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                            STOCK PURCHASE AGREEMENT
                                      AMONG
                          RENEGADE VENTURE CORPORATION
                                       AND
                                  RALPH GARCIA
                                       AND
                                 MICHELE BARKAN
                                  JULY 15, 2004

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                                TABLE OF CONTENTS

1. Definitions.................................................................5

2. Purchase and Sale of Target Shares..........................................8
         (a) Basic Transaction.................................................8
         (b) Purchase Price....................................................8
         (c) Closing...........................................................8
         (d) Deliveries at Closing.............................................9

3. Representations and Warranties Concerning Transaction.......................9
         (a) Sellers' Representations and Warranties...........................9
         (b) Buyer's Representations and Warranties...........................10

4. Representations and Warranties Concerning Target and Its Subsidiaries......10
         (a) Organization, Qualification, and Corporate Power.................10
         (b) Capitalization...................................................10
         (c) Noncontravention.................................................11
         (d) Brokers' Fees....................................................11
         (e) Title to Assets..................................................11
         (f) Financial Statements.............................................11
         (g) Events Subsequent to Most Recent Fiscal Year End.................11
         (h) Undisclosed Liabilities..........................................12
         (i) Legal Compliance.................................................12
         (j) Tax Matters......................................................13
         (k) Leased Property..................................................13
         (l) Tangible Assets..................................................15
         (m) Inventory........................................................15
         (n) Contracts........................................................15
         (o) Notes and Accounts Receivable....................................16
         (p) Powers of Attorney...............................................16
         (q) Insurance........................................................16
         (r) Litigation.......................................................16
         (s) Product Warranty.................................................16
         (t) Product Liability................................................17
         (u) Employees........................................................17
         (v) Employee Benefits................................................17
         (w) Guaranties.......................................................18
         (x) Environmental, Health, and Safety Matters........................18
         (y) Business Continuity..............................................19
         (z) Disclosure.......................................................19

5. Pre-Closing Covenants......................................................19
         (a) General..........................................................19
         (b) Operation of Business............................................19
         (c) Preservation of Business.........................................20
         (d) Full Access......................................................20
         (e) Notice of Developments...........................................20
         (f) Leases...........................................................20
         (g) Tax Matters......................................................20

6. Post-Closing Covenants.....................................................20
         (a) General..........................................................20
         (b) Litigation Support...............................................20
         (c) Transition.......................................................20
         (d) Confidentiality..................................................21
         (e) Covenant Not to Compete..........................................21
         (f) Buyer Notes......................................................21
         (g) Buyer Securities.................................................22

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7. Conditions to Obligation to Close..........................................22
         (a) Conditions to Buyer's Obligation.................................22
         (b) Conditions to Sellers' Obligation................................23

8. Remedies for Breaches of This Agreement....................................23
         (a) Survival of Representations and Warranties.......................23
         (b) Indemnification Provisions for Buyer's Benefit...................23
         (c) Indemnification Provisions for Sellers' Benefit..................24
         (d) Matters Involving Third Parties..................................24
         (e) Determination of Adverse Consequences............................25
         (f) Other Indemniffication...........................................25

9. Tax Matters................................................................27
         (a) Tax Indemnification..............................................27
         (b) Straddle Period..................................................27
         (c) Responsibility for Filing Tax Returns............................27
         (d) Refunds and Tax Benefits.........................................27
         (e) Cooperation on Tax Matters.......................................27
         (f) Tax Sharing Agreements...........................................27
         (g) Certain Taxes and Fees...........................................27

10. Termination...............................................................27
         (a) Termination of Agreement.........................................27
         (b) Effect of Termination............................................27

11. Miscellaneous.............................................................27
         (a) Nature of Certain Obligations....................................27
         (b) Press Releases and Public Announcements..........................27
         (c) No Third-Party Beneficiaries.....................................28
         (d) Entire Agreement.................................................28
         (e) Succession and Assignment........................................28
         (f) Counterparts.....................................................28
         (g) Headings.........................................................28
         (h) Notices..........................................................28
         (i) Governing Law....................................................28
         (j) Amendments and Waivers...........................................28
         (k) Severability.....................................................29
         (l) Expenses.........................................................29
         (m) Construction.....................................................29
         (n) Incorporation of Exhibits, Annexes, and Schedules................29
         (o) Governing Language...............................................29

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                                    EXHIBITS

Exhibit A - Buyer Note

Exhibit B - Buyer and Seller Certificates

Exhibit C - Certificate of Incorporation and By Laws of World Jet Corporation

                               DISCLOSURE SCHEDULE

4(a) - List of Officers and Directors of World Jet

4(b) - Authorized and Outstanding Stock of World Jet

4(f) - Financial Statements of World Jet

4(k) - Tax Returns of World Jet

4(k)(ii) - World Jet Sub-Lease

4(q) - Liability and Worker's Compensation Policies of World Jet

4(v) - Employee Benefit Plans of World Jet

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                            STOCK PURCHASE AGREEMENT
                            ------------------------

     This Stock Purchase Agreement (this "Agreement") entered into as of July
15, 2004 and effective January 1, 2004 (the "Effective Date"), by and among
Renegade Venture Corporation, a Nevada corporation ("Buyer"), and Ralph Garcia,
and adult individual and stockholder of World Jet Corporation and Michele
Barkan, an adult individual and stockholder of World Jet Corporation (each a
Seller and collectively, "Sellers"). Buyer and Sellers are referred to
collectively herein as the "Parties."

     Sellers in the aggregate own all of the outstanding capital stock of World
Jet Corporation, a Nevada corporation ("Target").

     This Agreement contemplates a transaction in which Buyer will purchase from
Sellers, and Sellers will sell to Buyer, all of the outstanding capital stock of
Target in return for cash, Buyer Notes and common stock of the Buyer.

     Now, therefore, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations, warranties, and
covenants herein contained, the Parties agree as follows.

     1. Definitions.

     "Accredited Investor" has the meaning set forth in Regulation D promulgated
under the Securities Act.

     "Adverse Consequences" means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments,
orders, decrees, rulings, damages, dues, penalties, fines, costs, [reasonable
amounts paid in settlement], liabilities, obligations, taxes, liens, losses,
expenses, and fees, including court costs and [reasonable] attorneys' fees and
expenses.

     "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act.

     "Affiliated Group" means any affiliated group within the meaning of Code
ss.1504(a) or any similar group defined under a similar provision of state,
local, or foreign law.

     "Basis" means any past or present fact, situation, circumstance, status,
condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction that forms or could form the basis for any
specified consequence.

     "Buyer" has the meaning set forth in the preface above.

     "Buyer Notes" has the meaning set forth in ss.2(b) below.

     "Closing" has the meaning set forth in ss.2(c) below.

     "Closing Date" has the meaning set forth in ss.2(c) below.

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

     "Confidential Information" means any information concerning the businesses
and affairs of the Target and its Subsidiaries that is not already generally
available to the public.

     "Controlled Group" has the meaning set forth in Code ss.1563.

     "Disclosure Schedule" has the meaning set forth in ss.4 below.

     "Effective Date" shall mean January 1, 2004.

     "Employee Benefit Plan" means any "employee benefit plan" (as such term is
defined in ERISA ss.3(3)) and any other [material] employee benefit plan,
program or arrangement of any kind.

     "Employee Pension Benefit Plan" has the meaning set forth in ERISA ss.3(2).

     "Employee Welfare Benefit Plan" has the meaning set forth in ERISA ss.3(1).

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     "Environmental, Health, and Safety Requirements" shall mean all federal,
state, local, and foreign statutes, regulations, ordinances, and similar
provisions having the force or effect of law, all judicial and administrative
orders and determinations, and all common law concerning public health and
safety, worker health and safety, and pollution or protection of the
environment, including all those relating to the presence, use, production,
generation, handling, transportation, treatment, storage, disposal,
distribution, labeling, testing, processing, discharge, release, threatened
release, control, or cleanup of any hazardous materials, substances, or wastes,
chemical substances, or mixtures, pesticides, pollutants, contaminants, toxic
chemicals, petroleum products or byproducts, asbestos, polychlorinated
biphenyls, noise, or radiation.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" means each entity that is treated as a single employer
with the Target for purposes of Code ss.414.

     "Fiduciary" has the meaning set forth in ERISA ss.3(21).

     "Financial Statement" has the meaning set forth in ss.4(f) below.

     "FIRPTA Affidavit" has the meaning set forth in ss.7(a) below.

     "GAAP" means United States generally accepted accounting principles as in
effect from time to time, consistently applied.

     "Hart-Scott-Rodino Act" means the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended.

     "Improvements" has the meaning set forth in ss.4(k) below.

     "Income Tax" means any federal, state, local, or foreign income tax,
including any interest, penalty, or addition thereto, whether disputed or not.

     "Income Tax Return" means any return, declaration, report, claim for
refund, or information return or statement relating to Income Taxes, including
any schedule or attachment thereto, and including any amendment thereof.

     "Indemnified Party" has the meaning set forth in ss.8(d) below.

     "Indemnifying Party" has the meaning set forth in ss.8(d) below.

     "Intellectual Property" means all of the following in any jurisdiction
throughout the world: (a) all inventions (whether patentable or unpatentable and
whether or not reduced to practice), all improvements thereto, and all patents,
patent applications, and patent disclosures, together with all reissuances,
continuations, continuations-in-part, revisions, extensions, and reexaminations
thereof, (b) all trademarks, service marks, trade dress, logos, slogans, trade
names, corporate names, Internet domain names, and rights in telephone numbers,
together with all translations, adaptations, derivations, and combinations
thereof and including all goodwill associated therewith, and all applications,
registrations, and renewals in connection therewith, (c) all copyrightable
works, all copyrights, and all applications, registrations, and renewals in
connection therewith, (d) all mask works and all applications, registrations,
and renewals in connection therewith, (e) all trade secrets and confidential
business information (including ideas, research and development, know-how,
formulas, compositions, manufacturing and production processes and techniques,
technical data, designs, drawings, specifications, customer and supplier lists,
pricing and cost information, and business and marketing plans and proposals),
(f) all computer software (including source code, executable code, data,
databases, and related documentation), (g) all material advertising and
promotional materials, (h) all other proprietary rights, and (i) all copies and
tangible embodiments thereof (in whatever form or medium).

     "Knowledge" means actual knowledge after reasonable investigation.

     "Leased Real Property" means all leasehold or subleasehold estates and
other rights to use or occupy any land, buildings, structures, improvements,
fixtures, or other interest in real property held by any of Target or its
Subsidiaries.

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     "Leases" means all leases, subleases, licenses, concessions and other
agreements (written or oral), including all amendments, extensions, renewals,
guaranties, and other agreements with respect thereto, pursuant to which any of
Target or its Subsidiaries holds any Leased Real Property.

     "Lien" means any mortgage, pledge, lien, encumbrance, charge, or other
security interest[, other than (a) liens for taxes not yet due and payable [or
for taxes that the taxpayer is contesting in good faith through appropriate
proceedings], (b) purchase money liens and liens securing rental payments under
capital lease arrangements, and (c) other liens arising in the Ordinary Course
of Business and not incurred in connection with the borrowing of money].

     "Material Adverse Effect" or "Material Adverse Change" means any effect or
change that would be materially adverse to the business, assets, condition
(financial or otherwise), operating results, operations, or business prospects
of Target and its Subsidiaries, taken as a whole, or on the ability of any Party
to consummate timely the transactions contemplated hereby.

     "Most Recent Balance Sheet" means the balance sheet contained within the
Most Recent Financial Statements.

     "Most Recent Financial Statements" has the meaning set forth in ss.4(f)
below.

     "Most Recent Fiscal Month End" has the meaning set forth in ss.4(f) below.

     "Most Recent Fiscal Year End" has the meaning set forth in ss.4(f) below.

     "Multiemployer Plan" has the meaning set forth in ERISA ss.3(37).

     "Ordinary Course of Business" means the ordinary course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

     "Party" has the meaning set forth in the preface above.

     "PBGC" means the Pension Benefit Guaranty Corporation.

     "Permitted Encumbrances" means with respect to each parcel of Real
Property: (a) real estate taxes, assessments and other governmental levies,
fees, or charges imposed with respect to such Real Property that (i) are not due
and payable as of the Closing Date or (ii) being contested in good faith and for
which appropriate reserves have been established in accordance with GAAP; (b)
mechanics' liens and similar liens for labor, materials, or supplies provided
with respect to such Real Property incurred in the Ordinary Course of Business
for amounts that (i) are not due and payable as of the Closing Date or (ii)
being contested in good faith which would not, individually or in the aggregate,
materially impair the use or occupancy of the Real Property or the operation of
the business of Target and its Subsidiaries as currently conducted on such Real
Property; (c) zoning, building codes, and other land use laws regulating the use
or occupancy of such Real Property or the activities conducted thereon that are
imposed by any governmental authority having jurisdiction over such Real
Property and are not violated by the current use or occupancy of such Real
Property or the operation of the business of the Target and its Subsidiaries as
currently conducted thereon; and (d) easements, covenants, conditions,
restrictions, and other similar matters of record affecting title to such Real
Property which do not or would not materially impair the use or occupancy of
such Real Property in the operation of the business of Target and its
Subsidiaries as currently conducted thereon.

     "Person" means an individual, a partnership, a corporation, limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization, any other business entity or a
governmental entity (or any department, agency, or political subdivision
thereof).

     "Prohibited Transaction" has the meaning set forth in ERISA ss.406 and Code
ss.4975.

     "Purchase Price" has the meaning set forth in ss.2(b) below.

     "Real Property" has the meaning set forth in ss.4(k) below.

     "Reportable Event" has the meaning set forth in ERISA ss.4043.

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

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

     "Seller" has the meaning set forth in the preface above.

     "Subsidiary" means, with respect to any Person, any corporation, limited
liability company, partnership, association, or other business entity of which
(i) if a corporation, a majority of the total voting power of shares of stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers, or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof or (ii) if a limited
liability company, partnership, association, or other business entity (other
than a corporation), a majority of partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by
that Person or one or more Subsidiaries of that Person or a combination thereof
and for this purpose, a Person or Persons owns a majority ownership interest in
such a business entity (other than a corporation) if such Person or Persons
shall be allocated a majority of such business entity's gains or losses or shall
be or control any managing director or general partner of such business entity
(other than a corporation). The term "Subsidiary" shall include all Subsidiaries
of such Subsidiary.

     "Systems" has the meaning set forth in ss.4(y) below.

     "Target" has the meaning set forth in the preface above.

     "Tax" means any federal, state, local, or foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium,
windfall profits, environmental (including taxes under Code ss.59A), customs
duties, capital stock, franchise, profits, withholding, social security (or
similar), unemployment, disability, real property, personal property, sales,
use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, including any interest, penalty,
or addition thereto, whether disputed or not.

     "Tax Benefits" has the meaning set forth in ss.8(e) below.

     "Tax Return" means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

     2. Purchase and Sale of Target Shares.

     (a) Basic Transaction. On and subject to the terms and conditions of this
Agreement, Buyer agrees to purchase from each Seller, and each Seller agrees to
sell to Buyer, all of his, her, or its Target Shares for the consideration
specified below in this ss.2.

     (b) Purchase Price. Buyer agrees to pay to Sellers at the Closing Two
Million Fifty Thousand and 00/100 Dollars ($2,050,000.00) (the "Purchase Price")
by delivery of (i) its promissory note (the "Buyer Notes") in the form of
Exhibit A attached hereto in the aggregate principal amount of Three Hundred
Thousand and 00/100 Dollars ($300,000.00); (ii) cash in the amount of One
Million Two Hundred Fifty Thousand and 00/100 Dollars ($1,250,000.00) payable by
wire transfer or delivery of other immediately available funds; and (iii) the
balance of the Closing Purchase Price in the form of 1,000,000 restricted shares
(restricted until issuance of an effective registration statement with the SEC
and any applicable state laws or as otherwise restricted by federal or state
securities laws) of the common stock of Buyer (the "Buyer Securities") which,
for the purposes of this transaction, the Parties agree has a value of $0.50 per
share. The Purchase Price shall be allocated among Sellers in proportion to
their respective holdings of Target Shares as set forth in ss.4(b) of the
Disclosure Schedule. In addition to the payment of items 2b(i)-(iii) for the
purchase of Target, Buyer shall also, as part of the Purchase Price, assume and
pay Target's Income Tax liability for Target's fiscal year ending March 31,
2003.

     (c) Closing. The closing of the transactions contemplated by this Agreement
(the "Closing") shall take place at the offices of Buyer in, Tucson, Arizona,
commencing at 9:00 a.m. local time on the [first] business day following the
satisfaction or waiver of all conditions to the obligations and items to be
delivered of the Parties to consummate the transactions contemplated hereby
(other than conditions with respect to actions the respective Parties will take
at the Closing itself) or such other date as Buyer and Sellers may mutually
determine (the "Closing Date"); provided, however, that the Closing Date shall
be no later than July 29, 2004.

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     (d) Deliveries at Closing. At the Closing, (i) Sellers will deliver to
Buyer the various certificates, instruments, and documents referred to in
ss.7(a) below, (ii) Buyer will deliver to Sellers the various certificates,
instruments, and documents referred to in ss.7(b) below, (iii) each Seller will
deliver to Buyer stock certificates representing all of his, her, or its Target
Shares, endorsed in blank or accompanied by duly executed assignment documents,
and (iv) Buyer will deliver to each Seller the consideration specified in
ss.2(b) above.

     3. Representations and Warranties Concerning Transaction.

     (a) Sellers' Representations and Warranties. Each Seller represents and
warrants to Buyer that the statements contained in this ss.3(a) are correct and
complete as of the date of this Agreement and will be correct and complete as of
the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout this ss.3(a)) with respect
to himself, herself, or itself, except as set forth in Annex I attached hereto.

          (i) Organization of Certain Sellers. Seller (if a corporation or other
     entity) is duly organized, validly existing, and in good standing under the
     laws of the jurisdiction of its incorporation (or other formation).

          (ii) Authorization of Transaction. Seller has full power and authority
     (including full corporate or other entity power and authority) to execute
     and deliver this Agreement and to perform his, her, or its obligations
     hereunder. This Agreement constitutes the valid and legally binding
     obligation of Seller, enforceable in accordance with its terms and
     conditions. Seller need not give any notice to, make any filing with, or
     obtain any authorization, consent, or approval of any government or
     governmental agency in order to consummate the transactions contemplated by
     this Agreement. The execution, delivery and performance of this Agreement
     and all other agreements contemplated hereby have been duly authorized by
     Seller.

          (iii) Noncontravention. Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will (A) violate any constitution, statute, regulation, rule, injunction,
     judgment, order, decree, ruling, charge, or other restriction of any
     government, governmental agency, or court to which Seller is subject or, if
     Seller is an entity, any provision of its charter, bylaws or other
     governing documents, (B) conflict with, result in a breach of, constitute a
     default under, result in the acceleration of, create in any party the right
     to accelerate, terminate, modify, or cancel, or require any notice under
     any agreement, contract, lease, license, instrument, or other arrangement
     to which Seller is a party or by which he, she, or it is bound or to which
     any of his or its assets is subject, or (C) result in the imposition or
     creation of a Lien upon or with respect to Target Shares.

          (iv) Brokers' Fees. Seller has no liability or obligation to pay any
     fees or commissions to any broker, finder, or agent with respect to the
     transactions contemplated by this Agreement.

          (v) Investment. Seller (A) understands that the Buyer Notes and the
     Buyer Securities have not been, and will not be, registered under the
     Securities Act, or under any state securities laws, and are being offered
     and sold in reliance upon federal and state exemptions for transactions not
     involving any public offering, (B) is acquiring the Buyer Notes and the
     Buyer Securities solely for his or its own account for investment purposes,
     and not with a view to the distribution thereof, (C) is a sophisticated
     investor with knowledge and experience in business and financial matters,
     (D) has received certain information concerning Buyer and has had the
     opportunity to obtain additional information as desired in order to
     evaluate the merits and the risks inherent in holding the Buyer Notes, (E)
     is able to bear the economic risk and lack of liquidity inherent in holding
     the Buyer Notes, and (F) is an Accredited Investor for the reasons set
     forth on Annex I.

          (vi) Target Shares. Seller holds of record and owns beneficially the
     number of Target Shares set forth next to his, her, or its name in ss.4(b)
     of the Disclosure Schedule, free and clear of any restrictions on transfer
     (other than any restrictions under the Securities Act and state securities
     laws), taxes, Liens, options, warrants, purchase rights, contracts,

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     commitments, equities, claims, and demands. Seller is not a party to any
     option, warrant, purchase right, or other contract or commitment that could
     require Seller to sell, transfer, or otherwise dispose of any capital stock
     of Target (other than this Agreement). Seller is not a party to any voting
     trust, proxy, or other agreement or understanding with respect to the
     voting of any capital stock of Target.

     (b) Buyer's Representations and Warranties. Buyer represents and warrants
to Sellers that the statements contained in this ss.3(b) are correct and
complete as of the date of this Agreement and will be correct and complete as of
the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout this ss.3(b)), except as
set forth in Annex II attached hereto.

          (i) Organization of Buyer. Buyer is a corporation (or other entity)
     duly organized, validly existing, and in good standing under the laws of
     the jurisdiction of its incorporation (or other formation).

          (ii) Authorization of Transaction. Buyer has full power and authority
     (including full corporate or other entity power and authority) to execute
     and deliver this Agreement and to perform its obligations hereunder. This
     Agreement constitutes the valid and legally binding obligation of Buyer,
     enforceable in accordance with its terms and conditions. Buyer need not
     give any notice to, make any filing with, or obtain any authorization,
     consent, or approval of any government or governmental agency in order to
     consummate the transactions contemplated by this Agreement. The execution,
     delivery and performance of this Agreement and all other agreements
     contemplated hereby have been duly authorized by Buyer.

          (iii) Noncontravention. Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will (A) violate any constitution, statute, regulation, rule, injunction,
     judgment, order, decree, ruling, charge, or other restriction of any
     government, governmental agency, or court to which Buyer is subject or any
     provision of its charter, bylaws, or other governing documents or (B)
     conflict with, result in a breach of, constitute a default under, result in
     the acceleration of, create in any party the right to accelerate,
     terminate, modify, or cancel, or require any notice under any agreement,
     contract, lease, license, instrument, or other arrangement to which Buyer
     is a party or by which it is bound or to which any of its assets is
     subject.

          (iv) Brokers' Fees. Buyer has no liability or obligation to pay any
     fees or commissions to any broker, finder, or agent with respect to the
     transactions contemplated by this Agreement.

          (v) Investment. Buyer is not acquiring Target Shares with a view to or
     for sale in connection with any distribution thereof within the meaning of
     the Securities Act.

     4. Representations and Warranties Concerning Target and Its Subsidiaries.
Sellers represent and warrant to Buyer that the statements contained in this
ss.4 are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were substituted for the date of this Agreement throughout this
ss.4), except as set forth in the disclosure schedule delivered by Sellers to
Buyer on the date hereof and initialed by the Parties (the "Disclosure
Schedule"). The Disclosure Schedule will be arranged in paragraphs corresponding
to the lettered and numbered paragraphs contained in this ss.4.

     (a) Organization, Qualification, and Corporate Power. Target is a
corporation duly organized, validly existing, and in good standing under the
laws of the jurisdiction of its incorporation. Target is duly authorized to
conduct business and is in good standing under the laws of each jurisdiction
where such qualification is required, except where the lack of such
qualification would not have a Material Adverse Effect. Target has full
corporate power and authority to carry on the businesses in which it is engaged
and to own and use the properties owned and used by it. ss.4(a) of the
Disclosure Schedule lists the directors and officers of Target.

     (b) Capitalization. The entire authorized capital stock of Target consists
of 25,000 Target Shares, of which 25,000 Target Shares are issued and
outstanding. All of the issued and outstanding Target Shares have been duly
authorized, are validly issued, fully paid, and nonassessable, and are held of

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record by the respective Sellers as set forth in ss.4(b) of the Disclosure
Schedule. There are no outstanding or authorized options, warrants, purchase
rights, subscription rights, conversion rights, exchange rights, or other
contracts or commitments that could require Target to issue, sell, or otherwise
cause to become outstanding any of its capital stock. There are no outstanding
or authorized stock appreciation, phantom stock, profit participation, or
similar rights with respect to Target. There are no voting trusts, proxies, or
other agreements or understandings with respect to the voting of the capital
stock of Target.

     (c) Noncontravention. Neither the execution and the delivery of this
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which any of Target and its Subsidiaries is
subject or any provision of the charter or bylaws of any of Target or (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which Target is a party or by which it is
bound or to which any of its assets is subject (or result in the imposition of
any Lien upon any of its assets), except where the violation, conflict, breach,
default, acceleration, termination, modification, cancellation, failure to give
notice, or Lien would not have a Material Adverse Effect. Target does not need
to give any notice to, make any filing with, or obtain any authorization,
consent, or approval of any government or governmental agency in order for the
Parties to consummate the transactions contemplated by this Agreement, except
where the failure to give notice, to file, or to obtain any authorization,
consent, or approval would not have a Material Adverse Effect.

     (d) Brokers' Fees. Target does not have any liability or obligation to pay
any fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement.

     (e) Title to Assets. Target has good and marketable title to, or a valid
leasehold interest in, the properties and assets used by them, located on their
premises, or shown on the Most Recent Balance Sheet or acquired after the date
thereof, free and clear of all Liens, except for properties and assets disposed
of in the Ordinary Course of Business since the date of the Most Recent Balance
Sheet.

     (f) Financial Statements. Attached hereto as Exhibit B are the following
financial statements (collectively the "Financial Statements"): (i) unaudited
balance sheets and statements of income, changes in stockholders' equity, and
cash flow as of and for the fiscal years ended March 31, 2001, March 31, 2002,
and March 31, 2003 (the "Most Recent Fiscal Year End") for Target; and (ii)
unaudited balance sheets and statements of income, changes in stockholders'
equity, and cash flow (the "Most Recent Financial Statements") as of and for the
months ended April 2004, May 2004 and June 2004 (the "Most Recent Fiscal Month
End") for Target. The Financial Statements (including the notes thereto) have
been prepared in accordance with GAAP applied on a consistent basis throughout
the periods covered thereby and present fairly the financial condition of Target
as of such dates and the results of operations of Target for such periods;
provided, however, that the Most Recent Financial Statements are subject to
normal year-end adjustments (which will not be material individually or in the
aggregate) and lack footnotes and other presentation items.

     (g) Events Subsequent to Most Recent Fiscal Year End. Since the Most Recent
Fiscal Year End, there has not been any Material Adverse Change. Without
limiting the generality of the foregoing, since that date:

          (i) Target has not sold, leased, transferred, or assigned any material
     assets, tangible or intangible, outside the Ordinary Course of Business;

          (ii) Target has not entered into any material agreement, contract,
     lease, or license outside the Ordinary Course of Business;

          (iii) no party (including Target) has accelerated, terminated, made
     material modifications to, or canceled any material agreement, contract,
     lease, or license to which Target Subsidiaries is a party or by which any
     of them is bound;

          (iv) Target has not imposed any Lien upon any of its assets, tangible
     or intangible;

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<PAGE>

          (v) Target has not made any material capital expenditures outside the
     Ordinary Course of Business;

          (vi) Target has not made any material capital investment in, or any
     material loan to, any other Person outside the Ordinary Course of Business;

          (vii) Target has not created, incurred, assumed, or guaranteed more
     than $250,000.00 in aggregate indebtedness for borrowed money and
     capitalized lease obligations;

          (viii) Target has not transferred, assigned, or granted any license or
     sublicense of any material rights under or with respect to any Intellectual
     Property;

          (ix) there has been no change made or authorized in the charter or
     bylaws of any of Target;

          (x) Target has not issued, sold, or otherwise disposed of any of its
     capital stock, or granted any options, warrants, or other rights to
     purchase or obtain (including upon conversion, exchange, or exercise) any
     of its capital stock;

          (xi) Target has not declared, set aside, or paid any dividend or made
     any distribution with respect to its capital stock (whether in cash or in
     kind) or redeemed, purchased, or otherwise acquired any of its capital
     stock;

          (xii) Target has not experienced any material damage, destruction, or
     loss (whether or not covered by insurance) to its property;

          (xiii) Target has not made any loan to, or entered into any other
     transaction with, any of its directors, officers, and employees outside the
     Ordinary Course of Business;

          (xiv) Target has not entered into any employment contract or
     collective bargaining agreement, written or oral, or modified the terms of
     any existing such contract or agreement;

          (xv) Target has not granted any increase in the base compensation of
     any of its directors, officers, and employees outside the Ordinary Course
     of Business;

          (xvi) Target has not adopted, amended, modified, or terminated any
     bonus, profit sharing, incentive, severance, or other plan, contract, or
     commitment for the benefit of any of its directors, officers, and employees
     (or taken any such action with respect to any other Employee Benefit Plan);

          (xvii) Target has not made any other material change in employment
     terms for any of its directors, officers, and employees outside the
     Ordinary Course of Business;

          (xviii) Target has not made any loans or advances of money except for
     loans to AM Trading, Inc. as set forth in the Disclosure Schedule; and

          (xix) Target has not committed to any of the foregoing.

     (h) Undisclosed Liabilities. Target does not have any material liability
(whether known or unknown, whether asserted or unasserted, whether absolute or
contingent, whether accrued or unaccrued, whether liquidated or unliquidated,
and whether due or to become due, including any liability for taxes), except for
(i) liabilities set forth on the face of the Most Recent Balance Sheet (rather
than in any notes thereto); (ii) liabilities which have arisen after the Most
Recent Fiscal Month End in the Ordinary Course of Business; and (iii) the Income
Tax liability for Target's fiscal year end March 31, 2003 which is expressly
assumed by Buyer.

     (i) Legal Compliance. Target has complied with all applicable laws
(including rules, regulations, codes, plans, injunctions, judgments, orders,
decrees, rulings, and charges thereunder and including the Foreign Corrupt
Practices Act, 15 U.S.C. 78dd-1, et. seq.) of federal, state, local, and foreign
governments (and all agencies thereof), and no action, suit, proceeding,
hearing, investigation, charge, complaint, claim, demand, or notice has been
filed or commenced against any of them alleging any failure so to comply, except
where the failure to comply would not have a Material Adverse Effect.

                                       12

<PAGE>

     (j)  Tax Matters.

          (i) Target has filed all federal Income Tax Returns and all other
     material Tax Returns that it was required to file. All such Tax Returns
     were correct and complete in all material respects. All Income Taxes due
     and owing by Target (whether or not shown on any Tax Return) have been paid
     for all fiscal years except for the Income Taxes due and owing for the
     fiscal year ending March 31, 2003, which shall be assumed and paid by the
     Buyer pursuant to this Agreement. There are no Liens for Taxes (other than
     Taxes not yet due and payable) upon any of the assets of Target.

          (ii) There is no material dispute or claim concerning any Tax
     liability of Target either (A) claimed or raised by any authority in
     writing or (B) as to which any of Sellers and the directors and officers of
     Target has Knowledge based upon personal contact with any agent of such
     authority.

          (iii) ss.4(k) of the Disclosure Schedule lists all federal, state,
     local, and foreign Tax Returns filed with respect to Target for taxable
     periods ended on or after March 31, 2001, indicates those Tax Returns that
     have been audited, and indicates those Tax Returns that currently are the
     subject of audit. Sellers have delivered to Buyer correct and complete
     copies of all federal Income Tax Returns, examination reports, and
     statements of deficiencies assessed against, or agreed to by Target since
     March 31, 2001. Target has not waived any statute of limitations in respect
     of Taxes or agreed to any extension of time with respect to a Tax
     assessment or deficiency.

          (iv) Target has not filed a consent under Code ss.341(f) concerning
     collapsible corporations. Target is not a party to any agreement, contract,
     arrangement, or plan that has resulted or would result, separately or in
     the aggregate, in the payment of any "excess parachute payment" within the
     meaning of Code ss.280G (or any corresponding provision of state, local, or
     foreign Tax law). Target has not been a United States real property holding
     corporation within the meaning of Code ss.897(c)(2) during the applicable
     period specified in Code ss.897(c)(1)(A)(ii). Target is not a party to or
     bound by any tax allocation or sharing agreement. Target (A) has not been a
     member of an Affiliated Group filing a consolidated federal Income Tax
     Return (other than a group the common parent of which was Target) or (B)
     has no liability for the Taxes of any Person (other than Target) under Reg.
     ss.1.1502-6 (or any similar provision of state, local, or foreign law), as
     a transferee or successor, by contract, or otherwise.

          (v) The unpaid Taxes of Target (A) did not, as of the Most Recent
     Fiscal Month End, exceed the reserve for Tax liability (rather than any
     reserve for deferred Taxes established to reflect timing differences
     between book and Tax income) set forth on the face of the Most Recent
     Balance Sheet (rather than in any notes thereto) and (B) will not exceed
     that reserve as adjusted for operations and transactions through the
     Closing Date in accordance with the past custom and practice of Target in
     filing its Tax Returns.

          (vi) Target will not be required to include any item of income in, or
     exclude any item of deduction from, taxable income for any taxable period
     (or portion thereof) ending after the Closing Date as a result of any (A)
     change in method of accounting for a taxable period ending on or prior to
     the Closing Date; (B) "closing agreement" as described in Code ss.7121 (or
     any corresponding or similar provision of state, local or foreign income
     Tax law) executed on or prior to the Closing Date; (C) intercompany
     transactions or any excess loss account described in Treasury Regulations
     under Code ss.1502 (or any corresponding or similar provision of state,
     local or foreign income Tax law); (D) installment sale or open transaction
     disposition made on or prior to the Closing Date; or (E) prepaid amount
     received on or prior to the Closing Date.

     (k) Leased Property.

          (i) ss.4(k)(ii) of the Disclosure Schedule sets forth the address of
     each parcel of Leased Real Property, and a true and complete list of all
     Leases for each such Leased Real Property (including the date and name of
     the parties to such Lease document). Sellers have delivered to Buyer a true
     and complete copy of each such Lease document, and in the case of any oral
     Lease, a written summary of the material terms of such Lease. Except as set
     forth in ss.4(k)(ii) of the Disclosure Schedule, with respect to each of
     the Leases:

                                       13

<PAGE>

               (A) such Lease is legal, valid, binding, enforceable and in full
          force and effect;

               (B) the transaction contemplated by this Agreement does not
          require the consent of any other party to such Lease (except for those
          Leases for which Lease Consents (as hereinafter defined) are
          obtained), will not result in a breach of or default under such Lease,
          and will not otherwise cause such Lease to cease to be legal, valid,
          binding, enforceable and in full force and effect on identical terms
          following the Closing;

               (C) Target's possession and quiet enjoyment of the Leased Real
          Property under such Lease has not been disturbed and, to the Knowledge
          of Sellers and the directors and officers of Target, there are no
          disputes with respect to such Lease;

               (D) to the Knowledge of Sellers and the directors and officers of
          Target, neither Target, or any other party to the Lease is in breach
          or default under such Lease, and, to the Knowledge of Sellers and the
          directors and officers of Target, no event has occurred or
          circumstance exists which, with the delivery of notice, the passage of
          time or both, would constitute such a breach or default, or permit the
          termination, modification or acceleration of rent under such Lease;

               (E) no security deposit or portion thereof deposited with respect
          to such Lease has been applied in respect of a breach or default under
          such Lease which has not been redeposited in full;

               (F) Target does not owe, or will owe in the future, any brokerage
          commissions or finder's fees with respect to such Lease;

               (G) the other party to such Lease is not an affiliate of, and
          otherwise does not have any economic interest in Target;

               (H) Target has not subleased, licensed or otherwise granted any
          Person the right to use or occupy such Leased Real Property or any
          portion thereof; and

               (I) Target has not collaterally assigned or granted any other
          Lien in such Lease or any interest therein.

          (ii) The Leased Real Property identified in ss.4(k)(ii) of the
     Disclosure Schedule (collectively, the "Real Property") comprise all of the
     real property used or intended to be used in the business of Target; and
     Target is not a party to any agreement or option to purchase any real
     property or interest therein.

          (iii) All buildings, structures, fixtures, building systems and
     equipment, and all components thereof, included in the Real Property (the
     "Improvements") are in good condition and repair and sufficient for the
     operation of the business of Target. There are no facts or conditions
     affecting any of the Improvements which would, individually or in the
     aggregate, interfere in any material respect with the use or occupancy of
     the Improvements or any portion thereof in the operation of the business of
     Target as currently conducted thereon.

          (iv) Target has not received written notice of any condemnation,
     expropriation or other proceeding in eminent domain affecting any parcel of
     Leased Real Property or any portion thereof or interest therein. [To the
     Knowledge of Sellers and the directors and officers of Target there is no
     injunction, decree, order, writ or judgment outstanding, nor any claims,
     litigation, administrative actions or similar proceedings, pending or
     threatened, relating to the ownership, lease, use or occupancy of the
     Leased Real Property or any portion thereof, or the operation of the
     business of Target as currently conducted thereon.]

          (v) To the Knowledge of Sellers and the directors and officers of
     Target, the current use and occupancy of the Leased Real Property and the
     operation of the business of Target as currently conducted thereon does not
     violate in any material respect any easement, covenant, condition,
     restriction or similar provision in any instrument of record or other
     unrecorded agreement affecting such Leased Real Property.

                                       14

<PAGE>

          (vi) None of the Leased Real Property or any portion thereof is
     located in a flood hazard area (as defined by the State of Arizona, City of
     Tucson or Federal Emergency Management Agency).

          (l) Tangible Assets. The buildings, machinery, equipment, and other
     tangible assets that Target owns and leases are free from material defects
     (patent and latent), have been maintained in accordance with normal
     industry practice, and are in good operating condition and repair (subject
     to normal wear and tear).

     (m) Inventory. The inventory of Target consists of raw materials and
supplies, manufactured and processed parts, work in process, and finished goods,
all of which is merchantable and fit for the purpose for which it was procured
or manufactured, and none of which is slow-moving, obsolete, damaged, or
defective, subject only to the reserve for inventory writedown set forth on the
face of the Most Recent Balance Sheet (rather than in any notes thereto) as
adjusted for operations and transactions through the Closing Date in accordance
with the past custom and practice of Target.

     (n) Contracts. ss.4(n) of the Disclosure Schedule lists the following
contracts and other agreements to which Target is a party:

          (i) any agreement (or group of related agreements) for the lease of
     personal property to or from any Person providing for lease payments in
     excess of $100,000.00 per annum;

          (ii) any agreement (or group of related agreements) for the purchase
     or sale of raw materials, commodities, supplies, products, or other
     personal property, or for the furnishing or receipt of services, the
     performance of which will extend over a period of more than one year or
     involve consideration in excess of $10,000.00;

          (iii) any agreement concerning a partnership or joint venture;

          (iv) any agreement (or group of related agreements) under which it has
     created, incurred, assumed, or guaranteed any indebtedness for borrowed
     money, or any capitalized lease obligation, in excess of $10,000.00 or
     under which it has imposed a Lien on any of its assets, tangible or
     intangible;

          (v) any material agreement concerning confidentiality or
     noncompetition;

          (vi) any material agreement with any of Sellers and their Affiliates
     (other than Target);

          (vii) any profit sharing, stock option, stock purchase, stock
     appreciation, deferred compensation, severance, or other material plan or
     arrangement for the benefit of its current or former directors, officers,
     and employees;

          (viii) any collective bargaining agreement;

          (ix) any agreement for the employment of any individual on a
     full-time, part-time, consulting, or other basis providing annual
     compensation in excess of $120,000.00 or providing material severance
     benefits;

          (x) any agreement under which it has advanced or loaned any amount to
     any of its directors, officers, and employees outside the Ordinary Course
     of Business;

          (xi) any agreement under which the consequences of a default or
     termination could have a Material Adverse Effect;

          (xii) any agreement under which it has granted any Person any
     registration rights (including, without limitation, demand and piggyback
     registration rights);

          (xiii) any agreement under which Target has advanced or loaned any
     other Person amounts in the aggregate exceeding $10,000.00; or

                                       15

<PAGE>

          (xiv) any other agreement (or group of related agreements) the
     performance of which involves consideration in excess of $250,000.00.

Sellers have delivered to Buyer a correct and complete copy of each written
agreement listed in ss.4(n) of the Disclosure Schedule (as amended to date) and
a written summary setting forth the material terms and conditions of each oral
agreement referred to in ss.4(n) of the Disclosure Schedule. With respect to
each such agreement: (A) the agreement is legal, valid, binding, enforceable,
and in full force and effect in all material respects; (B) no party is in
material breach or default, and no event has occurred which with notice or lapse
of time would constitute a material breach or default, or permit termination,
modification, or acceleration, under the agreement; and (C) no party has
repudiated any material provision of the agreement.

     (o) Notes and Accounts Receivable. All notes and accounts receivable of
Target are reflected properly on their books and records, are valid receivables
subject to no setoffs or counterclaims, are current and collectible, and will be
collected in accordance with their terms at their recorded amounts, subject only
to the reserve for bad debts set forth on the face of the Most Recent Balance
Sheet (rather than in any notes thereto) as adjusted for operations and
transactions through the Closing Date in accordance with the past custom and
practice of Target.

     (p) Powers of Attorney. To the Knowledge of any Seller and the directors
and officers of Target, there are no material outstanding powers of attorney
executed on behalf of any of Target.

     (q) Insurance. ss.4(q) of the Disclosure Schedule sets forth the following
information with respect to each material insurance policy (including policies
providing liability, and workers' compensation coverage and bond and surety
arrangements) with respect to which Target is a party, a named insured, or
otherwise the beneficiary of coverage:

          (i) the name, address, and telephone number of the agent;

          (ii) the name of the insurer, the name of the policyholder, and the
     name of each covered insured;

          (iii) the policy number and the period of coverage;

          (iv) the scope (including an indication of whether the coverage is on
     a claims made, occurrence, or other basis) and amount (including a
     description of how deductibles and ceilings are calculated and operate) of
     coverage; and

          (v) a description of any retroactive premium adjustments or other
     material loss-sharing arrangements.

With respect to each such insurance policy: (A) the policy is legal, valid,
binding, enforceable, and in full force and effect in all material respects; (B)
Target, nor any other party to the policy is in material breach or default
(including with respect to the payment of premiums or the giving of notices),
and no event has occurred which, with notice or the lapse of time, would
constitute such a material breach or default, or permit termination,
modification, or acceleration, under the policy; and (C) no party to the policy
has repudiated any material provision thereof. ss.4(q) of the Disclosure
Schedule describes any material self-insurance arrangements affecting Target.

     (r) Litigation. ss.4(r) of the Disclosure Schedule sets forth each instance
in which Target (i) is subject to any outstanding injunction, judgment, order,
decree, ruling, or charge or (ii) is a party or, to the Knowledge of any Seller
and the directors and officers of Target, is threatened to be made a party to
any action, suit, proceeding, hearing, or investigation of, in, or before any
court or quasi-judicial or administrative agency of any federal, state, local,
or foreign jurisdiction or before any arbitrator.

     (s) Product Warranty. Substantially all of the products manufactured, sold,
leased, and delivered by Target have conformed in all material respects with all
applicable contractual commitments and all express and implied warranties, and
Target has no material liability (whether known or unknown, whether asserted or
unasserted, whether absolute or contingent, whether accrued or unaccrued,
whether liquidated or unliquidated, and whether due or to become due) for
replacement or repair thereof or other damages in connection therewith, subject
only to the reserve for product warranty claims set forth on the face of the

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<PAGE>

Most Recent Balance Sheet (rather than in any notes thereto) as adjusted for
operations and transactions through the Closing Date in accordance with the past
custom and practice of Target. Substantially all of the products manufactured,
sold, leased, and delivered by Target are subject to standard terms and
conditions of sale or lease. ss.4(s) of the Disclosure Schedule includes copies
of the standard terms and conditions of sale or lease for Target (containing
applicable guaranty, warranty, and indemnity provisions).

     (t) Product Liability. Target has no material liability (whether known or
unknown, whether asserted or unasserted, whether absolute or contingent, whether
accrued or unaccrued, whether liquidated or unliquidated, and whether due or to
become due) arising out of any injury to individuals or property as a result of
the ownership, possession, or use of any product manufactured, sold, leased, or
delivered by Target.

     (u) Employees. To the Knowledge of any Seller and the directors and
officers of Target, no executive, key employee, or significant group of
employees plans to terminate employment with Target during the next 12 months.
Target is not a party to or bound by any collective bargaining agreement, nor
has any of them experienced any strike or material grievance, claim of unfair
labor practices, or other collective bargaining dispute within the past [three]
years. Target has not committed any material unfair labor practice. None of
Sellers and the directors and officers of Target has any Knowledge of any
organizational effort presently being made or threatened by or on behalf of any
labor union with respect to employees of Target.

     (v) Employee Benefits.

          (i) ss.4(v) of the Disclosure Schedule lists each Employee Benefit
     Plan that Target maintains or to which Target contributes or has any
     obligation to contribute.

               (A) Each such Employee Benefit Plan (and each related trust,
          insurance contract, or fund) has been maintained, funded and
          administered in accordance with the terms of such Employee Benefit
          Plan and complies in form and in operation in all material respects
          with the applicable requirements of ERISA, the Code, and other
          applicable laws.

               (B) All required reports and descriptions (including annual
          reports (IRS Form 5500), summary annual reports, and summary plan
          descriptions) have been timely filed and/or distributed in accordance
          with the applicable requirements of ERISA and the Code with respect to
          each such Employee Benefit Plan. The requirements of COBRA have been
          met in all material respects with respect to each such Employee
          Benefit Plan which is an Employee Welfare Benefit Plan subject to
          COBRA.

               (C) All contributions (including all employer contributions and
          employee salary reduction contributions) that are due have been made
          within the time periods prescribed by ERISA and the Code to each such
          Employee Benefit Plan that is an Employee Pension Benefit Plan and all
          contributions for any period ending on or before the Closing Date that
          are not yet due have been made to each such Employee Pension Benefit
          Plan or accrued in accordance with the past custom and practice of
          Target. All premiums or other payments for all periods ending on or
          before the Closing Date have been paid with respect to each such
          Employee Benefit Plan that is an Employee Welfare Benefit Plan.

               (D) Each such Employee Benefit Plan which is intended to meet the
          requirements of a "qualified plan" under Code ss.401(a) has received a
          determination from the Internal Revenue Service that such Employee
          Benefit Plan is so qualified, and the Sellers are not aware of any
          facts or circumstances that could adversely affect the qualified
          status of any such Employee Benefit Plan.

               (E) The market value of assets under each such Employee Benefit
          Plan that is an Employee Pension Benefit Plan (other than any
          Multiemployer Plan) equals or exceeds the present value of all vested
          and nonvested liabilities thereunder (determined in accordance with
          then current funding assumptions).

                                       17

<PAGE>

               (F) Sellers have delivered to Buyer correct and complete copies
          of the plan documents and summary plan descriptions, the most recent
          determination letter received from the Internal Revenue Service, the
          most recent annual report (IRS Form 5500, with all applicable
          attachments), and all related trust agreements, insurance contracts,
          and other funding arrangements which implement each such Employee
          Benefit Plan.

          (ii) With respect to each Employee Benefit Plan that Target, and any
     ERISA Affiliate maintains, to which any of them contributes, or has any
     obligation to contribute, or with respect to which any of them has any
     [material] liability or potential liability:

               (A) No such Employee Benefit Plan that is an Employee Pension
          Benefit Plan (other than any Multiemployer Plan) has been completely
          or partially terminated or been the subject of a Reportable Event as
          to which notices would be required to be filed with the PBGC. No
          proceeding by the PBGC to terminate any such Employee Pension Benefit
          Plan (other than any Multiemployer Plan) has been instituted or, to
          the Knowledge of any Seller and the directors and officers of Target,
          threatened.

               (B) There have been no Prohibited Transactions with respect to
          any such Employee Benefit Plan. No Fiduciary has any liability for
          material breach of fiduciary duty or any other material failure to act
          or comply in connection with the administration or investment of the
          assets of any such Employee Benefit Plan. No action, suit, proceeding,
          hearing, or investigation with respect to the administration or the
          investment of the assets of any such Employee Benefit Plan (other than
          routine claims for benefits) is pending or, to the Knowledge of any
          Seller and the directors and officers of Target, threatened.

               (C) Target has not incurred any material liability (whether known
          or unknown, whether asserted or unasserted, whether absolute or
          contingent, whether accrued or unaccrued, whether liquidated or
          unliquidated, and whether due or to become due) to the PBGC (other
          than with respect to PBGC premium payments not yet due) or otherwise
          under Title IV of ERISA (including any withdrawal liability (as
          defined in ERISA ss.4201)) or under the Code with respect to any such
          Employee Benefit Plan which is an Employee Pension Benefit Plan, or
          under COBRA with respect to any such Employee Benefit Plan which is an
          Employee Welfare Benefit Plan.

          (iii) Target, and any ERISA Affiliate contributes to, has any
     obligation to contribute to, or has any material liability (whether known
     or unknown, whether asserted or unasserted, whether absolute or contingent,
     whether accrued or unaccrued, whether liquidated or unliquidated, and
     whether due or to become due), including any withdrawal liability (as
     defined in ERISA ss.4201), under or with respect to any Multiemployer Plan.

          (iv) Target does not maintain, contribute to or has an obligation to
     contribute to, or has any [material] liability or potential liability with
     respect to, any Employee Welfare Benefit Plan providing medical, health, or
     life insurance or other welfare-type benefits for current or future retired
     or terminated employees of Target (or any spouse or other dependent
     thereof) other than in accordance with COBRA.

     (w) Guaranties. Target is not a guarantor or otherwise is responsible for
any liability or obligation (including indebtedness) of any other Person.

     (x) Environmental, Health, and Safety Matters.

          (i) Each of Target and their respective predecessors and Affiliates
     has complied and is in compliance, in each case in all material respects,
     with all Environmental, Health, and Safety Requirements.

          (ii) Without limiting the generality of the foregoing, each of Target,
     and their respective Affiliates, has obtained, has complied, and is in
     compliance with, in each case in all material respects, all material
     permits, licenses and other authorizations that are required pursuant to
     Environmental, Health, and Safety Requirements for the occupation of its

                                       18

<PAGE>

     facilities and the operation of its business; a list of all such material
     permits, licenses and other authorizations is set forth on ss.4(x) of the
     Disclosure Schedule.

          (iii) Neither Target nor their respective Affiliates has received any
     written or oral notice, report or other information regarding any actual or
     alleged material violation of Environmental, Health, and Safety
     Requirements, or any material liabilities or potential material liabilities
     (whether accrued, absolute, contingent, unliquidated or otherwise),
     including any material investigatory, remedial or corrective obligations,
     relating to any of them or its facilities arising under Environmental,
     Health, and Safety Requirements.

          (iv) Except as set forth on ss.4(x) of the Disclosure Schedule, none
     of the following exists at any property or facility owned or operated by
     Target: (1) underground storage tanks, (2) asbestos-containing material in
     any friable and damaged form or condition, (3) materials or equipment
     containing polychlorinated biphenyls, or (4) landfills, surface
     impoundments, or disposal areas.

          (v) Neither Target nor any of their respective predecessors or
     Affiliates has treated, stored, disposed of, arranged for or permitted the
     disposal of, transported, handled, or released any substance, including
     without limitation any hazardous substance, or owned or operated any
     property or facility (and no such property or facility is contaminated by
     any such substance) in a manner that has given or would give rise to
     material liabilities, including any material liability for response costs,
     corrective action costs, personal injury, property damage, natural
     resources damages or attorney fees, pursuant to the Comprehensive
     Environmental Response, Compensation and Liability Act of 1980, as amended
     ("CERCLA") or the Solid Waste Disposal Act, as amended ("SWDA") or any
     other Environmental, Health, and Safety Requirements.

          (vi) Neither this Agreement nor the consummation of the transaction
     that is the subject of this Agreement will result in any material
     obligations for site investigation or cleanup, or notification to or
     consent of government agencies or third parties, pursuant to any of the
     so-called "transaction-triggered" or "responsible property transfer"
     Environmental, Health, and Safety Requirements.

     (y) Business Continuity. None of the computer software, computer hardware
(whether general or special purpose), telecommunications capabilities (including
all voice, data and video networks) and other similar or related items of
automated, computerized, and/or software systems and any other networks or
systems and related services that are used by or relied on by Target in the
conduct of their respective businesses (collectively, the "Systems") have
experienced bugs, failures, breakdowns, or continued substandard performance in
the past twelve (12) months that has caused any substantial disruption or
interruption in or to the use of any such Systems by Target. Target is covered
by business interruption insurance in scope and amount customary and reasonable
to ensure the ongoing business operations of Target's respective businesses.

     (z) Disclosure. The representations and warranties contained in this ss.4
do not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements and information
contained in this ss.4 not misleading.

     5. Pre-Closing Covenants. The Parties agree as follows with respect to the
period between the execution of this Agreement and the Closing.

     (a) General. Each of the Parties will use his or its reasonable best
efforts to take all action and to do all things necessary, proper, or advisable
in order to consummate and make effective the transactions contemplated by this
Agreement (including satisfaction, but not waiver, of the closing conditions set
forth in ss.7 below).

     (b) Operation of Business. Sellers will not cause or permit Target to
engage in any practice, take any action, or enter into any transaction outside
the Ordinary Course of Business. Without limiting the generality of the
foregoing, Sellers will not cause or permit Target to (i) declare, set aside, or
pay any dividend or make any distribution with respect to its capital stock or
redeem, purchase, or otherwise acquire any of its capital stock, or (ii)
otherwise engage in any practice, take any action, or enter into any transaction
of the sort described in ss.4(g) above.

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<PAGE>

     (c) Preservation of Business. Sellers will cause Target to keep its
business and properties substantially intact, including its present operations,
physical facilities, working conditions, insurance policies, and relationships
with lessors, licensors, suppliers, customers, and employees.

     (d) Full Access. Each Seller will permit, and the Sellers will cause Target
to permit, representatives of Buyer (including legal counsel and accountants) to
have full access at all reasonable times, and in a manner so as not to interfere
with the normal business operations of Target, to all premises, properties,
personnel, books, records (including tax records), contracts, and documents of
or pertaining to Target. Buyer will treat and hold as such any Confidential
Information it receives from any of Sellers and Target in the course of the
reviews contemplated by this ss.5(d), will not use any of the Confidential
Information except in connection with this Agreement, and, if this Agreement is
terminated for any reason whatsoever, will return to Sellers and Target all
tangible embodiments (and all copies) of the Confidential Information which are
in its possession.

     (e) Notice of Developments. Sellers will give prompt written notice to
Buyer of any material adverse development causing a breach of any of the
representations and warranties in ss.4 above. Each Party will give prompt
written notice to the others of any material adverse development causing a
breach of any of his, her, or its own representations and warranties in ss.3
above. No disclosure by any Party pursuant to this ss.5(e), however, shall be
deemed to amend or supplement Annex I, Annex II, or the Disclosure Schedule or
to prevent or cure any misrepresentation, breach of warranty, or breach of
covenant.

     (f) Leases. Sellers will not cause or permit Target Lease to be amended,
modified, extended, renewed or terminated, nor shall Target enter into any new
lease, sublease, license or other agreement for the use or occupancy of any real
property, without the prior written consent of Buyer.

     (g) Tax Matters. Without the prior written consent of Buyer, Target shall
not make or change any election, change an annual accounting period, adopt or
change any accounting method, file any amended Tax Return, enter into any
closing agreement, settle any Tax claim or assessment relating to Target,
surrender any right to claim a refund of Taxes, consent to any extension or
waiver of the limitation period applicable to any Tax claim or assessment
relating to Target, or take any other similar action relating to the filing of
any Tax Return or the payment of any Tax, if such election, adoption, change,
amendment, agreement, settlement, surrender, consent or other action would have
the effect of increasing the Tax liability of Target for any period ending after
the Closing Date or decreasing any Tax attribute of Target existing on the
Closing Date.

     6. Post-Closing Covenants. The Parties agree as follows with respect to the
period following the Closing.

     (a) General. In case at any time after the Closing any further action is
necessary to carry out the purposes of this Agreement, each of the Parties will
take such further action (including the execution and delivery of such further
instruments and documents) as any other Party reasonably may request, all at the
sole cost and expense of the requesting Party (unless the requesting Party is
entitled to indemnification therefor under ss.8 below). Sellers acknowledge and
agree that from and after the Closing Buyer will be entitled to possession of
all documents, books, records (including tax records), agreements, and financial
data of any sort relating to Target.

     (b) Litigation Support. In the event and for so long as any Party actively
is contesting or defending against any action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand in connection with (i) any
transaction contemplated under this Agreement or (ii) any fact, situation,
circumstance, status, condition, activity, practice, plan, occurrence, event,
incident, action, failure to act, or transaction on or prior to the Closing Date
involving Target, each of the other Parties will cooperate with him, her, or it
and his, her, or its counsel in the contest or defense, make available their
personnel, and provide such testimony and access to their books and records as
shall be necessary in connection with the contest or defense, all at the sole
cost and expense of the contesting or defending Party (unless the contesting or
defending Party is entitled to indemnification therefor under ss.8 below).

     (c) Transition. No Seller shall take any action that is designed or
intended to have the effect of discouraging any lessor, licensor, customer,
supplier, or other business associate of Target from maintaining the same
business relationships with Target after the Closing as it maintained with
Target prior to the Closing.

                                       20

<PAGE>

     (d) Confidentiality. Each Seller will treat and hold as such all of the
Confidential Information, refrain from using any of the Confidential Information
except in connection with this Agreement, and deliver promptly to Buyer or
destroy, at the request and option of Buyer, all tangible embodiments (and all
copies) of the Confidential Information which are in his, her, or its
possession. In the event that any Seller is requested or required pursuant to
oral or written question or request for information or documents in any legal
proceeding, interrogatory, subpoena, civil investigative demand, or similar
process to disclose any Confidential Information, that Seller will notify Buyer
promptly of the request or requirement so that Buyer may seek an appropriate
protective order or waive compliance with the provisions of this ss.6(d). If, in
the absence of a protective order or the receipt of a waiver hereunder, any
Seller is, on the advice of counsel, compelled to disclose any Confidential
Information to any tribunal or else stand liable for contempt, that Seller may
disclose the Confidential Information to the tribunal; provided, however, that
the disclosing Seller shall use his, her, or its reasonable best efforts to
obtain, at the reasonable request of Buyer, an order or other assurance that
confidential treatment will be accorded to such portion of the Confidential
Information required to be disclosed as Buyer shall designate.

     (e) Covenant Not to Compete. For a period of two (2) years from and after
the Closing Date, no Seller will engage directly or indirectly in any business
that Target conducts as of the Closing Date in any geographic area in which
Target conducts that business as of the Closing Date; provided, however, that no
owner of less than 1% of the outstanding stock of any publicly-traded
corporation shall be deemed to engage solely by reason thereof in any of its
businesses. If the final judgment of a court of competent jurisdiction declares
that any term or provision of this ss.6(e) is invalid or unenforceable, the
Parties agree that the court making the determination of invalidity or
unenforceability shall have the power to reduce the scope, duration, or area of
the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified after the expiration of the time within which the
judgment may be appealed.

     (f) Buyer Notes. Each Buyer Note shall be imprinted with a legend
substantially in the following form:

     This Note was originally issued on July 21, 2004, and has not been
     registered under the Securities Act of 1933, as amended. The sale or
     transfer of this Note is subject to certain restrictions set forth in the
     Purchase Agreement. The issuer of this Note will furnish a copy of these
     provisions to the holder hereof without charge upon written request.

Each holder desiring to transfer a Buyer Note first must furnish Buyer with (i)
a written opinion reasonably satisfactory to Buyer in form and substance from
counsel reasonably satisfactory to Buyer by reason of experience to the effect
that the holder may transfer the Buyer Note as desired without registration
under the Securities Act and (ii) a written undertaking executed by the desired
transferee reasonably satisfactory to Buyer in form and substance agreeing to be
bound by the restrictions on transfer contained herein.

     (g) Buyer Securities. Each Buyer Security shall be imprinted with a legend
substantially in the following form:

     This Security was originally issued on July 21, 2004, and has not been
     registered under the Securities Act of 1933, as amended. The sale or
     transfer of this Security is subject to certain restrictions set forth in
     the Purchase Agreement. The issuer of this Security will furnish a copy of
     these provisions to the holder hereof without charge upon written request.

Each holder desiring to transfer a Buyer Note first must furnish Buyer with (i)
a written opinion reasonably satisfactory to Buyer in form and substance from
counsel reasonably satisfactory to Buyer by reason of experience to the effect
that the holder may transfer the Buyer Note as desired without registration
under the Securities Act and (ii) a written undertaking executed by the desired
transferee reasonably satisfactory to Buyer in form and substance agreeing to be
bound by the restrictions on transfer contained herein.

                                       21

<PAGE>

     7. Conditions to Obligation to Close.

     (a) Conditions to Buyer's Obligation. The obligation of the Buyer to
consummate the transactions to be performed by it in connection with the Closing
is subject to satisfaction of the following conditions:

          (i) Sellers and Sellers on behalf of Target shall have made delivery
     to Buyer of any and all documents, financial statements (including, but not
     limited to all financial statements set forth at ss.4(f)), authorizations,
     consents and any and all other items of Sellers and Target required for
     delivery to Buyer to consummate the transactions contemplated by this
     Agreement.

          (ii) The representations and warranties set forth in ss.3(a) and ss.4
     above shall be true and correct in all material respects at and as of the
     Closing Date, except to the extent that such representations and warranties
     are qualified by terms such as "material" and "Material Adverse Effect," in
     which case such representations and warranties shall be true and correct in
     all respects at and as of the Closing Date;

          (iii) Sellers shall have performed and complied with all of their
     covenants hereunder in all material respects through the Closing, except to
     the extent that such covenants are qualified by terms such as "material"
     and "Material Adverse Effect," in which case Sellers shall have performed
     and complied with all of such covenants in all respects through the
     Closing;

          (iv) Target shall have procured any and all third party consents
     required by this Agreement;

          (v) no action, suit, or proceeding shall be pending before any court
     or quasi-judicial or administrative agency of any federal, state, local, or
     foreign jurisdiction or before any arbitrator wherein an unfavorable
     injunction, judgment, order, decree, ruling, or charge would (A) prevent
     consummation of any of the transactions contemplated by this Agreement, (B)
     cause any of the transactions contemplated by this Agreement to be
     rescinded following consummation, (C) affect adversely the right of Buyer
     to own Target Shares and to control Target, or (D) affect materially and
     adversely the right of Target to own its assets and to operate its
     businesses (and no such injunction, judgment, order, decree, ruling, or
     charge shall be in effect);

          (vi) Sellers shall have delivered to Buyer a certificate to the effect
     that each of the conditions specified above in ss.7(a)(i)-(iv) is satisfied
     in all respects;

          (vii) all applicable waiting periods (and any extensions thereof)
     under the Hart-Scott-Rodino Act shall have expired or otherwise been
     terminated and the Parties and Target, shall have received all other
     material authorizations, consents, and approvals of governments and
     governmental agencies referred to in ss.3(a)(ii), ss.3(b)(ii), and ss.4(c)
     above;

          (viii) all actions to be taken by Sellers in connection with
     consummation of the transactions contemplated hereby and all certificates,
     opinions, instruments, and other documents required to effect the
     transactions contemplated hereby will be reasonably satisfactory in form
     and substance to Buyer;

          (ix) Target shall have obtained and delivered to Buyer a written
     consent for the assignment of each of the Leases, and, if requested by any
     of Buyer's secured lenders in connection with any Material Leased Real
     Property, a waiver of landlord liens, collateral assignment of lease or
     leasehold mortgage from the landlord or other party whose consent thereto
     is required under such Lease (the "Lease Consents"), in form and substance
     satisfactory to Buyer and any Buyer secured lender;

          (x) Target shall deliver to Buyer an affidavit, under penalties of
     perjury, stating that Target is not and has not been a United States real
     property holding corporation, dated as of the Closing Date and in form and
     substance required under Treasury Regulation ss.1.897-2(h) so that Buyer is
     exempt from withholding any portion of the Purchase Price thereunder (the
     "FIRPTA Affidavit");

                                       22

<PAGE>

          (xi) Each of Ralph Garcia and Michelle Barkan shall have entered into
     employment and equity agreements with Buyer on terms reasonably
     satisfactory to Buyer, and such agreements shall be in full force and
     effect as of the Closing;

          (b) Conditions to Sellers' Obligation. The Sellers' obligation to
     consummate the transactions to be performed by them in connection with the
     Closing is subject to satisfaction of the following conditions:

          (i) the representations and warranties set forth in ss.3(b) above
     shall be true and correct in all material respects at and as of the Closing
     Date, except to the extent that such representations and warranties are
     qualified by terms such as "material" and "Material Adverse Effect," in
     which case such representations and warranties shall be true and correct in
     all respects at and as of the Closing Date;

          (ii) the Buyer shall have performed and complied with all of its
     covenants hereunder in all material respects through the Closing, except to
     the extent that such covenants are qualified by terms such as "material"
     and "Material Adverse Effect," in which case Buyer shall have performed and
     complied with all of such covenants in all respects through the Closing;

          (iii) no action, suit, or proceeding shall be pending before any court
     or quasi-judicial or administrative agency of any federal, state, local, or
     foreign jurisdiction or before any arbitrator wherein an unfavorable
     injunction, judgment, order, decree, ruling, or charge would (A) prevent
     consummation of any of the transactions contemplated by this Agreement or
     (B) cause any of the transactions contemplated by this Agreement to be
     rescinded following consummation (and no such injunction, judgment, order,
     decree, ruling, or charge shall be in effect);

          (iv) Buyer shall have delivered to Sellers a certificate to the effect
     that each of the conditions specified above in ss.7(b)(i)-(iii) is
     satisfied in all respects;

          (v) all applicable waiting periods (and any extensions thereof) under
     the Hart-Scott-Rodino Act shall have expired or otherwise been terminated
     and] the Parties and Target shall have received all [other] material
     authorizations, consents, and approvals of governments and governmental
     agencies referred to in ss.3(a)(ii), ss.3(b)(ii), and ss.4(c) above;

          (vi) Buyer shall have delivered to Sellers Buyer Notes as set forth in
     ss.2(b) and certificates of stock representing the stock being transferred
     to Sellers as part of the Purchase Price pursuant to ss.2(b).

          (vi) all actions to be taken by Buyer in connection with consummation
     of the transactions contemplated hereby and all certificates, opinions,
     instruments, and other documents required to effect the transactions
     contemplated hereby will be reasonably satisfactory in form and substance
     to Sellers.

Requisite Sellers may waive any condition specified in this ss.7(b) on behalf of
Sellers if they execute a writing so stating at or prior to the Closing.

     8. Remedies for Breaches of This Agreement.

     (a) Survival of Representations and Warranties. All of the representations
and warranties of the Parties shall survive the Closing hereunder (even if the
Parties knew or had reason to know of any misrepresentation or breach of
warranty at the time of Closing) and continue in full force and effect forever
thereafter (subject to any applicable statute of limitations).

     (b) Indemnification Provisions for Buyer's Benefit.

          (i) In the event any Seller breaches any of his, her, or its
     representations, warranties, covenants, or obligations (including but not
     limited to delivery and execution of items required to be delivered under
     this Agreement) contained herein, and provided that Buyer makes a written

                                       23

<PAGE>

     claim for indemnification against any Seller pursuant to ss.11(h) below,
     then each Seller shall be obligated jointly and severally to defend,
     indemnify and hold harmless Buyer from and against the entirety of any
     Adverse Consequences Buyer may suffer resulting from, arising out of,
     relating to, in the nature of, or caused by the breach including, but not
     limited to reasonable attorney's fees, costs and expenses.

          (ii) Each Seller shall be obligated jointly and severally to indemnify
     Buyer from and against the entirety of any Adverse Consequences Buyer may
     suffer resulting from, arising out of, relating to, in the nature of, or
     caused by any failure of Seller to satisfy any obligations, warranties,
     representations, conditions or any other responsibilities or acts required
     to be performed by Seller pursuant to the terms of this Agreement
     including, but not limited to reasonable attorney's fees, costs and
     expenses.

          (iii) Any indemnification provided in ss.8(b) shall survive the
     Closing Date.

     (c) Indemnification Provisions for Sellers' Benefit.

          (i) In the event Buyer breaches any of its representations,
     warranties, covenants, or obligations (including but not limited to
     delivery and execution of items required to be delivered under this
     Agreement) contained herein, and provided that Seller makes a written claim
     for indemnification against Buyer pursuant to ss.11(h) below, then the
     Buyer shall be obligated to defend, indemnify and hold harmless Seller from
     and against the entirety of any Adverse Consequences Seller may suffer
     resulting from, arising out of, relating to, in the nature of, or caused by
     the breach including, but not limited to reasonable attorney's fees, costs
     and expenses.

          (ii) The Buyer shall be obligated to indemnify Seller from and against
     the entirety of any Adverse Consequences Seller may suffer resulting from,
     arising out of, relating to, in the nature of, or caused by any failure of
     Buyer to satisfy any obligations, warranties, representations, conditions
     or any other responsibilities or acts required to be performed by Buyer
     pursuant to the terms of this Agreement including, but not limited to
     reasonable attorney's fees, costs and expenses.

          (iii) Any indemnification provided in ss.8(c) shall survive the
     Closing Date.

     (d) Matters Involving Third Parties.

          (i) If any third party shall notify any Party (the "Indemnified
     Party") with respect to any matter (a "Third Party Claim") which may give
     rise to a claim for indemnification against any other Party (the
     "Indemnifying Party") under this ss.8, then the Indemnified Party shall
     promptly notify each Indemnifying Party thereof in writing; provided,
     however, that no delay on the part of the Indemnified Party in notifying
     any Indemnifying Party shall relieve the Indemnifying Party from any
     obligation hereunder unless (and then solely to the extent) the
     Indemnifying Party thereby is prejudiced.

          (ii) Any Indemnifying Party will have the right to defend the
     Indemnified Party against the Third Party Claim with counsel of its choice
     [reasonably] satisfactory to the Indemnified Party so long as (A) the
     Indemnifying Party notifies the Indemnified Party in writing within [15
     days] after the Indemnified Party has given notice of the Third Party Claim
     that the Indemnifying Party will indemnify the Indemnified Party from and
     against the entirety of any Adverse Consequences the Indemnified Party may
     suffer resulting from, arising out of, relating to, in the nature of, or
     caused by the Third Party Claim, (B) the Indemnifying Party provides the
     Indemnified Party with evidence [reasonably] acceptable to the Indemnified
     Party that the Indemnifying Party will have the financial resources to
     defend against the Third Party Claim and fulfill its indemnification
     obligations hereunder, (C) the Third Party Claim involves only money
     damages and does not seek an injunction or other equitable relief, (D)
     settlement of, or an adverse judgment with respect to, the Third Party
     Claim is not, in the good faith judgment of the Indemnified Party, likely
     to establish a precedential custom or practice [materially] adverse to the
     continuing business interests or the reputation of the Indemnified Party,
     and (E) the Indemnifying Party conducts the defense of the Third Party
     Claim actively and diligently.

                                       24

<PAGE>

          (iii) So long as the Indemnifying Party is conducting the defense of
     the Third Party Claim in accordance with ss.8(d)(ii) above, (A) the
     Indemnified Party may retain separate co-counsel at its sole cost and
     expense and participate in the defense of the Third Party Claim, (B) the
     Indemnified Party will not consent to the entry of any judgment or enter
     into any settlement with respect to the Third Party Claim without the prior
     written consent of the Indemnifying Party [(not to be withheld
     unreasonably)], and (C) the Indemnifying Party will not consent to the
     entry of any judgment or enter into any settlement with respect to the
     Third Party Claim without the prior written consent of the Indemnified
     Party [(not to be withheld unreasonably)].

          (iv) In the event any of the conditions in ss.8(d)(ii) above is or
     becomes unsatisfied, however, (A) the Indemnified Party may defend against,
     and consent to the entry of any judgment or enter into any settlement with
     respect to, the Third Party Claim in any manner it [reasonably] may deem
     appropriate (and the Indemnified Party need not consult with, or obtain any
     consent from, any Indemnifying Party in connection therewith), (B) the
     Indemnifying Parties will reimburse the Indemnified Party promptly and
     periodically for the costs of defending against the Third Party Claim
     (including [reasonable] attorneys' fees and expenses), and (C) the
     Indemnifying Parties will remain responsible for any Adverse Consequences
     the Indemnified Party may suffer resulting from, arising out of, relating
     to, in the nature of, or caused by the Third Party Claim to the fullest
     extent provided in this ss.8.

     (e) Determination of Adverse Consequences. Indemnification payments under
this ss.8 and ss.9 shall be paid by the Indemnifying Party without reduction for
any Tax Benefits available to the Indemnified Party. However, to the extent that
the Indemnified Party recognizes Tax Benefits as a result of any Adverse
Consequences, the Indemnified Party shall pay the amount of such Tax Benefits
(but not in excess of the indemnification payment or payments actually received
from the Indemnifying Party with respect to such Adverse Consequences) to the
Indemnifying Party as such Tax Benefits are actually recognized by the
Indemnified Party. For this purpose, the Indemnified Party shall be deemed to
recognize a tax benefit ("Tax Benefit") with respect to a taxable year if, and
to the extent that, the Indemnified Party's cumulative liability for Taxes
through the end of such taxable year, calculated by excluding any Tax items
attributable to the Adverse Consequences from all taxable years, exceeds the
Indemnified Party's actual cumulative liability for Taxes through the end of
such taxable year, calculated by taking into account any Tax items attributable
to the Adverse Consequences for all taxable years (to the extent permitted by
relevant Tax law and treating such Tax items as the last items claimed for any
taxable year). The Parties shall make appropriate adjustments for insurance
coverage and take into account the time cost of money (using the Applicable Rate
as the discount rate) in determining Adverse Consequences for purposes of this
ss.8. All indemnification payments under this ss.8 and ss.9 shall be deemed
adjustments to the Purchase Price.

     (f) Other Indemnification Provisions. The foregoing indemnification
provisions are in addition to, and not in derogation of, any statutory,
equitable, or common law remedy (including without limitation any such remedy
arising under Environmental, Health, and Safety Requirements) any Party may have
with respect to Target, its Subsidiaries, or the transactions contemplated by
this Agreement. Each Seller hereby agrees that he, she, or it will not make any
claim for indemnification against any of Target and its Subsidiaries by reason
of the fact that he, she, or it was a director, officer, employee, or agent of
any such entity or was serving at the request of any such entity as a partner,
trustee, director, officer, employee, or agent of another entity (whether such
claim is for judgments, damages, penalties, fines, costs, amounts paid in
settlement, losses, expenses, or otherwise and whether such claim is pursuant to
any statute, charter document, bylaw, agreement, or otherwise) with respect to
any action, suit, proceeding, complaint, claim, or demand brought by Buyer
against such Seller (whether such action, suit, proceeding, complaint, claim, or
demand is pursuant to this Agreement, applicable law, or otherwise).

     9. Tax Matters. The following provisions shall govern the allocation of
responsibility as between Buyer and Sellers for certain tax matters following
the prior to and following the Closing Date:

     (a) Tax Indemnification. Each Seller shall [jointly and severally]
indemnify Target, Buyer, and each Buyer Affiliate and hold them harmless from
and against (i) all Income Taxes (or the non-payment thereof) of Target for all

                                       25

<PAGE>

Taxable periods prior to Target's fiscal 2003, (ii) any and all Income Taxes of
any member of an affiliated, consolidated, combined, or unitary group of which
Target (or any predecessor of any of the foregoing) is or was a member on or
prior to the Closing Date, including pursuant to Treasury Regulation ss.1.1502-6
or any analogous or similar state, local, or foreign law or regulation, and
(iii) any and all Income Taxes of any person (other than Target) imposed on
Target as a transferee or successor, by contract or pursuant to any law, rule or
regulation, which Taxes relate to an event or transaction occurring before the
Closing; provided, however, that in the case of clauses (i), (ii) and (iii)
above, Sellers shall be liable only to the extent that such Income Taxes are in
excess of the amount, if any, reserved for such Taxes (excluding any reserve for
deferred Taxes established to reflect timing differences between book and Tax
income) on the face of the Most Recent Balance Sheet (rather than in any notes
thereto) [, as such reserve is adjusted for the passage of time through the
Closing Date in accordance with past custom and practice of Target in filing
their Tax Returns].

     (b) Straddle Period. In the case of any Taxable period that includes (but
does not end on) the Closing Date (a "Straddle Period"), the amount of any
Income Taxes for the Pre-Closing Tax Period shall be determined based on an
interim closing of the books as of the close of business on the Closing Date
(and for such purpose, the Taxable period of any partnership or other
pass-through entity in which Target holds a beneficial interest shall be deemed
to terminate at such time).

     (c) Responsibility for Filing Tax Returns. Buyer shall prepare or caused to
be prepared and file or caused to be filed all Income Tax Returns for Target
which are filed after the Closing Date [other than income Tax Returns with
respect to periods for which a consolidated, unitary or combined income Tax
Return of Seller will include the operations of Target]. Buyer shall permit
Sellers to review and comment on each such Income Tax Return described in the
preceding sentence prior to filing and shall make such revisions to such Income
Tax Returns as are reasonably requested by Sellers.

     (d) Refunds and Tax Benefits. Any Income Tax refunds that are received by
Buyer or Target, and any amounts credited against Income Tax to which Buyer or
Target become entitled, that relate to Income Tax periods or portions thereof
ending on or before the Closing Date shall be for the account of Seller, and
Buyer shall pay over to Seller any such refund or the amount of any such credit
within fifteen (15) days after receipt or entitlement thereto. In addition, to
the extent that a claim for refund or a proceeding results in a payment or
credit against Income Tax by a taxing authority to Buyer or Target of any amount
accrued on the Closing Balance Sheet, Buyer shall pay such amount to Sellers
within fifteen (15) days after receipt or entitlement thereto.

     (e) Cooperation on Tax Matters.

          (i) Buyer, the Target and Sellers shall cooperate fully, as and to the
     extent reasonably requested by the other Party, in connection with the
     filing of Tax Returns pursuant to this ss.9 and any audit, litigation or
     other proceeding with respect to Taxes. Such cooperation shall include the
     retention and (upon the other Party's request) the provision of records and
     information which are reasonably relevant to any such audit, litigation or
     other proceeding and making employees available on a mutually convenient
     basis to provide additional information and explanation of any material
     provided hereunder. Target and Sellers agree (A) to retain all books and
     records with respect to Tax matters pertinent to Target relating to any
     taxable period beginning before the Closing Date until the expiration of
     the statute of limitations (and, to the extent notified by Buyer or
     Sellers, any extensions thereof) of the respective taxable periods, and to
     abide by all record retention agreements entered into with any taxing
     authority, and (B) to give the other Party reasonable written notice prior
     to transferring, destroying or discarding any such books and records and,
     if the other Party so requests, Target or Sellers, as the case may be,
     shall allow the other Party to take possession of such books and records.

          (ii) Buyer and Sellers further agree, upon request, to use their best
     efforts to obtain any certificate or other document from any governmental
     authority or any other Person as may be necessary to mitigate, reduce or
     eliminate any Tax that could be imposed (including, but not limited to,
     with respect to the transactions contemplated hereby).

          (iii) Buyer and Sellers further agree, upon request, to provide the
     other Party with all information that either Party may be required to
     report pursuant to Code ss.6043 and all Treasury Regulations promulgated
     thereunder.

                                       26

<PAGE>

     (f) Tax Sharing Agreements. All Tax sharing agreements or similar
agreements with respect to or involving Target shall be terminated as of the
Closing Date and, after the Closing Date, Target shall not be bound thereby or
have any liability thereunder.

     (g) Certain Taxes and Fees. All transfer, documentary, sales, use, stamp,
registration and other such Taxes, and all conveyance fees, recording charges
and other fees and charges (including any penalties and interest) incurred in
connection with the consummation of the transactions contemplated by this
Agreement shall be borne 50% by Buyer and 50% by Sellers.

     10. Termination.

     (a) Termination of Agreement. Certain of the Parties may terminate this
Agreement as provided below:

          (i) Buyer and Requisite Sellers may terminate this Agreement by mutual
     written consent at any time prior to the Closing;

          (ii) Buyer may terminate this Agreement by giving written notice to
     Requisite Sellers at any time prior to the Closing (A) in the event any
     Seller has breached any material representation, warranty, or covenant
     contained in this Agreement in any material respect, Buyer has notified
     Requisite Sellers of the breach, and the breach has continued without cure
     for a period of [30 days] after the notice of breach or (B) if the Closing
     shall not have occurred on or before July 30, 2004, by reason of the
     failure of any condition precedent under ss.7(a) hereof (unless the failure
     results primarily from Buyer itself breaching any representation, warranty,
     or covenant contained in this Agreement); and

          (iii) Requisite Sellers may terminate this Agreement by giving written
     notice to Buyer at any time prior to the Closing (A) in the event Buyer has
     breached any material representation, warranty, or covenant contained in
     this Agreement in any material respect, any Seller has notified Buyer of
     the breach, and the breach has continued without cure for a period of [30
     days] after the notice of breach or (B) if the Closing shall not have
     occurred on or before July 30, 2004, by reason of the failure of any
     condition precedent under ss.7(b) hereof (unless the failure results
     primarily from any Seller breaching any representation, warranty, or
     covenant contained in this Agreement).

     (b) Effect of Termination. If any Party terminates this Agreement pursuant
to ss.10(a) above, all rights and obligations of the Parties hereunder shall
terminate without any liability of any Party to any other Party (except for any
liability of any Party then in breach); provided, however, that the
confidentiality provisions contained in ss.5(e) above shall survive termination.

     11. Miscellaneous.

     (a) Nature of Certain Obligations.

          (i) The covenants of each Seller in ss.2(a) above concerning the sale
     of his, her, or its Target Shares to Buyer and the representations and
     warranties of each Seller in ss.3(a) above concerning the transaction are
     individual obligations. This means that the particular Seller making the
     representation, warranty, or covenant shall be solely responsible to the
     extent provided in ss.8 above for any Adverse Consequences Buyer may suffer
     as a result of any breach thereof.

          (ii) The remainder of the representations, warranties, and covenants
     in this Agreement are joint and several obligations. This means that each
     Seller shall be responsible to the extent provided in ss.8 above for the
     entirety of any Adverse Consequences Buyer may suffer as a result of any
     breach thereof.

     (b) Press Releases and Public Announcements. No Party shall issue any press
release or make any public announcement relating to the subject matter of this
Agreement [prior to the Closing] without the prior written approval of Buyer and
Requisite Sellers; provided, however, that any Party may make any public
disclosure it believes in good faith is required by applicable law or any
listing or trading agreement concerning its publicly-traded securities (in which
case the disclosing Party will use its [reasonable] best efforts to advise the
other Parties prior to making the disclosure).

                                       27

<PAGE>

     (c) No Third-Party Beneficiaries. This Agreement shall not confer any
rights or remedies upon any Person other than the Parties and their respective
successors and permitted assigns.

     (d) Entire Agreement. This Agreement (including the documents referred to
herein) constitutes the entire agreement among the Parties and supersedes any
prior understandings, agreements, or representations by or among the Parties,
written or oral, to the extent they relate in any way to the subject matter
hereof.

     (e) Succession and Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective successors
and permitted assigns. No Party may assign either this Agreement or any of his
or its rights, interests, or obligations hereunder without the prior written
approval of Buyer and Requisite Sellers; provided, however, that Buyer may (i)
assign any or all of its rights and interests hereunder to one or more of its
Affiliates and (ii) designate one or more of its Affiliates to perform its
obligations hereunder (in any or all of which cases Buyer nonetheless shall
remain responsible for the performance of all of its obligations hereunder).

     (f) Counterparts. This Agreement may be executed in one or more
counterparts (including by means of facsimile), each of which shall be deemed an
original but all of which together will constitute one and the same instrument.

     (g) Headings. The section headings contained in this Agreement are inserted
for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

     (h) Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given (i) when delivered
personally to the recipient, (ii) one business day after being sent to the
recipient by reputable overnight courier service (charges prepaid), (iii) one
business day after being sent to the recipient by facsimile transmission or
electronic mail, or (iv) four business days after being mailed to the recipient
by certified or registered mail, return receipt requested and postage prepaid,
and addressed to the intended recipient as set forth below:

     If to Sellers:                                If to Buyer:

     Ralph Garcia and Michele Barkan               John Sawyer, President

     6900 S. Park Ave.                             Renegade Venture Corporation

     Tucson, AZ 85706                              6901 S. Park Ave.

     Fax - 520-806-8454                            Tucson, AZ 85706

                                                   Fax - 520-741-1430

     Any Party may change the address to which notices, requests, demands,
claims, and other communications hereunder are to be delivered by giving the
other Parties notice in the manner herein set forth.

     (i) Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of Arizona without giving effect
to any choice or conflict of law provision or rule (whether of the State of
Arizona or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Arizona.

     (j) Amendments and Waivers. No amendment of any provision of this Agreement
shall be valid unless the same shall be in writing and signed by Buyer and
Requisite Sellers. No waiver by any Party of any provision of this Agreement or
any default, misrepresentation, or breach of warranty or covenant hereunder,
whether intentional or not, shall be valid unless the same shall be in writing
and signed by the Party making such waiver nor shall such waiver be deemed to
extend to any prior or subsequent default, misrepresentation, or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue
of any prior or subsequent such occurrence.

                                       28

<PAGE>

     (k) Severability. Any term or provision of this Agreement that is invalid
or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

     (l) Expenses. Each of Buyer, Sellers and Target, will bear his, her, or its
own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby;
provided, however, that (except as provided in ss.9(g) above) Sellers will also
bear the cost and expenses of Target (including all of their legal fees and
expenses) in connection with this Agreement and the transactions contemplated
hereby in the event that the transactions contemplated by this Agreement are
consummated.

     (m) Construction. The Parties have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted
jointly by the Parties and no presumption or burden of proof shall arise
favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation.

     (n) Incorporation of Exhibits, Annexes, and Schedules. The Exhibits,
Annexes, and Schedules identified in this Agreement are incorporated herein by
reference and made a part hereof.

     (o) Governing Language. This Agreement has been negotiated and executed by
the Parties in English. In the event any translation of this Agreement is
prepared for convenience or any other purpose, the provisions of the English
version shall prevail.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on as of
July 1, 2004.

BUYER                                       SELLERS

RENEGADE VENTURE CORPORATION

-----------------------------               --------------------------------
John Sawyer, President                      Ralph Garcia

                                            --------------------------------
                                            Michele Barkan

                                       29

<PAGE>

                                    EXHIBIT A

                                 PROMISSORY NOTE
                                       OF
                          RENEGADE VENTURE CORPORATION
                                 (BUYER'S NOTE)

Principal Amount: $300,000.00                        Date of Note: July 27, 2004

1.   FOR VALUE RECEIVED, the undersigned, Renegade Venture Corporation, a Nevada
     corporation, ("Maker") promises to pay to the order of Ralph Garcia and
     Michelle Barkan jointly, and not severally (collectively "Payee"), at 6900
     S. Park Avenue, Tucson, AZ 85706 or such other place as the Payee may
     designate in writing to the undersigned, the principal amount of Three
     Hundred Thousand and 00/100 Dollars ($300,000.00) together with interest
     from the date hereof on the unpaid principal balance until paid, at the
     rate of Six Percent (6%) per annum as follows:

     Maker agrees to pay interest only of One Thousand Five Hundred and 00/100
     Dollars ($1,500.00) on a monthly basis and the principal amount plus any
     accrued and unpaid interest on January 27, 2005, (the "Maturity Date"), at
     which time the full amount of outstanding principal and accrued and unpaid
     interest shall be due and payable and shall be paid to Payee; the first of
     such installment payments of interest is to be made on August 27, 2004, and
     successive payments to be made on the twenty first (27th) day of each and
     every month thereafter until January, 2005 (the "Maturity Date"), at which
     time the full amount of outstanding principal and accrued and unpaid
     interest shall be due and payable and shall be paid to Payee.

2.   All payments made under this Note shall be payable in lawful money of the
     United States of America and shall be made in accordance with the payment
     schedule set forth at paragraph 1 herein. Should interest not be timely
     paid as provided in this Note, it shall thereafter immediately be added to
     principal and bear interest at the rate specified in this Note.

3.   The outstanding principal amount of this Note may be prepaid in whole or in
     part without any prepayment penalty or premium at any time or from time to
     time by Maker upon notice to the Payee.

4.   If payment of monthly interest is not received by Payee within five (5)
     days of the due date for such interest payment, Maker shall pay to Payee a
     late charge equal to ten percent (10%) of the delinquency as liquidated
     damages and not as a penalty, to compensate Payee for the loss of use of
     overdue amounts. The foregoing shall not be construed as obligating the
     Payee to accept any payment after its due date without the payment of
     applicable late charges and other fees due as permitted by applicable law.
     Acceptance of any late charge shall not constitute a waiver of the default
     with respect to the overdue amount, and shall not prevent Payee from
     exercising any of the other rights and remedies available to Payee in the
     event of any subsequent default.

                                       30

<PAGE>

5.   Any one of the following shall constitute, at Payee's election, an "Event
     of Default" under this Note:

     a)   Failure by Maker to make a payment of interest or principal when due
          on this Note within five (5) days after receipt of written notice of
          default;

     b)   Breach of any condition of security interest, pledge of collateral or
          guarantee granted as collateral security for this Note;

     c)   Upon the death, legal incapacity, dissolution, merger, consolidation,
          suspension or liquidation of Maker, or any endorser, guarantor or
          surety hereto;

     d)   Maker fails to comply with or perform any other terms or covenants of
          this Note or pledge of collateral;

     e)   Maker shall become insolvent or bankrupt or admits in writing its
          inability to pay its debts as they fall due, or makes an assignment
          for the benefit of creditors, or applies to any tribunal for the
          appointment of a trustee or receiver for any substantial part of its
          assets, or commences any proceedings under any bankruptcy,
          reorganization, arrangement, insolvency, readjustment of debt,
          dissolution or other liquidation law of any jurisdiction if any such
          application is filed, or any such proceedings are commenced against
          them, and Maker indicates its approval, consent or acquiescence, or an
          order is entered appointing such trustee or receiver, or adjudicating
          Maker bankrupt or insolvent, or approving the petition in any such
          proceedings, and such order remains in effect for thirty (30) days.

6.   Upon the occurrence of an Event of Default under this Note, the Payee shall
     have the right to exercise one of the following remedies:

          (i)  the outstanding principal balance, including accrued but unpaid
               interest and any other charges thereon, shall become immediately
               due and payable upon demand of the Payee. Payee may exercise this
               acceleration option upon the occurrence of an Event of Default at
               a per annum rate which is ten percent (10%) higher than the
               existing interest rate of this Note at the time of the Event of
               Default until all amounts are paid in full; or

          (ii) compel the transfer of all right, title and interest in World Jet
               Corporation from Renegade Venture Corporation to Payee including,
               but not limited to injunctive relief.

7.   MAKER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
     PROTHONOTARY OR CLERK OF ANY COURT IN THE STATE OF ARIZONA, OR ELSEWHERE TO
     APPEAR AT ANY TIME FOR THE MAKER AFTER A DEFAULT UNDER THIS NOTE AND WITH
     OR WITHOUT COMPLAINT FILED, AND CONFESS OR ENTER JUDGMENT AGAINST MAKER FOR
     THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE
     CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY PAYEE RELATING TO
     ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN
     ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE
     AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE
     HUNDRED DOLLARS ($500.00) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE
     EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF

                                       31

<PAGE>

     THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY
     GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST THE MAKER SHALL NOT BE
     EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME
     TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER
     THIS NOTE. MAKER HEREBY WAIVES ANY RIGHT MAKER MAY HAVE TO NOTICE OR TO A
     HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMMENT AND STATES THAT
     EITHER A REPRESENTATIVE OF PAYEE SPECIFICALLY CALLED THIS CONFESSION OF
     JUDGMENT PROVISION TO MAKER'S ATTENTION OR MAKER HAS BEEN REPRESENTED BY
     INDEPENDENT LEGAL COUNSEL.

8.   Except to the extent Payee elects the remedy set forth at paragraph 6(ii),
     no other remedy conferred upon the Payee for any Event of Default described
     in this Note is intended to be exclusive of any other remedy and each and
     every remedy shall be cumulative and shall be in addition to every other
     remedy given under this Note or now hereafter existing at law or in equity
     or by statute or otherwise.

9.   Maker agrees to pay all actual expenditures incurred by Payee or holder in
     any attempt to collect any amount due under this Note, including all costs
     of legal action and reasonable attorneys' fees.

10.  No extension of time for payment granted by Payee of all or any part of the
     amount owing on this Note at any time shall affect the liability of Maker,
     or of any surety, accommodation party, guarantor, or endorser of this Note.
     Acceptance by Payee of any installment after any Event of Default shall not
     operate to extend the time of payment of any amount then remaining unpaid
     or constitute a waiver of any of the other rights of Payee under this Note.
     No delay by Payee in exercising any power or right shall operate as a
     waiver of any power or right. No single or partial exercise of any power or
     right shall preclude other or further exercise of the power or right, or
     the exercise of any other power or right. The waiver of any default or
     grounds for acceleration by Payee shall not operate as a waiver of any
     subsequent default or grounds for acceleration, or of any power or right
     that Payee may have under the terms of this Note.

11.  The terms of this Note shall be binding upon Maker, and upon Maker's
     affiliates, subsidiaries, representatives, successors, assigns, and
     purchasers, and shall inure to the benefit of Payee and their successors or
     assigns. The Maker and all other parties to this Note, whether as
     endorsers, guarantors or sureties, agree to remain fully bound until this
     Note shall be fully paid.

12.  The obligations under this Note are joint and several. If any portion of
     this Note is for any reason determined to be unenforceable, it will not
     affect the enforceability of any other provisions of this Note.

13.  Makers and all sureties, guarantors, and endorsers severally waive demand
     and presentment for payment, notice of dishonor, notice of protest, and
     protest of this Note after the expiration of any cure period set forth
     herein.

                                       32

<PAGE>

14.  No waiver or modification of the terms of this Note shall be valid unless
     in writing, signed by the Maker and Payee. Any modification shall be valid
     only to the extent set forth in writing.

15.  This Note shall be construed under the laws of the State of Arizona,
     including the Uniform Commercial Code, as enacted and in force in the State
     of Arizona.

Pledge of Collateral

16.  As security for its obligations hereunder, Maker hereby assigns, transfers
     and pledges to Payee, and grants Payee a security interest (subordinated
     only in position to a $750,000.00 claim by the Internal Revenue Service
     against Maker's wholly owned subsidiary Hamilton Aerospace Technologies,
     Inc.) in all deposits, payments and/or investments received by Maker or its
     wholly owned subsidiary Hamilton Aerospace Technologies, Inc. from the
     issuance of any debt or equity securities subsequent to the effective date
     of this Note.

THE MAKER AND AUTHORIZED REPRESENTATIVE EXECUTING THIS NOTE ON MAKER'S BEHALF
REPRESENTS AND WARRANTS THAT THEY HAVE FULL POWER AND AUTHORITY TO ENTER THIS
NOTE ON BEHALF OF MAKER AND TO LEGALLY BIND MAKER TO ALL TERMS AND CONDITIONS
CONTAINED IN THIS NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT
THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT
ACCORDING TO LAW.

SEAL                                        MAKER
                                            RENEGADE VENTURE CORPORATION

                                            ----------------------------
                                            John Sawyer, President

                                       33EXHIBIT 4.8

                               THEGLOBE.COM, INC.

                           --------------------------

                            2004 STOCK INCENTIVE PLAN

                           --------------------------

                                    ARTICLE I

                                     PURPOSE

         The purpose of this theglobe.com, Inc. 2004 Stock Incentive Plan is to
enhance the profitability and value of the Company for the benefit of its
stockholders by enabling the Company to offer Eligible Employees, Consultants
and Non-Employee Directors stock-based and other incentives, thereby creating a
means to raise the level of equity ownership by such individuals in order to
attract, retain and reward such individuals and strengthen the mutuality of
interests between such individuals and the Company's stockholders.

                                   ARTICLE II

                                   DEFINITIONS

         For purposes of this Plan, the following terms shall have the following
meanings:

         2.1 "ACQUISITION EVENT" has the meaning set forth in Section 4.2(d).

         2.2 "AFFILIATE" means each of the following: (a) any Subsidiary; (b)
any corporation, trade or business (including, without limitation, a partnership
or limited liability company) which is directly or indirectly controlled 50% or
more (whether by ownership of stock, assets or an equivalent ownership interest
or voting interest) by the Company or one of its Affiliates; and (c) any other
entity in which the Company or any of its Affiliates has a material equity
interest and which is designated as an "Affiliate" by resolution of the
Committee.

         2.3 "AWARD" means any award under this Plan of any Stock Option, Stock
Appreciation Right, Restricted Stock Award, Performance Award or Other
Stock-Based Award.

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

         2.5 "CAUSE" means with respect to a Participant's Termination of
Employment or Termination of Consultancy, the following: (a) in the case where
there is an employment agreement, consulting agreement, change in control
agreement or similar agreement in effect between the Company or an Affiliate and
the Participant at the time of the grant of the Award that defines "cause" (or
words or a concept of like import), "cause" as defined under such

                                       1
<PAGE>

agreement; provided, however, that with regard to any agreement under which the
definition of "cause" only applies on occurrence of a change in control, such
definition of "cause" shall not apply until a change in control actually takes
place and then only with regard to a termination thereafter; or (b) in the case
where there is no employment agreement, consulting agreement, change in control
agreement or similar agreement in effect between the Company or an Affiliate and
the Participant at the time of the grant of the Award (or where there is such an
agreement but it does not define "cause" (or words or a concept of like
import)), termination due to a Participant's insubordination, dishonesty, fraud,
incompetence, moral turpitude, willful misconduct, refusal to perform his or her
duties or responsibilities for any reason other than illness or incapacity or
materially unsatisfactory performance of his or her duties for the Company or an
Affiliate, as determined by the Committee in its sole discretion. With respect
to a Participant's Termination of Directorship, "cause" means an act or failure
to act that constitutes cause for removal of a director under applicable
Delaware law.

         2.6 "CHANGE IN CONTROL" has the meaning set forth in Article XI.

         2.7 "CHANGE IN CONTROL PRICE" has the meaning set forth in Section
11.1.

         2.8 "CODE" means the Internal Revenue Code of 1986, as amended. Any
reference to any section of the Code shall also be a reference to any successor
provision and any Treasury Regulation promulgated thereunder.

         2.9 "COMMITTEE" means: (a) with respect to the application of this Plan
to Eligible Employees and Consultants, the Compensation Committee of the Board
appointed from time to time by the Board (or another committee of the Board
appointed for the purposes of administering this Plan), which Committee shall
consist of two or more non-employee directors, each of whom is intended to be,
to the extent required by Rule 16b-3 promulgated under Section 16(b) of the
Exchange Act, a "non-employee director" as defined in Rule 16b-3, and, to the
extent no such Committee exists, the Board, and (b) with respect to the
application of this Plan to Non-Employee Directors, the Board. If for any reason
the appointed Committee does not meet the requirements of Rule 16b-3, such
noncompliance shall not affect the validity of Awards, grants, interpretations
or other actions of the Committee.

         2.10 "COMMON STOCK" means the Common Stock, $0.001 par value per share,
of the Company.

         2.11 "COMPANY" means theglobe.com, inc., a Delaware corporation, and
its successors by operation of law.

         2.12 "CONSULTANT" means any natural person who is an advisor or
consultant to, or subject to Section 5.2, a prospective advisor or consultant
to, the Company or its Affiliates.

         2.13 "DISABILITY" means with respect to a Participant's Termination, a
permanent and total disability as defined in Section 22(e)(3) of the Code. A
Disability shall only be deemed to occur at the time of the determination by the
Committee of the Disability.

         2.14 "EFFECTIVE DATE" means the effective date of this Plan as defined
in Article XV.

                                       2
<PAGE>

         2.15 "ELIGIBLE EMPLOYEE" means each employee of, or subject to Section
5.2, each prospective employee of, the Company or an Affiliate.

         2.16 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended. Any references to any section of the Exchange Act shall also be a
reference to any successor provision.

         2.17 "FAIR MARKET VALUE" means, for purposes of this Plan, unless
otherwise required by any applicable provision of the Code or any regulations
issued thereunder: (a) if the principal trading market for the Common Stock is a
national or regional securities exchange, the average closing price on such
exchange for the 10 trading days immediately prior to the exercise date; or (b)
if sales prices for shares of Common Stock are reported by the NASDAQ National
Market System (or a similar system then in use), the average last reported sales
price so reported for the 10 trading days immediately prior to the exercise
date; or (c) if neither (a) nor (b) above are applicable, and if bid and ask
prices for shares of Common Stock are reported in the OTC Bulletin Board by
NASDAQ (or, if not so reported, by the National Quotation Bureau or any
successor service), the average of the high bid and low ask prices so reported
for the 20 trading days immediately prior to the exercise date. Notwithstanding
the foregoing, if there is no reported closing price, last reported sales price,
or bid and ask prices, as the case may be, for the period in question, then the
current market price shall be determined in good faith by, and reflected in a
formal resolution of, the Board.

         2.18 "FAMILY MEMBER" means "family member" as defined in Section
A.1.(5) of the general instructions of Form S-8.

         2.19 "NON-EMPLOYEE DIRECTOR" means a director of the Company who is not
an active employee of the Company or an Affiliate.

         2.20 "OTHER STOCK-BASED AWARD" means an Award under Article X of this
Plan that is valued in whole or in part by reference to, or is payable in or
otherwise based on, Common Stock, including, without limitation, an Award valued
by reference to an Affiliate.

         2.21 "PARTICIPANT" means an Eligible Employee, Non-Employee Director or
Consultant to whom an Award has been granted pursuant to this Plan.

         2.22 "PERFORMANCE AWARD" means an Award made pursuant to Article IX of
this Plan of the right to receive Common Stock or cash at the end of a specified
Performance Period.

         2.23 "PERFORMANCE PERIOD" has the meaning set forth in Section 9.1.

         2.24 "PERSON" means any individual, corporation, partnership, limited
liability company, firm, joint venture, association, joint-stock company, trust,
incorporated organization, governmental or regulatory or other entity.

         2.25 "PLAN" means this theglobe.com, inc. 2004 Stock Incentive Plan, as
amended from time to time.

         2.26 "REFERENCE STOCK OPTION" has the meaning set forth in Section 7.1.

                                       3
<PAGE>

         2.27 "RESTRICTED STOCK AWARD" means an Award of shares of Common Stock,
or the right to receive shares of Common Stock in the future, under this Plan
that is subject to restrictions under Article VIII.

         2.28 "RESTRICTION PERIOD" has the meaning set forth in Subsection
8.3(a) with respect to Restricted Stock Awards.

         2.29 "RETIREMENT" means a Termination of Employment or Termination of
Consultancy without Cause at or after age 65 or such earlier date as may be
determined by the Committee at the time of grant. With respect to a
Participant's Termination of Directorship, Retirement means the failure to stand
for reelection or the failure to be reelected on or after a Participant has
attained age 65.

         2.30 "RULE 16B-3" means Rule 16b-3 under Section 16(b) of the Exchange
Act as then in effect or any successor provision.

         2.31 "SECURITIES ACT" means the Securities Act of 1933, as amended and
all rules and regulations promulgated thereunder. Any reference to any section
of the Securities Act shall also be a reference to any successor provision.

         2.32 "STOCK APPRECIATION RIGHT" shall mean the right pursuant to an
Award granted under Article VII. A Tandem Stock Appreciation Right shall mean
the right to surrender to the Company all (or a portion) of a Stock Option in
exchange for an amount in cash and/or stock equal to the difference between (i)
the Fair Market Value on the date such Stock Option (or such portion thereof) is
surrendered, of the Common Stock covered by such Stock Option (or such portion
thereof), and (ii) the aggregate exercise price of such Stock Option (or such
portion thereof). A Non-Tandem Stock Appreciation Right shall mean the right to
receive an amount in cash and/or stock equal to the difference between (x) the
Fair Market Value of a share of Common Stock on the date such right is
exercised, and (y) the aggregate exercise price of such right, otherwise than on
surrender of a Stock Option.

         2.33 "STOCK OPTION" or "OPTION" means any option to purchase shares of
Common Stock granted to Eligible Employees, Non-Employee Directors or
Consultants granted pursuant to Article VI.

         2.34 "SUBSIDIARY" means any subsidiary corporation of the Company
within the meaning of Section 424(f) of the Code.

         2.35 "SUBSTITUTE AWARDS" mean Awards granted or shares of Common Stock
issued by the Company in assumption of, or in substitution or exchange for,
awards previously granted, or the right or obligation to make future awards, by
a company acquired by the Company or an Affiliate or with which the Company or
an Affiliate combines.

         2.36 "TERMINATION" means a Termination of Consultancy, Termination of
Directorship or Termination of Employment, as applicable.

         2.37 "TERMINATION OF CONSULTANCY" means: (a) that the Consultant is no
longer acting as a consultant to the Company or an Affiliate; or (b) when an
entity which is retaining a

                                       4
<PAGE>

Participant as a Consultant ceases to be an Affiliate unless the Participant
otherwise is, or thereupon becomes, a Consultant to the Company or another
Affiliate at the time the entity ceases to be an Affiliate. In the event that a
Consultant becomes an Eligible Employee or a Non-Employee Director upon the
termination of his or her consultancy, unless otherwise determined by the
Committee, in its sole discretion, no Termination of Consultancy shall be deemed
to occur until such time as such Consultant is no longer a Consultant, an
Eligible Employee or a Non-Employee Director. Notwithstanding the foregoing, the
Committee may otherwise define Termination of Consultancy in the Award agreement
or, if no rights of a Participant are reduced, may otherwise define Termination
of Consultancy thereafter.

         2.38 "TERMINATION OF DIRECTORSHIP" means that the Non-Employee Director
has ceased to be a director of the Company; except that if a Non-Employee
Director becomes an Eligible Employee or a Consultant upon the termination of
his or her directorship, his or her ceasing to be a director of the Company
shall not be treated as a Termination of Directorship unless and until the
Participant has a Termination of Employment or Termination of Consultancy, as
the case may be.

         2.39 "TERMINATION OF EMPLOYMENT" means: (a) a termination of employment
(for reasons other than a military or personal leave of absence granted by the
Company) of a Participant from the Company and its Affiliates; or (b) when an
entity which is employing a Participant ceases to be an Affiliate, unless the
Participant otherwise is, or thereupon becomes, employed by the Company or
another Affiliate at the time the entity ceases to be an Affiliate. In the event
that an Eligible Employee becomes a Consultant or a Non-Employee Director upon
the termination of his or her employment, unless otherwise determined by the
Committee, in its sole discretion, no Termination of Employment shall be deemed
to occur until such time as such Eligible Employee is no longer an Eligible
Employee, a Consultant or a Non-Employee Director. Notwithstanding the
foregoing, the Committee may otherwise define Termination of Employment in the
Award agreement or, if no rights of a Participant are reduced, may otherwise
define Termination of Employment thereafter.

         2.40 "TRANSFER" means: (a) when used as a noun, any direct or indirect
transfer, sale, assignment, pledge, hypothecation, encumbrance or other
disposition (including the issuance of equity in a Person), whether for value or
no value and whether voluntary or involuntary (including by operation of law),
and (b) when used as a verb, to directly or indirectly transfer, sell, assign,
pledge, encumber, charge, hypothecate or otherwise dispose of (including the
issuance of equity in a Person) whether for value or for no value and whether
voluntarily or involuntarily (including by operation of law). "Transferred" and
"Transferable" shall have a correlative meaning.

                                   ARTICLE III

                                 ADMINISTRATION

         3.1 THE COMMITTEE. The Plan shall be administered and interpreted by
the Committee. Notwithstanding anything herein to the contrary, the Board shall
have authority for administration and interpretation of the Plan with respect to
Non-Employee Directors and all

                                       5
<PAGE>

references herein to the authority of the Committee as applied to Non-Employee
Directors shall be deemed to refer to the Board.

         3.2 GRANTS OF AWARDS. The Committee shall have full authority to grant,
pursuant to the terms of this Plan, to Eligible Employees, Consultants and
Non-Employee Directors: (i) Stock Options, (ii) Stock Appreciation Rights, (iii)
Restricted Stock Awards, (iv) Performance Awards, and (v) Other Stock-Based
Awards. In particular, the Committee shall have the authority:

         (a)      to select the Eligible Employees, Consultants and Non-Employee
                  Directors to whom Awards may from time to time be granted
                  hereunder;

         (b)      to determine whether and to what extent Awards, or any
                  combination thereof, are to be granted hereunder to one or
                  more Eligible Employees, Consultants or Non-Employee
                  Directors;

         (c)      to determine the number of shares of Common Stock to be
                  covered by each Award granted hereunder;

         (d)      to determine the terms and conditions, not inconsistent with
                  the terms of this Plan, of any Award granted hereunder
                  (including, but not limited to, the exercise or purchase price
                  (if any), any restriction or limitation, any vesting schedule
                  or acceleration thereof, or any forfeiture restrictions or
                  waiver thereof, regarding any Award and the shares of Common
                  Stock relating thereto, based on such factors, if any, as the
                  Committee shall determine, in its sole discretion);

         (e)      to determine whether, to what extent and under what
                  circumstances grants of Options and other Awards under this
                  Plan are to operate on a tandem basis and/or in conjunction
                  with or apart from other awards made by the Company outside of
                  this Plan;

         (f)      to determine whether and under what circumstances a Stock
                  Option may be settled in cash, Common Stock and/or restricted
                  stock under Section 6.2(d);

         (g)      to determine whether, to what extent and under what
                  circumstances Common Stock and other amounts payable with
                  respect to an Award under this Plan shall be deferred either
                  automatically or at the election of the Participant;

         (h)      to determine whether to require a Participant, as a condition
                  of the granting of any Award, to not sell or otherwise dispose
                  of shares acquired pursuant to the exercise of an Award for a
                  period of time as determined by the Committee, in its sole
                  discretion, following the date of the acquisition of such
                  Award;

                                       6
<PAGE>

         (i)      to modify, extend or renew an Award, subject to Article XII
                  herein, provided, however, that if an Award is modified,
                  extended or renewed and thereby deemed to be the issuance of a
                  new Award under the Code or the applicable accounting rules,
                  the exercise price of a Stock Option may continue to be the
                  original exercise price even if less than the Fair Market
                  Value of the Common Stock at the time of such modification,
                  extension or renewal;

         (j)      to offer to buy out an Award previously granted, based on such
                  terms and conditions as the Committee shall establish and
                  communicate to the Participant at the time such offer is made;

         (k)      solely to the extent permitted by applicable law, to determine
                  whether, to what extent and under what circumstances to
                  provide loans (which may be on a recourse basis and shall bear
                  interest at the rate the Committee shall provide) to
                  Participants in order to exercise Options under the Plan; and

         (l)      to determine at grant that a Stock Option shall cease to be
                  exercisable or an Award shall be forfeited, or that proceeds
                  or profits applicable to an Award shall be returned to the
                  Company, in the event the Participant engages in detrimental
                  activity with respect to the Company or its Affiliates (as
                  such term is defined by the Committee in the Award agreement)
                  and, to interpret such definition and to approve waivers with
                  regard thereto.

         3.3 GUIDELINES. Subject to Article XII hereof, the Committee shall have
the authority to adopt, alter and repeal such administrative rules, guidelines
and practices governing this Plan and perform all acts, including the delegation
of its responsibilities (to the extent permitted by applicable law and
applicable stock exchange rules), as it shall, from time to time, deem
advisable; to construe and interpret the terms and provisions of this Plan and
any Award issued under this Plan (and any agreements relating thereto); and to
otherwise supervise the administration of this Plan. The Committee may correct
any defect, supply any omission or reconcile any inconsistency in this Plan or
in any agreement relating thereto in the manner and to the extent it shall deem
necessary to effectuate the purpose and intent of this Plan. Notwithstanding the
foregoing, no action of the Committee under this Section 3.3 shall impair the
rights of any Participant without the Participant's consent. To the extent
applicable, this Plan is intended to comply with the applicable requirements of
Rule 16b-3, and this Plan shall be limited, construed and interpreted in a
manner so as to comply therewith.

         The Committee may adopt special guidelines and provisions for persons
who are residing in or employed in, or subject to, the taxes of, any domestic or
foreign jurisdictions to comply with applicable tax and securities laws of such
domestic or foreign jurisdictions.

         3.4 DECISIONS FINAL. Any decision, interpretation or other action made
or taken in good faith by or at the direction of the Company, the Board or the
Committee (or any of its members) arising out of or in connection with this Plan
shall be within the absolute discretion of all and each of them, as the case may
be, and shall be final, binding and conclusive on the

                                       7
<PAGE>

Company and all employees and Participants and their respective heirs,
executors, administrators, successors and assigns.

         3.5 PROCEDURES. If the Committee is appointed, the Board shall
designate one of the members of the Committee as chairman and the Committee
shall hold meetings, subject to the By-Laws of the Company, at such times and
places as it shall deem advisable, including, without limitation, by telephone
conference or by written consent to the extent permitted by applicable law. A
majority of the Committee members shall constitute a quorum. All determinations
of the Committee shall be made by a majority of its members. Any decision or
determination reduced to writing and signed by all the Committee members in
accordance with the By-Laws of the Company, shall be fully effective as if it
had been made by a vote at a meeting duly called and held. The Committee shall
keep minutes of its meetings and shall make such rules and regulations for the
conduct of its business as it shall deem advisable.

         3.6 DESIGNATION OF CONSULTANTS/LIABILITY.

         (a)      The Committee may designate employees of the Company and
                  professional advisors to assist the Committee in the
                  administration of this Plan and (to the extent permitted by
                  applicable law and applicable exchange rules) may grant
                  authority to officers to grant Awards and/or execute
                  agreements or other documents on behalf of the Committee.

         (b)      The Committee may employ such legal counsel, consultants and
                  agents as it may deem desirable for the administration of this
                  Plan and may rely upon any opinion received from any such
                  counsel or consultant and any computation received from any
                  such consultant or agent. Expenses incurred by the Committee
                  or the Board in the engagement of any such counsel, consultant
                  or agent shall be paid by the Company. The Committee, its
                  members and any person designated pursuant to sub-section (a)
                  above shall not be liable for any action or determination made
                  in good faith with respect to this Plan. To the maximum extent
                  permitted by applicable law, no officer of the Company or
                  member or former member of the Committee or of the Board shall
                  be liable for any action or determination made in good faith
                  with respect to this Plan or any Award granted under it.

         3.7 INDEMNIFICATION. To the maximum extent permitted by applicable law
and the Certificate of Incorporation and By-Laws of the Company and to the
extent not covered by insurance directly insuring such person, each officer and
member or former member of the Committee or the Board shall be indemnified and
held harmless by the Company against any cost or expense (including reasonable
fees of counsel reasonably acceptable to the Committee) or liability (including
any sum paid in settlement of a claim with the approval of the Committee), and
advanced amounts necessary to pay the foregoing at the earliest time and to the
fullest extent permitted, arising out of any act or omission to act in
connection with the administration of this Plan, except to the extent arising
out of such officer's, member's or former member's own fraud or bad faith. Such
indemnification shall be in addition to any rights of indemnification the
employees, officers, directors or members or former officers, directors or
members may have

                                       8
<PAGE>

under applicable law or under the Certificate of Incorporation or By-Laws of the
Company or any Affiliate or any agreement of indemnification. Notwithstanding
anything else herein, this indemnification will not apply to the actions or
determinations made by an individual with regard to Awards granted to him or her
under this Plan.

                                   ARTICLE IV

                                SHARE LIMITATION

         4.1 SHARES.

         (a)      Aggregate Limitation. The following provisions apply in
                  determining the aggregate number of shares of Common Stock
                  available under the Plan.

                  (i)      The aggregate number of shares of Common Stock that
                           may be issued or used for reference purposes or with
                           respect to which Awards may be granted under this
                           Plan shall not exceed 7,500,000 shares (subject to
                           any increase or decrease pursuant to Section 4.2),
                           which may be either authorized and unissued Common
                           Stock or Common Stock held in or acquired for the
                           treasury of the Company or both. Any shares of Common
                           Stock that are subject to Awards of Options or Stock
                           Appreciation Rights shall be counted against this
                           limit as one share for every share granted. Any
                           shares of Common Stock that are subject to Awards
                           other than Options or Stock Appreciation Rights shall
                           be counted against this limit as 2.5 shares for every
                           share granted.

                  (ii)     If any Option or Stock Appreciation Right granted
                           under this Plan expires, terminates or is canceled
                           for any reason without having been exercised in full,
                           the number of shares of Common Stock underlying any
                           unexercised Award shall again be available for the
                           purpose of Awards under the Plan. If any Restricted
                           Stock Awards, Performance Awards, or Other
                           Stock-Based Awards denominated in shares of Common
                           Stock awarded under this Plan to a Participant are
                           forfeited for any reason, the number of forfeited
                           shares of Common Stock shall again be available for
                           the purposes of Awards under the Plan. If a Stock
                           Appreciation Right is granted in tandem with an
                           Option, such grant shall only apply once against the
                           maximum number of shares of Common Stock which may be
                           issued under this Plan. Awards settled in cash shall
                           again be available for issuance under this Plan.

                  (iii)    In determining the number of shares of Common Stock
                           available for Awards, if Common Stock has been
                           delivered or exchanged as full or partial payment to
                           the Company for payment of the exercise price or
                           purchase price of an Award under the Plan, or for
                           payment of withholding taxes with respect to Awards
                           under the Plan, or if

                                       9
<PAGE>

                           the number shares of Common Stock otherwise
                           deliverable has been reduced for payment of the
                           exercise price or purchase price or for payment of
                           withholding taxes, the number of shares of Common
                           Stock exchanged as payment in connection with the
                           exercise or for withholding or reduced shall again be
                           available for purpose of Awards under this Plan. In
                           addition, shares of Common Stock reacquired by the
                           Company on the open market or otherwise using cash
                           proceeds received by the Company from the exercise of
                           Stock Options granted under the Plan shall again be
                           available for purposes of Awards under this Plan,
                           provided that the number of shares of Common Stock
                           available pursuant to repurchase shall not exceed (i)
                           the amount of proceeds, divided by (ii) the Fair
                           Market Value on the date of exercise which generated
                           such proceeds.

                  (iv)     Any shares of Common Stock that again become
                           available for grant pursuant to this Section 4.1(a)
                           shall be added back as one share if such share were
                           subject to an Option or Stock Appreciation Right
                           granted under the Plan, and as 2.5 shares if such
                           shares were subject to an Award other than an Option
                           or a Stock Appreciation Right granted under the Plan.

         (b)      Substitute Awards. Substitute Awards shall not reduce the
                  shares of Common Stock authorized for grant under the Plan
                  pursuant to Section 4.1(a). Additionally, in the event that a
                  company acquired by the Company or an Affiliate, or with which
                  the Company or an Affiliate combines, has shares available
                  under a pre-existing plan approved by stockholders and not
                  adopted in contemplation of such acquisition or combination,
                  the shares available for grant pursuant to the terms of such
                  pre-existing plan (as adjusted, to the extent appropriate,
                  using the exchange ratio or other adjustment or valuation
                  ratio or formula used in such acquisition or combination to
                  determine the consideration payable to the holders of common
                  stock of the entities party to such acquisition or
                  combination) may be used for Awards under the Plan and shall
                  not reduce the shares of Common Stock authorized for grant
                  under the Plan; provided that Awards using such available
                  shares shall not be made after the date awards or grants could
                  have been made under the terms of the pre-existing plan,
                  absent the acquisition or combination, and shall only be made
                  to individuals who were not Eligible Employees, Consultants or
                  Non-Employee Directors prior to such acquisition or
                  combination.

         4.2 CHANGES.

         (a)      The existence of this Plan and the Awards granted hereunder
                  shall not affect in any way the right or power of the Board or
                  the stockholders of the Company to make or authorize (i) any
                  adjustment, recapitalization, reorganization or other change
                  in the Company's capital structure or its

                                       10
<PAGE>

                  business, (ii) any merger or consolidation of the Company or
                  any Affiliate, (iii) any issuance of bonds, debentures,
                  preferred or prior preference stock ahead of or affecting the
                  Common Stock, (iv) the dissolution or liquidation of the
                  Company or any Affiliate, (v) any sale or transfer of all or
                  part of the assets or business of the Company or any Affiliate
                  or (vi) any other corporate act or proceeding.

         (b)      Subject to the provisions of Section 4.2(d), in the event of
                  any such change in the capital structure or business of the
                  Company by reason of any stock split, reverse stock split,
                  stock dividend, combination or reclassification of shares,
                  recapitalization, merger, consolidation, spin-off,
                  reorganization, partial or complete liquidation, issuance of
                  rights or warrants to purchase any Common Stock or securities
                  convertible into Common Stock, any sale or transfer of all or
                  part of the Company's assets or business, any special cash
                  dividend or any other corporate transaction or event having an
                  effect similar to any of the foregoing and effected without
                  receipt of consideration by the Company and the Committee
                  determines in good faith that an adjustment is necessary or
                  appropriate under the Plan to prevent substantial dilution or
                  enlargement of the rights granted to, or available for,
                  Participants under the Plan, then the aggregate number and
                  kind of shares that thereafter may be issued under this Plan,
                  the number and kind of shares or other property (including
                  cash) to be issued upon exercise of an outstanding Award or
                  under other Awards granted under this Plan and the purchase
                  price thereof shall be appropriately adjusted consistent with
                  such change in such manner as the Committee may deem equitable
                  to prevent substantial dilution or enlargement of the rights
                  granted to, or available for, Participants under this Plan,
                  and any such adjustment determined by the Committee in good
                  faith shall be final, binding and conclusive on the Company
                  and all Participants and employees and their respective heirs,
                  executors, administrators, successors and assigns. In
                  connection with any event described in this paragraph, the
                  Committee may provide, in its sole discretion, for the
                  cancellation of any outstanding Awards and payment in cash or
                  other property in exchange therefor. Except as provided in
                  this Section 4.2 or in the applicable Award agreement, a
                  Participant shall have no rights by reason of any issuance by
                  the Company of any class or securities convertible into stock
                  of any class, any subdivision or consolidation of shares of
                  stock of any class, the payment of any stock dividend, any
                  other increase or decrease in the number of shares of stock of
                  any class, any sale or transfer of all or part of the
                  Company's assets or business or any other change affecting the
                  Company's capital structure or business.

         (c)      Unless otherwise determined by the Committee, fractional
                  shares of Common Stock resulting from any adjustment in Awards
                  pursuant to Section 4.2(a) or (b) shall be aggregated until,
                  and eliminated at, the time of exercise by rounding-down and
                  any remaining fractional shares of

                                       11
<PAGE>

                  Common Stock shall be settled in cash. Notice of any
                  adjustment shall be given by the Committee to each Participant
                  whose Award has been adjusted and such adjustment (whether or
                  not such notice is given) shall be effective and binding for
                  all purposes of this Plan.

         (d)      In the event of a merger or consolidation in which the Company
                  is not the surviving entity or in the event of any transaction
                  that results in the acquisition of substantially all of the
                  Company's outstanding Common Stock by a single person or
                  entity or by a group of persons and/or entities acting in
                  concert, or in the event of the sale or transfer of all or
                  substantially all of the Company's assets (all of the
                  foregoing being referred to as an "Acquisition Event"), then
                  the Committee may, in its sole discretion, terminate all
                  outstanding and unexercised Awards effective as of the date of
                  the Acquisition Event, by delivering notice of termination to
                  each Participant at least 20 days prior to the date of
                  consummation of the Acquisition Event, in which case during
                  the period from the date on which such notice of termination
                  is delivered to the consummation of the Acquisition Event,
                  each such Participant shall have the right to exercise in full
                  all of his or her Awards that are then outstanding (without
                  regard to any limitations on exercisability otherwise
                  contained in the Award agreements), but any such exercise
                  shall be contingent on the occurrence of the Acquisition
                  Event, and, provided that, if the Acquisition Event does not
                  take place within a specified period after giving such notice
                  for any reason whatsoever, the notice and exercise pursuant
                  thereto shall be null and void.

                  If an Acquisition Event occurs but the Committee does not
                  terminate the outstanding Awards pursuant to this Section
                  4.2(d), then the provisions of Section 4.2(b) and Article XI
                  shall apply.

         4.3 MINIMUM PURCHASE PRICE. Notwithstanding any provision of this Plan
to the contrary, if authorized but previously unissued shares of Common Stock
are issued under this Plan, such shares shall not be issued for a consideration
that is less than as permitted under applicable law.

                                    ARTICLE V

                                   ELIGIBILITY

         5.1 GENERAL ELIGIBILITY. All Eligible Employees, Consultants and
Non-Employee Directors are eligible to be granted Awards. Eligibility for the
grant of Awards and actual participation in this Plan shall be determined by the
Committee in its sole discretion.

         5.2 GENERAL REQUIREMENT. The vesting and exercise of Awards granted to
a prospective employee or consultant shall be conditioned upon such individual
actually becoming an employee of or consultant to the Company or an Affiliate
within a reasonable time thereafter, as determined by the Committee.

                                       12
<PAGE>

                                   ARTICLE VI

                                  STOCK OPTIONS

         6.1 OPTIONS. Stock Options may be granted alone or in addition to other
Awards granted under this Plan. The Committee shall have the authority to grant
any Eligible Employee, Consultant or Non-Employee Director one or more Stock
Options. Each Stock Option granted under this Plan shall be a non-qualified
Stock Option, not intended to be an incentive stock option within the meaning of
Section 422 of the Code.

         6.2 TERMS OF OPTIONS. Options granted under this Plan shall be subject
to the following terms and conditions and shall be in such form and contain such
additional terms and conditions, not inconsistent with the terms of this Plan,
as the Committee shall deem desirable:

         (a)      Exercise Price. The exercise price per share of Common Stock
                  subject to a Stock Option shall be determined by the Committee
                  at the time of grant.

         (b)      Stock Option Term. The term of each Stock Option shall be
                  fixed by the Committee, provided that no Stock Option shall be
                  exercisable more than 10 years after the date the Option is
                  granted.

         (c)      Exercisability. Unless the Committee determines otherwise at
                  grant or as otherwise provided herein, Stock Options shall be
                  exercisable no earlier than one year after grant (except with
                  respect to Stock Options granted to Non-Employee Directors)
                  and shall be exercisable at such time or times and subject to
                  such terms and conditions as shall be determined by the
                  Committee at grant. Notwithstanding the foregoing, if the
                  Committee provides, in its discretion, that any Stock Option
                  is exercisable subject to certain limitations (including,
                  without limitation, that such Stock Option is exercisable only
                  in installments or within certain time periods), the Committee
                  may waive such limitations on the exercisability at any time
                  at or after grant in whole or in part (including, without
                  limitation, waiver of the installment exercise provisions or
                  acceleration of the time at which such Stock Option may be
                  exercised), based on such factors, if any, as the Committee
                  shall determine, in its sole discretion.

         (d)      Method of Exercise. Subject to whatever installment exercise
                  and waiting period provisions apply under subsection (c)
                  above, to the extent vested, Stock Options may be exercised in
                  whole or in part at any time during the Option term, by giving
                  written notice of exercise to the Company specifying the
                  number of shares of Common Stock to be purchased. Such notice
                  shall be accompanied by payment in full of the purchase price
                  (or arrangements satisfactory to the Committee made for such
                  payment) as follows: (i) in cash or by check, bank draft or
                  money order payable to the order of the Company; (ii) solely
                  to the extent permitted by applicable law, if the Common Stock
                  is traded on a national or regional securities exchange or
                  reported by the NASDAQ National Market System (or

                                       13
<PAGE>

                  similar system then in use) or in the OTC Bulletin Board by
                  NASDAQ (or the National Quotation Bureau or any successor
                  service), and the Committee authorizes, through a procedure
                  whereby the Participant delivers irrevocable instructions to a
                  broker reasonably acceptable to the Committee to deliver
                  promptly to the Company an amount equal to the purchase price
                  (a "Cashless Exercise"); or (iii) on such other terms and
                  conditions as may be acceptable to the Committee (including,
                  without limitation, the relinquishment of Stock Options or by
                  payment in full or in part in the form of Common Stock
                  (including by attestation) owned by the Participant for such
                  period, or acquired in such manner, as to avoid an incremental
                  charge, for accounting purposes, against the Company's
                  earnings as reported in the Company's financial statements
                  (and for which the Participant has good title free and clear
                  of any liens and encumbrances) based on the Fair Market Value
                  of the Common Stock on the payment date as determined by the
                  Committee). No shares of Common Stock shall be issued until
                  payment therefor, as provided herein, has been made or
                  provided for.

         (e)      Termination by Death, Disability or Retirement. Unless
                  otherwise determined by the Committee at grant, or if no
                  rights of the Participant are reduced, thereafter, if
                  Participant's Termination is by reason of death, Disability or
                  Retirement, all Stock Options that are held by such
                  Participant that are vested and exercisable at the time of the
                  Participant's Termination may be exercised by the Participant
                  (or, in the case of death, by the legal representative of the
                  Participant's estate) at any time within a period of one year
                  from the date of such Termination, but in no event beyond the
                  expiration of the stated term of such Stock Options; provided,
                  however, that in the case of Retirement, if the Participant
                  dies within such exercise period, all unexercised Stock
                  Options held by such Participant shall thereafter be
                  exercisable, to the extent to which they were exercisable at
                  the time of death, for a period of one year from the date of
                  such death, but in no event beyond the expiration of the
                  stated term of such Stock Options.

         (f)      Involuntary Termination Without Cause. Unless otherwise
                  determined by the Committee at grant, or if no rights of the
                  Participant are reduced, thereafter, if a Participant's
                  Termination is by involuntary termination without Cause, all
                  Stock Options that are held by such Participant that are
                  vested and exercisable at the time of the Participant's
                  Termination may be exercised by the Participant at any time
                  within a period of 90 days from the date of such Termination,
                  but in no event beyond the expiration of the stated term of
                  such Stock Options.

         (g)      Voluntary Termination. Unless otherwise determined by the
                  Committee at grant, or if no rights of the Participant are
                  reduced, thereafter, if a Participant's Termination is
                  voluntary (other than a voluntary termination described in
                  subsection (h)(y) below or covered by (f) above), all Stock

                                       14
<PAGE>

                  Options that are held by such Participant that are vested and
                  exercisable at the time of the Participant's Termination may
                  be exercised by the Participant at any time within a period of
                  30 days from the date of such Termination, but in no event
                  beyond the expiration of the stated term of such Stock
                  Options.

         (h)      Termination for Cause. Unless otherwise determined by the
                  Committee at grant, or if no rights of the Participant are
                  reduced, thereafter, if a Participant's Termination (x) is for
                  Cause or (y) is a voluntary Termination after the occurrence
                  of an event that would be grounds for a Termination for Cause,
                  all Stock Options, whether vested or not vested, that are held
                  by such Participant shall thereupon terminate and expire as of
                  the date of such Termination.

         (i)      Unvested Stock Options. Unless otherwise determined by the
                  Committee at grant, or if no rights of the Participant are
                  reduced, thereafter, Stock Options that are not vested as of
                  the date of a Participant's Termination for any reason shall
                  terminate and expire as of the date of such Termination.

         (j)      Form, Modification, Extension and Renewal of Stock Options.
                  Subject to the terms and conditions and within the limitations
                  of this Plan, Stock Options shall be evidenced by such form of
                  agreement or grant as is approved by the Committee, and the
                  Committee may (i) modify, extend or renew outstanding Stock
                  Options granted under this Plan (provided that the rights of a
                  Participant are not reduced without his or her consent), and
                  (ii) accept the surrender of outstanding Stock Options (up to
                  the extent not theretofore exercised) and authorize the
                  granting of new Stock Options in substitution therefor (to the
                  extent not theretofore exercised). Notwithstanding the
                  foregoing, an outstanding Option may not be modified to reduce
                  the exercise price thereof nor may a new Option at a lower
                  price be substituted for a surrendered Option (other than
                  adjustments or substitutions in accordance with Section 4.2),
                  unless such action is approved by the stockholders of the
                  Company.

         (k)      Buyout and Settlement Provisions. The Committee may at any
                  time offer to buy out an Option previously granted, based on
                  such terms and conditions as the Committee shall establish and
                  communicate to the Participant at the time that such offer is
                  made.

         (l)      Deferred Delivery of Common Stock. The Committee may in its
                  discretion permit Participants to defer delivery of Common
                  Stock acquired pursuant to a Participant's exercise of an
                  Option in accordance with the terms and conditions established
                  by the Committee.

         (m)      Early Exercise. The Committee may provide that a Stock Option
                  include a provision whereby the Participant may elect at any
                  time before the Participant's Termination to exercise the
                  Stock Option as to any part or all

                                       15
<PAGE>

                  of the shares of Common Stock subject to the Stock Option
                  prior to the full vesting of the Stock Option and such shares
                  shall be subject to the provisions of Article VIII and treated
                  as restricted stock. Any unvested shares of Common Stock so
                  purchased may be subject to a repurchase option in favor of
                  the Company or to any other restriction the Committee
                  determines to be appropriate.

         (n)      Other Terms and Conditions. Stock Options may contain such
                  other provisions, which shall not be inconsistent with any of
                  the terms of this Plan, as the Committee shall deem
                  appropriate.

                                   ARTICLE VII

                            STOCK APPRECIATION RIGHTS

         7.1 TANDEM STOCK APPRECIATION RIGHTS. Stock Appreciation Rights may be
granted in conjunction with all or part of any Stock Option (a "Reference Stock
Option") granted under this Plan ("Tandem Stock Appreciation Rights"). Such
rights may be granted either at or after the time of the grant of such Reference
Stock Option.

         7.2 TERMS AND CONDITIONS OF TANDEM STOCK APPRECIATION RIGHTS. Tandem
Stock Appreciation Rights granted hereunder shall be subject to such terms and
conditions, not inconsistent with the provisions of this Plan, as shall be
determined from time to time by the Committee, and the following:

         (a)      Term. A Tandem Stock Appreciation Right or applicable portion
                  thereof granted with respect to a Reference Stock Option shall
                  terminate and no longer be exercisable upon the termination or
                  exercise of the Reference Stock Option, except that, unless
                  otherwise determined by the Committee, in its sole discretion,
                  at the time of grant, a Tandem Stock Appreciation Right
                  granted with respect to less than the full number of shares
                  covered by the Reference Stock Option shall not be reduced
                  until and then only to the extent the exercise or termination
                  of the Reference Stock Option causes the number of shares
                  covered by the Tandem Stock Appreciation Right to exceed the
                  number of shares remaining available and unexercised under the
                  Reference Stock Option.

         (b)      Exercisability. Tandem Stock Appreciation Rights shall be
                  exercisable only at such time or times and to the extent that
                  the Reference Stock Options to which they relate shall be
                  exercisable in accordance with the provisions of Article VI,
                  and shall be subject to the provisions of Section 6.2(c).

         (c)      Method of Exercise. A Tandem Stock Appreciation Right may be
                  exercised by the Participant by surrendering the applicable
                  portion of the Reference Stock Option. Upon such exercise and
                  surrender, the Participant shall be entitled to receive an
                  amount determined in the

                                       16
<PAGE>

                  manner prescribed in this Section 7.2. Stock Options which
                  have been so surrendered, in whole or in part, shall no longer
                  be exercisable to the extent the related Tandem Stock
                  Appreciation Rights have been exercised.

         (d)      Payment. Upon the exercise of a Tandem Stock Appreciation
                  Right a Participant shall be entitled to receive up to, but no
                  more than, an amount in cash and/or Common Stock (as chosen by
                  the Committee in its sole discretion at the time of grant)
                  equal in value to the excess of the Fair Market Value of one
                  share of Common Stock over the Option exercise price per share
                  specified in the Reference Stock Option agreement multiplied
                  by the number of shares in respect of which the Tandem Stock
                  Appreciation Right shall have been exercised.

         (e)      Deemed Exercise of Reference Stock Option. Upon the exercise
                  of a Tandem Stock Appreciation Right, the Reference Stock
                  Option or part thereof to which such Stock Appreciation Right
                  is related shall be deemed to have been exercised for the
                  purpose of the limitation set forth in Article IV of the Plan
                  on the number of shares of Common Stock to be issued under the
                  Plan.

         7.3 NON-TANDEM STOCK APPRECIATION RIGHTS. Non-Tandem Stock Appreciation
Rights may also be granted without reference to any Stock Options granted under
this Plan.

         7.4 TERMS AND CONDITIONS OF NON-TANDEM STOCK APPRECIATION RIGHTS.
Non-Tandem Stock Appreciation Rights granted hereunder shall be subject to such
terms and conditions, not inconsistent with the provisions of this Plan, as
shall be determined from time to time by the Committee, and the following:

         (a)      Term. The term of each Non-Tandem Stock Appreciation Right
                  shall be fixed by the Committee, but shall not be greater than
                  10 years after the date the right is granted.

         (b)      Exercisability. Unless the Committee determines otherwise at
                  grant or as otherwise provided herein, Non-Tandem Stock
                  Appreciation Rights shall be exercisable no earlier than one
                  year after grant (except with respect to Non-Tandem Stock
                  Appreciation Rights granted to Non-Employee Directors) and
                  shall be exercisable at such time or times and subject to such
                  terms and conditions as shall be determined by the Committee
                  at grant. If the Committee provides, in its discretion, that
                  any such right is exercisable subject to certain limitations
                  (including, without limitation, that it is exercisable only in
                  installments or within certain time periods), the Committee
                  may waive such limitations on the exercisability at any time
                  at or after grant in whole or in part (including, without
                  limitation, waiver of the installment exercise provisions or
                  acceleration of the time at which such right may be
                  exercised), based on such factors, if any, as the Committee
                  shall determine, in its sole discretion.

                                       17
<PAGE>

         (c)      Method of Exercise. Subject to whatever installment exercise
                  and waiting period provisions apply under subsection (b)
                  above, Non-Tandem Stock Appreciation Rights may be exercised
                  in whole or in part at any time in accordance with the
                  applicable Award agreement, by giving written notice of
                  exercise to the Company specifying the number of Non-Tandem
                  Stock Appreciation Rights to be exercised.

         (d)      Payment. Upon the exercise of a Non-Tandem Stock Appreciation
                  Right a Participant shall be entitled to receive, for each
                  right exercised, up to, but no more than, an amount in cash
                  and/or Common Stock (as chosen by the Committee in its sole
                  discretion at the time of grant) equal in value to the excess
                  of the Fair Market Value of one share of Common Stock on the
                  date the right is exercised over the Fair Market Value of one
                  share of Common Stock on the date the right was awarded to the
                  Participant.

                                  ARTICLE VIII

                             RESTRICTED STOCK AWARDS

         8.1 RESTRICTED STOCK AWARDS. Restricted Stock Awards may be issued
either alone or in addition to other Awards granted under the Plan. The
Committee shall determine the Eligible Employees, Consultants and Non-Employee
Directors, to whom, and the time or times at which, grants of Restricted Stock
Awards shall be made, the number of shares to be awarded, the price (if any) to
be paid by the Participant (subject to Section 8.2), the time or times within
which such Awards may be subject to forfeiture, the vesting schedule and rights
to acceleration thereof, and all other terms and conditions of the Awards.

         8.2 AWARDS AND CERTIFICATES. Eligible Employees, Consultants and
Non-Employee Directors selected to receive a Restricted Stock Award shall not
have any rights with respect to such Award, unless and until such Participant
has delivered a fully executed copy of the agreement evidencing the Award to the
Company and has otherwise complied with the applicable terms and conditions of
such Award. Further, such Award shall be subject to the following conditions:

         (a)      Purchase Price. The purchase price of a Restricted Stock Award
                  shall be fixed by the Committee. Subject to Section 4.3, the
                  purchase price for a Restricted Stock Award may be zero to the
                  extent permitted by applicable law, and, to the extent not so
                  permitted, such purchase price may not be less than par value.

         (b)      Acceptance. Restricted Stock Awards must be accepted within a
                  period of 60 days (or such shorter period as the Committee may
                  specify at grant) after the grant date, by executing an Award
                  agreement and by paying whatever price (if any) the Committee
                  has designated thereunder.

         8.3 RESTRICTIONS AND CONDITIONS. Restricted Stock Awards awarded
pursuant to this Plan shall be subject to the following restrictions and
conditions:

                                       18
<PAGE>

         (a)      Restriction Period.

                  (i)      The Participant shall not be permitted to Transfer a
                           Restricted Stock Award awarded under this Plan during
                           the period or periods set by the Committee (the
                           "Restriction Period") commencing on the date of such
                           Award, as set forth in the Award agreement and such
                           agreement shall set forth a vesting schedule and any
                           events which would accelerate vesting of the
                           Restricted Stock Award. Unless the Committee
                           determines otherwise at grant, and except with
                           respect to Restricted Stock Awards granted to
                           Non-Employee Directors, the minimum Restriction
                           Period shall be three years (permitting pro-rata
                           vesting over such three year period). Within these
                           limits, based on service, attainment of performance
                           goals pursuant to Section 8.3(a)(ii) below and/or
                           such other factors or criteria as the Committee may
                           determine in its sole discretion, the Committee may
                           condition the grant or provide for the lapse of such
                           restrictions installments in whole or in part, or may
                           accelerate the vesting of all or any part of any
                           Restricted Stock Award and/or waive the deferral
                           limitations for all or any part of any such Award.

                  (ii)     Objective Performance Goals, Formulae or Standards.
                           If the grant of a Restricted Stock Award or the lapse
                           of restrictions is based on the attainment of
                           performance goals, the Committee shall establish the
                           objective performance goals, including, to the extent
                           the Committee so determines, from among those set
                           forth in Exhibit A hereto, and the applicable vesting
                           percentage of the Restricted Stock Award applicable
                           to each Participant or class of Participants in
                           writing prior to the beginning of the applicable
                           fiscal year or at such later date as otherwise
                           determined by the Committee and while the outcome of
                           the performance goals are substantially uncertain.

         (b)      Rights as a Stockholder. The Participant shall have none of
                  the attendant rights of a holder of shares of Common Stock of
                  the Company until the Participant becomes a shareholder of
                  record (other than rights to receive additional Restricted
                  Stock Awards for dividends and other distributions on shares
                  of Common Stock). Once the Participant becomes a shareholder
                  of record, the Participant shall have all of the rights of a
                  holder of shares of Common Stock of the Company including,
                  without limitation, the right to receive any dividends, the
                  right to vote such shares and, subject to and conditioned upon
                  the full vesting of shares of Common Stock, the right to
                  tender such shares. The Committee may, in its sole discretion,
                  determine at the time of grant that the payment of dividends
                  shall be deferred until, and conditioned upon, the expiration
                  of the applicable Restriction Period.

                                       19
<PAGE>

         (c)      Termination. Unless otherwise determined by the Committee at
                  grant or, if no rights of the Participant are reduced,
                  thereafter, subject to the applicable provisions of the Award
                  agreement and this Plan, upon a Participant's Termination for
                  any reason during the relevant Restriction Period, all
                  Restricted Stock Awards still subject to restriction will vest
                  or be forfeited in accordance with the terms and conditions
                  established by the Committee at grant or thereafter.

         (d)      Lapse of Restrictions. If and when the Restriction Period
                  expires without a prior forfeiture of the Restricted Stock
                  Award, certificates for shares attributable to such Award
                  shall be delivered to the Participant (or, if certificates
                  were previously issued, replacement certificates shall be
                  delivered upon return of the previously issued certificates).
                  All legends shall be removed from said certificates at the
                  time of delivery to the Participant, except as otherwise
                  required by applicable law or other limitations imposed by the
                  Committee. Notwithstanding the foregoing, actual certificates
                  shall not be issued to the extent that book entry
                  recordkeeping is used.

                                   ARTICLE IX

                               PERFORMANCE AWARDS

         9.1 PERFORMANCE AWARDS. Performance Awards may be awarded either alone
or in addition to other Awards granted under this Plan. The Committee shall
determine the Eligible Employees, Consultants and Non-Employee Directors, to
whom, and the time or times at which, Performance Awards shall be awarded, the
number of Performance Awards to be awarded to any person, the duration of the
period (the "Performance Period") during which, and the conditions under which,
a Participant's right to Performance Awards will be vested, the ability of
Participants to defer receipt of Performance Awards, and the other terms and
conditions of the Award in addition to those set forth in Section 9.2.

         Except as otherwise provided herein, the Committee shall condition the
right to payment or vesting of any Performance Award upon the attainment of
objective performance goals established pursuant to Section 9.2(b) below.

         9.2 TERMS AND CONDITIONS. Performance Awards awarded pursuant to this
Article IX shall be subject to the following terms and conditions:

         (a)      Earning or Vesting of Performance Award. At the expiration of
                  the applicable Performance Period, the Committee shall
                  determine the extent to which the performance goals
                  established pursuant to Section 9.2(b) are achieved and the
                  percentage of each Performance Award that has been earned or
                  vested.

         (b)      Objective Performance Goals, Formulae or Standards. The
                  Committee shall establish the objective performance goals,
                  including, to the extent the

                                       20
<PAGE>

                  Committee so determines, from among those set forth in Exhibit
                  A hereto, for the earning of Performance Awards based on a
                  Performance Period applicable to each Participant or class of
                  Participants in writing prior to the beginning of the
                  applicable Performance Period.

         (c)      Dividends. Unless otherwise determined by the Committee at the
                  time of grant, amounts equal to any dividends declared during
                  the Performance Period with respect to the number of shares of
                  Common Stock covered by a Performance Award will not be paid
                  to the Participant.

         (d)      Payment. Following the Committee's determination, shares of
                  Common Stock and/or cash, as determined by the Committee in
                  its sole discretion at the time of grant, shall be delivered
                  to the Eligible Employee, Consultant or Non-Employee Director,
                  or his legal representative, in an amount equal to such
                  individual's earned or vested Performance Award.
                  Notwithstanding the foregoing, the Committee may, in its sole
                  discretion, award a number of shares of Common Stock or an
                  amount of cash less than the earned Performance Award and/or
                  subject the payment of all or part of any Performance Award to
                  additional vesting, forfeiture and deferral conditions as it
                  deems appropriate.

         (e)      Termination. Subject to the applicable provisions of the Award
                  agreement and this Plan, upon a Participant's Termination for
                  any reason during the Performance Period for a given Award,
                  the Performance Award in question will vest or be forfeited in
                  accordance with the terms and conditions established by the
                  Committee at grant or, if no rights of the Participant are
                  reduced, thereafter.

         (f)      Accelerated Vesting. Based on service, performance and/or such
                  other factors or criteria, if any, as the Committee may
                  determine, the Committee may, at or after grant, accelerate
                  the vesting of all or any part of any Performance Award or
                  waive the deferral limitations for all or any part of such
                  Award.

                                    ARTICLE X

                            OTHER STOCK-BASED AWARDS

         10.1 OTHER AWARDS. The Committee is authorized to grant to Eligible
Employees, Consultants and Non-Employee Directors Other Stock-Based Awards that
are payable in, valued in whole or in part by reference to, or otherwise based
on or related to shares of Common Stock, including but not limited to, shares of
Common Stock awarded purely as a bonus and not subject to any restrictions or
conditions, shares of Common Stock in payment of the amounts due under an
incentive or performance plan sponsored or maintained by the Company or an
Affiliate, stock equivalent units, restricted stock units, and Awards valued by
reference to book value of shares of Common Stock. Other Stock-Based Awards may
be granted either alone or in addition to or in tandem with other Awards granted
under the Plan.

                                       21
<PAGE>

         Subject to the provisions of this Plan, the Committee shall have
authority to determine the Eligible Employees, Consultants and Non-Employee
Directors, to whom, and the time or times at which, such Awards shall be made,
the number of shares of Common Stock to be awarded pursuant to such Awards, and
all other conditions of the Awards. The Committee may also provide for the grant
of Common Stock under such Awards upon the completion of a specified performance
period.

         The Committee may condition the grant or vesting of Other Stock-Based
Awards upon the attainment of specified performance goals, including, to the
extent the Committee so determines, from among those set forth on Exhibit A
hereto, as the Committee may determine, in its sole discretion.

         10.2 TERMS AND CONDITIONS. Other Stock-Based Awards made pursuant to
this Article X shall be subject to the following terms and conditions:

         (a)      Dividends. Unless otherwise determined by the Committee at the
                  time of grant or, if no rights of the Participant are reduced,
                  thereafter, subject to the provisions of the Plan, the
                  recipient of an Award under this Article X shall not be
                  entitled to receive, currently or on a deferred basis,
                  dividends or dividend equivalents with respect to the number
                  of shares of Common Stock covered by the Award, as determined
                  at the time of the Award by the Committee, in its sole
                  discretion.

         (b)      Vesting. Any Award under this Article X and any Common Stock
                  covered by any such Award shall vest or be forfeited to the
                  extent so provided in the Award agreement, as determined by
                  the Committee, in its sole discretion.

         (c)      Price. Common Stock issued on a bonus basis under this Article
                  X may be issued for no cash consideration; Common Stock
                  purchased pursuant to a purchase right awarded under this
                  Article X shall be priced, as determined by the Committee in
                  its sole discretion, except to the extent required by law,
                  such price may not be less than par value.

                                   ARTICLE XI

                          CHANGE IN CONTROL PROVISIONS

         11.1 BENEFITS. In the event of a Change in Control of the Company (as
defined below), and except as otherwise provided by the Committee in an Award
agreement or, if no rights of the Participants are reduced, thereafter, no
acceleration of vesting or lapsing of restrictions shall occur with respect to
an Award. Notwithstanding the foregoing, the Committee may determine, prior to
the occurrence of the Change in Control, that the Award shall be continued,
assumed, have new rights substituted therefor or be treated in accordance with
Section 4.2(d) hereof. The Committee, in its sole discretion, may also provide
at the time of grant for the purchase of any Awards by the Company or an
Affiliate for an amount of cash equal to the excess of the Change in Control
Price (as defined below) of the shares of Common Stock covered by such Awards,

                                       22
<PAGE>

over the aggregate exercise price of such Awards. For purposes of this Section
11.1, Change in Control Price shall mean the average Fair Market Value of a
share of Common Stock during the 20 trading days immediately prior to a Change
in Control of the Company.

         CHANGE IN CONTROL. A "Change in Control" shall mean either of the
following events: (a) the acquisition (other than from the Company) by any
"Person" of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 50% or more of the combined voting power of the
Company's then outstanding voting securities other than by Michael Egan and/or
Edward Cespedes or either or their respective affiliates; or (b) approval by the
stockholders of the Company of (i) a merger or consolidation involving the
Company if the stockholders of the Company, immediately before such merger or
consolidation do not, as a result of such merger or consolidation, own, directly
or indirectly, more than 50% of the combined voting power of the then
outstanding voting securities of the corporation resulting from such merger or
consolidation or (ii) a complete liquidation or dissolution of the Company or an
agreement for the sale or other disposition of all or substantially all of the
assets of the Company. For purposes of clause (b)(ii), it shall not be a Change
of Control in the event the Company elects to sell all or substantially all of
its (or its subsidiaries) assets relating to Computer Games Print Magazine,
Computer Games On-Line and/or Chips and Bits, Inc. businesses.

                                   ARTICLE XII

         TERMINATION OR AMENDMENT OF PLAN/NON-TRANSFERABILITY OF AWARDS

         12.1 TERMINATION OR AMENDMENT. Notwithstanding any other provision of
this Plan, the Board may at any time, and from time to time, amend, in whole or
in part, any or all of the provisions of the Plan (including any amendment
deemed necessary to ensure that the Company may comply with any regulatory
requirement referred to in Article XIV), or suspend or terminate it entirely,
retroactively or otherwise; provided, however, that, unless otherwise required
by law, to comply with applicable law or applicable accounting rules, to correct
obvious drafting errors, or as specifically provided herein, the rights of a
Participant with respect to Awards granted prior to such amendment, suspension
or termination, may not be impaired without the consent of such Participant.
Notwithstanding the foregoing, following receipt of stockholder approval of the
Plan, the Plan may not be amended without the approval of the stockholders of
the Company in accordance with the applicable laws of the State of Delaware to
increase the aggregate number of shares of Common Stock that may be issued under
this Plan, decrease the minimum exercise price of any Award, or to make any
other amendment that would require stockholder approval under the rules of any
exchange or system on which the Company's securities are listed or traded at the
request of the Company. The Committee may amend the terms of any Award
theretofore granted, prospectively or retroactively, but, subject to Article IV
above or as required by law, to comply with applicable law or applicable
accounting rules, to correct obvious drafting errors, or as otherwise
specifically provided herein, no such amendment or other action by the Committee
shall impair the rights of any holder without the holder's consent.

         12.2 NON-TRANSFERABILITY OF AWARDS. Except as the Committee may permit,
in its sole discretion, at the time of grant or thereafter, no Award shall be
Transferable by the

                                       23
<PAGE>

Participant (including, without limitation to, a Family Member) otherwise than
by will or by the laws of descent and distribution, and all Awards shall be
exercisable, during the Participant's lifetime, only by the Participant Any
attempt to Transfer any Award or benefit not otherwise permitted Committee in
accordance with the foregoing sentence shall be void, and any such benefit shall
not in any manner be liable for or subject to the debts, contracts, liabilities,
engagements or torts of any person who shall be entitled to such benefit, nor
shall it be subject to attachment or legal process for or against such person. A
Stock Option that is Transferred pursuant to the preceding sentence (i) may not
be subsequently Transferred otherwise than by will or by the laws of descent and
distribution, except as may otherwise be permitted by the Committee and (ii)
remains subject to the terms of this Plan and the applicable Award agreement.
Any shares of Common Stock acquired by a permissible transferee shall continue
to be subject to the terms of this Plan and the applicable Award agreement.

                                  ARTICLE XIII

                                  UNFUNDED PLAN

         13.1 UNFUNDED STATUS OF PLAN. This Plan is intended to constitute an
"unfunded" plan for incentive and deferred compensation. With respect to any
payments as to which a Participant has a fixed and vested interest but which are
not yet made to a Participant by the Company, nothing contained herein shall
give any such Participant any rights that are greater than those of a general
unsecured creditor of the Company.

                                   ARTICLE XIV

                               GENERAL PROVISIONS

         14.1 LEGEND AND CUSTODY. The Committee may require each person
receiving shares of Common Stock pursuant to a Stock Option or other Award under
the Plan to represent to and agree with the Company in writing that the
Participant is acquiring the shares without a view to distribution thereof. In
addition to any legend required by this Plan, the certificates for such shares
may include any legend which the Committee deems appropriate to reflect any
restrictions on Transfer.

         All certificates for shares of Common Stock delivered under the Plan
shall be subject to such stop transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations and other requirements
of the Securities and Exchange Commission, any stock exchange upon which the
Common Stock is then listed or any national securities exchange system upon
whose system the Common Stock is then quoted, any applicable Federal or state
securities law, and any applicable corporate law, and the Committee may cause a
legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

         If stock certificates are issued in respect of an Award, the Committee
may require that any stock certificates evidencing such Award be held in custody
by the Company until the Award has vested or the restrictions thereon shall have
lapsed, and that, as a condition of any grant of such an Award, the Participant
shall have delivered a duly signed stock power, endorsed in blank, relating to
the Common Stock covered by such Award.

                                       24
<PAGE>

         14.2 OTHER PLANS. Nothing contained in this Plan shall prevent the
Board from adopting other or additional compensation arrangements, subject to
stockholder approval if such approval is required; and such arrangements may be
either generally applicable or applicable only in specific cases.

         14.3 NO RIGHT TO EMPLOYMENT/DIRECTORSHIP/CONSULTANCY. Neither this Plan
nor the grant of any Option or other Award hereunder shall give any Participant
or other employee, Consultant or Non-Employee Director any right with respect to
continuance of employment, consultancy or directorship by the Company or any
Affiliate, nor shall they be a limitation in any way on the right of the Company
or any Affiliate by which an employee is employed or a Consultant or
Non-Employee Director is retained to terminate his or her employment,
consultancy or directorship at any time.

         14.4 WITHHOLDING OF TAXES. The Company shall have the right to deduct
from any payment to be made pursuant to this Plan, or to otherwise require,
prior to the issuance or delivery of any shares of Common Stock or the payment
of any cash hereunder, payment by the Participant of, any Federal, state or
local taxes required by law to be withheld. Upon the vesting of a Restricted
Stock Award (or other Award that is taxable upon vesting), or upon making an
election under Section 83(b) of the Code, a Participant shall pay all required
withholding to the Company. The minimum statutorily required withholding
obligation with regard to any Participant may be satisfied, subject to the
consent of the Committee, by reducing the number of shares of Common Stock
otherwise deliverable or by delivering shares of Common Stock already owned. Any
fraction of a share of Common Stock required to satisfy such tax obligations
shall be disregarded and the amount due shall be paid instead in cash by the
Participant.

         14.5 LISTING AND OTHER CONDITIONS.

         (a)      Unless otherwise determined by the Committee, as long as the
                  Common Stock is listed on a national securities exchange or
                  system sponsored by a national securities association, the
                  issue of any shares of Common Stock pursuant to an Award shall
                  be conditioned upon such shares being listed on such exchange
                  or system. The Company shall have no obligation to issue such
                  shares unless and until such shares are so listed, and the
                  right to exercise any Option or other Award with respect to
                  such shares shall be suspended until such listing has been
                  effected.

         (b)      If at any time counsel to the Company shall be of the opinion
                  that any sale or delivery of shares of Common Stock pursuant
                  to an Option or other Award is or may in the circumstances be
                  unlawful or result in the imposition of excise taxes on the
                  Company under the statutes, rules or regulations of any
                  applicable jurisdiction, the Company shall have no obligation
                  to make such sale or delivery, or to make any application or
                  to effect or to maintain any qualification or registration
                  under the Securities Act or otherwise, with respect to shares
                  of Common Stock or Awards, and the right to exercise any
                  Option or other Award shall be suspended until,

                                       25
<PAGE>

                  in the opinion of said counsel, such sale or delivery shall be
                  lawful or will not result in the imposition of excise taxes on
                  the Company.

         (c)      Upon termination of any period of suspension under this
                  Section 14.5, any Award affected by such suspension which
                  shall not then have expired or terminated shall be reinstated
                  as to all shares available before such suspension and as to
                  shares which would otherwise have become available during the
                  period of such suspension, but no such suspension shall extend
                  the term of any Award.

         (d)      A Participant shall be required to supply the Company with any
                  certificates, representations and information that the Company
                  requests and otherwise cooperate with the Company in obtaining
                  any listing, registration, qualification, exemption, consent
                  or approval the Company deems necessary or appropriate.

         14.6 GOVERNING LAW. This Plan and actions taken in connection herewith
shall be governed and construed in accordance with the laws of the State of
Delaware (regardless of the law that might otherwise govern under applicable
Delaware principles of conflict of laws).

         14.7 CONSTRUCTION. Wherever any words are used in this Plan in the
masculine gender they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever any words
are used herein in the singular form they shall be construed as though they were
also used in the plural form in all cases where they would so apply.

         14.8 OTHER BENEFITS. No Award granted or paid out under this Plan shall
be deemed compensation for purposes of computing benefits under any retirement
plan of the Company or its Affiliates nor affect any benefits under any other
benefit plan now or subsequently in effect under which the availability or
amount of benefits is related to the level of compensation.

         14.9 COSTS. The Company shall bear all expenses associated with
administering this Plan, including expenses of issuing Common Stock pursuant to
any Awards hereunder.

         14.10 NO RIGHT TO SAME BENEFITS. The provisions of Awards need not be
the same with respect to each Participant, and such Awards to individual
Participants need not be the same in subsequent years.

         14.11 DEATH/DISABILITY. The Committee may in its discretion require the
transferee of a Participant to supply it with written notice of the
Participant's death or Disability and to supply it with a copy of the will (in
the case of the Participant's death) or such other evidence as the Committee
deems necessary to establish the validity of the transfer of an Award. The
Committee may also require that the agreement of the transferee to be bound by
all of the terms and conditions of the Plan.

         14.12 SECTION 16(B) OF THE EXCHANGE ACT. All elections and transactions
under this Plan by persons subject to Section 16 of the Exchange Act involving
shares of Common Stock are intended to comply with any applicable exemptive
condition under Rule 16b-3. The

                                       26
<PAGE>

Committee may establish and adopt written administrative guidelines, designed to
facilitate compliance with Section 16(b) of the Exchange Act, as it may deem
necessary or proper for the administration and operation of this Plan and the
transaction of business thereunder.

         14.13 SUCCESSOR AND ASSIGNS. The Plan shall be binding on all
successors and permitted assigns of a Participant, including, without
limitation, the estate of such Participant and the executor, administrator or
trustee of such estate.

         14.14 SEVERABILITY OF PROVISIONS. If any provision of the Plan shall be
held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provisions hereof, and the Plan shall be construed and enforced
as if such provisions had not been included.

         14.15 PAYMENTS TO MINORS, ETC. Any benefit payable to or for the
benefit of a minor, an incompetent person or other person incapable of receipt
thereof shall be deemed paid when paid to such person's guardian or to the party
providing or reasonably appearing to provide for the care of such person, and
such payment shall fully discharge the Committee, the Board, the Company, its
Affiliates and their employees, agents and representatives with respect thereto.

         14.16 HEADINGS AND CAPTIONS. The headings and captions herein are
provided for reference and convenience only, shall not be considered part of the
Plan, and shall not be employed in the construction of the Plan.

                                   ARTICLE XV

                             EFFECTIVE DATE OF PLAN

         The Plan shall become effective upon the date specified by the Board in
its resolution adopting the Plan.

                                   ARTICLE XVI

                                  TERM OF PLAN

         No Award shall be granted pursuant to the Plan on or after the tenth
anniversary of the date the Plan is adopted, but Awards granted prior to such
tenth anniversary may extend beyond that date.

                                  ARTICLE XVII

                                  NAME OF PLAN

         This Plan shall be known as "theglobe.com, inc. 2004 Stock Incentive
Plan."

                                       27
<PAGE>

                                    EXHIBIT A

                                PERFORMANCE GOALS

         Performance goals established for purposes of the vesting of
performance-based Restricted Stock Awards, Performance Awards and/or Other
Stock-Based Awards ("Performance Goals") may be based on performance criteria
which may include, without limitation, the following: (i) the attainment of
certain target levels of, or a specified increase in, enterprise value or value
creation targets of the Company (or any subsidiary, division or other
operational unit of the Company); (ii) the attainment of certain target levels
of, or a percentage increase in after-tax or pre-tax profits of the Company,
including without limitation that attributable to continuing and/or other
operations of the Company (or in either case a subsidiary, division, or other
operational unit of the Company); (iii) the attainment of certain target levels
of, or a specified increase in, operational cash flow of the Company (or a
subsidiary, division, or other operational unit of the Company); (iv) the
attainment of a certain level of reduction of, or other specified objectives
with regard to limiting the level of increase in all or a portion of, the
Company's bank debt or other long-term or short-term public or private debt or
other similar financial obligations of the Company, which may be calculated net
of cash balances and/or other offsets and adjustments as may be established by
the Committee; (v) the attainment of a specified percentage increase in earnings
per share or earnings per share from continuing operations of the Company (or a
subsidiary, division or other operational unit of the Company); (vi) the
attainment of certain target levels of, or a specified percentage increase in,
net sales, revenues, net income or earnings before interest, taxes, depreciation
and amortization ("EBITDA"); (vii) the attainment of certain target levels of,
or a specified increase in, return on capital employed or return on invested
capital of the Company (or any subsidiary, division or other operational unit of
the Company); (viii) the attainment of certain target levels of, or a percentage
increase in, after-tax or pre-tax return on stockholder equity of the Company
(or any subsidiary, division or other operational unit of the Company); (ix) the
attainment of certain target levels in the fair market value of the shares of
the Company's Common Stock; (x) the growth in the value of an investment in the
Company's Common Stock assuming the reinvestment of dividends; or (xi) a
transaction that results in the sale of stock or assets of the Company. The
Committee may also exclude the impact of an event or occurrence which the
Committee determines should be appropriately excluded, including (i)
restructurings, discontinued operations, extraordinary items, and other unusual
or non-recurring charges, (ii) an event either not directly related to the
operations of the Company or not within the reasonable control of the Company's
management, or (iii) a change in accounting standards required by generally
accepted accounting principles.

         In addition, such Performance Goals may be based upon the attainment of
specified levels of Company (or subsidiary, division or other operational unit
of the Company) performance under one or more of the measures described above
relative to the performance of other corporations. The Committee may: (i)
designate additional business criteria on which the performance goals may be
based or (ii) adjust, modify or amend the aforementioned business criteria.

                                       28

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