Document:

EXHIBIT 10.2

                      REGULATION S STOCK PURCHASE AGREEMENT

                             Dated December 20, 2001

                                       For

                      BEECHPORT CAPITAL, INC. COMMON STOCK

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TABLE OF CONTENTS
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                                                                        PAGE

ARTICLE I.  PURCHASE, SALE AND TERMS OF SHARES.............................2
   1.1.    The Shares......................................................2
   1.2.    Payment of Purchase Price; Closing..............................2
   1.3.    Covenants of Best Efforts.......................................3
   1.4.    Representations by the Purchaser................................3
   1.5     Termination.....................................................6

ARTICLE II.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY
   2.1.    Organization and Standing of the Company........................7
   2.2.    Corporate Action................................................7
   2.3.    Governmental Approvals..........................................8
   2.4.    Litigation......................................................8
   2.5.    Compliance with Other Instruments...............................8
   2.6.    Title to Assets; Intellectual Property Rights...................8
   2.7.    Taxes  9
   2.8.    Disclosure......................................................9
   2.9.    Brokers or Finders.............................................10
   2.10.   Capitalization; Status of Capital Stock........................10
   2.11.   SEC Reports............................................        10
   2.12.   Books and Records..............................................10
   2.13   Refusal of Registration ........................................11
   2.14.  Registration Rights.............................................11

   ARTICLE III.  MISCELLANEOUS
   3.1.    No Waiver; Cumulative Remedies.................................11
   3.2.    Amendments; Waivers and Consents...............................11
   3.3.    Addresses for Notices..........................................11
   3.4.    Costs; Expenses and Taxes......................................12
   3.5.    Effectiveness; Binding Effect; Assignment......................12
   3.6.    Survival of Representations and Warranties.....................12
   3.7.    Prior Agreements...............................................12
   3.8.    Severability...................................................12
   3.9.    Governing Law;Venue............................................12
   3.10.   Headings.......................................................13
   3.11.   Counterparts...................................................13
   3.12.   Further Assurances.............................................13

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Regulation  S Stock  Purchase  Agreement,  dated as of April  14,  2002  between
BEECHPORT CAPITAL INC., a Colorado corporation having offices at 132 South Third
Street,  Oakdale,  California 95361 USA (the "Company"),  and Starz  Investments
Limited,  a Belize  International  business company,  the registered  address of
which is 60 Market Square, PO Box 364, Belize City, Belize (the "Purchaser").

ARTICLE  I.

PURCHASE, SALE AND TERMS OF SHARES

         1.1. THE SHARES.  The Company agrees to issue and sell to the Purchaser
in an offshore transaction negotiated outside the U.S. and to be consummated and
closed outside the U.S. and, in  consideration  of and in express  reliance upon
the  representations,  warranties,  covenants,  terms  and  conditions  of  this
Agreement,  the  Purchaser  agrees to purchase  from the Company up to 5,000,000
shares (the  "Shares") of the  Company's  Common  Stock at a per share  purchase
price  which  shall be 35 % of the bid price of the  Company's  shares of Common
Stock as quoted on the OTC Bulletin Board (the "OTCBB") (or on such other United
States  stock  exchange  or public  trading  market  on which the  shares of the
Company  trade if, at the time of  purchase,  they are not trading on the OTCBB)
for the five (5) consecutive  trading days  immediately  preceding the date (the
"Call  Date") the  purchase  order (the  "Purchase  Notice")  is received by the
Company (the  "Purchase  Price"),  provided that the Purchase Price shall not be
less than a minimum  Purchase  Price of no less than $.20 (the  "Floor  Price"),
calculated as 35% of the 5-consequtive trading day average closing bid price.

         1.1.1.  In the event that the 35% of the 5-day average  calculation  of
the Purchase Price is less than the Floor Price, this contract will be suspended
until this average reaches the Floor Price or higher.

         1.1.2.  The company has the right to remove or alter its Floor Price at
any time provided  that the Company  notifies the Purchaser in writing and sends
the  notice via  registered  post to the  Purchaser's  registered  address,  and
announces  the removal or amendment to the Floor Price at least 10 business days
prior to the effective date of the new terms of business.

         1.1.3.  The  Purchaser  has the right to continue or suspend the entire
contract  should the amended  Floor Price not be  considered  beneficial  to the
continuation  of the purchase of shares,  provided that all  obligations  of the
Company  and the  Purchaser  are  fulfilled  as  outlined in section 1.5 of this
Agreement.

         1.2. PAYMENT OF PURCHASE PRICE; CLOSING. The transaction will be closed
in London,  and the  Purchaser  will pay the purchase  price by wire transfer of
immediately  available  funds  within 5 business  days upon receipt of the share
certificate(s).

         1.3  COVENANT OF BEST  EFFORTS.  The  Purchaser  agrees to use its best
efforts to purchase the shares between now and February 28th, 2002.

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         1.4 REPRESENTATIONS BY THE PURCHASER. The Purchaser makes the following
representations and warranties to the Company:

                  (a)  ACCESS TO  INFORMATION.  The  Purchaser,  in  making  the
decision  to  purchase   the  Shares,   has  relied   solely  upon   independent
investigations  made by it and/or its  representatives,  if any.  The  Purchaser
and/or its representatives  during the course of this transaction,  and prior to
the  purchase of any Shares,  has had the  opportunity  to ask  questions of and
receive  answers from the  management  of the Company  concerning  the terms and
conditions  of  the  offering  of  the  Shares  and to  receive  any  additional
information,  documents,  records and books  relative to its  business,  assets,
financial  condition,  results of  operations  and  liabilities  (contingent  or
otherwise) of the Company.

                  (b)  SOPHISTICATION  AND KNOWLEDGE.  The Purchaser  and/or its
representatives  has such  knowledge  and  experience  in financial and business
matters that it can represent itself and is capable of evaluating the merits and
risks of the purchase of the Shares. The Purchaser is not relying on the Company
with respect to the tax and other  economic  considerations  of an investment in
the  Shares,  and the  Purchaser  has relied on the advice of, or has  consulted
with, only the Purchaser's own advisor(s).  The Purchaser represents that it has
not been organized for the purpose of acquiring the Shares.

                  (c) LACK OF  LIQUIDITY.  The Purchaser  acknowledges  that the
purchase of the Shares  involves a high degree of risk and further  acknowledges
that it can bear the economic risk of the purchase of the Shares,  including the
total loss of its investment. The Purchaser has no present need for liquidity in
connection with its purchase of the Shares.

                  (d) NO PUBLIC  SOLICITATION.  The Purchaser is not subscribing
for the  Shares  as a result of or  subsequent  to any  advertisement,  article,
notice or other  communication  published in any newspaper,  magazine or similar
media or  broadcast  over  television  or radio,  or presented at any seminar or
meeting,  or any solicitation of a subscription by a person not previously known
to the Purchaser in connection with investments in securities generally. Neither
the company nor the Purchaser has engaged in any  `Directed  Selling  Efforts in
the  U.S.'  as  defined  in  Regulation  S  promulgated  by the SEC  under  U.S.
securities laws.

                  (e) AUTHORITY. The Purchaser has full right and power to enter
into and  perform  pursuant  to this  Agreement  and make an  investment  in the
Company,  and this  Agreement  constitutes  the  Purchaser's  valid and  legally
binding  obligation,  enforceable in accordance with its terms. The Purchaser is
authorized  and otherwise  duly qualified to purchase and hold the Shares and to
enter into this Agreement

                  (f) REGULATION S EXEMPTION. The Purchaser understands that the
Shares are being  offered and sold to it in reliance  on an  exemption  from the
registration  requirements  of United States federal and state  securities  laws
under Regulation S promulgated  under the Securities Act and that the Company is
relying  upon  the  truth  and  accuracy  of  the  representations,  warranties,
agreements, acknowledgments and understandings of the Purchaser set forth herein
in order to determine the  applicability  of such exemptions and the suitability
of  the  Purchaser  to  acquire  the  Shares.  In  this  regard,  the  Purchaser
represents, warrants and agrees that:

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                           (i) The  Purchaser  is not a U.S.  Person (as defined
         below) and is not an  affiliate  (as defined in Rule  501(b)  under the
         Securities  Act) of the  Company.  A U.S.  Person  means any one of the
         following:

                                    (A)  Any U.S. Citizen

                                    (B) Any natural person residentin the United
                                        States of America;

                                    (C) any partnership or corporation organized
                                        or  incorporated  under the laws of the
                                        United States of America;

                                    (D) any  estate  of which  any  executor  or
                                        administrator is a U.S. person;

                                    (E) any trust of which any trustee is a U.S.
                                        person;

                                    (F) any agency or branch of a foreign entity
                                        located in the United States of America;

                                    (G) any non-discretionary account or similar
                                        account (other than  an estate or trust)
                                        held by a dealer or other  fiduciary for
                                        the benefit or account of a U.S. person;

                                    (H) any  discretionary  account or   similar
                                        account (other than an estate or  trust)
                                        held  by a dealer or   other   fiduciary
                                        organized,   incorporated    or  (if  an
                                        individual)   resident  in   the  United
                                        States of America; and

                                    (I) any partnership or corporation if:

                                                   (1) organized or incorporated
                                            under   the   laws   of  an  foreign
                                            jurisdiction; and

                                                   (2) formed  by  a U.S. person
                                            principally   for  the   purpose  of
                                            investing    in    securities    not
                                            registered under the Securities Act,
                                            unless    it   is    organized    or
                                            incorporated,    and    owned,    by
                                            accredited  investors (as defined in
                                            Rule  501(a)  under  the  Securities
                                            Act)  who are not  natural  persons,
                                            estates or trusts.

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                           (ii)  At the  time  of  the  origination  of  contact
         concerning this Agreement and the date of the execution and delivery of
         this Agreement, the Purchaser was outside of the United States.

                           (iii) The  Purchaser  will  not,  during  the  period
         commencing  on the date of  issuance  of the  Shares  and ending on the
         first  anniversary  of such  date,  or such  shorter  period  as may be
         permitted  by  Regulation  S or other  applicable  securities  law (the
         "Restricted  Period"),  offer,  sell, pledge or otherwise  transfer the
         shares in the United  States,  or to a U.S.  Person for the  account or
         benefit  of a U.S.  Person,  or  otherwise  in a manner  that is not in
         compliance with Regulation S.

                           (iv) The  Purchaser  will,  after  expiration  of the
         Restricted Period, offer, sell, pledge or otherwise transfer the Shares
         only pursuant to registration  under the Securities Act or an available
         exemption there from and, in accordance  with all applicable  state and
         foreign securities laws.

                           (v)  The  Purchaser  has  not  in  any  jurisdiction,
         engaged in, and prior to the expiration of the  Restricted  Period will
         not engage in, any short  selling of or any  hedging  transaction  with
         respect to the Shares,  including without limitation,  any put, call or
         other option transaction, option writing or equity swap.

                           (vi) Neither the  Purchaser  nor or any person acting
         on its behalf has  engaged,  nor will engage,  in any directed  selling
         efforts to U.S.  Citizens  with respect to the Shares and the Purchaser
         and any person  acting on its behalf have complied and will comply with
         the  "offering  restrictions"  requirements  of  Regulation S under the
         Securities Act.

                           (vii) The transactions contemplated by this Agreement
         have not been pre-arranged with a buyer located in the United States or
         with a U.S.  Person,  and are not part of a plan or scheme to evade the
         registration requirements of the Securities Act.

                           (viii) Neither the Purchaser nor any person acting on
         its behalf has  undertaken  or carried out any activity for the purpose
         of,  or that  could  reasonably  be  expected  to have the  effect  of,
         conditioning  the  market in the  United  States,  its  territories  or
         possessions,  for any of the Shares.  The Purchaser agrees not to cause
         any  advertisement  of the Shares to be published  in any  newspaper or
         periodical  or posted in any public place and not to issue any circular
         relating to the Shares,  except such  advertisements  that  include the
         statements  required by Regulation S under the Securities Act, and only
         offshore and not in the U.S. or its territories, and only in compliance
         with any local applicable securities laws.

                           (ix) Each  certificate  representing the Shares shall
be endorsed with the following legends:

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                                    (A)  "THE   SHARES  ARE  BEING   OFFERED  TO
                  INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S
                  UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE  SECURITIES
                  ACT"))  AND  WITHOUT   REGISTRATION  WITH  THE  UNITED  STATES
                  SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT IN
                  RELIANCE UPON  REGULATION S PROMULGATED  UNDER THE  SECURITIES
                  ACT."

                                    (B) "TRANSFER OF THESE SHARES IS PROHIBITED,
                  EXCEPT IN  ACCORDANCE  WITH THE  PROVISIONS  OF  REGULATION S,
                  PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT
                  TO AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS
                  MAY NOT BE CONDUCTED  UNLESS IN COMPLIANCE WITH THE SECURITIES
                  ACT."

                                    (C) Any other legend  required to be placed
                  thereon by applicable  federal or state  securities laws.

                           (x) The  Purchaser  consents to the Company  making a
         notation on its records or giving instructions to any transfer agent of
         the Company in order to implement the  restrictions  on transfer of the
         Shares set forth in this Section 1.4.

         1.5  TERMINATION.  Either Party may terminate the agreement at any time
by  providing  a  10-business  day  written  notification  and  sending  it  via
registered  post to the  registered  address  of the  counter-party.  After  the
termination  date, the Purchaser shall cease all further  marketing  efforts for
the  Shares  and  shall no  longer  provide  the  Company  with any new order to
purchase the Shares.  In the event of termination by the Company,  the following
conditions would be applicable.

         A.   Acceptance  of the shares  ordered at any time from receipt of the
              termination  notice and up to the last day of the  10-business day
              notification period.

         B.   All share orders  during the  termination  period and prior to the
              termination  period  remain  valid and  enforceable  for a further
              period of 6 months in order to effect the  following  discharge of
              responsibilities by the Parties:

              By the company

               a) cutting shares into individual names as specified by the
                  Purchaser for delivery as designated by the Purchaser,

               b) correction of any certificates  previously cut into individual
                  names  that  may  have  errors  in  spelling  or   quantities,
                  requiring amendment.

              By the Purchaser

               a) provision  of  lists  if individual  names of shareholders for
                  cutting by the Company.

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               b) payment for shares  ordered  upon  delivery of the  individual
                  share  certificates to the party  designated by the Purchaser,
                  provided that said share certificates have been correctly cut.

               c) notification   of   corrections  to  share   certificates   in
                  individual  names until such time the share  certificates  are
                  delivered in a form which  renders  them  eligible for payment
                  against stock order per above.

ARTICLE  II.

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents and warrants as follows:

         2.1.  ORGANIZATION  AND STANDING OF THE COMPANY.  The Company is a duly
organized and validly  existing  corporation  in good standing under the laws of
the State of California and has all requisite  corporate power and authority for
the  ownership and  operation of its  properties  and for the carrying on of its
business as now conducted and as now proposed to be conducted and to execute and
deliver  this  Agreement  and  other   instruments,   agreements  and  documents
contemplated herein (together with this Agreement, the "Transaction Documents"),
to issue,  sell and  deliver  the Shares and to  perform  its other  obligations
pursuant hereto.  The Company is duly licensed or qualified and in good standing
as a foreign corporation  authorized to do business in all jurisdictions wherein
the  character of the property  owned or leased or the nature of the  activities
conducted by it makes such licensing or  qualification  necessary,  except where
the  failure to be so licensed or  qualified  would not have a material  adverse
effect on the business, operations or financial condition of the Company.

         2.2.  CORPORATE  ACTION.  The  Transaction  Documents  have  been  duly
authorized,  executed  and  delivered by the Company and  constitute  the legal,
valid and binding obligations of the Company, enforceable against the Company in
accordance with their  respective  terms.  The Shares have been duly authorized.
The issuance,  sale and delivery of the Shares have been duly  authorized by all
required  corporate action on the part of the Company.  The Shares,  when issued
and paid for in  accordance  with the  Transaction  Documents,  will be  validly
issued,  fully paid and non-assessable,  with no personal liability attaching to
the  ownership  thereof  and  will be free  and  clear  of all  liens,  charges,
restrictions,  claims and encumbrances imposed by or through the Company, except
as expressly set forth in the Transaction Documents.

         2.3.  GOVERNMENTAL  APPROVALS.  No  authorization,  consent,  approval,
license,  exemption of or filing or registration  with any court or governmental
department,  commission,  board, bureau, agency or instrumentality,  domestic or
foreign,  is or will be necessary for, or in connection  with, the execution and
delivery by the Company of this Agreement, for the offer, issue, sale, execution
or  delivery  of the  Shares,  or for  the  performance  by the  Company  of its
obligations  under the Transaction  Documents except for any filings required by
applicable securities laws.

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         2.4.  LITIGATION.  Except as set  forth on  Schedule  2.4,  there is no
litigation  or  governmental  proceeding  or  investigation  pending  or, to the
knowledge of the Company,  threatened  against the Company  affecting any of its
properties  or assets,  nor, to the best  knowledge  of the  Company,  has there
occurred  any event or does there exist any  condition on the basis of which any
litigation,  proceeding  or  investigation  might  properly be  instituted.  The
Company is not in default with respect to any order, writ,  injunction,  decree,
ruling or decision of any court,  commission,  board or other government agency,
which such default might have a material adverse effect on the business, assets,
liabilities,  operations, Intellectual Property Rights, (as defined hereinafter)
management  or  financial  condition  of the  Company.  There are no  actions or
proceedings  pending or, to the Company's  knowledge,  threatened  (or any basis
therefore known to the Company)  against the Company which might result,  either
in any case or in the aggregate, in any material adverse change in the business,
operations,  Intellectual Property Rights, affairs or financial condition of the
Company or in any of its properties or assets, or which might call into question
the  validity of any of the  Transaction  Documents,  any of the Shares,  or any
action taken or to be taken pursuant hereto or thereto.

         2.5. COMPLIANCE WITH OTHER INSTRUMENTS. The Company is in compliance in
all respects with its Certificate of Incorporation  and Bylaws,  each as amended
and/or  restated  to date,  and in all  respects  with the  material  terms  and
provisions  of  all  mortgages,   indentures,   leases,   agreements  and  other
instruments  by which it is  bound  or to which it or any of its  properties  or
assets are subject.  The Company is in compliance in all material  respects with
all  judgments,   decrees,   governmental  orders,  laws,  statutes,   rules  or
regulations  by which it is  bound  or to which it or any of its  properties  or
assets are  subject.  Neither the  execution  and  delivery  of the  Transaction
Documents nor the issuance of the Shares, nor the consummation or performance of
any transaction  contemplated hereby or thereby,  has constituted or resulted in
or will  constitute  or result in a default or violation  of,  create a conflict
with,  trigger any "change of  control" or other right of any Person  under,  or
require any consent,  waiver,  release or approval under or with respect to, any
term or provision of any of the  foregoing  documents,  instruments,  judgments,
agreements, decrees, orders, statutes, rules and regulations.

         2.6. TITLE TO ASSETS; INTELLECTUAL PROPERTY RIGHTS. (a) The Company has
good  and  marketable  title  in fee to such of its  fixed  assets  as are  real
property,  and  good and  merchantable  title to all of its  other  assets,  now
carried on its books, free of any mortgages,  pledges,  charges, liens, security
interests or other  encumbrances.  The Company enjoys  peaceful and  undisturbed
possession under all leases under which it is operating, and all said leases are
valid and subsisting and in full force and effect.

                  (b) The  Company  owns or has a valid  right  to use  patents,
patent  applications,   patent  right,  trade  secrets,   confidential  business
information,  formula, processes, laboratory notebooks, algorithms,  copyrights,
mask works,  claims of infringement  against third parties,  licenses,  permits,
license rights,  contract rights with employees,  consultants and third parties,
trademarks,   trademark  rights,  inventions  and  discoveries,  and  all  other
intellectual  property,  including,  without  limitation,  all other such rights
generally classified as intangible,  intellectual  property assets in accordance
with GAAP  (collectively  the,  "Intellectual  Property  Rights")  being used to

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conduct its  business as now  operated  and as now proposed by the Company to be
operated and to the best of the Company's knowledge, the conduct of its business
as now  operated  and as now  proposed  to be  operated  does  not and  will not
conflict with or infringe upon the  Intellectual  Property Rights of others.  To
the best of the Company's  knowledge,  no claim is pending or threatened against
the Company  and/or its officers,  employees and  consultants to the effect that
any such Intellectual  Property Right owned or licensed by the Company, or which
the Company  otherwise has the right to use, is invalid or  unenforceable by the
Company.

                  (c) The Company has taken all  reasonable  measures to protect
and  preserve  the  security,  confidentiality  and  value  of its  Intellectual
Property Rights, including its trade secrets and other confidential information.
The Company is and will be the exclusive owner of all right,  title and interest
in its Intellectual Property Rights as purported to be owned by the Company, and
such  Intellectual  Property Rights are valid and in full force and effect.  The
Company has not received  notice of and, to the best of the Company's  knowledge
there are no claims that the Company's  Intellectual  Property Rights or the use
or ownership  thereof by the Company  infringes,  violates or conflicts with any
such right of any third party.

         2.7.  TAXES.  Except as set forth on  Schedule  2.7,  the  Company  has
accurately  prepared and timely  filed all federal,  state and other tax returns
required by law to be filed by it, has paid or made provision for the payment of
all  taxes  shown  to be  due  and  all  additional  assessments,  and  adequate
provisions  have  been  made  and  are  reflected  in  the  Company's  financial
statements  for all  current  taxes and other  charges  to which the  Company is
subject and which are not currently due and payable.

         2.8.  DISCLOSURE.  There is no fact within the knowledge of the Company
or any of its  executive  officers  which  has not been  disclosed  herein or in
writing by them to the Purchaser and which materially  adversely affects,  or in
the future in their  opinion may,  insofar as they can now  foresee,  materially
adversely affect the business,  operations,  properties,  Intellectual  Property
Rights,  assets or  condition,  financial  or  other,  of the  Company.  Without
limiting the foregoing, the Company has no knowledge that there exists, or there
is pending or planned, any patent, invention,  device,  application or principle
or any statute,  rule, law, regulation,  standard or code which would materially
adversely affect the business, operations, Intellectual Property Rights, affairs
or financial condition of the Company.

         2.9. BROKERS OR FINDERS. No Person has or will have, as a result of the
transactions  contemplated by this Agreement, any right, interest or valid claim
against or upon the Purchaser for any commission, fee or other compensation as a
finder or broker because of any act or omission by the Company or its respective
agents.

      2.10. CAPITALIZATION;  STATUS OF CAPITAL STOCK. As of the date hereof, the
Company had a total authorized  capitalization  consisting of 750,000,000 shares
of Common Stock,  .001 par value. As of November 19, 2001,  12,092,000 shares of
Common Stock were issued and outstanding.  All the outstanding shares of capital
stock of the Company have been duly  authorized,  and are validly issued,  fully
paid  and  non-assessable.  None  of the  Company's  outstanding  securities  or

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authorized  capital stock or the Shares is subject to any rights of  redemption,
repurchase,  rights of first refusal, preemptive rights or other similar rights,
whether contractual, statutory or otherwise, for the benefit of the Company, any
stockholder,  or any other Person.  There are no restrictions on the transfer of
shares of capital  stock of the  Company  other than those  imposed by  relevant
federal  and  state  securities  laws  and as  otherwise  contemplated  by  this
Agreement.   There   are  no   agreements,   understandings,   trusts  or  other
collaborative  arrangements or understandings  concerning the voting or transfer
of the capital stock of the Company to which the Company is a party. The Company
does not have outstanding, and has no obligation to grant or issue, any "phantom
stock" or other right measured by the profits, revenues or results of operations
of the Company or any portion thereof; or any similar rights.

         2.11. SEC REPORTS. TO BE INSERTED BY ITEC The Company has furnished the
Purchaser  with  true and  complete  copies  of its  reports  on Form S-8  filed
September 17, 2001;  Form NT 10-Q on November 15, 2001;  and Form 10-QSB for the
quarter ending  September 30, 2001 on November 20, 2001 (the "Current  Reports")
which  constitute  the only documents that the Company was required to file with
the SEC since  November 20th,  2001. As of their  respective  filing dates,  the
Current  Reports and all other  filings made by the Company under the Act or the
Securities Exchange Act of 1934, as amended (the "1934  Act")(collectively,  the
"SEC  Reports"),  complied with the  requirements of the Act or the 1934 Act, as
the case may be, and none of such filings  contained  any untrue  statement of a
material  fact or  omitted  to state any  material  fact  required  to be stated
therein  or  necessary  to  make  the  statements   therein,  in  light  of  the
circumstances under which they were made, not misleading.

         2.12. BOOKS AND RECORDS.  The books of account,  ledgers,  order books,
records and  documents  of the Company  accurately  and  completely  reflect all
material  information  relating to the business of the Company, the location and
collection of its assets, and the nature of all transactions  giving rise to the
obligations or accounts receivable of the Company.

         2.13. REFUSAL OF REGISTRATION. The parties hereby acknowledge and agree
that the Company  shall be required,  as a term of this  contract,  to refuse to
register any transfer of the shares not made in accordance  with the  provisions
of  Regulation  S, or  pursuant  to  Registration,  or  another  exemption  from
registration under the Securities Act.

         2.14. REGISTRATION RIGHTS.  Purchaser,  and its successors and assigns,
shall  have the  right,  in the  event  that the  Company  files a  Registration
Statement  under the Securities Act of 1933 at any time, in which one year after
the Call Date on each  tranche of shares  purchased,  to have part or all of the
shares of the Company in such tranche(s) included in said Registration Statement
and  registered  under  the  Securities  Act  of  1933  (provided  the  form  of
Registration Statement permits such inclusion under SEC rules).

The Company shall pay all costs of the registration of such shares.

The Company shall give the Purchaser,  its  successors and assigns,  at least 30
days' written  notice prior to filing such  Registration  Statement of Company's
intent to so file the Registration Statement,  and Purchaser, its successors and
assigns,  shall give  written  notice of intent to exercise  such rights  hereby

                                       10
<PAGE>

granted, and the number of shares to be registered, within 15 days after receipt
of the Company's written notice.  Otherwise,  in the event that the company does
not file a  Registration  Statement  upon or  subsequent to one year of the Call
Date of the first (or any subsequent) tranche of shares, then the Purchaser, and
its successors and assigns,  shall have the right to request Registration of any
tranche(s) of shares at any time after the one year  restricted  period from the
Call Date has elapsed.

The  company  agrees  to  undertake  the  registration  of the  shares in a full
Registration Statement as defined under the Securities Act of 1933 (provided the
form of  Registration  Statement  permits such  inclusion  under SEC rules),  as
requested by the Purchaser, its successors or assigns.

ARTICLE  III.

MISCELLANEOUS

         3.1. NO WAIVER; CUMULATIVE REMEDIES. No failure or delay on the part of
any party to this Agreement in exercising any right,  power or remedy  hereunder
shall operate as a waiver thereof;  nor shall any single or partial  exercise of
any such right,  power or remedy preclude any other or further  exercise thereof
or the  exercise of any other  right,  power or remedy  hereunder.  The remedies
herein  provided are  cumulative  and not exclusive of any remedies  provided by
law.

         3.2. AMENDMENTS;  WAIVERS AND CONSENTS.  Any provision in the Agreement
to the contrary notwithstanding, and except as hereinafter provided, changes in,
termination  or  amendments of or additions to this  Agreement may be made,  and
compliance  with any  covenant or  provision  set forth herein may be omitted or
waived,  if either Party shall obtain consent  thereto in writing from the other
Party.  Any waiver or consent may be given subject to satisfaction of conditions
stated therein and any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

         3.3. ADDRESSES FOR NOTICES. Any notice or other communication  required
or  permitted to be given  hereunder  shall be in writing and shall be mailed by
certified  mail,  return  receipt  requested,  or delivered  against  receipt to
Company  and/or to Purchaser  at the  addresses  for each set forth  above.  Any
notice or other  communication  given by certified mail shall be deemed given at
the time of  certification  thereof,  except  for a notice  changing  a  party's
address which shall be deemed given at the time of receipt thereof.

         3.4.  COSTS;  EXPENSES AND TAXES.  Upon execution of this Agreement and
with each delivery of the Purchase  Price as set forth in 1.3, the Company shall
pay no monies in the aggregate,  to cover fees and  disbursements  of counsel to
the  Purchaser  incurred  in  connection  with  the  negotiation,  drafting  and
completion of the  Transaction  Documents and all related  matters.  The Company
shall pay any and all stamp,  or other similar taxes payable or determined to be
payable in connection  with the execution  and delivery of this  Agreement,  the
issuance  of any  securities  and the  other  instruments  and  documents  to be
delivered  hereunder or  thereunder,  and agrees to save the Purchaser  harmless
from and against any and all  liabilities  with respect to or resulting from any
delay in paying or omission to pay such taxes.

                                       11
<PAGE>

         3.5. EFFECTIVENESS;  BINDING  EFFECT; ASSIGNMENT. This  Agreement shall
be binding upon and inure to the benefit of the Company,  the  Purchaser and the
respective successors and assigns.

         3.6. SURVIVAL OF REPRESENTATIONS  AND WARRANTIES.  All  representations
and  warranties  made in the  Transaction  Documents,  the Shares,  or any other
instrument  or document  delivered in connection  herewith or  therewith,  shall
survive the execution and delivery hereof or thereof.

         3.7. PRIOR AGREEMENTS. The Transaction Documents executed and delivered
in connection  herewith constitute the entire agreement between the parties with
respect  to the  subject  matter  set  forth  herein  and  supersede  any  prior
understandings or agreements concerning the subject matter hereof.

         3.8.  SEVERABILITY.  The  provisions of the  Transaction  Documents are
severable  and,  in the event  that any court of  competent  jurisdiction  shall
determine  that  any  one or  more of the  provisions  or  part  of a  provision
contained  therein  shall,  for any reason,  be held to be  invalid,  illegal or
unenforceable in any respect,  such invalidity,  illegality or  unenforceability
shall not affect any other provision or part of a provision of such  Transaction
Document and the terms of the Shares shall be reformed and  construed as if such
invalid or illegal or unenforceable provision, or part of a provision, had never
been contained herein,  and such provisions or part reformed so that it would be
valid, legal and enforceable to the maximum extent possible.

         3.9.  GOVERNING  LAW;  VENUE.  (a)This  Agreement  shall  be  enforced,
governed and  construed in accordance  with the laws of New York without  giving
effect to choice of laws  principles or conflict of laws  provisions.  Any suit,
action or proceeding  pertaining to this Agreement or any  transaction  relating
hereto shall be brought to the courts of New York in New York,  United States of
America,  and the  undersigned  hereby  irrevocably  consents and submits to the
jurisdiction  of such  courts  for the  purpose  of any such  suit,  action,  or
proceeding.  Purchaser  acknowledges  and agrees that venue  hereunder shall lie
exclusively in New York, United States of America.

         (b)  Purchaser  hereby  waives,  and agrees not to assert  against  the
Company,  or any successor assignee thereof,  by way of motion, as a defense, or
otherwise,  in any such  suit,  action or  proceeding,  (i) any  claim  that the
Purchaser  is not  personally  subject to the  jurisdiction  of the  above-named
courts,  and (ii) to the extent permitted by applicable law, any claim that such
suit, action or proceeding is brought in an inconvenient forum or that the venue
of any such suit,  action or proceeding  is improper or that this  Agreement may
not be enforced in or by such courts.

         3.10.  HEADINGS.  Article,  section  and  subsection  headings  in this
Agreement are included  herein for  convenience  of reference only and shall not
constitute a part of this Agreement for any other purpose.

         3.11.  COUNTERPARTS.  This  Agreement  may be executed in any number of
counterparts,  all of which taken  together  shall  constitute  one and the same
instrument,  and any of the parties hereto may execute this Agreement by signing
any such counterpart.

                                       12
<PAGE>

         3.12.  FURTHER  ASSURANCES.  From and after the date of this Agreement,
upon the request of the Purchaser or the Company,  the Company and the Purchaser
shall execute and deliver such instruments,  documents and other writings as may
be reasonably  necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of the Transaction Documents and the Shares.

         IN WITNESS WHEREOF,  the parties hereto have caused this Stock Purchase
Agreement to be executed as of the date first above written.

                             BEECHPORT CAPITAL, INC.

                              By:
                                    ----------------------------------
                                    Name:           Gary De Laurentiis

                                    Title:          CEO/President
                                                    Beechport Capital

                               By:
                                    ----------------------------------
                                    Name:

                                    Title:

                                    STARZ INVESTMENTS LTD
                                    60 MARKET SQUARE
                                    PO BOX 364
                                    BELIZE CITY, BELIZE

                                       13EXHIBIT 10.19

                                     FORM OF
                             REALITY NETWORKS, INC.
                             2001 STOCK OPTION PLAN

1. Purpose. The purpose of the 2001 Stock Option Plan (the "Plan") is to provide
a means by which Reality Networks, Inc. (the "Company") may attract, reward and
retain the services or advice of former, current or future employees, officers,
directors, agents and consultants, including members of technical advisory
boards and independent contractors of the Company and to provide added
incentives to them by encouraging stock ownership in the Company.

2. Stock Subject to This Plan. Subject to adjustment as provided below and in
Section 6 hereof, the stock subject to this Plan shall consist of shares of the
Company's common stock (the "Common Stock"), and the total number of shares of
Common Stock to be delivered upon the exercise of all options granted under this
Plan shall not exceed one million (1,000,000) shares, as such Common Stock was
constituted on the effective date of this Plan. If any option granted under this
Plan shall expire, be surrendered, exchanged for another option, cancelled or
terminated for any reason without having been exercised in full, the unpurchased
shares subject to such option shall again be available for purposes of this
Plan, including for replacement options which may be granted in exchange for
such surrendered, cancelled or terminated options. Shares issued upon exercise
of options granted under this Plan may be subject to such restrictions on
transfer, repurchase rights or other restrictions as may be determined by the
Board, including without restriction provisions relating to maintenance by the
Company of its status as an "S" corporation as defined in Section 1361 of the
Internal Revenue Code of 1986, as amended (the "Code").

3. Administration. This Plan shall be administered by the Board of Directors of
the Company (the "Board"). The Board may suspend, amend or terminate this Plan
as provided in Section 8.

         3.1 Powers. Subject to the specific provisions of this Plan, the Board
shall have the authority, in its discretion from time to time: (a) to grant the
stock options described in Section 5, including Incentive Stock Options and
Non-Qualified Stock Options, and to designate each option granted as an
Incentive Stock Option or a Non-Qualified Stock Option; (b) to determine, in
accordance with Section 5.1(f) of this Plan, the fair market value of the shares
of Common Stock subject to options; (c) to determine the exercise price per
share of options; (d) to determine the Optionees (as defined herein) to whom,
and the time or times at which, options shall be granted and the number of
shares of Common Stock to be represented by each option; (e) to interpret this
Plan; (f) to prescribe, amend and rescind rules and regulations relating to this
Plan; (g) to determine the terms and provisions of each option granted (which
need not be identical) and, with the consent of the holder thereof, modify or
amend each option; (h) to reduce the exercise price per share of outstanding and
unexercised options; (i) to defer, with the consent of the Optionee, or to
accelerate the exercise date of any option; (j) to waive or modify any term or

<PAGE>
provision contained in any option applicable to the underlying shares of Common
Stock; (k) to authorize any person to execute on behalf of the Company any
instrument required to effectuate the grant of an option previously granted by
the Board; (l) to correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any stock option agreement in the manner and to
the extent it shall deem expedient to carry the Plan into effect; and (m) to
make all other determinations deemed necessary or advisable for the
administration of this Plan. The interpretation and construction by the Board of
any terms or provisions of this Plan, any option issued hereunder or of any rule
or regulation promulgated in connection herewith and all actions taken by the
Board shall be conclusive and binding on all interested parties. The Board may
delegate administrative functions to individuals who are officers or employees
of the Company.

         3.2 Limited Liability. No member of the Board or officer of the Company
shall be liable for any action or inaction of the entity or body, or another
person or, except in circumstances involving bad faith, of himself or herself.
Subject only to compliance with the explicit provisions hereof, the Board may
act in their absolute discretion in all matters related to this Plan. 3.3

         3.3 Securities Exchange Act of 1934. At any time that the Company has a
class of securities registered pursuant to Section 12 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), this Plan shall be administered by
the Board in accordance with Rule 16b-3 adopted under the Exchange Act, as such
rule may be amended from time to time.

         3.4 Committee. The Board by resolution may delegate to a committee of
the Board consisting of one or more members (the "Committee") any or all
authority for administration of the Plan. If a Committee is appointed, all
references to the Board in the Plan shall mean and relate to such Committee,
except that only the Board may amend, modify, suspend or terminate the Plan as
provided in Section 8.

4. Eligibility. The Board may award options to any former, current or future
employee, officer, director, agent or consultant, including any member of
technical advisory boards and any independent contractor, of the Company. Any
party to whom an option is granted under this Plan is referred to as an
"Optionee."

5. Awards. The Board may take the following actions from time to time,
separately or in combination, under this Plan: (a) grant "Incentive Stock
Options", as defined in Section 422 of the Code, to any employee of the Company
or its subsidiaries, as provided in Section 5.1 of this Plan; (b) grant options
other than Incentive Stock Options ("Non-Qualified Stock Options"), as provided
in Section 5.2 of this Plan; (c) grant options to officers, employees and others
in foreign jurisdictions, as provided in Section 5.7 of this Plan; and (d) grant
options in certain acquisition transactions, as provided in Section 5.8 of this
Plan.

         5.1 Incentive Stock Options. Incentive Stock Options shall be subject
to the following terms and conditions:

                                       2
<PAGE>
                  (a) Incentive Stock Options may be granted under this Plan
only to employees of the Company or its subsidiaries, including employees who
are directors.

                  (b) No employee may be granted Incentive Stock Options under
this Plan to the extent that the aggregate fair market value, on the date of
grant, of the Common Stock with respect to which Incentive Stock Options are
exercisable for the first time by that employee during any calendar year, under
this Plan and under any other incentive stock option plan (within the meaning of
Section 422 of the Code) of the Company or any subsidiary, exceeds one hundred
thousand dollars ($100,000). To the extent that any option designated as an
Incentive Stock Option exceeds the one hundred thousand dollars ($100,000)
limit, such option shall be treated as a Non-Qualified Stock Option. In making
this determination, options shall be taken into account in the order in which
they were granted, and the fair market value of the shares of Common Stock shall
be determined as of the time that the option with respect to such shares was
granted.

                  (c) An Incentive Stock Option may be granted under this Plan
to an employee possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company (as determined pursuant to
the attribution rules contained in Section 424(d) of the Code) only if the
exercise price is at least one hundred and ten percent (110%) of the fair market
value of the Common Stock subject to the option on the date the option is
granted, as described in Section 5.1(f) of this Plan, and only if the option by
its terms is not exercisable after the expiration of five (5) years from the
date it is granted.

                  (d) Except as provided in Section 5.5 of this Plan, no
Incentive Stock Option granted under this Plan may be exercised unless at the
time of such exercise the Optionee is employed by the Company or any subsidiary
of the Company and the Optionee has been so employed continuously since the date
such option was granted.

                  (e) Subject to Sections 5.1(c) and 5.1(d) of this Plan,
Incentive Stock Options granted under this Plan shall continue in effect for the
period fixed by the Board, except that no Incentive Stock Option shall be
exercisable after the expiration of 10 years from the date it is granted.

                  (f) The exercise price shall not be less than one hundred
percent (100%) of the fair market value of the shares of Common Stock covered by
the Incentive Stock Option at the date the option is granted. The fair market
value of shares shall be the closing price per share of the Common Stock on the
date of grant as reported on a securities quotation system or stock exchange. If
such shares are not so reported or listed, the Board shall determine the fair
market value of the shares of Common Stock in its discretion.

                  (g) The provisions of clauses (b) and (c) of this Section
shall not apply if either the applicable sections of the Code or the regulations
thereunder are amended so as to change or eliminate such limitations or to
permit appropriate modifications of those requirements by the Board.

                                       3
<PAGE>
         5.2 Non-Qualified Stock Options. Non-Qualified Stock Options shall be
subject to the following terms and conditions:

                  (a) The exercise price may be more or less than or equal to
the fair market value of the shares of Common Stock covered by the Non-Qualified
Stock Option on the date the option is granted, and the exercise price may
fluctuate based on criteria determined by the Board. The fair market value of
shares of Common Stock covered by a Non-Qualified Stock Option shall be
determined by the Board, as described in Section 5.1(f).

                  (b) Unless otherwise established by the Board, any
Non-Qualified Stock Option shall terminate ten (10) years after the date it is
granted.

         5.3 Vesting. To ensure that the Company will achieve the purposes of
and receive the benefits contemplated in this Plan, any option granted to any
Optionee hereunder shall be exercisable according to the following vesting
schedule, except that the Board may waive this vesting schedule, establish a
different vesting schedule or provide for no vesting schedule for such options
as it determines: 5.2 (a) The exercise price may be more or less than or equal
to the fair market value of the shares of Common Stock covered by the
Non-Qualified Stock Option on the date the option is granted, and the exercise
price may fluctuate based on criteria determined by the Board. The fair market
value of shares of Common Stock covered by a Non-Qualified Stock Option shall be
determined by the Board, as described in Section 5.1(f). (b) (c) Unless
otherwise established by the Board, any Non-Qualified Stock Option shall
terminate 10 years after the date it is granted. (d) 5.3 Vesting. To ensure that
the Company will achieve the purposes of and receive the benefits contemplated
in this Plan, any option granted to any Optionee hereunder shall be exercisable
according to the following vesting schedule, except that the Board may waive
this vesting schedule, establish a different vesting schedule or provide for no
vesting schedule for such options as it determines:

         Months of Continuous
         Employment From the                    Portion of Total Option
         Base Date                                That is Exercisable
         ------------------------               -----------------------
         Less than 6 Months                               None
         6 Months or More                         1/36 for each month

         "Base Date" means a reference date established for the specific option
grant and Optionee by the Board.

         5.4 Nontransferability. Each option granted under this Plan and the
rights and privileges conferred hereby may not be transferred, assigned, pledged
or hypothecated in any manner (whether by operation of law or otherwise) other
than by will or by the applicable laws of descent and distribution, shall not be
subject to execution, attachment or similar process and shall be exercisable
during the Optionee's lifetime only by the Optionee. Any purported transfer or
assignment in violation of this provision shall be void.

                                       4
<PAGE>
         5.5 Termination of Options.

                  5.5.1 Generally. Unless otherwise determined by the Board or
specified in the Optionee's Option Agreement, if the Optionee's employment or
service with the Company terminates for any reason other than for cause,
resignation, retirement, disability or death, and unless by its terms the option
sooner terminates or expires, then the Optionee may exercise, for a three (3)
month period, that portion of the Optionee's option which was exercisable at the
time of such termination of employment or service (provided the conditions of
Section 5.6.4 and any other conditions specified in the Option Agreement shall
have been met by the date of exercise of such option).

                  5.5.2 For Cause; Resignation.

                  (a) If an Optionee is terminated for cause or resigns in lieu
of dismissal, any option granted hereunder shall be deemed to have terminated as
of the time of the first act which led or would have led to the termination for
cause or resignation in lieu of dismissal, and such Optionee shall thereupon
have no right to purchase any shares of Common Stock pursuant to the exercise of
such option, and any such exercise shall be null and void. Termination for
"cause" shall include (i) the violation by the Optionee of any reasonable rule
or policy of the Board or the Optionee's superiors or the chief executive
officer or the President of the Company that results in damage to the Company or
which, after notice to do so, the Optionee fails to correct within a reasonable
time; (ii) any willful misconduct or gross negligence by the Optionee in the
responsibilities assigned to him or her; (iii) any willful failure to perform
his or her job as required to meet the objectives of the Company; (iv) any
wrongful conduct of an Optionee which has an adverse impact on the Company or
which constitutes a misappropriation of the assets of the Company; (v)
unauthorized disclosure of confidential information; or (vi) the Optionee's
performing services for any other company or person which competes with the
Company while he or she is employed by or provides services to the Company,
without the prior written approval of the chief executive officer of the
Company. "Resignation in lieu of dismissal" shall mean a resignation by an
Optionee of employment with or service to the Company if (i) the Company has
given prior notice to such Optionee of its intent to dismiss the Optionee for
circumstances that constitute cause, or (ii) within two (2) months of the
Optionee's resignation, the chief operating officer or the chief executive
officer of the Company or the Board determines, which determination shall be
final and binding, that such resignation was related to an act which would have
led to a termination for cause.

                  (b) If an Optionee resigns from the Company, the right of the
Optionee to exercise his or her option shall be suspended for a period of two
(2) months from the date of resignation, unless the President or chief executive
officer of the Company or the Board determines otherwise in writing. Thereafter,
unless there is a determination that the Optionee resigned in lieu of dismissal,
the option may be exercised at any time prior to the earlier of (i) the
expiration date of the option (which shall have been similarly suspended) or
(ii) the expiration of three months after the date of resignation, for that
portion of the Optionee's option which was exercisable at the time of such
resignation (provided the conditions of Section 5.6.4 and any other conditions
specified in the Option Agreement shall have been met at the date of exercise of
such option).

                                       5
<PAGE>
                  5.5.3 Retirement. Unless otherwise determined by the Board, if
an Optionee's employment or service with the Company is terminated with the
Company's approval for reasons of age, the Option may be exercised at any time
prior to the earlier of (a) the expiration date of the option or (b) the
expiration of three months after the date of such termination of employment or
service, for that portion of the Optionee's option which was exercisable at the
time of such termination of employment or service (provided the conditions of
Section 5.6.4 and any other conditions specified in the Option Agreement shall
have been met at the date of exercise of such option).

                  5.5.4 Disability. Unless otherwise determined by the Board, if
an Optionee's employment or relationship with the Company terminates because of
a permanent and total disability (as defined in Section 22(e)(3) of the Code),
the option may be exercised at any time prior to the earlier of (a) expiration
date of the option or (b) the expiration of twelve (12) months after the date of
such termination, for up to the full number of shares of Common Stock covered
thereby, including any portion not yet vested (provided the conditions of
Section 5.6.4 and any other conditions specified in the Option Agreement shall
have been met by the date of exercise of such option).

                  5.5.5 Death. Unless otherwise determined by the Board, in the
event of the death of an Optionee while employed by or providing service to the
Company, the option may be exercised at any time prior to the earlier of (a) the
expiration date of the option or (b) the expiration of twelve (12) months after
the date of death by the person or persons to whom such Optionee's rights under
the option shall pass by the Optionee's will or by the applicable laws of
descent and distribution, for up to the full number of shares of Common Stock
covered thereby, including any portion not yet vested (provided the conditions
of Section 5.6.4. and any other conditions specified in the Option Agreement
shall have been met by the date of exercise of such option).

                  5.5.6 Extension of Exercise Period Applicable to Termination.
The Board, at the time of grant or at any time thereafter, may extend the three
(3) month and twelve (12) month exercise periods to any length of time not
longer than the original expiration date of the option, and may increase the
portion of an option that is exercisable, subject to such terms and conditions
as the Board may determine; provided, that any extension of the exercise period
or other modification of an Incentive Stock Option shall be subject to the
written agreement and acknowledgment by the Optionee that the extension or
modification disqualifies the option as an Incentive Stock Option.

                  5.5.7 Failure to Exercise Option. To the extent that any
portion of the option of any deceased Optionee or of any Optionee whose
employment or service terminates is not exercised within the applicable period,
all rights to purchase shares of Common Stock pursuant to such option shall
cease and terminate.

                                       6
<PAGE>
                  5.5.8 Leaves. For purposes of this Section 5.5, with respect
to Incentive Stock Options, employment shall be deemed to continue while the
Optionee is on military leave, sick leave or other bona fide leave of absence
(as determined by the Board) in accordance with the policies of the Company.

         5.6 Exercise.

                  5.6.1 Procedure . Subject to the provisions of Section 5.3
above, each option may be exercised in whole or in part; provided, however, that
no fewer than fifty (50) shares (or the remaining shares then purchasable under
the option, if less than fifty (50) shares) may be purchased upon any exercise
of any option granted hereunder and that only whole shares will be issued
pursuant to the exercise of any option (the number of fifty (50) shares shall
not be changed by any transaction or action described in Section 6 unless the
Board determines that such a change is appropriate). Options shall be exercised
by delivery to the Secretary of the Company or his or her designated agent of
notice of the number of shares with respect to which the option is exercised,
together with payment in full of the exercise price.

                  5.6.2 Payment. Payment of the option exercise price shall be
made in full at the time the notice of exercise of the option is delivered to
the Secretary of the Company or his or her designated agent and shall be in cash
or bank certified or cashier's check for the shares of Common Stock being
purchased. The Board may determine at the time the option is granted for
Incentive Stock Options, or at any time before exercise for Non-Qualified Stock
Options, that additional forms of payment will be permitted, including without
limitation payment through irrevocable instructions to a stock broker to deliver
the amount of sales proceeds necessary to pay the appropriate exercise price and
withholding tax obligations, all in accordance with applicable governmental
regulations.

                  5.6.3 Withholding. Prior to the issuance of shares of Common
Stock upon the exercise of an option, the Optionee shall pay to the Company the
amount of any applicable federal, state or local tax withholding obligations.
The Company may withhold any distribution in whole or in part until the Company
is so paid. The Company shall have the right to withhold such amount from any
other amounts due or to become due from the Company, as the case may be, to the
Optionee, including salary (subject to applicable law) or to retain and withhold
a number of shares having a market value not less than the amount of such taxes
required to be withheld by the Company to reimburse it for any such taxes and
cancel (in whole or in part) any such shares so withheld.

                  5.6.4 Conditions Precedent to Exercise. The Board may
establish conditions precedent to the exercise of any option, which shall be
described in the relevant Option Agreement.

         5.7 Foreign Qualified Grants. Options under this Plan may be granted to
officers and employees of the Company and other persons described in Section 4
who reside in foreign jurisdictions as the Board may determine from time to
time. The Board may adopt such supplements to the Plan as are necessary to
comply with the applicable laws of such foreign jurisdictions and to afford
Optionees favorable treatment under such laws; provided, however, that no award
shall be granted under any such supplement on terms which are more beneficial to
such Optionees than the terms permitted by this Plan.

                                       7
<PAGE>
         5.8 Corporate Mergers, Acquisitions, Etc. The Board may also grant
options under this Plan having terms, conditions and provisions that vary from
those specified in this Plan provided that such options are granted in
substitution for, or in connection with the assumption of, existing options
granted, awarded or issued by another corporation and assumed or otherwise
agreed to be provided for by the Company pursuant to or by reason of a
transaction involving a corporate merger, consolidation, acquisition of property
or stock, reorganization or liquidation to which the Company is a party.

         5.9 Holding Period. Unless otherwise determined by the Board, if a
person subject to Section 16 of the Exchange Act exercises an option within six
(6) months of the date of grant of the option, the shares of Common Stock
acquired upon exercise of the option may not be sold until six months after the
date of grant of the option.

         5.10 Option Agreements. Options granted under this Plan shall be
evidenced by written stock option agreements ("Option Agreements"), which shall
contain such terms, conditions, limitations and restrictions as the Board shall
deem advisable and which are consistent with this Plan. All Option Agreements
shall include or incorporate by reference the applicable terms and conditions
contained in this Plan.

6. Adjustments Upon Changes in Capitalization.

         6.1 Stock Splits, Capital Stock Adjustments. The aggregate number and
class of shares for which options may be granted under this Plan, the number and
class of shares covered by each outstanding option and the exercise price per
share thereof (but not the total price), and each such option, shall all be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock of the Company resulting from a stock split, stock
dividend or consolidation of shares or any like capital stock adjustment.

         6.2 Effect of Merger, Sale of Assets, Liquidation or Dissolution.

                  6.2.1 Mergers, Sale of Assets, Other Transactions. In the
event of a merger, consolidation or plan of exchange to which the Company is a
party or a sale of all or substantially all of the Company's assets (each, a
"Transaction"), the Board, in its sole discretion and to the extent possible
under the structure of the Transaction, shall select one of the following
alternatives for treating outstanding options under this Plan:

                  (a) Outstanding options shall remain in effect in accordance
with their terms;

                  (b) Outstanding options shall be converted into options to
purchase stock in the corporation that is the surviving or acquiring corporation
in the Transaction. The amount, type of securities subject thereto and exercise
price of the converted options shall be determined by the Board of the Company,
taking into account the relative values of the companies involved in the
Transaction and the exchange rate, if any, used in determining shares of the
surviving corporation to be issued to holders of shares of the Company. Unless
otherwise determined by the Board, the converted options shall be vested only to
the extent that the vesting requirements relating to options granted hereunder
have been satisfied; or

                                       8
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                  (c) The Board shall provide a thirty (30) day period prior to
the consummation of the Transaction during which outstanding options shall be
exercisable to the extent vested and, if so determined by the Board in its
discretion, to the extent of the next portion of the option, if any, that would
vest and be exercisable after the consummation of the Transaction. Upon the
expiration of such thirty (30) day period, all unexercised options shall
immediately terminate.

                  6.2.2. Liquidation; Dissolution. In the event of the
liquidation or dissolution of the Company, options shall be treated in
accordance with Section 6.2.1(c).

         6.3 Fractional Shares. In the event of any adjustment in the number of
shares covered by any option, any fractional shares resulting from such
adjustment shall be disregarded and each such option shall cover only the number
of full shares resulting from such adjustment.

         6.4 Determination of Board to Be Final. All adjustments under this
Section 6 shall be made by the Board, and its determination as to what
adjustments shall be made, and the extent thereof, shall be final, binding and
conclusive. Unless an Optionee agrees otherwise, any change or adjustment to an
Incentive Stock Option shall be made, if possible, in such a manner so as not to
constitute a "modification," as defined in Section 424(h) of the Code, and so as
not to cause the Optionee's Incentive Stock Option to fail to continue to
qualify as an Incentive Stock Option.

7. Securities Regulations.

         7.1 Compliance with Law. Shares of Common Stock shall not be issued
with respect to an option granted under this Plan unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, any
applicable state securities laws, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, applicable laws
of foreign countries and other jurisdictions and the requirements of any
quotation service or stock exchange upon which the shares may then be listed,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance, including the availability of an exemption from
registration for the issuance and sale of any shares hereunder. The inability of
the Company to obtain, from any regulatory body having jurisdiction, the
authority deemed by the Company's counsel to be necessary for the lawful
issuance and sale of any shares hereunder or the unavailability of an exemption
from registration for the issuance and sale of any shares hereunder shall
relieve the Company of any liability with respect of the nonissuance or sale of
such shares as to which such requisite authority shall not have been obtained.

                                       9
<PAGE>
         7.2 Investment Purpose. As a condition to the exercise of an option,
the Company may require the Optionee to represent and warrant at the time of any
such exercise that the shares of Common Stock are being purchased only for
investment and without any present intention to sell or distribute such shares
if, in the opinion of counsel for the Company, such a representation is required
by any relevant provision of the aforementioned laws. The Company may place a
stop-transfer order against any shares of Common Stock on the official stock
books and records of the Company, and a legend may be stamped on stock
certificates to the effect that the shares of Common Stock may not be pledged,
sold or otherwise transferred unless an opinion of counsel is provided
(concurred in by counsel for the Company) stating that such transfer is not in
violation of any applicable law or regulation. The Board may also require such
other action or agreement by the Optionees as may from time to time be necessary
to comply with the federal and state securities laws. THIS PROVISION SHALL NOT
OBLIGATE THE COMPANY TO UNDERTAKE REGISTRATION OF THE OPTIONS OR STOCK
THEREUNDER.

8. Amendment and Termination.

         8.1 Plan. The Board may at any time suspend, amend or terminate this
Plan, provided that, except as set forth in Section 6, the approval of the
Company's shareholders is necessary within twelve (12) months before or after
the adoption by the Board of any amendment that will:

                  (a) increase the number of shares of Common Stock that are to
be reserved for the issuance of options under this Plan;

                  (b) permit the granting of stock options to a class of persons
other than those presently permitted to receive stock options under this Plan;
or

                  (c) require shareholder approval under applicable law,
including Section 16(b) of the Exchange Act.

         8.2 Options. Subject to the requirements of Section 422 of the Code
with respect to Incentive Stock Options and to the terms and conditions and
within the limitations of this Plan, the Board may modify or amend outstanding
options granted under this Plan. The modification or amendment of an outstanding
option shall not, without the consent of the Optionee, impair or diminish any of
his or her rights or any of the obligations of the Company under such option.
Except as otherwise provided in this Plan, no outstanding option shall be
terminated without the consent of the Optionee. Unless the Optionee agrees
otherwise, any changes or adjustments made to outstanding Incentive Stock
Options granted under this Plan shall be made in such a manner so as not to
constitute a "modification," as defined in Section 424(h) of the Code, and so as
not to cause any Incentive Stock Option issued hereunder to fail to continue to
qualify as an Incentive Stock Option as defined in Section 422(b) of the Code.

         8.3 Automatic Termination. Unless sooner terminated by the Board, this
Plan shall terminate ten years from the date on which this Plan is adopted by
the Board. No option may be granted after such termination or during any
suspension of this Plan. The amendment or termination of this Plan shall not,
without the consent of the Optionee, alter or impair any rights or obligations
under any option theretofore granted under this Plan.

                                       10
<PAGE>
9. Miscellaneous.

         9.1 Time of Granting Options. The date of grant of an option shall, for
all purposes, be the date on which the Company completes the required corporate
action relating to the grant of an option; the execution of an Option Agreement
and the conditions to the exercise of an option shall not defer the date of
grant.

         9.2 No Status as Shareholder. Neither the Optionee nor any party to
which the Optionee's rights and privileges under the option may pass shall be,
or have any of the rights or privileges of, a shareholder of the Company (a
"Shareholder") with respect to any of the shares of Common Stock issuable upon
the exercise of any option granted under this Plan unless and until such option
has been exercised and the issuance (as evidenced by the appropriate entry on
the books of the Company or duly authorized transfer agent of the Company) of
the stock certificate evidencing such shares.

         9.3 Status as an Employee. Nothing in this Plan or in any option
granted pursuant to this Plan shall confer upon any Optionee any right to
continue in the employ of the Company, or to interfere in any way with the right
of the Company to terminate his or her employment or other relationship with the
Company at any time.

         9.4 Reservation of Shares. The Company, during the term of this Plan,
at all times will reserve and keep available such number of shares of Common
Stock as shall be sufficient to satisfy the requirements of this Plan.

10. Effectiveness of This Plan. This Plan shall become effective upon adoption
by the Board so long as it is approved by the Company's shareholders any time
within twelve (12) months after the adoption of this Plan. No option granted
under this Plan to any officer or director of the Company shall become
exercisable, however, until the Plan is approved by the shareholders, and any
options granted prior to such approval shall be conditioned upon and are subject
to such approval.

         Adopted by the Board of Directors as of the 28th day of September,
2001.

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