Document:

THIS WARRANT AND THE SHARES OF COMPANY STOCK ISSUABLE UPON THE EXERCISE HEREOF
HAVE NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933 (THE "ACT") OR
APPLICABLE STATE SECURITIES LAWS (THE "STATE ACTS") AND SHALL NOT BE SOLD,
PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED (WHETHER OR NOT FOR
CONSIDERATION) BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A
FAVORABLE OPINION OF COUNSEL AND/OR SUBMISSION TO THE COMPANY OF SUCH EVIDENCE
AS MAY BE SATISFACTORY TO COUNSEL TO THE COMPANY, IN EACH SUCH CASE, TO THE
EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE ACT AND THE STATE
ACTS.

              WARRANT TO PURCHASE __________ SHARES OF COMMON STOCK
                                       Of
                           EWRX Internet Systems, Inc.
                             (a Nevada Corporation)
                     Not Transferable Or Exercisable Except
                        Upon Conditions Herein Specified
                          Void after 5:00 O'Clock P.M.,
                       Nevada Time, on September 17, 2001

     EWRX Internet Systems, Inc., a Nevada corporation (the "Company") hereby
certifies that _________________________________________________________, its
registered successors and permitted assigns registered on the books of the
Company maintained for such purposes as the registered holder hereof (the
"Holder"), for value received, is entitled to purchase from the Company the
number of fully paid and non-assessable shares of Common Stock of the Company,
par value $.001 per share (the "Shares") stated above at the purchase price of
$1.00 per Share (the "Exercise Price") (the number of Shares and Exercise Price
being subject to adjustment as hereinafter provided) upon the terms and
conditions herein provided.

     1. EXERCISE OF WARRANTS. (a) Subject to subsection (b) of this Section 1,
upon presentation and surrender of this Warrant Certificate, with the attached
Purchase Form duly executed, at the principal office of the Company at #301-543
Granville Street, Vancouver, BC or at such other place as the Company may
designate by notice to the Holder hereof, together with a certified check, US
Bank Draft, or Electronic Money Wire Transfer, payable to the order of the
Company in the amount of the Exercise Price times the number of Shares being
purchased, the Company shall deliver to the Holder hereof, as promptly as
practicable, certificates representing the Shares being purchased. This Warrant
may be exercised in whole or in part; and, in case of exercise hereof in part
only, (a minimum of 10,000 shares) the Company, upon surrender hereof, will
deliver to the Holder a new Warrant Certificate or Warrant Certificates of like
tenor entitling the Holder to purchase the number of Shares as to which this
Warrant has not been exercised.

<PAGE>

          (b) This Warrant may be exercised in whole or in part at any time on
and after 09/17/1999.

     2. TRANSFER OF WARRANT. This Warrant may not be sold, transferred,
hypothecated or assigned, in whole or in part, before 09/17/1999 and may not be
sold, transferred, hypothecated or assigned in whole or in part, after said date
without the prior written consent of the Company except to and among
stockholders of the Holder.

     3. RIGHTS AND OBLIGATIONS OF WARRANT HOLDER.

          (a) The Holder of this Warrant Certificate shall not, by virtue
hereof, be entitled to any rights of a stockholder in the Company, either at law
or in equity; provided, however, in the event that any certificate representing
the Shares as issued to the Holder hereof upon exercise of this Warrant, such
Holder shall, for al purposes, be deemed to have become the holder of record of
such Shares on the date on which this Warrant Certificate, together with a duly
executed Purchase Form, was surrendered and payment of the Exercise Price was
made, irrespective of the date of delivery of such Share certificate. The rights
of the Holder of this Warrant are limited to those expressed herein and the
Holder of this Warrant, by its acceptance hereof, consents to and agrees to be
bound by and to comply with all the provisions of this Warrant Certificate,
including, without limitation, all the obligations imposed upon the Holder
hereof by Sections 2 and 5 hereof. In addition, the Holder of this Warrant
Certificate, by accepting the same, agrees that the Company may deem and treat
the person in whose name this Warrant Certificate is registered on the books of
the Company maintained for such purpose as the absolute, true and lawful owner
for all purposes whatsoever, notwithstanding any notation of ownership or other
writing thereon, and the Company shall not be affected by any notice to the
contrary.

          (b) No Holder of this Warrant Certificate, as such, shall be entitled
to vote or receive dividends or to be deemed the holder of Shares for any
purpose, nor shall anything contained in this Warrant Certificate be construed
to confer upon any Holder of this Warrant Certificate, as such, any of the
rights of a shareholder of the Company or any right to vote, give or withhold
consent to any action by the Company, receive dividends, subscription rights, or
otherwise, until this Warrant shall have been exercised and the Shares
purchasable upon the exercise thereof shall have become deliverable as provided
herein; provided, however, that any such exercise on any date when the stock
transfer books of the Company shall be closed shall constitute the person or
persons in whose name or names the certificate or certificates for those Shares
are to be issued as the record holder or holders thereof for all purposes at the
opening of business on the next succeeding day on which such stock transfer
books are open, and the Warrant surrendered shall not be deemed to have been
exercised, in whole or in part as the case may be, until the next succeeding day
on which stock transfer books are open for the purpose of determining
entitlement to dividends on the Company's common stock.

<PAGE>

     4. SHARES UNDERLYING WARRANTS. The Company covenants and agrees that all
Shares delivered upon the exercise of this Warrant shall, upon delivery and
payment therefore, be duly and validly authorized and issued, fully-paid and
non-assessable, and free from all stamp-taxes, liens and charges with respect to
the purchase thereof. In addition, the Company agrees at all times to reserve
and keep available an authorized number of Shares sufficient to permit the
exercise in full of this Warrant.

     5. DISPOSITION OF WARRANTS OR SHARES. The holder of this Warrant
Certificate and any transferee hereof or of the Shares issuable upon the
exercise of the Warrant Certificate, by their acceptance hereof, hereby (i)
represent and warrant that this Warrant Certificate and the shares issuable upon
exercise thereof are being acquired for investment for the account of the holder
and with no intent to sell, transfer or subdivide such Warrant Certificate or
Shares, and (ii) except as herein specifically provided and permitted understand
and agree that the Warrant, and the Shares issuable upon the exercise hereof,
have not been registered under either the Securities Act of 1933 (the "Act") or
applicable State Securities Laws (the "State Acts") and shall not be sold,
pledged, hypothecated, donated or otherwise transferred (whether or not for
consideration) except upon the issuance to the Company of a favorable opinion of
counsel and/or submission to the Company of such evidence as may be satisfactory
to counsel to the Company, in each such case, to the effect that any such
transfer shall not be in violation of the Act and the State Acts. It shall be a
condition to the transfer of this Warrant that any transferee thereof deliver to
the Company its written agreement to accept and be bound by all of the terms and
conditions of this Warrant Certificate.

     6. ADJUSTMENTS. The number of Shares purchasable upon the exercise of each
Warrant is subject to adjustment from time to time upon the occurrence of any of
the events enumerated below.

          (a) In case the Company shall: (i) pay a dividend in Shares, (ii)
subdivide its outstanding Shares into a greater number of Shares, (iii) combine
its outstanding Shares into a smaller number of Shares or (iv) issue by
reclassification of its Shares, any shares of its capital stock, the amount of
Shares purchasable upon the exercise of each Warrant immediately prior thereto
shall be adjusted so that the Holder shall be entitled to receive upon exercise
of the Warrant that number of Shares which such Holder would have owned or would
have been entitled to receive after the happening of such event had such Holder
exercised the Warrant immediately prior to the record date, in the case of such
dividend, or the effective date, in the case of any such subdivision,
combination or reclassification. An adjustment made pursuant to this
subparagraph (a) shall be made whenever any of such events shall occur, but
shall become effective retroactively after such record date or such effective
date, as the case may be, as to Warrants exercised between such record date or
effective date and the date of happening of any such event.

<PAGE>

          (b) Notice to Warrant Holders of Adjustment. Whenever the number of
Shares purchasable hereunder is adjusted as herein provided, the Company shall
cause to be mailed to the Holder in accordance with the provisions of this
Section 6 a notice (i) stating that the number of Shares purchasable upon
exercise of this Warrant have been adjusted, (ii) setting forth the adjusted
number of Shares purchasable upon the exercise of a Warrant and (iii) showing in
reasonable detail the computations and the facts, including the amount of
consideration received or deemed to have been received by the Company, upon
which such adjustments are based.

     7. FRACTIONAL SHARES. The Company shall not be required to issue any
fraction of a Share upon the exercise of Warrants. If more than one Warrant
shall be surrendered for exercise at one time by the same Holder, the number of
full Shares which shall be issuable upon exercise thereof shall be computed on
the basis of the aggregate number of Shares with respect to which this Warrant
is exercised. If any fractional interest in a Share shall be deliverable upon
the exercise of this Warrant, the Company shall make an adjustment therefore and
pay to the Holder in cash an amount equal to such fraction multiplied by the
closing market price of the Shares on the business day next preceding the day of
exercise.

     8. LOSS OR DESTRUCTION. Upon receipt of evidence satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant
Certificate and, in the case of any such loss, theft or destruction, upon
delivery of an indemnity agreement or bond satisfactory in form, substance and
amount to the Company or, in the case of any such mutilation, upon surrender and
cancellation of this Warrant Certificate, the Company at its expense will
execute and deliver, in lieu thereof, a new Warrant Certificate of like tenor.

     9. SURVIVAL. The various rights and obligations of the Holder hereof as set
forth herein shall survive the exercise of the Warrants represented hereby and
the surrender of this Warrant Certificate.

     10. NOTICES. Whenever any notice, payment of any purchase price, or other
communication is required to be given or delivered under the terms of this
Warrant, it shall be in writing and delivered by hand delivery or United States
registered or certified mail, return receipt requested, postage prepaid, and
will be deemed to have been given or delivered on the date such notice, purchase
price or other communication is so delivered or posted, as the case may be; and,
if to the Company, it will be addressed to the address specified in Section 1
hereof, and if to the Holder, it will be addressed to the registered Holder at
his address as it appears on the books of the Company.

                                                     EWRX Internet Systems, Inc.

                                                     By:________________________

                                                     Title:____________________

                                                     Date:_____________________

ATTEST:

By:______________________

<PAGE>

                                  PURCHASE FORM
                                  -------------

                                                              ____________, 19__

TO:  EWRX Internet Systems, Inc.

     The undersigned hereby irrevocably elects to exercise the attached Warrant
Agreement to the extent of _______ shares of the Common Stock, par value $1.00
per share, of EWRX Internet Systems, Inc. and hereby makes payment by certified
check, US Bank Draft or by Electronic Money Wire Transfer, of $___________ in
accordance with the provisions of Section 1 of the Warrant Certificate in
payment of the purchase price thereof.

                     INSTRUCTIONS FOR REGISTRATION OF STOCK

Name:___________________________________________
     (Please typewrite or print in block letters)

Address: _______________________________

         _______________________________

                                              EWRX Internet Systems, Inc.

                                              By:____________________________EWRX INTERNET SYSTEMS INC.
                                Stock Option Plan

                               ARTICLE I - GENERAL

     1.01. Purpose. The purposes of this Stock Option Plan (the "Plan") are to:
(1) closely associate the interests of the management of EWRX Internet Systems
Inc. and its Subsidiaries and Affiliates (collectively referred to as the
"Company") with the shareholders by reinforcing the relationship between
participants' rewards and shareholder gains; recognizing that such persons will
be largely responsible for the future growth and success of the Company, (2)
provide management with an equity ownership in the Company commensurate with
Company performance, as reflected in increased shareholder value; (3) maintain
competitive compensation levels; (4) provide an incentive to directors,
management and other key employees for continuous employment with the Company
and (5) provide alternative types of stock options: incentive stock options
("ISO") and Non-Qualified stock options ("NQO"). ISO's are intended to have the
rights and limitations set forth in Internal Revenue Code ss. 422.

     1.02. Administration. (a) The Plan shall be administered by a Compensation
Committee appointed by the Board of Directors of the Company (the "Committee"),
as constituted from time to time.

     (b)  The Committee shall have the authority, in its sole discretion and
          from time to time to:

          (i)  designate the individuals eligible to participate in the Plan;

          (ii) grant awards provided in the Plan in such form and amount as the
               Committee shall determine;

          (iii) impose the price at which the option may be exercised and such
               limitations, restrictions and conditions upon any such award as
               the Committee shall deem appropriate; and

          (iv) interpret the Plan, adopt, amend and rescind rules and
               regulations relating to the Plan, and make all other
               determinations and take all other action necessary or advisable
               for the implementation and administration of the Plan.

     (c)  Decisions and determinations of the Committee on all matters relating
          to the Plan shall be in its sole discretion and shall be conclusive.

     (d)  An option granted hereunder shall be clearly identified as an ISO or
          NQO.

                                       1
<PAGE>

     (e)  Notwithstanding the foregoing provisions, nothing herein shall be
          deemed to prohibit (i) the full Board of Directors from approving
          grants of options, or (ii) a majority of voting shareholders of the
          Company from approving or ratifying grants of options at a duly called
          meeting (in the case of ratfication, held no later than the date of
          the next annual meeting of shareholders). It is the intention of this
          paragraph to permit grants of options under this Plan to have the full
          benefit of the provisions of Rule 16b-3 under the Securities Exchange
          Act of 1934, as applicable.

     1.03. Eligibility for Participation. Participants in the Plan shall be
selected by the Committee from the directors, officers, managers, and other key
employees of the Company who occupy responsible managerial or professional
positions, may also include outside consultants, all of whom have the capability
of making a substantial contribution to the success of the Company. In making
this selection and in determining the form and amount of awards, the Committee
shall consider any factors deemed relevant, including the individual's
functions, responsibilities, value of services to the Company and past and
potential contributions to the Company's profitability and sound growth. Only
employees of the Company may receive ISO's.

     1.04. Types of Awards Under Plan. Awards under the Plan may be in for the
form of any one or more of the following:

          (i)  Non-Qualified Stock Options, as described in Article II; and

          (ii) Incentive Stock Options, as described in Article III.

     1.05. Aggregate Limitation on Awards.

          (a) Shares of stock which may be issued under the Plan shall be
authorized and unissued or treasury shares of the Company's Common Stock
("Common Stock"). The maximum number of shares of Common Stock, which may be
issued under the Plan, shall be 1,584,360 shares, subject to increases approved
by the shareholders of the Company.

          (b) Any shares of Common Stock subject to a Non-Qualified Stock Option
or Incentive Stock Option which for any reason is terminated unexercised or
expires shall again be available for issuance under the Plan.

     1.06 Effective Date and Term of Plan.

          (a) The Plan shall become effective on the date approved by the
holders of a majority of the shares of Common Stock present in person or by
proxy and entitled to vote at duly called meeting of Shareholders of the Company
to be called to consider and vote upon the Plan.

          (b) No awards shall be made under the Plan after the last day of the
Company's fiscal year ending in 2008 provided, however, that the Plan and all
awards made under the Plan prior to such date shall remain in effect until such
awards have been satisfied or terminated in accordance with the Plan and the
terms of such awards.

                                       2
<PAGE>

                     ARTICLE II -NON-QUALIFIED STOCK OPTIONS

     2.01. Award of Non-Qualified Stock Options. The Committee may from time to
time, and subject to the provisions of the Plan and such other terms and
conditions as the Committee may prescribe, grant to any participant in the Plan
one or more options to purchase for cash the number of shares of Common Stock
("NQO") allocated by the Committee. The date an NQO is granted shall mean the
date selected by the Committee as of which the Committee allocates a specific
number of shares to a participant pursuant to the Plan.

     2.02. Stock Option Agreements. The grant of an NQO shall be evidenced by a
written Stock Option Agreement, executed by the Company and the holder of
options (the "Optionee"), stating the number of shares of Common Stock subject
to the Stock Option evidenced thereby, and in such form as the Committee may
from time to time determine.

     2.03. Stock Option Price. The option price per share of Common Stock
deliverable upon the exercise of an NQO shall be set by the Board of Directors
based on Fair Market Value at the time options are granted by the Board of
Directors.

     2.04. Term and Exercise. Each NQO shall be fully exercisable for a period
designated by the Committee not to exceed five years from the date of grant
thereof (the "option term"). No NQO shall be exercisable after the expiration of
its option term.

     2.05. Manner of Payment. Each Stock Option Agreement shall set forth the
procedure governing the exercise of the Stock Option granted thereunder, and
shall provide that, upon such exercise in respect of any shares of Common Stock
subject thereto, the Optionee shall pay to the Company, in full, the option
price for such shares with cash or good funds.

     2.06. Delivery of Stock Certificates. As soon as practicable after receipt
of cash payment or good funds as full payment, the Company shall deliver to the
Optionee a certificate or certificates for such shares of Common Stock. The
Optionee shall become a shareholder of the Company with respect to Common Stock
represented by share certificates so issued and as such shall be fully entitled
to receive dividends, to vote and to exercise all other rights of a shareholder.

     2.07. Death of Optionee.

(a) Upon the death of an Optionee, any rights which have become exercisable on
or before the date of death may be exercised by the Optionee's estate, or by a
person who acquires the right to exercise such Stock Option by bequest or
inheritance following the death of the Optionee, provided that such exercise
occurs within both the remaining effective term of the Stock Option and one year
after the Optionee's death.

                                       3
<PAGE>

(b) The provisions of this Section shall apply notwithstanding the fact that the
Optionee's employment may have terminated prior to death, but only to the extent
of any rights which were exercisable on the date of death.

     2.08. Retirement or Disability. Upon termination of the Optionee's
employment by reason of retirement or permanent disability (as each is
determined by the Committee), the Optionee may, within 36 months from the date
of termination, exercise any NQO's to the extent such options had become
exercisable on or before such termination of employment.

     2.09. Termination for Other Reasons. Except as provided in Sections 2.07
and 2.08, or except as otherwise determined by the Committee, all unexercised
NQO's shall terminate 30 days after the termination of the Optionee's employment
or contractual arrangement with the Company.

                      ARTICLE III - INCENTIVE STOCK OPTIONS

     3.01. Award of Incentive Stock Options. The Committee may, from time to
time and subject to the provisions of the Plan and such other terms and
conditions as the Committee may prescribe, grant to any officer, director or
other key employee in the Plan one or more "Incentive Stock Options" (intended
to qualify as such under the provisions of section 422 of the Internal Revenue
Code of 1986, as amended ("ISO") to purchase for cash the number of shares of
Common Stock allotted by the Committee. The date an ISO is granted shall mean
the date selected by the Committee as of which the Committee allots a specific
number of ISO's to a participant pursuant to the Plan.

     3.02. Incentive Stock Option Agreements. The grant of an ISO shall be
evidenced by a written Incentive Stock Option Agreement, executed by the Company
and "Optionee"), stating the number of shares of Common Stock subject to the ISO
evidenced thereby, and in such form as the Committee may from time to time
determine.

     3.03. Incentive Stock Option Price. The option price per share of Common
Stock deliverable upon the exercise of an Incentive Stock Option shall be 100%
of the Fair Market Value of a share of Common Stock on the date the Incentive
Stock Option is granted or 110% of such value if granted to a person owning in
excess of 10% of the Company's outstanding stock.

     3.04. Term and Exercise. Each ISO shall be fully exercisable one month from
the date of its grant and unless a longer period is provided by the Committee
and may be exercised during a period of determined by the Committee from the
date of grant thereof, (not to exceed five years) (the "Option Term") or less if
so specified by the Committee. No ISO shall be exercisable after the expiration
of its Option Term.

     3.05. Maximum Amount of Incentive Stock Option Grant. The aggregate fair
market value (determined on the date the option is granted) of Common Stock
subject to an ISO granted to an Optionee which may be exercised for the first
time by such Optionee in any calendar year shall not exceed $100,000.

                                       4
<PAGE>

     3.06. Death of Optionee.

          (a) Upon the death of the Optionee, any ISO which had become
exercisable on or before the date of death may be exercised by the Optionee's
estate or by a person who acquires the right to exercise such ISO by bequest or
inheritance following the death of the Optionee, provided that such exercise
occurs within both the remaining option term of the ISO and one year after the
Optionee's death.

          (b) The provisions of this Section shall apply notwithstanding the
fact that the Optionee's employment may have terminated prior to death, but only
to the extent of any ISO which were exercisable on the date of death.

     3.07. Retirement or Disability. Upon the termination of the Optionee's
employment by reason of permanent disability or retirement (as each is
determined by the Committee), the Optionee may, within 36 months from the date
of such termination of employment, exercise any ISO's to the extent such ISO's
had become exercisable on or before the date of such termination of employment.
Notwithstanding the foregoing, the tax treatment available pursuant to Section
422 of the Internal Revenue Code of 1986 upon the exercise of an ISO will not be
available to an Optionee who exercises any Incentive Stock Options more than (i)
12 months after the date of termination of employment due to permanent
disability or (ii) three months after the date of termination of employment due
to retirement.

     3.08. Termination for Other Reasons. Except as provided in Sections 3.06
and 3.07 or except as otherwise determined by the Committee, all Incentive Stock
Options shall terminate 30 days after the termination of the Optionee's
employment or contractual arrangement with the Company.

     3.09. Applicability of Stock Options Sections. Sections 2.05 and 2.06 shall
also apply to Incentive Stock Options. Said Sections are incorporated by
reference in this Article III as though fully set forth herein.

                           ARTICLE IV - MISCELLANEOUS

     4.01. General Restriction. Each award under the Plan shall be subject to
the requirement that, if at any time the Committee shall determine that (i) the
listing, registration or qualification of the shares of Common Stock subject or
related thereto upon any securities exchange or under any state or Federal law,
or (ii) the consent or approval of any government regulatory body, or (iii) an
agreement by the grantee of an award with respect to the disposition of shares
of Common Stock, is necessary or desirable as a condition of, or in connection
with, the granting of such award or the issue or purchase of shares of Common
Stock thereunder, such award may not be consummated in whole or in part unless
such listings, registration, qualification, consent, approval or agreement shall
have been effected or obtained free of any conditions not acceptable to the
Committee. The certificates evidencing ownership of shares of Common Stock
acquired upon exercise of any Stock Option or Incentive Stock Option awarded
under the Plan shall bear such legends as the Committee shall approve as
necessary or desirable to conform to applicable laws and regulations relating to
the sale of securities.

                                       5
<PAGE>

     4.02. Non-Assignability. No award under the Plan shall be assignable or
transferable by the recipient thereof, except by will or by the laws of descent
and distribution. During the life of the recipient, such award shall be
exercisable only by such person or by such person's guardian or legal
representative.

     4.03. Withholding Taxes. Whenever the company proposes or is required to
issue or transfer shares of Common Stock under the Plan, the Company shall have
the right to require the grantee to remit to the Company an amount sufficient to
satisfy any Federal, state and/or local withholding tax requirements prior to
the delivery of any certificate or certificates for such shares. Alternatively,
the Company may issue or transfer such shares of Common Stock net of the number
of shares sufficient to satisfy the withholding tax requirements. For
withholding tax purposes, the shares of Common Stock shall be valued on the date
the withholding obligation is incurred.

     4.04. Right to Terminate Employment. Nothing in the Plan or in any
agreement entered into pursuant to the Plan shall confer upon any participant
the right to continue in the employment of the Company or effect any right which
the Company may have to terminate the employment of such participant.

     4.05. Non-Uniform Determinations. The Committee's determinations under the
Plan (including without limitation determinations of the persons to receive
awards, the form, amount and timing of such awards, the terms and provisions of
such awards and the agreements evidencing same) need not be uniform and may be
made by it selectively among persons who receive, or are eligible to receive,
awards under the Plan, whether or not such persons are similarly situated.

     4.06. Rights as a Shareholder. The recipient of any award under the Plan
shall have no rights as a shareholder with respect thereto unless and until
certificates for shares of Common Stock are issued to him.

     4.07. Definitions. In this Plan the following definitions shall apply:

(a) "Subsidiary" means any corporation of which, at the time more than 50% of
the shares entitled to vote generally in an election of directors are owned
directly or indirectly by EWRX Internet Systems Inc. or any subsidiary thereof.

(b) "Affiliate" means any person or entity which directly, or indirectly through
one or more intermediaries, controls, is controlled by, or is under common
control with EWRX Internet Systems Inc.

(c) "Fair Market Value" as of any date and in respect of any share of Common
Stock means the average of the closing price for the late five trading date or
on the next business day, if such date is not a business day, of a share of

                                       6
<PAGE>

Common Stock on any stock exchange or any stock market upon which the Common
Stock may then be listed or traded, or if the Common Stock is not so listed or
traded then the fair market value of shares of Common Stock shall be as
determined by the Committee in such other manner as it may deem appropriate. In
no event shall the fair market value of any share of Common Stock be less than
its par value.

(d) "Option price" means the purchase price per share of Common Stock
deliverable upon the exercise of a Stock Option or Incentive Stock Option.

(e) "Optionee" means the holder of a stock option as described in Article II or
in Incentive Stock Option as described in Article III.

(f) "Optioned Shares" means the number of shares the Optionee is entitled as a
result of his being granted options in the Stock Option Plan.

(g) "Non-Qualified Stock Option" refers to non-qualified stock options under
Article II.

(h) "Incentive Stock Option" refers to incentive stock options under Article
III.

     4.08. Leaves of Absence. The Committee shall be entitled to make such
rules, regulations and determinations as it deems appropriate under the Plan in
respect of any leave of absence taken by the recipient of any award. Without
limiting the generality of the foregoing, the Committee shall be entitled to
determine (i) whether or not any such leave of absence shall constitute a
termination of employment within the meaning of the Plan and (ii) the impact, if
any, of any such leave of absence on awards under the Plan theretofore made to
any recipient who takes such leave of absence.

     4.09. Newly Eligible Employees. The Committee shall be entitled to make
such rules, regulations, determinations and awards as it deems appropriate in
respect of any employee who becomes eligible to participate in the Plan or any
portion thereof after the commencement of an award or incentive period.

     4.10. Adjustments.

     Effect of Take-over Bid
     -----------------------

          If a bona fide offer ("the Offer") for Shares is made to shareholders
     generally or to a class of shareholders which includes the Optionee, which
     Offer, if accepted in whole or in part, would result in the offeror
     exercising control over the Company within the meaning of Nevada Statutes,
     then the Company shall, immediately upon receipt of the notice of the
     Offer, notify shareholders with full particulars thereof. Such Option may
     be exercised in whole or in part by the Optionee so as to permit the
     Optionee to tender the Optioned Shares pursuant to the Offer if the offer
     is completed.

                                       7
<PAGE>

     Effect of Amalgamation, Consolidation or Merger
     -----------------------------------------------

          If the Company amalgamates, consolidates or with or merges with into
     another company any Shares receivable on the exercise of an Option shall be
     converted into securities or cash which the Optionee would have received
     upon such amalgamation, consolidated or merger if the Optionee had
     exercised his Option immediately prior to the record date applicable to
     such amalgamation, consolidation or merger, and the option price shall be
     adjusted appropriately by the Board.

     Adjustment in Shares Subject to the Plan
     ----------------------------------------

          If there is any change in the shares through or by means of a
     declaration of stock dividends of Shares of consolidations, subdivisions or
     reclassification of Shares, or otherwise, the number of Shares available
     under the Plan, the Shares subject to any Option, and the purchase price
     thereof shall be adjusted appropriately by the Committee and such
     adjustment shall be effective and binding for all purposes of the Plan.

     4.11. Amendment of the Plan.

          (a)  The Committee may, without further action by the shareholders and
               without receiving further consideration from the participants,
               amend this Plan or condition or modify awards under the Plan in
               response to changes in securities or other laws or rules,
               regulations or regulatory interpretations

          (b)  The Committee may at any time and from time to time terminate or
               modify or amend the Plan in any respect, except that without
               shareholder approval the Committee may not (i) increase the
               maximum number of shares of Common Stock which may be issued
               under the Plan, (ii) extend the period during which any award may
               be granted or exercised or (iii) change the persons eligible to
               receive ISO's. The termination or any modification or amendment
               of the Plan, except as provided in subsection (a), shall not,
               without the consent of a participant, affect a participant's
               rights under an award previously granted.

     4.12. No Representations or Warranty

     The Company makes no representation or warranty as to the future market
value of any shares issued in accordance with the provisions of the Plan.

     4.13. Interpretation

     The Plan will be governed by and construed in accordance with the laws of
the State of Nevada.

                                       8
<PAGE>

     4.14. Compliance with Applicable Law

     If any provision of the Plan or any agreement entered into pursuant to the
Plan contravenes any law or any order, policy, by-law or regulation of any
regulatory body or stock exchange having authority over the Company or the Plan,
then such provision shall be deemed to be amended to the extent required to
bring such provision into compliance therewith.

     4.15 Stock Appreciation Rights, Etc.

     The grant of Options hereunder may be accompanied by grant of stock
appreciation rights, rights to have stock withheld or rights to deliver stock
already owned in payment of the exercise price of an option. The terms and
conditions of such rights shall be set forth in the agreement evidencing such
Options or amendments thereto.

                                       9

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