Document:

5

                  ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT
                                 (WITH CONSENT)

                        (KINGSLEY PLACE AT OAKWELL FARMS)

                          Dated as of December 31, 2003

HB-ESC  V,  L.P., a Washington limited partnership ("Assignor"), ESC IV, L.P., a
Washington  limited  partnership,  doing business in Texas as Texas-ESC IV, L.P.
("Assignee"),  EMERITUS  CORPORATION,  a  Washington  corporation  ("Emeritus"),
DANIEL  R.  BATY,  an  individual resident of the State of Washington ("Existing
Guarantor"),  and  HR  ACQUISITION  OF  SAN  ANTONIO,  LTD.,  an Alabama limited
partnership,  formerly  known  as  Capstone  Capital of San Antonio, Ltd., d/b/a
Cahaba  of  San  Antonio,  Ltd.  ("Lessor"),  agree  as  follows:

1.     PRELIMINARY  STATEMENTS.  Lessor  and  Integrated  Living  Communities of
Oakwell,  L.P,  a Delaware limited partnership ("Original Lessee") (successor by
conversion  to  Integrated  Living  Communities  of  Oakwell,  Inc.,  a Delaware
corporation)  entered into that certain Lease Agreement dated as of December 31,
1996, which was amended by that certain First Amendment to Lease Agreement dated
as  of  December  1,  1997, and which was further amended by that certain Second
Amendment  to Lease Agreement dated as of May 9, 2002 (as amended, the "Lease"),
whereby Lessor agreed to lease to Original Lessee, and Original Lessee agreed to
lease from Lessor, that certain assisted living facility located at 3360 Oakwell
Court,  San  Antonio, Texas 78218, as more particularly described and defined in
the  Lease  (the  "Leased Property").  A copy of the Lease is attached hereto as
Exhibit  "A".  The Lease was assigned to Assignor by Original Lessee pursuant to
that  certain  Assignment and Assumption of Lease Agreement (With Consent) dated
as  of  May  9,  2002.  Existing  Guarantor  executed  a Guaranty of Payment and
Performance  dated  May  9,  2002  ("Existing  Guaranty"),  in  favor of Lessor,
guaranteeing  Assignor's  obligations  under the Lease.  Assignor now desires to
assign to Assignee, and Assignee desires to accept the assignment of, any right,
title or interest Assignor has in and to the Leased Property as lessee under the
Lease,  and  Assignor and Assignee desire Lessor to, among other things, consent
to  such  assignment  and  to  make certain other agreements and statements, all
pursuant  to the terms and conditions of this Assignment and Assumption of Lease
Agreement  (this "Agreement").  Emeritus is the sole shareholder of ESC G.P. II,
INC.,  a  Washington  corporation,  which  is  the  general partner of Assignee.
Emeritus  is required to make certain representations, warranties and agreements
in this Agreement as a condition precedent to the execution of this Agreement by
Lessor.

2.     EFFECTIVENESS;  DEFINED  TERMS.  Unless  otherwise  indicated  to  the
contrary,  all  terms  and conditions of this Agreement shall be effective as of
the  date  first  written  above  (the  "Effective  Date").  Unless  defined  or
otherwise  indicated  herein,  capitalized  terms used herein without definition
shall  have  the  definitions  provided  therefor  in  the  Lease.

3.     ASSIGNMENT.  Assignor assigns and conveys unto Assignee all of Assignor's
right,  title  and  interest  in  and to the Leased Property as lessee under the
Lease,  effective  as  of the Effective Date.  Commencing on the Effective Date,
Assignee  shall be primarily liable, as principal rather than as surety, for the
payment  and  performance  of  all of Assignor's obligations as lessee under the
Lease  arising  on  or  after  the  Effective  Date.

4.     ASSUMPTION.  Assignee accepts said assignment from Assignor and expressly
assumes and agrees to keep and perform all of the terms of the Lease on the part
of  lessee under the Lease arising on or after the Effective Date.  Assignee and
Emeritus  shall  be  and become jointly and severally liable for the payment and
performance of each obligation of the lessee under the Lease arising on or after
the  Effective  Date.

5.     RELEASE OF ASSIGNOR/EXISTING GUARANTOR NOT RELEASED.  As of the Effective
Date,  Lessor  for  itself  and for its affiliates, subsidiaries, successors and
assigns, hereby releases Assignor, and its affiliates, subsidiaries, successors,
assigns,  agents  and  attorneys,  representatives  and  employees,  from  their
respective  obligations  and  liabilities of any kind or nature whatsoever under
the  Lease (including the payment of rent and other charges) arising or accruing
on or after the Effective Date, although Assignor shall not be released from any
obligations  or  liabilities  of any kind or nature arising or accruing prior to
the  Effective  Date.  Existing  Guarantor  shall  not  be  released  from  any
obligations  or  liability  under  the  Existing Guaranty and shall guaranty the
obligations  of  Assignee  under  the  Lease.

6.     ASSIGNOR'S  REPRESENTATIONS.  Assignor  represents  to Assignee, Emeritus
and  Lessor  that,  as  of  the date of this Agreement, (i) to Assignor's actual
knowledge, there is no default on the part of Lessor under the Lease; (ii) there
is  no default on the part of Assignor under the Lease or event, which, with the
giving  of  notice  or  passage  of  time  or both, would constitute an Event of
Default  under  the Lease; (iii) the Lease is valid and in full force and effect
and  has  not  been  modified,  supplemented,  or  amended,  nor  to  its actual
knowledge,  has  Lessor  assigned  its interest in the Lease; (iv) to Assignor's
actual  knowledge,  there  are no existing or impending condemnation proceedings
which  could  affect the Leased Property; (v) all Impositions (as defined in the
Lease)  are  current  and fully paid; and (vi) the amount of the current Minimum
Rent (per month) and the date through which rent has been paid for the Lease and
for  the  Related  Leases  is  set  forth  in  Exhibit  "B"  to  this Agreement.

7.     ASSIGNEE'S  AND  EMERITUS' REPRESENTATIONS.  Assignee and Emeritus hereby
(i)  acknowledge  and agree that there are no offsets or defenses to payment and
performance of the obligations of Assignor and Assignee or any other party under
the  Lease;  and (ii) waive any defense, claim or counterclaim arising out of or
in  connection  with  the obligations of Assignor or Assignee or any other party
under the Lease that exists as of the Effective Date (but not any defense, claim
or  counterclaim  that  may  arise  in  the  future).

8.     CONDITIONS  PRECEDENT  TO  LESSOR'S  CONSENT.  The  following  items  are
conditions  precedent  to  Lessor's  consent  to  the  assignment  of Assignor's
interest  under  the Lease to Assignee and must be completely satisfied prior to
the  effectiveness  of  such  assignment  (Lessor's  execution and unconditional
delivery  to  Assignor  and Assignee of this Agreement shall constitute Lessor's
agreement  that  the  Effective  Date  is  the  date first hereinabove written):

8.1     Assignor  and  its  affiliates  shall  execute and deliver the following
agreements  to Lessor, and shall complete and satisfy all of Lessor's conditions
precedent  set  forth  therein:

i.     the  Assignment  and Assumption of Lease Agreement, dated as of even date
herewith,  among  Assignor,  Assignee  and  Lessor,  with  respect  to the Lease
Agreement dated December 31, 1996, between Lessor, Integrated Living Communities
of  Henderson,  L.P.,  a  Delaware  limited  partnership  ("ILCH"), successor by
conversion  to  Integrated  Living  Communities  of  Henderson, Inc., a Delaware
corporation,  as  lessee,  for  the  assisted  living  facility  located at 1000
Richardson  Drive,  Henderson,  Texas  75654,  which was amended by that certain
First  Amendment to Lease Agreement dated as of December 1, 1997 and that Second
Amendment  to  Lease Agreement dated as of May 9, 2002, and which was previously
assigned  to  Assignor  by  that  certain  Assignment  and  Assumption  of Lease
Agreement  (With  Consent) dated as of May 9, 2002 (as amended and assigned, the
"Henderson  Lease");
ii.     the  Assignment and Assumption of Lease Agreement, dated as of even date
herewith,  among  Assignor,  Assignee  and  Lessor,  with  respect  to the Lease
Agreement dated December 31, 1996, between Lessor, Integrated Living Communities
of  San  Antonio,  L.P.,  a Delaware limited partnership ("ILCSA"), successor by
conversion  to  Integrated  Living  Communities of San Antonio, Inc., a Delaware
corporation,  as  lessee, for the assisted living facility located at 9000 Floyd
Curl  Drive,  San Antonio, Texas  78240, which was amended by that certain First
Amendment  to  Lease  Agreement  dated  as  of  December 1, 1997 and that Second
Amendment  to  Lease Agreement dated as of May 9, 2002, and which was previously
assigned  to  Assignor  by  that  certain  Assignment  and  Assumption  of Lease
Agreement  (With  Consent) dated as of May 9, 2002 (as amended and assigned, the
"Medical  Center  Lease");  and
iii.     the Assignment and Assumption of Lease Agreement, dated as of even date
herewith,  among  Assignor,  Assignee  and  Lessor,  with  respect  to the Lease
Agreement dated December 31, 1996, between Lessor, Integrated Living Communities
of  McKinney,  L.P.,  a  Delaware  limited  partnership  ("ILCM"),  successor by
conversion  to  Integrated  Living  Communities  of  McKinney,  Inc., a Delaware
corporation,  as  lessee,  for  the  assisted living facility located at 1650 S.
Stonebridge  Drive,  McKinney,  Texas  75070,  which was amended by that certain
First  Amendment to Lease Agreement dated as of December 1, 1997 and that Second
Amendment  to  Lease Agreement dated as of May 9, 2002, and which was previously
assigned  to  Assignor  by  that  certain  Assignment  and  Assumption  of Lease
Agreement  (With  Consent) dated as of May 9, 2002 (as amended and assigned, the
"McKinney  Lease"  and,  together  with  the  Lease, the Henderson Lease and the
Medical  Center  Lease,  the  "Related  Leases").

8.2     Contemporaneously  with  or  prior to the execution and delivery of this
Agreement,  the  Management  Agreement between Assignor and Assignee pursuant to
which  Assignee  manages  the  Leased Property for Assignor shall be terminated.

8.3     Emeritus shall execute and deliver a Guaranty of Payment and Performance
in  form and content satisfactory to Lessor, guaranteeing Assignee's obligations
under  the  Lease.

8.4     No  later than the date of this Agreement, Assignee shall provide Lessor
with  the  proof  of  insurance  required  by  the  Lease.

8.5     Contemporaneously  with  the  execution  and delivery of this Agreement,
Assignee  shall  execute  and  deliver  to  Lessor  a  Security Agreement, UCC-1
financing  statements,  Short  Form  Memorandum and Assignment and Assumption of
Lease  and  First  Right of Refusal (to be recorded), and Absolute Assignment of
Rents  and  Leases, each in the form previously signed by Assignor in May, 2002.
The  existing  Security  Agreement  and  Absolute Assignment of Rents and Leases
shall  be deemed terminated and of no further force or effect upon the execution
and  delivery  of  this  Agreement.

9.     LESSOR'S  CONSENT.  Subject  to  satisfaction of the foregoing conditions
precedent,  Lessor  consents to the assignment of the Lease to Assignee.  LESSOR
HAS  NOT  MADE AND DOES NOT HEREBY MAKE ANY EXPRESS OR IMPLIED REPRESENTATION OR
WARRANTIES  WHATSOEVER  WITH  RESPECT  TO THE TITLE OR CONDITION OF THE ASSIGNED
RIGHTS  AND  INTERESTS,  INCLUDING  ANY  PREPRESENTATION  OR  WARRANTY REGARDING
QUALITY  OF  CONSTRUCTION,  WORKMANSHIP,  MERCHANTABILITY  OR  FITNESS  FOR  ANY
PARTICULAR  PURPOSE,  AND  ASSIGNEE  ACKNOWLEDGES  THAT  ASSIGNEE  ACCEPTS  THIS
AGREEMENT  WITHOUT  RELYING  UPON  ANY  SUCH STATEMENT OR REPRESENTATION MADE BY
LESSOR,  ITS  AGENTS OR CONTRACTORS, OR BY ANY OTHER PERSON(S) AND THAT ASSIGNEE
ACCEPTS  THE  LEASED  PROPERTY  "AS  IS"  "WHERE  IS"  AND  "WITH  ALL  FAULTS".

10.     RESERVATION  OF  RIGHTS.  Subject to the provisions of Section 5, Lessor
hereby  reserves  all of its rights and remedies available to it under the Lease
or  applicable  law,  including all rights and remedies available to Lessor as a
result  of any Event of Default or other event of which Lessor is unaware, which
event, with the giving of notice or passage of tie, or both, would constitute an
Event  of  Default.  Assignor  and  Assignee  consent and agree to the foregoing
reservation  of  rights  and  remedies.

11.     LESSOR'S  ESTOPPEL.  Lessor  represents  to  Assignee  that, to Lessor's
actual  knowledge,  (i)  there  is  no default on the part of Assignor under the
Lease  or  event,  which,  with the giving of notice or passage of time or both,
would  constitute  an  Event of Default under the Lease; (ii) the Lease is valid
and  in full force and effect and has not been modified, supplement, assigned or
amended  by  Lessor;  (iii)  there  are  no  existing  or impending condemnation
proceedings  which  could  affect  the  Leased  Property;  and  (iv) Exhibit "B"
accurately  reflects  the amount of the current Minimum Rent payable monthly and
the  date  through  which  the  Minimum  Rent due under the Lease has been paid.

12.     EXECUTION  BY  EMERITUS.  Emeritus  has  joined in the execution of this
Agreement  for  the  purpose  of (i) making certain representations, warranties,
covenants  and  other agreements as set forth herein, and (ii) acknowledging and
consenting  to  the  terms  and  conditions  of  this  Agreement.

13.     SECURITY  DEPOSIT AGREEMENT.  The Security Deposit Agreement dated as of
November  19,  2002 executed and delivered by Assignor in favor of Lessor, shall
terminate  effective  January  1,  2004,  and  Lessor  shall  wire  transfer the
remaining Security Deposit thereunder to Assignor within three (3) business days
thereafter.

14.     REIMBURSEMENT  OF ATTORNEYS FEES AND EXPENSES.  Assignor shall reimburse
Lessor  for  reasonable  attorneys' fees and expenses incurred by Lessor through
the  Effective  Date  in  connection  with  the review of this Agreement and the
related  documents.

<PAGE>

15.     NOTICES.  Assignee  and  Lessor  acknowledge  that the new addresses for
notices  to Lessor and Assignee (as the successor Lessee under the Lease) are as
follows:

LESSOR:

HR  ACQUISITION  OF  SAN  ANTONIO,  LTD.,
c/o  Healthcare  Realty  Trust  Incorporated
3310  West  End  Avenue
Suite  700
Nashville,  TN  37203
Telephone:  (615)  269-8175
Facsimile:  (615)  269-8461
Attn:  Mr.  J.D.  Carter  Steele,  Senior  Vice  President-Asset  Administration

With  a  copy  to:

Healthcare  Realty  Trust  Incorporated
3310  West  End  Avenue
Suite  700
Nashville,  TN  37203
Telephone:  (615)  269-8175
Facsimile:  (615)  269-8461
Attn:  General  Counsel

ASSIGNEE:

ESC-IV,  LP
c/o  Emeritus  Corporation
3131  Elliott  Avenue,  Suite  500
Seattle,  WA  98121-1031
Telephone:  (206)  298-2909
Facsimile:  (206)  301-4500
Attn:  Raymond  E.  Brandstrom  -  VP  -  Finance

With  a  copy  to:

The  Nathanson  Group,  PLLC
1520  Fourth  Avenue,  Sixth  Floor
Seattle,  WA  98101
Telephone:  (206)  623-6239
Facsimile:  (206)  623-1738
Attn:  Randi  S.  Nathanson,  Esq.

16.     MISCELLANEOUS.  This  Agreement  shall  be  interpreted according to the
laws  of the State where the Leased Property is located.  Except as specifically
set  forth  herein,  no party shall assign its rights and obligations under this
Agreement  without  the  prior  written  approval  of  the  other parties.  This
Agreement constitutes the entire agreement and understanding of the parties with
respect  to  the subject matter hereof and supersedes all prior agreements, oral
or  written,  and  all  other  communications among the parties relating to such
subject  matter.  This  Agreement  shall  not  be  modified or amended except by
mutual  written  agreement.  The waiver by any party of a breach or violation of
any  provisions  of this Agreement shall not operate as or be construed to be, a
waiver  of  any  subsequent  breach  of the same or any other provision.  In the
event any provision of this Agreement is held to be unenforceable or invalid for
any reason, this Agreement shall remain in full force and effect and enforceable
in  accordance  with  its  terms  disregarding  such  unenforceable  or  invalid
provision.  The  captions or headings in this Agreement are made for convenience
and  general  reference  only and should not be construed to describe, define or
limit  the scope and intent of the provisions of this Agreement.  This Agreement
may  be executed in one or more counterparts, each of which shall be an original
and  taken  together  shall constitute one and the same document.  Signature and
acknowledgement  pages,  if  any,  may  be  detached  from  the counterparts and
attached  to  a  single  copy  of this document to physically form one document.
Subject  to the provisions set forth above regarding assignment by either party,
this  Agreement  shall  be binding and shall inure to the benefit of the parties
hereto,  and  their respective heirs, legatees, executors, administrators, legal
representatives,  successors  and  assigns.  The  parties  acknowledge  that all
parties  hereto,  and  their  counsel, have read and fully negotiated all of the
language  used  in  this  Agreement.  The  parties acknowledge that, because all
parties  and  their  counsel  participated  in  negotiating  and  drafting  this
Agreement, no rule of construction shall apply to this Agreement which construes
ambiguous  and  unclear  language  in favor of or against any party because such
party drafted this Agreement.  With respect to all provisions of this Agreement,
time  is  of  the  essence.  The  word  "including",  when following any general
statement,  term  or matter shall not be construed to limit such statement, term
or matter to the specific terms or matters as provided immediately following the
word  "including"  or  to  similar  items or matters, whether or not nonlimiting
language  (such  as  "without  limitation",  "but  not  limited to", or words of
similar  import)  is  used with reference to the word "including" or the similar
items  or  matters,  but  rather  shall be deemed to refer to all other items or
matters  that  could  reasonably  fall within the broadest possible scope of the
general  statement, term or matter.  References to any party in the singular, or
as  "him," "her," "it," "its," "itself," or other like references, shall also be
deemed  to  include  the  plural or the masculine or feminine references, as the
case  may  be.  References  to  any  of the parties in the plural, or as "they,"
"them,"  "their"  or  other like references, shall also be deemed to include the
singular  reference.

17.     EXECUTION  BY  TELEFACSIMILE.  Any  copy  of  this  Agreement  bearing a
signature  of a party to this Agreement and sent by facsimile to any other party
shall  be  deemed  a  manually-executed original of this Agreement, and shall be
deemed  sufficient  to  bind  such  party.

                       SIGNATURES BEGIN ON FOLLOWING PAGE

<PAGE>
IN  WITNESS  WHEREOF, Assignor, Assignee and Lessor, acting by and through their
respective  duly authorized officers, have executed and delivered this Agreement
as  of  the  Effective  Date.

ASSIGNOR

HB-ESC  V,  L.P.,

By  it  General  Partner:
HB-ESC  III,  LLC

By:  /s/  Daniel R. Baty
     Daniel  R.  Baty,  Manager

<PAGE>
ASSIGNEE

ESC  IV,  L.P.,  a  Washington  limited  partnership,
doing  business  in  Texas  as  Texas-ESC  IV,  L.P.

By  its  general  partner:
ESC  G.P.  II,  INC.,
A  Washington  corporation

By:  /s/  William M. Shorten
          William M. Shorten
Its:  Director of Real Estate Finance

<PAGE>

LESSOR:

HR  ACQUISITION  OF  SAN  ANTONIO,  LTD.
By  its  general  partner:
Healthcare  Acquisition  of  Texas,  Inc.
By:  /s/  John M. Bryant, Jr.
          John M. Bryant, Jr.
Senior  Vice  President  and  General  Counsel

 "EXISTING  GUARANTOR"

/s/  Daniel R. Baty
Daniel  R.  Baty

<PAGE>

EMERITUS  CORPORATION

By:  /s/  William M. Shorten
Name:     William M. Shorten
Title:  Director of Real Estate Finance

<PAGE>
                                    EXHIBIT A
                                    ---------
                                    (OAKWELL)

Legal  description  of  land:
Being  a 5.230 acre tract of land situated in the Gonifacio Rodrigues Survey No.
131,  Abstract  Number  621, in the City of San Antonio, Bexar County, Texas and
being  all  of Lot 1, Block 9 (NCB 17306) of Oakwell Farms Unit-7 an addition to
the  City  of San Antonio according to the plat recorded in Volume 9503, Page(s)
179-181 and amended by plat recorded in Volume 9504, Page(s) 142-143 of the Plat
Records  of Bexar County, Texas (PRBCT) and being more particularly described as
follows:

BEGINNING  at  a  5/8  inch iron rod set for the southwest corner of said Lot 1,
Block  9  and  being  the northwest corner of Lot 2, Block 9 (NCB 17306) of said
Oakwell  Farms Unit-7 and being located in the east right-of-way line of Oakwell
Court (a 60' wide right-of-way) and being in a curve to the left having a radius
of  530.00  feet, a chord bearing of North 09 08' 51" West and a chord length of
225.86  feet;

THENCE  along  the  east  right-of-way  line  of  said Oakwell Court as follows:

Continuing  along  said  curve  to  the  left in a northerly direction through a
central  angle of 24 36' 17" for an arc length of 227.60 feet to a 5/8 inch iron
rod  set  for  the  point  of  tangency;

North  21  27' 00" West a distance of 301.33 feet to a 5/8 inch iron rod set for
the  beginning  of  a curve to the right having a radius of 270.00 feet, a chord
bearing  of  North  10  36'  30"  West  and  a  chord  length  of  101.57  feet;

Continuing  along  said curve to the right through a central angle of 21 41' 01"
for an arc length of 102.18 feet to a 5/8 inch iron rod set for the beginning of
a  compound curve to the right having a radius of 20.00 feet, a chord bearing of
North  47  25'  14"  East  and  a  chord  length  of  29.45  feet;

Continuing  along said compound curve to the right through a central angle of 94
50' 27" for an arc length of 33.11 feet to a 5/8 inch iron rod set for the point
of  tangency  and  being  located  in the southerly right-of-way line of Oakwell
Farms  Parkway  (a  variable  width  right-of-way);

THENCE  along  the  southerly right-of-way line of said Oakwell Farms Parkway as
follows:

South  85  09' 33" East a distance of 249.20 feet to a 5/8 inch iron rod set for
the  beginning  of  a  curve to the left having a radius of 705.00 feet, a chord
bearing  of  South  87  26'  42"  East  and  a  chord  length  of  56.24  feet;

Along  said  curve  to the left through a central angle of 04 34' 19" for an arc
length  of  56.25  feet  to  a  5/8 inch iron rod set for the end of said curve;
South  53  50'  00" East a distance of 76.03 feet to a 5/8 inch iron rod set for
corner;

North  81  10'  00" East a distance of 20.72 feet to a 5/8 inch iron rod set for
the  northeast  corner  of  said Lot 1, Block 9 and being in a curve to the left
having a radius of 1,412.40 feet, a chord bearing of South 15 31' 04" East and a
chord  length  of  239.28  feet;

THENCE  departing  the southerly right-of-way line of said Oakwell Farms Parkway
and  following  the  easterly  line  of  said  Lot  1,  Block  9  as  follows:

Continuing  along  said  curve  to  the  left in a southerly direction through a
central  angle of 09 43' 07" for an arc length of 239.57 feet to a 5/8 inch iron
rod  set  for  the  beginning of a reverse curve to the right having a radius of
1,975.00  feet,  a  chord bearing of South 16 17' 46" East and a chord length of
281.14  feet;

Continuing  along  said reverse curve to the right through a central angle of 08
09'  47" for an arc length of 281.38 feet to a 5/8 inch iron rod set for corner;

South  05  08'  02" East a distance of 25.75 feet to a 5/8 inch iron rod set for
the  southeast  corner  of said Lot 1, Block 9 and being the northeast corner of
said  Lot  2,  Block  9;

THENCE  along  a  common line between said Lots 1 & 2, Block 9, South 85 18' 00"
West  a  distance  of  389.76  feet  to  the  Point  of  Beginning;

Containing  within  these metes and bounds 5.230 acres or 227,807 square feet of
land,  more  or  less,  all  according  to that survey prepared by Kurtz-Bedford
Associates,  Inc. dated August, 1996 and signed by Austin J. Bedford, Registered
Professional  Land  Surveyor  No.  4132;  to which reference for all purposes is
hereby  made.

<PAGE>
                                    Exhibit B
                                       To
                       Assignment and Assumption Agreement
                         Kingsley Place at Oakwell Farms

1.     Minimum  Monthly  Rent:  $66,034.88
2.     Rent  Current  Through:  December  31,  2003EXHIBIT 4.1

                          CYBERTEL COMMUNICATIONS CORP.

                 EMPLOYEE STOCK INCENTIVE PLAN FOR THE YEAR 2004

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

     1.1  Purpose.  This  Stock Incentive Plan (the "Plan") is intended to allow
          -------
designated  officers  and  employees  (all  of  whom  are sometimes collectively
referred  to  herein  as  the "Employees," or individually as the "Employee") of
Cybertel  Communications  Corp.,  a  Nevada  corporation (the "Company") and its
Subsidiaries  (as  that  term is defined below) which they may have from time to
time (the Company and such Subsidiaries are referred to herein as the "Company")
to receive certain options (the "Stock Options") to purchase common stock of the
Company,  par value $0.001 per share (the "Common Stock"), and to receive grants
of  the Common Stock subject to certain restrictions (the "Awards").  As used in
this  Plan,  the  term  "Subsidiary"  shall  mean  each  corporation  which is a
"subsidiary  corporation" of the Company within the meaning of Section 424(f) of
the Internal Revenue Code of 1986, as amended (the "Code").  The purpose of this
Plan  is  to  provide  the  Employees,  who  make  significant and extraordinary
contributions  to  the  long-term  growth  and  performance of the Company, with
equity-based  compensation  incentives, and to attract and retain the Employees.

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

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

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

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

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

     1.4  Shares  Subject  to  this  Plan.  The  maximum number of shares of the
          -------------------------------
Common  Stock  that  may  be  issued  pursuant to this Plan shall be 450,000,000
subject to adjustment pursuant to the provisions of Paragraph 4.1.  If shares of
the Common Stock awarded or issued under this Plan are reacquired by the Company
due  to  a  forfeiture

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

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

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

     2.2  Purchase  Price.  The  purchase price (the "Exercise Price") of shares
          ---------------
of the Common Stock subject to each Stock Option (the "Option Shares") shall not
be less than 85 percent of the Fair Market Value of the Common Stock on the date
of  exercise.  For  an  Employee  holding  greater  than 10 percent of the total
voting  power  of  all  stock  of  the  Company, either Common or Preferred, the
Exercise Price of an incentive stock option shall be at least 110 percent of the
Fair  Market  Value  of the Common Stock on the date of the grant of the option.
As  used  herein,  "Fair  Market  Value"  means the mean between the highest and
lowest  reported sales prices of the Common Stock on the New York Stock Exchange
Composite  Tape  or,  if  not  listed  on  such  exchange, on any other national
securities  exchange  on which the Common Stock is listed or on The Nasdaq Stock
Market,  or,  if  not so listed on any other national securities exchange or The
Nasdaq  Stock  Market,  then  the  average  of the bid price of the Common Stock
during  the  last  five  trading  days  on  the  OTC  Bulletin Board immediately
preceding  the last trading day prior to the date with respect to which the Fair
Market  Value  is  to  be  determined.  If the Common Stock is not then publicly
traded,  then  the Fair Market Value of the Common Stock shall be the book value
of  the  Company  per  share  as  determined  on  the  last  day of March, June,
September, or December in any year closest to the date when the determination is
to  be  made.  For  the  purpose of determining book value hereunder, book value
shall  be  determined  by adding as of the applicable date called for herein the
capital,  surplus,  and  undivided  profits  of  the  Company,  and after having
deducted  any  reserves theretofore established; the sum of these items shall be
divided by the number of shares of the Common Stock outstanding as of said date,
and  the  quotient thus obtained shall represent the book value of each share of
the  Common  Stock  of  the  Company.

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

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

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

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

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

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

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

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

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

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

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

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

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

     2.7.3  For  purposes  of  this  Plan:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     4.10 Term of Plan.  No Stock Option shall be exercisable, or Award granted,
          ------------
unless  and  until  the Directors of the Company have approved this Plan and all
other  legal  requirements  have  been  met.  This Plan was adopted by the Board
effective January 8, 2004.  No Stock Options or Awards may be granted under this
Plan  after  January  8,  2014.

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

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

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

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

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

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

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

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

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

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

     IN  WITNESS WHEREOF, this Plan has been executed effective as of January 8,
2004.

                                   CYBERTEL COMMUNICATIONS CORP.

                                   By  /s/ Richard A. Bailey
                                     -------------------------------------------
                                     Richard A. Bailey, President

                                        9
<PAGE>

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