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                                                                     EXHIBIT 4.2

                 SUB SURFACE WASTE MANAGEMENT OF DELAWARE, INC.
           NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN
                                FOR THE YEAR 2003

         1. INTRODUCTION. This Plan shall be known as the "Sub Surface Waste
Management of Delaware, Inc. Non-Employee Directors and Consultants Retainer
Stock Plan for the Year 2003," and is hereinafter referred to as the "Plan." The
purposes of this Plan are to enable Sub Surface Waste Management of Delaware,
Inc., a Delaware corporation (the "Company"), to promote the interests of the
Company and its stockholders by attracting and retaining non-employee Directors
and Consultants capable of furthering the future success of the Company and by
aligning their economic interests more closely with those of the Company's
stockholders, by paying their retainer or fees in the form of shares of the
Company's common stock, par value $0.001 per share (the "Common Stock").

         2. DEFINITIONS. The following terms shall have the meanings set forth
below:

         "Board" means the Board of Directors of the Company.

         "Change of Control" has the meaning set forth in Paragraph 13(d)
hereof.

         "Code" means the Internal Revenue Code of 1986, as amended, and the
rules and regulations thereunder. References to any provision of the Code or
rule or regulation thereunder shall be deemed to include any amended or
successor provision, rule or regulation.

         "Committee" means the committee that administers this Plan, as more
fully defined in Paragraph 14 hereof.

         "Common Stock" has the meaning set forth in Paragraph 1 hereof.

         "Company" has the meaning set forth in Paragraph 1 hereof.

         "Deferral Election" has the meaning set forth in Paragraph 7 hereof.

         "Deferred Stock Account" means a bookkeeping account maintained by the
Company for a Participant representing the Participant's interest in the shares
credited to such Deferred Stock Account pursuant to Paragraph 8 hereof.

         "Delivery Date" has the meaning set forth in Paragraph 7 hereof.

         "Director" means an individual who is a member of the Board of
Directors of the Company.

         "Dividend Equivalent" for a given dividend or other distribution means
a number of shares of the Common Stock having a Fair Market Value, as of the
record date for such dividend or distribution, equal to the amount of cash, plus
the Fair Market Value on the date of distribution of any property, that is
distributed with respect to one share of the Common Stock pursuant to such
dividend or distribution; such Fair Market Value to be determined by the
Committee in good faith.

         "Effective Date" has the meaning set forth in Paragraph 3 hereof.

         "Exchange Act" has the meaning set forth in Paragraph 13(d) hereof.

         "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

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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.

         "Participant" has the meaning set forth in Paragraph 4 hereof.

         "Payment Time" means the time when a Stock Retainer is payable to a
Participant pursuant to Paragraph 5 hereof (without regard to the effect of any
Deferral Election).

         "Stock Retainer" has the meaning set forth in Paragraph 5 hereof.

         "Third Anniversary" has the meaning set forth in Paragraph 7 hereof.

         3. EFFECTIVE DATE OF THE PLAN. This Plan was adopted by the Board
effective October 31, 2003 (the "Effective Date").

         4. ELIGIBILITY. Each individual who is a Director or Consultant on the
Effective Date and each individual who becomes a Director or Consultant
thereafter during the term of this Plan, shall be a participant (the
"Participant") in this Plan, in each case during such period as such individual
remains a Director or Consultant and is not an employee of the Company or any of
its subsidiaries. Each credit of shares of the Common Stock pursuant to this
Plan shall be evidenced by a written agreement duly executed and delivered by or
on behalf of the Company and a Participant, if such an agreement is required by
the Company to assure compliance with all applicable laws and regulations.

         5. GRANTS OF SHARES. Commencing on the Effective Date, the amount of
compensation for service to directors or consultants shall be payable in shares
of the Common Stock (the "Stock Retainer") pursuant to this Plan at the deemed
issuance price of the Fair Market Value of the Common Stock on the date of the
issuance of such shares.

         6. PURCHASE PRICE. The purchase price (the "Exercise Price") of shares
of the Common Stock subject to each Stock Option (the "Option Shares") shall be
determined by the board of directors acting in good faith, which in any event
shall not be less than 85 percent of the Fair Market Value of the Option Shares,
and in the case of any Participant who owns securities of the Company possessing
more than 10 percent of the total combined voting power of all classes of
securities of the Company or its parent or subsidiaries possessing voting power,
the Exercise Price shall be at least 100 percent of the Fair Market Value of the
Option Shares at the time a Participant is granted the right to purchase the
Option Shares, or at the time the purchase is consummated.

         7. DEFERRAL OPTION. From and after the Effective Date, a Participant
may make an election (a "Deferral Election") on an annual basis to defer
delivery of the Stock Retainer specifying which one of the following ways the
Stock Retainer is to be delivered (a) on the date which is three years after the
Effective Date for which it was originally payable (the "Third Anniversary"),
(b) on the date upon which the Participant ceases to be a Director or Consultant
for any reason (the "Departure Date") or (c) in five equal annual installments
commencing on the Departure Date (the "Third Anniversary" and "Departure Date"
each being referred to herein as a "Delivery Date"). Such Deferral Election
shall remain in effect for each Subsequent Year unless changed, provided that,
any Deferral Election with respect to a particular Year may not be changed less
than six months prior to the beginning of such Year, and provided, further, that
no more than one Deferral Election or change thereof may be made in any Year.

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         Any Deferral Election and any change or revocation thereof shall be
made by delivering written notice thereof to the Committee no later than six
months prior to the beginning of the Year in which it is to be effected;
provided that, with respect to the Year beginning on the Effective Date, any
Deferral Election or revocation thereof must be delivered no later than the
close of business on the 30th day after the Effective Date.

         8. DEFERRED STOCK ACCOUNTS. The Company shall maintain a Deferred Stock
Account for each Participant who makes a Deferral Election to which shall be
credited, as of the applicable Payment Time, the number of shares of the Common
Stock payable pursuant to the Stock Retainer to which the Deferral Election
relates. So long as any amounts in such Deferred Stock Account have not been
delivered to the Participant under Paragraph 9 hereof, each Deferred Stock
Account shall be credited as of the payment date for any dividend paid or other
distribution made with respect to the Common Stock, with a number of shares of
the Common Stock equal to (a) the number of shares of the Common Stock shown in
such Deferred Stock Account on the record date for such dividend or distribution
multiplied by (b) the Dividend Equivalent for such dividend or distribution.

         9. DELIVERY OF SHARES.

         (a) The shares of the Common Stock in a Participant's Deferred Stock
Account with respect to any Stock Retainer for which a Deferral Election has
been made (together with dividends attributable to such shares credited to such
Deferred Stock Account) shall be delivered in accordance with this Paragraph 9
as soon as practicable after the applicable Delivery Date. Except with respect
to a Deferral Election pursuant to Paragraph 7(c) hereof, or other agreement
between the parties, such shares shall be delivered at one time; provided that,
if the number of shares so delivered includes a fractional share, such number
shall be rounded to the nearest whole number of shares. If the Participant has
in effect a Deferral Election pursuant to Paragraph 7(c) hereof, then such
shares shall be delivered in five equal annual installments (together with
dividends attributable to such shares credited to such Deferred Stock Account),
with the first such installment being delivered on the first anniversary of the
Delivery Date; provided that, if in order to equalize such installments,
fractional shares would have to be delivered, such installments shall be
adjusted by rounding to the nearest whole share. If any such shares are to be
delivered after the Participant has died or become legally incompetent, they
shall be delivered to the Participant's estate or legal guardian, as the case
may be, in accordance with the foregoing; provided that, if the Participant dies
with a Deferral Election pursuant to Paragraph 7(c) hereof in effect, the
Committee shall deliver all remaining undelivered shares to the Participant's
estate immediately. References to a Participant in this Plan shall be deemed to
refer to the Participant's estate or legal guardian, where appropriate.

         (b) The Company may, but shall not be required to, create a grantor
trust or utilize an existing grantor trust (in either case, "Trust") to assist
it in accumulating the shares of the Common Stock needed to fulfill its
obligations under this Paragraph 9. However, Participants shall have no
beneficial or other interest in the Trust and the assets thereof, and their
rights under this Plan shall be as general creditors of the Company, unaffected
by the existence or nonexistence of the Trust, except that deliveries of Stock
Retainers to Participants from the Trust shall, to the extent thereof, be
treated as satisfying the Company's obligations under this Paragraph 9.

         10. SHARE CERTIFICATES; VOTING AND OTHER RIGHTS. The certificates for
shares delivered to a Participant pursuant to Paragraph 9 above shall be issued
in the name of the Participant, and from and after the date of such issuance the
Participant shall be entitled to all rights of a stockholder with respect to the
Common Stock for all such shares issued in his name, including the right to vote
the shares, and the Participant shall receive all dividends and other
distributions paid or made with respect thereto.

         11. GENERAL RESTRICTIONS.

                  (a) Notwithstanding any other provision of this Plan or
agreements made pursuant thereto, the Company shall not be required to issue or
deliver any certificate or certificates for shares of the Common Stock under
this Plan prior to fulfillment of all of the following conditions:

                           (i) Listing or approval for listing upon official
notice of issuance of such shares on the New York Stock Exchange, Inc., or such
other securities exchange as may at the time be a market for the Common Stock;

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                           (ii) Any registration or other qualification of such
shares under any state or federal law or regulation, or the maintaining in
effect of any such registration or other qualification which the Committee
shall, upon the advice of counsel, deem necessary or advisable; and

                           (iii) Obtaining any other consent, approval, or
permit from any state or federal governmental agency which the Committee shall,
after receiving the advice of counsel, determine to be necessary or advisable.

                  (b) Nothing contained in this Plan shall prevent the Company
from adopting other or additional compensation arrangements for the
Participants.

         12. SHARES AVAILABLE. Subject to Paragraph 13 below, the maximum number
of shares of the Common Stock which may in the aggregate be paid as Stock
Retainers pursuant to this Plan is 800,000. Shares of the Common Stock issueable
under this Plan may be taken from treasury shares of the Company or purchased on
the open market.

         13. ADJUSTMENTS; CHANGE OF CONTROL.

                  (a) In the event that there is, at any time after the Board
adopts this Plan, any change in corporate capitalization, such as a stock split,
combination of shares, exchange of shares, warrants or rights offering to
purchase the Common Stock at a price below its Fair Market Value,
reclassification, or recapitalization, or a corporate transaction, such as any
merger, consolidation, separation, including a spin-off, stock dividend, or
other extraordinary distribution of stock or property of the Company, any
reorganization (whether or not such reorganization comes within the definition
of such term in Section 368 of the Code) or any partial or complete liquidation
of the Company (each of the foregoing a "Transaction"), in each case other than
any such Transaction which constitutes a Change of Control (as defined below),
(i) the Deferred Stock Accounts shall be credited with the amount and kind of
shares or other property which would have been received by a holder of the
number of shares of the Common Stock held in such Deferred Stock Account had
such shares of the Common Stock been outstanding as of the effectiveness of any
such Transaction, (ii) the number and kind of shares or other property subject
to this Plan shall likewise be appropriately adjusted to reflect the
effectiveness of any such Transaction, and (iii) the Committee shall
appropriately adjust any other relevant provisions of this Plan and any such
modification by the Committee shall be binding and conclusive on all persons.

                  (b) If the shares of the Common Stock credited to the Deferred
Stock Accounts are converted pursuant to Paragraph 13(a) into another form of
property, references in this Plan to the Common Stock shall be deemed, where
appropriate, to refer to such other form of property, with such other
modifications as may be required for this Plan to operate in accordance with its
purposes. Without limiting the generality of the foregoing, references to
delivery of certificates for shares of the Common Stock shall be deemed to refer
to delivery of cash and the incidents of ownership of any other property held in
the Deferred Stock Accounts.

                  (c) In lieu of the adjustment contemplated by Paragraph 13(a),
in the event of a Change of Control, the following shall occur on the date of
the Change of Control (i) the shares of the Common Stock held in each
Participant's Deferred Stock Account shall be deemed to be issued and
outstanding as of the Change of Control; (ii) the Company shall forthwith
deliver to each Participant who has a Deferred Stock Account all of the shares
of the Common Stock or any other property held in such Participant's Deferred
Stock Account; and (iii) this Plan shall be terminated.

                  (d) For purposes of this Plan, Change of Control shall mean
any of the following events:

                           (i) The acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20 percent or more of either (1) the then outstanding shares of
the Common Stock of the Company (the "Outstanding Company Common Stock"), or (2)

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the combined voting power of then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the "Outstanding
Company Voting Securities"); provided, however, that the following acquisitions
shall not constitute a Change of Control (A) any acquisition directly from the
Company (excluding an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly
from the Company), (B) any acquisition by the Company, (C) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company or (D) any acquisition by
any corporation pursuant to a reorganization, merger or consolidation, if,
following such reorganization, merger or consolidation, the conditions described
in clauses (A), (B) and (C) of paragraph (iii) of this Paragraph 13(d) are
satisfied; or

                           (ii) Individuals who, as of the date hereof,
constitute the Board of the Company (as of the date hereof, "Incumbent Board")
cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company's stockholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

                           (iii) Approval by the stockholders of the Company of
a reorganization, merger, binding share exchange or consolidation, unless,
following such reorganization, merger, binding share exchange or consolidation
(1) more than 60 percent of, respectively, then outstanding shares of common
stock of the corporation resulting from such reorganization, merger, binding
share exchange or consolidation and the combined voting power of then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such reorganization, merger,
binding share exchange or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, binding share
exchange or consolidation, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (2) no Person
(excluding the Company, any employee benefit plan (or related trust) of the
Company or such corporation resulting from such reorganization, merger, binding
share exchange or consolidation and any Person beneficially owning, immediately
prior to such reorganization, merger, binding share exchange or consolidation,
directly or indirectly, 20 percent or more of the Outstanding Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns, directly or indirectly, 20 percent or more of, respectively, then
outstanding shares of common stock of the corporation resulting from such
reorganization, merger, binding share exchange or consolidation or the combined
voting power of then outstanding voting securities of such corporation entitled
to vote generally in the election of directors, and (3) at least a majority of
the members of the board of directors of the corporation resulting from such
reorganization, merger, binding share exchange or consolidation were members of
the Incumbent Board at the time of the execution of the initial agreement
providing for such reorganization, merger, binding share exchange or
consolidation; or

                           (iv) Approval by the stockholders of the Company of
(1) a complete liquidation or dissolution of the Company, or (2) the sale or
other disposition of all or substantially all of the assets of the Company,
other than to a corporation, with respect to which following such sale or other
disposition, (A) more than 60 percent of, respectively, then outstanding shares
of common stock of such corporation and the combined voting power of then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such
sale or other disposition, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (B) no Person
(excluding the Company and any employee benefit plan (or related trust) of the
Company or such corporation and any Person beneficially owning, immediately
prior to such sale or other disposition, directly or indirectly, 20 percent or
more of the Outstanding Company Common Stock or Outstanding Company Voting
Securities, as the case may be) beneficially owns, directly or indirectly, 20
percent or more of, respectively, then outstanding shares of common stock of
such corporation and the combined voting power of then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors, and (3) at least a majority of the members of the board of directors
of such corporation were members of the Incumbent Board at the time of the
execution of the initial agreement or action of the Board providing for such
sale or other disposition of assets of the Company.

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         14. ADMINISTRATION; AMENDMENT AND TERMINATION.

                  (a) This Plan shall be administered by a committee consisting
of two members who shall be the current directors of the Company or senior
executive officers or other directors who are not Participants as may be
designated by the Chief Executive Officer (the "Committee"), which shall have
full authority to construe and interpret this Plan, to establish, amend and
rescind rules and regulations relating to this Plan, and to take all such
actions and make all such determinations in connection with this Plan as it may
deem necessary or desirable.

                  (b) The Board may from time to time make such amendments to
this Plan, including to preserve or come within any exemption from liability
under Section 16(b) of the Exchange Act, as it may deem proper and in the best
interest of the Company without further approval of the Company's stockholders,
provided that, to the extent required under Delaware law or to qualify
transactions under this Plan for exemption under Rule 16b-3 promulgated under
the Exchange Act, no amendment to this Plan shall be adopted without further
approval of the Company's stockholders and, provided, further, that if and to
the extent required for this Plan to comply with Rule 16b-3 promulgated under
the Exchange Act, no amendment to this Plan shall be made more than once in any
six month period that would change the amount, price or timing of the grants of
the Common Stock hereunder other than to comport with changes in the Code, the
Employee Retirement Income Security Act of 1974, as amended, or the regulations
thereunder. The Board may terminate this Plan at any time by a vote of a
majority of the members thereof.

         15. 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.

         16. 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 October 31, 2003. No Stock Options or Awards may be granted
under this Plan after October 31, 2013.

         17. 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 agreement is entered into. Such securities shall not be
counted in determining whether such approval is obtained.

         18. GOVERNING LAW. This Plan and all actions taken thereunder shall be
governed by, and construed in accordance with, the laws of the State of
Delaware.

         19. INFORMATION TO SHAREHOLDERS. The Company shall furnish to each of
its stockholders financial statements of the Company at least annually.

         20. MISCELLANEOUS.

                  (a) Nothing in this Plan shall be deemed to create any
obligation on the part of the Board to nominate any Director for reelection by
the Company's stockholders or to limit the rights of the stockholders to remove
any Director.

                  (b) The Company shall have the right to require, prior to the
issuance or delivery of any shares of the Common Stock pursuant to this Plan,
that a Participant make arrangements satisfactory to the Committee for the
withholding of any taxes required by law to be withheld with respect to the

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issuance or delivery of such shares, including, without limitation, by the
withholding of shares that would otherwise be so issued or delivered, by
withholding from any other payment due to the Participant, or by a cash payment
to the Company by the Participant.

         IN WITNESS WHEREOF, this Plan has been executed effective as of October
31, 2003.

                                             SUB SURFACE WASTE MANAGEMENT OF
                                             DELAWARE, INC.

                                             By /S/ BRUCE S. BEATTIE
                                                --------------------------------
                                                Bruce S. Beattie, President

                                       7<PAGE>

                                                                   EXHIBIT 10.1

                                MICROISLET, INC.
                              A NEVADA CORPORATION

                  AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT

         THIS AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT (this
"Agreement") dated as of October 31, 2003 is entered into between MicroIslet,
Inc., a Nevada corporation (the "Company"), and the purchasers identified on the
signature pages hereto (each, a "Purchaser" and collectively, the "Purchasers").

         1. PURCHASE. Subject to the terms and conditions of this Agreement,
each Purchaser hereby agrees, severally and not jointly, to purchase and the
Company hereby agrees to sell and issue the number of shares of Common Stock of
the Company (the "Shares") at Fifty Cents ($0.50) per Share, represented by the
purchase price indicated below such Purchaser's name on the signature page of
this Agreement (the "Purchase Price"). In addition, each Purchaser shall be
granted a warrant, in the form attached hereto as EXHIBIT A (the "Warrant"), to
purchase a number of shares (the "Warrant Shares") of the Common Stock of the
Company equal to Forty Percent (40%) of the Shares purchased by such Purchaser,
at an exercise price of One Dollar ($1.00) per share, exercisable until the
third anniversary of the Initial Closing (as defined below). The Shares, the
Warrants and the Warrant Shares are collectively referred to herein as the
"Securities".

         2. CLOSING.

                  (a) The initial closing of the sale and purchase of the
Securities under this Agreement (the "Initial Closing") shall take place on
October 31, 2003, at the offices of Procopio, Cory, Hargreaves & Savitch LLP,
530 B Street, San Diego California, or at such other time and place as the
parties may agree.

                  (b) At any time on or before the tenth (10th) day following
the Initial Closing, the Company may sell up to an aggregate of Three Million
(3,000,000) Shares and associated Warrants, inclusive of Shares sold at the
Initial Closing. All such sales shall be made at one or more closings (each of
the Initial Closing and such subsequent closings, a "Closing") on the terms and
conditions set forth in this Agreement, including, without limitation, the
representations and warranties by such Purchasers as set forth in Section 6. Any
Shares, Warrants and Warrant Shares sold pursuant to this Section 2(b) shall be
deemed to be Shares, Warrants and Warrant Shares for all purposes under this
Agreement, and any purchasers thereof shall be deemed to be Purchasers for all
purposes under this Agreement.

         3. DELIVERIES. Subject to the terms and conditions hereof, the Company
will deliver to each Purchaser a certificate representing the number of Shares
to be purchased and the Warrant, and each Purchaser will deliver to the Company

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payment of the Purchase Price in immediately available funds to a bank account
to be designated by the Company.

         4. INFORMATION. Each Purchaser has been furnished with and has been
given the opportunity to review all information regarding the Company which it
has requested and which it deemed necessary for an investment in the Company.
Without limiting the generality of the foregoing, each Purchaser has been given
access to and has reviewed the Company's Registration Statement on Form SB-2
filed with the Securities Exchange Commission (the "SEC") on September 26, 2003
(the "Form SB-2"). Each Purchaser represents that it is aware that all of the
Company's material public filings with the SEC since November 14, 2001 are
available via the Internet through the web site maintained by the SEC at
www.sec.gov. Each Purchaser understands that: (i) the Form SB-2 and the
prospectus therein do not apply to the offer or sale of the Securities, and are
provided for information only, (ii) no federal or state agency has passed upon
the Securities or has made any finding or determination concerning the fairness
or value of the Securities, and (iii) the books and records of the Company are
and will continue to be available for inspection by such Purchaser, and any
purchaser representative of such Purchaser, at the Company's address listed
above.

         5. ILLIQUIDITY OF INVESTMENT; SECURITIES LAWS. Each Purchaser
understands that the Securities are not a liquid investment. In particular, each
Purchaser understands and acknowledges that:

                  (a) The offering and proposed sale of Securities herein have
         not been registered or qualified under the Securities Act of 1933, as
         amended (the "Act") nor under the securities laws of California or any
         other state. This offering has not been reviewed by the SEC nor has the
         SEC or any state securities commission or regulatory authority
         approved, passed upon or endorsed the merits of this offering. The
         offering and proposed sale of the Securities herein is being made in
         reliance upon certain securities exemptions, including (i) SEC
         Regulation D, Rule 506, promulgated under Section 4(2) of the Act, and
         (ii) the exemption set forth in Section 25102(f) of the California
         Corporate Securities Law of 1968, as amended, and the regulations
         promulgated thereunder.

                  (b) It is believed that the offering and proposed sale of the
         Securities currently qualifies and will continue to qualify under each
         such claimed exemption. Because the availability of these exemptions is
         based upon subjective factors, however, and because the criteria for
         exemption are subject to interpretation by state or federal regulatory
         agencies and courts, there is no assurance that such exemptions will be
         available. If and to the extent that suits for rescission are brought
         for failure to register this offering or for acts or omissions
         constituting offenses under the Act or the securities laws of any
         state, the capital and financial condition of the Company could be
         adversely affected. In addition, the Company could be adversely
         affected by the need to defend any such private or governmental action
         even where the Company ultimately is exonerated.

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                  (c) Except as set forth in Section 10 below, the Purchasers
         will have no right to require registration of the Securities offered
         and sold hereby under the Act.

                  (d) Each Purchaser's right to transfer the Securities offered
         and sold hereby will be restricted. These restrictions will require a
         Purchaser to hold the Securities indefinitely, unless the Securities
         are subsequently registered under the Act and qualified or registered
         under other applicable state laws, or unless an exemption from such
         qualification or registration is available and confirmed by an opinion
         of counsel acceptable to the Company. After periods of time described
         below, there may, but will not necessarily, be an exemption available
         under Section 4(1) of the Act in accordance with SEC Rule 144. As of
         the date of Agreement, Rule 144 allows for limited sales of restricted
         securities pursuant to Section 4(1) of the Act after the securities
         have been held for one year, provided certain conditions are satisfied,
         including availability of public information about the issuer,
         restrictions on the amount of securities sold within a three month
         period, restrictions on the manner of sale, and the filing of a notice
         with the SEC. Rule 144 currently provides that the foregoing
         restrictions do not apply to a person who has held securities for two
         years and who not been an "affiliate" of the issuer during the three
         months preceding the sale. The term "affiliate" is defined in Rule 144
         as a person who directly or indirectly controls, is controlled by or is
         under common control with the issuer. Executive officers, directors and
         persons who directly or indirectly own or control over 10% of the stock
         of an issuer are often deemed to be affiliates. The Company is under no
         obligation to take steps to ensure the availability of Rule 144, and
         the Purchasers should not assume that the Securities may be resold at
         any particular time in the future.

         6. REPRESENTATIONS AND WARRANTIES. Each Purchaser hereby represents and
warrants, for itself and not for other Purchasers, as follows:

                  (a) All documents, records, and books pertaining to the
         investment in the Company and its proposed business, including without
         limitation the Form SB-2, have been made available to such Purchaser
         for review.

                  (b) Such Purchaser, or the representatives or advisors of such
         Purchaser, have had the opportunity to ask questions of and receive
         answers from the officers of the Company, or persons acting on its
         behalf, concerning the terms and conditions of this investment, and all
         such questions have been answered to the full satisfaction of such
         Purchaser or the representatives or advisors of such Purchaser.

                  (c) Such Purchaser has not been presented with or solicited by
         any leaflet, public promotional meeting, circular, newspaper or
         magazine article, radio, television or internet advertisement, or any
         other form of advertising concerning the Securities or the Company.

                                       3

<PAGE>

                  (d) Such Purchaser has received no representations or
         warranties from the Company, or from any directors, officers, agents,
         or employees of the Company, and in purchasing the Securities, such
         Purchaser is relying solely on the investigations made by it.

                  (e) Such Purchaser acknowledges that neither the SEC nor any
         other state or federal agency has made any determination as to the
         merits of purchasing the Securities or as to the value of the
         Securities, and that the purchase of the Securities involves a high
         degree of risk.

                  (f) Such Purchaser is acquiring the Securities for investment
         and for such Purchaser's own account or in the capacity set forth on
         the signature page hereof, and not with a view to any distribution
         thereof.

                  (g) Such Purchaser understands that the Securities must be
         held indefinitely unless subsequently registered under the Act and
         qualified or registered under other applicable state laws or unless an
         exemption from such qualification or registration is available. Such
         Purchaser agrees that a notation of these restrictions shall be placed
         upon the Securities and in the appropriate records of the Company. Such
         Purchaser understands that except as set forth in Section 10, the
         Company has made no commitment to take actions to register the
         Securities or to make available the safe harbor of SEC Rule 144.

                  (h) Such Purchaser understands the risks and other
         considerations related to the purchase by such Purchaser of the
         Securities, including without limitation the risk factors set forth in
         the Form SB-2 under the heading "Risk Factors," and such Purchaser has
         such knowledge and experience in financial and business matters that
         such Purchaser (alone or with the aid of the investment advisors of
         such Purchaser) is capable of evaluating the merits and risks of
         purchasing the Securities.

                  (i) Such Purchaser has consulted with and relied entirely on
         such Purchaser's business, financial, and tax advisors in purchasing
         the Securities and in evaluating the merits and risks of an investment
         in the Company.

                  (j) Such Purchaser is an accredited investor as that term is
         defined under Regulation D promulgated under the Act, and has provided
         true and correct information on the Accredited Investor Questionnaire
         attached hereto as Exhibit B (the "Accredited Investor Questionnaire").

                                       4

<PAGE>

                  (k) Such Purchaser is able to bear the economic risk of an
         investment in the Company, has the ability to hold the Securities
         indefinitely, such Purchaser's overall commitment to investments which
         are not readily marketable (such as the Securities) is not
         disproportionate to its net worth, and such Purchaser has the financial
         ability to suffer a complete loss of its investment in the Securities.

                  (l) Such Purchaser has all requisite power, authority and
         capacity to purchase and hold the Securities and to execute, deliver
         and comply with the terms of this Agreement, and such execution,
         delivery and compliance do not conflict with or constitute a default
         under any instruments governing such Purchaser, any law, regulation, or
         order, or any agreement to which such Purchaser is a party or by which
         such Purchaser may be bound.

                  (m) Such Purchaser understands the meaning and legal
         consequences of the representations, warranties, covenants and other
         agreements contained in this Agreement, and understands that the
         Company has relied upon such representations, warranties, covenants and
         agreements, including those with respect to compliance with applicable
         securities laws, rules and regulations, and such Purchaser hereby
         agrees to indemnify and hold harmless the Company and its respective
         directors, officers, agents, attorneys and employees, from and against
         any and all loss, damage or liability, together with all costs and
         expenses (including attorneys' fees and disbursements), which any of
         them may incur by reason of any breach of the representations,
         warranties, covenants or agreements of such Purchaser contained in this
         Agreement. All representations, warranties and covenants contained in
         this Agreement, and the indemnification contained in this Section,
         shall survive the acceptance of this Agreement.

                  (n) Such Purchaser understands that the Company will require
         substantially more capital than the amount raised in this offering in
         order to complete the steps necessary to bring any products to market
         and generate revenues. Such Purchaser acknowledges that these matters
         are discussed in more detail in the Form SB-2 under the heading "Plan
         of Operation." Such Purchaser understands that any additional capital
         raised by the Company may be on terms similar to or different from the
         terms of this Agreement, and such terms may be more or less favorable
         to investors than the terms of this Agreement.

                  (o) If the Purchaser is an entity, such Purchaser represents
         that it was not formed for the sole purpose of making an investment in
         the Securities.

                                       5

<PAGE>

         EACH PURCHASER HEREBY SWEARS AND AFFIRMS THAT THE REPRESENTATIONS AND
STATEMENTS OF SUCH PURCHASER CONTAINED HEREIN ARE TRUE AND ACCURATE.

         7. CONDITIONS TO CLOSING.

                  (a) The obligation of each Purchaser to purchase the
Securities is subject to the satisfaction, on or prior to the respective
Closing, of the following conditions:

                           (i) The Company shall have performed all obligations
and conditions herein required to be performed or
observed by it on or prior to the Closing;

                           (ii) The Company shall have obtained any and all
consents, permits and waivers necessary or appropriate for consummation of the
transactions contemplated by this Agreement (except for such as may be properly
obtained subsequent to the Closing); and

                           (iii) The Warrant shall have been executed and
delivered by the Company.

                  (b) The obligation of the Company to sell the Securities is
subject to the satisfaction, on or prior to the Closing, of the following
conditions:

                           (i) The representations and warranties of such
Purchaser contained in Section 6, shall be true on and as of the Closing with
the same effect as though such representations and warranties have been made on
and as of the Closing; and such Purchaser shall have performed and complied with
all agreements and conditions herein required to be performed or complied with
by such Purchaser on or before the Closing;

                           (ii) Such Purchaser shall have completed the
Accredited Investor Questionnaire, and the responses thereto shall be
satisfactory to the Company;

                           (iii) Such Purchaser shall have obtained any and all
consents, permits and waivers necessary or appropriate for consummation of the
transactions contemplated by this Agreement (except for such as may be properly
obtained subsequent to the Closing);

                           (iv) Such Purchaser shall have paid the Purchase
Price.

         8. USE OF PROCEEDS. The proceeds from the transactions contemplated by
the Agreement will be used for working capital.

                                       6

<PAGE>

         9. BROKER'S FEES. The Company has agreed to pay a placement fee to
World Link Asset Management in the amount of seven percent (7%) of the gross
proceeds received under this Agreement by Purchasers introduced to the Company
by World Link Asset Management. In addition, the Company has agreed to issue to
World Link Asset Management a warrant to purchase a number of shares equal to
six percent (6%) of the number of Shares sold under this Agreement to Purchasers
introduced to the Company by World Link Asset Management. Such warrant will have
an exercise price of One Dollar ($1.00), and will be exercisable for three years
following the Initial Closing. Except as set forth above, each party hereto
represents and warrants that no agent, broker, investment banker, person or firm
acting on behalf of or under the authority of such party hereto is or will be
entitled to any broker's or finder's fee or any other commission directly or
indirectly in connection with the transactions contemplated herein. Each party
hereto further agrees to indemnify each other party for any claims, losses or
expenses incurred by such other party as a result of the representation in this
Section 9 being untrue.

         10. REGISTRATION RIGHTS.

                  (a) Within forty (40) days after the Initial Closing, the
Company shall use commercially reasonable efforts to file a Registration
Statement under the Act (the "Registration Statement") with the SEC covering the
registration of the Shares and the Warrant Shares. In the event the Registration
Statement is not filed within such forty (40) day period, the Company shall
issue to each Purchaser a number of additional shares of the Company's common
stock equal to thirty-three thousandths of one percent (0.033%) of the number of
the Shares purchased by such Purchaser, for each day after such forty (40) day
period prior to the date of filing of the Registration Statement. The Company
shall issue each Purchaser such additional shares, rounded to the nearest whole
share, immediately prior to the filing of the Registration Statement.

                  (b) The provisions of this Section 10 shall be the sole and
exclusive remedy of the Purchasers for the Company's failure to file the
Registration Statement within the time frames set forth above, or otherwise with
respect to the registration of the Shares and the Warrant Shares.

                  (c) The Company may require each Purchaser to furnish to the
Company a certified statement as to the number of Shares beneficially owned by
such Purchaser, the natural person or persons who has or have voting and
dispositive control over the Shares held by such Purchaser, and such other
information as the Company shall reasonably require, within three business days
of the Company's request. During any periods that the Company is unable to meet
its obligations hereunder with respect to the registration of the Shares because
any Purchaser has failed to furnish such information within three business days
of the Company's request, any additional shares to be issued in accordance with
paragraph (a) above that are accruing at such time shall be tolled and the
obligation to issue such shares shall be suspended, until such information is
delivered to the Company.

                                       7

<PAGE>

         11. SUBSEQUENT PLACEMENTS.

                  (a) Prior to the date which is ninety (90) days after the
Initial Closing, the Company will not, directly or indirectly, sell, grant any
option to purchase, or otherwise dispose of (or announce any sale, grant or any
option to purchase or other disposition of any of Common Stock or Common Stock
Equivalents (as defined below) pursuant to a private placement (such offer,
sale, grant, disposition or announcement being referred to as "Subsequent
Placement"), unless the Company delivers to each Purchaser a written notice (the
"Subsequent Placement Notice") of its intention to effect such Subsequent
Placement, which specifies in reasonable detail all of the material terms of
such Subsequent Placement, the amount of proceeds intended to be raised
thereunder, the names of the investors (including the investment manager of such
investors, if any) and the investment bankers with whom such Subsequent
Placement is proposed to be effected, and attached to which shall be a term
sheet or similar document. If a Purchaser wises to participate in the Subsequent
Placement, it must notify the Company by 6:30 p.m. (New York City time) on the
third business day after delivery of the Subsequent Placement Notice of its
willingness to provide a stated investment amount, subject to completion of
mutually acceptable documentation, up to fifty percent (50%) of such financing
to the Company on the same terms set forth in the Subsequent Placement Notice.
The Company may consummate the remaining portion of such Subsequent Placement on
the terms and to the persons set forth in the Subsequent Placement Notice. The
Company shall provide each Purchaser with a second Subsequent Placement Notice
and each Purchaser will again have the right of first refusal set forth in this
Section 11(a), if the Subsequent Placement subject to the initial Subsequent
Placement Notice is not consummated for any reason on the terms set forth in
such Subsequent Notice within sixty (60) days after the date of the initial
Subsequent Placement Notice with the person(s) identified in the Subsequent
Placement Notice. If the Purchasers indicate in the aggregate a willingness to
provide financing in excess of fifty percent (50%) of the amount set forth in
the Subsequent Placement Notice, then each participating Purchaser will be
entitled to provide financing pursuant to such Subsequent Placement Notice up to
an amount equal to such Purchaser's Pro Rata Portion (as defined below) of the
Common Stock or Common Stock Equivalents to be issued in such Subsequent
Placement. "Pro Rata Portion" is the ratio of (x) fifty percent (50%) of such
Purchaser's Purchase Price and (y) the sum of the Purchase Prices paid by
Purchasers providing financing pursuant to the Subsequent Placement Notice.

                  (b) The Company's obligations under Section 11(a) shall not
apply to any grant or issuance by the Company of any of the following: (i) the
sale of Securities pursuant to this Agreement; (ii) the issuance of securities
upon the exercise or conversion of any Common Stock Equivalents or any other
debt instrument, or the issuance of securities due to the effect of any
anti-dilution or repricing provisions contained in securities, issued by the
Company prior to the date of this Agreement (or to any amendments or
modifications thereof), (iii) the grant of options or warrants, or the issuance
of additional securities, under any duly authorized Company stock option,
restricted stock plan or stock purchase plan, including any inducement grant to
a new executive officer or director, (iv) the issuance of Common Stock or Common
Stock Equivalents pursuant to a Strategic Transaction or (v) the issuance of
securities to Fusion Capital Fund II pursuant to the Common Stock Purchase
Agreement dated April 1, 2003.

                                       8

<PAGE>

                  (c) The term "Strategic Transaction" means a transaction or
relationship in which the Company issues shares of Common Stock or Common Stock
Equivalents (i) to a person which is, itself or through its subsidiaries, an
operating company in a business synergistic with the business of the Company and
in which the Company receives benefits in addition to the investment of funds,
but shall not include a transaction in which the Company is issuing securities
primarily for the purpose of raising working capital or to an entity whose
primary business is investing in securities, or (ii) to a person in connection
with any equipment lease or other asset-based lending transaction approved by
the Company's Board of Directors in accordance with reasonable business
practices.

                  (d) The term "Common Stock Equivalents" means any securities
of the Company which entitle the holder thereof to acquire the Company's Common
Stock at any time, including without limitation, any debt, preferred stock,
rights, options, warrants or other instrument that is at any time convertible
into or exchangeable for, or otherwise entitles the holder thereof to receive,
the Company's Common Stock or other securities that entitle the holder to
receive, directly or indirectly, the Company's Common Stock.

         12. GOVERNING LAW. This Agreement is made in San Diego, California and
it shall be construed in accordance with and governed in all respects by the
laws of the State of California.

         13. SECURITIES LAWS. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), NOR HAVE THEY BEEN QUALIFIED
UNDER CALIFORNIA OR ANY OTHER STATE SECURITIES LAWS, RULES OR REGULATIONS, AND
MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER
THE ACT AND QUALIFICATION OR REGISTRATION UNDER OTHER APPLICABLE SECURITIES
LAWS, RULES, AND REGULATIONS, OR AN OPINION OF COUNSEL ACCEPTABLE TO THE
CORPORATION THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED.

         14. SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the
parties hereto.

         15. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

         16. ENTIRE AGREEMENT. This Agreement, the Accredited Investor
Questionnaire and the Warrant constitute the entire agreement among the parties
with respect to the subject matter hereof.

                                       9

<PAGE>

         17. AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended
or waived only with the written consent of the Company and Purchasers
representing a majority of the total Purchase Price under this Agreement, which
amendments or waivers will bind the Company and all Purchasers.

         18. NOTICES. Any notice required or authorized to be given hereunder or
any other communications between the parties provided for under the terms of
this Agreement shall be in writing and shall be served personally, or by
reputable express courier service, or by facsimile transmission addressed to the
relevant party at the address stated on the signature page hereto or at any
other address provided by that party to the other as its address for service.
Any notice so given personally shall be deemed to have been served on delivery,
any notice so given by express courier service shall be deemed to have been
served two (2) business days after the same shall have been delivered to the
relevant courier, and any notice so given by facsimile transmission shall be
deemed to have been received on dispatch. In proving such service, it shall be
sufficient to produce the receipt of a reputable courier company showing the
correct address of the addressee or prove that the facsimile transmission was
followed by an activity report showing the correct facsimile number of the party
on whom notice is served and the correct number of pages transmitted.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK -
                           SIGNATURE PAGES TO FOLLOW]

                                       10

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this AMENDED AND
RESTATED SECURITIES PURCHASE AGREEMENT as of the date first above written.

COMPANY:

MicroIslet, Inc., a
Nevada corporation

By: _______________________________________
Printed Name:______________________________
Its:_______________________________________

Address:  6370 Nancy Ridge Drive, Suite 112
          San Diego, CA 92121

       [AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT SIGNATURE PAGE]

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this SECURITIES PURCHASE
AGREEMENT as of the date first above written.

PURCHASER:

[_____________________________________]

By:
Printed Name:
Its:

Address:______________________________
        ______________________________

Telephone: ___________________________
Facsimile: ___________________________
E-mail: ______________________________

Purchase Price: $_____________________ in cash
                $_____________________ in cancellation of indebtedness
         Total: $_____________________

       [AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT SIGNATURE PAGE]

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