Document:

Unassociated Document

    Management
      Entrustment Agreement

    

    This
      Agreement amends and restates that certain Management Entrustment Agreement
      made
      and entered into on November 8, 2006 in Xi’an City, China, by and between the
      following parties:

    

    Party
      A:
      Xi'an
      Amorphous Alloy Zhongxi Transformer Co., Ltd

    Registered
      business address: Xin Yuan Industry Tower, No.1 Xin Ke Road, New District,
      Xi’an
      City

    Legal
      representative: Yongxing Song

    

    Party
      B:
      An
      Sen
      (Xi'an) Power Science & Technology Co., Ltd.

    Registered
      business address: No.15
      Gaoxin 6 Road, Hi-tech Industries Development Zone, Xi'an. P. R. of
      China

    Legal
      representative: Yarong Feng

     

    WHEREAS:

    1.
      Party
      A is a joint stock limited company registered in Xi’an Shaanxi Province, and
      legally existing to date. The number of its business license is 6101001401860.

    2.
      Party
      B is a foreign investment enterprise incorporated and registered in Xi’an City,
      Shaanxi Province, People’s Republic of China, and legally existing to date. The
      number of its business license is: Qi Du Shaan Xi’An Zong Zi Di No. 002433

    3.
      In
      light of Xi’An Amorphous Alloy Science & Technology Co., Ltd, Party A’s real
      owner, intention to go public at OTCBB in the United States through Party B’s
      parent company, China Power Equipment Inc, (“China Power” hereinafter, a US
      company registered in Maryland), in order to let Party B have actual control
      of
      Party A and realize the consolidation of financial statements, Party A intends
      to irrevocably entrust to Party B for its management the right of operation
      management of Party A and the responsibilities and authorities of the
      shareholders’ meeting and the board of directors of Party A.

    4.
      Party
      B agrees to accept the entrustment of Party A, and to exercise the right of
      operation management of Party A and the responsibilities and authorities of
      the
      shareholders’ meeting and the board of directors of Party A.

    5.
      Party
      A has obtained the approval of its shareholders’ meeting to enter into this
      Agreement.

    

    NOW,
      THEREFORE,
      through
      friendly consultation, under the principle of equality and mutual benefits,
      in
      accordance with the relevant laws and regulations of the People’s Republic of
      China, the parties agree to enter into this Agreement and to be bound with
      the
      terms and conditions as follows:

    

    Article
      1
      Entrusted Operation

    
      	
              1.1

            	
              Party
                A agrees to irrevocably entrust the right of operation management
                of Party
                A and the responsibilities and authorities of Party A’s shareholders’
                meeting and the board of directors to Party B in accordance with
                the terms
                and conditions of this Agreement. Party B agrees to exercise the
                aforesaid
                rights and responsibilities in accordance with the terms and conditions
                of
                this Agreement.The aforesaid rights shall be exclusively entrusted
                to
                Party B, and Party B shall not transfer the aforesaid rights to any
                other
                party.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.2

            	
              The
                term of the entrusted operation is from the effective date of this
                Agreement to the date on which Party B possesses more than 51% of
                Party
                A’s shares.

            

    

    
      	
              1.3

            	
              The
                purpose of the entrusted operation is: Before Party B possesses the
                controlling stock (more than 51%) of Party A, Party B shall be in
                charge
                of the normal business operations of Party A and perform the
                responsibilities and rights of Party A’s shareholders’ meeting and the
                board of directors, and Party A shall pay its profit (if any) to
                Party B
                and Party B shall be responsible to Party A’s loss (if any). During the
                term of the entrusted operation, Party B, as the entrusted manager,
                shall
                provide full management to Party A’s
                operations.

            

    

    
      	
              1.4

            	
              The
                contents of the entrusted operation shall include but not limited
                to the
                following:

            

    

    
      	 	
              1)

            	
              Party
                B shall be in charge of all aspects of Party A’s operations; nominate and
                replace the members of Party A’s board of directors, engage Party A’s
                management staff and decide their compensation.

            

    

    
      	 	
              2)

            	
              Party
                B shall manage and control all the funds of Party A. The account
                of Party
                A shall be managed and decided solely by Party B. The seals and signatures
                for such account shall be the seals and signatures of the personnel
                appointed and confirmed by Party B. All the cash of Party A shall
                be kept
                in this entrusted account shall be handled through this account,
                including
                but not limited to receipt of all Party A’s business income, current
                working capital, recovered account receivables, etc., and the payment
                of
                all account payables and operation expenses, employee salaries and
                asset
                purchases, etc.

            

    

    
      	 	
              3)

            	
              All
                the matters of Party A, including internal financial management,
                day-to-day operation, external contact execution and performance,
                tax
                filing and payment, change of rights and personnel, etc., shall be
                controlled and managed by Party B in all
                aspects.

            

    

    
      	 	
              4)

            	
              Party
                B shall enjoy all the other responsibilities and rights enjoyed by
                Party
                A’s shareholders’ meeting in accordance with the Company Law and the
                articles of association of Party A, including but not limited to
                the
                following:

            

    

    
      	
            	a.	
              Deciding
                Party A’s operation principles and investment
                plan;

            

    

    
      	
            	b.	
              Discussing
                and approving the report of the board of
                directors;

            

    

    
      	
            	c.	
              Discussing
                and approving the report of the
                supervisor;

            

    

    
      	
            	d.	
              Discussing
                and approving the annual financial budget and settlement
                plan;

            

    

    
      	
            	e.	
              Discussing
                and approving the profit distribution plan and the loss compensation
                plan;

            

    

    
      	
            	f.	
              Resolving
                on the increase or decrease of the registered
                capital;

            

    

    
      	
            	g.	
              Resolving
                on the issuance of the corporate
                bond;

            

    

    
      	
            	h.	
              Resolving
                on the matters including merger, division, change of corporate form,
                dissolution and liquidation of the
                company;

            

    

    
      	
            	i.	
              Amending
                the articles of association;

            

    

    
      	
               

            	j.	
              Other
                responsibilities and rights provided by Party A’s articles of association.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5)

            	
              Party
                B enjoys all the other responsibilities and rights enjoyed by Party
                A’s
                board of directors in accordance with the Company Law and the articles
                of
                association of Party A, including but not limited to the
                following:

            

    

    
      
        	 	
                a.

              	
                Convening
                  the shareholders’ meeting and report to the shareholders’
                  meeting;

              

      

      
        	 	
                b.

              	
                Executing
                  the resolution of the shareholders’
meeting;

              

      

      
        	 	
                c.

              	
                Deciding
                  the company’s operation plan and investment
                  scheme;

              

      

      
        	 	
                d.

              	
                Composing
                  the annual financial budget and settlement
                  plan;

              

      

      
        	 	
                e.

              	
                Formulating
                  the profit distribution plan and the loss compensation
                  plan;

              

      

      
        	 	
                f.

              	
                Formulating
                  the plans regarding to the increase or decrease of the registered
                  capital
                  and the issuance of the corporate
                  bond;

              

      

      
        	 	
                g.

              	
                Formulating
                  the plans regarding to the matters including merger, division,
                  change of
                  corporate form and dissolution of the
                  company;

              

      

      
        	 	
                h.

              	
                Deciding
                  on the establishment of the internal management structure of the
                  company;

              

      

      
        	 	
                i.

              	
                Formulating
                  the basic rules and regulations of the
                  company;

              

      

      
        	 	
                j.

              	
                Other
                  responsibilities and rights provided by Party A’s articles of association
                  

              

      

    

    
      	 	
              6)

            	
              The
                said entrustment is irrevocable and shall not be withdrawn, unless
                the
                Agreement is terminated.

            

    

    
      	
              1.5

            	
              The
                Fee of Entrusted Operation: For the performance of the entrusted
                matters
                provided under this Agreement, Party A shall pay an entrustment fee
                to
                Party B, which shall be Party A’s total profit (if any) after deduction of
                necessary expenses. If the net amount is zero or negative after the
                aforesaid calculation, Party A shall not pay any entrustment fee,
                and the
                loss of the given month shall be deducted in the following months’
                entrustment fee. Party A and Party B shall calculate and settle each
                month’s entrustment fee payable by Party A within 10 days after the end
                of
                that month.

            

    

    
      	
              1.6

            	
              The
                Assumption of the Entrustment Risk: Party B shall assume all the
                operation
                risks in association with the management of Party A entrusted to
                it. Party
                B shall be responsible for any loss incurred to Party A’s operation. If
                Party A’s cash is not enough to pay its debt, Party B is liable to pay the
                debt; if the loss leads to a net asset less than the registered capital,
                Party B shall be liable to make up for the
                deficiency.

            

    

    
      	1.7	
              The
                restriction of share transfer: during the period of entrustment,
                Party B
                shall not transfer the shares owned by shareholders of Party A. Party
                A
                shall not transfer the shares without Party B’ written consent, except the
                shares transfer to Xi’An Amorphous Alloy Science & Technology Co.,
                Ltd.

            

    

    

    Article
      2
      Rights and Obligations of the Parties

    2.1 During
      the term of the entrusted operation, the rights and obligations of Party A
      shall
      include:

    
      	 	
              1)

            	
              After
                the execution of this Agreement, the management of Party A shall
                be handed
                over to Party B. Party A’s board of directors shall, within 5 days after
                the effective date of this Agreement, deliver Party A’s seals and
                financial materials (including but not limited to balance sheet,
                profit
                and loss statement, cash flow statement and any attachments, relevant
                right certificates and other proprietary and operation documents)
                to Party
                B to ensure that Party B could exercise its operation management
                rights in
                all aspects after taking over the management of Party A and could
                set up
                financial records accordingly;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              2)

            	
              During
                the term of the entrusted operation, without Party B’s consent, Party A
                and its shareholders’ meeting and board of directors shall not make any
                decision on Party A’s operations, and they shall not intervene with Party
                B’s entrusted management activities in any
                form;

            

    

    
      	 	
              3)

            	
              During
                the term of the entrusted operation, Party A’s board of directors shall
                have the obligation to cooperate with Party B in accordance with
                Party B’s
                request to ensure the stability and consistency of the
                operation;

            

    

    
      	 	
              4)

            	
              To
                entrust the authorities of the shareholders’ meeting and the board of
                directors to Party B;

            

    

    
      	 	
              5)

            	
              To
                timely pay the entrustment fee to Party
                B;

            

    

    
      	 	
              6)

            	
              Without
                Party B’s consent, Party A shall not entrust any third party other than
                Party B in any form to manage Party A’s
                businesses;

            

    

    
      	 	
              7)

            	
              The
                board of directors and shareholders meeting of Party A shall issue
                necessary documents for the purpose of accomplishing the management
                by
                Party B;

            

    

    
      	 	
              8)

            	
              Party
                A shall not unilaterally early terminate this Agreement for any
                reason.

            

    

    
      	 	
              9)

            	
              Other
                rights and obligations of Party A provided under this Agreement.
                

            

    

    2.2 During
      the term of the entrusted operation, the rights and obligations of Party B
      shall
      include:

    
      	 	
              1)

            	
              Party
                B shall enjoy independent and comprehensive management right over
                Party
                A’s operations;

            

    

    
      	 	
              2)

            	
              Party
                B shall have the right to adjust the organizational structure and
                the
                personnel placement of Party A based on the needs of the
                management;

            

    

    
      	 	
              3)

            	
              Party
                B shall have the right to dispose of all the assets on the books
                of Party
                A on the execution day of this Agreement, and Party can B dispose
                of any
                of the aforesaid assets without any prior consent of Party
                A;

            

    

    
      	 	
              4)

            	
              Party
                B shall be entitled to all of the Party A’s income after deducting
                necessary expenses.

            

    

    
      	 	
              5)

            	
              Party
                B shall timely take over of Party
                A;

            

    

    
      	 	
              6)

            	
              Party
                B shall carry out all the responsibilities and rights entrusted to
                it
                under this Agreement in good faith and with honesty and trustworthiness,
                and shall pay reasonable attention to the entrusted matters and notify
                Party A timely of relevant matters;

            

    

    
      	 	
              7)

            	
              Party
                B shall act in good faith and consult with Party A in regards to
                the
                handling of matters not covered by this
                Agreement;

            

    

    
      	 	
              8)

            	
              Other
                obligations shall be performed by Party B under this Agreement.
                

            

    

    

    Article
      3
      Warranties and Representations

    Each
      party shall warrant and represent to the other party, on the execution day
      of
      this Agreement, that:

    
      	1)	
              Each
                party shall have the right to enter into this Agreement, and the
                ability
                to perform this Agreement;

            

    

    
      	2)	
              In
                order to execute and perform this Agreement, each party has gone
                through
                the necessary internal decision-making procedures and obtained the
                approval;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	3)	
              Each
                party has duly authorized its representative to execute this
                Agreement;

            

    

    
      	4)	
              Each
                party shall not have any reason of its own that will encumber the
                effectiveness of this Agreement from the effective date and become
                binding
                on such party;

            

    

    
      	5)	
              The
                execution of this Agreement and the performance of the obligations
                hereunder will NOT:

            

    

    
      
        	 	
                a)

              	
                violate
                  the business license, articles of association or any other similar
                  documents of that party;

              

      

      
        	 	
                b)

              	
                violate
                  the laws and regulations of China or the government authorization
                  or
                  permit;

              

      

      
        	 	
                c)

              	
                violate
                  any other contracts or agreements to which that party is a party
                  (or is
                  bound), or lead to that party’s breach of contract under such contracts or
                  agreements.

              

      

    

    

    Article
      4
      Effect of the Agreement

    This
      Agreement shall be valid upon the subscription of both parties’ legal
      representatives or duly authorized representatives and the affixture of both
      parties’ corporate seals.

    

    Article
      5
      Liability of Beach of the Agreement

    After
      the
      effectiveness of this Agreement, apart from the situation described in Article
      6
      of this Agreement, either party’s violation of any provisions under this
      Agreement shall constitute a breach of this Agreement and thus be liable to
      compensate the non-breaching party for any damages that may arise
      thereof.

    

    Article
      6
      Force Majeure

    Either
      party’s failure to perform the obligations or part of the obligations of this
      Agreement due to a force majeure event shall not be deemed as a breach of the
      agreement; however, the non-performing party shall timely provide effective
      evidence of the force majeure event to the other party, and the parties shall
      discuss a settlement plan through consultation.

    

    Article
      7
      The Governing Law

    The
      execution, effectiveness, interpretation, performance and dispute resolution
      of
      this Agreement shall be governed by the laws and regulations of
      China.

    

    Article
      8
      Dispute Resolution

    Any
      dispute arising under this Agreement shall be first settled by the parties
      through friendly consultation. If the dispute cannot be settled through
      consultation, either party is entitled to submit the dispute to the people’s
      court that has jurisdiction over the dispute .

    

    Article
      9
      Confidentiality 

    
      	
              9.1

            	
              The
                parties agree and shall cause their relevant personnel to keep strict
                confidence of all the terms and conditions of this Agreement and
                all the
                matters of the entrusted operation that have access to. They shall
                not
                disclose the aforesaid information to any third party unless it is
                required by the explicit provision of law, or the instruction of
                judicial
                or governmental agencies or with consent of the other party, otherwise,
                the disclosing party shall bear the relevant legal
                consequences.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              9.2

            	
              The
                confidentiality obligation of the parties shall survive the termination
                of
                this Agreement.

            

    

    

    Article
      10 Severability of the Clauses

    
      	10.1	
              If
                any clause of this Agreement is invalidated or non-enforceable due
                to the
                provisions of laws or regulations, this clause is invalid while all
                other
                clauses shall remain in full force and effect and binding upon both
                parties.

            

    

    
      	10.2	
              In
                the event the aforesaid situation occurs, the parties shall, through
                friendly consultation, agree upon supplemental clause to replace
                the
                invalid clause at their earliest possible
                time.

            

    

    

    Article
      11 Non-waiver of Rights

    
      	11.1	
              If
                one party fails or delays to exercise a certain right provided under
                this
                Agreement, such failure or delay shall not constitute the waiver
                of such
                right by that party.

            

    

    
      	11.2	
              If
                one party fails to require the other party to perform a certain obligation
                provided under this Agreement, such failure shall not constitute
                the
                waiver by that party of the right to require the other party to perform
                at
                a later time.

            

    

    
      	11.3	
              If
                one party violates any clause of this Agreement and obtains a waiver
                of
                liability from the non-violating party, such waiver shall not constitute
                the waiver of liability by the non-violation party over the violations
                by
                the other party at a later time or of other clauses of this
                Agreement.

            

    

    

    Article
      12 No Transfer

    Unless
      otherwise provided in this Agreement, without the prior written consent of
      the
      other party, one party shall not transfer or entrust this Agreement or any
      right
      or obligation under this Agreement to a third party, nor shall one party provide
      any guarantee to a third party or do other similar things.

    

    Article
      13 Miscellaneous 

    
      	13.1	
              Any
                supplemental agreements entered into by the parties after the effective
                date of this Agreement shall be an effective part of this Agreement
                and
                have the same legal effect as this Agreement. If there is any discrepancy
                between the supplemental agreement and this Agreement, the supplemental
                agreement shall prevail.

            

    

    
      	13.2	
              This
                Agreement is written in Chinese This Agreement is executed in six
                official
                copies, each party shall have two official copies and the remaining
                shall
                be retained for the government procedure
                purpose.

            

    

    
      	13.3	
              IN
                WITNESS WHEREOF, the parties hereto have duly executed this Agreement
                on
                this date first above written.

            

    

    

    (NO
      CONTEXT BELOW) 

    

    (SIGNATURE
      PAGE)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Party
      A:
      Xi'
      an
      Amorphous Alloy Zhongxi Transformer Co., Ltd

     

    

    Legal
      representative:

    (or
      authorized representative) 

     

    

    

    Party
      B:
      An
      Sen
      (Xi’an) Power Science & Technology Co., Ltd.

     

    

    Legal
      representative:

    (or
      authorized representative) 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Statement

    

    As
      the
      shareholder of Xi'
      an
      Amorphous Alloy Zhongxi Transformer Co., Ltd,
      I agree
      that Xi'
      an
      Amorphous Alloy Zhongxi Transformer Co., Ltd signs
      the
      Management Entrustment Agreement with An
      Sen
      (Xi’an) Power Science & Technology Co., Ltd.,
      which
      irrevocably entrusts An
      Sen
      (Xi’an) Power Science & Technology Co., Ltd.
      for its
      management the right of operation management of
      Xi' an
      Amorphous Alloy Zhongxi Transformer Co., Ltd and the right from me according
      to
      the laws and the company’s articles of association. Furthermore, I promise I
      will not transfer my shares of Xi' an Amorphous Alloy Zhongxi Transformer Co.,
      Ltd to anybody other than Xi’An
      Amorphous Alloy Science & Technology Co., Ltd.

     

    Stated
      by:

      

    
      
        	
                Song
                  Yongxin

              	
                Mao
                  junming

              
	
                 

              	
                 

              
	 	 
	
                Xv
                  Zewei

              	
                Wang
                  Yuefeng

              
	
                 

              	
                 

              
	 	 
	
                Dai
                  Tao

              	
                Lin
                  Yuan

              
	
                 

              	
                 

              
	 	 
	
                Zhang
                  Wei

              	
                Feng
                  Yarong

              
	
                 

              	
                 

              
	 	 
	
                Shi
                  Sujun

              	
                Yu
                  Xinzheng

              

      

    

     

    Zhejiang
      lvneng Electric Co.Ltd. (Seal

     

    
      	 	April 24,
              2008Unassociated Document

    
      

        EXHIBIT
          4.1

        

        EUROWEB
          INTERNATIONAL CORP. 2004 INCENTIVE STOCK PLAN AS AMENDED

         

        
          
            

          

           

        

        THIS
          EUROWEB INTERNATIONAL CORP. 2004 INCENTIVE STOCK PLAN, AS AMENDED, (the
          "Plan")
          is designed to retain directors, executives and selected employees and
          consultants and reward them for making major contributions to the success
          of the
          Company. These objectives are accomplished by making long-term incentive
          awards
          under the Plan thereby providing Participants with a proprietary interest
          in the
          growth and performance of the Company.

        

        
          	
                  1.

                	
                  Definitions.

                

        

        

        
          	 	
                  (a)

                	
                  "Board"
                    - The Board of Directors of the
                    Company.

                

        

        

        
          	 	
                  (b)

                	
                  "Code"
                    - The Internal Revenue Code of 1986, as amended from time to
                    time.

                

        

        

        
          	 	
                  (c)

                	
                  "Committee"
                    - The Compensation Committee of the Company's Board, or such
                    other
                    committee of the Board that is designated by the Board to administer
                    the
                    Plan, composed of not less than two members of the Board all
                    of whom are
                    disinterested persons, as contemplated by Rule 16b-3 ("Rule 16b-3")
                    promulgated under the Securities Exchange Act of 1934, as amended
                    (the
                    "Exchange Act").

                

        

        

        
          	 	
                  (d)

                	
                  "Company"
                    - EUROWEB INTERNATIONAL CORP. and its subsidiaries including
                    subsidiaries
                    of subsidiaries.

                

        

        

        
          	 	
                  (e)

                	
                  "Exchange
                    Act" - The Securities Exchange Act of 1934, as amended from time
                    to
                    time.

                

        

        

        
          	 	
                  (f)

                	
                  "Fair
                    Market Value" - The fair market value of the Company's issued
                    and
                    outstanding Stock as determined in good faith by the Board or
                    Committee.

                

        

        

        
          	 	
                  (g)

                	
                  "Grant"
                    - The grant of any form of stock option, stock award, or stock
                    purchase
                    offer, whether granted singly, in combination or in tandem, to
                    a
                    Participant pursuant to such terms, conditions and limitations
                    as the
                    Committee may establish in order to fulfill the objectives of
                    the
                    Plan.

                

        

        

        
          	 	
                  (h)

                	
                  "Grant
                    Agreement" - An agreement between the Company and a Participant
                    that sets
                    forth the terms, conditions and limitations applicable to a
                    Grant.

                

        

        

        
          	 	
                  (i)

                	
                  "Option"
                    - Either an Incentive Stock Option, in accordance with Section
                    422 of
                    Code, or a Nonstatutory Option, to purchase the Company's Stock
                    that may
                    be awarded to a Participant under the Plan. A Participant who
                    receives an
                    award of an Option shall be referred to as an
                    "Optionee."

                

        

        

        
          	 	
                  (j)

                	
                  "Participant"
                    - A director, officer, employee or consultant of the Company
                    to whom an
                    Award has been made under the Plan.

                

        

        

        
          	 	
                  (k)

                	
                  "Restricted
                    Stock Purchase Offer" - A Grant of the right to purchase a specified
                    number of shares of Stock pursuant to a written agreement issued
                    under the
                    Plan.

                

        

        

        
          	 	
                  (l)

                	
                  "Securities
                    Act" - The Securities Act of 1933, as amended from time to
                    time.

                

        

        

        
          	 	
                  (m)

                	
                  "Stock"
                    - Authorized and issued or unissued shares of common stock of
                    the
                    Company.

                

        

        

        
          	 	
                  (n)

                	
                  "Stock
                    Award" - A Grant made under the Plan in stock or denominated
                    in units of
                    stock for which the Participant is not obligated to pay additional
                    consideration.

                

        

        

        
          	
                  2.

                	
                  Administration.
                    The Plan shall be administered by the Board, provided however,
                    that the
                    Board may delegate such administration to the Committee. Subject
                    to the
                    provisions of the Plan, the Board and/or the Committee shall
                    have
                    authority to (a) grant, in its discretion, Incentive Stock Options
                    in
                    accordance with Section 422 of the Code, or Nonstatutory Options,
                    Stock
                    Awards or Restricted Stock Purchase Offers; (b) determine in
                    good faith
                    the fair market value of the Stock covered by any Grant; (c)
                    determine
                    which eligible persons shall receive Grants and the number of
                    shares,
                    restrictions, terms and conditions to be included in such Grants;
                    (d)
                    construe and interpret the Plan; (e) promulgate, amend and rescind
                    rules
                    and regulations relating to its administration, and correct defects,
                    omissions and inconsistencies in the Plan or any Grant;(f) consistent
                    with
                    the Plan and with the consent of the Participant, as appropriate,
                    amend
                    any outstanding Grant or amend the exercise date or dates thereof;
                    (g)
                    determine the duration and purpose of leaves of absence which
                    may be
                    granted to Participants without constituting termination of their
                    employment for the purpose of the Plan or any Grant; and (h)
                    make all
                    other determinations necessary or advisable for the Plan's administration.
                    The interpretation and construction by the Board of any provisions
                    of the
                    Plan or selection of Participants shall be conclusive and final.
                    No member
                    of the Board or the Committee shall be liable for any action
                    or
                    determination made in good faith with respect to the Plan or
                    any Grant
                    made thereunder.

                

        

         

        
          	
                  3.

                	
                  Eligibility.

                

        

        

        
          	 	
                  (a)

                	
                  General:
                    The persons who shall be eligible to receive Grants shall be
                    directors,
                    officers, employees or consultants to the Company. The term consultant
                    shall mean any person, other than an employee, who is engaged
                    by the
                    Company to render services and is compensated for such services.
                    An
                    Optionee may hold more than one Option. Any issuance of a Grant
                    to an
                    officer or director of the Company subsequent to the first registration
                    of
                    any of the securities of the Company under the Exchange Act shall
                    comply
                    with the requirements of Rule
                    16b-3.

                

        

        

        
          	 	
                  (b)

                	
                  Incentive
                    Stock Options: Incentive Stock Options may only be issued to
                    employees of
                    the Company. Incentive Stock Options may be granted to officers
                    or
                    directors, provided they are also employees of the Company. Payment
                    of a
                    director's fee shall not be sufficient to constitute employment
                    by the
                    Company.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        The
          Company shall not grant an Incentive Stock Option under the Plan to any
          employee
          if such Grant would result in such employee holding the right to exercise
          for
          the first time in any one calendar year, under all Incentive Stock Options
          granted under the Plan or any other plan maintained by the Company, with
          respect
          to shares of Stock having an aggregate fair market value, determined as
          of the
          date of the Option is granted, in excess of $100,000. Should it be determined
          that an Incentive Stock Option granted under the Plan exceeds such maximum
          for
          any reason other than a failure in good faith to value the Stock subject
          to such
          option, the excess portion of such option shall be considered a Nonstatutory
          Option. To the extent the employee holds two (2) or more such Options which
          become exercisable for the first time in the same calendar year, the foregoing
          limitation on the exercisability of such Option as Incentive Stock Options
          under
          the Federal tax laws shall be applied on the basis of the order in which
          such
          Options are granted. If, for any reason, an entire Option does not qualify
          as an
          Incentive Stock Option by reason of exceeding such maximum, such Option
          shall be
          considered a Nonstatutory Option.

        

        
          	 	
                  (c)

                	
                  Nonstatutory
                    Option: The provisions of the foregoing Section 3(b) shall not
                    apply to
                    any Option designated as a "Nonstatutory Option" or which sets
                    forth the
                    intention of the parties that the Option be a Nonstatutory
                    Option.

                

        

        

        
          	 	
                  (d)

                	
                  Stock
                    Awards and Restricted Stock Purchase Offers: The provisions of
                    this
                    Section 3 shall not apply to any Stock Award or Restricted Stock
                    Purchase
                    Offer under the Plan.

                

        

        

        
          	
                  4.

                	
                  Stock.

                

        

        

        
          	 	
                  (a)

                	
                  Authorized
                    Stock: Stock subject to Grants may be either unissued or reacquired
                    Stock.

                

        

        

        
          	 	
                  (b)

                	
                  Number
                    of Shares: Subject to adjustment as provided in Section 5(i)
                    of the Plan,
                    the total number of shares of Stock which may be purchased or
                    granted
                    directly by Options, Stock Awards or Restricted Stock Purchase
                    Offers, or
                    purchased indirectly through exercise of Options granted under
                    the Plan
                    shall not exceed One Million Two Hundred Thousand (1,200,000).
                    If any
                    Grant shall for any reason terminate or expire, any shares allocated
                    thereto but remaining unpurchased upon such expiration or termination
                    shall again be available for Grants with respect thereto under
                    the Plan as
                    though no Grant had previously occurred with respect to such
                    shares. Any
                    shares of Stock issued pursuant to a Grant and repurchased pursuant
                    to the
                    terms thereof shall be available for future Grants as though
                    not
                    previously covered by a Grant.

                

        

        

        
          	 	
                  (c)

                	
                  Reservation
                    of Shares: The Company shall reserve and keep available at all
                    times
                    during the term of the Plan such number of shares as shall be
                    sufficient
                    to satisfy the requirements of the Plan. If, after reasonable
                    efforts,
                    which efforts shall not include the registration of the Plan
                    or Grants
                    under the Securities Act, the Company is unable to obtain authority
                    from
                    any applicable regulatory body, which authorization is deemed
                    necessary by
                    legal counsel for the Company for the lawful issuance of shares
                    hereunder,
                    the Company shall be relieved of any liability with respect to
                    its failure
                    to issue and sell the shares for which such requisite authority
                    was so
                    deemed necessary unless and until such authority is
                    obtained.

                

        

        

        
          	 	
                  (d)

                	
                  Application
                    of Funds: The proceeds received by the Company from the sale
                    of Stock
                    pursuant to the exercise of Options or rights under Stock Purchase
                    Agreements will be used for general corporate
                    purposes.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	 	
                  (e)

                	
                  No
                    Obligation to Exercise: The issuance of a Grant shall impose
                    no obligation
                    upon the Participant to exercise any rights under such
                    Grant.

                

        

        

        
          	
                  5.

                	
                  Terms
                    and Conditions of Options. Options granted hereunder shall be
                    evidenced by
                    agreements between the Company and the respective Optionees,
                    in such form
                    and substance as the Board or Committee shall from time to time
                    approve.
                    The form of Incentive Stock Option Agreement attached hereto
                    as Exhibit A
                    and the three forms of a Nonstatutory Stock Option Agreement
                    for
                    employees, for directors and for consultants, attached hereto
                    as Exhibit
                    B-1, Exhibit B-2 and Exhibit B-3, respectively, shall be deemed
                    to be
                    approved by the Board. Option agreements need not be identical,
                    and in
                    each case may include such provisions as the Board or Committee
                    may
                    determine, but all such agreements shall be subject to and limited
                    by the
                    following terms and conditions:

                

        

        

        
          	 	
                  (a)

                	
                  Number
                    of Shares: Each Option shall state the number of shares to which
                    it
                    pertains.

                

        

        

        
          	 	
                  (b)

                	
                  Exercise
                    Price: Each Option shall state the exercise price, which shall
                    be
                    determined as follows:

                

        

        

        
          	 	
                  (i)

                	
                  Any
                    Incentive Stock Option granted to a person who at the time the
                    Option is
                    granted owns (or is deemed to own pursuant to Section 424(d)
                    of the Code)
                    stock possessing more than ten percent (10%) of the total combined
                    voting
                    power or value of all classes of stock of the Company ("Ten Percent
                    Holder") shall have an exercise price of no less than 110% of
                    the Fair
                    Market Value of the Stock as of the date of grant;
                    and

                

        

        

        
          	 	
                  (ii)

                	
                  Incentive
                    Stock Options granted to a person who at the time the Option
                    is granted is
                    not a Ten Percent Holder shall have an exercise price of no less
                    than 100%
                    of the Fair Market Value of the Stock as of the date of
                    grant.

                

        

        

        For
          the
          purposes of this Section 5(b), the Fair Market Value shall be as determined
          by
          the Board in good faith, which determination shall be conclusive and binding;
          provided however, that if there is a public market for such Stock, the
          Fair
          Market Value per share shall be the average of the bid and asked prices
          (or the
          closing price if such stock is listed on the NASDAQ National Market System
          or
          Small Cap Issue Market) on the date of grant of the Option, or if listed
          on a
          stock exchange, the closing price on such exchange on such date of
          grant.

        

        
          	 	
                  (c)

                	
                  Medium
                    and Time of Payment: The exercise price shall become immediately
                    due upon
                    exercise of the Option and shall be paid in cash or check made
                    payable to
                    the Company. Should the Company's outstanding Stock be registered
                    under
                    Section 12(g) of the Exchange Act at the time the Option is exercised,
                    then the exercise price may also be paid as
                    follows:

                

        

        

        
          	 	
                  (i)

                	
                  in
                    shares of Stock held by the Optionee for the requisite period
                    necessary to
                    avoid a charge to the Company's earnings for financial reporting
                    purposes
                    and valued at Fair Market Value on the exercise date,
                    or

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	 	
                  (ii)

                	
                  through
                    a special sale and remittance procedure pursuant to which the
                    Optionee
                    shall concurrently provide irrevocable written instructions (a)
                    to a
                    Company designated brokerage firm to effect the immediate sale
                    of the
                    purchased shares and remit to the Company, out of the sale proceeds
                    available on the settlement date, sufficient funds to cover the
                    aggregate
                    exercise price payable for the purchased shares plus all applicable
                    Federal, state and local income and employment taxes required
                    to be
                    withheld by the Company by reason of such purchase and (b) to
                    the Company
                    to deliver the certificates for the purchased shares directly
                    to such
                    brokerage firm in order to complete the sale
                    transaction.

                

        

        

        At
          the
          discretion of the Board, exercisable either at the time of Option grant
          or of
          Option exercise, the exercise price may also be paid (i) by Optionee's
          delivery
          of a promissory note in form and substance satisfactory to the Company
          and
          permissible under applicable securities rules and bearing interest at a
          rate
          determined by the Board in its sole discretion, but in no event less than
          the
          minimum rate of interest required to avoid the imputation of compensation
          income
          to the Optionee under the Federal tax laws, or (ii) in such other form
          of
          consideration permitted by the State of Delaware corporations law as may
          be
          acceptable to the Board.

        

        
          	 	
                  (d)

                	
                  Term
                    and Exercise of Options: Any Option granted to an employee of
                    the Company
                    shall become exercisable over a period of no longer than five
                    (5) years,
                    and no less than twenty percent (20%) of the shares covered thereby
                    shall
                    become exercisable annually. No Option shall be exercisable,
                    in whole or
                    in part, prior to one (1) year from the date it is granted unless
                    the
                    Board shall specifically determine otherwise, as provided herein.
                    In no
                    event shall any Option be exercisable after the expiration of
                    ten (10)
                    years from the date it is granted, and no Incentive Stock Option
                    granted
                    to a Ten Percent Holder shall, by its terms, be exercisable after
                    the
                    expiration of five (5) years from the date of the Option. Unless
                    otherwise
                    specified by the Board or the Committee in the resolution authorizing
                    such
                    Option, the date of grant of an Option shall be deemed to be
                    the date upon
                    which the Board or the Committee authorizes the granting of such
                    Option.

                

        

        

        Each
          Option shall be exercisable to the nearest whole share, in installments
          or
          otherwise, as the respective Option agreements may provide. During the
          lifetime
          of an Optionee, the Option shall be exercisable only by the Optionee and
          shall
          not be assignable or transferable by the Optionee, and no other person
          shall
          acquire any rights therein. To the extent not exercised, installments (if
          more
          than one) shall accumulate, but shall be exercisable, in whole or in part,
          only
          during the period for exercise as stated in the Option agreement, whether
          or not
          other installments are then exercisable.

        

        
          	 	
                  (e)

                	
                  Termination
                    of Status as Employee, Consultant or Director: If Optionee's
                    status as an
                    employee shall terminate for any reason other than Optionee's
                    disability
                    or death, then Optionee (or if the Optionee shall die after such
                    termination, but prior to exercise, Optionee's personal representative
                    or
                    the person entitled to succeed to the Option) shall have the
                    right to
                    exercise the portions of any of Optionee's Incentive Stock Options
                    which
                    were exercisable as of the date of such termination, in whole
                    or in part,
                    not less than 30 days nor more than three (3) months after such
                    termination (or, in the event of "termination for good cause"
                    as that term
                    is defined in Delaware case law related thereto, or by the terms
                    of the
                    Plan or the Option Agreement or an employment agreement, the
                    Option shall
                    automatically terminate as of the termination of employment as
                    to all
                    shares covered by the Option).

                

        

        

        
          
             

          

          
             

            
              

            

          

          
             

          

           

        

        With
          respect to Nonstatutory Options granted to employees, directors or consultants,
          the Board may specify such period for exercise, not less than 30 days (except
          that in the case of "termination for cause" or removal of a director, the
          Option
          shall automatically terminate as of the termination of employment or services
          as
          to shares covered by the Option, following termination of employment or
          services
          as the Board deems reasonable and appropriate. The Option may be exercised
          only
          with respect to installments that the Optionee could have exercised at
          the date
          of termination of employment or services. Nothing contained herein or in
          any
          Option granted pursuant hereto shall be construed to affect or restrict
          in any
          way the right of the Company to terminate the employment or services of
          an
          Optionee with or without cause.

        

        
          	 	
                  (f)

                	
                  Disability
                    of Optionee: If an Optionee is disabled (within the meaning of
                    Section
                    22(e)(3) of the Code) at the time of termination, the three (3)
                    month
                    period set forth in Section 5(e) shall be a period, as determined
                    by the
                    Board and set forth in the Option, of not less than six months
                    nor more
                    than one year after such
                    termination.

                

        

        

        
          	 	
                  (g)

                	
                  Death
                    of Optionee: If an Optionee dies while employed by, engaged as
                    a
                    consultant to, or serving as a Director of the Company, the portion
                    of
                    such Optionee's Option which was exercisable at the date of death
                    may be
                    exercised, in whole or in part, by the estate of the decedent
                    or by a
                    person succeeding to the right to exercise such Option at any
                    time within
                    (i) a period, as determined by the Board and set forth in the
                    Option, of
                    not less than six (6) months nor more than one (1) year after
                    Optionee's
                    death, which period shall not be more, in the case of a Nonstatutory
                    Option, than the period for exercise following termination of
                    employment
                    or services, or (ii) during the remaining term of the Option,
                    whichever is
                    the lesser. The Option may be so exercised only with respect
                    to
                    installments exercisable at the time of Optionee's death and
                    not
                    previously exercised by the
                    Optionee.

                

        

        

        
          	 	
                  (h)

                	
                  Nontransferability
                    of Option: No Option shall be transferable by the Optionee, except
                    by will
                    or by the laws of descent and
                    distribution.

                

        

        

        
          	 	
                  (i)

                	
                  Recapitalization:
                    Subject to any required action of shareholders, the number of
                    shares of
                    Stock covered by each outstanding Option, and the exercise price
                    per share
                    thereof set forth in each such Option, shall be proportionately
                    adjusted
                    for any increase or decrease in the number of issued shares of
                    Stock of
                    the Company resulting from a stock split, stock dividend, combination,
                    subdivision or reclassification of shares, or the payment of
                    a stock
                    dividend, or any other increase or decrease in the number of
                    such shares
                    affected without receipt of consideration by the Company; provided,
                    however, the conversion of any convertible securities of the
                    Company shall
                    not be deemed to have been "effected without receipt of consideration"
                    by
                    the Company.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        In
          the
          event of a proposed dissolution or liquidation of the Company, a merger
          or
          consolidation in which the Company is not the surviving entity, or a sale
          of all
          or substantially all of the assets or capital stock of the Company
          (collectively, a "Reorganization"), unless otherwise provided by the Board,
          this
          Option shall terminate immediately prior to such date as is determined
          by the
          Board, which date shall be no later than the consummation of such
          Reorganization. In such event, if the entity which shall be the surviving
          entity
          does not tender to Optionee an offer, for which it has no obligation to
          do so,
          to substitute for any unexercised Option a stock option or capital stock
          of such
          surviving of such surviving entity, as applicable, which on an equitable
          basis
          shall provide the Optionee with substantially the same economic benefit
          as such
          unexercised Option, then the Board may grant to such Optionee, in its sole
          and
          absolute discretion and without obligation, the right for a period commencing
          thirty (30) days prior to and ending immediately prior to the date determined
          by
          the Board pursuant hereto for termination of the Option or during the remaining
          term of the Option, whichever is the lesser, to exercise any unexpired
          Option or
          Options without regard to the installment provisions of Paragraph 6(d)
          of the
          Plan; provided, that any such right granted shall be granted to all Optionees
          not receiving an offer to receive substitute options on a consistent basis,
          and
          provided further, that any such exercise shall be subject to the consummation
          of
          such Reorganization.

        

        Subject
          to any required action of shareholders, if the Company shall be the surviving
          entity in any merger or consolidation, each outstanding Option thereafter
          shall
          pertain to and apply to the securities to which a holder of shares of Stock
          equal to the shares subject to the Option would have been entitled by reason
          of
          such merger or consolidation.

        

        In
          the
          event of a change in the Stock of the Company as presently constituted,
          which is
          limited to a change of all of its authorized shares without par value into
          the
          same number of shares with a par value, the shares resulting from any such
          change shall be deemed to be the Stock within the meaning of the
          Plan.

        

        To
          the
          extent that the foregoing adjustments relate to stock or securities of
          the
          Company, such adjustments shall be made by the Board, whose determination
          in
          that respect shall be final, binding and conclusive. Except as expressly
          provided in this Section 5(i), the Optionee shall have no rights by reason
          of
          any subdivision or consolidation of shares of stock of any class or the
          payment
          of any stock dividend or any other increase or decrease in the number of
          shares
          of stock of any class, and the number or price of shares of Stock subject
          to any
          Option shall not be affected by, and no adjustment shall be made by reason
          of,
          any dissolution, liquidation, merger, consolidation or sale of assets or
          capital
          stock, or any issue by the Company of shares of stock of any class or securities
          convertible into shares of stock of any class.

        

        The
          Grant
          of an Option pursuant to the Plan shall not affect in any way the right
          or power
          of the Company to make any adjustments, reclassifications, reorganizations
          or
          changes in its capital or business structure or to merge, consolidate,
          dissolve,
          or liquidate or to sell or transfer all or any part of its business or
          assets.

        

        
          	 	
                  (j)

                	
                  Rights
                    as a Shareholder: An Optionee shall have no rights as a shareholder
                    with
                    respect to any shares covered by an Option until the effective
                    date of the
                    issuance of the shares following exercise of such Option by Optionee.
                    No
                    adjustment shall be made for dividends (ordinary or extraordinary,
                    whether
                    in cash, securities or other property) or distributions or other
                    rights
                    for which the record date is prior to the date such stock certificate
                    is
                    issued, except as expressly provided in Section 5(i)
                    hereof.

                

        

        

        
          	 	
                  (k)

                	
                  Modification,
                    Acceleration, Extension, and Renewal of Options: Subject to the
                    terms and
                    conditions and within the limitations of the Plan, the Board
                    may modify an
                    Option, or, once an Option is exercisable, accelerate the rate
                    at which it
                    may be exercised, and may extend or renew outstanding Options
                    granted
                    under the Plan or accept the surrender of outstanding Options
                    (to the
                    extent not theretofore exercised) and authorize the granting
                    of new
                    Options in substitution for such Options, provided such action
                    is
                    permissible under Section 422 of the Code and applicable state
                    securities
                    rules. Notwithstanding the provisions of this Section 5(k), however,
                    no
                    modification of an Option shall, without the consent of the Optionee,
                    alter to the Optionee's detriment or impair any rights or obligations
                    under any Option theretofore granted under the
                    Plan.

                

        

        

        
          	 	
                  (l)

                	
                  Exercise
                    Before Exercise Date: At the discretion of the Board, the Option
                    may, but
                    need not, include a provision whereby the Optionee may elect
                    to exercise
                    all or any portion of the Option prior to the stated exercise
                    date of the
                    Option or any installment thereof. Any shares so purchased prior
                    to the
                    stated exercise date shall be subject to repurchase by the Company
                    upon
                    termination of Optionee's employment as contemplated by Section
                    5(n)
                    hereof prior to the exercise date stated in the Option and such
                    other
                    restrictions and conditions as the Board or Committee may deem
                    advisable.

                

        

        

        
          	 	
                  (m)

                	
                  Other
                    Provisions: The Option agreements authorized under the Plan shall
                    contain
                    such other provisions, including, without limitation, restrictions
                    upon
                    the exercise of the Options, as the Board or the Committee shall
                    deem
                    advisable. Shares shall not be issued pursuant to the exercise
                    of an
                    Option, if the exercise of such Option or the issuance of shares
                    thereunder would violate, in the opinion of legal counsel for
                    the Company,
                    the provisions of any applicable law or the rules or regulations
                    of any
                    applicable governmental or administrative agency or body, such
                    as the
                    Code, the Securities Act, the Exchange Act, applicable state
                    securities
                    rules, Delaware corporation law, and the rules promulgated under
                    the
                    foregoing or the rules and regulations of any exchange upon which
                    the
                    shares of the Company are listed. Without limiting the generality
                    of the
                    foregoing, the exercise of each Option shall be subject to the
                    condition
                    that if at any time the Company shall determine that (i) the
                    satisfaction
                    of withholding tax or other similar liabilities, or (ii) the
                    listing,
                    registration or qualification of any shares covered by such exercise
                    upon
                    any securities exchange or under any state or federal law, or
                    (iii) the
                    consent or approval of any regulatory body, or (iv) the perfection
                    of any
                    exemption from any such withholding, listing, registration, qualification,
                    consent or approval is necessary or desirable in connection with
                    such
                    exercise or the issuance of shares thereunder, then in any such
                    event,
                    such exercise shall not be effective unless such withholding,
                    listing
                    registration, qualification, consent, approval or exemption shall
                    have
                    been effected, obtained or perfected free of any conditions not
                    acceptable
                    to the Company.

                

        

        

        
          	 	
                  (n)

                	
                  Repurchase
                    Agreement: The Board may, in its discretion, require as a condition
                    to the
                    Grant of an Option hereunder, that an Optionee execute an agreement
                    with
                    the Company, in form and substance satisfactory to the Board
                    in its
                    discretion ("Repurchase Agreement"), (i) restricting the Optionee's
                    right
                    to transfer shares purchased under such Option without first
                    offering such
                    shares to the Company or another shareholder of the Company upon
                    the same
                    terms and conditions as provided therein; and (ii) providing
                    that upon
                    termination of Optionee's employment with the Company, for any
                    reason, the
                    Company (or another shareholder of the Company, as provided in
                    the
                    Repurchase Agreement) shall have the right at its discretion
                    (or the
                    discretion of such other shareholders) to purchase and/or redeem
                    all such
                    shares owned by the Optionee on the date of termination of his
                    or her
                    employment at a price equal to: (A) the fair value of such shares
                    as of
                    such date of termination; or (B) if such repurchase right lapses
                    at 20% of
                    the number of shares per year, the original purchase price of
                    such shares,
                    and upon terms of payment permissible under applicable state
                    securities
                    rules; provided that in the case of Options or Stock Awards granted
                    to
                    officers, directors, consultants or affiliates of the Company,
                    such
                    repurchase provisions may be subject to additional or greater
                    restrictions
                    as determined by the Board or
                    Committee.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	
                  6.

                	
                  Stock
                    Awards and Restricted Stock Purchase
                    Offers.

                

        

        

        
          	 	
                  (a)

                	
                  Types
                    of Grants.

                

        

        

        
          	 	
                  (i)

                	
                  Stock
                    Award. All or part of any Stock Award under the Plan may be subject
                    to
                    conditions established by the Board or the Committee, and set
                    forth in the
                    Stock Award Agreement, which may include, but are not limited
                    to,
                    continuous service with the Company, achievement of specific
                    business
                    objectives, increases in specified indices, attaining growth
                    rates and
                    other comparable measurements of Company performance. Such Awards
                    may be
                    based on Fair Market Value or other specified valuation. All
                    Stock Awards
                    will be made pursuant to the execution of a Stock Award Agreement
                    substantially in the form attached hereto as Exhibit
                    C.

                

        

        

        
          	 	
                  (ii)

                	
                  Restricted
                    Stock Purchase Offer. A Grant of a Restricted Stock Purchase
                    Offer under
                    the Plan shall be subject to such (i) vesting contingencies related
                    to the
                    Participant's continued association with the Company for a specified
                    time
                    and (ii) other specified conditions as the Board or Committee
                    shall
                    determine, in their sole discretion, consistent with the provisions
                    of the
                    Plan. All Restricted Stock Purchase Offers shall be made pursuant
                    to a
                    Restricted Stock Purchase Offer substantially in the form attached
                    hereto
                    as Exhibit D.

                

        

        

        
          	 	
                  (b)

                	
                  Conditions
                    and Restrictions. Shares of Stock which Participants may receive
                    as a
                    Stock Award under a Stock Award Agreement or Restricted Stock
                    Purchase
                    Offer under a Restricted Stock Purchase Offer may include such
                    restrictions as the Board or Committee, as applicable, shall
                    determine,
                    including restrictions on transfer, repurchase rights, right
                    of first
                    refusal, and forfeiture provisions. When transfer of Stock is
                    so
                    restricted or subject to forfeiture provisions it is referred
                    to as
                    "Restricted Stock". Further, with Board or Committee approval,
                    Stock
                    Awards or Restricted Stock Purchase Offers may be deferred, either
                    in the
                    form of installments or a future lump sum distribution. The Board
                    or
                    Committee may permit selected Participants to elect to defer
                    distributions
                    of Stock Awards or Restricted Stock Purchase Offers in accordance
                    with
                    procedures established by the Board or Committee to assure that
                    such
                    deferrals comply with applicable requirements of the Code including,
                    at
                    the choice of Participants, the capability to make further deferrals
                    for
                    distribution after retirement. Any deferred distribution, whether
                    elected
                    by the Participant or specified by the Stock Award Agreement,
                    Restricted
                    Stock Purchase Offers or by the Board or Committee, may require
                    the
                    payment be forfeited in accordance with the provisions of Section
                    6(c).
                    Dividends or dividend equivalent rights may be extended to and
                    made part
                    of any Stock Award or Restricted Stock Purchase Offers denominated
                    in
                    Stock or units of Stock, subject to such terms, conditions and
                    restrictions as the Board or Committee may
                    establish.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	 	
                  (c)

                	
                  Cancellation
                    and Rescission of Grants. Unless the Stock Award Agreement or
                    Restricted
                    Stock Purchase Offer specifies otherwise, the Board or Committee,
                    as
                    applicable, may cancel any unexpired, unpaid, or deferred Grants
                    at any
                    time if the Participant is not in compliance with all other applicable
                    provisions of the Stock Award Agreement or Restricted Stock Purchase
                    Offer, the Plan and with the following
                    conditions:

                

        

        

        
          	 	
                  (i)

                	
                  A
                    Participant shall not render services for any organization or
                    engage
                    directly or indirectly in any business which, in the judgment
                    of the chief
                    executive officer of the Company or other senior officer designated
                    by the
                    Board or Committee, is or becomes competitive with the Company,
                    or which
                    organization or business, or the rendering of services to such
                    organization or business, is or becomes otherwise prejudicial
                    to or in
                    conflict with the interests of the Company. For Participants
                    whose
                    employment has terminated, the judgment of the chief executive
                    officer
                    shall be based on the Participant's position and responsibilities
                    while
                    employed by the Company, the Participant's post-employment
                    responsibilities and position with the other organization or
                    business, the
                    extent of past, current and potential competition or conflict
                    between the
                    Company and the other organization or business, the effect on
                    the
                    Company's customers, suppliers and competitors and such other
                    considerations as are deemed relevant given the applicable facts
                    and
                    circumstances. A Participant who has retired shall be free, however,
                    to
                    purchase as an investment or otherwise, stock or other securities
                    of such
                    organization or business so long as they are listed upon a recognized
                    securities exchange or traded over-the-counter, and such investment
                    does
                    not represent a substantial investment to the Participant or
                    a greater
                    than ten percent (10%) equity interest in the organization or
                    business.

                

        

        

        
          	 	
                  (ii)

                	
                  A
                    Participant shall not, without prior written authorization from
                    the
                    Company, disclose to anyone outside the Company, or use in other
                    than the
                    Company's business, any confidential information or material,
                    as defined
                    in the Company's Proprietary Information and Invention Agreement
                    or
                    similar agreement regarding confidential information and intellectual
                    property, relating to the business of the Company, acquired by
                    the
                    Participant either during or after employment with the
                    Company.

                

        

        

        
          	 	
                  (iii)

                	
                  A
                    Participant, pursuant to the Company's Proprietary Information
                    and
                    Invention Agreement, shall disclose promptly and assign to the
                    Company all
                    right, title and interest in any invention or idea, patentable
                    or not,
                    made or conceived by the Participant during employment by the
                    Company,
                    relating in any manner to the actual or anticipated business,
                    research or
                    development work of the Company and shall do anything reasonably
                    necessary
                    to enable the Company to secure a patent where appropriate in
                    the United
                    States and in foreign countries.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	 	
                  (iv)

                	
                  Upon
                    exercise, payment or delivery pursuant to a Grant, the Participant
                    shall
                    certify on a form acceptable to the Committee that he or she
                    is in
                    compliance with the terms and conditions of the Plan. Failure
                    to comply
                    with all of the provisions of this Section 6(c) prior to, or
                    during the
                    six months after, any exercise, payment or delivery pursuant
                    to a Grant
                    shall cause such exercise, payment or delivery to be rescinded.
                    The
                    Company shall notify the Participant in writing of any such rescission
                    within two years after such exercise, payment or delivery. Within
                    ten days
                    after receiving such a notice from the Company, the Participant
                    shall pay
                    to the Company the amount of any gain realized or payment received
                    as a
                    result of the rescinded exercise, payment or delivery pursuant
                    to a Grant.
                    Such payment shall be made either in cash or by returning to
                    the Company
                    the number of shares of Stock that the Participant received in
                    connection
                    with the rescinded exercise, payment or
                    delivery.

                

        

        

        
          	 	
                  (d)

                	
                  Nonassignability

                

        

        

        
          	 	
                  (i)

                	
                  Except
                    pursuant to Section 6(e)(iii) and except as set forth in Section
                    6(d)(ii),
                    no Grant or any other benefit under the Plan shall be assignable
                    or
                    transferable, or payable to or exercisable by, anyone other than
                    the
                    Participant to whom it was granted.

                

        

        

        
          	 	
                  (ii)

                	
                  Where
                    a Participant terminates employment and retains a Grant pursuant
                    to
                    Section 6(e)(ii) in order to assume a position with a governmental,
                    charitable or educational institution, the Board or Committee,
                    in its
                    discretion and to the extent permitted by law, may authorize
                    a third party
                    (including but not limited to the trustee of a "blind" trust),
                    acceptable
                    to the applicable governmental or institutional authorities,
                    the
                    Participant and the Board or Committee, to act on behalf of the
                    Participant with regard to such
                    Awards.

                

        

        

        
          	 	
                  (e)

                	
                  Termination
                    of Employment. If the employment or service to the Company of
                    a
                    Participant terminates, other than pursuant to any of the following
                    provisions under this Section 6(e), all unexercised, deferred
                    and unpaid
                    Stock Awards or Restricted Stock Purchase Offers shall be cancelled
                    immediately, unless the Stock Award Agreement or Restricted Stock
                    Purchase
                    Offer provides otherwise:

                

        

        

        
          	 	
                  (i)

                	
                  Retirement
                    Under a Company Retirement Plan. When a Participant's employment
                    terminates as a result of retirement in accordance with the terms
                    of a
                    Company retirement plan, the Board or Committee may permit Stock
                    Awards or
                    Restricted Stock Purchase Offers to continue in effect beyond
                    the date of
                    retirement in accordance with the applicable Grant Agreement
                    and the
                    exercisability and vesting of any such Grants may be
                    accelerated.

                

        

        

        
          	 	
                  (ii)

                	
                  Rights
                    in the Best Interests of the Company. When a Participant resigns
                    from the
                    Company and, in the judgment of the Board or Committee, the acceleration
                    and/or continuation of outstanding Stock Awards or Restricted
                    Stock
                    Purchase Offers would be in the best interests of the Company,
                    the Board
                    or Committee may (i) authorize, where appropriate, the acceleration
                    and/or
                    continuation of all or any part of Grants issued prior to such
                    termination
                    and (ii) permit the exercise, vesting and payment of such Grants
                    for such
                    period as may be set forth in the applicable Grant Agreement,
                    subject to
                    earlier cancellation pursuant to Section 9 or at such time as
                    the Board or
                    Committee shall deem the continuation of all or any part of the
                    Participant's Grants are not in the Company's best
                    interest.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	 	
                  (iii)

                	
                  Death
                    or Disability of a Participant.

                

        

        

        
          	 	
                  (1)

                	
                  In
                    the event of a Participant's death, the Participant's estate
                    or
                    beneficiaries shall have a period up to the expiration date specified
                    in
                    the Grant Agreement within which to receive or exercise any outstanding
                    Grant held by the Participant under such terms as may be specified
                    in the
                    applicable Grant Agreement. Rights to any such outstanding Grants
                    shall
                    pass by will or the laws of descent and distribution in the following
                    order: (a) to beneficiaries so designated by the Participant;
                    if none,
                    then (b) to a legal representative of the Participant; if none,
                    then (c)
                    to the persons entitled thereto as determined by a court of competent
                    jurisdiction. Grants so passing shall be made at such times and
                    in such
                    manner as if the Participant were
                    living.

                

        

        

        
          	 	
                  (2)

                	
                  In
                    the event a Participant is deemed by the Board or Committee to
                    be unable
                    to perform his or her usual duties by reason of mental disorder
                    or medical
                    condition which does not result from facts which would be grounds
                    for
                    termination for cause, Grants and rights to any such Grants may
                    be paid to
                    or exercised by the Participant, if legally competent, or a committee
                    or
                    other legally designated guardian or representative if the Participant
                    is
                    legally incompetent by virtue of such
                    disability.

                

        

        

        
          	 	
                  (3)

                	
                  After
                    the death or disability of a Participant, the Board or Committee
                    may in
                    its sole discretion at any time (1) terminate restrictions in
                    Grant
                    Agreements; (2) accelerate any or all installments and rights;
                    and (3)
                    instruct the Company to pay the total of any accelerated payments
                    in a
                    lump sum to the Participant, the Participant's estate, beneficiaries
                    or
                    representative; notwithstanding that, in the absence of such
                    termination
                    of restrictions or acceleration of payments, any or all of the
                    payments
                    due under the Grant might ultimately have become payable to other
                    beneficiaries.

                

        

        

        
          	 	
                  (4)

                	
                  In
                    the event of uncertainty as to interpretation of or controversies
                    concerning this Section 6, the determinations of the Board or
                    Committee,
                    as applicable, shall be binding and
                    conclusive.

                

        

        

        
          	
                  7.

                	
                  Investment
                    Intent. All Grants under the Plan are intended to be exempt from
                    registration under the Securities Act provided by Rule 701 thereunder.
                    Unless and until the granting of Options or sale and issuance
                    of Stock
                    subject to the Plan are registered under the Securities Act or
                    shall be
                    exempt pursuant to the rules promulgated thereunder, each Grant
                    under the
                    Plan shall provide that the purchases or other acquisitions of
                    Stock
                    thereunder shall be for investment purposes and not with a view
                    to, or for
                    resale in connection with, any distribution thereof. Further,
                    unless the
                    issuance and sale of the Stock have been registered under the
                    Securities
                    Act, each Grant shall provide that no shares shall be purchased
                    upon the
                    exercise of the rights under such Grant unless and until (i)
                    all then
                    applicable requirements of state and federal laws and regulatory
                    agencies
                    shall have been fully complied with to the satisfaction of the
                    Company and
                    its counsel, and (ii) if requested to do so by the Company, the
                    person
                    exercising the rights under the Grant shall (i) give written
                    assurances as
                    to knowledge and experience of such person (or a representative
                    employed
                    by such person) in financial and business matters and the ability
                    of such
                    person (or representative) to evaluate the merits and risks of
                    exercising
                    the Option, and (ii) execute and deliver to the Company a letter
                    of
                    investment intent and/or such other form related to applicable
                    exemptions
                    from registration, all in such form and substance as the Company
                    may
                    require. If shares are issued upon exercise of any rights under
                    a Grant
                    without registration under the Securities Act, subsequent registration
                    of
                    such shares shall relieve the purchaser thereof of any investment
                    restrictions or representations made upon the exercise of such
                    rights.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	
                  8.

                	
                  Amendment,
                    Modification, Suspension or Discontinuance of the Plan. The Board
                    may,
                    insofar as permitted by law, from time to time, with respect
                    to any shares
                    at the time not subject to outstanding Grants, suspend or terminate
                    the
                    Plan or revise or amend it in any respect whatsoever, except
                    that without
                    the approval of the shareholders of the Company, no such revision
                    or
                    amendment shall (i) increase the number of shares subject to
                    the Plan,
                    (ii) decrease the price at which Grants may be granted, (iii)
                    materially
                    increase the benefits to Participants, or (iv) change the class
                    of persons
                    eligible to receive Grants under the Plan; provided, however,
                    no such
                    action shall alter or impair the rights and obligations under
                    any Option,
                    or Stock Award, or Restricted Stock Purchase Offer outstanding
                    as of the
                    date thereof without the written consent of the Participant thereunder.
                    No
                    Grant may be issued while the Plan is suspended or after it is
                    terminated,
                    but the rights and obligations under any Grant issued while the
                    Plan is in
                    effect shall not be impaired by suspension or termination of
                    the
                    Plan.

                

        

        

        In
          the
          event of any change in the outstanding Stock by reason of a stock split,
          stock
          dividend, combination or reclassification of shares, recapitalization,
          merger,
          or similar event, the Board or the Committee may adjust proportionally
          (a) the
          number of shares of Stock (i) reserved under the Plan, (ii) available for
          Incentive Stock Options and Nonstatutory Options and (iii) covered by
          outstanding Stock Awards or Restricted Stock Purchase Offers; (b) the Stock
          prices related to outstanding Grants; and (c) the appropriate Fair Market
          Value
          and other price determinations for such Grants. In the event of any other
          change
          affecting the Stock or any distribution (other than normal cash dividends)
          to
          holders of Stock, such adjustments as may be deemed equitable by the Board
          or
          the Committee, including adjustments to avoid fractional shares, shall
          be made
          to give proper effect to such event. In the event of a corporate merger,
          consolidation, acquisition of property or stock, separation, reorganization
          or
          liquidation, the Board or the Committee shall be authorized to issue or
          assume
          stock options, whether or not in a transaction to which Section 424(a)
          of the
          Code applies, and other Grants by means of substitution of new Grant Agreements
          for previously issued Grants or an assumption of previously issued
          Grants.

        

        
          	
                  9.

                	
                  Tax
                    Withholding. The Company shall have the right to deduct applicable
                    taxes
                    from any Grant payment and withhold, at the time of delivery
                    or exercise
                    of Options, Stock Awards or Restricted Stock Purchase Offers
                    or vesting of
                    shares under such Grants, an appropriate number of shares for
                    payment of
                    taxes required by law or to take such other action as may be
                    necessary in
                    the opinion of the Company to satisfy all obligations for withholding
                    of
                    such taxes. If Stock is used to satisfy tax withholding, such
                    stock shall
                    be valued based on the Fair Market Value when the tax withholding
                    is
                    required to be made.

                

        

        

        
          	
                  10.

                	
                  Availability
                    of Information. During the term of the Plan and any additional
                    period
                    during which a Grant granted pursuant to the Plan shall be exercisable,
                    the Company shall make available, not later than one hundred
                    and twenty
                    (120) days following the close of each of its fiscal years, such
                    financial
                    and other information regarding the Company as is required by
                    the bylaws
                    of the Company and applicable law to be furnished in an annual
                    report to
                    the shareholders of the Company.

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          	
                  11.

                	
                  Notice.
                    Any written notice to the Company required by any of the provisions
                    of the
                    Plan shall be addressed to the chief personnel officer or to
                    the chief
                    executive officer of the Company, and shall become effective
                    when it is
                    received by the office of the chief personnel officer or the
                    chief
                    executive officer.

                

        

        

        
          	
                  12.

                	
                  Indemnification
                    of Board. In addition to such other rights or indemnifications
                    as they may
                    have as directors or otherwise, and to the extent allowed by
                    applicable
                    law, the members of the Board and the Committee shall be indemnified
                    by
                    the Company against the reasonable expenses, including attorneys'
                    fees,
                    actually and necessarily incurred in connection with the defense
                    of any
                    claim, action, suit or proceeding, or in connection with any
                    appeal
                    thereof, to which they or any of them may be a party by reason
                    of any
                    action taken, or failure to act, under or in connection with
                    the Plan or
                    any Grant granted thereunder, and against all amounts paid by
                    them in
                    settlement thereof (provided such settlement is approved by independent
                    legal counsel selected by the Company) or paid by them in satisfaction
                    of
                    a judgment in any such claim, action, suit or proceeding, except
                    in any
                    case in relation to matters as to which it shall be adjudged
                    in such
                    claim, action, suit or proceeding that such Board or Committee
                    member is
                    liable for negligence or misconduct in the performance of his
                    or her
                    duties; provided that within sixty (60) days after institution
                    of any such
                    action, suit or Board proceeding the member involved shall offer
                    the
                    Company, in writing, the opportunity, at its own expense, to
                    handle and
                    defend the same.

                

        

        

        
          	
                  13.

                	
                  Governing
                    Law. The Plan and all determinations made and actions taken pursuant
                    hereto, to the extent not otherwise governed by the Code or the
                    securities
                    laws of the United States, shall be governed by the law of the
                    State of
                    Delaware and construed accordingly.

                

        

        

        
          	
                  14.

                	
                  Effective
                    and Termination Dates. The Plan shall become effective on the
                    date it is
                    approved by the holders of a majority of the shares of Stock
                    then
                    outstanding. The Plan shall terminate ten years later, subject
                    to earlier
                    termination by the Board pursuant to Section
                    8.

                

        

        

        The
          foregoing 2004 Incentive Stock Plan (consisting of 14 pages,including this
          page)
          was duly adopted and approved by the Board of Directors on March 23, 2004
          AND,
          AS AMENDED, ON APRIL 29, 2005.

        

        
          	 	 	 
	 	EUROWEB
                  INTERNATIONAL CORP., 
	 	a
                  Delaware corporation 
	 
 	 
 	 
 
	
                	By:  	
                
	
                   

                	
                  
                    
Csaba
                    Toro 

                
	
                   Its:
                     

                	Chief
                  Executive Officer

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