Document:

EXHIBIT 10.05

                               SECURITY AGREEMENT
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     SECURITY AGREEMENT (the "Security Agreement"), dated as of September 26,
2001 by and between ROBERTS & GREEN, INC., a New York Corporation having an
office at One Hollow Lane, Suite 208, Lake Success, New York, 11040 (the
"Secured Party"), and IMAGENETIX, INC. a Nevada corporation having an office at
16935 West Bernardo Drive, Suite l01, San Diego, California 92127 (the
"Company").

                                   WITNESSETH:
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     WHEREAS, the Secured Party intends to make loans ("Advances") to the
Company in an aggregate amount of up to One Million Dollars ($1,000,090) (the
"Indebtedness"), as evidenced by that certain promissory note dated as of
September 26, 2O0l made by the Company in favor of the Secured Party (the
"Note"); and

     WHEREAS, in order to induce the Secured Party to make said Advances, and to
make additional Advances in the future pursuant to the Note, the Company has
agreed to pledge to the Secured Party certain property as security for the loan;

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

     1. Definitions. The following terms as used in this Security Agreement
shall have the meanings set forth below:

     "Account Debtor" means the party who is obligated on or under an Account.

     "Accounts" mean any "account" as defined in Section 9-106 of the UCC,
     including, without limitation, all present and future rights of the Company
     to payment for goods sold or leased or for services rendered by any person,
     including, without limitation, nIl receivables, which are not evidenced by
     Instruments or Chattel Paper, and whether or not they have been earned by
     performance.

     "Chattel Paper" means any "chattel paper", as such term is defined in
     Section 9-1 05(l)(b) of the UCC, now owned or hereafter acquired by the
     Company.

     "Contracts" means all contracts, undertakings, or other agreements, rights
     evidenced by Chattel Paper, Documents or Instruments in or under which the
     Company may now or hereafter have any right, title or interest, including,
     without limitation, with respect to an Account, any agreement relating to
     the terms of payment or the terms or performance thereof.

     "Documents" means any "documents", as such term is defined in Section
     9-1O5(l)ffl of the UCC, now owned or hereafter acquired by the Company.

     "Equipment" means all of the Company's now owned or hereafter acquired
     machinery, equipment (including, without limitation, motor vehicles),
     furniture, furnishings, fixtures and all tangible personal property similar
     to any of the foregoing (other than Inventory), together with tools and
     machine parts of every kind and description, and all improvements,
     accessions and appurtenances thereto, and any Proceeds thereof, including
     insurance proceeds and condemnation awards.

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     "General Intangibles" means all chases in action, causes of action and all
     other intangible personal property of the Company of every kind and nature
     (other than Accounts) now owned or hereafter acquired by the Company,
     including, without limitation, corporate, partnership, limited liability
     company or other business records, proprietary rights, inventions, designs,
     trade secrets, goodwill, registrations, permits, licenses, contract rights
     (including, without limitation, the right to any rents, issues, or profits
     from any source), customer lists, tax refund claims, rights and claims
     against carriers and shippers, rights to indemnification, and any letter of
     credit, guaranty, security interact or other security held by or granted to
     the Company to secure payment by an Account Debtor.

     "Instruments" means any "instrument", as such term is defined in Section
     9-I O5(l)(i) of the UCC, now owned or hereafter acquired by the Company,
     other than instruments that constitute, or are a part of a group of
     writings that constitute, Chattel Paper.

     "Inventory" means any and all inventory and goods, including, without
     limitation, goods in transit, wheresoever located, whether now owned or
     hereafter acquired by the Company, which are held for sale or lease,
     furnished under any contract of service or held as raw materials, work in
     process or supplies, and all materials used or consumed in the Company's
     business.

     "Liens" mean any interest in any kind of property or asset, whether real,
     personal or mixed, tangible or intangible, securing an obligation owed to,
     or a claim by, a person other than the owner of such property or asset,
     whether such interest is based on the common law, statute or contract, and
     including but not limited to, the security interest, charge, claim, or lien
     arising from a mortgage, deed of trust, encumbrance, pledge, hypothecation,
     assignment, deposit arrangement, security agreement, conditional sale or
     trust receipt or a lease, consignment or bailment for security purposes.
     The term "Lien" shall include reservations, exceptions, encroachments,
     casements, rights-of-way, covenants, conditions, restrictions, leases and
     other title exceptions and encumbrances affecting property.

     "Proceeds" means "proceeds," as such term is defined in Section 9-3O6(1) of
     the UCC.

     "Secured Obligations" means the obligations of the Company under the Note,
     all costs and expenses incurred with the collection of the Indebtedness,
     all future advances made by the Secured Party for taxes, levies, insurance
     and repairs to or maintenance of the Collateral (as hereinafter defined)
     and all other amounts and other sums at any time due and owing from or
     required to be paid by the Company under any promissory note or loan
     document to or for the benefit of the Secured Party.

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     "UCC" shall mean the Uniform Commercial Code (or any successor statute) of
     the State of New York or of any other state the laws of which are required
     by Section 9-103 thereof to be applied in connection with the issue of
     perfection of security interests.

     2. Security Interest. As collateral security for the prompt and complete
payment and performance when due (whether at stated maturity, by acceleration or
otherwise) of the Secured Obligations, the Company hereby assigns, conveys,
mortgages, pledges, hypothecates and transfers to the Secured Party, and hereby
grants to the Secured Party a first priority, perfected security interest in,
all of the Company's right, title and interest in, to and under the following,
whether tangible or intangible, contingent or otherwise, whether now owned or
existing or hereafter acquired, and wherever located (all of which being
hereinafter collectively called the "Collateral"):

          a.   all Accounts;

          b.   all Chattel Paper;

          c.   all Contracts;

          d.   all Documents;

          e.   all Equipment;

          f.   all General Intangibles;

          g.   all Instruments;

          h.   all Inventory;

          i.   to the extent not otherwise included, all Proceeds of each of the
               foregoing and all accessions to, substitutions and replacements
               for, and profits and products of, each oldie foregoing.

     Standard of Care: Non assignment. (a) Under no circumstances shall the
Secured Party be deemed to assume any responsibility for or obligation or duty
with respect to any part or all of the Collateral of any nature or kind, or any
matter, litigation, suit, claim or other proceeding of any nature or kind
arising out of, or relating thereto, but the same shall be at the Company's sole
and exclusive risk at all times. The Secured Party shall not be required to take
or refrain from taking any action of any kind to collect, preserve or protect
its or the Company's rights in the Collateral or against other parties thereto.
The Secured Party's prior recourse to any part or all of the Collateral shall
not constitute a condition of any demand, litigation, suit, claim or other
proceeding of any nature or kind for payment or collection of the Secured
Obligations. The Company agrees to indemnify the Secured Party from and against

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any and all claims, losses and obligations under this Security Agreement
(including without limitation enforcement of this Security Agreement against the
Company), except claims, losses or liabilities arising from the Secured Party's
gross negligence or willful misconduct.

     (b) Notwithstanding Section 2 hereof, to the extent the grant of the
security interest contemplated hereunder in any General intangible or Contract
or the Proceeds thereof shall be prohibited by the terms thereof or any
applicable governmental law or regulation or rule of a self-regulated entity, or
requires the consent or waiver of or the filing of notice with any person,
governmental agency or self-regulated entity, where the effect of such
prohibition or the failure to obtain such consent, waiver or notice would result
in the loss or termination of such General Intangible or Contract or would have
a material adverse effect on the Company, then in such event, but subject to
Sections 9 and 13 hereof, the grant of security interest hereunder shall not
attach to any such General Intangible or Contract, but the Company nevertheless
shall hold such General Intangible or Contract free and clear of Liens and for
the benefit of the Secured Party.

     3. The Company's Obligations To Pay. The Company shall pay and perform all
of the Secured Obligations of the Company to the Secured Party as the same may
become due according to their terms.

     4. Title of The Collateral. The Company shall defend the title to the
Collateral against all claims and demands whatsoever.

     5. Protection of The Collateral. The Company represents and covenants that
the Collateral is, and shall at all times be and remain, owned by the Company
free and clear of any Liens, except for such Liens which are in favor of the
Secured Party or specifically consented to in writing by the Secured Party, The
Company warrants and shall defend the Secured Party's right, title, property and
security interest in and to the Collateral against the claim of any person or
entity.

     6. Disposition or Encumbrance of Collateral. Except for the Inventory in
the ordinary course of business, the Company will not sell, exchange Or
otherwise dispose of, or encumber (except pursuant to this Security Agreement)
or incur or permit to exist any Liens with respect to any of the Collateral, or
any rights thereto, without having obtained the Secured Party's prior written
consent in each instance,

     7. Discharge of Liens. The Company shall promptly pay and cause the
discharge of, bond off or otherwise contest in good faith pursuant to applicable
law, any Liens, taxes or assessments which may be levied upon the Collateral.

     8. Filing.6nt.Recording. At any time and from time to time, upon request of
the Secured Party, the Company will, at its own cost and expense, execute and
deliver to the Secured Party one or more financing statements pursuant to the
applicable UCC or amendments or continuations thereof, and any other documents,
consents, waivers, filings or notices required by the Secured Party to further
evidence, effect or perfect the security interest granted herein or to otherwise
effectuate the purposes of this Security Agreement, including, without
limitation, using its best efforts to obtain to the extent consistent with

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applicable law, all consents and approvals necessary or appropriate for the
assignment to the Secured Party of any Account, General Intangible, Contract or
Instrument held by the Company or in which the Company has any rights not
heretofore assigned, and, to the extent permitted by applicable law, the Company
hereby authorizes the Secured Party to execute and file at any time or times one
or more financing statements pursuant to the applicable UCC with respect to any
or all of the Collateral, signed only by the Secured Party. The Company hereby
agrees that a carbon, photographic or other reproduction of this Security
Agreement or of a financing statement shall be sufficient as a financing
statement. The Company hereby appoints the Secured Party as its attorney-in-fact
to file or refile any financing statements or continuation statements with
respect to the security interest granted pursuant to this Security Agreement
which at any time may be required or appropriate, although the same may have
been executed only by the Secured Party, to execute such financing statement on
behalf of the Company and to protect the Collateral. The Company shall pay all
costs of tiling any such financing, continuation or termination statements.

     9. Default. The occurrence of any one or more of the following events
(hereinafter referred to as "Events of Default") shall constitute a default
hereunder:

     (a) If an Event of Default (as defined in the Note) shall occur and be
     continuing under the Note; or

     (b) If the Company shall fail to pay, perform or observe any material
     covenant, agreement, term or provision of this Security Agreement; or

     (c) The Company shall admit in writing its inability to, or be generally
     unable to, pay its debts as such debts become due; or (ii) the Company
     shall (A) apply for or consent to the appointment of, or the taking of
     possession by, a receiver, custodian, trustee or liquidator of itself or of
     all or a substantial part of its property, (B) make a general assignment
     for the benefit of its creditors, (C) commence a voluntary case under the
     bankruptcy law of the relevant jurisdiction; (1)) file a petition seeking
     to take advantage of any other law relating to bankruptcy, insolvency,
     reorganization, winding-up, or composition or readjustment of debts, (E)
     fail to controvert in a timely arid appropriate manner, or acquiesce in
     writing to any petition flied against it in an involuntary case under the
     bankruptcy law of the relevant jurisdiction, (F) take any corporate action
     for the purpose of effecting any of the foregoing; or (iii) a proceeding or
     case shall be commenced, without the application or consent of the Company,
     in any court of competent jurisdiction, seeking (A) its liquidation,
     reorganization, dissolution or winding-up, or the composition or
     readjustment of its debts, or (B) the appointment of a trustee, receiver,
     custodian, liquidator or the like of the Company or of all or any
     substantial part of its assets; or (iv) an order for relief against the
     Company shall be entered in an involuntary case under the bankruptcy law of
     the relevant jurisdiction seeking (A) its liquidation, reorganization,
     dissolution or winding-up, or the composition or readjustment of its debts,
     or (13) any other of the actions described in clauses (i) through (iv)
     hereof.

     (d) if all or any part of the Collateral shall be further encumbered,
     hypothecated, mortgaged, or made subject to any other Lien without the
     prior written consent of the Secured Party.

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     10. Rights And Remedies. Upon the occurrence and during the continuance of
any Event of Default pursuant to Section 10 of this Security Agreement the
Secured Party shall:

     (a) Have all rights and remedies provided by the 13CC in effect in the
     states in which UCC filings are made; and

     (b) Any rights and remedies provided to the Secured Party pursuant the
     Note; and

     (c) Without limiting the generality of the foregoing, the Company without
     demand of performance or the demand, advertisement or notice of any kind
     (except the notice specified below of time and place of public or private
     sales to or upon Secured Party or any other person (all and each of which
     demands, advertisements and/or notices are hereby expressly waived to the
     maximum extent permitted by the UCC and other applicable law), may
     forthwith collect, receive, appropriate and realize upon the Collateral, or
     any part thereof, and/or may forthwith sell, lease, assign, give an option
     or options to purchase, or sell or otherwise dispose of and deliver said
     Collateral (or contract to do so), or any part thereof, in a commercially
     reasonable manner and otherwise in compliance with the UCC and other
     applicable law, in one or more parcels at public or private sale Or sales
     for cash or on credit or for future delivery without assumption or any
     credit risk. The Secured Party shall have the right upon any such public
     sale or sales, and, to the extent permitted by Law, upon any such private
     sale or sales, to purchase in whole or any part of the Collateral so sold.
     The Company hereby waives to the full extent permitted by law all right and
     redemption or appraisal whether before or after sale. The Company agrees,
     at the Secured Party's request, to assemble the Collateral and make it
     available to the Company at places which the Secured Party shall reasonably
     select, whether at the Company's premises or elsewhere. The Secured Party
     shall apply the net proceeds of any such collection, recovery, receipt,
     appropriation, realization or sale, as provided in Section 11(1) hereof,
     the Company remaining liable for any deficiency remaining unpaid after such
     application, including, the reasonable fees of any attorneys employed by
     the Secured Party to collect such deficiency, and only after so paying over
     such net proceeds and fees and after the payment by the Company of any
     other amount required by any provision of law, including Section 9-504
     (1)(c) of the UCC, need the Secured Party account for the surplus, if any,
     to the Company. To the maximum extent permitted by applicable law, the
     Company waives at! claims, damages and demands against the Secured Party
     arising out of the repossession, retention or sale of the Collateral except
     such as arise out of the gross negligence or willful misconduct of the
     Secured Party. The Company agrees that the Secured Party need not give more
     than ten (10) days' notice (which notification shall when mailed,
     telecopied or delivered, respectively, be effective when deposited in the
     mails, telecopied with confirmation of receipt, delivered by hand to the
     addressee or its agent or delivered to the overnight courier, addressed to
     the Company at its address referred to herein) of the time and place of any
     public sale or of the time after which a private sale may take place and
     that such notice is reasonable notification of such matter.

     (d) The Company also agrees to pay all reasonable costs to the Secured
     Party, including, without limitation, reasonable attorneys' fees, incurred
     in connection with the enforcement of any of its rights and remedies
     hereunder.

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     (e) Except as provided in paragraph (c) above, the Company hereby waives
     presentment, demand, protest or any notice (to the maximum extent permitted
     by applicable law) of any kind in connection with this Security Agreement
     or any Cot lateral.

     (f) The Secured Party shall apply the net proceeds of any such collection,
     recovery, receipt, appropriation, realization or sale, after deducting all
     reasonable costs and expenses of every kind incurred therein or incidental
     to the care or safekeeping of any of the Collateral or in any way relating
     to the Collateral or the rights of the Secured Party hereunder, including,
     without limitation, reasonable attorneys' fees and disbursements, to the
     payment in whole or in part of the indebtedness, in such order as the
     Secured Party may elect, and only after such application and after the
     payment by the Secured Party of any other amount required by any provision
     of law, including, without limitation, of the UCC, should the Secured Party
     be required to account for the surplus, if any, to the Borrower.

     (g) The rights and remedies of tile Lender under this Security Agreement
     are cumulative, may be exercised singly or concurrently and are not
     exclusive of any rights and remedies provided by law; nor shall the giving,
     taking or enforcement of any other or additional security, collateral or
     guaranty for the payment of the Secured Obligations operate to prejudice,
     waive or affect the security of this Security Agreement or any rights,
     powers or remedies hereunder, nor shall the Secured Party be required to
     first look to, enforce or exhaust such other or additional security,
     collateral or guaranties.

     (h) The Secured Party's sole duty with respect to the custody, safekeeping
     and physical preservation of the Collateral in its possession shall be to
     deal with it in the same manner as the Secured Party deals with similar
     property for its own account. Neither the Secured Party nor any of its
     employees or agents shall be liable for failure to demand, collect or
     realize upon all or any part of the CoLlateral or for any delay in doing so
     or shall be under arty obligation to sell or otherwise dispose of any
     Collateral upon the request of the Company or otherwise.

     11. The Company's Representations And Warranties. The Company hereby
represents and warrants to the Secured Party that:

     (a) The Company is a corporation duly incorporated, validly existing and in
     good standing under the laws of the State of Nevada,

     (b) The Company is not in default under any indenture, mortgage, deed of
     trust, agreement or other instrument to which the Company is a party Or by
     which the Company may be bound. Neither the execution nor the delivery of
     the Note, this Security Agreement, nor the consummation of the transactions
     herein contemplated, nor compliance with the provisions hereof, will
     violate any law or regulation, or any order or decree of any court of
     governmental authority, or will conflict with, or result in the breach of,
     or constitute a default under, any indenture, mortgage, deed or trust,
     agreement or other instrument to which the Company is a party or by which
     the Company may be bound, or result in the creation or imposition of any
     Lien or claim upon any property of the Company.

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     (c) The Company has taken all action necessary to authorize the execution,
     delivery and performance of the Note, this Security Agreement and all other
     agreements and instruments necessary to complete the transactions
     contemplated by the Note and this Security Agreement, and has full power
     and authority to enter into such agreements and carry out the terms hereof
     without the consent of any party except as disclosed in this Security
     Agreement. The Company's execution of this Security Agreement constitutes a
     valid binding and enforceable obligation enforceable in accordance with its
     terms.

     (d) No authorization, approval, order, license, permit, franchise, or
     Consent and no registration, declaration or filing by or with any
     governmental authority, and no consent of any third party, is required in
     connection with the execution and delivery by the Company of this Security
     Agreement and the consummation of the transactions contemplated hereby.

     (e) The Company will comply, in all material respects, with all acts,
     rules, regulations, orders, decrees and directions of any governmental
     authority applicable to the Collateral or any part thereof or to the
     operation of the Company's business.

     (f) There is no pending, or to the best knowledge of the Company,
     threatened action or proceeding affecting the Company before any Court,
     governmental agency or arbitrator, which would materially adversely affect
     the ability of the Company to perform its obligations under the Note or
     this Security Agreement or which may materially adversely affect the
     financial condition or operations of the Company.

     (g) Except for the security interest granted pursuant to this Security
     Agreement, the Company is the sole owner of each item of the Collateral in
     which it purports to grant a security interest hereunder, having good and
     marketable title thereto, free and clear of any and all Liens.

     (h) No effective security agreement, financing statement, equivalent
     security Or lien instrument or continuation covering all or any part of the
     Collateral is on file or of record in any public office which has not been
     terminated concurrently with the execution hereof.

     (i) No default exists, and no event which with notice or the passage of
     time, or both, would constitute a default under any Contract included in
     the Collateral by any party thereto, exists, and there are no offsets,
     claims or defenses against the obligations evidenced by the Collateral.

     (j) No consent is required in order for the Company to grant the Lien given
     to the Secured Party hereunder.

     12, Covenants. The Company covenants and agrees with the Secured Party that
from and after the date of this Security Agreement and until the Secured
Obligations are indefeasibly paid in full:

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     (a) Maintenance of Records. The Company will keep and maintain at its own
     cost and expense satisfactory and complete records of the Collateral,
     including, without limitation, a record of all payments received and all
     credits granted with respect to the Collateral and all other dealings with
     the Collateral. The Company will mark its books and records pertaining to
     the Collateral to evidence this Security Agreement and the security
     interests granted hereby. For the Secured Party's security, the Company
     agrees that the Secured Party shall have a special property interest in all
     of such the Company's books and records pertaining to the Collateral and
     upon the occurrence and during the continuation of any Event of Default,
     the Company shall deliver and turn over any such books and records to the
     Secured Party or to its representatives at any time on demand of the
     Secured Party prior to the occurrence an Event of Default and upon
     reasonable notice from the Secured Party, the Company shall permit any
     representative of the Scoured Party to inspect such books and records and
     will provide photocopies thereof to the Secured Party.

     (b) lndemnification. In any suit, proceeding or action brought by the
     Secured Party relating to any Account, Contract or any Instrument for any
     sum owing thereunder, or to enforce any provision of any Account, Contract
     or Instrument, the Company will save, indemnify and keep the Secured Party
     harmless from and against all expense, loss or damage suffered by reason or
     any defense, setoff, counterclaim, recoupment or reduction of liability
     whatsoever of the obligor thereunder, arising out of a breach by the
     Company of any obligation thereunder or arising out of any other agreement,
     indebtedness or liability at any time owing to, or in favor of; such
     obligations or the Company shall be and remain enforceable against and only
     against the Company and shall not be enforceable against the Secured Party.

     (c) Compliance with Laws, Etc. The Company will comply, in all material
     respects, with all acts, rules, regulations, orders, decrees and directions
     of any governmental authority applicable to the Collateral or any part
     thereof or to the operation of the Company's business,

     (d) Maintenance and Taxes. The Company will maintain the Inventory,
     Equipment, real property or other tangible property now or from time to
     time included in the Collateral in good condition and repair; reasonable
     wear and tear excepted. The Company will pay promptly when due all taxes,
     assessments and governmental charges or levies imposed upon the Collateral
     Or in respect of its income or profits therefrom and all claims of any kind
     (including, without limitation, claims for labor, materials and supplies),
     except that no such charge need be paid if such non-payment does not, in
     the reasonable judgment of the Secured Party, involve any danger of the
     sale, forfeiture or loss of any of the Collateral or any interest therein.
     If the Company fails to pay such sums, the Secured Party may do so for the
     Company's account. In such event, the Company will promptly reimburse the
     Secured Party for the amounts expended.

     (e) Compliance with Terms of Accounts, Etc. The Company will perform and
     comply with all obligations in respect of Accounts, Contracts and all other
     agreements to which it is a party or by which it is bound except for such
     non-compliance as has, individually or in the aggregate, no reasonable
     likelihood of having a material adverse effect.

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     (f) Limitations on Modifications of Accounts. Upon the occurrence and
     during the continuation of any Event of Default, the Company will not,
     without the Secured Party's prior written consent, grant any extension of
     the time of payment of any of the Accounts, Contracts or Instruments,
     compromise, compound or settle the same For less than the full amount
     thereof, release, wholly or partly, any person liable for the payment
     thereof, or allow any credit or discount whatsoever thereon other than
     trade discounts granted in the ordinary course of business of the Company.

     (g) Further Identification of Collateral. The Company will, if so requested
     by the Secured agent, furnish to the Secured Party, as often as the Secured
     Party reasonably requests, statements and schedules further identifying and
     describing the Collateral and such other reports in connection with the
     Collateral as the Secured Party may reasonable request, all in reasonable
     detail.

     (h) Notices. The Company will advise the Secured Parry promptly upon
     becoming aware, in writing and in reasonable detail, (i) of any material
     Lien (other than Liens permitted hereby) on, or claim asserted against, any
     of the Collateral, (ii) of any material change in the composition of the
     Collateral, and (iii) of the occurrence of any other event which would have
     a material adverse effect on the aggregate value of the Collateral or on
     the Liens created hereunder.

     (i) Right of Inspection. Upon reasonable notice of the Company (unless an
     Event of Default has occurred and is continuing, in which ease no notice is
     necessary), the Secured Party shall at all times have full and free access
     during normal business hours to inspect the Collateral and to review all
     the hooks and records and correspondence of the Company and the Secured
     Party or its representatives may examine the same, take extracts therefrom
     and make photocopies thereof, and the Company agrees to render to the
     Secured Party at the Company's cost arid expense, such clerical and other
     assistance as may he reasonably requested with regard thereto,

     (j) Continuous Perfection. The Company's will not change its name, identify
     or corporate structure in any manner which might make any financing or
     continuation statement filed in connection herewith seriously misleading
     within the meaning of Section 9-402(7) of the UCC (or any other then
     applicable provision of the UCC) unless the Company shall have given the
     Secured Party at least thirty (30) days' prior written notice thereof and
     shall have taken all action (or made arrangements to take such action
     substantially simultaneously with such change if it is impossible to take
     such action in advance) necessary or reasonably requested by the Secured
     Party to amend such financing statement or continuation statement so that
     it is not seriously misleading. The Company will not change such principal
     place of business, the place where its Equipment and Inventory is located
     Or remove its records unless it has taken such action as is necessary to
     cause the security interest of the Secured Party in the Collateral to
     continue to be perfected

     13.Actions by the Secured Party. The Secured Party may, in his sole
discretion and at any time, for the account and expense of the Company, pay any
reasonable amount or do any reasonable act required of the Company hereunder or

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requested by the Secured Party to preserve, protect, maintain or enforce the
Secured Obligations, the Collateral or the security interest granted herein, and
which the Company fails to do or pay, after seven days' prior written notice,
including, without limitation, payment of any judgment against the Company, any
insurance premium, any licensing fee and any lien, claim or encumbrance upon or
with respect to the Collateral, and any such payment shall be added to the
Secured Obligations and shall be payable upon demand. The Company hereby
irrevocably constitutes and appoints the Secured Party and any representative
thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of the Company and in the name of the Company or in its own name, from
time to time in the Secured Party's discretion to carry out the terms of this
Security Agreement, to take all appropriate action, including the actions
described in the foregoing sentence, and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of
this Security Agreement. This power of attorney is a power coupled with an
interest and shall be irrevocable.

     14. Release of Lien. Upon the indefeasible payment in full of the Secured
Obligations, this Security Agreement and the obligations hereunder shall
terminate and, upon the request of the Company, the Secured Party will, at the
sole cost and expense of the Company, provide to the Company executed copies of
UCC termination statements and all other instruments and documents, and take
such other action as may be required, without any representation or warranty
with respect thereto, to evidence the release of the security interest paid
hereunder.

     15.Severability. Any provision of this Security Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforcability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforcability in any jurisdiction shall not invalidate or render unenforceable
such provisions in any other jurisdiction.

     16.CONSENT TO JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE
COMPANY OR THE SECURED PARTY ARISING OUT OF OR RELATING TO THIS SECURITY
AGREEMENT OR ANY OBLIGATION HEREUNDER MAY BE BROUGHT IN ANY STATE OF FEDERAL
COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK AND, BY EXECUTION AND
DELIVERY OF THIS SECURITY AGREEMENT, THE COMPANY AND THE SECURED PARTY ACCEPT
FOR THEMSELVES AND IN CONNECTION WITh THEIR PROPERTIES, GENERALLY AND
UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION 0F THE AFORESAID COURTS AND
WAIVE THE DEFENSE OF FORUM NON CONVENIENS.

     17. Notices. All notices, requests, demands or other communications
provided for herein shall he in writing and shall be deemed to have been
properly given if sent by registered or certified mail, return receipt
requested, addressed to the parties at their respective addresses herein above
set forth, or at such other addresses as the parties may designate in writing.
The Company immediately shall notify the Secured Party of any change in the
address of the Company or discontinuance of the place of business or residence
of the Company.

                                       11
<PAGE>

     18. Modification and Waiver. No modification or waiver of any provision of
this Security Agreement, and no consent by the Secured Party to any breach
thereof by the Company, shall be effective unless such modification or waiver
shall be in writing and signed by the Secured Party, and the same shall then be
effective only for the period and on the conditions and for the specific
instances and purposes specified in such writing. No course of dealing between
the Company and the Secured Party in exercising any rights or remedies hereunder
shall operate as a waiver or preclude the exercise of any other rights or
remedies hereunder. Without in any way affecting the liability of the Company
hereunder, the Secured Party may extend the time for payment of any amount due
hereunder, accept additional Collateral or release any portion of the Collateral
now or hereafter securing the Secured Obligations without in any other way
affecting the remaining Collateral or remaining liability and obligations of the
Company.

     19. Successors and Assigns. This Security Agreement and all obligations of
the Company hereunder shall be binding upon tile successors and assigns of the
Company, and shall, together with the rights and remedies hereunder of the
Secured Party inure to the benefit of the Secured Party and their respective
successors and assigns.

     20. Governing Law. This Security Agreement shall be construed in accordance
with and shall be governed by the laws of the State of New York without regard
to New York's principles of conflicts of laws.

     21. Captions. The captions and headings hereunder are for convenience only
and shall not affect the interpretation of this Security Agreement.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Security
Agreement on the date first above written.

                                             ROBERTS & GREEN, INC.

                                             By: /s/ James Scibelli
                                             ----------------------
                                             Name: James Scibelli
                                             President

                                             IMAGENETIX, INC.

                                             By: /s/ William P. Spencer
                                             --------------------------
                                             Name: William P. Spencer
                                             Title: President

                                       12
<PAGE>

STATE OF NEW YORK, COUNTY OF       , SS.:

     On the 26th day of September, 2001, before me personally came James
Scibelli, to me known, who, being by me duly sworn did depose and say that he
resides at 2936 Bay Drive, Merrick, NY, that he is the President of ROBERTS &
GREEN, INC. and who executed the foregoing Security Agreement, and acknowledged
that he signed his name thereto by authority of the President of such
corporation.

                                                 /s/ Rae Smolowitz
                                                 -----------------
                                                    Notary Public

                                               My commission expires on:

                                                    Rae Smolowitz
                                           Notary Public, State of New York
                                                     No. 4609886
                                              Qualified in Nassau County
                                              Commission Expires 10/31/02

                                  See Attached

STATE OF California, COUNTY OF          , SS:

     On the 24th day of September, 2001, before me personally came William P.
Spencer to me known who, being by me du1y sworn did depose and say that he
resides at 16935 W. Bernardo Dr., #101, San Diego, CA 92127, that he is the
President of IMAGENETIX, INC. and who executed the foregoing Security Agreement,
and acknowledged that he signed his name thereto by authority of the President
of such corporation.

                                                See Attached
                                                ------------
                                                Notary Public

                                          My commission expires on:

<PAGE>

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
--------------------------------------------------------------------------------

State of California

County of San Diego

On September 24, 2001 before me, Renee M. Brown, Notary Public, personally
appeared William P. Spencer personally known to me proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.

-----------------------------
            SEAL                           WITNESS my hand and official seal.
-----------------------------
        Renee M. Brown
    Commission # 1192549                   /s/ Renee M. Brown
 Notary Public - California                ------------------
     San Diego County                      Signature of Notary
My Comm. Expires Aug. 8, 2002
-----------------------------

--------------------------------------------------------------------------------
                                    OPTIONAL

Though the data below is not required by law, it may prove valuable to persons
relying on the document and could prevent fraudulent reattachment of this form.

  CAPACITY CLAIMED BY SIGNER                    DESCRIPTION OF ATTACHED DOCUMENT
      [ ]   INDIVIDUAL
      [X]   CORPORATE OFFICER                   Security Agreement
            President (title(s))                ------------------
                                                Title or type of document

                                                Date: 9/01

<PAGE>

                                                                            COPY

                         SECURED PROMISSORY NOTE
$1,000,000                                                Lake Success, New York
                                                         As of Sept., 26th, 2001

     FOR VALUE RECEIVED, the undersigned, IMAGENETIX, INC., a Nevada corporation
(the "Debtor"), hereby unconditionally promises to pay to the order of ROBERTS &
GREEN, INC, a corporation doing business in the State of New York (the "Payee"),
in lawful money of the United States in immediately available funds, on
September 30, 2002 or such earlier dale as the Payee shall designate (the
"Maturity Date"), at such place as the Payee or any holder hereof may from time
to time designate, the principal sum up to ONE MILLION DOLLARS (5 1,000,000) or,
if less, the aggregate amount of the unpaid principal amount from time to time
owing by Debtor as recorded on the payment grid appended hereto as Schedule 2,
the whole in accordance with the termS contained in this Note, together with
unpaid interest thereon at the rate of twelve percent (12%) per annum. Payment
of interest shall become due on the first day of each month and on the Maturity
Date of this Note. Interest shall be calculated on the basis of a 365-day year
and actual days elapsed. In no event shall the rate of interest. hereunder
exceed the maximum interest rate permitted by applicable law.

     All borrowings evidenced by this Note and all payments and prepayments of
the principal hereof and any interest hereon and the respective dates thereof
shall he endorsed by the Payee on the grid appended hereto as Schedule 2 or any
continuation thereof; provided, however, that the failure of the Payee to make
such a notation or any error in such a notation shall not affect the obligations
of the Debtor under this Note.

     For so long as no event of Default (as set forth on Schedule 1) has
occurred, this Note may be repaid in whole or in part prior to the Maturity Date
on any business day, without premium or penalty, in amounts of at least $1,000.
All payments shall be made to the Payee at its principal office in Lake Success,
New York or such other designated place. Repayments of principal shall be
credited to the earliest advances still outstanding.

     Upon the occurrence of an Event of Default and for so long as such Event of
Default shall continue, the aggregate unpaid principal amount under this Note,
accrued interest thereon and all oilier amounts payable hereunder may be
declared to be, or may automatically become, forthwith due arid payable.

     The Debtor hereby waives diligence, presentment, protest and notice of any
kind, and assents to extensions of the time of payment, release, surrender or
forbearance or other indulgence, all in the sale discretion of the Payee and
without notice and without affecting the liability of the Debtor hereunder.

     This Note may not be changed, modified or terminated orally, but only by an
agreement in writing signed by the party to be charged.

     In the event the Payee or any holder hereof shall refer this Note to an
attorney for collection, the Debtor agrees to pay, in addition to unpaid
principal and interest, all the costs and expenses incurred in attempting or
effecting collection hereunder, including reasonable attorneys' fees, whether or
not suit is instituted.

                                       1
<PAGE>

     In the event of any litigation with respect to this Note, the Debtor waives
all rights of setoff and rights to interpose counterclaims and cross-claims. The
Debtor hereby irrevocably consents to the jurisdiction of the Courts of New York
State in connection with any action or proceeding arising out of or relating to
this Note. If any term or provision of this Note shall be held invalid, illegal
or unenforceable, the validity of all other terms and provisions hereof shall in
no way be affected thereby. This Note shall be governed and construed by the
laws of the State of New York.

     No delay on the part of the Payee in the exercise of any right, power or
remedy under this Note shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power or right preclude other or further right.
No waiver of any such right, power or remedy shall exist or be effective unless
such waiver is made in writing and signed by the Payee. All rights and remedies
under this Note shall he cumulative. The exercise of any right, power or remedy
hereunder or under applicable law shall not be deemed an election of remedies or
waiver of any other right.

     This Note shall be binding upon the maker and its successors and assigns.

     This Note is secured by a Security Agreement dated as of September 26, 2001
between the Debtor and the Payee (the "Security Agreement").

                                          IMAGENETIX, INC.

                                          By: /s/ William P. Spencer
                                          --------------------------
                                          Name: William P. Spencer
                                          Title: President

                                                                            COPY

                                        2
<PAGE>
                                                                      Schedule 1

                                Events of Default

     If one or more of the following events (herein each referred to as an
"Event of Default") shall occur and be continuing:

     (1) The Debtor shall fail to pay when due (i) any portion of or Interest
     accrued on the aggregate principal amount due under this Note when due and
     such failure shal1 continue unremedied for five (5) business days, or (ii)
     any other amount payable (whether at stated maturity on the Maturity Date,
     by acceleration or otherwise) by it to the Payee hereunder, under the
     Security Agreement or under any other Promissory Note in favor of the Payee
     to which it is a party, and such failure shall continue unremedied for five
     (5) business days;

     (2) The Debtor shall fail to perform any of its obligations, covenants or
     agreements under this Note, under the Security Agreement or under any other
     Promissory Note in favor of the Payee to which it is a party, and such
     failure materially adversely affects the Payee and (if capable of being
     remedied) shall continue unremedied for a period of thirty (30) days after
     notice thereof to the Debtor by person acting on behaLf of the Payee);

     (3) (i) The Debtor shall admit in writing its inability to, or be generally
     unable to, pay its debts as such debts become due; or (ii) the Debtor shall
     (A) apply for or consent to the appointment of, or the taking of possession
     by, a receiver, custodian, trustee or liquidator of itself or of all or a
     substantial part of its property, (B) make a general assignment for the
     benefit of its creditors, (C) commence a voluntary case under the
     bankruptcy law of the relevant jurisdiction; (D) file a petition seeking to
     take advantage of any other law relating to bankruptcy, insolvency,
     reorganization, winding-up, or composition or readjustment of debts, (E)
     fail to controvert in a timely and appropriate manner, or acquiesce in
     writing to, any petition flied against it in an involuntary case under the
     bankruptcy law of the relevant jurisdiction, (F) take any corporate action
     for the purpose of effecting any of the foregoing; or (iii) a proceeding or
     case shall be commenced, without the application or consent of the Debtor,
     in any court of competent jurisdiction, seeking (A) its liquidation,
     reorganization, dissolution or winding-up, or the composition or
     readjustment of its debts, or (B) the appointment of a trustee, receiver,
     custodian, liquidator or the like of the Debtor or of all or ally
     substantial part of its assets; or (iv) an order for relief against the
     Debtor shall be entered in an involuntary ease under the bankruptcy law of
     the relevant jurisdiction seeking (A) its liquidation, reorganization,
     dissolution or winding-up, or the composition or readjustment of its debts,
     or (B) any other of the actions described in clauses (i) through (iv)
     hereof.

                                        3
<PAGE>

                                                                      Schedule 2

Date          Principal Amount Outstanding
----          ----------------------------

10/3/2001     $100,000

                                       4<PAGE>
                                                                     EXHIBIT 4.3

                              PIXAR 1995 STOCK PLAN

                         (as amended September 14, 2001)

         1. Purposes of the Plan. The purposes of this Stock Plan are to attract
and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant of an Option and subject to the applicable provisions of Section 422 of
the Code and the regulations promulgated thereunder. Stock Purchase Rights may
also be granted under the Plan.

         2. Definitions. As used herein, the following definitions shall apply:

              (a) "Administrator" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

              (b) "Board" means the Board of Directors of the Company.

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

              (d) "Committee" means a Committee appointed by the Board of
Directors in accordance with Section 4 of the Plan.

              (e) "Common Stock" means the Common Stock of the Company.

              (f) "Company" means PIXAR, a California corporation.

              (g) "Consultant" means any person who is engaged by the Company or
any Parent or Subsidiary to render consulting or advisory services and is
compensated for such services. The term Consultant shall not include Directors
who are not compensated for their services or are paid only a Director's fee by
the Company.

              (h) "Continuous Status as an Employee or Consultant" means that
the employment or consulting relationship with the Company, any Parent or
Subsidiary is not interrupted or terminated. Continuous Status as an Employee or
Consultant shall not be considered interrupted in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor. A
leave of absence approved by the Company shall include sick leave, military
leave, or any other personal leave approved by an authorized representative of
the Company. For purposes of Incentive Stock Options, no such leave may exceed
90 days, unless reemployment upon expiration of such leave is guaranteed by
statute or contract, including Company policies. If reemployment upon expiration
of a leave of absence approved by the Company is not so guaranteed, on the 91st
day of such leave any Incentive Stock Option held by the Optionee shall cease to
be treated as an Incentive Stock Option and shall be treated for tax purposes as
a Nonstatutory Stock Option.

              (i) "Director" means a member of the Board of Directors of the
Company.

<PAGE>

              (j) "Employee" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a Director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

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

              (l) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system for the last market trading day
prior to the time of determination and reported in The Wall Street Journal or
such other source as the Administrator deems reliable;

                  (ii) If the Common Stock is quoted on the NASDAQ System (but
not on the Nasdaq National Market thereof) or regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high bid and low asked prices for the Common Stock
on the last market trading day prior to the day of determination; or

                  (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

              (m) "Incentive Stock Option" means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code.

              (n) "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

              (o) "Officer" means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

              (p) "Option" means a stock option granted pursuant to the Plan.

              (q) "Optioned Stock" means the Common Stock subject to an Option
or a Stock Purchase Right.

              (r) "Optionee" means an Employee or Consultant who receives an
Option or Stock Purchase Right.

              (s) "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

              (t) "Plan" means this 1995 Stock Plan.

              (u) "Restricted Stock" means shares of Common Stock acquired
pursuant to a grant of a Stock Purchase Right under Section 11 below.

<PAGE>

              (v) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 below.

              (w) "Stock Purchase Right" means a right to purchase Common Stock
pursuant to Section 11 below.

              (x) "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

         3. Stock Subject to the Plan. Subject to Section 12, the maximum
aggregate number of Shares which may be subject to option and sold under the
Plan is 24,070,167(1) Shares provided, however, that beginning January 1, 1998,
the number of Shares shall be increased each January 1 by three percent (3%) of
the total issued and outstanding Shares on such date. In no event, except as
subject to Section 12, shall more than 18,600,000 Shares be issued upon the
exercise of Incentive Stock Options under the Plan.

         If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated). However, Shares that have actually been issued under the Plan, upon
exercise of either an Option or Stock Purchase Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, and the original purchaser of such Shares did not
receive any benefits of ownership of such Shares, such Shares shall become
available for future grant under the Plan. For purposes of the preceding
sentence, voting rights shall not be considered a benefit of Share ownership.

         4. Administration of the Plan.

              (a) Procedure.

                  (i) Multiple Administrative Bodies. If permitted by Rule
16b-3, the Plan may be administered by different bodies with respect to
Directors and Officers, and Employees and Consultants who are neither Directors
nor Officers.

                  (ii) Administration With Respect to Directors and Officers.
With respect to grants of Options and Stock Purchase Rights to Employees who are
also Officers or Directors of the Company, the Plan shall be administered by (A)
the Board if the Board may administer the Plan in compliance with Rule 16b-3
promulgated under the Exchange Act or any successor thereto ("Rule 16b-3") with
respect to a plan intended to qualify thereunder as a discretionary plan, or (B)
a Committee designated by the Board to administer the Plan, which Committee
shall be constituted in such a manner as to permit the Plan to comply with Rule
16b-3 with respect to a plan intended to qualify thereunder as a discretionary
plan. Once appointed, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board. From time to time the Board may
increase the size of the Committee and appoint additional members

-----------
   (1) Such number reflects the automatic increases of (1) 1,272,321 shares on
January 1, 1998, (2) 1,360,073 Shares on January 1, 1999, (3) 1,408,772 shares
on January 1, 2000 and (4) 1,429,001 shares on January 1, 2001.

<PAGE>

thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies, however caused, and remove all members of
the Committee and thereafter directly administer the Plan, all to the extent
permitted by Rule 16b-3 with respect to a plan intended to qualify thereunder as
a discretionary plan.

                  (iii) Administration With Respect to Other Employees and
Consultants . With respect to grants of Options and Stock Purchase Rights to
Employees or Consultants who are neither Directors nor Officers of the Company,
the Plan shall be administered by (A) the Board or (B) a Committee designated by
the Board, which committee shall be constituted in such a manner as to satisfy
the legal requirements relating to the administration of incentive stock option
plans, if any, of California corporate and securities laws, of the Code, and of
any applicable stock exchange (the "Applicable Laws"). Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly
administer the Plan, all to the extent permitted by the Applicable Laws.

              (b) Powers of the Administrator. Subject to the provisions of the
Plan and, in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities,
including the approval, if required, of any stock exchange upon which the Common
Stock is listed, the Administrator shall have the authority in its discretion:

                  (i) to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(l) of the Plan;

                  (ii) to select the Consultants and Employees to whom Options
and Stock Purchase Rights may be granted hereunder;

                  (iii) to determine whether and to what extent Options and
Stock Purchase Rights or any combination thereof, are granted hereunder;

                  (iv) to determine the number of shares of Common Stock to be
covered by each Option and Stock Purchase Right granted hereunder;

                  (v) to approve forms of agreement for use under the Plan;

                  (vi) to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options or Stock Purchase Rights may be exercised (which may be based
on performance criteria), any vesting acceleration or waiver of forfeiture
restrictions, and any restriction or limitation regarding any Option or Stock
Purchase Right or the shares of Common Stock relating thereto, based in each
case on such factors as the Administrator, in its sole discretion, shall
determine;

                  (vii) to reduce the exercise price of any Option or Stock
Purchase Right to the then current Fair Market Value if the Fair Market Value of
the Common Stock covered by such Option or Stock Purchase Right shall have
declined since the date the Option or Stock Purchase Right was granted;

                  (viii) to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan;

<PAGE>

                  (ix) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

                  (x) to modify or amend each Option or Stock Purchase Right
(subject to Section 14 of the Plan), including the discretionary authority to
extend the post-termination exercisability period of Options longer than is
otherwise provided for in the Plan;

                  (xi) to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option or Stock
Purchase Right previously granted by the Administrator;

                  (xii) to determine the terms and restrictions applicable to
Options and Stock Purchase Rights and any Restricted Stock; and

                  (xiii) to make all other determinations deemed necessary or
advisable for administering the Plan.

              (c) Effect of Administrator's Decision. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options or Stock Purchase
Rights.

         5. Eligibility.

              (a) Nonstatutory Stock Options and Stock Purchase Rights may be
granted to Employees and Consultants. Incentive Stock Options may be granted
only to Employees. An Employee or Consultant who has been granted an Option or
Stock Purchase Right may, if otherwise eligible, be granted additional Options
or Stock Purchase Rights.

              (b) Each Option shall be designated in the written option
agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designations, to the extent that the aggregate
Fair Market Value of Shares subject to an Optionee's Incentive Stock Options
granted by the Company, any Parent or Subsidiary, which become exercisable for
the first time during any calendar year (under all plans of the Company or any
Parent or Subsidiary) exceeds the limit imposed by Section 422(d) of the Code or
any successor thereto, such excess Options shall be treated as Nonstatutory
Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall
be taken into account in the order in which they were granted. The Fair Market
Value of the Shares shall be determined as of the time the Option with respect
to such Shares is granted.

              (c) Neither the Plan nor any Option or Stock Purchase Right shall
confer upon any Optionee any right with respect to continuation of his or her
employment or consulting relationship with the Company, nor shall it interfere
in any way with his or her right or the Company's right to terminate his or her
employment or consulting relationship at any time, with or without cause.

              (d) Upon the Company or a successor corporation issuing any class
of common equity securities required to be registered under Section 12 of the
Exchange Act or upon the Plan being assumed by a corporation having a class of
common equity securities required to be registered under Section 12 of the
Exchange Act, the following limitations shall apply to grants of Options and
Stock Purchase Rights to Employees:

<PAGE>

                  (i) No Employee shall be granted, in any fiscal year of the
Company, Options and Stock Purchase Rights to purchase more than 3,000,000
Shares.

                  (ii) The foregoing limitation shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 12.

                  (iii) If an Option or Stock Purchase Right is cancelled in the
same fiscal year of the Company in which it was granted (other than in
connection with a transaction described in Section 12), the cancelled Option
shall be counted against the limit set forth in Section 5(d)(i). For this
purpose, if the exercise price of an Option is reduced, such reduction will be
treated as a cancellation of the Option and the grant of a new Option.

         6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company, as described in Section 18 of the Plan. It shall
continue in effect for a term of ten (10) years unless sooner terminated under
Section 14 of the Plan.

         7. Term of Option. The term of each Option shall be the term stated in
the Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof. In the case of an Incentive Stock
Option granted to an Optionee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.

         8. Option Exercise Price and Consideration.

              (a) The per Share exercise price for the Shares to be issued upon
exercise of an Option shall be such price as is determined by the Administrator,
but shall be subject to the following:

                  (i) In the case of an Incentive Stock Option

                       (1) granted to an Employee who, at the time of grant of
such Option, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be no less than 110% of the Fair Market Value per
Share on the date of grant.

                       (2) granted to any other Employee, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

                  (ii) In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator.

         The consideration to be paid for the Shares to be issued upon exercise
of an Option, including the method of payment, shall be determined by the
Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). Such consideration may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) delivery of a properly executed
exercise notice together with such other documentation as the Administrator and
a broker, if applicable, shall require to effect an exercise of the Option and
delivery

<PAGE>

to the Company of the sale or loan proceeds required to pay the exercise price,
(6) a reduction in the amount of any Company liability to the Optionee,
including any liability attributable to the Optionee's participation in any
Company-sponsored deferred compensation program or arrangement, or (7) any
combination of the foregoing methods of payment. In making its determination as
to the type of consideration to accept, the Administrator shall consider if
acceptance of such consideration may be reasonably expected to benefit the
Company.

         9. Exercise of Option.

              (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator, including performance criteria with respect
to the Company and/or the Optionee, and as shall be permissible under the terms
of the Plan.

         An Option may not be exercised for a fraction of a Share.

         An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 8(b) hereof. Until
the issuance (as evidenced by the appropriate entry on the books of the Company
or of a duly authorized transfer agent of the Company) of the stock certificate
evidencing such Shares, no right to vote, receive dividends or any other rights
as a shareholder shall exist with respect to the Optioned Stock, notwithstanding
the exercise of the Option. The Company shall issue (or cause to be issued) such
stock certificate promptly upon exercise of the Option. No adjustment shall be
made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued, except as provided in Section 12 hereof.

         Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

              (b) Termination of Employment or Consulting Relationship. In the
event of termination of an Optionee's Continuous Status as an Employee or
Consultant (but not in the event of an Optionee's change of status from Employee
to Consultant (in which case an Employee's Incentive Stock Option shall
automatically convert to a Nonstatutory Stock Option on the ninety-first (91st)
day following such change of status) or from Consultant to Employee), such
Optionee may, but only within such period of time as is determined by the
Administrator, with such determination in the case of an Incentive Stock Option
not exceeding three (3) months after the date of such termination (but in no
event later than the expiration date of the term of such Option as set forth in
the Option Agreement), exercise his or her Option to the extent that the
Optionee was entitled to exercise it at the date of such termination. To the
extent that the Optionee was not entitled to exercise the Option at the date of
such termination, or if the Optionee does not exercise such Option to the extent
so entitled within the time specified herein, the Option shall terminate.

              (c) Disability of Optionee. In the event of termination of an
Optionee's Continuous Status as an Employee or Consultant as a result of his or
her "Disability," as such term is defined in Section 22(c)(3) of the Code, the
Optionee may, but only within twelve (12) months from the date of such
termination (and in no event later than the expiration date of the term of such
Option as set forth in the Option Agreement), exercise

<PAGE>

the Option to the extent otherwise entitled to exercise it at the date of such
termination. To the extent that the Optionee was not entitled to exercise the
Option at the date of termination, or if the Optionee does not exercise such
Option to the extent so entitled within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

              (d) Death of Optionee. In the event of the death of an Optionee,
the Option may be exercised at any time within twelve (12) months following the
date of death (but in no event later than the expiration of the term of such
Option as set forth in the Notice of Grant) by the Optionee's estate or by a
person who acquired the right to exercise the Option by bequest or inheritance,
but only to the extent that the Optionee was entitled to exercise the Option on
the date of death. If, at the time of death, the Optionee was not entitled to
exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall immediately revert to the Plan. If, after the
Optionee's death, the Optionee's estate or a person who acquires the right to
exercise the Option by bequest or inheritance does not exercise the Option
within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

              (e) Rule 16b-3. Options granted to persons subject to Section
16(b) of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

              (f) Buyout Provisions. The Administrator may at any time offer to
buy out for a payment in cash or Shares, an Option previously granted, based on
such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time that such offer is made.

         10. Non-Transferability of Options and Stock Purchase Rights. Options
and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

         11. Stock Purchase Rights.

              (a) Rights to Purchase. Stock Purchase Rights may be issued either
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing of the terms, conditions and restrictions related to the
offer, including the number of Shares that such person shall be entitled to
purchase, the price to be paid, and the time within which such person must
accept such offer, which shall in no event exceed thirty (30) days from the date
upon which the Administrator makes the determination to grant the Stock Purchase
Right. The offer shall be accepted by execution of a Restricted Stock purchase
agreement in the form determined by the Administrator. Shares purchased pursuant
to the grant of a Stock Purchase Right shall be referred to herein as
"Restricted Stock."

              (b) Repurchase Option. Unless the Administrator determines
otherwise, the Restricted Stock purchase agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's employment with the Company for any reason (including death or
Disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock purchase agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine.

<PAGE>

              (c) Rule 16b-3. Stock Purchase Rights granted to Insiders, and
Shares purchased by Insiders in connection with Stock Purchase Rights, shall be
subject to any restrictions applicable thereto in compliance with Rule 16b-3. An
Insider may only purchase Shares pursuant to the grant of a Stock Purchase
Right, and may only sell Shares purchased pursuant to the grant of a Stock
Purchase Right, during such time or times as are permitted by Rule 16b-3.

              (d) Other Provisions. The Restricted Stock purchase agreement
shall contain such other terms, provisions and conditions not inconsistent with
the Plan as may be determined by the Administrator in its sole discretion. In
addition, the provisions of Restricted Stock purchase agreements need not be the
same with respect to each purchaser.

              (e) Rights as a Shareholder. Once the Stock Purchase Right is
exercised, the purchaser shall have rights equivalent to those of a shareholder
and shall be a shareholder when his or her purchase is entered upon the records
of the duly authorized transfer agent of the Company. No adjustment shall be
made for a dividend or other right for which the record date is prior to the
date the Stock Purchase Right is exercised, except as provided in Section 12 of
the Plan.

         12. Adjustments Upon Changes in Capitalization or Merger.

              (a) Changes in Capitalization. Subject to any required action by
the shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company. The conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option or Stock Purchase Right.

              (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify the
Optionee at least fifteen (15) days prior to such proposed action. To the extent
it has not been previously exercised, the Option or Stock Purchase Right shall
terminate immediately prior to the consummation of such proposed action.

              (c) Merger or Asset Sale. In the event of a merger of the Company
with or into another corporation, or the sale of substantially all of the assets
of the Company, each outstanding Option and Stock Purchase Right shall be
assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event
that the successor corporation refuses to assume or substitute for the Option or
Stock Purchase Right, the Optionee shall have the right to exercise the Option
or Stock Purchase Right as to all of the Optioned Stock, including Shares as to
which it would not otherwise be exercisable. If an Option or Stock Purchase
Right is exercisable in lieu of assumption or substitution in the event of a
merger or sale of assets, the Administrator shall notify the Optionee that the

<PAGE>

Option or Stock Purchase Right shall be fully exercisable for a period of
+fifteen (15) days from the date of such notice, and the Option or Stock
Purchase Right shall terminate upon the expiration of such period. For the
purposes of this paragraph, the Option or Stock Purchase Right shall be
considered assumed if, following the merger or sale of assets, the option or
right confers the right to purchase or receive, for each Share of Optioned Stock
subject to the Option or Stock Purchase Right immediately prior to the merger or
sale of assets, the consideration (whether stock, cash, or other securities or
property) received in the merger or sale of assets by holders of Common Stock
for each Share held on the effective date of the transaction (and if holders
were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that if
such consideration received in the merger or sale of assets was not solely
common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to
be received upon the exercise of the Option or Stock Purchase Right, for each
Share of Optioned Stock subject to the Option or Stock Purchase Right, to be
solely common stock of the successor corporation or its Parent equal in fair
market value to the per share consideration received by holders of Common Stock
in the merger or sale of assets.

         13. Time of Granting Options and Stock Purchase Rights. The date of
grant of an Option or Stock Purchase Right shall, for all purposes, be the date
on which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Employee or Consultant to whom an
Option or Stock Purchase Right is so granted within a reasonable time after the
date of such grant.

         14. Amendment and Termination of the Plan.

              (a) Amendment and Termination. The Board may at any time amend,
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension
or discontinuation shall be made which would impair the rights of any Optionee
under any grant theretofore made, without his or her consent. In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under the Exchange
Act or with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of the NASD or an established stock exchange), the
Company shall obtain shareholder approval of any Plan amendment in such a manner
and to such a degree as required.

              (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options or Stock Purchase Rights
already granted, and such Options and Stock Purchase Rights shall remain in full
force and effect as if this Plan had not been amended or terminated, unless
mutually agreed otherwise between the Optionee and the Administrator, which
agreement must be in writing and signed by the Optionee and the Company.

         15. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option or Stock Purchase Right unless the
exercise of such Option or Stock Purchase Right and the issuance and delivery of
such Shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance.

         As a condition to the exercise of an Option or Stock Purchase Right,
the Company may require the person exercising such Option or Stock Purchase
Right to represent and warrant at the time of any such exercise that the Shares
are being purchased only for investment and without any present intention to
sell or

<PAGE>

distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned relevant provisions of
law.

         16. Reservation of Shares. The Company, during the term of this Plan,
shall at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

         17. Agreements. Options and Stock Purchase Rights shall be evidenced by
written agreements in such form as the Administrator shall approve from time to
time.

         18. Shareholder Approval. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the degree and manner required under applicable state and federal law and the
rules of any stock exchange upon which the Common Stock is listed.

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