Document:

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                                   UPROAR INC.
                            2000 STOCK INCENTIVE PLAN

                                  ARTICLE ONE

                               GENERAL PROVISIONS

I.       PURPOSE OF THE PLAN

                  This 2000 Stock Incentive Plan is intended to promote the
interests of Uproar, Inc., a Delaware corporation, by providing eligible persons
with the opportunity to acquire a proprietary interest, or otherwise increase
their proprietary interest, in the Corporation as an incentive for them to
remain in the service of the Corporation, as a reward for excellent performance
in the service of the Corporation and as a means of aligning their personal
interests more closely with the interest of the stockholders.

                  Capitalized terms shall have the meanings assigned to such
terms in the attached Appendix.

II.      STRUCTURE OF THE PLAN

         A. The Plan shall be divided into three separate equity incentive
programs:

                  (i) the Discretionary Option Grant Program under which
         eligible persons may, at the discretion of the Plan Administrator, be
         granted options to purchase shares of Common Stock,

                  (ii) the Stock Issuance Program under which eligible persons
         may, at the discretion of the Plan Administrator, be issued shares of
         Common Stock directly, either through the immediate purchase of such
         shares or as a bonus for services rendered the Corporation (or any
         Parent or Subsidiary), and

                  (iii) the Automatic Option Grant Program under which eligible
         non-employee Board members shall automatically receive options at
         periodic intervals to purchase shares of Common Stock.

         B. The provisions of Articles One and Five shall apply to all equity
programs under the Plan and shall govern the interests of all persons under the
Plan.

III.     ADMINISTRATION OF THE PLAN

         A. Prior to the Section 12 Registration Date, the Discretionary Option
Grant and Stock Issuance Programs shall be administered by the Board unless
otherwise determined by the Board. Beginning with the Section 12 Registration
Date, the following provisions shall govern the administration of the Plan:

                  (i) The Board shall have the authority to administer the
         Discretionary Option Grant and Stock Issuance Programs with respect to
         Section 16 Insiders but may delegate such authority in whole or in part
         to the Primary Committee.

                  (ii) Administration of the Discretionary Option Grant and
         Stock Issuance Programs with respect to all other persons eligible to
         participate in those programs may, at the Board's discretion, be vested
         in the Primary Committee or a Secondary Committee, or the Board may
         retain the power to administer those programs with respect to all such
         persons.

                  (iii) Administration of the Automatic Option Grant Program
         shall be self-executing in accordance with the terms of that program.

         B. Each Plan Administrator shall, within the scope of its
administrative jurisdiction under the Plan, have full power and authority
subject to the provisions of the Plan:

                  (i) to establish such rules as it may deem appropriate for
         proper administration of the Plan, to make all factual determinations,

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         to construe and interpret the provisions of the Plan and the awards
         thereunder and to resolve any and all ambiguities thereunder;

                  (ii) to determine, with respect to awards made under the
         Discretionary Option Grant and Stock Issuance Programs, which eligible
         persons are to receive such awards, the time or times when such awards
         are to be made, the number of shares to be covered by each such award,
         the vesting schedule (if any) applicable to the award, the status of a
         granted option as either an Incentive Option or a Non-Statutory Option
         and the maximum term for which the option is to remain outstanding;

                  (iii) to amend, modify or cancel any outstanding award with
         the consent of the holder or accelerate the vesting of such award; and

                  (iv) to take such other discretionary actions as permitted
         pursuant to the terms of the applicable program.

Decisions of each Plan Administrator within the scope of its administrative
functions under the Plan shall be final and binding on all parties.

         C. Members of the Primary Committee or any Secondary Committee shall
serve for such period of time as the Board may determine and may be removed by
the Board at any time. The Board may also at any time terminate the functions of
any Secondary Committee and reassume all powers and authority previously
delegated to such Committee.

         D. Service on the Primary Committee or the Secondary Committee shall
constitute service as a Board member, and members of each such Committee shall
accordingly be entitled to full indemnification and reimbursement as Board
members for their service on such Committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good
faith with respect to the Plan or any options or stock issuances under the Plan.

IV.      ELIGIBILITY

         A. The persons eligible to participate in the Discretionary Option
Grant and Stock Issuance Programs are as follows:

                  (i) Employees,

                  (ii) non-employee members of the Board or the board of
         directors of any Parent or Subsidiary, and

                  (iii) consultants and other independent advisors who provide
         services to the Corporation (or any Parent or Subsidiary).

         B. Only non-employee Board members shall be eligible to participate in
the Automatic Option Grant Program.

V.       STOCK SUBJECT TO THE PLAN

         A. The stock issuable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock, including shares repurchased by the
Corporation on the open market. The maximum number of shares of Common Stock
initially reserved for issuance over the term of the Plan shall not exceed Six
Million Seven Hundred Fifty Thousand (6,750,000) shares. Such reserve shall
consist of (i) the number of shares estimated to remain available for issuance,
as of the Section 12 Registration Date, under the Predecessor Plan, including
the shares subject to the outstanding options to be incorporated into the Plan
and the additional shares which would otherwise be available for future grant,
plus (ii) an increase of One Million Three Hundred Fifty Thousand (1,350,000)
shares authorized by the Board subject to stockholder approval prior to the
Section 12 Registration Date.

         B. The number of shares of Common Stock available for issuance under
the Plan shall automatically increase on the first trading day of January each
calendar year during the term of the Plan, beginning with the calendar year
2001, by an amount equal to one percent (1%) of the total number of shares of

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Common Stock outstanding on the last trading day in December of the immediately
preceding calendar year, but in no event shall such annual increase exceed Four
Hundred Thousand (400,000) shares.

         C. No one person participating in the Plan may receive options,
separately exercisable stock appreciation rights and direct stock issuances for
more than Two Million (2,000,000) shares of Common Stock in the aggregate per
calendar year.

         D. Shares of Common Stock subject to outstanding options (including
options incorporated into this Plan from the Predecessor Plan) shall be
available for subsequent issuance under the Plan to the extent those options
expire, terminate or are cancelled for any reason prior to exercise in full.
Unvested shares issued under the Plan and subsequently repurchased by the
Corporation, at the original exercise or issue price paid per share, pursuant to
the Corporation's repurchase rights under the Plan shall be added back to the
number of shares of Common Stock reserved for issuance under the Plan and shall
accordingly be available for reissuance through one or more subsequent options
or direct stock issuances under the Plan. However, should the exercise price of
an option under the Plan be paid with shares of Common Stock or should shares of
Common Stock otherwise issuable under the Plan be withheld by the Corporation in
satisfaction of the withholding taxes incurred in connection with the exercise
of an option or the vesting of a stock issuance under the Plan, then the number
of shares of Common Stock available for issuance under the Plan shall be reduced
by the gross number of shares for which the option is exercised or which vest
under the stock issuance, and not by the net number of shares of Common Stock
issued to the holder of such option or stock issuance. Shares of Common Stock
underlying one or more stock appreciation rights exercised under the Plan shall
not be available for subsequent issuance.

         E. If any change is made to the Common Stock by reason of any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without
the Corporation's receipt of consideration, appropriate adjustments shall be
made to (i) the maximum number and/or class of securities issuable under the
Plan, (ii) the number and/or class of securities by which the share reserve is
to increase each calendar year pursuant to the automatic share increase
provisions of the Plan, (iii) the number and/or class of securities for which
any one person may be granted options, separately exercisable stock appreciation
rights and direct stock issuances under the Plan per calendar year, (iv) the
number and/or class of securities for which grants are subsequently to be made
under the Automatic Option Grant Program to new and continuing non-employee
Board members, (v) the number and/or class of securities and the exercise price
per share in effect under each outstanding option under the Plan and (vi) the
number and/or class of securities and price per share in effect under each
outstanding option incorporated into this Plan from the Predecessor Plan. Such
adjustments to the outstanding options are to be effected in a manner which
shall preclude the enlargement or dilution of rights and benefits under such
options. The adjustments determined by the Plan Administrator shall be final,
binding and conclusive.

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                                  ARTICLE TWO

                       DISCRETIONARY OPTION GRANT PROGRAM

I.       OPTION TERMS

         Each option shall be evidenced by one or more documents in the form
approved by the Plan Administrator; provided, however, that each such document
shall comply with the terms specified below. Each document evidencing an
Incentive Option shall, in addition, be subject to the provisions of the Plan
applicable to such options.

A.       Exercise Price.

         1. The exercise price per share shall be fixed by the Plan
Administrator at the time of the option grant and may be less than, equal to or
greater than the Fair Market Value per share of Common Stock on the option grant
date.

         2. The exercise price shall become immediately due upon exercise of the
option and shall, subject to the provisions of Section II of Article Five and
the documents evidencing the option, be payable in one or more of the following
forms:

                  (i) cash or check made payable to the Corporation;

                  (ii) shares of Common Stock held for the requisite period
         necessary to avoid a charge to the Corporation's earnings for financial
         reporting purposes and valued at Fair Market Value on the Exercise
         Date, or

                  (iii) to the extent the option is exercised for vested shares,
         through a special sale and remittance procedure pursuant to which the
         Optionee shall concurrently provide irrevocable instructions to (a) a
         Corporation-designated brokerage firm to effect the immediate sale of
         the purchased shares and remit to the Corporation, out of the sale
         proceeds available on the settlement date, sufficient funds to cover
         the aggregate exercise price payable for the purchased shares plus all
         applicable Federal, state and local income and employment taxes
         required to be withheld by the Corporation by reason of such exercise
         and (b) the Corporation to deliver the certificates for the purchased
         shares directly to such brokerage firm in order to complete the sale.

         Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

         B. Exercise and Term of Options. Each option shall be exercisable at
such time or times, during such period and for such number of shares as shall be
determined by the Plan Administrator and set forth in the documents evidencing
the option. However, no option shall have a term in excess of ten (10) years
measured from the option grant date.

         C. Cessation of Service.

            1. The following provisions shall govern the exercise of any options
outstanding at the time of an Optionee's cessation of Service or death:

                  (i) Any option outstanding at the time of the Optionee's
         cessation of Service for any reason shall remain exercisable for such
         period of time thereafter as shall be determined by the Plan
         Administrator and set forth in the documents evidencing the option, but
         no such option shall be exercisable after the expiration of the option
         term.

                  (ii) Any option exercisable in whole or in part by the
         Optionee at the time of death may be subsequently exercised by his or
         her Beneficiary.

                  (iii) During the applicable post-Service exercise period, the
         option may not be exercised in the aggregate for more than the number
         of vested shares for which the option was exercisable on the date of
         the Optionee's cessation of Service. Upon the expiration of the
         applicable post-Service

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         exercise period or (if earlier) upon the expiration of the option term,
         the option shall terminate and cease to be outstanding for any vested
         shares for which the option has not been exercised. However, the option
         shall, immediately upon the Optionee's cessation of Service, terminate
         and cease to be outstanding to the extent the option is not otherwise
         at that time exercisable for vested shares.

                  (iv) Should the Optionee's Service be terminated for
         Misconduct or should the Optionee engage in Misconduct while his or her
         options are outstanding, then all such options shall terminate
         immediately and cease to be outstanding.

         2. The Plan Administrator shall have complete discretion, exercisable
either at the time an option is granted or at any time while the option remains
outstanding:

                  (i) to extend the period of time for which the option is to
         remain exercisable following the Optionee's cessation of Service to
         such period of time as the Plan Administrator shall deem appropriate,
         but in no event beyond the expiration of the option term, and/or

                  (ii) to permit the option to be exercised, during the
         applicable post-Service exercise period, for one or more additional
         installments in which the Optionee would have vested had the Optionee
         continued in Service.

         D. Stockholder Rights. The holder of an option shall have no
stockholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become a
holder of record of the purchased shares.

         E. Repurchase Rights. The Plan Administrator shall have the discretion
to grant options which are exercisable for unvested shares of Common Stock.
Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to repurchase, at the exercise price paid per
share, any or all of those unvested shares. The terms upon which such repurchase
right shall be exercisable (including the period and procedure for exercise and
the appropriate vesting schedule for the purchased shares) shall be established
by the Plan Administrator and set forth in the document evidencing such
repurchase right.

         F. Limited Transferability of Options. During the lifetime of the
Optionee, Incentive Options shall be exercisable only by the Optionee and shall
not be assignable or transferable other than by will or by the laws of
inheritance following the Optionee's death. Non-Statutory Options shall be
subject to the same restrictions, except that a Non-Statutory Option may, to the
extent permitted by the Plan Administrator, be assigned in whole or in part
during the Optionee's lifetime (i) as a gift to one or more members of the
Optionee's immediate family, to a trust in which Optionee and/or one or more
such family members hold more than fifty percent (50%) of the beneficial
interest or to an entity in which more than fifty percent (50%) of the voting
interests are owned by one or more such family members or (ii) pursuant to a
domestic relations order. The terms applicable to the assigned portion shall be
the same as those in effect for the option immediately prior to such assignment
and shall be set forth in such documents issued to the assignee as the Plan
Administrator may deem appropriate.

                  Notwithstanding the foregoing, the Optionee may also designate
one or more persons as the beneficiary or beneficiaries of his or her
outstanding options, and those options shall, in accordance with such
designation, automatically be transferred to such beneficiary or beneficiaries
upon the Optionee's death while holding those options. Such beneficiary or
beneficiaries shall take the transferred options subject to all the terms and
conditions of the applicable agreement evidencing each such transferred option,
including (without limitation) the limited time period during which the option
may be exercised following the Optionee's death.

         II.      INCENTIVE OPTIONS

                  The terms specified below shall be applicable to all Incentive
Options. Except as modified by the provisions of this Section II, all the
provisions of Articles One, Two and Six shall be applicable to Incentive
Options. Options which are specifically designated as Non-Statutory Options when
issued under the Plan shall not be subject to the terms of this Section II.

         A. Eligibility. Incentive Options may only be granted to Employees.

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         B. Exercise Price. The exercise price per share shall not be less than
one hundred percent (100%) of the Fair Market Value per share of Common Stock on
the option grant date.

         C. Dollar Limitation. The aggregate Fair Market Value of the shares of
Common Stock (determined as of the respective date or dates of grant) for which
one or more options granted to any Employee under the Plan (or any other option
plan of the Corporation or any Parent or Subsidiary) may for the first time
become exercisable as Incentive Options during any one calendar year shall not
exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee holds two (2) or more such options which become exercisable for the
first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

         D. 10% Stockholder. If any Employee to whom an Incentive Option is
granted is a 10% Stockholder, then the exercise price per share shall not be
less than one hundred ten percent (110%) of the Fair Market Value per share of
Common Stock on the option grant date, and the option term shall not exceed five
(5) years measured from the option grant date.

    III. CHANGE IN CONTROL/HOSTILE TAKE-OVER

         A. Each option outstanding at the time of a Change in Control but not
otherwise fully-vested shall automatically accelerate so that each such option
shall, immediately prior to the effective date of the Change in Control, become
exercisable for all of the shares of Common Stock at the time subject to that
option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. However, an outstanding option shall not so accelerate
if and to the extent: (i) such option is, in connection with the Change in
Control, assumed or otherwise continued in full force and effect by the
successor corporation (or parent thereof) pursuant to the terms of the Change in
Control, (ii) such option is replaced with a cash incentive program of the
successor corporation which preserves the spread existing at the time of the
Change in Control on the shares of Common Stock for which the option is not
otherwise at that time exercisable and provides for subsequent payout in
accordance with the same vesting schedule applicable to those option shares or
(iii) the acceleration of such option is subject to other limitations imposed by
the Plan Administrator at the time of the option grant. Each option outstanding
at the time of the Change in Control shall terminate as provided in Section
III.C. of this Article Two.

         B. All outstanding repurchase rights shall also terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, in the event of any Change in Control, except to
the extent: (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) or otherwise continue in full force and effect
pursuant to the terms of the Change in Control or (ii) such accelerated vesting
is precluded by other limitations imposed by the Plan Administrator at the time
the repurchase right is issued.

         C. Immediately following the consummation of the Change in Control, all
outstanding options shall terminate and cease to be outstanding, except to the
extent assumed by the successor corporation (or parent thereof) or otherwise
expressly continued in full force and effect pursuant to the terms of the Change
in Control.

         D. Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted, immediately after such Change in Control, to
apply to the number and class of securities which would have been issuable to
the Optionee in consummation of such Change in Control had the option been
exercised immediately prior to such Change in Control. Appropriate adjustments
to reflect such Change in Control shall also be made to (i) the exercise price
payable per share under each outstanding option, provided the aggregate exercise
price payable for such securities shall remain the same, (ii) the maximum number
and/or class of securities available for issuance over the remaining term of the
Plan and (iii) the maximum number and/or class of securities for which any one
person may be granted options, separately exercisable stock appreciation rights
and direct stock issuances under the Plan per calendar year. To the extent the
actual holders of the Corporation's outstanding Common Stock receive cash
consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of the
outstanding options, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of
Common Stock in such Change in Control.

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         E. The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Change in Control,
whether or not those options are assumed or otherwise continued in full force
and effect pursuant to the terms of the Change in Control. Any such option shall
accordingly become exercisable, immediately prior to the effective date of such
Change in Control, for all of the shares of Common Stock at the time subject to
that option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. In addition, the Plan Administrator may at any time
provide that one or more of the Corporation's repurchase rights shall not be
assignable in connection with such Change in Control and shall terminate upon
the consummation of such Change in Control.

         F. The Plan Administrator may at any time provide that one or more
options will automatically accelerate upon an Involuntary Termination of the
Optionee's Service within a designated period (not to exceed eighteen (18)
months) following the effective date of any Change in Control in which those
options do not otherwise accelerate. Any options so accelerated shall remain
exercisable for fully-vested shares until the earlier of (i) the expiration of
the option term or (ii) the expiration of the one (1) year period measured from
the effective date of the Involuntary Termination. In addition, the Plan
Administrator may at any time provide that one or more of the Corporation's
repurchase rights shall immediately terminate upon such Involuntary Termination.

         G. The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Hostile Take-Over.
Any such option shall become exercisable, immediately prior to the effective
date of such Hostile Take-Over, for all of the shares of Common Stock at the
time subject to that option and may be exercised for any or all of those shares
as fully-vested shares of Common Stock. In addition, the Plan Administrator may
at any time provide that one or more of the Corporation's repurchase rights
shall terminate automatically upon the consummation of such Hostile Take-Over.
Alternatively, the Plan Administrator may condition such automatic acceleration
and termination upon an Involuntary Termination of the Optionee's Service within
a designated period (not to exceed eighteen (18) months) following the effective
date of such Hostile Take-Over. Each option so accelerated shall remain
exercisable for fully-vested shares until the expiration or sooner termination
of the option term.

         H. The portion of any Incentive Option accelerated in connection with a
Change in Control or Hostile Take Over shall remain exercisable as an Incentive
Option only to the extent the applicable One Hundred Thousand Dollar ($100,000)
limitation is not exceeded. To the extent such dollar limitation is exceeded,
the accelerated portion of such option shall be exercisable as a Non-Statutory
Option under the Federal tax laws.

     IV. STOCK APPRECIATION RIGHTS

         The Plan Administrator may, subject to such conditions as it may
determine, grant to selected Optionees stock appreciation rights which will
allow the holders of those rights to elect between the exercise of the
underlying option for shares of Common Stock and the surrender of that option in
exchange for a distribution from the Corporation in an amount equal to the
excess of (a) the Option Surrender Value of the number of shares for which the
option is surrendered over (b) the aggregate exercise price payable for such
shares. The distribution may be made in shares of Common Stock valued at Fair
Market Value on the option surrender date, in cash, or partly in shares and
partly in cash, as the Plan Administrator shall in its sole discretion deem
appropriate.

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                                 ARTICLE THREE

                             STOCK ISSUANCE PROGRAM

I.    STOCK ISSUANCE TERMS

      Shares of Common Stock may be issued under the Stock Issuance
Program through direct and immediate issuances without any intervening options.
Shares of Common Stock may also be issued under the Stock Issuance Program
pursuant to share right awards which entitle the recipients to receive those
shares upon the attainment of designated performance goals or Service
requirements. Each such award shall be evidenced by one or more documents which
comply with the terms specified below.

      A. Purchase Price.

         1. The purchase price per share of Common Stock subject to direct
issuance shall be fixed by the Plan Administrator and may be less than, equal to
or greater than the Fair Market Value per share of Common Stock on the issue
date.

         2. Subject to the provisions of Section II of Article Five, shares of
Common Stock may be issued under the Stock Issuance Program for any of the
following items of consideration which the Plan Administrator may deem
appropriate in each individual instance:

                  (i) cash or check made payable to the Corporation, or

                  (ii) past services rendered to the Corporation (or any Parent
         or Subsidiary).

      B. Vesting/Issuance Provisions.

         1. The Plan Administrator may issue shares of Common Stock which are
fully and immediately vested upon issuance or which are to vest in one or more
installments over the Participant's period of Service or upon attainment of
specified performance objectives. Alternatively, the Plan Administrator may
issue share right awards which shall entitle the recipient to receive a
specified number of vested shares of Common Stock upon the attainment of one or
more performance goals or Service requirements established by the Plan
Administrator.

         2. Any new, substituted or additional securities or other property
(including money paid other than as a regular cash dividend) which the
Participant may have the right to receive with respect to his or her unvested
shares of Common Stock by reason of any stock dividend, stock split,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration shall be issued subject to (i) the same vesting
requirements applicable to the Participant's unvested shares of Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

         3. The Participant shall have full stockholder rights with respect to
the issued shares of Common Stock, whether or not the Participant's interest in
those shares is vested. Accordingly, the Participant shall have the right to
vote such shares and to receive any regular cash dividends paid on such shares.

         4. Should the Participant cease to remain in Service while holding one
or more unvested shares of Common Stock, or should the performance objectives
established with respect to one or more such unvested shares of Common Stock not
to be attained, then those shares shall be immediately surrendered to the
Corporation for cancellation, and the Participant shall have no further
stockholder rights with respect to those shares. To the extent the surrendered
shares were previously issued to the Participant for consideration paid in cash
or cash equivalent (including the Participant's purchase-money indebtedness),
the Corporation shall repay to the Participant the cash consideration paid for
the surrendered shares and shall cancel the unpaid principal balance of any
outstanding purchase-money note of the Participant attributable to the
surrendered shares.

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         5. The Plan Administrator may waive the surrender and cancellation of
one or more unvested shares of Common Stock (or other assets attributable
thereto) which would otherwise occur upon the cessation of the Participant's
Service or the non-attainment of the performance objectives applicable to those
shares. Such waiver shall result in the immediate vesting of the Participant's
interest in the shares of Common Stock as to which the waiver applies. Such
waiver may be effected at any time, whether before or after the Participant's
cessation of Service or the attainment or non-attainment of the applicable
performance objectives.

         6. Outstanding share right awards shall automatically terminate, and no
shares of Common Stock shall actually be issued in satisfaction of those awards,
if the performance goals or Service requirements established for such awards are
not attained. The Plan Administrator, however, shall have the authority to issue
shares of Common Stock in satisfaction of one or more outstanding share right
awards as to which the designated performance goals or Service requirements are
not attained.

 II.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

      A. All of the Corporation's outstanding repurchase rights shall terminate
automatically, and all the shares of Common Stock subject to those terminated
rights shall immediately vest in full, in the event of any Change in Control,
except to the extent (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) or otherwise continue in full force and effect
pursuant to the terms of the Change in Control or (ii) such accelerated vesting
is precluded by other limitations imposed by the Plan Administrator at the time
the repurchase right is issued.

      B. The Plan Administrator may at any time provide for the automatic
termination of one or more of those outstanding repurchase rights and the
immediate vesting of the shares of Common Stock subject to those terminated
rights upon (i) a Change in Control or Hostile Take-Over or (ii) an Involuntary
Termination of the Participant's Service within a designated period (not to
exceed eighteen (18) months) following the effective date of any Change in
Control or Hostile Take-Over in which those repurchase rights are assigned to
the successor corporation (or parent thereof) or otherwise continue in full
force and effect.

 III. SHARE ESCROW/LEGENDS

      Unvested shares may, in the Plan Administrator's discretion, be held in
escrow by the Corporation until the Participant's interest in such shares vests
or may be issued directly to the Participant with restrictive legends on the
certificates evidencing those unvested shares.

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                                  ARTICLE FOUR

                         AUTOMATIC OPTION GRANT PROGRAM

 I.   OPTION TERMS

      A. Grant Dates. Options shall be made on the dates specified below:

         1. Each individual who is first elected or appointed as a non-employee
Board member at any time after the Underwriting Date shall automatically be
granted, on the date of such initial election or appointment, a Non-Statutory
Option to purchase Thirty Thousand (30,000) shares of Common Stock, provided
that individual has not been in the employ of the Corporation (or any Parent or
Subsidiary) at any time during the two (2) years immediately preceding such
election or appointment.

         2. On the date of each Annual Stockholders Meeting beginning with the
2001 Annual Stockholders Meeting, each individual who is to continue to serve as
a non-employee Board member shall automatically be granted a Non-Statutory
Option to purchase Five Thousand (5,000) shares of Common Stock, provided that
the individual has served as a non-employee Board member for at least six (6)
months.

      B. Exercise Price.

         1. The exercise price per share shall be equal to one hundred percent
(100%) of the Fair Market Value per share of Common Stock on the option grant
date.

         2. The exercise price shall be payable in one or more of the
alternative forms authorized under the Discretionary Option Grant Program.
Except to the extent the sale and remittance procedure specified thereunder is
utilized, payment of the exercise price for the purchased shares must be made on
the Exercise Date.

      C. Option Term. Each option shall have a term of ten (10) years measured
from the option grant date.

      D. Exercise and Vesting of Options. Each option shall be immediately
exercisable for any or all of the option shares. However, any unvested shares
purchased under the option shall be subject to repurchase by the Corporation, at
the exercise price paid per share, upon the Optionee's cessation of Board
service prior to vesting in those shares. Each initial 30,000-share option shall
vest, and the Corporation's repurchase right shall lapse, in a series of three
(3) successive equal annual installments over the Optionee's period of continued
service as a Board member, with the first such installment to vest upon the
Optionee's completion of one (1) year of Board service measured from the option
grant date. Each annual 5,000-share option shall vest, and the Corporation's
repurchase right shall lapse, in a series of four (4) successive equal quarterly
installments over the Optionee's period of continued service as a Board member,
with the first such installment to vest upon the Optionee's completion of three
(3) months of Board service measured from the option grant date.

      E. Cessation of Board Service. The following provisions shall govern the
exercise of any options outstanding at the time of an Optionee's cessation of
Board service:

                  (i) Any option outstanding at the time of the Optionee's
         cessation of Board service for any reason shall remain exercisable for
         a twelve (12)-month period following the date of such cessation of
         Board service, but in no event shall such option be exercisable after
         the expiration of the option term.

                  (ii) Any option exercisable in whole or in part by the
         Optionee at the time of death may be subsequently exercised by his or
         her Beneficiary.

                  (iii) Following the Optionee's cessation of Board service, the
         option may not be exercised in the aggregate for more than the number
         of shares for which the option was exercisable on the date of such
         cessation of Board service. Upon the expiration of the applicable
         exercise period or (if earlier) upon the expiration of the option term,
         the option shall terminate and cease to be outstanding for any vested

                                       10
<PAGE>

         shares for which the option has not been exercised. However, the option
         shall, immediately upon the Optionee's cessation of Board service,
         terminate and cease to be outstanding for any and all shares for which
         the option is not otherwise at that time exercisable.

                  (iv) However, should the Optionee cease to serve as a Board
         member by reason of death or Permanent Disability, then all shares at
         the time subject to the option shall immediately vest so that such
         option may, during the twelve (12)-month exercise period following such
         cessation of Board service, be exercised for all or any portion of
         those shares as fully-vested shares of Common Stock.

II.     CHANGE IN CONTROL/HOSTILE TAKE-OVER

         A. In the event of any Change in Control or Hostile Take-Over, the
shares of Common Stock at the time subject to each outstanding option but not
otherwise vested shall automatically vest in full so that each such option may,
immediately prior to the effective date of such Change in Control or Hostile
Take-Over, became fully exercisable for all of the shares of Common Stock at the
time subject to such option and maybe exercised for all or any of those shares
as fully-vested shares of Common Stock. Each such option accelerated in
connection with a Change in Control shall terminate upon the Change in Control,
except to the extent assumed by the successor corporation (or parent thereof) or
otherwise continued in full force and effect pursuant to the terms of the Change
in Control. Each such option accelerated in connection with a Hostile Take-Over
shall remain exercisable until the expiration or sooner termination of the
option term.

         B. All outstanding repurchase rights shall automatically terminate, and
the shares of Common Stock subject to those terminated rights shall immediately
vest in full, in the event of any Change in Control or Hostile Take-Over.

         C. Upon the occurrence of a Hostile Take-Over, the Optionee shall have
a thirty (30)-day period in which to surrender to the Corporation each of his or
her outstanding options. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an amount equal to the excess of (i) the
Option Surrender Value of the shares of Common Stock at the time subject to each
surrendered option (whether or not the option is otherwise at the time
exercisable for those shares) over (ii) the aggregate exercise price payable for
such shares. Such cash distribution shall be paid within five (5) days following
the surrender of the option to the Corporation.

         D. Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted to apply to the number and class of securities
which would have been issuable to the Optionee in consummation of such Change in
Control had the option been exercised immediately prior to such Change in
Control. Appropriate adjustments shall also be made to the exercise price
payable per share under each outstanding option, provided the aggregate exercise
price payable for such securities shall remain the same. To the extent the
actual holders of the Corporation's outstanding Common Stock receive cash
consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of the
outstanding options, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of
Common Stock in such Change in Control.

III.     REMAINING TERMS

         The remaining terms of each option granted under the Automatic
Option Grant Program shall be the same as the terms in effect for options made
under the Discretionary Option Grant Program.

                                       11
<PAGE>

                                  ARTICLE FIVE

                                  MISCELLANEOUS

I.       NO IMPAIRMENT OF AUTHORITY

         Outstanding awards shall in no way affect the right of the
Corporation to adjust, reclassify, reorganize or otherwise change its capital or
business structure or to merge, consolidate, dissolve, liquidate or sell or
transfer all or any part of its business or assets.

II.      FINANCING

         The Plan Administrator may permit any Optionee or Participant to pay
the option exercise price under the Discretionary Option Grant Program or the
purchase price of shares issued under the Stock Issuance Program by delivering a
full-recourse, interest bearing promissory note payable in one or more
installments. The terms of any such promissory note (including the interest rate
and the terms of repayment) shall be established by the Plan Administrator in
its sole discretion. In no event may the maximum credit available to the
Optionee or Participant exceed the sum of (i) the aggregate option exercise
price or purchase price payable for the purchased shares (less the par value of
such shares) plus (ii) any Federal, state and local income and employment tax
liability incurred by the Optionee or the Participant in connection with the
option exercise or share purchase.

III.     TAX WITHHOLDING

         A. The Corporation's obligation to deliver shares of Common Stock upon
the exercise of options or the issuance or vesting of such shares under the Plan
shall be subject to the satisfaction of all applicable Federal, state and local
income and employment tax withholding requirements.

         B. The Plan Administrator may, in its discretion, provide any or all
holders of Non-Statutory Options or unvested shares of Common Stock under the
Plan with the right to use shares of Common Stock in satisfaction of all or part
of the Withholding Taxes incurred by such holders in connection with the
exercise of their options or the vesting of their shares. Such right may be
provided to any such holder in either or both of the following formats:

            Stock Withholding: The election to have the Corporation withhold,
from the shares of Common Stock otherwise issuable upon the exercise of such
Non-Statutory Option or the vesting of such shares, a portion of those shares
with an aggregate Fair Market Value equal to the percentage of the Withholding
Taxes (not to exceed one hundred percent (100%)) designated by the holder.

            Stock Delivery: The election to deliver to the Corporation, at the
time the Non-Statutory Option is exercised or the shares vest, one or more
shares of Common Stock previously acquired by such holder (other than in
connection with the option exercise or share vesting triggering the Withholding
Taxes) with an aggregate Fair Market Value equal to the percentage of the Taxes
(not to exceed one hundred percent (100%)) designated by the holder.

IV.      EFFECTIVE DATE AND TERM OF THE PLAN

         A. The Plan shall become effective immediately upon the Plan Effective
Date. Options may be granted under the Discretionary Option Grant Program at any
time on or after the Plan Effective Date. However, no options granted under the
Plan may be exercised, and no shares shall be issued under the Plan, until the
Plan is approved by the Corporation's stockholders. If such stockholder approval
is not obtained within twelve (12) months after the Plan Effective Date, then
all options previously granted under this Plan shall terminate and cease to be
outstanding, and no further options shall be granted and no shares shall be
issued under the Plan.

         B. The Plan shall serve as the successor to the Predecessor Plan, and
no further options or direct stock issuances shall be made under the Predecessor
Plan after the Section 12 Registration Date. All options outstanding under the
Predecessor Plan on the Section 12 Registration Date shall be incorporated into

                                       12
<PAGE>

the Plan at that time and shall be treated as outstanding options under the
Plan. However, each outstanding option so incorporated shall continue to be
governed solely by the terms of the documents evidencing such option, and no
provision of the Plan shall be deemed to affect or otherwise modify the rights
or obligations of the holders of such incorporated options with respect to their
acquisition of shares of Common Stock.

         C. One or more provisions of the Plan, including (without limitation)
the option/vesting acceleration provisions of Article Two relating to Changes in
Control, may, in the Plan Administrator's discretion, be extended to one or more
options incorporated from the Predecessor Plan which do not otherwise contain
such provisions.

         D. The Plan shall terminate upon the earliest of (i) February 23, 2010,
(ii) the date on which all shares available for issuance under the Plan shall
have been issued as fully-vested shares or (iii) the termination of all
outstanding options in connection with a Change in Control. Upon such plan
termination, all outstanding options and unvested stock issuances shall
thereafter continue to have force and effect in accordance with the provisions
of the documents evidencing such grants or issuances.

V.       AMENDMENT OF THE PLAN

         A. The Board shall have complete and exclusive power and authority to
amend or modify the Plan in any or all respects. However, no such amendment or
modification shall adversely affect the rights and obligations with respect to
stock options or unvested stock issuances at the time outstanding under the Plan
unless the Optionee or the Participant consents to such amendment or
modification. In addition, certain amendments may require stockholder approval
pursuant to applicable laws or regulations.

         B. Options to purchase shares of Common Stock may be granted under the
Discretionary Option Grant Program and shares of Common Stock may be issued
under the Stock Issuance Program that are in each instance in excess of the
number of shares then available for issuance under the Plan, provided any excess
shares actually issued under those programs shall be held in escrow until there
is obtained stockholder approval of an amendment sufficiently increasing the
number of shares of Common Stock available for issuance under the Plan. If such
stockholder approval is not obtained within twelve (12) months after the date
the first such excess issuances are made, then (i) any unexercised options
granted on the basis of such excess shares shall terminate and cease to be
outstanding and (ii) the Corporation shall promptly refund to the Optionees and
the Participants the exercise or purchase price paid for any excess shares
issued under the Plan and held in escrow, together with interest (at the
applicable Short Term Federal Rate) for the period the shares were held in
escrow, and such shares shall thereupon be automatically cancelled and cease to
be outstanding.

VI.      USE OF PROCEEDS

         Any cash proceeds received by the Corporation from the sale of shares
of Common Stock under the Plan may be used for general corporate purposes.

VII.     REGULATORY APPROVALS

         A. The implementation of the Plan, the granting of any stock option
under the Plan and the issuance of any shares of Common Stock (i) upon the
exercise of any granted option or (ii) under the Stock Issuance Program shall be
subject to the Corporation's procurement of all approvals and permits required
by regulatory authorities having jurisdiction over the Plan, the stock options
granted under it and the shares of Common Stock issued pursuant to it.

         B. No shares of Common Stock or other assets shall be issued or
delivered under the Plan unless and until there shall have been compliance with
all applicable requirements of Federal and state securities laws, including the
filing and effectiveness of the Form S-8 registration statement for the shares
of Common Stock issuable under the Plan, and all applicable listing requirements
of any stock exchange (or the Nasdaq National Market, if applicable) on which
Common Stock is then listed for trading.

                                       13
<PAGE>

VIII.    NO EMPLOYMENT/SERVICE RIGHTS

         Nothing in the Plan shall confer upon any Optionee or Participant
any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Corporation
(or any Parent or Subsidiary employing or retaining such person) or of the
Optionee or the Participant, which rights are hereby expressly reserved by each,
to terminate such person's Service at any time for any reason, with or without
cause.

                                       14
<PAGE>

                                    APPENDIX

                  The following definitions shall be in effect under the Plan:

         A. Automatic Option Grant Program shall mean the automatic option grant
program in effect under the Plan.

         B. Beneficiary shall mean, in the event the Plan Administrator
implements a beneficiary designation procedure, the person designated by an
Optionee or Participant, pursuant to such procedure, to succeed to such person's
rights under any outstanding awards held by him or her at the time of death. In
the absence of such designation or procedure, the Beneficiary shall be the
personal representative of the estate of the Optionee or Participant or the
person or persons to whom the award is transferred by will or the laws of
inheritance.

         C. Board shall mean the Corporation's Board of Directors.

         D. Change in Control shall mean a change in ownership or control of the
Corporation effected through any of the following transactions:

                  (i) a merger, consolidation or reorganization approved by the
         Corporation's stockholders, unless securities representing more than
         fifty percent (50%) of the total combined voting power of the voting
         securities of the successor corporation are immediately thereafter
         beneficially owned, directly or indirectly and in substantially the
         same proportion, by the persons who beneficially owned the
         Corporation's outstanding voting securities immediately prior to such
         transaction,

                  (ii) any stockholder-approved transfer or other disposition of
         all or substantially all of the Corporation's assets, or

                  (iii) the acquisition, directly or indirectly by any person or
         related group of persons (other than the Corporation or a person that
         directly or indirectly controls, is controlled by, or is under common
         control with, the Corporation), of beneficial ownership (within the
         meaning of Rule 13d-3 of the 1934 Act) of securities possessing more
         than fifty percent (50%) of the total combined voting power of the
         Corporation's outstanding securities pursuant to a tender or exchange
         offer made directly to the Corporation's stockholders which the Board
         recommends such stockholders accept.

         E. Code shall mean the Internal Revenue Code of 1986, as amended.

         F. Common Stock shall mean the Corporation's common stock.

         G. Corporation shall mean Uproar Inc., a Delaware corporation, and any
corporate successor to all or substantially all of the assets or voting stock of
Uproar Inc. which shall by appropriate action adopt the Plan.

                                      A-1
<PAGE>

         H. Discretionary Option Grant Program shall mean the discretionary
option grant program in effect under the Plan.

         I. Employee shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

         J. Exercise Date shall mean the date on which the Corporation shall
have received written notice of the option exercise.

         K. Fair Market Value per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

                  (i) If the Common Stock is at the time traded on the Nasdaq
         National Market, then the Fair Market Value shall be the closing
         selling price per share of Common Stock on the date in question, as
         such price is reported on the Nasdaq National Market or any successor
         system and in The Wall Street Journal. If there is no closing selling
         price for the Common Stock on the date in question, then the Fair
         Market Value shall be the closing selling price on the last preceding
         date for which such quotation exists.

                  (ii) If the Common Stock is at the time listed on any Stock
         Exchange, then the Fair Market Value shall be the closing selling price
         per share of Common Stock on the date in question on the Stock Exchange
         determined by the Plan Administrator to be the primary market for the
         Common Stock, as such price is officially quoted in the composite tape
         of transactions on such Exchange and reported in The Wall Street
         Journal. If there is no closing selling price for the Common Stock on
         the date in question, then the Fair Market Value shall be the closing
         selling price on the last preceding date for which such quotation
         exists.

                  (iii) For purposes of any option grants made on the
         Underwriting Date, the Fair Market Value shall be deemed to be equal to
         the price per share at which the Common Stock is to be sold in the
         initial public offering pursuant to the Underwriting Agreement.

                  (iv) For purposes of any option grants made prior to the
         Underwriting Date, the Fair Market Value shall be determined by the
         Plan Administrator, after taking into account such factors as it deems
         appropriate.

         L. Hostile Take-Over shall mean:

                  (i) the acquisition, directly or indirectly, by any person or
         related group of persons (other than the Corporation or a person that
         directly or indirectly controls, is controlled by, or is under common
         control with, the Corporation) of beneficial ownership (within the
         meaning of Rule 13d-3 of the 1934 Act) of securities possessing more

                                      A-2
<PAGE>

         than fifty percent (50%) of the total combined voting power of the
         Corporation's outstanding securities pursuant to a tender or exchange
         offer made directly to the Corporation's stockholders which the Board
         does not recommend such stockholders accept, or

                  (ii) a change in the composition of the Board over a period of
         thirty-six (36) consecutive months or less such that a majority of the
         Board members ceases, by reason of one or more contested elections for
         Board membership, to be comprised of individuals who either (A) have
         been Board members continuously since the beginning of such period or
         (B) have been elected or nominated for election as Board members during
         such period by at least a majority of the Board members described in
         clause (A) who were still in office at the time the Board approved such
         election or nomination.

         M. Incentive Option shall mean an option which satisfies the
requirements of Code Section 422.

         N. Involuntary Termination shall mean the termination of the Service of
any individual which occurs by reason of:

                  (i) such individual's involuntary dismissal or discharge by
         the Corporation for reasons other than Misconduct, or

                  (ii) such individual's voluntary resignation following (A) a
         change in his or her position with the Corporation or Parent or
         Subsidiary employing the individual which materially reduces his or her
         duties and responsibilities or the level of management to which he or
         she reports, (B) a reduction in his or her level of compensation
         (including base salary, fringe benefits and target bonus under any
         corporate-performance based bonus or incentive programs) by more than
         fifteen percent (15%) or (C) a relocation of such individual's place of
         employment by more than fifty (50) miles, provided and only if such
         change, reduction or relocation is effected by the Corporation without
         the individual's consent.

         O. Misconduct shall mean the commission of any act of fraud,
embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the
Corporation (or any Parent or Subsidiary), or any intentional wrongdoing by such
person, whether by omission or commission, which adversely affects the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material
manner. This shall not limit the grounds for the dismissal or discharge of any
person in the Service of the Corporation (or any Parent or Subsidiary).

         P. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

         Q. Non-Statutory Option shall mean an option not intended to satisfy
the requirements of Code Section 422.

         R. Option Surrender Value shall mean the Fair Market Value per share of
Common Stock on the date the option is surrendered to the Corporation or, in the
event of a Hostile Take-Over effected through a tender offer, the highest
reported price per share of Common Stock paid by the tender offeror in effecting
such Hostile Take-Over, if greater. However, if the surrendered option is an

                                      A-3
<PAGE>

Incentive Option, the Option Surrender Value shall not exceed the Fair Market
Value per share.

         S. Optionee shall mean any person to whom an option is granted under
the Discretionary Option Grant or Automatic Option Grant Program.

         T. Parent shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

         U. Participant shall mean any person who is issued shares of Common
Stock under the Stock Issuance Program.

         V. Permanent Disability or Permanently Disabled shall mean the
inability of the Optionee or the Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment expected to result in death or to be of continuous duration of twelve
(12) months or more. However, solely for purposes of the Automatic Option Grant
Program, Permanent Disability or Permanently Disabled shall mean the inability
of the non-employee Board member to perform his or her usual duties as a Board
member by reason of any medically determinable physical or mental impairment
expected to result in death or to be of continuous duration of twelve (12)
months or more.

         W. Plan shall mean the Corporation's 2000 Stock Incentive Plan, as set
forth in this document.

         X. Plan Administrator shall mean the particular entity, whether the
Primary Committee, the Board or the Secondary Committee, which is authorized to
administer the Discretionary Option Grant and Stock Issuance Programs with
respect to one or more classes of eligible persons, to the extent such entity is
carrying out its administrative functions under those programs with respect to
the persons under its jurisdiction. However, the Primary Committee shall have
the plenary authority to make all factual determinations and to construe and
interpret any and all ambiguities under the Plan to the extent such authority is
not otherwise expressly delegated to any other Plan Administrator.

         Y. Plan Effective Date shall mean February 23, 2000, the date on which
the Plan was adopted by the Board.

         Z. Predecessor Plan shall mean the Corporation's pre-existing 1999
Share Option/Share Issuance Plan in effect immediately prior to the Plan
Effective Date hereunder.

         AA. Primary Committee shall mean a committee of two (2) or more
non-employee Board members appointed by the Board to administer the
Discretionary Option Grant and Stock Issuance Programs with respect to Section
16 Insiders or with respect to all eligible persons.

                                      A-4
<PAGE>

         BB. Secondary Committee shall mean a committee of one (1) or more Board
members appointed by the Board to administer the Discretionary Option Grant and
Stock Issuance Programs with respect to eligible persons other than Section 16
Insiders.

         CC. Section 12 Registration Date shall mean the date on which the
Common Stock is first registered under Section 12(g) of the 1934 Act.

         DD. Section 16 Insider shall mean an officer or director of the
Corporation subject to the short-swing profit liabilities of Section 16 of the
1934 Act.

         EE. Service shall mean the performance of services for the Corporation
(or any Parent or Subsidiary) by a person in the capacity of an Employee, a
non-employee member of the Board or the board of directors of any Parent or
Subsidiary or a consultant or independent advisor, except to the extent
otherwise specifically provided in the documents evidencing the option grant or
stock issuance.

         FF. Stock Exchange shall mean either the American Stock Exchange or the
New York Stock Exchange.

         GG. Stock Issuance Program shall mean the stock issuance program in
effect under the Plan.

         HH. Subsidiary shall mean any corporation (other than the Corporation)
in an unbroken chain of corporations beginning with the Corporation, provided
each corporation (other than the last corporation) in the unbroken chain owns,
at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

         II. 10% Stockholder shall mean the owner of stock (as determined under
Code Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

         JJ. Underwriting Agreement shall mean the agreement between the
Corporation and the underwriter or underwriters managing the initial public
offering of the Common Stock in the United States.

         KK. Underwriting Date shall mean the date on which the Underwriting
Agreement is executed and the Common Stock is priced in connection with an
initial public offering of the Common Stock in the United States.

         LL. Withholding Taxes shall mean the Federal, state and local income
and employment withholding tax liabilities to which the holder of Non-Statutory
Options or unvested shares of Common Stock may become subject in connection with
the exercise of those options or the vesting of those shares.

                                      A-5<PAGE>

                                HEALTHOLOGY, INC.

                           CERTIFICATE OF DESIGNATION

                                       OF

                   SERIES A CONVERTIBLE VOTING PREFERRED STOCK

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

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

     We, the undersigned, being the President and Secretary, respectively, of
Healthology, Inc., a Delaware corporation (the "Corporation"), DO HEREBY
CERTIFY, pursuant to Section 151 of the General Corporation Law of the State of
Delaware that the following resolution was duly adopted by the Board of
Directors of the Corporation.

     RESOLVED, that pursuant to the authority expressly granted to and vested in
the Board of Directors of the Corporation by the provisions of the Certificate
of Incorporation of the Corporation, the Board of Directors hereby creates and
designates a series of preferred stock of the Corporation, par value $.01 per
share, and the Board of Directors hereby fixes the relative rights and
preferences of the shares of such series as follows:

     1. Designation. The shares of such series of Preferred Stock shall be
designated "Series A Convertible Voting Preferred Stock" which shall be senior
to all other capital stock of the Corporation (referred to herein as the "Series
A Preferred Stock").

     2. Authorized Number. The number of shares constituting the Series A
Preferred Stock shall be 3,500,000.

     3. Dividends. The holders of record of shares of the Series A Preferred
Stock shall be entitled to receive dividends, when, as and if declared by the
Board of Directors, out of funds legally available therefore. Dividends on the
Series A Preferred Stock will be non-cumulative. No dividend shall be paid on
the Common Stock or any other series of the Corporation's preferred stock at a
rate greater than the rate at which the dividends are paid on the Series A
Preferred Stock (based on the number of shares of Common Stock into which the
Series A Preferred Stock is convertible on the date the dividend is declared)
and the Series A Preferred Stock shall be entitled to participate in any such
dividends (on the same basis). Dividends paid on the Series A Preferred Stock
are in preference to dividends paid on the Common Stock.

     4. Liquidation Preference. If: (i) the Corporation or a third-party
acquiror consummates a transaction or series of transactions in which more than
50% of the voting power of the Corporation is disposed of to a single person or
group of affiliated persons; (ii) the Corporation consolidates or merges with or

<PAGE>

into any other corporation or entity in a transaction in which the Corporation
is not the surviving company; (iii) the Corporation sells all or substantially
all of its assets to a third party; or (iv) a voluntary or involuntary
liquidation, dissolution or winding-up of the Corporation occurs (each of such
events, a "Liquidation"), then the holders of the Series A Preferred Stock, at
their option, will be entitled to receive in preference to the holders of Common
Stock an amount (the "Liquidation Preference") equal to $1.00 per share (subject
to adjustment for the events specified in subparagraphs 6(d) and 6(e) below)
plus any dividends declared and unpaid on the Series A Preferred Stock to that
date. After setting apart or paying in full the Liquidation Preference, the
remaining assets (whether stated capital or surplus), if any, and all
consideration received by the Corporation in excess of the Liquidation
Preference, shall be distributed to the holders of record of the issued and
outstanding shares of Common Stock. If upon any Liquidation of the Corporation,
whether voluntary or involuntary, the assets to be distributed among the holders
of Series A Preferred Stock shall be insufficient to permit payment in full to
the holders of Series A Preferred Stock of the Liquidation Preference, then the
entire assets of the Corporation shall be distributed ratably among such holders
in proportion to the full respective distributive amounts to which they are
entitled. Written notice of a Liquidation, stating a payment date, the estimated
amount of the Liquidation Preference, and the place where said amounts shall be
payable shall be given by mail not less than ten (10) days prior to the payment
date stated therein, to each holder of record of Series A Preferred Stock at his
address as shown by the records of the Corporation. Notwithstanding the
foregoing, however, the failure of the Corporation to give such notice, or any
defect therein, shall not affect the legality or validity of any dividend,
distribution or other action or event. Shares of Series A Preferred Stock shall
not be entitled to be converted into shares of Common Stock in order to
participate in any distribution, or series of distributions, as shares of Common
Stock, without first foregoing participation in the distribution, or series of
distributions, as shares of Series A Preferred Stock.

     5. Conversion. The holders of the Series A Preferred Stock shall have the
following conversion rights:

        (a) Optional Conversion. Each share of Series A Preferred Stock shall be
convertible at any time, at the option of the holder of record thereof, into
fully paid and nonassessable shares of Common Stock at the "Conversion Rate" (as
defined in Section 5(c) below) then in effect upon surrender to the Corporation
or its transfer agent of the certificate or certificates representing the shares
of Series A Preferred Stock to be converted, as provided below, or if the holder
notifies the Corporation or its transfer agent that such certificate or
certificates have been lost, stolen or destroyed, upon the execution and
delivery of an agreement satisfactory to the Corporation to indemnify the
Corporation from any losses incurred by it in connection therewith (without
requiring the posting of any security).

        (b) Mandatory Conversion. Each share of Series A Preferred Stock shall
automatically be converted into fully paid and nonassessable shares of Common
Stock at the Conversion Rate then in effect upon the consummation by the
Corporation of a public offering of its Common Stock pursuant to a firm
commitment underwriting and an effective registration under the Securities Act
of 1933, as amended, in which the Corporation receives gross proceeds of at

                                        2
<PAGE>

least $20,000,000 (before the deduction of underwriters' commissions and
expenses) and the Corporation has a post-initial public offering valuation, on a
pro forma basis, of at least $60,000,000 (a "Qualified Public Offering"). Upon
the consummation of a Qualified Public Offering, the outstanding shares of
Series A Preferred Stock shall be converted automatically without any further
action by the holders of such shares and whether or not the certificates
representing such shares are surrendered to the Corporation or its transfer
agent; provided, however, that the Corporation shall not be obligated to issue
certificates evidencing the shares of Common Stock issuable upon such conversion
unless certificates evidencing such shares of the Series A Preferred Stock being
converted are delivered to the Corporation or its transfer agent, as provided
below, or the holder notifies the Corporation or its transfer agent that such
certificates have been lost, stolen or destroyed and executes an agreement
satisfactory to the Corporation to indemnify the Corporation from any losses
incurred by it in connection therewith (without requiring the posting of any
security).

        (c) Basis For Conversion; Converted Shares. The basis for any conversion
under this Section 5 shall be the "Conversion Rate" in effect at the time of
conversion, which for the purposes hereof shall mean the number of shares of
Common Stock issuable with respect to each share of Series A Preferred Stock to
be converted under this Section 5. Initially, the Conversion Rate shall be 1:1,
i.e., one share of Common Stock for each share of Series A Preferred Stock being
converted. Such Conversion Rate shall be subject to adjustment as provided in
Section 6 below. As used herein, the term "Conversion Price" initially shall be
$1.00, but shall be subject to adjustment as provided herein. If any fractional
interest in a share of Common Stock would be deliverable upon conversion of
Series A Preferred Stock, the Corporation shall pay in lieu of such fractional
share a cash amount equal to the Conversion Price of such fractional share
(computed to the nearest one hundredth of a share) in effect at the close of
business on the date of conversion. Any shares of Series A Preferred Stock which
have been converted shall be canceled and the certificates representing shares
of Series A Preferred Stock so converted shall represent the right to receive
(x) such number of shares of Common Stock into which such shares of Series A
Preferred Stock are convertible, plus (y) cash payable for any fractional share
plus (z) all accrued but unpaid dividends relating to such shares. Upon the
conversion of shares of Series A Preferred Stock as provided in this Section 5,
the Corporation shall promptly pay all then declared and accrued but unpaid
dividends to the holder of the Series A Preferred Stock being converted, if any.
The Board of Directors of the Corporation shall at all times reserve a
sufficient number of authorized but unissued shares of Common Stock to be issued
in satisfaction of the conversion rights and privileges aforesaid.

        (d) Mechanics of Conversion. Before any holder of shares of Series A
Preferred Stock shall be entitled to convert the same into shares of Common
Stock, such holder shall surrender the certificate or certificates therefor,
duly endorsed, or deliver an appropriate indemnity agreement (without requiring
the posting of any security) at the office of the Corporation or its transfer
agent for the Series A Preferred Stock and in the case of a conversion pursuant
to Section 5(a) above, shall give written notice to the Corporation of the
election to convert the same and shall state therein the name or names in which
the certificate or certificates for shares of Common Stock are to be issued. The

                                        3
<PAGE>

Corporation shall, as soon as practicable thereafter, issue and deliver at such
office to such holder of Series A Preferred Stock, or to the nominee or nominees
of such holder, a certificate or certificates for the number of shares of Common
Stock to which such holder shall be entitled (together with a check payable to
such holder or nominee in the amount of any cash amounts payable as a result of
a conversion into fractional shares of Common Stock and all accrued but unpaid
dividends) as aforesaid. A certificate or certificates will be issued for the
remaining shares of Series A Preferred Stock in any case in which fewer than all
of the shares of Series A Preferred Stock represented by a certificate are
converted. Any such conversion shall be deemed to have been made immediately
prior to the close of business on the date of such surrender of the shares of
Series A Preferred Stock to be converted, or in the case of automatic
conversion, upon consummation of a Qualified Public Offering, and the person or
persons entitled to receive the shares of Common Stock issuable upon such
conversion shall be treated for all purposes as the record holder or holders of
such shares of Common Stock on such date.

     6. Adjustment of Conversion Price and Conversion Rate. The number and kind
of securities issuable upon the conversion of the Series A Preferred Stock, the
Conversion Price and the Conversion Rate shall be subject to adjustment from
time to time in accordance with the following provisions:

        (a) Certain Definitions. For purposes of this Section 6:

            (i)   The term "Additional Shares of Common Stock" shall mean all
shares of Common Stock issued, or deemed to be issued by the Corporation
pursuant to Section 6(g) below, after the Original Issue Date (as defined below)
except shares of Common Stock issuable upon conversion of the Series A Preferred
Stock now or hereafter issued by the Corporation and shares issuable pursuant to
the exercise of options or warrants outstanding on the Original Issue Date.

            (ii)  The term "Common Stock" shall be deemed to mean the Common
Stock, par value $.01 per share, and the stock of the Corporation of any class,
or series within a class, whether now or hereafter authorized, which has the
right to participate in the distribution of either earnings or assets of the
Corporation without limit as to the amount.

            (iii) The term "Convertible Securities" shall mean any evidence of
indebtedness, shares or other securities convertible into or exchangeable for
Common Stock.

            (iv)  The term "Options" shall mean rights, options or warrants to
subscribe for, purchase or otherwise acquire Common Stock or Convertible
Securities except options issued pursuant to any employee stock plan issued
prior to the Original Issue Date.

            (v)   The term "Original Issue Date" shall mean the date of the
initial issuance of the Series A Preferred Stock.

                                        4
<PAGE>

          (b) Reorganization; Share Exchange; Reclassification. In the event of
a reorganization, share exchange, or reclassification, other than a change in
par value, or from par value to no par value, or from no par value to par value
or a transaction described in subsection (c) or (d) below, each share of Series
A Preferred Stock shall, after such reorganization, share exchange or
reclassification, be convertible into the kind and number of shares of stock or
other securities or other property of the Corporation which the holder of Series
A Preferred Stock would have been entitled to receive if the holder had held the
Common Stock issuable upon conversion of such share of Series A Preferred Stock
immediately prior to such reorganization, share exchange, or reclassification.

          (c) Merger; Consolidation. If (i) the Corporation consolidates or
merges into or with any other corporation or corporations or any other entity or
entities (excluding any merger or consolidation in which the Corporation is the
surviving corporation and which does not result in any change in the Common
Stock), (ii) in a single transaction or a series of related transactions, the
Corporation sells or transfers all or substantially all its assets or (iii) the
Corporation engages in any capital reorganization or any reclassification of the
stock of the Corporation (other than as a result of stock dividends,
subdivisions, split-up or combination of shares), each share of Series A
Preferred Stock shall, after such merger, consolidation, reorganization,
reclassification or transaction(s), be convertible into the kind and number of
shares of stock and/or other securities, cash or other property which the holder
of such share of Series A Preferred Stock would have been entitled to receive if
the holder had held the Common Stock issuable upon conversion of such share of
Series A Preferred Stock immediately prior to such merger or consolidation.

          (d) Subdivision or Combination of Shares. In case outstanding shares
of Common Stock shall be subdivided, the Conversion Price shall be appropriately
reduced as of the effective date of such subdivision so that the number of
shares of Common Stock issuable upon conversion of any shares of Preferred Stock
shall be increased in proportion to such increase of outstanding shares. In case
outstanding shares of Common stock shall be combined, the Conversion Price shall
be appropriately increased as of the effective date of such combination so that
the number of shares of Common Stock issuable upon conversion of any shares of
Preferred Stock shall be decreased in proportion to such decrease of outstanding
shares.

          (e) Stock Dividends. In case shares of Common Stock are issued as a
dividend or other distribution on the Common Stock, then the Conversion Price
shall be adjusted, as of the earliest of the date of such declaration, payment
or other distribution, to that price determined by multiplying the Conversion
Price in effect immediately prior to such declaration, payment or other
distribution by a fraction (i) the numerator of which shall be the number of
shares of Common Stock outstanding immediately prior to the payment of such
dividend or other distribution, and (ii) the denominator of which shall be the
total number of shares of Common Stock outstanding immediately after the payment
of such dividend or other distribution. In the event that the Corporation shall
declare or pay any dividend on the Common Stock payable in any right to acquire
Common Stock for no consideration, then the Corporation shall be deemed to have
made a dividend payable in Common Stock on an amount of shares equal to the
maximum number of shares issuable upon exercise of such rights to acquire Common
Stock.

                                        5
<PAGE>

          (f) Issuance of Additional Shares of Common Stock. If the Corporation
shall issue any Additional Shares of Common Stock (including Additional Shares
of Common Stock deemed to be issued pursuant to Section 6(g) below) after the
Original Issue Date, for no consideration or for a consideration per share less
than the Conversion Price in effect on the date of and immediately prior to such
issue, then in such event, the Conversion Price shall be reduced, concurrently
with such issue, to a Conversion Price equal to the quotient obtained by
dividing:

              (i)  an amount equal to the total number of shares of Common Stock
outstanding immediately prior to such issuance or sale multiplied by the
Conversion Price in effect immediately prior to such issuance or sale, plus the
net consideration, if any, received or deemed to be received by the Corporation
upon such issuance or sale, by

              (ii) the total number of shares of Common Stock outstanding
immediately after such issuance or sale.

For purposes of these formulas, all shares of Common Stock issuable upon the
exercise of outstanding Options or issuable upon the conversion (at the
Conversion Price in effect immediately before such determinations) of the Series
A Preferred Stock or outstanding Convertible Securities (including Convertible
Securities issued upon the exercise of outstanding Options), shall be deemed
outstanding shares of Common Stock.

          (g) Deemed Issue of Additional Shares of Common Stock. In the event
the Corporation at any time or from time to time after the Original Issue Date
shall issue any Options or Convertible Securities, then the maximum number of
shares of Common Stock issuable upon the exercise of such Options, or, in the
case of Convertible Securities and Options therefor, the conversion or exchange
of such Convertible Securities, shall be deemed to be Additional Shares of
Common Stock issued as of the time of such issue of Options or Convertible
Securities or, in case such a record date shall have been fixed, as of the close
of business on such record date, provided that in any such case in which
Additional Shares of Common stock are deemed to be issued:

               (i)  no further adjustments in the Conversion Price shall be made
upon the subsequent issue of Convertible Securities or shares of Common Stock
upon the exercise of such Options or the issue of Common Stock upon the
conversion or exchange of such Convertible Securities on the original terms
therefor; and

               (ii) if such Options or Convertible Securities by their terms
provide, with the passage of time or otherwise, for any decrease in the
consideration payable to the Corporation, or increase in the number of shares of
Common Stock issuable, upon the exercise, conversion or exchange thereof, the
Conversion Price computed upon the original issuance of such Options or
Convertible Securities (or upon the occurrence of a record date with respect
thereto), and any subsequent adjustments based thereon, upon any such decrease

                                        6
<PAGE>

or increase becoming effective, shall be recomputed to reflect such decrease or
increase if it would result in a reduction of the Conversion Price (provided,
however, that no such adjustment of the Conversion Price shall affect Common
Stock previously issued upon conversion of the Series A Preferred Stock).

          (h) Determination of Consideration. For purposes of this Section 6,
the consideration received by the Corporation for the issue of any Additional
Shares of Common Stock shall be computed as follows:

               (i) Cash and Property. Such consideration shall:

                    (A) insofar as it consists of cash, be the aggregate amount
of cash received by the Corporation; and

                    (B) insofar as it consists of property other than cash, be
computed at the fair value thereof at the time of the issue, as determined by
the Board of Directors in good faith.

               (ii) Options and Convertible Securities. The consideration per
share received by the Corporation for Additional Shares of Common Stock deemed
to have been issued pursuant to Section 6(g) above, relating to Options and
Convertible Securities, shall be the minimum aggregate amount of additional
consideration (as set forth in the instruments relating thereto) payable to the
Corporation upon the exercise of such Options or the conversion or exchange of
such Convertible Securities including any amounts received or receivable by the
Corporation as consideration for the issue of such Options or Convertible
Securities or receivable on the exercise of Options for Convertible Securities;
provided that if in the case of Options or Convertible Securities the minimum
aggregate amount of additional consideration cannot be ascertained, but is a
function of anti-dilution or similar protective clauses, the Corporation shall
be deemed to have received the minimum amounts of consideration without
reference to such clauses.

          (i) Adjustment of Conversion Rate. Upon each adjustment of the
Conversion Price under the provisions of this Section 6, the Conversion Rate
shall be adjusted to an amount determined by dividing $1.00 by such adjusted
Conversion Price.

          (j) Other Provisions Applicable to Adjustment Under this Section. The
following provisions will be applicable to the adjustments in Conversion Price
and Conversion Rate as provided in this Section 6:

               (i) Treasury Shares. The number of shares of Common Stock at any
time outstanding shall not include any shares thereof then directly or
indirectly owned or held by or for the account of the Corporation. For purposes
of this Section 6, the sale or other disposition of any Common Stock of the
Corporation theretofore held in its treasury shall, unless otherwise set forth
herein, be deemed to be an issuance thereof.

               (ii) Other Action Affecting Common Stock. In case the Corporation
shall take any action affecting the outstanding number of shares of Common Stock

                                        7
<PAGE>

other than an action described in any of the foregoing subsections 6(b) to 6(g)
hereof, inclusive, which would have an inequitable or dilutive effect on the
holders of Series A Preferred Stock, the Conversion Price shall be adjusted in
such manner and at such time as the Board of Directors of the Corporation on the
advice of the Corporation's independent public accountants may in good faith
determine to be equitable in the circumstances.

          (k) Notices of Adjustments. Whenever the Conversion Rate and
Conversion Price is adjusted as herein provided, an officer of the Corporation
shall compute the adjusted Conversion Rate and Conversion Price in accordance
with the foregoing provisions and shall prepare a written certificate setting
forth such adjusted Conversion Rate and Conversion Price and showing in detail
the facts upon which such adjustment is based, and such written instrument shall
promptly be delivered to the record holders of the Series A Preferred Stock.

     7. Put. (a) If fraud is committed by or on behalf of the Company in
connection with that certain Series A Preferred Sock Purchase Agreement (the
"Stock Purchase Agreement") between the Company and Seal Holdings Corporation or
the Affiliated Agreements (as defined in the Stock Purchase Agreement) or if the
Company fails to perform in any material respect its obligations under the Stock
Purchase Agreement or the Affiliated Agreements to provide information or to
provide pre-emptive, tag-along or registration rights in accordance with the
terms of the Stock Purchase Agreement and the Affiliated Agreements, and such
failure remains uncured twenty (20) days after written notice from Investor,
then Investor may put its Shares (or any Common Stock acquired upon conversion
of the Shares) to the Company at a price equal to the greater of (i) the
original purchase price plus any dividends declared and unpaid or (ii) the fair
market value of the Shares (or any Common Stock acquired upon conversion of the
Shares). This right is in addition to any other remedy at law or in equity
available to the Investor.

          (b) If the Shares are publicly traded, the value of the Shares shall
be the average closing price of such Shares during the previous five (5) trading
days prior to the breach. If there is no public market for the Shares, the fair
market value of such Shares will be valued by an appraiser of recognized
standing selected by the Investor and the Company or, if they cannot agree on an
appraiser within ten (10) days, each shall select an appraiser of recognized
standing and the two appraisers shall designate a third appraiser of recognized
standing, whose appraisal shall be determinative of such value. The cost of such
appraisal shall be shared equally by the Investor and the Company. If the time
for the closing of the put has expired but for the determination of the value of
the purchase price, then such closing shall be held on or prior to the fifth (5)
business day after such valuation shall have been made pursuant to this
subsection.

     8. Notices of Record Dates and Effective Dates. In case (i) the Corporation
shall declare a dividend (or any other distribution) on the Common Stock payable
otherwise than in shares of Common Stock; (ii) the Corporation shall authorize
the granting to the holders of Common Stock of rights to subscribe for or
purchase any shares of capital stock of any class or any other rights; (iii) of
any reorganization, share exchange or reclassification of the capital stock of
the Corporation, or of any consolidation or merger to which the Corporation is

                                        8
<PAGE>

party or of the sale, lease or exchange of all or substantially all of the
property of the Corporation; or, (iv) of the voluntary or involuntary
dissolution, liquidation or winding up of the Corporation, then the Corporation
shall cause to be mailed to the record holders of the Series A Preferred Stock
at least ten (10) days prior to the applicable record date or effective date
hereinafter specified, a notice stating the date on which a record is to be
taken for the purpose of such dividend, distribution or rights, or, if a record
is not to be taken, the date as of which the holders of record of Common Stock
to be entitled to such dividend, distribution or rights are to be determined or
the date on which such dividend, granting of rights, reclassification,
reorganization, share exchange, consolidation, merger, sale, lease, exchange,
dissolution, liquidation or winding up is expected to become effective, and the
date as of which it is expected that holders of record of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such dividend, granting of rights, reclassification,
reorganization share exchange, consolidation, liquidation, merger, sale, lease,
exchange, dissolution, liquidation or winding up.

     9. No Impairment. The Corporation will not, through any reorganization,
recapitalization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action, avoid or modify or seek to
avoid or modify the observance or performance of any of the terms to be observed
or performed hereunder by the Corporation, but will, at all times, in good
faith, assist in the carrying out of all the provisions hereof and in the taking
of all such action as may be necessary or appropriate in order to protect the
Conversion Rights of the holder of Series A Preferred Stock against impairment.

     10. Voting Rights. The holders of the Series A Preferred Stock shall be
entitled to notice of any stockholder's meeting. In addition to any special
voting rights provided by applicable law or by contract (including, without
limitation, that certain Investor's Rights Agreement between the Corporation and
Seal Holdings Corporation), the holders of shares of Series A Preferred Stock
shall be entitled to vote upon all matters upon which holders of the Common
Stock have the right to vote, and shall be entitled to the number of votes equal
to the number of full shares of Common Stock into which such shares of Series A
Preferred Stock could be converted pursuant to the provisions of Section 5
hereof, at the record date for the determination of the stockholders entitled to
vote on such matters, or, if no such record date is established, at the date
such vote is taken or any written consent of stockholders is solicited, such
votes to be counted together with all other shares of capital stock having
general voting powers and not separately as a class.

     11. Protective Provisions. In addition to any other class vote that may be
required by law, or any other rights provided by law, so long as any shares of
Series A Preferred Stock are outstanding, this Corporation shall not, without
obtaining the approval (by vote or written consent, as provided by law) of the
holders of at least a majority of the then outstanding shares of the Series A
Preferred Stock (other than the Corporation):

                                        9
<PAGE>

          1. alter or change the rights, preferences, privileges or restrictions
provided for the benefit of the Series A Preferred Stock;

          2. create any new class or series of shares (or reclassify any
existing series of shares into shares) having any rights, preferences or
privileges senior to the Series A Preferred Stock;

          3. amend, alter or change or repeal the Certificate of Incorporation
in any manner inconsistent with the provisions of this Section;

          4. enter into any contract, commitment or other agreement or
understanding which would restrict or prohibit any holder of Series A Preferred
Stock from exercising any of its respective rights under any agreement(s) with
the Corporation; or

          5. merge with another entity in connection with a transaction in which
the holders of Series A Preferred Stock will receive consideration of less than
$3.00 per share.

     12. Amendment; Waiver. Except as expressly prohibited by law, this
Certificate of Designation may be amended and any provision herein may be waived
with the approval of the holders of a majority of the Series A Preferred Stock
and the Board of Directors of the Corporation. Any amendment or waiver so
effected shall be binding upon each holder of Series A Preferred Stock.

                                       10
<PAGE>

         IN WITNESS WHEREOF, this Certificate has been signed by the President
and attested to by the Secretary of Healthology, Inc. as of the 28th day of
February, 2000.

                                    By:/s/  Steven M. Haimowitz, MD
                                       -------------------------------------
                                       Steven M. Haimowitz, MD
                                       President and Chief Executive Officer

Attest:

By: /s/  Matthew Caleb
   ----------------------------------
Secretary

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