Document:

EXHIBIT 10.1
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                                                                  Execution Copy

                          AGREEMENT AND PLAN OF MERGER

     AGREEMENT AND PLAN OF MERGER  ("Agreement") made this 23rd day of February,
2005 by and among  Bangla  Property  Management,  Inc.,  a Colorado  corporation
("Parent"), China Property Holding, Inc., a Colorado corporation ("Merger Sub"),
and Wollaston  Industrial  Limited,  ("the  Company") a British  Virgin  Islands
("BVI") limited liability corporation.

                                R E C I T A L S:

     A. The  respective  Boards of  Directors  of Parent  and the  Company  have
determined  that an acquisition of the Company by Merger Sub and then the merger
of  Merger  Sub with and into the  Parent  (the  "Merger"),  upon the  terms and
subject to the conditions set forth in this Agreement,  would be fair and in the
best interests of their  respective  shareholders,  and such Boards of Directors
have  approved  such  Merger,  pursuant to which  shares of Common  Stock of the
Company ("Company Common Stock") issued and outstanding immediately prior to the
Effective  Time of the Merger (as defined in Section 1.03) will be exchanged for
the right to receive Common Stock of Parent  ("Parent  Common Stock") other than
Dissenting Shares (as defined in Section 2.01(d)).

     B.   Parent,   Merger  Sub  and  the   Company   desire  to  make   certain
representations,  warranties,  covenants and  agreements in connection  with the
Merger and also to prescribe various conditions to the Merger.

     C. For federal  income tax  purposes,  the  parties  intend that the Merger
shall  qualify as a  reorganization  under the  provisions of Section 368 of the
Internal Revenue Code of 1986, as amended (the "Code").

     NOW,  THEREFORE,  in  consideration  of  the  representations,  warranties,
covenants  and  agreements  contained in this  Agreement,  the parties  agree as
follows:

                                   ARTICLE I:
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                                   THE MERGER

1.01 The Merger.  Upon the terms and subject to the conditions set forth in this
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Agreement,  and in accordance with the Colorado Corporations Code (the "Colorado
Statutes"),  Merger Sub shall  acquire the Company and then shall be merged with
and into the Parent at the Effective Time of the Merger. The Company will become
a wholly owned subsidiary of the Parent.  The Parent shall at all times maintain
no less than 90 per cent of the equity of the Merger Sub.

1.02  Closing.  Unless  this  Agreement  shall  have  been  terminated  and  the
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transactions  herein  contemplated shall have been abandoned pursuant to Section

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7.01 and subject to the  satisfaction  or waiver of the  conditions set forth in
Article VI, the closing of the Merger (the  "Closing")  will take place at 10:00
a.m. on the  business  day after  satisfaction  of the  conditions  set forth in
Article  VI (or as soon as  practicable  thereafter  following  satisfaction  or
waiver of the conditions set forth in Article VI) (the "Closing  Date"),  at the
offices of Baker & McKenzie in New York.,  unless another date, time or place is
agreed to in writing by the parties hereto.

1.03 Effective Time of Merger. As soon as practicable following the satisfaction
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or waiver of the  conditions  set forth in Article  VI, the  parties  shall file
articles of merger (the  "Articles of Merger")  executed in accordance  with the
relevant provisions of the Colorado Statutes and shall make all other filings or
recordings  required under Colorado Statutes.  The Merger shall become effective
at such time as the  Articles  of Merger are duly filed  with the  Secretary  of
State of Colorado or at such other time as is  permissible  in  accordance  with
Colorado  Statutes and as Parent and the Company shall agree should be specified
in the  Articles  of Merger  (the time the Merger  becomes  effective  being the
"Effective Time of the Merger"). Parent shall use reasonable efforts to have the
Closing Date and the Effective Time of the Merger to be the same day.

1.04  Effects of the Merger.  The Merger shall have the effects set forth in the
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applicable provisions of the Colorado Statutes.

1.05 Articles of Incorporation; Bylaws; Purposes.
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     (a) The Certificate of  Incorporation  of the Parent in effect  immediately
prior  to the  Effective  Time  of  the  Merger  shall  be  the  Certificate  of
Incorporation  of the Parent  until  thereafter  changed or amended as  provided
therein or by applicable law.

     (b) The Bylaws of the Parent in effect at the Effective  Time of the Merger
shall be the  Bylaws of the  Parent  until  thereafter  changed  or  amended  as
provided therein or by applicable law.

     (c) The  purposes  of the  Parent  and the total  number of its  authorized
capital stock shall be as set forth in the Certificate of  Incorporation  of the
Parent in effect  immediately  prior to the  Effective  Time of the Merger until
such time as such  purposes  and such  number may be amended as  provided in the
Certificate of Incorporation of the Parent and by applicable law.

1.06 Directors. The directors of the Company at the Effective Time of the Merger
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shall be the  directors  of the Parent  within  twenty  days after the Merger or
within the required timeframe of the 14F filing ("Transition  Period"),  and its
subsidiary,  until the  earlier of their  resignation  or removal or until their
respective  successors are duly elected and  qualified,  as the case may be. The
current  sole  director  of the Parent  ("Parent  Director")  shall  remain as a
director for the sole purpose of  transition  during the  Transition  Period and
shall not take any action other than the ordinary  maintenance  and the election
of the new directors designated by the Company. The Parent Director shall resign
after the  election of all the new  directors  designated  by the  Company.  The
Parent and the Company shall hold the Parent Director harmless and indemnify the
Parent Director against any and all claims,  losses and damages arising from the
execution of the limited function during the Transition Period. At the Effective
Time of the Merger, Jiahui (as defined herein) shall appoint the other directors
of the Parent.

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1.07 Officers.  The officers  designated by the Company at the Effective Time of
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the Merger  shall be the  officers of the Parent and its  subsidiary,  until the
earlier of their resignation or removal or until their respective successors are
duly elected and qualified, as the case may be.

                                   ARTICLE II:
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                              EFFECT OF THE MERGER
                              ON THE CAPITAL STOCK
                         OF THE CONSTITUENT CORPORATIONS

2.01 Effect on Capital Stock. As of the Effective Time of the Merger,  by virtue
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of the Merger  and  without  any action on the part of the  holders of shares of
Company Common Stock or any shares of capital stock of Merger Sub:

     (a)  Company-Owned  Common  Stock of Merger Sub. All the  Company's  shares
issued and  outstanding  prior to the Merger  ("Company  Common Stock") shall be
converted into 100 shares of common stock of the Merger Sub prior to the Merger.
Each share of common  stock of Merger Sub  issued  and  outstanding  immediately
prior  to the  Effective  Time of the  Merger  owned  by the  Company  shall  be
converted  into  226,750  shares of Common  Stock of the Parent and shall be the
issued and  outstanding  capital  stock of the  Parent.  In the  aggregate,  the
Company-owned  common stock of the Merger Sub shall be converted into 22,675,000
shares of the Parent.

     (b) Cancellation of Parent-Owned  Merger Sub Common Stock. The Parent shall
own 900 shares of commons tock of the Merger Sub prior to the Merger. Each share
of  Common  Stock  of  the  Merger  Sub  that  is  owned  by  the  Parent  shall
automatically  be cancelled and retired and shall cease to exist,  and no Parent
Common  Stock or  other  consideration  shall be  delivered  or  deliverable  in
exchange therefor.

     (c) Issuance and Transfer of Parent Common  Stock.  The  22,675,000  Parent
Shares to be issued by the Parent to the Company's shareholders pursuant to this
Agreement  constituting  approximately  seventy-five  point fifty eight per cent
(75.58%) of the total outstanding shares of the common stock of the Parent shall
be delivered by the Parent to Baker & Mackenzie LLP (the  "Exchange  Agent") and
shall be known as the "Merger Consideration."

     (d) Dissenting  Shares.  Notwithstanding  anything in this Agreement to the
contrary,  shares of Company  Common  Stock issued and  outstanding  immediately
prior to the Effective  Time of the Merger held by a holder (if any) who has the
right to demand  payment for and an appraisal  of such shares as provided  under
BVI law, if  applicable,  ("Dissenting  Shares")  shall not be converted  into a
right to receive  Merger  Consideration  unless such holder  fails to perfect or
otherwise  loses such holder's  right to such payment or appraisal,  if any. If,
after the  Effective  Time of the Merger,  such holder fails to perfect or loses
any such right to appraisal,  each such share of such holder shall be treated as
a share that had been  converted as of the Effective Time of the Merger into the
right to receive Merger  Consideration in accordance with this Section 2.01. The
Company  shall  give  prompt  notice to Parent of any  demands  received  by the
Company for appraisal of shares of Company  Common Stock,  and Parent shall have
the right to participate in all  negotiations  and  proceedings  with respect to

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such demands.  The Company shall not,  except with the prior written  consent of
Parent, make any payment with respect to, or settle or offer to settle, any such
demands.

2.02 Stock  Warrants.  At the  Effective  Time of the  Merger,  there will be no
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outstanding warrants to purchase Parent Common Stock.

2.03 Exchange of Certificates.
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     (a) Exchange of  Certificates.  As soon as reasonably  practicable as of or
after  the  Effective  Time  of  the  Merger,  Parent  shall  issue  the  Merger
Consideration.

     (b) Settlement  Date. The settlement date as set forth herein shall be such
date which is six months from the  Effective  Time of the Merger and the date of
the resolution of any Contests further to Section 8.03 herein.

     (c) Exchange  Procedures.  At the Effective Time of the Merger, each holder
of an outstanding  certificate or certificates  which prior thereto  represented
shares of Company  Common Stock shall,  upon  surrender of such  certificate  or
certificates  and  acceptance  be  entitled  to a  certificate  or  certificates
representing  the  number  of  shares  of Parent  Common  Stock  into  which the
aggregate  number of shares of Company  Common Stock  previously  represented by
such certificate or certificates  surrendered shall have been converted pursuant
to this Agreement.  The Company shareholders shall accept such certificates upon
compliance  with such  reasonable  terms  and  conditions  to effect an  orderly
exchange  thereof in accordance  with normal exchange  practices.  All shares of
Company  Common Stock shall be  surrendered at the Effective Time of the Merger.
After the Effective  Time of the Merger,  there shall be no further  transfer on
the records of the Company or its transfer  agent of  certificates  representing
shares of Company Common Stock.  If any certificate for such Parent Common Stock
is to be issued in a name other than that in which the  certificate  for Company
Common Stock surrendered for exchange is registered,  it shall be a condition of
such exchange that the  certificate so surrendered  shall be properly  endorsed,
with signature guaranteed, or otherwise in proper form for transfer and that the
person  requesting  such exchange  shall pay to Parent or its transfer agent any
transfer  or other taxes or other  costs  required by reason of the  issuance of
certificates  for such  Parent  Common  Stock in a name  other  than that of the
registered  holder  of  the  certificate   surrendered,   or  establish  to  the
satisfaction of Parent or its transfer agent that all taxes have been paid.

     (d) No Further  Ownership  Rights in Company  Common  Stock.  All shares of
Parent  Common Stock  issued upon the  surrender  for  exchange of  certificates
representing shares of Company Common Stock in accordance with the terms of this
Article II shall be deemed to have been issued  (and paid) in full  satisfaction
of all  rights  pertaining  to the shares of Company  Common  Stock  theretofore
represented by such certificates.

     (e) No  Liability.  None of Parent,  Merger Sub,  or the  Company  shall be
liable to any  person in  respect  of any  shares  of  Parent  Common  Stock (or
dividends or distributions  with respect thereto) delivered to a public official
pursuant to any  applicable  abandoned  property,  escheat or similar  law.  All
certificates  representing  shares  of  Company  Common  Stock  shall  have been
surrendered at the Effective Time of the Merger.

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                                  ARTICLE III:
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                         REPRESENTATIONS AND WARRANTIES

3.01  Representations and Warranties of the Company.  Except as set forth in the
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Company  Disclosure  Schedule delivered by the Company to the Parent at the time
of execution of this  Agreement,  the Company  represents and warrants to Parent
and Merger Sub as follows:

     (a)  Organization,  Standing  and  Corporate  Power.  The  Company  is duly
organized,  validly  existing and in good standing under the laws of the British
Virgin Islands and has the requisite  corporate  power and authority to carry on
its business as now being  conducted.  The Company is duly qualified or licensed
to do business and is in good standing in each  jurisdiction in which the nature
of its  business  or the  ownership  or  leasing  of its  properties  makes such
qualification or licensing necessary, other than in such jurisdictions where the
failure to be so qualified or licensed  (individually or in the aggregate) would
not have a material adverse effect with respect to the Company.

     (b) Subsidiaries.  The Company owns 90.28% of its subsidiary, Xi'an Jialing
Real Estate Co. Ltd.  formed under the Company Law of the  People's  Republic of
China ("Jiahui").

     (c) Capital Structure. The authorized capital stock of the Company consists
of 50,000  shares of Company  Common  Stock.  There are 10,000  shares of Common
Stock  outstanding.  Except as set forth  above,  no shares of capital  stock or
other  equity  securities  of the Company are issued,  reserved  for issuance or
outstanding.  All  outstanding  shares of capital  stock of the Company are duly
authorized,  validly  issued,  fully paid and  nonassessable  and not subject to
preemptive rights.  There are no outstanding bonds,  debentures,  notes or other
indebtedness  or other  securities  of the Company  having the right to vote (or
convertible into, or exchangeable  for,  securities having the right to vote) on
any  matters  on  which  shareholders  of the  Company  may  vote.  The  Company
Disclosure  Schedule sets forth the outstanding  Capitalization  of the Company.
Except  as set  forth  above,  there  are no  outstanding  securities,  options,
warrants, calls, rights, commitments,  agreements,  arrangements or undertakings
of any kind to which the  Company is a party or by which it is bound  obligating
the Company to issue, deliver or sell, or cause to be issued, delivered or sold,
additional  shares of capital stock or other equity or voting  securities of the
Company or obligating the Company to issue, grant, extend or enter into any such
security,  option, warrant, call, right, commitment,  agreement,  arrangement or
undertaking.  Other than the Company Stock Options and Company  Warrants,  there
are no  outstanding  contractual  obligations,  commitments,  understandings  or
arrangements of the Company to repurchase,  redeem or otherwise  acquire or make
any payment in respect of any shares of capital stock of the Company.  There are
no  agreements  or  arrangements  pursuant  to which the  Company is or could be
required to register  shares of Company Common Stock or other  securities  under
the  Securities  Act of  1933,  as  amended  (the  "Securities  Act")  or  other
agreements  or  arrangements  with or among any security  holders of the Company
with respect to securities of the Company.

     (d) Authority;  Noncontravention.  The Company has the requisite  corporate
and other power and authority to enter into this Agreement and to consummate the
Merger.  The  execution  and  delivery of this  Agreement by the Company and the
consummation by the Company of the  transactions  contemplated  hereby have been

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duly  authorized by all necessary  corporate  action on the part of the Company.
This  Agreement  has  been  duly  executed  and  delivered  by the  Company  and
constitutes a valid and binding obligation of the Company,  enforceable  against
the Company in  accordance  with its terms.  The  execution and delivery of this
Agreement do not, and the consummation of the transactions  contemplated by this
Agreement and compliance with the provisions  hereof will not, conflict with, or
result in any  breach or  violation  of, or default  (with or without  notice or
lapse  of  time,  or  both)  under,  or give  rise to a  right  of  termination,
cancellation or acceleration of or "put" right with respect to any obligation or
to loss of a material  benefit under, or result in the creation of any lien upon
any of the  properties  or assets of the  Company  under,  (i) the  Articles  of
Incorporation or Bylaws of the Company, (ii) any loan or credit agreement, note,
bond,  mortgage,  indenture,  lease  or  other  agreement,  instrument,  permit,
concession,  franchise or license  applicable to the Company,  its properties or
assets, or (iii) subject to the governmental  filings and other matters referred
to in the  following  sentence,  any  judgment,  order,  decree,  statute,  law,
ordinance,  rule, regulation or arbitration award applicable to the Company, its
properties  or assets.  No  consent,  approval,  order or  authorization  of, or
registration,  declaration  or filing with, or notice to, any federal,  state or
local  government  or any court,  administrative  agency or  commission or other
governmental  authority,  agency, domestic or foreign (a "Governmental Entity"),
is required by or with respect to the Company in  connection  with the execution
and delivery of this Agreement by the Company or the consummation by the Company
of the transactions contemplated hereby, except, with respect to this Agreement,
for the  filing  of the  Articles  of  Merger  with  the  Secretary  of State of
Colorado.

     (e) Absence of Certain  Changes or Events.  Since  December 31,  2003,  the
Company has conducted its business only in the ordinary  course  consistent with
past  practice,  and there is not and has not  been:  (i) any  material  adverse
change with  respect to the Company;  (ii) any  condition,  event or  occurrence
which  individually or in the aggregate  could  reasonably be expected to have a
material  adverse effect or give rise to a material  adverse change with respect
to the  Company;  (iii) any event  which,  if it had taken place  following  the
execution  of this  Agreement,  would not have been  permitted  by Section  4.01
without  prior  consent of Parent;  or (iv) any  condition,  event or occurrence
which could  reasonably be expected to prevent,  hinder or materially  delay the
ability of the  Company to  consummate  the  transactions  contemplated  by this
Agreement.

     (f) Litigation; Labor Matters; Compliance with Laws.

          (i) There is no suit,  action or proceeding or  investigation  pending
or, to the knowledge of the Company, threatened against or affecting the Company
or any  basis for any such  suit,  action,  proceeding  or  investigation  that,
individually  or in the  aggregate,  could  reasonably  be  expected  to  have a
material  adverse  effect  with  respect to the  Company or  prevent,  hinder or
materially  delay the  ability of the  Company to  consummate  the  transactions
contemplated by this Agreement, nor is there any judgment,  decree,  injunction,
rule or order of any Governmental  Entity or arbitrator  outstanding against the
Company  having,  or which,  insofar  as  reasonably  could be  foreseen  by the
Company, in the future could have, any such effect.

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          (ii) The  Company  is not a party  to,  or bound  by,  any  collective
bargaining agreement,  contract or other agreement or understanding with a labor
union or labor organization,  nor is it the subject of any proceeding  asserting
that it has  committed  an unfair  labor  practice  or  seeking  to compel it to
bargain with any labor  organization as to wages or conditions of employment nor
is there any strike,  work stoppage or other labor dispute  involving it pending
or, to its  knowledge,  threatened,  any of which could have a material  adverse
effect with respect to the Company.

          (iii) The conduct of the  business of the  Company  complies  with all
statutes, laws, regulations,  ordinances,  rules, judgments,  orders, decrees or
arbitration awards applicable thereto.

     (g) Benefit Plans. The Company is not a party to any collective  bargaining
agreement  or  any  bonus,  pension,  profit  sharing,   deferred  compensation,
incentive  compensation,   stock  ownership,   stock  purchase,  phantom  stock,
retirement,  vacation,  severance,  disability, death benefit,  hospitalization,
medical or other  plan,  arrangement  or  understanding  (whether or not legally
binding) under which the Company currently has an obligation to provide benefits
to  any  current  or  former  employee,  officer  or  director  of  the  Company
(collectively, "Benefit Plans").

     (h) Certain Employee Payments. The Company is not a party to any employment
agreement  which could  result in the payment to any  current,  former or future
director or employee of the Company of any money or other  property or rights or
accelerate  or provide  any other  rights or  benefits  to any such  employee or
director as a result of the transactions contemplated by this Agreement, whether
or not (i) such payment, acceleration or provision would constitute a "parachute
payment"  (within the meaning of Section  280G of the Code),  or (ii) some other
subsequent action or event would be required to cause such payment, acceleration
or provision to be triggered.

     (i) Tax Returns  and Tax  Payments.  The  Company has timely  filed all Tax
Returns  required to be filed by it, has paid all Taxes shown  thereon to be due
and has provided  adequate  reserves in its financial  statements  for any Taxes
that have not been paid,  whether or not shown as being due on any  returns.  No
material  claim for  unpaid  Taxes has been  made or become a lien  against  the
property of the Company or is being  asserted  against the Company,  no audit of
any Tax Return of the  Company is being  conducted  by a tax  authority,  and no
extension of the statute of  limitations on the assessment of any Taxes has been
granted by the Company and is currently in effect. As used herein, "taxes" shall
mean all taxes of any kind, including,  without limitation, those on or measured
by or referred to as income, gross receipts, sales, use, ad valorem,  franchise,
profits, license,  withholding,  payroll, employment,  excise, severance, stamp,
occupation,  premium value added,  property or windfall profits taxes,  customs,
duties or similar fees,, assessments or charges of any kind whatsoever, together
with any interest and any  penalties,  additions  to tax or  additional  amounts
imposed by any governmental authority, domestic or foreign. As used herein, "Tax
Return" shall mean any return, report or statement required to be filed with any
governmental authority with respect to Taxes.

     (j) Environmental Matters. The Company is in compliance with all applicable
Environmental Laws. "Environmental Laws" means all applicable federal, state and

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local statutes, rules, regulations,  ordinances,  orders, decrees and common law
relating in any manner to contamination, pollution or protection of human health
or the environment, and similar state laws.

     (k) Material Contract Defaults. The Company is not, or has not received any
notice or has any  knowledge  that any other party is, in default in any respect
under any Material Contract;  and there has not occurred any event that with the
lapse of time or the giving of notice or both would  constitute  such a material
default. For purposes of this Agreement, a Material Contract means any contract,
agreement  or  commitment  that is effective as of the Closing Date to which the
Company  is a party (i) with  expected  receipts  or  expenditures  in excess of
$100,000,  (ii)  requiring the Company to indemnify any person,  (iii)  granting
exclusive  rights to any party,  (iv)  evidencing  indebtedness  for borrowed or
loaned  money in  excess  of  $100,000  or more,  including  guarantees  of such
indebtedness,  or (v) which,  if breached by the Company in such a manner  would
(A)  permit  any other  party to cancel or  terminate  the same (with or without
notice of passage of time) or (B)  provide a basis for any other  party to claim
money  damages  (either  individually  or in the  aggregate  with all other such
claims  under  that  contract)  from the  Company or (C) give rise to a right of
acceleration  of any material  obligation or loss of any material  benefit under
any such contract, agreement or commitment.

     (l) Properties. The Company has good, clear and marketable title to all the
tangible properties and tangible assets reflected in the latest balance sheet as
being  owned by the  Company  or  acquired  after the date  thereof  which  are,
individually  or in the aggregate,  material to the Company's  business  (except
properties sold or otherwise  disposed of since the date thereof in the ordinary
course of business), free and clear of all material liens.

     (m) Trademarks and Related Contracts. To the knowledge of the Company:

          (i) As used in this Agreement, the term "Trademarks" means trademarks,
service marks, trade names, Internet domain names, designs, slogans, and general
intangibles of like nature;  the term "Trade  Secrets" means  technology;  trade
secrets and other confidential  information,  know-how,  proprietary  processes,
formulae,  algorithms,   models,  and  methodologies;   the  term  "Intellectual
Property" means patents,  copyrights,  Trademarks,  applications  for any of the
foregoing,  and Trade Secrets;  the term "Company License  Agreements" means any
license  agreements  granting  any right to use or practice any rights under any
Intellectual  Property  (except for such agreements for  off-the-shelf  products
that are generally available or less than $25,000),  and any written settlements
relating  to any  Intellectual  Property,  to which  the  Company  is a party or
otherwise bound;  and the term "Software"  means any and all computer  programs,
including  any  and all  software  implementations  of  algorithms,  models  and
methodologies, whether in source code or object code.

          (ii)  To  the  knowledge  of  the  Company,   none  of  the  Company's
Intellectual  Property or Company License Agreements infringe upon the rights of
any third  party  that may give rise to a cause of action or claim  against  the
Company or its successors.

     (n)  Board  Recommendation.  The  Board of  Directors  of the  Company  has
unanimously  determined that the terms of the Merger are fair to and in the best

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interests of the shareholders of the Company and recommended that the holders of
the shares of Company Common Stock approve the Merger.

     (o) Required Company Vote. The affirmative vote of a majority of the shares
of each of the Company Common Stock is the only vote of the holders of any class
or series of the  Company's  securities  necessary  to approve  the Merger  (the
"Company Shareholder Approval").

3.02  Representations  and  Warranties  of  Jiahui.  Except  as set forth in the
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Company  Disclosure  Schedule delivered by the Company to the Parent at the time
of execution of this  Agreement,  the Company  represents and warrants to Parent
and Merger Sub as follows:

     (a) Organization,  Standing and Corporate Power.  Jiahui is duly organized,
validly existing and in good standing under the laws of the People's Republic of
China  and has the  requisite  corporate  power  and  authority  to carry on its
business  as now being  conducted.  Jiahui is duly  qualified  or licensed to do
business and is in good standing in each jurisdiction in which the nature of its
business or the ownership or leasing of its properties makes such  qualification
or licensing necessary, other than in such jurisdictions where the failure to be
so qualified or licensed  (individually  or in the  aggregate)  would not have a
material adverse effect (as defined in Section 9.02) with respect to Jiahui.

     (b) Subsidiaries. Jiahui has no subsidiaries. Jiahui is 90.28% owned by the
Company and shall remain a majority owned subsidiary of the Company.

     (c) Capital Structure.  Except as set forth in the financial statements, no
shares  of  capital  stock or other  equity  securities  of Jiahui  are  issued,
reserved for issuance or outstanding.  All outstanding equity ownership interest
in Jiahui are duly authorized,  validly issued, fully paid and nonassessable and
not subject to preemptive rights.  There are no outstanding  bonds,  debentures,
notes or other  indebtedness  or other  securities of Jiahui having the right to
vote (or convertible into, or exchangeable  for,  securities having the right to
vote) on any  matters  on which  shareholders  of Jiahui  may vote.  The  Jiahui
Disclosure Schedule sets forth the outstanding  Capitalization of Jiahui. Except
as set forth above,  there are no  outstanding  securities,  options,  warrants,
calls, rights, commitments, agreements, arrangements or undertakings of any kind
to which Jiahui is a party or by which it is bound  obligating  Jiahui to issue,
deliver or sell, or cause to be issued,  delivered or sold, additional shares of
capital  stock or other  equity or  voting  securities  of Jiahui or  obligating
Jiahui to issue, grant, extend or enter into any such security, option, warrant,
call, right,  commitment,  agreement,  arrangement or undertaking.  There are no
outstanding contractual obligations, commitments, understandings or arrangements
of Jiahui to  repurchase,  redeem or  otherwise  acquire or make any  payment in
respect of any shares of capital  stock of Jiahui.  There are no  agreements  or
arrangements pursuant to which Jiahui is or could be required to register shares
of Company Common Stock or other securities under the Securities Act of 1933, as
amended (the "Securities Act") or other agreements or arrangements with or among
any security holders of Jiahui with respect to securities of Jiahui.

     (d)  Authority;  Noncontravention.  Jiahui has the requisite  corporate and
other  power  and  authority  to  enter  into  this  Agreement  and to make  the

                                        9
<PAGE>

representations  contained  herein.  This  Agreement  has been duly executed and
delivered by Jiahui and  constitutes  a valid and binding  obligation of Jiahui,
enforceable  against  Jiahui in  accordance  with its terms.  The  execution and
delivery of this  Agreement do not,  and the  consummation  of the  transactions
contemplated  by this Agreement and compliance  with the provisions  hereof will
not, conflict with, or result in any breach or violation of, or default (with or
without  notice  or lapse of time,  or both)  under,  or give rise to a right of
termination,  cancellation or acceleration of or "put" right with respect to any
obligation or to loss of a material  benefit under, or result in the creation of
any lien upon any of the properties or assets of Jiahui under,  (i) the Articles
of Incorporation or Bylaws of Jiahui,  (ii) any loan or credit agreement,  note,
bond,  mortgage,  indenture,  lease  or  other  agreement,  instrument,  permit,
concession, franchise or license applicable to Jiahui, its properties or assets,
or (iii) subject to the  governmental  filings and other matters  referred to in
the following sentence,  any judgment,  order, decree,  statute, law, ordinance,
rule,  regulation or arbitration  award applicable to Jiahui,  its properties or
assets.  No  consent,  approval,  order or  authorization  of, or  registration,
declaration or filing with, or notice to, any federal, state or local government
or  any  court,  administrative  agency  or  commission  or  other  governmental
authority, agency, domestic or foreign (a "Governmental Entity"), is required by
or with respect to Jiahui in connection  with the execution and delivery of this
Agreement  by  Jiahui  or  the   consummation  by  Jiahui  of  the  transactions
contemplated hereby,  except, with respect to this Agreement,  for the filing of
the Articles of Merger with the Secretary of State of Colorado.

     (e) Absence of Certain  Changes or Events.  Since December 31, 2003,  other
than the ownership  interest  transfer to the Company,  Jiahui has conducted its
business only in the ordinary course consistent with past practice, and there is
not and has not been:  (i) any material  adverse  change with respect to Jiahui;
(ii) any condition,  event or occurrence which  individually or in the aggregate
could reasonably be expected to have a material adverse effect or give rise to a
material adverse change with respect to Jiahui; (iii) any event which, if it had
taken place  following  the  execution  of this  Agreement,  would not have been
permitted  by  Section  4.01  without  prior  consent  of  Parent;  or (iv)  any
condition,  event or occurrence  which could  reasonably be expected to prevent,
hinder or materially  delay the ability of Jiahui to consummate the transactions
contemplated by this Agreement.

     (f) Litigation; Labor Matters; Compliance with Laws.

          (i) There is no suit,  action or proceeding or  investigation  pending
or, to the knowledge of Jiahui,  threatened  against or affecting  Jiahui or any
basis for any such suit, action,  proceeding or investigation that, individually
or in the  aggregate,  could  reasonably be expected to have a material  adverse
effect with respect to Jiahui or prevent, hinder or materially delay the ability
of Jiahui to consummate the transactions  contemplated by this Agreement, nor is
there any judgment, decree, injunction, rule or order of any Governmental Entity
or arbitrator outstanding against Jiahui having, or which, insofar as reasonably
could be foreseen by Jiahui, in the future could have, any such effect.

          (ii) Jiahui is not a party to, or bound by, any collective  bargaining
agreement,  contract or other agreement or  understanding  with a labor union or
labor  organization,  nor is it the subject of any proceeding  asserting that it
has  committed an unfair labor  practice or seeking to compel it to bargain with
any labor  organization as to wages or conditions of employment nor is there any

                                       10
<PAGE>

strike,  work  stoppage or other labor  dispute  involving it pending or, to its
knowledge,  threatened,  any of which could have a material  adverse effect with
respect to Jiahui.

          (iii)  The  conduct  of the  business  of  Jiahui  complies  with  all
statutes, laws, regulations,  ordinances,  rules, judgments,  orders, decrees or
arbitration awards applicable thereto.

     (g)  Benefit  Plans.  Jiahui  is not a party to any  collective  bargaining
agreement  or  any  bonus,  pension,  profit  sharing,   deferred  compensation,
incentive  compensation,   stock  ownership,   stock  purchase,  phantom  stock,
retirement,  vacation,  severance,  disability, death benefit,  hospitalization,
medical or other  plan,  arrangement  or  understanding  (whether or not legally
binding) under which Jiahui  currently has an obligation to provide  benefits to
any current or former  employee,  officer or  director of Jiahui  (collectively,
"Benefit Plans").

     (h)  Certain  Employee  Payments.  Jiahui is not a party to any  employment
agreement  which could  result in the payment to any  current,  former or future
director  or  employee  of Jiahui of any  money or other  property  or rights or
accelerate  or provide  any other  rights or  benefits  to any such  employee or
director as a result of the transactions contemplated by this Agreement, whether
or not (i) such payment, acceleration or provision would constitute a "parachute
payment"  (within the meaning of Section  280G of the Code),  or (ii) some other
subsequent action or event would be required to cause such payment, acceleration
or provision to be triggered.

     (i) Tax Returns and Tax  Payments.  Jiahui has timely filed all Tax Returns
required to be filed by it, has paid all Taxes  shown  thereon to be due and has
provided adequate  reserves in its financial  statements for any Taxes that have
not been paid,  whether or not shown as being due on any  returns.  No  material
claim for unpaid  Taxes has been made or become a lien  against the  property of
Jiahui or is being asserted against Jiahui, no audit of any Tax Return of Jiahui
is being  conducted  by a tax  authority,  and no  extension  of the  statute of
limitations  on the  assessment  of any Taxes has been  granted by Jiahui and is
currently in effect.  As used herein,  "taxes" shall mean all taxes of any kind,
including, without limitation, those on or measured by or referred to as income,
gross  receipts,   sales,  use,  ad  valorem,   franchise,   profits,   license,
withholding,  payroll, employment, excise, severance, stamp, occupation, premium
value added,  property or windfall  profits  taxes,  customs,  duties or similar
fees,, assessments or charges of any kind whatsoever, together with any interest
and  any  penalties,  additions  to tax or  additional  amounts  imposed  by any
governmental authority,  domestic or foreign. As used herein, "Tax Return" shall
mean any return,  report or statement required to be filed with any governmental
authority with respect to Taxes.

     (j)  Environmental  Matters.  Jiahui  is in  material  compliance  with all
applicable  Environmental  Laws.   "Environmental  Laws"  means  all  applicable
federal,  state and local  statutes,  rules,  regulations,  ordinances,  orders,
decrees and common law  relating in any manner to  contamination,  pollution  or
protection of human health or the environment, and similar state laws.

                                       11
<PAGE>

     (k)  Material  Contract  Defaults.  Jiahui is not, or has not  received any
notice or has any  knowledge  that any other party is, in default in any respect
under any Material Contract;  and there has not occurred any event that with the
lapse of time or the giving of notice or both would  constitute  such a material
default. For purposes of this Agreement, a Material Contract means any contract,
agreement or commitment that is effective as of the Closing Date to which Jiahui
is a party (i) with  expected  receipts or  expenditures  in excess of $100,000,
(ii) requiring Jiahui to indemnify any person,  (iii) granting  exclusive rights
to any party,  (iv)  evidencing  indebtedness  for  borrowed or loaned  money in
excess of $100,000 or more,  including  guarantees of such indebtedness,  or (v)
which,  if breached by Jiahui in such a manner  would (A) permit any other party
to cancel or terminate  the same (with or without  notice of passage of time) or
(B)  provide  a basis  for any  other  party  to  claim  money  damages  (either
individually or in the aggregate with all other such claims under that contract)
from  Jiahui  or (C)  give  rise  to a right  of  acceleration  of any  material
obligation or loss of any material benefit under any such contract, agreement or
commitment.

     (l)  Properties.  Jiahui has good,  clear and  marketable  title to all the
tangible properties and tangible assets reflected in the latest balance sheet as
being owned by Jiahui or acquired after the date thereof which are, individually
or in the aggregate,  material to Jiahui's  business (except  properties sold or
otherwise  disposed  of  since  the  date  thereof  in the  ordinary  course  of
business), free and clear of all material liens.

     (m) Trademarks and Related Contracts. To the knowledge of Jiahui:

          (i) As used in this Agreement, the term "Trademarks" means trademarks,
service marks, trade names, Internet domain names, designs, slogans, and general
intangibles of like nature;  the term "Trade  Secrets" means  technology;  trade
secrets and other confidential  information,  know-how,  proprietary  processes,
formulae,  algorithms,   models,  and  methodologies;   the  term  "Intellectual
Property" means patents,  copyrights,  Trademarks,  applications  for any of the
foregoing,  and Trade Secrets;  the term "Company License  Agreements" means any
license  agreements  granting  any right to use or practice any rights under any
Intellectual  Property  (except for such agreements for  off-the-shelf  products
that are generally available or less than $25,000),  and any written settlements
relating to any Intellectual  Property,  to which Jiahui is a party or otherwise
bound;  and the term "Software" means any and all computer  programs,  including
any and all software  implementations  of algorithms,  models and methodologies,
whether in source code or object code.

          (ii)  To the  knowledge  of  Jiahui,  none  of  Jiahui's  Intellectual
Property or Company License  Agreements  infringe  materially upon the rights of
any third party that may give rise to a cause of action or claim against  Jiahui
or its successors.

3.03  Representations  and  Warranties  of Parent and Merger Sub.  Except as set
----------------------------------------------------------------
forth in the disclosure  schedule delivered by Parent to the Company at the time
of execution of this Agreement (the "Parent  Disclosure  Schedule"),  Parent and
Merger Sub represent and warrant to the Company as follows:

                                       12
<PAGE>

     (a) Organization,  Standing and Corporate Power. Each of Parent, Merger Sub
and the other  Parent  Subsidiaries  (as  defined in Section  3.02(b)) is (or at
Closing will be) duly organized, validly existing and in good standing under the
laws of the State of Colorado, as is applicable, and has the requisite corporate
power and  authority  to carry on its business as now being  conducted.  Each of
Parent,  Merger  Sub and the other  Parent  Subsidiaries  is duly  qualified  or
licensed to do business and is in good  standing in each  jurisdiction  in which
the nature of its business or the ownership or leasing of its  properties  makes
such  qualification  or licensing  necessary,  other than in such  jurisdictions
where  the  failure  to be so  qualified  or  licensed  (individually  or in the
aggregate) would not have a material adverse effect with respect to Parent.

     (b)  Subsidiaries.  In addition  to the Merger Sub,  the Parent has another
subsidiary Bangla Properties Inc. formed in the Province of Saskatchewan, Canada
(the  "Canada  Subsidiary")  to pursue its business  plans and to obtain  rental
properties and contracts. All the outstanding shares of capital stock of each of
the Parent's  subsidiary which is a corporation have been validly issued and are
fully paid and  nonassessable  and, except as set forth in the Parent Disclosure
Schedule,  are owned (of record and  beneficially) by Parent,  free and clear of
all  Liens.  Except  for  the  capital  stock  of its  subsidiaries,  which  are
corporations,  Parent does not own, directly or indirectly, any capital stock or
other ownership interest in any corporation,  partnership, business association,
joint  venture  or  other  entity.  Parent  hereby  irrevocably  covenants  that
immediately  after the Merger,  Parent shall spin off the Canada Subsidiary in a
private sale with all the  liabilities  of the Canada  Subsidiary to be borne by
the  purchaser.  Parent hereby  further  irrevocably  covenants  that a purchase
agreement  has been  entered  into  between  Parent and Shawn  Erickson  for the
spin-off of the Canada Subsidiary.  Shawn Erickson will pay US$100 to the Parent
and  receive  all  the  assets  of the  Canada  Subsidiary  and  assume  all the
liabilities of the Canada Subsidiary.

     (c) Capital  Structure.  The authorized capital stock of Parent consists of
100,000,000  shares of Parent Common  Stock,  no par value,  of which  7,325,000
shares of Parent Common Stock are issued and outstanding and no shares of Parent
Common Stock are issuable upon the exercise of outstanding warrants, convertible
notes,  options and otherwise.  Except as set forth above,  no shares of capital
stock or other equity securities of Parent are issued,  reserved for issuance or
outstanding.  All  outstanding  shares of capital  stock of Parent are,  and all
shares which may be issued pursuant to this Agreement will be, when issued, duly
authorized,  validly  issued,  fully  paid and  nonassessable,  not  subject  to
preemptive  rights,  and  issued in  compliance  with all  applicable  state and
federal laws  concerning  the issuance of  securities.  There are no outstanding
bonds,  debentures,  notes or other  indebtedness or other  securities of Parent
having the right to vote (or convertible into, or exchangeable  for,  securities
having  the right to vote) on any  matters on which  shareholders  of Parent may
vote. Except as set forth above, there are no outstanding  securities,  options,
warrants, calls, rights, commitments,  agreements,  arrangements or undertakings
of any kind to which  Parent or any of its  subsidiaries  is a party or by which
any of them is bound obligating Parent or any its subsidiaries to issue, deliver
or sell, or cause to be issued,  delivered or sold, additional shares of capital
stock or  other  equity  securities  of  Parent  or any of its  subsidiaries  or
obligating Parent or any of its subsidiaries to issue, deliver or sell, or cause
to be issued,  delivered or sold,  additional  shares of capital  stock or other
equity  securities of Parent or any of its subsidiaries or obligating  Parent or
any of its subsidiaries to issue, grant, extend or enter into any such security,
option, warrant, call, right, commitment, agreement, arrangement or undertaking.
There are no outstanding contractual obligations, commitments, understandings or
arrangements  of  Parent or any of its  subsidiaries  to  repurchase,  redeem or
otherwise  acquire or make any payment in respect of any shares of capital stock
of Parent or any of its subsidiaries. The authorized capital stock of Merger Sub

                                       13
<PAGE>

consists of 1,000  shares of common  stock (of which 900 shares are owned by the
Parent and 100 shares  owned by the  Company),  par value  $0.001 per share,  of
which 1,000 shares have been validly issued,  are fully paid and  nonassessable,
were issued in compliance with all applicable  state and federal laws concerning
the issuance of securities, and are owned by Parent, free and clear of any lien.

     (d) Authority;  Noncontravention.  Parent and Merger Sub have all requisite
corporate  authority  to  enter  into  this  Agreement  and  to  consummate  the
transactions  contemplated by this Agreement. The execution and delivery of this
Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub
of the transactions contemplated by this Agreement have been (or at Closing will
have been) duly  authorized  by all  necessary  corporate  action on the part of
Parent and Merger Sub.  This  Agreement  has been duly executed and delivered by
and constitutes a valid and binding obligation of each of Parent and Merger Sub,
enforceable  against each such party in accordance with its terms. The execution
and delivery of this agreement do not, and the  consummation of the transactions
contemplated  by this  Agreement  and  compliance  with the  provisions  of this
Agreement  will not,  conflict with, or result in any breach or violation of, or
default (with or without  notice or lapse of time, or both) under,  or give rise
to a right of  termination,  cancellation or acceleration of or "put" right with
respect to any obligation or to loss of a material  benefit under,  or result in
the creation of any lien upon any of the  properties  or assets of Parent or any
of its subsidiaries under, (i) the articles of incorporation or bylaws of Parent
or Merger Sub or the comparable charter or organizational documents of any other
subsidiary of Parent, (ii) any loan or credit agreement,  note, bond,  mortgage,
indenture, lease or other agreement,  instrument, permit, concession,  franchise
or license applicable to Parent, Merger Sub or any other subsidiary of Parent or
their  respective  properties or assets,  or (iii)  subject to the  governmental
filings and other matters referred to in the following  sentence,  any judgment,
order, decree,  statute,  law, ordinance,  rule, regulation or arbitration award
applicable  to  Parent,  Merger Sub or any other  subsidiary  of Parent or their
respective  properties  or assets,  other than,  in the case of clauses (ii) and
(iii), any such conflicts,  breaches,  violations,  defaults,  rights, losses or
liens that  individually or in the aggregate  could not have a material  adverse
effect with respect to Parent or could not prevent,  hinder or materially  delay
the  ability  of Parent to  consummate  the  transactions  contemplated  by this
Agreement.  No consent,  approval,  order or authorization  of, or registration,
declaration or filing with, or notice to, any Governmental Entity is required by
or with  respect to  Parent,  Merger  Sub or any other  subsidiary  of Parent in
connection with the execution and delivery of this Agreement by Parent or Merger
Sub or the  consummation  by Parent or Merger Sub, as the case may be, of any of
the  transactions  contemplated by this Agreement,  except for the filing of the
Articles of Merger with the Secretaries of State of Colorado,  as required,  and
such  other  consents,   approvals,   orders,   authorizations,   registrations,
declarations, states.

     (e) SEC Documents;  Undisclosed Liabilities.  Parent has filed all reports,
schedules,  forms,  statements and other documents as required by the Securities
and Exchange  Commission  (the "SEC") and Parent has delivered or made available
to the Company all reports,  schedules,  forms,  statements and other  documents
filed with the SEC  (collectively,  and in each case  including all exhibits and
schedules thereto and documents  incorporated by reference therein,  the "Parent
SEC Documents"). As of their respective dates, the Parent SEC Documents complied
in all material  respects with the  requirements  of the  Securities  Act or the
Securities  Exchange  Act of  1934,  as the  case  may  be,  and the  rules  and

                                       14
<PAGE>

regulations  of the SEC  promulgated  thereunder  applicable  to such Parent SEC
documents,  and  none  of the  Parent  SEC  Documents  (including  any  and  all
consolidated  financial  statements  included therein) as of such date contained
any  untrue  statement  of a material  fact or omitted to state a material  fact
required  to be stated  therein  or  necessary  in order to make the  statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.  Except to the extent  revised or superseded by a subsequent  filing
with the SEC (a copy of which has been provided to the Company prior to the date
of this  Agreement),  none of the  Parent SEC  Documents,  to the  knowledge  of
Parent's  management,  contains any untrue statement of a material fact or omits
to state any material  fact or omitted to state a material  fact  required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances  under which they were made, not misleading.  The consolidated
financial  statements of Parent included in such Parent SEC Documents  comply as
to form in all material respects with applicable accounting requirements and the
published  rules and  regulations  of the SEC with  respect  thereto,  have been
prepared in accordance with generally accepted accounting principles (except, in
the case of unaudited  consolidated  quarterly statements,  as permitted by Form
10-Q of the SEC)  applied on a  consistent  basis  during the  periods  involved
(except  as may be  indicated  in the notes  thereto)  and  fairly  present  the
consolidated  financial position of Parent and its consolidated  subsidiaries as
of the dates thereof and the  consolidated  results of operations and changes in
cash  flows  for the  periods  then  ended  (subject,  in the case of  unaudited
quarterly  statements,  to normal  year-end  audit  adjustments as determined by
Parent's  independent  accountants).  Except  as set  forth  in the  Parent  SEC
Documents, at the date of the most recent audited financial statements of Parent
included in the Parent SEC Documents, neither Parent nor any of its subsidiaries
had,  and since  such  date  neither  Parent  nor any of such  subsidiaries  has
incurred,  any  liabilities  or  obligations  of any  nature  (whether  accrued,
absolute,  contingent or otherwise)  which,  individually  or in the  aggregate,
could  reasonably be expected to have a material  adverse effect with respect to
Parent.

     (f) Absence of Certain Changes or Events. Except as disclosed in the Parent
SEC Documents,  since the date of the most recent financial  statements included
in the Parent SEC  Documents,  Parent has  conducted  its  business  only in the
ordinary course  consistent with past practice in light of its current  business
circumstances,  and  there is not and has not  been:  (i) any  material  adverse
change with respect to Parent;  (ii) any condition,  event or occurrence  which,
individually  or in the  aggregate,  could  reasonably  be  expected  to  have a
material  adverse effect or give rise to a material  adverse change with respect
to Parent;  (iii) any event which, if it had taken place following the execution
of this  Agreement,  would not have been  permitted  by Section 4.01 without the
prior consent of the Company;  or (iv) any condition,  event or occurrence which
could reasonably be expected to prevent,  hinder or materially delay the ability
of Parent to consummate the transactions contemplated by this Agreement.

     (g)  Interim  Operations  of Merger  Sub.  The Merger Sub was formed in the
State of  Colorado  solely  for the  purpose  of  engaging  in the  transactions
contemplated  hereby and has engaged in no other business activities and has (or
will have) conducted its operations only as contemplated hereby.

     (h) Litigation; Labor Matters; Compliance with Laws.

          (i) There is no suit,  action or proceeding or  investigation  pending
or, to the knowledge of Parent,  threatened  against or affecting  Parent or any

                                       15
<PAGE>

basis for any such suit, action,  proceeding or investigation that, individually
or in the  aggregate,  could  reasonably be expected to have a material  adverse
effect with respect to Parent or prevent, hinder or materially delay the ability
of Parent to consummate the transactions  contemplated by this Agreement, nor is
there any judgment, decree, injunction, rule or order of any Governmental Entity
or arbitrator outstanding against Parent having, or which, insofar as reasonably
could be foreseen by Parent, in the future could have, any such effect.

          (ii) Parent is not a party to, or bound by, any collective  bargaining
agreement,  contract or other agreement or  understanding  with a labor union or
labor  organization,  nor is it the subject of any proceeding  asserting that it
has  committed an unfair labor  practice or seeking to compel it to bargain with
any labor  organization as to wages or conditions of employment nor is there any
strike,  work  stoppage or other labor  dispute  involving it pending or, to its
knowledge,  threatened,  any of which could have a material  adverse effect with
respect to Parent.

          (iii)  The  conduct  of the  business  of  Parent  complies  with  all
statutes, laws, regulations,  ordinances,  rules, judgments,  orders, decrees or
arbitration awards applicable thereto.

     (i) Benefit  Plans.  Parent is not a party to any Benefit  Plan under which
Parent  currently has an obligation to provide benefits to any current or former
employee, officer or director of Parent.

     (j)  Certain  Employee  Payments.  Parent is not a party to any  employment
agreement  which could  result in the payment to any  current,  former or future
director  or  employee  of Parent of any  money or other  property  or rights or
accelerate  or provide  any other  rights or  benefits  to any such  employee or
director as a result of the transactions contemplated by this Agreement, whether
or not (i) such payment, acceleration or provision would constitute a "parachute
payment"  (within the meaning of Section  280G of the Code),  or (ii) some other
subsequent action or event would be required to cause such payment, acceleration
or provision to be triggered.

     (k) Tax Returns and Tax  Payments.  Parent has timely filed all Tax Returns
required to be filed by it, has paid all Taxes  shown  thereon to be due and has
provided adequate  reserves in its financial  statements for any Taxes that have
not been paid,  whether or not shown as being due on any  returns.  No  material
claim for unpaid  Taxes has been made or become a lien  against the  property of
Parent or is being asserted against Parent, no audit of any Tax Return of Parent
is being  conducted  by a tax  authority,  and no  extension  of the  statute of
limitations  on the  assessment  of any Taxes has been  granted by Parent and is
currently in effect.

     (l)  Environmental  Matters.  Parent  is in  material  compliance  with all
applicable Environmental Laws.

     (m) Material  Contract  Defaults.  Parent is not, or has not,  received any
notice or has any  knowledge  that any other party is, in default in any respect
under any Material Contract;  and there has not occurred any event that with the
lapse of time or the giving of notice or both would  constitute  such a material
default. For purposes of this Agreement, a Material Contract means any contract,
agreement or commitment that is effective as of the Closing Date to which Parent

                                       16
<PAGE>

is a party (i) with expected receipts or expenditures in excess of $10,000, (ii)
requiring Parent to indemnify any person, (iii) granting exclusive rights to any
party,  (iv) evidencing  indebtedness  for borrowed or loaned money in excess of
$10,000 or more,  including  guarantees of such  indebtedness,  or (v) which, if
breached  by Parent in such a manner  would (A) permit any other party to cancel
or terminate the same (with or without notice of passage of time) or (B) provide
a basis for any other party to claim money damages  (either  individually  or in
the aggregate with all other such claims under that contract) from Parent or (C)
give rise to a right of acceleration  of any material  obligation or loss of any
material benefit under any such contract, agreement or commitment.

     (n)  Properties.  Parent has good,  clear and  marketable  title to all the
tangible properties and tangible assets reflected in the latest balance sheet as
being owned by Parent or acquired after the date thereof which are, individually
or in the aggregate,  material to Parent's  business (except  properties sold or
otherwise  disposed  of  since  the  date  thereof  in the  ordinary  course  of
business), free and clear of all material liens.

     (o) Trademarks and Related Contracts.  Parent does not hold any Trademarks,
Trade  Secrets,  or  Intellectual  Property,  and is not  party  to any  license
agreements regarding such.

     (p) Board Recommendation.  The Board of Directors of Parent has unanimously
determined that the terms of the Merger are fair to and in the best interests of
the shareholders of Parent.

                                   ARTICLE IV:
                                   -----------
                              COVENANTS RELATING TO
                  CONDUCT OF BUSINESS PRIOR TO AND POST MERGER

4.01 Conduct of Company and Parent.  From the date of this  Agreement  and until
----------------------------------
the  Effective  Time of the  Merger,  or until  the  prior  termination  of this
Agreement, Company and Parent shall not, unless mutually agreed to in writing:

     (a) engage in any transaction,  except in the normal and ordinary course of
business, or create or suffer to exist any Lien or other encumbrance upon any of
their  respective  assets or which will not be  discharged  in full prior to the
Effective Time of the Merger;

     (b) sell,  assign or otherwise  transfer any of their assets,  or cancel or
compromise  any debts or claims  relating to their  assets,  other than for fair
value, in the ordinary course of business, and consistent with past practice;

     (c)  fail to use  reasonable  efforts  to  preserve  intact  their  present
business  organizations,  keep  available  the services of their  employees  and
preserve  its  material  relationships  with  customers,  suppliers,  licensors,
licensees,  distributors and others,  to the end that its good will and on-going
business not be impaired prior to the Effective Time of the Merger;

     (d) except for matters related to complaints by former employees related to
wages,  suffer or permit any  material  adverse  change to occur with respect to
Company and Parent or their business or assets; or

                                       17
<PAGE>

     (e) make any material  change with respect to their  business in accounting
or bookkeeping methods, principles or practices, except as required by GAAP.

                                   ARTICLE V:
                                   ----------
                              ADDITIONAL AGREEMENTS

5.01 Access to Information; Confidentiality.
-------------------------------------------

     (a) The Company shall,  and shall cause its officers,  employees,  counsel,
financial  advisors  and other  representatives  to,  afford  to Parent  and its
representatives reasonable access during normal business hours during the period
prior to the  Effective  Time of the Merger to its and to  Jiahui's  properties,
books,  contracts,  commitments,  personnel and records and, during such period,
the Company  shall,  and shall cause its and Jiahui's  officers,  employees  and
representatives to, furnish promptly to Parent all information  concerning their
respective business, properties,  financial condition,  operations and personnel
as such other party may from time to time reasonably  request.  For the purposes
of determining the accuracy of the  representations and warranties of the Parent
and Merger Sub set forth herein and  compliance  by the Parent and Merger Sub of
their respective obligations hereunder, during the period prior to the Effective
Time of the Merger,  Parent  shall  provide the Company and its  representatives
with  reasonable  access  during normal  business  hours to its and Merger Sub's
properties,  books,  contracts,  commitments,  personnel  and  records as may be
necessary to enable the Company to confirm the  accuracy of the  representations
and  warranties  of Parent  and Merger Sub set forth  herein and  compliance  by
Parent and Merger Sub of their obligations  hereunder,  and, during such period,
Parent  shall,  and  shall  cause  its  subsidiaries,  officers,  employees  and
representatives  to, furnish promptly to the Company upon its request (i) a copy
of each report, schedule,  registration statement and other document filed by it
during such period pursuant to the  requirements of federal or state  securities
laws  and  (ii) all  other  information  concerning  its  business,  properties,
financial condition,  operations and personnel as such other party may from time
to time  reasonably  request.  Except as required by law,  each of the  Company,
Merger  Sub,  and Parent  will hold,  and will cause its  respective  directors,
officers,  employees,   accountants,   counsel,  financial  advisors  and  other
representatives and affiliates to hold, any nonpublic information in confidence.

     (b) No  investigation  pursuant  to this  Section  5.01  shall  affect  any
representations  or  warranties of the parties  herein or the  conditions to the
obligations of the parties hereto.

5.02 Best  Efforts.  Upon the terms and subject to the  conditions  set forth in
------------------
this  Agreement,  each of the parties agrees to use its best efforts to take, or
cause to be taken,  all actions,  and to do, or cause to be done,  and to assist
and cooperate with the other parties in doing, all things  necessary,  proper or
advisable to  consummate  and make  effective,  in the most  expeditious  manner
practicable,  the  Merger  and  the  other  transactions  contemplated  by  this
Agreement.  Parent,  Merger Sub and the Company  will use their best efforts and
cooperate with one another (i) in promptly  determining  whether any filings are
required to be made or consents,  approvals,  waivers, permits or authorizations
are required to be obtained (or, which if not obtained, would result in an event

                                       18
<PAGE>

of default,  termination or acceleration of any agreement or any put right under
any agreement)  under any applicable law or regulation or from any  governmental
authorities or third parties, including parties to loan agreements or other debt
instruments  and  including  such  consents,   approvals,  waivers,  permits  or
authorizations as may be required to transfer the assets and related liabilities
of the  Company to the  Merger  Sub in  promptly  making  any such  filings,  in
furnishing information required in connection therewith and in timely seeking to
obtain  any such  consents,  approvals,  permits or  authorizations  and (ii) in
facilitating each other's due diligence  investigations.  Parent and the Company
shall mutually  cooperate in order to facilitate the achievement of the benefits
reasonably anticipated from the Merger.

5.03  Public  Announcements.  Parent and Merger  Sub,  on the one hand,  and the
---------------------------
Company,  on the other hand,  will consult with each other before  issuing,  and
provide each other the opportunity to review and comment upon, any press release
or other public statements with respect to the transactions contemplated by this
Agreement  and shall not issue any such press  release  or make any such  public
statement  prior to such  consultation,  except as may be required by applicable
law or court  process.  The  parties  agree that the  initial  press  release or
releases  to be issued with  respect to the  transactions  contemplated  by this
Agreement  shall  be  mutually  agreed  upon  prior  to  the  issuance  thereof.
Notwithstanding  the foregoing,  Company may disclose the contemplated Merger in
letters to the  Company's  optionees  for purposes of  fulfilling  the Company's
obligations under the Company Option Plan to the said optionees.

5.04 Expenses. All costs and expenses incurred in connection with this Agreement
-------------
and the  transactions  contemplated  hereby shall be paid by the party incurring
such expenses.

5.05 Directors and Officers. Upon the Effective Time of the Merger, all officers
---------------------------
of the Parent other than the sole director  shall have resigned and Parent shall
have taken all action to cause  Ping'an Wu to be elected as the  Chairman of its
Board of Directors and its officers to consist of the  following:  Ping'an Wu as
the Chief Executive  Officer,  Shuo (Steven) Lou as the Chief Financial Officer,
Yingming  Wang  as  the  Chief  Operation  Officer,  and  Xingguo  Wang  as  the
Independent Director of the Parent.

5.06 No  Solicitation.  Except as  previously  agreed to in writing by the other
---------------------
party,  neither Company or Parent shall authorize or permit any of its officers,
directors,  agents,  representatives,  or advisors to (a)  solicit,  initiate or
encourage  or take  any  action  to  facilitate  the  submission  of  inquiries,
proposals  or offers  from any  person  relating  to any matter  concerning  any
merger,  consolidation,   business  combination,   recapitalization  or  similar
transaction   involving  Company  or  Parent,   respectively,   other  than  the
transaction  contemplated  by  this  Agreement  or  any  other  transaction  the
consummation of which would or could reasonably be expected to impede, interfere
with,  prevent or delay the Merger or which would or could be expected to dilute
the benefits to the Company of the transactions  contemplated hereby. Company or
Parent  will  immediately   cease  and  cause  to  be  terminated  any  existing
activities,  discussions and negotiations with any parties conducted  heretofore
with respect to any of the foregoing.

                                   ARTICLE VI:
                                   -----------
                              CONDITIONS PRECEDENT

                                       19
<PAGE>

6.01 Conditions to Each Party's  Obligation to Effect the Merger. The respective
----------------------------------------------------------------
obligation of each party to effect the Merger is subject to the  satisfaction or
waiver on or prior to the Closing Date of the following conditions:

     (a) Opinions of Counsel.  Execution and delivery of the  following:  (i) to
the Company,  an opinion of counsel from Parent's  legal counsel that the terms,
conditions  and  structure  of this Merger  satisfy  Colorado  law;  (ii) to the
Parent,  an opinion of counsel from the Company's  legal counsel that the terms,
conditions and structure of this Merger satisfy  British Virgin Islands law; and
(iii) to the Parent,  an opinion of counsel from Jiahui's legal counsel that the
terms,  conditions and structure of this Merger satisfy the People's Republic of
China law.

     (b)  No  Injunctions  or  Restraints.   No  temporary   restraining  order,
preliminary  or  permanent  injunction  or other  order  issued  by any court of
competent  jurisdiction or other legal  restraint or prohibition  preventing the
consummation of the Merger shall be in effect.

     (c) No  Dissent.  Holders of no more than five  percent  (5%) of the Merger
Sub's Common Stock shall have dissented to the Merger.

6.02  Conditions to  Obligations  of Parent and Merger Sub. The  obligations  of
----------------------------------------------------------
Parent and Merger Sub to effect the Merger are further  subject to the following
conditions:

     (a) Representations  and Warranties.  The representations and warranties of
the  Company  set  forth in this  Agreement  shall be true  and  correct  in all
material  respects,  in each case as of the date of this Agreement and as of the
Closing  Date as though made on and as of the Closing  Date.  Parent  shall have
received a  certificate  signed on behalf of the Company by the president of the
Company to such effect.

     (b)  Performance  of  Obligations  of the Company.  The Company  shall have
performed the obligations required to be performed by it under this Agreement at
or prior to the Closing  Date  (except for such  failures to perform as have not
had  or  could  not  reasonably  be  expected,  either  individually  or in  the
aggregate,  to have a material  adverse  effect  with  respect to the Company or
adversely  affect the  ability of the  Company to  consummate  the  transactions
herein contemplated or perform its obligations hereunder), and Parent shall have
received a  certificate  signed on behalf of the Company by the president of the
Company to such effect.

     (c)  Consents,  etc.  Parent  shall  have  received  evidence,  in form and
substance reasonably satisfactory to it, that such licenses,  permits, consents,
approvals, authorizations, qualifications and orders of governmental authorities
and other  third  parties  as  necessary  in  connection  with the  transactions
contemplated hereby have been obtained.

     (d)  No  Litigation.  There  shall  not be  pending  or  threatened  by any
Governmental  Entity any suit,  action or proceeding (or by any other person any
suit,  action or proceeding which has a reasonable  likelihood of success),  (i)
challenging or seeking to restrain or prohibit the consummation of the Merger or
any of the other  transactions  contemplated  by this  Agreement  or  seeking to
obtain from Parent or any of its  subsidiaries  any damages that are material in
relation  to Parent  and its  subsidiaries  taken as a whole,  (ii)  seeking  to

                                       20
<PAGE>

prohibit or limit the  ownership or  operation by the Company,  Parent or any of
its  subsidiaries  of any  material  portion  of the  business  or assets of the
Company,  Parent or any of its  subsidiaries,  or to dispose of or hold separate
any material portion of the business or assets of the Company,  Parent or any of
its  subsidiaries,  as a result of the  Merger or any of the other  transactions
contemplated  by this  Agreement,  (iii)  seeking to impose  limitations  on the
ability of Parent or Merger Sub to acquire or hold,  or exercise  full rights of
ownership  of,  any  shares  of  Company  Common  Stock or  Common  Stock of the
Surviving  Corporation,  including,  without  limitation,  the right to vote the
Company Common Stock or Common Stock of the Surviving Corporation on all matters
properly  presented  to  the  shareholders  of  the  Company  or  the  Surviving
Corporation,  respectively,  or (iv)  seeking to  prohibit  Parent or any of its
subsidiaries  from effectively  controlling in any material respect the business
or operations of the Company.

     (e) Due Diligence Investigation. Parent shall be satisfied with the results
of its due  diligence  investigation  of the  Company and Jiahui in its sole and
absolute discretion.

6.03  Conditions to Obligation of the Company.  The obligation of the Company to
---------------------------------------------
effect the Merger is further subject to the following conditions:

     (a) Representations  and Warranties.  The representations and warranties of
Parent and Merger Sub set forth in this  Agreement  shall be true and correct in
all material  respects,  in each case as of the date of this Agreement and as of
the Closing Date as though made on and as of the Closing Date. The Company shall
have  received  a  certificate  signed on behalf of Parent by the  president  of
Parent to such effect.

     (b)  Performance of Obligations of Parent and Merger Sub. Parent and Merger
Sub shall have performed the obligations  required to be performed by them under
this  Agreement  at or prior to the Closing  Date  (except for such  failures to
perform as have not had or could not reasonably be expected, either individually
or in the aggregate, to have a material adverse effect with respect to Parent or
adversely  affect the ability of Parent to consummate  the  transactions  herein
contemplated or perform its obligations  hereunder),  and the Company shall have
received a certificate  signed on behalf of Parent by the president of Parent to
such effect.

     (c) No  Litigation.  There  shall not be  pending or  threatened  any suit,
action or  proceeding  before any court,  Governmental  Entity or authority  (i)
pertaining to the transactions contemplated by this Agreement or (ii) seeking to
prohibit or limit the  ownership or  operation by the Company,  Parent or any of
its subsidiaries,  or to dispose of or hold separate any material portion of the
business or assets of the Company, Parent or of its any subsidiaries.

     (d)  Consents,  etc.  Company  shall have  received  evidence,  in form and
substance reasonably satisfactory to it, that such licenses,  permits, consents,
approvals, authorizations, qualifications and orders of governmental authorities
and other  third  parties  as  necessary  in  connection  with the  transactions
contemplated hereby have been obtained.

     (e) Filing of Merger  Agreement.  Parent shall have filed or will  promptly
file after the  Closing  Date in the office of the  Secretary  of State or other
office of each jurisdiction in which such filings are required for the Merger to
become effective.

                                       21
<PAGE>

     (f) Resignations.  Parent shall deliver to the Company written resignations
of all of the  officers  of the Parent and  evidence  of  election  of those new
directors and officers as further described in Section 5.06 herein.

     (g) 8-K. The post-merger  company shall file a Form 8-K with the SEC within
four days of the Closing Date  containing  audited  financial  statements of the
Company as required by Regulation S-X.

                                  ARTICLE VII:
                                  ------------
                        TERMINATION, AMENDMENT AND WAIVER

7.01  Termination.  This  Agreement may be terminated  and abandoned at any time
-----------------
prior to the Effective Time of the Merger:

     (a) by mutual written consent of Parent and the Company;

     (b) by either Parent or the Company if any  Governmental  Entity shall have
issued an  order,  decree  or  ruling  or taken  any  other  action  permanently
enjoining,  restraining  or  otherwise  prohibiting  the Merger and such  order,
decree, ruling or other action shall have become final and nonappealable;

     (c) by  either  Parent or the  Company  if the  Merger  shall not have been
consummated  on or before  March 15, 2005 (other than as a result of the failure
of the party  seeking to terminate  this  Agreement  to perform its  obligations
under this Agreement  required to be performed at or prior to the Effective Time
of the Merger);

     (d) by Parent, if a material adverse change shall have occurred relative to
the Company;

     (e) by Parent,  if the Company  willfully  fails to perform in any material
respect any of its material obligations under this Agreement; or

     (f) by the Company,  if Parent or Merger Sub willfully  fails to perform in
any material respect any of their respective obligations under this Agreement.

7.02 Effect of  Termination.  In the event of  termination  of this Agreement by
---------------------------
either the Company or Parent as provided in Section 7.01,  this Agreement  shall
forthwith become void and have no effect, without any liability or obligation on
the part of Parent, Merger Sub or the Company,  other than the provisions of the
last  sentence of Section  5.01(a) and this Section 7.02.  Nothing  contained in
this  Section  shall  relieve  any party for any breach of the  representations,
warranties, covenants or agreements set forth in this Agreement.

7.03  Amendment.  This  Agreement may not be amended  except by an instrument in
---------------
writing signed on behalf of each of the parties.

                                       22
<PAGE>

7.04 Extension;  Waiver.  Subject to Section  7.01(c),  at any time prior to the
-----------------------
Effective  Time of the  Merger,  the  parties  may (a)  extend  the time for the
performance of any of the  obligations  or other acts of the other parties,  (b)
waive any inaccuracies in the representations  and warranties  contained in this
Agreement or in any document delivered pursuant to this Agreement,  or (c) waive
compliance with any of the agreements or conditions contained in this Agreement.
Any  agreement  on the part of a party to any such  extension or waiver shall be
valid only if set forth in an  instrument  in  writing  signed on behalf of such
party.  The failure of any party to this  Agreement  to assert any of its rights
under this Agreement or otherwise shall not constitute a waiver of such rights.

7.05 Procedure for Termination, Amendment, Extension or Waiver. A termination of
--------------------------------------------------------------
this Agreement pursuant to Section 7.01, an amendment of this Agreement pursuant
to Section 7.03 or an extension or waiver of this Agreement  pursuant to Section
7.04 shall, in order to be effective,  require in the case of Parent, Merger Sub
or the Company, action by its Board of Directors.

7.06 Return of Documents.  In the event of termination of this Agreement for any
------------------------
reason,  Parent  and  Company  will  return to the other  party all of the other
party's documents,  work papers, and other materials (including copies) relating
to the transactions  contemplated in this Agreement,  whether obtained before or
after  execution  of  this  Agreement.  Parent  and  Company  will  not  use any
information  so obtained  from the other party for any purpose and will take all
reasonable steps to have such other party's information kept confidential.

                                  ARTICLE VIII:
                                  -------------
                       INDEMNIFICATION AND RELATED MATTERS

8.01  Survival  of  Representations  and  Warranties.  The  representations  and
----------------------------------------------------
warranties in this  Agreement or in any  instrument  delivered  pursuant to this
Agreement  shall survive the Effective  Time of the Merger until the  Settlement
Date.

8.02 Indemnification.
--------------------

     (a)  Irrespective of any due diligence  investigation  conducted by Company
with regard to the transactions  contemplated hereby, the Parent shall indemnify
and hold the  Company  and each of its  officers  and  directors  (the  "Company
Representatives")   harmless   from  and  against   any  and  all   liabilities,
obligations,  damages,  losses,  deficiencies,  costs,  penalties,  interest and
expenses (collectively, "Losses") arising out of, based upon, attributable to or
resulting from any and all Losses  incurred or suffered by the Company or any of
the  Company  Representatives  resulting  from or arising out of any breach of a
representation, warranty or covenant made by Parent as set forth herein.

                                       23
<PAGE>

     (b) The  Company  shall  indemnify  and  hold  the  Parent  and each of its
officers and directors (the "Parent Representatives")  harmless from and against
any and all liabilities,  obligations,  damages,  losses,  deficiencies,  costs,
penalties, interest and expenses (collectively,  "Losses") arising out of, based
upon,  attributable to or resulting from any and all Losses incurred or suffered
by the Parent or any of the Parent Representatives resulting from or arising out
of any breach of a  representation,  warranty or covenant made by Company as set
forth herein.

8.03 Notice of Indemnification.  In the event any proceeding shall be threatened
------------------------------
or  instituted  or any claim or demand  shall be  asserted  in  respect of which
payment  may be sought  by the  Parent or any  Parent  Representative  or by the
Company or any Company  Representative,  against  the other,  as the case may be
(each an "Indemnitee"), under the provisions of this Article VIII (an "Indemnity
Claim"),  the Indemnitee shall promptly cause written notice of the assertion of
any such Claim of which it has knowledge  which is covered by this  indemnity to
be forwarded to the Parent  Representative,  who shall be Shawn Erickson, or the
Company.   Any  notice  of  an   Indemnity   Claim  by  reason  of  any  of  the
representations, warranties or covenants contained in this Agreement shall state
specifically the representation,  warranty or covenant with respect to which the
Indemnity  Claim is made,  the facts  giving  rise to an  alleged  basis for the
Claim, and the amount of the liability asserted against the Indemnitor by reason
of the  Indemnity  Claim.  Within ten (10) days of the  receipt of such  written
notice,  the Parent  Representative  or the  Company,  as the case may be, shall
notify the  Indemnitee  in writing of its intent to contest the  indemnification
obligation  (a  "Contest")  or to  accept  liability  hereunder.  If the  Parent
Representative  or the Company,  as the case may be, does not respond within ten
(10) days of the request of such  written  notice to such  written  notice,  the
Parent  Representative  or the  Company,  as the case may be,  will be deemed to
accept liability as it relates to the Merger  Consideration.  In such event, the
Indemnitee will deliver a Notice to the Parent that there is a determination  of
liability to this Section 8.03 and the Parent shall be  instructed to adjust the
Merger  Consideration.  In the event of a  Contest,  within ten (10) days of the
receipt of the written notice thereof,  the parties will select  arbitrators and
submit the  dispute  to binding  arbitration  before  the  American  Arbitration
Association at a venue to be located in New York City. The arbitrators  shall be
selected by the mutual agreement of the parties. If the parties can not agree on
the  arbitrator,   each  may  select  one  arbitrator  and  the  two  designated
arbitrators shall select the third  arbitrator.  If the third arbitrator can not
be agreed upon,  the American  Arbitration  Association in New York shall select
the third  arbitrator.  A decision by the  individual  arbitrator  or a majority
decision by the three  arbitrators  shall be final and binding upon the parties.
Such arbitration shall follow the rules of the American Arbitration  Association
and must be resolved by the arbitrators within thirty (30) days after the matter
is submitted to arbitration. If the arbitration is ruled favorably for Parent so
that there is a determination of a Loss, the Indemnitee will deliver a Notice to
Parent that there is a determination of liability  pursuant to this Section 8.03
and the Parent shall adjust the Merger Consideration Deposit accordingly.

                                       24
<PAGE>

                                   ARTICLE IX:
                                   -----------
                               GENERAL PROVISIONS

9.01 Notices. All notices,  requests,  claims,  demands and other communications
------------
under this Agreement  shall be in writing and shall be deemed given if delivered
personally  or  sent  by  facsimile,   electronic  mail,  or  overnight  courier
(providing  proof of delivery) to the parties at the following  addresses (or at
such other address for a party as shall be specified by like notice):

     (a)  if to Parent or Parent Representative, to:

     Attention:  Shawn Erickson
     280 Nelson Street
     Suite 448
     Vancouver A1 V6B 2E2
     Canada
     (408) 640-8918

     (b)  if to the Company, to:

     Attention: Ping'an Wu
     111 Changan Middle Road, 15th Floor, Xi'an, China

9.02 Definitions. For purposes of this Agreement:
----------------

     (a) an  "affiliate"  of any person means  another  person that  directly or
indirectly,  through one or more intermediaries,  controls, is controlled by, or
is under common control with, such first person;

     (b) "material adverse change" or "material adverse effect" means, when used
in  connection  with the  Company or Parent,  any change or effect  that  either
individually  or in the  aggregate  with all other  such  changes  or effects is
materially adverse to the business, assets, properties,  condition (financial or
otherwise) or results of operations of such party and its subsidiaries  taken as
a whole (after  giving effect in the case of Parent to the  consummation  of the
Merger);

     (c) "person" means an individual, corporation,  partnership, joint venture,
association, trust, unincorporated organization or other entity; and

     (d) a  "subsidiary"  of any person means another  person,  an amount of the
voting  securities,  other voting ownership or voting  partnership  interests of
which is  sufficient  to elect at least a majority of its board of  Directors or
other governing body (or, if there are no such voting  interests,  fifty percent
(50%) or more of the equity  interests of which) is owned directly or indirectly
by such first person.

9.03  Interpretation.  When a reference is made in this  Agreement to a Section,
--------------------
Exhibit or Schedule,  such reference  shall be to a Section of, or an Exhibit or
Schedule to, this Agreement unless otherwise  indicated.  The headings contained
in this  Agreement are for  reference  purposes only and shall not affect in any

                                       25
<PAGE>

way  the  meaning  or  interpretation  of this  Agreement.  Whenever  the  words
"include",  "includes" or "including" are used in this Agreement,  they shall be
deemed to be followed by the words "without limitation".

9.04 Entire  Agreement;  No  Third-Party  Beneficiaries.  This Agreement and the
-------------------------------------------------------
other  agreements  referred  to herein  constitute  the  entire  agreement,  and
supersede all prior agreements and understandings,  both written and oral, among
the parties with respect to the subject matter of this Agreement. This Agreement
is not  intended to confer upon any person  other than the parties any rights or
remedies.

9.05  Governing  Law.  This  Agreement  shall be governed  by, and  construed in
--------------------
accordance with, the laws of the State of New York,  regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws thereof.

9.06  Assignment.  Neither this  Agreement  nor any of the rights,  interests or
----------------
obligations  under this  Agreement  shall be assigned,  in whole or in part,  by
operation of law or otherwise  by any of the parties  without the prior  written
consent of the other parties.  Subject to the preceding sentence, this Agreement
will be  binding  upon,  inure to the  benefit  of, and be  enforceable  by, the
parties and their respective successors and assigns.

9.07 Enforcement.  The parties agree that irreparable  damage would occur in the
----------------
event  that  any of the  provisions  of this  Agreement  were not  performed  in
accordance  with  their  specific  terms  or  were  otherwise  breached.  It  is
accordingly  agreed that the  parties  shall be  entitled  to an  injunction  or
injunctions to prevent  breaches of this  Agreement and to enforce  specifically
the terms and  provisions  of this  Agreement in any court of the United  States
located in the State of Colorado,  this being in addition to any other remedy to
which they are entitled at law or in equity.  In  addition,  each of the parties
hereto  (a) agrees  that it will not  attempt  to deny or defeat  such  personal
jurisdiction  or venue by motion or other request for leave from any such court,
and (b) agrees that it will not bring any action  relating to this  Agreement or
any of the transactions  contemplated by this Agreement in any state court other
than such court.

9.08 Severability. Whenever possible, each provision or portion of any provision
-----------------
of this  Agreement  will be  interpreted  in such manner as to be effective  and
valid under  applicable  law but if any provision or portion of any provision of
this Agreement is held to be invalid,  illegal or  unenforceable  in any respect
under  any  applicable  law  or  rule  in  any  jurisdiction,  such  invalidity,
illegality or unenforceability will not affect any other provision or portion of
any  provision  in such  jurisdiction,  and  this  Agreement  will be  reformed,
construed  and  enforced in such  jurisdiction  as if such  invalid,  illegal or
unenforceable  provision or portion of any  provision  had never been  contained
herein.

9.09  Counterparts.  This  Agreement  may be executed  in one or more  identical
------------------
counterparts,  all of which shall be considered one and the same  instrument and
shall  become  effective  when one or more  such  counterparts  shall  have been
executed by each of the parties and delivered to the other parties.

                                       26
<PAGE>

     IN WITNESS  WHEREOF,  the  undersigned  have caused  their duly  authorized
officers  (or  representatives  in the  case  of  Merger  Sub) to  execute  this
Agreement as of the date first above written.

Bangla Property Management, Inc.
--------------------------------

By:

----------------------------
Name: Shawn Erickson
Title: President & CEO

Wollaston Industrial Limited
----------------------------

By:

----------------------------
Name:  Ping'an Wu
Title: President

China Property Holding, Inc.
----------------------------

By:

----------------------------
Name:  Ping'an Wu
Title: President

                                       27M-GAB Amended and Restated Stock Option Plan

M-GAB DEVELOPMENT CORPORATION

 

Amended and Restated 2001 Omnibus Securities Plan

 

 

 

TABLE OF CONTENTS

 

 

		 	 	 	Page 
	 	 	 	 	 
	
      Section
      1.
	 	 	
      PURPOSE
	
      1

	 	 	 	 	 
	
      Section
      2.
	 	 	
      DEFINITIONS
	
      1

	 	 	 	 	 
	 	
      (a)
	 	
      “Award”
	
      1

	 	
      (b)
	 	
      “Board
      of Directors”
	
      1

	 	
      (c)
	 	
      “Change
      in Control”
	
      1

	 	
      (d)
	 	
      “Code”
	
      1

	 	
      (e)
	 	
      “Commission”
	
      1

	 	
      (f)
	 	
      “Committee”
	
      1

	 	
      (g)
	 	
      “Common-Law
      Employee”
	
      1

	 	
      (h)
	 	
      “Company”
	
      2

	 	
      (i)
	 	
      “Employee”
	
      2

	 	
      (j)
	 	
      “Exchange
      Act”
	
      2

	 	
      (k)
	 	
      “Exercise
      Price”
	
      2

	 	
      (l)
	 	
      “Fair
      Market Value”
	
      2

	 	
      (m)
	 	
      “Incentive
      Stock Option or “ISO”
	
      2

	 	
      (n)
	 	
      “Non-Employee
      Director or Outside Director”
	
      2

	 	
      (o)
	 	
      “Nonstatutory
      Option or “NSO”
	
      2

	 	
      (p)
	 	
      “Offeree”
	
      3

	 	
      (q)
	 	
      “Option”
	
      3

	 	
      (r)
	 	
      “Optionee”
	
      3

	 	
      (s)
	 	
      “Participant”
	
      3

	 	
      (t)
	 	
      “Plan”
	
      3

	 	
      (u)
	 	
      “Purchase
      Price”
	
      3

	 	
      (v)
	 	
      “Restricted
      Share”
	
      3

	 	
      (w)
	 	
      “Service”
	
      3

	 	
      (x)
	 	
      “Share”
	
      3

	 	
      (y)
	 	
      “Stock”
	
      3

	 	
      (z)
	 	
      “Stock
      Option Agreement”
	
      3

	 	
      (aa)
	 	
      “Stock
      Purchase Agreement”
	
      3

	 	
      (bb)
	 	
      “Subsidiary”
	
      3

	 	
      (cc)
	 	
      “Total
      and Permanent Disability”
	
      3

	 	
      (dd)
	 	
      “W-2
      Payroll”
	
      3

	 	 	 	 	 
	
      Section
      3.
	 	 	
      ADMINISTRATION
	
      4

	 	 	 	 	 
	 	
      (a)
	 	
      Committee
      Membership
	
      4

	 	
      (b)
	 	
      Committee
      Procedures
	
      4

	 	
      (c)
	 	
      Committee
      Responsibilities
	
      4

	 	
      (d)
	 	
      Committee
      Liability
	
      4

	 	
      (e)
	 	
      Financial
      Reports
	
      4

	 	 	 	 	 
	
      Section
      4.
	 	 	
      ELIGIBILITY
	
      4

	 	 	 	 	 
	 	
      (a)
	 	
      General
      Rule
	
      4

	 	
      (b)
	 	
      Non-Employee
      Directors
	
      4

	 	
      (c)
	 	
      Ten-Percent
      Shareholders
	
      4

	 	
      (d)
	 	
      Attribution
      Rules
	
      4

	 	
      (e)
	 	
      Outstanding
      Stock
	
      5

	 	 	 	 	 

 

 

- i
-

 

	 	 	 	 	 
	
      Section
      5.
	 	 	
      STOCK
      SUBJECT TO PLAN
	
      5

	 	 	 	 	 
	 	
      (a)
	 	
      Basic
      Limitation
	
      5

	 	
      (b)
	 	
      Additional
      Shares
	
      5

	 	 	 	 	 
	
      Section
      6.
	 	 	
      TERMS
      AND CONDITIONS OF AWARDS OR SALES
	
      5

	 	 	 	 	 
	 	
      (a)
	 	
      Stock
      Purchase Agreement
	
      5

	 	
      (b)
	 	
      Duration
      of Offers
	
      5

	 	
      (c)
	 	
      Purchase
      Price
	
      5

	 	
      (d)
	 	
      Payment
      for Shares
	
      5

	 	
      (e)
	 	
      Exercise
      of Awards on Termination of Service
	
      6

	 	 	 	 	 
	
      Section
      7.
	 	 	
      TERMS
      AND CONDITIONS OF OPTIONS
	
      6

	 	 	 	 	 
	 	
      (a)
	 	
      Stock
      Option Agreement
	
      6

	 	
      (b)
	 	
      Number
      of Shares
	
      6

	 	
      (c)
	 	
      Exercise
      Price
	
      6

	 	
      (d)
	 	
      Exercisability
	
      6

	 	
      (e)
	 	
      Effect
      of Change in Control
	
      6

	 	
      (f)
	 	
      Term
	
      6

	 	
      (g)
	 	
      Exercise
      of Options on Termination of Service
	
      6

	 	
      (h)
	 	
      Payment
      of Option Shares
	
      7

	 	
      (i)
	 	
      Modification,
      Extension and Assumption of Options
	
      7

	 	 	 	 	 
	
      Section
      8.
	 	 	
      ADJUSTMENT
      OF SHARES
	
      7

	 	 	 	 	 
	 	
      (a)
	 	
      General
	
      7

	 	
      (b)
	 	
      Reorganizations
	
      7

	 	
      (c)
	 	
      Reservation
      of Rights
	
      7

	 	 	 	 	 
	
      Section
      9.
	 	 	
      WITHHOLDING
      TAXES
	
      7

	 	 	 	 	 
	 	
      (a)
	 	
      General
	
      7

	 	
      (b)
	 	
      Share
      Withholding
	
      8

	 	
      (c)
	 	
      Cashless
      Exercise/Pledge
	
      8

	 	
      (d)
	 	
      Other
      Forms of Payment
	
      8

	 	 	 	 	 
	
      Section
      10.
	 	 	
      ASSIGNMENT
      OR TRANSFER OF AWARDS
	
      8

	 	 	 	 	 
	 	
      (a)
	 	
      General
	
      8

	 	
      (b)
	 	
      Trusts
	
      8

	 	 	 	 	 
	
      Section
      11.
	 	 	
      LEGAL
      REQUIREMENTS
	
      8

	 	 	 	 	 
	 	
      (a)
	 	
      Securities
      Act of 1933
	
      8

	 	
      (b)
	 	
      Investment
      Company Act of 1940
	
      8

	 	 	 	 	 
	
      Section
      12.
	 	 	
      NO
      EMPLOYMENT RIGHTS
	
      8

	 	 	 	 	 
	
      Section
      13.
	 	 	
      DURATION
      AND AMENDMENTS
	
         9

	 	 	 	 	 
	 	
      (a)
	 	
      Term
      of the Plan
	
      9

	 	
      (b)
	 	
      Right
      to Amend or Terminate the Plan
	
      9

	 	
      (c)
	 	
      Effect
      of Amendment or Termination
	
      9

	 	 	 	 	 
	 	 	 	 	 

 

 

- ii
-

 

 

M-GAB DEVELOPMENT CORPORATION

 

Amended and Restated 2001 Omnibus Securities
Plan

 

 

SECTION
1.
  PURPOSE.

 

The purpose of the M-GAB Development Corporation Amended and
Restated 2001 Omnibus Securities Plan (the “Plan”) is to offer selected
employees and directors an opportunity to acquire a proprietary interest in the
success of the Company, or to increase such interest, to encourage such selected
persons to remain in the employ of the Company and to attract new employees with
outstanding qualifications. The Plan seeks to achieve this purpose by providing
for Awards in the form of Options (which may constitute Incentive Stock Options
or Nonstatutory Stock Options). Awards may be granted under this Plan in
reliance upon federal and state securities law exemptions..

 

SECTION
2.   DEFINITIONS.

 

(a)  “Award”
shall mean any award of an Option or other right under the Plan.

 

(b)  “Board
of Directors” shall mean the Board of Directors of the Company, as
constituted from time to time.

 

(c)  “Change
in Control” shall mean:

 

(i)  The consummation of a merger, consolidation, sale
of the Company’s stock, or other reorganization of the Company (other than a
reincorporation of the Company), if after giving effect to such merger,
consolidation or other reorganization of the Company, the stockholders of the
Company immediately prior to such merger, consolidation or other reorganization
do not represent a majority interest of the holders of voting securities (on a
fully diluted basis) with the ordinary voting power to elect directors of the
surviving or resulting entity after such merger, consolidation or other
reorganization; or

 

(ii)  The
sale of all or substantially all of the assets of the Company to a third party
who is not an affiliate of the Company.

 

(iii)  The term Change in Control shall not include: (a)
a transaction the sole purpose of which is to change the state of the Company’s
incorporation, or (b) the Company’s initial public offering.

 

(d)  “Code” shall mean the Internal Revenue Code
of 1986, as amended.

 

(e)  “Commission”
shall mean the Securities and Exchange Commission.

 

(f)  “Committee”
shall mean a committee of the Board of Directors which is authorized to
administer the Plan under Section 3.

 

(g)  “Common-Law Employee” shall mean an
individual paid from W-2 Payroll of the Company or a Subsidiary. If, during any
period, the Company (or Subsidiary, as applicable) has not treated an individual
as a Common-Law Employee and, for that reason, has not paid such individual in a
manner which results in the issuance of a Form W-2 and withheld taxes with
respect to him or her, then that individual shall not be an eligible Employee
for that period, even if any person, court of law or government agency
determines, retroactively, that that individual is or was a Common-Law Employee
during all or any portion of that period.

 

- 1
-

(h)  “Company”
shall mean M-GAB Development Corporation, a Florida corporation. 

 

(i)  “Employee” shall mean (i) any
individual who is a Common-Law Employee of the Company or of a Subsidiary,
(ii) a member of the Board of Directors, including (without limitation) a
Non-Employee Director, or an affiliate of a member of the Board of Directors, or
(iii) a member of the board of directors of a Subsidiary. Service as a member of
the Board of Directors or a member of the board of directors of a Subsidiary
shall be considered employment for all purposes of the Plan except the second
sentence of Section 4(a).

 

(j)  “Exchange
Act” means the Securities and Exchange Act of 1934, as amended.

 

(k)  “Exercise Price” shall mean the amount for
which one Share may be purchased upon exercise of an Option, as specified by the
Committee in the applicable Stock Option Agreement.

 

(l)  “Fair Market Value” means the market price
of Shares, determined by the Committee as follows:

 

(i)   If the Shares were traded over-the-counter on
the date in question but were not traded on the NASDAQ Stock Market or the
NASDAQ National Market System, then the Fair Market Value shall be equal to the
mean between the last reported representative bid and asked prices quoted for
such date by the principal automated inter-dealer quotation system on which the
Shares are quoted or, if the Shares are not quoted on any such system, by the
“Pink Sheets” published by the National Quotation Bureau, Inc.;

 

(ii)   If the Shares were traded over-the-counter
on the date in question and were traded on the NASDAQ Stock Market or the NASDAQ
National Market System, then the Fair Market Value shall be equal to the
last-transaction price quoted for such date by the NASDAQ Stock Market or the
NASDAQ National Market;

 

(iii)   If the Shares were traded on a stock
exchange on the date in question, then the Fair Market Value shall be equal to
the closing price reported by the applicable composite transactions report for
such date; and

 

(iv)   If none of the foregoing provisions is
applicable, then the Fair Market Value shall be determined by the Committee in
good faith on such basis as it deems appropriate.

 

In all cases, the determination of Fair Market Value by the
Committee shall be conclusive and binding on all persons.

 

(m)  “Incentive Stock Option” or “ISO” shall mean
an employee incentive stock option described in Code section 422(b).

 

(n)  “Non-Employee Director” or “Outside
Director” shall mean a member of the Company’s Board of Directors who either
(i) is not a current employee or officer of the Company or its parent or a
subsidiary, does not receive compensation (directly or indirectly) from the
Company or its parent or a subsidiary for services rendered as a consultant or
in any capacity other than as a director (except for an amount as to which
disclosure would not be required under Item 404(a) of Regulation S-K promulgated
pursuant to the Securities Act of 1933 (“Regulation S-K”)), does not possess an
interest in any other transactions as to which disclosure would be required
under Item 404(a) of Regulation S-K and is not engaged in a business
relationship as to which disclosure would be required under Item 404(b) of
Regulation S-K; or (ii) is otherwise considered a “non-employee director” for
purposes of Rule 16b-3 promulgated pursuant to the Exchange Act.

 

(o)  “Nonstatutory
Option” or “NSO" shall mean an employee stock option that is not an
ISO.

 

- 2
-

(p)  “Offeree” shall mean an individual to whom
the Committee has offered the right to acquire Shares under the Plan (other than
upon exercise of an Option).

 

(q)  “Option” shall
mean an Incentive Stock Option or Nonstatutory Option granted under the Plan and
entitling the holder to purchase Shares.

 

(r)  “Optionee”
shall mean an individual or estate who holds an Option.

 

(s)  “Participant”
shall mean an individual or estate who holds an Award.

 

(t)  “Plan” shall
mean this Amended and Restated 2001 Omnibus Securities Plan of M-GAB Development
Corporation, 

 

(u)  “Purchase Price” shall mean the
consideration for which one Share may be acquired under the Plan (other than
upon exercise of an Option), as specified by the Committee.

 

(v)  “Restricted
Share” shall mean a Share which is nontransferable and subject to
substantial risk of forfeiture until restrictions lapse.

 

(w)  “Service”
shall mean service as an Employee.

 

(x)  “Share”
shall mean one share of Stock, as adjusted in accordance with Section 8 (if
applicable).

 

(y)  “Stock”
shall mean the common stock of the Company.

 

(z)  “Stock Option Agreement” shall mean the
agreement between the Company and an Optionee which contains the terms,
conditions and restrictions pertaining to his or her Option.

 

(aa) “Stock Purchase Agreement” (aa)   shall mean
the agreement between the Company and an Offeree who acquires Shares under the
Plan which contains the terms, conditions and restrictions pertaining to the
acquisition of such Shares.

 

(bb) “Subsidiary” means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if
each of the corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain. A corporation
that attains the status of a Subsidiary on a date after the adoption of the Plan
shall be considered a Subsidiary commencing as of such date.

 

(cc) “Total and Permanent Disability” means that the
Optionee is unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment.

 

(dd) “W-2 Payroll” means whatever mechanism or procedure
that the Company or a Subsidiary utilizes to pay any individual which results in
the issuance of Form W-2 to the individual. “W-2 Payroll” does not include any
mechanism or procedure which results in the issuance of any form other than a
Form W-2 to an individual, including, but not limited to, any Form 1099 which
may be issued to an independent contractor, an agency employee or a consultant.
Whether a mechanism or procedure qualifies as a “W-2 Payroll” shall be
determined in the absolute discretion of the Company (or Subsidiary, as
applicable), and the Company or Subsidiary determination shall be conclusive and
binding on all persons.

 

- 3
-

SECTION
3.
  ADMINISTRATION.

 

(a)  Committee Membership.  The Plan
shall be administered by the Compensation Committee (the “Committee”) appointed
by the Company’s Board of Directors and comprised of at least two or more
Outside Directors (although Committee functions may be delegated to officers to
the extent the awards relate to persons who are not subject to the reporting
requirements of Section 16 of the Exchange Act). If no Committee has been
appointed, the entire Board shall constitute the Committee.

 

(b)  Committee Procedures.  The Board of
Directors shall designate one of the members of the Committee as chairperson.
The Committee may hold meetings at such times and places as it shall determine.
The acts of a majority of the Committee members present at meetings at which a
quorum exists, or acts reduced to or approved in writing by all Committee
members, shall be valid acts of the Committee.

 

(c)  Committee Responsibilities.  The
Committee has and may exercise such power and authority as may be necessary or
appropriate for the Committee to carry out its functions as described in the
Plan. The Committee has authority in its discretion to determine eligible
Employees to whom, and the time or times at which, Awards may be granted and the
number of Shares subject to each Award. Subject to the express provisions of the
respective Award agreements (which need not be identical) and to make all other
determinations necessary or advisable for Plan administration, the Committee has
authority to prescribe, amend, and rescind rules and regulations relating to the
Plan. All interpretations, determinations, and actions by the Committee will be
final, conclusive, and binding upon all persons.

 

(d)  Committee Liability .  No member of the
Board or the Committee will be liable for any action or determination made in
good faith by the Committee with respect to the Plan or any Award made under the
Plan.

 

(e)  Financial Reports .  To the extent
required by applicable law, and not less often than annually, the Company shall
furnish to Offerees, Optionees and Shareholders who have received Stock under
the Plan its financial statements including a balance sheet regarding the
Company’s financial condition and results of operations, unless such Offerees,
Optionees or Shareholders have duties with the Company that assure them access
to equivalent information. Such financial statements need not be audited.

 

SECTION 4.
  ELIGIBILITY.

 

(a)  General Rule.  Only Employees and
Non-Employee Directors shall be eligible for designation as Participants by the
Committee. In addition, only individuals who are employed as Common-Law
Employees by the Company or a Subsidiary shall be eligible for the grant of
ISOs.

 

(b)  Non-Employee Directors. Any Award to a
Non-Employee Director must be approved by an Order of the Commission as provided
by Section 61(a)(3)(B)(I)(II) of the Investment Company Act of 1940, before
being considered a valid Award under the Plan.

 

(c)  Ten-Percent Shareholders.  An Employee
who owns more than ten percent (10%) of the total combined voting power of all
classes of outstanding stock of the Company or any of its Subsidiaries shall not
be eligible for designation as an Offeree or Optionee unless (i) the
Exercise Price for an ISO (and a NSO to the extent required by applicable law)
is at least one hundred ten percent (110%) of the Fair Market Value of a
Share on the date of grant, (ii) if required by applicable law, the
Purchase Price of Shares is at least one hundred percent (100%) of the Fair
Market Value of a Share on the date of grant, and (iii) in the case of an
ISO, such ISO by its terms is not exercisable after the expiration of five years
from the date of grant.

 

(d)  Attribution Rules .  For purposes of
Subsection (b) above, in determining stock ownership, an Employee shall be
deemed to own the stock owned, directly or indirectly, by or for his brothers,
sisters, spouse, ancestors and lineal descendants. Stock owned, directly or
indirectly, by or for a corporation, partnership, estate or trust shall be
deemed to be owned proportionately by or for its shareholders, partners or
beneficiaries. Stock with respect to which such Employee holds an Option shall
not be counted.

 

- 4
-

(e)  Outstanding Stock .  For purposes of
Subsection (b) above, “outstanding stock” shall include all stock actually
issued and outstanding immediately after the grant. “Outstanding Stock” shall
not include shares authorized for issuance under outstanding Options held by the
Employee or by any other person. 

 

SECTION 5.   STOCK
SUBJECT TO PLAN.

 

(a)  Basic Limitation.  Shares offered under
the Plan shall be authorized but unissued Shares. Subject to Sections 5(b) and 8
of the Plan, the aggregate number of Shares which may be issued or transferred
as common stock pursuant to an Award under the Plan shall not exceed 600,000
Shares.

 

In any event, the number of Shares which are subject to Awards or
other rights outstanding at any time under the Plan shall not exceed the number
of Shares which then remain available for issuance under the Plan. The Company,
during the term of the Plan, shall at all times reserve and keep available
sufficient Shares to satisfy the requirements of the Plan.

 

(b)  Additional Shares.  In the event that
any outstanding Option or other right for any reason expires or is canceled or
otherwise terminated, the Shares allocable to the unexercised portion of such
Option or other right shall again be available for the purposes of the Plan. If
a Restricted Share is forfeited before any dividends have been paid with respect
to such Restricted Share, then such Restricted Share shall again become
available for award under the Plan.

 

SECTION 6.   TERMS
AND CONDITIONS OF AWARDS OR SALES.

 

(a)  Stock Purchase Agreement.  Each award
or sale of Shares under the Plan (other than upon exercise of an Option) shall
be evidenced by a Stock Purchase Agreement between the Offeree and the Company.
Such award or sale shall be subject to all applicable terms and conditions of
the Plan and may be subject to any other terms and conditions which are not
inconsistent with the Plan and which the Committee deems appropriate for
inclusion in a Stock Purchase Agreement. The provisions of the various Stock
Purchase Agreements entered into under the Plan need not be identical.

 

(b)  Duration of Offers.  Any right to
acquire Shares under the Plan (other than an Option) shall automatically expire
if not exercised by the Offeree within 30 days after the grant of such right was
communicated to the Offeree by the Committee.

 

(c)  Purchase Price.  Unless otherwise
permitted by applicable law, the Purchase Price of Shares to be offered under
the Plan shall not be less than the Fair Market Value of a Share on the date of
grant (110% for 10% shareholders, if applicable under Section 4(c), above),
except as otherwise provided in Section 4(b). Subject to the preceding sentence,
the Purchase Price shall be determined by the Committee in its sole discretion.
The Purchase Price shall be payable in a form described in Subsection (d)
below.

 

(d)  Payment for Shares.  The entire
Purchase Price of Shares issued under the Plan shall be payable in lawful money
of the United States of America at the time when such Shares are purchased,
except as provided below:

 

(i)    Cashless Exercise. To the extent that
a Stock Option Agreement so provides and a public market for the Shares exists,
payment may be made all or in part by delivery (on a form prescribed by the
Committee) of an irrevocable direction to a securities broker to sell shares and
to deliver all or part of the sale proceeds to the Company in payment of the
aggregate Exercise Price.

 

- 5
-

(ii)    Other Forms of Payment. To the
extent provided in the Stock Option Agreement, payment may be made in any other
form that is consistent with applicable laws, regulations and rules.

 

(e)  Exercise of Awards on Termination of
Service.  Each Stock Award Agreement shall set forth the extent to
which the recipient shall have the right to exercise the Award following
termination of the recipient’s Service with the Company and its Subsidiaries.
Such provisions shall be determined in the sole discretion of the Committee,
need not be uniform among all the Awards issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination of employment.

 

SECTION 7.   TERMS
AND CONDITIONS OF OPTIONS.

 

(a)  Stock Option Agreement.  Each grant of
an Option under the Plan shall be evidenced by a Stock Option Agreement between
the Optionee and the Company. Such Option shall be subject to all applicable
terms and conditions of the Plan and may be subject to any other terms and
conditions which are not inconsistent with the Plan and which the Committee
deems appropriate for inclusion in a Stock Option Agreement. The provisions of
the various Stock Option Agreements entered into under the Plan need not be
identical.

 

(b)  Number of Shares.  Each Stock Option
Agreement shall specify the number of Shares that are subject to the Option and
shall provide for the adjustment of such number in accordance with
Section 8. The Stock Option Agreement shall also specify whether the Option
is an ISO or a Nonstatutory Option.

 

(c)  Exercise Price.  Each Stock Option
Agreement shall specify the Exercise Price. Subject to the 10% Shareholder
provisions of Section 4(c) above, the Exercise Price of an ISO or a Nonstatutory
Option shall not be less than one hundred percent (100%) of the Fair Market
Value of a Share on the date of grant. Subject to the preceding sentence, the
Exercise Price under any Option shall be determined by the Committee in its sole
discretion. The Exercise Price shall be payable in a form described in
Subsection (h) below. 

 

(d)  Exercisability.  Each Stock Option
Agreement shall specify the date when all or any installment of the Option is to
become exercisable. To the extent required by applicable law, an Option shall
become exercisable no less rapidly than the rate of 20% per year for each of the
first five years from the date of grant. Subject to the preceding sentence, the
exercisability of any Option shall be determined by the Committee in its sole
discretion.

 

(e)  Effect of Change in Control.  The
Committee may determine, at the time of granting an Option or thereafter, that
such Option shall become fully exercisable as to all Shares subject to such
Option in the event that a Change in Control occurs with respect to the
Company.

 

(f)  Term.  The Stock Option Agreement shall
specify the term of the Option. The term shall not exceed ten years from the
date of grant (or five (5) years for ten percent (10%) shareholders as provided
in Section 4(c)). Subject to the preceding sentence, the Committee at its sole
discretion shall determine when an Option is to expire.

 

(g)  Exercise of Options on Termination of
Service. Each Option shall set forth the extent to which the Optionee shall
have the right to exercise the Option following termination of the Optionee’s
Service with the Company and its Subsidiaries. Such provisions shall be
determined in the sole discretion of the Committee, need not be uniform among
all Options issued pursuant to the Plan, and may reflect distinctions based on
the reasons for termination of employment. Notwithstanding the foregoing, to the
extent required by applicable law, each Option shall provide that the Optionee
shall have the right to exercise the vested portion of any Option held at
termination for at least 60 days following termination of Service with the
Company for any reason, and that the Optionee shall have the right to exercise
the Option for at least six months if the Optionee’s Service terminates due to
death or Disability.

 

- 6
-

(h)  Payment of Option Shares. The entire
Exercise Price of Shares issued under the Plan shall be payable in lawful money
of the United States of America at the time when such Shares are purchased,
except as provided below:

 

(i)  Surrender of Stock. To the extent that a
Stock Option Agreement so provides, payment may be made all or in part with
Shares which have already been owned by the Optionee or Optionee’s
representative for any time period specified by the Committee and which are
surrendered to the Company in good form for transfer. Such shares shall be
valued at their Fair Market Value on the date when the new Shares are purchased
under the Plan.

 

(ii)  Cashless Exercise. To the extent that a
Stock Option Agreement so provides and a public market for the Shares exists,
payment may be made all or in part by delivery (on a form prescribed by the
Committee) of an irrevocable direction to a securities broker to sell shares and
to deliver all or part of the sale proceeds to the Company in payment of the
aggregate Exercise Price.

 

(iii)  Other Forms of Payment. To the extent
provided in the Stock Option Agreement, payment may be made in any other form
that is consistent with applicable laws, regulations and rules.

 

(i)  Modification, Extension and Assumption of
Options.  Within the limitations of the Plan, the Committee may modify,
extend or assume outstanding Options or may accept the cancellation of
outstanding Options (whether granted by the Company or another issuer) in return
for the grant of new Options for the same or a different number of Shares and at
the same or a different Exercise Price or for other consideration.

 

SECTION
8.   ADJUSTMENT OF
SHARES.

 

(a)  General.  In the event of a subdivision
of the outstanding Stock, , a recapitalization, a reclassification or a similar
occurrence, the Committee shall make appropriate adjustments, subject to the
limitations set forth in Section 8(c), in one or more of (i) the number of
Shares available for future Awards under Section 5, (ii) the number of
Shares covered by each outstanding Option or Purchase Agreement or
(iii) the Exercise Price or Purchase Price under each outstanding Option or
Stock Purchase Agreement.

 

(b)  Reorganizations.  In the event that the
Company is a party to a merger or reorganization, outstanding Options shall be
subject to the agreement of merger or reorganization, provided however, that the
limitations set forth in Section 8(c) shall apply.

 

(c)  Reservation of Rights.  Except as
provided in this Section 8, an Optionee or an Offeree shall have no rights
by reason of (i) any subdivision or consolidation of shares of stock of any
class, (ii) the payment of any dividend or (iii) any other increase or
decrease in the number of shares of stock of any class. Any issue by the Company
of shares of stock of any class, or securities convertible into shares of stock
of any class, shall not affect, and no adjustment by reason thereof shall be
made with respect to, the number, Exercise Price or Purchase Agreement of Shares
subject to an Option or Stock Purchase Agreement. The grant of an Award pursuant
to the Plan shall not affect in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, to merge or consolidate or to dissolve, liquidate, sell
or transfer all or any part of its business or assets.

 

SECTION 9.
  WITHHOLDING TAXES.

 

(a)  General.  To the extent required by
applicable federal, state, local or foreign law, a Participant or his or her
successor shall make arrangements satisfactory to the Committee for the
satisfaction of any withholding tax obligations that arise in connection with
the Plan. The Company shall not be required to issue any Shares or make any cash
payment under the Plan until such obligations are satisfied.

 

- 7
-

(b)  Share Withholding.  The Committee may
permit a Participant to satisfy all or part of his or her withholding or income
tax obligations by having the Company withhold all or a portion of any Shares
that otherwise would be issued to him or her or by surrendering all or a portion
of any Shares that he or she previously acquired. Such Shares shall be valued at
their Fair Market Value on the date when taxes otherwise would be withheld in
cash. Any payment of taxes by assigning Shares to the Company may be subject to
restrictions, including any restrictions required by rules of any federal or
state regulatory body or other authority.

 

(c)  Cashless Exercise/Pledge.  The
Committee may provide that if Company Shares are publicly traded at the time of
exercise, arrangements may be made to meet the Optionee’s withholding obligation
by cashless exercise or pledge.

 

(d)  Other Forms of Payment.  The Committee
may permit such other means of tax withholding as it deems appropriate.

 

SECTION
10.   ASSIGNMENT OR TRANSFER OF
AWARDS.

 

(a)  General

 

. An Award granted under the Plan shall not be anticipated,
assigned, attached, garnished, optioned, transferred or made subject to any
creditor’s process, whether voluntarily, involuntarily or by operation of law,
except as approved by the Committee. Notwithstanding the foregoing, ISOs may not
be transferred. Also notwithstanding the foregoing, Optionees may not transfer
their rights hereunder except by will or the laws of descent and
distribution.

 

(b)  Trusts

 

. Neither this Section 10 nor any other provision of the Plan
shall preclude a Participant from transferring or assigning Restricted Shares to
(a) the trustee of a trust that is revocable by such Participant alone, both at
the time of the transfer or assignment and at all times thereafter prior to such
Participant’s death, or (b) the trustee of any other trust to the extent
approved by the Committee in writing. A transfer or assignment of Restricted
Shares from such trustee to any other person than such Participant shall be
permitted only to the extent approved in advance by the Committee in writing,
and Restricted Shares held by such trustee shall be subject to all the
conditions and restrictions set forth in the Plan and in the applicable Stock
Award Agreement, as if such trustee were a party to such Agreement.

 

SECTION
11.   LEGAL
REQUIREMENTS.

 

(a) Securities Act of 1933. Shares shall not be issued
under the Plan unless the issuance and delivery of such Shares complies with (or
is exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and regulations
promulgated thereunder, state securities laws and regulations, and the
regulations of any stock exchange on which the Company’s securities may then be
listed.

 

(b) Investment Company Act of 1940. No provision of
this Plan will contravene any portion of the Investment Company Act of 1940. In
the event of any conflict between the provisions of the Plan and the Investment
Company Act of 1940, the applicable section of the Investment Company Act of
1940 shall control and all Awards under the Plan shall be so modified. All
Offerees and Optionees holding such modified Awards shall be notified of the
change to their Awards and such change shall be binding on such Offerees and
Optionees.

 

SECTION
12.   NO EMPLOYMENT
RIGHTS.

 

No provision of the Plan, nor any right or Option granted under
the Plan, shall be construed to give any person any right to become, to be
treated as, or to remain an Employee. The Company and its Subsidiaries reserve
the right to terminate any person’s Service at any time and for any
reason.

 

- 8
-

SECTION
13.   DURATION AND
AMENDMENTS.

 

(a)  Term of the Plan.  The Plan, as set
forth herein, shall become effective on the date of its adoption by the Board of
Directors, subject to the approval of the Company’s shareholders. In the event
that the shareholders fail to approve the Plan within twelve (12) months
after its adoption by the Board of Directors, any grants already made shall be
null and void, and no additional grants shall be made after such date. The Plan
shall terminate automatically ten (10) years after its adoption by the
Board of Directors and may be terminated on any earlier date pursuant to
Subsection (b) below.

 

(b)  Right to Amend or Terminate the Plan.
 The Board of Directors may amend the Plan at any time and from time to
time. Rights and obligations under any right or Option granted before amendment
of the Plan shall not be materially altered, or impaired adversely, by such
amendment, except with consent of the person to whom the right or Option was
granted. An amendment of the Plan shall be subject to the approval of the
Company’s shareholders only to the extent required by applicable laws,
regulations or rules including the rules of any applicable exchange.

 

(c)  Effect of Amendment or Termination.  No
Shares shall be issued or sold under the Plan after the termination thereof,
except upon exercise of an Option granted prior to such termination. The
termination of the Plan, or any amendment thereof, shall not affect any Shares
previously issued or any Option previously granted under the Plan.

 

 

- 9
-

 

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY
STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO
THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY
IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION
AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT
REQUIRED.

 

M-GAB Development Corporation

Amended and Restated 2001 Omnibus Securities
Plan

 

INCENTIVE STOCK OPTION AGREEMENT

 

M-GAB Development Corporation (the “Company”), hereby grants an
Option to purchase shares of its common stock (“Shares”) to the Optionee named
below. The terms and conditions of the Option are set forth in this cover sheet,
in the attachment and in the Company’s Amended and Restated 2001 Omnibus
Securities Plan (the “Plan”).

 

Date of Grant: 

 

Name of Optionee: 

 

Optionee’s Social Security Number: 

 

Number of Shares Covered by Option: 

 

Exercise Price per Share: $

[must be at least 100% fair market value on Date of Grant]

 

Vesting Start Date: 

 

	
      ___
	
      Check
      here if Optionee is a 10% owner (so that exercise price must be 110% of
      fair market value and term will not exceed 5
years).

 

By signing this cover sheet, you agree to all of the
terms and conditions described in the attached Agreement and in the Plan, a copy
of which is also attached.

 

Optionee: 

(Signature)

 

Company: 

(Signature)

 

Title: 

 

 

- 1
-

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY
STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO
THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY
IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION
AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT
REQUIRED.

 

M-GAB Development Corporation

Amended and Restated 2001 Omnibus Securities
Plan

 

INCENTIVE STOCK OPTION AGREEMENT

	
      Incentive Stock Option

       
	
      This Option is intended to be an incentive stock option
      under section 422 of the Internal Revenue Code and will be interpreted
      accordingly.

       

	
      Vesting

       
	
      No Shares will vest until you have performed _________
      (____) months of Service from the commencement of your employment with the
      Company. Your Option shall vest as to ________ of the Shares on the date
      _______ (____) months from the Vesting Start Date as shown on the cover
      sheet. Thereafter, Shares shall vest at the rate of _______ of the Shares
      at the end of each full month thereafter. After you have completed
      _________ (____) months of Service, the number of Shares which vest under
      this Option at the Exercise Price shall be equal to the product of the
      number of full months of your continuous employment with the Company
      (“Service”) (including any approved leaves of absence) from the Vesting
      Start Date times the number of Shares covered by this Option times
      ________. The resulting number of Shares will be rounded to the nearest
      whole number. No additional Shares will vest after your Service has
      terminated for any reason.

       

      You should note that you may exercise the Option prior to
      vesting. In that case, the Company has a right to repurchase the unvested
      shares at the original exercise price if you terminate employment before
      vesting in all shares you purchased. Also, if you exercise before vesting,
      you should consider making an 83(b) election. Please see the attached Tax
      Summary. The 83(b) election must be filed within 30 days of the date you
      exercise.

       

	
      Term

       
	
      Your Option will expire in any event at the close of
      business at Company headquarters on the day before the tenth anniversary
      (fifth anniversary for a 10% owner) of the Date of Grant, as shown on the
      cover sheet. (It will expire earlier if your Service terminates, as
      described below.)

       

	
      Regular Termination

       
	
      If your Service terminates for any reason except death,
      Disability or for “Cause,” your Option will expire at the close of
      business at Company headquarters on the 30th day after your termination
      date. During that 30-day period, you may exercise that portion of your
      Option that was vested on your termination date.

       

 

 

- 2
-

 

	
      Death

       
	
      If you die while in Service with the
      Company, your Option will expire at the close of business at Company
      headquarters on the date six months after the date of death. During
      that six-month period, your estate or heirs may exercise that portion of
      your Option that was vested on the date of death.

       

	
      Disability

       
	
      If your Service terminates because of your
      Disability, your Option will expire at the close of business at Company
      headquarters on the date six months after your termination date.
      (However, if your Disability is not expected to result in death or to last
      for a continuous period of at least 12 months, your Option will be
      eligible for ISO tax treatment only if it is exercised within three months
      following the termination of your Service.) During that six-month period,
      you may exercise that portion of your Option that was vested on the date
      of your Disability.

       

      “Disability” means that you are unable to
      engage in any substantial gainful activity by reason of any medically
      determinable physical or mental impairment.

       

	
      Leaves
      of Absence

       
	
      For purposes of this Option, your Service
      does not terminate when you go on a bona fide leave of absence that
      was approved by the Company in writing, if the terms of the leave provide
      for continued service crediting, or when continued service crediting is
      required by applicable law. However, your Service will be treated as
      terminating 30 days after you went on leave, unless your right to return
      to active work is guaranteed by law or by a contract. Your Service
      terminates in any event when the approved leave ends unless you
      immediately return to active work. The Company determines which leaves
      count for this purpose, and when your Service terminates for all purposes
      under the Plan. The Company also determines the extent to which you may
      exercise the vested portion of your Option during a leave of
      absence.

       

	
      Notice
      of Exercise

       
	
      When you wish to exercise this Option, you
      must execute Exhibit A (and, if exercise is prior to vesting, you
      must also execute Exhibits B and D). Your exercise will be
      effective when it is received by the Company. If someone else wants to
      exercise this Option after your death, that person must prove to the
      Company’s satisfaction that he or she is entitled to do so.

       

	
      Form
      of Payment

       
	
      When you submit Exhibit A, you must include
      payment of the Exercise Price for the Shares you are purchasing. Payment
      may be made in one (or a combination) of the following forms at the
      discretion of the committee:

       

      
      ·
      Your personal check, a cashier’s check or a money
order.

       

	
      Withholding
      Taxes

       
	
      You will not be allowed to exercise this
      Option unless you make acceptable arrangements to pay any withholding or
      other taxes that may be due as a result of the Option exercise or the sale
      of Shares acquired upon exercise of this Option.

       

 

 

 

- 3
-

 

	
      Restrictions
      on Resale 

       
	
      By signing this Agreement, you agree not to
      exercise this Option or sell any Shares acquired upon exercise of this
      Option at a time when applicable laws, regulations or Company or
      underwriter trading policies prohibit exercise or sale. In particular, the
      Company shall have the right to designate one or more periods of time,
      each of which shall not exceed 180 days in length, during which this
      Option shall not be exercisable if the Company determines (in its sole
      discretion) that such limitation on exercise could in any way facilitate a
      lessening of any restriction on transfer pursuant to the Securities Act or
      any state securities laws with respect to any issuance of securities by
      the Company, facilitate the registration or qualification of any
      securities by the Company under the Securities Act or any state securities
      laws, or facilitate the perfection of any exemption from the registration
      or qualification requirements of the Securities Act or any applicable
      state securities laws for the issuance or transfer of any securities. Such
      limitation on exercise shall not alter the vesting schedule set forth in
      this Agreement other than to limit the periods during which this Option
      shall be exercisable.

       

      Furthermore, in respect of any underwritten
      public offering by the Company, you agree that you will not sell or
      otherwise transfer or dispose of any Shares covered by this Option during
      a reasonable and customary period of time as agreed to by the Company and
      the underwriters, not to exceed the greater of (a) 180 days following the
      effective date of the registration statement of the Company filed under
      the Securities Act in respect of such offering and (b) such other period
      of time as agreed to by holders of a majority of the then outstanding
      Shares. By signing this Agreement you agree to execute and deliver such
      other agreements as may be reasonably requested by the Company or the
      underwriter which are consistent with the foregoing or which are necessary
      to give further effect thereto. The Company may impose stop-transfer
      instructions with respect to the Shares subject to the foregoing
      restriction until the end of such period.

       

      If the sale of Shares under the Plan is not
      registered under the Securities Act of 1933, as amended (the “Securities
      Act”), but an exemption is available which requires an investment or other
      representation, you shall represent and agree at the time of exercise that
      the Shares being acquired upon exercise of this Option are being acquired
      for investment, and not with a view to the sale or distribution thereof,
      and shall make such other representations as are deemed necessary or
      appropriate by the Company and its counsel. 

       

	
       The
      Company’s Right of First Refusal
	
      In the event that you propose to sell, pledge or otherwise
      transfer to a third party any Shares acquired under this Agreement, or any
      interest in such Shares, the Company shall have the “Right of First
      Refusal” with respect to all (and not less than all) of such Shares. If
      you desire to transfer Shares acquired under this Agreement, you must give
      a written “Transfer Notice” to the Company describing fully the proposed
      transfer, including the number of Shares proposed to be transferred, the
      proposed transfer price and the name and address of the proposed
      transferee. The Transfer Notice shall be signed both by you and by the
      proposed transferee and must constitute a binding commitment of both
      parties to the transfer of the Shares.

       

 

 

- 4
-

 

 

	 	 

      The
      Company and its assignees shall have the right to purchase all, and not
      less than all, of the Shares on the terms described in the Transfer Notice
      (subject, however, to any change in such terms permitted in the next
      paragraph) by delivery of a Notice of Exercise of the Right of First
      Refusal within 30 days after the date when the Transfer Notice was
      received by the Company. The Company’s rights under this Subsection shall
      be freely assignable, in whole or in part.

       

      If
      the Company fails to exercise its Right of First Refusal within
      30 days after the date when it received the Transfer Notice, you may,
      not later than 60 days following receipt of the Transfer Notice by the
      Company, conclude a transfer of the Shares subject to the Transfer Notice
      on the terms and conditions described in the Transfer Notice. Any proposed
      transfer on terms and conditions different from those described in the
      Transfer Notice, as well as any subsequent proposed transfer by you, shall
      again be subject to the Right of First Refusal and shall require
      compliance with the procedure described in the paragraph above. If the
      Company exercises its Right of First Refusal, you and the Company (or its
      assignees) shall consummate the sale of the Shares on the terms set forth
      in the Transfer Notice.

       

      The
      Company’s Right of First Refusal shall terminate upon the Company’s
      initial public offering.

       

      The
      Company’s Right of First Refusal shall inure to the benefit of its
      successors and assigns and shall be binding upon any transferee of the
      Shares.

      

	 

      Right
      of Repurchase

      
	 

      Following
      termination of your Service for any reason, the Company shall have the
      right to purchase all of those vested Shares that you have or will acquire
      under this Option (unvested Shares which have been exercised are subject
      to a Repurchase Option set forth in Exhibit A). If the Company
      fails to provide you with written notice of its intention to purchase such
      Shares before or within 30 days of the date the Company receives written
      notice from you of your termination of Service, the Company’s right to
      purchase such Shares shall terminate. If the Company exercises its right
      to purchase such Shares, the Company will consummate the purchase of such
      Shares within 60 days of the date of its written notice to you. The
      purchase price for any Shares repurchased shall be the higher of the fair
      market value of the Shares on the date of purchase or the aggregate
      Exercise Price for such Shares and shall be paid in cash. The Company’s
      right of repurchase shall terminate in the event that Stock is listed on
      an established stock exchange or is quoted regularly on the NASDAQ
      National Market. The fair market value shall be determined by the Board of
      Directors in its sole discretion.

      

	
      Transfer
      of Option

       
	
      Prior to your death, only you may exercise
      this Option. You cannot transfer or assign this Option. For instance, you
      may not sell this Option or use it as security for a loan. If you attempt
      to do any of these things, this Option will immediately become invalid.
      You may, however, dispose of this Option in your will or by the other laws
      of descent and distribution.

       

 

 

 

- 5
-

 

	 	
      Regardless of any marital property settlement agreement, the
      Company is not obligated to honor a Notice of Exercise from your spouse or
      former spouse, nor is the Company obligated to recognize such individual’s
      interest in your Option in any other way.

       

	
      Retention
      Rights

       
	
      This Agreement does not give you the right
      to be retained by the Company in any capacity. The Company reserves the
      right to terminate your Service at any time and for any
      reason.

       

	
      Shareholder
      Rights

       
	
      Neither you, nor your estate or heirs, have
      any rights as a shareholder of the Company until a certificate for the
      Shares acquired upon exercise of this Option has been issued. No
      adjustments are made for dividends or other rights if the applicable
      record date occurs before your stock certificate is issued, except as
      described in the Plan.

       

	
      Adjustments

       
	
      In the event of a stock split, a stock
      dividend or a similar change in the Company’s Stock, the number of Shares
      covered by this Option and the Exercise Price per share may be adjusted
      pursuant to the Plan. Your Option shall be subject to the terms of the
      agreement of merger, liquidation or reorganization in the event the
      Company is subject to such corporate activity.

       

	
      Legends

       
	
      All certificates representing the Shares
      issued upon exercise of this Option shall, where applicable, have endorsed
      thereon the following legends:

       

      “THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO
      PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
      REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST. SUCH
      AGREEMENT IMPOSES CERTAIN TRANSFER RESTRICTIONS AND GRANTS CERTAIN
      REPURCHASE RIGHTS TO THE COMPANY (OR ITS ASSIGNS) UPON THE SALE OF THE
      SHARES OR UPON TERMINATION OF SERVICE WITH THE COMPANY. A COPY OF SUCH
      AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE
      FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE
      HOLDER OF SHARES REPRESENTED BY THIS CERTIFICATE.

       

	 	
      THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR
      THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF
      REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL
      AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF
      COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT REGISTRATION
      AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT
      REQUIRED.”

       

 

 

- 6
-

 

	
      Applicable
      Law

       
	
      This Agreement will be interpreted and
      enforced under the laws of the State of California (without regard to
      their choice of law provisions).

       

	
      The
      Plan and Other Agreements

       
	
      The text of the Plan is incorporated in this
      Agreement by reference. Certain capitalized terms used in this Agreement
      are defined in the Plan.

       

      This Agreement, including its attachments,
      and the Plan constitute the entire understanding between you and the
      Company regarding this Option. Any prior agreements, commitments or
      negotiations concerning this Option are superseded.

       

	
      Investment
      Company Act of 1940

       
	
      You acknowledge that the Company is a
      business development company governed by the Investment Company Act of
      1940, and therefore, if any terms of the Plan or this Agreement conflict
      with the provisions of the Investment Company of 1940, then the
      conflicting provisions of the Plan and this Agreement will automatically
      be amended to comply with the Investment Company Act of 1940.

       

 

 

By signing the cover sheet of this Agreement, you
agree to all of the terms and conditions described above and in the Plan. You
also acknowledge that you have read Section 10, “Purchaser’s Investment
Representations” of Attachment A and that you can and hereby do make the same
representations with respect to the grant of this Option.

 

- 7
-

 

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY
STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO
THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY
IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION
AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT
REQUIRED.

 

M-GAB Development Corporation

Amended and Restated 2001 Omnibus Securities
Plan

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

M-GAB Development Corporation (the “Company”), hereby grants an
Option to purchase shares of its common stock (“Shares”) to the Optionee named
below. The terms and conditions of the Option are set forth in this cover sheet,
in the attachment and in the Company’s Amended and Restated 2001 Omnibus
Securities Plan (the “Plan”).

 

Date of Grant: 

 

Name of Optionee: 

 

Optionee’s Social Security Number: 

 

Number of Shares Covered by Option:  

 

Exercise Price per Share: $

 

[must be at least 100% fair market value on Date of Grant]

 

Vesting Start Date: 

 

___ Check here if Optionee is a 10% owner (so that exercise
price must be 110% of fair market value and term will not exceed 5 years).

 

By signing this cover sheet, you agree to all of the
terms and conditions described in the attached Agreement and in the Plan, a copy
of which is also attached.

 

Optionee: 

(Signature)

 

Company: 

(Signature)

 

Title: 

 

 

- 1
-

 

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY
STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO
THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY
IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION
AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT
REQUIRED.

 

M-GAB Development Corporation

Amended and Restated 2001 Omnibus Securities
Plan

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

 

	
      Nonstatutory Stock Option

       
	
      This Option is not intended to be an incentive stock option
      under section 422 of the Internal Revenue Code and will be interpreted
      accordingly.

       

	 

      Vesting

      
	 

      No
      Shares will vest until you have performed _______ (____) months of Service
      from the commencement of your employment with the Company. Your Option
      shall vest as to _______ of the Shares on the date _______ (____) months
      from the Vesting Start Date as shown on the cover sheet. Thereafter,
      Shares shall vest at the rate of ________ of the Shares at the end of each
      full month thereafter. After you have completed ________ (____) months of
      Service, the number of Shares which vest under this Option at the Exercise
      Price shall be equal to the product of the number of full months of your
      continuous employment with the Company (“Service”) (including any approved
      leaves of absence) from the Vesting Start Date times the number of Shares
      covered by this Option times ________. The resulting number of Shares will
      be rounded to the nearest whole number. No additional Shares will vest
      after your Service has terminated for any reason.

      

      You
      should note that you may exercise the Option prior to vesting. In that
      case, the Company has a right to repurchase the unvested shares at the
      original exercise price if you terminate employment before vesting in all
      shares you purchased. Also, if you exercise before vesting, you should
      consider making an 83(b) election. Please see the attached Tax Summary.
      The 83(b) election must be filed within 0 days of the date you
      exercise.

      

	
      Term

       
	
      Your Option will expire in any event at the close of
      business at Company headquarters on the day before the tenth anniversary
      (fifth anniversary for a 10% owner) of the Date of Grant, as shown on the
      cover sheet. (It will expire earlier if your Service terminates, as
      described below.)

       

	
      Regular Termination

       
	
      If your Service terminates for any reason except death,
      Disability, or for “Cause” your Option will expire at the close of
      business at Company headquarters on the 30th day after your termination
      date. During such 30-day period, you may exercise that portion of your
      Option that was vested on your termination date.

       

	
      Death

       
	
      If you die while in Service with the Company, your Option
      will expire at the close of business at Company headquarters on the date
      six months after the date of death. During that six-month period,
      your estate or heirs may exercise that portion of your Option that was
      vested on your date of death.

       

 

 

 

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      Disability

       
	
      If your Service terminates because of your Disability, your
      Option will expire at the close of business at Company headquarters on the
      date six months after your termination date. During that six-month
      period, you may exercise that portion of your Option that was vested on
      your date of Disability.

       

      “Disability” means that you are unable to engage in any
      substantial gainful activity by reason of any medically determinable
      physical or mental impairment.

       

	
      Leaves of Absence

       
	
      For purposes of this Option, your Service does not terminate
      when you go on a bona fide leave of absence that was approved by the
      Company in writing, if the terms of the leave provide for continued
      service crediting, or when continued service crediting is required by
      applicable law. However, your Service will be treated as terminating 30
      days after you went on leave, unless your right to return to work is
      guaranteed by law or by a contract. Your service terminates in any event
      when the approved leave ends unless you immediately return to Service. The
      Company determines which leaves count for this purpose, and when your
      Service terminates for all purposes under the Plan. The Company also
      determines the extent to which you may exercise the vested portion of your
      Option during a leave of absence.

       

	 Notice
      of Exercise
      
	
      When
      you wish to exercise this Option, you must execute Exhibit A
      (and if exercise is prior to vesting you must also execute Exhibits B
      and D). Your Exercise will be effective when it is received by the
      Company. If someone else wants to exercise this Option after your death,
      that person must prove to the Company’s satisfaction that he or she is
      entitled to do so.

      

	 Form
      of Payment
      
	 

      When
      you submit Exhibit A, you must include payment of the Exercise
      Price for the Shares you are purchasing. Payment may be made in one (or a
      combination) of the following forms at the discretion of the
      committee:

      

      · Your
      personal check, a cashier’s check or a money order.

      

      

	
      Withholding Taxes

       
	
      You will not be allowed to exercise this Option unless you
      make acceptable arrangements to pay any withholding or other taxes that
      may be due as a result of the Option exercise or the sale of Shares
      acquired upon exercise of this Option.

       

	
      Restrictions on Resale

       
	
      By signing this Agreement, you agree not to exercise this
      Option or sell any Shares acquired upon exercise of this Option at a time
      when applicable laws, regulations or Company or underwriter trading
      policies prohibit exercise or sale. In particular, the Company shall have
      the right to designate one or more periods of time, each of which shall
      not exceed 180 days in length, during which this Option shall not be
      exercisable if the Company determines (in its sole discretion) that such
      limitation on exercise could in any way facilitate a lessening of any
      restriction on transfer pursuant to the Securities Act or any state
      securities laws with respect to any issuance of securities by the Company,
      facilitate the registration or qualification of any securities by the
      Company under the Securities Act or any state securities laws, or
      facilitate the perfection of any exemption from the registration or
      qualification requirements of the Securities Act or any applicable state
      securities laws for the issuance or transfer of any securities. Such
      limitation on exercise shall not alter the vesting schedule set forth in
      this Agreement other than to limit the periods during which this Option
      shall be exercisable.

       

       

 

 

 

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      Furthermore,
      in respect of any underwritten public offering by the Company, you agree
      that you will not sell or otherwise transfer or dispose of any Shares
      covered by this Option during a reasonable and customary period of time as
      agreed to by the Company and the underwriters, not to exceed the greater
      of (a) 180 days following the effective date of the registration statement
      of the Company filed under the Securities Act in respect of such offering
      and (b) such other period of time as agreed to by holders of a majority of
      the then outstanding Shares. By signing this Agreement you agree to
      execute and deliver such other agreements as may be reasonably requested
      by the Company or the underwriter which are consistent with the foregoing
      or which are necessary to give further effect thereto. The Company may
      impose stop-transfer instructions with respect to the Shares subject to
      the foregoing restriction until the end of such period.

       

      If
      the sale of Shares under the Plan is not registered under the Securities
      Act of 1933, as amended (the “Securities Act”), but an exemption is
      available which requires an investment or other representation, you shall
      represent and agree at the time of exercise that the Shares being acquired
      upon exercise of this Option are being acquired for investment, and not
      with a view to the sale or distribution thereof, and shall make such other
      representations as are deemed necessary or appropriate by the Company and
      its counsel.

       

	
       The Company’s Right of

       First Refusal 
	In the event that you propose to sell,
      pledge or otherwise transfer to a third party any Shares acquired under
      this Agreement, or any interest in such Shares, the Company shall have the
      “Right of First Refusal” with respect to all (and not less than all) of
      such Shares. If you desire to transfer Shares acquired under this
      Agreement, you must give a written “Transfer Notice” to the Company
      describing fully the proposed transfer, including the number of Shares
      proposed to be transferred, the proposed transfer price and the name and
      address of the proposed transferee. The Transfer Notice shall be signed
      both by you and by the proposed transferee and must constitute a binding
      commitment of both parties to the transfer of the Shares.
      

      The Company and its assignees shall have the
      right to purchase all, and not less than all, of the Shares on the terms
      described in the Transfer Notice (subject, however, to any change in such
      terms permitted in the next paragraph) by delivery of a notice of exercise
      of the Right of First Refusal within 30 days after the date when the
      Transfer Notice was received by the Company. 

       

 

 

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      The Company’s rights under this Subsection shall be freely
      assignable, in whole or in part.

      

      If the Company fails to exercise its Right of First Refusal within
      30 days after the date when it received the Transfer Notice, you may, not
      later than 60 days following receipt of the Transfer Notice by the
      Company, conclude a transfer of the Shares subject to the Transfer Notice
      on the terms and conditions described in the Transfer Notice. Any proposed
      transfer on terms and conditions different from those described in the
      Transfer Notice, as well as any subsequent proposed transfer by you, shall
      again be subject to the Right of First Refusal and shall require
      compliance with the procedure described in the paragraph above. If the
      Company exercises its Right of First Refusal, you and the Company (or its
      assignees) shall consummate the sale of the Shares on the terms set forth
      in the Transfer Notice.

      

      The Company’s Right of First Refusal shall terminate upon the
      Company’s initial public offering.

      

      The Company’s Right of First Refusal shall inure to the benefit of
      its successors and assigns and shall be binding upon any transferee of the
      

      

	 Right
      of Repurchase
      
	Following termination of your Service for
      any reason, the Company shall have the right to purchase all of those
      vested Shares that you have or will acquire under this Option (unvested
      Shares which have been exercised are subject to a Repurchase Option set
      forth in Exhibit A). If the Company fails to provide you with
      written notice of its intention to purchase such Shares before or within
      30 days of the date the Company receives written notice from you of your
      termination of Service, the Company’s right to purchase such Shares shall
      terminate. If the Company exercises its right to purchase such Shares, the
      Company will consummate the purchase of such Shares within 60 days of the
      date of its written notice to you. The purchase price for any Shares
      repurchased shall be the higher of the fair market value of the Shares on
      the date of purchase or the aggregate Exercise Price for such Shares and
      shall be paid in cash. The Company’s right of repurchase shall terminate
      in the event that Stock is listed on an established stock exchange or is
      quoted regularly on the NASDAQ National Market. The fair market value
      shall be determined by the Board of Directors in its sole
      discretion.
      

	 Transfer of Option
      
	Prior to your death, only you may exercise
      this Option. You cannot transfer or assign this Option. For instance, you
      may not sell this Option or use it as security for a loan. If you attempt
      to do any of these things, this Option will immediately become invalid.
      You may, however, dispose of this Option in your will or by other laws of
      descent and distribution.
      

      Regardless of any marital property settlement agreement, the
      Company is not obligated to honor a Notice of Exercise from your spouse or
      former spouse, nor is the Company obligated to recognize such individual’s
      interest in your Option in any other way.

      

 

 

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      Retention Rights

      

	This Agreement does not give you the right
      to be retained by the Company in any capacity. The Company reserves the
      right to terminate your Service at any time and for any reason.
      

	 Shareholder
      Rights
      
	
      Neither you, nor your estate or heirs, have any rights as a
      shareholder of the Company until a certificate for the Shares acquired
      upon exercise of this Option has been issued. No adjustments are made for
      dividends or other rights if the applicable record date occurs before your
      stock certificate is issued, except as described in the Plan.

      

	 Adjustments
      
	In the event of a stock split, a stock
      dividend or a similar change in the Company Stock, the number of Shares
      covered by this Option and the Exercise Price per share may be adjusted
      pursuant to the Plan. Your Option shall be subject to the terms of the
      agreement of merger, liquidation or reorganization in the event the
      Company is subject to such corporate activity.
      

	 Legends

      
	
      All certificates representing the Shares
      issued upon exercise of this Option shall, where applicable, have endorsed
      thereon the following legends:

      

      “THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO
      PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
      REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST. SUCH
      AGREEMENT IMPOSES CERTAIN TRANSFER RESTRICTIONS AND GRANTS CERTAIN
      REPURCHASE RIGHTS TO THE COMPANY (OR ITS ASSIGNS) UPON THE SALE OF THE
      SHARES OR UPON TERMINATION OF SERVICE WITH THE COMPANY. A COPY OF SUCH
      AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE
      FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE
      HOLDER OF SHARES REPRESENTED BY THIS CERTIFICATE.

      

      THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR
      THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF
      REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL
      AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF
      COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT REGISTRATION
      AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT
      REQUIRED.” 

      

      

	 Applicable
      Law
      
	This
      Agreement will be interpreted and enforced under the laws of the State of
      California (without regard to their choice of law provisions).
      

	 

      The Plan and 

      Other
      Agreements

      

      
	The text of the Plan is incorporated in this
      Agreement by reference. Certain capitalized terms used in this Agreement
      are defined in the Plan.
      

      This Agreement and the Plan constitute the
      entire understanding between you and the Company regarding this Option.
      Any prior agreements, commitments or negotiations concerning this Option
      are superseded.

      

 

 

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	Investment Company Act of 1940
      
	You acknowledge that the Company is a
      business development company governed by the Investment Company Act of
      1940, and therefore, if any terms of the Plan or this Agreement conflict
      with the provisions of the Investment Company of 1940, then the
      conflicting provisions of the Plan and this Agreement will automatically
      be amended to comply with the Investment Company Act of 1940.
      

 

 

 

 

By signing the cover sheet of this Agreement, you
agree to all of the terms and conditions described above and in the Plan. You
also acknowledge that you have read Section10, “Purchaser’s Investment
Representations” of Attachment A and that you can and hereby do make the same
representations with respect to the grant of this Option.

 

 

 

 

 

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EXHIBIT A

 

M-GAB Development Corporation

 

 

Notice of Exercise and Common Stock Purchase Agreement

 

THIS AGREEMENT is dated as of ___________, ____, between M-GAB
Development Corporation, (the “Company”), and _________________
(“Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and Purchaser are parties to that certain ___
Incentive ___ Nonstatutory Stock Option Agreement dated as of ___________, ____
(the “Option Agreement”) pursuant to which the Purchaser has the right to
purchase up to ______ shares of the Company’s common stock (the “Option
Shares”); and

 

WHEREAS, the Option is exercisable with respect to certain of the
Option Shares as of the date hereof; and

 

WHEREAS, pursuant to the Option Agreement, Purchaser desires to
purchase shares of the Company as herein described, on the terms and conditions
set forth in this Agreement, the Option Agreement and the M-GAB Development
Corporation Amended and Restated 2001 Omnibus Securities Plan (the “Plan”).
Certain capitalized terms used in this Agreement are defined in the Plan.

 

NOW, THEREFORE, it is agreed between the parties as follows:

 

SECTION 1:   PURCHASE
OF SHARES.

 

(a)  Pursuant to the terms of the Option Agreement,
Purchaser hereby agrees to purchase from the Company and the Company agrees to
sell and issue to Purchaser _________ shares of the Company’s common stock (the
“Stock”) for the Exercise Price per share specified in the Option Agreement
payable by personal check, cashier’s check or money order, if permitted by the
Option Agreement, as follows: _______________________________. Payment shall be
delivered at the Closing, as such term is hereinafter defined.

 

(b)  The closing hereunder (the “Closing”) shall occur
at the offices of the Company on __________, ____, or such other time and place
as may be designated by the Company (the “Closing Date”).

 

SECTION
2:   REPURCHASE OPTION

 

All unvested shares of the Stock purchased by the Purchaser
pursuant to this Agreement (sometimes referred to as the “Repurchase Option
Stock”) shall be subject to the following option (the “Repurchase
Option”):

 

(a)  In the event the Purchaser terminates service with
the Company (“Service”) for any reason, with or without cause, the Company may
exercise the Repurchase Option.

 

(b)  Purchaser understands that the Stock is being sold
in order to induce Purchaser to become and/or remain associated with the Company
and to work diligently for the success of the Company and that the Repurchase
Option Stock will continue to vest in accordance with the schedule set forth in
the Option Agreement. Accordingly, the Company shall have the right at any time
within 90 days after the termination of Service to purchase from the Purchaser
all shares of Stock purchased hereunder which have not vested in accordance with
the terms of such vesting schedule in the Option Agreement. The purchase price
for such unvested shares of Repurchase Option Stock shall be the Exercise Price
per share paid by Purchaser for such shares pursuant to the Option (the “Option
Price”). The purchase price shall be paid by certified or cashier’s check or by
cancellation of any indebtedness of Purchaser to the Company.

 

 

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(c)  Nothing
in this Agreement shall be construed as a right by purchaser to be employed by
Company, or a parent or subsidiary of Company.

 

SECTION
3:   EXERCISE OF REPURCHASE
OPTION

 

The Repurchase Option shall be exercised by written notice signed
by an officer of the Company and delivered or mailed as provided in
Section 16 of this Agreement and to the Escrow Agent as provided in
Section 16 of the Joint Escrow Instructions attached as Exhibit B to
the Option Agreement.

 

SECTION
4:   WAIVER, ASSIGNMENT, EXPIRATION OF
REPURCHASE OPTION

 

If the Company waives or fails to exercise the Repurchase Option
as to all of the shares subject thereto, the Company may, in the discretion of
its Board of Directors, assign the Repurchase Option to any other holder or
holders of preferred or common stock of the Company in such proportions as such
Board of Directors may determine. In the event of such an assignment, the
assignee shall pay to the Company in cash an amount equal to the fair market
value of the Repurchase Option. The Company shall promptly, upon expiration of
the 90-day period referred to in Section 2 above, notify Purchaser of the
number of shares subject to the Repurchase Option assigned to such stockholders
and shall notify both the Purchaser and the assignees of the time, place and
date for settlement of such purchase, which must be made within 90 days from the
date of cessation of continuous employment. In the event that the Company and/or
such assignees do not elect to exercise the Repurchase Option as to all or part
of the shares subject to it, the Repurchase Option shall expire as to all shares
which the Company and/or such assignees have not elected to purchase.

 

SECTION
5:   ESCROW OF SHARES

 

(a)  As
security for Purchaser’s faithful performance of the terms of this Agreement and
to ensure the availability for delivery of Purchaser’s shares upon exercise of
the Repurchase Option herein provided for, Purchaser agrees at the Closing
hereunder, to deliver to and deposit with the Escrow Agent named in the Joint
Escrow Instructions attached to the Option Agreement as Exhibit B, the
certificate or certificates evidencing the Option Stock subject to the
Repurchase Option and two Assignments Separate from Certificate duly executed
(with date and number of shares in blank) in the form attached to the Option
Agreement as Exhibit D. Such documents are to be held by the Escrow Agent
and delivered by the Escrow Agent pursuant to the Joint Escrow Instructions,
which instructions shall also be delivered to the Escrow Agent at the Closing
hereunder.

 

(b)  Within
30 days after the last day of each successive completed calendar quarter after
the Closing Date, if Purchaser so requests, the Escrow Agent will deliver to
Purchaser certificates representing so many shares of Stock as are no longer
subject to the Repurchase Option (less such shares as have been previously
delivered). Ninety days after cessation of Purchaser’s employment with the
Company the Company will direct the Escrow Agent to deliver to Purchaser a
certificate or certificates representing the number of shares not repurchased by
the Company or its assignees pursuant to exercise of the Repurchase Option (less
such shares as have been previously delivered).

 

 

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SECTION
6:   ADJUSTMENT OF SHARES

 

Subject to the provisions of the Articles of Incorporation of the
Company, if, from time to time during the term of the Repurchase Option:

 

(a)  there
is any stock dividend or liquidating dividend of cash and/or property, stock
split or other change in the character or amount of any of the outstanding
securities of the Company, or

 

(b)  there
is any consolidation, merger or sale of all or substantially all, of the assets
of the Company,

 

then, in such event, any and all new, substituted or additional
securities or other property to which Purchaser is entitled by reason of
Purchaser’s ownership of the shares shall be immediately subject to such
Repurchase Option with the same force and effect as the shares of Option Stock
from time to time subject to the Repurchase Option. While the total Option Price
shall remain the same after each such event, the Option Price per share of
Option Stock upon exercise of the Repurchase Option shall be appropriately and
equitably adjusted as determined by the Board of Directors of the Company.

 

SECTION
7:   THE COMPANY’S RIGHT OF FIRST
REFUSAL.

 

Before any shares of Stock registered in the name of Purchaser and
not subject to the Repurchase Option may be sold or transferred, such shares
shall first be offered to the Company as set forth in the Option
Agreement.

 

SECTION
8:   PURCHASER’S RIGHTS AFTER EXERCISE OF
REPURCHASE OPTION OR RIGHT OF FIRST
REFUSAL.

 

If the Company makes available, at the time and place and in the
amount and form provided in this Agreement, the consideration for the Stock to
be repurchased in accordance with the provisions of Sections 2 and 7 of this
Agreement, then from and after such time the person from whom such shares are to
be repurchased shall no longer have any rights as a holder of such shares (other
than the right to receive payment of such consideration in accordance with this
Agreement). Such shares shall be deemed to have been repurchased in accordance
with the applicable provisions hereof, whether or not the certificate(s)
therefor have been delivered as required by this Agreement.

 

SECTION
9:   TRANSFER BY PURCHASER TO CERTAIN
TRUSTS.

 

Purchaser shall have the right to transfer all or any portion of
Purchaser’s interest in the shares issued under this Agreement which have been
delivered to Purchaser under the provisions of Section 5 of this Agreement,
to a trust established by Purchaser for the benefit of Purchaser, Purchaser’s
spouse or Purchaser’s children, without being subject to the provisions of
Section 7 hereof, provided that the trustee on behalf of the trust shall
agree in writing to be bound by the terms and conditions of this Agreement. The
transferee shall execute a copy of Exhibit C attached to the Option
Agreement and file the same with the Secretary of the Company.

 

SECTION
10:   LEGEND OF SHARES.

 

All certificates representing the Stock purchased under this
Agreement shall, where applicable, have endorsed thereon the legends set forth
in the Option Agreement and any other legends required by applicable securities
laws.

 

 

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SECTION
11:   PURCHASER’S INVESTMENT
REPRESENTATIONS.

 

(a)  This Agreement is made with Purchaser in reliance
upon Purchaser’s representation to the Company, which by Purchaser’s acceptance
hereof Purchaser confirms, that the Stock which Purchaser will receive will be
acquired with Purchaser’s own funds for investment for an indefinite period
for Purchaser’s own account, not as a nominee or agent, and not with a view to
the sale or distribution of any part thereof, and that Purchaser has no present
intention of selling, granting participation in, or otherwise distributing the
same, but subject, nevertheless, to any requirement of law that the disposition
of Purchaser’s property shall at all times be within Purchaser’s
control. By executing this Agreement, Purchaser further represents that
Purchaser does not have any contract, understanding or agreement with any person
to sell, transfer, or grant participation, to such person or to any third
person, with respect to any of the Stock.

 

(b)  Purchaser understands that the Stock will not be
registered or qualified under federal or state securities laws on the ground
that the sale provided for in this Agreement is exempt from registration or
qualification under federal or state securities laws and that the Company’s
reliance on such exemption is predicated on Purchaser’s representations set
forth herein.

 

(c)  Purchaser agrees that in no event will Purchaser
make a disposition of any of the Stock (including a disposition under
Section 9 of this Agreement), unless and until (i) Purchaser shall
have notified the Company of the proposed disposition and shall have furnished
the Company with a statement of the circumstances surrounding the proposed
disposition and (ii) Purchaser shall have furnished the Company with an
opinion of counsel satisfactory to the Company to the effect that (A) such
disposition will not require registration or qualification of such Stock under
federal or state securities laws or (B) appropriate action necessary for
compliance with the federal or state securities laws has been taken or
(iii) the Company shall have waived, expressly and in writing, its rights
under clauses (i) and (ii) of this section.

 

(d)  With respect to a transaction occurring prior to
such date as the Plan and Stock thereunder are covered by a valid Form S-8 or
similar federal registration statement, this subsection shall apply unless the
transaction is covered by the exemption in Nevada General Corporation Law or a
similar broad based exemption. In connection with the investment representations
made herein, Purchaser represents that Purchaser is able to fend for himself or
herself in the transactions contemplated by this Agreement, has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of Purchaser’s investment, has the ability to bear the
economic risks of Purchaser’s investment and has been furnished with and has had
access to such information as would be made available in the form of a
registration statement together with such additional information as is necessary
to verify the accuracy of the information supplied and to have all questions
answered by the Company.

 

(e)  Purchaser understands that if the Company does not
register with the Securities and Exchange Commission pursuant to Section 12
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or if a
registration statement covering the Stock (or a filing pursuant to the exemption
from registration under Regulation A of the Securities Act of 1933) under the
Securities Act of 1933 is not in effect when Purchaser desires to sell the
Stock, Purchaser may be required to hold the Stock for an indeterminate period.
Purchaser also acknowledges that Purchaser understands that any sale of the
Stock which might be made by Purchaser in reliance upon Rule 144 under the
Securities Act of 1933 may be made only in limited amounts in accordance with
the terms and conditions of that Rule.

 

SECTION 12:
  ASSISTANCE TO PURCHASER UNDER RULE
144.

 

The Company covenants and agrees that (a) at all times after
it first becomes subject to the reporting requirements of Section 13 or
15(d) of the Exchange Act, it will use its best efforts to comply with the
current public information requirements of Rule 144(c)(1) under the Securities
Act of 1933, and that if prior to becoming subject to such reporting
requirements an over-the-counter market develops for the Stock, it will make
publicly available the information required by Rule 144(c)(2); (b) it
will furnish Purchaser, upon request, with all information required for the
preparation and filing of Form 144; and (c) it will on a timely basis use
its best efforts to file all reports required to be filed and make all
disclosures, including disclosures of materially adverse information, required
to permit Purchaser to make the required representations in Form 144.

 

 

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SECTION
13:   NO DUTY TO TRANSFER IN VIOLATION
HEREUNDER.

 

The Company shall not be required (a) to transfer on its
books any shares of Stock of the Company which shall have been sold or
transferred in violation of any of the provisions set forth in this Agreement or
(b) to treat as owner of such shares or to accord the right to vote as such
owner or to pay dividends to any transferee to whom such shares shall have been
so transferred.

 

SECTION
14:   RIGHTS OF PURCHASER.

 

Except as otherwise provided herein, Purchaser shall, during the
term of this Agreement, exercise all rights and privileges of a stockholder of
the Company with respect to the Stock.

 

SECTION
15:   OTHER NECESSARY
ACTIONS.

 

The parties agree to execute such further instruments and to take
such further action as may reasonably be necessary to carry out the intent of
this Agreement.

 

SECTION
16:   NOTICE.

 

Any notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given upon the earliest of personal
delivery, receipt or the third full day following deposit in the United States
Post Office with postage and fees prepaid, addressed to the other party hereto
at the address last known or at such other address as such party may designate
by 10 days’ advance written notice to the other party hereto.

 

SECTION
17:   SUCCESSORS AND
ASSIGNS.

 

This Agreement shall inure to the benefit of the successors and
assigns of the Company and, subject to the restrictions on transfer herein set
forth, be binding upon Purchaser and Purchaser’s heirs, executors,
administrators, successors and assigns. The failure of the Company in any
instance to exercise the Repurchase Option or rights of first offer described
herein shall not constitute a waiver of any other Repurchase Option or right of
first offer that may subsequently arise under the provisions of this Agreement.
No waiver of any breach or condition of this Agreement shall be deemed to be a
waiver of any other or subsequent breach or condition, whether of a like or
different nature.

 

SECTION
18:   APPLICABLE LAW.

 

This Agreement shall be governed by, and construed in accordance
with, the laws of the State of California, as such laws are applied to contracts
entered into and performed in such state.

 

 

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SECTION
19:   NO STATE
QUALIFICATION.

 

THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT
HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF
NEVADA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART
OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS
THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION. THE RIGHTS OF ALL
PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION
BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

 

SECTION
20:   NO ORAL MODIFICATION.

 

No modification of this Agreement shall be valid unless made in
writing and signed by the parties hereto.

 

SECTION
21:   ENTIRE AGREEMENT.

 

This Agreement and the Option Agreement constitute the entire
complete and final agreement between the parties hereto with regard to the
subject matter hereof.

 

IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.

 

	
      M-GAB Development Corporation

       
	
      Purchaser

       

	 	 
	
      Sign:______________________________________

       

      Print:______________________________________

       

      Title:______________________________________

       
	
      Sign:______________________________________

       

      Print:______________________________________

       

      Title:______________________________________

       

 

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EXHIBIT B

Joint Escrow Instructions

 

 

 _________, _____

 

Secretary

_____________________

 

 

Dear Sir or Madam:

 

As Escrow Agent for both M-GAB Development Corporation, (the
“Company”), and ___________________ (“Purchaser”), you are hereby authorized and
directed to hold the documents delivered to you pursuant to the terms of that
certain Common Stock Purchase Agreement (the “Agreement”) of even date herewith,
to which a copy of these Joint Escrow Instructions is attached as Exhibit B
to a certain Stock Option dated ________ (“Option Agreement”), in accordance
with the following instructions:

 

1.  In the event the Company shall elect to exercise the
Repurchase Option set forth in the Agreement, the Company shall give to
Purchaser and you a written notice as provided in the Agreement. Purchaser and
the Company hereby irrevocably authorize and direct you to close the transaction
contemplated by such notice, including prompt delivery of stock
certificates.

 

2.  At the closing, you are directed (a) to date
the stock assignment form or forms necessary for the transfer in question,
(b) to fill in the number of shares being transferred, and (c) to
deliver same, together with the certificate or certificates evidencing the
shares to be transferred, to the Company against the simultaneous delivery to
you of the purchase price (by certified or bank cashier’s check) for the number
of shares being purchased pursuant to the exercise of the Repurchase
Option.

 

3.  Purchaser irrevocably authorizes the Company to
deposit with you any certificates evidencing shares to be held by you hereunder
and any additions and substitutions to said shares as defined in the Agreement.
Purchaser does hereby irrevocably constitute and appoint you as Purchaser’s
attorney-in-fact and agent for the term of this escrow to execute with respect
to such securities all documents necessary or appropriate to make such
securities negotiable and to complete any transaction herein contemplated.
Subject to the provisions of this Section 3, Purchaser shall exercise all
rights and privileges, including but not limited to, the right to vote and to
receive dividends (if any), of a stockholder of the Company while the shares are
held by you.

 

4.  In accordance with the terms of Section 5 of
the Agreement, you may from time to time deliver to Purchaser a certificate or
certificates representing so many shares as are no longer subject to the
Repurchase Option.

 

5.  This escrow shall terminate upon the release of all
shares held under the terms and provisions hereof.

 

6.  If at the time of termination of this escrow you
should have in your possession any documents, securities or other property
belonging to Purchaser, you shall deliver all of same to Purchaser and shall be
discharged from all further obligations hereunder.

 

 

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7.  Your duties hereunder may be altered, amended,
modified or revoked only by a writing signed by all of the parties hereto.

 

8.  You shall be obligated only for the performance of
such duties as are specifically set forth herein and may rely and shall be
protected in relying or refraining from acting on any instrument reasonably
believed by you to be genuine and to have been signed or presented by the proper
party or parties. You shall not be personally liable for any act you may do or
omit to do hereunder as Escrow Agent or as attorney-in-fact of Purchaser while
acting in good faith and in the exercise of your own good judgment, and any act
done or omitted by you pursuant to the advice of your own attorneys shall be
conclusive evidence of such good faith.

 

9.  You are hereby expressly authorized to disregard any
and all warnings given by any of the parties hereto or by any other person or
corporation, excepting only orders or process of courts of law, and are hereby
expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case you obey or comply with any such order, judgment or decree of any
court, you shall not be liable to any of the parties hereto or to any other
person, firm or corporation by reason of such compliance, notwithstanding any
such order, judgment or decree being subsequently reversed, modified, annulled,
set aside, vacated or found to have been entered without jurisdiction.

 

10.  You shall not be liable in any respect on account
of the identity, authority or rights of the parties executing or delivering or
purporting to execute or deliver the Agreement or any documents or papers
deposited or called for hereunder.

 

11.  You shall not be liable for the outlawing of any
rights under any statute of limitations with respect to these Joint Escrow
Instructions or any documents deposited with you.

 

12.  You shall be entitled to employ such legal counsel
and other experts as you may deem necessary properly to advise you in connection
with your obligations hereunder and may rely upon the advice of such
counsel.

 

13.  Your responsibilities as Escrow Agent hereunder
shall terminate if you shall cease to be Secretary of the Company or if you
shall resign by written notice of each party. In the event of any such
termination, the Company shall appoint any officer of the Company as successor
Escrow Agent.

 

14.  If you reasonably require other or further
instruments in connection with these Joint Escrow Instructions or obligations in
respect hereto, the necessary parties hereto shall join in furnishing such
instruments.

 

15.  It is understood and agreed that should any dispute
arise with respect to the delivery and/or ownership or right of possession of
the securities held by you hereunder, you are authorized and directed to retain
in your possession without liability to anyone all or any part of said
securities until such dispute shall have been settled either by mutual written
agreement of the parties concerned or by a final order, decree or judgment of a
court of competent jurisdiction after the time for appeal has expired and no
appeal has been perfected, but you shall be under no duty whatsoever to
institute or defend any such proceedings.

 

16.  Any notice required or permitted hereunder shall be
given in writing and shall be deemed effectively given upon personal delivery or
upon deposit in the United States Post Office, by registered or certified mail
with postage and fees prepaid, addressed to each of the other parties thereunto
entitled.

 

17.  By signing these Joint Escrow Instructions, you
become a party hereto only for the purpose of said Joint Escrow Instructions;
you do not become a party to the Agreement.

 

18.  This instrument shall be governed by and construed
in accordance with the laws of the State of California.

 

 

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19.  This
instrument shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

 

 

 

Very truly yours,

 

M-GAB Development Corporation

 

Sign: ___________________________

 

Print:____________________________

 

Title:____________________________

 

 

ESCROW AGENT:     PURCHASER:

 

Sign:
__________________________   Sign:______________________________

 

Print:___________________________   Print:______________________________

 

Title:___________________________   Title:______________________________

 

 

 

 

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EXHIBIT C

 

Acknowledgment of and Agreement to be
Bound

 

By the Notice of Exercise and Common Stock Purchase
Agreement of

 

M-GAB Development Corporation

 

The undersigned, as transferee of shares of M-GAB Development
Corporation, hereby acknowledges that he or she has read and reviewed the terms
of the Notice of Exercise and Common Stock Purchase Agreement of M-GAB
Development Corporation and hereby agrees to be bound by the terms and
conditions thereof, as if the undersigned had executed said Agreement as an
original party thereto.

 

Dated: ____________________, ____.

 

Sign:_____________________________

Print:_____________________________

Title:_____________________________

 

 

 

 

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EXHIBIT D

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED _________________________________ hereby sells,
assigns and transfers unto _________________________ ________________________
(________) shares of the Common Stock of M-GAB Development Corporation (the
“Company”), standing in __________ name on the books of the Company represented
by Certificate No. ___________ herewith and hereby irrevocably constitutes and
appoints ________________ Attorney to transfer said stock on the books of the
Company with full power of substitution in the premises.

 

Dated: ____________________, ____.

 

 

 

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