<PAGE>

                                                                   Exhibit 10.05


Exhibit 10.05        1997 Employee Stock Option Plan


       PROPAINT SYSTEMS, INC.

       1 9 9 7   E M P L O Y E E   S T O C K   C O M P E N S A T I O N   P L A N

1.  Purpose of the Plan.

         This 1997 Employee Stock Compensation Plan ("Plan") is intended to
further the growth and advance the best interests of PROPAINT SYSTEMS, INC., a
Nevada corporation (the "Company"), and Affiliated Corporations, by supporting
and increasing the Company's ability to attract, retain and compensate persons
of experience and ability and whose services are considered valuable, to
encourage the sense of proprietorship in such persons, and to stimulate the
active interest of such persons in the development and success of the Company
and Affiliate Corporations. This Plan provides for stock compensation through
the award of the Company's Common Stock.

2.  Definitions.

         Whenever used in this Plan, except where the context might clearly
indicate otherwise, the following terms shall have the meanings set forth in
this section:

         a.  "Act" means the U.S. Securities Act of 1933, as amended.

         b.  "Affiliated Corporation" means any Parent or Subsidiary of the
             Company.

         c.  "Award" or "grant" means any grant or sale of Common Stock made
             under this Plan.

         d.  "Board of Directors" means the Board of Directors of the Company.
             The term "Committee" is defined in Section 4 of this Plan.

         e.  "Code" means the Internal Revenue Code of 1986, as amended.

         f.  "Common Stock" or "Common Shares" means the common stock, $.001 par
             value per share, of the Company, or in the event that the
             outstanding Common Shares are hereafter changed into or exchanged
             for different shares or securities of the Company, such other
             shares or securities.

         g.  "Date of Grant" means the day the Committee authorizes the grant of
             Common Stock or such later date as may be specified by the
             Committee as the date a particular award will become effective.

         h.  "Employee" means and includes the following persons: (i) executive
             officers, officers and directors (including advisory and other
             special directors) of the Company or an Affiliated



                                       1
<PAGE>


             Corporation; (ii) full-time and part-time employees of the Company
             or an Affiliated Corporation; (iii) natural persons engaged by the
             Company or an Affiliated Corporation as a consultant, advisor or
             agent; and (iv) a lawyer, law firm, accountant or accounting firm,
             or other professional or professional firm engaged by the Company
             or an Affiliated Corporation.

         i.  "Parent" means any corporation owning 50% or more of the total
             combined voting stock of all classes of the Company or of another
             corporation qualifying as a Parent within this definition.

         j.  "Participant" means an Employee to whom an Award of Plan Shares has
             been made.

         k.  "Plan Shares" means shares of Common Stock from time to time
             subject to this Plan.

         l.  "Subsidiary" means a corporation more than 50% of whose total
             combined capital stock of all classes is held by the Company or by
             another corporation qualifying as a Subsidiary within this
             definition.

3.  Effective Date of the Plan.

         The effective date of this Plan is January 18, 1997. No Plan Shares may
be issued after January 17, 2002.

4.  Administration of the Plan.

          The Compensation Committee of the Board of Directors ("Committee"),
and in default of the appointment or continued existence of such Committee the
Board of Directors, will be responsible for the administration of this Plan, and
will have sole power to award Common Shares under this Plan. Subject to the
express provisions of this Plan, the Committee shall have full authority and
sole and absolute discretion to interpret this Plan, to prescribe, amend and
rescind rules and regulations relating to it, and to make all other
determinations which it believes to be necessary or advisable in administering
this Plan. The determination of those eligible to receive an award of Plan
Shares shall rest in the sole discretion of the Committee, subject to the
provisions of this Plan. Awards of Plan Shares may be made as compensation for
services rendered, directly or in lieu of other compensation payable, as a bonus
in recognition of past service or performance or may be sold to an Employee as
herein provided. The Committee may correct any defect, supply any omission or
reconcile any inconsistency in this Plan in such manner and to such extent it
shall deem necessary to carry it into effect. Any decision made, or action
taken, by the Committee arising out of or in connection with the interpretation
and administration of this Plan shall be final and conclusive.

5.  Stock Subject to the Plan.

         The maximum number of Plan Shares which may be awarded under this Plan
is 1,000,000 shares.

6.  Persons Eligible to Receive Awards.

         Awards may be granted only to Employees (as herein defined).


                                       2
<PAGE>


7.  Grants or Awards of Plan Shares.

         Except as otherwise provided herein, the Committee shall have complete
discretion to determine when and to which Employees Plan Shares are to be
granted, and the number of Plan Shares to be awarded to each Employee. A grant
to an Employee may be made for cash, property, services rendered or other form
of payment constituting lawful consideration under applicable law; Plan Shares
awarded other than for services rendered shall be sold at not less than the fair
value thereof on the date of grant. No grant will be made if, in the judgment of
the Committee, such a grant would constitute a public distribution with the
meaning of the Act or the rules and regulations promulgated thereunder.

8.  Delivery of Stock Certificates.

         As promptly as practicable after authorizing an award of Plan Shares,
the Company shall deliver to the person who is the recipient of the award, a
certificate or certificates registered in that person's name, representing the
number of Plan Shares that were granted. Unless the Plan Shares have been
registered under the Act, each certificate evidencing Plan Shares shall bear a
legend to indicate that such shares represented by the certificate were issued
in a transaction which was not registered under the Act, and may only be sold or
transferred in a transaction that is registered under the Act or is exempt from
the registration requirements of the Act. In the absence of registration under
the Act, any person awarded Plan Shares may be required to execute and deliver
to the Company an investment letter, satisfactory in form and substance to the
Company, prior to issuance and delivery of the shares. An award may be made
under this Plan wherein the Plan Shares may be issued only after registration
under the Act.

9.  Assignability.

         An award of Plan Shares may not be assigned. Plan Shares themselves may
be assigned only after such shares have been awarded, issued and delivered, and
only in accordance with law and any transfer restrictions imposed at the time of
award.

10. Employment not Conferred.

         Nothing in this Plan or in the award of Plan Shares shall confer upon
any Employee the right to continue in the employ of the Company or Affiliated
Corporation nor shall it interfere with or restrict in any way the lawful rights
of the Company or any Affiliated Corporation to discharge any Employee at any
time for any reason whatsoever, with or without cause.

11. Laws and Regulations.

         The obligation of the Company to issue and deliver Plan Shares
following an award under this Plan shall be subject to the condition that the
Company be satisfied that the sale and delivery thereof will not violate the Act
or any other applicable laws, rules or regulations.


                                       3
<PAGE>


12. Withholding of Taxes.

         If subject to withholding tax, the Company or any Affiliated
Corporation may require that the Employee concurrently pay to the Company the
entire amount or a portion of any taxes which the Company or Affiliated
Corporation is required to withhold by reason of granting Plan Shares, in such
amount as the Company or Affiliated Corporation in its discretion may determine.
In lieu of part or all of any such payment, the Employee may elect to have the
Company or Affiliated Corporation withhold from the Plan Shares issued hereunder
a sufficient number of shares to satisfy withholding obligations. If the Company
or Affiliated Corporation becomes required to pay withholding taxes to any
federal, state or other taxing authority as a result of the granting of Plan
Shares, and the Employee fails to provide the Company or Affiliated Corporation
with the funds with which to pay that withholding tax, the Company or Affiliated
Corporation may withhold up to 50% of each payment of salary or bonus to the
Employee (which will be in addition to any required or permitted withholding),
until the Company or Affiliated Corporation has been reimbursed for the entire
withholding tax it was required to pay in respect of the award of Plan Shares.

13. Reservation of Shares.

         The stock subject to this Plan shall, at all times, consist of
authorized but unissued Common Shares, or previously issued shares of Common
Stock reacquired or held by the Company or an Affiliated Corporation equal to
the maximum number of shares the Company may be required to issue as stated in
Section 5 of this Plan, and such number of Common Shares hereby is reserved for
such purpose. The Committee may decrease the number of shares subject to this
Plan.

14. Amendment and Termination of the Plan.

         The Committee may suspend or terminate this Plan at any time or from
time to time, but no such action shall adversely affect the rights of a person
granted an Award under this Plan prior to that date. Otherwise, this Plan shall
terminate on the earlier of the terminal date stated in Section 3 of this Plan
or the date when all Plan Shares have been issued. The Committee shall have
absolute discretion to amend this Plan, subject only to those limitations
expressly set forth herein; however, the Committee shall have no authority to
extend the term of this Plan, to increase the number of Plan Shares subject to
award under this Plan or to amend the definition of "Employee" herein.

15. Delivery of Plan.

         A copy or description (for which a prospectus registering the Plan
Shares will serve) of this Plan shall be delivered to every person to whom an
award of Plan Shares is made. The Secretary of the Company may, but is not
required to, also deliver a copy of the resolution or resolutions of the
Committee authorizing the award.



                                       4
<PAGE>


16. Liability.

         No member of the Board of Directors, the Committee or any other
committee of directors, or officers, employees or agents of the Company or any
Affiliated Corporation shall be personally liable for any action, omission or
determination made in good faith in connection with this Plan.

17. Miscellaneous Provisions.

         The place of administration of this Plan shall be in the State of
Colorado (or subsequently, wherever the Company's principal executive offices
are located), and the validity, construction, interpretation and effect of this
Plan and of its rules, regulations and rights relating to it, shall be
determined solely in accordance with the laws of the State of Nevada or
subsequent state of domicile, should the Company be redomiciled. Without
amending this Plan, the Committee may issue Plan Shares to employees of the
Company who are foreign nationals or employed outside the United States, or
both, on such terms and conditions different from those specified in this Plan
but consistent with the purpose of this Plan, as it deems necessary and
desirable to create equitable opportunities given differences in tax laws in
other countries. All expenses of administering this Plan and issuing Plan Shares
shall be borne by the Company.

18. Reorganizations and Recapitalizations of the Company.

         (a) The shares of Common Stock subject to this Plan are shares of the
Common Stock of the Company as currently constituted. If, and whenever, the
Company shall effect a subdivision or consolidation of shares or other capital
readjustment, the payment of a Common Stock dividend, a stock split, combination
of shares (reverse stock split) or recapitalization or other increase or
reduction of the number of shares of the Common Stock outstanding without
receiving compensation therefor in money, services or property, then the number
of shares of Common Stock subject to this Plan shall (i) in the event of an
increase in the number of outstanding shares, be proportionately increased; and
(ii) in the event of a reduction in the number of outstanding shares, be
proportionately reduced.

         (b) Except as expressly provided above, the Company's issuance of
shares of Common Stock of any class, or securities convertible into shares of
Common Stock of any class, for cash or property, or for labor or services,
either upon direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company convertible
into or exchangeable for shares of Common Stock or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number of shares of Common Stock subject to this Plan.

         By signature below, the undersigned officers of the Company hereby
certify that the foregoing is a true and correct copy of the 1997 Employee Stock
Compensation Plan of the Company.

DATED: January 18, 1997               PROPAINT SYSTEMS, INC.




(SEAL)                                By.......................................
                                                     Authorized Officer



                                       5
<PAGE>



By....................................................
         Secretary or Assistant Secretary



         PROPAINT SYSTEMS, INC.



         ===============================

         C E R T I F I C A T I O N   O F   P L A N   A D O P T I O N

         ===============================


         I, the undersigned Secretary or assistant secretary of this
Corporation, hereby certify that the foregoing Employee Stock Compensation Plan
of this corporation was duly approved by the requisite number of holders of the
issued and outstanding common stock of this corporation as of the date below.


Date of Approval: ____________________, 19______





                                         X......................................
                                                  Signature


(SEAL)


                                       6