Document:

SPECIAL VEHICLE MANUFACTURER CONVERTERS AGREEMENT

THIS AGREEMENT is executed by and between General Motors Corporation,
a Delaware corporation whose business office is located in Detroit,
Michigan (hereinafter 'GM') and L.A. West, Inc, located at LaGrange,
IN (hereinafter 'Manufacturer'), effective Oct. 16, 2000.

WHEREAS, GM is engaged in the business of assembling and marketing
complete and incomplete motor vehicles, including Chevrolet and GMC
trucks and truck chassis (hereafter 'Vehicles'); and

WHEREAS, Manufacturer is engaged in the business of manufacturing and
marketing special bodies and equipment installed on or in Vehicles
(Vehicles modified by Manufacturer are hereinafter 'End Products');
and

WHEREAS, independent authorized Chevrolet and GMC dealers
(hereinafter 'Dealers') may acquire End Products from
Manufacturer; and

WHEREAS, GM and Manufacturer desire that GM sell Vehicles to
Manufacturer on a restricted basis to be made into End Products by
Manufacturer for resale to Dealers so as to facilitate the business
operations of GM, its Dealers, and Manufacturer, including the
accommodation of the parties' production schedules to the extent
feasible; and

WHEREAS, implementation of this Agreement will require, among other
things, the establishment and maintenance of an arrangement between
Manufacturer and a financial institution to finance the purchase of
and facilitate the payment for the Vehicles from GM;

NOW, THEREFORE, in reliance on and in consideration of the premises
and the mutual promises contained in this Agreement, the parties
hereby agree as follows:

Article 1: Agreement to Sell and Purchase Vehicles

1.1	GM agrees to sell to Manufacturer, and Manufacturer agrees to
purchase from GM, Vehicles subject to all of the terms and
conditions of this Agreement. GM has provided Manufacturer with a
copy of its current Special Vehicle Manufacturer Converters
Program Manual (hereinafter 'Manual'), setting forth the polices
and procedures Manufacturer is required to follow in the
processing of Vehicles hereunder, including policies and
procedures for ordering Vehicles, and repair of transportation
damage and defective parts. GM reserves the right to change the
Manual in writing at any time.  The Manual is hereby incorporated
by reference into this Agreement, and all of the provisions now
or hereafter contained in the Manual shall be deemed to be part
and parcel of this Agreement. Manufacturer shall follow the
policies and procedures set forth in the Manual in the
performance of its obligations hereunder.

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Article 2: Vehicle Order; Prices; Financing

2.1	Manufacturer shall submit orders to GM for Vehicles
electronically. There are numerous factors which affect the
availability of Vehicles. GM reserves to itself absolute
discretion in accepting orders and distributing Vehicles, and its
judgment in such matters shall be final. Manufacturer's orders
for Vehicles are not binding or GM until accepted by GM, and may
be canceled by Manufacturer until that time. An order is accepted
by GM when the Vehicle is released to production.

2.2	Prices and other terms of sale applicable to Vehicles are those
set forth in the Chevrolet and GMC Data Book or the Manual. Such
prices may be changing by GM at any time. Except as otherwise
provided by GM in writing, such changes will apply to Vehicles
not shipped at the time the changes are effective. Vehicles
ordered under this Agreement are not eligible for any price
protection allowance that otherwise may have been available on
order submitted directly by a Dealer to GM.

2.3	Manufacturer shall establish and maintain a financing arrangement
between Manufacturer and a financial institution for the purpose
of financing the purchase of and facilitating the payment for the
Vehicles from GM. The financial institution must be satisfactory
to GM. Manufacturer shall provide to GM a copy of the Agreement
between Manufacturer and its financial institution. Manufacturer
shall notify GM in advance of any proposed changes in its
financial arrangement for review and acceptance by GM.
Manufacturer and its financial institution shall furnish GM with
a statement as to the maximum number of Vehicles that will be
financed by such financial institution at particular time. This
maximum number of Vehicles is referred to in this Agreement and
the Manual as the 'Credit Limit.' Failure of Manufacturer to
obtain or retain a Vehicle inventory financing arrangement in an
amount satisfactory to GM and with a financial institution
acceptable to GM will result in termination of this Agreement.

2.4	Except for the purpose of financing Manufacturer's acquisition of
Vehicles hereunder, Manufacturer shall not grant, nor cause or
permit to arise, any security, lien, or other interest in any
part of an End Product (other than a special body or equipment
installed thereon by Manufacturer) without GM's prior written
approval. Manufacturer shall promptly reimburse GM for any money
paid by GM to discharge any such adverse lien or interest, if it
elects or is required to do so.

2.5	GM shall have the right, with or without advance notice, to
examine Vehicles and Manufacturer's records in respect thereof at
any time during regular business hours.

Article 3:  Handling of Vehicles

3.1	Upon receipt of Vehicles, Manufacturer shall inspect each Vehicle

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for damage or shortage and shall accept custody of, and execute
an appropriate receipt for, each Vehicle.

3.2	Manufacturer shall keep and maintain each Vehicle delivered to
it in safe storage (including, as appropriate, in a defined area
enclosed by an adequate fence and protected to the extent
appropriate in that vicinity by security personnel).
Manufacturer shall not store any Vehicle at any location not
identified by address on Exhibit A.  Manufacturer's obligation
is to ensure that Vehicles do not deteriorate from a like new
condition in appearance or quality during the period of
Manufacturer's control.

3.3	Manufacturer shall have corrected all damage or shortages noted
upon receipt. All repairs must be performed by an authorized
Chevrolet or GMC dealer.

Article 4: Delivery; Title and Risk of Loss; Insurance

4.1	GM will select the assembly and shipping locations and the modes
of transportation for delivery of Vehicles to Manufacturer. Risk
of loss shall pass to Manufacturer upon delivery by GM to a
carrier (F.O.B. GM's assembly plant), and actual and legal title
similarly pass to Manufacturer but with restrictions for mutual
benefit as further provided in this Agreement. Delivery shall be
to Manufacturer's business premises identified on Exhibit A,
unless GM decides another location is appropriate. Any claims for
loss or damage to a Vehicle while in the possession of a carrier
must be noted on the delivery receipt and submitted to GM.

4.2	Manufacturer's purchase and possession of Vehicles hereunder is a
restrictive purchase and possession for mutual benefit, and
Manufacturer acknowledges that this Agreement is intended to
result in the distribution of quality End Products only to GM's
Dealer network for the particular Vehicle brand. The
Manufacturer's Statement or Certificate of Origin for each
Vehicle, prepared by GM, will not be delivered to Manufacturer,
but will be held by GM until the End Product is sold by
Manufacturer to a Dealer. Following an agreement by Manufacturer
with a Dealer for the Dealer's purchase of an End Product,
Manufacturer shall notify GM.  Upon such notice and payment to GM
by the dealer for the involved Vehicle, GM will credit
Manufacturer for the original cost of the Vehicle and charge the
Dealer for that Vehicle. Upon receipt of payment, CM will issue
the MSO to and in the name of such Dealer.

4.3	Manufacturer shall, absent written agreement to the contrary, be
responsible for delivery of End Products to Dealers, and for
invoicing and collecting for Its work on or in Vehicles.
Manufacturer acknowledges that the date of GM's charge to a
dealer for a Vehicle has significance for purposes of price
promotion, inventory charges and other purposes, and to the
extent possible, Manufacturer shall ship the appropriate End
Product promptly upon a dealers purchase of such End Product.
Manufacturer agrees to promptly negotiate a reasonable settlement
in good faith with any dealer which incurs undue delay in
delivery of an End Product.

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4.4	Manufacturer hereby indemnifies and holds GM harmless from and
against any and all claim, cause of action, loss, damage, or
expense, including reasonable attorneys' fees and expenses
incurred from any litigation, arising from or relating to any
claim for injury or property damage in connection with the
manufacture or marketing of End Products or with the use,
operation or storage of any Vehicle while Manufacturer has title,
custody, possession or risk of loss under this Agreement.

4.5 	Manufacturer shall obtain and maintain pursuant to the terms of
this Agreement, at its sole expense, the following types of
insurance coverage, with minimum limits as set forth below:

1.	Comprehensive General Liability coverage, including
products, completed operations and contractual liability,
at a limit acceptable to GM but not less than $10,000,000
per occurrence for personal injury and property damage
combined. .
2.	Comprehensive Automobile Liability covering all owned,
hired and non-owned vehicles at  a limit of not less than
$5,000,000 per occurrence for personal injury and property
damage, combined, including all statutory coverages for all
states of operation.
3.	Workers Compensation in the statutory limits for all states
of operation.
4.	Employers Liability in limits of not less than $1,000,000
for all states of operation.
5.	Garage Keepers Legal Liability on a Direct Primary coverage
basis including comprehensive and collision coverage at a
limit acceptable to GM. Coverage should apply to all
vehicles while in the care, custody or control of
Manufacturer for any cause of physical damage on a primary
basis without regard to negligence. (This coverage should
be maintained separate and distinct from coverage available
under the Manufacturer's finance plan.)

Manufacturer shall provide GM with a certificate of insurance and
insurance policy evidencing GM as an additional insured for all
above-mentioned coverages except Workers Compensation and
Employer Liability for all activities connected with this
Agreement. and stating that the above-listed insurance is primary
to ..Y coverage that may be available to GM. Manufacturer shall
provide at least thirty days' prior written notice to GM of
cancellation modification or material change to any policy. Such
certificate shall be in a form acceptable to, and underwritten
by, insurance company(ies) satisfactory to GM. The purchase of
appropriate insurance coverage by Manufacturer or the furnishing
of certificate(s) of insurance shall not release Manufacturer
from its respective obligations or liabilities under this
Agreement. All coverages shall be maintained throughout the
duration of this Agreement with the exception of Comprehensive
General Liability coverage referenced In Paragraph 1 above which
shall be maintained for a period of ten years after termination
of this Agreement.

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Article 5: Upfitting; Standard of Workmanship; Compliance With
Laws

5.1	Manufacturer shall not alter any Vehicle, install any body or
equipment thereon, or remove any Vehicle from its business
premises where originally delivered prior to:
a.	Approval by GM of Its financial institution for demonstrators
and unassigned speculative inventory (see GMAC MFP Agreement
parameters); or
b.	For all other Vehicles, sale of such Vehicle(s) by
Manufacturer to a dealer as provided in this Agreement and
notice thereof to GM.

5.2	To the extent possible, Manufacturer shall process Vehicles
delivered under the terms of this Agreement on a first-in, first-
out basis.

5.3 	Manufacturer shall use its best skills and Judgment and shall
perform all work in accordance with the highest professional
standards of workmanship, and it shall exercise due care to
ensure that all work it performs is free from defects in design,
materials, and workmanship.  Manufacturer shall further employ or
retain persons with appropriate technical competence for the work
being performed. GM may provide technical information to assist
Manufacturer, but Manufacturer will control and bear rail
responsibility for the design and manufacture of the End
Product..

Manufacturer acknowledges that the reputation of GM and its
products may be affected by the quality, reliability, and
durability of Manufacturer's products and its conduct in the
marketplace. GM may provide Manufacturer with process guidelines
and other information for improving End Product quality,
reliability and durability, and provide to Manufacturer a
periodic assessment of its processes. Manufacturer is Responsible
for selecting and implementing processes which meet customer
expectations for quality, reliability, and durability.

Manufacturer agrees to maintain a viable dealer and consumer
relations activity, to offer a competitive warranty on its work
to dealers and consumers equal in duration and every other aspect
to the applicable chassis model year new Vehicle warranty, and to
maintain through dealer. and others at Manufacturer's discretion,
a system of convenient Warranty corrections for consumers, and to
make available to dealers service replacement parts with number
identification systems (this shall hereinafter he referred to as
'Parts Number Identification') for Warranty and non-Warranty
service for a reasonable period of time after End Products are
sold to Consumers.

5.4	Manufacturer shall comply with all federal, state, and local
laws, regulations, and standards in its performance of its work.
Manufacturer acknowledges its legal responsibility insofar as it
is the manufacturer of an End Product and agrees to certify and
warrant its contribution to the End Product. Further,

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Manufacturer agrees to cooperate with GM in achieving compliance
with applicable laws and regulations.  Manufacturer shall
maintain a copy of the 'Document for Incomplete Vehicles'
supplied by GM with certain Vehicles and a record of the name and
address of the first retail purchaser of each End Product and
shall make such information available to GM at the time and in
the manor specified by GM.

5.5	Manufacturer shall promptly notify GM of any real or potential
defect in the End Products.

Article 6: New Vehicle Preparation: Vehicle Warranty and Campaign
Corrections by Manufacturer

6.1	Manufacturer shall have performed, by an authorized Chevrolet or
GMC dealer needed warranty and special policy repairs and
adjustments, and campaign corrections directed by GM. All such
services performed on Chevrolet and GMC vans only may be
performed prior to upfitting, provided all Federal Motor Vehicle
Safety Standards are left intact in upfitting.  All Such services
performed on models other than Chevrolet or GMC vans shall be
performed after upfitting but before the End Products leave
Manufacturer's possession.  Manufacturer shall make End Products
available to such dealer in such fashion as to facilitate the
performance of services.

6.2	The written new Vehicle Warranty provided with each Vehicle
contains the only GM Warranty applicable to such Vehicle, and GM
neither assumes nor authorizes anyone to assume for it any other
obligation or liability in connection with such Vehicle. In
particular, GM does not assume. and hereby disclaims, any
warranty or other liability or obligation, INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
AND ANY PRODUCT LIABILITIES BASED UPON NEGLIGENCE OR STRICT'
LIABILITY, to Manufacturer, except if Manufacturer becomes an
owner of a Vehicle, and then only to the extent of the written
new Vehicle warranty. Manufacturer shall ensure that General
Motor' written new Vehicle warranty and other product information
intended for the consumer are placed in the End Product and
remain with it when it leaves the custody of the Manufacturer.

Article 7: Recall Campaigns; Product Liability

7.1	In the event of a recall campaign by GM necessitated by a defect
or nonconformity in a Vehicle for which Manufacturer is
responsible, in whole or in part, Manufacturer shall reimburse GM
the direct costs. expenses and all penalties which may be
incurred, with the understanding that the portion of such direct
costs, expenses and penalties to be borne by Manufacturer shall
be proportional to the degree to which the defect or
nonconformity of Manufacturer's work caused the recall.  Prior to
GM performing any recall campaign for which GM expects
reimbursement, GM and Manufacturer will exchange information and
will consult with each other with respect to the need and
advisability thereof; provided, however, that the final decision
as to whether or not to have such a recall shall in every
instance rest with General Motors.

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7.2	With respect to any actual, potential or threatened claim,
action, or proceeding (hereinafter "Claim''), regardless of
whether such Claim is based on strict liability, negligence,
warranty, or other theory (hereinafter "Product Liability").
relating to any aspect of Manufacturer's work, each of the
parties to this Agreement shall (a) communicate and cooperate
with the other and, If necessary, the appropriate insurance
carrier, to the fullest extent reasonably possible in
investigation of the facts and circumstances surrounding the
Claim and in any litigation involving the Claim; (b) refrain from
taking any position adverse to the interests of the other party
to this Agreement; and (c) not, except in enforcement of the
rights hereunder, Institute any claim, action, or proceeding,
whether by cross-complaint, third party compliant, interpleader,
or otherwise, against the other party to this Agreement.

7.3	With respect to any Product Liability or related liability,
costs, and expense under this Article, the following are
applicable:

a.	Any settlement or payment to satisfy an adverse judgment in
any Claim shall be apportioned to GM and Manufacturer based
upon such judgment or, if there is no judgment or it is not
definitive as to causation, each party's liability and
b.	GM and Manufacturer shall bear their respective costs and
expenses incurred in connection with cooperation in
investigation and litigation, including those costs incurred
for the production of documents and answering of other
discovery.

7.4	In the event a Product Liability Claim is brought against GM or
Manufacturer relating to the other's work, each party shall
promptly forward to the other party every Summons and Complaint
and every other Court document received by it; and if the other
party is named a party in the action, in no event shall either
party take any action toward settlement without prior
notification to the other party of such proposed action followed
by a reasonable period of time to allow the other party to
respond to such notification.

	Article 8: Indemnification; Dispute Resolution

8.1	In the event a suit or other proceeding is commenced relating to
any aspect of Manufacturer's work, including any portions of a
Vehicle affected by Manufacturer's work, Manufacturer agrees to
hold GM harmless and indemnify GM completely from Product
Liability losses. Each party shall retain the right to conduct
its own defense to such suit or proceeding.

8.2	In the event of any breach or of any obligation contained in this
Agreement the breaching party shall notify the nonbreaching party

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for any damage, costs, and expense, including reasonable attorney
fees, suffered by the nonbreaching party due to the breach.

8.3	If It cannot be determined whether, or the extent to which, a
settlement of or judgment in a Claim or a recall campaign was
based on an aspect of Manufacturer's work or on another part in a
Vehicle that plaintiff alleged was defective, then either party
may submit the matter to binding arbitration in order to
determine the relative percentage allocable to each party. Such
disputes shall be finally settled under the Rules of the American
Arbitration Association, provided that the arbitration shall not
occur until after the conclusion of the case. There shall be
three (3) arbiters, one appointed by GM and one appointed by
Manufacturer, with the third appointed by the other two. Costs of
the arbitration shall be shared equally.

Article 9: Termination: U.S. Distribution

9.1	This Agreement may be terminated by either party at any time by
written notice thereof to the other party. Written notice of
termination shall be delivered personally or by certified mail,
return receipt requested; termination shall be effective at the
end of the third business day after the day of receipt of such
written notice or at such later time as may be set forth in such
notice.

9.2	If this Agreement Is terminated by GM, Manufacturer may pursue
outright or have a dealer purchase outright any or all Vehicles
in Manufacturer's custody. The net purchase price for each such
Vehicle shall be the dealer invoice price at which GM would have
sold such Vehicle to a dealer on the date of GM's invoice to
Manufacturer inclusive of any discounts or allowances (including
model close-out allowance, if applicable) that might have been
available to such dealer. Unless otherwise agreed in writing,
such purchase price will be paid to GM by certified check or bank
check delivered not later than the aforesaid next business day.
In the alternative, GM shall retake possession of Vehicle in
Manufacturer's custody and credit Manufacturer for Manufacturer's
original purchase price from GM.

9.3	If this Agreement is terminated by Manufacturer, Manufacturer
shall, prior to the effective date of termination, purchase
outright or have a dealer purchase outright all Vehicles in its
custody in accordance with the terms of Section 9.2; provided,
however, that GM at its option may retake possession of such
Vehicle, or any of them, and (a) credit Manufacturer for
Manufacturer's original purchase price from GM, and (b) charge
Manufacturer the lesser of the expense incurred by GM to
redistribute such Vehicles or destination charge applicable to
similar units delivered to any authorized Chevrolet or GMC dealer
near Manufacturer's business premises.

9.4	GM shall have a reasonable period, and in any event not less than
thirty days from the date of termination, in which to remove
Vehicles from Manufacturer's premises, an Manufacturers
obligation under this Agreement in connection with safekeeping
vehicles in its possession shall continue during such period.

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9.5	If GM retakes possession of any Vehicles under this Article, the
terms of this Agreement shall not apply to any Vehicle upon which
Manufacturer has installed bodies or other equipment, or that are
not in a new and unused condition or have missing parts or
components.

9.6	If this Agreement is terminated, any and all funds in the
Manufacturer's Merchandising Reserve account, addressed in
Article 10 herein, shall revert to GM.

9.7	Vehicles sold to Manufacturer under this Agreement are for
distribution in the 50 United States, and the District of
Columbia ("U.S.") or Puerto Rico.  It is a material breach of
this Agreement for Manufacturer to sell, cause or arrange to be
sold End Products or new motor vehicles for resale or principal
use outside the U.S. or Puerto Rico.

Article 10: Merchandising Reserve

10.1	To assist Manufacturer with merchandising and marketing expenses
resulting from sales of eligible Chevrolet or GMC Vehicles, GM
may in its sole discretion provide a merchandising reserve in an
amount to be determined each model year (hereinafter the
"Merchandising Reserve").

10.2 This Merchandising Reserve will be accumulated by GM for any
eligible Vehicles released to dealers from September 1 through
August 31 of each year, until further notice. The Merchandising
Reserve fund will be paid to the Manufacturer's open account the
following January.

10.3	Until the Merchandising Reserve is actually paid to Manufacturer,
it remains the sole property of GM. Also GM has the right to
recoup. setoff or deduct from the Merchandising Reserve any
amounts due or to become due (whether matured, contingent or
liquidated) from Manufacturer to GM or its subsidiaries. If this
Agreement is terminated, any and all funds in the Merchandising
Reserve account shall not be paid to Manufacturer.

10.4	Merchandising Reserve funds are intended to assist Manufacturer
with its merchandising of eligible Vehicles to Chevrolet and GMC
dealers. As a condition to receipt of these funds annually,
Manufacturer must spend not less than an equal amount to the
reserve on such merchandising. GM may request receipts to support
such payments.
Article 11; General Terms

11.1	No waiver or modification of any term of this Agreement or
creation of additional terms shall be valid or binding upon GM
unless made in writing executed on its behalf by a Manager in
General Motor's Fleet & Commercial operations. The failure by

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either party to enforce any term of this Agreement at any future
time shall not be considered a waiver of any right or remedy
available hereunder or by law.

11.2	This Agreement does not constitute either party the agent or
legal representative of the other for any purpose whatsoever.
This Agreement is the sole and complete agreement of the parties.
and there are no other agreements between them, either oral or
written. respecting the subject matter hereof, which are not
superseded by this Agreement insofar as concerns Vehicles
delivered hereunder.

11.3	This Agreement shall be governed by and construed in accordance
with the laws of the State of Michigan as if entirely performed
therein.

11.4	Notices In respect of any matter under this Agreement shall, in
the absence of contrary written instructions provided by the
party involved, be addressed to the attention of the
representative executing this Agreement at the address set forth
above.

11.5	All monies or accounts due Manufacturer from GM under this
Agreement shall be Considered net of any indebtedness of
Manufacturer to GM, including its subsidiaries, and GM may, at
its election, recoup, set off or deduct any indebtedness of
Manufacturer or Manufacturer's financial institution to GM
against any monies or accounts due from GM to Manufacturer.

	,
	IN WITNESS WHEREOF, the parties have caused their duly
authorized representatives to execute this Agreement on the dates
set forth below:

Manufacturer:
L.A. West, Inc.
Chevrolet S.V.M. Code: 59-950
GM S.V.M. Code: 56-246
By /s/ Vern Kauffman
Title: President
Date: 10-16-00

GENERAL MOTORS CORPORATION
By: /s/ J.F. Brieske
Title: Manager-Pool Accounts
Fleet and Commercial operations
Date: October 18. 2000

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EXHIBIT A To
SPECIAL VEHICLE MANUFACTURER CONVERTERS PROGRAM AGREEMENT

Agreement applies to all models of trucks and truck chassis (Vehicles)
available through General Motors Fleet and Commercial operations which
are shipped under this Agreement.

Vehicles delivered to Manufacturer shall be stored at the following
locations, and no others:

1. 1995 East U.S. 20 LaGrange, IN 46761

MANUFACTURER:
Manufacturer:
L.A. West, Inc.
Chevrolet S.V.M. Code: 59-950
GM S.V.M. Code: 56-246
By /s/ Vern Kauffman
Title: President
Date: 10-16-00

GENERAL MOTORS CORPORATION
By: /s/ J.F. Brieske
Title: Manager-Pool Accounts
Fleet and Commercial operations
Date: October 18. 2000

<PAGE>Exhibit 4.1            Stock and Stock Option Plan, as amended

                     AMENDMENT TO HYPERDYNAMICS CORPORATION
                           STOCK AND STOCK OPTION PLAN

 1.  Purpose.  The  purpose  of  the  Stock  Option Plan (this "Plan") is to
     -------
     provide  a  means whereby selected employees, directors, officers,
     agents,  consultants,  attorneys  and advisors of HyperDynamics Corporation
     (the  "Company"),  or  of  any parent or subsidiary thereof, may be granted
     shares  of  common  stock;  or  incentive stock options and/or nonqualified
     stock  options  to  purchase the Common Stock of the Company, provided that
     bona  fide  services shall be rendered by consultants attorneys or advisors
     and  such  services  must  not  be  in connection with the offer or sale of
     securities  in  a  capital-raising  transaction.  Further  this  Plan is to
     provide  a  means  to  attract  and  retain  the services or advice of such
     employees,  directors,  officers,  agents,  consultants,  advisors  and
     independent  contractors  and to provide added incentive to such persons by
     encouraging stock ownership in the Company.

2.   Definitions.  The  following  definitions  shall  apply  to  this  Plan:
     -----------

     (a) "Board" means the board of directors of the Company.

     (b) "Code" means the Internal Revenue Code of 1986, as amended.

     (c) "Committee"  means  the  Compensation  Committee  consisting  of
         three  or  more  persons  appointed  by  the Board. If no Committee is
         appointed,  the  term  "Committee"  means  the  Board, except in those
         instances where the text clearly indicated otherwise.

     (d) "Common Stock" means the Common Stock, par value $0.001 per share of
          the Company or such other class of shares or securities as to which
          the Plan may be applicable, pursuant to Section 12 herein.

     (e) "Company" means HyperDynamics Corporation, a Delaware Corporation.

     (f) "Continuous  Service"  means  the  absence of any interruption or
         termination of employment with or service to the Company or any parent
         or subsidiary of the Company that now exists or hereafter is organized
         or  acquired  by or acquires the Company. Continuous Service shall not
         be  considered  interrupted in the case of sick leave, military leave,
         or  any  other leave of absence approved by the Company or in the case
         of  transfers between locations of the Company or between the Company,
         its parent, its subsidiaries or its successors.

     (g) "Date of Grant" means the date on which the Committee grants an Option.

     (h) "Director"  means  any  member  of  the Board of Directors of the
         Company  or any parent or subsidiary of the Company that now exists or
         hereafter is organized or acquired by or acquires the Company.

                                      -24-
<PAGE>

     (i) "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     (j) "Employee"  means  any  person  employed on an hourly or salaried
         basis  by  the Company or any parent or subsidiary of the Company that
         now  exists  or  hereafter is organized or acquired by or acquires the
         Company or any Consultant or Advisor who contributes materially to the
         success  and  profitability of the Company, provided that the services
         rendered  by  the Consultant or Advisor must not be in connection with
         the offer or sale of securities in a capital-raising transaction.

     (k) "Fair  Market  Value"  means  (i)  if  the  Common  Stock  is not
         listed  or  admitted to trade on a national securities exchange and if
         bid  and  ask  prices  for  the Common Stock are not furnished through
         NASDAQ  or  a  similar  organization,  the  value  established  by the
         Committee,  in  its sole discretion, for purposes of the Plan; (ii) if
         the  Common  Stock  is  listed  or  admitted  to  trade  on a national
         securities  exchange or a national market system, the closing price of
         the  Common  Stock, as published in the Wall Street Journal, so listed
         or  admitted  to  trade on such date or, if there is no trading of the
         Common  Stock on such date, then the closing price of the Common Stock
         on  the  next preceding day on which there was trading in such shares;
         or  (iii)  if the Common Stock is not listed or admitted to trade on a
         national  securities  exchange  or  a national market system, the mean
         between  the  bid  and ask price for the Common Stock on such date, as
         furnished  by  the  National  Association  of Securities Dealers, Inc.
         through  NASDAQ  or  a  similar  organization  if  NASDAQ is no longer
         reporting  such  information.  If  trading  in  the  stock  or a price
         quotation does not occur on the Date of Grant, the next preceding date
         on which the stock was traded or a price was quoted will determine the
         fair market value.

     (l) "Incentive  Stock  Option"  means  a  stock  option,  granted
         pursuant  to  either  this Plan or any other plan of the Company, that
         satisfies  the  requirements  of  Section  422  of  the  Code and that
         entitles  the  Optionee  to  purchase  stock  of  the  Company or in a
         corporation  that  at  the time of grant of the option was a parent or
         subsidiary  of  the  Company  or a predecessor corporation of any such
         corporation.

     (m) "Nonstatutory Option" shall have the meaning as used in Section 8
          herein.

     (n) "Option" means a stock option granted pursuant to the Plan.

     (o) "Option  Period"  means  the  period  beginning  on  the  Date of
         Grant and ending on the day prior to the fifth anniversary of the Date
         of Grant or such shorter termination date as set by the Committee.

     (p) "Optionee" means an Employee or Director who receives an Option.

     (q) "Parent" means any corporation which owns 50% or more of the voting
          securities of the Company.

     (r) "Plan" means this Stock Option Plan.

<PAGE>
                                      -25-

     (s) "Share" means the Common Stock, as adjusted in accordance with
          Paragraph 12 of the Plan.

     (t) "Subsidiary" means any corporation 50% or more of the voting securities
          of which are owned directly or indirectly by the Company at any time
          during the existence of this Plan.

 3.  Administration.  This  Plan  will  be  administered by the Committee. A
     --------------
     majority  of  the  full  Committee constitutes a quorum for purposes of
     administering the Plan, and all determinations of the  Committee  shall
     be  made  by  a majority of the members present at a meeting at which a
     quorum is present or by the unanimous, written consent of the Committee.

     If  no  Committee  has  been  appointed,  members  of  the  Board  who  are
     either eligible for shares of common stock, or Options or have been granted
     shares  of  common  stock, or Options may vote on any matters affecting the
     administration  of  the Plan or the grant of any shares of common stock, or
     Option  pursuant  to  the Plan, except that no such member shall act on the
     granting  of any shares of common stock, or Option to himself, but any such
     member  may  be  counted  in  determining  the existence of a quorum at any
     meeting  of  the  Board  during  which  action is taken with respect to the
     granting of shares of common stock, or Options to him.

     The  Committee  has  the  exclusive  power  to  select  the participants in
     this Plan, to establish the terms of the shares of common stock, or Options
     granted to each participant, and to make all other determinations necessary
     or  advisable  under  the  Plan.  The  Committee  has the sole and absolute
     discretion  to  determine  whether  the performance of an eligible Employee
     warrants  an  award  under  this  Plan,  and to determine the amount of the
     award. The Committee has full and exclusive power to construe and interpret
     this  Plan, to prescribe and rescind rules and regulations relating to this
     Plan,  and  take  all  actions  necessary  or  advisable  for  the  Plan's
     administration.  Any such determination made by the Committee will be final
     and  binding  of  all persons. A member of the Committee will not be liable
     for performing any act or making any determination in good faith.

 4.  Shares  and  Shares  Subject  to  Option.  Subject to the provisions of
     -----------------------------------  Paragraph  12 of the Plan, the maximum
     aggregate  number  of  Shares that may be issued or optioned and sold under
     the  Plan  shall be 10,000,000. Such shares may be authorized but unissued,
     or  may  be  treasury  shares.  If  an  Option  shall  expire  or  become
     unexercisable  for  any  reason  without having been exercised in full, the
     unpurchased  Shares  that were subject to the Option shall, unless the Plan
     has then terminated, be available for other Options under the Plan.

5.   Participants.
     ------------

     (a)  Eligible  Employees  and  Directors.  Every  Employee and Director and
     the  -------------------------------- other persons set forth in Section 1,
     as  the  Committee  in  its  sole  discretion  designates,  is  eligible to
     participate  in this Plan. The Committee's award of shares of common stock,
     or an Option to a participant in any year does not require the Committee to
     award shares of common stock, or an Option to that participant in any other
     year. Furthermore, the Committee may award different shares

<PAGE>
                                      -26-

     of  common  stock,  or  Options  to  different  participants. The Committee
     may  consider  such factors as it deems pertinent in selecting participants
     and  in  determining the amount of their shares of common stock, or Option,
     including,  without  limitation; (i) the financial condition of the Company
     or its Subsidiaries; (ii) expected profits for the current or future years;
     (iii)  the contributions of a prospective participants to the profitability
     and  success  of  the Company or its Subsidiaries; and (iv) the adequacy of
     the  prospective participant's other compensation. Participants may include
     persons  to  whom  stock,  stock options, or other benefits previously were
     granted  under  this  or  another  plan  of  the Company or any Subsidiary,
     whether or not the previously granted benefits have been fully exercised.

     (b) No Right of Employment. An Optionee's right, if any, to continue to
         ----------------------
     serve the Company and its Subsidiaries as an Employee will not be enlarged
     or otherwise affected by his designation as a participant under this Plan,
     and such designation will not in any way restrict the right of the Company
     or any Subsidiary, as the case may be, to terminate at any time the
     employment of any participant.

     (c) Eligible Consultants. From time to time the Committee may select
         --------------------
     certain consultants as eligible for the Plan.

6.   Option Requirements. Each Option granted under this Plan shall  satisfy
     -------------------
     the following requirements.

     (a) Written Option. An Option shall be evidenced by a written instrument
         --------------
     specifying  (i)  the  number  of  Shares  that  may  be  purchased  by  its
     exercise,  (ii)  the intent of the Committee as to whether the Option is to
     be an Incentive Stock Option or a Nonstatutory Option, and (iii) such terms
     and conditions consistent with the Plan as the Committee shall determine.

     (b) Duration of Option. Each Option may be exercised only during the Option
         ------------------
         Period designated for the Option by the Committee. At the end of the
         Option Period the Option shall expire.

     (c) Option Exercisability. Unless otherwise provided by the Committee on
         ---------------------
          the  grant  of  an  Option,  each  Option shall be exercisable only as
          to  no  more  than one-fourth of the total number of shares covered by
          the  Option  during  each  twelve-month  period commencing immediately
          after  the  date the Option is granted. Notwithstanding the foregoing,
          an  Option  is  exercisable only if the issuance of Shares pursuant to
          the  exercise  would be in compliance with applicable securities laws,
          as contemplated by Section 10 of this Plan. To the extent an Option is
          either  unexercisable  or  unexercised,  the unexercised portion shall
          accumulate  until the Option both becomes exercisable and is exercised
          but  in  no  case beyond the date that is five years from the date the
          Option is granted.

     (d) Acceleration of Vesting. Subject to the provisions of Section 7(b), the
         -----------------------
         Committee may, in its discretion, provide for the exercise of Options
         either as to an increased percentage of shares per year or as to all
         remaining shares. Such acceleration of vesting may be declared by the
         Committee at any time before the end of the Option Period, including,
         if applicable, after termination of the Optionee's Continuous Service
         by reason of death,

<PAGE>
                                      -27-

         disability, retirement or termination of employment.

     (e) Option Price. Except as provided in Section 7(a) and 8, the Option
         ------------
          price  of  each  Share  subject  to  the  Option  shall equal the Fair
          Market  Value  of  the Share on the Option's Date of Grant, amd except
          further  that  for  Options  granted  to  consultants,  advisors  and
          independent contractors, the exercise price of each option may be less
          than Fair Market Value as determined by the Committee.

     (f) Termination of Services. If the Optionee ceases Continuous Service for
         -----------------------
          any  reason  other  than  death,  disability,  or  retirement  on  or
          after  age  65 of the Optionee, all Options held by the Optionee shall
          lapse immediately following the last day that the Optionee is employed
          by  the  Company,  on  the  effective  date  of the termination of his
          services to the Company. On the grant of an Option, the Committee may,
          in  its  discretion,  extend  the  time during which the Option may be
          exercised  after  termination of services. Any such Option shall lapse
          at  the  end  of  the period established by the Committee for exercise
          after  termination  of  services.  The Option may be exercised on such
          termination date, subject to any adjustment under Section 6(d) and 12.

     (g) Death. In the case of death of the Optionee, the beneficiaries
         -----
          designated  by  the  Optionee  shall  have  one  year  from  the
          Optionee's  demise  or  to  the end of the Option Period, whichever is
          earlier,  to exercise the Option, provided, however, the Option may be
          exercised  only  for the number of Shares for which it could have been
          exercised  at  the  time  the Optionee died, subject to any adjustment
          under Sections 6(d) and 12.

     (h) Retirement. If the Optionee retires on or after attaining age 65, the
         ----------
          Option  shall  lapse  at  the  earlier of the end of the Option Period
          or  three  months after the date of retirement; provided, however, the
          Option  can  be  exercised  only for the number of Shares for which it
          could  have  been  exercised  on  the  retirement date, subject to any
          adjustment under Sections 6(b) and 12.

     (i) Disability. In the event of termination of Continuous Service due to
         ----------
          total  and  permanent  disability  (within  the meaning of Section 422
          of  the Code), the Option shall lapse at the earlier of the end of the
          Option  Period  or  twelve  months after the date of such termination,
          provided,  however,  the  Option  can  be  exercised  at  the time the
          Optionee  became  disabled,  subject  to any adjustment under Sections
          6(d) and 12.

7.   Incentive Stock Options. Any Options intended to qualify as an Incentive
     -----------------------
     Stock Option shall satisfy the following requirements in addition to the
     other requirements of the Plan:

     (a) Ten Percent Shareholders. An Option intended to qualify as an Incentive
         ------------------------
          Stock  Option  granted  to  an  individual  who, on the Date of Grant,
          owns stock possessing more than ten (10) percent of the total combined
          voting  power  of  all  classes  of stock of either the Company or any
          parent  or  Subsidiary,  shall be granted at a price of 110 percent of
          Fair  Market  Value  on  the Date of Grant and shall be exercised only
          during  the  five-year period immediately following the Date of Grant.
          In calculating stock ownership of any person, the attribution rules of
          Section 425(d) of the Code will apply. Furthermore, in

<PAGE>
                                      -28-

          calculating  stock  ownership,  any  stock  that  the  individual  may
          purchase under outstanding options will not be considered.

     (b) Maximum Option Grants. The aggregate Fair Market Value, determined on
         ---------------------
          the  date  of  Grant,  of  stock  in  the  Company exercisable for the
          first  time  by  any Optionee during any calendar year, under the Plan
          and  all  other  plans  of  the  Company or its parent or Subsidiaries
          (within  the  meaning of Subsection (d) of Section 422 of the Code) in
          any calendar year shall not exceed $100,000.00.

     (c) Exercise of Incentive Stock Options. No disposition of the shares
         -----------------------------------
          underlying  an  Incentive  Stock  Option  may be made within two years
          from  the Date of Grant nor within one year after the exercise of such
          Incentive Stock Option.

8.   Nonstatutory Options. Any Option not intended to qualify as an Incentive
     --------------------
     Stock Option shall be a nonstatutory Option. Nonstatutory Options shall
     satisfy each of the requirements of Section 6 of the Plan.

9.   Method of Exercise. An Option granted under this Plan shall be deemed
     ------------------
     exercised  when  the  person  entitled  to exercise the Option (i) delivers
     written notice to the President of the Company of the decision to exercise,
     (ii)  concurrently tenders to the Company full payment for the Shares to be
     purchased  pursuant  to  the  exercise,  and (iii) complies with such other
     reasonable  requirements as the Committee establishes pursuant to paragraph
     11  of  the  Plan. During the lifetime of the Employee to whom an Option is
     granted,  such Option may be exercised only by him. Payment for Shares with
     respect  to  which  an  Option is exercised may be in cash, or by certified
     check,  or  wholly  or  partially in the form of Common Stock having a fair
     market value equal to the Option Price. No person will have the rights of a
     shareholder  with respect to Shares subject to an Option granted under this
     Plan until a certificate or certificates for the Shares have been delivered
     to him.

     An  Option  granted  under  this  Plan  may  be  exercised in increments of
     not  less  than  10%  of  the  full  number of Shares as to which it can be
     exercised.  A  partial  exercise  of an Option will not effect the holder's
     right to exercise the Option from time to time in accordance with this Plan
     as to the remaining Shares subject to the Option.

10.  Taxes, Compliance with Law; Approval of Regulatory Bodies. The Company, if
     ---------------------------------------------------------
     necessary  or  desirable,  may  pay  or  withhold  the  amount  of  any tax
     attributable  to any Shares deliverable or amounts payable under this Plan,
     and  the  Company  may  defer  making  delivery  or  payment  until  it  is
     indemnified  to  its satisfaction for the tax. Options are exercisable, and
     Shares  can  be  delivered  and  payments  made  under  this  Plan, only in
     compliance  with  all  applicable  federal  and state laws and regulations,
     including,  without  limitation, state and federal securities laws, and the
     rules  of all stock exchanges on which the Company's stock is listed at any
     time.  An Option is exercisable only if either (i) a registration statement
     pertaining  to the Shares to be issued upon exercise of the Option has been
     filed with and declared effective by the Securities and Exchange Commission
     and  remains  effective  on the date of exercise, or (ii) an exemption from
     the  registration  requirements of applicable securities laws is available.
     This  plan does not require the Company, however, to file such registration
     statement or to

<PAGE>
                                      -29-

     assure  the  availability  of  such  exemptions.  Any certificate issued to
     evidence Shares issued under the Plan may bear such legends and statements,
     and  shall be subject to such transfer restrictions, as the Committee deems
     advisable  to assure compliance with federal and state laws and regulations
     and  with  the requirements of this Section 10 of the Plan. Each Option may
     not  be  exercised, and Shares may not be issued under this Plan, until the
     Company  has  obtained  the  consent  or approval of every regulatory body,
     federal  or  state,  having  jurisdiction over such matter as the Committee
     deems advisable.

     Each  Person  who  acquires  the  right to exercise an Option by bequest or
     inheritance may be required by the Committee to furnish reasonable evidence
     of ownership of the Option as a condition to his exercise of the Option. In
     addition,  the  Committee  may  require such consents and release of taxing
     authorities as the Committee deems advisable.

11.  Assignability. An Option granted under this Plan is not transferable except
     -------------
     by will or the laws of descent.

12.  Adjustment Upon Change of Shares. If a reorganization, merger,
     --------------------------------
     consolidation,  reclassification,  recapitalization,  combination  or
     exchange  of shares, stock split, stock dividend, rights offering, or other
     expansion  or  contraction  of  the Common Stock of the Company occurs, the
     number  and  class of Shares for which Options are authorized to be granted
     under  this  Plan,  the  number and class of Shares then subject to Options
     previously  granted  under  this Plan, and the price per Share payable upon
     exercise  of  each  Option  outstanding  under this Plan shall be equitably
     adjusted  by  the  Committee  to reflect such changes. To the extent deemed
     equitable  and  appropriate by the Board, subject to any required action by
     shareholders,  in any merger, consolidation, reorganization, liquidation or
     dissolution,  any  Option  granted  under  the  Plan  shall  pertain to the
     securities  and other property to which a holder of the number of Shares of
     stock  covered  by  the  Option  would  have  been  entitled  to receive in
     connection with such event.

13.  Liability  of  the Company. The Company, its parent and any Subsidiary that
     --------------------------
     is in existence or hereafter comes into existence shall not be liable to
     any person for any tax consequences expected but not realized by an
     Optionee or other person due to the exercise of an Option.

14.  Expenses  of Plan. The Company shall bear the expenses of administering the
     -----------------
     Plan.

15.  Duration  of  Plan. shares of common stock, or Options may be granted under
     ------------------
     this Plan only within 10 years from the effective date of this Plan.

16.  Amendment  of Plan. This Plan may be amended by the Committee in accordance
     ------------------
     with the provisions of Paragraph 3.

17.  Applicable  Law. The validity, interpretation, and enforcement of this Plan
     ---------------
     are governed in all respects by the laws of Delaware and the United States
     of America.

18.  Effective  Date.  The  effective  date  of  this Plan shall be May 7, 1997.
     ---------------

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