Document:

Exhibit
        10.5

       

    

    COMMERCIAL
      LEASE AGREEMENT

    

    THIS
      LEASE, made this 6th day
      of
      June 2006, by and between:

    

    Morlake
      Executive Suites and/or Assigns

    ("Landlord")
      whose address is

    114
      Morlake Drive, Suite 102, Mooresville, NC 28117

    

    And

    

    EnviroSystems,
      Inc.

    ("Tenant")
      whose address is

    1900
      Wyatt Drive, Suite 15, Santa Clara, CA 95054

    

    WITNESSETH:

    

    PREMISES

    1.
      Landlord, for and in consideration of the rents, covenants, agreements, and
      stipulations hereinafter mentioned, provided for and covenanted to be paid,
      kept
      and performed by Tenant, leases and rents unto Tenant, and Tenant hereby leases
      and takes upon the terms and conditions which hereinafter appear, the following
      described property (hereinafter called the Premises), to wit:

     

    Address:

    116
      Morlake Drive, Suite 201 and 203, Mooresville, NC 28117

    

    Legal
      Description:

    116
      Morlake Drive, Suite 201 and 203, Mooresville, NC 28117

    (See
      attached Exhibit A for legal description of premises and detail of approved
      build-out)

    

    TERM

    2. The
      Tenant shall have and hold the Premises for a term of 2 years beginning on
      the
      15th
      day of
      August 2006,
      and
      ending on the 31st
      day of
      July 2008 at midnight, unless sooner terminated as hereinafter provided. The
      first Lease Year Anniversary shall be the date twelve (12) calendar months
      after
      the first day of the first full month of the term hereof and successive Lease
      Year Anniversaries shall be the date twelve (12) calendar months from the
      previous Lease Year Anniversary.

    

    At
      the
      end of the initial term, Tenant shall have an option for an additional 2 year
      term.

    

    RENTAL

    3.
      Tenant
      agrees to pay Landlord or its Agent without demand, deduction or set off, an
      annual rental of $78,000 payable in equal monthly installments of $6,500 in
      advance on the first day of each calendar month during the term hereof. Upon
      execution of this Lease, Tenant shall pay to Landlord the first month's rent
      due
      hereunder. Occupancy for any period rental during the term hereof which is
      less
      than one month shall be the pro-rated portion of the monthly rental due. Should
      the Tenant choose to exercise their option for an additional 2-year term the
      annual rent for that term shall be $62,400, payable in equal monthly
      installments of $5,200. 

    

    LATE
      CHARGES 

    4. If
      Landlord fails to receive any rent payment within 10 days after it becomes
      due,
      Tenant shall pay Landlord, as additional rental, a late charge equal to. Five
      (5%) of the overdue amount or $325, whichever is greater, plus any actual bank
      fees incurred far returned or dishonored checks. The parties agree that such
      a
      late charge represents a fair and reasonable estimate of the cast Landlord
      will
      incur by reason of such late payment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECURITY
      DEPOSIT

    5. Tenant
      shall deposit with Landlord or its Agent upon execution of this Lease $0 as
      a
      security deposit which shall be held as security far the full and faithful
      performance by Tenant of each and every term, covenant and condition of this
      Lease. If any of the rents or other charges or sums payable by Tenant shall
      be
      over-due and unpaid or should payments be made or behalf Tenant, or should
      Tenant fail to perform any of the terms of this Lease, then Landlord or its
      Agent may, at its option, appropriate and apply the security deposit, or so
      much
      thereof as may be necessary, to compensate toward the payment of the rents,
      charges or other sums due from Tenant, or towards any lass, damage or expense
      sustained by Landlord resulting from such default an the part of the Tenant;
      and
      in such event Tenant shall up an demand restore the security deposit to the
      original sum deposited. In the event Tenant furnishes Landlord with proof that
      all utility bills have been paid through the date of Lease termination, and
      performs all of Tenant's other obligations under this Lease, the security
      deposit shall be returned in full to Tenant within thirty (30) days after the
      date of the expiration or sooner termination of the term of this Lease and
      the
      surrender of the Premises by Tenant in compliance with the provisions of this
      Lease. The Security Deposit may be placed in an interest bearing account and
      any
      interest thereon shall be the property of the party holding the
      same.

    

    UTILITY
      BILLS

    
      	6.	
              (a)
                Tenant shall pay the fallowing utilities: Electrical, Phone,
                Internet

              (b)
                Landlord shall pay the following utilities: All other CAM
                charges

            

    

    Responsibility
      to pay for a utility service shall include all metering, hook-up fees or other
      miscellaneous charges associated with the installation and maintenance of such
      utility in said party's name.

    

    COMMON
      AREA COSTS; RULES AND REGULATIONS

    7.
      The
      Rules and Regulations, if any, attached hereto are made a part of this Lease.
      Tenant agrees to perform and abide by these Rules and Regulations, if any,
      and
      such other Rules and Regulations, if any, as may be made from time to time
      by
      Landlord.

    

    USE
      OF
      PREMISES

    8.
      The,
      Premises shall be used far Office Space purposes only and no other. The Premises
      shall not be used far any illegal purposes, nor in any manner to create any
      nuisance or trespass, nor in any manner to vitiate the insurance or increase
      the
      rate of insurance on the Premises. In the event Tenant's use of the Premises
      results in an increase in the rate of insurance on the Premises, Tenant shall
      pay to Landlord, upon demand and as additional rental, the amount of any such
      increase.

    

    INDEMNITY;
      INSURANCE 

    9.
      Tenant
      agrees to and hereby does indemnify and save Landlord harmless against all
      claims for damages to persons or property by reason of Tenant's use or occupancy
      of the Premises, and all expenses incurred by Landlord because, thereof,
      including attorney's fees and court costs. Supplementing the foregoing and
      in
      addition thereto, Tenant shall during the term of this Lease and any extension
      or renewal thereof, and at Tenant's expense, maintain in full force and effect
      comprehensive general liability insurance with limits of $500,000
      per person and $1,000,000 per accident, and property damage limits of $250,000
      which insurance shall contain a special endorsement recognizing and insuring
      any
      liability accruing to Tenant under the first sentence of this paragraph and
      naming Landlord as additional insured. Tenant shall provide evidence of such
      insurance to Landlord prior to the commencement of the term of this Lease.
      Landlord and Tenant each hereby release and relieve the other, and waive any
      right of recovery, for loss or damage arising out of or incident to the perils
      insured against which perils occur in, on or about the Premises, whether due
      to
      the negligence of Landlord or Tenant or their agents, employees, contractors
      and/or invitees, to the extent that such loss or damage is within the policy
      limits of said comprehensive general liability insurance. Landlord and Tenant
      shall, upon obtaining the policies of insurance required, give notice to the
      insurance carrier or carriers that the foregoing mutual waiver of subrogation
      is
      contained in this Lease.

     

    
      
         

      

      
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    REPAIRS
      BY LANDLORD

    10.
      Landlord agrees to keep in good repair the roof, foundation and exterior walls
      of the Premises (exclusive of all glass and exclusive of all exterior doors)
      and
      underground utility and sewer pipes outside the exterior walls of the building,
      except repairs rendered necessary by the negligence or intentional wrongful
      acts
      of Tenant, its agents, employees or invitees. If the Premises are part of a
      larger building or group of buildings, then to the extent that the grounds
      are
      common areas, Landlord shall maintain the grounds surrounding the building,
      including paving, the mowing of grass, care of shrubs and general landscaping.
      Tenant shall promptly report in writing to Landlord any defective condition
      known to it which Landlord is required to repair and failure to report such
      conditions shall make Tenant responsible to Landlord for any liability incurred
      by Landlord by reason of such conditions.

    

    REPAIRS
      BY TENANT

    11.
      Tenant accepts the Premises in their present condition and as suited for the
      uses intended by Tenant. Tenant shall, throughout the initial term of this
      Lease, and any extension or renewal thereof, at it’s expense, maintain in good
      order and repair the Premises, and other improvements located thereon, except
      those repairs expressly required to be made by Landlord hereunder. Tenant agrees
      to return the Premises to Landlord at the expiration or prior termination of
      this Lease, in as good condition and repair as when first received, natural
      wear
      and tear, damage by storm, fire, lightning, earthquake or other casualty alone
      excepted. Tenant, Tenant's employees, agents, contractors or subcontractors
      shall take no action which may void any manufacturers or installers warranty
      with relation to the Premises. Tenant shall indemnify and hold Landlord harmless
      from any liability, claim, demand or cause of action arising on account of
      Tenants breach of the provisions of this paragraph.

    

    ALTERATIONS

    12.
      Tenant shall not make any alterations, additions, or improvements to the
      Premises without Landlord's prior written consent. Tenant shall promptly remove
      any alterations, additions, or improvements constructed in violation of this
      Paragraph upon Landlord's written request. All approved alterations, additions,
      and improvements will be accomplished in a good 'and workmanlike manner, in
      conformity with all applicable laws and regulations, and by a contractor
      approved by Landlord, free of any liens or encumbrances. Landlord may require
      Tenant to remove any alterations, additions or improvements (whether or not
      made
      with Landlord's consent) at the termination of the Lease and to restore the
      Premises to its prior condition, all at Tenant's expense. All alterations,
      additions and improvements which Landlord has not required Tenant to remove
      shall become Landlord's property and shall be surrendered to Landlord upon
      the
      termination of this Lease, except that Tenant may remove any of Tenant's
      machinery or equipment which can be removed without material damage to the
      Premises. Tenant shall repair, at Tenant's expense, any damage to the Premises
      caused by the removal of any such machinery or equipment.

     

    REMOVAL
      OF FIXTURES 

    13.
      Tenant may (if not in default hereunder) prior to the expiration of this Lease,
      or any extension or renewal thereof, remove all fixtures and equipment which
      it
      has placed in the Premises, provided Tenant repairs all damage to the Premises
      caused by such removal.

    

    DESTRUCTION
      OF OR DAMAGE TO PREMISES

    14.
      If
      the Premises are totally destroyed by storm, fire, lightning, earthquake or
      other casualty, this Lease shall terminate as of the date of such destruction
      and rental shall be accounted for as between Landlord and Tenant as of that
      date. If the premises are damaged but not wholly destroyed by any such
      casualties, rental shall abate in such proportion as effective use of the
      Premises has been affected and Landlord shall restore Premises to substantially
      the same condition as before damage as speedily as is practicable, whereupon
      full rental shall recommence.

    

    GOVERNMENTAL
      ORDERS

    15.
      Tenant agrees, at its own expense, to comply promptly with all requirements
      of
      any legally constituted public authority made necessary by reason of Tenant's
      occupancy of the Premises. Landlord agrees to comply promptly with any such
      requirements if not made necessary by reason of Tenant's occupancy. It is
      mutually agreed, however, between Landlord and Tenant, that if in order to
      comply with such requirements, the cost to Landlord or Tenant, as the case
      may
      be, shall exceed a sum equal to one year's rent, then Landlord or Tenant,
      whichever is obligated to comply with such requirements, may terminate this
      Lease by giving written notice of termination to the other party by registered
      mail; which termination shall become effective sixty (60) days after receipt
      of
      such notice and which notice shall eliminate the necessity of compliance with
      such requirements by giving such notice unless the party giving such notice
      of
      termination shall, before termination becomes effective, pay to the party giving
      notice all cost of compliance in excess of one year's rent, or secure payment
      of
      said sum in manner satisfactory to the party giving notice.

     

    
      
         

      

      
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    CONDEMNATION

    16.
      If
      the whole of the Premises, or such portion thereof as will make the Premises
      unusable for the purposes herein leased, is condemned by any legally constituted
      authority for any public use or purpose, then in either of said events the
      term
      hereby granted shall cease from the date when possession thereof is taken by
      public authorities, and rental shall be accounted for as between Landlord and
      Tenant as of said date. Such termination, however, shall be without prejudice
      to
      the rights of either Landlord or Tenant to recover compensation and damage
      caused by condemnation from the contemnor. It is further understood and agreed
      that Tenant shall not have any rights in any award made to Landlord by any
      condemnation authority.

    

    ASSIGNMENT
      AND SUBLETTING

    17.
      Tenant shall not, without the prior written consent of Landlord, which shall
      not
      be unreasonably withheld, assign this Lease or any interest hereunder, or sublet
      the Premises or any part thereof, or permit the use of the Premises by any
      party
      other than the Tenant. Consent to any assignment or sublease shall not impair
      this provision and all later assignments or subleases shall be made likewise
      only on the prior written consent of Landlord. The Assignee of Tenant, at option
      of Landlord, shall become directly liable to Landlord for all obligations of
      Tenant hereunder, but no sublease or assignment by Tenant shall relieve Tenant
      of any liability hereunder. 

    

    EVENTS
      OF DEFAULT

    18.
      The
      happening of anyone or more of the following events (hereinafter anyone of
      which
      may be referred to as an. "Event of Default") during the term of this Lease,
      or
      any renewal or extension thereof, shall constitute a breach of this Lease on
      the
      part of the Tenant: (a) Tenant fails to pay the rental as provided for herein;
      (b) Tenant abandons or vacates the Premises; (c) Tenant fails to comply with
      or
      abide by
      and
      perform any other obligation imposed upon Tenant under this Lease; (d) Tenant
      is
      adjudicated bankrupt; (e) A permanent receiver is appointed for Tenant's
      property and such receiver is not removed within sixty (60) days after written
      notice from Landlord to Tenant to obtain such removal; (f) Tenant, either
      voluntarily or involuntarily, takes advantage of any debt or relief proceedings
      under any present or future law, whereby the rent or any part thereof is, or
      is
      proposed to be reduced or payment thereof deferred; (g) Tenant makes an
      assignment for benefit of creditors; or (h) Tenant's effects are levied upon
      or
      attached under process against Tenant, which is not satisfied or dissolved
      within thirty (30) days after written notice from Landlord to Tenant to obtain
      satisfaction thereof.

    

    REMEDIES
      UPON DEFAULT

    19.
      Upon
      the occurrence of Event of Default, Landlord may pursue anyone or more of the
      following remedies separately or concurrently, without prejudice to any other
      remedy herein provided or provided by law: (a) if the Event of Default involves
      nonpayment of rental and Tenant fails to cure such default within five (5)
      days
      after receipt of written notice thereof from Landlord, or if the Event of
      Default involves a default in performing any of the terms or provisions of
      this
      Lease other than the payment of rental and Tenant fails to cure such default
      within fifteen (15) days after receipt of written notice of default from
      Landlord, Landlord may terminate this Lease by giving written notice to Tenant
      and upon such termination shall be entitled to recover from Tenant damages
      as
      may be permitted under applicable law; or (b) if the Event of Default involves
      any matter other than those set forth in item (a) of this paragraph, Landlord
      may terminate this Lease by giving written notice to Tenant and, upon such
      termination, shall be entitled to recover from the Tenant damages in an amount
      equal to all rental which is due and all rental which would otherwise have
      become due throughout the remaining term of this Lease, or any renewal or
      extension thereof (as if this Lease had not been terminated); or (c) upon any
      Event of Default, Landlord, as Tenant's agent, without terminating this Lease;
      may enter upon and rent the Premises, in whole or in part, at the best price
      obtainable by reasonable effort, without advertisement and by private
      negotiations and for any term Landlord deems proper, with Tenant being liable
      to
      Landlord for the deficiency, if any, between Tenant's rent hereunder and the
      price obtained by Landlord on new rental, provided however, that Landlord shall
      not be considered to be under any duty by reason of this provision to take
      any
      action to mitigate damages by reason of Tenant's default. In the event Landlord
      hires an attorney to enforce its rights upon default, Tenant shall in addition
      be liable for reasonable attorney's fees and all costs of
      collection.

     

    
      
         

      

      
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    EXTERIOR
      SIGNS

    20.
      Tenant shall place no signs upon the outside walls or roof of the Premises,
      except with the express written consent of the Landlord. Any and all signs
      placed on the Premises by Tenant shall be maintained in compliance with
      governmental rules and regulations governing such signs and Tenant shall be
      responsible to Landlord for any damage caused by installation, use or
      maintenance of said signs, and all damage incidents to removal
      thereof.

    . 

    LANDLORD'S
      ENTRY OF PREMISES .

    21.
      Landlord may advertise the Premises "For Rent" or "For Sale" 60
      days and
      less before the termination of this Lease. Landlord may enter the Premises
      at
      reasonable hours, with reasonable advance notice, to exhibit same to prospective
      purchasers or tenants and to make repairs required of Landlord under the terms
      hereof or to make repairs to Landlord's adjoining property, if any.

    

    EFFECT
      OF TERMINATION OF LEASE

    22.
      No
      termination of this Lease prior to the normal ending thereof, by lapse of time
      or otherwise, shall affect Landlord's right to collect rent for the period
      prior
      to termination thereof.

    

    MORTGAGEE'S
      RIGHTS

    25.
      Tenant's rights shall be subject to any bona fide mortgage, deed of trust or
      other security interest which is now or may hereafter be placed upon the
      Premises by Landlord. Tenant shall, if requested by Landlord, execute a separate
      agreement reflecting such subordination, and shall be obligated to execute
      such
      documentation as may facilitate Landlord's sale or refinancing of the Premises,
      including, but not limited to, estoppel certificates, subordination or
      attornment agreements.

    

    QUIET
      ENJOYMENT 

    24.
      So
      long as Tenant observes and performs the covenants and agreements contained
      herein, it shall at all times during the Lease term peacefully and quietly
      have
      and enjoy possession of the Premises, but always subject to the terms hereof.
      Provided, however, that in the event Landlord shall sell or otherwise transfer
      its interest in the Premises, Tenant agrees to attorn to any new owner or
      interest holder and shall, if requested by Landlord, execute a separate
      agreement reflecting such attornment, provided that said agreement requires
      the
      new owner or interest holder to recognize its obligations and Tenant's rights
      hereunder.

    

    HOLDING
      OVER

    25.
      If
      Tenant remains in possession of the Premises after expiration of the term
      hereof, with Landlord's acquiescence and without any express agreement of the
      parties, Tenant shall be a tenant at will at the rental rate which is in effect
      at end of this Lease and there shall be no renewal of this Lease by operation
      of
      law. If Tenant remains in possession of the Premises after expiration of the
      term hereof without Landlord's acquiescence, Tenant shall be a tenant at
      sufferance and commencing on the date following the date of such expiration,
      the
      monthly rental payable under Paragraph 3 above shall for each month, or fraction
      thereof during which Tenant so remains in possession of the premises, be twice
      the monthly rental otherwise payable under Paragraph 3 above.

     

    
      
         

      

      
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    ATTORNEY'S
      FEES

    26.
      In
      the event that any action or proceeding is brought to enforce any term, covenant
      or condition of this Lease on the part of Landlord or Tenant, the prevailing
      party in such litigation shall be entitled to recover reasonable attorney's
      fees
      and costs.

    

    RIGHTS
      CUMULATIVE

    27.
      All
      rights, powers and privileges conferred hereunder upon parties hereto shall
      be
      cumulative and not restrictive of those given by law.

    

    WAIVER
      OF RIGHTS

    28.
      No
      failure of Landlord to exercise any power given Landlord hereunder or to insist
      upon strict compliance by Tenant of its obligations hereunder and no custom
      or
      practice of the parties at variance with the terms hereof shall constitute
      a
      waiver of Landlord's right to demand exact compliance with the terms
      hereof.

    

    ENVIRONMENTAL
      LAWS

    29.
       (a)
      Tenant shall not bring onto the Premises any Hazardous Materials (as defined
      below) without the prior written approval by Landlord. Any approval must be
      preceded by submission to Landlord of appropriate Material Safety Data Sheets
      (MSD Sheets). In the event of approval by Landlord, Tenant covenants that it
      will (1) comply with all requirements of any constituted public authority and
      all federal, state, and local codes, statutes, ordinances, rules and
      regulations, and laws, whether now in force or hereafter adopted relating to
      Tenant's use of the Premises, or relating to the storage, use, disposal,
      processing, distribution, shipping or sales of any hazardous, flammable, toxic,
      or dangerous materials, waste or substance, the presence of which is regulated
      by a federal, state, or local law, ruling, rule or regulation (hereafter
      collectively referred to as "Hazardous Materials"); (2) comply with any
      reasonable recommendations by the insurance carrier of either Landlord or Tenant
      relating to the use by Tenant on the Premises of such Hazardous Materials;
      (3)
      refrain from unlawfully disposing of or allowing the disposal of any Hazardous
      Materials upon, within, about or under the Premises; and (4) remove all
      Hazardous Materials from the Premises, either after their use by Tenant or
      upon
      the expiration or earlier termination of this lease, in compliance with all
      applicable laws. .

     

    (b)
      Tenant shall be responsible for obtaining all necessary permits in connection
      with it’s use, storage and disposal of Hazardous Materials, and shall develop
      and maintain, and where necessary file with the appropriate authorities all
      reports, receipts, manifests, filings, lists and invoices covering those
      Hazardous Materials and Tenant shall provide Landlord with copies of all such
      items upon request. Tenant shall provide within five (5) days after receipt
      thereof, copies of all notices, orders, claims or other correspondence from
      any
      federal, state or local government or agency alleging any violation of any
      environmental law or regulation by Tenant, or related in any manner to Hazardous
      Materials. In addition, Tenant shall provide Landlord with copies of all
      responses to such correspondence at the time of the response.

     

    (c)
      Tenant hereby indemnifies and holds harmless Landlord, its successors and
      assigns from and against any and all losses, liabilities, damages, injuries,
      penalties, fines, costs, expenses and claims of any and every kind whatsoever
      (including attorney's fees and costs, expenses or claims asserted or arising
      under the Comprehensive Environmental Response, Compensation and Liability
      Act
      of 1980, as amended, from time to time, and regulations promulgated hereunder,
      any so-called state or local "Superfund" or "Superlien" law, or
      any
      other
      federal, state or local statute, law or ordinance, code, rule, regulation,
      order
      or decree regulating, relating to, or imposing liability or standards of conduct
      concerning any Hazardous Materials) paid, incurred or suffered by, or asserted
      against, Landlord as a result of any: claim, demand or judicial or
      administrative action by any person or entity (including governmental or private
      entities) for, with respect to, or as a direct or indirect result, of, the
      presence on or under or the escape, seepage, leakage, spillage, discharge,
      emission or release from the Premises , of any Hazardous Materials caused by
      Tenant or Tenant's agents, employees, invitees or successors in interest. This
      indemnity shall also apply to any release of Hazardous Materials caused by
      a
      fire or other casualty to the premises if such Hazardous Materials were stored
      on the Premises by Tenant, its agents, employees, invitees or successors in
      interest.

     

    
      
         

      

      
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    (d)
      If
      Tenant fails to comply with the Covenants to be performed hereunder with respect
      to Hazardous Materials, or if an environmental protection lien is filed against
      the premises as a result of the actions of Tenant, its agents, employees or
      invitees, then the occurrence of any such events shall be considered a default
      hereunder.

     

    (e)
      Tenant will give Landlord prompt notice of any release of Hazardous Materials,
      reportable or non-reportable, to federal, state or local authorities, of any
      fire, or any damage occurring on or to the Premises.

     

    (f)
      Tenant will use and occupy the Premises and conduct its business in such a
      manner that the Premises are neat, clean and orderly at all times with all
      chemicals or Hazardous Materials marked for easy identification and stored
      according to all codes as outlined above.

     

    (g)
      The
      warranties and indemnities contained in this Paragraph shall survive the
      termination of this Lease.

    

    TIME
      OF ESSENCE

    30.
      Time
      is of the essence in this Lease.

    

    ABANDONMENT

    31.
      Tenant shall not abandon the Premises at any time during the Lease term. If
      Tenant shall abandon the premises or be dispossessed by process of law, any
      Personal Property belonging to Tenant and left on the Premises shall, at the
      option of Landlord, be deemed abandoned, and available to Landlord to use or
      sell to offset any rent due or any expenses incurred by removing same and
      restoring the Premises.

    

    DEFINITIONS

    32.
      "Landlord" as used in this Lease shall include the undersigned, its heirs,
      representatives, assigns and successors in title to the Premises. "Agent" as
      used in this Lease shall mean the party designated as same in Paragraph 34,
      its
      heirs, representatives, assigns and successors. "Tenant" shall include the
      undersigned and its heirs, representatives, assigns and successors, and if
      this
      Lease shall be validly assigned or sublet, shall include also Tenant's assignees
      or sub lessees as to the Premises covered by such assignment or sublease.
      "Landlord", "Tenant", and "Agent" include male and female, singular and plural,
      corporation, partnership or individual, as may fit the particular
      parties.

    

    NOTICES

    33.
      All
      notices required or permitted under this Lease shall be in writing and shall
      be
      personally delivered or sent by U.S. certified mail, return receipt requested
      postage prepaid. Notices to Tenant shall be delivered or sent to the address
      shown at the beginning of this Lease, except that upon Tenant taking possession
      of the Premises, then the Premises shall be Tenant's address for such purposes.
      Notices to Landlord shall be delivered or sent to the address shown at the
      beginning of this Lease and notices to Agent, if any, shall be delivered or
      sent
      to the address set forth in Paragraph 3 hereof.

     

    All
      notices shall be effective upon delivery. Any party may change its notice
      address upon written notice to' the other parties, given as provided
      herein.

    

    ENTIRE
      AGREEMENT

    34.
      This
      Lease contains the entire agreement of the parties hereto, and no
      representations, inducements, promises or, agreements, oral or otherwise,
      between the parties, not embodied herein shall be of any force or effect. This
      Lease may not be modified except by a writing signed by all the parties
      hereto. ' '

    

    AUTHORIZED
      LEASE EXECUTION

    35.
      Each
      individual executing this Lease as director, officer, partner, member, or agent
      of a corporation, limited liability company, or partnership represents and
      warrants that he is duly authorized to execute and deliver this Lease on behalf
      of such corporation, limited liability company, or partnership.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    

    TRANSFER
      OF LANDLORD'S INTEREST

    36.
      In
      the event of the sale, assignment or transfer by Landlord of its interest in
      the
      Premises or in this Lease (other than a collateral assignment to secure a debt
      of Landlord) to a successor in interest who expressly assumes the obligations
      of
      Landlord under this Lease, Landlord shall thereupon be released and discharged
      from all its covenants and obligations under this Lease, except those
      obligations that have accrued prior to such sale, assignment or transfer; and
      Tenant agrees to look solely to the successor in interest of Landlord for the
      performance of those covenant accruing after such sale, assignment or transfer.
      Landlord's assignment of this Lease, or of any or all of its rights in this
      Lease, shall not affect Tenant's obligations hereunder, and Tenant shall attorn
      and look to the assignee as Landlord, provided Tenant has first received written
      notice of the assignment of Landlord's interest. .

    

    SPECIAL
      STIPULATIONS

    37.
      Any
      special stipulations are set forth in the attached Exhibit B. Insofar as said
      Special Stipulations conflict with any of the foregoing provisions, said Special
      Stipulations shall control.

    

    MEMORANDUM
      OF LEASE -

    38.
      Upon
      request by either Landlord or Tenant, the parties hereto shall execute a short
      form lease (Memorandum of Lease) in recordable form, setting forth such
      provisions hereof (other than the amount of Base Monthly Rent and other sums
      due) as either party may wish to incorporate. The cost of recording such
      memorandum of lease shall be borne by the party requesting execution of
      same.

    

    THIS
      DOCUMENT IS A LEGAL DOCUMENT. EXECUTION OF THIS DOCUMENT HAS LEGAL CONSEQUENCES
      THAT COULD BE ENFORCEABLE IN A COURT OF LAW. THE NORTH CAROLINA ASSOCIATION
      OF
      REALTORS@ MAKES' NO REPRESENTATIONS CONCERNING THE LEGAL SUFFICIENCY, LEGAL
      EFFECT OR TAX CONSEQUENCES OF THIS DOCUMENT OR THE TRANSACTION TO WHICH IT
      RELATES AND RECOMMENDS THAT YOU CONSULT YOUR ATTORNEY.

    

    IN
      WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals,
      the
      date and years first above written.

    

    LANDLORD:

    

    

    Landlord
      /s/
      John
      Kindley                                                                            
(SEAL)

    Morlake
      Executive Suites and/or Assigns 

    By:
      John
      Kindley

    Member

    

    

    TENANT:

    

     

    Tenant
      /s/
      J.
      Lloyd
      Breedlove                                        6/6/06                   
      (SEAL)

    EnviroSystems,
      Inc.

    By:
      J.
      Lloyd Breedlove

    President,
      CEO and Chairman

     

    
      
         

      

      
        8TELECOMM
        SALES NETWORK, INC.

      

      2006
        STOCK INCENTIVE PLAN

      

      1. ESTABLISHMENT
        AND PURPOSE

      

      The
        Telecomm Sales Network, Inc. 2006 Stock Incentive Plan (the “Plan”) is
        established by Telecomm Sales Network, Inc. (the “Company”) to promote the
        financial interests of the Company, including its growth and performance,
        by
        encouraging persons eligible to participate in the Plan to acquire an ownership
        position in the Company, enhancing the ability of the Company and its
        subsidiaries to attract and retain persons eligible to participate in the
        Plan,
        providing persons eligible to participate in the Plan with a way to acquire
        or
        increase their proprietary interest in the Company's success, by motivating
        eligible persons to achieve the long-term Company goals, and by aligning
        eligible persons' interests with those of the Company's other stockholders.
        The
        Plan is adopted by the Board of Directors on January 10, 2006 and the Company’s
        stockholders as of ____________, 2006. Unless the Plan is discontinued earlier
        by the Board as provided herein, no Award shall be granted hereunder on or
        after
        the date 10 years after the Effective Date.

      

      In
        addition to terms elsewhere defined herein, certain terms used herein are
        defined as set forth in Section 10 hereof.

      

      2. ADMINISTRATION;
        ELIGIBILITY

      

      The
        Plan
        shall be administered by the Board of Directors of the Company. As used herein,
        the term “Administrator” means the Board or any of its Committees as shall be
        administering the Plan.

      

      At
        any
        time, the Board may appoint a Committee, consisting of not less than two
        of its
        members to administer the Plan on behalf of the Board in accordance with
        such
        terms and conditions not inconsistent with this Plan as the Board may prescribe.
        Once appointed, members of the Committee shall continue to serve until otherwise
        directed by the Board. From time to time the Board may increase the size
        of the
        Committee and appoint additional members, remove members (with or without
        cause)
        and appoint new members in their place, fill vacancies however caused, and/or
        remove all members of the Committee and thereafter directly administer the
        Plan.

      

      The
        Administrator shall have plenary authority to grant Awards pursuant to the
        terms
        of the Plan to Eligible Individuals. Participation shall be limited to such
        persons as are selected by the Administrator. Awards may be granted as
        alternatives to, in exchange or substitution for, or replacement of, awards
        outstanding under the Plan or any other plan or arrangement of the Company
        or a
        Subsidiary (including a plan or arrangement of a business or entity, all
        or a
        portion of which is acquired by the Company or a Subsidiary). The provisions
        of
        Awards need not be the same with respect to each Participant.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Among
        other things, the Administrator shall have the authority, subject to the
        terms
        of the Plan:

      

      (a) to
        select
        the Eligible Individuals to whom Awards may from time to time be
        granted;

      

      (b) to
        determine whether and to what extent Stock Options, Stock Appreciation Rights,
        Stock Awards or any combination thereof are to be granted
        hereunder;

      

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

      

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

      

      (e) to
        determine the terms and conditions, not inconsistent with the terms of this
        Plan, of any Award granted hereunder (including, but not limited to, the
        option
        price, any vesting restriction or limitation, any vesting acceleration or
        forfeiture waiver and any right of repurchase, right of first refusal or
        other
        transfer restriction regarding any Award and the shares of Stock relating
        thereto, based on such factors or criteria as the Administrator shall
        determine);

      

      (f) subject
        to Section 8(a), to modify, amend or adjust the terms and conditions of any
        Award, at any time or from time to time, including, but not limited to, with
        respect to (i) performance goals and targets applicable to performance-based
        Awards pursuant to the terms of the Plan and (ii) extension of the
        post-termination exercisability period of Stock Options;

      

      (g) to
        determine to what extent and under what circumstances Stock and other amounts
        payable with respect to an Award shall be deferred;

      

      (h) to
        determine the Fair Market Value; and

      

      (i) to
        determine the type and amount of consideration to be received by the Company
        for
        any Stock Award issued under Section 6.

      

      The
        Administrator shall have the authority to adopt, alter and repeal such
        administrative rules, guidelines and practices governing the Plan as it shall,
        from time to time, deem advisable, to interpret the terms and provisions
        of the
        Plan and any Award issued under the Plan (and any agreement relating thereto)
        and to otherwise supervise the administration of the Plan.

      

      Except
        to
        the extent prohibited by applicable law, the Administrator may allocate all
        or
        any portion of its responsibilities and powers to any one or more of its
        members
        and may delegate all or any portion of its responsibilities and powers to
        any
        other person or persons selected by it. Any such allocation or delegation
        may be
        revoked by the Administrator at any time. The Administrator may authorize
        any
        one or more of their members or any officer of the Company to execute and
        deliver documents on behalf of the Administrator.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      Any
        determination made by the Administrator or pursuant to delegated authority
        pursuant to the provisions of the Plan with respect to any Award shall be
        made
        in the sole discretion of the Administrator or such delegate at the time
        of the
        grant of the Award or, unless in contravention of any express term of the
        Plan,
        at any time thereafter. All decisions made by the Administrator or any
        appropriately delegated officer pursuant to the provisions of the Plan shall
        be
        final and binding on all persons, including the Company and
        Participants.

      

      No
        member
        of the Administrator, and no officer of the Company, shall be liable for
        any
        action taken or omitted to be taken by such individual or by any other member
        of
        the Administrator or officer of the Company in connection with the performance
        of duties under this Plan, except for such individual's own willful misconduct
        or as expressly provided by law.

      

      3. STOCK
        SUBJECT TO PLAN

      

      Subject
        to adjustment as provided in this Section 3, the aggregate number of shares
        of
        Stock which may be delivered under the Plan shall not exceed 2,400,000
        shares.

      

      To
        the
        extent any shares of Stock covered by an Award are not delivered to a
        Participant or beneficiary thereof because the Award expires, is forfeited,
        canceled or otherwise terminated, or the shares of Stock are not delivered
        because the Award is settled in cash or used to satisfy the applicable tax
        withholding obligation, such shares shall not be deemed to have been delivered
        for purposes of determining the maximum number of shares of Stock available
        for
        delivery under the Plan.

      

      Subject
        to adjustment as provided in this Section 3, the maximum number of shares
        that
        may be covered by Stock Options, Stock Appreciation Rights and Stock Awards,
        in
        the aggregate, granted to any one Participant during any calendar year shall
        be
        400,000 shares.

      

      In
        the
        event of any Company stock dividend, stock split, combination or exchange
        of
        shares, recapitalization or other change in the capital structure of the
        Company, corporate separation or division of the Company (including, but
        not
        limited to, a split-up, spin-off, split-off or distribution to Company
        stockholders other than a normal cash dividend), sale by the Company of all
        or a
        substantial portion of its assets (measured on either a stand-alone or
        consolidated basis), reorganization, rights offering, partial or complete
        liquidation, or any other corporate transaction, Company share offering or
        other
        event involving the Company and having an effect similar to any of the
        foregoing, the Administrator may make such substitution or adjustments in
        the
        (A) number and kind of shares that may be delivered under the Plan, (B)
        additional maximums imposed in the immediately preceding paragraph, (C) number
        and kind of shares subject to outstanding Awards, (D) exercise price of
        outstanding Stock Options and Stock Appreciation Rights and (E) other
        characteristics or terms of the Awards as it may determine appropriate in
        its
        sole discretion to equitably reflect such corporate transaction, share offering
        or other event; provided, however, that the number of shares subject to any
        Award shall always be a whole number.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      4. STOCK
        OPTIONS

      

      Stock
        Options may be granted alone or in addition to other Awards granted under
        the
        Plan and may be of two types: Incentive Stock Options and Non-Qualified Stock
        Options. Any Stock Option granted under the Plan shall be in such form as
        the
        Administrator may from time to time approve.

      

      The
        Administrator shall have the authority to grant Incentive Stock Options,
        Non-Qualified Stock Options or both types of Stock Options (in each case
        with or
        without Stock Appreciation Rights). Incentive Stock Options may be granted
        only
        to employees of the Company and its subsidiaries (within the meaning of Section
        424(f) of the Code). To the extent that any Stock Option is not designated
        as an
        Incentive Stock Option or, even if so designated, does not qualify as an
        Incentive Stock Option, it shall constitute a Non-Qualified Stock Option.
        Incentive Stock Options may be granted only within 10 years from the date
        the
        Plan is adopted, or the date the Plan is approved by the Company's stockholders,
        whichever is earlier.

      

      Stock
        Options shall be evidenced by option agreements, each in a form approved
        by the
        Administrator. An option agreement shall indicate on its face whether it
        is
        intended to be an agreement for an Incentive Stock Option or a Non-Qualified
        Stock Option. The grant of a Stock Option shall occur as of the date the
        Administrator determines.

      

      Anything
        in the Plan to the contrary notwithstanding, no term of the Plan relating
        to
        Incentive Stock Options shall be interpreted, amended or altered, nor shall
        any
        discretion or authority granted under the Plan be exercised, so as to disqualify
        the Plan under Section 422 of the Code or, without the consent of the Optionee
        affected, to disqualify any Incentive Stock Option under Section 422 of the
        Code.

      

      To
        the
        extent that the aggregate Fair Market Value of Stock with respect to which
        Incentive Stock Options are exercisable for the first time by a Participant
        during any calendar year (under all plans of the Company) exceeds $100,000,
        such
        Stock Options shall be treated as Non-Qualified Stock Options.

      

      Stock
        Options granted under this Section 4 shall be subject to the following terms and
        conditions and shall contain such additional terms and conditions as the
        Administrator shall deem desirable:

      

      (a) EXERCISE
        PRICE. The exercise price per share of Stock purchasable under a Stock Option
        shall be determined by the Administrator. If the Stock Option is intended
        to
        qualify as an Incentive Stock Option, the exercise price per share shall
        be not
        less than the Fair Market Value per share on the date the Stock Option is
        granted, or if granted to an individual who is a Ten Percent Holder, not
        less
        than 110% of such Fair Market Value per share.

      

      (a) OPTION
        TERM. The term of each Stock Option shall be fixed by the Administrator,
        but no
        Incentive Stock Option shall be exercisable more than 10 years (or five years
        in
        the case of an individual who is a Ten Percent Holder) after the date the
        Incentive Stock Option is granted.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      (b) EXERCISABILITY.
        Except as otherwise provided herein, Stock Options shall be exercisable at
        such
        time or times, and subject to such terms and conditions, as shall be determined
        by the Administrator. If the Administrator provides that any Stock Option
        is
        exercisable only in installments, the Administrator may at any time waive
        such
        installment exercise provisions, in whole or in part, based on such factors
        as
        the Administrator may determine. In addition, the Administrator may at any
        time,
        in whole or in part, accelerate the exercisability of any Stock
        Option.

      

      (c) METHOD
        OF
        EXERCISE. Subject to the provisions of this Section 4, Stock Options may
        be
        exercised, in whole or in part, at any time during the option term by giving
        written notice of exercise to the Company specifying the number of shares
        of
        Stock subject to the Stock Option to be purchased.

      

      The
        option price of any Stock Option shall be paid in full in cash (by certified
        or
        bank check or such other instrument as the Company may accept) or, unless
        otherwise provided in the applicable option agreement, by one or more of
        the
        following: (i) in the form of unrestricted Stock already owned by the Optionee,
        that is acceptable to the Administrator, based in any such instance on the
        Fair
        Market Value of the Stock on the date the Stock Option is exercised; (ii)
        by
        certifying ownership of shares of Stock owned by the Optionee to the
        satisfaction of the Administrator for later delivery to the Company as specified
        by the Company; (iii) by irrevocably authorizing a third party to sell shares
        of
        Stock (or a sufficient portion of the shares) acquired upon exercise of the
        Stock Option and remit to the Company a sufficient portion of the sale proceeds
        to pay the entire exercise price and any tax withholding resulting from such
        exercise; or (iv) by any combination of cash and/or any one or more of the
        methods specified in clauses (i), (ii) and (iii). Notwithstanding the foregoing,
        a form of payment shall not be permitted to the extent it would cause the
        Company to recognize a compensation expense (or additional compensation expense)
        with respect to the Stock Option for financial reporting purposes.

      

      If
        payment of the option exercise price of a Non-Qualified Stock Option is made
        in
        whole or in part in the form of Restricted Stock, the number of shares of
        Stock
        to be received upon such exercise equal to the number of shares of Restricted
        Stock used for payment of the option exercise price shall be subject to the
        same
        forfeiture restrictions to which such Restricted Stock was subject, unless
        otherwise determined by the Administrator.

      

      No
        shares
        of Stock shall be issued upon exercise of a Stock Option until full payment
        therefor has been made. Upon exercise of a Stock Option (or a portion thereof),
        the Company shall have a reasonable time to issue the Stock for which the
        Stock
        Option has been exercised, and the Optionee shall not be treated as a
        stockholder for any purposes whatsoever prior to such issuance. No adjustment
        shall be made for cash dividends or other rights for which the record date
        is
        prior to the date such Stock is recorded as issued and transferred in the
        Company's official stockholder records, except as otherwise provided herein
        or
        in the applicable option agreement.

      

      (d) TRANSFERABILITY
        OF STOCK OPTIONS. Except as otherwise provided in the applicable option
        agreement, a Non-Qualified Stock Option (i) shall be transferable by the
        Optionee to a Family Member of the Optionee, provided that (A) any such transfer
        shall be by gift with no consideration and (B) no subsequent transfer of
        such
        Stock Option shall be permitted other than by will or the laws of descent
        and
        distribution, and (ii) shall not otherwise be transferable except by will
        or the
        laws of descent and distribution. An Incentive Stock Option shall not be
        transferable except by will or the laws of descent and distribution. A Stock
        Option shall be exercisable, during the Optionee's lifetime, only by the
        Optionee or by the guardian or legal representative of the Optionee, it being
        understood that the terms “holder” and “Optionee” include the guardian and legal
        representative of the Optionee named in the applicable option agreement and
        any
        person to whom the Stock Option is transferred (X) pursuant to the first
        sentence of this Section 4(d) or pursuant to the applicable option agreement
        or
        (Y) by will or the laws of descent and distribution. Notwithstanding the
        foregoing, references herein to the termination of an Optionee's employment
        or
        provision of services shall mean the termination of employment or provision
        of
        services of the person to whom the Stock Option was originally
        granted.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      (e) TERMINATION
        BY DEATH. Unless otherwise provided in the applicable option agreement, if
        an
        Optionee's employment or provision of services terminates by reason of death,
        any Stock Option held by such Optionee may thereafter be exercised, to the
        extent then exercisable, or on such accelerated basis as the Administrator
        may
        determine, for a period of 12 months from the date of such death or until
        the
        expiration of the stated term of such Stock Option, whichever period is shorter.
        In the event of termination of employment or provision of services due to
        death,
        if an Incentive Stock Option is exercised after the expiration of the exercise
        periods that apply for purposes of Section 422 of the Code, such Stock Option
        will thereafter be treated as a Non-Qualified Stock Option.

      

      (f) TERMINATION
        BY REASON OF DISABILITY. Unless otherwise provided in the applicable option
        agreement, if an Optionee's employment or provision of services terminates
        by
        reason of Disability, any Stock Option held by such Optionee may thereafter
        be
        exercised by the Optionee, to the extent it was exercisable at the time of
        termination, or on such accelerated basis as the Administrator may determine,
        for a period of three years from the date of such termination of employment
        or
        provision of services or until the expiration of the stated term of such
        Stock
        Option, whichever period is shorter; provided, however, that if the Optionee
        dies within such period, an unexercised Stock Option held by such Optionee
        shall, notwithstanding the expiration of such period, continue to be exercisable
        to the extent to which it was exercisable at the time of death for a period
        of
        12 months from the date of such death or until the expiration of the stated
        term
        of such Stock Option, whichever period is shorter. In the event of termination
        of employment or provision of services by reason of Disability, if an Incentive
        Stock Option is exercised after the expiration of the exercise periods that
        apply for purposes of Section 422 of the Code, such Stock Option will thereafter
        be treated as a Non-Qualified Stock Option.

      

      (g) TERMINATION
        BY REASON OF RETIREMENT. Unless otherwise provided in the applicable option
        agreement, if an Optionee's employment or provision of services terminates
        by
        reason of Retirement, any Stock Option held by such Optionee may thereafter
        be
        exercised by the Optionee, to the extent it was exercisable at the time of
        such
        Retirement, or on such accelerated basis as the Administrator may determine,
        for
        a period of three years from the date of such termination of employment or
        provision of services or until the expiration of the stated term of such
        Stock
        Option, whichever period is shorter; provided, however, that if the Optionee
        dies within such period, any unexercised Stock Option held by such Optionee
        shall, notwithstanding the expiration of such period, continue to be exercisable
        to the extent to which it was exercisable at the time of death for a period
        of
        12 months from the date of such death or until the expiration of the stated
        term
        of such Stock Option, whichever period is shorter. In the event of termination
        of employment or provision of services by reason of Retirement, if an Incentive
        Stock Option is exercised after the expiration of the exercise periods that
        apply for purposes of Section 422 of the Code, such Stock Option will thereafter
        be treated as a Non-Qualified Stock Option.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      (h) OTHER
        TERMINATION. Unless otherwise provided in the applicable option agreement
        or the
        Optionee's employment agreement, if any, if an Optionee's employment or
        provision of services terminates for any reason other than death, Disability
        or
        Retirement, any Stock Option held by such Optionee shall thereupon terminate;
        provided, however, that, if such termination of employment or provision of
        services is involuntary on the part of the Optionee and without Cause, such
        Stock Option, to the extent then exercisable, or on such accelerated basis
        as
        the Administrator may determine, may be exercised for the lesser of 3 months
        from the date of such termination of employment or provision of services
        or the
        remainder of such Stock Option's term, and provided, further, that if the
        Optionee dies within such period, any unexercised Stock Option held by such
        Optionee shall, notwithstanding the expiration of such period, continue to
        be
        exercisable to the extent to which it was exercisable at the time of death
        for a
        period of 12 months from the date of such death or until the expiration of
        the
        stated term of such Stock Option, whichever period is shorter. In the event
        of
        termination of employment or provision of services for any reason other than
        death, Disability or Retirement, if an Incentive Stock Option is exercised
        after
        the expiration of the exercise periods that apply for purposes of Section
        422 of
        the Code, such Stock Option will thereafter be treated as a Non-Qualified
        Stock
        Option.

      

      (i) EXCEPTION
        TO TERMINATION. Notwithstanding anything in this Plan to the contrary, if
        an
        Optionee's employment by, or provision of services to, the Company or an
        Affiliate ceases as a result of a transfer of such Optionee from the Company
        to
        an Affiliate, or from an Affiliate to the Company, such transfer will not
        be a
        termination of employment or provision of services for purposes of this Plan,
        unless expressly determined otherwise by the Administrator. A termination
        of
        employment or provision of services shall occur for an Optionee who is employed
        by, or provides services to, an Affiliate of the Company if the Affiliate
        shall
        cease to be an Affiliate and the Optionee shall not immediately thereafter
        be
        employed by, or provide services to, the Company or an Affiliate.

      

      (j) PARTICIPANT
        LOANS. The Administrator may in its discretion, to the extent permitted by
        law
        and any applicable exchange rules, authorize the Company to:

      

      (i) lend
        to
        an Optionee an amount equal to such portion of the exercise price of a Stock
        Option as the Administrator may determine; or

      

      (ii) guarantee
        a loan obtained by an Optionee from a third-party for the purpose of tendering
        such exercise price.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      The
        terms
        and conditions of any loan or guarantee, including the term, interest rate,
        whether the loan is with recourse against the Optionee and any security interest
        thereunder, shall be determined by the Administrator, except that no extension
        of credit or guarantee shall obligate the Company for an amount to exceed
        the
        lesser of (i) the aggregate Fair Market Value on the date of exercise, less
        the
        par value, of the shares of Stock to be purchased upon the exercise of the
        Stock
        Option, and (ii) the amount permitted under applicable laws or the regulations
        and rules of the Federal Reserve Board and any other governmental agency
        having
        jurisdiction.

      

      5. STOCK
        APPRECIATION RIGHTS

      

      Stock
        Appreciation Rights may be granted either on a stand-alone basis or in
        conjunction with all or part of any Stock Option granted under the Plan.
        In the
        case of a Non-Qualified Stock Option, such rights may be granted either at
        or
        after the time of grant of such Stock Option. In the case of an Incentive
        Stock
        Option, such rights may be granted only at the time of grant of such Stock
        Option. A Stock Appreciation Right shall terminate and no longer be exercisable
        as determined by the Administrator, or, if granted in conjunction with all
        or
        part of any Stock Option, upon the termination or exercise of the related
        Stock
        Option.

      

      A
        Stock
        Appreciation Right may be exercised by a Participant as determined by the
        Administrator in accordance with this Section 5, and, if granted in conjunction
        with all or part of any Stock Option, by surrendering the applicable portion
        of
        the related Stock Option in accordance with procedures established by the
        Administrator. Upon such exercise and surrender, the Participant shall be
        entitled to receive an amount determined in the manner prescribed in this
        Section 5. Stock Options which have been so surrendered, if any, shall no
        longer
        be exercisable to the extent the related Stock Appreciation Rights have been
        exercised.

      

      Stock
        Appreciation Rights shall be subject to such terms and conditions as shall
        be
        determined by the Administrator, including the following:

      

      (i) Stock
        Appreciation Rights granted on a stand-alone basis shall be exercisable only
        at
        such time or times and to such extent as determined by the Administrator.
        Stock
        Appreciation Rights granted in conjunction with all or part of any Stock
        Option
        shall be exercisable only at the time or times and to the extent that the
        Stock
        Options to which they relate are exercisable in accordance with the provisions
        of Section 4 and this Section 5.

      

      (ii) Upon
        the
        exercise of a Stock Appreciation Right, a Participant shall be entitled to
        receive an amount in cash, shares of Stock or both, which in the aggregate
        are
        equal in value to the excess of the Fair Market Value of one share of Stock
        over
        (i) such value per share of Stock as shall be determined by the Administrator
        at
        the time of grant (if the Stock Appreciation Right is granted on a stand-alone
        basis), or (ii) the exercise price per share specified in the related Stock
        Option (if the Stock Appreciation Right is granted in conjunction with all
        or
        part of any Stock Option), multiplied by the number of shares in respect
        of
        which the Stock Appreciation Right shall have been exercised, with the
        Administrator having the right to determine the form of payment.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      (iii) A
        Stock
        Appreciation Right shall be transferable only to, and shall be exercisable
        only
        by, such persons permitted in accordance with Section 4(d).

      

      6. STOCK
        AWARDS OTHER THAN OPTIONS

      

      Stock
        Awards may be directly issued under the Plan (without any intervening options),
        subject to such terms, conditions, performance requirements, restrictions,
        forfeiture provisions, contingencies and limitations as the Administrator
        shall
        determine. Stock Awards may be issued which are fully and immediately vested
        upon issuance or which vest in one or more installments over the Participant's
        period of employment or other service to the Company or upon the attainment
        of
        specified performance objectives, or the Company may issue Stock Awards which
        entitle the Participant to receive a specified number of vested shares of
        Stock
        upon the attainment of one or more performance goals or service requirements
        established by the Administrator.

      

      Shares
        representing a Stock Award shall be evidenced in such manner as the
        Administrator may deem appropriate, including book-entry registration or
        issuance of one or more certificates (which may bear appropriate legends
        referring to the terms, conditions and restrictions applicable to such Award).
        The Administrator may require that any such certificates be held in custody
        by
        the Company until any restrictions thereon shall have lapsed and that the
        Participant deliver a stock power, endorsed in blank, relating to the Stock
        covered by such Award.

      

      A
        Stock
        Award may be issued in exchange for any consideration which the Administrator
        may deem appropriate in each individual instance, including, without
        limitation:

      

      (i) cash
        or
        cash equivalents;

      

      (i) past
        services rendered to the Company or any Affiliate; or

      

      (ii) future
        services to be rendered to the Company or any Affiliate (provided that, in
        such
        case, the par value of the stock subject to such Stock Award shall be paid
        in
        cash or cash equivalents, unless the Administrator provides
        otherwise).

      

      A
        Stock
        Award that is subject to restrictions on transfer and/or forfeiture provisions
        may be referred to as an award of “Restricted Stock” or “Restricted Stock
        Units.”

      

      7. CHANGE
        IN CONTROL PROVISIONS

      

      (a)
         IMPACT
        OF
        EVENT. In the event of a Change in Control, the following provisions will
        govern, except as may otherwise be provided in any particular agreement pursuant
        to which an Award has been granted:

      

      (i) Outstanding
        Awards shall be subject to any agreement of merger or reorganization that
        effects such Change in Control, which agreement shall provide for:

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      (A) The
        continuation of the outstanding Awards by the Company, if the Company is
        a
        surviving corporation;

      

      (B) The
        assumption of the outstanding Awards by the surviving corporation or its
        parent
        or subsidiary;

      

      (C) The
        substitution by the surviving corporation or its parent or subsidiary of
        equivalent awards for the outstanding Awards; or

      

      (D) Settlement
        of each share of Stock subject to an outstanding Award for the Change in
        Control
        Price (less, to the extent applicable, the per share exercise price), in
        which
        case, each outstanding Award, to the extent not vested, shall become fully
        exercisable and vested to the full extent of the original grant; notwithstanding
        the foregoing, if the per share exercise price of an Award equals or exceeds
        the
        Change in Control Price, the outstanding Award shall terminate and be canceled
        immediately prior to giving effect to the Change in Control; and.

      

      (ii) In
        the
        absence of any agreement of merger or reorganization effecting such Change
        in
        Control, each share of Stock subject to an outstanding Award shall be settled
        for the Change in Control Price (less, to the extent applicable, the per
        share
        exercise price), in which case, each outstanding Award, to the extent not
        vested, shall become fully exercisable and vested to the full extent of the
        original grant; notwithstanding the foregoing, if the per share exercise
        price
        of an Award equals or exceeds the Change in Control Price, the outstanding
        Award
        shall terminate and be canceled immediately prior to giving effect to the
        Change
        in Control.

      

      (b) DEFINITION
        OF CHANGE IN CONTROL. For purposes of the Plan, a “Change in Control” shall mean
        the happening of any of the following events:

      

      (i) An
        acquisition by any individual, entity or group (within the meaning of Section
        13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership
        (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
        more
        than 50% of either (1) the then outstanding shares of common stock of the
        Company (the “Outstanding Company Common Stock”) or (2) the combined voting
        power of the then outstanding voting securities of the Company entitled to
        vote
        generally in the election of directors (the “Outstanding Company Voting
        Securities”); excluding, however, the following: (1) any acquisition directly
        from the Company, other than an acquisition by virtue of the exercise of
        a
        conversion privilege unless the security being so converted was itself acquired
        directly from the Company, (2) any acquisition by the Company; (3) any
        acquisition by any employee benefit plan (or related trust) sponsored or
        maintained by the Company or any corporation controlled by the Company; or
        (4)
        any acquisition by any Person pursuant to a transaction which complies with
        clauses (1), (2) and (3) of subsection (iii) of this Section 7(b);
        or

      

      (ii) Within
        any period of 24 consecutive months, a change in the composition of the Board
        such that the individuals who, immediately prior to such period, constituted
        the
        Board (such Board shall be hereinafter referred to as the “Incumbent Board”)
        cease for any reason to constitute at least a majority of the Board; provided,
        however, for purposes of this Section 7(b), that any individual who becomes
        a
        member of the Board during such period, whose election, or nomination for
        election by the Company's stockholders, was approved by a vote of at least
        a
        majority of those individuals who are members of the Board and who were also
        members of the Incumbent Board (or deemed to be such pursuant to this proviso)
        shall be considered as though such individual were a member of the Incumbent
        Board; but, provided further, that 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 shall not be so considered
        as a
        member of the Incumbent Board; or

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      (iii) The
        approval by the stockholders of the Company of a reorganization, merger or
        consolidation or sale or other disposition of all or substantially all of
        the
        assets of the Company (“Corporate Transaction”); excluding, however, such a
        Corporate Transaction pursuant to which (1) all or substantially all of the
        individuals and entities who are the beneficial owners, respectively, of
        the
        Outstanding Company Common Stock and Outstanding Company Voting Securities
        immediately prior to such Corporate Transaction will beneficially own, directly
        or indirectly, more than 50% of, respectively, the outstanding shares of
        common
        stock, and the combined voting power of the then outstanding voting securities
        entitled to vote generally in the election of directors, as the case may
        be, of
        the corporation resulting from such Corporate Transaction (including, without
        limitation, a corporation which as a result of such transaction owns the
        Company
        or all or substantially all of the Company's assets, either directly or through
        one or more subsidiaries) in substantially the same proportions as their
        ownership, immediately prior to such Corporate Transaction, of the Outstanding
        Company Common Stock and Outstanding Company Voting Securities, as the case
        may
        be, (2) no Person (other than the Company, any employee benefit plan (or
        related
        trust) sponsored or maintained by the Company, by any corporation controlled
        by
        the Company, or by such corporation resulting from such Corporate Transaction)
        will beneficially own, directly or indirectly, more than 25% of, respectively,
        the outstanding shares of common stock of the corporation resulting from
        such
        Corporate Transaction or the combined voting power of the outstanding voting
        securities of such corporation entitled to vote generally in the election
        of
        directors, except to the extent that such ownership existed with respect
        to the
        Company prior to the Corporate Transaction, and (3) individuals who were
        members
        of the Board immediately prior to the approval by the stockholders of the
        Corporation of such Corporate Transaction will constitute at least a majority
        of
        the members of the board of directors of the corporation resulting from such
        Corporate Transaction; or

      

      (iv) The
        approval by the stockholders of the Company of a complete liquidation or
        dissolution of the Company, other than to a corporation pursuant to a
        transaction which would comply with clauses (1), (2) and (3) of subsection
        (iii)
        of this Section 7(b), assuming for this purpose that such transaction were
        a
        Corporate Transaction.

      

      (c) CHANGE
        IN
        CONTROL PRICE. For purposes of the Plan, “Change in Control Price” means the
        highest of (i) the highest reported sales price, regular way, of a share
        of
        Stock in any transaction reported on any exchange or trading medium on which
        such shares are listed or traded during the 60-day period prior to and including
        the date of a Change in Control, (ii) if the Change in Control is the result
        of
        a tender or exchange offer or a Corporate Transaction, the highest price
        per
        share of Stock paid in such tender or exchange offer or Corporate Transaction,
        and (iii) the Fair Market Value of a share of Stock upon the Change in Control.
        To the extent that the consideration paid in any such transaction described
        above consists all or in part of securities or other non-cash consideration,
        the
        value of such securities or other non-cash consideration shall be determined
        in
        the sole discretion of the Board.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      8. MISCELLANEOUS

      

      (a) AMENDMENT.
        The Board may amend, alter, or discontinue the Plan, but no amendment,
        alteration or discontinuation shall be made which would adversely affect
        the
        rights of a Participant under an Award theretofore granted without the
        Participant's consent, except such an amendment (i) made to avoid an expense
        charge to the Company or an Affiliate, or (ii) made to permit the Company
        or an
        Affiliate a deduction under the Code. No such amendment shall be made without
        the approval of the Company's stockholders to the extent such approval is
        required by law, agreement or the rules of any exchange or market on which
        the
        Stock is listed or traded.

      

      The
        Administrator may amend the terms of any Stock Option or other Award theretofore
        granted, prospectively or retroactively, but no such amendment shall adversely
        affect the rights of the holder thereof without the holder's
        consent.

      

      (b) UNFUNDED
        STATUS OF PLAN. It is intended that this Plan be an “unfunded” plan for
        incentive and deferred compensation. The Administrator may authorize the
        creation of trusts or other arrangements to meet the obligations created
        under
        this Plan to deliver Stock or make payments, provided that, unless the
        Administrator otherwise determines, the existence of such trusts or other
        arrangements is consistent with the “unfunded” status of this Plan.

      

      (c) GENERAL
        PROVISIONS.

      

      (i) The
        Administrator may require each person purchasing or receiving shares pursuant
        to
        an Award to represent to and agree with the Company in writing that such
        person
        is acquiring the shares without a view to the distribution thereof. The
        certificates for such shares may include any legend which the Administrator
        deems appropriate to reflect any restrictions on transfer.

      

      All
        certificates for shares of Stock or other securities delivered under the
        Plan
        shall be subject to such stock transfer orders and other restrictions as
        the

      

      Administrator
        may deem advisable under the rules, regulations and other requirements of
        the
        Commission, any exchange or market on which the Stock is then listed or traded
        and any applicable Federal or state securities law, and the Administrator
        may
        cause a legend or legends to be put on any such certificates to make appropriate
        reference to such restrictions.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

      (ii) Nothing
        contained in the Plan shall prevent the Company or any Affiliate from adopting
        other or additional compensation arrangements for its employees.

      

      (iii) The
        adoption of the Plan shall not confer upon any employee, director, consultant
        or
        advisor any right to continued employment, directorship or service, nor shall
        it
        interfere in any way with the right of the Company or any Subsidiary or
        Affiliate to terminate the employment or service of any employee, consultant
        or
        advisor at any time.

      

      (iv) No
        later
        than the date as of which an amount first becomes includible in the gross
        income
        of the Participant for Federal income tax purposes with respect to any Award
        under the Plan, the Participant shall pay to the Company, or make arrangements
        satisfactory to the Company regarding the payment of, any Federal, state,
        local
        or foreign taxes of any kind required by law to be withheld with respect
        to such
        amount. Unless otherwise determined by the Administrator, withholding
        obligations may be settled with Stock, including Stock that is part of the
        Award
        that gives rise to the withholding requirement. The obligations of the Company
        under the Plan shall be conditional on such payment or arrangements, and
        the
        Company, its Subsidiaries and its Affiliates shall, to the extent permitted
        by
        law, have the right to deduct any such taxes from any payment otherwise due
        to
        the Participant. The Administrator may establish such procedures as it deems
        appropriate for the settlement of withholding obligations with
        Stock.

      

      (v) The
        Administrator shall establish such procedures as it deems appropriate for
        a
        Participant to designate a beneficiary to whom any amounts payable in the
        event
        of the Participant's death are to be paid.

      

      (vi) Any
        amounts owed to the Company or an Affiliate by the Participant of whatever
        nature may be offset by the Company from the value of any shares of Stock,
        cash
        or other thing of value under this Plan or an agreement to be transferred
        to the
        Participant, and no shares of Stock, cash or other thing of value under this
        Plan or an agreement shall be transferred unless and until all disputes between
        the Company and the Participant have been fully and finally resolved and
        the
        Participant has waived all claims to such against the Company or an
        Affiliate.

      

      (vii) The
        grant
        of an Award shall in no way affect the right of the Company to adjust,
        reclassify, reorganize or otherwise change its capital or business structure
        or
        to merge, consolidate, dissolve, liquidate or sell or transfer all or any
        part
        of its business or assets.

      

      (viii) If
        any
        payment or right accruing to a Participant under this Plan (without the
        application of this Section (8)(c)(viii)), either alone or together with
        other
        payments or rights accruing to the Participant from the Company or an Affiliate
        (“Total Payments”) would constitute an “excess parachute payment” (as defined in
        Section 280G of the Code and regulations thereunder), such payment or right
        shall be reduced to the largest amount or greatest right that will result
        in no
        portion of the amount payable or right accruing under this Plan being subject
        to
        an excise tax under Section 4999 of the Code or being disallowed as a deduction
        under Section 280G of the Code; provided, however, that the foregoing shall
        not
        apply to the extent provided otherwise in an Award or in the event the
        Participant is party to an agreement with the Company or an Affiliate that
        explicitly provides for an alternate treatment of payments or rights that
        would
        constitute “excess parachute payments.” The determination of whether any
        reduction in the rights or payments under this Plan is to apply shall be
        made by
        the Administrator in good faith after consultation with the Participant,
        and
        such determination shall be conclusive and binding on the Participant. The
        Participant shall cooperate in good faith with the Administrator in making
        such
        determination and providing the necessary information for this purpose. The
        foregoing provisions of this Section 8(c)(viii) shall apply with respect
        to any
        person only if, after reduction for any applicable Federal excise tax imposed
        by
        Section 4999 of the Code and Federal income tax imposed by the Code, the
        Total
        Payments accruing to such person would be less than the amount of the Total
        Payments as reduced, if applicable, under the foregoing provisions of this
        Plan
        and after reduction for only Federal income taxes.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      

      (ix) To
        the
        extent that the Administrator determines that the restrictions imposed by
        the
        Plan preclude the achievement of the material purposes of the Awards in
        jurisdictions outside the United States, the Administrator in its discretion
        may
        modify those restrictions as it determines to be necessary or appropriate
        to
        conform to applicable requirements or practices of jurisdictions outside
        of the
        United States.

      

      (x) The
        headings contained in this Plan are for reference purposes only and shall
        not
        affect the meaning or interpretation of this Plan.

      

      (xi) If
        any
        provision of this Plan shall for any reason be held to be invalid or
        unenforceable, such invalidity or unenforceability shall not effect any other
        provision hereby, and this Plan shall be construed as if such invalid or
        unenforceable provision were omitted.

      

      (xii) This
        Plan
        shall inure to the benefit of and be binding upon each successor and assign
        of
        the Company. All obligations imposed upon a Participant, and all rights granted
        to the Company hereunder, shall be binding upon the Participant's heirs,
        legal
        representatives and successors.

      

      (xiii) This
        Plan
        and each agreement granting an Award constitute the entire agreement with
        respect to the subject matter hereof and thereof, provided that in the event
        of
        any inconsistency between this Plan and such agreement, the terms and conditions
        of the Plan shall control.

      

      (xiv) In
        the
        event there is an effective registration statement under the Securities Act
        pursuant to which shares of Stock shall be offered for sale in an underwritten
        offering, a Participant shall not, during the period requested by the
        underwriters managing the registered public offering, effect any public sale
        or
        distribution of shares of Stock received, directly or indirectly, as an Award
        or
        pursuant to the exercise or settlement of an Award.

      

      (xv) None
        of
        the Company, an Affiliate or the Administrator shall have any duty or obligation
        to disclose affirmatively to a record or beneficial holder of Stock or an
        Award,
        and such holder shall have no right to be advised of, any material information
        regarding the Company or any Affiliate at any time prior to, upon or in
        connection with receipt or the exercise of an Award or the Company's purchase
        of
        Stock or an Award from such holder in accordance with the terms
        hereof.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      

      (xvi) This
        Plan, and all Awards, agreements and actions hereunder, shall be governed
        by,
        and construed in accordance with, the laws of the state of Delaware (other
        than
        its law respecting choice of law).

      

      9. DEFERRAL
        OF AWARDS

      

      The
        Administrator (in its sole discretion) may permit a Participant to:

      

      (a) have
        cash
        that otherwise would be paid to such Participant as a result of the exercise
        of
        a Stock Appreciation Right or the settlement of a Stock Award credited to
        a
        deferred compensation account established for such Participant by the
        Administrator as an entry on the Company's books;

      

      (b) have
        Stock that otherwise would be delivered to such Participant as a result of
        the
        exercise of a Stock Option or a Stock Appreciation Right converted into an
        equal
        number of Stock units; or

      

      (c) have
        Stock that otherwise would be delivered to such Participant as a result of
        the
        exercise of a Stock Option or Stock Appreciation Right or the settlement
        of a
        Stock Award converted into amounts credited to a deferred compensation account
        established for such Participant by the Administrator as an entry on the
        Company's books. Such amounts shall be determined by reference to the Fair
        Market Value of the Stock as of the date on which they otherwise would have
        been
        delivered to such Participant.

      

      A
        deferred compensation account established under this Section 9 may be credited
        with interest or other forms of investment return, as determined by the
        Administrator. A Participant for whom such an account is established shall
        have
        no rights other than those of a general creditor of the Company. Such an
        account
        shall represent an unfunded and unsecured obligation of the Company and shall
        be
        subject to the terms and conditions of the applicable agreement between such
        Participant and the Company. If the deferral or conversion of awards is
        permitted or required, the Administrator (in its sole discretion) may establish
        rules, procedures and forms pertaining to such awards, including (without
        limitation) the settlement of deferred compensation accounts established
        under
        this Section 9.

      

      10. DEFINITIONS

      

      For
        purposes of this Plan, the following terms are defined as set forth
        below:

      

      (a) “AFFILIATE”
        means a corporation or other entity controlled by the Company and designated
        by
        the Administrator as such.

      

      (b) “AWARD”
        means a Stock Appreciation Right, Stock Option or Stock Award.

      

      (c) “BOARD”
        means the Board of Directors of the Company.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

      (d) “CAUSE”
        means (i) the conviction of the Participant for committing a felony under
        Federal law or the law of the state in which such action occurred, (ii)
        dishonesty in the course of fulfilling the Participant's duties as an employee
        or director of, or consultant or advisor to, the Company or (iii) willful
        and
        deliberate failure on the part of the Participant to perform such duties
        in any
        material respect. Notwithstanding the foregoing, if the Participant and the
        Company or the Affiliate have entered into an employment or services agreement
        which defines the term “Cause” (or a similar term), such definition shall govern
        for purposes of determining whether such Participant has been terminated
        for
        Cause for purposes of this Plan. The determination of Cause shall be made
        by the
        Administrator, in its sole discretion.

      

      (e) “CODE”
        means the Internal Revenue Code of 1986, as amended from time to time, and
        any
        successor thereto.

      

      (f) “COMMISSION”
        means the Securities and Exchange Commission or any successor
        agency.

      

      (g) “COMMITTEE”
        means a committee of Directors appointed by the Board to administer this
        Plan.
        With respect to Options granted at the time the Company is publicly held,
        if
        any, insofar as the Committee is responsible for granting Options to
        Participants hereunder, it shall consist solely of two or more directors,
        each
        of whom is a “Non-Employee Director” within the meaning of Rule 16b-3 and each
        of whom is also an “outside director” under Section 162(m) of the
        Code.

      

      (h) “COMPANY”
        means Telecomm Sales Network, Inc., a Delaware corporation.

      

      (i) “DIRECTOR”
        means a member of the Company's Board of Directors.

      

      (j) “DISABILITY”
        means mental or physical illness that entitles the Participant to receive
        benefits under the long-term disability plan of the Company or an Affiliate,
        or
        if the Participant is not covered by such a plan or the Participant is not
        an
        employee of the Company or an Affiliate, a mental or physical illness that
        renders a Participant totally and permanently incapable of performing the
        Participant's duties for the Company or an Affiliate; provided, however,
        that a
        Disability shall not qualify under this Plan if it is the result of (i) a
        willfully self-inflicted injury or willfully self-induced sickness; or (ii)
        an
        injury or disease contracted, suffered or incurred while participating in
        a
        criminal offense. Notwithstanding the foregoing, if the Participant and the
        Company or an Affiliate have entered into an employment or services agreement
        which defines the term “Disability” (or a similar term), such definition shall
        govern for purposes of determining whether such Participant suffers a Disability
        for purposes of this Plan. The determination of Disability shall be made
        by the
        Administrator, in its sole discretion. The determination of Disability for
        purposes of this Plan shall not be construed to be an admission of disability
        for any other purpose.

      

      (k) “EFFECTIVE
        DATE” means __________, 2006.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      

      (l) “ELIGIBLE
        INDIVIDUAL” means any officer, employee or director of the Company or a
        Subsidiary or Affiliate, or any consultant or advisor providing services
        to the
        Company or a Subsidiary or Affiliate.

      

      (m) “EXCHANGE
        ACT” means the Securities Exchange Act of 1934, as amended from time to time,
        and any successor thereto.

      

      (n) “FAIR
        MARKET VALUE” means, as of any given date, the fair market value of the Stock as
        determined by the Administrator or under procedures established by the
        Administrator. Unless otherwise determined by the Administrator, the Fair
        Market
        Value per share shall be the closing bid or sales price per share of the
        Stock
        on a primary exchange or quotation system on which the Stock is listed or
        posted
        for quotation on the date as of which such value is being determined or the
        last
        previous day on which a sale was reported.

      

      (o) “FAMILY
        MEMBER” means any child, stepchild, grandchild, parent, stepparent, grandparent,
        spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
        son-in-law, daughter-in-law, brother-in-law or sister-in-law of a Participant
        (including adoptive relationships); any person sharing the Participant's
        household (other than a tenant or employee); any trust in which the Participant
        and any of these persons have all of the beneficial interest; any foundation
        in
        which the Participant and any of these persons control the management of
        the
        assets; any corporation, partnership, limited liability company or other
        entity
        in which the Participant and any of these other persons are the direct and
        beneficial owners of all of the equity interests (provided the Participant
        and
        these other persons agree in writing to remain the direct and beneficial
        owners
        of all such equity interests); and any personal representative of the
        Participant upon the Participant's death for purposes of administration of
        the
        Participant's estate or upon the Participant's incompetency for purposes
        of the
        protection and management of the assets of the Participant.

      

      (p) “INCENTIVE
        STOCK OPTION” means any Stock Option intended to be and designated as an
“incentive stock option” within the meaning of Section 422 of the
        Code.

      

      (q) “NON-EMPLOYEE
        DIRECTOR” means a Director who is not an officer or employee of the
        Company.

      

      (r) “NON-QUALIFIED
        STOCK OPTION” means any Stock Option that is not an Incentive Stock
        Option.

      

      (s) “OPTIONEE”
        means a person who holds a Stock Option.

      

      (t) “PARTICIPANT”
        means a person granted an Award.

      

      (u) “REPRESENTATIVE”
        means (i) the person or entity acting as the executor or administrator of
        a
        Participant's estate pursuant to the last will and testament of a Participant
        or
        pursuant to the laws of the jurisdiction in which the Participant had his
        or her
        primary residence at the date of the Participant's death; (ii) the person
        or
        entity acting as the guardian or temporary guardian of a Participant; (iii)
        the
        person or entity which is the beneficiary of the Participant upon or following
        the Participant's death; or (iv) any person to whom an Option has been
        transferred with the permission of the Administrator or by operation of law;
        provided that only one of the foregoing shall be the Representative at any
        point
        in time as determined under applicable law and recognized by the
        Administrator.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      

      (v) “RETIREMENT”
        means retirement from active employment under a pension plan of the Company
        or
        any subsidiary or Affiliate, or under an employment contract with any of
        them,
        or termination of employment or provision of services at or after age 55
        under
        circumstances which the Administrator, in its sole discretion, deems equivalent
        to retirement.

      

      (w) “STOCK”
        means common stock, par value $0.0001 per share, of the Company.

      

      (x) “STOCK
        APPRECIATION RIGHT” means a right granted under Section 5.

      

      (y) “STOCK
        AWARD” means an Award, other than a Stock Option or Stock Appreciation Right,
        made in Stock or denominated in shares of Stock.

      

      (z) “STOCK
        OPTION” means an option granted under Section 4.

      

      (aa) “SUBSIDIARY”
        means any company during any period in which it is a “subsidiary corporation”
(as such term is defined in Section 424(f) of the Code) with respect to the
        Company.

      

      (bb) “TEN
        PERCENT HOLDER” means an individual who owns, or is deemed to own, stock
        possessing more than 10% of the total combined voting power of all classes
        of
        stock of the Company or of any parent or subsidiary corporation of the Company,
        determined pursuant to the rules applicable to Section 422(b)(6) of the
        Code.

      

      In
        addition, certain other terms used herein have the definitions given to them
        in
        the first places in which they are used.

       

      
        
           

        

        
          18

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