Document:

ACQUISITION AGREEMENT AND PLAN OF REORGANIZATION

    THIS ACQUISITION AGREEMENT AND PLAN OF REORGANIZATION (hereinafter
the "Agreement") is made and entered into this 7th day of April, 2000, by and
among OTS Holdings, Inc., a Colorado corporation, (hereinafter "OTS"); Thin
Film Battery, Inc., a Nevada corporation, (hereinafter "Thin Film"); and the
individual shareholders of Thin Film as set forth on the signature page herein
(collectively referred to as "Shareholders" and individually as
"Shareholder").

                                   RECITALS

    WHEREAS, OTS desires to acquire all of the issued and outstanding shares
of Thin Film capital stock in exchange for 15,340,002 shares of authorized,
but previously unissued, OTS common stock pursuant to the terms and conditions
set forth herein;

    WHEREAS, Shareholders desire to exchange all of their shares of Thin Film
capital stock for shares of OTS common stock in the respective amounts set
forth herein; and

    WHEREAS, the parties hereto desire to reorganize the management and
operations of OTS and to change the corporation name to Thin Film Battery,
Inc.

    NOW, THEREFORE, in consideration of the premises and mutual
representation, warranties and covenants herein contained, the parties hereby
agree as follows:

                                  ARTICLE I

                      ACQUISITION AND EXCHANGE OF SHARES

SECTION 1.1  Acquisition and Plan of Reorganization.  The parties hereby agree
that OTS shall acquire all of the issued and outstanding shares of Thin Film
capital stock in exchange for 15,340,002 shares of authorized, but previously
unissued, shares of OTS common stock, par value .001 per share.  It is also
agreed to by the parties hereto that by acquiring all of the shares of Thin
Film capital stock, OTS will acquire all rights, title and interest to assets
and property presently owned by Thin Film, including all rights and interest
in a contract with Oakridge National Labororatories.  Said assets and property
may be subject to certain interests, liens and/or encumbrances which are
further described in the financial statement.  The parties hereto hereby
further agree that (i) at the Closing, as hereinafter defined, Thin Film shall
become a wholly-owned subsidiary of OTS; (ii) as promptly as practicable after
the execution of this Agreement, OTS' corporate name shall be changed to Thin
Film Battery, Inc.; and (iii) as promptly as practicable after the Closing,
the necessary steps shall be taken in order to reflect the relocation of OTS'
principal place of business to a location specified by Thin Film.

SECTION 1.2  Issuance of Shares.

    (a)  Upon the Closing of this Agreement, OTS shall cause to be issued and
    delivered to Shareholders or their designees, stock certificates
    representing an aggregate 15,340,002 shares (the "OTS Shares") of OTS
    common stock.

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    (b)  The OTS Shares to be issued to Shareholders hereunder shall be
    authorized, but previously unissued, shares of OTS common stock, and shall
    be issued to Shareholders or their designees in the respective amounts set
    forth adjacent to each Shareholder's name on the signature page hereof, or
    as otherwise set forth herein.

    (c)  The OTS Shares will not be registered with the Securities and
    Exchange Commission, but issued pursuant to the private placement
    exemption under Section 4(2) of the Securities Act of 1933, as amended.

         All OTS Shares to be issued hereunder are deemed "restricted
    securities" as defined by Rule 144 of the Securities Act of 1933, as
    amended (the "1933 Act"), and Shareholders, or their designees, shall
    represent that they are acquiring the OTS Shares for investment
    purposes only and without the intent to make a further distribution of the
    OTS Shares.  All OTS Shares to be issued to Shareholders or their
    designees under the terms of this Agreement shall be issued pursuant to an
    exemption from the registration requirements of the 1933 Act, under
    Section 4(2) of the 1933 Act and the rules and regulations promulgated
    thereunder.  Certificates representing the OTS Shares to be issued
    hereunder shall bear the following legend:

         The shares represented by this certificate have not been registered
         under the Securities Act of 1933, as amended, and may not be offered
         for sale, sold or otherwise transferred except in compliance with the
         registration provisions of such Act or pursuant to an exemption from
         such registration provisions, the availability of which is to be
         established to the satisfaction of the Company.

SECTION 1.3  Closing.  The closing of this Agreement and the transactions
contemplated hereby (the "Closing") shall take place on the 5th day of April,
2000 (the "Closing Date"), or at such other time as mutually agreed upon by
the parties hereto, at a time and place stipulated by the parties hereto and
shall be subject to the provisions of Article X of this Agreement.  At the
Closing:

    (a)  Shareholders shall deliver to OTS all stock certificates representing
    100% of the issued and outstanding shares of Thin Film capital stock, duly
    endorsed, so as to make OTS the sole holder thereof, free and clear of all
    claims and encumbrances;

    (b)  OTS shall deliver to Shareholders or their designees, stock
    certificates representing an aggregate of 15,340,002 shares of OTS common
    stock and which certificates shall bear a standard restrictive legend in
    the form customarily used with restricted securities and as set
    forth in Section 1.2(c) above;

    (c)  OTS shall deliver an Officer's Certificate as described in Sections
    9.1 and 9.2 hereof, dated the Closing Date, that all representations,
    warranties, covenants and conditions set forth herein by OTS are true and
    correct as of, or have been fully performed and complied with by, the
    Closing Date; and

    (d)  Thin Film shall deliver an Officer's Certificate as described in
    Sections 8.1 and 8.2 hereof, dated the Closing Date, that all

<PAGE>

    representations, warranties, covenants and conditions set forth herein by
    Thin Film are true and correct as of, or have been fully performed and
    complied with by, the Closing Date.

<PAGE>

SECTION 1.4  OTS Special Meeting of Shareholders.  Pursuant to this Agreement
and subsequent to the Closing date, OTS shall take all necessary and requisite
action to call for a Special Meeting of Shareholders, in order to transact the
following business:

    (a)  To ratify this Agreement and all transactions contemplated hereby;

    (b)  To ratify the amendment or to amend the Articles of Incorporation to
    change the corporate name to Thin Film Battery, Inc., or any other name
    deemed suitable by the shareholders attending the meeting;

    (c)  To effect or ratify the effectiveness of a 3 for 1 forward stock
    split;

    (d)  To accept the resignation of the current directors of the Company and
    to nominate and elect a new Board of Directors; and

    (e)  To effect or ratify a 3 for 1 forward split or 2 for 1 dividend of
    OTS' outstanding stock.

SECTION 1.5  Consummation of Transaction.  If at the Closing, no condition
exists which would permit any of the parties to terminate this Agreement, or a
condition then exists and the party entitled to terminate because of that
condition elects not to do so, then the transactions herein contemplated
shall be consummated upon such date, and then and thereupon, OTS shall file
any additional necessary documents that may be required by the State of
Colorado.

                                  ARTICLE II

                        REPRESENTATIONS AND WARRANTIES

    OTS hereby represents, warrants and agrees that:

SECTION 2.1  Organization of OTS.  OTS is a corporation duly organized,
validly existing and ingood standing under the laws of the State of Colorado,
is duly qualified and in good standing as a foreign corporation in every
jurisdiction in which such qualification is necessary, and has the
corporate power and authority to own its properties and assets and to transact
the business in which it is engaged.  There are no corporations or entities
with respect to which (i) OTS owns any of the outstanding stock or other
interest, or (ii) OTS may be deemed to be in control because of factors
or relationships other than the quantity of stock or other interest owned.
OTS has all requisite corporate power and authority to execute and deliver
this Agreement and to consummate the transactions contemplated hereby.  This
Agreement is the legal, valid and binding obligation of OTS, enforceable
against OTS in accordance with its respective terms except to the extent that

<PAGE>

such enforcement may be limited by applicable bankruptcy, insolvency and other
similar laws affecting creditors' rights generally.

SECTION 2.2  Capitalization of OTS.  The authorized capital stock of OTS
consists of 100,000,000 shares of common stock, par value .001 per share, of
which 1,925,697 shares are presently issued and outstanding, subject to a 3 to
1 forward split or 2 for 1 stock dividend.  All shares of OTS common stock
currently issued and outstanding have been duly authorized and validly issued
and are fully paid and non-assessable, and have been issued in compliance with
applicable federal and state laws or pursuant to appropriate exemptions
therefrom.  There are no options, warrants, rights, call, commitments or
agreements of any character obligating OTS to issue any shares of its capital
stock or any security representing the right to purchase or otherwise receive
any such stock.  Shares of OTS common stock to be issued pursuant to this
Agreement, when so issued, will be duly authorized, validly issued, fully paid
and non-assessable.

    2.2(1)  OTS has certain outstanding indebtedness which the creditors have
agreed to take OTS stock in lieu of cash.  The documents relating to these are
available for inspection at its company's office.  OTS agrees, after
reorganization, to perform these agreements and issue shares (approximately
159,000 post split) to cancel this indebtedness.

SECTION 2.3 Charter Documents.  Copies of the OTS Articles of Incorporation
and Bylaws as amende to date, are available for inspection at the company's
office.

SECTION 2.4 Corporate Documents.  The OTS shareholders list and corporate
minute books are complete and accurate as of the date hereof and the corporate
minute books contains the recorded minutes of all corporate meetings of
shareholders and directors.  A copy of the OTS shareholders list is available
for inspection at the company's transfer agent.

SECTION 2.5 Financial Statements.  OTS' financial statements are available at
the Company's office and have been prepared by certified public accountants,
and are true and complete in all material respects, having been prepared in
accordance with generally accepted accounting principles applied on a
consistent basis for the periods covered by such statements, and fairly
present, in accordance with generally accepted accounting principles applied
on a consistent basis for the periods covered by such statements, and fairly
present, in accordance with generally accepted accounting principles, the
financial condition of OTS and results of its operations for the periods
covered thereby.  Except as otherwise disclosed to Thin Film, there has been
no material adverse change in the business operations, assets, properties,
prospects or condition (financial or otherwise) of OTS taken as a whole from
that reflected in the financial statements referred to in this Section 2.5.

SECTION 2.6 Assets and Liabilities.  OTS has good and marketable title to all
of its assets and property, free and clear of any and all liens, claims and
encumbrances.  As of the date hereof, OTS does not have any debts, liabilities
or obligations of any nature, whether due or to become due, that are not fully
reflected in the financial statements.  As set forth in paragraph 2.2(i), OTS
has indebtedness which the creditors have agreed to receive stock in lieu of
cash payment.  The documents reflecting those transactions are available for
inspection at the Company's office.

SECTION 2.7 Contracts.  OTS is not a party to or bound by any contract or
commitment, including guaranty whether written or oral, which is not disclosed
in the financial statement or except as set forth in paragraphs 2.2(i) and 2.6
above.

<PAGE>

SECTION 2.9 Required Authorizations.  There have been or will be timely filed,
given, obtained or taken, all applications, notices, consents, approvals,
orders, registrations, qualifications, waivers or other actions of any kind
required by virtue of execution and delivery of this Agreement by OTS or the
consummation by it of the transactions contemplated hereby.

SECTION 2.10 Compliance with Law and Government Regulations.  OTS is in
compliance with and is not in violation of, applicable federal, state, local
or foreign statutes, laws and regulations (including, without limitation, any
applicable building, zoning or other law, ordinance or regulation) affecting
its properties or the operation of its business.  OTS is not subject to any
order, decree, judgment or other sanction or any court, administrative agency,
or other tribunal.

SECTION 2.11 Litigation.  There is no litigation, arbitration, proceeding or
investigation pending or threatened to which OTS is a party or which may
result in any material change in the business or condition, financial or
otherwise, of OTS or in any of its properties or assets, or which might result
in any liability on the part of OTS, or which questions the validity of this
Agreement or of any action taken or to be taken pursuant to or in connection
with the provisions of this Agreement, and to the best knowledge of OTS, there
is no basis for any such litigation, arbitration or proceeding.  OTS does not
use any trademark, service mark, trade name, or copyright in its business, nor
does it own any trademarks, trade mark registrations of application, trade
name, service mark or application.  No person owns any trade mark, trade mark
registration or application, service mark, trade name, copyright, or copyright
registration or application, the use of which is necessary or contemplated in
connection with the operation of OTS' business.

SECTION 2.13 Governmental Consent.  No consent, approval, authorization or
order of, or registration, qualification, designation, declaration or filing
with, any governmental authority on the part of OTS is required in connection
with the execution and delivery of this Agreement or the carrying out of any
transactions contemplated hereby with the exception of the necessary corporate
filings with the State of Colorado relating to the amendment of the Articles
of Incorporation, the proposed exchange of shares, and a forward split of
shares

SECTION 2.14 Authority.  OTS will, prior to the Closing, approve this
Agreement and the transactions contemplated hereby and will duly authorize the
execution and delivery hereof.  OTS has full power, authority and legal right
to enter into this Agreement and to consummate the transactions contemplated
hereby, and all corporate action necessary to authorize the execution and
delivery of this Agreement and the consummation of the transactions
contemplated hereby has been duly and validly taken.  The execution and
delivery of this Agreement, the consummation of the transaction contemplated
hereby and compliance by OTS with the provisions hereof will not (a)
conflict with or result in a breach of any provisions of, or constitute a
default (or an event which, with notice of lapse of time or both, would
constitute a default) under, or result in the creation of any lien, security
interest, charge or encumbrance upon any of the properties or assets of OTS
under, any of the terms, conditions or provisions of the Bylaws of OTS, or any
note, bond, mortgage, indenture, license, lease, agreement or any instrument
or obligation to which OTS is party or by which it is bound; or (b) violate
any order, written, rule or regulation applicable to OTS or any of its
properties or assets.

<PAGE>

SECTION 2.15 Full Disclosure.  None of the representations and warranties made
by OTS herein or in any exhibit, certificate or memorandum furnished or to be
furnished by OTS on its behalf pursuant hereto, contain or will contain any
untrue statement of material fact, or omit any material fact, the omission of
which would be misleading.

                                  ARTICLE III

                               COVENANTS OF OTS

SECTION 3.1 Conduct Prior to the Closing.  Between the date hereof and the
Closing:

    (a)  OTS will not enter into any agreement, contract, or commitment,
    whether written or oral, or engage in any transaction, without the consent
    of Thin Film;

    (b)  OTS will not declare any dividends or distributions with respect to
    its capital stock or amend its Articles of Incorporation or Bylaws,
    without the prior consent of Thin Film;

    (c)  OTS will not authorize, issue, sell, purchase or redeem any shares of
    its capital stock without the prior written consent of Thin Film;

    (d)  OTS will comply with all requirements which federal or state law may
    impose on it with respect to this Agreement and the transactions
    contemplated hereby, and will promptly cooperate with and furnish written
    information to Thin Film in connection with any such requirements imposed
    upon the parties hereto in connection therewith;

    (e)  OTS will not incur any indebtedness for money borrowed, or issue or
    sell any debt securities, incur or suffer to be incurred any liability or
    obligation of any nature whatsoever, or cause or permit any lien,
    encumbrance or security interest to be created or arise on or in any of
    its properties or assets, acquire or dispose of fixed assets, change
    employment terms, enter into any material or long-term contract, guarantee
    obligations of any third party, settle or discharge any balance sheet
    receivable for less than its stated amount or enter into any other
    transaction other than the regular course of business, except to comply
    with the terms of this Agreement, without the prior written consent of
    Thin Film;

    (f)  OTS shall grant to Thin Film and its counsel, accountants and other
    representatives full access during normal business hours during the period
    prior to the Closing to all its respective properties, books, contracts,
    commitments and record and, during such periods, furnish promptly to Thin
    Film and such representatives all information relating to OTS as Thin Film
    may reasonably request, and shall extend to Thin Film the opportunity to
    meet with OTS's accountants and attorneys to discuss the financial
    condition of OTS; and

<PAGE>

    (g)  Except for the transactions contemplated by this Agreement, OTS will
    conduct its business in the normal course, and shall not sell, pledge or
    assign its assets without the prior written consent of Thin Film.

SECTION 3.2 Affirmative Covenants.  Prior to Closing, OTS will do the
following:

    (a)  Use its best efforts to accomplish all actions necessary to
    consummate this Agreement, including satisfaction of all the conditions
    contained in this Agreement;

    (b)  Promptly notify Thin Film in writing of any material adverse change
    in the financial condition, business, operations or key personnel of OTS,
    any threatened material litigation or investigation, any breach of its
    representations or warranties contained herein, and any material contract,
    agreement, license or other agreement which, if in effect on the date of
    this Agreement, should have been included in this Agreement or in an
    exhibit annexed hereto and made a part hereof;

    (c)  Reserve, and promptly after the Closing, issue and deliver to Thin
    Film or its designees the number of shares of OTS common stock required
    hereunder;

    (d)  Take the necessary corporate action to amend its Articles of
   Incorporation to change its name to Thin Film Battery Inc. or any other
   name deemed suitable and approved or ratified by the shareholders.

    (e)  Take all other necessary corporate actions to accomplish those items
    set forth in Section 1.4 hereof.

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES
                        OF THIN FILM AND SHAREHOLDERS

    Thin Film Shareholders hereby represent, warrant and agree that:

SECTION 4.1 Organization of Thin Film.  Thin Film is a corporation duly
organized, validly existing and in good standing under the laws of the State
of Nevada and is duly qualified and in good standing in every jurisdiction in
which such qualification is necessary.  There are no corporations or other
entities with respect to which (i) Thin Film owns any of the outstanding stock
or other interest, or (ii) to which Thin Film may be deemed to be in control
because of factors or relationships other than the percentage of outstanding
stock or other interest owned in such entity, except as otherwise set forth in
Thin Film's financial statements.  Thin Film has all requisite corporate power
and authority to enter into this Agreement and to consummate the transactions
contemplated hereby.

SECTION 4.2 Charter Documents.  Complete and correct copies of the Articles or
Incorporation and Bylaws of Thin Film and all amendments thereto, have been or
will be delivered to OTS prior to the Closing.

SECTION 4.3 Financial Statements/Assets and Liabilities.  Thin Film's

<PAGE>

financial statements are true and complete in all material respects, having
been prepared in accordance with generally accepted accounting principles
applied on a consistent basis for the periods covered by such statements, and
fairly present the financial condition of Thin Film and results of its
operations for the periods covered thereby.  Thin Film has good and marketable
title to all of its assets and property to be delivered to OTS hereunder (by
way of tendering all of its outstanding shares of common stock to OTS), free
and clear of any and all liens, claims and encumbrances.

SECTION 4.4 Tax Returns and Payments.  All of Thin Film's tax returns
(federal, state, city, county or foreign) which are required by law to be
filed on or before the date of this Agreement, have been duly filed or
extended with the appropriate governmental authority.  Thin Film has paid all
taxes to be due on said returns, any assessments made against Thin Film and
all other taxes, fees and similar charges imposed on Thin Film by any
governmental authority (other than those, the amount of validity of which is
being contested in good faith by appropriate proceedings).  No tax liens have
been filed and no claims are being assessed with respect to any such taxes,
fees or other similar charges.

SECTION 4.5 Required Authorizations.  There have been or will be timely filed,
given, obtained or taken, all applications, notices, consents, approvals,
orders, registrations, qualifications, waivers or other actions of any kind
required by virtue of execution and delivery of this Agreement by Thin
Film or the consummation by it of the transactions contemplated hereby.

SECTION 4.6 Compliance with Law and Governmental Regulations.  Thin Film is in
compliance with all applicable statutes, regulations, decrees, orders,
restrictions, guidelines and standards affecting its properties and operations
imposed by the United States of America or any sate to which Thin Film is
subject.

SECTION 4.7 Litigation.  There is no litigation, arbitration, proceeding or
investigation pending or threatened to which Thin Film is a party or which may
result in any material change in the business or condition, financial or
otherwise, of Thin Film or in any of its properties or assets, or which might
result in any liability on the part of Thin Film, or which questions the
validity of this Agreement or  of any action taken or to be taken pursuant to
or in connection with the provisions of this Agreement, and to the best
knowledge of Thin Film, there is no basis for any such litigation,
arbitration, proceeding or investigation.

SECTION 4.8 Trade Names and Rights.  Thin Film has no knowledge of any facts
and nothing has come to its attention that would lead it to believe that it
has infringed or misappropriated or is infringing upon any trademark,
copyright, patent or other similar right of any person.  No claim relating
thereto is pending or to the knowledge of Thin Film is threatened.

SECTION 4.9 Governmental Consent.  No consent, approval, authorization or
order of, or registration, qualification, designation, declaration or filing
with, any governmental authority on the part of Thin Film is required in
connection with the execution and delivery of this Agreement or the carrying
out of any transactions contemplated hereby.

<PAGE>

SECTION 4.10 Authority.  Thin Film and its Shareholders representing no less
than one hundred percent (100%) of the issued and outstanding shares of Thin
Film capital stock of record, have approved this Agreement and duly authorized
the execution and delivery hereof.  Thin Film has full power, authority and
legal right to enter into this Agreement and to consummate the transactions
contemplated hereby, and all corporate action necessary to authorize the
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby has been duly and validly taken.  The
execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby and compliance by thin Film with the provisions hereof
will not (a) conflict with or result in a breach of any provisions of, or
constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or result in the creation of any lien,
security interest, charge or encumbrance upon any of the properties or assets
of Thin Film under, any of the terms, conditions or provisions of the Articles
of Incorporation or Bylaws of Thin Film, or any note, bond, mortgage,
indenture, license, agreement or any instrument or obligation to which Thin
Film is party or by which it is bound; or (b) violate any order, writ,
injunction, decree, statute, rule or regulation applicable to Thin Film or any
of its properties or assets.

SECTION 4.11 Ownership of Shares.  Shareholders collectively and each
Shareholder individually represents to OTS that they are the owners of 100% of
the Thin Film capital stock currently issued and outstanding and which stock
is to be transferred by Shareholders to OTS under this Agreement, an that they
have full power and authority to transfer such shares of Thin Film capital
stock to OTS hereunder, and that such shares are free and clear of any liens,
charges, mortgages, pledges or encumbrances and that such shares are not
subject to any claims as to the ownership thereof, or any rights, powers or
interest therein, by any third party.

SECTION 4.12 Investment Purpose.  Shareholders collectively and each
Shareholder individually represents that they, or their designees, are
acquiring the shares of OTS common stock to be issued hereunder for investment
purposes only.  Thin Film, Shareholders and each Shareholder individually
further represents and acknowledges that the OTS shares issued hereunder are
"restricted securities" and may not be sold, trades or otherwise transferred
without registration under the 1933 Act or exemption therefrom.

SECTION 4.13 Full Disclosure.  None of the representation and warranties made
by Thin Film herein contains or will contain any untrue statement of material
fact, or omit any material fact, the omission of which would be misleading.

                                  ARTICLE V

                            COVENANTS OF THIN FILM

SECTION 5.1 Conduct Prior to the Closing.  Between the date hereof and the
Closing:

    (a)  Expect within the regular course of business, Thin Film will not
    entered into any material agreement, contract or commitment, whether
    written or oral, or engage in any transaction, without the consent of OTS;

    (b)  Thin Film will not declare any dividends or distributions with
    respect to its capital stock or amend its Articles of Incorporation or
    Bylaws, without the prior consent of OTS;

<PAGE>

    (c)  Except within the regular course of business, Thin Film will not
    incur any indebtedness for money borrowed or issue to sell any debt
    securities, or incur or suffer to be incurred any liability or obligation
    of any nature whatsoever, or cause or permit any lien, encumbrance or
    security interest to be created or arise on or in any of its properties or
    assets, without the consent of OTS;

    (d)  Thin Film will comply with all requirements which federal or state
    law may impose on it with respect to this Agreement and the transactions
    contemplated hereby, and will promptly cooperate with and furnish
    information to OTS in connection with any such requirements imposed upon
    the parties hereto in connection therewith; and

    (e)  Thin Film shall grant OTS and its counsel, accountants and other
    representatives, full access during normal business hours during the
    period prior to the Closing to all its respective properties, books,
    contracts, commitments and records and, during such period, furnish
    promptly to OTS and such representatives all information relating to Thin
    Film as OTS may reasonably request, and shall extend to OTS the
    opportunity to meet with Thin Film's accountants and attorneys to discuss
    the financial condition of Thin Film.

SECTION 5.2 Affirmative Covenants.  Prior to Closing, Thin Film will do the
following:

    (a)  Obtain the approval of its Board of Directors and Shareholders to
    proceed with this Agreement;

    (b)  Use its best efforts to accomplish all actions necessary to
    consummate this Agreement, including satisfaction of all the conditions
    contained in this Agreement; and

    (c)  Promptly notify OTS in writing of any materially adverse change in
    the financial condition, business, operations or key personnel of Thin
    Film, any breach of its representations or warranties contained herein,
    and any material contract, agreement, license or other agreement which, if
    in effect on the date of this Agreement, should have been included in this
    Agreement.

                                  ARTICLE VI

                            ADDITIONAL AGREEMENTS

SECTION 6.1 Expenses.  Whether or not the transactions contemplated in this
Agreement are consummated, all costs and expenses incurred in connection with
this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such expense or as otherwise agreed to herein.

SECTION 6.2 Brokers and Finders.  Each of the parties hereto represents, as to
itself, that no agent, broker, investment banker or other firm or person is or
will be entitled to any broker's or finder's fee or any other commission or
similar fee in connection with any of the transactions contemplated by this
Agreement to be paid by a party hereto.

SECTION 6.3 Necessary Actions.  Subject to the terms and conditions herein

<PAGE>

provided, each of the parties hereto agree to use all reasonable efforts to
take, or cause to be taken, all action, and to do, or cause to be done, all
things necessary, proper or advisable under applicable laws and regulations
to consummate and make effective all transactions contemplated by this
Agreement.  In the event at any time after the Closing, any further action is
necessary or desirable to carry out the purposes of this Agreement, the proper
officers and/or directors of OTS or Thin Film, as the case may be, shall take
all such necessary action.

SECTION 6.4 Indemnification.

    (a)  Thin Film and Shareholders agree to defend and hold OTS harmless
    against and in respect of any and all claims, demands, losses, costs,
    expenses, obligations, liabilities, damages, recoveries and deficiencies,
    including interest, penalties and reasonable attorney fees, that OTS shall
    incur or suffer, which arise out of, result from or relate to any material
    breach of, or failure by Thin Film to perform any of its representations,
    warranties, covenants and agreements in this Agreement other instrument,
    warranties, covenants and agreements in this Agreement or other instrument
    furnished or to be furnished by Thin Film and Shareholders under this
    Agreement, or failure by Shareholders to perform any of their
    representations, warranties and covenants in this Agreement.

    (b)  OTS agrees to defend and hold Thin Film and Shareholders harmless
    against and in respect of any and all claims, demands, losses, costs,
    expenses, obligations, liabilities, damages, recoveries and deficiencies,
    including interest, penalties, and reasonable attorney fees, that Thin
    Film and Shareholders shall incur or suffer, which arise out of, result
    form or relate to any material breach of, or failure by OTS to perform any
    of its representations, warranties, covenants and agreements in this
    Agreement or other instrument furnished or to be furnished by OTS under
    this Agreement.

SECTION 6.5 Confidentiality.  All parties hereto agree to keep confidential
this Agreement and all information and documents relating to this Agreement
until such time as the Agreement and the transactions contemplated hereunder
are made public by means of an appropriate press release or by any other means
reasonably assured to make such information publicly available.

SECTION 6.6 Registration.  In the event OTS, to be known as Thin Film, makes a
registered offering of securities, it agrees to also register for sale shares
owned by the present directors (piggyback rights) if they so elect and for as
many shares as they elect.  This provision is intended to confer third party
beneficiary rights upon the present directors.  OTS, to be known as Thin Film,
shall notify the present director of any proposed registered offering and
obtain their election as to whether or not and how many of their shares are to
be registered for sale.

<PAGE>

                                 ARTICLE VII

                   CONDITIONS TO OBLIGATIONS OF THE PARTIES

    The obligations of the parties under this Agreement are subject to the
fulfillment and satisfaction of each of the following conditions:

SECTION 7.1 Legal Action.  No preliminary or permanent injunction or other
order by any federal or state court which prevents the consummation of this
Agreement or any of the transactions contemplated by this Agreement shall have
been issued and remain in effect.

SECTION 7.2 Absence of Termination.  The obligations to consummate the
transactions contemplated hereby shall not have been cancelled pursuant to
Article X hereof.

SECTION 7.3 Required Approvals.  OTS and Thin Film shall have received all
such approvals, consents, authorizations or modifications as may be required
to permit the performance by OTS and Thin Film of the respective obligations
under this Agreement, and the consummation of the transactions herein
contemplated, whether from governmental authorities or other persons, and OTS
and Thin Film shall each have received any and all permits and approvals from
any regulatory authority having jurisdiction required for the lawful
consummation of this Agreement.

SECTION 7.4 Blue Sky Compliance.  There shall have been obtained any and all
permits, approvals and consents of the Securities or "Blue-Sky" Commissions or
any jurisdictions, and of any other governmental body or agency, which counsel
for OTS may reasonably deem necessary or appropriate so that consummation of
the transactions contemplated by this Agreement may be in compliance with all
applicable laws.

                                 ARTICLE VIII

                  CONDITIONS PRECEDENT TO OBLIGATIONS OF OTS

    All obligations of OTS under this Agreement are subject to the fulfillment
and satisfaction by Thin Film and Shareholders prior to or at any time of the
Closing, of each of the following conditions, any one or more of which may be
waived by OTS.

SECTION 8.1 Representations and Warranties at the Closing.  All
representations and warranties of Thin Film and Shareholders contained in this
Agreement will be true and correct at and as of the time of the Closing, and
Thin Film and Shareholders shall have delivered to OTS certificates, dated
the date of the Closing to such effect and in the form and substance
satisfactory to OTS, and signed, in the case of Thin Film, by its present and
secretary, and by each Shareholder.

SECTION 8.2 Performance.  The obligations of Thin Film and Shareholders to be
performed on or before the Closing pursuant to the terms of this Agreement
shall have been duly performed at such time, and Thin Film and Shareholders
shall have delivered to OTS a certificate, dated the date of the Closing, to
such effect and in form and substance satisfactory to OTS.

SECTION 8.3 Authority.  All action required to be taken by, or on the part of

<PAGE>

Thin Film and Shareholders to authorize the execution, delivery and
performance of this Agreement by Thin Film and the consummation of the
transactions contemplated hereby, shall have been duly and validly taken.

SECTION 8.4 Absence of Certain Changes or Events.  There shall not have
occurred, since the date hereof, any adverse change in the business, condition
(financial or otherwise), assets or liabilities of Thin Film or any event or
condition of any character adversely affecting Thin Film, and it shall have
delivered to OTS certificates, dated the date of the Closing, to such effect
and in form and substance satisfactory to OTS and signed, in the case of Thin
Film, by its present and secretary.

SECTION 8.5 Acceptance by Thin Film Shareholders.  The holders of record as of
the Closing of an aggregate of not less than one hundred percent (100%) of the
issued and outstanding shares of capital stock of Thin Film have agreed to
exchange their shares for the OTS Shares specified herein.

                                  ARTICLE IX

                     CONDITIONS PRECEDENT TO OBLIGATIONS
                        OF THIN FILM AND SHAREHOLDERS

All obligations of Thin Film and Shareholders under this Agreement are subject
to the fulfillment and satisfaction by OTS prior to or at the time of Closing,
of each of the following conditions, any one or more of which may be waived by
Thin Film and Shareholders.

SECTION 9.1 Representations and Warranties True at the Closing.  All
representations and warranties of OTS contained in this Agreement will be true
and correct at and as of the time of the Closing, and OTS shall have delivered
to Thin Film a certificate, dated the date of the Closing, to such effect and
in the form and substance satisfactory to Thin Film, and signed, in the case
of OTS, by its president and secretary.

SECTION 9.2 Performance.  Each of the obligations of OTS to be performed on or
before the Closing pursuant to the terms of this Agreement shall have been
duly performed at the time of the Closing, and OTS shall have delivered to
Thin Film a certificate, dated the date of the Closing, to such effect and in
form and substance satisfactory to Thin Film, and signed, in the case of OTS,
by its president and secretary.

SECTION 9.3 Authority.  All action required to be taken by, or on the part of
OTS, to authorize the execution, delivery and performance of this Agreement by
OTS, and the consummation of the transactions contemplated hereby shall be
duly and validly taken.

SECTION 9.4 Absence of Certain Changes or Events.  There shall not have
occurred, since the date hereof, any adverse change n the business, condition
(financial or otherwise), assets or liabilities of OTS or any event or
condition of any character adversely affecting OTS and it shall  have

<PAGE>

delivered to Thin Film certificates, dated the date of the Closing, to such
effect and in form and substance satisfactory to Thin Film and signed, in the
case of OTS, by its president and secretary.

                                  ARTICLE X

                                 TERMINATION

SECTION 10.1 Termination.  Notwithstanding anything herein or elsewhere to the
contrary, this Agreement may be terminated:

    (a)  By mutual agreement of the parties hereto at any time prior to the
    Closing;

    (b)  By the board of directors of OTS at any time prior to the Closing if:

         (i)  a condition to performance by OS under this Agreement or a
         covenant of Thin Film or Shareholders contained herein shall not be
         fulfilled on or before the time of the Closing or at such other time
         and date specified for the fulfillment for such covenant or
         condition; or

         (ii) a material default or breach of this Agreement shall be made by
         Thin Film or Shareholders; or

         (iii) if the Closing shall not have taken place on or prior to April
         10, 2000.

    (c)  By the board or directors of Thin Film or by Shareholders at any time
    prior to the Closing if:

         (i)  a condition to Thin Film's or Shareholders' performance under
         this Agreement or a covenant of OTS contained in this Agreement shall
         not be fulfilled on or before the Closing or at such other time and
         date specified for the fulfillment of such covenant or conditions; or

         (ii) a material default or breach of this Agreement shall be made by
         OTS; or

         (iii) if the Closing shall not have taken place on or prior to April
         10, 2000.

SECTION 10.2 Effect of Termination.  If this Agreement is terminated, this
Agreement, except as to Section 11.1 and Section 11.2 shall no longer be of
any force or effect and there shall be no liability on the part of any party
or its respective directors, officers or stockholders; provided, however, that
in the case of a Termination without cause by a party or a termination
pursuant to Sections 10.1(b)(i) or 10.1(c)(i) hereof because of a prior
material default under or a material breach of this Agreement by another
party, the damages which the aggrieved party or parties may recover from the
defaulting party or parties shall in no event exceed the amount of
out-of-pocket expenses incurred by such aggravated party or parties in
connection with this Agreement, and no party to this Agreement shall be
entitled to any injunctive relief.

<PAGE>

                                  ARTICLE XI

                                MISCELLANEOUS

SECTION 11.1 Costs and Expenses.  All costs and expenses incurred in
connection with this Agreement will be paid by the party incurring such
expenses.  In the event of any termination of this Agreement pursuant to
Section 10.1, subject to the provisions of Section 10.2, OTS, Thin Film and
Shareholders will each bear their own respective expenses.

SECTION 11.2 Extension of Time: Waivers.  At any time prior to the Closing
date:

    (a)  OTS may (i) extend the time for the performance of any of the
    obligations or other acts of Thin Film and Shareholders, (ii) waive any
    inaccuracies in the representations and warranties of Thin Film or
    Shareholders contained herein or in any document delivered pursuant hereto
    by Thin Film and Shareholders, and (iii) waive compliance with any of the
    agreements or conditions contained herein to be performed by Thin Film and
    Shareholders.  Any agreement on the part of OTS to any such extension or
    waiver shall be valid only if it sets forth in an instrument, in writing,
    signed on behalf of OTS.

    (b)  Thin Film and Shareholders may (i) extend the time for the
    performance of any of the obligations or other acts of OTS, (ii) waive any
    inaccuracies in the representations and warranties of OTS contained herein
    or in any document delivered pursuant hereto by OTS, and (iii) waive
    compliance with any of the agreements or conditions herein to be performed
    by OTS.  Any agreement on the part of Thin Film and Shareholders to any
    such extension or waiver shall be valid only if set forth in an
    instrument, in writing, signed on behalf of Thin Film and Shareholders.

SECTION 11.3 Notices.  Any notice to any party hereto pursuant to this
Agreement shall be in writing and given by Certified or Registered Mail or by
facsimile, addressed as follows:

                            OTS Holdings, Inc.
                           c/o Mark Merriwether
                         3046 East Brighton Place
                        Salt Lake City, Utah 84121

                         Thin Film Battery, Inc.
                           c/o Robert Pasquaye
                           14251 Chambers Road
                         Tustin, California 92780

    Additional notices are to be given as to each party, at such other address
as should be designated in writing complying with the terms of this Section
11.3.  All such notices shall be effective when sent, addressed as aforesaid.

SECTION 11.4 Parties in Interest.  This Agreement shall inure to the benefit
of and be binding upon the parties hereto and the respective successors and
assigns.  Nothing in this Agreement is intended to confer, expressly or by
implication, upon any other person any rights or remedies under or by
reason of this Agreement.

<PAGE>

SECTION 11.5 Counterparts.  This Agreement may be executed in one or more
counter parts, each of which shall be deemed an original and together shall
constitute one document.  The delivery by facsimile of an executed counterpart
of this Agreement shall be deemed to be an original and shall have the full
force and effect of an original executed copy.

SECTION 11.6 Severability.  The parties hereto agree and affirm that none of
the provisions herein are dependent upon the validity of any other provision,
and if any part of this Agreement is deemed to be unenforceable, the remainder
of the Agreement shall remain in full force and effect.

SECTION 11.7 Headings.  The Article and Section headings are provided herein
for convenience of reference only and do not constitute a part of this
Agreement.

SECTION 11.  8 Governing Law.  This Agreement shall be governed by the laws of
the State of Utah.  Any action to enforce the provisions of this Agreement
shall be brought in a court of competent jurisdiction in the State of Utah and
in no other place.

SECTION 11.9 Survival of Representations and Warranties.  All terms,
conditions, representations and warranties set forth in this Agreement or in
any instrument, certificate, opinion, or other writing providing for in it,
shall survive the Closing and the delivery of the OTS Shares issued hereunder
at the Closing, for a period of one year from the Closing regardless of any
parties hereto.

SECTION 11.10 Assignability.  This Agreement shall not be assignable by any of
the parties hereto without the prior written consent of the other parties.

    IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement in a manner legally binding upon them as of the date first above
written.

OTS HOLDINGS, INC.                   Attest:

 /s/ Mark L. Meriwether                /s/ Jim Georgeles
-------------------------------      ----------------------------
By:  Mark L. Meriwether              Jim Georgeles
Its:  President                      Secretary

THIN FILM BATTERY, INC.              Attest:

 /s/ John B. Bates                /s/ Robert G. Pasquaye
-------------------------------      ----------------------------
By:  John B. Bates                   Robert G. Pasquaye
Its:  President                      Secretary

"Shareholders"                       Number of Shares of OTS Holdings, Inc.
                                     Common Stock to be Issued

<PAGE>

Price Equity, Ltd.                                               5,000,000
Omni International Ltd.                                          7,000,000
Smart Concept Technology                                         3,000,000
John B. Bates                                                      333,334
Robert G. Pasquaye                                                   3,334
Won G. Choi                                                          3,334

<PAGE>

                             CLOSING CERTIFICATE

                                      OF

                              OTS HOLDING, INC.

    The undersigned hereby certify that they are the President and Secretary,
respectively, of OTS Holding, Inc., a Colorado corporation ("OTS"), and
further certify as follows:

    1.   That the representations and warranties of OTS contained in the
Acquisition Agreement and Plan or Reorganization (the "Agreement"), by and
between OTS and Thin Film Battery Inc., a Nevada corporation, and the
shareholders of Thin Film are true and correct at and as of the date hereof.

    2.   The obligations and covenants of OTS to be performed and observed on
or before the Closing as defined in the Agreement, have been duly performed
and observed.

    3.   Except as otherwise disclosed in the Agreement, there has not
occurred since the date thereof, any adverse change in the business condition
(financial or otherwise), assets or liabilities of OTS or any event or
condition of any character adversely affecting OTS.

    IN WITNESS WHEREOF, the undersigned have hereunto set their hands as of
this 7th day of April, 2000.

                                OTS HOLDINGS, INC.

                                By: /s/ Mark L. Meriwether, President

                                By: /s/ Jim Georgeles, Secretary/Treasurer

<PAGE>

                             CLOSING CERTIFICATE

                               OF SHAREHOLDERS

                                     OF

                            THIN FILM BATTERY INC.

    Robert G. Pasquaye, being the only Shareholder of Thin Film Battery Inc.,
a Nevada corporation ("Thin Film"), represents that he has performed all of
the obligations to be performed by him on or before the Closing under the
Acquisition Agreement and Plan of Reorganization by and among OTS Holding,
Inc., a Colorado corporation, Thin Film and Shareholders.

    IN WITNESS WHEREOF, the undersigned have hereunto set their hands as of
this the 7th day of April, 2000.

                                /s/ Robert G. Pasquaye, Shareholder<PAGE>

                                                                   EXHIBIT 10.04

                             ALLADVANTAGE.COM INC.

                           2000 EQUITY INCENTIVE PLAN

                        As Adopted February 23, 2000

     1.   PURPOSE.  The purpose of this Plan is to provide incentives to
          -------
attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company's
future performance through awards of Options, Restricted Stock and Stock
Bonuses. Capitalized terms not defined in the text are defined in Section 23.

     2.   SHARES SUBJECT TO THE PLAN.
          --------------------------

          2.1  Number of Shares Available.  Subject to Sections 2.2 and 18, the
               --------------------------
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be 20,000,000 Shares plus Shares that are subject to: (a)
issuance upon exercise of an Option but cease to be subject to such Option for
any reason other than exercise of such Option; (b) an Award granted hereunder
but are forfeited or are repurchased by the Company at the original issue price;
and (c) an Award that otherwise terminates without Shares being issued.  In
addition, any authorized shares not issued or subject to outstanding grants
under the Company's 1999 Equity Incentive Plan and 2000 Equity Incentive Plan
(the "Prior Plans") on the Effective Date (as defined below) and any shares
issued under the Prior Plans that are forfeited or repurchased by the Company or
that are issuable upon exercise of options granted pursuant to the Prior Plans
that expire or become unexercisable for any reason without having been exercised
in full, will no longer be available for grant and issuance under the Prior
Plans, but will be available for grant and issuance under this Plan.  In
addition, on each January 1, the aggregate number of Shares reserved and
available for grant and issuance pursuant to this Plan will be increased
automatically by a number of Shares equal to 5% of the total outstanding shares
of the Company as of the immediately preceding December 31, provided that no
more than 100,000,000 shares shall be issued as ISOs (as defined in Section 5
below).  At all times the Company shall reserve and keep available a sufficient
number of Shares as shall be required to satisfy the requirements of all
outstanding Options granted under this Plan and all other outstanding but
unvested Awards granted under this Plan.

          2.2  Adjustment of Shares.  In the event that the number of
               --------------------
outstanding shares is changed by a stock dividend, recapitalization, stock
split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then (a) the number of Shares reserved for issuance under this Plan, (b) the
number of Shares that may be granted pursuant to Sections 3 and 9 below, (c) the
Exercise Prices of and number of Shares subject to outstanding Options, and (d)
the number of Shares subject to other outstanding Awards will be proportionately
adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that
                                                        --------  -------
fractions of a Share will not be issued but will either be replaced by a cash
payment equal to the Fair Market Value of such fraction of a Share or will be
rounded up to the nearest whole Share, as determined by the Committee.

     3.   ELIGIBILITY.  ISOs (as defined in Section 5 below) may be granted only
          -----------
to employees (including officers and directors who are also employees) of the
Company or of a Parent or Subsidiary of the Company.  All other Awards may be
granted to employees, officers, directors, consultants, independent contractors
and advisors of the Company or any Parent or Subsidiary of the Company; provided
                                                                        --------
such consultants, contractors and advisors render bona fide services not in
connection with the offer and sale of securities in a capital-raising
transaction.  No person will be eligible to receive more than 3,000,000 Shares
in any calendar year under this Plan pursuant to the grant of Awards hereunder,
other than new employees of the Company or of a Parent or Subsidiary of the
Company (including new employees who are also officers and directors of the
Company or any Parent or Subsidiary of the Company), who are eligible to receive
up to a maximum of 3,500,000 Shares in the calendar year in which they commence
their employment.  A person may be granted more than one Award under this Plan.

     4.   ADMINISTRATION.
          --------------
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

          4.1  Committee Authority.  This Plan will be administered by the
               -------------------
Committee or by the Board acting as the Committee.  Except for automatic grants
to Outside Directors pursuant to Section 9 hereof, and subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have full power to implement and carry out this Plan.  Except
for automatic grants to Outside Directors pursuant to Section 9 hereof, the
Committee will have the authority to:

          (a)  construe and interpret this Plan, any Award Agreement and any
               other agreement or document executed pursuant to this Plan;

          (b)  prescribe, amend and rescind rules and regulations relating to
               this Plan or any Award;

          (c)  select persons to receive Awards;

          (d)  determine the form and terms of Awards;

          (e)  determine the number of Shares or other consideration subject to
               Awards;

          (f)  determine whether Awards will be granted singly, in combination
               with, in tandem with, in replacement of, or as alternatives to,
               other Awards under this Plan or any other incentive or
               compensation plan of the Company or any Parent or Subsidiary of
               the Company;

          (g)  grant waivers of Plan or Award conditions;

          (h)  determine the vesting, exercisability and payment of Awards;

          (i)  correct any defect, supply any omission or reconcile any
               inconsistency in this Plan, any Award or any Award Agreement;

          (j)  determine whether an Award has been earned; and

          (k)  make all other determinations necessary or advisable for the
               administration of this Plan.

          4.2  Committee Discretion.  Except for automatic grants to Outside
               --------------------
Directors pursuant to Section 9 hereof, any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan.
The Committee may delegate to one or more officers of the Company the authority
to grant an Award under this Plan to Participants who are not Insiders of the
Company.

     5.   OPTIONS.  The Committee may grant Options to eligible persons and will
          -------
determine whether such Options will be Incentive Stock Options within the
meaning of the Code ("ISO") or Nonqualified Stock Options ("NQSOs"), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following:

          5.1  Form of Option Grant.  Each Option granted under this Plan will
               --------------------
be evidenced by an Award Agreement which will expressly identify the Option as
an ISO or an NQSO ("Stock Option Agreement"), and, except as otherwise required
by the terms of Section 9 hereof, will be in such form and contain such
provisions (which need not be the same for each Participant) as the Committee
may from time to time approve, and which will comply with and be subject to the
terms and conditions of this Plan.

          5.2  Date of Grant.  The date of grant of an Option will be the date
               -------------
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee.  The Stock Option

                                       2
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

Agreement and a copy of this Plan will be delivered to the Participant within a
reasonable time after the granting of the Option.

          5.3  Exercise Period.  Options may be exercisable within the times or
               ---------------
upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
                                 --------  -------
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or by
             ----------------
attribution owns more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any Parent or Subsidiary of the
Company ("Ten Percent Stockholder") will be exercisable after the expiration of
five (5) years from the date the ISO is granted.  The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically
or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

          5.4  Exercise Price.  The Exercise Price of an Option will be
               --------------
determined by the Committee when the Option is granted and may be not less than
85% of the Fair Market Value of the Shares on the date of grant; provided that:
(i) the Exercise Price of an ISO will be not less than 100% of the Fair Market
Value of the Shares on the date of grant; and (ii) the Exercise Price of any ISO
granted to a Ten Percent Stockholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant.  Payment for the Shares
purchased may be made in accordance with Section 8 of this Plan.

          5.5  Method of Exercise.  Options may be exercised only by delivery to
               ------------------
the Company of a written stock option exercise agreement  (the "Exercise
Agreement") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.

          5.6  Termination.  Notwithstanding the exercise periods set forth in
               -----------
the Stock Option Agreement, exercise of an Option will always be subject to the
following:

          (a)  If the Participant is Terminated for any reason except death or
               Disability, then the Participant may exercise such Participant's
               Options only to the extent that such Options would have been
               exercisable upon the Termination Date no later than three (3)
               months after the Termination Date (or such shorter or longer time
               period not exceeding five (5) years as may be determined by the
               Committee, with any exercise beyond three (3) months after the
               Termination Date deemed to be an NQSO), but in any event, no
               later than the expiration date of the Options.

          (b)  If the Participant is Terminated because of Participant's death
               or Disability (or the Participant dies within three (3) months
               after a Termination other than for Cause or because of
               Participant's Disability), then Participant's Options may be
               exercised only to the extent that such Options would have been
               exercisable by Participant on the Termination Date and must be
               exercised by Participant (or Participant's legal representative
               or authorized assignee) no later than twelve (12) months after
               the Termination Date (or such shorter or longer time period not
               exceeding five (5) years as may be determined by the Committee,
               with any such exercise beyond (a) three (3) months after the
               Termination Date when the Termination is for any reason other
               than the Participant's death or Disability, or (b) twelve (12)
               months after the Termination Date when the Termination is for
               Participant's death or Disability, deemed to be an NQSO), but in
               any event no later than the expiration date of the Options.

                                       3
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

          (c)  Notwithstanding the provisions in paragraph 5.6(a) above, if a
               Participant is terminated for Cause, neither the Participant, the
               Participant's estate nor such other person who may then hold the
               Option shall be entitled to exercise any Option with respect to
               any Shares whatsoever, after termination of service, whether or
               not after termination of service the Participant may receive
               payment from the Company or Subsidiary for vacation pay, for
               services rendered prior to termination, for services rendered for
               the day on which termination occurs, for salary in lieu of
               notice, or for any other benefits.  In making such determination,
               the Board shall give the Participant an opportunity to present to
               the Board evidence on his behalf.  For the purpose of this
               paragraph, termination of service shall be deemed to occur on the
               date when the Company dispatches notice or advice to the
               Participant that his service is terminated.

          5.7  Limitations on Exercise.  The Committee may specify a reasonable
               -----------------------
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent Participant from exercising
the Option for the full number of Shares for which it is then exercisable.

          5.8  Limitations on ISO.  The aggregate Fair Market Value (determined
               ------------------
as of the date of grant) of Shares with respect to which ISO are exercisable for
the first time by a Participant during any calendar year (under this Plan or
under any other incentive stock option plan of the Company, Parent or Subsidiary
of the Company) will not exceed $100,000.  If the Fair Market Value of Shares on
the date of grant with respect to which ISO are exercisable for the first time
by a Participant during any calendar year exceeds $100,000, then the Options for
the first $100,000 worth of Shares to become exercisable in such calendar year
will be ISO and the Options for the amount in excess of $100,000 that become
exercisable in that calendar year will be NQSOs.  In the event that the Code or
the regulations promulgated thereunder are amended after the Effective Date of
this Plan to provide for a different limit on the Fair Market Value of Shares
permitted to be subject to ISO, such different limit will be automatically
incorporated herein and will apply to any Options granted after the effective
date of such amendment.

          5.9  Modification, Extension or Renewal.  The Committee may modify,
               ----------------------------------
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted.  Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code.  The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
--------  -------
Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

          5.10 No Disqualification.  Notwithstanding any other provision in this
               -------------------
Plan, no term of this Plan relating to ISO will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

     6.   RESTRICTED STOCK.  A Restricted Stock Award is an offer by the Company
          ----------------
to sell to an eligible person Shares that are subject to restrictions.  The
Committee will determine to whom an offer will be made, the number of Shares the
person may purchase, the price to be paid (the "Purchase Price"), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

          6.1  Form of Restricted Stock Award.  All purchases under a Restricted
               ------------------------------
Stock Award made pursuant to this Plan will be evidenced by an Award Agreement
("Restricted Stock Purchase Agreement") that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this
Plan.  The offer of Restricted Stock will be accepted by the Participant's
execution and delivery of the Restricted Stock Purchase Agreement and full
payment for the Shares to the Company within thirty (30) days from the date the
Restricted Stock Purchase Agreement is

                                       4
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

delivered to the person. If such person does not execute and deliver the
Restricted Stock Purchase Agreement along with full payment for the Shares to
the Company within thirty (30) days, then the offer will terminate, unless
otherwise determined by the Committee.

          6.2  Purchase Price.  The Purchase Price of Shares sold pursuant to a
               --------------
Restricted Stock Award will be determined by the Committee on the date the
Restricted Stock Award is granted, except in the case of a sale to a Ten Percent
Stockholder, in which case the Purchase Price will be 100% of the Fair Market
Value.  Payment of the Purchase Price may be made in accordance with Section 8
of this Plan.

          6.3  Terms of Restricted Stock Awards.  Restricted Stock Awards shall
               --------------------------------
be subject to such restrictions as the Committee may impose.  These restrictions
may be based upon completion of a specified number of years of service with the
Company or upon completion of the performance goals as set out in advance in the
Participant's individual Restricted Stock Purchase Agreement.  Restricted Stock
Awards may vary from Participant to Participant and between groups of
Participants.  Prior to the grant of a Restricted Stock Award, the Committee
shall:  (a) determine the nature, length and starting date of any Performance
Period for the Restricted Stock Award; (b) select from among the Performance
Factors to be used to measure performance goals, if any; and (c) determine the
number of Shares that may be awarded to the Participant.  Prior to the payment
of any Restricted Stock Award, the Committee shall determine the extent to which
such Restricted Stock Award has been earned.  Performance Periods may overlap
and Participants may participate simultaneously with respect to Restricted Stock
Awards that are subject to different Performance Periods and having different
performance goals and other criteria.

          6.4  Termination During Performance Period.  If a Participant is
               -------------------------------------
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Restricted Stock Award only to the extent earned as of the date of
Termination in accordance with the Restricted Stock Purchase Agreement, unless
the Committee will determine otherwise.

     7.   STOCK BONUSES.
          -------------

          7.1  Awards of Stock Bonuses.  A Stock Bonus is an award of Shares
               -----------------------
(which may consist of Restricted Stock) for services rendered to the Company or
any Parent or Subsidiary of the Company.  A Stock Bonus may be awarded for past
services already rendered to the Company, or any Parent or Subsidiary of the
Company pursuant to an Award Agreement (the "Stock Bonus Agreement") that will
be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and be subject to
the terms and conditions of this Plan.  A Stock Bonus may be awarded upon
satisfaction of such performance goals as are set out in advance in the
Participant's individual Award Agreement (the "Performance Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan.  Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual performance factors or upon such other criteria as the Committee may
determine.

          7.2  Terms of Stock Bonuses.  The Committee will determine the number
               ----------------------
of Shares to be awarded to the Participant.  If the Stock Bonus is being earned
upon the satisfaction of performance goals pursuant to a Performance Stock Bonus
Agreement, then the Committee will: (a)  determine the nature, length and
starting date of any Performance Period for each Stock Bonus; (b) select from
among the Performance Factors to be used to measure the performance, if any; and
(c) determine the number of Shares that may be awarded to the Participant.
Prior to the payment of any Stock Bonus, the Committee shall determine the
extent to which such Stock Bonuses have been earned.  Performance Periods may
overlap and Participants may participate simultaneously with respect to Stock
Bonuses that are subject to different Performance Periods and different
performance goals and other criteria.  The number of Shares may be fixed or may
vary in accordance with such performance goals and criteria as may be determined
by the Committee.  The Committee may adjust the performance goals applicable to
the Stock Bonuses to take into account changes in law and accounting or tax
rules and to make such adjustments as the

                                       5
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

Committee deems necessary or appropriate to reflect the impact of extraordinary
or unusual items, events or circumstances to avoid windfalls or hardships.

          7.3  Form of Payment.  The earned portion of a Stock Bonus may be paid
               ---------------
currently or on a deferred basis with such interest or dividend equivalent, if
any, as the Committee may determine.  Payment may be made in the form of cash or
whole Shares or a combination thereof, either in a lump sum payment or in
installments, all as the Committee will determine.

     8.   PAYMENT FOR SHARE PURCHASES.
          ---------------------------

          8.1  Payment.  Payment for Shares purchased pursuant to this Plan may
               -------
be made in cash (by check) or, where expressly approved for the Participant by
the Committee and where permitted by law:

          (a)  by cancellation of indebtedness of the Company to the
               Participant;

          (b)  by surrender of shares that either:  (1) have been owned by
               Participant for more than six (6) months and have been paid for
               within the meaning of SEC Rule 144 (and, if such shares were
               purchased from the Company by use of a promissory note, such note
               has been fully paid with respect to such shares); or (2) were
               obtained by Participant in the public market;

          (c)  by tender of a full recourse promissory note having such terms as
               may be approved by the Committee and bearing interest at a rate
               sufficient to avoid imputation of income under Sections 483 and
               1274 of the Code; provided, however, that Participants who are
                                 --------  -------
               not employees or directors of the Company will not be entitled to
               purchase Shares with a promissory note unless the note is
               adequately secured by collateral other than the Shares;

          (d)  by waiver of compensation due or accrued to the Participant for
               services rendered;

          (e)  with respect only to purchases upon exercise of an Option, and
               provided that a public market for the Company's stock exists:

               (1)  through a "same day sale" commitment from the Participant
                    and a broker-dealer that is a member of the National
                    Association of Securities Dealers (an "NASD Dealer") whereby
                    the Participant irrevocably elects to exercise the Option
                    and to sell a portion of the Shares so purchased to pay for
                    the Exercise Price, and whereby the NASD Dealer irrevocably
                    commits upon receipt of such Shares to forward the Exercise
                    Price directly to the Company; or

               (2)  through a "margin" commitment from the Participant and a
                    NASD Dealer whereby the Participant irrevocably elects to
                    exercise the Option and to pledge the Shares so purchased to
                    the NASD Dealer in a margin account as security for a loan
                    from the NASD Dealer in the amount of the Exercise Price,
                    and whereby the NASD Dealer irrevocably commits upon receipt
                    of such Shares to forward the Exercise Price directly to the
                    Company; or

          (f)  by any combination of the foregoing.

          8.2  Loan Guarantees.  The Committee may help the Participant pay for
               ---------------
Shares purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

                                       6
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

     9.   AUTOMATIC GRANTS TO OUTSIDE DIRECTORS.
          --------------------------------------

          9.1  Types of Options and Shares.  Options granted under this Plan and
               ----------------------------
subject to this Section 9 shall be NQSOs.

          9.2  Eligibility.  Options subject to this Section 9 shall be granted
               -----------
only to Outside Directors.

          9.3  Initial Grant.  Each Outside Director who first becomes a member
               -------------
of the Board on or after the Effective Date will automatically be granted an
Option for 10,000 Shares (an "Initial Grant") on the date such Outside Director
first becomes a member of the Board, unless such Outside Director received a
grant of Options before the Effective Date.  Each Outside Director who became a
member of the Board prior to the Effective Date and who did not receive a prior
Option grant will receive an Initial Grant immediately following the Effective
Date.

          9.4  Succeeding Grant.  Immediately following each Annual Meeting of
               ----------------
stockholders, each Outside Director will automatically be granted an Option for
10,000 Shares (a "Succeeding Grant"), provided the Outside Director is a member
of the Board on such date and has served continuously as a member of the Board
for a period of at least one year since the date of such Outside Director's
Initial Grant.  Notwithstanding anything in this Section 9.4 to the contrary,
the Board may make discretionary supplemental grants to an Outside Director who
has served for less than one year from the date of such Outside Director's
Initial Grant, provided that no Outside Director may receive more than 20,000
               --------
Shares in any calendar year pursuant to this Section 9.

          9.5  Vesting.  The date an Outside Director receives an Initial Grant
               -------
or a Succeeding Grant is referred to in this Plan as the "Start Date" for such
Option.

          (a)  Initial Grants.  Each Initial Grant will vest as to 25% of the
               --------------
               Shares on the one (1) year anniversary of the Start Date for such
               Initial Grant, and as to 2.08333% of the Shares on each
               subsequent monthly anniversary thereafter, so long as the Outside
               Director continuously remains a director or consultant of the
               Company.

          (b)  Succeeding Grants.  Each Succeeding Grant will vest as to percent
               -----------------
               25% of the Shares on the one (1) year anniversary of the Start
               Date for such Succeeding Grant, and as to 2.08333% of the Shares
               on each subsequent monthly anniversary thereafter, so long as the
               Outside Director continuously remains a director or consultant of
               the Company.

Notwithstanding any provision to the contrary, in the event of a Corporate
Transaction described in Section 18.1, the vesting of all options granted to
Outside Directors pursuant to this Section 9 will accelerate and such options
will become exercisable in full prior to the consummation of such event at such
times and on such conditions as the Committee determines, and must be exercised,
if at all, within three months of the consummation of said event.  Any options
not exercised within such three-month period shall expire.

          9.6  Exercise Price.  The exercise price of an Option pursuant to an
               --------------
Initial Grant and Succeeding Grant shall be the Fair Market Value of the Shares,
at the time that the Option is granted.

     10.  WITHHOLDING TAXES.
          -----------------

          10.1 Withholding Generally.  Whenever Shares are to be issued in
               ---------------------
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares.  Whenever, under this Plan,
payments in satisfaction of Awards are to be made in cash, such payment will be
net of an amount sufficient to satisfy federal, state, and local withholding tax
requirements.

                                       7
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

          10.2 Stock Withholding.  When, under applicable tax laws, a
               -----------------
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined.  All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee and be in writing in a form acceptable to the
Committee.

     11.  TRANSFERABILITY.
          ---------------

          11.1 Except as otherwise provided in this Section 11, Awards granted
under this Plan, and any interest therein, will not be transferable or
assignable by Participant, and may not be made subject to execution, attachment
or similar process, otherwise than by will or by the laws of descent and
distribution or as determined by the Committee and set forth in the Award
Agreement with respect to Awards that are not ISOs.

          11.2 All Awards other than NQSO's.  All Awards other than NQSO's shall
               ----------------------------
be exercisable: (i) during the Participant's lifetime, only by (A) the
Participant, or (B) the Participant's guardian or legal representative; and (ii)
after Participant's death, by the legal representative of the Participant's
heirs or legatees.

          11.3 NQSOs.  Unless otherwise restricted by the Committee, an NQSO
               -----
shall be exercisable: (i) during the Participant's lifetime only by (A) the
Participant, (B) the Participant's guardian or legal representative, (C) a
Family Member of the Participant who has acquired the NQSO by "permitted
transfer;" and (ii) after Participant's death, by the legal representative of
the Participant's heirs or legatees.  "Permitted transfer" means, as authorized
by this Plan and the Committee in an NQSO, any transfer effected by the
Participant during the Participant's lifetime of an interest in such NQSO but
only such transfers which are by gift or domestic relations order.  A permitted
transfer does not include any transfer for value and neither of the following
are transfers for value:  (a) a transfer of under a domestic relations order in
settlement of marital property rights or (b) a transfer to an entity in which
more than fifty percent of the voting interests are owned by Family Members or
the Participant in exchange for an interest in that entity.

     12.  PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.
          -----------------------------------------------------

          12.1 Voting and Dividends.  No Participant will have any of the rights
               --------------------
of a stockholder with respect to any Shares until the Shares are issued to the
Participant.  After Shares are issued to the Participant, the Participant will
be a stockholder and have all the rights of a stockholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
                                                        --------
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided, further, that the Participant will have no right to
                  --------  -------
retain such stock dividends or stock distributions with respect to Shares that
are repurchased at the Participant's Purchase Price or Exercise Price pursuant
to Section 12.

          12.2 Financial Statements.  The Company will provide financial
               --------------------
statements to each Participant prior to such Participant's purchase of Shares
under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding; provided, however, the Company will not be
                                    --------  -------
required to provide such financial statements to Participants whose services in
connection with the Company assure them access to equivalent information.

          12.3 Restrictions on Shares.  At the discretion of the Committee, the
               -----------------------
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant's Termination at any time within ninety (90) days
after the later of Participant's Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or

                                       8
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

cancellation of purchase money indebtedness, at the Participant's Exercise Price
or Purchase Price, as the case may be.

     13.  CERTIFICATES.  All certificates for Shares or other securities
          ------------
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed or
quoted.

     14.  ESCROW; PLEDGE OF SHARES.  To enforce any restrictions on a
          ------------------------
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates.  Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
                                   --------  -------
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral.  In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve.  The
Shares purchased with the promissory note may be released from the pledge on a
pro rata basis as the promissory note is paid.

     15.  EXCHANGE AND BUYOUT OF AWARDS.  The Committee may, at any time or from
          -----------------------------
time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards.  The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, Shares (including
Restricted Stock) or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

     16.  SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.  An Award will not be
          ----------------------------------------------
effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company will have no
obligation to issue or deliver certificates for Shares under this Plan prior to:
(a) obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and/or (b) completion of any registration
or other qualification of such Shares under any state or federal law or ruling
of any governmental body that the Company determines to be necessary or
advisable.  The Company will be under no obligation to register the Shares with
the SEC or to effect compliance with the registration, qualification or listing
requirements of any state securities laws, stock exchange or automated quotation
system, and the Company will have no liability for any inability or failure to
do so.

     17.  NO OBLIGATION TO EMPLOY.  Nothing in this Plan or any Award granted
          -----------------------
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

     18.  CORPORATE TRANSACTIONS.
          ----------------------

          18.1 Assumption or Replacement of Awards by Successor.  Except for
               ------------------------------------------------
automatic grants to Outside Directors pursuant to Section 9 hereof, in the event
of (a) a dissolution or liquidation of the Company, (b) a

                                       9
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

merger or consolidation in which the Company is not the surviving corporation
(other than a merger or consolidation with a wholly-owned subsidiary, a
reincorporation of the Company in a different jurisdiction, or other transaction
in which there is no substantial change in the stockholders of the Company or
their relative stock holdings and the Awards granted under this Plan are
assumed, converted or replaced by the successor corporation, which assumption
will be binding on all Participants), (c) a merger in which the Company is the
surviving corporation but after which the stockholders of the Company
immediately prior to such merger (other than any stockholder that merges, or
which owns or controls another corporation that merges, with the Company in such
merger) cease to own their shares or other equity interest in the Company, (d)
the sale of substantially all of the assets of the Company, or (e) the
acquisition, sale, or transfer of more than 50% of the outstanding shares of the
Company by tender offer or similar transaction (each, a "Corporate
Transaction"), any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption, conversion or
replacement will be binding on all Participants. In the alternative, the
successor corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to stockholders (after
taking into account the existing provisions of the Awards). The successor
corporation may also issue, in place of outstanding Shares of the Company held
by the Participants, substantially similar shares or other property subject to
repurchase restrictions no less favorable to the Participant. In the event such
successor corporation (if any) refuses to assume or substitute Awards, as
provided above, pursuant to a transaction described in this Subsection 18.1,
such Awards will expire on such transaction at such time and on such conditions
as the Committee will determine. Notwithstanding anything in this Plan to the
contrary, the Committee may, in its sole discretion, provide that the vesting of
any or all Awards granted pursuant to this Plan will accelerate upon a
transaction described in this Section 18. If the Committee exercises such
discretion with respect to Options, such Options will become exercisable in full
prior to the consummation of such event at such time and on such conditions as
the Committee determines, and if such Options are not exercised prior to the
consummation of the corporate transaction, they shall terminate at such time as
determined by the Committee.

          18.2 Other Treatment of Awards.  Subject to any greater rights granted
               -------------------------
to Participants under the foregoing provisions of this Section 18, in the event
of the occurrence of any Corporate Transaction described in Section 18.1, any
outstanding Awards will be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation, or sale of assets.

          18.3 Assumption of Awards by the Company.  The Company, from time to
               -----------------------------------
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either; (a) granting an Award under this Plan in substitution of
such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan.  Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant.  In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
-------
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code).  In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

     19.  ADOPTION AND STOCKHOLDER APPROVAL.  This Plan will become effective on
          ---------------------------------
the date on which the registration statement filed by the Company with the SEC
under the Securities Act registering the initial public offering of the
Company's Common Stock is declared effective by the SEC (the "Effective Date").
This Plan shall be approved by the stockholders of the Company (excluding Shares
issued pursuant to this Plan), consistent with applicable laws, within twelve
(12) months before or after the date this Plan is adopted by the Board.  Upon
the Effective Date, the Committee may grant Awards pursuant to this Plan;
provided, however, that: (a) no Option may be exercised prior to initial
--------  -------
stockholder approval of this Plan; (b) no Option granted pursuant to an increase
in the number of Shares subject to this Plan approved by the Board will be
exercised prior to the time such increase has been approved by the stockholders
of the Company; (c) in the event that initial stockholder approval is not
obtained within the time period provided herein, all Awards granted hereunder
shall be cancelled, any Shares issued pursuant to any Awards shall be cancelled
and any purchase of Shares issued hereunder shall be rescinded;

                                       10
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

and (d) in the event that stockholder approval of such increase is not obtained
within the time period provided herein, all Awards granted pursuant to such
increase will be cancelled, any Shares issued pursuant to any Award granted
pursuant to such increase will be cancelled, and any purchase of Shares pursuant
to such increase will be rescinded.

     20.  TERM OF PLAN/GOVERNING LAW.  Unless earlier terminated as provided
          --------------------------
herein, this Plan will terminate ten (10) years from the date this Plan is
adopted by the Board or, if earlier, the date of stockholder approval.  This
Plan and all agreements thereunder shall be governed by and construed in
accordance with the laws of the State of California.

     21.  AMENDMENT OR TERMINATION OF PLAN.  The Board may at any time terminate
          --------------------------------
or amend this Plan in any respect, including without limitation amendment of any
form of Award Agreement or instrument to be executed pursuant to this Plan;
provided, however, that the Board will not, without the approval of the
--------  -------
stockholders of the Company, amend this Plan in any manner that requires such
stockholder approval.

     22.  NONEXCLUSIVITY OF THE PLAN.  Neither the adoption of this Plan by the
          --------------------------
Board, the submission of this Plan to the stockholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

     23.  DEFINITIONS.  As used in this Plan, the following terms will have the
          -----------
following meanings:

          "Award" means any award under this Plan, including any Option,
Restricted Stock or Stock Bonus.

          "Award Agreement" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

          "Board" means the Board of Directors of the Company.

          "Cause" means the commission of an act of theft, embezzlement, fraud,
dishonesty or a breach of fiduciary duty to the Company or a Parent or
Subsidiary of the Company.

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

          "Committee" means the Compensation Committee of the Board.

          "Company" means AllAdvantage.com Inc. or any successor corporation.

          "Disability" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

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

          "Exercise Price" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

          "Fair Market Value" means, as of any date, the value of a share of the
Company's Common Stock determined as follows:

                                       11
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

          (a)  if such Common Stock is then quoted on the Nasdaq National
               Market, its closing price on the Nasdaq National Market on the
               date of determination as reported in The Wall Street Journal;
                                                    -----------------------

          (b)  if such Common Stock is publicly traded and is then listed on a
               national securities exchange, its closing price on the date of
               determination on the principal national securities exchange on
               which the Common Stock is listed or admitted to trading as
               reported in The Wall Street Journal;
                           -----------------------

          (c)  if such Common Stock is publicly traded but is not quoted on the
               Nasdaq National Market nor listed or admitted to trading on a
               national securities exchange, the average of the closing bid and
               asked prices on the date of determination as reported in The Wall
                                                                        --------
               Street Journal;
               --------------

          (d)  in the case of an Award made on the Effective Date, the price per
               share at which shares of the Company's Common Stock are initially
               offered for sale to the public by the Company's underwriters in
               the initial public offering of the Company's Common Stock
               pursuant to a registration statement filed with the SEC under the
               Securities Act; or

          (e)  if none of the foregoing is applicable, by the Committee in good
               faith.

          "Family Member" includes any of the following:

          (a)  child, stepchild, grandchild, parent, stepparent, grandparent,
               spouse, former spouse, sibling, niece, nephew, mother-in-law,
               father-in-law, son-in-law, daughter-in-law, brother-in-law, or
               sister-in-law of the Participant, including any such person with
               such relationship to the Participant by adoption;

          (b)  any person (other than a tenant or employee) sharing the
               Participant's household;

          (c)  a trust in which the persons in (a) and (b) have more than fifty
               percent of the beneficial interest;

          (d)  a foundation in which the persons in (a) and (b) or the
               Participant control the management of assets; or

          (e)  any other entity in which the persons in (a) and (b) or the
               Participant own more than fifty percent of the voting interest.

          "Insider" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

          "Option" means an award of an option to purchase Shares pursuant to
Section 5.

          "Outside Director" means a member of the Board who is not an employee
of the Company or any Parent, Subsidiary or Affiliate of the Company.

          "Parent" means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if each of such corporations other
than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

          "Participant" means a person who receives an Award under this Plan.

                                       12
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

          "Performance Factors" means the factors selected by the Committee from
among the following measures to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

          (a)  Net revenue and/or net revenue growth;

          (b)  Earnings before income taxes and amortization and/or earnings
               before income taxes and amortization growth;

          (c)  Operating income and/or operating income growth;

          (d)  Net income and/or net income growth;

          (e)  Earnings per share and/or earnings per share growth;

          (f)  Total stockholder return and/or total stockholder return growth;

          (g)  Return on equity;

          (h)  Operating cash flow return on income;

          (i)  Adjusted operating cash flow return on income;

          (j)  Economic value added; and

          (k)  Individual confidential business objectives.

          "Performance Period" means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses.

          "Plan" means this AllAdvantage.com Inc. 2000 Equity Incentive Plan, as
amended from time to time.

          "Restricted Stock Award" means an award of Shares pursuant to Section
6.

          "SEC" means the Securities and Exchange Commission.

          "Securities Act" means the Securities Act of 1933, as amended.

          "Shares" means shares of the Company's Common Stock reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 18, and any
successor security.

          "Stock Bonus" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 7.

          "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

          "Termination" or "Terminated" means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director, consultant, independent
contractor, or advisor to the Company or a Parent or Subsidiary of the Company.
An employee will

                                       13
<PAGE>

                                                           AllAdvantage.com Inc.
                                                      2000 Equity Incentive Plan

not be deemed to have ceased to provide services in the case of (i) sick leave,
(ii) military leave, or (iii) any other leave of absence approved by the
Committee, provided, that such leave is for a period of not more than 90 days,
unless reemployment upon the expiration of such leave is guaranteed by contract
or statute or unless provided otherwise pursuant to formal policy adopted from
time to time by the Company and issued and promulgated to employees in writing.
In the case of any employee on an approved leave of absence, the Committee may
make such provisions respecting suspension of vesting of the Award while on
leave from the employ of the Company or a Subsidiary as it may deem appropriate,
except that in no event may an Option be exercised after the expiration of the
term set forth in the Option agreement. The Committee will have sole discretion
to determine whether a Participant has ceased to provide services and the
effective date on which the Participant ceased to provide services (the
"Termination Date").

          "Unvested Shares" means "Unvested Shares" as defined in the Award
Agreement.

          "Vested Shares" means "Vested Shares" as defined in the Award
Agreement.

                                       14
<PAGE>

                                                                      No. ______

                             ALLADVANTAGE.COM INC.

                          2000 EQUITY INCENTIVE PLAN

                            STOCK OPTION AGREEMENT
                            ----------------------
                         (For Non-Employee Directors)

          This Stock Option Agreement (this "Agreement") is made and entered
into as of the Date of Grant set forth below (the "Date of Grant") by and
between AllAdvantage.com Inc., a Delaware corporation (the "Company"), and the
Optionee named below ("Optionee").  Capitalized terms not defined herein shall
have the meanings ascribed to them in the Company's 2000 Equity Incentive Plan
(the "Plan").

Optionee:
                              -------------------------------------------------

Social Security Number:
                              -------------------------------------------------

Optionee's Address:
                              -------------------------------------------------

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

Total Option Shares:
                              -------------------------------------------------

Exercise Price Per Share:
                              -------------------------------------------------

Date of Grant:
                              -------------------------------------------------

Expiration Date:
                              -------------------------------------------------
                              (unless earlier terminated under Section 3 hereof)

Type of Stock Option          Nonqualified Stock Option
                              -------------------------------------------------

         1.   Grant of Option.  The Company hereby grants to Optionee an option
              ---------------
(this "Option") to purchase up to the total number of shares of Common Stock of
the Company set forth above as Total Option Shares (collectively, the "Shares")
at the Exercise Price Per Share set forth above (the "Exercise Price"), subject
to all of the terms and conditions of this Agreement and the Plan.

         2.   Vesting; Exercise Period.
              ------------------------

              2.1    Vesting of Shares.  Subject to the terms and conditions of
                     -----------------
the Plan and this Agreement, this Option shall be exercisable as it vests.
Subject to the terms and conditions of the Plan and this Agreement, this Option
shall vest as to 25% of the Shares on the first anniversary of the Date of
Grant, and as to 2.08333% of the Shares monthly thereafter until all of the
Shares are fully vested, so long as the Optionee continuously remains a director
of the Company.

              2.2    Expiration.  This Option shall expire on the Expiration
                     ----------
Date set forth above and must be exercised, if at all, on or before the earlier
of the Expiration Date or the date on which this Option is earlier terminated in
accordance with the provisions of Section 3 hereof.
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      For Non-Employee Directors

         3.   Termination.  Except as provided below in this Section, this
              -----------
Option shall terminate and may not be exercised if Optionee ceases to be a
member of the Board of Directors of the Company ("Board Member").  The date on
which Optionee ceases to be a Board Member shall be referred to as the
"Termination Date."

              3.1    Termination for Any Reason Except Death, Disability or
                     ------------------------------------------------------
Cause. If Optionee ceases to be a Board Member for any reason except death,
-----
Disability or Cause, then this Option may be exercised by Optionee no later than
three (3) months after the Termination Date, but in any event no later than the
Expiration Date.

              3.2    Termination Because of Death or Disability.  If Optionee
                     ------------------------------------------
ceases to be a Board Member due to Optionee's death or Disability (or dies
within 3 months after Termination other than for Cause or because of
Disability), then this Option may be exercised by Optionee (or Optionee's legal
representative or authorized assignee) no later than twelve (12) months after
the Termination Date, but in any event no later than the Expiration Date.

              3.3    Termination for Cause.  If Optionee is Terminated for
                     ---------------------
Cause, this Option will expire on the Optionee's date of Termination.

         4.   Manner of Exercise.
              ------------------

              4.1    Stock Option Exercise Agreement.  To exercise this Option,
                     -------------------------------
Optionee (or in the case of exercise after Optionee's death, Optionee's
executor, administrator, heir or legatee, as the case may be) must deliver to
the Company an executed stock option exercise agreement in the form attached
hereto as Exhibit A, or in such other form as may be approved by the Company
          ---------
from time to time (the "Exercise Agreement"), which shall set forth, inter alia,
                                                                     ----- ----
Optionee's election to exercise this Option, the number of shares being
purchased, any restrictions imposed on the Shares and any representations,
warranties and agreements regarding Optionee's investment intent and access to
information as may be required by the Company to comply with applicable
securities laws.  If someone other than Optionee exercises this Option, then
such person must submit documentation reasonably acceptable to the Company that
such person has the right to exercise this Option.

              4.2    Limitations on Exercise.  This Option may not be exercised
                     -----------------------
unless such exercise is in compliance with all applicable federal and state
securities laws, as they are in effect on the date of exercise.  This Option may
not be exercised as to fewer than 100 Shares unless it is exercised as to all
Shares as to which this Option is then exercisable.

              4.3    Payment.  The Exercise Agreement shall be accompanied by
                     -------
full payment of the Exercise Price for the Shares being purchased in cash (by
check), or where permitted by law:

    (a)  by cancellation of indebtedness of the Company to the Optionee;

                                       2
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      For Non-Employee Directors

    (b)  by surrender of shares of the Company's Common Stock that either: (1)
         have been owned by Optionee for more than six (6) months and have been
         paid for within the meaning of SEC Rule 144 (and, if such shares were
         purchased from the Company by use of a promissory note, such note has
         been fully paid with respect to such shares); or (2) were obtained by
         Optionee in the open public market; and (3) are clear of all liens,
                                             ---
         claims, encumbrances or security interests;

    (c)  by waiver of compensation due or accrued to Optionee for services
         rendered;

    (d)  provided that a public market for the Company's stock exists:  (1)
         through a "same day sale" commitment from Optionee and a broker-dealer
         that is a member of the National Association of Securities Dealers (an
         "NASD Dealer") whereby Optionee irrevocably elects to exercise this
         Option and to sell a portion of the Shares so purchased to pay for the
         Exercise Price and whereby the NASD Dealer irrevocably commits upon
         receipt of such Shares to forward the exercise price directly to the
         Company; or (2) through a "margin" commitment from Optionee and an NASD
                  --
         Dealer whereby Optionee irrevocably elects to exercise this Option and
         to pledge the Shares so purchased to the NASD Dealer in a margin
         account as security for a loan from the NASD Dealer in the amount of
         the Exercise Price, and whereby the NASD Dealer irrevocably commits
         upon receipt of such Shares to forward the Exercise Price directly to
         the Company; or

    (e)  by any combination of the foregoing.

              4.4    Tax Withholding.  Prior to the issuance of the Shares upon
                     ---------------
exercise of this Option, Optionee must pay or provide for any applicable federal
or state withholding obligations of the Company.  If the Committee permits,
Optionee may provide for payment of withholding taxes upon exercise of this
Option by requesting that the Company retain Shares with a Fair Market Value
equal to the minimum amount of taxes required to be withheld.  In such case, the
Company shall issue the net number of Shares to the Optionee by deducting the
Shares retained from the Shares issuable upon exercise.

              4.5    Issuance of Shares.  Provided that the Exercise Agreement
                     ------------------
and payment are in form and substance satisfactory to counsel for the Company,
the Company shall issue the Shares registered in the name of Optionee,
Optionee's authorized assignee, or Optionee's legal representative, and shall
deliver certificates representing the Shares with the appropriate legends
affixed thereto.

         5.   Compliance with Laws and Regulations.  The exercise of this Option
              ------------------------------------
and the issuance and transfer of Shares shall be subject to compliance by the
Company and Optionee with all applicable requirements of federal and state
securities laws and with all applicable requirements of any stock exchange on
which the Company's Common Stock may be listed at the

                                       3
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      For Non-Employee Directors

time of such issuance or transfer. Optionee understands that the Company is
under no obligation to register or qualify the Shares with the SEC, any state
securities commission or any stock exchange to effect such compliance.

         6.   Nontransferability of Option.  This Option may not be transferred
              ----------------------------
in any manner other than under the terms and conditions of the Plan or by will
or by the laws of descent and distribution and may be exercised during the
lifetime of Optionee only by Optionee.  The terms of this Option shall be
binding upon the executors, administrators, successors and assigns of Optionee.

         7.   Tax Consequences.  Set forth below is a brief summary as of the
              ----------------
date the Board adopted the Plan of some of the federal tax consequences of
exercise of this Option and disposition of the Shares.  THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THIS OPTION OR DISPOSING
OF THE SHARES.

              7.1    Exercise of Nonqualified Stock Option.  There may be a
                     -------------------------------------
regular federal income tax liability upon the exercise of this Option.  Optionee
will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the fair market value of the
Shares on the date of exercise over the Exercise Price.  The Company may be
required to withhold from Optionee's compensation or collect from Optionee and
pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise.

              7.2    Disposition of Shares.  If the Shares are held for more
                     ---------------------
than twelve (12) months after the date of the transfer of the Shares pursuant to
the exercise of an NQSO, any gain realized on disposition of the Shares will be
treated as long-term capital gain.

         8.   Privileges of Stock Ownership.  Optionee shall not have any of the
              -----------------------------
rights of a stockholder with respect to any Shares until the Shares are issued
to Optionee.

         9.   Interpretation.  Any dispute regarding the interpretation of this
              --------------
Agreement shall be submitted by Optionee or the Company to the Committee for
review.  The resolution of such a dispute by the Committee shall be final and
binding on the Company and Optionee.

        10.   Entire Agreement.  The Plan is incorporated herein by reference.
              ----------------
This Agreement and the Plan and the Exercise Agreement constitute the entire
agreement and understanding of the parties hereto with respect to the subject
matter hereof and supersede all prior understandings and agreements with respect
to such subject matter.

        11.   Notices.  Any notice required to be given or delivered to the
              -------
Company under the terms of this Agreement shall be in writing and addressed to
the Corporate Secretary of the Company at its principal corporate offices.  Any
notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated above or to such

                                       4
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      For Non-Employee Directors

other address as such party may designate in writing from time to time to the
Company. All notices shall be deemed to have been given or delivered upon:
personal delivery; three (3) days after deposit in the United States mail by
certified or registered mail (return receipt requested); one (1) business day
after deposit with any return receipt express courier (prepaid); or one (1)
business day after transmission by facsimile.

        12.   Successors and Assigns.  The Company may assign any of its rights
              ----------------------
under this Agreement.  This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company.  Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Optionee and Optionee's heirs, executors, administrators, legal representatives,
successors and assigns.

        13.   Governing Law.  This Agreement shall be governed by and construed
              -------------
in accordance with the internal laws of the State of California, without regard
to that body of law pertaining to choice of law or conflict of law.

        14.   Acceptance.  Optionee hereby acknowledges receipt of a copy of the
              ----------
Plan and this Agreement.  Optionee has read and understands the terms and
provisions thereof, and accepts this Option subject to all the terms and
conditions of the Plan and this Agreement.  Optionee acknowledges that there may
be adverse tax consequences upon exercise of this Option or disposition of the
Shares and that the Company has advised Optionee to consult a tax advisor prior
to such exercise or disposition.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in duplicate by its duly authorized representative and Optionee has
executed this Agreement in duplicate as of the Date of Grant.

ALLADVANTAGE.COM INC.                  OPTIONEE

By:
    ------------------------------     ----------------------------------------
                                       (Signature)

----------------------------------     ----------------------------------------
(Please print name)                    (Please print name)

----------------------------------
(Please print title)

                                       5
<PAGE>

                                   EXHIBIT A
                                   ---------

                        STOCK OPTION EXERCISE AGREEMENT
<PAGE>

                                   Exhibit A
                                   ---------

                             ALLADVANTAGE.COM INC.
                    2000 EQUITY INCENTIVE PLAN (the "Plan")
                        STOCK OPTION EXERCISE AGREEMENT
                        -------------------------------
                         (For Non-Employee Directors)

I hereby elect to purchase the number of shares of Common Stock of
AllAdvantage.com Inc. (the "Company") as set forth below:

<TABLE>
<CAPTION>
<S>                                                                 <C>
Optionee                                                            Number of Shares Purchased:
        --------------------------------------------------                                     -------------------------------------
Social Security Number:                                             Purchase Price per Share:
                       -----------------------------------                                    --------------------------------------
Address:                                                            Aggregate Purchase Price:
        --------------------------------------------------                                    --------------------------------------
                                                                    Date of Option Agreement:
        --------------------------------------------------                                    --------------------------------------

        --------------------------------------------------          Exact Name of Title to Shares:
                                                                                                    --------------------------------
Type of Option:   Nonqualified Stock Option
                                                                    ----------------------------------------------------------------
</TABLE>
1.   Delivery of Purchase Price. Optionee hereby delivers to the Company the
Aggregate Purchase Price, to the extent permitted in the Stock Option Agreement
(the "Option Agreement") as follows (check as applicable and complete):

[ ]  in cash (by check) in the amount of $_____________________, receipt of
     which is acknowledged by the Company;

[ ]  by cancellation of indebtedness of the Company to Optionee in the amount
     of $___________________________________;

[ ]  by delivery of ______________________________ fully-paid, nonassessable
     and vested shares of the Common Stock of the Company owned by Optionee for
     at least six (6) months prior to the date hereof (and which have been paid
     for within the meaning of SEC Rule 144), or obtained by Optionee in the
     open public market, and owned free and clear of all liens, claims,
     encumbrances or security interests, valued at the current Fair Market Value
     of $____________________ per share;

[ ]  by the waiver hereby of compensation due or accrued to Optionee for
     services rendered in the amount of $____________________________________;

[ ]  through a "same-day-sale" commitment, delivered herewith, from Optionee
     and the NASD Dealer named therein, in the amount of
     $_______________________________; or

[ ]  through a "margin" commitment, delivered herewith from Optionee and the
     NASD Dealer named therein, in the amount of
     $_________________________________________.

2.   Market Standoff Agreement.  Optionee, if requested by the Company and an
underwriter of Common Stock (or other securities) of the Company, agrees not to
sell or otherwise transfer or dispose of any Common Stock (or other securities)
of the Company held by Optionee during the period requested by the managing
underwriter following the effective date of a registration statement of the
Company filed under the Securities Act, provided that all officers and directors
of the Company are required to enter into similar agreements.  Such agreement
shall be in writing in a form satisfactory to the Company and such underwriter.
The Company may impose stop-transfer instructions with respect to the shares (or
other securities) subject to the foregoing restriction until the end of such
period.

3.   Tax Consequences.  OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE
TAX CONSEQUENCES AS A RESULT OF OPTIONEE'S PURCHASE OR DISPOSITION OF THE
SHARES.  OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX
CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR
DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE.

4.   Entire Agreement.  The Plan and Option Agreement are incorporated herein by
reference.  This Exercise Agreement, the Plan and the Option Agreement
constitute the entire agreement and understanding of the parties and supersede
in their entirety all prior understandings and agreements of the Company and
Optionee with respect to the subject matter hereof, and are governed by
California law except for that body of law pertaining to choice of law or
conflict of law.

Date:
       ---------------------          ------------------------------------------
                                      Signature of Optionee
<PAGE>

                                Spousal Consent

     I acknowledge that I have read the foregoing Stock Option Exercise
Agreement (the "Agreement") and that I know its contents.  I hereby consent to
and approve all of the provisions of the Agreement, and agree that the shares of
the Common Stock of AllAdvantage.com Inc. purchased thereunder (the "Shares")
and any interest I may have in such Shares are subject to all the provisions of
the Agreement.  I will take no action at any time to hinder operation of the
Agreement on these Shares or any interest I may have in or to them.

                                             Date:
----------------------------------------           ----------------------------
    Signature of Optionee's Spouse

----------------------------------------
   Spouse's Name - Typed or Printed

----------------------------------------
   Optionee's Name - Typed or Printed
<PAGE>

                                                                      No. ______

                             ALLADVANTAGE.COM INC.

                          2000 EQUITY INCENTIVE PLAN

                            STOCK OPTION AGREEMENT
                            ----------------------

          This Stock Option Agreement (this "Agreement") is made and entered
into as of the Date of Grant set forth below (the "Date of Grant") by and
between AllAdvantage.com Inc., a Delaware corporation (the "Company"), and the
Optionee named below ("Optionee").  Capitalized terms not defined herein shall
have the meanings ascribed to them in the Company's 2000 Equity Incentive Plan
(the "Plan").

Optionee:
                              -------------------------------------------------

Social Security Number:
                              -------------------------------------------------

Optionee's Address:
                              -------------------------------------------------

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

Total Option Shares:
                              -------------------------------------------------

Exercise Price Per Share:
                              -------------------------------------------------

Date of Grant:
                              -------------------------------------------------

Expiration Date:
                              -------------------------------------------------
                              (unless earlier terminated under Section 3 hereof)

Type of Stock Option
(Check one):                  [_] Incentive Stock Option
                              [_] Nonqualified Stock Option

         1.   Grant of Option.  The Company hereby grants to Optionee an option
              ---------------
(this "Option") to purchase up to the total number of shares of Common Stock of
the Company set forth above as Total Option Shares (collectively, the "Shares")
at the Exercise Price Per Share set forth above (the "Exercise Price"), subject
to all of the terms and conditions of this Agreement and the Plan.  If
designated as an Incentive Stock Option above, this Option is intended to
qualify as an "incentive stock option" ("ISO") within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended (the "Code"), to the extent
permitted under Code Section 422.

         2.   Vesting; Exercise Period.
              ------------------------

              2.1    Vesting of Shares.  This Option shall be exercisable as it
                     -----------------
vests.  Subject to the terms and conditions of the Plan and this Agreement, this
Option shall vest and become exercisable as to portions of the Shares as
follows:  (a) this Option shall not be exercisable with respect to any of the
Shares until _________________, 200__ (the "First Vesting Date"); (b) if
Optionee has continuously provided services to the Company, or any
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      2000 Equity Incentive Plan

Parent or Subsidiary of the Company, then on the First Vesting Date, this Option
shall become exercisable as to _______________% of the Shares; and (c)
thereafter this Option shall become exercisable as to an additional
_____________% of the Shares on each monthly anniversary of the First Vesting
Date, provided that Optionee has continuously provided services to the Company,
or any Parent or Subsidiary of the Company, at all times during the relevant
month. This Option shall cease to vest upon Optionee's Termination and Optionee
shall in no event be entitled under this Option to purchase a number of shares
of the Company's Common Stock greater than the "Total Option Shares."

              2.2    Vesting of Options.  Shares that are vested pursuant to the
                     ------------------
schedule set forth in Section 2.1 hereof are "Vested Shares."  Shares that are
not vested pursuant to the schedule set forth in Section 2.1 hereof are
"Unvested Shares."

              2.3    Expiration.  This Option shall expire on the Expiration
                     ----------
Date set forth above and must be exercised, if at all, on or before the earlier
of the Expiration Date or the date on which this Option is earlier terminated in
accordance with the provisions of Section 3 hereof.

         3.   Termination.
              -----------

              3.1    Termination for Any Reason Except Death, Disability or
                     ------------------------------------------------------
Cause. If Optionee is Terminated for any reason except Optionee's death,
-----
Disability or Cause, then this Option, to the extent (and only to the extent)
that it is vested in accordance with the schedule set forth in Section 2.1
hereof on the Termination Date, may be exercised by Optionee no later than three
(3) months after the Termination Date, but in any event no later than the
Expiration Date.

              3.2    Termination Because of Death or Disability.  If Optionee is
                     ------------------------------------------
Terminated because of death or Disability of Optionee (or the Optionee dies
within three (3) months after Termination other than for Cause or because of
Disability), then this Option, to the extent that it is vested in accordance
with the schedule set forth in Section 2.1 hereof on the Termination Date, may
be exercised by Optionee (or Optionee's legal representative or authorized
assignee) no later than twelve (12) months after the Termination Date, but in
any event no later than the Expiration Date.  Any exercise after three months
after the Termination Date when the Termination is for any reason other than
Optionee's death or disability, within the meaning of Code Section 22(e)(3),
shall be deemed to be the exercise of a nonqualified stock option.

              3.3    Termination for Cause.  If Optionee is Terminated for
                     ---------------------
Cause, this Option will expire on the Optionee's date of Termination.

              3.4    No Obligation to Employ.  Nothing in the Plan or this
                     -----------------------
Agreement shall confer on Optionee any right to continue in the employ of, or
other relationship with, the Company or any Parent or Subsidiary of the Company,
or limit in any way the right of the Company or any Parent or Subsidiary of the
Company to terminate Optionee's employment or other relationship at any time,
with or without Cause.

                                       2
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      2000 Equity Incentive Plan

         4.   Manner of Exercise.
              ------------------

              4.1    Stock Option Exercise Agreement.  To exercise this Option,
                     -------------------------------
Optionee (or in the case of exercise after Optionee's death, Optionee's
executor, administrator, heir or legatee, as the case may be) must deliver to
the Company an executed stock option exercise agreement in the form attached
hereto as Exhibit A, or in such other form as may be approved by the Company
          ---------
from time to time (the "Exercise Agreement"), which shall set forth, inter alia,
                                                                     ----- ----
Optionee's election to exercise this Option, the number of shares being
purchased, any restrictions imposed on the Shares and any representations,
warranties and agreements regarding Optionee's investment intent and access to
information as may be required by the Company to comply with applicable
securities laws.  If someone other than Optionee exercises this Option, then
such person must submit documentation reasonably acceptable to the Company that
such person has the right to exercise this Option.

              4.2    Limitations on Exercise.  This Option may not be exercised
                     -----------------------
unless such exercise is in compliance with all applicable federal and state
securities laws, as they are in effect on the date of exercise.  This Option may
not be exercised as to fewer than 100 Shares unless it is exercised as to all
Shares as to which this Option is then exercisable.

              4.3    Payment.  The Exercise Agreement shall be accompanied by
                     -------
full payment of the Exercise Price for the Shares being purchased in cash (by
check), or where permitted by law:

    (a)  by cancellation of indebtedness of the Company to the Optionee;

    (b)  by surrender of shares of the Company's Common Stock that either: (1)
         have been owned by Optionee for more than six (6) months and have been
         paid for within the meaning of SEC Rule 144 (and, if such shares were
         purchased from the Company by use of a promissory note, such note has
         been fully paid with respect to such shares); or (2) were obtained by
         Optionee in the open public market; and (3) are clear of all liens,
                                             ---
         claims, encumbrances or security interests;

    (c)  by waiver of compensation due or accrued to Optionee for services
         rendered;

    (d)  provided that a public market for the Company's stock exists:  (1)
         through a "same day sale" commitment from Optionee and a broker-dealer
         that is a member of the National Association of Securities Dealers (an
         "NASD Dealer") whereby Optionee irrevocably elects to exercise this
         Option and to sell a portion of the Shares so purchased to pay for the
         Exercise Price and whereby the NASD Dealer irrevocably commits upon
         receipt of such Shares to forward the exercise price directly to the
         Company; or (2) through a "margin" commitment from Optionee and an NASD
                  --
         Dealer whereby Optionee irrevocably elects to exercise this Option and
         to pledge the Shares

                                       3
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      2000 Equity Incentive Plan

         so purchased to the NASD Dealer in a margin account as security for a
         loan from the NASD Dealer in the amount of the Exercise Price, and
         whereby the NASD Dealer irrevocably commits upon receipt of such Shares
         to forward the Exercise Price directly to the Company; or

    (e)  by any combination of the foregoing.

              4.4    Tax Withholding.  Prior to the issuance of the Shares upon
                     ---------------
exercise of this Option, Optionee must pay or provide for any applicable federal
or state withholding obligations of the Company.  If the Committee permits,
Optionee may provide for payment of withholding taxes upon exercise of this
Option by requesting that the Company retain Shares with a Fair Market Value
equal to the minimum amount of taxes required to be withheld.  In such case, the
Company shall issue the net number of Shares to the Optionee by deducting the
Shares retained from the Shares issuable upon exercise.

              4.5    Issuance of Shares.  Provided that the Exercise Agreement
                     ------------------
and payment are in form and substance satisfactory to counsel for the Company,
the Company shall issue the Shares registered in the name of Optionee,
Optionee's authorized assignee, or Optionee's legal representative, and shall
deliver certificates representing the Shares with the appropriate legends
affixed thereto.

         5.   Notice of Disqualifying Disposition of ISO Shares.  To the extent
              -------------------------------------------------
this Option is an ISO, if Optionee sells or otherwise disposes of any of the
Shares acquired pursuant to the ISO on or before the later of (a) the date two
(2) years after the Date of Grant, and (b) the date one (1) year after transfer
of such Shares to Optionee upon exercise of this Option, then Optionee shall
immediately notify the Company in writing of such disposition.

         6.   Compliance with Laws and Regulations.  The exercise of this Option
              ------------------------------------
and the issuance and transfer of Shares shall be subject to compliance by the
Company and Optionee with all applicable requirements of federal and state
securities laws and with all applicable requirements of any stock exchange on
which the Company's Common Stock may be listed at the time of such issuance or
transfer.  Optionee understands that the Company is under no obligation to
register or qualify the Shares with the SEC, any state securities commission or
any stock exchange to effect such compliance.

         7.   Nontransferability of Option.  This Option may not be transferred
              ----------------------------
in any manner other than under the terms and conditions of the Plan or by will
or by the laws of descent and distribution and may be exercised during the
lifetime of Optionee only by Optionee.  The terms of this Option shall be
binding upon the executors, administrators, successors and assigns of Optionee.

         8.   Tax Consequences.  Set forth below is a brief summary as of the
              ----------------
date the Board adopted the Plan of some of the federal tax consequences of
exercise of this Option and disposition of the Shares.  THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
OPTIONEE SHOULD

                                       4
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      2000 Equity Incentive Plan

CONSULT A TAX ADVISOR BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

              8.1    Exercise of Incentive Stock Option.  To the extent this
                     ----------------------------------
Option qualifies as an ISO, there will be no regular federal income tax
liability upon the exercise of this Option, although the excess, if any, of the
fair market value of the Shares on the date of exercise over the Exercise Price
will be treated as a tax preference item for federal income tax purposes and may
subject the Optionee to the alternative minimum tax in the year of exercise.

              8.2    Exercise of Nonqualified Stock Option.  To the extent this
                     -------------------------------------
Option does not qualify as an ISO, there may be a regular federal income tax
liability upon the exercise of this Option.  Optionee will be treated as having
received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the fair market value of the Shares on the date of exercise
over the Exercise Price.  The Company may be required to withhold from
Optionee's compensation or collect from Optionee and pay to the applicable
taxing authorities an amount equal to a percentage of this compensation income
at the time of exercise.

              8.3    Disposition of Shares.  The following tax consequences may
                     ---------------------
apply upon disposition of the Shares.

                     a.      Incentive Stock Options.  If the Shares are held
                             -----------------------
for twelve (12) months or more after the date of the transfer of the Shares
pursuant to the exercise of an ISO and are disposed of two (2) years or more
after the Date of Grant, any gain realized on disposition of the Shares will be
treated as capital gain for federal income tax purposes. If Shares purchased
under an ISO are disposed of within the applicable one (1) year or two (2) year
period, any gain realized on such disposition will be treated as compensation
income (taxable at ordinary income rates) to the extent of the excess, if any,
of the fair market value of the Shares on the date of exercise over the Exercise
Price.

                     b.      Nonqualified Stock Options.  If the Shares are
                             --------------------------
held for more than twelve (12) months after the date of the transfer of the
Shares pursuant to the exercise of an NQSO, any gain realized on disposition of
the Shares will be treated as long-term capital gain.

                     c.      Withholding.  The Company may be required to
                             -----------
withhold from Optionee's compensation or collect from the Optionee and pay to
the applicable taxing authorities an amount equal to a percentage of this
compensation income.

         9.   Privileges of Stock Ownership.  Optionee shall not have any of the
              -----------------------------
rights of a stockholder with respect to any Shares until the Shares are issued
to Optionee.

        10.   Interpretation.  Any dispute regarding the interpretation of this
              --------------
Agreement shall be submitted by Optionee or the Company to the Committee for
review.  The resolution of such a dispute by the Committee shall be final and
binding on the Company and Optionee.

                                       5
<PAGE>

                                                           AllAdvantage.com Inc.
                                                          Stock Option Agreement
                                                      2000 Equity Incentive Plan

        11.   Entire Agreement.  The Plan is incorporated herein by reference.
              ----------------
This Agreement and the Plan and the Exercise Agreement constitute the entire
agreement and understanding of the parties hereto with respect to the subject
matter hereof and supersede all prior understandings and agreements with respect
to such subject matter.

        12.   Notices.  Any notice required to be given or delivered to the
              -------
Company under the terms of this Agreement shall be in writing and addressed to
the Corporate Secretary of the Company at its principal corporate offices.  Any
notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company.  All
notices shall be deemed to have been given or delivered upon:  personal
delivery; three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested); one (1) business day after deposit
with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile.

        13.   Successors and Assigns.  The Company may assign any of its rights
              ----------------------
under this Agreement.  This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company.  Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Optionee and Optionee's heirs, executors, administrators, legal representatives,
successors and assigns.

        14.   Governing Law.  This Agreement shall be governed by and construed
              -------------
in accordance with the internal laws of the State of California, without regard
to that body of law pertaining to choice of law or conflict of law.

        15.   Acceptance.  Optionee hereby acknowledges receipt of a copy of the
              ----------
Plan and this Agreement.  Optionee has read and understands the terms and
provisions thereof, and accepts this Option subject to all the terms and
conditions of the Plan and this Agreement.  Optionee acknowledges that there may
be adverse tax consequences upon exercise of this Option or disposition of the
Shares and that the Company has advised Optionee to consult a tax advisor prior
to such exercise or disposition.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in duplicate by its duly authorized representative and Optionee has
executed this Agreement in duplicate as of the Date of Grant.

ALLADVANTAGE.COM INC.                  OPTIONEE

By:
    ------------------------------     ---------------------------------------
                                       (Signature)

    ------------------------------     ---------------------------------------
    (Please print name)                (Please print name)

    ------------------------------
    (Please print title)

                                       6
<PAGE>

                                   EXHIBIT A
                                   ---------

                        STOCK OPTION EXERCISE AGREEMENT
<PAGE>

                                   Exhibit A
                                   ---------

                             ALLADVANTAGE.COM INC.
                    2000 EQUITY INCENTIVE PLAN (the "Plan")
                        STOCK OPTION EXERCISE AGREEMENT
                        -------------------------------

I hereby elect to purchase the number of shares of Common Stock of
AllAdvantage.com Inc. (the "Company") as set forth below:

<TABLE>
<CAPTION>
<S>                                                                 <C>
Optionee                                                            Number of Shares Purchased:
        --------------------------------------------------                                     -------------------------------------
Social Security Number:                                             Purchase Price per Share:
                       -----------------------------------                                    --------------------------------------
Address:                                                            Aggregate Purchase Price:
        --------------------------------------------------                                    --------------------------------------
                                                                    Date of Option Agreement:
        --------------------------------------------------                                    --------------------------------------

Type of Option:   [ ]   Incentive Stock Option                      Exact Name of Title to Shares:
                  [ ]   Nonqualified Stock Option                                                  --------------------------------
</TABLE>
1.   Delivery of Purchase Price. Optionee hereby delivers to the Company the
Aggregate Purchase Price, to the extent permitted in the Stock Option Agreement
(the "Option Agreement") as follows (check as applicable and complete):

[ ]  in cash (by check) in the amount of $_____________________, receipt of
     which is acknowledged by the Company;

[ ]  by cancellation of indebtedness of the Company to Optionee in the amount
     of $___________________________________;

[ ]  by delivery of ______________________________ fully-paid, nonassessable
     and vested shares of the Common Stock of the Company owned by Optionee for
     at least six (6) months prior to the date hereof (and which have been paid
     for within the meaning of SEC Rule 144), or obtained by Optionee in the
     open public market, and owned free and clear of all liens, claims,
     encumbrances or security interests, valued at the current Fair Market Value
     of $____________________ per share;

[ ]  by the waiver hereby of compensation due or accrued to Optionee for
     services rendered in the amount of $____________________________________;

[ ]  through a "same-day-sale" commitment, delivered herewith, from Optionee
     and the NASD Dealer named therein, in the amount of
     $_______________________________; or

[ ]  through a "margin" commitment, delivered herewith from Optionee and the
     NASD Dealer named therein, in the amount of
     $_________________________________________.

2.   Market Standoff Agreement.  Optionee, if requested by the Company and an
underwriter of Common Stock (or other securities) of the Company, agrees not to
sell or otherwise transfer or dispose of any Common Stock (or other securities)
of the Company held by Optionee during the period requested by the managing
underwriter following the effective date of a registration statement of the
Company filed under the Securities Act, provided that all officers and directors
of the Company are required to enter into similar agreements.  Such agreement
shall be in writing in a form satisfactory to the Company and such underwriter.
The Company may impose stop-transfer instructions with respect to the shares (or
other securities) subject to the foregoing restriction until the end of such
period.

3.   Tax Consequences.  OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE
TAX CONSEQUENCES AS A RESULT OF OPTIONEE'S PURCHASE OR DISPOSITION OF THE
SHARES.  OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX
CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR
DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE.

4.   Entire Agreement.  The Plan and Option Agreement are incorporated herein by
reference.  This Exercise Agreement, the Plan and the Option Agreement
constitute the entire agreement and understanding of the parties and supersede
in their entirety all prior understandings and agreements of the Company and
Optionee with respect to the subject matter hereof, and are governed by
California law except for that body of law pertaining to choice of law or
conflict of law.

Date:
       ---------------------          ------------------------------------------
                                      Signature of Optionee
<PAGE>

                                Spousal Consent

     I acknowledge that I have read the foregoing Stock Option Exercise
Agreement (the "Agreement") and that I know its contents.  I hereby consent to
and approve all of the provisions of the Agreement, and agree that the shares of
the Common Stock of AllAdvantage.com Inc. purchased thereunder (the "Shares")
and any interest I may have in such Shares are subject to all the provisions of
the Agreement.  I will take no action at any time to hinder operation of the
Agreement on these Shares or any interest I may have in or to them.

                                             Date:
----------------------------------------           ----------------------------
    Signature of Optionee's Spouse

----------------------------------------
   Spouse's Name - Typed or Printed

----------------------------------------
   Optionee's Name - Typed or Printed

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