Document:

EXHIBIT 4.2

                           THE JACKSON RIVERS COMPANY
           NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN
                             FOR THE YEAR 2006

      1.  Introduction.  This  Plan  shall be known as the "The  Jackson  Rivers
Company Non-Employee  Directors and Consultants Retainer Stock Plan for the Year
2006," and is  hereinafter  referred to as the "Plan." The purposes of this Plan
are to enable The Jackson Rivers Company, a Florida corporation (the "Company"),
to promote the interests of the Company and its  stockholders  by attracting and
retaining  non-employee  Directors and  Consultants  capable of  furthering  the
future  success of the Company and by aligning  their  economic  interests  more
closely with those of the Company's  stockholders,  by paying their  retainer or
fees in the form of shares of the Company's common stock, par value $0.00001 per
share (the "Common Stock").

      2.  Definitions.  The  following  terms shall have the  meanings set forth
below:

      "Board" means the Board of Directors of the Company.

      "Change of Control" has the meaning set forth in Paragraph 12(d) hereof.

      "Code" means the Internal Revenue Code of 1986, as amended,  and the rules
and regulations  thereunder.  References to any provision of the Code or rule or
regulation  thereunder  shall be deemed to  include  any  amended  or  successor
provision, rule or regulation.

      "Committee"  means the committee that administers this Plan, as more fully
defined in Paragraph 13 hereof.

      "Common Stock" has the meaning set forth in Paragraph 1 hereof.

      "Company" has the meaning set forth in Paragraph 1 hereof.

      "Consultants"  means Company's  consultants and advisors only if: (i) they
are natural  persons;  (ii) they provide bona fide services to the Company;  and
(iii) the services are not in connection with the offer or sale of securities in
a  capital-raising  transaction,  and do not directly or  indirectly  promote or
maintain a market for the Company's securities.

      "Deferral Election" has the meaning set forth in Paragraph 6 hereof.

      "Deferred  Stock  Account" means a bookkeeping  account  maintained by the
Company for a Participant  representing the Participant's interest in the shares
credited to such Deferred Stock Account pursuant to Paragraph 7 hereof.

      "Delivery Date" has the meaning set forth in Paragraph 6 hereof.

      "Director"  means an individual  who is a member of the Board of Directors
of the Company.

      "Dividend  Equivalent" for a given dividend or other  distribution means a
number of shares of the  Common  Stock  having a Fair  Market  Value,  as of the
record date for such dividend or distribution, equal to the amount of cash, plus
the Fair  Market  Value on the date of  distribution  of any  property,  that is
distributed  with  respect to one share of the  Common  Stock  pursuant  to such
dividend  or  distribution;  such  Fair  Market  Value to be  determined  by the
Committee in good faith.

      "Effective Date" has the meaning set forth in Paragraph 3 hereof.

      "Exchange Act" has the meaning set forth in Paragraph 12(d) hereof.

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

      "Participant" has the meaning set forth in Paragraph 4 hereof.

      "Payment  Time"  means  the time when a Stock  Retainer  is  payable  to a
Participant  pursuant to Paragraph 5 hereof (without regard to the effect of any
Deferral Election).

      "Stock Retainer" has the meaning set forth in Paragraph 5 hereof.

      "Third Anniversary" has the meaning set forth in Paragraph 6 hereof.

      3.  Effective  Date of the  Plan.  This  Plan  was  adopted  by the  Board
effective November 22, 2006 (the "Effective Date").

      4.  Eligibility.  Each  individual  who is a Director or Consultant on the
Effective  Date and  each  individual  who  becomes  a  Director  or  Consultant
thereafter   during  the  term  of  this  Plan,  shall  be  a  participant  (the
"Participant")  in this Plan, in each case during such period as such individual
remains a Director or Consultant and is not an employee of the Company or any of
its  subsidiaries.  Each credit of shares of the Common  Stock  pursuant to this
Plan shall be evidenced by a written agreement duly executed and delivered by or
on behalf of the Company and a Participant,  if such an agreement is required by
the Company to assure compliance with all applicable laws and regulations.

      5.  Grants of Shares.  Commencing  on the  Effective  Date,  the amount of
compensation for service to directors or consultants  shall be payable in shares
of the Common  Stock (the "Stock  Retainer")  pursuant to this Plan.  The deemed
issuance  price of shares of the Common  Stock  subject  to each Stock  Retainer
shall not be less than 85 percent of the Fair Market  Value of the Common  Stock
on the  date  of the  grant.  In the  case of any  person  who  owns  securities
possessing  more than ten percent of the combined voting power of all classes of
securities of the issuer or its parent or subsidiaries  possessing voting power,
the deemed  issuance  price of shares of the Common Stock  subject to each Stock
Retainer  shall be at least 100 percent of the Fair  Market  Value of the Common
Stock on the date of the grant.

      6. Deferral  Option.  From and after the Effective Date, a Participant may
make an election (a "Deferral Election") on an annual basis to defer delivery of
the Stock Retainer specifying which one of the following ways the Stock Retainer
is to be delivered (a) on the date which is three years after the Effective Date
for which it was originally payable (the "Third  Anniversary"),  (b) on the date
upon which the Participant  ceases to be a Director or Consultant for any reason
(the "Departure  Date") or (c) in five equal annual  installments  commencing on
the Departure  Date (the "Third  Anniversary"  and  "Departure  Date" each being
referred to herein as a "Delivery Date"). Such Deferral Election shall remain in
effect for each  Subsequent  Year unless  changed,  provided  that, any Deferral
Election  with  respect to a  particular  Year may not be changed  less than six
months prior to the beginning of such Year, and provided,  further, that no more
than one Deferral Election or change thereof may be made in any Year.

      Any Deferral  Election and any change or revocation  thereof shall be made
by delivering  written  notice thereof to the Committee no later than six months
prior to the beginning of the Year in which it is to be effected; provided that,
with respect to the Year beginning on the Effective Date, any Deferral  Election
or  revocation  thereof must be delivered no later than the close of business on
the 30th day after the Effective Date.

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      7. Deferred  Stock  Accounts.  The Company shall maintain a Deferred Stock
Account  for each  Participant  who makes a Deferral  Election to which shall be
credited,  as of the applicable Payment Time, the number of shares of the Common
Stock  payable  pursuant to the Stock  Retainer to which the  Deferral  Election
relates.  So long as any amounts in such  Deferred  Stock  Account have not been
delivered to the  Participant  under  Paragraph 8 hereof,  each  Deferred  Stock
Account  shall be credited as of the payment date for any dividend paid or other
distribution  made with respect to the Common Stock,  with a number of shares of
the Common  Stock equal to (a) the number of shares of the Common Stock shown in
such Deferred Stock Account on the record date for such dividend or distribution
multiplied by (b) the Dividend Equivalent for such dividend or distribution.

      8. Delivery of Shares.

            (a) The shares of the Common Stock in a Participant's Deferred Stock
Account  with respect to any Stock  Retainer  for which a Deferral  Election has
been made (together with dividends  attributable to such shares credited to such
Deferred Stock  Account) shall be delivered in accordance  with this Paragraph 8
as soon as practicable  after the applicable  Delivery Date. Except with respect
to a Deferral  Election  pursuant  to  Paragraph  6 hereof,  or other  agreement
between the parties,  such shares shall be delivered at one time; provided that,
if the number of shares so delivered  includes a fractional  share,  such number
shall be rounded to the nearest whole number of shares.  If the  Participant has
in effect a Deferral Election  pursuant to Paragraph 6 hereof,  then such shares
shall be delivered in five equal annual  installments  (together  with dividends
attributable to such shares  credited to such Deferred Stock Account),  with the
first such installment  being delivered on the first anniversary of the Delivery
Date;  provided  that,  if in order to equalize  such  installments,  fractional
shares  would have to be  delivered,  such  installments  shall be  adjusted  by
rounding  to the nearest  whole  share.  If any such shares are to be  delivered
after the  Participant  has died or become  legally  incompetent,  they shall be
delivered to the Participant's estate or legal guardian,  as the case may be, in
accordance  with the foregoing;  provided that, if the  Participant  dies with a
Deferral Election pursuant to Paragraph 6 hereof in effect,  the Committee shall
deliver  all  remaining   undelivered   shares  to  the   Participant's   estate
immediately.  References to a Participant  in this Plan shall be deemed to refer
to the Participant's estate or legal guardian, where appropriate.

            (b) The Company may, but shall not be required to,  create a grantor
trust or utilize an existing  grantor trust (in either case,  "Trust") to assist
it in  accumulating  the  shares  of the  Common  Stock  needed to  fulfill  its
obligations  under  this  Paragraph  8.  However,  Participants  shall  have  no
beneficial  or other  interest  in the Trust and the assets  thereof,  and their
rights under this Plan shall be as general creditors of the Company,  unaffected
by the existence or nonexistence  of the Trust,  except that deliveries of Stock
Retainers  to  Participants  from the Trust  shall,  to the extent  thereof,  be
treated as satisfying the Company's obligations under this Paragraph 8.

      9. Share  Certificates;  Voting and Other  Rights.  The  certificates  for
shares delivered to a Participant  pursuant to Paragraph 8 above shall be issued
in the name of the Participant, and from and after the date of such issuance the
Participant shall be entitled to all rights of a stockholder with respect to the
Common Stock for all such shares issued in his name, including the right to vote
the  shares,   and  the  Participant  shall  receive  all  dividends  and  other
distributions paid or made with respect thereto.

     10.  General  Restrictions.

            (a)  Notwithstanding  any other provision of this Plan or agreements
made pursuant thereto, the Company shall not be required to issue or deliver any
certificate or certificates for shares of the Common Stock under this Plan prior
to fulfillment of all of the following conditions:

                  (i) Listing or approval  for listing upon  official  notice of
issuance  of such  shares on the New York Stock  Exchange,  Inc.,  or such other
securities exchange as may at the time be a market for the Common Stock;

<PAGE>

                  (ii) Any  registration or other  qualification  of such shares
under any state or federal law or  regulation,  or the  maintaining in effect of
any such registration or other qualification which the Committee shall, upon the
advice of counsel, deem necessary or advisable; and

                  (iii)  Obtaining any other consent,  approval,  or permit from
any state or  federal  governmental  agency  which the  Committee  shall,  after
receiving the advice of counsel, determine to be necessary or advisable.

            (b) Nothing  contained  in this Plan shall  prevent the Company from
adopting other or additional compensation arrangements for the Participants.

      11. Shares Available. Subject to Paragraph 12 below, the maximum number of
shares of the Common Stock which may in the aggregate be paid as Stock Retainers
pursuant to this Plan is  15,914,644.  Shares of the Common Stock issuable under
this Plan may be taken from  treasury  shares of the Company or purchased on the
open market.  In the event that any  outstanding  Stock Retainer under this Plan
for any reason expires or is terminated, the shares of Common Stock allocable to
the  unexercised  portion of the Stock  Retainer shall be available for issuance
under The Jackson Rivers  Company's  Employee Stock  Incentive Plan for the Year
2006. The Compensation Committee may, in its discretion,  increase the number of
shares available for issuance under this Plan, while correspondingly  decreasing
the number of shares  available for issuance under The Jackson Rivers  Company's
Employee Stock Incentive Plan for the Year 2006.

      12. Adjustments; Change of Control.

            (a) In the event that  there is, at any time after the Board  adopts
this  Plan,  any  change in  corporate  capitalization,  such as a stock  split,
combination  of shares,  exchange  of shares,  warrants  or rights  offering  to
purchase   the  Common   Stock  at  a  price  below  its  Fair   Market   Value,
reclassification,  or recapitalization,  or a corporate transaction, such as any
merger,  consolidation,  separation,  including a spin-off,  stock dividend,  or
other  extraordinary  distribution  of stock or  property  of the  Company,  any
reorganization  (whether or not such reorganization  comes within the definition
of such term in Section 368 of the Code) or any partial or complete  liquidation
of the Company (each of the foregoing a "Transaction"),  in each case other than
any such Transaction  which  constitutes a Change of Control (as defined below),
(i) the Deferred  Stock  Accounts shall not be credited with the amount and kind
of shares or other  property  which would have been  received by a holder of the
number of shares of the Common  Stock held in such  Deferred  Stock  Account had
such shares of the Common Stock been outstanding as of the  effectiveness of any
such  Transaction,  (ii) the number and kind of shares or other property subject
to  this  Plan  shall  also  not  be  appropriately   adjusted  to  reflect  the
effectiveness of any such  Transaction,  and (iii) the Committee will not adjust
any other relevant provisions of this Plan to reflect any such Transaction.

            (b) If the shares of the Common Stock credited to the Deferred Stock
Accounts  are  converted  pursuant  to  Paragraph  12(a)  into  another  form of
property,  references  in this Plan to the Common  Stock shall be deemed,  where
appropriate,  to  refer  to  such  other  form  of  property,  with  such  other
modifications as may be required for this Plan to operate in accordance with its
purposes.  Without  limiting the  generality  of the  foregoing,  references  to
delivery of certificates for shares of the Common Stock shall be deemed to refer
to delivery of cash and the incidents of ownership of any other property held in
the Deferred Stock Accounts.

            (c) In lieu of the adjustment  contemplated  by Paragraph  12(a), in
the event of a Change of Control,  the following  shall occur on the date of the
Change of Control (i) the shares of the Common Stock held in each  Participant's
Deferred  Stock Account shall be deemed to be issued and  outstanding  as of the
Change of Control;  (ii) the Company shall forthwith deliver to each Participant
who has a Deferred  Stock  Account all of the shares of the Common  Stock or any
other property held in such Participant's Deferred Stock Account; and (iii) this
Plan shall be terminated.

            (d) For purposes of this Plan,  Change of Control  shall mean any of
the following events:

<PAGE>

                  (i) The acquisition by any individual, entity or group (within
the meaning of Section  13(d)(3) or 14(d)(2) of the  Securities  Exchange Act of
1934,  as amended (the  "Exchange  Act")) (a "Person") of  beneficial  ownership
(within  the meaning of Rule 13d-3  promulgated  under the  Exchange  Act) of 40
percent or more of either (1) the then outstanding shares of the Common Stock of
the Company (the "Outstanding Company Common Stock"), or (2) the combined voting
power of then  outstanding  voting  securities  of the Company  entitled to vote
generally  in  the  election  of  directors  (the  "Outstanding  Company  Voting
Securities");  provided,  however,  that the  following  acquisitions  shall not
constitute  a Change of Control (A) any  acquisition  directly  from the Company
(excluding an  acquisition  by virtue of the exercise of a conversion  privilege
unless the security  being so converted  was itself  acquired  directly from the
Company),  (B)  any  acquisition  by the  Company,  (C) any  acquisition  by any
employee  benefit plan (or related trust) sponsored or maintained by the Company
or any  corporation  controlled  by the  Company or (D) any  acquisition  by any
corporation pursuant to a reorganization, merger or consolidation, if, following
such  reorganization,  merger or  consolidation,  the  conditions  described  in
clauses  (A),  (B) and  (C) of  paragraph  (iii)  of this  Paragraph  12(d)  are
satisfied; or

                  (ii)  Individuals  who, as of the date hereof,  constitute the
Board of the Company (as of the date hereof,  "Incumbent  Board")  cease for any
reason to constitute at least a majority of the Board;  provided,  however, that
any individual becoming a director subsequent to the date hereof whose election,
or nomination for election by the Company's stockholders, was approved by a vote
of at least a majority of the directors  then  comprising  the  Incumbent  Board
shall be  considered  as though such  individual  were a member of the Incumbent
Board,  but  excluding,  for this  purpose,  any such  individual  whose initial
assumption  of office  occurs  as a result  of  either  an actual or  threatened
election  contest  (as such  terms  are used in Rule  14a-11 of  Regulation  14A
promulgated  under the Exchange Act) or other actual or threatened  solicitation
of proxies or consents by or on behalf of a Person other than the Board; or

                  (iii)  Approval  by  the  stockholders  of  the  Company  of a
reorganization,   merger,  binding  share  exchange  or  consolidation,  unless,
following such reorganization,  merger,  binding share exchange or consolidation
(A) more than 60 percent of,  respectively,  then  outstanding  shares of common
stock of the corporation  resulting from such  reorganization,  merger,  binding
share  exchange  or  consolidation   and  the  combined  voting  power  of  then
outstanding voting securities of such corporation  entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of the Outstanding  Company Common Stock and Outstanding
Company Voting  Securities  immediately  prior to such  reorganization,  merger,
binding share exchange or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, binding share
exchange  or  consolidation,   of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as the  case  may be,  (B) no  Person
(excluding  the  Company,  any employee  benefit plan (or related  trust) of the
Company or such corporation resulting from such reorganization,  merger, binding
share exchange or consolidation and any Person beneficially owning,  immediately
prior to such reorganization,  merger,  binding share exchange or consolidation,
directly or  indirectly,  20 percent or more of the  Outstanding  Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns,  directly  or  indirectly,  20  percent  or more  of,  respectively,  then
outstanding  shares  of  common  stock of the  corporation  resulting  from such
reorganization,  merger, binding share exchange or consolidation or the combined
voting power of then outstanding voting securities of such corporation  entitled
to vote  generally in the election of directors,  and (C) at least a majority of
the members of the board of directors  of the  corporation  resulting  from such
reorganization,  merger, binding share exchange or consolidation were members of
the  Incumbent  Board  at the time of the  execution  of the  initial  agreement
providing  for  such   reorganization,   merger,   binding  share   exchange  or
consolidation; or

                  (iv)  Approval  by the  stockholders  of the  Company of (1) a
complete  liquidation or  dissolution  of the Company,  or (2) the sale or other
disposition of all or substantially all of the assets of the Company, other than
to  a  corporation,   with  respect  to  which  following  such  sale  or  other
disposition, (A) more than 60 percent of, respectively,  then outstanding shares
of  common  stock of such  corporation  and the  combined  voting  power of then
outstanding voting securities of such corporation  entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of the Outstanding  Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership,  immediately prior to such
sale  or  other  disposition,  of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as the  case  may be,  (B) no  Person
(excluding  the Company and any employee  benefit plan (or related trust) of the
Company or such  corporation  and any Person  beneficially  owning,  immediately
prior to such sale or other disposition,  directly or indirectly,  20 percent or
more of the  Outstanding  Company  Common Stock or  Outstanding  Company  Voting
Securities,  as the case may be) beneficially owns,  directly or indirectly,  20
percent or more of,  respectively,  then  outstanding  shares of common stock of
such  corporation  and the  combined  voting  power of then  outstanding  voting
securities  of such  corporation  entitled to vote  generally in the election of
directors,  and (C) at least a majority of the members of the board of directors
of such  corporation  were  members  of the  Incumbent  Board at the time of the
execution  of the initial  agreement or action of the Board  providing  for such
sale or other disposition of assets of the Company.

<PAGE>

      13. Administration; Amendment and Termination.

            (a) This Plan shall be administered by a committee consisting of two
members who shall be the current  directors  of the Company or senior  executive
officers or other directors who are not Participants as may be designated by the
Chief Executive  Officer (the  "Committee"),  which shall have full authority to
construe and  interpret  this Plan,  to  establish,  amend and rescind rules and
regulations  relating  to this Plan,  and to take all such  actions and make all
such  determinations  in connection  with this Plan as it may deem  necessary or
desirable.

            (b) The Board may from  time to time  make such  amendments  to this
Plan,  including to preserve or come within any exemption from  liability  under
Section  16(b)  of the  Exchange  Act,  as it may  deem  proper  and in the best
interest of the Company without further approval of the Company's  stockholders,
provided  that,  to  the  extent  required  under  Florida  law  or  to  qualify
transactions  under this Plan for exemption under Rule 16b-3  promulgated  under
the Exchange  Act, no amendment  to this Plan shall be adopted  without  further
approval of the Company's  stockholders and, provided,  further,  that if and to
the extent  required for this Plan to comply with Rule 16b-3  promulgated  under
the Exchange  Act, no amendment to this Plan shall be made more than once in any
six month period that would change the amount,  price or timing of the grants of
the Common Stock  hereunder  other than to comport with changes in the Code, the
Employee  Retirement Income Security Act of 1974, as amended, or the regulations
thereunder.  The  Board  may  terminate  this  Plan  at any  time by a vote of a
majority of the members thereof.

      14.  Restrictions  on Transfer.  Each Stock Option granted under this Plan
shall be transferable only by will or the laws of descent and  distribution.  No
interest  of any  Employee  under  this Plan  shall be  subject  to  attachment,
execution, garnishment, sequestration, the laws of bankruptcy or any other legal
or  equitable  process.  Each  Stock  Option  granted  under  this Plan shall be
exercisable  during  an  Employee's  lifetime  only  by the  Employee  or by the
Employee's legal representative.

      15. Term of Plan.  No shares of the Common  Stock shall be issued,  unless
and until the  Directors  of the Company have  approved  this Plan and all other
legal  requirements  have been met. This Plan was adopted by the Board effective
November 22, 2006, and shall expire on November 22, 2016.

      16.  Governing  Law. This Plan and all actions taken  thereunder  shall be
governed by, and construed in accordance with, the laws of the State of Florida.

      17. Information to Shareholders.  The Company shall furnish to each of its
stockholders financial statements of the Company at least annually.

      18. Miscellaneous.

<PAGE>

            (a) Nothing in this Plan shall be deemed to create any obligation on
the part of the Board to nominate any Director for  reelection  by the Company's
stockholders or to limit the rights of the stockholders to remove any Director.

            (b) The  Company  shall  have  the  right to  require,  prior to the
issuance or delivery  of any shares of the Common  Stock  pursuant to this Plan,
that a  Participant  make  arrangements  satisfactory  to the  Committee for the
withholding  of any taxes  required  by law to be withheld  with  respect to the
issuance or delivery  of such  shares,  including,  without  limitation,  by the
withholding  of shares  that  would  otherwise  be so issued  or  delivered,  by
withholding from any other payment due to the Participant,  or by a cash payment
to the Company by the Participant.

      IN WITNESS WHEREOF,  this Plan has been executed  effective as of November
22, 2006.

                                        THE JACKSON RIVERS COMPANY

                                        By /s/ Jeffrey W. Flannery
                                           -------------------------------------
                                               Jeffrey W. Flannery
                                               Chief Executive OfficerExhibit 10

                            US GLOBAL NANOSPACE, INC.

                      AMENDED AND RESTATED 2002 STOCK PLAN

           As Adopted April 10, 2003 and Amended on November 22, 2006

1.    PURPOSE.

      The purpose of this Plan is to provide incentives to attract, retain and
motivate eligible persons whose present and potential contributions are
important to the success of the Company, and its Parent and Subsidiaries (if
any), by offering them an opportunity to participate in the Company's future
performance through awards of Options, the right to purchase Common Stock and
Stock Bonuses. Capitalized terms not defined in the text are defined in Section
2.

2.    DEFINITIONS.

      As used in this Plan, the following terms will have the following
meanings:

      "AWARD" means any award under this Plan, including any Option, Stock Award
or Stock Bonus.

      "AWARD AGREEMENT" means, with respect to each Award, the signed written
agreement between the Company and the Participant setting forth the terms and
conditions of the Award.

      "BOARD" means the Board of Directors of the Company.

      "CAUSE" means any cause, as defined by applicable law, for the termination
of a Participant's employment with the Company or a Parent or Subsidiary of the
Company.

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

      "COMPANY" means US Global Nanospace, Inc. or any successor corporation.

      "COMMITTEE" means that committee appointed by the Board of Directors to
administer and interpret the Plan as more particularly described in Section 5 of
the Plan; provided, however, that the term Committee will refer to the Board of
Directors during such times as no Committee is appointed by the Board of
Directors.

      "DISABILITY" means a disability, whether temporary or permanent, partial
or total, as determined by the Committee.

<PAGE>

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

      "EXERCISE PRICE" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

      "FAIR MARKET VALUE" means, as of any date, the value of a share of the
Company's Common Stock determined as follows:

            (a) if such Common Stock is publicly traded and is then listed on a
      national securities exchange, its closing price on the date of
      determination on the principal national securities exchange on which the
      Common Stock is listed or admitted to trading as reported in The Wall
      Street Journal;

            (b) if such Common Stock is quoted on the NASDAQ National Market or
      the NASDAQ SmallCap Market, its closing price on the NASDAQ National
      Market or the NASDAQ SmallCap Market, respectively, on the date of
      determination as reported in The Wall Street Journal;

            (c) if such Common Stock is publicly traded but is not listed or
      admitted to trading on a national securities exchange, the average of the
      closing bid and asked prices on the date of determination as reported in
      The Wall Street Journal; or

            (d) if none of the foregoing is applicable, by the Committee in good
      faith.

      "INSIDER" means an officer or director of the Company or any other person
whose transactions in the Company's Common Stock are subject to Section 16 of
the Exchange Act.

      "OPTION" means an award of an option to purchase Shares pursuant to
Section 6.

      "PARENT" means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if each of such corporations other
than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

      "PARTICIPANT" means a person who receives an Award under this Plan.

      "PERFORMANCE FACTORS" means the factors selected by the Committee, in its
sole and absolute discretion, from among the following measures to determine
whether the performance goals applicable to Awards have been satisfied:

            (a) Net revenue and/or net revenue growth;

            (b) Earnings before income taxes and amortization and/or earnings
before income taxes and amortization growth;

<PAGE>

            (c) Operating income and/or operating income growth;

            (d) Net income and/or net income growth;

            (e) Earnings per share and/or earnings per share growth;

            (f) Total stockholder return and/or total stockholder return growth;

            (g) Return on equity;

            (h) Operating cash flow return on income;

            (i) Adjusted operating cash flow return on income;

            (j) Economic value added; and

            (k) Individual business objectives.

      "PERFORMANCE PERIOD" means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Stock Awards or Stock Bonuses, if such Awards
are restricted.

      "PLAN" means this US Global Nanospace, Inc. Amended and Restated 2002
Stock Plan, as amended from time to time, which replaces, amends and restates in
its entirety the Caring Products International, Inc. 2002 Consultant Stock Plan.

      "PURCHASE PRICE" means the price at which the Participant of a Stock Award
may purchase the Shares.

      "SEC" means the Securities and Exchange Commission.

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

      "SHARES" means shares of the Company's Common Stock reserved for issuance
under this Plan, as adjusted pursuant to Sections 3 and 19, and any successor
security.

      "STOCK AWARD" means an award of Shares pursuant to Section 7.

      "STOCK BONUS" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 8.

      "SUBSIDIARY" means any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if each of the corporations
other than the last corporation in the unbroken chain owns stock possessing 50%
or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

<PAGE>

      "TERMINATION" or "TERMINATED" means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director, consultant, independent
contractor or advisor to the Company or a Parent or Subsidiary of the Company.
An employee will not be deemed to have ceased to provide services in the case of
(i) sick leave, (ii) military leave, or (iii) any other leave of absence
approved by the Company, provided that such leave is for a period of not more
than 90 days, unless reemployment upon the expiration of such leave is
guaranteed by contract or statute or unless provided otherwise pursuant to a
formal policy adopted from time to time by the Company and issued and
promulgated to employees in writing. In the case of any employee on an approved
leave of absence, the Committee may make such provisions respecting suspension
of vesting of the Award while on leave from the employ of the Company or a
Subsidiary as it may deem appropriate, except that in no event may an Option be
exercised after the expiration of the term set forth in the Option agreement.
The Committee will have sole discretion to determine whether a Participant has
ceased to provide services and the effective date on which the Participant
ceased to provide services (the "Termination Date").

3.    SHARES SUBJECT TO THE PLAN.

      3.1 Number of Shares Available. Subject to Sections 3.2 and 19, the total
aggregate number of Shares reserved and available for grant and issuance
pursuant to this Plan, after giving effect to the Company's 3:1 stock split
effected as of March 5, 2003, shall be 139,000,000 Shares (minus the number of
Shares previously issued hereunder since the date this Plan was first adopted
and any dividend shares issued in relation thereto as a result of such 3:1 stock
split) and will include Shares that are subject to: (a) issuance upon exercise
of an Option but cease to be subject to such Option for any reason other than
exercise of such Option; (b) an Award granted hereunder but forfeited or
repurchased by the Company at the original issue price; and (c) an Award that
otherwise terminates without Shares being issued. At all times the Company shall
reserve and keep available a sufficient number of Shares as shall be required to
satisfy the requirements of all outstanding Options granted under this Plan and
all other outstanding but unvested Awards granted under this Plan.

      3.2 Adjustment of Shares. In the event that the number of outstanding
shares is changed by a stock dividend, recapitalization, stock split, reverse
stock split, subdivision, combination, reclassification or similar change in the
capital structure of the Company without consideration, then (a) the number of
Shares reserved for issuance under this Plan, (b) the Exercise Prices of and
number of Shares subject to outstanding Options, and (c) the number of Shares
subject to other outstanding Awards will be proportionately adjusted, subject to
any required action by the Board or the stockholders of the Company and
compliance with applicable securities laws; provided, however, that fractions of
a Share will not be issued but will either be replaced by a cash payment equal
to the Fair Market Value of such fraction of a Share or will be rounded up to
the nearest whole Share, as determined by the Committee.

<PAGE>

4.    ELIGIBILITY.

      ISOs (as defined in Section 6 below) may be granted only to employees
(including officers and directors who are also employees) of the Company or of a
Parent or Subsidiary of the Company. All other Awards may be granted to
employees, officers, directors, consultants, independent contractors and
advisors of the Company or any Parent or Subsidiary of the Company, provided
such consultants, independent contractors and advisors render bona-fide services
not in connection with the offer and sale of securities in a capital-raising
transaction or promotion of the Company's securities. A person may be granted
more than one Award under this Plan.

5.    ADMINISTRATION.

      5.1 Committee.

            (a) The Plan shall be administered and interpreted by a committee
      consisting of two (2) or more members of the Board.

            (b) Members of the Committee may resign at any time by delivering
      written notice to the Board. Vacancies in the Committee shall be filled by
      the Board. The Committee shall act by a majority of its members in office.
      The Committee may act either by vote at a meeting or by a memorandum or
      other written instrument signed by a majority of the Committee.

            (c) If the Board, in its discretion, does not appoint a Committee,
      the Board itself will administer and interpret the Plan and take such
      other actions as the Committee is authorized to take hereunder; provided
      that the Board may take such actions hereunder in the same manner as the
      Board may take other actions under the Certificate of Incorporation and
      bylaws of the Company generally.

      5.2 Committee Authority. Without limitation, the Committee will have the
authority to:

            (a) construe and interpret this Plan, any Award Agreement and any
other agreement or document executed pursuant to this Plan;

            (b) prescribe, amend and rescind rules and regulations relating to
this Plan or any Award;

            (c) select persons to receive Awards;

            (d) determine the form and terms of Awards;

<PAGE>

            (e) determine the number of Shares or other consideration subject to
Awards;

            (f) determine whether Awards will be granted singly, in combination
with, in tandem with, in replacement of, or as alternatives to, other Awards
under this Plan or any other incentive or compensation plan of the Company or
any Parent or Subsidiary of the Company;

            (g) grant waivers of Plan or Award conditions;

            (h) determine the vesting, exercisability and payment of Awards;

            (i) correct any defect, supply any omission or reconcile any
inconsistency in this Plan, any Award or any Award Agreement;

            (j) determine whether an Award has been earned; and

            (k) make all other determinations necessary or advisable for the
administration of this Plan.

      5.3 Committee Discretion. Any determination made by the Committee with
respect to any Award will be made at the time of grant of the Award or, unless
in contravention of any express term of this Plan or Award, at any later time,
and such determination will be final and binding on the Company and on all
persons having an interest in any Award under this Plan. The Committee may
delegate to one or more officers of the Company the authority to grant an Award
under this Plan to Participants who are not Insiders of the Company. No member
of the Committee shall be personally liable for any action taken or decision
made in good faith relating to this Plan, and all members of the Committee shall
be fully protected and indemnified to the fullest extent permitted under
applicable law by the Company in respect to any such action, determination, or
interpretation.

6.    OPTIONS.

      The Committee may grant Options to eligible persons and will determine
whether such Options will be Incentive Stock Options within the meaning of the
Code ("ISO") or Nonqualified Stock Options ("NQSOs"), the number of Shares
subject to the Option, the Exercise Price of the Option, the period during which
the Option may be exercised, and all other terms and conditions of the Option,
subject to the following:

      6.1 Form of Option Grant. Each Option granted under this Plan will be
evidenced by an Award Agreement which will expressly identify the Option as an
ISO or an NQSO (hereinafter referred to as the "Stock Option Agreement"), and
will be in such form and contain such provisions (which need not be the same for
each Participant) as the Committee may from time to time approve, and which will
comply with and be subject to the terms and conditions of this Plan.

<PAGE>

      6.2 Date of Grant. The date of grant of an Option will be the date on
which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

      6.3 Exercise Period. Options may be exercisable within the times or upon
the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any Parent or Subsidiary of the
Company ("Ten Percent Stockholder") will be exercisable after the expiration of
five (5) years from the date the ISO is granted. The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically
or otherwise, in such number of Shares or percentage of Shares as the Committee
determines, provided, however, that in all events a Participant will be entitled
to exercise an Option at the rate of at least 20% per year over five years from
the date of grant, subject to reasonable conditions such as continued
employment; and further provided that an Option granted to a Participant who is
an officer or director may become fully exercisable, subject to reasonable
conditions such as continued employment, at any time or during any period
established by the Company.

      6.4 Exercise Price. The Exercise Price of an Option will be determined by
the Committee when the Option is granted and may be not less than 85% of the
Fair Market Value of the Shares on the date of grant; provided that: (a) the
Exercise Price of an ISO will be not less than 100% of the Fair Market Value of
the Shares on the date of grant; and (b) the Exercise Price of any Option
granted to a Ten Percent Stockholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant. Payment for the Shares
purchased may be made in accordance with Section 9 of this Plan.

      6.5 Method of Exercise. Options may be exercised only by delivery to the
Company of a written stock option exercise agreement (the "Exercise Agreement")
in a form approved by the Committee, (which need not be the same for each
Participant), stating the number of Shares being purchased, the restrictions
imposed on the Shares purchased under such Exercise Agreement, if any, and such
representations and agreements regarding the Participant's investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable securities laws, together with payment
in full of the Exercise Price for the number of Shares being purchased.

      6.6 Termination. Notwithstanding the exercise periods set forth in the
Stock Option Agreement, exercise of an Option will always be subject to the
following:

            (a) If the Participant's service is Terminated for any reason except
death or Disability, then the Participant may exercise such Participant's
Options only to the extent that such Options would have been exercisable upon
the Termination Date no later than three (3) months after the Termination Date
(or such longer time period not exceeding five (5) years as may be determined by
the Committee, with any exercise beyond three (3) months after the Termination
Date deemed to be an NQSO).

<PAGE>

            (b) If the Participant's service is Terminated because of the
Participant's death or Disability (or the Participant dies within three (3)
months after a Termination other than for Cause or because of Participant's
Disability), then the Participant's Options may be exercised only to the extent
that such Options would have been exercisable by the Participant on the
Termination Date and must be exercised by the Participant (or the Participant's
legal representative) no later than twelve (12) months after the Termination
Date (or such longer time period not exceeding five (5) years as may be
determined by the Committee, with any such exercise beyond (i) three (3) months
after the Termination Date when the Termination is for any reason other than the
Participant's death or Disability, or (ii) twelve (12) months after the
Termination Date when the Termination is for Participant's death or Disability,
deemed to be an NQSO).

            (c) Notwithstanding the provisions in paragraph 6.6(a) above, if the
Participant's service is Terminated for Cause, neither the Participant, the
Participant's estate nor such other person who may then hold the Option shall be
entitled to exercise any Option with respect to any Shares whatsoever, after
Termination, whether or not after Termination the Participant may receive
payment from the Company or a Subsidiary for vacation pay, for services rendered
prior to Termination, for services rendered for the day on which Termination
occurs, for salary in lieu of notice, or for any other benefits. For the purpose
of this paragraph, Termination shall be deemed to occur on the date when the
Company dispatches notice or advice to the Participant that his service is
Terminated.

      6.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent the Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

      6.8 Limitations on ISO. The aggregate Fair Market Value (determined as of
the date of grant) of Shares with respect to which ISO are exercisable for the
first time by a Participant during any calendar year (under this Plan or under
any other incentive stock option plan of the Company, Parent or Subsidiary of
the Company) will not exceed $100,000. If the Fair Market Value of Shares on the
date of grant with respect to which ISO are exercisable for the first time by a
Participant during any calendar year exceeds $100,000, then the Options for the
first $100,000 worth of Shares to become exercisable in such calendar year will
be ISO and the Options for the amount in excess of $100,000 that become
exercisable in that calendar year will be NQSOs. In the event that the Code or
the regulations promulgated thereunder are amended after the Effective Date of
this Plan to provide for a different limit on the Fair Market Value of Shares
permitted to be subject to ISO, such different limit will be automatically
incorporated herein and will apply to any Options granted after the effective
date of such amendment.

<PAGE>

      6.9 Modification, Extension or Renewal. The Committee may modify, extend
or renew outstanding Options and authorize the grant of new Options in
substitution therefore, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 6.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

      6.10 No Disqualification. Notwithstanding any other provision in this
Plan, no term of this Plan relating to ISO will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

7.    STOCK AWARD.

      A Stock Award is an offer by the Company to sell to an eligible person
Shares that may or may not be subject to restrictions. The Committee will
determine to whom an offer will be made, the number of Shares the person may
purchase, the price to be paid (the "Purchase Price"), the restrictions to which
the Shares will be subject, if any, and all other terms and conditions of the
Stock Award, subject to the following:

      7.1 Form of Stock Award. All purchases under a Stock Award made pursuant
to this Plan will be evidenced by an Award Agreement (the "Stock Purchase
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. The offer of a
Stock Award will be accepted by the Participant's execution and delivery of the
Stock Purchase Agreement and payment for the Shares to the Company in accordance
with the Stock Purchase Agreement.

      7.2 Purchase Price. The Purchase Price of Shares sold pursuant to a Stock
Award will be determined by the Committee on the date the Stock Award is granted
and may not be less than 85% of the Fair Market Value of the Shares on the grant
date. Payment of the Purchase Price must be made in accordance with Section 9 of
this Plan.

      7.3 Terms of Stock Awards. Stock Awards may be subject to such
restrictions as the Committee may impose. These restrictions may be based upon
completion of a specified number of years of service with the Company or upon
completion of the performance goals as set out in advance in the Participant's
individual Stock Purchase Agreement. Stock Awards may vary from Participant to
Participant and between groups of Participants. Prior to the grant of a Stock
Award subject to restrictions, the Committee shall: (a) determine the nature,
length and starting date of any Performance Period for the Stock Award; (b)
select from among the Performance Factors to be used to measure performance
goals, if any; and (c) determine the number of Shares that may be awarded to the
Participant. Prior to the transfer of any Stock Award, the Committee shall
determine the extent to which such Stock Award has been earned. Performance
Periods may overlap and Participants may participate simultaneously with respect
to Stock Awards that are subject to different Performance Periods and have
different performance goals and other criteria.

<PAGE>

      7.4 Termination During Performance Period. If a Participant is Terminated
during a Performance Period for any reason, then such Participant will be
entitled to payment (whether in Shares, cash or otherwise) with respect to the
Stock Award only to the extent earned as of the date of Termination in
accordance with the Stock Purchase Agreement, unless the Committee determines
otherwise.

8.    STOCK BONUSES.

      8.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares for
extraordinary services rendered to the Company or any Parent or Subsidiary of
the Company. A Stock Bonus will be awarded pursuant to an Award Agreement (the
"Stock Bonus Agreement") that will be in such form (which need not be the same
for each Participant) as the Committee will from time to time approve, and will
comply with and be subject to the terms and conditions of this Plan. A Stock
Bonus may be awarded upon satisfaction of such performance goals as are set out
in advance in the Participant's individual Award Agreement (the "Performance
Stock Bonus Agreement") that will be in such form (which need not be the same
for each Participant) as the Committee will from time to time approve, and will
comply with and be subject to the terms and conditions of this Plan. Stock
Bonuses may vary from Participant to Participant and between groups of
Participants, and may be based upon the achievement of the Company, Parent or
Subsidiary and/or individual performance factors or upon such other criteria as
the Committee may determine.

      8.2 Terms of Stock Bonuses. The Committee will determine the number of
Shares to be awarded to the Participant. If the Stock Bonus is being earned upon
the satisfaction of performance goals pursuant to a Performance Stock Bonus
Agreement, then the Committee will: (a) determine the nature, length and
starting date of any Performance Period for each Stock Bonus; (b) select from
among the Performance Factors to be used to measure the performance, if any; and
(c) determine the number of Shares that may be awarded to the Participant. Prior
to the payment of any Stock Bonus, the Committee shall determine the extent to
which such Stock Bonuses have been earned. Performance Periods may overlap and
Participants may participate simultaneously with respect to Stock Bonuses that
are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with
such performance goals and criteria as may be determined by the Committee. The
Committee may adjust the performance goals applicable to the Stock Bonuses to
take into account changes in law and accounting or tax rules and to make such
adjustments as the Committee deems necessary or appropriate to reflect the
impact of extraordinary or unusual items, events or circumstances to avoid
windfalls or hardships.

<PAGE>

      8.3 Form of Payment. The earned portion of a Stock Bonus may be paid to
the Participant by the Company either currently or on a deferred basis, with
such interest or dividend equivalent, if any, as the Committee may determine.
Payment of an interest or dividend equivalent (if any) may be made in the form
of cash or whole Shares or a combination thereof, either in a lump sum payment
or in installments, all as the Committee will determine.

9.    PAYMENT FOR SHARE PURCHASES.

      Payment for Shares purchased pursuant to this Plan may be made in cash (by
check) or, where expressly approved for the Participant by the Committee and
where permitted by law:

            (a) by cancellation of indebtedness of the Company to the
Participant;

            (b) by surrender of shares that either: (1) have been owned by the
Participant for more than six (6) months and have been paid for within the
meaning of SEC Rule 144; or (2) were obtained by the Participant in the public
market;

            (c) by waiver of compensation due or accrued to the Participant for
services rendered;

            (d) with respect only to purchases upon exercise of an Option, and
provided that a public market for the Company's stock exists:

                  (1) 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 for
the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt
of such Shares to forward the Exercise Price directly to the Company; or

                  (2) through a "margin" commitment from the Participant and a
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 directly to the Company; or

            (e) by any combination of the foregoing.

10.   WITHHOLDING TAXES.

      10.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

<PAGE>

      10.2 Stock Withholding. When, under applicable tax laws, a participant
incurs tax liability in connection with the exercise or vesting of any Award
that is subject to tax withholding and the Participant is obligated to pay the
Company the amount required to be withheld, the Committee may allow the
Participant to satisfy the minimum withholding tax obligation by electing to
have the Company withhold from the Shares to be issued that 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. All elections by a Participant to have Shares withheld for this
purpose will be made in accordance with the requirements established by the
Committee and will be in writing in a form acceptable to the Committee.

11.   PRIVILEGES OF STOCK OWNERSHIP.

      11.1 Voting and Dividends. No Participant will have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a stockholder and will have all the rights of a stockholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are issued pursuant to a Stock Award with restrictions, then any new,
additional or different securities the Participant may become entitled to
receive with respect to such Shares by virtue of a stock dividend, stock split
or any other change in the corporate or capital structure of the Company will be
subject to the same restrictions as the Stock Award; provided, further, that the
Participant will have no right to retain such stock dividends or stock
distributions with respect to Shares that are repurchased at the Participant's
Purchase Price or Exercise Price pursuant to Section 13.

      11.2 Financial Statements. The Company will provide financial statements
to each Participant prior to such Participant's purchase of Shares under this
Plan, and to each Participant annually during the period such Participant has
Awards outstanding; provided, however, the Company will not be required to
provide such financial statements to Participants whose services in connection
with the Company assure them access to equivalent information.

12.   NON-TRANSFERABILITY.

      Awards of Shares granted under this Plan, and any interest therein, will
not be transferable or assignable by the Participant, and may not be made
subject to execution, attachment or similar process, other than by will or by
the laws of descent and distribution. Awards of Options granted under this Plan,
and any interest therein, will not be transferable or assignable by the
Participant, and may not be made subject to execution, attachment or similar
process, other than by will or by the laws of descent and distribution, by
instrument to an inter vivos or testamentary trust in which the options are to
be passed to beneficiaries upon the death of the trustor, or by gift to
"immediate family" as that term is defined in 17 C.F.R. 240.16a-1(e). During the
lifetime of the Participant an Award will be exercisable only by the
Participant. During the lifetime of the Participant, any elections with respect
to an Award may be made only by the Participant unless otherwise determined by
the Committee and set forth in the Award Agreement with respect to Awards that
are not ISOs.

<PAGE>

13.   REPURCHASE RIGHTS.

      At the discretion of the Committee, the Company may reserve to itself
and/or its assignee(s) in the Award Agreement a right to repurchase a portion of
or all of the unvested Shares held by a Participant following such Participant's
Termination Date. Such repurchase by the Company shall be for cash and/or
cancellation of purchase money indebtedness and the price per share shall be the
Participant's Exercise Price or Purchase Price, as applicable.

14.   CERTIFICATES.

      All certificates for Shares or other securities delivered under this Plan
will be subject to such stop transfer orders, legends and other restrictions as
the Committee may deem necessary or advisable, including restrictions under any
applicable federal, state or foreign securities law, or any rules, regulations
and other requirements of the SEC or any stock exchange or automated quotation
system upon which the Shares may be listed or quoted.

15.   ESCROW; PLEDGE OF SHARES.

      To enforce any restrictions on a Participant's Shares, the Committee may
require the Participant to deposit all certificates representing Shares,
together with stock powers or other instruments of transfer approved by the
Committee appropriately endorsed in blank, with the Company or an agent
designated by the Company to hold in escrow until such restrictions have lapsed
or terminated, and the Committee may cause a legend or legends referencing such
restrictions to be placed on the certificates.

16.   EXCHANGE AND BUYOUT OF AWARDS.

      The Committee may, at any time or from time to time, authorize the
Company, with the consent of the respective Participants, to issue new Awards in
exchange for the surrender and cancellation of any or all outstanding Awards.
The Committee may at any time buy from a Participant an Award previously granted
with payment in cash, Shares or other consideration, based on such terms and
conditions as the Committee and the Participant may agree.

<PAGE>

17.   SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.

      An Award will not be effective unless such Award is in compliance with all
applicable federal and state securities laws, rules and regulations of any
governmental body, and the requirements of any stock exchange or automated
quotation system upon which the Shares may then be listed or quoted, as they are
in effect on the date of grant of the Award and also on the date of exercise or
other issuance. Notwithstanding any other provision in this Plan, the Company
will have no obligation to issue or deliver certificates for Shares under this
Plan prior to: (a) obtaining any approvals from governmental agencies that the
Company determines are necessary or advisable; and/or (b) completion of any
registration or other qualification of such Shares under any state or federal
law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the registration, qualification
or listing requirements of any state securities laws, stock exchange or
automated quotation system, and the Company will have no liability for any
inability or failure to do so.

18.   NO OBLIGATION TO EMPLOY.

      Nothing in this Plan or any Award granted under this Plan will confer or
be deemed to confer on any Participant any right to continue in the employ of,
or to continue any other relationship with, the Company or any Parent or
Subsidiary of the Company or limit in any way the right of the Company or any
Parent or Subsidiary of the Company to terminate Participant's employment or
other relationship at any time, with or without cause.

19.   CORPORATE TRANSACTIONS.

      19.1 Assumption or Replacement of Awards by Successor. In the event of (a)
a dissolution or liquidation of the Company, (b) a merger or consolidation in
which the Company is not the surviving corporation (other than a merger or
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (d) the sale of substantially
all of the assets of the Company, or (e) the acquisition, sale, or transfer of
more than 50% of the outstanding shares of the Company by tender offer or
similar transaction, any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption, conversion or
replacement will be binding on all Participants. In the alternative, the
successor corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to stockholders (after
taking into account the existing provisions of the Awards). The successor
corporation may also issue, in place of outstanding Shares of the Company held
by the Participant, substantially similar shares or other property subject to
repurchase restrictions no less favorable to the Participant. In the event such
successor corporation (if any) refuses to assume or substitute Awards, as
provided above, pursuant to a transaction described in this Subsection 19.1, (i)
the vesting of any or all Awards granted pursuant to this Plan will accelerate
upon a transaction described in this Section 19 and (ii) any or all Options
granted pursuant to this Plan will become exercisable in full prior to the
consummation of such event at such time and on such conditions as the Committee
determines. If such Options are not exercised prior to the consummation of the
corporate transaction, they shall terminate at such time as determined by the
Committee.

<PAGE>

      19.2 Other Treatment of Awards. Subject to any greater rights granted to
Participants under the foregoing provisions of this Section 19, in the event of
the occurrence of any transaction described in Section 19.1, any outstanding
Awards will be treated as provided in the applicable agreement or plan of
merger, consolidation, dissolution, liquidation, or sale of assets.

      19.3 Assumption of Awards by the Company. The Company, from time to time,
also may substitute or assume outstanding awards granted by another company,
whether in connection with an acquisition of such other company or otherwise, by
either; (a) granting an Award under this Plan in substitution of such other
company's award; or (b) assuming such award as if it had been granted under this
Plan if the terms of such assumed award could be applied to an Award granted
under this Plan. Such substitution or assumption will be permissible if the
holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

20.   ADOPTION AND STOCKHOLDER APPROVAL.

      This Plan will become effective on the date on which it is adopted by the
Board (the "Effective Date"). Upon the Effective Date, the Committee may grant
Awards pursuant to this Plan. The Company intends to seek stockholder approval
of the Plan within twelve (12) months after the date this Plan is adopted by the
Board; provided, however, if the Company fails to obtain stockholder approval of
the Plan during such 12-month period, pursuant to Section 422 of the Code, any
Option granted as an ISO at any time under the Plan will not qualify as an ISO
within the meaning of the Code and will be deemed to be an NQSO.

<PAGE>

21.   TERM OF PLAN/GOVERNING LAW.

      Unless earlier terminated as provided herein, this Plan will terminate ten
(10) years from the date this Plan is adopted by the Board or, if earlier, the
date of stockholder approval. This Plan and all agreements thereunder shall be
governed by and construed in accordance with the laws of the State of Delaware.

22.   AMENDMENT OR TERMINATION OF PLAN.

      The Board may at any time terminate or amend this Plan in any respect,
including without limitation amendment of any form of Award Agreement or
instrument to be executed pursuant to this Plan; provided, however, that the
Board will not, without the approval of the stockholders of the Company, amend
this Plan in any manner that requires such stockholder approval.

23.   NONEXCLUSIVITY OF THE PLAN.

      Neither the adoption of this Plan by the Board, the submission of this
Plan to the stockholders of the Company for approval, nor any provision of this
Plan will be construed as creating any limitations on the power of the Board to
adopt such additional compensation arrangements as it may deem desirable,
including, without limitation, the granting of stock options and bonuses
otherwise than under this Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

24.   ACTION BY COMMITTEE.

      Any action permitted or required to be taken by the Committee or any
decision or determination permitted or required to be made by the Committee
pursuant to this Plan shall be taken or made in the Committee's sole and
absolute discretion.

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