Document:

exv10wxay

 

Exhibit 10(a)

Cerner Corporation

Enhanced Severance Pay Plan

and

Summary Plan Description

Introduction

Cerner Corporation (“Cerner”) values the contributions of its associates and
takes measures to create and maintain a productive and fulfilling work
environment. However, we recognize that business needs, an associate’s work
performance or other reasons may require separation of employment. At any
point during an associate’s employment, Cerner may choose to discontinue the
employment relationship.

Because employment with Cerner is at-will, Cerner has no obligation to
compensate any associate upon separation from his or her employment other than
as may be provided in that associate’s Cerner Associate Employment Agreement.
However, Cerner values its associates and is interested in helping to mitigate
the financial hardship caused by business conditions necessitating a
termination. For this reason, enhanced severance benefits may at Cerner’s sole
and absolute discretion, be offered to associates on the terms and conditions
set forth below. The benefits described herein may be offered solely at the
discretion of Cerner and may be rescinded, and/or altered at any time, without
prior notice. In addition, this Plan is only intended to be a guideline; the
Company may elect, for any reason or for no reason, not to follow the guideline
for any particular termination or class or series of terminations.

Cerner has adopted this Enhanced Severance Pay Plan (“Plan”) to provide
guidelines for Enhanced Severance Pay to Eligible Associates.

	1.	 	Eligibility

	 	1.1.	 	Eligible Associates. Only Eligible Associates may be
participants and paid severance benefits under this Plan. An
Eligible Associate is an associate who meets the following criteria:
(a) is a permanent, full-time salaried associate on the U.S. payroll
of Cerner, as determined by Cerner’s employment records; (b) who has
executed a Cerner Associate Employment Agreement; (c) whose
employment is involuntarily terminated after May 12, 2003 due to a
Covered Reason; (d) has agreed to and executed a Severance and
Release Agreement agreed to and drafted by Cerner that provides for
a complete release of all present and future claims; (e) has and
continues to comply with his/her Cerner Associate Employment
Agreement; and (f) meets all other requirements of this Plan.
	 
	 	1.2.	 	Ineligible Associates. All Ineligible Associates may not
receive severance benefits pursuant to and are not participants in
this Plan. An Ineligible Associate is any associate that does not
meet the criteria set forth in Section 1.1 above for an Eligible
Associate. Ineligible Associates include, but are not limited to,
part-time associates, interns, and independent contractors.

 

 

	 	1.3.	 	Covered Reason. Severance Pay may be paid under this Plan
only for a Covered Reason. A Covered Reason is the involuntary
termination of an Eligible Associate’s employment with Cerner due to
reorganization, restructuring, unsatisfactory work performance, or
for other reasons as determined by the Plan Administrator in its
sole discretion. Severance Pay will not be paid under this Plan if
the Plan Administrator, in its sole discretion, determines that an
Eligible Associate’s employment was terminated for any other reason,
including without limitation the following:

	 	(a)	 	Death;
	 
	 	(b)	 	Long Term Disability;
	 
	 	(c)	 	Voluntary resignation (even if the Eligible
Associate felt compelled to resign);
	 
	 	(d)	 	Retirement;
	 
	 	(e)	 	Failure of the Eligible Associate to return to
work after an approved leave of absence;
	 
	 	(f)	 	Discharge for any other reason (including
absenteeism, misconduct, insubordination, violation of Cerner
rules or policies, dishonesty, deliberate unsatisfactory
performance, etc.);
	 
	 	(g)	 	Entering military duty;
	 
	 	(h)	 	Refusal or declined to transfer to an equivalent
position that does not require relocation.

	 	1.4.	 	Changed Decisions. Cerner has the right to cancel or
reschedule the effective date of an Eligible Associate’s employment
termination. An Eligible Associate will not be eligible for any
Severance Pay under this Plan if the Eligible Associate’s employment
termination is canceled by Cerner, or if the Eligible Associate is
offered an opportunity to return to work or is reinstated.
	 
	 	1.5.	 	Assistance with Transition. An Eligible Associate will not
be entitled to Severance Pay under this Plan unless the Eligible
Associate satisfies all transition assistance requests of Cerner, to
Cerner’s satisfaction, such as aiding in the location of files and
documents, returning all Cerner property, and repaying any amounts
owed Cerner.

	2.	 	Severance Pay

	 	2.1.	 	Formula. Severance Pay will be paid to an Eligible Associate
who has executed a Severance and Release Agreement drafted by Cerner
under this Plan based on the Eligible Associate’s Role with Cerner
and Years of Service, in accordance with the following schedule, and
as determined by the Plan Administrator:

	 	 	 	 	 
	Role With Cerner	 	
Vice President
	 	10 Weeks
	 	 	
Director
	 	6 Weeks
	 	 	
Manager (Level 2 or 3)
	 	4 Weeks
	 	 	
All Other Roles
	 	2 Weeks
	Years of Service with	 	
15 or more years
	 	6 Weeks
	Cerner	 	
11 – 14 years
	 	5 Weeks
	 	 	
5 – 10 years
	 	4 Weeks

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3 – 4 years
	 	3 Weeks
	 	 	
1 – 2 years
	 	2 Weeks

	 	 	 	Example: An Eligible Associate whose current role with Cerner is
as a Manager and who has 10 years of Service with Cerner would be
eligible for a total of 8 weeks of Severance Pay (4 weeks for the
Role and 4 weeks for Years of Service).
	 
	 	2.2.	 	Years of Service. Years of Service means a period of twelve
(12) consecutive months commencing with the day of initial
employment of an Eligible Associate with Cerner and ending with the
day preceding the anniversary of such date in the next and all
succeeding years. No partial Years of Service shall be credited
under this Plan nor will Prorated Severance Pay be paid for any
fractional Year of Service.
	 
	 	2.3.	 	Week of Severance Pay. A Week of Severance Pay is the
Eligible Associate’s regular weekly base rate of pay, excluding any
overtime, bonuses, commissions, premium pay, benefits, expense
reimbursements, etc. Example: A Week of Severance Pay for an
Eligible Associate whose annual base salary (excluding the pay and
benefits listed above) is $52,000 would be $1,000, less appropriate
deductions.
	 
	 	2.4.	 	Offsets. The amount of any Severance Pay paid under this
Plan is in lieu of, and not in addition to, any other severance an
Eligible Associate may otherwise be entitled to receive from Cerner,
including under a Cerner Associate Employment Agreement or other
document. This provision, however, shall not preclude an otherwise
Eligible Associate from receiving any payments under a Cerner
Performance Plan (CPP) or any pay for accrued vacation under
Cerner’s separate CPP or vacation policy, as may be amended from
time-to-time. CPP and pay for accrued vacation, if any, shall be
paid pursuant to the terms of those separate plans or policies.
	 
	 	2.5.	 	Form of Payment. Severance Pay paid under this Plan will be
paid in a lump sum or, if the Plan Administrator elects, as salary
continuation (without interest) on regularly scheduled paydays of
Cerner for the applicable period or some other method. Severance
Pay will be subject to applicable taxes and withholdings.

	3.	 	Relation to Other Benefits and Pay

	 	3.1.	 	COBRA. Associates and their dependents covered under one or
more of Cerner’s group health plans may be eligible to continuation
coverage pursuant to the federal COBRA law. This Plan does not
provide associates or their dependents with any greater right to
continuation coverage than what the federal COBRA law requires.
	 
	 	3.2.	 	Other Benefit Plans. Eligibility, coverage and benefits
under other Cerner benefit plans (e.g., any group life, disability,
accidental death, retirement, stock plans, etc.) are governed by the
terms of those respective plans. This Plan does not provide
associates or their beneficiaries and dependents with any greater
eligibility, coverage or benefits than what such plans provide.

3

 

	 	3.3.	 	Integration with Other Payments. Severance Pay paid under
this Plan is not intended to duplicate benefits such as pay-in-lieu
of notice, severance pay, workers compensation wage replacement,
disability pay, or similar benefits or pay under other benefit
plans, severance programs, employment agreements, or applicable
laws, such as the WARN Act. Subject to paragraphs 2.4 and 2.5 of
this Plan, in the event such other pay or benefits is payable to an
Eligible Associate, Severance Pay under this Plan will be reduced
accordingly or, alternatively, pay or benefits previously paid under
this Plan will be treated as having been paid to satisfy other pay
or benefit obligations. In either case, the Plan Administrator, in
its sole discretion, will determine how to apply this provision and
may override other provisions in the Plan in doing so.
	 
	 	3.4.	 	Reemployment. If an Eligible Associate is reemployed by
Cerner while Severance Pay is still payable under the Plan, all such
Severance Pay will cease, except as otherwise specified by the Plan
Administrator, in its sole discretion.

	4.	 	Employment

	 	4.1.	 	No Modification. This Plan shall not modify any terms of a
Cerner Associate Employment Agreement, including but not limited to
the type of employment relationship, the associate’s obligations and
continuing obligations set forth therein.
	 
	 	4.2.	 	Limitation on Employee
Rights. This Plan shall not give any
associate the right to be retained in the service of Cerner or
interfere with or restrict the right of Cerner to terminate the
employment of any associate.

	5.	 	ERISA

	 	5.1.	 	Amendment or Termination. Cerner, acting through its chief
executive officer, has the right, in its nonfiduciary settlor
capacity, to amend the Plan or to terminate it at any time,
prospectively or retroactively, for any reason or no reason, without
notice, including discontinuing or eliminating benefits. Cerner
also shall decide disputes relative to the rights under the Plan
with respect to any and all parties. In deciding such disputes,
Cerner shall have full and complete discretionary authority to (i)
construe and interpret the provisions of the Plan and to determine
the right of any person to any interest in or eligibility for any
benefit under the Plan, and (ii) make any and all factual
determinations necessary to determine the right of any person to any
interest in or eligibility for any benefit under the Plan; and, no
person shall be entitled to any benefit or interest under this Plan
if Cerner decides in its discretion that there is no entitlement to
that benefit or interest. Decisions of Cerner shall be final,
binding and conclusive upon all parties.
	 
	 	5.2	 	Plan Administrator. The Plan is administered by Cerner,
which is the Plan Administrator under the Employee Retirement Income
Security Act of 1974 (“ERISA”). It is the responsibility of the
Plan Administrator to ensure that the Plan is administered in
accordance with its terms. It is also the responsibility of the
Plan Administrator to explain any rights and benefits that you may
have under

4

 

	 	 	 	the Plan and to answer any questions which you may have. The Plan
Administrator maintains all documents which comprise the Plan and
annual filings, if any, which are prepared for the Plan. If you
have any questions regarding the Plan, you should review these
available documents. The Plan Administrator has full and complete
discretionary authority to determine eligibility for benefits under
the Plan and to construe and interpret the terms of the Plan.
	 
	 	 	 	The Plan Administrator may, but is not required to, adopt rules and
regulations of uniform applicability in its interpretation and
implementation of the Plan. The Plan Administrator may require
each Eligible Associate to submit, in such form as it shall deem
reasonable and acceptable, proof of any information which the Plan
Administrator finds necessary or desirable for the proper
administration of the Plan.
	 
	 	 	 	The Plan Administrator shall maintain such records as are necessary
to carry out the provisions of the Plan. The Plan Administrator
shall also make all disclosures and file all reports which are
required by ERISA.
	 
	 	5.3.	 	Claims Review Procedure.

	 	 	 
	5.3.1.	 	
Initial Claim. If benefits under this Plan become due, the
Plan Administrator will notify you as to the amount of
benefits you are entitled to, the duration of such benefit,
the time the benefit is to commence and other pertinent
information concerning your benefit. If you have been denied a
benefit under the Plan, or if you feel that the benefit which
has been given to you is not accurate, you may file a claim
with the Plan Administrator. If a claim for benefit is denied
by the Plan Administrator, the Plan Administrator shall
provide you with written or electronic notification of any
adverse benefit determination within ninety (90) days after
receipt of the claim unless special circumstances require an
extension of time for processing the claim. If such an
extension of time for processing is required, written or
electronic notice indicating the special circumstances and the
date by which a final decision is expected to be rendered
shall be furnished to you. In no event shall the period of
extension exceed one hundred eighty (180) days after receipt
of the claim. The notice of denial of the claim shall set
forth:

	 	(a)	 	The specific reason or reasons for
the adverse determination;
	 
	 	(b)	 	Reference to the specific plan
provisions on which the determination is based;
	 
	 	(c)	 	A description of any additional
material or information necessary for you to perfect the
claim, and an explanation of why such material or
information is necessary; and
	 
	 	(d)	 	A description of the plan’s review
procedures and the time limits applicable to such
procedures, including a statement of your right

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	 	 	 	to bring a civil action under ERISA section 502(a)
following an adverse benefit determination on review.

	 	 	 
	 	 	
You (or your duly authorized representative) may review
pertinent documents and submit issues and comments in writing
to the Plan Administrator. If you fail to appeal such action
to the Plan Administrator in writing within the prescribed
period of time described in the next section, the Plan
Administrator’s adverse determination shall be final, binding
and conclusive.
	 	 	 
	5.3.2.	 	
Appeal. In the event of an adverse benefit determination,
you may appeal the adverse determination by giving written
notice to the Plan Administrator within 60 days after receipt
of the notice of adverse benefit determination. The Plan
Administrator may hold a hearing or otherwise ascertain such
facts as it deems necessary and shall render a decision which
shall be binding upon both parties. The appeal procedure
shall:

	 	 	 	 	 
	 	 	
(a)
	 	Provide you at least 60 days
following receipt of a notification of an adverse
benefit determination within which to appeal the
determination;
	 	 	 	 	 
	 	 	
(b)
	 	Provide you the opportunity to submit
written comments, documents, records, and other
information relating to the claim for benefits;
	 	 	 	 	 
	 	 	
(c)
	 	Provide that you shall be provided,
upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other
information relevant to your claim for benefits; and
	 	 	 	 	 
	 	 	
(d)
	 	Provide for a review that takes into
account all comments, documents, records, and other
information submitted by you relating to the claim,
without regard to whether such information was submitted
or considered in the initial benefit determination.

	 
	The decision of the Plan Administrator shall be made within
sixty (60) days after the receipt by the Plan Administrator
of the notice of appeal, unless special circumstances require
an extension of time for processing, in which case a decision
of Cerner shall be rendered as soon as possible but not later
than one hundred twenty (120) days after receipt of the
request for review. If such an extension of time is
required, written or electronic notice of the extension shall
be furnished to you prior to the commencement of the
extension. The decision of the Plan Administrator shall be
provided in written or electronic form to you and shall
include the following:

	 	 	 	 	 
	 	 	
(a)
	 	The specific reason or reasons for
the adverse determination;
	 	 	 	 	 
	 	 	
(b)
	 	Reference to the specific plan
provisions on which the benefit determination is based;

6

 

	 	 	 	 	 
	 	 	
(c)
	 	A statement that you are entitled to
receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and
other information relevant to your claim for benefits.
Whether a document, record, or other information is
relevant to a claim for benefits shall be determined by
reference to DOL regulation section 2560.503-1 (m)(8);
and
	 	 	 	 	 
	 	 	
(d)
	 	A statement describing any voluntary
appeal procedures offered by the plan and your right to
obtain the information about such procedures, and a
statement of your right to bring an action under ERISA
section 502(a).

	 	5.4.	 	Statement of ERISA Rights. The following statement is
required by federal statute. Certain portions of this statement may
not apply to your particular situation or to this Plan.
	 
	 	 	 	If your become a participant in the Cerner Corporation Enhanced
Severance Pay Plan you are entitled to certain rights and
protections under the Employee Retirement Income Security Act of
1974 (ERISA). ERISA provides that all plan participants shall be
entitled to:

	 	•	 	Examine, without charge, at the plan
administrator’s office and at other specified locations,
such as worksites and union halls, all plan documents,
including insurance contracts, collective bargaining
agreements and copies of all documents filed by the plan
with the U.S. Department of Labor, such as detailed
annual reports and plan descriptions.
	 
	 	•	 	Obtain copies of all plan documents
and other plan information upon written request to the
plan administrator. The administrator may make a
reasonable charge for the copies.
	 
	 	•	 	Receive a summary of the plan’s
annual financial report. The plan administrator is
required by law to furnish each participant with a copy
of this summary annual report.

	 	 	 	In addition to creating rights for plan participants, ERISA
imposes duties upon the people who are responsible for the
operation of the employee benefit plan. The people who
operate your plan, called “fiduciaries” of the plan, have a
duty to do so prudently and in the interest of you and other
plan participants and beneficiaries. No one, including your
employer, your union, or any other person, may fire you or
otherwise discriminate against you in any way to prevent you
from obtaining a welfare benefit or exercising your rights
under ERISA. If your claim for a welfare benefit is denied
in whole or in part you must receive a written explanation of
the reason for the denial. You have the right to have the
plan review and reconsider your claim. Under ERISA, there
are steps you can take to enforce the above rights. For
instance, if you request materials from the

7

 

	 	 	 	plan and do not receive them within 30 days, you may file
suit in a federal court. In such a case, the court may
require the plan administrator to provide the materials and
pay you up to $110 a day until you receive the materials,
unless the materials were not sent because of reasons beyond
the control of the administrator. If you have a claim for
benefits which is denied or ignored, in whole or in part, you
may file suit in a state or federal court. If it should
happen that plan fiduciaries misuse the plan’s money, or if
you are discriminated against for asserting your rights, you
may seek assistance from the U.S. Department of Labor, or you
may file suit in a federal court. The court will decide who
should pay court costs and legal fees. If you are successful
the court may order the person you have sued to pay these
costs and fees. If you lose, the court may order you to pay
these costs and fees, for example, if it finds your claim is
frivolous. If you have any questions about your plan, you
should contact the plan administrator. If you have any
questions about this statement or about your rights under
ERISA, you should contact the nearest office of the Pension
and Welfare Benefits Administration, U.S. Department of
Labor, listed in your telephone directory, or the Division of
Technical Assistance and Inquiries, Pension and Welfare
Benefits Administration, U.S. Department of Labor, 200
Constitution Avenue N.W., Washington, D.C. 20210.

	 	5.5.	 	General Information.

	 	 	 	 	 
	 	 	
(a)
	 	Plan Name and Type. The legal name of this Plan,
which is a welfare plan, is the Cerner Corporation Enhanced
Severance Pay Plan.
	 	 	 	 	 
	 	 	
(b)
	 	Name and Address of Plan Sponsor and Plan
Administrator. The name and address of the Plan Sponsor and
the Plan Administrator is:

	 
	Cerner Corporation
	2800 Rockcreek Parkway
	North Kansas City, MO 64117
	EIN: 43-1196944
	Telephone: (816) 201-1024

	 	 	 	 	 
	 	 	
(c)
	 	Type of Administration. The Plan is administered
by Cerner.
	 	 	 	 	 
	 	 	
(d)
	 	Plan Number. The Plan number is 513.
	 	 	 	 	 
	 	 	
(e)
	 	Plan Year. The Plan Year ends on December 31.
	 	 	 	 	 
	 	 	
(f)
	 	Agent For Service of Legal Process. Service of
legal process may be made upon the Plan Sponsor (which is also
the Plan Administrator) at the above address.
	 	 	 	 	 
	 	 	
(g)
	 	Plan Costs. Plan costs are paid by Cerner. The
Plan is funded out of Cerner’s general assets.

8

 

	 	 	 	 	 
	 	 	
(h)
	 	Insurance. Benefits provided by this Plan are
not insured by the Pension Benefit Guaranty Corporation under
Title IV of ERISA because the insurance provisions under ERISA
are not applicable to the Plan.

	 	5.6.	 	Governing Law. This Plan is a welfare plan subject to the
Employee Retirement Income Security Act of 1974 and it shall be
interpreted, administered, and enforced in accordance with that law.
To the extent that state law is applicable, the statutes and common
law of the State of Missouri, excluding any that mandate the use of
another jurisdiction’s laws, shall apply.

	6.	 	Miscellaneous.

	 	6.1.	 	Construction. Where the context so indicates, the singular
will include the plural and vice versa. Titles are provided herein
for convenience only and are not to serve as a basis for
interpretation or construction of the Plan. Unless the context
clearly indicates to the contrary, a reference to a statute or
document shall be construed as referring to any subsequently
enacted, adopted, or executed counterpart.

	 	 	 
	 	 	
CERNER CORPORATION
	 	 	 
	Date: May 12, 2003	 	

	 	 	
Stanley M. Sword
	 	 	
Senior Vice President
	 	 	
and Chief People Officer

9<PAGE>
                                                                   Exhibit 10.67

                              I N V I S A, I N C.

                              AMENDED AND RESTATED
                       REGULATION S SUBSCRIPTION AGREEMENT

                        AMERICAN STOCK EXCHANGE PLACEMENT

                        400,000 UNITS AT $2.00 PER UNIT.
             EACH UNIT CONSISTING OF 1 COMMON SHARE $0.001 PAR VALUE
    AND 1 WARRANT TO PURCHASE 1 COMMON SHARE AT $2.00 PER SHARE; 1 WARRANT TO
 PURCHASE 1 COMMON SHARE AT $3.00 PER SHARE; AND 1 WARRANT TO PURCHASE 1 COMMON
                  SHARE AT $4.00 PER SHARE UNTIL JUNE 30, 2005

         THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OR ANY STATE
BECAUSE THEY ARE BELIEVED TO BE EXEMPT FROM REGISTRATION UNDER REGULATION S
PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE"ACT"). THIS
SUBSCRIPTION AGREEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION
OF AN OFFER TO BUY THE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR
SOLICITATION WOULD BE UNLAWFUL, THE SECURITIES ARE "RESTRICTED" AND MAY NOT BE
RESOLD OR TRANSFERRED OR EXEMPTION THEREFROM.

Dear Sirs:

1.       I hereby subscribe 125,000 Units of Invisa, Inc. at a purchase price of
         $2.00 per Unit for an aggregate investment in the amount of $ 250,000
         to cover the aggregate subscription price. This Amended and Restated
         Subscription Agreement supersedes and replaces any prior Subscription
         Agreement for Units of Invisa;

         The Purchaser agrees that this Subscription Agreement shall be executed
by Purchaser and either faxed to the Company at (941) 355-9373 or mailed to 4400
Independence Court, Sarasota, Florida, USA. The Purchaser agrees the
subscription payment shall be made by wire transfer to the account below:

         UBS SA
         Cornavin Branch
         Geneva - Switzerland
         Swift Code: UBSWCHZH12
         A/C Name: GM Capital Partners Ltd
         A/C No.: 0240-340.209.62 M Rubric Invisa 2.

2.       The Purchaser understands that the Company reserves the right to
reject, in whole or in part, any offer to subscribe, in the Company's
discretion, for any reason whatsoever and that no subscription may be withdrawn
once made.

3.       The Purchaser understands that this is a "best efforts only" offering,
and that the subscription, once accepted by the Company, will be used by the
Company as stated in their Use of Proceeds.

<PAGE>

                                      -2-

4.       The Purchaser understand that he has the right to demand registration
from the Company for both the common shares and the underlying shares
represented by the warrant. If the Purchaser provides the Company, in writing,
such a demand, the Company will file such a registration within 30 days of
receiving such a demand.

5.       The Purchaser hereby acknowledges that the Purchaser has had full
access to the Company's filings with the U.S. Securities and Exchange Commission
and the Company's book and records and all other information regarding the
Company.

6.       The Purchaser understands that an investment in the Company involves a
high degree of risk and is only suitable for sophisticated investors who are
willing and able to bear the associated risk of loss.

7.       The Purchaser represents and warrants that: (i) neither Purchaser nor
any person or entity for whom Purchaser is acting as a fiduciary is a U.S.
person as that term is defined in Rule 902(k) of Regulation S, to wit - a "U.S.
person" means any of the following:

         (a) Any natural person resident in the United States;

         (b) Any partnership or corporation organized or incorporated under the
             laws of the United States;

         (c) Any estate of which any executor or administrator is a U.S. person;

         (d) Any trust of which any trustee is a U.S. person;

         (e) Any agency or branch of a foreign entity located in the United
             States;

         (f) Any non-discretionary account or similar account (other than an
             estate or trust) held by a dealer or other fiduciary for the
             benefit or account of a U.S. person;

         (g) Any discretionary account or similar account (other than an estate
             or trust) held by a dealer or other fiduciary organized,
             incorporated, or (if an individual) resident in the United States;
             and

         (h) Any partnership or corporation if:

             (1) Organized or incorporated under the laws of any foreign
                 jurisdiction; and

             (2) Formed by a U.S. person principally for the purpose of
                 investing in securities not registered under the Act, unless it
                 is organized or incorporated, and owned, .by "accredited
                 investors" who are not natural persons, estates or trusts.

(ii) at the time of the execution of this Subscription Agreement and the
Purchaser Questionnaire, Purchaser was outside of the United States; (iii) no
offer to purchase the Units was made to Purchaser or any of his/her/its
representatives in the United States; (iv) Purchaser agrees that he/she/it is
not a distributor or dealer, (v) Purchaser is purchasing the Units, including
the shares included as part of the Units, including the Warrants included as
part of the Units, and including the shares which may be issued under the
Warrants included as part of the Units (collectively hereinafter referred to as
the "Shares") for his/her/its own account or for the account of beneficiaries
for whom Purchaser has full investment discretion (in the event that Purchaser
is purchasing for a beneficiary, all of the representations and warranties set
forth herein are equally applicable to the beneficiary); (vi) Purchaser is
purchasing the Shares for investment purposes and not with a view towards
distribution. Purchaser has no present

<PAGE>

                                      -3-

intention to sell the Shares and Purchaser has no present arrangement (whether
or not legally binding) at any time to sell the Shares to or through any person
or entity; (vii) Purchaser will not engage in any activity for the purpose of,
or could be reasonably expected to have the effect of, conditioning the market
in the United States for any of the Shares sold hereunder; (viii) to the best of
the knowledge of Purchaser, neither the Company nor any person acting for the
Company, has conducted any "Directed selling efforts" as that term is defined in
Rule 902 of Regulation S; (ix) neither Purchaser nor any of his/her/its
affiliates or beneficiaries maintain, either directly or indirectly, any short
position in the common stock of the Company, and will not establish any such
short position; (x) during the one-year period commencing on the date of the
purchase of the Shares, the Purchaser will not offer or resell the Shares to a
U.S. person as defined in Regulation S regardless of whether such transactions
are within or outside the United States ("One-Year Period"), and any offers and
sales during the One-Year Period shall be made only in accordance with Rule 903
or Rule 904 of Regulation S, or pursuant to registration under the Act, or
pursuant to an exemption from the registration requirements of the Act as
determined by the Company's counsel. Further, the Shares will not be offered for
sale or resold by Purchaser (whether inside or outside the United States) for a
period of two years following the date of purchase of the Shares unless pursuant
to registration under the Act or pursuant to an exemption from registration
requirements of the Act as determined by the Company's counsel, and the
Purchaser agrees that the certificates representing the Shares will be subject
to stop-transfer instructions and a legend during said two-year period; (xi)
Purchaser has relied upon his/her/its independent investigation into the Company
and has been given no oral or written representations or assurances from the
Company or any of its representatives other than as set forth in this
Subscription Agreement or in the Company's Offering Document; (xii) Purchaser
acknowledges and agrees that no United States, federal or state agency has
passed upon or made any recommendation or endorsement of the Company, this
transaction or the purchase of the securities; and (xiii) he/she/it understands
it is the responsibility of any non-United States resident and citizen wishing
to purchase the Shares to satisfy himself/herself/itself as to full observance
of the laws of the Purchaser's relevant country or territory outside of the
United States of America in connection with any purchase, including obtaining
any required governmental or other consents or observing any other applicable
formalities.

8.       The Purchaser further represents and warrants that the Purchaser is an
"accredited investor" as such term is defined in Rule 501 of Regulation D
promulgated under the Act.

9.       In addition, the Purchaser represents and warrants that: (a)
his/her/its commitment to all investments is reasonable in relation to
his/her/its net worth; (b) he/she/it has the requisite knowledge or has relied
upon the advice of his/her/its own counsel, accountants or others, each of whom
qualifies as an Investor Representative with regard to all of the considerations
involved in making this investment; (c) he/she/it is aware that the right to
transfer the Shares is restricted as set forth herein; (d) he/she/it is aware
that the Company is in the development stage and has had limited sales and
revenue; (e) he/she/it has the financial ability to bear the economic risk of
the Shares and this investment in the Company (including the complete loss of
the entire investment), and has adequate means of providing for his/her/its
current and anticipated needs and personal contingencies, and no need for
liquidity with respect to his/her/its investment in the Company; and (f)
his/her/its overall commitment to investments which are not readily marketable
is not disproportionate to his/her/its net worth and this investment in the
Shares will not cause such overall commitment to become excessive.

<PAGE>

                                      -4-

10.      In the event that this subscription is accepted, in whole or in part,
the Purchaser requests that the Shares be registered in the name(s) printed
below. Delivery will be made to the address printed below.

11.      The representations and warranties made by Purchaser in the Purchaser
Questionnaire are true and correct, may be fully relied upon by the Company as
being acquired and are expressly incorporated herein by reference and made a
part hereof.

Very truly yours,

Mandarin Management Services Ltd.                                  July 22, 2003
---------------------------------         --------------------------------------
Print or type name                        Signature and Date signed

Method of Subscribing (check one):  Wire transfer                             X.
                                    Certified or Bank Check (enclosed)       __.
                                    Other (enclosed)                         __.

                                          c/o Gestrust SA
+41 22 731 57 70                          2 rue Thalberg, PO Box 1507
---------------------------------         --------------------------------------
Telephone Number                          Street Address

IBC 421 936                               CH-1211 Geneva 1, Switzerland
---------------------------------         --------------------------------------
Identification No.                        City, State, and Zip Code
(i.e. - tax, registration or other
identification number)

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