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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As filed
with the Securities and Exchange Commission on October 17, 2008</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 360pt"></font>Registration No.
________________</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
STATES</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WASHINGTON,
D.C. 20549</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
S-8</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REGISTRATION
STATEMENT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNDER</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THE
SECURITIES ACT OF 1933</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><img src="navidec_logo.jpg" alt="Navidec Logo"></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">NAVIDEC FINANCIAL SERVICES,
INC.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(Name
of small business issuer in its charter)</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="27%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Colorado</font></div>
              </td>
              <td valign="top" width="21%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">13-4228144</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="27%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
      or Jurisdiction of Incorporation or Organization)</font></div>
              </td>
              <td valign="top" width="21%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(I.R.S.
      Employer Identification Number)</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="3" valign="top" width="74%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td colspan="3" valign="top" width="74%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2000
      South Colorado Boulevard, Suite 200</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Denver,
      Colorado&#160;&#160;80222</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="3" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Address
      of principal executive offices)</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="3" valign="top" width="74%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td colspan="3" valign="top" width="74%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(303)222-1000</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="3" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Issuer&#8217;s
      telephone number, Including Area
Code)</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Navidec
Financial Services, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
Stock Option Plan</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">______________________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Full
title of Plan)</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John R.
McKowen, President</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Navidec
Financial Services, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2000
South Colorado Boulevard, Suite 200</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Denver,
Colorado 80222</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(303)222-1000</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name,
address and telephone number of agent for service)</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">COPIES OF
ALL COMMUNICATIONS TO:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
A. Littman</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attorney
at Law</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7609
Ralston Road</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Arvada,
CO&#160;80002</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tel:&#160;&#160;303-422-8127
/ Fax 303-431-1567</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.&#160;&#160;See definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated
filer&#8221; and &#8220;smaller reporting company&#8221; in Rule 12b-2 of the Exchange Act. (Check
One).</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="37%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Large
      accelerated filer</font></div>
              </td>
              <td valign="top" width="8%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">[___]</font></div>
              </td>
              <td valign="top" width="4%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="21%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Accelerated
      filer</font></div>
              </td>
              <td valign="top" width="10%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">[___]</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="37%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Non-accelerated
      filer</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Do
      not check if a smaller reporting company)</font></div>
              </td>
              <td valign="top" width="8%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">[___]</font></div>
              </td>
              <td valign="top" width="4%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="21%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Smaller
      reporting company</font></div>
              </td>
              <td valign="top" width="10%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">[_X_]</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CALCULATION
OF REGISTRATION FEE</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title
      of Each Class of Securities To Be Registered</font></div>
              </td>
              <td valign="top" width="13%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      To Be Registered</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      Maximum Offering Price Per Unit</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      Maximum Aggregate Offering Price<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">(1)</font></font></div>
              </td>
              <td valign="top" width="12%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      of Registration Fee</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common
      Stock</font></div>
              </td>
              <td valign="top" width="13%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">400,000</font></div>
              </td>
              <td valign="top" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$.91</font></div>
              </td>
              <td valign="top" width="19%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$364,000.00</font></div>
              </td>
              <td valign="top" width="12%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$14.31</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
Estimated pursuant to Rule 457(c) under the Securities&#160;&#160;Act, solely
for the purpose of calculating the registration fee, based on the average of the
bid and asked prices of the Company's common stock as reported within five
business days prior to the date of this filing.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
I</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 1.
PLAN INFORMATION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
document or documents&#160;&#160;containing
the&#160;&#160;information&#160;&#160;specified in Part I are not required to be
filed with the&#160;&#160;Securities and
Exchange&#160;&#160;Commission&#160;&#160;(the "Commission")&#160;&#160;as part
of
this&#160;&#160;Form&#160;&#160;S-8&#160;&#160;Registration&#160;&#160;Statement,&#160;&#160;but
will be provided as may be required under Rule 428(b)(1) of the Securities Act
of 1933.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Individual&#160;&#160;agreements
with the&#160;&#160;Employees&#160;&#160;which provide for the payment
for&#160;&#160;services&#160;&#160;rendered in shares of the
common&#160;&#160;stock of the Company, in lieu of cash,
have&#160;&#160;been&#160;&#160;attached&#160;&#160;to
the&#160;&#160;Registration&#160;&#160;Statement&#160;&#160;as&#160;&#160;Exhibits.&#160;&#160;These
documents&#160;&#160;and
the&#160;&#160;documents&#160;&#160;incorporated&#160;&#160;by&#160;&#160;reference&#160;&#160;in
this&#160;&#160;Registration
Statement&#160;&#160;pursuant&#160;&#160;to&#160;&#160;Item 3 of Part II of
this&#160;&#160;Form&#160;&#160;S-8,&#160;&#160;taken&#160;&#160;together,
constitute&#160;&#160;a prospectus that meets
the&#160;&#160;requirements&#160;&#160;of Section&#160;&#160;10(a) of the
Securities Act.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;General
Plan Information</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;&#160;Navidec
Financial Services, Inc. 2005 Stock Option Plan</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;&#160;
Nature and purpose of the Plan is to provide stock options and stock
compensation to employees and consultants of the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;&#160;The
Plan is not subject to Employee Retirement Income Security Act of
1974.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">4,&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional&#160;&#160;information&#160;&#160;can
be obtained by contacting:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John R.
McKowen</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
and Director</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Navidec
Financial Services, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2000
South Colorado Blvd., Suite 200</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Denver,
Colorado&#160;&#160;80222</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(303)222-1000</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Plan
does not have a Plan Administrator and the Plan does not
invest.</font><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Securities
to be Offered</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
Registration Statement on Form S-8 registers for resale 400,000 shares of common
stock, $0.01 par value per share (&#8220;Common Stock&#8221;), of Navidec Financial
Services, Inc. (the &#8220;Company&#8221;).</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">
            <tr valign="top">
              <td align="right" style="WIDTH: 54pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:
      Common Stock</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font>Amount: 200,000 shares granted for
services rendered by former Chief Financial Officer and Chief Operating Officer,
Robert Grizzle.&#160;&#160;Pursuant to an Employment Agreement, Mr. Grizzle was
granted an option to purchase 200,000 shares.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font>Amount 200,000 shares issued for
services rendered by former Chief Financial Officer and Chief Operating Officer,
Robert Grizzle.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GRAND
TOTAL &#8211; 400,000 shares: 200,000 shares to be offered which have been granted
under the Navidec Financial Services, Inc. 2005 Stock Option Plan and 200,000
shares issued for services rendered.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">2005 Stock Option
Plan</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount:
200,000 shares to be offered pursuant to the Plan, of which, the Company&#8217;s Board
of Directors has approved grants of&#160;&#160;one option to purchase 200,000
shares, which have been exercised,&#160;&#160;to Directors/Officers, Consultants
and Employees of the Company to date.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="28%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">Name</font></font></div>
              </td>
              <td valign="top" width="2%" style="TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="11%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">
                <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Number
      of Shares <font style="DISPLAY: inline">Granted</font></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Robert
      Grizzle</font></div>
              </td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">200,000</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
stock is registered under Section 12g of the Exchange Act.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Employees
Who May Participate in the Plan</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
employees to Company may participate while employed with the Company and/or any
subsidiaries of the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">d.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Purchase
of Securities Pursuant to the Plan and Payment for Securities
Offered</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Participation
      is allowed in the 2005 fiscal year at the market price per share, in
      amounts to be set by the Board of
Directors.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payment
      for the securities purchased may only be in cash or through
      services.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employees
      are not required to contribute to the
Plan.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employees
      and the registrant are not required to contribute to the
    Plan.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reports
      are not made to employees participating in the Plan, since the Plan does
      not hold assets for employees&#8217;
accounts.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
      will not be purchased for the Plan in either the open market or through
      private transactions.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">e.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Resale
Restrictions</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There are
no resale&#160;&#160;restrictions on plan participants, except in the event the
participant is
an&#160;&#160;officer,&#160;&#160;director&#160;&#160;or&#160;&#160;affiliate,&#160;&#160;or
in the event&#160;&#160;that the Plan&#160;&#160;contains&#160;&#160;a
repurchase&#160;&#160;right of issuer,&#160;&#160;for any stock, or
options,&#160;&#160;as a pre-condition&#160;&#160;of resale.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">f.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Tax
Effects of Plan Participation</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Participants
will be taxed upon any shares issued for services provided or for awards.
Participants will not be taxable on stock options issued to employees at the
market price on date of grant.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">g.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Investment
of Funds</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No assets
are held under the Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">h.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Withdrawal
from the Plan; Assignment of Interest</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;&#160;Employees
may refuse to accept compensation or options.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">2. No assignment of an interest in the Plan is possible, however,
stock or options received under the Plan may be assigned, subject to the terms
of the Plan, including the Right to Repurchase as defined therein.<br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;&#160;Not
applicable.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">i.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Forfeitures
and Penalties</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except&#160;&#160;as&#160;&#160;otherwise&#160;&#160;&#160;determined&#160;&#160;by&#160;&#160;the&#160;&#160;Plan
Administrator,&#160;&#160;&#160;at&#160;&#160;the&#160;&#160;time&#160;&#160;of&#160;&#160;the&#160;&#160;Award,&#160;&#160;&#160;upon&#160;&#160;&#160;termination&#160;&#160;of&#160;&#160;a&#160;&#160;Participant's
continuous service during the applicable restriction period,
the&#160;&#160;Participant's&#160;&#160;Restricted&#160;&#160;Stock,&#160;&#160;that
is at&#160;&#160;that&#160;&#160;time&#160;&#160;subject&#160;&#160;to
restrictions&#160;&#160;shall be forfeited and&#160;&#160;reacquired by the
Company;&#160;&#160;provided that the Plan&#160;&#160;Administrator may
provide,&#160;&#160;by rule or regulation or in any
Award&#160;&#160;&#160;agreement,&#160;&#160;&#160;or&#160;&#160;may&#160;&#160;determine&#160;&#160;in&#160;&#160;any&#160;&#160;individual&#160;&#160;&#160;case,&#160;&#160;that
restrictions or forfeiture&#160;&#160;conditions&#160;&#160;relating to
Restricted Stock shall be waived in whole or in part in the event of
terminations&#160;&#160;resulting from specified causes,&#160;&#160;and the
Plan&#160;&#160;Administrator may in other cases waive in whole or in part the
forfeiture of Restricted Stock.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">j.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Charges
and Deductions and Liens Therefore</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
applicable.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
2.&#160;&#160;&#160;REGISTRANT INFORMATION AND EMPLOYEE PLAN ANNUAL
INFORMATION.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
document(s)&#160;&#160;containing the information specified in Part I of Form
S-8 will be sent or given to participants as specified by Rule 428(b)(1)
promulgated
by&#160;&#160;the&#160;&#160;Securities&#160;&#160;and&#160;&#160;Exchange&#160;&#160;&#160;Commission&#160;&#160;(the&#160;&#160;"Commission")&#160;&#160;under&#160;&#160;the
Securities Act of 1933
(the&#160;&#160;"Securities&#160;&#160;Act").&#160;&#160;Such document(s) are
not being filed with the Commission, but constitute (along with the documents
incorporated by&#160;&#160;reference&#160;&#160;into
the&#160;&#160;Registration&#160;&#160;Statement&#160;&#160;pursuant&#160;&#160;to
Item 3 of Part II
hereof)&#160;&#160;a&#160;&#160;prospectus&#160;&#160;that&#160;&#160;meets
the&#160;&#160;requirements&#160;&#160;of&#160;&#160;Section&#160;&#160;10(a) of
the Securities Act.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
II</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 3.
INCORPORATION OF DOCUMENTS BY REFERENCE.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
following&#160;&#160;documents&#160;&#160;previously
or&#160;&#160;concurrently&#160;&#160;filed by the Company with the Commission
are hereby&#160;&#160;incorporated by reference into this Registration
Statement:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a) The
Annual Report on Form 10-KSB, as amended, of Navidec Financial Services, Inc.
for the fiscal year ended December 31, 2007 filed on April 28, 2008
under&#160;&#160;Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
as amended.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;All&#160;&#160;reports&#160;&#160;filed&#160;&#160;by
the&#160;&#160;Company&#160;&#160;pursuant&#160;&#160;to&#160;&#160;Section&#160;&#160;13
of the Securities&#160;&#160;Exchange Act of 1934, as amended (the
"Exchange&#160;&#160;Act"),&#160;&#160;since December 31, 2007.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;The&#160;&#160;description&#160;&#160;of&#160;&#160;the&#160;&#160;common&#160;&#160;shares&#160;&#160;issued&#160;&#160;by
the&#160;&#160;Company&#160;&#160;in
Registration&#160;&#160;Statement&#160;&#160;#000-51139 and
any&#160;&#160;amendment&#160;&#160;or report filed for the purpose of updating
such description under Registration Statement #000-51139.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All of
the above documents and documents&#160;&#160;subsequently filed by the Company
with
the&#160;&#160;Commission&#160;&#160;pursuant&#160;&#160;to&#160;&#160;Sections&#160;&#160;13(a),&#160;&#160;13(c),&#160;&#160;14
or 15(d) of the Exchange Act, prior to the filing of a
post-effective&#160;&#160;amendment which indicates that
all&#160;&#160;securities&#160;&#160;offered&#160;&#160;hereby&#160;&#160;have
been sold or which&#160;&#160;deregisters&#160;&#160;all securities then
remaining unsold, shall be deemed incorporated by reference into this Form
S-8&#160;&#160;Registration&#160;&#160;Statement and to be a part thereof from
the date of
the&#160;&#160;filing&#160;&#160;of&#160;&#160;such&#160;&#160;documents.&#160;&#160;Any&#160;&#160;statement&#160;&#160;contained&#160;&#160;in&#160;&#160;the&#160;&#160;documents
incorporated, or deemed to be incorporated, by reference herein or therein shall
be&#160;&#160;deemed&#160;&#160;to&#160;&#160;be&#160;&#160;modified&#160;&#160;or&#160;&#160;superseded&#160;&#160;for&#160;&#160;purposes&#160;&#160;of&#160;&#160;this&#160;&#160;Form&#160;&#160;S-8
Registration&#160;&#160;Statement&#160;&#160;to
the&#160;&#160;extent&#160;&#160;that
a&#160;&#160;statement&#160;&#160;contained&#160;&#160;herein or therein or in
any other&#160;&#160;subsequently filed document which also is, or is deemed to
be,&#160;&#160;incorporated by reference&#160;&#160;herein or therein modifies
or supersedes such statement.&#160;&#160;Any such statement so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Form S-8 Registration Statement.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
documents incorporated by reference herein will be made available to all
participants without charge, upon written or oral request.&#160;&#160;Other
documents required to be delivered to participants pursuant to Rule
428(b)(1)&#160;&#160;under the Securities Act of 1933 are also
available&#160;&#160;without charge,&#160;&#160;upon written or oral request.
All requests for documents shall be directed to:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John R.
McKowen, President</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Navidec
Financial Services, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2000
South Colorado Boulevard, Suite 200</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Denver,
CO&#160;&#160;80222</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(303)222-1000</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 4.
DESCRIPTION OF SECURITIES</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The&#160;&#160;description&#160;&#160;of&#160;&#160;the&#160;&#160;common&#160;&#160;shares&#160;&#160;issued&#160;&#160;by&#160;&#160;the&#160;&#160;Company&#160;&#160;in
its Registration&#160;&#160;Statement&#160;&#160;#000-51139,&#160;&#160;and
any&#160;&#160;amendment or report filed for the purpose of updating such
description under Registration Statement #000-51139.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 5.
INTERESTS OF NAMED EXPERTS AND COUNSEL</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
validity of the securities being registered hereunder will be passed on for the
Company by Michael A. Littman, Attorney, of Arvada, Colorado. He is an
independent securities attorney.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 6.
INDEMNIFICATION OF DIRECTORS AND OFFICERS</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Colorado Revised Statutes provide&#160;&#160;that
a&#160;&#160;corporation&#160;&#160;may indemnify&#160;&#160;any person who was
or is a party or is&#160;&#160;threatened to be made a party to
any&#160;&#160;threatened,&#160;&#160;pending or completed&#160;&#160;action or
proceeding,&#160;&#160;whether civil, criminal,&#160;&#160;administrative or
investigative,&#160;&#160;by reason of the fact that he is or was a
director,&#160;&#160;officer,&#160;&#160;employee or agent of the Company or is
or was serving at our request in such capacity in another corporation or
business&#160;&#160;association, against expenses (including attorneys' fees),
judgments,&#160;&#160;fines and amounts paid in settlement&#160;&#160;actually
and reasonably&#160;&#160;incurred by him in connection&#160;&#160;with such
action,&#160;&#160;suit or&#160;&#160;proceeding&#160;&#160;if
he&#160;&#160;acted&#160;&#160;in good&#160;&#160;faith&#160;&#160;and in
a&#160;&#160;manner&#160;&#160;he reasonably believed to be in or not opposed to
the best interests of the Company and, with respect to any criminal action or
proceeding,&#160;&#160;had no reasonable cause to believe his conduct was
unlawful.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company,&#160;&#160;pursuant to its bylaws, will provide indemnification with
its directors and executive&#160;&#160;officers that provide the
maximum&#160;&#160;indemnity allowed to directors and
executive&#160;&#160;officers by the Colorado
Revised&#160;&#160;Statutes,&#160;&#160;subject to certain&#160;&#160;exceptions
as well as
certain&#160;&#160;additional&#160;&#160;procedural&#160;&#160;protections.&#160;&#160;In
addition,&#160;&#160;the indemnification&#160;&#160;provides generally that the
Company will advance
expenses&#160;&#160;incurred&#160;&#160;by&#160;&#160;directors&#160;&#160;and&#160;&#160;executives&#160;&#160;officers&#160;&#160;in
any&#160;&#160;action&#160;&#160;or proceeding&#160;&#160;as to
which&#160;&#160;they may
be&#160;&#160;entitled&#160;&#160;to&#160;&#160;indemnification,&#160;&#160;subject
to certain exceptions.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
indemnification provisions in the bylaws may permit indemnification for
liabilities arising under the Securities Act of 1933. Insofar as indemnification
for&#160;&#160;liabilities&#160;&#160;arising under
the&#160;&#160;Securities&#160;&#160;Act of 1933 may be permitted to
directors,&#160;&#160;officer&#160;&#160;and&#160;&#160;controlling&#160;&#160;persons
of the&#160;&#160;Company&#160;&#160;pursuant&#160;&#160;to the foregoing
provisions,&#160;&#160;or otherwise,&#160;&#160;the Securities and Exchange
Commission has opined that such&#160;&#160;indemnification&#160;&#160;is
against&#160;&#160;public policy as expressed in the Securities Act and is,
therefore, unenforceable.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 7.
EXEMPTION FROM REGISTRATION CLAIMED</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
Applicable.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 8.
EXHIBITS</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See the
Exhibit Index following the signature page in this Registration Statement, which
Exhibit Index is incorporated herein by reference.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM 9.
UNDERTAKINGS</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a) The
undersigned Company hereby undertakes:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;To
file,&#160;&#160;during any period in which offers or sales are being made, a
post-effective amendment to the Registration Statement to: (i) include any
prospectus&#160;&#160;required by Section&#160;&#160;10(a)(3) of
the&#160;&#160;Securities&#160;&#160;Act; (ii) reflect in
the&#160;&#160;prospectus&#160;&#160;any facts or events arising after the
effective date of the Registration Statement which, individually or in the
aggregate,&#160;&#160;represent a fundamental&#160;&#160;change in the
information set
forth&#160;&#160;in&#160;&#160;the&#160;&#160;Registration&#160;&#160;&#160;Statement;&#160;&#160;&#160;and&#160;&#160;&#160;notwithstanding&#160;&#160;the
foregoing,&#160;&#160;any increase or decrease in volume
of&#160;&#160;securities&#160;&#160;offered (if the total dollar value of
securities offered would not exceed that which
was&#160;&#160;registered)&#160;&#160;and any deviation&#160;&#160;from the low
or high end of the estimated&#160;&#160;maximum offering range may be selected
in the form of a prospectus&#160;&#160;filed with
the&#160;&#160;Commission&#160;&#160;pursuant to Rule 424(b) if, in the
aggregate,&#160;&#160;the changes in volume and price represent no more than a
20 percent change in the maximum aggregate&#160;&#160;offering price set
forth&#160;&#160;in&#160;&#160;the&#160;&#160;&#160;"Calculation&#160;&#160;of&#160;&#160;&#160;Registration"&#160;&#160;&#160;table&#160;&#160;in&#160;&#160;the&#160;&#160;effective&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;registration&#160;&#160;statement;&#160;&#160;and
(iii)&#160;&#160;include any material&#160;&#160;information with respect to the
plan of distribution&#160;&#160;not previously&#160;&#160;disclosed
in&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
Registration&#160;&#160;Statement or any material change to such information in
the Registration&#160;&#160;Statement,&#160;&#160;provided however, that
provisions (i)&#160;&#160;and (ii) of this undertaking are inapplicable if the
information to be filed thereunder is contained in periodic reports filed by the
Company pursuant to the Exchange Act that
are&#160;&#160;incorporated&#160;&#160;by reference into the Registration
Statement;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;That,&#160;&#160;for&#160;&#160;the&#160;&#160;purpose&#160;&#160;of&#160;&#160;determining&#160;&#160;&#160;any&#160;&#160;liability&#160;&#160;under&#160;&#160;the&#160;&#160;Securities
Act, each such post effective&#160;&#160;amendment shall be deemed
to&#160;&#160;be a
new&#160;&#160;registration&#160;&#160;statement&#160;&#160;relating to the
securities&#160;&#160;offered therein&#160;&#160;and
the&#160;&#160;offering&#160;&#160;of such&#160;&#160;securities&#160;&#160;at
that time shall be deemed to be the initial bona fide offering thereof;
and</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(3)&#160;&#160;To
remove from registration by means
of&#160;&#160;post-effective&#160;&#160;amendment any
of&#160;&#160;the&#160;&#160;securities&#160;&#160;being&#160;&#160;registered&#160;&#160;which&#160;&#160;remain&#160;&#160;unsold&#160;&#160;at&#160;&#160;the
termination of the offering.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(b)
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted
to&#160;&#160;directors,&#160;&#160;officers,&#160;&#160;and&#160;&#160;controlling&#160;&#160;persons
of the Company pursuant to the foregoing provisions, or otherwise, the Company
has been advised that in the opinion of the
Commission&#160;&#160;such&#160;&#160;indemnification&#160;&#160;is against
public&#160;&#160;policy&#160;&#160;as&#160;&#160;expressed&#160;&#160;in&#160;&#160;the&#160;&#160;Securities&#160;&#160;&#160;Act&#160;&#160;and,&#160;&#160;is,&#160;&#160;&#160;therefore,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">unenforceable.&#160;&#160;In
the&#160;&#160;event&#160;&#160;that a
claim&#160;&#160;for&#160;&#160;indemnification&#160;&#160;against&#160;&#160;such
liabilities&#160;&#160;(other&#160;&#160;than&#160;&#160;director,&#160;&#160;&#160;officer&#160;&#160;or&#160;&#160;controlling&#160;&#160;person&#160;&#160;in&#160;&#160;the
successful&#160;&#160;defense of any&#160;&#160;action,&#160;&#160;suit
or&#160;&#160;proceeding)&#160;&#160;is&#160;&#160;asserted&#160;&#160;by such
director,&#160;&#160;officer or controlling person in connection with the
securities being registered,&#160;&#160;the
Company&#160;&#160;will,&#160;&#160;unless in the opinion of its counsel the
matter has been&#160;&#160;settled
by&#160;&#160;controlling&#160;&#160;precedent,&#160;&#160;submit to a court
of&#160;&#160;appropriate jurisdiction the question whether
such&#160;&#160;indemnification&#160;&#160;by it is against public</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">policy
as&#160;&#160;expressed&#160;&#160;in the&#160;&#160;Securities&#160;&#160;Act
and will be&#160;&#160;governed by the final adjudication of such
issue.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(c)
The Company hereby&#160;&#160;undertakes&#160;&#160;that,&#160;&#160;for
purposes of determining&#160;&#160;any liability under the
Securities&#160;&#160;Act, each filing of the Company's&#160;&#160;annual report
pursuant to Section 13(a) or 15(d) of the Exchange Act
(and,&#160;&#160;where&#160;&#160;applicable, each filing of an
employee&#160;&#160;benefit&#160;&#160;plan's&#160;&#160;annual&#160;&#160;report&#160;&#160;pursuant
to Section 15(d) of the Exchange&#160;&#160;Act) that
is&#160;&#160;incorporated&#160;&#160;by reference in&#160;&#160;Registration
Statement&#160;&#160;shall be deemed to be a
new&#160;&#160;Registration&#160;&#160;Statement&#160;&#160;relating to the
securities&#160;&#160;offered&#160;&#160;therein,&#160;&#160;and the offering of
such&#160;&#160;securities at that time shall be deemed to be the initial bona
fide offering thereof.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the&#160;&#160;requirements of the Securities Act of 1933, the registrant
certifies&#160;&#160;that it has&#160;&#160;reasonable&#160;&#160;grounds to
believe&#160;&#160;that it meets all of the
requirements&#160;&#160;for&#160;&#160;filing&#160;&#160;on Form S-8 and
has&#160;&#160;duly&#160;&#160;caused&#160;&#160;this&#160;&#160;registration
statement&#160;&#160;to be&#160;&#160;signed&#160;&#160;on
its&#160;&#160;behalf&#160;&#160;by&#160;&#160;the&#160;&#160;undersigned,&#160;&#160;thereunto&#160;&#160;duly
authorized, in the City of&#160;&#160;Denver, Colorado on October 15,
2008.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Navidec
Financial Services, Inc.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="top" width="46%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      John R. McKowen</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
      R. McKowen, President</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant&#160;&#160;to&#160;&#160;the&#160;&#160;&#160;requirements&#160;&#160;of&#160;&#160;the&#160;&#160;Securities&#160;&#160;Act&#160;&#160;of&#160;&#160;1933,&#160;&#160;this
Registration&#160;&#160;Statement&#160;&#160;has been signed below by
the&#160;&#160;following&#160;&#160;persons in the
capacities&#160;&#160;indicated on October 15, 2008.&#160;&#160;Each person
whose&#160;&#160;signature to the
Registration&#160;&#160;Statement&#160;&#160;appears&#160;&#160;below
hereby&#160;&#160;appoints&#160;&#160;Gregory A. Enders as such
person's&#160;&#160;attorney-in-fact&#160;&#160;with full&#160;&#160;power to
act&#160;&#160;alone,&#160;&#160;with full&#160;&#160;power of
substitution&#160;&#160;or re-substitution,&#160;&#160;for such person and in
such person's&#160;&#160;name, place and stead,&#160;&#160;in any and
all&#160;&#160;capacities&#160;&#160;to sign on
such&#160;&#160;person's&#160;&#160;behalf, individually&#160;&#160;and in
the&#160;&#160;capacities&#160;&#160;stated&#160;&#160;below,&#160;&#160;and
to&#160;&#160;file&#160;&#160;any&#160;&#160;and all amendments and
post-effective&#160;&#160;amendments to this Registration
Statement,&#160;&#160;which
amendment&#160;&#160;or&#160;&#160;&#160;amendments&#160;&#160;&#160;may&#160;&#160;make&#160;&#160;such&#160;&#160;changes&#160;&#160;and&#160;&#160;&#160;additions&#160;&#160;as&#160;&#160;such
attorney-in-fact may deem necessary or appropriate.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="top" width="46%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      John R. McKowen</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
      R. McKowen, President and Chairman of</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">the
      Board of Directors</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="46%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      Howard Farkas</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Howard
      L. Farkas, Director</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="46%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      Jolee Henry</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Jolee
      Henry, Director</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="46%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NAVIDEC
FINANCIAL SERVICES, INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
INDEX</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TO</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM S-8
REGISTRATION STATEMENT</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">EXHIBIT
NO.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;DESCRIPTION</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Opinion
of Michael A. Littman, Attorney at Law</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Exh101">10.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Navidec
Financial Services, Inc. 2005 Stock Option Plan</a></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#Exh231">23.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Consent
of Jaspers + Hall, PC</a></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Consent
of Michael A. Littman, Attorney at Law (as contained in Exhibit
5.1)</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
5.1</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
23.2</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent/Opinion
of Michael A. Littman, Esq.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
A. Littman</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attorney
at Law</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7609
Ralston Road</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Arvada,
CO&#160;80002</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tel:
303-422-8127</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fax:&#160;303-431-1567</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email:
malattyco@aol.com</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">October
16, 2008</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Navidec
Financial Services, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2000
South Colorado Boulevard, Suite 200</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Denver,
Colorado&#160;&#160;80222</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Re:&#160;&#160;&#160;&#160;&#160;Registration
Statement on Form S-8</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ladies
and Gentlemen:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I have
examined the Registration Statement on Form S-8 to be filed by you with the
Securities and Exchange Commission in connection with the registration under the
Securities Act of 1933, as amended, of 200,000 shares (the &#8220;Shares&#8221;) of your
Common Stock issued or issuable under the NAVIDEC FINANCIAL SERVICES,
INC.&#160;&#160;2005 STOCK OPTION PLAN (the "Plan") referred to therein and
200,000 shares of $0.01 par value common stock. As
your&#160;&#160;counsel&#160;&#160;in&#160;&#160;connection&#160;&#160;with&#160;&#160;this&#160;&#160;transaction,&#160;&#160;&#160;I&#160;&#160;have&#160;&#160;examined&#160;&#160;the
proceedings&#160;&#160;taken&#160;&#160;and&#160;&#160;proposed&#160;&#160;to
be&#160;&#160;taken&#160;&#160;by you in&#160;&#160;connection&#160;&#160;with
the issuance of the Shares.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It is my
opinion that the Shares, when issued and paid for in accordance with the terms
of the Plan, will be legally and validly issued, fully paid, and
nonassessable.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I&#160;&#160;further&#160;&#160;consent&#160;&#160;to
the&#160;&#160;use&#160;&#160;of&#160;&#160;this&#160;&#160;opinion&#160;&#160;as
an&#160;&#160;exhibit&#160;&#160;to the
Registration&#160;&#160;Statement,&#160;&#160;including the
prospectus&#160;&#160;constituting a part thereof, and any amendment
thereto.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 252pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sincerely,</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 288pt"></font>/s/Michael A. Littman</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 252pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">----------------------------</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 252pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
A. Littman, Esq.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Exh101">EXHIBIT 10.1</a></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Navidec
Financial Services, Inc. 2005 Stock Option Plan</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;NAVIDEC
FINANCIAL SERVICES, INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2005
STOCK OPTION PLAN</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
I</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ESTABLISHMENT
AND PURPOSE</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;1.1
Establishment. Navidec Financial Services, Inc., a Colorado
corporation</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(the&#160;&#160;"Company"),&#160;&#160;hereby&#160;&#160;establishes&#160;&#160;a
stock&#160;&#160;option plan for key&#160;&#160;employees,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">consultants&#160;&#160;and&#160;&#160;members&#160;&#160;of
the&#160;&#160;Board of&#160;&#160;Directors&#160;&#160;of
the&#160;&#160;Company&#160;&#160;or of a</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">subsidiary
of the Company,&#160;&#160;providing&#160;&#160;material&#160;&#160;services to
the Company,&#160;&#160;which</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shall be
known as the Navidec&#160;&#160;Financial&#160;&#160;Services&#160;&#160;2005
Stock&#160;&#160;Option Plan (the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Plan").&#160;&#160;The
Company shall enter into Option agreements with Optionees pursuant</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to the
Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;1.2&#160;&#160;Purpose.&#160;&#160;The
purpose of the Plan is to enhance&#160;&#160;shareholder&#160;&#160;value
by</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">attracting,&#160;&#160;retaining
and motivating key employees,&#160;&#160;consultants and members of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the Board
of&#160;&#160;Directors of the Company and of
any&#160;&#160;subsidiary&#160;&#160;of the Company by</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">providing&#160;&#160;them
with a means to acquire a proprietary&#160;&#160;interest in the
Company's</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">success.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
II</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ELIGIBILITY
AND PARTICIPATION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;All
current and former&#160;&#160;employees,&#160;&#160;consultants and members of
the Board of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Directors
of the Company (the&#160;&#160;"Board"),&#160;&#160;and of
any&#160;&#160;subsidiary of the Company,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">are&#160;&#160;eligible
to&#160;&#160;participate&#160;&#160;in the Plan and
receive&#160;&#160;Options&#160;&#160;under the Plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Optionees
under the Plan shall be selected by the Board, in its sole
discretion,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">from
among those current and
former&#160;&#160;employees,&#160;&#160;consultants&#160;&#160;and members of
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Board of
the Company, and of any subsidiary of the Company,&#160;&#160;who, in the
opinion</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
the&#160;&#160;Board,&#160;&#160;are or&#160;&#160;were&#160;&#160;in
a&#160;&#160;position&#160;&#160;to&#160;&#160;contribute&#160;&#160;materially&#160;&#160;to
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company's
continued growth and development and to its long-term success.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
III</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ADMINISTRATION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;3.1&#160;&#160;Administration.&#160;&#160;The
Board shall be responsible for&#160;&#160;administering the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(a)
The Board is authorized to interpret the Plan; to prescribe, amend,
and</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">rescind
rules and&#160;&#160;regulations&#160;&#160;relating to the Plan; to provide
for&#160;&#160;conditions</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and&#160;&#160;assurances&#160;&#160;deemed&#160;&#160;necessary
or advisable to protect the&#160;&#160;interests of the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
with respect to the Plan; and to make all other determinations
necessary</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or&#160;&#160;&#160;advisable&#160;&#160;&#160;for&#160;&#160;&#160;the&#160;&#160;&#160;administration&#160;&#160;&#160;of&#160;&#160;&#160;the&#160;&#160;&#160;Plan.&#160;&#160;&#160;Determinations,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">interpretations,
or other actions made or taken by the Board with respect to the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plan
and&#160;&#160;Options&#160;&#160;granted&#160;&#160;under&#160;&#160;the&#160;&#160;Plan&#160;&#160;shall
be&#160;&#160;final&#160;&#160;and&#160;&#160;binding&#160;&#160;and</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">conclusive
for all purposes and upon all persons.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(b)
At the&#160;&#160;discretion&#160;&#160;of
the&#160;&#160;Board&#160;&#160;the&#160;&#160;Plan may
be&#160;&#160;administered&#160;&#160;by a</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Committee&#160;&#160;of
two or
more&#160;&#160;non-employee&#160;&#160;Directors&#160;&#160;appointed&#160;&#160;by
the Board (the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Committee").&#160;&#160;The
members of the Committee may be Directors who are eligible to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">receive&#160;&#160;Options
under the Plan, but Options may be granted to such persons only</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by action
of the full Board and not by action of
the&#160;&#160;Committee.&#160;&#160;The&#160;&#160;Committee</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shall
have full power and authority,&#160;&#160;subject to the limitations of the Plan
and</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
limitations imposed by the Board, to construe, interpret and administer
the</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plan and
to make&#160;&#160;determinations&#160;&#160;which shall be
final,&#160;&#160;conclusive&#160;&#160;and binding</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">upon
all&#160;&#160;persons,&#160;&#160;including&#160;&#160;any
persons&#160;&#160;having any&#160;&#160;interests in any Options</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">which may
be granted&#160;&#160;under the
Plan,&#160;&#160;and,&#160;&#160;by&#160;&#160;resolution&#160;&#160;or&#160;&#160;resolutions&#160;&#160;to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
for the creation and issuance of any Option, to fix the terms upon
which</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and the
time or times at or within&#160;&#160;which,&#160;&#160;and the price or prices
at which any</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
may be purchased&#160;&#160;from the Company&#160;&#160;upon the exercise of an
Option.&#160;&#160;Such</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">terms,&#160;&#160;time
or times and price or prices shall,&#160;&#160;in every case, be set forth
or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporated
by reference in the instrument or instruments evidencing an Option,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and shall
be consistent with the provisions of the Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(c)&#160;&#160;Where
a&#160;&#160;Committee&#160;&#160;has been&#160;&#160;created&#160;&#160;by the
Board&#160;&#160;pursuant&#160;&#160;to this</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Article
III, references in the Plan to actions to be taken by the Board shall
be</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">deemed to
refer to the Committee as well, except where limited by the Plan or
by</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Board.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(d)
No member of the Board or the Committee&#160;&#160;shall be liable for any
action</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or&#160;&#160;determination&#160;&#160;made
in good&#160;&#160;faith&#160;&#160;with&#160;&#160;respect&#160;&#160;to the
Plan or any Option</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">granted
under it.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
IV</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;STOCK
SUBJECT TO THE PLAN</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;4.1
Number.&#160;&#160;The total number of shares of common stock of the Company
(the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Stock")&#160;&#160;hereby
made&#160;&#160;available&#160;&#160;and reserved for issuance&#160;&#160;under
the Plan upon</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">exercise
of Options shall be 5,000,000 shares. The aggregate number of shares
of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock&#160;&#160;available&#160;&#160;under
the Plan shall be subject to&#160;&#160;adjustment&#160;&#160;as provided
in</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
4.3.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;4.2
Unused&#160;&#160;Stock.&#160;&#160;If an Option shall&#160;&#160;expire or
terminate&#160;&#160;for any reason</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">without
having been exercised in full, or if an
"immaculate&#160;&#160;cashless&#160;&#160;exercise"</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(as&#160;&#160;described
in Section&#160;&#160;5.4)&#160;&#160;results in the issuance of a
reduced&#160;&#160;number of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
in&#160;&#160;satisfaction&#160;&#160;of an
option&#160;&#160;grant,&#160;&#160;the&#160;&#160;unpurchased&#160;&#160;shares
of Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">subject
thereto shall (unless the Plan shall
have&#160;&#160;terminated)&#160;&#160;become available</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for other
Options under the Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;4.3&#160;&#160;Adjustment&#160;&#160;in&#160;&#160;Capitalization.&#160;&#160;In
the&#160;&#160;event&#160;&#160;of any&#160;&#160;change&#160;&#160;in
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">outstanding&#160;&#160;shares
of Stock of the&#160;&#160;Company&#160;&#160;by reason of a
stock&#160;&#160;dividend&#160;&#160;or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">split,
recapitalization,&#160;&#160;reclassification, or other similar capital change,
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">aggregate&#160;&#160;number&#160;&#160;of&#160;&#160;shares&#160;&#160;of&#160;&#160;Stock&#160;&#160;set&#160;&#160;forth&#160;&#160;in&#160;&#160;Section&#160;&#160;4.1&#160;&#160;shall
be</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">appropriately
adjusted by the Board, whose determination shall be conclusive. In</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any such
case,&#160;&#160;the&#160;&#160;number and kind of shares of Stock that
are&#160;&#160;subject to any</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option
and the Option price per share shall be proportionately and
appropriately</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">adjusted&#160;&#160;without
any change in the&#160;&#160;aggregate&#160;&#160;Option price to be paid
therefor</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">upon
exercise of the Option.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
V</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;TERMS
OF STOCK OPTIONS</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;5.1
Grant of&#160;&#160;Options.&#160;&#160;Subject to
Section&#160;&#160;4.1,&#160;&#160;Options may be granted to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">current&#160;&#160;and&#160;&#160;former&#160;&#160;employees,&#160;&#160;consultants&#160;&#160;and&#160;&#160;members&#160;&#160;of
the Board of the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
and of any&#160;&#160;subsidiary&#160;&#160;of the Company at any time and from
time to time</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">as&#160;&#160;determined&#160;&#160;by
the&#160;&#160;Board.&#160;&#160;The
Board&#160;&#160;shall&#160;&#160;have&#160;&#160;complete&#160;&#160;discretion&#160;&#160;in</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">determining&#160;&#160;the
terms and&#160;&#160;conditions&#160;&#160;and&#160;&#160;number
of&#160;&#160;Options&#160;&#160;granted to each</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Optionee.&#160;&#160;In
making such&#160;&#160;determinations,&#160;&#160;the Board may take
into&#160;&#160;account the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">nature of
services&#160;&#160;rendered by such current and
former&#160;&#160;employees,&#160;&#160;consultants</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
members of the
Board,&#160;&#160;their&#160;&#160;present&#160;&#160;and&#160;&#160;potential&#160;&#160;contributions&#160;&#160;to
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company&#160;&#160;and
such&#160;&#160;other&#160;&#160;factors&#160;&#160;as the&#160;&#160;Board in
its&#160;&#160;discretion&#160;&#160;shall&#160;&#160;deem</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">relevant.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;5.2&#160;&#160;Option&#160;&#160;Agreement;&#160;&#160;Terms
and&#160;&#160;Conditions&#160;&#160;to
Apply&#160;&#160;Unless&#160;&#160;Otherwise</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Specified.
As determined by the Board on the date of grant, each Option shall
be</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">evidenced
by an option agreement (the "Option&#160;&#160;Agreement")&#160;&#160;that
specifies:&#160;&#160;the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option
price; the duration of the Option; the number of shares of Stock to
which</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Option applies; such vesting or exercisability&#160;&#160;restrictions which the
Board</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">may
impose;&#160;&#160;and any other terms or conditions&#160;&#160;which the Board
may impose.&#160;&#160;All</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">such
terms and conditions&#160;&#160;shall be determined by the Board at the time of
grant</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of the
Option.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(a)
If not&#160;&#160;otherwise&#160;&#160;specified&#160;&#160;by
the&#160;&#160;Board,&#160;&#160;the&#160;&#160;following&#160;&#160;terms
and</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">conditions
shall apply to Options granted under the Plan:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(i)
Term.&#160;&#160;The&#160;&#160;duration of the Option shall be for ten years
from the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;date
of grant.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(ii)&#160;&#160;Exercise&#160;&#160;of&#160;&#160;Option.&#160;&#160;If
an&#160;&#160;Option&#160;&#160;is&#160;&#160;subject&#160;&#160;to
a&#160;&#160;vesting</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;schedule,&#160;&#160;(A)&#160;&#160;an&#160;&#160;Option&#160;&#160;held&#160;&#160;by&#160;&#160;an&#160;&#160;Optionee&#160;&#160;who&#160;&#160;retires&#160;&#160;from</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;employment
with the Company after having both reached the age of sixty</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;and
completed&#160;&#160;twelve years of service with the Company shall
continue</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;to
vest in&#160;&#160;accordance&#160;&#160;with
the&#160;&#160;vesting&#160;&#160;schedule&#160;&#160;set&#160;&#160;forth in
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;applicable&#160;&#160;Option&#160;&#160;Agreement&#160;&#160;notwithstanding&#160;&#160;the
termination of the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Optionee's&#160;&#160;employment&#160;&#160;with
the Company,&#160;&#160;provided&#160;&#160;that prior to the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;exercise
of the Option such&#160;&#160;Optionee&#160;&#160;does not after
such&#160;&#160;retirement</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;become&#160;&#160;employed
on a full-time&#160;&#160;basis by a competitor&#160;&#160;of the
Company</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;prior&#160;&#160;to&#160;&#160;reaching&#160;&#160;age&#160;&#160;sixty-five,&#160;&#160;and&#160;&#160;(B)
an&#160;&#160;Option&#160;&#160;held&#160;&#160;by a</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;non-employee&#160;&#160;Director
of the Company who retires from the Board after</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;completing&#160;&#160;at
least five years of service to the Company shall become</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;fully
vested.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(iii)&#160;&#160;Termination.&#160;&#160;Each&#160;&#160;Option&#160;&#160;granted&#160;&#160;pursuant
to the Plan shall</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;expire
on the earliest to occur of:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(A)
The date set forth in such&#160;&#160;Option,&#160;&#160;not to
exceed&#160;&#160;ten years</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;from
the date of grant;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(B)
The third anniversary of the completion of the merger or sale</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;of&#160;&#160;substantially&#160;&#160;all
of the Stock or assets of the Company with</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;or
to another&#160;&#160;company in a&#160;&#160;transaction&#160;&#160;in which
the Company is</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;not
the&#160;&#160;survivor,&#160;&#160;except for the merger of
the&#160;&#160;Company&#160;&#160;into a</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;wholly-owned&#160;&#160;subsidiary
(and the Company shall not be considered</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
surviving&#160;&#160;corporation&#160;&#160;for purposes hereof if the Company
or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;any
of its&#160;&#160;subsidiaries is the survivor of a
reverse&#160;&#160;triangular</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;merger
and the
Company's&#160;&#160;shareholders&#160;&#160;immediately&#160;&#160;prior to
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;merger&#160;&#160;own
less&#160;&#160;than 50% of the&#160;&#160;value of
the&#160;&#160;Company's&#160;&#160;stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;immediately
after the merger); or</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(C)
The termination of the employment of an Optionee for cause by</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(iv)
Acceleration. An Option shall become fully vested and exercisable</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;irrespective&#160;&#160;of
its
other&#160;&#160;provisions&#160;&#160;(A)&#160;&#160;immediately&#160;&#160;prior
to the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;completion
of the merger or sale of substantially&#160;&#160;all of the stock
or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;assets
of the Company in a transaction in which the Company is not the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;survivor,&#160;&#160;except
for the merger of the&#160;&#160;Company&#160;&#160;into
a&#160;&#160;wholly-owned</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subsidiary&#160;&#160;(and
the Company&#160;&#160;shall not
be&#160;&#160;considered&#160;&#160;the&#160;&#160;surviving</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;corporation&#160;&#160;for&#160;&#160;purposes&#160;&#160;hereof&#160;&#160;if&#160;&#160;the&#160;&#160;Company&#160;&#160;or&#160;&#160;any&#160;&#160;of&#160;&#160;its</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subsidiaries&#160;&#160;is
the survivor of a reverse&#160;&#160;triangular&#160;&#160;merger and
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Company's&#160;&#160;shareholders&#160;&#160;immediately
prior to the merger own less than</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;50%
of the value of the Company's stock immediately after the merger);</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(B)
upon termination of the Optionee's&#160;&#160;employment with the Company
or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;a
subsidiary thereof because of death, disability or normal
retirement</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;upon&#160;&#160;reaching&#160;&#160;the
age of&#160;&#160;sixty-five;&#160;&#160;or (C) in the event&#160;&#160;that
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Optionee
is a non-employee member of the Company's Board of Directors,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;upon&#160;&#160;retirement&#160;&#160;from
the Company's Board of Directors after reaching</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
age of seventy.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(v)&#160;&#160;Transferability.&#160;&#160;In
addition to the Optionee,&#160;&#160;the Option may be</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;exercised,
to the extent exercisable by the Optionee, by the person or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;persons
to whom the Optionee's rights under the Option pass by will or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
laws of descent and distribution, by the spouse or the descendants</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;of
the&#160;&#160;Optionee or by trusts for such&#160;&#160;persons,&#160;&#160;to
whom or which the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Optionee
may have transferred the Option,&#160;&#160;or by
legal&#160;&#160;representative</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;of
any of the&#160;&#160;foregoing.&#160;&#160;Any
such&#160;&#160;transfer&#160;&#160;shall&#160;&#160;be made&#160;&#160;only
in</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;compliance&#160;&#160;with
the&#160;&#160;Securities&#160;&#160;Act
of&#160;&#160;1933,&#160;&#160;as&#160;&#160;amended,&#160;&#160;and
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;requirements
therefor as set forth by the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(b)
The Board shall be free to specify terms and conditions&#160;&#160;other than
and</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
addition to those set forth above, in its discretion.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(c)
All Option&#160;&#160;Agreements shall&#160;&#160;incorporate the provisions of
the Plan by</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">reference.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;5.3
Option&#160;&#160;Price.&#160;&#160;No
Option&#160;&#160;granted&#160;&#160;pursuant&#160;&#160;to the Plan shall have
an</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option&#160;&#160;price
that is less than the fair&#160;&#160;market&#160;&#160;value of Stock on the
date the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option is
granted,&#160;&#160;as determined by the Board.&#160;&#160;The Option exercise
price shall</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">be
subject to adjustment as provided in Section 4.3 above.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;5.4
Payment. Payment for all shares of Stock shall be made at the time
that</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
Option,&#160;&#160;or any
part&#160;&#160;thereof,&#160;&#160;is&#160;&#160;exercised,&#160;&#160;and no
shares shall be issued</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">until
full payment therefor has been made. Payment shall be made (i) in cash,
or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii) in
Stock, or, if acceptable to the Board, in some other form.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;5.5&#160;&#160;Repricing.&#160;&#160;An&#160;&#160;outstanding&#160;&#160;Option&#160;&#160;may
be&#160;&#160;repriced&#160;&#160;after the grant</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">thereof
to provide for a lower Option exercise price, whether through
adjustment</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or&#160;&#160;amendment&#160;&#160;to
the
Option&#160;&#160;exercise&#160;&#160;price,&#160;&#160;issuance&#160;&#160;of
an amended&#160;&#160;Option,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cancellation
of the Option and issuance of a replacement Option, or by any other</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">means
with substantially the same economic effect, with approval of the
Board.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
VI</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;WRITTEN
NOTICE, ISSUANCE OF STOCK</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;CERTIFICATES,
SHAREHOLDER PRIVILEGES</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;6.1
Written&#160;&#160;Notice.&#160;&#160;An Optionee&#160;&#160;wishing to exercise
an Option shall give</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">written
notice to the Company,&#160;&#160;in the form and manner&#160;&#160;prescribed
by the Board.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Full&#160;&#160;payment&#160;&#160;for
the shares of Stock&#160;&#160;acquired&#160;&#160;pursuant&#160;&#160;to
the&#160;&#160;Option&#160;&#160;must</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">accompany
the written notice.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;6.2&#160;&#160;Issuance&#160;&#160;of
Stock&#160;&#160;Certificates.&#160;&#160;As soon
as&#160;&#160;practicable&#160;&#160;after&#160;&#160;the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">receipt
of written notice and payment, the Company shall deliver to the
Optionee</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
certificate or certificates for the requisite number of shares of
Stock.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;6.3
Privileges of a Shareholder.&#160;&#160;An Optionee or any other
person&#160;&#160;entitled</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to&#160;&#160;exercise
an Option&#160;&#160;under the Option&#160;&#160;Agreement&#160;&#160;shall not
have&#160;&#160;shareholder</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">privileges&#160;&#160;with&#160;&#160;respect
to any Stock&#160;&#160;covered by the Option&#160;&#160;until the date
of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">issuance
of a stock certificate for such Stock.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
VII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;RIGHTS
OF OPTIONEES</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Nothing
in the Plan shall&#160;&#160;interfere&#160;&#160;with or limit in any way the
right of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the&#160;&#160;Company&#160;&#160;or&#160;&#160;a&#160;&#160;subsidiary&#160;&#160;corporation&#160;&#160;to&#160;&#160;terminate&#160;&#160;any&#160;&#160;employee's&#160;&#160;or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">consultant's&#160;&#160;employment
at any time, nor confer upon any employee or consultant</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any right
to continue in the employ of the Company or a subsidiary
corporation.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
VIII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;AMENDMENT,
MODIFICATION, AND</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;TERMINATION
OF THE PLAN</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;The&#160;&#160;Board&#160;&#160;may
at any time&#160;&#160;terminate&#160;&#160;and from&#160;&#160;time to time may
amend or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">modify
the Plan. Any amendment or&#160;&#160;modification&#160;&#160;of the Plan by the
Board may be</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">accomplished&#160;&#160;without&#160;&#160;approval&#160;&#160;of&#160;&#160;the&#160;&#160;shareholders&#160;&#160;of
the&#160;&#160;Company,&#160;&#160;unless</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shareholder
approval of such amendment or modification is required by any law
or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">regulation
governing the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;No
amendment,&#160;&#160;modification, or termination of the Plan shall in any
manner</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">adversely&#160;&#160;affect
any&#160;&#160;outstanding&#160;&#160;Option under the Plan without the consent
of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Optionee holding the Option.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
IX</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ACQUISITION,
MERGER OR LIQUIDATION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;9.1
Acquisition.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(a)
In the event that an&#160;&#160;acquisition&#160;&#160;occurs
with&#160;&#160;respect to the Company,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Company shall have the option,&#160;&#160;but not
the&#160;&#160;obligation,&#160;&#160;to cancel&#160;&#160;Options</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">outstanding&#160;&#160;as
of the effective date of such&#160;&#160;acquisition,&#160;&#160;whether or not
such</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options&#160;&#160;are
then&#160;&#160;exercisable,&#160;&#160;in return for&#160;&#160;payment to
the&#160;&#160;Optionees&#160;&#160;of an</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">amount
equal to a reasonable&#160;&#160;estimate of an amount&#160;&#160;(hereinafter
the "Spread"),</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">determined&#160;&#160;by
the Board,&#160;&#160;equal to
the&#160;&#160;difference&#160;&#160;between&#160;&#160;the net amount
per</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">share
payable in the&#160;&#160;acquisition&#160;&#160;or as a result of
the&#160;&#160;acquisition,&#160;&#160;less the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">exercise
price of the Option. In estimating the Spread, appropriate
adjustments</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to give
effect to the&#160;&#160;existence of the Options&#160;&#160;shall be
made,&#160;&#160;such as deeming</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Options to have been&#160;&#160;exercised,&#160;&#160;with the
Company&#160;&#160;receiving&#160;&#160;the&#160;&#160;exercise</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">price
payable thereunder, and treating the Stock receivable upon exercise of
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
as being outstanding in determining the net amount per share.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(b)&#160;&#160;For&#160;&#160;purposes&#160;&#160;of&#160;&#160;this&#160;&#160;section,&#160;&#160;an&#160;&#160;"acquisition"&#160;&#160;shall&#160;&#160;mean&#160;&#160;any</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">transaction
in which&#160;&#160;substantially&#160;&#160;all of the Company's assets are
acquired or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in which
a controlling amount of the Company's&#160;&#160;outstanding shares are
acquired,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in each
case by a single person or entity or an affiliated&#160;&#160;group of persons
and</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">entities.&#160;&#160;For
purposes of this section,&#160;&#160;a&#160;&#160;controlling&#160;&#160;amount
shall mean more</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">than
fifty percent of the issued and outstanding shares of Stock of the
Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company shall have the above option to cancel Options&#160;&#160;regardless of
how the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquisition&#160;&#160;is&#160;&#160;effectuated,&#160;&#160;whether
by direct&#160;&#160;purchase,&#160;&#160;through a merger or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">similar&#160;&#160;corporate&#160;&#160;transaction,&#160;&#160;or
otherwise.&#160;&#160;In cases where the&#160;&#160;acquisition</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">consists
of the&#160;&#160;acquisition of assets of the Company,&#160;&#160;the net
amount per share</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shall
be&#160;&#160;calculated on the basis of the net
amount&#160;&#160;receivable&#160;&#160;with respect to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
upon a distribution and liquidation by the Company after giving effect
to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">expenses
and charges, including but not limited to taxes, payable by the
Company</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">before
the liquidation can be completed.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;(c)
Where the Company&#160;&#160;does not&#160;&#160;exercise its option under this
Section 9.1</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the&#160;&#160;remaining&#160;&#160;provisions&#160;&#160;of&#160;&#160;this&#160;&#160;Article&#160;&#160;IX&#160;&#160;shall&#160;&#160;apply,&#160;&#160;to
the&#160;&#160;extent</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">applicable.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;9.2&#160;&#160;Merger&#160;&#160;or&#160;&#160;Consolidation.&#160;&#160;If
the&#160;&#160;Company&#160;&#160;shall&#160;&#160;be&#160;&#160;the&#160;&#160;surviving</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">corporation
in any merger or&#160;&#160;consolidation,&#160;&#160;any Option granted
hereunder shall</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">pertain
to and apply to the securities to which a holder of the number of
shares</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
Stock&#160;&#160;subject&#160;&#160;to the&#160;&#160;Option&#160;&#160;would
have been&#160;&#160;entitled&#160;&#160;in such&#160;&#160;merger
or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">consolidation,&#160;&#160;provided
that the Company shall not be considered&#160;&#160;the surviving</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">corporation
for purposes hereof if the Company or any of its subsidiaries is
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">survivor&#160;&#160;of&#160;&#160;a&#160;&#160;reverse&#160;&#160;triangular&#160;&#160;merger&#160;&#160;and&#160;&#160;the&#160;&#160;Company's&#160;&#160;&#160;shareholders</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">immediately&#160;&#160;prior
to the merger and less than 50% of the value of the Company's</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">stock
immediately after the merger.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;9.3
Other Transactions.&#160;&#160;A merger and consolidation in which the Company
is</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">not the
surviving corporation (the Company shall not be considered the
surviving</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">corporation
for purposes hereof if the Company or any of its subsidiaries is
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">survivor&#160;&#160;of&#160;&#160;a&#160;&#160;reverse&#160;&#160;triangular&#160;&#160;merger&#160;&#160;and&#160;&#160;the&#160;&#160;Company's&#160;&#160;&#160;shareholders</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">immediately&#160;&#160;prior
to the merger and less than 50% of the value of the Company's</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">stock&#160;&#160;immediately&#160;&#160;after
the&#160;&#160;merger)&#160;&#160;shall&#160;&#160;cause&#160;&#160;every&#160;&#160;Option&#160;&#160;outstanding</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">hereunder
to terminate on the third&#160;&#160;anniversary&#160;&#160;date of the
effective&#160;&#160;date of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">such
merger or consolidation.&#160;&#160;A dissolution or liquidation of the Company
shall</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cause
every Option outstanding&#160;&#160;hereunder to terminate&#160;&#160;effective
as of the date</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of such
dissolution or liquidation of the Company.&#160;&#160;However,&#160;&#160;if the
Optionee is</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">offered a
firm&#160;&#160;commitment&#160;&#160;whereby the resulting or
surviving&#160;&#160;corporation in a</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">merger
or&#160;&#160;consolidation&#160;&#160;will tender to the Optionee an option
(the "Substitute</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option")
to&#160;&#160;purchase&#160;&#160;its shares on terms
and&#160;&#160;conditions&#160;&#160;both as to number of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
and&#160;&#160;otherwise,&#160;&#160;which
will&#160;&#160;substantially&#160;&#160;preserve to the&#160;&#160;Optionee
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">rights
and benefits of the Option outstanding&#160;&#160;hereunder granted by the
Company,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the&#160;&#160;Option&#160;&#160;shall&#160;&#160;remain&#160;&#160;exercisable&#160;&#160;upon
its&#160;&#160;terms.&#160;&#160;The Board&#160;&#160;shall have</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">absolute
and uncontrolled&#160;&#160;discretion to determine whether the Optionee has
been</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">offered a
firm&#160;&#160;commitment&#160;&#160;and&#160;&#160;whether&#160;&#160;the&#160;&#160;tendered&#160;&#160;Substitute&#160;&#160;Option
will</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">substantially&#160;&#160;preserve
to the&#160;&#160;Optionee&#160;&#160;the rights and&#160;&#160;benefits of the
Option</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">outstanding
hereunder.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
X</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;SECURITIES
REGISTRATION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;10.1
Securities&#160;&#160;Registration.&#160;&#160;In the event that the Company
shall deem it</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">necessary
or desirable to register&#160;&#160;under the Securities Act of 1933, as
amended</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(the&#160;&#160;"Securities&#160;&#160;Act"),
or any other&#160;&#160;applicable&#160;&#160;statute,&#160;&#160;any Options or
any</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock&#160;&#160;with&#160;&#160;respect&#160;&#160;to
which an Option&#160;&#160;may be or shall&#160;&#160;have
been&#160;&#160;granted or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">exercised,&#160;&#160;or
to qualify any such Options or Stock under the Securities Act, or</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any other
statute,&#160;&#160;then the Optionee shall&#160;&#160;cooperate with the
Company and take</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">such
action as is&#160;&#160;necessary to
permit&#160;&#160;registration&#160;&#160;or&#160;&#160;qualification&#160;&#160;of
such</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
or Stock.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;10.2
Representations.&#160;&#160;Unless the Company has determined that the
following</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">representation&#160;&#160;is
unnecessary,&#160;&#160;each person exercising an Option under the
Plan</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">may be
required by the Company,&#160;&#160;as a condition to the issuance of the shares
of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
pursuant to exercise of the Option,&#160;&#160;to make
a&#160;&#160;representation&#160;&#160;in writing</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i) that
he is acquiring&#160;&#160;such shares for his own account for investment and
not</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">with a
view to, or for sale in
connection&#160;&#160;with,&#160;&#160;the&#160;&#160;distribution&#160;&#160;of
any part</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">thereof&#160;&#160;within
the&#160;&#160;meaning of
the&#160;&#160;Securities&#160;&#160;Act,&#160;&#160;and (ii)
that&#160;&#160;before any</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">transfer&#160;&#160;in&#160;&#160;connection&#160;&#160;with
the&#160;&#160;resale of such&#160;&#160;shares,&#160;&#160;he
will&#160;&#160;obtain the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">written
opinion of counsel for the Company,&#160;&#160;or other
counsel&#160;&#160;acceptable to the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company,&#160;&#160;that
such shares may be transferred without registration&#160;&#160;thereof.
The</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
may also require that the certificates&#160;&#160;representing such shares
contain</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">legends
reflecting the foregoing.&#160;&#160;To the extent permitted by law, including
the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
Act,&#160;&#160;nothing herein shall restrict the right of a
person&#160;&#160;exercising</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an Option
to sell the shares received in an open market transaction.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
XI</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;TAX
WITHHOLDING</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Whenever&#160;&#160;shares&#160;&#160;of
Stock&#160;&#160;are to be
issued&#160;&#160;in&#160;&#160;satisfaction&#160;&#160;of&#160;&#160;Options</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">exercised&#160;&#160;under
the Plan,&#160;&#160;the&#160;&#160;Company&#160;&#160;shall&#160;&#160;have the
power to&#160;&#160;require&#160;&#160;the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">recipient
of the Stock to remit to the Company an
amount&#160;&#160;sufficient&#160;&#160;to satisfy</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">federal,
state, and local withholding tax requirements, if any.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
XII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;INDEMNIFICATION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;To
the extent&#160;&#160;permitted&#160;&#160;by
law,&#160;&#160;each&#160;&#160;person who is or shall have been a</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">member of
the Board or the Committee&#160;&#160;shall be indemnified&#160;&#160;and held
harmless by</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Company against and from any loss, cost,&#160;&#160;liability,&#160;&#160;or
expense that may be</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">imposed
upon or reasonably&#160;&#160;incurred by him in connection with or resulting
from</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
claim, action, suit, or proceeding to which he may be a party or in which
he</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">may be
involved&#160;&#160;by reason of any action&#160;&#160;taken or failure to act
under the Plan</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
against and from any and all amounts paid by him in settlement thereof,
with</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Company's&#160;&#160;approval,&#160;&#160;or paid by him in satisfaction of
judgment in any such</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">action,&#160;&#160;suit,
or proceeding&#160;&#160;against him, provided he shall give the Company
an</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">opportunity,&#160;&#160;at
its
own&#160;&#160;expense,&#160;&#160;to&#160;&#160;handle&#160;&#160;and&#160;&#160;defend&#160;&#160;the
same&#160;&#160;before he</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">undertakes&#160;&#160;to
handle and defend it on his own
behalf.&#160;&#160;The&#160;&#160;foregoing&#160;&#160;right of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">indemnification
shall not be exclusive of any other rights of indemnification to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">which&#160;&#160;such&#160;&#160;persons&#160;&#160;may&#160;&#160;be&#160;&#160;entitled&#160;&#160;under&#160;&#160;the&#160;&#160;Company's&#160;&#160;&#160;certificate&#160;&#160;of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation
or bylaws, as a matter of law, or otherwise, or any power that the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
or a&#160;&#160;Subsidiary&#160;&#160;Corporation&#160;&#160;may have
to&#160;&#160;indemnify&#160;&#160;them or hold them</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">harmless.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
XIII</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;REQUIREMENTS
OF LAW</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;13.1&#160;&#160;Requirements&#160;&#160;of
Law.&#160;&#160;The&#160;&#160;granting of Options&#160;&#160;and
the&#160;&#160;issuance of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares&#160;&#160;of&#160;&#160;Stock&#160;&#160;upon
the&#160;&#160;exercise&#160;&#160;of
an&#160;&#160;Option&#160;&#160;shall&#160;&#160;be&#160;&#160;subject&#160;&#160;to
all</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">applicable&#160;&#160;laws,&#160;&#160;rules,&#160;&#160;and&#160;&#160;regulations,&#160;&#160;&#160;and&#160;&#160;to&#160;&#160;such&#160;&#160;approvals&#160;&#160;by&#160;&#160;any</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">governmental
agencies or national securities exchanges as may be required.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;13.2&#160;&#160;Governing&#160;&#160;Law.&#160;&#160;The
Plan,&#160;&#160;and
all&#160;&#160;agreements&#160;&#160;hereunder,&#160;&#160;shall be</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">construed
in accordance with and governed by the laws of the State of
Colorado.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
XIV</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;EFFECTIVE
DATE OF PLAN</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;The
Plan shall be effective on September 21, 2004.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ARTICLE
XV</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;NO
OBLIGATION TO EXERCISE OPTION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;The&#160;&#160;granting&#160;&#160;of
an Option&#160;&#160;shall&#160;&#160;impose
no&#160;&#160;obligation&#160;&#160;upon the&#160;&#160;holder</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">thereof
to exercise such Option.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;THIS
STOCK OPTION PLAN was adopted by the Board of Directors of the
Company</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">on May 6,
2005.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;By:
/s/ John McKowen</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-------------------------------</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;John
R. McKowen, President</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><a name="Exh231"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
23.1</font><br></a></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONSENT
OF INDEPENDENT AUDITORS</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
consent to the incorporation by reference in this Registration Statement on Form
S-8 of our report, dated April 14, 2008, on our audit of the financial
statements of Navidec Financial Services, Inc. as of December 31, 2007, which
report is included in the Annual Report on Form 10-KSB, as amended, filed with
the Securities and Exchange Commission on April 28, 2008.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/Jaspers
+ Hall, PC</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-----------------------------------</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jaspers +
Hall, PC</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Denver,
Colorado</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">October
14, 2008</font></div>
    </div>
    <div>&#160;</div>
  </body>
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{"company-data": {"conformed-name": "Navidec Financial Services, Inc.", "cik": "0001302946", "assigned-sic": "6199", "irs-number": "134228144", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-154393", "film-number": "081128727"}, "business-address": {"street1": "6399 S. FIDDLERS GREEN CIRCLE, SUITE 300", "city": "GREENWOOD VILLAGE", "state": "CO", "zip": "80111", "phone": "303-222-1120"}, "mail-address": {"street1": "6399 S. FIDDLERS GREEN CIRCLE, SUITE 300", "city": "GREENWOOD VILLAGE", "state": "CO", "zip": "80111"}}
grizzle_s8.htm
As filed
with the Securities and Exchange Commission on October 17, 2008
Registration No.
________________
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-8
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
NAVIDEC FINANCIAL SERVICES,
INC.
(Name
of small business issuer in its charter)
Colorado
13-4228144
(State
      or Jurisdiction of Incorporation or Organization)
(I.R.S.
      Employer Identification Number)
2000
      South Colorado Boulevard, Suite 200
Denver,
      Colorado  80222
(Address
      of principal executive offices)
(303)222-1000
(Issuer's
      telephone number, Including Area
Code)
Navidec
Financial Services, Inc.
2005
Stock Option Plan
______________________________
(Full
title of Plan)
John R.
McKowen, President
Navidec
Financial Services, Inc.
2000
South Colorado Boulevard, Suite 200
Denver,
Colorado 80222
(303)222-1000
(Name,
address and telephone number of agent for service)
COPIES OF
ALL COMMUNICATIONS TO:
Michael
A. Littman
Attorney
at Law
7609
Ralston Road
Arvada,
CO 80002
Tel:  303-422-8127
/ Fax 303-431-1567
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See definitions of "large accelerated filer," "accelerated
filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check
One).
Large
      accelerated filer
[___]
Accelerated
      filer
[___]
Non-accelerated
      filer
(Do
      not check if a smaller reporting company)
[___]
Smaller
      reporting company
[_X_]
CALCULATION
OF REGISTRATION FEE
Title
      of Each Class of Securities To Be Registered
Amount
      To Be Registered
Proposed
      Maximum Offering Price Per Unit
Proposed
      Maximum Aggregate Offering Price
(1)
Amount
      of Registration Fee
Common
      Stock
400,000
$.91
$364,000.00
$14.31
(1)
Estimated pursuant to Rule 457(c) under the Securities  Act, solely
for the purpose of calculating the registration fee, based on the average of the
bid and asked prices of the Company's common stock as reported within five
business days prior to the date of this filing.
PART
I
INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS
ITEM 1.
PLAN INFORMATION
The
document or documents  containing
the  information  specified in Part I are not required to be
filed with the  Securities and
Exchange  Commission  (the "Commission")  as part
of
this  Form  S-8  Registration  Statement,  but
will be provided as may be required under Rule 428(b)(1) of the Securities Act
of 1933.
Individual  agreements
with the  Employees  which provide for the payment
for  services  rendered in shares of the
common  stock of the Company, in lieu of cash,
have  been  attached  to
the  Registration  Statement  as  Exhibits.  These
documents  and
the  documents  incorporated  by  reference  in
this  Registration
Statement  pursuant  to  Item 3 of Part II of
this  Form  S-8,  taken  together,
constitute  a prospectus that meets
the  requirements  of Section  10(a) of the
Securities Act.
a.           General
Plan Information
1.   Navidec
Financial Services, Inc. 2005 Stock Option Plan
2.   
Nature and purpose of the Plan is to provide stock options and stock
compensation to employees and consultants of the Company.
3.   The
Plan is not subject to Employee Retirement Income Security Act of
1974.
4,
Additional  information  can
be obtained by contacting:
John R.
McKowen
President
and Director
Navidec
Financial Services, Inc.
2000
South Colorado Blvd., Suite 200
Denver,
Colorado  80222
(303)222-1000
The Plan
does not have a Plan Administrator and the Plan does not
invest.
b.           Securities
to be Offered
This
Registration Statement on Form S-8 registers for resale 400,000 shares of common
stock, $0.01 par value per share ("Common Stock"), of Navidec Financial
Services, Inc. (the "Company").
1.
Title:
      Common Stock
Amount: 200,000 shares granted for
services rendered by former Chief Financial Officer and Chief Operating Officer,
Robert Grizzle.  Pursuant to an Employment Agreement, Mr. Grizzle was
granted an option to purchase 200,000 shares.
Amount 200,000 shares issued for
services rendered by former Chief Financial Officer and Chief Operating Officer,
Robert Grizzle.
GRAND
TOTAL – 400,000 shares: 200,000 shares to be offered which have been granted
under the Navidec Financial Services, Inc. 2005 Stock Option Plan and 200,000
shares issued for services rendered.
2005 Stock Option
Plan
Amount:
200,000 shares to be offered pursuant to the Plan, of which, the Company's Board
of Directors has approved grants of  one option to purchase 200,000
shares, which have been exercised,  to Directors/Officers, Consultants
and Employees of the Company to date.
Name
Number
      of Shares
Granted
Robert
      Grizzle
200,000
2.           The
stock is registered under Section 12g of the Exchange Act.
c.           Employees
Who May Participate in the Plan
All
employees to Company may participate while employed with the Company and/or any
subsidiaries of the Company.
d.           Purchase
of Securities Pursuant to the Plan and Payment for Securities
Offered
1.
Participation
      is allowed in the 2005 fiscal year at the market price per share, in
      amounts to be set by the Board of
Directors.
2.
Payment
      for the securities purchased may only be in cash or through
      services.
3.
Employees
      are not required to contribute to the
Plan.
4.
Employees
      and the registrant are not required to contribute to the
    Plan.
5.
Reports
      are not made to employees participating in the Plan, since the Plan does
      not hold assets for employees'
accounts.
6.
Securities
      will not be purchased for the Plan in either the open market or through
      private transactions.
e.           Resale
Restrictions
There are
no resale  restrictions on plan participants, except in the event the
participant is
an  officer,  director  or  affiliate,  or
in the event  that the Plan  contains  a
repurchase  right of issuer,  for any stock, or
options,  as a pre-condition  of resale.
f.           Tax
Effects of Plan Participation
Participants
will be taxed upon any shares issued for services provided or for awards.
Participants will not be taxable on stock options issued to employees at the
market price on date of grant.
g.           Investment
of Funds
No assets
are held under the Plan.
h.           Withdrawal
from the Plan; Assignment of Interest
1.   Employees
may refuse to accept compensation or options.
2. No assignment of an interest in the Plan is possible, however,
stock or options received under the Plan may be assigned, subject to the terms
of the Plan, including the Right to Repurchase as defined therein.
3.   Not
applicable.
i.           Forfeitures
and Penalties
Except  as  otherwise   determined  by  the  Plan
Administrator,   at  the  time  of  the  Award,   upon   termination  of  a  Participant's
continuous service during the applicable restriction period,
the  Participant's  Restricted  Stock,  that
is at  that  time  subject  to
restrictions  shall be forfeited and  reacquired by the
Company;  provided that the Plan  Administrator may
provide,  by rule or regulation or in any
Award   agreement,   or  may  determine  in  any  individual   case,  that
restrictions or forfeiture  conditions  relating to
Restricted Stock shall be waived in whole or in part in the event of
terminations  resulting from specified causes,  and the
Plan  Administrator may in other cases waive in whole or in part the
forfeiture of Restricted Stock.
j.           Charges
and Deductions and Liens Therefore
Not
applicable.
ITEM
2.   REGISTRANT INFORMATION AND EMPLOYEE PLAN ANNUAL
INFORMATION.
The
document(s)  containing the information specified in Part I of Form
S-8 will be sent or given to participants as specified by Rule 428(b)(1)
promulgated
by  the  Securities  and  Exchange   Commission  (the  "Commission")  under  the
Securities Act of 1933
(the  "Securities  Act").  Such document(s) are
not being filed with the Commission, but constitute (along with the documents
incorporated by  reference  into
the  Registration  Statement  pursuant  to
Item 3 of Part II
hereof)  a  prospectus  that  meets
the  requirements  of  Section  10(a) of
the Securities Act.
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3.
INCORPORATION OF DOCUMENTS BY REFERENCE.
The
following  documents  previously
or  concurrently  filed by the Company with the Commission
are hereby  incorporated by reference into this Registration
Statement:
(a) The
Annual Report on Form 10-KSB, as amended, of Navidec Financial Services, Inc.
for the fiscal year ended December 31, 2007 filed on April 28, 2008
under  Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
as amended.
(b)  All  reports  filed  by
the  Company  pursuant  to  Section  13
of the Securities  Exchange Act of 1934, as amended (the
"Exchange  Act"),  since December 31, 2007.
(c)  The  description  of  the  common  shares  issued  by
the  Company  in
Registration  Statement  #000-51139 and
any  amendment  or report filed for the purpose of updating
such description under Registration Statement #000-51139.
All of
the above documents and documents  subsequently filed by the Company
with
the  Commission  pursuant  to  Sections  13(a),  13(c),  14
or 15(d) of the Exchange Act, prior to the filing of a
post-effective  amendment which indicates that
all  securities  offered  hereby  have
been sold or which  deregisters  all securities then
remaining unsold, shall be deemed incorporated by reference into this Form
S-8  Registration  Statement and to be a part thereof from
the date of
the  filing  of  such  documents.  Any  statement  contained  in  the  documents
incorporated, or deemed to be incorporated, by reference herein or therein shall
be  deemed  to  be  modified  or  superseded  for  purposes  of  this  Form  S-8
Registration  Statement  to
the  extent  that
a  statement  contained  herein or therein or in
any other  subsequently filed document which also is, or is deemed to
be,  incorporated by reference  herein or therein modifies
or supersedes such statement.  Any such statement so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Form S-8 Registration Statement.
All
documents incorporated by reference herein will be made available to all
participants without charge, upon written or oral request.  Other
documents required to be delivered to participants pursuant to Rule
428(b)(1)  under the Securities Act of 1933 are also
available  without charge,  upon written or oral request.
All requests for documents shall be directed to:
John R.
McKowen, President
Navidec
Financial Services, Inc.
2000
South Colorado Boulevard, Suite 200
Denver,
CO  80222
(303)222-1000
ITEM 4.
DESCRIPTION OF SECURITIES
The  description  of  the  common  shares  issued  by  the  Company  in
its Registration  Statement  #000-51139,  and
any  amendment or report filed for the purpose of updating such
description under Registration Statement #000-51139.
ITEM 5.
INTERESTS OF NAMED EXPERTS AND COUNSEL
The
validity of the securities being registered hereunder will be passed on for the
Company by Michael A. Littman, Attorney, of Arvada, Colorado. He is an
independent securities attorney.
ITEM 6.
INDEMNIFICATION OF DIRECTORS AND OFFICERS
The
Colorado Revised Statutes provide  that
a  corporation  may indemnify  any person who was
or is a party or is  threatened to be made a party to
any  threatened,  pending or completed  action or
proceeding,  whether civil, criminal,  administrative or
investigative,  by reason of the fact that he is or was a
director,  officer,  employee or agent of the Company or is
or was serving at our request in such capacity in another corporation or
business  association, against expenses (including attorneys' fees),
judgments,  fines and amounts paid in settlement  actually
and reasonably  incurred by him in connection  with such
action,  suit or  proceeding  if
he  acted  in good  faith  and in
a  manner  he reasonably believed to be in or not opposed to
the best interests of the Company and, with respect to any criminal action or
proceeding,  had no reasonable cause to believe his conduct was
unlawful.
The
Company,  pursuant to its bylaws, will provide indemnification with
its directors and executive  officers that provide the
maximum  indemnity allowed to directors and
executive  officers by the Colorado
Revised  Statutes,  subject to certain  exceptions
as well as
certain  additional  procedural  protections.  In
addition,  the indemnification  provides generally that the
Company will advance
expenses  incurred  by  directors  and  executives  officers  in
any  action  or proceeding  as to
which  they may
be  entitled  to  indemnification,  subject
to certain exceptions.
The
indemnification provisions in the bylaws may permit indemnification for
liabilities arising under the Securities Act of 1933. Insofar as indemnification
for  liabilities  arising under
the  Securities  Act of 1933 may be permitted to
directors,  officer  and  controlling  persons
of the  Company  pursuant  to the foregoing
provisions,  or otherwise,  the Securities and Exchange
Commission has opined that such  indemnification  is
against  public policy as expressed in the Securities Act and is,
therefore, unenforceable.
ITEM 7.
EXEMPTION FROM REGISTRATION CLAIMED
Not
Applicable.
ITEM 8.
EXHIBITS
See the
Exhibit Index following the signature page in this Registration Statement, which
Exhibit Index is incorporated herein by reference.
ITEM 9.
UNDERTAKINGS
(a) The
undersigned Company hereby undertakes:
(1)  To
file,  during any period in which offers or sales are being made, a
post-effective amendment to the Registration Statement to: (i) include any
prospectus  required by Section  10(a)(3) of
the  Securities  Act; (ii) reflect in
the  prospectus  any facts or events arising after the
effective date of the Registration Statement which, individually or in the
aggregate,  represent a fundamental  change in the
information set
forth  in  the  Registration   Statement;   and   notwithstanding  the
foregoing,  any increase or decrease in volume
of  securities  offered (if the total dollar value of
securities offered would not exceed that which
was  registered)  and any deviation  from the low
or high end of the estimated  maximum offering range may be selected
in the form of a prospectus  filed with
the  Commission  pursuant to Rule 424(b) if, in the
aggregate,  the changes in volume and price represent no more than a
20 percent change in the maximum aggregate  offering price set
forth  in  the   "Calculation  of   Registration"   table  in  the  effective        registration  statement;  and
(iii)  include any material  information with respect to the
plan of distribution  not previously  disclosed
in          the
Registration  Statement or any material change to such information in
the Registration  Statement,  provided however, that
provisions (i)  and (ii) of this undertaking are inapplicable if the
information to be filed thereunder is contained in periodic reports filed by the
Company pursuant to the Exchange Act that
are  incorporated  by reference into the Registration
Statement;
(2)  That,  for  the  purpose  of  determining   any  liability  under  the  Securities
Act, each such post effective  amendment shall be deemed
to  be a
new  registration  statement  relating to the
securities  offered therein  and
the  offering  of such  securities  at
that time shall be deemed to be the initial bona fide offering thereof;
and
(3)  To
remove from registration by means
of  post-effective  amendment any
of  the  securities  being  registered  which  remain  unsold  at  the
termination of the offering.
(b)
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted
to  directors,  officers,  and  controlling  persons
of the Company pursuant to the foregoing provisions, or otherwise, the Company
has been advised that in the opinion of the
Commission  such  indemnification  is against
public  policy  as  expressed  in  the  Securities   Act  and,  is,   therefore,
unenforceable.  In
the  event  that a
claim  for  indemnification  against  such
liabilities  (other  than  director,   officer  or  controlling  person  in  the
successful  defense of any  action,  suit
or  proceeding)  is  asserted  by such
director,  officer or controlling person in connection with the
securities being registered,  the
Company  will,  unless in the opinion of its counsel the
matter has been  settled
by  controlling  precedent,  submit to a court
of  appropriate jurisdiction the question whether
such  indemnification  by it is against public
policy
as  expressed  in the  Securities  Act
and will be  governed by the final adjudication of such
issue.
(c)
The Company hereby  undertakes  that,  for
purposes of determining  any liability under the
Securities  Act, each filing of the Company's  annual report
pursuant to Section 13(a) or 15(d) of the Exchange Act
(and,  where  applicable, each filing of an
employee  benefit  plan's  annual  report  pursuant
to Section 15(d) of the Exchange  Act) that
is  incorporated  by reference in  Registration
Statement  shall be deemed to be a
new  Registration  Statement  relating to the
securities  offered  therein,  and the offering of
such  securities at that time shall be deemed to be the initial bona
fide offering thereof.
SIGNATURES
Pursuant
to the  requirements of the Securities Act of 1933, the registrant
certifies  that it has  reasonable  grounds to
believe  that it meets all of the
requirements  for  filing  on Form S-8 and
has  duly  caused  this  registration
statement  to be  signed  on
its  behalf  by  the  undersigned,  thereunto  duly
authorized, in the City of  Denver, Colorado on October 15,
2008.
Navidec
Financial Services, Inc.
By:
/s/
      John R. McKowen
John
      R. McKowen, President
Pursuant  to  the   requirements  of  the  Securities  Act  of  1933,  this
Registration  Statement  has been signed below by
the  following  persons in the
capacities  indicated on October 15, 2008.  Each person
whose  signature to the
Registration  Statement  appears  below
hereby  appoints  Gregory A. Enders as such
person's  attorney-in-fact  with full  power to
act  alone,  with full  power of
substitution  or re-substitution,  for such person and in
such person's  name, place and stead,  in any and
all  capacities  to sign on
such  person's  behalf, individually  and in
the  capacities  stated  below,  and
to  file  any  and all amendments and
post-effective  amendments to this Registration
Statement,  which
amendment  or   amendments   may  make  such  changes  and   additions  as  such
attorney-in-fact may deem necessary or appropriate.
/s/
      John R. McKowen
John
      R. McKowen, President and Chairman of
the
      Board of Directors
/s/
      Howard Farkas
Howard
      L. Farkas, Director
/s/
      Jolee Henry
Jolee
      Henry, Director
NAVIDEC
FINANCIAL SERVICES, INC.
EXHIBIT
INDEX
TO
FORM S-8
REGISTRATION STATEMENT
EXHIBIT
NO.             DESCRIPTION
5.1                      Opinion
of Michael A. Littman, Attorney at Law
10.1                     Navidec
Financial Services, Inc. 2005 Stock Option Plan
23.1                     Consent
of Jaspers + Hall, PC
23.2                     Consent
of Michael A. Littman, Attorney at Law (as contained in Exhibit
5.1)
EXHIBIT
5.1
EXHIBIT
23.2
Consent/Opinion
of Michael A. Littman, Esq.
Michael
A. Littman
Attorney
at Law
7609
Ralston Road
Arvada,
CO 80002
Tel:
303-422-8127
Fax: 303-431-1567
Email:
malattyco@aol.com
October
16, 2008
Navidec
Financial Services, Inc.
2000
South Colorado Boulevard, Suite 200
Denver,
Colorado  80222
Re:     Registration
Statement on Form S-8
Ladies
and Gentlemen:
I have
examined the Registration Statement on Form S-8 to be filed by you with the
Securities and Exchange Commission in connection with the registration under the
Securities Act of 1933, as amended, of 200,000 shares (the "Shares") of your
Common Stock issued or issuable under the NAVIDEC FINANCIAL SERVICES,
INC.  2005 STOCK OPTION PLAN (the "Plan") referred to therein and
200,000 shares of $0.01 par value common stock. As
your  counsel  in  connection  with  this  transaction,   I  have  examined  the
proceedings  taken  and  proposed  to
be  taken  by you in  connection  with
the issuance of the Shares.
It is my
opinion that the Shares, when issued and paid for in accordance with the terms
of the Plan, will be legally and validly issued, fully paid, and
nonassessable.
I  further  consent  to
the  use  of  this  opinion  as
an  exhibit  to the
Registration  Statement,  including the
prospectus  constituting a part thereof, and any amendment
thereto.
Sincerely,
/s/Michael A. Littman
----------------------------
Michael
A. Littman, Esq.
EXHIBIT 10.1
Navidec
Financial Services, Inc. 2005 Stock Option Plan
NAVIDEC
FINANCIAL SERVICES, INC.
2005
STOCK OPTION PLAN
ARTICLE
I
ESTABLISHMENT
AND PURPOSE
1.1
Establishment. Navidec Financial Services, Inc., a Colorado
corporation
(the  "Company"),  hereby  establishes  a
stock  option plan for key  employees,
consultants  and  members  of
the  Board of  Directors  of
the  Company  or of a
subsidiary
of the Company,  providing  material  services to
the Company,  which
shall be
known as the Navidec  Financial  Services  2005
Stock  Option Plan (the
"Plan").  The
Company shall enter into Option agreements with Optionees pursuant
to the
Plan.
1.2  Purpose.  The
purpose of the Plan is to enhance  shareholder  value
by
attracting,  retaining
and motivating key employees,  consultants and members of
the Board
of  Directors of the Company and of
any  subsidiary  of the Company by
providing  them
with a means to acquire a proprietary  interest in the
Company's
success.
ARTICLE
II
ELIGIBILITY
AND PARTICIPATION
All
current and former  employees,  consultants and members of
the Board of
Directors
of the Company (the  "Board"),  and of
any  subsidiary of the Company,
are  eligible
to  participate  in the Plan and
receive  Options  under the Plan.
Optionees
under the Plan shall be selected by the Board, in its sole
discretion,
from
among those current and
former  employees,  consultants  and members of
the
Board of
the Company, and of any subsidiary of the Company,  who, in the
opinion
of
the  Board,  are or  were  in
a  position  to  contribute  materially  to
the
Company's
continued growth and development and to its long-term success.
ARTICLE
III
ADMINISTRATION
3.1  Administration.  The
Board shall be responsible for  administering the
Plan.
(a)
The Board is authorized to interpret the Plan; to prescribe, amend,
and
rescind
rules and  regulations  relating to the Plan; to provide
for  conditions
and  assurances  deemed  necessary
or advisable to protect the  interests of the
Company
with respect to the Plan; and to make all other determinations
necessary
or   advisable   for   the   administration   of   the   Plan.   Determinations,
interpretations,
or other actions made or taken by the Board with respect to the
Plan
and  Options  granted  under  the  Plan  shall
be  final  and  binding  and
conclusive
for all purposes and upon all persons.
(b)
At the  discretion  of
the  Board  the  Plan may
be  administered  by a
Committee  of
two or
more  non-employee  Directors  appointed  by
the Board (the
"Committee").  The
members of the Committee may be Directors who are eligible to
receive  Options
under the Plan, but Options may be granted to such persons only
by action
of the full Board and not by action of
the  Committee.  The  Committee
shall
have full power and authority,  subject to the limitations of the Plan
and
any
limitations imposed by the Board, to construe, interpret and administer
the
Plan and
to make  determinations  which shall be
final,  conclusive  and binding
upon
all  persons,  including  any
persons  having any  interests in any Options
which may
be granted  under the
Plan,  and,  by  resolution  or  resolutions  to
provide
for the creation and issuance of any Option, to fix the terms upon
which
and the
time or times at or within  which,  and the price or prices
at which any
shares
may be purchased  from the Company  upon the exercise of an
Option.  Such
terms,  time
or times and price or prices shall,  in every case, be set forth
or
incorporated
by reference in the instrument or instruments evidencing an Option,
and shall
be consistent with the provisions of the Plan.
(c)  Where
a  Committee  has been  created  by the
Board  pursuant  to this
Article
III, references in the Plan to actions to be taken by the Board shall
be
deemed to
refer to the Committee as well, except where limited by the Plan or
by
the
Board.
(d)
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 Option
granted
under it.
ARTICLE
IV
STOCK
SUBJECT TO THE PLAN
4.1
Number.  The total number of shares of common stock of the Company
(the
"Stock")  hereby
made  available  and reserved for issuance  under
the Plan upon
exercise
of Options shall be 5,000,000 shares. The aggregate number of shares
of
Stock  available  under
the Plan shall be subject to  adjustment  as provided
in
Section
4.3.
4.2
Unused  Stock.  If an Option shall  expire or
terminate  for any reason
without
having been exercised in full, or if an
"immaculate  cashless  exercise"
(as  described
in Section  5.4)  results in the issuance of a
reduced  number of
shares
in  satisfaction  of an
option  grant,  the  unpurchased  shares
of Stock
subject
thereto shall (unless the Plan shall
have  terminated)  become available
for other
Options under the Plan.
4.3  Adjustment  in  Capitalization.  In
the  event  of any  change  in
the
outstanding  shares
of Stock of the  Company  by reason of a
stock  dividend  or
split,
recapitalization,  reclassification, or other similar capital change,
the
aggregate  number  of  shares  of  Stock  set  forth  in  Section  4.1  shall
be
appropriately
adjusted by the Board, whose determination shall be conclusive. In
any such
case,  the  number and kind of shares of Stock that
are  subject to any
Option
and the Option price per share shall be proportionately and
appropriately
adjusted  without
any change in the  aggregate  Option price to be paid
therefor
upon
exercise of the Option.
ARTICLE
V
TERMS
OF STOCK OPTIONS
5.1
Grant of  Options.  Subject to
Section  4.1,  Options may be granted to
current  and  former  employees,  consultants  and  members  of
the Board of the
Company
and of any  subsidiary  of the Company at any time and from
time to time
as  determined  by
the  Board.  The
Board  shall  have  complete  discretion  in
determining  the
terms and  conditions  and  number
of  Options  granted to each
Optionee.  In
making such  determinations,  the Board may take
into  account the
nature of
services  rendered by such current and
former  employees,  consultants
and
members of the
Board,  their  present  and  potential  contributions  to
the
Company  and
such  other  factors  as the  Board in
its  discretion  shall  deem
relevant.
5.2  Option  Agreement;  Terms
and  Conditions  to
Apply  Unless  Otherwise
Specified.
As determined by the Board on the date of grant, each Option shall
be
evidenced
by an option agreement (the "Option  Agreement")  that
specifies:  the
Option
price; the duration of the Option; the number of shares of Stock to
which
the
Option applies; such vesting or exercisability  restrictions which the
Board
may
impose;  and any other terms or conditions  which the Board
may impose.  All
such
terms and conditions  shall be determined by the Board at the time of
grant
of the
Option.
(a)
If not  otherwise  specified  by
the  Board,  the  following  terms
and
conditions
shall apply to Options granted under the Plan:
(i)
Term.  The  duration of the Option shall be for ten years
from the
date
of grant.
(ii)  Exercise  of  Option.  If
an  Option  is  subject  to
a  vesting
schedule,  (A)  an  Option  held  by  an  Optionee  who  retires  from
employment
with the Company after having both reached the age of sixty
and
completed  twelve years of service with the Company shall
continue
to
vest in  accordance  with
the  vesting  schedule  set  forth in
the
applicable  Option  Agreement  notwithstanding  the
termination of the
Optionee's  employment  with
the Company,  provided  that prior to the
exercise
of the Option such  Optionee  does not after
such  retirement
become  employed
on a full-time  basis by a competitor  of the
Company
prior  to  reaching  age  sixty-five,  and  (B)
an  Option  held  by a
non-employee  Director
of the Company who retires from the Board after
completing  at
least five years of service to the Company shall become
fully
vested.
(iii)  Termination.  Each  Option  granted  pursuant
to the Plan shall
expire
on the earliest to occur of:
(A)
The date set forth in such  Option,  not to
exceed  ten years
from
the date of grant;
(B)
The third anniversary of the completion of the merger or sale
of  substantially  all
of the Stock or assets of the Company with
or
to another  company in a  transaction  in which
the Company is
not
the  survivor,  except for the merger of
the  Company  into a
wholly-owned  subsidiary
(and the Company shall not be considered
the
surviving  corporation  for purposes hereof if the Company
or
any
of its  subsidiaries is the survivor of a
reverse  triangular
merger
and the
Company's  shareholders  immediately  prior to
the
merger  own
less  than 50% of the  value of
the  Company's  stock
immediately
after the merger); or
(C)
The termination of the employment of an Optionee for cause by
the
Company.
(iv)
Acceleration. An Option shall become fully vested and exercisable
irrespective  of
its
other  provisions  (A)  immediately  prior
to the
completion
of the merger or sale of substantially  all of the stock
or
assets
of the Company in a transaction in which the Company is not the
survivor,  except
for the merger of the  Company  into
a  wholly-owned
subsidiary  (and
the Company  shall not
be  considered  the  surviving
corporation  for  purposes  hereof  if  the  Company  or  any  of  its
subsidiaries  is
the survivor of a reverse  triangular  merger and
the
Company's  shareholders  immediately
prior to the merger own less than
50%
of the value of the Company's stock immediately after the merger);
(B)
upon termination of the Optionee's  employment with the Company
or
a
subsidiary thereof because of death, disability or normal
retirement
upon  reaching  the
age of  sixty-five;  or (C) in the event  that
the
Optionee
is a non-employee member of the Company's Board of Directors,
upon  retirement  from
the Company's Board of Directors after reaching
the
age of seventy.
(v)  Transferability.  In
addition to the Optionee,  the Option may be
exercised,
to the extent exercisable by the Optionee, by the person or
persons
to whom the Optionee's rights under the Option pass by will or
the
laws of descent and distribution, by the spouse or the descendants
of
the  Optionee or by trusts for such  persons,  to
whom or which the
Optionee
may have transferred the Option,  or by
legal  representative
of
any of the  foregoing.  Any
such  transfer  shall  be made  only
in
compliance  with
the  Securities  Act
of  1933,  as  amended,  and
the
requirements
therefor as set forth by the Company.
(b)
The Board shall be free to specify terms and conditions  other than
and
in
addition to those set forth above, in its discretion.
(c)
All Option  Agreements shall  incorporate the provisions of
the Plan by
reference.
5.3
Option  Price.  No
Option  granted  pursuant  to the Plan shall have
an
Option  price
that is less than the fair  market  value of Stock on the
date the
Option is
granted,  as determined by the Board.  The Option exercise
price shall
be
subject to adjustment as provided in Section 4.3 above.
5.4
Payment. Payment for all shares of Stock shall be made at the time
that
an
Option,  or any
part  thereof,  is  exercised,  and no
shares shall be issued
until
full payment therefor has been made. Payment shall be made (i) in cash,
or
(ii) in
Stock, or, if acceptable to the Board, in some other form.
5.5  Repricing.  An  outstanding  Option  may
be  repriced  after the grant
thereof
to provide for a lower Option exercise price, whether through
adjustment
or  amendment  to
the
Option  exercise  price,  issuance  of
an amended  Option,
cancellation
of the Option and issuance of a replacement Option, or by any other
means
with substantially the same economic effect, with approval of the
Board.
ARTICLE
VI
WRITTEN
NOTICE, ISSUANCE OF STOCK
CERTIFICATES,
SHAREHOLDER PRIVILEGES
6.1
Written  Notice.  An Optionee  wishing to exercise
an Option shall give
written
notice to the Company,  in the form and manner  prescribed
by the Board.
Full  payment  for
the shares of Stock  acquired  pursuant  to
the  Option  must
accompany
the written notice.
6.2  Issuance  of
Stock  Certificates.  As soon
as  practicable  after  the
receipt
of written notice and payment, the Company shall deliver to the
Optionee
a
certificate or certificates for the requisite number of shares of
Stock.
6.3
Privileges of a Shareholder.  An Optionee or any other
person  entitled
to  exercise
an Option  under the Option  Agreement  shall not
have  shareholder
privileges  with  respect
to any Stock  covered by the Option  until the date
of
issuance
of a stock certificate for such Stock.
ARTICLE
VII
RIGHTS
OF OPTIONEES
Nothing
in the Plan shall  interfere  with or limit in any way the
right of
the  Company  or  a  subsidiary  corporation  to  terminate  any  employee's  or
consultant's  employment
at any time, nor confer upon any employee or consultant
any right
to continue in the employ of the Company or a subsidiary
corporation.
ARTICLE
VIII
AMENDMENT,
MODIFICATION, AND
TERMINATION
OF THE PLAN
The  Board  may
at any time  terminate  and from  time to time may
amend or
modify
the Plan. Any amendment or  modification  of the Plan by the
Board may be
accomplished  without  approval  of  the  shareholders  of
the  Company,  unless
shareholder
approval of such amendment or modification is required by any law
or
regulation
governing the Company.
No
amendment,  modification, or termination of the Plan shall in any
manner
adversely  affect
any  outstanding  Option under the Plan without the consent
of
the
Optionee holding the Option.
ARTICLE
IX
ACQUISITION,
MERGER OR LIQUIDATION
9.1
Acquisition.
(a)
In the event that an  acquisition  occurs
with  respect to the Company,
the
Company shall have the option,  but not
the  obligation,  to cancel  Options
outstanding  as
of the effective date of such  acquisition,  whether or not
such
Options  are
then  exercisable,  in return for  payment to
the  Optionees  of an
amount
equal to a reasonable  estimate of an amount  (hereinafter
the "Spread"),
determined  by
the Board,  equal to
the  difference  between  the net amount
per
share
payable in the  acquisition  or as a result of
the  acquisition,  less the
exercise
price of the Option. In estimating the Spread, appropriate
adjustments
to give
effect to the  existence of the Options  shall be
made,  such as deeming
the
Options to have been  exercised,  with the
Company  receiving  the  exercise
price
payable thereunder, and treating the Stock receivable upon exercise of
the
Options
as being outstanding in determining the net amount per share.
(b)  For  purposes  of  this  section,  an  "acquisition"  shall  mean  any
transaction
in which  substantially  all of the Company's assets are
acquired or
in which
a controlling amount of the Company's  outstanding shares are
acquired,
in each
case by a single person or entity or an affiliated  group of persons
and
entities.  For
purposes of this section,  a  controlling  amount
shall mean more
than
fifty percent of the issued and outstanding shares of Stock of the
Company.
The
Company shall have the above option to cancel Options  regardless of
how the
acquisition  is  effectuated,  whether
by direct  purchase,  through a merger or
similar  corporate  transaction,  or
otherwise.  In cases where the  acquisition
consists
of the  acquisition of assets of the Company,  the net
amount per share
shall
be  calculated on the basis of the net
amount  receivable  with respect to
shares
upon a distribution and liquidation by the Company after giving effect
to
expenses
and charges, including but not limited to taxes, payable by the
Company
before
the liquidation can be completed.
(c)
Where the Company  does not  exercise its option under this
Section 9.1
the  remaining  provisions  of  this  Article  IX  shall  apply,  to
the  extent
applicable.
9.2  Merger  or  Consolidation.  If
the  Company  shall  be  the  surviving
corporation
in any merger or  consolidation,  any Option granted
hereunder shall
pertain
to and apply to the securities to which a holder of the number of
shares
of
Stock  subject  to the  Option  would
have been  entitled  in such  merger
or
consolidation,  provided
that the Company shall not be considered  the surviving
corporation
for purposes hereof if the Company or any of its subsidiaries is
the
survivor  of  a  reverse  triangular  merger  and  the  Company's   shareholders
immediately  prior
to the merger and less than 50% of the value of the Company's
stock
immediately after the merger.
9.3
Other Transactions.  A merger and consolidation in which the Company
is
not the
surviving corporation (the Company shall not be considered the
surviving
corporation
for purposes hereof if the Company or any of its subsidiaries is
the
survivor  of  a  reverse  triangular  merger  and  the  Company's   shareholders
immediately  prior
to the merger and less than 50% of the value of the Company's
stock  immediately  after
the  merger)  shall  cause  every  Option  outstanding
hereunder
to terminate on the third  anniversary  date of the
effective  date of
such
merger or consolidation.  A dissolution or liquidation of the Company
shall
cause
every Option outstanding  hereunder to terminate  effective
as of the date
of such
dissolution or liquidation of the Company.  However,  if the
Optionee is
offered a
firm  commitment  whereby the resulting or
surviving  corporation in a
merger
or  consolidation  will tender to the Optionee an option
(the "Substitute
Option")
to  purchase  its shares on terms
and  conditions  both as to number of
shares
and  otherwise,  which
will  substantially  preserve to the  Optionee
the
rights
and benefits of the Option outstanding  hereunder granted by the
Company,
the  Option  shall  remain  exercisable  upon
its  terms.  The Board  shall have
absolute
and uncontrolled  discretion to determine whether the Optionee has
been
offered a
firm  commitment  and  whether  the  tendered  Substitute  Option
will
substantially  preserve
to the  Optionee  the rights and  benefits of the
Option
outstanding
hereunder.
ARTICLE
X
SECURITIES
REGISTRATION
10.1
Securities  Registration.  In the event that the Company
shall deem it
necessary
or desirable to register  under the Securities Act of 1933, as
amended
(the  "Securities  Act"),
or any other  applicable  statute,  any Options or
any
Stock  with  respect  to
which an Option  may be or shall  have
been  granted or
exercised,  or
to qualify any such Options or Stock under the Securities Act, or
any other
statute,  then the Optionee shall  cooperate with the
Company and take
such
action as is  necessary to
permit  registration  or  qualification  of
such
Options
or Stock.
10.2
Representations.  Unless the Company has determined that the
following
representation  is
unnecessary,  each person exercising an Option under the
Plan
may be
required by the Company,  as a condition to the issuance of the shares
of
Stock
pursuant to exercise of the Option,  to make
a  representation  in writing
(i) that
he is acquiring  such shares for his own account for investment and
not
with a
view to, or for sale in
connection  with,  the  distribution  of
any part
thereof  within
the  meaning of
the  Securities  Act,  and (ii)
that  before any
transfer  in  connection  with
the  resale of such  shares,  he
will  obtain the
written
opinion of counsel for the Company,  or other
counsel  acceptable to the
Company,  that
such shares may be transferred without registration  thereof.
The
Company
may also require that the certificates  representing such shares
contain
legends
reflecting the foregoing.  To the extent permitted by law, including
the
Securities
Act,  nothing herein shall restrict the right of a
person  exercising
an Option
to sell the shares received in an open market transaction.
ARTICLE
XI
TAX
WITHHOLDING
Whenever  shares  of
Stock  are to be
issued  in  satisfaction  of  Options
exercised  under
the Plan,  the  Company  shall  have the
power to  require  the
recipient
of the Stock to remit to the Company an
amount  sufficient  to satisfy
federal,
state, and local withholding tax requirements, if any.
ARTICLE
XII
INDEMNIFICATION
To
the extent  permitted  by
law,  each  person who is or shall have been a
member of
the Board or the Committee  shall be indemnified  and held
harmless by
the
Company against and from any loss, cost,  liability,  or
expense that may be
imposed
upon or reasonably  incurred by him in connection with or resulting
from
any
claim, action, suit, or proceeding to which he may be a party or in which
he
may be
involved  by reason of any action  taken or failure to act
under the Plan
and
against and from any and all amounts paid by him in settlement thereof,
with
the
Company's  approval,  or paid by him in satisfaction of
judgment in any such
action,  suit,
or proceeding  against him, provided he shall give the Company
an
opportunity,  at
its
own  expense,  to  handle  and  defend  the
same  before he
undertakes  to
handle and defend it on his own
behalf.  The  foregoing  right of
indemnification
shall not be exclusive of any other rights of indemnification to
which  such  persons  may  be  entitled  under  the  Company's   certificate  of
incorporation
or bylaws, as a matter of law, or otherwise, or any power that the
Company
or a  Subsidiary  Corporation  may have
to  indemnify  them or hold them
harmless.
ARTICLE
XIII
REQUIREMENTS
OF LAW
13.1  Requirements  of
Law.  The  granting of Options  and
the  issuance of
shares  of  Stock  upon
the  exercise  of
an  Option  shall  be  subject  to
all
applicable  laws,  rules,  and  regulations,   and  to  such  approvals  by  any
governmental
agencies or national securities exchanges as may be required.
13.2  Governing  Law.  The
Plan,  and
all  agreements  hereunder,  shall be
construed
in accordance with and governed by the laws of the State of
Colorado.
ARTICLE
XIV
EFFECTIVE
DATE OF PLAN
The
Plan shall be effective on September 21, 2004.
ARTICLE
XV
NO
OBLIGATION TO EXERCISE OPTION
The  granting  of
an Option  shall  impose
no  obligation  upon the  holder
thereof
to exercise such Option.
THIS
STOCK OPTION PLAN was adopted by the Board of Directors of the
Company
on May 6,
2005.
By:
/s/ John McKowen
-------------------------------
John
R. McKowen, President
Exhibit
23.1
CONSENT
OF INDEPENDENT AUDITORS
We
consent to the incorporation by reference in this Registration Statement on Form
S-8 of our report, dated April 14, 2008, on our audit of the financial
statements of Navidec Financial Services, Inc. as of December 31, 2007, which
report is included in the Annual Report on Form 10-KSB, as amended, filed with
the Securities and Exchange Commission on April 28, 2008.
/s/Jaspers
+ Hall, PC
-----------------------------------
Jaspers +
Hall, PC
Denver,
Colorado
October
14, 2008