Document:

EXHIBIT 4.6

                          CONSULTING SERVICES AGREEMENT

      This Consulting Services Agreement ("Agreement"), dated May 19, 2005, is
made by and between Seth Elliot ("Consultant"), and Reality Wireless Networks,
Inc., a Nevada corporation ("Client").

      WHEREAS, Consultant has extensive background in the area of financial
consulting and in the implementation of emerging business development
strategies;

      WHEREAS, Consultant desires to be engaged by Client to provide consulting
services regarding financial consulting and business development strategy to
Client on the terms and subject to the conditions set forth herein (the
"Services");

      WHEREAS, Client is a publicly held corporation with its common stock
shares trading on the Over the Counter Bulletin Board under the ticker symbol
"RWLN," and desires to further develop its business; and

      WHEREAS, Client desires to engage Consultant to provide the Services in
its area of knowledge and expertise on the terms and subject to the conditions
set forth herein.

      NOW, THEREFORE, in consideration for those services Consultant provides to
Client, the parties agree as follows:

1.    Services of Consultant.

      Consultant agrees to perform for Client the Services. As such Consultant
will provide bona fide services to Client. The services to be provided by
Consultant will not be in connection with the offer or sale of securities in a
capital-raising transaction, and will not directly or indirectly promote or
maintain a market for Client's securities.

2.    Consideration.

      Client agrees to pay Consultant, as his fee and as consideration for
services provided, 1,666,667 shares of common stock of the Client, which shares
shall be registered on Form S-8 with the United States Securities and Exchange
Commission (the "SEC") issued to Seth Elliot, the natural person performing the
consulting services for Client. All shares and certificates representing such
shares shall be subject to applicable SEC, federal, state (Blue sky) and local
laws and additional restrictions set forth herein.

3.    Confidentiality.

      Each party agrees that during the course of this Agreement, information
that is confidential or of a proprietary nature may not be disclosed to any
other party, including, but not limited to, product and business plans,
software, technical processes and formulas, source codes, product designs,

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sales, costs and other unpublished financial information, advertising revenues,
usage rates, advertising relationships, projections, and marketing data
("Confidential Information"). Confidential Information shall not include
information that the receiving party can demonstrate (a) is, as of the time of
its disclosure, or thereafter becomes part of the public domain through a source
other than the receiving party, (b) was known to the receiving party as of the
time of its disclosure, (c) is independently developed by the receiving party,
or (d) is subsequently learned from a third party not under a confidentiality
obligation to the providing party.

4.    Late Payment.

      Client shall pay to Consultant all fees within fifteen (15) days of the
due date. Failure of Client to finally pay any fees within fifteen (15) days
after the applicable due date shall be deemed a material breach of this
Agreement, justifying suspension of the performance of the Services provided by
Consultant, will be sufficient cause for immediate termination of this Agreement
by Consultant. Any such suspension will in no way relieve Client from payment of
fees, and, in the event of collection enforcement, Client shall be liable for
any costs associated with such collection, including, but not limited to, legal
costs, attorneys' fees, courts costs, and collection agency fees.

5.    Indemnification.

(a)   Client.

      Client agrees to indemnify, defend, and shall hold harmless Consultant
and/or his agents, and to defend any action brought against said parties with
respect to any claim, demand, cause of action, debt or liability, including
reasonable attorneys' fees to the extent that such action arises out of the
negligence or willful misconduct of Client.

(b)   Consultant.

      Consultant agrees to indemnify, defend, and shall hold harmless Client,
its directors, employees and agents, and defend any action brought against same
with respect to any claim, demand, cause of action, debt or liability, including
reasonable attorneys' fees, to the extent that such an action arises out of the
gross negligence or willful misconduct of Consultant.

(c)   Notice.

      In claiming any indemnification hereunder, the indemnified party shall
promptly provide the indemnifying party with written notice of any claim, which
the indemnified party believes falls within the scope of the foregoing
paragraphs. The indemnified party may, at its expense, assist in the defense if
it so chooses, provided that the indemnifying party shall control such defense,
and all negotiations relative to the settlement of any such claim. Any
settlement intended to bind the indemnified party shall not be final without the
indemnified party's written consent, which shall not be unreasonably withheld.

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6.    Termination and Renewal.

(a)   Term.

      This Agreement shall become effective on the date appearing next to the
signatures below and terminate twelve (12) months thereafter (the "Term").
Unless otherwise agreed upon in writing by Consultant and Client or otherwise
provided herein, any amendment to this Agreement shall automatically have the
effect of extending the Term of the Agreement until the later of one hundred
eighty (180) days following the original Term or for an additional one hundred
eighty (180) days following the date of such amendment.

(b)   Termination.

      Either party may terminate this Agreement on thirty (30) calendar days
written notice, or if prior to such action, the other party materially breaches
any of its representations, warranties or obligations under this Agreement.
Except as may be otherwise provided in this Agreement, such breach by either
party will result in the other party being responsible to reimburse the
non-defaulting party for all costs incurred directly as a result of the breach
of this Agreement, and shall be subject to such damages as may be allowed by law
including all attorneys' fees and costs of enforcing this Agreement.

(c)   Termination and Payment.

      Upon any termination or expiration of this Agreement, Client shall pay all
unpaid and outstanding fees through the effective date of termination or
expiration of this Agreement. And upon such termination, Consultant shall
provide and deliver to Client any and all outstanding services due through the
effective date of this Agreement.

7.    Miscellaneous.

(a)   Independent Contractor.

      This Agreement establishes an "independent contractor" relationship
between Consultant and Client.

(b).  Rights Cumulative; Waivers.

      The rights of each of the parties under this Agreement are cumulative. The
rights of each of the parties hereunder shall not be capable of being waived or
varied other than by an express waiver or variation in writing. Any failure to
exercise or any delay in exercising any of such rights shall not operate as a
waiver or variation of that or any other such right. Any defective or partial
exercise of any of such rights shall not preclude any other or further exercise
of that or any other such right. No act or course of conduct or negotiation on
the part of any party shall in any way preclude such party from exercising any
such right or constitute a suspension or any variation of any such right.

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(c)   Benefit; Successors Bound.

      This Agreement and the terms, covenants, conditions, provisions,
obligations, undertakings, rights, and benefits hereof, shall be binding upon,
and shall inure to the benefit of, the undersigned parties and their heirs,
executors, administrators, representatives, successors, and permitted assigns.

(d)   Entire Agreement.

      This Agreement contains the entire agreement between the parties with
respect to the subject matter hereof. There are no promises, agreements,
conditions, undertakings, understandings, warranties, covenants or
representations, oral or written, express or implied, between them with respect
to this Agreement or the matters described in this Agreement, except as set
forth in this Agreement. Any such negotiations, promises, or understandings
shall not be used to interpret or constitute this Agreement.

(e)   Assignment.

      Neither this Agreement nor any other benefit to accrue hereunder shall be
assigned or transferred by either party, either in whole or in part, without the
written consent of the other party, and any purported assignment in violation
hereof shall be void.

(f)   Amendment.

      This Agreement may be amended only by an instrument in writing executed by
all the parties hereto.

(g)   Severability.

      Each part of this Agreement is intended to be severable. In the event that
any provision of this Agreement is found by any court or other authority of
competent jurisdiction to be illegal or unenforceable, such provision shall be
severed or modified to the extent necessary to render it enforceable and as so
severed or modified, this Agreement shall continue in full force and effect.

(h)   Section Headings.

      The Section headings in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.

(i)   Construction.

      Unless the context otherwise requires, when used herein, the singular
shall be deemed to include the plural, the plural shall be deemed to include
each of the singular, and pronouns of one or no gender shall be deemed to
include the equivalent pronoun of the other or no gender.

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<PAGE>

(j)   Further Assurances.

      In addition to the instruments and documents to be made, executed and
delivered pursuant to this Agreement, the parties hereto agree to make, execute
and deliver or cause to be made, executed and delivered, to the requesting party
such other instruments and to take such other actions as the requesting party
may reasonably require to carry out the terms of this Agreement and the
transactions contemplated hereby.

(k)   Notices.

      Any notice which is required or desired under this Agreement shall be
given in writing and may be sent by personal delivery or by mail (either a.
United States mail, postage prepaid, or b. Federal Express or similar generally
recognized overnight carrier), addressed as follows (subject to the right to
designate a different address by notice similarly given):

If to Client:                       Reality Wireless Networks, Inc.
                                    120 W. Campbell Ave., Suite E
                                    Campbell, California 95008

With a copy to:                     David M. Otto
                                    The Otto Law Group, PLLC
                                    900 4th Ave., Suite 3140
                                    Seattle, Washington 98164

If to Consultant:
                                    --------------------------------

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

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

(l)   Governing Law.

      This Agreement shall be governed by the interpreted in accordance with the
laws of the State of Washington without reference to its conflicts of laws rules
or principles. Each of the parties consents to the exclusive jurisdiction of the
federal courts of the State of Washington in connection with any dispute arising
under this Agreement and hereby waives, to the maximum extent permitted by law,
any objection, including any objection based on forum non coveniens, to the
bringing of any such proceeding in such jurisdictions.

(m)   Consents.

      The person signing this Agreement on behalf of each party hereby
represents and warrants that he has the necessary power, consent and authority
to execute and deliver this Agreement on behalf of such party.

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<PAGE>

(n)   Survival of Provisions.

      The provisions contained in paragraphs 3, 5, 6, and 7 of this Agreement
shall survive the termination of this Agreement.

(o)   Execution in Counterparts.

      This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which together shall constitute one
and the same agreement.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
and have agreed to and accepted the terms herein on the date written above.

CLIENT:
         REALITY WIRELESS NETWORKS, INC.

By:
         ----------------------
         Name: Steve Careaga
         Its: CEO

CONSULTANT:
         SETH ELLIOT

By:
         ---------------------
         Name: Seth Elliot

                                       6Exhibit
4.1

2004
AMENDED STOCK INCENTIVE PLAN

OF

GRANT
LIFE SCIENCES, INC.

 

1.                                      
Purposes
of the Plan. 
This stock incentive plan (the “Plan”) is
intended to provide an incentive to employees (including directors and officers
who are employees), consultants and non-employee directors of Grant Life
Sciences, Inc. (the “Company”), a
Nevada corporation, or any Parent or Subsidiaries (as such terms are defined in
Paragraph 17), and to offer an additional inducement in obtaining the services
of such individuals.  The Plan provides for the grant of “incentive stock
options” (“ISOs”) within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”), stock
options which do not qualify as ISOs (“NQSOs”), and
shares of stock of the Company that may be subject to contingencies or
restrictions (“Restricted
Stock”;
collectively, with an ISO or NQSO, each an “Award”). 
The Company makes no representation or warranty, express or implied, as to the
qualification of any option as an “incentive stock option” or any other
treatment of an Award under the Code.

 

2.                                      
Stock
Subject to the Plan. 
Subject to the provisions of Paragraph 10, the aggregate number of shares of the
Company’s common stock, par value $.001 per share (“Common
Stock”), for
which Awards may be granted under the Plan shall not exceed 8,645,867
shares.  Such shares of Common Stock may, in the discretion of the Board of
Directors of the Company (the “Board
of Directors”),
consist either in whole or in part of authorized but unissued shares of Common
Stock or shares of Common Stock held in the treasury of the Company. 
Subject to the termination provisions of Paragraph 11, any shares of Common
Stock subject to an Award which for any reason expires or is forfeited,
canceled, or terminated unexercised or which ceases for any reason to be
exercisable, shall again become available for the granting of Awards under the
Plan.  Subject to the termination provisions of Paragraph 11, unvested
shares issued under the Plan and subsequently repurchased by the Company,
pursuant to the Company’s repurchase rights under the Plan shall be added back
to the number of shares of Common Stock reserved for issuance under the Plan and
shall accordingly be available for reissuance through one or more subsequent
Award grants.  The Company shall at all times during the term of the Plan
reserve and keep available such number of shares of Common Stock as will be
sufficient to satisfy the requirements of the Plan.  As further set forth
in Section 9 hereof, all Awards shall be granted by one or more written
instruments (the “Contract”) which
shall set forth all terms and conditions of the Award.

 

3.                                      
Administration
of the Plan. The
Plan will be administered by the Board of Directors, or by a committee (the
“Committee”)
consisting of two or more directors appointed by the Board of Directors. 
Those administering the Plan shall be referred to herein as the “Administrators.” 
Notwithstanding the foregoing, if the Company is or becomes a corporation
issuing any class of common equity securities required to be registered under
Section 12 of the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”), to
the extent necessary to preserve any deduction under Section 162(m) of the
Code or to comply with Rule 16b-3 promulgated under the Exchange Act, or any
successor rule (“Rule
16b-3”), any
Committee

 

 

appointed
by the Board of Directors to administer the Plan shall be comprised of two or
more directors each of whom shall be a “non-employee director,” within the
meaning of Rule 16b-3, and an “outside director,” within the meaning of Treasury
Regulation Section 1.162-27(e)(3), and the delegation of powers to the
Committee shall be consistent with applicable laws and regulations (including,
without limitation, applicable state law and Rule 16b-3).  Unless otherwise
provided in the By-Laws of the Company, by resolution of the Board of Directors
or applicable law, a majority of the members of the Committee shall constitute a
quorum, and the acts of a majority of the members present at any meeting at
which a quorum is present, and any acts approved in writing by all members
without a meeting, shall be the acts of the Committee.

 

The
Administrators shall have authority, subject to the express provisions of the
Plan, to construe the respective Contracts and the Plan; to prescribe, amend and
rescind rules and regulations relating to the Plan; to determine the terms and
provisions of the respective Contracts, which need not be identical; and to make
all other determinations in the judgment of the Administrators necessary or
desirable for the administration of the Plan.  The Administrators may
correct any defect or supply any omission or reconcile any inconsistency in the
Plan or in any Contract in the manner and to the extent it shall deem expedient
to carry the Plan into effect and it shall be the sole and final judge of such
expediency.  No director or person acting pursuant to authority delegated
by the Board shall be liable for any action or determination under the Plan made
in good faith.

 

4.                                      
Eligibility. 
The Administrators may from time to time, consistent with the purposes of the
Plan, grant Awards to (a) employees (including officers and directors who
are employees) of the Company, any Parent or any of its Subsidiaries,
(b) consultants to the Company, any Parent or any of its Subsidiaries,
and/or (c) to such directors of the Company who, at the time of grant, are
not common law employees of the Company or of any of its Subsidiaries, as the
Administrators may determine in their sole discretion (each, an “Award
Holder”). 
Such Awards granted shall cover such number of shares of Common Stock as the
Administrators may determine in their sole discretion; provided,
however, that if
on the date of grant of an Award, any class of common stock of the Company
(including without limitation the Common Stock) is required to be registered
under Section 12 of the Exchange Act, the maximum number of shares subject
to an Award that may be granted to any Award Holder during any calendar year
under the Plan shall be 2,500,000 shares (the “Section 162(m)
Maximum”);
provided,
further,
however, that
the aggregate market value (determined at the time the option is granted) of the
shares of Common Stock for which any eligible employee may be granted ISOs under
the Plan or any other plan of the Company, or of a Parent or a Subsidiary of the
Company, which are exercisable for the first time by such employee during any
calendar year shall not exceed $100,000.  The $100,000 ISO limitation
amount shall be applied by taking ISOs into account in the order in which they
were granted.  Any option (or portion thereof) granted in excess of such
ISO limitation amount shall be treated as a NQSO to the extent of such
excess.

 

5.                                      
Options.

 

(a)                                 
Grant. 
The Administrators may from time to time, in their sole discretion, consistent
with the purposes of the Plan, grant options to one or more Award
Holders.

 

2

 

(b)                                
Exercise
Price. 
The exercise price of the shares of Common Stock under each option shall be
determined by the Administrators in their sole discretion; provided,
however, that
the exercise price of an ISO, or of any Award intended to satisfy the
performance-based compensation exemption to the deduction limitation under
Section 162(m) of the Code, shall not be less than the fair market value of
the Common Stock subject to such option on the date of grant; and provided,
further,
however, that
if, at the time an ISO is granted, the Award Holder owns (or is deemed to own
under Section 424(d) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company,
of any of its Subsidiaries or of a Parent, the exercise price of such ISO shall
not be less than one hundred ten percent (110%) of the fair market value of the
Common Stock subject to such ISO on the date of grant.

 

(c)                                 
Term. 
Each option granted pursuant to the Plan shall be for such term as is
established by the Administrators, in their sole discretion, at or before the
time such option is granted; provided,
however, that
the term of each option granted pursuant to the Plan shall be for a period not
exceeding ten (10) years from the date of grant thereof, and provided
further, that
if, at the time an ISO is granted, the Award Holder owns (or is deemed to own
under Section 424(d) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company,
of any of its Subsidiaries or of a Parent, the term of the ISO shall be for a
period not exceeding five (5) years from the date of grant.  Options shall
be subject to earlier termination as hereinafter provided.

 

(d)                                
Termination
of Relationship. 
(i)  Except as may otherwise be expressly provided in the applicable
Contract or the Award Holder’s written employment or consulting or termination
contract, any Award Holder, whose employment or consulting or advisory
relationship with the Company, any Parent or any of its Subsidiaries, has
terminated for any reason other than the death or Disability of the Award
Holder, may exercise any option granted to the Award Holder as an employee or
consultant, to the extent exercisable on the date of such termination, at any
time within three (3) months after the date of termination, but not thereafter
and in no event after the date the option would otherwise have expired;
provided,
however, that if
such relationship is terminated for Cause (as defined in Paragraph 17), such
option shall terminate immediately.

 

(ii)                                 
For the
purposes of the Plan, an employment or consulting relationship shall be deemed
to exist between an individual and the Company if, at the time of the
determination, the individual was an employee of the Company, its Parent, any of
its Subsidiaries or any of its consultants for purposes of Section 422(a)
of the Code.  As a result, an individual on military leave, sick leave or
other bona fide leave of absence shall continue to be considered an employee or
consultant for purposes of the Plan during such leave if the period of the leave
does not exceed ninety (90) days, or, if longer, so long as the individual’s
right to re-employment with the Company, any of its Subsidiaries or a Parent or
consultant is guaranteed either by statute or by contract.  If the period
of leave exceeds ninety (90) days and the individual’s right to re-employment is
not guaranteed by statute or by contract, the employment or consulting
relationship shall be deemed to have terminated on the ninety-first
(91st) day of
such leave.

 

3

 

(iii)                              
Except as
may otherwise be expressly provided in the applicable Contract, an Award Holder
whose directorship with the Company has terminated for any reason other than the
Award Holder’s death or Disability, may exercise the options granted to the
Award Holder as a director who was not an employee of or consultant to the
Company or any of its Subsidiaries, to the extent exercisable on the date of
such termination, at any time within three (3) months after the date of
termination, but not thereafter and in no event after the date the option would
otherwise have expired; provided,
however, that if
the Award Holder’s directorship is terminated for Cause, such option shall
terminate immediately.

 

(iv)                             
Except as
may otherwise be expressly provided in the applicable Contract, options granted
under this Plan to a director, officer, employee, consultant or advisor shall
not be affected by any change in the status of the Award Holder so long as such
Award Holder continues to be a director of the Company, or an officer or
employee of, or a consultant or advisor to, the Company or any of its
Subsidiaries or a Parent (regardless of having changed from one to the other or
having been transferred from one entity to another).

 

(v)                                
Nothing
in the Plan or in any option granted under the Plan shall confer on any person
any right to continue in the employ of or as a consultant or advisor of the
Company, its Parent or any of its Subsidiaries, or as a director of the Company,
or interfere in any way with any right of the Company, any Parent or any of its
Subsidiaries to terminate such relationship at any time for any reason
whatsoever without liability to the Company, any Parent or any of its
Subsidiaries.

 

(e)                                 
Death
or Disability of an Award Holder. 
(i)  Except as may otherwise be expressly provided in the applicable
Contract or the Award Holder’s written employment or consulting or termination
contract, if an Award Holder dies (A) while the Award Holder is employed by, or
a consultant to, the Company, any Parent or any of its Subsidiaries, (B) within
three (3) months after the termination of the Award Holder’s employment or
consulting relationship with the Company, any Parent and its Subsidiaries
(unless such termination was for Cause) or (C) within one (1) year
following the termination of such employment or consulting relationship by
reason of the Award Holder’s Disability, the options granted to the Award Holder
as an employee of, or consultant to, the Company or any Parent or any of its
Subsidiaries, may be exercised, to the extent exercisable on the date of the
Award Holder’s death, by the Award Holder’s Legal Representative (as such term
is defined in Paragraph 17), at any time within one (1) year after death, but
not thereafter and in no event after the date the option would otherwise have
expired.  Except as may otherwise be expressly provided in the applicable
Contract or the Award Holder’s written employment or consulting or termination
contract, any Award Holder whose employment or consulting relationship with the
Company, any Parent and its Subsidiaries has terminated by reason of the Award
Holder’s Disability may exercise such options, to the extent exercisable upon
the effective date of such termination, at any time within one (1) year after
such date, but not thereafter and in no event after the date the option would
otherwise have expired.

 

(ii)                                 
Except as
may otherwise be expressly provided in the applicable Contract, if an Award
Holder dies (A) while the Award Holder is a director of the Company, (B) within
three (3) months after the termination of the Award Holder’s
directorship

 

4

 

with the
Company (unless such termination was for Cause) or (C) within one (1) year after
the termination of the Award Holder’s directorship by reason of the Award
Holder’s Disability, the options granted to the Award Holder as a director who
was not an employee of or consultant to the Company or any Parent or any of its
Subsidiaries, may be exercised, to the extent exercisable on the date of the
Award Holder’s death, by the Award Holder’s Legal Representative at any time
within one (1) year after death, but not thereafter and in no event after the
date the option would otherwise have expired.  Except as may otherwise be
expressly provided in the applicable Contract, an Award Holder whose
directorship with the Company has terminated by reason of Disability, may
exercise such options, to the extent exercisable on the effective date of such
termination, at any time within one (1) year after such date, but not thereafter
and in no event after the date the option would otherwise have
expired.

 

(f)                                   
Repurchase
Rights. 
The Administrators shall have the discretion to grant options which are
exercisable for shares of Common Stock subject to certain repurchase rights of
the Company.  The terms upon which such repurchase right shall be
exercisable (including the period and procedure for exercise and the appropriate
vesting schedule for the purchased shares) shall be established by the
Administrators and set forth in the Contract evidencing such repurchase
Award.

 

6.                                      
Restricted
Stock. 
The Administrators, in their sole discretion, may from time to time, consistent
with the purposes of the Plan, grant shares of Common Stock to persons eligible
for such grant pursuant to Paragraph 4.  The grant may be for no
consideration or may require the Award Holder to pay such price per share
therefor, if any, as the Administrators may determine, in their sole
discretion.  Such shares may be subject to such contingencies and
restrictions as the Administrators may determine, as set forth in the Contract,
including the right to repurchase such shares upon specified events determined
by the Administrators as set forth in the Contract, or events of forfeiture as
determined by the Administrators as set forth in the Contract.  Such rights
of repurchase or forfeiture may be based on such factors as determined by the
Administrators, including but not limited to factors relating to the tenure of
the employment or consulting relationship between the Award Holder and the
Company, performance criteria related to the Award Holder or the Company, and
whether the relationship between the Award Holder and the Company has terminated
with or without Cause or with or without the Company’s consent.  Upon the
issuance of the stock certificate for a Restricted Stock Award, or in the case
of uncertificated shares, the entry on the books of the Company’s transfer agent
representing such shares, notwithstanding any contingencies or restrictions to
which the shares are subject, the Award Holder shall be considered to be the
record owner of the shares, and subject to the contingencies and restrictions
set forth in the Award Agreement, shall have all rights of a shareholder of
record with respect to such shares, including the right to vote and to receive
distributions.  The shares shall vest in the Award Holder when all of the
vesting restrictions and contingencies lapse, including the lapse of any rights
of repurchase or forfeiture as provided in the Contract.  Until such time,
the Administrators may require that such shares be held by the Company, together
with a stock power duly endorsed in blank by the Award Holder.

 

5

 

7.                                      
Rules
of Operation.

 

(a)                                 
Fair
Market Value. 
The fair market value of a share of Common Stock on any day shall be (i) if the
principal market for the Common Stock is a national securities exchange, the
closing prices per share of the Common Stock on such day as reported by such
exchange or on a consolidated tape reflecting transactions on such exchange,
(ii) if the principal market for the Common Stock is not a national securities
exchange and the Common Stock is quoted on the Nasdaq Stock Market
(“Nasdaq”), and
(A) if actual sales price information is available with respect to the Common
Stock, the closing sales prices per share of the Common Stock on such day on
Nasdaq, or (B) if such information is not available, the closing bid and the
asked prices per share for the Common Stock on such day on Nasdaq, or
(iii) if the principal market for the Common Stock is not a national
securities exchange and the Common Stock is not quoted on Nasdaq, the closing
bid and asked prices per share for the Common Stock on such day as reported on
the OTC Bulletin Board Service or by National Quotation Bureau, Incorporated or
a comparable service; provided,
however, that if
clauses (i), (ii) and (iii) of this Paragraph 7(a) are all inapplicable because
the Company’s Common Stock is not publicly traded, or if no trades have been
made or no quotes are available for such day, the fair market value of a share
of Common Stock shall be determined by the Administrators by any method
consistent with any applicable regulations adopted by the Treasury Department
relating to stock options.

 

(b)                                
Notice
and Exercise. 
An Award (or any installment thereof), to the extent then exercisable, shall be
exercised by giving written notice to the Company at its principal office
stating which Award is being exercised, specifying the number of shares of
Common Stock as to which such Award is being exercised and accompanied by
payment in full of the aggregate exercise price therefor (or the amount due on
exercise if the applicable Contract permits installment payments) (i) in cash
and/or by certified check, (ii) with the authorization of the Administrators,
with previously acquired shares of Common Stock having an aggregate fair market
value, on the date of exercise, equal to the aggregate exercise price of all
Awards being exercised, (iii) with the authorization of the Administrators, by
delivering a recourse, interest bearing promissory note payable in one or more
installments and secured by the shares of Common Stock for which the Award is
exercised, or (iv) by any other means which the Administrators determine are
consistent with the purposes of the Plan and with applicable laws and
regulations.  The Company shall not be required to issue any shares of
Common Stock pursuant to the exercise of any Award until all required payments
with respect thereto, including payments for any required withholding amounts,
have been made.

 

To the
extent permitted by applicable laws and regulations, the Administrators may, in
their sole discretion, permit payment of the exercise price of an Award by
delivery by the Award Holder of a properly executed notice, together with a copy
of the Award Holder’s irrevocable instructions to a broker acceptable to the
Administrators to deliver promptly to the Company the amount of sale or loan
proceeds sufficient to pay such exercise price.  In connection therewith,
the Company may enter into agreements for coordinated procedures with one or
more brokerage firms.

 

6

 

(c)                                 
Fractional
Shares. 
In no case may a fraction of a share of Common Stock be purchased or issued
under the Plan.

 

(d)                                
Stockholder
Rights. 
An Award Holder shall not have the rights of a stockholder with respect to such
shares of Common Stock to be received upon the exercise or grant of an Award
until the date of issuance of a stock certificate to the Award Holder for such
shares or, in the case of uncertificated shares, until the date an entry is made
on the books of the Company’s transfer agent representing such shares;
provided,
however, that
until such stock certificate is issued or until such book entry is made, any
Award Holder using previously acquired shares of Common Stock in payment of an
option exercise price shall continue to have the rights of a stockholder with
respect to such previously acquired shares.

 

8.                                      
Compliance
with Securities Laws.

 

(a)                                 
Registration. 
It is a condition to the receipt or exercise of any Award that either (i) a
Registration Statement under the Securities Act of 1933, as amended (the
“Securities
Act”), with
respect to the shares of Common Stock to be issued upon such grant or exercise
shall be effective and current at the time of such grant or exercise, or
(ii) there is an exemption from registration under the Securities Act for
the issuance of the shares of Common Stock upon such grant or exercise. 
Nothing herein shall be construed as requiring the Company to register shares
subject to any Award under the Securities Act or to keep any Registration
Statement effective or current.

 

(b)                                
Representations
and Warranties. 
The Administrators may require, in their sole discretion, as a condition to the
grant or exercise of an Award, that the Award Holder execute and deliver to the
Company the Award Holder’s representations and warranties, in form, substance
and scope satisfactory to the Administrators, which the Administrators determine
is necessary or convenient to facilitate the perfection of an exemption from the
registration requirements of the Securities Act, applicable state securities
laws or other legal requirements, including without limitation, that (i) the
shares of Common Stock to be issued upon the receipt or exercise of an Award are
being acquired by the Award Holder for the Award Holder’s own account, for
investment only and not with a view to the resale or distribution thereof, and
(ii) any subsequent resale or distribution of shares of Common Stock by such
Award Holder will be made only pursuant to (A) a Registration Statement under
the Securities Act which is effective and current with respect to the shares of
Common Stock being sold, or (B) a specific exemption from the registration
requirements of the Securities Act, but in claiming such exemption, the Award
Holder, prior to any offer of sale or sale of such shares of Common Stock, shall
provide the Company with a favorable written opinion of counsel satisfactory to
the Company, in form, substance and scope satisfactory to the Company, as to the
applicability of such exemption to the proposed sale or
distribution.

 

(c)                                 
Listing
of Shares. 
In addition, if at any time the Administrators shall determine that the listing
or qualification of the shares of Common Stock subject to any Award on any
securities exchange, Nasdaq or under any applicable law, or that the consent or
approval of any governmental agency or regulatory body, is necessary or
desirable as a condition to, or in connection with, the granting of an Award or
the issuance of shares of Common Stock

 

7

 

upon
exercise of an Award, such Award may not be granted or exercised in whole or in
part, as the case may be, unless such listing, qualification, consent or
approval shall have been effected or obtained free of any conditions not
acceptable to the Administrators.

 

9.                                      
Award
Contracts. 
Each Award shall be evidenced by an appropriate Contract, which shall be duly
executed by the Company and the Award Holder.  Such Contract shall contain
such terms, provisions and conditions not inconsistent herewith as may be
determined by the Administrators in their sole discretion.  The terms of
each Award and Contract need not be identical.

 

10.                                
Adjustments
upon Changes in Common Stock.

 

(a)                                 
Adjustments. 
Notwithstanding any other provision of the Plan, in the event of any change in
the outstanding Common Stock by reason of a stock dividend, recapitalization,
merger in which the Company is the surviving corporation, consolidation,
spin-off, split-up, combination or exchange of shares or the like which results
in a change in the number or kind of shares of Common Stock which are
outstanding immediately prior to such event, the aggregate number and kind of
shares subject to the Plan, the aggregate number and kind of shares subject to
each outstanding Award, the exercise price of each Award, and the maximum number
of shares subject to each Award that may be granted to any employee in any
calendar year, and the Section 162(m) Maximum, shall be appropriately
adjusted by the Board of Directors, whose determination shall be conclusive and
binding on all parties.  Such adjustment may provide for the elimination of
fractional shares that might otherwise be subject to options without payment
therefor.  Notwithstanding the foregoing, no adjustment shall be made
pursuant to this Paragraph 10 if such adjustment (i) would cause the Plan to
fail to comply with Section 422 of the Code or with Rule 16b-3 of the
Exchange Act (if applicable to such Award), and (ii) would be considered as
the adoption of a new plan requiring stockholder approval.  The conversion
of one or more outstanding shares of the Company’s Preferred Stock, if any, into
Common Stock shall not in and of itself require any adjustment under this
Paragraph 10.

 

(b)                                
Acceleration
of Vesting. 
Except as may otherwise be expressly provided in an applicable Contract, in the
event of a Corporate Transaction (as defined in Paragraph 17) (i) the shares
subject to each Restricted Stock Award outstanding under the Plan shall vest in
full immediately prior to the effective date of the Corporate Transaction and
(ii) any options shall vest in full at such date so that each such Award shall,
immediately prior to the effective date of the Corporate Transaction, become
fully exercisable for all of the shares of Common Stock at the time subject to
that Award and may be exercised for any or all of those shares as fully-vested
shares of Common Stock and such options shall otherwise terminate as of the
effective date of the Corporate Transaction.  However, unless the
Administrators determine otherwise, the shares subject to an outstanding Award
shall not vest on such an accelerated basis if and to the extent that: 
(A) such Award is assumed by the successor corporation (or parent thereof)
in the Corporate Transaction and the Company’s repurchase rights, if any, are
concurrently assigned to such successor corporation (or parent thereof) or if
the Corporate Transaction is of the type specified in Paragraph 17(c)(i)(C) the
Company expressly agrees to allow the option to continue or (B) such Award is to
be replaced with a cash incentive program of the successor corporation which
preserves the spread existing on the unvested Award shares at

 

8

 

the time
of the Corporate Transaction and provides for subsequent payout in accordance
with the same vesting schedule applicable to those unvested Award shares,
or (C) the acceleration of such Award is subject to other limitations imposed by
the Administrators at the time of the Award grant.  Unless the
Administrators determine otherwise, all outstanding repurchase rights under an
Award or Stock Purchase Agreement shall also terminate automatically, and the
shares of Common Stock subject to those terminated rights shall immediately vest
in full, in the event of a Corporate Transaction, except to the extent
that  (x) those repurchase rights are assigned to the successor
corporation (or Parent thereof) in connection with such transaction or, if the
Corporate Transaction is of the type specified in Paragraph 17(c)(i)(C) the
Company expressly agrees to provide for the continuation of such repurchase
rights or (y) such accelerated vesting is precluded by other limitations imposed
by the Administrators at the time the repurchase right is issued.

 

(c)                                 
Termination
of Repurchase Rights. 
The Administrators shall have the discretionary authority, exercisable at the
time the unvested Award shares are issued or any time while the Company’s
repurchase rights with respect to those shares remain outstanding, to provide
that those rights shall automatically terminate on an accelerated basis, and the
shares subject to those terminated rights shall immediately vest, in the event
that the Award Holder’s employment should subsequently be terminated by the
Company without Cause within a designated period (not to exceed eighteen (18)
months) following the effective date of any Corporate Transaction in which those
repurchase rights are assigned to the successor corporation (or parent
thereof).

 

11.                                
Amendments
and Termination of the Plan. 
The Plan was adopted by the Board of Directors on August 2, 2004.  No
Award may be granted under the Plan after August 2, 2014.  The Board
of Directors, without further approval of the Company’s stockholders, may at any
time suspend or terminate the Plan, in whole or in part, or amend it from time
to time in such respects as it may deem advisable, including without limitation,
in order that ISOs granted hereunder meet the requirements for “incentive stock
options” under the Code, or to comply with the provisions of Rule 16b-3 or
Section 162(m) of the Code or any change in applicable laws or regulations,
ruling or interpretation of any governmental agency or regulatory body;
provided,
however, that no
amendment shall be effective, without the requisite prior or subsequent
stockholder approval, which would (a) except as contemplated in Paragraph 10,
increase the maximum number of shares of Common Stock for which any Awards may
be granted under the Plan or change the Section 162 Maximum, (b) change the
eligibility requirements for individuals entitled to receive Awards hereunder,
or (c) make any change for which applicable law or any governmental agency or
regulatory body requires stockholder approval.  No termination, suspension
or amendment of the Plan shall adversely affect the rights of an Award Holder
under any Award granted under the Plan without such Award Holder’s
consent.  The power of the Administrators to construe and administer any
Award granted under the Plan prior to the termination or suspension of the Plan
shall continue after such termination or during such suspension.

 

12.                                
Non-Transferability. 
Except as may otherwise be expressly provided in the applicable Contract, no
option granted under the Plan shall be transferable other than by
will

 

9

 

or the
laws of descent and distribution, and Awards may be exercised, during the
lifetime of the Award Holder, only by the Award Holder or the Award Holder’s
Legal Representatives.  Except as may otherwise be expressly provided in
the applicable Contract, a Restricted Stock Award, to the extent not vested,
shall not be transferable otherwise than by will or the laws or descent and
distribution.  Except to the extent provided above, Awards may not be
assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution,
attachment or similar process, and any such attempted assignment, transfer,
pledge, hypothecation or disposition shall be null and void ab initio and of
no force or effect.

 

13.                                
Withholding
Taxes. 
The Company, or its Parent or Subsidiary, as applicable, may withhold (a) cash
or (b) with the consent of the Administrators (in the Contract or otherwise),
shares of Common Stock to be issued under an Award or a combination of cash and
shares, having an aggregate fair market value equal to the amount which the
Administrators determine is necessary to satisfy the obligation of the Company,
a Subsidiary or Parent to withhold federal, state and local income taxes or
other amounts incurred by reason of the grant, vesting, exercise or disposition
of an option or the disposition of the underlying shares of Common Stock. 
Alternatively, the Company may require the Award Holder to pay to the Company
such amount, in cash, promptly upon demand.

 

14.                                
Legends;
Payment of Expenses; Share Escrow. 
The Company may endorse such legend or legends upon the certificates for shares
of Common Stock issued upon the grant or exercise of an Award and may issue such
“stop transfer” instructions to its transfer agent in respect of such shares as
it determines, in its sole discretion, to be necessary or appropriate to (a)
prevent a violation of, or to perfect an exemption from, the registration
requirements of the Securities Act, applicable state securities laws or other
legal requirements, (b) implement the provisions of the Plan or any agreement
between the Company and the Award Holder with respect to such shares of Common
Stock, or (c) permit the Company to determine the occurrence of a “disqualifying
disposition,” as described in Section 421(b) of the Code, of the shares of
Common Stock transferred upon the exercise of an ISO granted under the
Plan.  The Company shall pay all issuance taxes with respect to the
issuance of shares of Common Stock upon grant or exercise of an Award, as well
as all fees and expenses incurred by the Company in connection with such
issuance.  Shares of Restricted Common Stock issued upon exercise of an
Award may, in the Administrator’s discretion, be held in escrow by the Company
until the Award Holder’s interest in such shares vests.

 

15.                                
Use of
Proceeds. 
The cash proceeds to be received upon the grant or exercise of an Award shall be
added to the general funds of the Company and used for such corporate purposes
as the Board of Directors may determine, in its sole discretion.

 

16.                                
Substitutions
and Assumptions of Awards of Certain Constituent Corporations. 
Anything in this Plan to the contrary notwithstanding, the Board of Directors
may, without further approval by the stockholders, substitute new Awards for
prior Awards of a Constituent Corporation (as such term is defined in Paragraph
17) or assume the prior options or restricted stock of such Constituent
Corporation.

 

10

 

17.                                
Definitions.

 

(a)                                 
“Cause,” in
connection with the termination of an Award Holder, shall mean (i) “cause,” as
such term (or any similar term, such as “with cause”) is defined in any
employment, consulting or other applicable agreement for services between the
Company and such Award Holder, or (ii) in the absence of such an agreement,
“cause” as such term is defined in the Contract executed by the Company and such
Award Holder, or (iii) in the absence of both of the foregoing or if not defined
in such agreements, (A) conviction of such Award Holder for any felony or
the entering by him of a please of guilty or nolo
contendere with
respect thereto, (B) willful and repeated failures in any material respect
of such Award Holder to perform any of the Award Holder’s reasonable duties and
responsibilities assigned to him and the failure of the Award Holder to cure
such failures hereunder within thirty (30) days after written notice thereof
from the Company, (C) the commission of any act or failure to act by such
Award Holder that involves moral turpitude, dishonesty, theft, destruction of
property, fraud, embezzlement or unethical business conduct, or that is
otherwise injurious to the Company, any of its Subsidiaries or any Parent or any
other affiliate of the Company (or its or their respective employees), whether
financially or otherwise, (D) any material violation by such Award Holder
of the requirements of such Contract, any other contract or agreement between
the Company and such Award Holder or this Plan (as in effect from time to time),
(E) a breach by the Award Holder of any confidentiality or nondisclosure
agreement or any other similar agreement or arrangement; in each case, with
respect to subsections (A) through (E), as determined by the Board of
Directors.

 

(b)                                
“Constituent
Corporation” shall
mean any corporation which engages with the Company, its Parent or any
Subsidiary in a transaction to which Section 424(a) of the Code applies (or
would apply if the option assumed or substituted were an ISO), or any Parent or
any Subsidiary of such corporation.

 

(c)                                 
“Corporate
Transaction” shall
mean

 

(i)                                    
any of
the following transactions effected with a Person not an Affiliate of the
Company prior to the transaction:

 

(A)                             
a merger,
consolidation or combination of the Company with or into another issuer; (B) the
exchange or sale of all or a portion of the outstanding shares of the Company
for securities of another issuer, or other consideration provided by such issuer
or by another party to such transaction; or (C) the issuance of equity
securities of the Company or securities convertible into equity securities, in
exchange for securities of another issuer or other consideration provided by
such issuer or by another party to such transaction; and in the case of either
(A), (B) or (C) the Company’s shareholders prior to the transaction, do not
possess, immediately after such transaction, more than fifty percent (50%) (not
including the holdings of the other issuer or affiliate thereof, if such Person
was a shareholder of the Company prior to the transaction) of the voting power
of any one or more of the following:  (X)  the Company; (Y) such
other issuer; or (Z) such other constituent party to the transaction;
or

 

11

 

(ii)                                 
a sale of
all or substantially all of the Company’s assets to a third party not an
Affiliate of the Company immediately prior to such transaction.

 

(d)                                
“Disability” shall
mean a permanent and total disability within the meaning of
Section 22(e)(3) of the Code.

 

(e)                                 
“Legal
Representative” shall
mean the executor, administrator or other person who at the time is entitled by
law to exercise the rights of a deceased or incapacitated Award Holder with
respect to an Award granted under the Plan.

 

(f)                                   
“Parent” shall
mean a “parent corporation” within the meaning of Section 424(e) of the
Code.

 

(g)                                
“Subsidiary” shall
mean a “subsidiary corporation” within the meaning of Section 424(f) of the
Code.

 

18.                                
Governing
Law. 
The Plan, any Awards granted hereunder, the Contracts and all related matters
shall be governed by, and construed in accordance with, the laws of the State of
Nevada, other than those laws which would defer to the substantive law of the
other jurisdiction.

 

Neither
the Plan nor any Contract shall be construed or interpreted with any presumption
against the Company by reason of the Company causing the Plan or Contract to be
drafted.  Whenever from the context it appears appropriate, any term stated
in either the singular or plural shall include the singular and plural, and any
term stated in the masculine, feminine or neuter gender shall include the
masculine, feminine and neuter.

 

19.                                
Partial
Invalidity. 
The invalidity, illegality or unenforceability of any provision in the Plan, any
Award or Contract shall not affect the validity, legality or enforceability of
any other provision, all of which shall be valid, legal and enforceable to the
fullest extent permitted by applicable law.

 

20.                                
Stockholder
Approval. 
The Plan shall be subject to approval of the Company’s stockholders.  No
options granted hereunder may be exercised prior to such approval, provided,
however, that
the date of grant of any option shall be determined as if the Plan had not been
subject to such approval.  Notwithstanding the foregoing, if the Plan is
not approved by a vote of the stockholders of the Company on or before
July 30, 2005, the Plan and any Awards granted hereunder shall
terminate.

The
foregoing 2004 Amended Stock Incentive Plan was duly adopted and approved by the
Board of directors on April 18, 2005. 

 

12

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