Document:

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                                                                    EXHIBIT 10.4

                            WINK COMMUNICATIONS, INC.

                            1999 DIRECTOR OPTION PLAN

        1. Purposes of the Plan. The purposes of this 1999 Director Option Plan
are to attract and retain the best available personnel for service as Outside
Directors (as defined herein) of the Company, to provide additional incentive to
the Outside Directors of the Company to serve as Directors, and to encourage
their continued service on the Board.

               All options granted hereunder shall be nonstatutory stock
options.

        2. Definitions. As used herein, the following definitions shall apply:

               (a) "Board" means the Board of Directors of the Company.

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

               (c) "Common Stock" means the common stock of the Company.

               (d) "Company" means Wink Communications, Inc., a Delaware
corporation.

               (e) "Director" means a member of the Board.

               (f) "Disability" means total and permanent disability as defined
in section 22(e)(3) of the Code.

               (g) "Employee" means any person, including officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a Director's fee by the Company shall not be sufficient in and of
itself to constitute "employment" by the Company.

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

               (i) "Fair Market Value" means, as of any date, the value of
Common Stock determined as follows:

                          (i) If the Common Stock is listed on any established
stock exchange or a national market system, including without limitation the
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination as reported in
The Wall Street Journal or such other source as the Administrator deems
reliable;

                          (ii) If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock for the last market trading day prior
to the time of determination, as reported in The Wall Street Journal or such
other source as the Board deems reliable; or

<PAGE>

                          (iii) In the absence of an established market for the
Common Stock, the Fair Market Value thereof shall be determined in good faith by
the Board.

               (j) "Inside Director" means a Director who is an Employee.

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

               (l) "Optioned Stock" means the Common Stock subject to an Option.

               (m) "Optionee" means a Director who holds an Option.

               (n) "Outside Director" means a Director who is not an Employee.

               (o) "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

               (p) "Plan" means this 1999 Director Option Plan.

               (q) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 10 of the Plan.

               (r) "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Internal Revenue Code of
1986.

        3. Stock Subject to the Plan. Subject to the provisions of Section 10 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 250,000 Shares (the "Pool"). The Shares may be authorized, but
unissued, or reacquired Common Stock.

           If an Option expires or becomes unexercisable without having been
exercised in full, the unpurchased Shares which were subject thereto shall
become available for future grant or sale under the Plan (unless the Plan has
terminated). Shares that have actually been issued under the Plan shall not be
returned to the Plan and shall not become available for future distribution
under the Plan.

        4. Administration and Grants of Options under the Plan.

               (a) Procedure for Grants. All grants of Options to Outside
Directors under this Plan shall be automatic and nondiscretionary and shall be
made strictly in accordance with the following provisions:

                          (i) No person shall have any discretion to select
which Outside Directors shall be granted Options or to determine the number of
Shares to be covered by Options.

                          (ii) Each Outside Director shall be automatically
granted an Option to purchase 40,000 Shares (the "First Option") on the date on
which such person first becomes an Outside Director, whether through election by
the shareholders of the Company or appointment by the Board to fill a vacancy;
provided, however, that an Inside Director who ceases to be an Inside Director
but who remains a Director shall not receive a First Option.

                                      -2-

<PAGE>

                          (iii) Each Outside Director shall be automatically
granted an Option to purchase 40,000 Shares (a "Subsequent Option") on each
fourth anniversary of the date of grant of his or her First Option (or in the
case of persons who were Outside Directors at the time of the Company's initial
public offering, the fourth anniversary of the last option granted to such
person prior to such initial public offering, and in the case of an Inside
Director who comes to be an Inside Director but also remains a Director, the
fourth anniversary of the date such person ceases to be an Inside Director)
provided he or she is then an Outside Director and has served continuously as a
Outside Director during such four year period.

                          (iv) Notwithstanding the provisions of subsections
(ii) and (iii) hereof, any exercise of an Option granted before the Company has
obtained shareholder approval of the Plan in accordance with Section 16 hereof
shall be conditioned upon obtaining such shareholder approval of the Plan in
accordance with Section 16 hereof.

                          (v) The terms of a First Option granted hereunder
shall be as follows:

                             (A) the term of the First Option shall be ten (10)
years.

                             (B) the First Option shall be exercisable only
while the Outside Director remains a Director of the Company, except as set
forth in Sections 8 and 10 hereof.

                             (C) the exercise price per Share shall be 100% of
the Fair Market Value per Share on the date of grant of the First Option.

                             (D) subject to Section 10 hereof, the First Option
shall become exercisable as to twenty-five (25) percent of the Shares subject to
the First Option on each anniversary of its date of grant, provided that the
Optionee continues to serve as a Director on such dates.

                          (vi) The terms of a Subsequent Option granted
hereunder shall be as follows:

                             (A) the term of the Subsequent Option shall be ten
(10) years.

                             (B) the Subsequent Option shall be exercisable only
while the Outside Director remains a Director of the Company, except as set
forth in Sections 8 and 10 hereof.

                             (C) the exercise price per Share shall be 100% of
the Fair Market Value per Share on the date of grant of the Subsequent Option.

                             (D) subject to Section 10 hereof, the Subsequent
Option shall become exercisable as to twenty-five (25) percent of the Shares
subject to the Subsequent Option on each anniversary of its date of grant,
provided that the Optionee continues to serve as a Director on such dates.

                           (vii) In the event that any Option granted under the
Plan would cause the number of Shares subject to outstanding Options plus the
number of Shares previously purchased under Options to exceed the Pool, then the
remaining Shares available for Option grant shall be

                                      -3-
<PAGE>

granted under Options to the Outside Directors on a pro rata basis. No further
grants shall be made until such time, if any, as additional Shares become
available for grant under the Plan through action of the Board or the
shareholders to increase the number of Shares which may be issued under the Plan
or through cancellation or expiration of Options previously granted hereunder.

        5. Eligibility. Options may be granted only to Outside Directors. All
Options shall be automatically granted in accordance with the terms set forth in
Section 4 hereof.

           The Plan shall not confer upon any Optionee any right with respect to
continuation of service as a Director or nomination to serve as a Director, nor
shall it interfere in any way with any rights which the Director or the Company
may have to terminate the Director's relationship with the Company at any time.

        6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 16 of the Plan. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 11 of the Plan.

        7. Form of Consideration. The consideration to be paid for the Shares to
be issued upon exercise of an Option, including the method of payment, shall
consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of
Shares acquired upon exercise of an option, have been owned by the Optionee for
more than six (6) months on the date of surrender, and (y) have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which said Option shall be exercised, (iv) consideration received
by the Company under a cashless exercise program implemented by the Company in
connection with the Plan, or (v) any combination of the foregoing methods of
payment.

        8. Exercise of Option.

               (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable at such times as are set forth in Section
4 hereof; provided, however, that no Options shall be exercisable until
shareholder approval of the Plan in accordance with Section 16 hereof has been
obtained.

                      An Option may not be exercised for a fraction of a Share.

                      An Option shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the
terms of the Option by the person entitled to exercise the Option and full
payment for the Shares with respect to which the Option is exercised has been
received by the Company. Full payment may consist of any consideration and
method of payment allowable under Section 7 of the Plan. Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such Shares, no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. A share certificate for the number of Shares so acquired
shall be issued to the Optionee as soon as practicable after exercise of the
Option. No adjustment shall be made for a dividend or other right for which the
record date is prior to the date the stock certificate is issued, except as
provided in Section 10 of the Plan.

                                      -4-
<PAGE>

                      Exercise of an Option in any manner shall result in a
decrease in the number of Shares which thereafter may be available, both for
purposes of the Plan and for sale under the Option, by the number of Shares as
to which the Option is exercised.

               (b) Termination of Continuous Status as a Director. Subject to
Section 10 hereof, in the event an Optionee's status as a Director terminates
(other than upon the Optionee's death or Disability), the Optionee may exercise
his or her Option, but only within three (3) months following the date of such
termination, and only to the extent that the Optionee was entitled to exercise
it on the date of such termination (but in no event later than the expiration of
its ten (10) year term). To the extent that the Optionee was not entitled to
exercise an Option on the date of such termination, and to the extent that the
Optionee does not exercise such Option (to the extent otherwise so entitled)
within the time specified herein, the Option shall terminate.

               (c) Disability of Optionee. In the event Optionee's status as a
Director terminates as a result of Disability, the Optionee may exercise his or
her Option, but only within twelve (12) months following the date of such
termination, and only to the extent that the Optionee was entitled to exercise
it on the date of such termination (but in no event later than the expiration of
its ten (10) year term). To the extent that the Optionee was not entitled to
exercise an Option on the date of termination, or if he or she does not exercise
such Option (to the extent otherwise so entitled) within the time specified
herein, the Option shall terminate.

               (d) Death of Optionee. In the event of an Optionee's death, the
Optionee's estate or a person who acquired the right to exercise the Option by
bequest or inheritance may exercise the Option, but only within twelve (12)
months following the date of death, and only to the extent that the Optionee was
entitled to exercise it on the date of death (but in no event later than the
expiration of its ten (10) year term). To the extent that the Optionee was not
entitled to exercise an Option on the date of death, and to the extent that the
Optionee's estate or a person who acquired the right to exercise such Option
does not exercise such Option (to the extent otherwise so entitled) within the
time specified herein, the Option shall terminate.

        9. Non-Transferability of Options. The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

        10. Adjustments Upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

               (a) Changes in Capitalization. Subject to any required action by
the shareholders of the Company, the number of Shares covered by each
outstanding Option, the number of Shares which have been authorized for issuance
under the Plan but as to which no Options have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option, as well
as the price per Share covered by each such outstanding Option, and the number
of Shares issuable pursuant to the automatic grant provisions of Section 4
hereof shall be proportionately adjusted for any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Except as expressly provided

                                      -5-

<PAGE>

herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of Shares subject to an Option.

               (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, to the extent that an Option has not
been previously exercised, it shall terminate immediately prior to the
consummation of such proposed action.

               (c) Merger or Asset Sale. In the event of a merger of the Company
with or into another corporation, the sale of substantially all of the assets of
the Company or a like transaction involving the Company, outstanding Options may
be assumed or equivalent options may be substituted by the successor corporation
or a Parent or Subsidiary thereof (the "Successor Corporation"). If an Option is
assumed or substituted for, the Option or equivalent option shall continue to be
exercisable as provided in Section 4 hereof for so long as the Optionee serves
as a Director or a director of the Successor Corporation. Following such
assumption or substitution, if the Optionee's status as a Director or director
of the Successor Corporation, as applicable, is terminated other than upon a
voluntary resignation by the Optionee, the Option or option shall become fully
exercisable, including as to Shares for which it would not otherwise be
exercisable. Thereafter, the Option or option shall remain exercisable in
accordance with Sections 8(b) through (d) above.

                      If the Successor Corporation does not assume an
outstanding Option or substitute for it an equivalent option, the Option shall
become vested and exercisable as for up to fifty percent (50%) of the Shares for
which it would not otherwise be exercisable. In such event the Board shall
notify the Optionee that the Option shall be fully exercisable for a period of
thirty (30) days from the date of such notice, and upon the expiration of such
period the Option shall terminate.

                      For the purposes of this Section 10(c), an Option shall be
considered assumed if, following the merger or sale of assets, the Option
confers the right to purchase or receive, for each Share of Optioned Stock
subject to the Option immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) received in
the merger or sale of assets by holders of Common Stock for each Share held on
the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares). If such consideration received in the merger or sale of
assets is not solely common stock of the successor corporation or its Parent,
the Administrator may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of the Option, for each
Share of Optioned Stock subject to the Option, to be solely common stock of the
successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the merger or sale of
assets.

        11. Amendment and Termination of the Plan.

               (a) Amendment and Termination. The Board may at any time amend,
alter, suspend, or discontinue the Plan, but no amendment, alteration,
suspension, or discontinuation shall be made which would impair the rights of
any Optionee under any grant theretofore made, without his or her consent. In
addition, to the extent necessary and desirable to comply with any applicable

                                      -6-
<PAGE>

law, regulation or stock exchange rule, the Company shall obtain shareholder
approval of any Plan amendment in such a manner and to such a degree as
required.

               (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated.

        12. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date determined in accordance with Section 4 hereof.

        13. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

               As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares, if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

               Inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company's counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

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

        15. Option Agreement. Options shall be evidenced by written option
agreements in such form as the Board shall approve.

        16. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the degree and manner
required under applicable state and federal law and any stock exchange rules.

                                      -7-<PAGE>

                                                                    EXHIBIT 4.1

                            SUNRISE TELEVISION CORP.

                  NON-QUALIFIED STOCK OPTION LETTER AGREEMENT

TO:  Dr. William Cunningham
     University of Texas at Austin
     P.O. Box E
     Austin, Texas 78713
     (512) 232-7540

         We are pleased to inform you that you have been selected by Sunrise
Television Corp. (the "Company") to receive a non-qualified option (the
"Option") of the Company under the Company's 2002 Stock Option Plan (the
"Plan") to purchase 3,000 shares of the Company's Class B common stock, $.01
par value per share (the "Common Stock"), at an exercise price of $61.41 per
share. A copy of the Plan is attached to and incorporated into this Letter
Agreement by this reference. Capitalized terms not otherwise defined herein
shall have the meanings set forth in the Plan.

         The terms of the Option are as set forth in the Plan and in this
Letter Agreement. The most important of the terms are summarized as follows:

         TERM: The term of the Option is ten (10) years from date of grant,
unless sooner terminated.

         EXERCISE: Only you can exercise the Option during your lifetime. The
Plan also provides for exercise of the Option by the personal representative of
your estate, by a Person who acquired the right to exercise the Option by
inheritance or bequest or otherwise by reason of your death or by your legal
representative as a result of your Disability. You may use the Notice of
Exercise of Non-qualified Stock Option in the form attached to this Letter
Agreement when you exercise the Option.

         PAYMENT FOR SHARES: The Option may be exercised by the delivery of:

         (a) Cash, personal check (unless, at the time of exercise, the
Committee determines otherwise), bank-certified check or cashier's check;

         (b) Unless the Committee, in its sole discretion, determines
otherwise, shares of the Company's capital stock held by you for at least six
months having a fair market value at the time of exercise, as determined in
good faith by the Committee, equal to the exercise price;

         (c) After such time as the stock is publicly traded, unless the
Committee in its sole discretion determines otherwise, a properly executed
exercise notice together with irrevocable instructions to a broker to promptly
deliver to the Company the amount of sale or loan proceeds to pay the exercise
price; or

<PAGE>

         (d) A full recourse promissory note in the original principal amount
of the exercise price of the Option, with such terms as the Committee may
prescribe, including a fixed interest rate set by the Committee, and the shares
of Common Stock acquired with the proceeds of such note shall be pledged as
collateral for the repayment for such note.

         WITHHOLDING TAXES: As a condition to the exercise of the options, you
shall make such arrangements as the Company may require for the satisfaction of
any federal, state or local withholding tax obligations that may arise in
connection with such exercise. The Company shall have the right to retain
without notice sufficient shares of Common Stock to satisfy the withholding
obligation. To the extent permitted or required by the Company, you may satisfy
the withholding obligation by electing to have the Company or a Related Entity
withhold from the shares to be issued pon exercise that number of shares having
a Fair Market Value equal to the amount to be withheld.

         TERMINATION:

         a)       Termination for Cause; Voluntary Termination: Notwithstanding
                  Section 7.f of the Plan, the following provision shall apply.
                  If the Company terminates your services for Good Cause or you
                  voluntarily terminate your services or relationship with the
                  Company other than in connection with a Termination Event of
                  the type specified in clause (ii) of the definition thereof,
                  the unexercised portion of the Option, whether vested or not,
                  as of the date of such termination shall be immediately
                  forfeited.

         b)       Death: In the event of your death, the personal
                  representative or your estate or a Person who acquired the
                  right to exercise the Option by inheritance or bequest or
                  otherwise by reason of your death shall have 180 days from
                  the date of your death to exercise the then vested but
                  unexercised portion of the Option as of the date of your
                  death.

         c)       Disability: In the event of your Disability, you or your
                  legal representative shall have 180 days from the date of
                  your Disability to exercise the then vested but unexercised
                  portion of the Option as of the date your services were
                  terminated as a result of your Disability.

         d)       Other Termination. In the event your services rendered to the
                  Company terminate for any reason (other than (i) those
                  reasons specified in paragraphs (a), (b) or (c) above, (ii)
                  in connection with the termination of the Management Services
                  Agreement by the Company without Cause (as defined in the
                  Management Services Agreement) or (iii) in connection with
                  the termination of the Management Services Agreement by the
                  Manager with Good Reason (as defined in the Management
                  Services Agreement)), you shall have 30 days from the date of
                  such termination to exercise the then vested but unexercised
                  portion of the Option as of the date of such termination; for
                  the avoidance of doubt, the Option may be exercised at any
                  point during the Term if your services are terminated
                  pursuant to clauses (ii) or (iii) above.

                                       2
<PAGE>

         e)       No Extension of the Ten-Year Expiration Date: The 180-day
                  period referred to in paragraphs (b) and (c) above shall not
                  extend beyond the ten-year expiration date of the Option.

         TRANSFER OF OPTION: The Option is not transferable except by will or
by the applicable laws of descent and distribution. During your lifetime, the
Option shall be exercisable only by your or, in the event that a legal
representative has been appointed in connection with your Disability, such
legal representative.

         VESTING: Unless accelerated in accordance with the Plan or this letter
agreement, the Option shall vest and become exercisable according to the
following schedule:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                   Period                                        Portion of Total Option That is Exercisable
--------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>
   From January 7, 2002 through and including                                     8.33%
   April 6, 2002
--------------------------------------------------------------------------------------------------------------------
   From April 7, 2002 through and including                                       8.33%
   July 6, 2002
--------------------------------------------------------------------------------------------------------------------
   From July 7, 2002 through and including                                        8.33%
   October 6, 2002
--------------------------------------------------------------------------------------------------------------------
   From October 7, 2002 through and including                                     8.33%
   January 6, 2003
--------------------------------------------------------------------------------------------------------------------
   From January 7, 2003 through and including                                     8.33%
   April 6, 2003
--------------------------------------------------------------------------------------------------------------------
   From April 7, 2003 through and including                                       8.33%
   July 6, 2003
--------------------------------------------------------------------------------------------------------------------
   From July 7, 2003 through and including                                        8.33%
   October 6, 2003
--------------------------------------------------------------------------------------------------------------------
   From October 7, 2003 through and including                                     8.33%
   January 6, 2004
--------------------------------------------------------------------------------------------------------------------
   From January 7, 2004 through and including                                     8.33%
   April 6, 2004
--------------------------------------------------------------------------------------------------------------------
   From April 7, 2004 through and including                                       8.33%
   July 6, 2004
--------------------------------------------------------------------------------------------------------------------
   From July 7, 2004 through and including                                        8.33%
   October 6, 2004
--------------------------------------------------------------------------------------------------------------------
   From October 7, 2004 through and including                                     8.34%
   January 6, 2005
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       3

<PAGE>

         CHANGE OF CONTROL; CERTAIN TERMINATION EVENTS: In the event of a
Change of Control, the Committee shall provide not less than ten days' prior
written notice of such event to you and the Option (whether vested or not)
shall immediately vest and be exercisable in full beginning not less than the
earlier of (i) ten days prior to the occurrence of such Change of Control or
(ii) such other date specified in the Committee's notice; provided that if any
such event is of a type or nature such that ten days prior written notice
thereof is not feasible, then the Committee shall provide notice to you of such
event as promptly as possible and the Option (whether vested or not) shall
immediately vest and be exercisable in full on the date specified in the
Committee's notice (which shall be not less than fifteen (15) days from the
date of such notice), or, if no such date is specified, within thirty (30) days
after the date upon which the Committee provided notice. In the event that your
services to the Company are terminated in connection with the termination of
the Management Services Agreement by the Company without Cause (as defined in
the Management Services Agreement) or in connection with the termination of the
Management Services Agreement by the Manager with Good Reason (as defined in
the Management Services Agreement)), the Option (whether vested or not) shall
immediately vest and be exercisable in full.

         PURCHASE OPTION: In the event: your services to or other relationship
with the Company terminates for any reason or a Change of Control occurs, the
Company shall have the right to give notice within one year of such termination
or Change of Control, as applicable, of the Company's election to purchase any
or all unexercised portion of the Option and all shares of Common Stock issued
as a result of the exercise of the Option, whether held by you, your assignees
(in the case of shares of Common Stock), your legal representative (in the case
of your Disability), your executor or administrator of your estate (in the case
of your death) or any Person who acquires such shares or the Option as a result
of your death, as applicable. The purchase price, in the case of shares of
Common Stock, shall be the Fair Market Value per share as of the date of the
notice of exercise of the Purchase Option times the number of shares being
purchased, and in the case of the Option, the Fair Market Value per share (less
the applicable per share Option exercise price) times the number of vested
shares (including by acceleration) subject to such Option which are being
purchased. The Company's Purchase Option shall cease to exist upon the
consummation of a Qualifying Public Offering.

         DATE OF ACT: The grant of the Option shall be effective as of
February 8, 2002.

         ARBITRATION: As a condition of the Company's grant of the Option to
you, you agree that all disputes between you and the Company shall be resolved
by final and binding arbitration in accordance with the provisions of this
section. This agreement to arbitrate shall remain in effect after termination
of this Agreement with respect to any disputes arising out of events occurring
during the term hereof or arising out of or relating to this Agreement. A party
intending to assert a claim must serve, by hand delivery or a form of mail that
requires a signed return receipt, a written demand for arbitration on the other
party. The demand, if against the Company, must be served on a Vice President
or higher-level officer of the Company. The demand must describe the basis of
the claim with reasonable specificity and the remedy requested. The demand must
be received by the person served within the time limitation set forth below.
The arbitration shall be conducted in accordance with the then-prevailing
Employment Dispute Resolution Rules

                                       4

<PAGE>

of the American Arbitration Association. Notwithstanding the foregoing, the
following discovery limitations shall apply to the arbitration proceeding: each
party may take the deposition of one individual only and any expert witness
designated by the other party; both parties shall have the right to subpoena
witnesses and documents, but additional discovery may be had only if the
arbitrator so orders after determining there is a substantial need for the
information. Notwithstanding any longer statutes of limitation provided by law,
no claim of any nature whatsoever may be brought by either party against the
other, in arbitration or otherwise, unless a written demand for arbitration is
served on the other party within thirty (30) days after the claim accrued;
i.e., within thirty (30) days from the date on which the act or event (or
failure to act) on which the claim is based occurred. The arbitrator shall be
authorized to award such relief as is available under the applicable state or
federal law on which the claim is based.

         REGISTRATION. The Company shall not in any event be obligated to file
any registration statement under the Securities Act or any applicable state
securities laws to permit exercise of the Option or to issue any Common Stock
in violation of the Securities Act or any applicable state securities laws. You
(or in the event of your death or, in the event a legal representative has been
appointed in connection with your Disability, the Person exercising the Option)
shall, as a condition to your right to exercise the Option, deliver to the
Company an agreement or certificate containing such representations, warranties
and covenants as the Company may deem necessary or appropriate to ensure that
the issuance of the Common Stock pursuant to such exercise is not required to
be registered under the Securities Act or any applicable state securities laws.

         Certificates for Common Stock, when issued, shall have substantially
the following legend, or statements of other applicable restrictions, endorsed
thereon, and may not be immediately transferable:

                  "THE SHARES OF STOCK REPRESENTED BY THIS
                  CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED, OR ANY
                  STATE SECURITIES LAWS. THE SHARES MAY NOT BE
                  OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED OR
                  OTHERWISE DISPOSED OF UNTIL THE HOLDER HEREOF
                  PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER
                  (WHICH, IN THE DISCRETION OF THE ISSUER, MAY
                  INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO
                  THE ISSUER) THAT SUCH OFFER, SALE, PLEDGE,
                  TRANSFER OR OTHER DISPOSITION WILL NOT VIOLATE
                  APPLICABLE FEDERAL OR STATE LAWS."

The foregoing legend may not be required for Common Stock issued pursuant to an
effective registration statement under the Securities Act and in accordance
with applicable state securities laws.

                                       5

<PAGE>

         Please execute the Acceptance and Acknowledgment set forth below on the
enclosed copy of this Letter Agreement and return it to the undersigned.

                                       Very truly yours,

                                       SUNRISE TELEVISION, CORP.

                                       By: /s/ David A. Fitz
                                          --------------------------------------
                                          David A. Fitz,
                                          Executive Vice President and
                                          Chief Financial Officer

                                       6

<PAGE>

                          ACCEPTANCE AND ACKNOWLEDGMENT

         I, a resident of the State of Texas, accept the non-qualified stock
option described above and in Sunrise Television Corp.'s 2002 Stock Option Plan
(the "Plan") and acknowledge receipt of a copy of this Letter Agreement and the
Plan, and agree to be bound by the same. I have read and understand the Plan.

------------------------               -----------------------------------------
Social Security Number                 Elegible Non-Employee Signature

                                       -----------------------------------------
                                       Print Name

                                       Date:
                                            ------------------------------------

                                       Address
                                              ----------------------------------

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

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

                                       7
<PAGE>

                NOTICE OF EXERCISE OF NON-QUALIFIED STOCK OPTION

To:  Sunrise Television Corp.

         I, a resident of the State of                     , hereby exercise my
non-qualified stock option granted by Sunrise Television Corp. (the "Company")
subject to all the terms and provisions thereof and of the 2002 Stock Option
Plan referred to therein, and notify the Company of my desire to purchase
           shares of Common Stock (the "Securities") of the Company at the
exercise price of $61.41 per share, which were offered to me pursuant to my
non-qualified stock option.

         I hereby represent and warrant that I have (1) been furnished with a
copy of the Plan and all information that I deem necessary to evaluate the
merits and risks of the purchase of the Securities; (2) had the opportunity to
ask questions and receive answers concerning the information that I have
received regarding the Securities and Sunrise; and (3) been given the
opportunity to obtain any additional information I deem necessary to verify the
accuracy of any information obtained concerning the Securities and Sunrise.

------------------------               -----------------------------------------
Social Security Number                 Elegible Non-Employee Signature

                                       -----------------------------------------
                                       Print Name

                                       Date:
                                            ------------------------------------

                                       Address
                                              ----------------------------------

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

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

                                       -----------------------------------------
                                       For:  Sunrise Television Corp.

                                       8

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