Document:

ESCROW AGREEMENT

                      [FOR SECURITIES OFFERING UNDERWRITTEN
                       ON "ALL OR NONE" OR "MIN/MAX" BASIS]

     THIS  ESCROW  AGREEMENT, dated as of January 12, 2004 ("Escrow Agreement"),
is  by  and  between  Charleston  Capital  Corporation,  a  Delaware corporation
("Charleston");  NanoPierce Technologies, Inc., a Nevada corporation ("Issuer");
and  WACHOVIA  BANK,  NATIONAL  ASSOCIATION,  a national banking association, as
Escrow  Agent  hereunder  ("Escrow  Agent").

                                   BACKGROUND

A.     Issuer  has  engaged  Charleston  as  its  agent to sell up to 20,000,000
shares  of  the Company's Common Stock (the "Shares") on a "best efforts" basis,
pursuant  to  the offering document or registration statement attached hereto as
Exhibit  B  (the "Offering Document"). For every share of Common Stock purchased
----------
by an investor, such investor shall receive a Warrant, to purchase one (1) share
of  Common  Stock at an exercise price equal to $.25.  One (1) Share and one (1)
Warrant  are  herein  referred  to as a unit   (singly a "Unit" cumulatively the
"Units").  The  Units  are  being  offered  through Charleston at $.10 per Unit.

     B.   In  accordance  with  the  Offering Document, subscribers to the Units
     (the  "Subscribers"  and  individually, a "Subscriber") will be required to
     submit full payment for their respective investments at the time they enter
     into  subscription  agreements.

     C.   In  accordance  with  the  Offering  Document,  all  payments received
     by  Charleston in connection with subscriptions for Units shall be promptly
     forwarded to Escrow Agent, and Escrow Agent has agreed to accept, hold, and
     disburse  such  funds  deposited  with  it  and  the  earnings  thereon  in
     accordance  with  the  terms  of  this  Escrow  Agreement.

     D.   In order to establish the escrow of funds and to effect the provisions
     of  the Offering Document, the parties hereto have entered into this Escrow
     Agreement.

                             STATEMENT OF AGREEMENT

     NOW  THEREFORE,  for  good  and  valuable  consideration,  the  receipt and
sufficiency  of  which  are  hereby  acknowledged,  the  parties  hereto,  for
themselves,  their  successors  and  assigns,  hereby  agree  as  follows:

     1.     Definitions.  In  addition to the terms defined above, the following
            -----------
terms shall have the following meanings when used herein:

<PAGE>
          "Cash  Investment"  shall  mean the number of Units to be purchased by
any  Subscriber  multiplied  by the offering price per Share as set forth in the
Offering  Document.

          "Cash  Investment  Instrument"  shall  mean  a  check,  money order or
similar  instrument,  made  payable to or endorsed to Escrow Agent in the manner
described  in Section 3(c) hereof, in full payment for the Units to be purchased
              ------------
by  any  Subscriber.

          "Escrow  Funds"  shall  mean the funds deposited with the Escrow Agent
pursuant  to  this Escrow Agreement, together with any interest and other income
thereon.

          "Expiration  Date"  means  the  date  so  designated  on  Exhibit  A.
                                                                    ----------

          "Minimum  Offering"  shall  mean  the  number  Units  so designated on
Exhibit  A  hereto.
----------

          "Minimum Offering Notice" shall mean a written notification, signed by
Charleston,  pursuant to which Charleston shall represent (1) that subscriptions
for  the  Minimum  Offering  have  been  received,  (2)  that,  to  the  best of
Charleston's  knowledge  after  due  inquiry  and  review  of  its records, Cash
Investment  Instruments  in  full  payment  for that number of Units equal to or
greater  than  the  Minimum  Offering  have  been  received,  deposited with and
collected  by  Escrow  Agent,  (3)  and  that  such  subscriptions have not been
withdrawn,  rejected  or otherwise terminated, and (4) that the Subscribers have
no statutory or regulatory rights of rescission without cause or all such rights
have  expired.

          "Pro  Rata Basis," with respect to the allocation among Subscribers of
interest  and  other  earnings  held  in  the Escrow Funds, shall mean, for each
Subscriber,  the  Subscriber's  Cash Investment multiplied by the number of days
the  Cash Investment of such Subscriber was held in interest-bearing investments
pursuant  to  Section  6  hereof,  multiplied by the average yield earned on the
              ----------
Escrow  Funds  during  such  period  of  days.

          "Subscription  Accounting"  shall  mean  an  accounting  of  all
subscriptions  for  Units  received and accepted by Charleston as of the date of
such  accounting, indicating for each subscription the Subscriber's name, social
security  number  and address, the number and total purchase price of subscribed
Units,  the date of receipt by Charleston of the Cash Investment Instrument, and
notations  of  any  nonpayment  of the Cash Investment Instrument submitted with
such  subscription,  any  withdrawal of such subscription by the Subscriber, any
rejection of such subscription by Charleston, or other termination, for whatever
reason,  of  such  subscription.

     2.     Appointment  of  and  Acceptance  by  Escrow  Agent.  Issuer  and
            ---------------------------------------------------
Charleston  hereby  appoint Escrow Agent to serve as escrow agent hereunder, and
Escrow  Agent  hereby  accepts  such appointment in accordance with the terms of
this  Escrow  Agreement.

<PAGE>
     3.     Deposits  into  Escrow.  a.  Upon  receipt by Charleston of any Cash
            ----------------------
Investment  Instrument  for  the  purchase of Units, Charleston shall forward to
Escrow  Agent,  by  12:00  noon  on  the  next business day, the Cash Investment
Instrument  for deposit into the escrow account of the Escrow Agent described on
Exhibit  A  hereto.
----------

Each such deposit shall be accompanied by the following documents:

          (1)  a  report  containing  such  Subscriber's  name,  social security
               number  or  taxpayer  identification  number,  address  and other
               information  required  for  withholding  purposes;

          (2)  a  Subscription  Accounting;  and

          (3)  instructions  regarding the investment of such deposited funds in
               accordance  with  Section  6  hereof.
                                 ----------

     ALL  FUNDS  SO  DEPOSITED  SHALL  REMAIN  THE  PROPERTY  OF THE SUBSCRIBERS
ACCORDING  TO THEIR RESPECTIVE INTERESTS AND SHALL NOT BE SUBJECT TO ANY LIEN OR
CHARGE  BY ESCROW AGENT OR BY JUDGMENT OR CREDITORS' CLAIMS AGAINST ISSUER UNTIL
RELEASED  OR  ELIGIBLE  TO BE RELEASED TO ISSUER IN ACCORDANCE WITH SECTION 4(a)
                                                                    ------------
HEREOF.

          b.     Charleston  and  Issuer  understand  and  agree  that  all Cash
Investment  Instruments  received  by  Escrow  Agent  hereunder  are  subject to
collection  requirements  of  presentment  and final payment, and that the funds
represented  thereby  cannot be drawn upon or disbursed until such time as final
payment  has  been  made  and  is  no longer subject to dishonor.  Upon receipt,
Escrow  Agent  shall process each Cash Investment Instrument for collection, and
the  proceeds  thereof shall be held as part of the Escrow Funds until disbursed
in accordance with Section 4 hereof.  If, upon presentment for payment, any Cash
                   ---------
Investment  Instrument is dishonored, Escrow Agent's sole obligation shall be to
notify Charleston of such dishonor and to return such Cash Investment Instrument
to  Charleston.  Notwithstanding  the  foregoing,  if  for  any  reason any Cash
Investment  Instrument  is  uncollectible  after  payment or disbursement of the
funds  represented  thereby  has  been  made  by  Escrow  Agent,  Issuer  shall
immediately  reimburse  Escrow  Agent  upon receipt from Escrow Agent of written
notice  thereof.

          Upon receipt of any Cash Investment Instrument that represents payment
of  an amount less than or greater than the Cash Investment, Escrow Agent's sole
obligation  shall  be to notify Issuer and Charleston of such fact and to return
such  Cash  Investment  Instrument  to  Charleston.

          c.     All  Cash  Investment  Instruments shall be made payable to the
order  of,  or  endorsed  to  the  order  of,  "Wachovia  Bank,  National
Association/[__ISSUER  NAME__]  - Escrow
                -----------

                                      -3-
<PAGE>
Account,"  and  Escrow  Agent  shall  not be obligated to accept, or present for
payment,  any Cash Investment Instrument that is not payable or endorsed in that
manner.

     4.     Disbursements  of  Escrow  Funds.
            --------------------------------

          a.     Completion  of  Minimum Offering.  Subject to the provisions of
                 ---------------------------------
Section  10 hereof, Escrow Agent shall pay to Issuer the liquidated value of the
-----------
Escrow  Funds,  by  certified  or  bank check or by wire transfer, no later than
fifteen  (15)  business  days  following  receipt  of  the  following documents:

          (1)  A  Minimum  Offering  Notice;

          (2)  Subscription  Accounting,  substantiating the sale of the Minimum
               Offering;

          (3)  The  documents  described  on  Exhibit  C  attached  hereto  and
                                              ----------
               incorporated  herein  by  reference;  and

          (4)  Such  other  certificates,  notices  or other documents as Escrow
               Agent  shall  reasonably  require.

     Notwithstanding  the  foregoing,  Escrow  Agent  shall  not be obligated to
disburse  the  Escrow Funds to Issuer if Escrow Agent has reason to believe that
(a)  Cash  Investment Instruments in full payment for that number of Units equal
to  or  greater than the Minimum Offering have not been received, deposited with
and collected by the Escrow Agent, or (b) any of the certifications and opinions
set forth in the Minimum Offering Notice or the documents described in Exhibit C
                                                                       ---------
attached  hereto  are  incorrect  or  incomplete.

     After  the  initial disbursement of Escrow Funds to Issuer pursuant to this
Section  4(a),  Escrow  Agent  shall pay to Issuer any additional funds received
-------------
with respect to the Units, by certified or bank check or wire transfer, no later
than  fifteen  (15)  business  days  after  receipt.

          b.     Rejection  of  Any Subscription or Termination of the Offering.
                 --------------------------------------------------------------
No  later  than  fifteen  (15)  business  days  after receipt by Escrow Agent of
written notice (i) from Issuer or Charleston that Charleston intends to reject a
Subscriber's  subscription, (ii) from Issuer or Charleston that there will be no
closing  of  the  sale  of Units to Subscribers, (iii) from any federal or state
regulatory  authority  that  any  application  by  Issuer  to  conduct a banking
business has been denied, or (iv) from the Securities and Exchange Commission or
                          --
any other federal or state regulatory authority that a stop or similar order has
been issued with respect to the Offering Document and has remained in effect for
at  least  twenty  (20)  days,  Escrow  Agent  shall  pay  to  the  applicable
Subscriber(s), by certified or bank check and by first-class mail, the amount of
the  Cash  Investment paid by each Subscriber, and shall pay all interest income
on  the  Escrow  Funds  in  the  manner  set  forth  on  Exhibit  A  hereto.
                                                         ----------

                                      -4-
<PAGE>
          c.     Expiration of Offering Period.  Notwithstanding anything to the
                 -----------------------------
contrary  contained  herein,  if  Escrow Agent shall not have received a Minimum
Offering  Notice  on  or  before the Expiration Date, Escrow Agent shall, within
fifteen  (15)  business  days after such Expiration Date and without any further
instruction  or  direction from Charleston or Issuer, return to each Subscriber,
by  certified or bank check and by first-class mail, the Cash Investment made by
such  Subscriber,  and  shall pay all interest income on the Escrow Funds in the
manner  set  forth  on  Exhibit  A  hereto.
                        ----------

     5.     Suspension  of  Performance  or Disbursement Into Court.  If, at any
            -------------------------------------------------------
time,  (i)  there  shall  exist  any  dispute between Charleston, Issuer, Escrow
Agent,  any  Subscriber  or  any  other  person  with  respect to the holding or
disposition  of  all or any portion of the Escrow Funds or any other obligations
of  Escrow  Agent  hereunder,  or  (ii) if at any time Escrow Agent is unable to
determine, to Escrow Agent's sole satisfaction, the proper disposition of all or
any portion of the Escrow Funds or Escrow Agent's proper actions with respect to
its  obligations hereunder, or (iii) if Charleston and Issuer have not within 30
days  of  the  furnishing by Escrow Agent of a notice of resignation pursuant to
Section  7  hereof  appointed  a  successor  Escrow Agent to act hereunder, then
----------
Escrow  Agent  may, in its sole discretion, take either or both of the following
actions:

          a.     suspend  the  performance  of any of its obligations (including
without  limitation  any  disbursement  obligations) under this Escrow Agreement
until  such dispute or uncertainty shall be resolved to the sole satisfaction of
Escrow Agent or until a successor Escrow Agent shall have been appointed (as the
case  may  be).

          b.     petition  (by  means  of  an  interpleader  action or any other
appropriate  method) any court of competent jurisdiction in any venue convenient
to  Escrow  Agent, for instructions with respect to such dispute or uncertainty,
and  to  the  extent required or permitted by law, pay into such court all funds
held  by  it  in the Escrow Funds for holding and disposition in accordance with
the  instructions  of  such  court.

Escrow  Agent  shall  have no liability to Charleston, Issuer, any Subscriber or
any  other  person  with  respect  to  any  such  suspension  of  performance or
disbursement  into  court,  specifically  including  any  liability  or  claimed
liability that may arise, or be alleged to have arisen, out of or as a result of
any  delay  in  the  disbursement  of  the  Escrow Funds or any delay in or with
respect  to  any  other  action  required  or  requested  of  Escrow  Agent.

     6.     Investment  of  Funds.  Escrow  Agent  shall invest and reinvest the
            ---------------------
Escrow  Funds  as  Charleston  shall  direct  (subject  to  applicable  minimum
investment  requirements)  in  writing; provided, however, that no investment or
reinvestment  may  be  made  except  in  the  following:

          a.     direct  obligations  of  the  United  States  of  America  or
obligations  the  principal  of  and  the  interest on which are unconditionally
guaranteed  by  the  United  States  of  America;  or

          b.     savings accounts of any bank, trust company or national banking
association  (including  Escrow  Agent  and  its  affiliates).

                                      -5-
<PAGE>
          If  Escrow Agent has not received written instructions from Charleston
at  any time that an investment decision must be made, Escrow Agent shall invest
the  Escrow  Funds,  or such portion thereof as to which no written instructions
have  been  received, in investments described in clause (b) above.  Each of the
foregoing  investments  shall  be made in the name of Escrow Agent in its stated
capacity  as  escrow  agent.  No  investment  shall be made in any instrument or
security  that  has  a maturity of greater than six (6) months.  Notwithstanding
anything  to  the contrary contained herein, Escrow Agent may, without notice to
Charleston  or Issuer, sell or liquidate any of the foregoing investments at any
time  if  the proceeds thereof are required for any disbursement of Escrow Funds
permitted  or  required hereunder.  All investment earnings shall become part of
the  Escrow  Funds  and  investment  losses  shall be charged against the Escrow
Funds.  Escrow  Agent  shall  not  be  liable or responsible for any loss in the
value  of any investment made pursuant to this Escrow Agreement or for any loss,
cost or penalty resulting from any sale or liquidation of the Escrow Funds. With
respect  to any Escrow Funds or any written investment instruction of Charleston
received  by  Escrow  Agent  after ten o'clock, a.m., Charlotte, North Carolina,
time,  Escrow Agent shall not be required to invest such funds or to effect such
investment  instruction  until the next day upon which banks in Charlotte, North
Carolina  are  open  for  business.

     7.     Resignation  of  Escrow  Agent.  Escrow  Agent  may  resign  and  be
            ------------------------------
discharged  from  the  performance of its duties hereunder at any time by giving
ten (10) days prior written notice to the Charleston and the Issuer specifying a
date  when  such  resignation  shall  take  effect.  Upon  any  such  notice  of
resignation,  the Charleston and Issuer jointly shall appoint a successor Escrow
Agent  hereunder  prior to the effective date of such resignation.  The retiring
Escrow Agent shall transmit all records pertaining to the Escrow Funds and shall
pay  all Escrow Funds to the successor Escrow Agent, after making copies of such
records as the retiring Escrow Agent deems advisable and after payment by Issuer
or deduction from Escrow Funds (to the extent of Issuer's rights therein) of all
fees  and  expenses  (including  court  costs  and  attorneys' fees) payable to,
incurred  by,  or  expected  to  be  incurred  by  the  retiring Escrow Agent in
connection  with  the  performance  of its duties and the exercise of its rights
hereunder.  After  any  retiring  Escrow  Agent's resignation, the provisions of
this  Escrow  Agreement  shall  inure  to its benefit as to any actions taken or
omitted to be taken by it while it was Escrow Agent under this Escrow Agreement.
Any  corporation  or  association  into  which the Escrow Agent may be merged or
converted  or  with  which  it  may  be  consolidated,  or  any  corporation  or
association  to  which  all  or  substantially all of the escrow business of the
Escrow Agent's corporate trust line of business may be transferred, shall be the
Escrow  Agent  under  this  Escrow  Agreement  without  further  act.

     8.     Liability  of  Escrow  Agent.
            ----------------------------

          a.     The  Escrow Agent undertakes to perform only such duties as are
expressly  set  forth  herein  and no duties shall be implied.  The Escrow Agent
shall have no liability under and no duty to inquire as to the provisions of any
agreement  other  than  this  Escrow Agreement, including without limitation the
Offering Document.  The Escrow Agent shall not be liable for any action taken or
omitted  by  it  in  good  faith  except to the extent that a court of competent
jurisdiction  determines

                                      -6-
<PAGE>
that  the  Escrow Agent's gross negligence or willful misconduct was the primary
cause  of  any  loss to the Issuer, Charleston or any Subscriber. Escrow Agent's
sole  responsibility shall be for the safekeeping and disbursement of the Escrow
Funds  in accordance with the terms of this Escrow Agreement. Escrow Agent shall
have no implied duties or obligations and shall not be charged with knowledge or
notice  of  any  fact  or circumstance not specifically set forth herein. Escrow
Agent  may  rely  upon any notice, instruction, request or other instrument, not
only  as  to  its  due execution, validity and effectiveness, but also as to the
truth  and  accuracy  of  any  information contained therein, which Escrow Agent
shall  believe  to be genuine and to have been signed or presented by the person
or parties purporting to sign the same. In no event shall Escrow Agent be liable
for incidental, indirect, special, consequential or punitive damages (including,
but  not  limited to lost profits), even if the Escrow Agent has been advised of
the  likelihood  of  such  loss  or damage and regardless of the form of action.
Escrow  Agent  shall  not  be obligated to take any legal action or commence any
proceeding  in  connection  with  the  Escrow Funds, any account in which Escrow
Funds  are  deposited,  this  Escrow  Agreement  or the Offering Document, or to
appear  in,  prosecute  or  defend  any such legal action or proceeding. Without
limiting  the generality of the foregoing, Escrow Agent shall not be responsible
for  or  required  to enforce any of the terms or conditions of any subscription
agreement  with any Subscriber or any other agreement between Issuer, Charleston
and/or  any  Subscriber.  Escrow Agent shall not be responsible or liable in any
manner  for  the  performance  by  Issuer  or any Subscriber of their respective
obligations  under  any  subscription  agreement  nor  shall  Escrow  Agent  be
responsible or liable in any manner for the failure of Issuer, Charleston or any
third  party  (including  any Subscriber) to honor any of the provisions of this
Escrow  Agreement.  Escrow Agent may consult legal counsel selected by it in the
event of any dispute or question as to the construction of any of the provisions
hereof  or of any other agreement or of its duties hereunder, or relating to any
dispute  involving  any  party hereto, and shall incur no liability and shall be
fully indemnified from any liability whatsoever in acting in accordance with the
opinion  or instruction of such counsel. Issuer shall promptly pay, upon demand,
the  reasonable  fees  and  expenses  of  any  such  counsel.

          b.     The  Escrow  Agent  is  authorized,  in its sole discretion, to
comply  with  orders  issued or process entered by any court with respect to the
Escrow  Funds,  without  determination  by  the  Escrow  Agent  of  such court's
jurisdiction  in  the matter.  If any portion of the Escrow Funds is at any time
attached,  garnished  or  levied  upon  under  any  court  order, or in case the
payment, assignment, transfer, conveyance or delivery of any such property shall
be  stayed  or  enjoined  by  any court order, or in case any order, judgment or
decree shall be made or entered by any court affecting such property or any part
thereof, then and in any such event, the Escrow Agent is authorized, in its sole
discretion,  to  rely  upon  and  comply  with any such order, writ, judgment or
decree  which  it  is advised by legal counsel selected by it is binding upon it
without  the  need  for appeal or other action; and if the Escrow Agent complies
with  any such order, writ, judgment or decree, it shall not be liable to any of
the parties hereto or to any other person or entity by reason of such compliance
even  though  such order, writ, judgment or decree may be subsequently reversed,
modified,  annulled,  set  aside  or  vacated.

     9.     Indemnification  of  Escrow  Agent.  From and at all times after the
            ----------------------------------
date  of this Escrow Agreement, Issuer shall, to the fullest extent permitted by
law,  indemnify  and  hold harmless the

                                      -7-
<PAGE>
Escrow Agent and each director, officer, employee, attorney, agent and affiliate
of  Escrow  Agent  (collectively, the "Indemnified Parties") against any and all
actions,  claims (whether or not valid), losses, damages, liabilities, costs and
expenses  of  any  kind  or  nature  whatsoever  (including  without  limitation
reasonable  attorneys' fees, costs and expenses) incurred by or asserted against
any  of  the Indemnified Parties from and after the date hereof, whether direct,
indirect or consequential, as a result of or arising from or in any way relating
to  any  claim,  demand,  suit,  action  or proceeding (including any inquiry or
investigation) by any person, including without limitation Issuer or Charleston,
whether  threatened  or  initiated, asserting a claim for any legal or equitable
remedy  against  any  person under any statute or regulation, including, but not
limited  to,  any  federal  or state securities laws, or under any common law or
equitable  cause  or  otherwise,  arising  from  or  in  connection  with  the
negotiation,  preparation,  execution,  performance or failure of performance of
this  Escrow  Agreement  or any transactions contemplated herein, whether or not
any  such  Indemnified  Party is a party to any such action, proceeding, suit or
the  target  of  any  such  inquiry or investigation; provided, however, that no
Indemnified  Party  shall  have  the  right  to be indemnified hereunder for any
liability finally determined by a court of competent jurisdiction, subject to no
further  appeal,  to  have  resulted solely from the gross negligence or willful
misconduct  of  such  Indemnified  Party.  The  obligations of Issuer under this
Section  9  shall  survive  any  termination  of  this  Escrow Agreement and the
----------
resignation  or  removal  of  Escrow  Agent.

     10.     Compensation  to  Escrow  Agent.
             -------------------------------

          a.     Fees  and  Expenses.  Issuer  shall compensate Escrow Agent for
                 -------------------
its  services  hereunder  in  accordance  with Exhibit A attached hereto and, in
                                               ---------
addition,  shall  reimburse Escrow Agent for all of its reasonable out-of-pocket
expenses,  including  attorneys'  fees, travel expenses, telephone and facsimile
transmission  costs,  postage  (including  express  mail  and overnight delivery
charges),  copying  charges  and  the  like.  The  additional  provisions  and
information  set  forth  on Exhibit A are hereby incorporated by this reference,
                            ---------
and  form  a  part  of  this  Escrow  Agreement.  All  of  the  compensation and
reimbursement  obligations  set  forth  in  this  Section 10 shall be payable by
                                                  ----------
Issuer  upon  demand  by  Escrow  Agent.  The  obligations  of Issuer under this
Section  10  shall  survive  any  termination  of  this Escrow Agreement and the
-----------
resignation  or  removal  of  Escrow  Agent.

          b.     Disbursements  from  Escrow  Funds  to  Pay  Escrow Agent.  The
                 ---------------------------------------------------------
Escrow  Agent  is authorized to and may disburse from time to time, to itself or
to any Indemnified Party from the Escrow Funds (to the extent of Issuer's rights
thereto),  the  amount  of  any  compensation and reimbursement of out-of-pocket
expenses  due  and payable hereunder (including any amount to which Escrow Agent
or any Indemnified Party is entitled to seek indemnification pursuant to Section
                                                                         -------
9 hereof).  Escrow Agent shall notify Issuer of any disbursement from the Escrow
-
Funds  to  itself  or to any Indemnified Party in respect of any compensation or
reimbursement  hereunder  and  shall  furnish  to  Issuer  copies of all related
invoices  and  other  statements.

          c.     Security  and Offset.  Issuer hereby grants to Escrow Agent and
                 --------------------
the  Indemnified  Parties  a security interest in and lien upon the Escrow Funds
(to  the extent of Issuer's rights thereto) to secure all obligations hereunder,
and  Escrow Agent and the Indemnified Parties

                                      -8-
<PAGE>
shall  have  the right to offset the amount of any compensation or reimbursement
due  any  of them hereunder (including any claim for indemnification pursuant to
Section  9  hereof)  against  the Escrow Funds (to the extent of Issuer's rights
----------
thereto.)  If  for any reason the Escrow Funds available to Escrow Agent and the
Indemnified  Parties  pursuant  to such security interest or right of offset are
insufficient to cover such compensation and reimbursement, Issuer shall promptly
pay  such amounts to Escrow Agent and the Indemnified Parties upon receipt of an
itemized  invoice.

     11.     Representations  and  Warranties;  Legal  Opinions.     a.  Each of
             --------------------------------------------------
Charleston  and  the Issuer respectively makes the following representations and
warranties  to  Escrow  Agent:

          (1)     It  is  a  corporation  or  limited  liability  company  duly
organized, validly existing, and in good standing under the laws of the state of
its  incorporation  or organization, and has full power and authority to execute
and  deliver  this  Escrow  Agreement  and to perform its obligations hereunder;

          (2)     This  Escrow Agreement has been duly approved by all necessary
corporate  action,  including  any necessary shareholder or membership approval,
has been executed by its duly authorized officers, and constitutes its valid and
binding  agreement,  enforceable  in  accordance  with  its  terms.

          (3)     The  execution,  delivery,  and  performance  of  this  Escrow
Agreement will not violate, conflict with, or cause a default under its articles
of  incorporation,  articles  of  organization or bylaws, operating agreement or
other organizational documents, as applicable, any applicable law or regulation,
any court order or administrative ruling or decree to which it is a party or any
of  its  property  is  subject,  or any agreement, contract, indenture, or other
binding  arrangement  to which it  is a party or any of its property is subject.
The  execution,  delivery and performance of this Escrow Agreement is consistent
with  and  accurately  described in the Offering Document, and the allocation of
interest  and  other  earnings to Subscribers, as set forth in Sections 4(b) and
                                                               -------------
4(c)  hereof,  has  been  properly  described  therein.
----

          (4)     It hereby acknowledges that the status of Escrow Agent is that
of  agent  only for the limited purposes set forth herein, and hereby represents
and  covenants  that  no  representation  or  implication shall be made that the
Escrow  Agent has investigated the desirability or advisability of investment in
the  Units or has approved, endorsed or passed upon the merits of the investment
therein  and  that the name of the Escrow Agent has not and shall not be used in
any manner in connection with the offer or sale of the Units other than to state
that  the  Escrow  Agent  has  agreed  to  serve as escrow agent for the limited
purposes  set  forth  herein.

          (5)     All of its representations and warranties contained herein are
true  and  complete  as of the date hereof and  will be true and complete at the
time of any deposit to or disbursement from the Escrow Funds.

                                      -9-
<PAGE>
          b.     Issuer  makes  the  following  further  representations  and
warranties  to  Escrow  Agent:

          (1)     No  party  other  than  the parties hereto and the prospective
Subscribers  have,  or  shall  have, any lien, claim or security interest in the
Escrow  Funds  or  any  part  thereof.  No financing statement under the Uniform
Commercial  Code  is on file in any jurisdiction claiming a security interest in
or  describing  (whether specifically or generally) the Escrow Funds or any part
thereof.

          c.     Charleston  makes  the  following  further  representations and
warranties  to  Escrow  Agent:

          (1)     The deposit with Escrow Agent by Charleston of Cash Investment
Instruments  pursuant  to  Section 3 hereof shall be deemed a representation and
                           ---------
warranty  by  Charleston  that such Cash Investment Instrument represents a bona
fide  sale  to the Subscriber described therein of the amount of Units set forth
therein,  subject  to and in accordance with the terms of the Offering Document.

     12.     Tax  Reporting.  All  earnings  or  interest paid hereunder will be
             --------------
reported  by  the  recipient  thereof  to  the Internal Revenue Service or other
taxing  authority.  Notwithstanding  the foregoing, Escrow Agent shall report to
the Internal Revenue Service or such other taxing authority such earnings as its
deems  appropriate  or  as  required  by  any  applicable law or regulation.  In
addition,  Escrow  Agent shall withhold any taxes it deems appropriate and shall
remit  such  taxes  to  the  appropriate  authorities.

     13.     Identifying  Information.  Issuer and Charleston acknowledge that a
             ------------------------
portion of the identifying information set forth on Exhibit A is being requested
                                                    ---------
by  the  Escrow  Agent in connection with the USA Patriot Act, Pub.L.107-56 (the
"Act"),  and  Issuer  and Charleston agree to provide any additional information
requested  by  the  Escrow  Agent  in  connection  with  the  Act or any similar
legislation  or regulation to which Escrow Agent is subject, in a timely manner.
The  Issuer  and  Charleston  each  represents  that  its respective identifying
information  set  forth on Exhibit A, including without limitation, its Taxpayer
                           ---------
Identification  Number  assigned  by  the  Internal Revenue Service or any other
taxing  authority,  is true and complete on the date hereof and will be true and
complete  at  the  time  of  any  disbursement  of  the  Escrow  Funds.

     14.     Consent  to  Jurisdiction  and  Venue.  In the event that any party
             -------------------------------------
hereto  commences a lawsuit or other proceeding relating to or arising from this
Escrow  Agreement,  the  parties  hereto  agree that the Colorado Courts Federal
                                                         -----------------------
Courts  shall have the sole and exclusive jurisdiction over any such proceeding.
------
If  such court lacks federal subject matter jurisdiction, the parties agree that
the  Colorado  State  Courts  shall have sole and exclusive jurisdiction. Any of
     -----------------------
these  courts  shall be proper venue for any such lawsuit or judicial proceeding
and  the  parties  hereto  waive any objection to such venue. The parties hereto
consent  to  and  agree  to  submit  to  the  jurisdiction  of any of the courts
specified  herein  and  agree  to  accept  service  of  process to vest personal
jurisdiction  over  them  in  any  of  these  courts.

                                      -10-
<PAGE>
     15.     Notice.  All  notices,  approvals,  consents,  requests,  and other
             ------
communications  hereunder  shall  be in writing and shall be deemed to have been
given  when  the  writing  is delivered if given or delivered by hand, overnight
delivery  service  or  facsimile  transmitter  (with  confirmed  receipt) to the
address  or  facsimile  number  set  forth on Exhibit A hereto, or to such other
                                              ---------
address  as  each  party  may  designate for itself by like notice, and shall be
deemed  to  have  been  given  on  the date deposited in the mail, if mailed, by
first-class,  registered  or  certified  mail, postage prepaid, addressed as set
forth  on Exhibit A hereto, or to such other address as each party may designate
          ---------
for  itself  by  like  notice.

     16.     Amendment or Waiver.  This Escrow Agreement may be changed, waived,
             -------------------
discharged  or  terminated  only  by  a writing signed by Charleston, Issuer and
Escrow  Agent.  No  delay  or omission by any party in exercising any right with
respect  hereto  shall  operate as a waiver.  A waiver on any one occasion shall
not  be  construed  as a bar to, or waiver of, any right or remedy on any future
occasion.

     17.     Severability.  To the extent any provision of this Escrow Agreement
             ------------
is  prohibited  by  or  invalid  under  applicable  law, such provision shall be
ineffective  to  the  extent  of  such  prohibition  or  invalidity,  without
invalidating the remainder of such provision or the remaining provisions of this
Escrow  Agreement.

     18.     Governing  Law.  This  Escrow  Agreement  shall  be  construed  and
             --------------
interpreted  in accordance with the internal laws of the State of Nevada without
                                                                  ------
giving  effect  to  the  conflict  of  laws  principles  thereof.

     19.     Entire  Agreement.  This  Escrow  Agreement  constitutes the entire
             -----------------
agreement  between  the parties relating to the acceptance, collection, holding,
investment and disbursement of the Escrow Funds and sets forth in their entirety
the obligations and duties of the Escrow Agent with respect to the Escrow Funds.

     20.     Binding  Effect.  All  of  the  terms  of this Escrow Agreement, as
             ---------------
amended from time to time, shall be binding upon, inure to the benefit of and be
enforceable  by  the respective successors and assigns of Charleston, Issuer and
Escrow  Agent.

     21.     Execution  in  Counterparts.  This Escrow Agreement may be executed
             ---------------------------
in two or more counterparts, which when so executed shall constitute one and the
same  agreement.

     22.     Termination.  Upon  the  first  to occur of the disbursement of all
             ------------
amounts  in  the Escrow Funds or deposit of all amounts in the Escrow Funds into
court  pursuant  to  Section  5 or Section 8 hereof, this Escrow Agreement shall
                     ----------    ---------
terminate  and  Escrow  Agent  shall  have  no  further  obligation or liability
whatsoever with respect to this Escrow Agreement or the Escrow Funds.

     23.     Dealings.  The  Escrow Agent and any stockholder, director, officer
             --------
or employee of the Escrow Agent may buy, sell, and deal in any of the securities
of  the Issuer and become pecuniarily

                                      -11-
<PAGE>
interested  in  any  transaction  in  which  the  Issuer  may be interested, and
contract  and  lend money to the Issuer and otherwise act as fully and freely as
though  it  were  not  Escrow  Agent under this Escrow Agreement. Nothing herein
shall preclude the Escrow Agent from acting in any other capacity for the Issuer
or  any  other  entity.

                       [SIGNATURES CONTINUED ON NEXT PAGE]
     IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to
be executed under seal as of the date first above written.

                                     NANOPIERCE TECHNOLOGIES, INC.

[CORPORATE  SEAL]                    By:  /s/Paul  H.  Metzinger
                                        ----------------------------------------
                                     Title: Paul H. Metzinger its President and
                                            CEO
ATTEST:

/s/Kristi  J.  Kampmann
-----------------------
      Secretary

                                     CHARLESTON CAPITAL CORPORATION

[CORPORATE  SEAL]                    By:  /s/Ara  Proudian
                                        ----------------------------------------
                                     Title:  Ara Proudian its President

ATTEST:

_______________________
      Secretary

                                     WACHOVIA BANK, NATIONAL
                                     ASSOCIATION, AS ESCROW AGENT

                                     By:     ______________________________
                                     Title:  ______________________________

                                      -12-
<PAGE>
                                    EXHIBIT A
                                    ---------

1.   Definitions.     "Minimum  Offering"  means  12,500,000  Units  equal  to
     -----------      $1,250,000.  "Expiration  Date" means January 28, 2004.

2.   Escrow  Account.
     ---------------

                      Wachovia Bank, National Association
                      ABA# 053000219
                      Account Name: NANOPIER TCH ESC
                      Account No. 3572001905
                      ATTN: Corporate Trust - Bond Administration

3.   Escrow  Agent  Fees.
     -------------------

     Acceptance Fee:                  $   500.00
                                      ----------
     Escrow Administration Fee:       $ 1,500.00
                                      ----------
     Out-of-Pocket  Expenses:         -At  Cost
     [Transactional Costs]:           $500.00 per closing after first 5 closings
                                      ------------------------------------------
            TOTAL                     $ 2,000.00
                                      ----------

     The  Acceptance Fee and the Annual Escrow Fee are payable upon execution of
     the escrow documents. In the event the escrow is not funded, the Acceptance
     Fee  and all related expenses remain due and payable, and if paid, will not
     be refunded. Annual fees cover a full year in advance, or any part thereof,
     and  thus  are  not  pro-rated  in  the  year  of  termination.

     The  fees  quoted in this schedule apply to services ordinarily rendered in
     the  administration  of  an  Escrow  Account  and are subject to reasonable
     adjustment  based on final review of documents, or when the Escrow Agent is
     called  upon to undertake unusual duties or responsibilities, or as changes
     in  law,  procedures,  or  the  cost  of doing business demand. Services in
     addition  to  and not contemplated in this Escrow Agreement, including, but
     not limited to, document amendments and revisions, non-standard cash and/or
     investment transactions, calculations, notices and reports, and legal fees,
     will  be  billed  as  extraordinary  expenses.

     Unless  otherwise  indicated, the above fees relate to the establishment of
     one  escrow  account.  Additional  sub-accounts governed by the same Escrow
     Agreement may incur an additional charge. Transaction costs include charges
     for wire transfers, checks, internal transfers and securities transactions.

4.   Taxpayer Identification Numbers.
     --------------------------------

     Charleston:           65-0634429
                           ----------

     Issuer:               84-0992908
                           ----------

                                Exhibit A, Page 1
<PAGE>
5.   Termination  and  Disbursement.  In the event there is any termination or
     ------------------------------
     failure  of  the  offering  pursuant  to  Sections  4b  or 4c of the Escrow
                                               ------------     --
     Agreement, the Escrow Agent shall, in accordance with the Offering Document
     (select  one):

     [ ]  Pay  as  soon  as  practicable  to  the  applicable  Subscriber(s), by
          certified  or  bank  check  and by first-class mail, each Subscriber's
          share  of  interest income earned on the Escrow Funds, each such share
          to  be  calculated  on  a  Pro  Rata  Basis  (as defined in the Escrow
          Agreement).

     [ ]  Pay  all  monies  representing  interest and other earnings as soon as
          practicable  by  certified or bank check, subject to Section 10 of the
          Escrow  Agreement,  to  Issuer.

6.   Notice  Addresses.
     -----------------

                                                        Principal Place of
                                                        Business, if different
If to Issuer at:      NanoPierce Technologies, Inc.
                      -----------------------------     ------------------------
                      370 17th Street Suite 3640
                      -----------------------------     ------------------------
                      Denver, CO 80202
                      -----------------------------     ------------------------
                      ATTN: Paul H. Metzinger
                      -----------------------------     ------------------------
                      Phone: 303-592-1010
                      Facsimile: 303-592-1054

If to Charleston at:  Charleston Capital Corp.
                      -----------------------------     ------------------------
                      216 East 45th Street, 9th Floor
                      -----------------------------     ------------------------
                      New York, NY 10017
                      -----------------------------     ------------------------
                      ATTN: Ara Proudian
                      -----------------------------     ------------------------
                      Facsimile: 212-201-3502
                      Phone: 212-244-1555

If to the Escrow
Agent at:             Wachovia Bank, National Association, as Escrow Agent
                      Corporate Trust Bond Administration
                      One Penn Plaza, Suite 1414
                      ------------------------------------------------
                      New York, NY 10119
                      ------------------------------------------------
                      ATTENTION: Michelle Mena
                                --------------------------------------
                      Facsimile Number: (212) 273-7015
                                         ---  ------------------------

                                Exhibit A, Page 2
<PAGE>

                                    EXHIBIT B
                                    ---------

                                Offering Document
                                       or
                           SEC Registration Statement

<PAGE>
                                    EXHIBIT C
                                    ---------

                          Additional Documents Required
                           for Release of Escrow Funds
                            Pursuant to Section 4(a)

1.   Certificate  of  PAUL H. METZINGER, PRESIDENT AND CEO of Issuer, that (a)
                      -----------------  -----------------
     the  Units  described  in the Offering Document have been registered or are
     exempt  from  registration  under the Securities Act of 1933, and have been
     registered  or  are  exempt  from  registration  under  applicable  state
     securities laws, (b) no stop or similar order has been issued or threatened
     to  be issued by the SEC or any other federal or state regulatory authority
     in connection with the Offering Document or the offering of Shares pursuant
     thereto, and (c) all representations and warranties of the Issuer set forth
     in  the  Escrow  Agreement are true and correct in all material respects on
     and  as of the date of such certificate as if made on the date thereof; and

2.   An  opinion  of  counsel  to  NanoPierce  Technologies, Inc. that (a) the
     Shares  described  in  the  Offering  Document  have been registered or are
     exempt  from  registration  under  the Securities Act of 1933 and have been
     registered  or  are  exempt  from  registration  under  applicable  state
     securities  laws,  and (b) to the best of its knowledge, no stop or similar
     order  has  been  issued or threatened to be issued by the SEC or any other
     federal  or  state  regulatory  authority  in  connection with the Offering
     Document  or  the  offering  of  Shares  pursuant  thereto.

<PAGE>EXHIBIT 4.1

                       LIVESTAR ENTERTAINMENT GROUP, INC.
                 EMPLOYEE STOCK INCENTIVE PLAN FOR THE YEAR 2004

     1.     General  Provisions.
            -------------------

     1.1     Purpose.  This  Stock  Incentive  Plan  (the "Plan") is intended to
             -------
allow  designated officers and employees (all of whom are sometimes collectively
referred  to  herein  as  the "Employees," or individually as the "Employee") of
Livestar Entertainment Group, Inc., a Nevada corporation (the "Company") and its
Subsidiaries  (as  that  term is defined below) which they may have from time to
time (the Company and such Subsidiaries are referred to herein as the "Company")
to receive certain options (the "Stock Options") to purchase common stock of the
Company, par value $0.0001 per share (the "Common Stock"), and to receive grants
of  the Common Stock subject to certain restrictions (the "Awards").  As used in
this  Plan,  the  term  "Subsidiary"  shall  mean  each  corporation  which is a
"subsidiary  corporation" of the Company within the meaning of Section 424(f) of
the Internal Revenue Code of 1986, as amended (the "Code").  The purpose of this
Plan  is  to  provide  the  Employees,  who  make  significant and extraordinary
contributions  to  the  long-term  growth  and  performance of the Company, with
equity-based  compensation  incentives, and to attract and retain the Employees.

     1.2     Administration.
             --------------

     1.2.1     The Plan shall be administered by the Compensation Committee (the
"Committee")  of,  or  appointed  by, the Board of Directors of the Company (the
"Board").  The  Committee  shall select one of its members as Chairman and shall
act  by  vote  of  a  majority  of a quorum, or by unanimous written consent.  A
majority  of  its  members  shall  constitute  a quorum.  The Committee shall be
governed  by the provisions of the Company's Bylaws and of Nevada law applicable
to  the  Board,  except as otherwise provided herein or determined by the Board.

     1.2.2     The  Committee  shall  have  full  and complete authority, in its
discretion,  but  subject  to the express provisions of this Plan (a) to approve
the Employees nominated by the management of the Company to be granted Awards or
Stock  Options;  (b)  to  determine  the number of Awards or Stock Options to be
granted  to  an  Employee; (c) to determine the time or times at which Awards or
Stock Options shall be granted; to establish the terms and conditions upon which
Awards  or  Stock  Options  may  be  exercised;  (d)  to  remove  or  adjust any
restrictions and conditions upon Awards or Stock Options; (e) to specify, at the
time  of  grant,  provisions  relating to exercisability of Stock Options and to
accelerate  or otherwise modify the exercisability of any Stock Options; and (f)
to  adopt such rules and regulations and to make all other determinations deemed
necessary or desirable for the administration of this Plan.  All interpretations
and  constructions  of  this  Plan  by  the  Committee,  and  all of its actions
hereunder,  shall  be  binding  and  conclusive on all persons for all purposes.

     1.2.3     The  Company  hereby  agrees  to indemnify and hold harmless each
Committee  member  and each Employee, and the estate and heirs of such Committee
member  or  Employee,  against  all  claims,  liabilities,  expenses, penalties,
damages  or  other  pecuniary losses, including legal fees, which such Committee
member  or  Employee,  his  estate  or  heirs  may  suffer  as  a  result of his
responsibilities,  obligations  or  duties  in connection with this Plan, to the
extent  that  insurance,  if  any, does not cover the payment of such items.  No
member  of  the  Committee  or  the  Board  shall  be  liable  for any action or
determination made in good faith with respect to this Plan or any Award or Stock
Option  granted  pursuant  to  this  Plan.

     1.3     Eligibility  and  Participation.  The Employees eligible under this
             -------------------------------
Plan shall be approved by the Committee from those Employees who, in the opinion
of  the  management  of  the Company, are in positions which enable them to make
significant  contributions  to  the  long-term  performance  and  growth  of the
Company.  In  selecting  the  Employees  to  whom  Award or Stock Options may be
granted,  consideration  shall  be given to factors such as employment position,
duties  and  responsibilities, ability, productivity, length of service, morale,
interest  in  the  Company  and  recommendations  of  supervisors.

     1.4     Shares  Subject  to this Plan.  The maximum number of shares of the
             -----------------------------
Common  Stock  that  may  be  issued  pursuant to this Plan shall be 100,000,000
subject to adjustment pursuant to the provisions of Paragraph 4.1.  If shares of
the Common Stock awarded or issued under this Plan are reacquired by the Company
due  to a forfeiture

                                        1
<PAGE>
or  for  any  other  reason, such shares shall be cancelled and thereafter shall
again  be  available  for  purposes  of  this  Plan.  If a Stock Option expires,
terminates or is cancelled for any reason without having been exercised in full,
the shares of the Common Stock not purchased thereunder shall again be available
for  purposes  of  this  Plan.

     2.     Provisions  Relating  to  Stock  Options.
            ----------------------------------------

     2.1     Grants  of Stock Options.  The Committee may grant Stock Options in
             ------------------------
such amounts, at such times, and to the Employees nominated by the management of
the  Company  as the Committee, in its discretion, may determine.  Stock Options
granted  under  this  Plan shall constitute "incentive stock options" within the
meaning  of  Section  422  of the Code, if so designated by the Committee on the
date  of  grant.  The  Committee  shall  also have the discretion to grant Stock
Options  which  do  not  constitute  incentive stock options, and any such Stock
Options  shall be designated non-statutory stock options by the Committee on the
date  of  grant.  The  aggregate Fair Market Value (determined as of the time an
incentive  stock  option  is  granted) of the Common Stock with respect to which
incentive  stock  options  are  exercisable  for  the first time by any Employee
during  any  one calendar year (under all plans of the Company and any parent or
subsidiary  of  the  Company)  may not exceed the maximum amount permitted under
Section  422  of the Code (currently, $100,000.00).  Non-statutory stock options
shall  not  be  subject  to  the limitations relating to incentive stock options
contained  in the preceding sentence.  Each Stock Option shall be evidenced by a
written  agreement (the "Option Agreement") in a form approved by the Committee,
which shall be executed on behalf of the Company and by the Employee to whom the
Stock  Option is granted, and which shall be subject to the terms and conditions
of  this  Plan.  In  the  discretion of the Committee, Stock Options may include
provisions  (which  need  not  be  uniform),  authorized by the Committee in its
discretion,  that  accelerate  an  Employee's  rights  to exercise Stock Options
following  a  "Change in Control," upon termination of the Employee's employment
by  the  Company  without  "Cause" or by the Employee for "Good Reason," as such
terms  are  defined in Paragraph 3.1 hereof.  The holder of a Stock Option shall
not  be  entitled  to  the privileges of stock ownership as to any shares of the
Common  Stock  not  actually  issued  to  such  holder.

     2.2     Purchase  Price.  The  purchase  price  (the  "Exercise  Price") of
             ---------------
shares  of  the  Common Stock subject to each Stock Option (the "Option Shares")
shall  not  be less than 85 percent of the Fair Market Value of the Common Stock
on the date of exercise.  For an Employee holding greater than 10 percent of the
total  voting power of all stock of the Company, either Common or Preferred, the
Exercise Price of an incentive stock option shall be at least 110 percent of the
Fair  Market  Value  of the Common Stock on the date of the grant of the option.
As  used  herein,  "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.

     2.3     Option Period.  The Stock Option period (the "Term") shall commence
             -------------
on  the  date of grant of the Stock Option and shall be 10 years or such shorter
period  as is determined by the Committee.  Each Stock Option shall provide that
it  is  exercisable over its term in such periodic installments as the Committee
may  determine,  subject to the provisions of Paragraph 2.4.1.  Section 16(b) of
the  Securities  Exchange  Act  of 1934, as amended (the "Exchange Act") exempts
persons  normally  subject to the reporting requirements of Section 16(a) of the
Exchange  Act  (the  "Section  16  Reporting  Persons")  pursuant to a qualified
employee  stock  option plan from the normal requirement of not selling until at
least  six  months  and  one  day  from  the  date  the Stock Option is granted.

                                        2
<PAGE>
     2.4     Exercise  of  Options.
             ---------------------

     2.4.1     Each  Stock  Option may be exercised in whole or in part (but not
as  to  fractional  shares) by delivering it for surrender or endorsement to the
Company,  attention  of  the Corporate Secretary, at the principal office of the
Company,  together with payment of the Exercise Price and an executed Notice and
Agreement of Exercise in the form prescribed by Paragraph 2.4.2.  Payment may be
made  (a)  in  cash,  (b)  by  cashier's or certified check, (c) by surrender of
previously owned shares of the Common Stock valued pursuant to Paragraph 2.2 (if
the Committee authorizes payment in stock in its discretion), (d) by withholding
from  the  Option  Shares which would otherwise be issuable upon the exercise of
the Stock Option that number of Option Shares equal to the exercise price of the
Stock  Option,  if  such  withholding  is  authorized  by  the  Committee in its
discretion,  or  (e)  in the discretion of the Committee, by the delivery to the
Company  of the optionee's promissory note secured by the Option Shares, bearing
interest  at  a  rate  sufficient  to  prevent  the imputation of interest under
Sections  483 or 1274 of the Code, and having such other terms and conditions as
may  be  satisfactory  to  the  Committee.  Subject  to  the  provisions of this
Paragraph  2.4  and Paragraph 2.5, the Employee has the right to exercise his or
her  Stock  Options  at the rate of at least 20 percent per year over five years
from  the  date  the  Stock  Option  is  granted.

     2.4.2     Exercise  of  each Stock Option is conditioned upon the agreement
of  the  Employee  to  the  terms  and conditions of this Plan and of such Stock
Option  as  evidenced  by  the Employee's execution and delivery of a Notice and
Agreement  of  Exercise  in  a  form  to  be  determined by the Committee in its
discretion.  Such Notice and Agreement of Exercise shall set forth the agreement
of  the Employee that (a) no Option Shares will be sold or otherwise distributed
in violation of the Securities Act of 1933, as amended (the "Securities Act") or
any  other  applicable  federal  or state securities laws, (b) each Option Share
certificate  may be imprinted with legends reflecting any applicable federal and
state  securities  law  restrictions  and conditions, (c) the Company may comply
with  said securities law restrictions and issue "stop transfer" instructions to
its  Transfer  Agent  and  Registrar without liability, (d) if the Employee is a
Section  16 Reporting Person, the Employee will furnish to the Company a copy of
each  Form  4  or Form 5 filed by said Employee and will timely file all reports
required  under  federal  securities  laws, and (e) the Employee will report all
sales  of  Option  Shares  to the Company in writing on a form prescribed by the
Company.

     2.4.3     No  Stock  Option  shall  be  exercisable  unless  and  until any
applicable  registration  or  qualification  requirements  of  federal and state
securities  laws,  and  all  other  legal requirements, have been fully complied
with.  At no time shall the total number of securities issuable upon exercise of
all  outstanding  options  under  this  Plan, and the total number of securities
provided  for under any bonus or similar plan or agreement of the Company exceed
a  number  of  securities  which  is equal to 30 percent of the then outstanding
securities  of  the  Company,  unless  a  percentage  higher  than 30 percent is
approved  by at least two-thirds of the outstanding securities entitled to vote.
The  Company  will  use  reasonable  efforts  to maintain the effectiveness of a
Registration  Statement  under  the  Securities  Act  for  the issuance of Stock
Options  and  shares  acquired  thereunder,  but there may be times when no such
Registration  Statement  will  be  currently  effective.  The  exercise of Stock
Options  may  be  temporarily  suspended without liability to the Company during
times  when  no  such  Registration  Statement is currently effective, or during
times  when,  in  the  reasonable  opinion  of the Committee, such suspension is
necessary  to  preclude  violation  of  any  requirements  of  applicable law or
regulatory  bodies  having  jurisdiction  over the Company.  If any Stock Option
would expire for any reason except the end of its term during such a suspension,
then  if  exercise  of such Stock Option is duly tendered before its expiration,
such  Stock  Option  shall  be  exercisable  and exercised (unless the attempted
exercise  is  withdrawn)  as  of the first day after the end of such suspension.
The Company shall have no obligation to file any Registration Statement covering
resales  of  Option  Shares.

     2.5     Continuous  Employment.  Except as provided in Paragraph 2.7 below,
             ----------------------
an Employee may not exercise a Stock Option unless from the date of grant to the
date of exercise the Employee remains continuously in the employ of the Company.
For  purposes  of  this Paragraph 2.5, the period of continuous employment of an
Employee with the Company shall be deemed to include (without extending the term
of the Stock Option) any period during which the Employee is on leave of absence
with  the  consent of the Company, provided that such leave of absence shall not
exceed  three  months and that the Employee returns to the employ of the Company
at  the expiration of such leave of absence.  If the Employee fails to return to
the  employ  of  the  Company  at  the  expiration of such leave of absence, the
Employee's employment with the Company shall be deemed terminated as of the date
such  leave of absence commenced.  The continuous employment of an Employee with
the Company shall also be deemed to include any period during which the Employee
is  a  member  of  the  Armed  Forces  of  the  United  States,

                                        3
<PAGE>
provided  that  the Employee returns to the employ of the Company within 90 days
(or  such  longer period as may be prescribed by law) from the date the Employee
first becomes entitled to a discharge from military service. If an Employee does
not return to the employ of the Company within 90 days (or such longer period as
may be prescribed by law) from the date the Employee first becomes entitled to a
discharge  from  military  service,  the  Employee's employment with the Company
shall  be  deemed  to  have  terminated  as  of the date the Employee's military
service  ended.

     2.6     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.

     2.7     Termination  of  Employment.
             ---------------------------

     2.7.1     Upon  an  Employee's  Retirement,  Disability  (both  terms being
defined  below)  or  death,  (a)  all Stock Options to the extent then presently
exercisable  shall remain in full force and effect and may be exercised pursuant
to  the  provisions thereof, and (b) unless otherwise provided by the Committee,
all  Stock  Options to the extent not then presently exercisable by the Employee
shall  terminate  as of the date of such termination of employment and shall not
be  exercisable  thereafter.  Unless  employment  is  terminated  for  cause, as
defined  by applicable law, the right to exercise in the event of termination of
employment,  to the extent that the optionee is entitled to exercise on the date
the  employment  terminates  as  follows:

          (i)     At  least  six  months  from  the  date  of  termination  if
termination  was  caused  by  death  or  disability.

          (ii)     At  least 30 days from the date of termination if termination
was  caused  by  other  than  death  or  disability.

     2.7.2     Upon  the  termination  of  the employment of an Employee for any
reason other than those specifically set forth in Paragraph 2.7.1, (a) all Stock
Options  to  the  extent then presently exercisable by the Employee shall remain
exercisable  only  for a period of 90 days after the date of such termination of
employment  (except that the 90 day period shall be extended to 12 months if the
Employee  shall die during such 90 day period), and may be exercised pursuant to
the  provisions  thereof,  including  expiration  at  the  end of the fixed term
thereof,  and  (b) unless otherwise provided by the Committee, all Stock Options
to  the extent not then presently exercisable by the Employee shall terminate as
of  the  date  of  such  termination  of employment and shall not be exercisable
thereafter.

     2.7.3     For  purposes  of  this  Plan:

          (a)     "Retirement"  shall  mean  an  Employee's  retirement from the
employ of the Company on or after the date on which the Employee attains the age
of  65  years;  and

          (b)     "Disability"  shall  mean total and permanent incapacity of an
Employee, due to physical impairment or legally established mental incompetence,
to perform the usual duties of the Employee's employment with the Company, which
disability  shall  be determined (i) on medical evidence by a licensed physician
designated  by  the  Committee, or (ii) on evidence that the Employee has become
entitled  to  receive  primary  benefits as a disabled employee under the Social
Security  Act  in  effect  on  the  date  of  such  disability.

     3.     Provisions  Relating  to  Awards.
            --------------------------------

     3.1     Grant  of  Awards.  Subject  to  the  provisions  of this Plan, the
             -----------------
Committee shall have full and complete authority, in its discretion, but subject
to  the  express  provisions  of this Plan, to (1) grant Awards pursuant to this
Plan,  (2)  determine  the  number of shares of the Common Stock subject to each
Award  (the  "Award Shares"), (3) determine the terms and conditions (which need
not  be  identical)  of  each  Award,  including  the  consideration  (if

                                        4
<PAGE>
any)  to  be  paid  by the Employee for such the Common Stock, which may, in the
Committee's  discretion,  consist  of  the delivery of the Employee's promissory
note  meeting  the  requirements  of  Paragraph  2.4.1, (4) establish and modify
performance  criteria  for  Awards,  and  (5)  make  all  of  the determinations
necessary  or advisable with respect to Awards under this Plan. Each Award under
this  Plan  shall  consist of a grant of shares of the Common Stock subject to a
restriction  period (after which the restrictions shall lapse), which shall be a
period  commencing  on  the date the Award is granted and ending on such date as
the  Committee  shall  determine  (the  "Restriction Period"). The Committee may
provide  for  the lapse of restrictions in installments, for acceleration of the
lapse  of  restrictions  upon  the  satisfaction  of  such  performance or other
criteria or upon the occurrence of such events as the Committee shall determine,
and for the early expiration of the Restriction Period upon an Employee's death,
Disability  or  Retirement as defined in Paragraph 2.7.3, or, following a Change
of  Control, upon termination of an Employee's employment by the Company without
"Cause" or by the Employee for "Good Reason," as those terms are defined herein.
For  purposes  of  this  Plan:

     "Change  of  Control"  shall be deemed to occur (a) on the date the Company
first  has  actual  knowledge  that any person (as such term is used in Sections
13(d)  and  14(d)(2)  of  the  Exchange Act) has become the beneficial owner (as
defined  in  Rule  13(d)-3  under  the Exchange Act), directly or indirectly, of
securities of the Company representing 40 percent or more of the combined voting
power  of  the  Company's  then  outstanding  securities, or (b) on the date the
stockholders of the Company approve (i) a merger of the Company with or into any
other  corporation  in  which the Company is not the surviving corporation or in
which  the  Company  survives  as  a  subsidiary  of another corporation, (ii) a
consolidation  of  the  Company with any other corporation, or (iii) the sale or
disposition  of  all  or  substantially all of the Company's assets or a plan of
complete  liquidation.

     "Cause,"  when  used  with reference to termination of the employment of an
Employee  by  the  Company  for  "Cause,"  shall  mean:

               (a)     The  Employee's continuing willful and material breach of
his duties to the Company after he receives a demand from the Chief Executive of
the  Company  specifying  the  manner  in  which he has willfully and materially
breached  such  duties, other than any such failure resulting from Disability of
the Employee or his resignation for "Good Reason," as defined herein; or

               (b)     The  conviction  of  the  Employee  of  a  felony;  or

               (c)     The  Employee's  commission of fraud in the course of his
employment  with  the  Company,  such  as  embezzlement  or  other  material and
intentional  violation  of  law  against  the  Company;  or

               (d)     The  Employee's gross misconduct causing material harm to
the  Company.

     "Good  Reason"  shall  mean  any  one  or  more of the following, occurring
following  or in connection with a Change of Control and within 90 days prior to
the  Employee's resignation, unless the Employee shall have consented thereto in
writing:

               (a)     The  assignment  to  the  Employee of duties inconsistent
with his executive status prior to the Change of Control or a substantive change
in  the  officer  or officers to whom he reports from the officer or officers to
whom  he  reported  immediately  prior  to  the  Change  of  Control;  or

               (b)     The  elimination  or  reassignment  of  a majority of the
duties and responsibilities that were assigned to the Employee immediately prior
to  the  Change  of  Control;  or

               (c)     A  reduction by the Company in the Employee's annual base
salary as in effect immediately prior to the Change of Control; or

               (d)     The  Company  requiring the Employee to be based anywhere
outside  a  35-mile radius from his place of employment immediately prior to the
Change  of  Control,  except for required travel on the Company's business to an
extent  substantially consistent with the Employee's business travel obligations
immediately  prior  to  the  Change  of  Control;  or

                                        5
<PAGE>
               (e)     The  failure  of  the  Company  to  grant  the Employee a
performance  bonus  reasonably  equivalent  to the same percentage of salary the
Employee  normally  received  prior  to  the Change of Control, given comparable
performance  by  the  Company  and  the  Employee;  or

               (f)     The  failure  of  the  Company  to  obtain a satisfactory
Assumption  Agreement  (as  defined  in  Paragraph  4.13  of  this  Plan) from a
successor,  or  the  failure  of  such  successor  to  perform  such  Assumption
Agreement.

     3.2     Incentive  Agreements.  Each Award granted under this Plan shall be
             ---------------------
evidenced  by  a written agreement (an "Incentive Agreement") in a form approved
by  the Committee and executed by the Company and the Employee to whom the Award
is  granted.  Each  Incentive  Agreement  shall  be  subject  to  the  terms and
conditions of this Plan and other such terms and conditions as the Committee may
specify.

     3.3     Amendment,  Modification and Waiver of Restrictions.  The Committee
             ---------------------------------------------------
may  modify  or  amend  any  Award  under this Plan or waive any restrictions or
conditions  applicable  to  the Award; provided, however, that the Committee may
not  undertake  any  such  modifications,  amendments  or  waivers if the effect
thereof  materially increases the benefits to any Employee, or adversely affects
the  rights  of  any  Employee  without  his  consent.

     3.4     Terms and Conditions of Awards.  Upon receipt of an Award of shares
             ------------------------------
of  the  Common  Stock  under  this Plan, even during the Restriction Period, an
Employee  shall  be  the  holder  of record of the shares and shall have all the
rights  of  a  stockholder with respect to such shares, subject to the terms and
conditions  of  this  Plan  and  the  Award.

     3.4.1     Except  as otherwise provided in this Paragraph 3.4, no shares of
the  Common  Stock  received  pursuant  to  this  Plan shall be sold, exchanged,
transferred,  pledged,  hypothecated  or  otherwise  disposed  of  during  the
Restriction Period applicable to such shares.  Any purported disposition of such
the  Common  Stock  in  violation  of this Paragraph 3.4 shall be null and void.

     3.4.2     If  an Employee's employment with the Company terminates prior to
the expiration of the Restriction Period for an Award, subject to any provisions
of  the Award with respect to the Employee's death, Disability or Retirement, or
Change  of Control, all shares of the Common Stock subject to the Award shall be
immediately  forfeited  by  the  Employee and reacquired by the Company, and the
Employee  shall  have  no  further  rights  with  respect  to the Award.  In the
discretion  of  the Committee, an Incentive Agreement may provide that, upon the
forfeiture  by  an  Employee  of  Award  Shares,  the Company shall repay to the
Employee the consideration (if any) which the Employee paid for the Award Shares
on  the  grant  of  the Award.  In the discretion of the Committee, an Incentive
Agreement  may also provide that such repayment shall include an interest factor
on  such  consideration  from  the date of the grant of the Award to the date of
such  repayment.

     3.4.3     The  Committee  may require under such terms and conditions as it
deems  appropriate  or  desirable that (a) the certificates for the Common Stock
delivered  under  this Plan are to be held in custody by the Company or a person
or  institution  designated by the Company until the Restriction Period expires,
(b)  such  certificates shall bear a legend referring to the restrictions on the
Common Stock pursuant to this Plan, and (c) the Employee shall have delivered to
the  Company  a  stock  power  endorsed  in  blank relating to the Common Stock.

     4.     Miscellaneous  Provisions.
            -------------------------

     4.1     Adjustments  Upon  Change  in  Capitalization.
             ---------------------------------------------

     4.1.1     The  number and class of shares subject to each outstanding Stock
Option, the Exercise Price thereof (but not the total price), the maximum number
of  Stock  Options  that  may  be granted under this Plan, the minimum number of
shares  as  to  which  a  Stock Option may be exercised at any one time, and the
number  and  class  of  shares  subject  to  each  outstanding  Award,  shall be
proportionately  adjusted in the event of any increase or decrease in the number
of  the  issued  shares  of  the  Common  Stock which results from a split-up or
consolidation  of  shares,  payment of a stock dividend or dividends exceeding a
total of five percent for which the record dates occur in any one fiscal year, a
recapitalization  (other than the conversion of convertible securities according
to  their

                                        6
<PAGE>
terms),  a  combination  of shares or other like capital adjustment, so that (a)
upon  exercise  of  the  Stock Option, the Employee shall receive the number and
class  of  shares  the  Employee  would  have received had the Employee been the
holder of the number of shares of the Common Stock for which the Stock Option is
being  exercised  upon  the  date  of such change or increase or decrease in the
number  of  issued shares of the Company, and (b) upon the lapse of restrictions
of  the  Award Shares, the Employee shall receive the number and class of shares
the  Employee  would  have  received if the restrictions on the Award Shares had
lapsed  on  the  date  of  such  change or increase or decrease in the number of
issued  shares  of  the  Company.

     4.1.2     Upon  a  reorganization,  merger  or consolidation of the Company
with  one  or  more  corporations  as  a  result of which the Company is not the
surviving  corporation  or  in  which  the  Company  survives  as a wholly-owned
subsidiary of another corporation, or upon a sale of all or substantially all of
the  property  of  the  Company  to  another  corporation,  or  any  dividend or
distribution  to  stockholders  of more than 10 percent of the Company's assets,
adequate  adjustment  or  other provisions shall be made by the Company or other
party  to  such transaction so that there shall remain and/or be substituted for
the  Option  Shares and Award Shares provided for herein, the shares, securities
or assets which would have been issuable or payable in respect of or in exchange
for  such  Option Shares and Award Shares then remaining, as if the Employee had
been  the  owner  of  such  shares as of the applicable date.  Any securities so
substituted  shall  be  subject  to  similar  successive  adjustments.

     4.2     Withholding Taxes.  The Company shall have the right at the time of
             -----------------
exercise  of  any  Stock  Option,  the  grant  of  an  Award,  or  the  lapse of
restrictions on Award Shares, to make adequate provision for any federal, state,
local  or  foreign  taxes  which it believes are or may be required by law to be
withheld  with  respect  to  such  exercise (the "Tax Liability"), to ensure the
payment  of  any such Tax Liability.  The Company may provide for the payment of
any  Tax Liability by any of the following means or a combination of such means,
as  determined  by  the  Committee  in  its  sole and absolute discretion in the
particular  case  (1)  by requiring the Employee to tender a cash payment to the
Company,  (2) by withholding from the Employee's salary, (3) by withholding from
the  Option  Shares which would otherwise be issuable upon exercise of the Stock
Option,  or  from  the  Award  Shares  on  their  grant  or  date  of  lapse  of
restrictions,  that  number of Option Shares or Award Shares having an aggregate
Fair  Market  Value (determined in the manner prescribed by Paragraph 2.2) as of
the  date  the  withholding tax obligation arises in an amount which is equal to
the  Employee's  Tax  Liability or (4) by any other method deemed appropriate by
the  Committee.  Satisfaction  of  the  Tax  Liability of a Section 16 Reporting
Person  may  be made by the method of payment specified in clause (3) above only
if  the  following  two  conditions  are  satisfied:

               (a)     The  withholding of Option Shares or Award Shares and the
exercise  of  the  related  Stock  Option  occur at least six months and one day
following  the  date  of  grant  of  such  Stock  Option  or  Award;  and

               (b)     The  withholding of Option Shares or Award Shares is made
either (i) pursuant to an irrevocable election (the "Withholding Election") made
by  the  Employee  at  least six months in advance of the withholding of Options
Shares  or  Award  Shares,  or  (ii)  on  a  day within a 10-day "window period"
beginning  on  the  third  business  day  following  the  date of release of the
Company's  quarterly  or  annual  summary  statement  of  sales  and  earnings.

     Anything herein to the contrary notwithstanding, a Withholding Election may
be  disapproved  by  the  Committee  at  any  time.

     4.3     Relationship  to  Other  Employee Benefit Plans.  Stock Options and
             -----------------------------------------------
Awards  granted hereunder shall not be deemed to be salary or other compensation
to  any  Employee  for  purposes  of  any pension, thrift, profit-sharing, stock
purchase  or any other employee benefit plan now maintained or hereafter adopted
by  the  Company.

     4.4     Amendments and Termination.  The Board of Directors may at any time
             --------------------------
suspend,  amend  or  terminate  this  Plan.  No amendment, except as provided in
Paragraph  3.3,  or  modification of this Plan may be adopted, except subject to
stockholder  approval, which would (1) materially increase the benefits accruing
to  the  Employees  under  this  Plan,  (2)  materially  increase  the number of
securities  which may be issued under this Plan (except for adjustments pursuant
to  Paragraph  4.1  hereof),  or  (3)  materially  modify the requirements as to
eligibility  for  participation  in  this  Plan.

                                        7
<PAGE>
     4.5     Successors  in  Interest.  The  provisions  of  this  Plan  and the
             ------------------------
actions of the Committee shall be binding upon all heirs, successors and assigns
of  the  Company  and  of  the  Employees.

     4.6     Other  Documents.  All documents prepared, executed or delivered in
             ----------------
connection  with this Plan (including, without limitation, Option Agreements and
Incentive  Agreements)  shall  be,  in  substance  and  form, as established and
modified  by  the Committee; provided, however, that all such documents shall be
subject in every respect to the provisions of this Plan, and in the event of any
conflict between the terms of any such document and this Plan, the provisions of
this  Plan  shall  prevail.

     4.7     Fairness  of  the  Repurchase Price.  In the event that the Company
             -----------------------------------
repurchases  securities  upon  termination  of employment pursuant to this Plan,
either:  (a)  the  price  will  not  be  less  than the fair market value of the
securities  to  be repurchased on the date of termination of employment, and the
right to repurchase will be exercised for cash or cancellation of purchase money
indebtedness  for the securities within 90 days of termination of the employment
(or  in the case of securities issued upon exercise of options after the date of
termination,  within  90  days  after  the  date of the exercise), and the right
terminates  when the Company's securities become publicly traded, or (b) Company
will  repurchase  securities  at  the original purchase price, provided that the
right  to  repurchase  at  the  original purchase price lapses at the rate of at
least  20  percent  of the securities per year over five years from the date the
option  is  granted  (without  respect  to  the date the option was exercised or
became  exercisable)  and  the right to repurchase must be exercised for cash or
cancellation of purchase money indebtedness for the securities within 90 days of
termination  of  employment  (or  in  case of securities issued upon exercise of
options  after  the  date  of  termination, within 90 days after the date of the
exercise).

     4.8     No  Obligation  to  Continue  Employment.  This Plan and the grants
             ----------------------------------------
which  might be made hereunder shall not impose any obligation on the Company to
continue  to  employ  any  Employee.  Moreover, no provision of this Plan or any
document executed or delivered pursuant to this Plan shall be deemed modified in
any  way  by any employment contract between an Employee (or other employee) and
the  Company.

     4.9     Misconduct  of an Employee.  Notwithstanding any other provision of
             --------------------------
this  Plan,  if  an  Employee  commits fraud or dishonesty toward the Company or
wrongfully  uses  or  discloses  any  trade  secret,  confidential data or other
information  proprietary to the Company, or intentionally takes any other action
which  results  in material harm to the Company, as determined by the Committee,
in  its  sole and absolute discretion, the Employee shall forfeit all rights and
benefits  under  this  Plan.

     4.10     Term  of  Plan.  No  Stock  Option  shall be exercisable, or Award
              --------------
granted,  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  January  29,  2004.  No Stock Options or Awards may be granted
under  this  Plan  after  January  29,  2014.

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

     4.12     Approval.  This  Plan  must  be  approved  by  a  majority  of the
              --------
outstanding  securities  entitled  to vote within 12 months before or after this
Plan  is  adopted  or  the  date  the agreement is entered into.  Any securities
purchased  before  security  holder  approval  is  obtained must be rescinded if
security  holder  approval is not obtained within 12 months before or after this
Plan  is  adopted  or  the  date the agreement is entered into.  Such securities
shall not be counted in determining whether such approval is obtained.

     4.13     Assumption  Agreements.  The  Company will require each successor,
              ----------------------
(direct  or  indirect, whether by purchase, merger, consolidation or otherwise),
to  all  or substantially all of the business or assets of the Company, prior to
the  consummation  of  each such transaction, to assume and agree to perform the
terms  and  provisions  remaining  to  be  performed  by  the Company under each
Incentive  Agreement  and  Stock  Option  and  to  preserve  the benefits to the
Employees  thereunder.  Such  assumption  and  agreement shall be set forth in a
written  agreement  in  form  and  substance  satisfactory  to the Committee (an
"Assumption  Agreement"),  and  shall  include  such adjustments, if any, in the
application  of the provisions of the Incentive Agreements and Stock Options and
such  additional provisions, if any, as the Committee shall require and approve,
in  order  to  preserve  such  benefits  to the

                                        8
<PAGE>
Employees.  Without  limiting the generality of the foregoing, the Committee may
require  an  Assumption  Agreement  to  include  satisfactory  undertakings by a
successor:

               (a)     To  provide  liquidity to the Employees at the end of the
Restriction  Period  applicable  to  the Common Stock awarded to them under this
Plan,  or  on  the  exercise  of  Stock  Options;

               (b)     If  the  succession  occurs  before the expiration of any
period  specified  in  the  Incentive Agreements for satisfaction of performance
criteria  applicable  to  the  Common  Stock awarded thereunder, to refrain from
interfering  with  the Company's ability to satisfy such performance criteria or
to  agree  to  modify  such  performance criteria and/or waive any criteria that
cannot  be  satisfied  as  a  result  of  the  succession;

               (c)     To  require  any  future  successor  to  enter  into  an
Assumption  Agreement;  and

               (d)     To  take or refrain from taking such other actions as the
Committee may require and approve, in its discretion.

     4.14     Compliance  with  Rule  16b-3.  Transactions  under  this Plan are
              -----------------------------
intended  to  comply  with  all  applicable conditions of Rule 16b-3 promulgated
under the Exchange Act.  To the extent that any provision of this Plan or action
by  the  Committee  fails to so comply, it shall be deemed null and void, to the
extent  permitted  by  law  and  deemed  advisable  by  the  Committee.

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

     IN WITNESS WHEREOF, this Plan has been executed effective as of January 29,
2004.
                           LIVESTAR ENTERTAINMENT GROUP, INC.

                           By  /s/ Raymond Hawkins
                             --------------------------------------------
                             Raymond Hawkins, Chief Executive Officer

                                        9
<PAGE>

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