Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Lincoln Gold Corp. - Exhibit 10.4

 LINCOLN GOLD CORP.

  PO BOX 3711 STN TERMINAL

  349 WEST GEORGIA STREET, VANCOUVER

  BC CANADA V6B 3Z1 

April 18th, 2004

 Mr. Kenneth D. Cunningham 

  President and Chief Executive Officer

  Miranda U.S.A., Inc. 

  Miranda Gold Corp., 

  306-1140 Homer Street 

  Vancouver, B.C. V6B 2X6 

  CANADA 

 Re: Hercules Joint Venture, Lyon County, Nevada 

Dear Mr. Cunningham:

 The purpose of this letter ("Letter Agreement") is to set
  forth binding contract terms between Miranda U.S.A., Inc., a Wyoming corporation
  ("Miranda USA") and its parent corporation, Miranda Gold Corp., a British Columbia
  corporation ("Miranda Gold") (collectively, "Miranda") and Lincoln Gold Corp.,
  a Nevada corporation ("Lincoln"). The properties subject to this Letter Agreement
  are ownership and leasehold interests in unpatented mining claims located in
  Lyon County, Nevada, known collectively as the Hercules Prospect, all as described
  more specifically in Attachment 1 hereto (the "Properties"). 

 1. Grant of Exclusive Right to Acquire Interest in Properties
  and Enter into Joint Venture Agreement. Miranda hereby grants to Lincoln the
  exclusive right to acquire an undivided interest in the Properties, subject
  to the terms and conditions of this Letter Agreement and a Joint Venture Agreement,
  which shall be based upon the Rocky Mountain Mineral Law Foundation's Model
  Exploration, Development and Mine Operating Agreement, 1996 Edition ("Form 5A"),
  as more specifically described in paragraph 4 below. 

 2. Within 5 business days after the signing of this Letter
  Agreement Lincoln shall make a payment to Miranda in the amount of $10,000.

 3. Lincoln Payments and Work Expenditures. In order to maintain
  this Letter Agreement in effect, Lincoln must make the payments and incur the
  work expenditures described in paragraphs 3.A and 3.B below, respectively. If
  Lincoln fails in either case to do so, the sole effect shall be termination
  of this Letter Agreement as of the applicable deadline, except for the BLM and
  County maintenance fees due in 2004 for the claims within the Properties, except
  for the first annual payment due to Miranda by September 8, 2004 and except
  for certain lease and claim maintenance payments as provided in paragraph 3.B
  below. By signing this Letter Agreement Lincoln guarantees that it will pay
  the BLM and County maintenance fees due in 2004 for the claims within the Properties,
  will pay to Miranda the first lease payment by September 8, 2004 

 and will complete the first $75,000 work expenditure or 3600
  feet of drilling, as described in paragraph 3.B below, by September 18, 2004.

 A. Payments: The following payments to Miranda shall be due
  on or before the following dates: 

	Due Date	Amount	 
	September 8, 2004	$	14,000	 
	September 8, 2005	$	16,500	 
	September 8, 2006	$	26,500	 
	September 8, 2007	$	39,000	 
	September 8, 2008 and every year thereafter :	$	3,000	 

 Miranda shall designate an account to which such payments
  may be made by wire transfer. A payment shall be deemed to have been made timely
  by Lincoln if its wire transfer is initiated or its check is transmitted by
  express courier on or before the applicable due date. Miranda shall apply the
  above payments to the extent necessary to timely pay in full all lease and option
  payments due the underlying property owners. The Property is subject to the
  royalty described in paragraph 6 below. Until the parties enter into a Joint
  Venture Agreement pursuant to paragraph 4 below, Lincoln shall have sole responsibility
  and liability for annual BLM and County maintenance fees for unpatented claims
  within the Properties. 

 B. Work Expenditures: Lincoln shall expend the following amounts
  by each of the following dates on Exploration (as defined in Form 5A) operations
  on or for the benefit of the Properties: 

	Deadline	Amount	 
	 	 	 
	September 8, 2004	$75,000 or 3600 feet of reverse circulation drilling, whichever
      is less	 
	September 8, 2005	$150,000	 
	September 8, 2006	$150,000	 
	September 8, 2007 and every year thereafter until commencement of commercial
      production:	$200,000	 

 Excess amounts expended in any year shall credit against subsequent
  years' requirements only until such time as Lincoln has expended $2,500,000
  by September 8, 2009 and earned a 60.0 percent Participating Interest in the
  Joint Venture. Failure to meet the work commitments in any year causes forfeiture
  of a 100% interest in the project back to Miranda. If Miranda elects to be carried
  until Lincoln has earned a 70% interest as described in paragraph 5 below, then
  all property expenditures shall be the responsibility of Lincoln until Lincoln
  has earned its 70% Participating Interest. Failure by Lincoln to meet the work
  commitments in any year causes forfeiture of a 100% interest in the project
  back to Miranda. 

 If this Letter Agreement terminates within 60 days of the
  due dates for any lease or other contractual payments related to the Properties
  or within 90 days of the deadline for annual BLM and County maintenance fees
  for unpatented claims within the Properties, Lincoln shall be obligated to make
  those payments or pay those fees, as applicable. No Properties shall be dropped
  or released while this Letter Agreement remains in effect, unless both Lincoln
  and 

 Miranda approve of same in writing. For purposes of determining
  what charges and costs will credit against the above expenditure requirements,
  the parties shall utilize the Accounting Procedures attached as Exhibit B to
  Form 5A, with the exception that the charge under Subsection 2.13(a)(i) of those
  accounting procedures for Lincoln's home office and general and administrative
  expenses shall be a flat fee of 5.0% of all Allowable Costs (as defined in those
  Accounting Procedures). Lincoln and Miranda agree that this figure may be adjusted
  upward if Lincoln can demonstrate by audited statements that home office and
  general and administrative expenses related to the Joint Venture are greater
  than 5.0% of all Allowable Costs and that the percentage charge should be raised
  by at least 1.0 to a total of 6.0% or higher. Any such increase must be reconfirmed
  on an annual basis, and if not reconfirmed the percentage charge allowed will
  revert to 5.0%. 

 C. Responsibility for Reclamation and Environmental Conditions:
  Unless and until the parties enter into a Joint Venture Agreement pursuant to
  paragraph 4 below, Lincoln shall have sole responsibility and liability for
  reclamation of disturbances of the Properties caused by its Exploration operations
  pursuant to paragraph 3.B above; and Miranda shall retain sole responsibility
  and liability for all other environmental conditions of the Properties. If and
  at such time as the parties enter into the Joint Venture Agreement pursuant
  to paragraph 4 below, the responsibility and liability for the environmental
  conditions of the Properties, regardless of when created, shall be borne by
  the Joint Venture, unless Lincoln continues to work towards a larger Participating
  Interest, in which case Lincoln shall continue to have sole responsibility and
  liability for reclamation of disturbances of the Properties caused by its Exploration
  operations until such time as the parties enter into the Joint Venture Agreement
  with determined Participating Interests. 

 4. Conditions for Entering into Joint Venture Agreement
  and Lincoln's Retention of a 60% 

 Interest. Subject to Miranda’s election in paragraph
  5, at such time as Lincoln has expended $2,500,000 before September 8, 2009:

 A. The parties shall enter into a Joint Venture Agreement,
  based upon Form 5A, which shall be modified so as to be consistent with the
  provisions of this Letter Agreement and to incorporate the terms contained in
  Attachment 2 hereto; 

 B. Lincoln shall contribute as its Initial Contribution pursuant
  to Section 5.1 of Form 5A its undivided 60% interest in the Properties; 

 C. Miranda shall contribute as its Initial Contribution pursuant
  to Section 5.1 of Form 5A its undivided 40% interest in the Properties; and

 D. This Letter Agreement shall terminate, and all subsequent
  operations on and for the benefit of the Properties shall be governed by the
  Joint Venture Agreement. 

 If Lincoln fails to expend at least $2,500,000 by September
  8, 2009, this Letter Agreement shall terminate as of that date. 

 If Miranda elects to allow Lincoln to proceed to a 70% interest,
  as described in paragraph 5 herein, then this Letter Agreement shall continue
  to govern the agreement between the parties until Lincoln has earned a 70% interest,
  and then the Initial Contributions described above in this paragraph 4 shall
  be Lincoln as to 70% and Miranda as to 30%. 

 5. Miranda, at its election, can participate at 40% or elect
  to be carried until Lincoln makes a positive decision to develop what is determined
  by a bankable Feasibility Study and other 

 studies, as required, to be an economic deposit on the Property.
  By delivering the bankable Feasibility Study and other relevant studies and
  information that support Lincoln’s decision to develop, to Miranda, Lincoln
  will have earned an additional 10% interest with the result that it shall own
  a 70% interest and Miranda will own a 30% interest. If Miranda elects to be
  carried until Lincoln has earned a 70% interest as described herein, then all
  property expenditures shall be the responsibility of Lincoln until Lincoln has
  earned its 70% Participating Interest. 

 6. Purchase of Portion of Underlying Royalty. Lincoln and
  Miranda understand that some or all of the Properties are burdened by a royalty
  in net smelter returns, pursuant to the underlying Property Option Agreements.
  A copy of the royalty terms are attached hereto as Attachment 3. Miranda has
  the right to reduce those royalties by 3%, upon payment of $2,180,000 to the
  underlying Optionors/Vendors. If the Management Committee of the Joint Venture
  determines that such a purchase is in the best interests of the Joint Venture,
  it shall direct the Manager to purchase same, and the Manager shall issue a
  cash call to the Participants, who shall provide the funds for that purchase
  in proportion to their respective Participating Interests at the time of that
  cash call. 

 7. Representations and Warranties. 

 A. Miranda and Lincoln hereby incorporate by reference the
  Participants' representations and warranties contained in Section 3.1 of Form
  5A. 

 B. Miranda and Lincoln hereby represent and warrant that they
  have received and reviewed full and complete copies of Form 5A, including all
  Exhibits thereto. 

 8. Insurance and Indemnity. 

 A. Lincoln’s Liability Insurance. Lincoln shall, at Lincoln’s
  sole cost, keep in force during this Agreement term a policy of commercial general
  liability insurance covering property damage and liability for personal injury
  occurring on or about the Property, with limits in the amount of at least One
  Million Dollars ($1,000,000) per occurrence for injuries to or death of person,
  Five Hundred Thousand Dollars ($ 500,000) per occurrence for property damage,
  and with a contractual liability endorsement insuring Lincoln’s performance
  of Lincoln’s indemnity obligations of this Agreement. 

 B. Form and Certificates. The policy of insurance required
  to be carried by Lincoln pursuant to this Section shall be with a company of
  comparable size and capabilities commensurate with industry standards for insuring
  similar operations within the State of Nevada. Such policy shall name Miranda
  as an additional insured and contain a cross liability and severability endorsement.
  Lincoln’s insurance policy shall also be primary insurance without right
  of contribution from any policy carried by Miranda. A certificate of insurance
  and a copy of Lincoln’s insurance policy shall be provided to Miranda before
  any entry by Lincoln or its agents or employees on the Property and shall provide
  that such policy is not subject to cancellation, expiration or change, except
  upon thirty (30) days prior written notice to Miranda. 

 C. Waiver of Subrogation. Lincoln and Miranda each waives
  any and all rights of recovery against the other, and against the partners,
  members, officers, employees, agents and representatives of the other, for loss
  of or damage to the Property or injury to person to the extent such damage or
  injury is covered by proceeds received under any insurance policy carried by
  Miranda or Lincoln and in force at the time of such loss or damage. 

 D. Waiver and Indemnification. Miranda shall not be liable
  to Lincoln and Lincoln waives all claims against Miranda for any injury to or
  death of any person or damage to or destruction of any personal property or
  equipment or theft of property occurring on or about the Property or arising
  from or relating to Lincoln’s business conducted on the Property. Lincoln
  shall defend, indemnify and hold harmless Miranda and its members, officers,
  directors, agents and employees from and against any and all claims, judgments,
  damage, demands, losses, expenses, costs or liability arising in connection
  with injury to person or property from any activity, work, or things done, permitted
  or suffered by Lincoln or Lincoln’s agents, partners, servants, employees,
  invitees or contractors on or about the Property, or from any breach or default
  by Lincoln in the performance of any obligation on the part of Lincoln to be
  performed under the terms of this Agreement (all of the foregoing collectively
  referred to as “General Indemnity Claims”). Lincoln agrees to defend
  all General Indemnity Claims on behalf of Miranda, with counsel reasonably acceptable
  to Miranda. The obligations of Lincoln contained in this Section shall survive
  the expiration of the term or sooner termination of this Agreement. 

 9. “After Acquired Properties” means any and all
  mineral interests staked, located, granted or acquired by or on behalf of either
  of the parties hereto during the currency of this Agreement which are located,
  in whole or in part, within two miles of the existing perimeter of the Properties.

 The parties covenant and agree, each with the other, that
  any and all After Acquired Properties shall be subject to the terms and conditions
  of this Agreement and shall be added to and deemed, for the purposes hereof,
  to be included in the Property. 

 10. Liens and Notices of Non Responsibility. Lincoln agrees
  to keep the Property at all times free and clear of all liens, charges and encumbrances
  of any and every nature and description done made or caused by Lincoln, (except
  for the right of Lincoln to obtain financing for development or production)
  and to pay, and defend, indemnify and hold harmless Miranda from and against,
  all indebtedness and liabilities incurred by or for Lincoln which may or might
  become a lien, charge or encumbrance; except that Lincoln need not discharge
  or release any such lien, charge or encumbrance so long as Lincoln disputes
  or contests the lien, charge or encumbrance and posts a bond sufficient to discharge
  lien acceptable to Miranda. Subject to Lincoln’s right to post a bond in
  accordance with the foregoing, if Lincoln does not within thirty (30) days following
  the imposition of any such lien, charge or encumbrance, cause the same to be
  released of record, Miranda shall have, in addition to Miranda’s contractual
  and legal remedies, the right, but not the obligation, to cause the lien to
  be released by such manner as Miranda deems proper, including payment of the
  claim giving rise to such lien, charge or encumbrance. All sums paid by Miranda
  for and all expenses incurred by it in connection with such purpose, including
  court costs and attorney’s fees, shall be payable by Lincoln to Miranda
  on demand with interest at an interest rate of LIBOR plus three percent (3%)
  per annum. 

 11. "Dollars" and "$". All references to "Dollars" and "$"
  are to United States Dollars. 

 12. Force Majeure. The provisions of Section 19.7 of Form
  5A are incorporated herein by reference with respect to obligations of Lincoln
  and time periods for work expenditures under paragraph 3.B above. The blank
  in that section, for purposes of this Letter Agreement, shall be "two (2)" months.

 13. Miranda’s Right to Data and Confidentiality. During
  the term of this Letter Agreement, Miranda shall have the right to review the
  accounts and all data and information obtained by Lincoln regarding the Properties,
  provided that it provides Lincoln with reasonable advance 

 notice of its desire to inspect same and provided further
  that such information shall be provided to Miranda without any representations
  or warranties by Lincoln as to the accuracy or completeness of same. Lincoln
  shall prepare and deliver to Miranda reports of its progress and findings as
  soon as reasonably possible, if that information is reasonably determined by
  Lincoln or Miranda to be material for disclosure purposes, and in any event
  shall be delivered to Miranda on at least an annual basis. All such information
  shall be kept confidential by the parties and shall not be disclosed except
  as may be necessary to comply with rules or regulations of any governmental
  agency or stock exchange. Miranda shall have the right, subject to reasonable
  advance notice to Lincoln, to prepare and disseminate news releases on the results
  and progress of Exploration operations on the Properties. 

 14. Reports. On or before April 1 following each year during
  which this Agreement is effective, Lincoln shall deliver to Miranda a report
  of all of Lincoln’s activities conducted on the Properties for the previous
  calendar year. 

 15. Inspection. Miranda or Miranda’s duly authorized
  representatives shall be permitted to enter on the Property and Lincoln’s
  workings at all reasonable times for the purpose of inspection, but they shall
  enter on the Property at their own risk and in such a manner which does not
  unreasonably hinder, delay or interfere with Lincoln’s operations. 

 16. Bonds. Lincoln shall secure a bond accepted by the Nevada
  State Office of the Bureau of Land Management prior to any Exploration work
  commencing by Lincoln on the Properties. 

 Alternatively, the Nevada State Office of the Bureau of Land
  Management has accepted a bond secured by certified funds in the amount of $9,800.00
  from Miranda. Lincoln hereby agrees to pay to Miranda the full value of the
  bond on the Properties prior to any Exploration work commencing on the Properties.

 If Lincoln relies on the bond secured by Miranda, then Miranda
  shall repay to Lincoln any amounts refunded from the Bureau of Land Management
  in respect of this bond, upon receipt of such funds by Miranda. 

 17. Governing Law; Jurisdiction and Venue. This Letter Agreement
  shall be governed by Nevada law, and any disputes hereunder shall be resolved
  in Nevada State or Federal court. 

 IN WITNESS WHEREOF, the parties hereto have executed this
  Letter Agreement as of the date first written above. 

 MIRANDA U.S.A., INC., a Wyoming corporation 

 “Kenneth Cunningham”  

 By: Kenneth Cunningham 

  Title: Presient 

  Date of Execution: 

 MIRANDA GOLD CORP., a British Columbia corporation 

 “Kenneth Cunningham  

 By: Kenneth Cunningham 

  Title: President Date of Execution: 

LINCOLN Gold Corp., a Nevada corporation

 By: “Paul Saxton” 

  Title: President 

  Date of Execution: 

 ATTACHMENT 1 to 

  Letter Agreement 

  Between 

  Lincoln Gold Corp., Miranda U.S.A., Inc. 

  and Miranda Gold Corp. 

	 Leases and Agreements 

    [Describe by title, parties and date and list patented and unpatented mining
    claims (with information described in 2 and 3 below) and other properties
    subject thereto] 

      
	 Owned Patented Mining Claims 

    [Describe by claim name and patent and mineral survey numbers] 

      
	 Owned Unpatented Mining Claims 

    [Describe by claim name and county recordation and BLM filing numbers] 

      
	 Other Properties 

    [Provide legal descriptions] 

Schedule “A”

Hercules Property, Lyon County, Nevada

The claims are located in sections 13, 24, 25, and 26, T16N, R22E and Sections 18, 19 and 30, T16N, R23E, MDB&M, Lyon County, Nevada.

	 	COUNTY	BLM
	CLAIM NAME	DOCUMENT

      NUMBER	NMC NUMBER
	Apollo 1	284854	832280
	Apollo 3	284855	832281
	Apollo 5	284856	832282
	Apollo 7	233916	804993
	Apollo 9	284857	832283
	Apollo 11	284858	832284
	Apollo 16	233918	804994
	Apollo 17	233919	804995
	Apollo 18	284859	832285
	Apollo 19	233920	804996
	Apollo 20	284860	832286
	Apollo 21	233921	804997
	Apollo 22	284861	832287
	Apollo 23	284862	832288
	Apollo 24	233922	804998
	Apollo 25	284863	832289
	Hercules 1	284864	832290
	Hercules 2	233902	804978
	Hercules 3	233903	804979
	Hercules 4	284865	832291
	Hercules 5	284866	832292
	Hercules 6	284867	832293
	Hercules 7	286114	832294
	Hercules 8	286115	832295
	Hercules 12	284870	832296
	Hercules 13	284871	832297
	Hercules 14	284872	832298
	Hercules 19	284873	832299
	Hercules 44	284874	832300
	Hercules 45	284875	832301

 

	Hercules 46	284876	832302
	Hercules 47	284877	832303

 

	Hercules 48	233908	804984
	Hercules 49	233909	804985
	Hercules 50	284878	832304
	Hercules 51	284879	832305
	Hercules 52	233911	804987
	Hercules 53	233912	804988
	Hercules 54	284880	832306
	Hercules 55	284881	832307

 ATTACHMENT 2 

  to 

  Letter Agreement 

  Between 

  Lincoln Gold Corp., Miranda U.S.A., Inc. and Miranda Gold Corp. 

 Set forth below are provisions to be inserted in the Sections
  set forth below of Form 5A: 

 Items marked * represent the most substantive provisions.

 1. Section 2.2: Name under which the Assets are to be managed
  and operated by the Participants. 

 *2. Section 2.5: Maximum number of consecutive days that production
  in commercial quantities can be halted, but that Products still be deemed to
  be produced on a "continuous basis" for purposes of extending the Agreement's
  term. 

 3. Sections 3.2(d) and (e): Assessment year through which
  the Participant that is the owner of the unpatented claims represents assessment
  work and maintenance fees have been timely paid. 

 *4. Section 3.7(a)(v): The aggregate dollar amount that will
  be deemed to constitute a "Material Loss" for indemnification purposes. 

 *5. Sections 5.1(a) and (b): Dollar amounts to be credited
  to the Participants' respective Equity Accounts as their Initial Contributions.
  In the case of the Participant that is not contributing the Properties, this
  dollar amount is the earn-in funding requirement. 

 6. Section 5.2(b): Time period during which the Participant
  that is not contributing the Properties may withdraw if it determines that conditions
  may exist on the Properties that, in its judgment, may result in violation of
  Environmental Laws. 

 *7. Section 6.3(a): Participating Interest percentage at which
  a Participant shall be deemed to have withdrawn from the Business and be required
  to relinquish its Participating Interest. Also, percentages of Net Proceeds
  and of the Reduced Participant's Equity Account balance as a ceiling on dollar
  amount of Net Proceeds to be paid to that Participant. 

 *8. Section 6.3(b): Percentage thresholds for recalculations
  of adjustments in Participating Interest percentages if money spent by the Non-Reduced
  Participant varies from original budgeted amount. 

 9. Section 7.1: Numbers of members on Management Committee
  and members representing each party. 

 *10. Section 7.2: The Participating Interest percentage that
  will determine the decisions of the Management Committee. 

 11. Section 7.3(a): Location of Management Committee meetings
  and number of days of advance notice of same that Manager is to provide to the
  Participants. 

 12. Section 7.3(b): The number of days advance notice either
  Participant may call a meeting if a prior meeting did not have a quorum. 

 13. Section 7.3(c): The number of days advance notice for
  putting items on the agenda and number of days for Manager to prepare and distribute
  minutes of meetings. 

 14. Section 8.1: Name of Manager. [Lincoln] 

 *15. Section 8.2(g): Dollar threshold of Manager's expenditures
  that requires prior approval of non-managing Participant. 

 *16. Section 8.2(i): Maximum dollar value of Assets that can
  be disposed of by Manager without non-manager's consent. 

 17. Section 8.2(o): Time period after completion of each Program
  and Budget in which Manager must submit a detailed final report. 

 18. Section 8.4: Number of months prior notice the Manager
  must provide on resignation and number of days in which the other Participant
  shall have the right to elect to become the Manager. 

 19. Section 8.4(a): The Participating Interest percentage
  threshold below which the Manager shall be deemed to have withdrawn. 

 20. Section 9.3: The number of months prior to the expiration
  of a Program and Budget that a new proposed Program and Budget for the succeeding
  year must be prepared by the Manager and submitted to the Management Committee
  for review and consideration. 

 21. Section 9.4: Time period after submission of the proposed
  Program and Budget in which Participant must make its election in writing to
  approve, modify or reject the proposed Program and Budget. 

 22. Section 9.6(a): Time period after conclusion of a Program
  and Budget in which the Manager must report the amount of money spent under
  that Budget to a Participant who had elected not to participate in that Budget.

 *23. Section 9.6(c): Percentages and time periods for a Reduced
  Participant to reinstate its Participating Interest if the Manager expends a
  certain amount less than the Adopted Budget. 

 24. Section 9.7(a): Time period for Manager to submit a Pre-Feasibility
  Study Program and Budget to the Management Committee after the Committee adopts
  a proposal for same. 

 25. Section 9.8(f): Time period after receipt of a Pre-Feasibility
  Study in which Management Committee must convene a meeting for purposes of reviewing
  same. 

 *26. Section 9.9: Time period after selection of an Approved
  Alternative in which Manager must submit a Program and Budget to the Management
  Committee for preparation of a Feasibility Study. 

 27. Section 9.10(a): Amount of time Manager must wait after
  receipt of a Feasibility Study before submitting a Program and Budget that includes
  Development to the Management Committee. 

 28. Section 9.10(b): Time period for Manager to submit a Bid
  Report to the Management Committee and the percentage limitation on Development
  costs over adopted Program and Budget. 

 29. Section 9.11: Time deadline for Manager's submission of
  Program and Budget for Expansion or Modification after its receipt of a Feasibility
  Study for same. 

 30. Section 9.12: Percentage limitation on Budget overruns.
  [10%] 

 31. Section 10.2: Number of days working capital to be maintained
  by Manager. 

 32. Section 10.3: Interest rate to be applied to delinquent
  cash call payments. [N/A] 

 *33. Sections 10.5(b)(i)(A) and (B): Default percentages for
  calculating dilution. [N/A] 

 *34. Section 10.5(b)(ii): Percentages of Net Proceeds to be
  received by the defaulting Participant in the event of its default relating
  to a Program and Budget cash call. 

 *35. Section 10.5(c): Number of days a default must run before
  a non-defaulting Participant shall have the right to elect to purchase the defaulting
  Participant's Participating Interest, and the percentage of fair market value
  for which that interest may be purchased. [N/A] 

 36. Section 10.6(a): Number of days after the end of each
  calendar year in which an audit must be completed. 

 37. Section 12.2: Length of time that must run before the
  Agreement is terminated due to deadlock because of the Management Committee's
  failure to adopt a Program and Budget. 

 *38. Section 12.6: Number of months in which a withdrawing
  Participant must not acquire any properties within the Area of Interest. 

 39. Sections 13.2, 13.3 and 13.4: Time periods for notice
  and exercise of option with respect to acquisitions within Area of Interest.

 40. Sections 16.2(g)(ii): Time period within which a public
  auction of an encumbered Participating Interest must be held. 

 41. Section 17.1: Governing law. [Nevada] 

 42. Section 17.2: Specification of forum? [Nevada-courts]

 43. Section 17.3: Arbitration? 

 44. Section 19.1: Addresses for notices. 

 45. Section 19.7: Time period that must run before a delay
  caused by governmental approvals can constitute Force Majeure. 

 46. Exhibit B – Accounting Procedures, Section 2.13(a):
  Percentages for Management Fees during Exploration, Development and Major Construction
  and Mining Phases. 

 47. Exhibit D – Definitions – "Expansion" or "Modification":
  Percentage by which anticipated costs of expansion or modification exceed original
  capital costs of Development, in order to be deemed to be "material". 

 *48. Exhibit F – Insurance: The minimum levels of different
  insurances. 

 49. Exhibit H – Preemptive Rights: Time periods for election
  to purchase and percentage thresholds for the transferring Participants and
  transferee's Net Worth. 

 ATTACHMENT 3 

  to 

  Letter Agreement 

  Between 

  Lincoln Gold Corp., Miranda U.S.A., Inc. 

  and Miranda Gold Corp. 

[Attach Copy of Royalty Instrument]

SCHEDULE “B” 

“Net Smelter Return” shall mean the aggregate proceeds received by the Optionee from time to time from any smelter or other purchaser from the sale of any ores, concentrates, metals or any other material of commercial value produced by and
from the Property after deducting from such proceeds the following charges only to the extent that they are not deducted by the smelter or other purchaser in computing the proceeds:

	 	(a)

        	The cost of transportation of the ores, concentrates or metals
      from the Property to such smelter or other purchaser, including related
      insurance;
  
	 	(b)	Smelting and refining charges including penalties; and

 The Optionee shall reserve and pay to the Optionor a NSR equal
  to three (3%) percent of Net Smelter Return. 

 Payment of NSR payable to the Optionor hereunder shall be
  made quarterly within thirty (30) days after the end of each calendar quarter
  during which the Optionee receives Net Smelter Returns in U.S. dollars or in
  kind bullion at the discretion of the Optionor. Within sixty (60) days after
  the end of each calendar quarter for which the NSR are payable to the Optionor,
  the records relating to the calculation of NSR for such year shall be audited
  by the Optionee and any adjustments in the payments of NSR to the Optionor shall
  be made forthwith after completion of the audit. All payments of NSR to the
  Optionor for a calendar year shall be deemed final and in full satisfaction
  of all obligations of the Optionee in respect thereof if such payments or the
  calculations thereof are not disputed by the Optionor within sixty (60) days
  after receipt by the Optionor of the same audited statement. The Optionee shall
  maintain accurate records relevant to the determination of the NSR and the Optionor,
  or its authorized agent, shall be permitted the right to examine such records
  at all reasonable times.Filed by Automated Filing Services Inc. (604) 609-0244 - Lincoln Gold Corp. - Exhibit 10.5

 LINCOLN GOLD CORPORATION  

  2004 STOCK OPTION PLAN  

 ARTICLE 1. THE PLAN  

1.1          
  Title  

 This plan is entitled the “2004 Stock Option Plan”
  (the "Plan") of Lincoln Gold Corporation, a Nevada corporation (the "Company”).

 1.2           Purpose

 The purpose of the Plan is to enhance the long-term stockholder
  value of the Company by offering opportunities to directors, officers, employees
  and eligible consultants of the Company and any Related Company, as defined
  below, to acquire and maintain stock ownership in the Company in order to give
  these persons the opportunity to participate in the Company's growth and success,
  and to encourage them to remain in the service of the Company or a Related Company.

ARTICLE 2. DEFINITIONS

 The following terms will have the following meanings in the
  Plan: 

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

 "Cause," unless otherwise defined in the instrument
  evidencing the award or in an employment or services agreement between the Company
  or a Related Company and a Participant, means a material breach of the employment
  or services agreement, dishonesty, fraud, misconduct, unauthorized use or disclosure
  of confidential information or trade secrets, or conviction or confession of
  a crime punishable by law (except minor violations), in each case as determined
  by the Plan Administrator, and its determination shall be conclusive and binding.

 "Code" means the Internal Revenue Code of 1986, as
  amended from time to time. 

 "Common Stock" means the common stock, par value $0.001
  per share, of the Company. 

 "Consultant Participant" means a Participant who is
  defined as a Consultant Participant in Article 5. 

 "Corporate Transaction," unless otherwise defined in
  the instrument evidencing the Option or in a written employment or services
  agreement between the Company or a Related Company and a Participant, means
  consummation of either. 

	(a)	a merger or consolidation of the Company
        with or into any other corporation, entity or person or

	 	 
	(b)	a sale, lease, exchange or other transfer
        in one transaction or a series of related transactions of all or substantially
        all the Company's outstanding securities or all or substantially all the
        Company's assets; provided, however, that a Corporate Transaction shall
        not include a Related Party Transaction.

 "Disability," unless otherwise defined by the
  Plan Administrator, means a mental or physical impairment of the Participant
  that is expected to result in death or that has lasted or is expected to last
  for a continuous period of 12 months or more and that causes the Participant
  to be unable, in the opinion of the Company, to perform his or her duties for
  the Company or a Related Company and to be engaged in any substantial gainful
  activity. 

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 "Employment Termination Date" means, with respect to
  a Participant, the first day upon which the Participant no longer has an employment
  or service relationship with the Company or any Related Company. 

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

 "Fair Market Value" means the per share value of the
  Common Stock determined as follows (a) if the Common Stock is listed on an established
  stock exchange or exchanges or the NASDAQ National Market, the closing price
  per share on the last trading day immediately preceding such date on the principal
  exchange on which it is traded or as reported by NASDAQ; (b) if the Common Stock
  is not then listed on an exchange or the NASDAQ National Market, but is quoted
  on the NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or the
  National Quotation Bureau pink sheets, the average of the closing bid and asked
  prices per share for the Common Stock as quoted by NASDAQ or the National Quotation
  Bureau, as the case may be, on the last trading day immediately preceding such
  date; or (c) if there is no such reported market for the Common Stock for the
  date in question, then an amount determined in good faith by the Plan Administrator.

 "Grant Date" means the date on which the Plan Administrator
  completes the corporate action relating to the grant of an Option or such later
  date specified by the Plan Administrator, and on which all conditions precedent
  to the grant have been satisfied, provided that conditions to the exercisability
  or vesting of Options shall not defer the Grant Date. 

 "Incentive Stock Option" means an Option granted with
  the intention, as reflected in the instrument evidencing the Option, that it
  qualify as an "incentive stock option" as that term is defined in Section 422
  of the Code. 

 "Nonqualified Stock Option" means an Option other than
  an Incentive Stock Option. 

"Option" means the right to purchase Common Stock granted
  under Article 7. 

"Option Expiration Date" has the meaning set forth in
  Article 7.6. 

 "Option Term" has the meaning set forth in Article
  7.3. 

 "Participant" means the person to whom an Option is
  granted and who meets the eligibility requirements imposed by Article 5, including
  Consultant Participants, as defined in Article 5. 

 "Plan Administrator" has the meaning set forth in Article
  3.1. 

 "Related Company" means any entity that, directly or
  indirectly, is in control of or is controlled by the Company. 

 "Related Party Transaction" means (a) a merger or consolidation
  of the Company in which the holders of shares of Common Stock immediately prior
  to the merger hold at least a majority of the shares of Common Stock in the
  Successor Corporation immediately after the merger; (b) a sale, lease, exchange
  or other transaction in one transaction or a series of related transactions
  of all or substantially all the Company's assets to a wholly-owned subsidiary
  corporation; (c) a mere reincorporation of the Company; or (d) a transaction
  undertaken for the sole purpose of creating a holding company that will be owned
  in substantially the same proportion by the persons who held the Company's securities
  immediately before such transaction. 

 "Retirement," unless otherwise defined by the
  Plan Administrator from time to time for purposes of the Plan, means retirement
  on or after the individual's normal retirement date under the Company's 401(k)
  plan or other similar successor plan applicable to salaried employees. 

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 "Securities Act" means the Securities Act of 1933,
  as amended. 

 "Successor Corporation" has the meaning set forth in
  Article 11.3.1. 

 "Vesting Commencement Date" means the Grant Date or
  such other date selected by the Plan Administrator as the date from which the
  Option begins to vest for purposes of Article 7.4. 

ARTICLE 3. ADMINISTRATION

 3.1         
  Plan Administrator  

 The Plan shall be administered by the Board or a committee
  appointed by, and consisting of two or more members of, the Board (the "Plan
  Administrator"). If and so long as the Common Stock is registered under Section
  12(b) or 12(g) of the Exchange Act, the Board shall consider in selecting the
  members of any committee acting as Plan Administrator, with respect to any persons
  subject or likely to become subject to Section 16 of the Exchange Act, the provisions
  regarding (a) "outside directors" as contemplated by Section 162(m) of the Code
  and (b) "nonemployee directors" as contemplated by Rule 16b-3 under the Exchange
  Act. Committee members shall serve for such term as the Board may determine,
  subject to removal by the Board at any time. At any time when no committee has
  been appointed to administer the Plan, then the Board will be the Plan Administrator.

 3.2           Administration
  and Interpretation by Plan Administrator  

 Except for the terms and conditions explicitly set forth in
  the Plan, the Plan Administrator shall have exclusive authority, in its discretion,
  to determine all matters relating to Options under the Plan, including the selection
  of individuals to be granted Options, the type of Options, the number of shares
  of Common Stock subject to an Option, all terms, conditions, restrictions and
  limitations, if any, of an Option and the terms of any instrument that evidences
  the Option. The Plan Administrator shall also have exclusive authority to interpret
  the Plan and the terms of any instrument evidencing the Option and may from
  time to time adopt and change rules and regulations of general application for
  the Plan's administration. The Plan Administrator's interpretation of the Plan
  and its rules and regulations, and all actions taken and determinations made
  by the Plan Administrator pursuant to the Plan, shall be conclusive and binding
  on all parties involved or affected. The Plan Administrator may delegate administrative
  duties to such of the Company's officers as it so determines. 

 ARTICLE 4. STOCK SUBJECT TO THE PLAN  

 4.1           Authorized
  Number of Shares  

 Subject to adjustment from time to time as provided in Article
  11.1, the number of shares of Common Stock available for issuance under the
  Plan shall be 2,500,000 shares. 

 4.2          
  Reuse of Shares  

 Any shares of Common Stock that have been made subject to
  an Option that cease to be subject to the Option (other than by reason of exercise
  or settlement of the Option to the extent it is exercised for or settled in
  shares) shall again be available for issuance in connection with future grants
  of Options under the Plan. In the event shares issued under the Plan are reacquired
  by the Company pursuant to any forfeiture provision or right of repurchase,
  such shares shall again be available for the purposes of the Plan; provided,
  however, that the maximum number of shares that may be issued upon the exercise
  of Incentive Stock Options shall equal the share number stated in Article 4.1,
  subject to adjustment from time to time as provided in Article 11.1; and 

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provided, further, that for purposes of Article 4.3, any such
  shares shall be counted in accordance with the requirements of Section 162(m)
  of the Code.

 4.3          
  Limitations

 Subject to adjustment from time to time as provided in Article
  11.1, not more than an aggregate of 2,500,000 shares shall be available for
  issuance pursuant to grants of Stock Options under the Plan.

 ARTICLE 5. ELIGIBILITY

 An Option may be granted to any officer, director or employee
  of the Company or a Related Company that the Plan Administrator from time to
  time selects. An Option may also be granted to any consultant, agent, advisor
  or independent contractor who provides services to the Company or any Related
  Company (a “Consultant Participant”), so long as such Consultant Participant
  (a)  is a natural person or an alter ego entity of the natural person providing
  the services; (b) renders bona fide services that are not in connection
  with the offer and sale of the Company's securities in a capital-raising transaction;
  and (c) does not directly or indirectly promote or maintain a market for the
  Company's securities.

 ARTICLE 6. OPTIONS

 6.1          
  Form and Grant of Options

 The Plan Administrator shall have the authority, in its sole
  discretion, to determine the type or types of Options to be granted under the
  Plan. Options may be granted singly or in combination.

 6.2          
  Settlement of Options

 The Company may settle Options through the delivery of shares
  of Common Stock, the granting of replacement Options or any combination thereof
  as the Plan Administrator shall determine. Any Option settlement, including
  payment deferrals, may be subject to such conditions, restrictions and contingencies
  as the Plan Administrator shall determine. The Plan Administrator may permit
  or require the deferral of any Option payment, subject to such rules and procedures
  as it may establish, which may include provisions for the payment or crediting
  of interest, or dividend equivalents, including converting such credits into
  deferred stock equivalents.

 ARTICLE 7. GRANTS OF OPTIONS

 7.1          
  Grant of Options

 The Plan Administrator shall have the authority, in its sole
  discretion, to grant Options as Incentive Stock Options or as Nonqualified Stock
  Options, which shall be appropriately designated.

 7.2          
  Option Exercise Price

 The exercise price for shares purchased under an Option shall
  be as determined by the Plan Administrator, provided that:

 (a)        the exercise
  price for Options granted to Participants other than Consultant Participants
  but shall not be less than the minimum exercise price required by Article 8.3
  with respect to Incentive Stock Options and shall not be less than 85% of Fair
  Market Value of the Common Stock on the Grant Date with respect to Nonqualified
  Stock Options;

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 (b)        the exercise
  price for Options granted to Consultant Participants shall not be less than
  the lesser of 85% of Fair Market Value of the Common Stock on the Grant Date.

 7.3          
  Term of Options  

 Subject to earlier termination in accordance with the terms
  of the Plan and the instrument evidencing the Option, the maximum term of an
  Option (the "Option Term") shall be as established for that Option by the Plan
  Administrator or, if not so established, shall be ten years from the Grant Date.

 7.4          
  Exercise of Options  

 The Plan Administrator shall establish and set forth in each
  instrument that evidences an Option the time at which, or the installments in
  which, the Option shall vest and become exercisable, any of which provisions
  may be waived or modified by the Plan Administrator at any time. 

 The Plan Administrator, in its sole discretion, may adjust
  the vesting schedule of an Option held by a Participant who works less than
  "full-time" as that term is defined by the Plan Administrator or who takes a
  Company-approved leave of absence. 

 To the extent an Option has vested and become exercisable,
  the Option may be exercised in whole or from time to time in part by delivery
  to the Company of a written stock option exercise agreement or notice, in a
  form and in accordance with procedures established by the Plan Administrator,
  setting forth the number of shares with respect to which the Option is being
  exercised, the restrictions imposed on the shares purchased under such exercise
  agreement, if any, and such representations and agreements as may be required
  by the Plan Administrator, accompanied by payment in full as described in Article
  7.5. An Option may be exercised only for whole shares and may not be exercised
  for less than a reasonable number of shares at any one time, as determined by
  the Plan Administrator. 

 7.5          
  Payment of Exercise Price  

 The exercise price for shares purchased under an Option shall
  be paid in full to the Company by delivery of consideration equal to the product
  of the Option exercise price and the number of shares purchased. Such consideration
  must be paid before the Company will issue the shares being purchased and must
  be in a form or a combination of forms acceptable to the Plan Administrator
  for that purchase, which forms may include: 

	(a)	cash;

	 	 
	(b)	check;

	 	 
	(c)	tendering (either actually or, if the
        Common Stock is registered under Section 12(b) or 12(g) of the Exchange
        Act, by attestation) shares of Common Stock already owned by the Participant
        for at least six months (or any shorter period necessary to avoid a charge
        to the Company's earnings for financial reporting purposes) that on the
        day prior to the exercise date have a Fair Market Value equal to the aggregate
        exercise price of the shares being purchased under the Option; or

	 	 
	(d)	if the Common Stock is registered under
        Section 12(b) or 12(g) of the Exchange Act, delivery of a properly executed
        exercise notice, together with irrevocable instructions to a brokerage
        firm designated by the Company to deliver promptly to the Company the
        aggregate amount of sale or loan proceeds to pay the Option exercise price
        and any withholding tax obligations that may arise in connection with
        the exercise, all in accordance with the regulations of the Federal Reserve
        Board.

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 7.6           Post-Termination
  Exercises  

 The Plan Administrator shall establish and set forth in each
  instrument that evidences an Option whether the Option shall continue to be
  exercisable, and the terms and conditions of such exercise, if the Participant
  ceases to be employed by, or to provide services to, the Company or a Related
  Company, which provisions may be waived or modified by the Plan Administrator
  at any time. If not so established in the instrument evidencing the Option,
  the Option shall be exercisable according to the following terms and conditions,
  which may be waived or modified by the Plan Administrator at any time: 

	(a)	Except as otherwise set
        forth in this Article 7.6, any portion of an Option that is not vested
        and exercisable on the Employment Termination Date shall expire on such
        date.

	 	 
	(b)	Any portion of an Option
        that is vested and exercisable on the Employment Termination Date shall
        expire on the earliest to occur of

	 	 	 
	 	(i)
	 if the Participant's Employment Termination
        Date occurs for reasons other than Cause, Retirement, Disability or death,
        the day which is three months after such Employment Termination Date;

	 	 	 
	 	(ii)
	if the Participant's Employment Termination
        Date occurs by reason of Retirement, Disability or death, the one-year
        anniversary of such Employment Termination Date; and

	 	 	 
	 	(iii)
	the last day of the Option Term (the
        "Option Expiration Date").

	 	 
	 	Notwithstanding the foregoing,
        if the Participant dies after his or her Employment Termination Date but
        while an Option is otherwise exercisable, the portion of the Option that
        is vested and exercisable on such Employment Termination Date shall expire
        upon the earlier to occur of (y) the Option Expiration Date and (z) the
        one-year anniversary of the date of death, unless the Plan Administrator
        determines otherwise.

       Also notwithstanding the foregoing, in case of termination
        of the Participant's employment or service relationship for Cause, all
        Options granted to that Participant shall automatically expire upon first
        notification to the Participant of such termination, unless the Plan Administrator
        determines otherwise. If a Participant's employment or service relationship
        with the Company is suspended pending an investigation of whether the
        Participant shall be terminated for Cause, all the Participant's rights
        under any Option shall likewise be suspended during the period of investigation.
        If any facts that would constitute termination for Cause are discovered
        after the Participant's relationship with the Company or a Related Company
        has ended, any Option then held by the Participant may be immediately
        terminated by the Plan Administrator, in its sole discretion.

	 	 
	(c)	A Participant's transfer
        of employment or service relationship between or among the Company and
        any Related Company, or a change in status from an employee to a consultant,
        agent, advisor or independent contractor or a change in status from a
        consultant, agent, advisor or independent contractor to an employee, shall
        not be considered a termination of employment or service relationship
        for purposes of this Article 7. Unless the Plan Administrator determines
        otherwise, a termination of employment or service relationship shall be
        deemed to occur if a Participant's employment or service relationship
        is with an entity that has ceased to be a Related Company.

	 	 
	(d)	The effect of a Company-approved
        leave of absence on the application of this Article 7 shall be determined
        by the Plan Administrator, in its sole discretion.

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	(e)	If a Participant's employment or service relationship
        with the Company or a Related Company terminates by reason of Disability
        or death, the Option shall become fully vested and exercisable for all
        the shares subject to the Option. Such Option shall remain exercisable
        for the time period set forth in this Article 7.6.

 ARTICLE 8. INCENTIVE STOCK OPTION LIMITATIONS  

 Notwithstanding any other provisions of the Plan, and to the
  extent required by Section 422 of the Code, Incentive Stock Options shall be
  subject to the following additional terms and conditions: 

 8.1          
  Dollar Limitation  

 To the extent the aggregate Fair Market Value (determined
  as of the Grant Date) of Common Stock with respect to which Incentive Stock
  Options are exercisable for the first time during any calendar year (under the
  Plan and all other stock option plans of the Company) exceeds $100,000, such
  portion in excess of $100,000 shall be treated as a Nonqualified Stock Option.
  In the event the Participant holds two or more such Options that become exercisable
  for the first time in the same calendar year, such limitation shall be applied
  on the basis of the order in which such Options are granted. 

 8.2          
  Eligible Employees  

 Individuals who are not employees of the Company or one of
  its parent corporations or subsidiary corporations may not be granted Incentive
  Stock Options. 

 8.3          
  Exercise Price  

 The exercise price of an Incentive Stock Option shall be at
  least 100% of the Fair Market Value of the Common Stock on the Grant Date, and
  in the case of an Incentive Stock Option granted to a Participant who owns more
  than 10% of the total combined voting power of all classes of the stock of the
  Company or of its parent or subsidiary corporations (a "Ten Percent Stockholder"),
  shall not be less than 110% of the Fair Market Value of the Common Stock on
  the Grant Date. The determination of more than 10% ownership shall be made in
  accordance with Section 422 of the Code. 

 8.4          
  Exercisability  

 An Option designated as an Incentive Stock Option shall cease
  to qualify for favorable tax treatment as an Incentive Stock Option to the extent
  it is exercised (if permitted by the terms of the Option) (a) more than three
  months after the Employment Termination Date if termination was for reasons
  other than death or disability, (b) more than one year after the Employment
  Termination Date if termination was by reason of disability, or (c) after the
  Participant has been on leave of absence for more than 90 days, unless the Participant's
  reemployment rights are guaranteed by statute or contract. 

 8.5          
  Taxation of Incentive Stock Options  

 In order to obtain certain tax benefits afforded to Incentive
  Stock Options under Section 422 of the Code, the Participant must hold the shares
  acquired upon the exercise of an Incentive Stock Option for two years after
  the Grant Date and one year after the date of exercise. 

 A Participant may be subject to the alternative minimum tax
  at the time of exercise of an Incentive Stock Option. The Participant shall
  give the Company prompt notice of any disposition of shares acquired on the
  exercise of an Incentive Stock Option prior to the expiration of such holding
  periods. 

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 8.6           Code Definitions
   

 For the purposes of this Article 8, "parent corporation,"
  "subsidiary corporation" and "disability" shall have the meanings attributed
  to those terms for purposes of Section 422 of the Code. 

 ARTICLE 9. WITHHOLDING  

 9.1           General
   

 The Company may require the Participant to pay to the Company
  the amount of any taxes that the Company is required by applicable federal,
  state, local or foreign law to withhold with respect to the grant, vesting or
  exercise of an Option. The Company shall not be required to issue any shares
  Common Stock under the Plan until such obligations are satisfied. 

 9.2          
  Payment of Withholding Obligations in Cash or Shares  

 The Plan Administrator may permit or require a Participant
  to satisfy all or part of his or her tax withholding obligations by (a) paying
  cash to the Company, (b) having the Company withhold from any cash amounts otherwise
  due or to become due from the Company to the Participant, (c) having the Company
  withhold a portion of any shares of Common Stock that would otherwise be issued
  to the Participant having a value equal to the tax withholding obligations (up
  to the employer's minimum required tax withholding rate), or (d) surrendering
  any shares of Common Stock that the Participant previously acquired having a
  value equal to the tax withholding obligations (up to the employer's minimum
  required tax withholding rate to the extent the Participant has held the surrendered
  shares for less than six months). 

ARTICLE 10. ASSIGNABILITY

 Neither an Option nor any interest therein may be assigned,
  pledged or transferred by the Participant or made subject to attachment or similar
  proceedings other than by will or by the applicable laws of descent and distribution,
  and, during the Participant's lifetime, such Options may be exercised only by
  the Participant. Notwithstanding the foregoing, and to the extent permitted
  by Section 422 of the Code, the Plan Administrator, in its sole discretion,
  may permit a Participant to assign or transfer an Option or may permit a Participant
  to designate a beneficiary who may exercise the Option or receive payment under
  the Option after the Participant's death; provided, however, that any Option
  so assigned or transferred shall be subject to all the terms and conditions
  of the Plan and those contained in the instrument evidencing the Option. 

ARTICLE 11. ADJUSTMENTS

 11.1          Adjustment of
  Shares  

 In the event, at any time or from time to time, a stock dividend,
  stock split, spin-off, combination or exchange of shares, recapitalization,
  merger, consolidation, distribution to stockholders other than a normal cash
  dividend, or other change in the Company's corporate or capital structure, including,
  without limitation, a Related Party Transaction, results in (a) the outstanding
  shares of Common Stock, or any securities exchanged therefor or received in
  their place, being exchanged for a different number or kind of securities of
  the Company or of any other corporation or (b) new, different or additional
  securities of the Company or of any other corporation being received by the
  holders of shares of Common Stock of the Company, then the Plan Administrator
  shall make proportional adjustments in (i) the maximum number and kind of securities
  subject to the Plan and issuable as Incentive Stock Options as set forth in
  Article 4 and the maximum number and 

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 kind of securities that may be made subject to Options and
  to Options to any individual as set forth in Article 4.3, and (ii) the number
  and kind of securities that are subject to any outstanding Award and the per
  share price of such securities, without any change in the aggregate price to
  be paid therefor. The determination by the Plan Administrator as to the terms
  of any of the foregoing adjustments shall be conclusive and binding. Notwithstanding
  the foregoing, a dissolution or liquidation of the Company or a Corporate Transaction
  shall not be governed by this Article 11.1 but shall be governed by Articles
  11.2 and 11.3, respectively. 

 11.2         
  Dissolution or Liquidation  

 To the extent not previously exercised or settled, and unless
  otherwise determined by the Plan Administrator in its sole discretion, Options
  shall terminate immediately prior to the dissolution or liquidation of the Company.
  To the extent a forfeiture provision or repurchase right applicable to an Option
  has not been waived by the Plan Administrator, the Option shall be forfeited
  immediately prior to the consummation of the dissolution or liquidation. 

 11.3          Corporate Transaction
   

Options 

	(a)	In the event of a Corporate Transaction,
        except as otherwise provided in the instrument evidencing an Option (or
        in a written employment or services agreement between a Participant and
        the Company or Related Company) and except as provided in subsection

        (b) below, each outstanding Option shall be assumed or an equivalent option
        or right substituted by the surviving corporation, the successor corporation
        or its parent corporation, as applicable (the "Successor Corporation").

	 	 
	(b)	If, in connection with a Corporate Transaction,
        the Successor Corporation refuses to assume or substitute for an Option,
        then each such outstanding Option shall become fully vested and exercisable
        with respect to 100% of the unvested portion of the Option. In such case,
        the Plan Administrator shall notify the Participant in writing or electronically
        that the unvested portion of the Option specified above shall be fully
        vested and exercisable for a specified time period. At the expiration
        of the time period, the Option shall terminate, provided that the Corporate
        Transaction has occurred.

	 	 
	(c)	For the purposes of this Article 11.3,
        the Option shall be considered assumed or substituted for if following
        the Corporate Transaction the option or right confers the right to purchase
        or receive, for each share of Common Stock subject to the Option immediately
        prior to the Corporate Transaction, the consideration (whether stock,
        cash, or other securities or property) received in the Corporate Transaction
        by holders of Common Stock for each share held on the effective date of
        the transaction (and if holders were offered a choice of consideration,
        the type of consideration chosen by the holders of a majority of the outstanding
        shares); provided, however, that if such consideration received in the
        Corporate Transaction is not solely common stock of the Successor Corporation,
        the Plan Administrator may, with the consent of the Successor Corporation,
        provide for the consideration to be received upon the exercise of the
        Option, for each share of Common Stock subject thereto, to be solely common
        stock of the Successor Corporation substantially equal in fair market
        value to the per share consideration received by holders of Common Stock
        in the Corporate Transaction. The determination of such substantial equality
        of value of consideration shall be made by the Plan Administrator and
        its determination shall be conclusive and binding.

	 	 
	(d)	All Options shall terminate and cease
        to remain outstanding immediately following the Corporate Transaction,
        except to the extent assumed by the Successor Corporation.

 11.4          Further Adjustment
  of Options  

 9 

 Subject to Articles 11.2 and 11.3, the Plan Administrator
  shall have the discretion, exercisable at any time before a sale, merger, consolidation,
  reorganization, liquidation or change of control of the Company, as defined
  by the Plan Administrator, to take such further action as it determines to be
  necessary or advisable, and fair and equitable to the Participants, with respect
  to Options. Such authorized action may include (but shall not be limited to)
  establishing, amending or waiving the type, terms, conditions or duration of,
  or restrictions on, Options so as to provide for earlier, later, extended or
  additional time for exercise, lifting restrictions and other modifications,
  and the Plan Administrator may take such actions with respect to all Participants,
  to certain categories of Participants or only to individual Participants. The
  Plan Administrator may take such action before or after granting Options to
  which the action relates and before or after any public announcement with respect
  to such sale, merger, consolidation, reorganization, liquidation or change of
  control that is the reason for such action. 

 11.5         
  Limitations  

 The grant of Options shall in no way affect the Company's
  right 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. 

 11.6         
  Fractional Shares  

 In the event of any adjustment in the number of shares covered
  by any Option, each such Option shall cover only the number of full shares resulting
  from such adjustment. 

 ARTICLE 12. AMENDMENT AND TERMINATION  

 12.1         
  Amendment or Termination of Plan  

 The Board may suspend, amend or terminate the Plan or any
  portion of the Plan at any time and in such respects as it shall deem advisable;
  provided, however, that to the extent required for compliance with Section 422
  of the Code or any applicable law or regulation, stockholder approval shall
  be required for any amendment that would (a) increase the total number of shares
  available for issuance under the Plan, (b) modify the class of employees eligible
  to receive Options, or (c) otherwise require stockholder approval under any
  applicable law or regulation. Any amendment made to the Plan that would constitute
  a "modification" to Incentive Stock Options outstanding on the date of such
  amendment shall not, without the consent of the Participant, be applicable to
  such outstanding Incentive Stock Options but shall have prospective effect only.

 12.2         
  Term of Plan  

 Unless sooner terminated as provided herein, the Plan shall
  terminate ten years after the earlier of the Plan's adoption by the Board and
  approval by the stockholders. 

 12.3         
  Consent of Participant  

 The suspension, amendment or termination of the Plan or a
  portion thereof or the amendment of an outstanding Option shall not, without
  the Participant's consent, materially adversely affect any rights under any
  Option theretofore granted to the Participant under the Plan. Any change or
  adjustment to an outstanding Incentive Stock Option shall not, without the consent
  of the Participant, be made in a manner so as to constitute a "modification"
  that would cause such Incentive Stock Option to fail to continue to qualify
  as an Incentive Stock Option. Notwithstanding the foregoing, any adjustments
  made pursuant to Article 12 shall not be subject to these restrictions. 

 10 

 ARTICLE 13. GENERAL  

 13.1         
  Evidence of Options  

 Options granted under the Plan shall be evidenced by a written
  instrument that shall contain such terms, conditions, limitations and restrictions
  as the Plan Administrator shall deem advisable and that are not inconsistent
  with the Plan. 

 13.2         
  No Individual Rights  

 Nothing in the Plan or any Option granted under the Plan shall
  be deemed to constitute an employment contract or confer or be deemed to confer
  on any Participant any right to continue in the employ of, or to continue any
  other relationship with, the Company or any Related Company or limit in any
  way the right of the Company or any Related Company to terminate a Participant's
  employment or other relationship at any time, with or without Cause. 

 13.3         
  Issuance of Shares  

 Notwithstanding any other provision of the Plan, the Company
  shall have no obligation to issue or deliver any shares of Common Stock under
  the Plan or make any other distribution of benefits under the Plan unless, in
  the opinion of the Company's counsel, such issuance, delivery or distribution
  would comply with all applicable laws (including, without limitation, the requirements
  of the Securities Act), and the applicable requirements of any securities exchange
  or similar entity. 

 The Company shall be under no obligation to any Participant
  to register for offering or resale or to qualify for exemption under the Securities
  Act, or to register or qualify under state securities laws, any shares of Common
  Stock, security or interest in a security paid or issued under, or created by,
  the Plan, or to continue in effect any such registrations or qualifications
  if made. The Company may issue certificates for shares with such legends and
  subject to such restrictions on transfer and stop-transfer instructions as counsel
  for the Company deems necessary or desirable for compliance by the Company with
  federal and state securities laws. 

 To the extent the Plan or any instrument evidencing an Option
  provides for issuance of stock certificates to reflect the issuance of shares
  of Common Stock, the issuance may be effected on a noncertificated basis, to
  the extent not prohibited by applicable law or the applicable rules of any stock
  exchange. 

 13.4         
  No Rights as a Stockholder  

 No Option or Stock Option denominated in units shall entitle
  the Participant to any cash dividend, voting or other right of a stockholder
  unless and until the date of issuance under the Plan of the shares that are
  the subject of such Option. 

 13.5         
  Compliance With Laws and Regulations  

 Notwithstanding anything in the Plan to the contrary, the
  Plan Administrator, in its sole discretion, may bifurcate the Plan so as to
  restrict, limit or condition the use of any provision of the Plan to Participants
  who are officers or directors subject to Section 16 of the Exchange Act without
  so restricting, limiting or conditioning the Plan with respect to other Participants.
  Additionally, in interpreting and applying the provisions of the Plan, any Option
  granted as an Incentive Stock Option pursuant to the Plan shall, to the extent
  permitted by law, be construed as an "incentive stock option" within the meaning
  of Section 422 of the Code. 

 11 

 13.6         
  Participants in Other Countries  

 The Plan Administrator shall have the authority to adopt such
  modifications, procedures and subplans as may be necessary or desirable to comply
  with provisions of the laws of other countries in which the Company or any Related
  Company may operate to assure the viability of the benefits from Options granted
  to Participants employed in such countries and to meet the objectives of the
  Plan. 

 13.7         
  No Trust or Fund  

 The Plan is intended to constitute an "unfunded" plan. Nothing
  contained herein shall require the Company to segregate any monies or other
  property, or shares of Common Stock, or to create any trusts, or to make any
  special deposits for any immediate or deferred amounts payable to any Participant,
  and no Participant shall have any rights that are greater than those of a general
  unsecured creditor of the Company. 

 13.8         
  Severability  

 If any provision of the Plan or any Option is determined to
  be invalid, illegal or unenforceable in any jurisdiction, or as to any person,
  or would disqualify the Plan or any Option under any law deemed applicable by
  the Plan Administrator, such provision shall be construed or deemed amended
  to conform to applicable laws, or, if it cannot be so construed or deemed amended
  without, in the Plan Administrator's determination, materially altering the
  intent of the Plan or the Option, such provision shall be stricken as to such
  jurisdiction, person or Option, and the remainder of the Plan and any such Option
  shall remain in full force and effect. 

 13.9         
  Choice of Law  

 The Plan and all determinations made and actions taken pursuant
  hereto, to the extent not otherwise governed by the laws of the United States,
  shall be governed by the laws of the State of Nevada without giving effect to
  principles of conflicts of law. 

 ARTICLE 14. EFFECTIVE DATE  

 The effective date is the date on which the Plan is adopted
  by the Board. If the stockholders of the Company do not approve the Plan within
  12 months after the Board's adoption of the Plan, any Incentive Stock Options
  granted under the Plan will be treated as Nonqualified Stock Options. 

12

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