a) Shares Subject to The Plan. Awards granted under the Plan shall be
      with respect to 750,000 authorized but unissued or reacquired Shares of
      Common Stock. The aggregate number of Shares granted as Options or Stock
      Appreciation Rights to a Participant during the term of the Plan shall not
      exceed 40% of the total authorized Shares under the Plan, including any
      additional Shares which may be authorized under the Plan in the future.

<PAGE>

      (b) Adjustment of Shares. In the event of an adjustment described in
      Section 14, then (i) the number of Shares reserved for issuance under the
      Plan, (ii) the Exercise Prices of and number of Shares subject to
      outstanding Awards, and (iii) any other factor pertaining to outstanding
      Awards shall be duly and proportionately adjusted, subject to any required
      action by the Board or the shareholders of the Corporation and compliance
      with applicable securities laws; provided, however, that fractions of a
      Share shall not be issued but shall either be paid in cash at Fair Market
      Value or shall be rounded up to the nearest Share, as determined by the
      Committee.

      (c) Awards Not to Exceed Shares Available. The number of Shares subject to
      Awards which have been granted under the Plan at any time during the
      Plan's term shall not, in the aggregate at any time, exceed the number of
      Shares authorized for issuance under the Plan. The number of Shares
      subject to an Award which expires, is canceled, is forfeited or is
      terminated for any reason other than being settled in Shares, shall again
      be available for issuance under the Plan.

7. GENERAL TERMS AND CONDITIONS OF AWARDS.

      (a) Award Agreements. Each Award shall be evidenced by a written Award
      Agreement which shall set forth the terms and conditions pertaining to
      such Award. Each Award Agreement shall specify the manner and procedure
      for exercising an Award, if relevant for the Award, and specify the
      effective date of such exercise.

      (b) Number of Shares Covered by an Award. Each Award Agreement shall state
      the number of Shares subject to the Award, subject to adjustment of such
      Shares pursuant to Section 14.

      (c) Other Provisions. An Award Agreement may contain such other provisions
      as the Committee in its discretion deems advisable, including but not
      limited to: (i) restrictions on the exercise of the Award; (ii) submission
      by the Participant of such forms and documents as the Committee may
      require; and (iii) procedures to facilitate the payment of the Exercise
      Price of an Option under any method allowable under Section 17.

      (d) Vesting of Awards. Each Award Agreement shall include a Vesting
      schedule describing the date, event or act upon which an Award shall Vest,
      in whole or in part, with respect to all or a specified portion of the
      Shares covered by such Award.

      (e) Effect of Termination of Employment, Directorship or Consultancy on
      Nonvested and Vested Awards.

            (i) For purposes of the Plan, a Participant's status as an Employee,
            a Director or a Consultant shall be determined by the Committee and
            will be treated as continuing intact while the Participant is on
            military leave, sick leave or other bona fide leave of absence, as
            determined by the Committee.

<PAGE>

            (ii) If a Participant ceases to be an Employee, a Director and/or a
            Consultant for any reason (A) the Participant's Award(s) which are
            not Vested at the time that the Participant ceases to be an
            Employee, a Director or a Consultant (as applicable) shall be
            forfeited, and (B) the Participant's Award(s) which are Vested at
            the time the Participant ceases to be an Employee, a Director or a
            Consultant (as applicable) shall be forfeited and/or expire on the
            terms specified in Sections 8 through 11, as applicable, except to
            the extent specifically provided otherwise in the Participant's
            Award Agreement.

      (f) Nontransferability of Awards. An Award granted to a Participant shall,
      during the lifetime of the Participant, be exercisable only by the
      Participant and shall not be assignable or transferable except to a
      Permitted Transferee. Any attempted pledge, hypothecation, assignment,
      transfer or attachment by any creditor in violation of this Section 7(f)
      shall be null and void.

      (g) Modification, Extension or Renewal of Awards. Within the limitations
      of the Plan, the Committee may, in its discretion, modify, extend or renew
      any outstanding Award or accept the cancellation of outstanding Award(s)
      for the granting of a new Award(s) in substitution therefore.
      Notwithstanding the preceding sentence, no modification of an Award shall:
      (i) without the consent of the Participant, alter or impair any rights or
      obligations under any Award previously granted; (ii) without the consent
      of the Participant, cause an Incentive Stock Option previously granted to
      fail to satisfy all the conditions required to qualify as an Incentive
      Stock Option; or (iii) exceed or otherwise violate any limitation set
      forth in the Plan.

      (h)   Rights as a Stockholder. A Participant shall have no rights as a
            stockholder of the Corporation with respect to any Shares subject to
            Award until the date a stock certificate for such Shares is issued
            to the Participant. No adjustment shall be made for dividends
            (ordinary or extraordinary or whether in currency, securities, or
            other property), distributions, or other rights for which the record
            date is prior to the date such stock certificate is issued.

8. SPECIFIC TERMS AND CONDITIONS OF OPTIONS.

      (a) Exercise Price. Each Award Agreement shall state the Exercise Price
      for the Shares to which the Option pertains; provided that the Exercise
      Price of an Incentive Stock Option shall not be less than 100% of the Fair
      Market Value of the Shares determined as of the date the Option is granted
      and the Exercise Price of an Incentive Stock Option granted to a Ten
      Percent Stockholder shall not be less than 110% of the Fair Market Value
      of the Shares determined as of the date the Option is granted.

      (b) Limitation on Incentive Stock Options. The aggregate Fair Market Value
      (determined with respect to each Incentive Stock Option as of the date of
      grant of such Incentive Stock Option) of all Shares with respect to which
      a Participant's Incentive Stock Options first become Vested during any

<PAGE>

      calendar year (under the Plan and under other incentive stock option
      plans, if any, of the Corporation and its Subsidiaries) shall not exceed
      US$100,000. Any purported Incentive Stock Options in excess of such
      limitation shall be recharacterized as Non-qualified Stock Options.

9. SPECIFIC TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.

      (a) Exercise Price.

            (i) Each Stock Appreciation Right Award Agreement shall state the
            number of Shares to which it pertains and the Exercise Price which
            is the basis for determining future appreciation, subject to
            adjustment pursuant to Section 14.

            (ii) A Stock Appreciation Right shall be issued to and exercised by
            a Participant without payment by the Participant of any
            consideration.

      (b) Exercise and Settlement of Stock Appreciation Rights.

            (i) A Participant may exercise a Stock Appreciation Right only on or
            after the date on which the Stock Appreciation Right Vests and only
            on or before the date on which the Stock Appreciation Right expires.

            (ii) A Participant's properly exercised Stock Appreciation Right may
            be settled in the form of cash (either in a lump sum payment or in
            installments), whole Shares or a combination thereof, as the Award
            Agreement prescribes.

10. SPECIFIC TERMS AND CONDITIONS OF RESTRICTED STOCK.

      (a) Purchase Price.

            (i) Each Award Agreement shall state the number of Shares to which
            it pertains and the purchase price per Share, if any, that the
            Participant paid for such Shares, subject to adjustment pursuant to
            Section 14.

            (ii) A Share of Restricted Stock may be issued to a Participant with
            or without payment by the Participant of any consideration (other
            than past and/or future services), unless the Participant is
            required, pursuant to the related Award Agreement, to pay a minimum
            purchase price, such as par value, for such Shares.

      (b) Forfeiture of Restricted Stock. If a Participant's status as an
      Employee, Director or Consultant terminates for any reason, any Share of
      Restricted Stock which was not Vested or did not become Vested as the
      result of the Participant's termination shall be forfeited immediately.

<PAGE>

      (c) Certificates Representing Non-Vested Shares of Restricted Stock. As a
      condition to receiving an Award of Restricted Shares which are not Vested,
      the Participant shall duly execute a "power of attorney" or a form of
      "stock power" provided by the Corporation with respect to such Shares
      authorizing the re-transfer, without any further action by the
      Participant, to the Corporation any Shares which may be forfeited by the
      Participant. The Corporation shall retain the stock certificate evidencing
      such Shares until the Shares are Vested. If, in the opinion of the
      Corporation and its counsel, the retention of the stock certificate
      representing such Restricted Shares is no longer required, the Corporation
      shall deliver to the Participant a stock certificate representing such
      Shares, bearing such restrictive legends as are required or may be deemed
      advisable under the Plan or the provisions of any applicable law.

      (d) Legends. Stock certificates evidencing Restricted Shares shall bear a
      restrictive legend noting the forfeiture provisions attached to such
      Shares and such other restrictive legends as are required or may be deemed
      advisable by the Committee under the Plan or the provisions of any
      applicable law.

11. PERFORMANCE SHARES AND PERFORMANCE UNITS.

      (a) Number of Shares Covered by a Performance Share Award. Each
      Performance Share Award Agreement shall state the number of Shares to
      which it pertains, subject to adjustment pursuant to Section 14.

      (b) Value and Criteria of a Performance Unit Award. Each Performance Unit
      Award Agreement shall state the value of such Award (in U.S. dollars) and
      the specific performance objectives necessary to Vest such Award.

      (c) Purchase Price. A Performance Share and a Performance Unit shall be
      issued to a Participant without payment by the Participant of any
      consideration (other than past and/or future services).

      (d) Settlement of a Performance Share and a Performance Unit. Following
      the end of the performance period applicable to a Performance Share or a
      Performance Unit and the Committee's determination of the extent to which
      the Award Vests, the Award shall be settled in the form of cash (either in
      a lump sum payment or in installments), whole Shares or a combination
      thereof, as the Award Agreement prescribes.

12. TERM OF PLAN. Awards may be granted pursuant to the Plan through the period
commencing on the Effective Date and ending on December 31, 2015 at 11:59 p.m.
All Awards which are outstanding on such date shall remain in effect until they
are exercised or expire by their terms. The Plan shall expire for all purposes
on December 31, 2025 at 11:59 p.m. The Board is authorized to extend the Plan
for an additional term at any time; however, no Incentive Stock Options may be
granted under the Plan on or after the tenth (10th) anniversary of the Effective
Date of the Plan, unless an extension is approved by the shareholders of the
Corporation within one (1) year of such extension.

<PAGE>

13. TERMINATION OF AWARDS. Except as otherwise specifically provided in an Award
Agreement, each Award shall expire, to the extent not Vested, on the date that
the Participant ceases to be a Director, Employee or Consultant. Vested Awards
shall expire on the first to occur of the following:

      (a) The date specified in the Award Agreement;

      (b) the tenth (10th) anniversary of the date the Award was granted or the
      fifth (5th) anniversary of the date the Award was granted if it is an
      Incentive Option granted to a Ten Percent Stockholder;

      (c) the date that the Participant ceases to be an Employee, Director or
      Consultant by voluntary resignation or by being terminated For Cause;

      (d) three (3) months after the Participant ceases to be an Employee,
      Director or Consultant for reasons other than For Cause, voluntary
      resignation, death or Total and Permanent Disability;

      (e) one year after the date the Participant ceases to be an Employee,
      Director or Consultant as a result of death or Total and Permanent
      Disability; or

      (f) the expiration of the Plan pursuant to Section 12.

14. RECAPITALIZATION, DISSOLUTION AND CHANGE OF CONTROL.

      (a) Recapitalization. Notwithstanding any other provision of the Plan to
      the contrary, but subject to any required action by the stockholders of
      the Corporation and compliance with any applicable securities laws, the
      Committee, in its sole discretion, shall make any adjustments to the class
      and/or number of Shares covered by the Plan, the number of Shares for
      which each outstanding Award pertains, the Exercise Price of an Option,
      the Exercise Price of a Stock Appreciation Right, and/or any other aspect
      of this Plan to prevent the dilution or enlargement of the rights of
      Participants under this Plan in connection with any increase or decrease
      in the number of issued Shares resulting from the payment of a Common
      Stock dividend, stock split, reverse stock split, recapitalization,
      combination, or reclassification or any other event which results in an
      increase or decrease in the number of issued Shares without receipt of
      adequate consideration by the Corporation (as determined by the
      Committee). The conversion of any convertible securities of the
      Corporation shall not be deemed to have been issued without adequate
      consideration.

      (b) Dissolution, Merger, Consolidation, or Sale or Lease of Assets. In
      connection with a Change-in-Control of the Corporation, the Committee may,
      in its sole discretion, declare that each Award shall expire immediately
      prior to the closing date of such transaction, provided that the Committee

<PAGE>

      shall, to the extent possible considering the timing of the transaction,
      give at least thirty (30) days' prior written notice of such event to any
      Participant who shall then have the right to exercise his or her Vested
      Awards (as an Award Agreement may provide) through the closing date of
      such transaction, subject to earlier expiration pursuant to Section 13.
      The preceding sentence shall not apply if the surviving entity agrees to
      assume outstanding Awards.

      (c) Determination by the Committee. All adjustments described in this
      Section 15 shall be made by the Committee and shall be conclusive and
      binding on all persons.

      (d) Limitation on Rights of Participants. Except as expressly provided in
      this Section 15, no Participant shall have any rights by reason of any
      reorganization, dissolution, Change-in-Control, merger or acquisition. Any
      issuance by the Corporation or any Subsidiary of Awards shall not affect,
      and no adjustment by reason thereof shall be made with respect to, any
      Awards previously issued under the Plan.

      (e) No Limitation on Rights of Corporation. The grant of an Award pursuant
      to the Plan shall not affect in any way the right or power of the
      Corporation or any Subsidiary to make adjustments, reclassifications,
      reorganizations, or changes of its capital or business structure, or to
      merge or consolidate, or to dissolve, liquidate, sell or transfer all or
      any part of its business or assets.

15. SECURITIES LAW REQUIREMENTS.

      (a) Legality of Issuance. No Share shall be issued upon the exercise of
      any Award unless and until the Committee has determined that: (i) the
      Corporation, its Subsidiaries and the Participant have taken all actions
      required to register the Shares under the Securities Act of 1933, as
      amended (the "Act"), or to perfect an exemption from registration
      requirements of the Act, or to determine that the registration
      requirements of the Act do not apply to such exercise; (ii) any applicable
      listing requirement of any stock exchange on which the Share is listed has
      been satisfied; and (iii) any other applicable provision of state, federal
      or foreign law has been satisfied. As a condition to the issuance of any
      Share pursuant to an Award or the transfer of such Share, the Corporation
      may require an opinion of counsel, satisfactory to the Corporation, to the
      effect that such issuance or transfer will not be in violation of the Act
      or any other applicable securities laws or that such issuance or transfer
      has been duly registered under federal and all applicable state securities
      laws. The Corporation shall not be liable to any party for damages due to
      a delay in the delivery or issuance of any stock certificate for any
      reason.

      (b) Restrictions on Transfer; Representations of Participant; Legends.
      Regardless of whether the offering and sale of Shares under the Plan have
      been registered under the Act or have been registered or qualified under
      the securities laws of any state, the Corporation may impose restrictions
      upon the sale, pledge or other transfer of such Shares (including the
      placement of appropriate legends on stock certificates) if, in the
      judgment of the Corporation and its counsel, such restrictions are
      necessary or desirable to achieve compliance with the provisions of the
      Act, the securities laws of any state, or any other law. If the offering

<PAGE>

      and/or sale of Shares under the Plan is not registered under the Act and
      the Corporation determines that the registration requirements of the Act
      apply but an exemption is available which requires an investment
      representation or other representation, the Participant shall be required,
      as a condition to acquiring such Shares, to represent that such Shares are
      being acquired for investment, and not with a view to the sale or
      distribution thereof, except in compliance with the Act, and to make such
      other representations, to execute such documents and to provide the
      Corporation with such information as are deemed necessary or appropriate
      by the Corporation and its counsel. Stock certificates evidencing Shares
      acquired pursuant to an unregistered transaction to which the Act applies
      shall bear a restrictive legend substantially in the following form and
      such other restrictive legends as are required or deemed advisable under
      the Plan or the provisions of any applicable law:

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
      ("ACT"). THEY MAY NOT BE TRANSFERRED, SOLD OR OFFERED FOR SALE UNLESS A
      REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR
      IN THE OPINION OF COUNSEL FOR THE ISSUER EITHER SUCH REGISTRATION IS
      UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT OR THE
      REGISTRATION PROVISIONS OF THE ACT DO NOT APPLY TO SUCH PROPOSED TRANSFER.

      Any determination by the Corporation, its Subsidiaries and its counsel in
      connection with any of the matters set forth in this Section 15 shall be
      conclusive and binding on all persons.

      (c) Registration or Qualification of Securities. The Corporation and/or
      its Subsidiaries may, but shall not be obligated to, register or qualify
      the offering or sale of Shares under the Act or any other applicable law.

      (d) Exchange of Certificates. If, in the opinion of the Corporation, its
      Subsidiaries and its counsel, any legend placed on a stock certificate
      representing Shares issued pursuant to the Plan is no longer required, the
      Participant or the holder of such certificate shall be entitled to
      exchange such certificate for a certificate representing the same number
      of Shares but lacking such legend.

16. AMENDMENT OF THE PLAN. The Committee may, from time to time, terminate,
suspend or discontinue the Plan, in whole or in part, or revise or amend it in
any respect whatsoever including, but not limited to, the adoption of any
amendment deemed necessary or advisable to qualify the Awards under rules and
regulations promulgated by the Securities and Exchange Commission (the "SEC")
with respect to Participants who are subject to the provisions of Section 17 of
the Exchange Act, or to correct any defect or supply any omission or reconcile
any inconsistency in the Plan or in any Award granted under the Plan, with or
without approval of the stockholders of the Corporation, but if any such action
is taken without the approval of the Corporation's stockholders, no such
revision or amendment shall:

<PAGE>

      (a) Increase the number of Shares subject to the Plan, other than any
      increase pursuant to Section 14;

      (b) Change the designation of the class of persons eligible to receive
      Awards; or

      (c) Amend this Section 16 to defeat its purpose.

No amendment, termination or modification of the Plan shall, without the consent
of a Participant, adversely affect the Participant with respect to any Award
previously granted to the Participant.

17. PAYMENT FOR SHARE PURCHASES. Payment of the Exercise Price for any Shares
purchased pursuant to the Plan may be made in cash (in U.S. dollars) or, where
expressly approved for the Participant by the Committee, in its discretion, and
where permitted by law:

      (a) By check;

      (b) By wire transfer of immediately available funds;

      (c) By cancellation of indebtedness of the Corporation or a Subsidiary to
      the Participant;

      (d) By surrender of Shares that either: (i) have been owned by the
      Participant for more than six months and have been "paid for" within the
      meaning of SEC Rule 144 (and, if such shares were purchased from the
      Corporation or a Subsidiary by use of a promissory note, such note has
      been fully paid with respect to such Shares); or (ii) were obtained by the
      Participant in the public market, in each case subject to applicable
      holding period and distribution restrictions required by the Act and the
      Exchange Act;

      (e) By waiver of compensation due or accrued to Participant for services
      rendered;

      (f) With respect only to purchases upon exercise of an Option, and
      provided that a public market for the Corporation's stock exists: (i)
      through a "same day sale" commitment from the Participant and a
      broker-dealer that is a member of the National Association of Securities
      Dealers (an "NASD Dealer") whereby the Participant irrevocably elects to
      exercise the Option and to sell a portion of the Shares so purchased to
      pay the Exercise Price, and whereby the NASD Dealer irrevocably commits
      upon receipt of such Shares to forward the Exercise Price and any
      applicable withholding taxes directly to the Corporation or a Subsidiary;
      (ii) through a "margin" commitment from the Participant and an NASD Dealer
      whereby the Participant irrevocably elects to exercise the Option and to
      pledge the Shares so purchased to the NASD Dealer in a margin account as
      security for a loan from the NASD Dealer in the amount of the Exercise
      Price, and whereby the NASD Dealer irrevocably commits upon receipt of
      such Shares to forward the Exercise Price and any applicable withholding
      taxes directly to the Corporation or a Subsidiary; or

<PAGE>

      (g) By any combination of the foregoing and/or by any other method
      approved by the Committee.

18. APPLICATION OF FUNDS. The proceeds received by the Corporation and its
Subsidiaries from the sale of Common Stock pursuant to the exercise of an Option
or in any other manner with respect to any Award shall be used for general
corporate purposes.

19. APPROVAL OF SHAREHOLDERS. The Plan shall be subject to approval by the
affirmative vote of the holders of a majority of the outstanding shares present
and entitled to vote at the first meeting of shareholders of the Corporation
following the adoption of the Plan by the Board, and in no event later than
February 8, 2006. Prior to such approval, Awards may be granted but may not be
exercised or settled. Pursuant to Section 16, certain amendments shall also be
subject to approval by the Corporation's shareholders.

20. WITHHOLDING OF TAXES.

      (a) General. Whenever Shares are to be issued under the Plan, the
      Corporation or a Subsidiary may require, as a condition to such issuance
      of Shares, the Participant to remit to the Corporation or such Subsidiary,
      from any source, an amount sufficient to satisfy foreign, federal, state
      and local withholding tax requirements prior to the delivery of any
      certificate or certificates for such Shares. Whenever, under the Plan,
      payments in satisfaction of Awards are to be made in cash, such payment
      shall be net of an amount sufficient to satisfy foreign, federal, state,
      and local withholding tax requirements.

      (b) Stock Withholding. When, under applicable tax laws, a Participant
      incurs a tax liability in connection with the issuance of Shares under the
      Plan and the Participant is obligated to pay the Corporation or a
      Subsidiary the amount required to be withheld, the Participant may elect
      to satisfy the minimum withholding tax obligation by electing to have the
      Corporation or such Subsidiary withhold from the Shares to be issued the
      specific number of Shares having a Fair Market Value equal to the minimum
      amount required to be withheld, determined on the date that the amount of
      tax to be withheld is to be determined (the "Tax Date"). All elections by
      a Participant to have Shares withheld for this purpose shall be made in
      writing in a form acceptable to the Committee and shall be subject to the
      following restrictions: (i) the election must be made on or prior to the
      applicable Tax Date; (ii) once made, then except as provided below, the
      election shall be irrevocable as to the particular Shares as to which the
      election is made; and (iii) all elections shall be subject to the consent
      or disapproval of the Committee.

21. RIGHTS AS AN EMPLOYEE, DIRECTOR OR CONSULTANT. The Plan shall not be
construed to give any individual the right to remain in the employ of the
Corporation (or a Subsidiary) or to affect the right of the Corporation (or such
Subsidiary) to terminate such individual's status as an Employee, Director or
Consultant at any time, with or without cause. The grant of an Award shall not
entitle the Participant to, or disqualify the Participant from, participation in
the grant of any other Award under the Plan or participation in any other plan
maintained by the Corporation or any Subsidiary.

<PAGE>

22. NOTICES. Any notice to be provided by one party to the other party under
this Plan shall be deemed to have been duly delivered to the other party (a) on
the date such notice is delivered at the address provided in a Participant's
Award Agreement or at such other address as the party may notify the other party
in writing at any time, or (b) on the date such notice is deposited in the
United States mail as first class mail, postage prepaid if addressed to the
party at the address provided in a Participant's Award Agreement or at such
other address as the party may notify the other party in writing at any time.
For the purposes of clause (a), the term "delivered" shall include hand
delivery, delivery by facsimile, and delivery by electronic mail.

23. MISCELLANEOUS.

      (a) Unfunded Plan. The Plan shall be unfunded and the Corporation and its
      Subsidiaries shall not be required to establish any special account or
      fund or to otherwise segregate or encumber assets to ensure payment of any
      Award.

      (b) No Restrictions on Other Programs. Nothing contained in the Plan shall
      prevent the Corporation or any Subsidiary from adopting other or
      additional compensation arrangements or plans, subject to shareholder
      approval if such approval is required, and such arrangements or plan may
      be either generally applicable or applicable only to specific classes.

      (c) Governing Laws. The Plan and each Award Agreement shall be governed by
      the laws of the State of Texas, excluding any conflicts or choice of law
      rule or principle that might otherwise refer construction or
      interpretation of the Plan or Award Agreement to the substantive law of
      another jurisdiction. Unless otherwise provided in the Award Agreement,
      recipients of an Award are deemed to submit to the exclusive jurisdiction
      and venue of the federal or state courts of Texas, in the County of the
      principal offices of the Corporation, to resolve any and all issues that
      may arise out of or relate to the Plan and any related Award Agreement.

      (d) Attorney Fees. In the event that a Participant or the Corporation or
      any Subsidiary brings an action to enforce the terms of the Plan or any
      Award Agreement and the Corporation or such Subsidiary prevails, the
      Participant shall pay all costs and expenses incurred by the Corporation
      and such Subsidiary in connection with that action, including reasonable
      attorney's fees, and all further costs and fees, including reasonable
      attorney's fees, incurred by the Corporation and such Subsidiary in
      connection with collection.

      (e) Invalidity or Unenforceability of Any Provision. If any provision of
      the Plan is or becomes or is deemed invalid, illegal of unenforceable in
      any jurisdiction, or would disqualify the Plan or any Award under any law
      deemed applicable by the Committee, such provisions shall be construed or
      deemed amended or limited in scope to conform to applicable laws or, in
      the discretion of the Committee, it shall be stricken and the remainder of
      the Plan shall remain in effect.

<PAGE>

      (f) No Fractional Shares. No fractional Shares may be issued under the
      Plan. The Committee shall determine whether to disregard any fractional
      Share, round up to the next higher Share, or round-down to the next lower
      Share.

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