Document:

FORM OF

                      AGREEMENT AND PLAN OF SHARE EXCHANGE

         THIS AGREEMENT AND PLAN OF SHARE EXCHANGE (the "Agreement") dated this
__ day of March, 2000, by and among LEISURE TRAVEL GROUP, INC., a Delaware
corporation (the "Company"), LEISURE TRAVEL GROUP LIMITED, a private limited
company organized under the laws of England and Wales ("LTGL"), CIGNET VENTURES
LIMITED, a private limited company organized under the laws of Guernsey Channel
Islands ("Cignet"), RED KITE VENTURES LIMITED, a private limited company
organized under the laws of ________ ("Red Kite"), WARREN CAPITAL LIMITED, a
private limited company organized under the laws of England and Wales ("WCL"),
CI4NET.COM, INC., a Delaware corporation ("Ci4net"), RAYMOND J. PEEL ("Peel"),
MILNER ESTATES, a ________ ("Milner"), PHILIP MASON ("Mason"), STEPHEN LAST
("Last"), ROD RODGERS ("Rodgers"), and DAVID MARRIOTT ("Marriott"). Red Kite,
WCL, Ci4net and Milner are sometimes hereinafter collectively referred to herein
as the "LTGL Shareholders," Cignet, Mason, Rodgers and Last are sometimes
hereinafter collectively referred to herein as the "GHG Shareholders," and the
LTGL Shareholders and the GHG Shareholders are sometimes hereinafter
collectively referred to herein as the "Shareholders." The Company and the
Shareholders are hereinafter sometimes collectively referred to as the
"Parties."

         WHEREAS, the Board of Directors of the Company deems it advisable and
in the best interests of the Company that the Company acquire all of the issued
and outstanding share capital of LTGL, which currently owns 100% of the share
capital OF MISS ELLIE'S WORLD TRAVEL LIMITED, a private limited company
organized under the laws of England and Wales ("Miss Ellie's) and ILIOS TRAVEL
LIMITED, a private limited company organized under the laws of England and Wales
("Ilios"); and

         WHEREAS, the shareholders and Board of Directors of the Company and
LTGL deems it advisable and in the best interests of the Company and LTGL that
LTGL acquire all of the issued and outstanding share capital of GRAND HOTEL
GROUP LIMITED, a private limited company organized under the laws of England and
Wales ("GHG"); and

         WHEREAS, the shareholders and Board of Directors of the Company and
LTGL deems it advisable and in the best interests of the Company and LTGL that
LTGL also acquire 49% of the issued and outstanding share capital of
TRRRAVEL.COM, LTD., a private limited company organized under the laws of
England and Wales ("Trrravel.com"), and

         WHEREAS, the case of each of the above acquisitions, the holders of the
share capital of each of LTGL, GHG and Trrravel.com will receive in exchange for
the share capital of such Acquired Corporations newly issued shares of common
stock, par value $0.001 per share, of the Company (the "Company Common Stock"),
all upon and subject to the terms and conditions contained in this Agreement
(the "Share Exchange"); and

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         WHEREAS, the shareholders of each of the Acquired Corporations and the
Company have approved and adopted this Agreement as a "plan of reorganization"
within the meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986,
as amended.]

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements, provisions, and conditions contained herein, and for other good and
valuable consideration, the adequacy and receipt of which are hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         As used in this Agreement, the following terms shall have the following
meanings, unless the context shall otherwise require:

         (a) "ACQUIRED CORPORATIONS" shall mean the collective reference to LTGL
(including its Miss Ellie's and Ilios subsidiaries), GHG and Trrravel.com.

         (b) "LTGL ESCROWED SHARES" shall mean the ordinary shares of LTGL.

         (c) "GHG ESCROWED SHARES" shall mean the ordinary shares of GHG.

         (d) "TRRRAVEL.COM ESCROWED SHARES" shall mean the ordinary shares of
Trrravel.com.

         (e) "COMPANY COMMON STOCK" shall mean the common stock, par value
$0.001 per share of the Company.

         (f) "COMPANY IPO" shall mean the initial public offering of shares of
Company Common Stock pursuant to a registration statement on Form S-1 or other
applicable form of registration (the "Registration Statement") which shall be
declared effective by the United States Securities and Exchange Commission
("SEC"), and the trading of such shares of Company Common Stock on the Nasdaq
Stock Exchange or other national securities exchange in the United States.

         (g) "EFFECTIVE DATE" shall mean the date on which the SEC shall declare
effective the Registration Statement and related prospectus in connection with
the Company IPO.

         (h) "RANK INDEBTEDNESS" shall mean all indebtedness for money borrowed,
whether or not evidenced by notes, which shall be owed on the Effective Date by
GHG or any subsidiary of GHG to The Rank Group plc or any of its subsidiaries or
affiliates.

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                                   ARTICLE II

                     TERMS AND PROVISIONS OF SHARE EXCHANGE

         Section 2.01 SHARE EXCHANGE.

         (a) TRANSFER OF SHARE CAPITAL OF ACQUIRED CORPORATIONS. Upon the terms
and subject to the conditions herein contained, including, without limitation,
the conditions contained in Section ____ hereof, at the Effective Date:

                   (i) the GHG Shareholders shall sell, assign, transfer and
         deliver to LTGL, and LTGL shall acquire from the GHG Shareholders all
         right, title and interest in and to _______ GHG Escrowed Shares,
         representing all, and not less than all, of the outstanding share
         capital of GHG as at the Effective Date, free and clear of all liens
         and encumbrances thereon;

                  (iiii) Ci4net shall sell, assign, transfer and deliver to
         LTGL, and LTGL shall acquire from Ci4net all right, title and interest
         in and to _______ Trrravel.com Escrowed Shares, representing 49% of the
         issued and outstanding share capital of Trrravel.com as at the
         Effective Date, free and clear of all liens and encumbrances thereon;
         and

                  (iii) immediately following the transfers contemplated by
         clauses (i) and (ii) of this Section 2.01(a), the LTGL Shareholders
         shall sell, assign, transfer and deliver to the Company, and the
         Company shall acquire from the LTGL Shareholders all right, title and
         interest in and to an aggregate of _______ LTGL Escrowed Shares,
         representing all, and not less than all, of the outstanding share
         capital of LTGL as at the Effective Date, free and clear of all liens
         and encumbrances thereon;

         In furtherance of the foregoing, on the Effective Date:

                   (x) the GHG Shareholders shall deliver to LTGL share
         certificates representing all of the issued and outstanding share
         capital of GHG as at the Effective Date, duly endorsed in blank for
         transfer,

                  (y) Ci4net shall deliver to LTGL share certificates
         representing 49% of the issued and outstanding share capital of
         Trrravel.com as at the Effective Date, duly endorsed in blank for
         transfer; and

                  (z) the LTGL Shareholders shall deliver to the Company share
         certificates representing all of the issued and outstanding share
         capital of LTGL as at the Effective Date, duly endorsed in blank for
         transfer,

         (b) ISSUANCE OF COMPANY COMMON STOCK. In consideration for the transfer
and assignment of all the issued and outstanding share capital of GHG and 49% of
the issued and outstanding share capital of Trrravel.com to LTGL, and the
transfer and assignment of all the issued and outstanding share capital of LTGL
to the Company, and

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against delivery of the certificates representing such share capital as provided
in Section 1.1(a) hereof, at the Effective Date, the Company shall issue an
aggregate of 5,060,000 shares of Common Stock to the Shareholders, as follows:

                  (i) to the GHG Shareholders an aggregate of 3,700,000 shares
         of Company Common Stock, in the individual amounts among the GHG
         Shareholders as set forth opposite their respective names on SCHEDULE 1
         annexed hereto and made a part hereof;

                  (ii) to the LTGL Shareholders, an aggregate of 940,000 shares
         of Company Common Stock, in the individual amounts among the GHG
         Shareholders as set forth opposite their respective names on SCHEDULE 2
         annexed hereto and made a part hereof; and

                  (iii) to Ci4net, an aggregate of 220,000 shares of Company
         Common Stock.

         Section 2.02 TAKING OF NECESSARY ACTION. The Company, LTGL and the
Shareholders shall take all such actions as may be necessary or appropriate in
order to effectuate the transactions contemplated by this Agreement. If, at any
time after the Effective Date, any further action is necessary or desirable to
carry out the purposes of this Agreement, to vest the Company with title to 100%
of the issued and outstanding LTGL Escrowed Shares, or to vest LTGL with title
to 100% of the issued and outstanding GHG Escrowed Shares and 49% of the issued
and outstanding Trrravel.com Escrowed Shares, the officers and directors of
LTGL, GHG or Trrravel.com, as the case may be, at their expense, shall take such
necessary or desirable action in order to effectuate the transactions
contemplated by this Agreement.

         Section 2.03 STOCK LEGENDS. Certificates representing shares of the
Company Common Stock shall bear a legend restricting transfer of the shares of
the the Company Common Stock represented by such certificate in substantially
the form set forth below:

         "The shares evidenced by this certificate have not been registered
         under the Securities Act of 1933, as amended (the "Securities Act"),
         and may not be transferred, nor will any assignee or endorsee hereof be
         recognized as an owner hereof by the issuer for any purpose, unless a
         registration statement under the Securities Act with respect to such
         shares shall then be in effect or unless the availability of an
         exemption from registration with respect to any proposed transfer or
         disposition of such shares shall be established to the satisfaction of
         counsel for the issuer."

the Company shall, from time to time, make stop transfer notations in its
records to ensure compliance in connection with any proposed transfer of the
shares with the Securities Act, and all applicable state securities laws.

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         Section 2.04 FEES AND EXPENSES. the Company shall be responsible for
all fees and expenses incurred in connection with the negotiation, execution,
delivery and performance of this Agreement and the transactions contemplated
hereby, including, without limitation, the professional fees of counsel for the
Shareholders incurred in connection with the Share Exchange.

                                   ARTICLE III

                     COMPANY REPRESENTATIONS AND WARRANTIES

         The following representations and warranties are hereby made (i) by the
Company to the Shareholders with respect only to the Company, (ii) by LTGL and
the LTGL Shareholders to the Company with respect only to LTGL and its Miss
Ellie's and Ilios subsidiaries, (iii) by the GHG Shareholders to the Company and
LTGL with respect only to GHG and (iv) by Ci4net to the Company and LTGL with
respect only to Trrravel.com.

         Section 3.01 ORGANIZATION; AUTHORIZATION. It is a corporation duly
organized, validly existing, and in good standing under the laws of the state or
country of its incorporation and has full power and authority to carry on its
business as it now is being conducted and to own the properties and assets it
now owns. It is duly qualified to do business as a foreign corporation and is in
good standing in every jurisdiction in which the conduct of its business or
ownership of its property requires such qualification; and, subject to the
requisite approval of and authorization by the holders of its capital stock, it
has full power and authority to enter into this Agreement and to carry out the
transactions contemplated herein.

         Section 3.02 NO DEFAULTS. It is not a party to or bound by any contract
or agreement, or subject to any charter provision or other legal restriction
(other than restrictions applicable to corporations or businesses generally),
which adversely affects its business, operations, properties, assets, or
condition, financial or otherwise. It is not in default under any material
contract, lease, agreement, or other undertaking to which it is a party or by
which it is bound. Subject to the requisite approval of and authorization by the
holders of its capital stock, neither the execution and delivery of this
Agreement, the consummation of the transactions contemplated hereby, nor
compliance with the terms and conditions hereof will conflict with, result in a
breach of the unwaived terms and conditions of, or constitute a default under
its articles of incorporation or bylaws or any contract, agreement, commitment,
or other undertaking to which it is a party or by which it is bound.

         Section 3.03 GOVERNMENTAL CONSENTS. Except for the requirements of the
United States Securities Act of 1933, as amended (the "Securities Act")and any
applicable state securities laws, and any applicable laws of the United Kingdom
or the United States no consent or approval of, or filing or registration with,
any governmental or regulatory authority is required in connection with the
performance of the terms of this Agreement.

         Section 3.04 EXAMINATION OF DOCUMENTS. All original documents and other
information relating to its affairs will be made available, and copies of any
such

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documents will be furnished, upon request to the other party and its
counsel. Included among the documents to be made available are all articles of
incorporation and amendments, bylaws and amendments, minutes of all
incorporators, directors and shareholders meetings or consent minutes with
respect to actions taken by incorporators, directors, or shareholders, all
financial statements, tax returns, and all material contracts, leases, and
agreements to which it is a party or an intended beneficiary.

         Section 3.05 TITLE TO ASSETS. It has good and marketable title to all
of its properties and assets, both real and personal, free and clear of all
security interest liens, claims, equities of others, and restrictions on the
right to transfer, except as disclosed in writing to the Company.

         Section 3.06 TAX RETURNS AND PAYMENTS. All of its tax returns and
reports required by law to be filed have been duly filed, and all taxes,
assessments, fees, and other governmental charges (other than those presently
payable without interest or penalty or those which are being contested in good
faith by appropriate proceedings diligently conducted and which are disclosed in
the Exceptions Schedule) upon it or upon any of its properties, assets,
interest, or income which are due or are to become due have been paid or
adequately reserved against. None of its federal income tax returns is currently
under examination by the Inland Revenue.

         Section 3.07 NO LITIGATION. Except as disclosed in writing to the
Company:

         (a) there is no action, proceeding, claim, or investigation pending or
threatened against it or to which any of its assets or properties are subject
before any court or any governmental department, commission, board, bureau,
agency, or instrumentality which involves the possibility of any judgment or
liability or which might adversely affect its assets, business, or goodwill and,
after investigations it knows of no basis or grounds for any such action,
proceeding, claim, or investigation; and

         (b) there is no outstanding order, writ, injunction, or decree of any
court, government department, commission, board, bureau, government agency, or
instrumentality, or any arbitration award, against it.

         Section 3.08 NO MATERIAL ADVERSE CHANGES. Between the date of this
Agreement and the Effective Date, as a condition precedent to the obligations
hereunder, it will not, without the Company's prior written consent, it will not
engage in any material transaction not in the ordinary course of its business,
make or declare any dividends or distributions of its capital, surplus, or
profits, or redeem or issue any shares of its common stock or other securities.
There will be no changes in its assets, properties, liabilities, or financial
condition from those shown in its financial statements or in its condition,
other than changes which do not materially affect, singly or in the aggregate,
its business, assets, properties, or financial condition. Other than as
disclosed to the Company, it will not borrow any amounts or incur any
liabilities other than pursuant to contracts entered into in the ordinary course
of business; discharge any lien or encumbrance or satisfy any liabilities other
than current liabilities incurred in the ordinary

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course of business; mortgage, pledge, or subject to lien or charge or any other
encumbrance any of its assets or properties; sell, assign, or transfer any of
its assets except in the ordinary course of business; waive any rights of
substantial value; or loan money to any of its directors, officers, or
shareholders.

         Section 3.09 BOOKS AND RECORDS COMPLETE. Its books and records are
accurate and complete and there are no matters for which proper entry has not
been made in such books and records.

         Section 3.10 INSURANCE. It is adequately insured with respect to risks
usually insured against by companies owning properties and conducting business
similar to those owned and conducted by it. All policies are presently in force
and paid in full and will continue to be so without interruption until the
Effective Date.

         Section 3.11 NO BROKERAGE FEES. Except as disclosed in the Registration
Statement, no agent, broker, investment banker, person, or firm acting on its
behalf, to the best of its knowledge, is or will be entitled to any broker's or
finder's fee or any other commission or fee, directly or indirectly, in
connection with any of the transactions contemplated hereby, except for the
Brokers.

         Section 3.11 COMPLIANCE WITH CERTAIN LAWS. It is in full compliance
with all laws material and applicable to its business, including, without
limitation, laws (i) regulating atmospheric, water, and other pollution or
damage to the environment, (ii) regulating the ownership and operation of
hotels, travel agencies, tour operators and requirements of the CAA in respect
of airline seat bookings, and (iii) prohibiting discrimination based on race,
creed, color, sex, age, disability, or national origin.

         Section 3.12 AUTHORIZATION. Its shareholders and Board of Directors
have duly authorized the execution and delivery of this Agreement and all
documents and transactions called for hereunder, and, this Agreement constitutes
a valid and binding obligation of the corporation in accordance with the
Agreement's terms. Each shall deliver to the other a certified copy of
resolutions of its Board of Directors pertaining to the foregoing. It has taken
or will exert its best efforts to take, prior to the Effective Date, all action
required by law, its Articles of Association, Memorandum of Association,
Certificate of Incorporation and Bylaws, as applicable, and otherwise to
authorize the execution, delivery, and performance of this Agreement.

         Section 3.13 CONTRACTS. Other than as set forth or described in the
Registration Statement, it is not a party to any material agreement,
understanding or other contractual obligation ("Contract") binding upon it, the
non-performance of which by either a party to this Agreement or the other party
to such Contract, would have a material adverse effect on the business,
financial condition or prospects of such party hereto.

         Section 3.14 PROPERTY AND EQUIPMENT. The property and equipment as
shown on its most recent balance sheet are in good operating condition and state
of repair, reasonable wear and tear excepted. The use of its real property
conforms in all material

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respects with applicable ordinances, regulations, zoning, or building codes, and
other applicable laws.

         Section 3.15 SHARE OWNERSHIP. The Shareholders who have executed this
Agreement are the record and beneficial owners of 100% of the share capital of
each of the Acquired Corporations and there are no options, warrants, rights or
other agreements or understandings, written or oral, to sell, issue or purchase
any additional share capital of any of the Acquired Corporations. There are not
issued or outstanding any options, warrants, or rights to subscribe for,
purchase, or receive ordinary shares or preference shares or any other
securities convertible into ordinary shares of preference shares of any of the
Acquired Corporations.

         Section 3.16 REPRESENTATIONS TRUE. No representation or warranty
contained herein, nor any statement or certificate furnished hereunder or in
connection herewith, contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact necessary to make the
statements contained herein or therein not misleading.

                                    ARTICLE V

                                    COVENANTS

         Section 5.01 PRESERVATION OF BUSINESS; ACCESS TO DOCUMENTS. From and
after the date of this Agreement and until the Effective Date, the parties
hereto hereby covenant and agree with each other that the Company and each of
the Acquired Corporations shall:

         (a) use its best efforts to preserve its business organization,
goodwill, and business relationships intact and to retain the services of its
officers and key employees;

         (b) provided the same does not violate any statute, order, decree,
rule, regulation, or contract, give each other and its authorized agents full
access, during normal business hours, upon reasonable notice, to all of its
assets, properties, books, records, agreements, and commitments and furnish such
representatives during such period with all such information concerning its
affairs as the other may reasonably request; provided. however that each party
and its authorized agents shall hold in confidence all documents and information
thus acquired or learned concerning the parties and, if the transactions
contemplated by this Agreement are not consummated, all such documents shall
immediately thereafter be returned to the appropriate parties;

         (c) take all necessary corporate and any other action, and use its best
efforts to obtain all consents, approvals, and agreements required to carry out
the transactions contemplated in this Agreement and to satisfy, or cause to be
satisfied, the conditions specified herein; and

         (d) maintain in full force and effect insurance policies providing
coverages and amount of coverage as now provided.

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         Section 5.02 BUSINESS IN ORDINARY COURSE. Except as specifically
authorized by this Agreement, until the Effective Date, none of the Acquired
Corporations shall do any of the following except with the prior written consent
of the Company:

         (a) effect any general salary increase except in line with its past
practices;

         (b) enter into any written employment agreement;

         (c) increase the base compensation or other benefits of any employee by
more than 10%;

         (d) make any contribution to any trust or plan for the benefit of
employees not required by the present terns thereof or in accordance with its
past practices;

         (e) make any change in any employee benefit plan which would materially
increase the cost thereof or adopt any new employee benefit plan;

         (f) issue or commit to issue any capital stock or other ownership
interests.

         (g) grant or omit to grant any options, warrants, or other rights to
subscribe for or purchase or otherwise acquire any shares of capital stock or
other ownership interests or issue or commit to issue any securities convertible
into or exchangeable for shares of its common stock or other ownership
interests;

         (h) declare, set aside, or pay any dividend or distribution with
respect to its common stock or other ownership interests;

         (i) directly or indirectly redeem, purchase, or otherwise acquire or
commit to acquire any of its common stock or other ownership interest or
directly or indirectly terminate or reduce or commit to terminate or reduce any
bank line of credit or the availability of any funds under any loan or financing
agreement;

         (j) effect a split or reclassification of any capital stock or
recapitalization;

         (k) change its articles of incorporation, bylaws, or other governing
instruments, except to effectuate the transactions contemplated by this
Agreement;

         (1) borrow or agree to borrow any funds except pursuant to existing
bank lines of credit or other existing loan agreements or financing
arrangements; or

         (m) waive or commit to waive any right of substantial value.

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                                   ARTICLE VI

                   CONDITIONS PRECEDENT TO THE SHARE EXCHANGE

         The obligations of the parties under this Agreement are subject to the
satisfaction of the following express conditions precedent at or before the
Effective Date:

         Section 6.01 COMPLIANCE WITH LAWS. All statutory requirements for the
valid consummation by it of the transactions contemplated by this Agreement
shall have been fulfilled.

         Section 6.02 DOCUMENTS. All corporate and other proceedings in
connection with the transactions contemplated herein and all documents incident
thereto shall be reasonably satisfactory in form and substance to it and its
counsel.

         Section 6.03 PAYMENT OF RANK INDEBTEDNESS. Subject only to consummation
of the Company IPO within five business days following the Effective Date and
receipt of the net proceeds thereof, the Company will apply sufficient net
proceeds from such Company IPO which, when coupled with other available funds,
will be sufficient to (a) retire and pay in full all Rank Indebtedness, and (b)
cause the release of all personal guarantees of Kevin R. Leech or his affiliates
and all collateral securing a bank letter of credit issued by Citibank, N.A. in
favor of the holder of such Rank Indebtedness.

         Section 6.04 CAPITALIZATION OF CERTAIN LOANS. On the Effective Date,
Red Kite or another applicable corporate affiliate of Kevin R. Leech, shall
capitalize as share equity in the Company an aggregate of (pound)1,030,000 of
loans made to LTGL or its subsidiaries; provided that except for the shares of
Company Common Stock issued pursuant to this Agreement, no other form of
consideration shall be issued or paid for the capitalization of the aforesaid
loans.

         Section 6.05 OPINIONS OF COUNSEL. Unless waived in writing by the
parties prior to the Effective Date, the Company and each Acquired Corporation
shall have caused its counsel to prepare and deliver to the other an opinion,
dated as of the Effective Date, in form and substance satisfactory to the other,
to the effect that:

         (a) It has been duly incorporated and is a validly existing corporation
in good standing under the laws of its state or country of incorporation, with
full corporate power and authority to own and operate its properties and to
carry on its business as presently being conducted.

         (b) It is duly qualified and licensed to transact business in each
state or other jurisdiction in which it transacts business and by each
governmental authority by which it is required to be licensed, except for
jurisdictions in which failure to qualify would not materially and adversely
affect its business, operations, or financial condition.

         (c) It has an authorized capital as set forth in Article IV hereinabove
and the outstanding shares of its common stock stated as issued and outstanding
have been duly and validly issued and are fully paid and nonassessable and
contain no preemptive rights.

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To the best knowledge of such counsel, there are no outstanding options,
warrants, or other rights to subscribe for, purchase, or receive shares of its
common stock or securities convertible into its common stock, other than as set
forth in Article IV hereinabove.

         (d) Neither the execution and delivery of this Agreement nor compliance
with the terms of this Agreement will conflict with or result in a material
breach of any of the terms, conditions, or provisions of, or constitute a
material default under its Articles of Association, Memorandum of Association,
Certificate of Incorporation or bylaws or any material note, indenture,
mortgage, deed of trust, or other material agreement or instrument known to such
counsel to which it is a party or by which it or any of its property is bound,
or any existing law, order, rule, regulation, writ, injunction, or decree known
to such counsel of any government, governmental instrumentality, agency, body,
arbitration tribunal, or court, domestic or foreign, having jurisdiction over it
or its properties.

         (e) This Agreement has been duly authorized and executed by it, and all
corporate action by it required to authorize the Share Exchange has been taken.

         (f) Such counsel knows of no material litigation, proceeding, or
governmental investigation pending or threatened against or relating to it or
its properties or business.

         In rendering such opinion, counsel may rely on certificates of its
officers as to matters of fact and, as to matters of law, may rely on opinions
of local counsel chosen by it provided that copies of such opinions of such
other counsel accompany the opinion delivered by counsel.

         Section 6.06 CERTIFICATE OF PRESIDENT AND SECRETARY. The Company and
each Acquired Corporation shall have furnished to the other a certificate of the
President or Vice President and the Secretary of the respective company, dated
as of the Effective Date, to the effect that the representations and warranties
of the respective company in this Agreement are true and correct at and as of
the Effective Date, that no error, misstatement, or omission has been discovered
or is known with respect to such representations and warranties, and that the
respective company has complied with all the agreements and has satisfied all
the covenants on its part to be performed at or prior to the Effective Date.

         Section 6.07 NO MATERIAL ADVERSE CHANGE. Between the date of execution
of this Agreement and the Effective Date, neither the Company nor any of the
Acquired Corporations: (a) except in the ordinary course of its business, shall
have incurred any liabilities or obligations (direct or contingent) or disposed
of any of its assets, or entered into any material transaction or suffered or
experienced any materially adverse change in its condition, financial or
otherwise, and (b) shall have increased its issued and outstanding ordinary
shares, preference shares, common stock or any other securities, or rights,
options, warrants or other instruments convertible into or exercisable for
ordinary shares, preference shares, common stock.

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                                   ARTICLE VII

               TERMINATION, FURTHER ASSURANCES, AND MISCELLANEOUS

         Section 7.01 TERMINATION AND POSTPONEMENT. This Agreement and the Share
Exchange contemplated hereby may be terminated, and the transactions provided
for herein abandoned, , as follows:

         (a) at any time prior to but not after the Effective Date by mutual
consent of the the Company and Cignet, or

         (b) at the sole option of Cignet, at any time following five (5)
business days after the Effective Date if the Company IPO shall not have been
consummated and the Rank Indebtedness paid in full within five (5) business days
following such Effective Date

         In the event of the termination and abandonment of this Agreement and
the Share Exchange contemplated hereby, this Agreement shall become void and of
no effect, without any liability on the part of any party or its directors,
officers, or shareholders.

         Section 7.02 SURVIVAL. All agreements, representations, and warranties
made hereunder or in connection with the transactions contemplated hereby shall
survive the Effective Date and remain effective in accordance with the terms
hereof.

         Section 7.03 LIABILITY. In the event that this Agreement shall be
terminated pursuant to Section 7.01 hereinabove, all further obligations of the
Company and the Shareholders under this Agreement shall terminate without
further liability to the other.

         Section 7.04 ASSIGNMENT. This Agreement may not be assigned nor any of
the performances hereunder delegated by operation of law or otherwise by any
party hereto, and any purported assignment or delegation shall be void.

         Section 7.05 HEADINGS. The article and section headings of this
Agreement are inserted for convenience of reference only and do not constitute a
part of this Agreement.

         Section 7.06 BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs,
successors, legal representatives, assigns, and transferors.

         Section 7.07 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof. There
are no representations, warranties, conditions, or other obligations except as
herein specifically provided. Any waiver, amendment, or modification hereof must
be in writing. A waiver in one instance shall not be deemed to be a continuing
waiver or waiver in any other instance.

         Section 7.08 COUNTERPARTS. This Agreement may be executed in
counterparts and each counterpart hereof shall be deemed to be an original, but
all such counterparts

                                       12

<PAGE>

together shall constitute but one agreement an original, but all such
counterparts together shall constitute but one agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.

                                                      LEISURE TRAVEL GROUP, INC.
                                                          a Delaware corporation

                                             By:
                                                 -------------------------------

                                                    LEISURE TRAVEL GROUP LIMITED
         a private limited company organized under the laws of England and Wales

                                             By:
                                                 -------------------------------

                                                         CIGNET VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                                             By:
                                                 -------------------------------

                                                       RED KITE VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                                             By:
                                                 -------------------------------

                                                          WARREN CAPITAL LIMITED
         a private limited company organized under the laws of England and Wales

                                             By:
                                                 -------------------------------

                                                                CI4NET.COM, INC.
                                                          a Delaware corporation

                                             By:
                                                 -------------------------------
                                                                 RAYMOND J. PEEL

                                       13

<PAGE>

                                                                  MILNER ESTATES

                                               By:
                                                  ------------------------------
                                                                    PHILIP MASON

                                                   -----------------------------
                                                                    STEPHEN LAST

                                                  ------------------------------
                                                                     ROD RODGERS

                                                  ------------------------------
                                                                  DAVID MARRIOTT

                                       14

<PAGE>

                                ESCROW AGREEMENT

         THIS AGREEMENT is made and entered into as of the date set forth below,
by and among LEISURE TRAVEL GROUP, INC., a Delaware corporation (the "Company"),
LEISURE TRAVEL GROUP LIMITED, a private limited company organized under the laws
of England and Wales ("LTGL"), CIGNET VENTURES LIMITED, a private limited
company organized under the laws of Guernsey (Channel Islands) ("Cignet"), RED
KITE VENTURES LIMITED, a private limited company organized under the laws of
________ ("Red Kite"), WARREN CAPITAL LIMITED, a private limited company
organized under the laws of England and Wales ("WCL"), CI4NET.COM, INC., a
Delaware corporation ("Ci4net"), RAYMOND J. PEEL ("Peel"), MILNER ESTATES, a
________ ("Milner"), PHILIP MASON ("Mason"), STEPHEN LAST ("Last"), ROD RODGERS
("Rodgers"), and DAVID MARRIOTT ("Marriott") and GREENBERG TRAURIG LLP, a law
firm with offices located at 200 Park Avenue, New York, New York 10166 (the
"Escrow Agent"). Red Kite, WCL, Ci4net and Milner are sometimes hereinafter
collectively referred to herein as the "LTGL Shareholders," Cignet, Mason,
Rodgers and Last are sometimes hereinafter collectively referred to herein as
the "GHG Shareholders," and the LTGL Shareholders and the GHG Shareholders are
sometimes hereinafter collectively referred to herein as the "Shareholders."

                                   WITNESSETH

         WHEREAS, on or about ____________, 2000, the Company and the
Shareholders entered into an Agreement and Plan of Share Exchange (the
"Agreement") under which (a) LTGL agreed to purchase (i) from the GHG
Shareholders, all of the outstanding share capital of GHG and (ii) from Ci4net,
49% of the outstanding share capital of Trrravel.com and (b) the Company agreed
to purchase from the Shareholders all of the outstanding share capital of LTGL;
and

         WHEREAS, each of the Shareholders have agreed to deposit said shares in
escrow in order implement the Agreement, and have executed this Agreement to
evidence the terms of said escrow with the Escrow Agent.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

         1. The parties hereby designate, constitute and appoint Escrow Agent as
the "Escrow Agent" under this Agreement.

         2. The Escrow Agent hereby acknowledges receipt of certificates
evidencing ordinary shares of each of LTGL, MISS ELLIE'S WORLD TRAVEL LIMITED, a
private limited company organized under the laws of England and Wales ("Miss
Ellie's) and ILIOS TRAVEL LIMITED, a private limited company organized under the
laws of England and Wales

                                       15

<PAGE>

("Ilios"), GHG and Trrravel.com in the amounts set forth on SCHEDULE A annexed
hereto and made a part hereof (collectively, the "Escrowed Escrowed Shares"),
together with stock powers duly executed in blank by the Shareholders of record
of such Escrowed Escrowed Shares

         3. The Escrowed Shares are to be held by Escrow Agent in escrow and
disposed of pursuant to and strictly in accordance with the terms and conditions
of this Agreement. Escrow Agent shall hold the Escrowed Shares in a safe place,
provided that Escrow Agent shall not be obligated to obtain insurance covering
the loss and/or destruction of the Escrowed Shares unless the Parties so request
and advance the Escrow Agent sufficient funds to pay for said insurance. The
Escrow Agent undertakes to perform only such duties as are expressly set forth
in this Agreement, and no implied duties or obligations of the Escrow Agent
shall be read into this Agreement.

         4. The Escrow Agent shall at all times be authorized to deliver the
Escrowed Shares in accordance with the terms of the Agreement or with written
instructions executed by Kevin R. Leech or Cignet, as representative of all of
the Shareholders (the "Representative"), all the Parties. In the event the
Escrow Agent shall receive a written claim of default under the Agreement by any
of the Parties, then the Escrow Agent shall not release the Escrowed Shares from
escrow unless and until the Escrow Agent shall have received written
instructions from the Representative as the proper deliver of the Escrowed
Shares or Escrow Agent has received direction from a court of competent
jurisdiction (after expiration of any applicable appeal period) as to the proper
party entitled to receipt of the Escrowed Shares. Escrow Agent shall be
authorized to file an action in interpleader to determine the proper party
entitled to the Escrowed Shares; and the defaulting party, as determined in such
proceeding, shall indemnify and hold harmless the Escrow Agent from all costs
and expenses, including reasonable attorney's fees associated with the
proceeding. Escrow Agent may act in reliance upon any writing or instrument or
signature which it in good faith believes to be genuine and may assume that any
person purporting to give any writing, notice, advice, or instruction in
connection with the provisions hereof has been duly authorized to do so. Escrow
Agent shall not be liable in any manner for the sufficiency or correctness as to
form, manner of execution or validity of any instrument deposited in this escrow
nor as to the identity, authority or right of any persons executing the same;
and its duties hereunder shall be limited to the safekeeping of the Escrowed
Shares and for the disposition of same in accordance with this Agreement. Escrow
Agent hereby executes this Agreement for the sole and exclusive purpose of
evidencing its Agreement of the provisions hereof.

         5. The Parties hereby agree to indemnify and hold the Escrow Agent
harmless from any and all claims, liabilities, losses, actions, suits or
proceedings at law or in equity, or any other expense, fees, or charges of any
character or nature, which it may incur or with which it may be threatened by
reason of its acting as Escrow Agent under this Agreement; and in connection
therewith, to indemnify the Escrow Agent against any and all expenses, including
reasonable attorney's fees and the cost of defending any action, suit or
proceeding or resisting any claim.

                                       16

<PAGE>

         6. The Escrow Agent may consult with counsel of its own choice and
shall have full and complete authorization and protection for any action taken
or suffered by it and hereunder in good faith and in accordance with the opinion
of such counsel. The Escrow Agent shall otherwise not be liable for any mistakes
of fact or error in judgment, or for any acts or omissions of any kind unless
caused by its willful misconduct or gross negligence.

         7. All reasonable out-of-pocket expenses of Escrow Agent in connection
with the services rendered under this Agreement shall be paid by the Company.

         8. Upon release and/or delivery of all Escrowed Shares in accordance
with the terms of the Agreement and this Agreement, this Agreement shall
terminate and the parties shall be released hereunder except with respect to the
indemnification obligations in favor of the Escrow Agent.

         9. The provisions of this Agreement may not be amended, supplemented,
waived or changed orally, but only by a writing signed by the party as to whom
enforcement of any such amendment, modification, supplement or waiver is sought
and making specific reference to this Agreement.

         10. Escrow Agent shall have no duties or responsibilities other than
those expressly set forth herein. Escrow Agent shall not be liable for any
action taken or omitted by it, or any action suffered by it, except for gross
negligence or willful misconduct. The Escrow Agent shall not be bound by any
notice or demand unless evidenced by a writing delivered to Escrow Agent signed
by the proper party or parties.

         11. This Agreement contains the entire understanding between and among
the parties hereto with respect to the subject matter hereof, and shall be
binding upon and inure to the benefit of such parties, and their respective
heirs, successors in interest and legal representatives.

         12. This Agreement is governed by, and is to be construed in accordance
with, the laws of the State of New York, United States of America.

         This Agreement may be executed in counterpart.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.

                                                      LEISURE TRAVEL GROUP, INC.
                                                          a Delaware corporation

                                             By:
                                                 -------------------------------

                                       17

<PAGE>

                                                    LEISURE TRAVEL GROUP LIMITED
         a private limited company organized under the laws of England and Wales

                                             By:
                                                 -------------------------------

                                                         CIGNET VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                                             By:
                                                 -------------------------------

                                                       RED KITE VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                                             By:
                                                 -------------------------------

                                                          WARREN CAPITAL LIMITED
         a private limited company organized under the laws of England and Wales

                                             By:
                                                 -------------------------------

                                                                CI4NET.COM, INC.
                                                          a Delaware corporation

                                             By:
                                                  ------------------------------
                                                                 RAYMOND J. PEEL

                                       18

<PAGE>

                                                                  MILNER ESTATES

                                               By:
                                                   -----------------------------
                                                                    PHILIP MASON

                                                   -----------------------------
                                                                    STEPHEN LAST

                                                  ------------------------------
                                                                     ROD RODGERS

                                                  ------------------------------
                                                                  DAVID MARRIOTT

                                                                   ESCROW AGENT:

                                                          GREENBERG TRAURIG, LLP

                                              By:
                                                  ------------------------------
                                                   STEPHEN A. WEISS, SHAREHOLDER

                                       19LEISURE TRAVEL GROUP, INC.
                             2000 STOCK OPTION PLAN

                                  INTRODUCTION

     Leisure Travel Group, Inc., a Delaware corporation (hereinafter referred to
as the "Corporation"), hereby establishes an incentive compensation plan to be
known as the "LEISURE TRAVEL GROUP, INC. 2000 STOCK OPTION PLAN" (hereinafter
referred to as the "Plan"), as set forth in this document. The Plan permits the
grant of Non-Qualified Stock Options and Incentive Stock Options.

     The Plan shall become effective on February 23, 2000. However, it shall be
rendered null and void and have no effect, and all Options granted hereunder
shall be canceled, if the Plan is not approved by a majority vote of the
Corporation's stockholders within twelve (12) months of the date the Plan is
adopted by the Corporation's Board of Directors.

     The purpose of the Plan is to promote the success and enhance the value of
the Corporation by linking the personal interests of Optionees to those of the
Corporation's stockholders by providing Optionees with an incentive for
outstanding performance. The Plan is further intended to assist the Corporation
in its ability to motivate, and retain the services of, Optionees upon whose
judgment, interest and special effort the successful conduct of its and its
subsidiaries' operations is largely dependent.

<PAGE>

                                        I
                                   DEFINITIONS

     For purposes of the Plan, the following terms shall be defined as follows
unless the context clearly indicates otherwise:

     (a) "Award Agreement" shall mean the written agreement, executed by an
appropriate officer of the Corporation, pursuant to which an Option is granted.

     (b) "Board of Directors" shall mean the Board of Directors of the
Corporation.

     (c) "Code" shall mean the Internal Revenue Code of 1986, as amended, and
the rules and regulations thereunder.

     (d) "Committee" shall mean the Board of Directors or any committee of two
or more persons designated by the Board of Directors to perform the functions of
the Committee hereunder.

     (e) "Common Stock" shall mean the common stock of the Corporation as
authorized from time to time.

     (f) "Consultant" shall mean an individual who is in a Consulting
Relationship with the Corporation or any Parent or Subsidiary.

     (g) "Consulting Relationship" shall mean the relationship that exists
between an individual and the Corporation (or any Parent or Subsidiary) if (i)
such individual or (ii) any entity of which such individual is an executive
officer or owns a substantial equity interest has entered into a written
consulting contract with the Corporation or any Parent or Subsidiary.

     (h) "Corporation" shall mean Leisure Travel Group, Inc., a Delaware
corporation.

     (i) "Disability" shall have the same meaning as the term "permanent and
total disability" under Section 22(e)(3) of the Code.

     (j) "Employee" shall mean a common law employee of the Corporation or of
any Parent or Subsidiary.

     (k) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder.

     (l) "Executive" means an employee of the Corporation or of any Parent or
Subsidiary whose compensation is subject to the deduction limitations set forth
under Code Section 162(m).

                                      -2-

<PAGE>

     (m) "Fair Market Value" of the Corporation's Common Stock on a Trading Day
shall mean the last reported sale price for Common Stock or, in case no such
reported sale takes place on such Trading Day, the average of the closing bid
and asked prices for the Common Stock for such Trading Day, in either case on
the principal national securities exchange on which the Common Stock is listed
or admitted to trading, or if the Common Stock is not listed or admitted to
trading on any national securities exchange, but is traded in the
over-the-counter market, the closing sale price of the Common Stock or, if no
sale is publicly reported, the average of the closing bid and asked quotations
for the Common Stock, as reported by the National Association of Securities
Dealers Automated Quotation System ("NASDAQ") or any comparable system or, if
the Common Stock is not listed on NASDAQ or a comparable system, the closing
sale price of the Common Stock or, if no sale is publicly reported, the average
of the closing bid and asked prices, as furnished by two members of the National
Association of Securities Dealers, Inc. who make a market in the Common Stock
selected from time to time by the Corporation for that purpose. In addition, for
purposes of this definition, a "Trading Day" shall mean, if the Common Stock is
listed on any national securities exchange, a business day during which such
exchange was open for trading and at least one trade of Common Stock was
effected on such exchange on such business day, or, if the Common Stock is not
listed on any national securities exchange but is traded in the over-the-counter
market, a business day during which the over-the-counter market was open for
trading and at least one "eligible dealer" quoted both a bid and asked price for
the Common Stock. An "eligible dealer" for any day shall include any
broker-dealer who quoted both a bid and asked price for such day, but shall not
include any broker-dealer who quoted only a bid or only an asked price for such
day. In the event the Corporation's Common Stock is not publicly traded, the
Fair Market Value of such Common Stock shall be determined by the Committee in
good faith.

     (n) "Good Cause" shall, with respect to any Optionee, have the equivalent
meaning (or the same meaning as "cause" or "for cause") set forth in any
employment agreement between the Optionee and the Corporation or Parent or
Subsidiary or, in the absence of any such agreement, such term shall mean (i)
the Optionee's willful or gross misconduct or willful or gross negligence in the
performance of his duties for the Corporation or for any Parent or Subsidiary
after prior written notice of such misconduct or negligence and the continuance
thereof for a period of 30 days after receipt by such Optionee of such notice,
(ii) the Optionee's intentional or habitual neglect of his duties for the
Corporation or for any Parent or Subsidiary after prior written notice of such
neglect, (iii) the Optionee's theft or misappropriation of funds or other
property of the Corporation or of any Parent or Subsidiary, fraud, criminal
misconduct, breach of fiduciary duty or dishonesty in the performance of his
duties on behalf of the Corporation or any Parent or Subsidiary or commission of
a felony, or crime of moral turpitude or any other conduct reflecting adversely
upon the Corporation or any Parent or Subsidiary, (iv) the Optionee's violation
of any covenant not to compete or not to disclose confidential information with
respect to the Corporation or any Parent or Subsidiary or (v) the direct or
indirect breach by the Optionee of the terms of a consulting contract with the
Corporation or any Parent or Subsidiary.

     (o) "Good Reason" shall, with respect to any Optionee, have the equivalent
meaning set forth in any employment agreement between the Optionee and the
Corporation or any Parent or Subsidiary or, in the absence of any such
agreement, the meaning, if any, that may be set forth in the applicable Option
granted to such Optionee.

                                      -3-

<PAGE>

     (p) "Incentive Stock Option" shall mean a stock option satisfying the
requirements for tax-favored treatment under Section 422 of the Code.

     (q) "Non-Qualified Option" shall mean a stock option which does not satisfy
the requirements for, or which is not intended to be eligible for, tax-favored
treatment under Section 422 of the Code.

     (r) "Option" shall mean an Incentive Stock Option or a Non-Qualified Stock
Option granted pursuant to the provisions of Section VI hereof.

     (s) "Optionee" shall mean an individual who is granted an Option under the
terms of the Plan.

     (t) "Outside Directors" shall mean members of the Board of Directors of the
Corporation who are classified as "outside directors" under Section 162(m) of
the Code.

     (u) "Parent" shall mean a parent corporation of the Corporation within the
meaning of Section 424(e) of the Code.

     (v) "Securities Act" shall mean the Securities Act of 1933, as amended, and
the rules and regulations thereunder.

     (w) "Subsidiary" shall mean a subsidiary corporation of the Corporation
within the meaning of Section 424(f) of the Code.

     (x) "Termination of Consulting Relationship" shall mean the cessation,
abridgment or termination of a Consultant's Consulting Relationship with the
Corporation or any Parent or Subsidiary as a result of (i) the Consultant's
death or Disability, (ii) the cancellation, annulment, expiration, termination
or breach of the written consulting contract between the Corporation (or any
Parent or Subsidiary) and the Consultant (or any other entity) giving rise to
the Consulting Relationship or (iii) if the written consulting contract is not
directly between the Corporation (or any Parent or Subsidiary) and the
Consultant, the Consultant's termination of service with, or sale of all or
substantially all of his equity interest in, the entity which has entered into
the written consulting contract with the Corporation, Parent or Subsidiary.

                                      -4-

<PAGE>

                                       II
                                 ADMINISTRATION

     The Plan shall be administered by the Committee, which shall be composed of
the entire Board of Directors or of two or more Non-Employee Directors, as
defined in Rule 16b-3(b)(3) promulgated under the Exchange Act (to the extent
Section 16 of the Exchange Act is applicable to Options granted hereunder) and
who also qualify as "Outside Directors" (but only with respect to the period
during which Options granted hereunder are subject to the deduction limitations
of Section 162(m) of the Code). Subject to the provisions of the Plan, the
Committee may establish from time to time such regulations, provisions,
proceedings and conditions of awards which, in its sole opinion, may be
advisable in the administration of the Plan. A majority of the Committee shall
constitute a quorum, and, subject to the provisions of Section V of the Plan,
the acts of a majority of the members present at any meeting at which a quorum
is present, or acts approved in writing by all of the members of the Committee,
shall be the acts of the Committee as a whole.

                                      -5-

<PAGE>

                                      III
                                SHARES AVAILABLE

     Subject to the adjustments provided in Section VII of the Plan, the
aggregate number of shares of the Common Stock which may be granted for all
purposes under the Plan shall be 1,000,0000 shares. Shares of Common Stock
underlying awards of securities (derivative or not) shall be counted against the
limitation set forth in the immediately preceding sentence and may be reused to
the extent that the related Option to any individual is settled in cash,
expires, is terminated unexercised, or is forfeited. Common Stock granted to
satisfy Options under the Plan may be authorized and unissued shares of the
Common Stock, issued shares of such Common Stock held in the Corporation's
treasury or shares of Common Stock acquired on the open market.

                                      -6-

<PAGE>

                                       IV
                                   ELIGIBILITY

     Officers and key employees of the Corporation (or of any Parent or
Subsidiary) who are Employees, and Consultants, and directors of the Corporation
or of any Parent or Subsidiary, shall be eligible to participate in the Plan.
Where appropriate under the Plan, directors who are not Employees shall be
referred to as "employees" and their service as directors as "employment".

                                      -7-

<PAGE>

                                       V
                             AUTHORITY OF COMMITTEE

     The Plan shall be administered by, or under the direction of, the
Committee, which shall administer the Plan so as to comply at all times with
Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder, to the extent such compliance is required, and shall otherwise have
plenary authority to interpret the Plan and to make all determinations specified
in or permitted by the Plan or deemed necessary or desirable for its
administration or for the conduct of the Committee's business. All
interpretations and determinations of the Committee may be made on an individual
or group basis and shall be final, conclusive and binding on all interested
parties. Subject to the express provisions of the Plan, the Committee shall have
authority, in its discretion, to determine the persons to whom Options shall be
granted, the times when such Options shall be granted, the number of Options,
the exercise price of each Option, the period(s) during which an Option shall be
exercisable (whether in whole or in part), the restrictions to be applicable to
Options and the other terms and provisions thereof (which need not be
identical). In addition, the authority of the Committee shall include, without
limitation, the following:

     (a) Financing. The arrangement of temporary financing for an Optionee by
registered broker-dealers, under the rules and regulations of the Federal
Reserve Board, for the purpose of assisting an Optionee in the exercise of an
Option, such authority to include the payment by the Corporation of the
commissions of the broker-dealer;

     (b) Procedures for Exercise of Option. The establishment of procedures for
an Optionee (i) to exercise an Option by payment of cash, (ii) to have withheld
from the total number of shares of Common Stock to be acquired upon the exercise
of an Option that number of shares having a Fair Market Value, which, together
with such cash as shall be paid in respect of fractional shares, shall equal the
Option exercise price of the total number of shares of Common Stock to be
acquired, (iii) to exercise all or a portion of an Option by delivering that
number of shares of Common Stock already owned by him having a Fair Market Value
which shall equal the Option exercise price for the portion exercised and, in
cases where an Option is not exercised in its entirety, and subject to the
requirements of the Code, to permit the Optionee to deliver the shares of Common
Stock thus acquired by him in payment of shares of Common Stock to be received
pursuant to the exercise of additional portions of such Option, the effect of
which shall be that an Optionee can in sequence utilize such newly acquired
shares of Common Stock in payment of the exercise price of the entire Option,
together with such cash as shall be paid in respect of fractional shares and
(iv) to engage in any form of "cashless" exercise. The Committee may, in its
sole discretion, require that an exercise described under any one or more of the
methods described under clauses (ii), (iii) or (iv) of the immediately preceding
sentence (to the extent such exercise is, or is deemed to constitute, an
exercise effected by the tendering of Common Stock) be consummated with Common
Stock (i) held by the Optionee for at least six (6) months or (ii) acquired by
the Optionee other than under the Plan or a similar program.

     (c) Withholding. The establishment of a procedure whereby a number of
shares of Common Stock may be withheld from the total number of shares of Common
Stock to be issued upon exercise of an Option or for the tender of shares of
Common Stock owned by any Optionee to meet any obligation of withholding for
taxes incurred by the Optionee upon such exercise. The Committee may, in its
sole discretion, require that if any such withholding is effected by the
tendering of Common Stock, such withholding shall be consummated with Common
Stock (i) held by the Optionee for at least six (6) months or (ii) acquired by
the Optionee other than under the Plan or a similar program.

                                      -8-

<PAGE>

                                       VI
                                  STOCK OPTIONS

     The Committee shall have the authority, in its discretion, to grant
Incentive Stock Options or to grant Non-Qualified Stock Options or to grant both
types of Options. Notwithstanding anything contained herein to the contrary, an
Incentive Stock Option may be granted only to common law employees of the
Corporation or of any Parent or Subsidiary now existing or hereafter formed or
acquired, and not to any director or officer who is not also such a common law
employee. In order for an Option grant to satisfy the "performance-based
compensation" exemption to the deduction limitation under Code Section 162(m),
the maximum number of shares of Common Stock subject to Options which may be
granted to any single Executive during any one calendar year, beginning with the
year grants under the Plan first become subject to such deduction limitations,
is [NUMBER]. The terms and conditions of the Options shall be determined from
time to time by the Committee; provided, however, that the Options granted under
the Plan shall be subject to the following:

     (a) Exercise Price. The Committee shall establish the exercise price at the
time any Option is granted at such amount as the Committee shall determine;
provided, however, that the exercise price for each share of Common Stock
purchasable under any Option which is intended to satisfy the performance-based
compensation exemption to the deduction limitation under Section 162(m) of the
Code or any Incentive Stock Option granted hereunder shall be such amount as the
Committee shall, in its best judgment, determine to be not less than one hundred
percent (100%) of the Fair Market Value per share of Common Stock at the date
the Option is granted; and provided, further, that in the case of an Incentive
Stock Option granted to a person who, at the time such Incentive Stock Option is
granted, owns shares of stock of the Corporation or of any Parent or Subsidiary
which possess more than ten percent (10%) of the total combined voting power of
all classes of shares of stock of the Corporation or of any Parent or
Subsidiary, the exercise price for each share of Common Stock shall be such
amount as the Committee, in its best judgment, shall determine to be not less
than one hundred ten percent (110%) of the Fair Market Value per share of Common
Stock at the date the Option is granted. The exercise price will be subject to
adjustment in accordance with the provisions of Section VII of the Plan.

     (b) Payment of Exercise Price. The exercise price per share of Common Stock
with respect to each Option shall be payable at the time the Option is
exercised. Such price shall be payable in cash or pursuant to any of the other
methods set forth in Sections V(a) or (b) hereof, as determined by the
Committee. Shares of Common Stock delivered to the Corporation in payment of the
exercise price shall be valued at the Fair Market Value of the Common Stock on
the date preceding the date of the exercise of the Option.

     (c) Exercisability of Options. Except as provided in Section VI(e) hereof,
each Option shall be exercisable in whole or in installments, and at such
time(s), and subject to the fulfillment of any conditions on, and to any
limitations on, exercisability as may be determined by the Committee at the time
of the grant of such Options. The right to purchase shares of Common Stock shall
be cumulative so that when the right to purchase any shares of Common Stock has
accrued such shares of Common Stock or any part thereof may be purchased at any
time thereafter until the expiration or termination of the Option.

                                      -9-

<PAGE>

     (d) Expiration of Options. No Incentive Stock Option by its terms shall be
exercisable after the expiration of ten (10) years from the date of grant of the
Option; provided, however, in the case of an Incentive Stock Option granted to a
person who, at the time such Option is granted, owns shares of stock of the
Corporation or of any Parent or Subsidiary possessing more than ten percent
(10%) of the total combined voting power of all classes of shares of stock of
the Corporation or of any Parent or Subsidiary, such Option shall not be
exercisable after the expiration of five (5) years from the date such Option is
granted.

     (e) Exercise Upon Optionee's Termination of Employment or Termination of
Consulting Relationship. If the employment of an Optionee by the Corporation or
by any Parent or Subsidiary is terminated for any reason, any Incentive Stock
Option granted to such Optionee may not be exercised later than three (3) months
(one (1) year in the case of termination due to death or Disability) after the
date of such termination of employment. For purposes of determining whether any
Optionee has incurred a termination of employment (or a Termination of
Consulting Relationship), an Optionee who is both an employee (or a Consultant)
and a director of the Corporation and/or any Parent or Subsidiary shall (with
respect to any Non-Qualified Option that may have been granted to him) be
considered to have incurred a termination of employment (or a Termination of
Consulting Relationship) only upon his termination of service both as an
employee (or as a Consultant) and as a director. Furthermore, (i) if an
Optionee's employment (or Consulting Relationship) is terminated by the
Corporation or by any Parent or Subsidiary for Good Cause or (ii) if an Optionee
voluntarily terminates his employment other than for Good Reason or Disability
or without the written consent of the Committee (or incurs a voluntary
Termination of Consulting Relationship other than for Disability), regardless of
whether such Optionee continues to serve as a director of the Corporation or of
any Parent or Subsidiary, then the Optionee shall, at the time of such
termination of employment (or Termination of Consulting Relationship), forfeit
his rights to exercise any and all of the outstanding Option(s) theretofore
granted to him.

     (f) Maximum Amount of Incentive Stock Options. Each Option under which
Incentive Stock Options are granted shall provide that to the extent the sum of
(i) the Fair Market Value of the shares of Common Stock (determined as of the
time of the grant of the Option) subject to such Incentive Stock Option plus
(ii) the fair market values (determined as of the date(s) of grant of the
option(s)) of all other shares of Common Stock subject to incentive stock
options granted to an Optionee by the Corporation or any Parent or Subsidiary,
which are exercisable for the first time by any person during any calendar year,
exceed(s) One Hundred Thousand Dollars ($100,000), such excess shares of Common
Stock shall not be deemed to be purchasable pursuant to Incentive Stock Options.
The terms of the immediately preceding sentence shall be applied by taking all
options, whether or not granted under the Plan, into account in the order in
which they are granted.

                                      -10-

<PAGE>

     (g) Dividend Equivalents for Outstanding Options. The Committee may, in its
sole discretion, provide that amounts equivalent to dividends shall be payable
with respect to one or more shares of Common Stock subject to vested but
unexercised Option(s) granted to an Optionee. Subject to the terms contained in
the appropriate Option, dividend equivalents related to an Optionee's Options(s)
shall be credited to a suspense account (and remain the property of the
Corporation) at such times (and in such amounts) as are dividends payable to the
then shareholders of record of the Corporation's Common Stock. Dividend
equivalents shall be payable to the Optionee in cash or in Common Stock, as set
forth under the terms of the Option, if and at such time as the related
Option(s) are exercised.

     (h) Reload Options. (i) Concurrently with the award of an Option (for these
purposes, the "Primary Option") to an Optionee, the Committee may, in its sole
discretion, authorize the award of an additional Option or Options (hereinafter
referred to as "Reload Options") to such Optionee providing for the purchase of
shares of Common Stock in an amount equal to the sum of:

               (A) the number of shares of Common Stock, if any, used to
          exercise the Primary Option; and

               (B) to the extent authorized by the Committee, the number of
          shares of Common Stock used to satisfy any tax withholding requirement
          related to the exercise of the Primary Option.

     For purposes of this subsection (h), upon its exercise a Reload Option
     shall be treated as a Primary Option.

          (ii) The grant of a Reload Option will become effective upon the
     exercise of the Primary Option. At the discretion of the Committee, a
     Reload Option may be an Incentive Stock Option.

          (iii) To the extent that the exercise of any Option will result in the
     award of a Reload Option, the Award Agreement under which such Option is
     granted must provide that the exercise of such Primary Option will result
     in the award of a related Reload Option, which will be evidenced under a
     separate Award Agreement. The terms of such Award Agreement shall include,
     among other items, provisions providing that (A) the exercise price per
     share of Common Stock available for purchase under the Reload Option shall
     be no less than 100% of the Fair Market Value of such Common Stock on the
     date the Reload Option is granted and (B) the term of the Reload Option
     shall not extend beyond the remaining term of the Primary Option.

          (iv) Notwithstanding the above, no Reload Option will be granted
     pursuant to the exercise of a Primary Option if such exercise occurs after
     the termination of the Optionee's employment with the Corporation and each
     Parent or Subsidiary.

                                      -11-

<PAGE>

                                      VII
                         ADJUSTMENT OF SHARES; MERGER OR
                     CONSOLIDATION, ETC. OF THE CORPORATION

     (a) Recapitalization, Etc. In the event there is any change in the
outstanding Common Stock of the Corporation by reason of any reorganization,
recapitalization, stock split, stock dividend, combination of shares or
otherwise, there shall be substituted for or added to each share of Common Stock
theretofore appropriated or thereafter subject, or which may become subject, to
any Option, the number and kind of shares of stock or other securities into
which each outstanding share of Common Stock shall be so changed or for which
each such share shall be exchanged, or to which each such share shall be
entitled, as the case may be, and the per share price thereof also shall be
appropriately adjusted. Notwithstanding the foregoing, (i) each such adjustment
with respect to an Incentive Stock Option shall comply with the rules of Section
424(a) of the Code and (ii) in no event shall any adjustment be made which would
render any Incentive Stock Option granted hereunder to be other than an
incentive stock option for purposes of Section 422 of the Code.

     (b) Merger, Consolidation or Change in Control of Corporation. Upon (i) the
merger or consolidation of the Corporation with or into another corporation
(pursuant to which the stockholders of the Corporation immediately prior to such
merger or consolidation will not, as of the date of such merger or
consolidation, own a beneficial interest in shares of voting securities of the
corporation surviving such merger or consolidation having at least a majority of
the combined voting power of such corporation's then outstanding securities), if
the agreement of merger or consolidation does not provide for (1) the
continuance of the Options granted hereunder or (2) the substitution of new
options for Options granted hereunder, or for the assumption of such Options by
the surviving corporation, (ii) the dissolution, liquidation, or sale of all or
substantially all the assets of the Corporation to a person unrelated to the
Corporation or to a direct or indirect owner of a majority of the voting power
of the Corporation's then outstanding voting securities (such sale of assets
being referred to as an "Asset Sale") or (iii) the Change in Control of the
Corporation, then the holder of any such Option theretofore granted and still
outstanding (and not otherwise expired) shall have the right immediately prior
to the effective date of such merger, consolidation, dissolution, liquidation,
Asset Sale or Change in Control of the Corporation to exercise such Option(s) in
whole or in part without regard to any installment provision that may have been
made part of the terms and conditions of such Option(s); provided that all
conditions precedent to the exercise of such Option(s), other than the passage
of time, have occurred. The Corporation, to the extent practicable, shall give
advance notice to affected Optionees of such merger, consolidation, dissolution,
liquidation, Asset Sale or Change in Control of the Corporation. Unless
otherwise provided in the subject Award Agreement or merger, consolidation or
Asset Sale agreement, all such Options and which are not so exercised shall be
forfeited as of the effective time of such merger, consolidation, dissolution,
liquidation or Asset Sale (but not in the case of a Change in Control of the
Corporation). In the event the Corporation becomes a subsidiary of another
corporation (the "New Parent Corporation") with respect to which the
stockholders of the Corporation (as determined immediately before such
transaction) own, immediately after such transaction, a beneficial interest in
shares of voting securities of the New Parent Corporation having at least a
majority of the combined voting power of such New Parent Corporation's then
outstanding securities, there shall be substituted for Options granted
hereunder, options to purchase common stock of the New Parent Corporation. The
substitution described in the immediately preceding sentence shall be effected
in a manner such that any option granted by the New Parent Corporation to
replace an Incentive Stock Option granted hereunder shall satisfy the
requirements of Section 422 of the Code.

                                      -12-

<PAGE>

     (c) Definition of Change in Control of the Corporation. As used herein, a
"Change in Control of the Corporation" shall be deemed to have occurred if any
person (including any individual, firm, partnership or other entity) together
with all Affiliates and Associates (as defined under Rule 12b-2 of the General
Rules and Regulations promulgated under the Exchange Act) of such person (but
excluding (i) a trustee or other fiduciary holding securities under an employee
benefit plan of the Corporation or any subsidiary of the Corporation, (ii) a
corporation owned, directly or indirectly, by the stockholders of the
Corporation in substantially the same proportions as their ownership of the
Corporation, (iii) the Corporation or any subsidiary of the Corporation or (iv)
only as provided in the immediately following sentence, an Optionee together
with all Affiliates and Associates of the Optionee) who is not a stockholder or
an Affiliate or Associate of a stockholder of the Corporation on the date of
stockholder approval of the Plan is or becomes the Beneficial Owner (as defined
in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of
securities of the Corporation representing Fifty Percent (50%) or more of the
combined voting power of the Corporation's then outstanding securities. The
provisions of clause (iv) of the immediately preceding sentence shall apply only
with respect to the Option(s) held by the Optionee who, together with his
Affiliates or Associates, if any, is or becomes the direct or indirect
Beneficial Owner of the percentage of securities set forth in such clause.

                                      -13-

<PAGE>

                                      VIII
                            MISCELLANEOUS PROVISIONS

     (a) Administrative Procedures. The Committee may establish any procedures
determined by it to be appropriate in discharging its responsibilities under the
Plan. All actions and decisions of the Committee shall be final.

     (b) Assignment or Transfer. No grant or award of any Option (other than a
Non-Qualified Option) or any rights or interests therein shall be assignable or
transferable by an Optionee except by will or the laws of descent and
distribution or pursuant to a domestic relations order. During the lifetime of
an Optionee, Incentive Stock Options granted hereunder shall be exercisable only
by the Optionee.

     (c) Investment Representation. With respect to shares of Common Stock
received pursuant to the exercise of an Option, the Committee may require, as a
condition of receiving such securities, that the Optionee furnish to the
Corporation such written representations and information as the Committee deems
appropriate to permit the Corporation, in light of the existence or nonexistence
of an effective registration statement under the Securities Act, to deliver such
securities in compliance with the provisions of the Securities Act.

     (d) Withholding Taxes. In the case of the issuance or distribution of
Common Stock or other securities hereunder upon the exercise of any Option, the
Corporation, as a condition of such issuance or distribution, may require the
payment (through withholding from the Optionee's salary, reduction of the number
of shares of Common Stock or other securities to be issued, or otherwise) of any
federal, state, local or foreign taxes required to be withheld. Each Optionee
may satisfy the withholding obligations by paying to the Corporation (or the
appropriate Parent or Subsidiary) a cash amount equal to the amount required to
be withheld or, subject to the Committee's consent thereto, by tendering to the
Corporation (or to the appropriate Parent or Subsidiary) a number of shares of
Common Stock having a value equivalent to such cash amount, or by use of any
available procedure approved by the Committee as described under Section V(c)
hereof.

     (e) Costs and Expenses. The costs and expenses of administering the Plan
shall be borne by the Corporation and shall not be charged against any award nor
to any individual receiving an Option.

     (f) Funding of Plan. The Plan shall be unfunded. The Corporation shall not
be required to segregate any of its assets to assure the payment of any Option
under the Plan. Neither the Optionees nor any other persons shall have any
interest in any fund or in any specific asset or assets of the Corporation or
any other entity by reason of any Option, except to the extent expressly
provided hereunder.

                                      -14-

<PAGE>

     (g) Other Incentive Plans. The adoption of the Plan does not preclude the
adoption by appropriate means of any other incentive plan for employees.

     (h) Plurals and Gender. Where appearing in the Plan, the masculine gender
shall include the feminine and neuter genders, and the singular shall include
the plural, and vice versa, unless the context clearly indicates a different
meaning.

     (i) Headings. The headings and sub-headings in the Plan are inserted for
the convenience of reference only and are to be ignored in any construction of
the provisions hereof.

     (j) Severability. In case any provision of the Plan shall be held illegal
or void, such illegality or invalidity shall not affect the remaining provisions
of the Plan, but shall be fully severable, and the Plan shall be construed and
enforced as if said illegal or invalid provisions had never been inserted
herein.

     (k) Liability and Indemnification. (i) Neither the Corporation nor any
Parent or Subsidiary shall be responsible in any way for any action or omission
of the Committee, or any other fiduciaries in the performance of their duties
and obligations as set forth in the Plan. Furthermore, neither the Corporation
nor any Parent or Subsidiary shall be responsible for any act or omission of any
of their agents, or with respect to reliance upon advice of their counsel,
provided that the Corporation and/or the appropriate Parent or Subsidiary relied
in good faith upon the action of such agent or the advice of such counsel.

          (ii) Neither the Corporation, any Parent or Subsidiary, the Committee,
     nor any agents, employees, officers, directors or shareholders of any of
     them, nor any other person shall have any liability or responsibility with
     respect to the Plan, except as expressly provided herein.

     (l) Incapacity. If the Committee shall receive evidence satisfactory to it
that a person entitled to exercise any Option is, at the time when such Option
becomes exercisable, a minor, or is physically or mentally incompetent to
receive such Option and to give a valid release thereof, and that another person
or an institution is then maintaining or has custody of such person and that no
guardian, committee or other representative of the estate of such person shall
have been duly appointed, the Committee may permit such Option to be exercised
by such other person or institution, including a custodian under a Uniform Gifts
to Minors Act or corresponding legislation (who shall be an adult, a guardian of
the minor or a trust company), and the release by such other person or
institution shall be a valid and complete discharge for the exercise of such
Option.

     (m) Cooperation of Parties. All parties to the Plan and any person claiming
any interest hereunder agree to perform any and all acts and execute any and all
documents and papers which are necessary or desirable for carrying out the Plan
or any of its provisions.

     (n) Governing Law. All questions pertaining to the validity, construction
and administration of the Plan shall be determined in accordance with the laws
of the State of Delaware.

                                      -15-

<PAGE>

     (o) Nonguarantee of Employment or Consulting Relationship. Nothing
contained in the Plan shall be construed as a contract of employment (or as a
consulting contract) between the Corporation (or any Parent or Subsidiary), and
any employee or Optionee, as a right of any employee or Optionee to be continued
in the employment of (or in a Consulting Relationship with) the Corporation (or
any Parent or Subsidiary), or as a limitation on the right of the Corporation or
any Parent or Subsidiary to discharge any of its employees (or Consultants), at
any time, with or without cause (but subject to the terms of any applicable
employment or consulting agreement).

     (p) Notices. Each notice relating to the Plan shall be in writing and
delivered in person, by recognized overnight courier or by certified mail to the
proper address. Except as otherwise provided in any Award Agreement with respect
to the exercise thereunder, all notices to the Corporation or the Committee
shall be addressed to it at [ADDRESS], Attn: [OFFICER]. All notices to
Optionees, beneficiaries or other persons acting for or on behalf of such
persons shall be addressed to such person at the last address for such person
maintained in the Committee's records.

     (q) Written Agreements. Each Option shall be evidenced by a signed written
agreement between the Corporation and the Optionee containing the terms and
conditions of the award.

                                      -16-

<PAGE>

                                       IX
                        AMENDMENT OR TERMINATION OF PLAN

     The Board of Directors of the Corporation shall have the right to amend,
suspend or terminate the Plan at any time, provided that no amendment shall be
made which shall increase the total number of shares of the Common Stock of the
Corporation which may be issued and sold pursuant to Incentive Stock Options,
reduce the minimum exercise price in the case of an Incentive Stock Option or
modify the provisions of the Plan relating to eligibility with respect to
Incentive Stock Options unless such amendment is made by or with the approval of
the stockholders of the Corporation within 12 months of the effective date of
such amendment, but only if such approval is required by any applicable
provision of law. Furthermore, no amendment to the Plan may change (i) the
maximum amount of Options that may be granted on an annual basis or (ii) the
exercise price of any options granted hereunder without the prior approval of
the Corporation's stockholders in the manner required under Section 162(m) of
the Code; provided, however, that such stockholder consent is required only
during such period that the deduction limitations under Code Section 162(m)
apply to Options granted under the Plan. The Board of Directors of the
Corporation shall also be authorized to amend the Plan and the Options granted
thereunder to maintain qualification as "incentive stock options" within the
meaning of Section 422 of the Code, if applicable. Except as otherwise provided
herein, no amendment, suspension or termination of the Plan shall alter or
impair any vested Option previously granted under the Plan without the consent
of the holder thereof.

                                      -17-

<PAGE>

                                       X
                                  TERM OF PLAN

     The Plan shall automatically terminate on the day immediately preceding the
tenth (10th) anniversary of the date the Plan was adopted by the Board of
Directors of the Corporation, unless sooner terminated by such Board of
Directors. No Options may be granted under the Plan subsequent to the
termination of the Plan.

                                      -18-

<PAGE>

--------------------------------------------------------------------------------
                           LEISURE TRAVEL GROUP, INC.

                             2000 STOCK OPTION PLAN
--------------------------------------------------------------------------------

                                 ---------------

                        EFFECTIVE AS OF FEBRUARY 23, 2000

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