Document:

HOT TOPIC                                                 18305 E. San Jose Ave.
EVERYTHING ABOUT THE MUSIC                            City of Industry, CA 91748
                                                            Office: 626-839-4681
                                                               Fax: 626-839-4686
                                                             Email: hottopic.com
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January 12, 2001

Jerry Cook
1900 Belwood
Okemos, Michigan 48864

RE:      EMPLOYMENT TERMS

Dear Jerry:

Hot Topic, Inc. (the "Company") is pleased to offer you the position of Chief
Operating Officer, pursuant to the terms of this letter agreement ("Agreement").

1.       DUTIES

You will be expected to perform various duties consistent with your position.
You will report to the Company's Chief Executive Officer ("CEO"), unless
otherwise assigned by the Company. You will work at our facility located in the
City of Industry.

2.       BASE SALARY

Your base salary will be $300,000 per year, less payroll deductions and all
required withholdings, which will be subject to annual review. You will be paid
semi-monthly and you will be eligible for the following standard Company
benefits: medical insurance, vacation, sick leave, holidays, 401k plan and
Employee Stock Purchase Plan. Details about these benefit plans are available
for your review. In addition, the Company plans to obtain a long-term disability
policy subject to the satisfaction of the certain underwriting criteria. The
Company may modify benefits from time to time, as it deems necessary.

3.       BONUS

In addition to your base salary, you will be eligible to earn an annual
performance bonus ("Bonus") pursuant to the Company's EBIT Plan, as approved by
the Board of Directors. Your target Bonus under the Plan will be fifty percent
of your base salary based upon achievement of the goals set forth in the Plan.
Assuming continuous employment, the Bonus will be awarded in the first quarter
of the Company's fiscal year. You must be employed on the date the Bonus is
awarded to be eligible for the Bonus. The Bonus will not be pro-rated in the
event your employment is terminated with or without Cause (as defined below)
prior to the date on which the Bonus is awarded.

<PAGE>

4.       AUTOMOBILE ALLOWANCE

The Company will pay for you to have a Company leased automobile of your choice,
provided that the value of the automobile does not exceed $60,000. The Company
will also reimburse you for expenses including gas, insurance and maintenance
for the automobile.

5.       STOCK OPTIONS

Upon commencement of employment and subject to approval of the Company's Board
of Directors, you will be granted an Incentive Stock Option under the Company's
1996 Equity Incentive Plan to purchase 50,000 shares of the Company's Common
Stock (the "Stock Option"). The Stock Option will be governed by and granted
pursuant to a separate Stock Option Agreement. The exercise price per share of
the Stock Option will be equal to the fair market value of the Common Stock
established on the date of grant, subject to approval by the Board of Directors.
The Stock Option will be subject to vesting over four (4) years so long as you
continue to be employed with the Company, according to the following schedule:
twenty-five percent (25%) of the shares subject to the Stock Option will vest on
the last day of the twelfth full calendar month of your employment after the
date of grant and the remaining shares subject to the Stock Option will vest in
equal installments at the end of each monthly period thereafter for three (3)
years.

If you have questions regarding the tax implications of the Stock Option or any
part of your compensation package, please consult with your own tax advisor.

6.       TERMINATION

The Company may terminate your employment at any time and for any or no reason,
with or without Cause (as defined herein) or advance notice, by giving written
notice of such termination. Similarly, you may terminate your employment with
the Company at any time at your election, in your sole discretion, for any or no
reason upon two weeks notice to the Company during which time you shall provide
reasonable transition assistance to the Company. The Company reserves the right
to ask you to expedite your resignation date and to leave prior to the end of
the two weeks notice period. The at-will nature of your employment relationship
may not be modified except by a written agreement with the CEO of the Company.

If the Company terminates your employment without Cause (as defined herein),
then upon your furnishing to the Company an executed release and waiver of
claims (a form of which is attached hereto as Exhibit A), you shall be entitled
to receive severance payments in the form of continuation of your base salary
and medical insurance benefits that are in effect at the time of your
termination, subject to standard payroll deductions and withholdings, for six
(6) months (the "Severance Period"). If you voluntarily resign or your
employment is terminated for Cause (as defined herein), all compensation and
benefits will cease immediately and you will receive no additional payments from
the Company other than your accrued base salary and accrued and unused vacation
benefits earned through the date of your termination.
<PAGE>

For purposes of this Agreement, "Cause" shall mean (i) willful misconduct by
you, including, but not limited to, dishonesty which materially and adversely
reflects upon your ability to perform your duties for the Company, (ii) your
conviction of, or the entry of a pleading of guilty or nolo contendere by you
to, any crime involving moral turpitude or any felony, (iii) fraud, embezzlement
or theft against the Company, (iv) a material breach by you of any material
provision of any employment contract, assignment of inventions, confidentiality
and/or nondisclosure agreement between you and the Company, or (v) your willful
and habitual failure to attend to your duties as assigned by the CEO of the
Company, after written notice to Executive and no less than a 90 day period to
cure such failure provided such failure to perform is subject to cure with the
passage of time

7.       CHANGE OF CONTROL

Following a Change in Control (as defined herein) the vesting of your Stock
Options will be immediately accelerated such that one hundred percent (100%) of
the Stock Options shall be vested and exercisable. For purposes of this
Agreement, Change of Control is defined as follows: (i) a sale of all or
substantially all of the assets of the Company; (ii) a merger or consolidation
in which the Company is not the surviving corporation and in which beneficial
ownership of securities of the Company representing at least fifty percent (50%)
of the combined voting power entitled to vote in the election of Directors has
changed; (iii) an acquisition by any person, entity or group within the meaning
of Section 13(d) or 14(d) of the Exchange Act, or any comparable successor
provisions (excluding any employee benefit plan, or related trust, sponsored or
maintained by the Company or subsidiary of the Company or other entity
controlled by the Company) of the beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of
securities of the Company representing at least fifty percent (50%) of the
combined voting power entitled to vote in the election of Directors.

8.       COMPANY POLICY

As a Company employee, you will be expected to abide by Company rules and
regulations and acknowledge in writing that you have read the Company's Employee
Handbook which will govern the terms and conditions of your employment. The
Company's Employee Handbook may be modified from time to time at the sole
discretion of the Company.

9.       PROPRIETARY INFORMATION AGREEMENT

As a condition of employment, you will be required to sign and comply with the
attached Proprietary Information Agreement attached hereto as Exhibit B, which
prohibits unauthorized use or disclosure of the Company's proprietary
information, among other things.

In your work for the Company, you will be expected not to use or disclose any
confidential information, including trade secrets, of any former employer or
other person to whom you have an obligation of confidentiality. Rather, you will
be expected to use only that information which is generally known and used by
persons with training and experience comparable to your own, which is common
knowledge in the industry or otherwise legally in the public domain, or which is
otherwise provided or developed by the Company. During our discussions about
your proposed job duties, you assured us that you would be able to perform those
duties within the guidelines just described. You agree that you will not bring
onto Company premises any unpublished documents or property belonging to any
former employer or other person to whom you have an obligation of
confidentiality.
<PAGE>

10.      ENTIRE AGREEMENT

This Agreement, together with Exhibits attached hereto and the stock option
documents referred to herein, forms the complete and exclusive statement of the
terms of your employment with the Company. The employment terms in this
Agreement supersede any other agreements or promises made to you by anyone,
whether oral or written.

11.      GOVERNING LAW

This Agreement will be governed by and construed according to the laws of the
State of California. You hereby expressly consent to the personal jurisdiction
of the state and federal courts located in Los Angeles, California for any
lawsuit filed there against you by the Company arising from or related to this
Agreement. In the event of any litigation arising out of or relating to this
Agreement, its breach or enforcement, including an action for declaratory
relief, the prevailing party in such action or proceeding shall be entitled to
receive his or its damages, court costs, and all out-of-pocket expenses,
including attorneys fees. Such recovery shall include court costs, out-of-pocket
expenses, and attorneys fees on appeal, if any.

12.      SUCCESSORS AND ASSIGNS. This Agreement will be binding upon your heirs,
executors, administrators and other legal representatives and will be for the
benefit of the Company, its successors, and its assigns.

As required by law, this offer is subject to satisfactory proof of your right to
work in the United States.

Sincerely,

/s/ Betsy McLaughlin
-----------------------------
Betsy McLaughlin
Chief Executive Officer

Accepted:

/s/ Jerry Cook
-----------------------------
Jerry Cook

-----------------------------
Date

Attachment:       Exhibit A:        Waiver and Release

<PAGE>

                                    EXHIBIT A

                          RELEASE AND WAIVER OF CLAIMS

         In consideration of the payments and other benefits set forth in
Section 5 of the Agreement dated ___________, to which this form is attached, I,
JERRY COOK, hereby furnish Hot Topic, Inc. (the "Company"), with the following
release and waiver ("Release and Waiver").

         I hereby release, and forever discharge the Company, its officers,
directors, agents, employees, stockholders, successors, assigns affiliates and
Benefit Plans, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys' fees, damages, indemnities and obligations
of every kind and nature, in law, equity, or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed, arising at any time prior
to and including my employment termination date with respect to any and all
claims including, but not limited to, claims relating to my employment and the
termination of my employment, claims pursuant to any federal, state or local law
relating to employment, including, but not limited to, discrimination claims,
claims under the California Fair Employment and Housing Act, and the Federal Age
Discrimination in Employment Act of 1967, as amended ("ADEA"), or claims for
wrongful termination, breach of the covenant of good faith, contract claims,
tort claims, and wage or benefit claims, including but not limited to, claims
for salary, bonuses, commissions, stock, stock options, vacation pay, fringe
benefits, severance pay or any form of compensation.

         I also acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to any claims I may have against the
Company.

         I acknowledge that, among other rights, I am waiving and releasing any
rights I may have under the ADEA, that this Release and Waiver is knowing and
voluntary, and that the consideration given for this Release and Waiver is in
addition to anything of value to which I was already entitled as an executive of
the Company. I further acknowledge that I have been advised, as required by the
Older Workers Benefit Protection Act, that: (a) the Release and Waiver granted
herein does not relate to claims which may arise after this Release and Waiver
is executed; (b) I have the right to consult with an attorney prior to executing
this Release and Waiver (although I may choose voluntarily not to do so); and if
I am over 40 years of age upon execution of this Release and Waiver: (c) I have
twenty-one (21) days from the date of termination of my employment with the
Company in which to consider this Release and Waiver (although I may choose
voluntarily to execute this Release and Waiver earlier); (d) I have seven (7)
days following the execution of this Release and Waiver to revoke my consent to
this Release and Waiver; and (e) this Release and Waiver shall not be effective
until the seven (7) day revocation period has expired.

Date:                                         By: /s/ Jerry Cook
     -----------------------                     -------------------------------
                                                 JERRY COOK

<PAGE>

                                    EXHIBIT B

                                 HOT TOPIC, INC.

                   EMPLOYEE PROPRIETARY INFORMATION AGREEMENT<PAGE>
                                                                   EXHIBIT 10.13

                                    WARRANT

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
         EXCHANGED OR TRANSFERRED IN ANY MANNER IN THE ABSENCE OF SUCH
         REGISTRATION OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE
         COMPANY THAT NO SUCH REGISTRATION IS REQUIRED.

                               WARRANT CERTIFICATE

                                    IVG CORP.

No. WR-001                  Right to Purchase 50,000 Shares of Common Stock of
Date: April 30, 2001        IVG Corp. (subject to adjustment as provided herein)

         THIS CERTIFIES THAT, for value received, UNION ATLANTIC CAPITAL, L.C.
or its registered assigns, is entitled to purchase from IVG CORP., a Delaware
corporation (the "COMPANY"), at any time or from time to time during the period
specified in Paragraph 2, 50,000 fully paid and nonassessable shares of the
Company's Common Stock, par value $0.0001 per share (the "COMMON STOCK"), at an
exercise price per share equal to $1.647 (the "EXERCISE PRICE"). The term
"WARRANT SHARES," as used herein, refers to the shares of Common Stock
purchasable hereunder. The Warrant Shares and the Exercise Price are subject to
adjustment as provided in Paragraph 4.

         This Warrant is subject to the following terms, provisions, and
conditions:

         1. MANNER OF EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES.
Subject to the provisions of this Warrant Certificate, this Warrant may be
exercised by the holder of this Warrant and/or any permitted transferee
specified in Paragraph 7 below (the "holder"), in whole or in part, by the
surrender of this Warrant together with a completed exercise agreement in the
form attached to this Warrant Certificate (the "EXERCISE AGREEMENT"), to the
Company during normal business hours on any business day at the Company's
principal executive offices (or such other office or agency of the Company as it
may designate by notice to the holder), and upon payment of the Exercise Price.
At the option of the holder, the Exercise Price may be paid to the Company in
cash, by certified or official bank check or by wire transfer for the account of
the Company. The Warrant Shares so purchased shall be deemed to be issued to the
holder or such holder's designee, as the record owner of such shares, as of the
close of business on the date on which this Warrant shall have been surrendered,
the completed Exercise Agreement shall have been delivered, and payment shall
have been made for such shares as set forth above. Certificates for the Warrant
Shares so purchased shall be delivered to the holder within a reasonable time
after this Warrant shall have been so exercised. The certificates so delivered
shall be in such denominations as may be requested by the holder and shall be
registered in the name of the holder or such other name as shall be designated
by such holder.

<PAGE>

         2. PERIOD OF EXERCISE. This Warrant may be exercised, at the option of
the holder, in whole or in part, at any time from the date of the execution of
this Warrant and (b) ending at 5:00 p.m., Eastern time, on the fourth
anniversary of the date of this Warrant (the "Exercise Period").

         3. CERTAIN AGREEMENTS OF THE COMPANY. The Company hereby covenants and
agrees as follows:

                  (a) SHARES TO BE FULLY PAID. All Warrant Shares will, upon
         issuance in accordance with the terms of this Warrant, be validly
         issued, fully paid and nonassessable and free from all taxes, liens and
         charges with respect to the issue thereof.

                  (b) RESERVATION OF SHARES. During the Exercise Period, the
         Company shall at all times have authorized, and reserved for the
         purpose of issuance upon exercise of this Warrant, a sufficient number
         of shares of Common Stock to provide for the exercise of this Warrant.

                  (c) SUCCESSORS AND ASSIGNS. This Warrant will be binding upon
         any entity succeeding to the Company by merger, consolidation or
         acquisition of all or substantially all of the Company's assets.

         4. ANTIDILUTION PROVISIONS. During the Exercise Period, the Exercise
Price and the number of Warrant Shares shall be subject to adjustment from time
to time as provided in this Paragraph 4. In the event that any adjustment of the
Exercise Price as required herein results in a fraction of a cent, such Exercise
Price shall be rounded up to the nearest cent.

                  (a) SUBDIVISION OR COMBINATION OF COMMON STOCK. During the
         Exercise Period, if the Company subdivides (by any stock split, stock
         dividend, recapitalization, reorganization, reclassification or
         otherwise) any shares of Common Stock into a greater number of shares,
         then, after the date of record for effecting such subdivision, the
         Exercise Price in effect immediately prior to such subdivision will be
         proportionately reduced. During the Exercise Period, if the Company
         combines (by reverse stock split, recapitalization, reorganization,
         reclassification or otherwise) any shares of Common Stock into a
         smaller number of shares, then, after the date of record for effecting
         such combination, the Exercise Price in effect immediately prior to
         such combination will be proportionately increased.

                  (b) ADJUSTMENT IN NUMBER OF SHARES. Upon each adjustment of
         the Exercise Price pursuant to the provisions of this Paragraph 4, the
         number of shares of Common Stock issuable upon exercise of this Warrant
         shall be adjusted by multiplying a number equal to the Exercise Price
         in effect immediately prior to such adjustment by the number of shares
         of Common Stock issuable upon exercise of this Warrant immediately
         prior to such adjustment and dividing the product so obtained by the
         adjusted Exercise Price.

                  (c) CONSOLIDATION, MERGER OR SALE. During the Exercise Period,
         in case of any consolidation of the Company with, or merger of the
         Company into any other corporation, or in case of any sale or
         conveyance of all or substantially all of the assets of the Company

                                       2
<PAGE>

         other than in connection with a plan of complete liquidation of the
         Company, then as a condition of such consolidation, merger or sale or
         conveyance, adequate provision will be made whereby the holder of this
         Warrant will have the right to acquire and receive upon exercise of
         this Warrant in lieu of the shares of Common Stock immediately
         theretofore acquirable upon the exercise of this Warrant, such shares
         of stock, securities or assets as may be issued or payable with respect
         to or in exchange for the number of shares of Common Stock immediately
         theretofore acquirable and receivable upon exercise of this Warrant had
         such consolidation, merger or sale or conveyance taken place. In any
         such case, the Company will make appropriate provision to insure that
         the provisions of this Paragraph 4 will thereafter be applicable as
         nearly as may be in relation to any shares of stock or securities
         thereafter deliverable upon the exercise of this Warrant.

                  (d) NOTICE OF ADJUSTMENT. Upon the occurrence of any event
         that requires any adjustment of the Exercise Price, then, and in each
         such case, the Company shall give notice thereof to the holder, which
         notice shall state the Exercise Price resulting from such adjustment
         and the increase or decrease in the number of Warrant Shares
         purchasable at such price upon exercise, setting forth in reasonable
         detail the method of calculation and the facts upon which such
         calculation is based. Such calculation shall be certified by
         independent public accountants then engaged by the Company.

                  (e) MINIMUM ADJUSTMENT OF EXERCISE PRICE. No adjustment of the
         Exercise Price shall be made in an amount of less than 1% of the
         Exercise Price in effect at the time such adjustment is otherwise
         required to be made, but any such lesser adjustment shall be carried
         forward and shall be made at the time and together with the next
         subsequent adjustment which, together with any adjustments so carried
         forward, shall amount to not less than 1% of such Exercise Price.

                  (f) NO FRACTIONAL SHARES. No fractional shares of Common Stock
         are to be issued upon the exercise of this Warrant, but the Company
         shall pay a cash adjustment in respect of any fractional shares which
         would otherwise be issuable in an amount equal to the same fraction of
         the Market Price (as defined herein) of a share of Common Stock on the
         date of such exercise.

                  (g) OTHER NOTICES. In case:

                           (i) the Company shall declare any dividend upon the
                  Common Stock payable in shares of stock of any class or make
                  any other distribution (including dividends or distributions
                  payable in cash out of retained earnings) to the holders of
                  the Common Stock;

                           (ii) the Company shall offer for subscription pro
                  rata to the holders of the Common Stock any additional shares
                  of stock of any class or other rights;

                                       3
<PAGE>

                           (iii) there shall be any capital reorganization of
                  the Company, or reclassification of the Common Stock, or
                  consolidation or merger of the Company with or into or sale of
                  all or substantially all its assets to, another corporation or
                  entity; or

                           (iv) there shall be a voluntary or involuntary
                  dissolution, liquidation or winding-up of the Company;

         then, in each such case, the Company shall give to the holder (a)
         notice of the date on which the books of the Company shall close or a
         record shall be taken for determining the holders of Common Stock
         entitled to receive any such dividend, distribution, or subscription
         rights or for determining the legal holders of Common Stock entitled to
         vote in respect of any such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation or winding up and
         (b) in the case of any such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation or winding-up,
         notice of the date (or, if not then known, a reasonable approximation
         thereof by the Company) when the same shall take place. Such notice
         shall also specify the date on which the holders of Common Stock shall
         be entitled to receive such dividend, distribution, or subscription
         rights or to exchange their Common Stock for stock or other securities
         or property deliverable upon such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation, or winding-up,
         as the case may be. Such notice shall be given at least 30 days prior
         to the record date or the date on which the Company's books are closed
         in respect thereto. Failure to give any such notice or any defect
         therein shall not affect the validity of the proceedings referred to in
         clauses (i), (ii), (iii) and (iv) above.

                  (h) CERTAIN DEFINITIONS:

                           (i) "MARKET PRICE" as of any date, means (a) the
                  average of the last reported sale prices on the principal
                  trading market for the Common Stock for the five trading days
                  immediately preceding the date of any such determination, or
                  (b) if market value cannot be calculated as of such date on
                  the foregoing basis, Market Price shall be the fair market
                  value as reasonably determined in good faith by the Board of
                  Directors of the Company. The manner of determining the Market
                  Price of the Common Stock sets forth in the foregoing
                  definition shall apply with respect to any other security in
                  respect of which a determination as to market value must be
                  made hereunder.

                           (ii) "COMMON STOCK" for the purposes of this
                  Paragraph 4, includes the Common Stock, par value $0.0001 per
                  share, or shares resulting from any subdivision or combination
                  of such Common Stock, or in the case of any reorganization,
                  reclassification, consolidation, or sale of the character
                  referred to in Paragraph 4(c), the stock or other securities
                  or property provided for in such Paragraph.

                                       4
<PAGE>

         5. ISSUE TAX. The issuance of certificates for Warrant Shares upon the
exercise of this Warrant shall be made without charge to the holder or such
shares for any issuance tax or other costs in respect thereof, provided that the
Company shall not be required to pay any tax that may be payable in respect of
any transfer involved in the issuance and delivery of any certificate in a name
other than the holder of this Warrant.

         6. NO RIGHTS OR LIABILITIES AS A SHAREHOLDER. This Warrant shall not
entitle the holder to any voting rights or other rights as a shareholder of the
Company. No provision of this Warrant, in the absence of affirmative action by
the holder to purchase Warrant Shares, and no mere enumeration herein of the
rights or privileges of the holder, shall give rise to any liability of such
holder for the Exercise Price or as a shareholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company.

         7. TRANSFER AND REPLACEMENT OF WARRANT.

                  (a) RESTRICTION ON TRANSFER. This Warrant and the rights
         granted to the holder are transferable, in whole or in part, upon
         surrender of this Warrant, together with a properly executed assignment
         in the form attached hereto, at the office of the Company referred to
         in Paragraph 7(d) below, provided, however, that any transfer or
         assignment shall be subject to the conditions set forth in Paragraph
         7(e). Until due presentment for registration of transfer on the books
         of the Company, the Company may treat the registered holder as the
         owner and holder of this Warrant for all purposes, and the Company
         shall not be affected by any notice to the contrary.

                  (b) REPLACEMENT OF WARRANT. Upon receipt of evidence
         reasonably satisfactory to the Company of the loss, theft, destruction,
         or mutilation of this Warrant and, in the case of any such loss, theft,
         or destruction, upon delivery of an indemnity agreement reasonably
         satisfactory in form and amount to the Company, or, in the case of any
         such mutilation, upon surrender and cancellation of this Warrant, the
         Company, at its expense, will execute and deliver, in lieu thereof, a
         new Warrant of like tenor.

                  (c) CANCELLATION; PAYMENT OF EXPENSES. Upon the surrender of
         this Warrant in connection with any transfer or replacement as provided
         in this Paragraph 7, this Warrant shall be promptly canceled by the
         Company. The Company shall pay all taxes (other than securities
         transfer taxes) and all other expenses (other than legal expenses, if
         any, incurred by the Holder) in connection with the preparation,
         execution, and delivery of Warrants pursuant to this Paragraph 7.

                  (d) REGISTER. The Company shall maintain, at its principal
         executive offices (or such other office of the Company as it may
         designate by notice to the holder), a register for this Warrant, in
         which the Company shall record the name and address of the person in
         whose name this Warrant has been issued, as well as the name and
         address of each transferee and each prior owner of this Warrant.

                                       5
<PAGE>

                  (e) EXERCISE OR TRANSFER WITHOUT REGISTRATION. If, at the time
         of the surrender of this Warrant in connection with any exercise,
         transfer, or exchange of this Warrant, this Warrant (or in the case of
         any exercise, the Warrant Shares issuable hereunder) shall not be
         registered under the Securities Act and under applicable state
         securities or blue sky laws, the Company may require, as a condition of
         allowing such exercise, transfer, or exchange (i) that the holder or
         transferee of this Warrant, as the case may be, furnish to the Company
         a written opinion of counsel, which opinion and counsel are reasonably
         acceptable to the Company, to the effect that such exercise, transfer
         or exchange may be made without registration under said Act and under
         applicable state securities or blue sky laws, and (ii) that the holder
         or transferee execute and deliver to the Company an investment letter
         in form and substance acceptable to the Company. The first holder of
         this Warrant, by taking and holding the same, represents to the Company
         that such holder is acquiring this Warrant for investment and not with
         a view to the distribution thereof.

         8. NOTICES. All notices, requests and other communications required or
permitted to be given or delivered hereunder to the holder of this Warrant shall
be in writing, and shall be personally delivered, or shall be sent by certified
or registered mail or by recognized overnight mail courier, postage prepaid and
addressed, to such holder at the address shown for such holder on the books of
the Company, or at such other address as shall have been furnished to the
Company by notice from such holder. All notices, requests, and other
communications required or permitted to be given or delivered hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid and addressed to the office of the Company at 13135 Dairy Ashford, Suite
525, Sugar Land, Texas 77048, Attention: Chief Executive Officer, or at such
other address as shall have been furnished to the holder of this Warrant by
notice from the Company. Any such notice, request or other communication may be
sent by facsimile, but shall in such case be subsequently confirmed by a writing
personally delivered or sent by certified or registered mail or by recognized
overnight mail courier as provided above. All notices, requests and other
communications shall be deemed to have been given either at the time of the
receipt thereof by the person entitled to receive such notice at the address of
such person for purposes of this Paragraph 8 or, if mailed by registered or
certified mail or with a recognized overnight mail courier upon deposit with the
United States Post Office or such overnight mail courier, if postage is prepaid
and the mailing is properly addressed, as the case may be.

         9. GOVERNING LAW. THIS WARRANT SHALL BE GOVERNED AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT
REGARD TO THE BODY OF LAW CONTROLLING CONFLICTS OF LAW.

         10. MISCELLANEOUS.

                  (a) AMENDMENTS. This Warrant and any provision it may only be
         amended by an instrument signed by the Company and the holder.

                                       6
<PAGE>

                  (b) DESCRIPTIVE HEADINGS. The descriptive headings of the
         several paragraphs of this Warrant are inserted for purposes of
         reference only, and shall not affect the meaning or construction of any
         of the provisions of this Warrant.

                  (c) SEVERABILITY AND SAVINGS CLAUSE. If any one or more of the
         provisions contained in this Agreement is for any reason (i) objected
         to, contested or challenged by any court, government authority, agency,
         department, commission or instrumentality of the United States or any
         state or political subdivision thereof, or any securities industry
         self-regulatory organization (collectively, "Governmental Authority"),
         or (ii) held to be invalid, illegal or unenforceable in any respect,
         the Company and the holder agree to negotiate in good faith to modify
         such objected to, contested, challenged, invalid, illegal or
         unenforceable provision. It is the intention of Company and the holder
         that there shall be substituted for such objected to, contested,
         challenged, invalid, illegal or unenforceable provision a provision as
         similar to such provision as may be possible and yet be acceptable to
         any objecting Governmental Authority and be valid, legal and
         enforceable. Further, should any provisions of this Agreement ever be
         reformed or rewritten by a judicial body, those provisions as rewritten
         will be binding, but only in that jurisdiction, on the holder and the
         Company as if contained in the original Agreement. The invalidity,
         illegality or unenforceability of any one or more provisions of this
         Warrant will not affect the validity and enforceability of any other
         provisions of this Warrant.

         WITNESS the signature of a proper officer of the Company as of the date
first above written.

                                        IVG CORP.

                                        /s/ Elorian Landers
                                        ----------------------------------------
                                        Elorian Landers, Chief Executive Officer

                                       7
<PAGE>

                              [FORM OF ASSIGNMENT]

                   (TO BE EXECUTED BY THE REGISTERED HOLDER IF
            SUCH HOLDER DESIRES TO TRANSFER THE WARRANT CERTIFICATE)

         FOR VALUE RECEIVED, _______________________________________ hereby
sells, assigns and transfers unto

--------------------------------------------------------------------------------
(Please print name, address and taxpayer identification number or social
security number of transferee.)

the accompanying Warrant Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint:

--------------------------------------------------------------------------------
attorney, to transfer the accompanying Warrant Certificate on the books of the
Company, with full power of substitution. The transferee's tax identification or
social security number is _____________________.

Dated:                     ,        .
      ---------------------  -------

                                                     [HOLDER]

                                                     By:
                                                        ------------------------
                                                     Name:
                                                          ----------------------
                                                     Title:
                                                           ---------------------

                                     NOTICE

         The signature to the foregoing Assignment must correspond to the name
as written upon the face of the accompanying Warrant Certificate or any prior
assignment thereof in every particular, without alteration or enlargement or any
change whatsoever.

                                       8
<PAGE>

                         [FORM OF ELECTION TO PURCHASE]

                   (TO BE EXECUTED BY THE REGISTERED HOLDER IF
            SUCH HOLDER DESIRES TO EXERCISE THE WARRANT CERTIFICATE)

To:                                 :
   ---------------------------------

The undersigned hereby irrevocably elects to exercise ____________ of the
Warrants represented by the accompanying Warrant Certificate to purchase the
shares of Common Stock issuable upon the exercise of such Warrants and requests
that certificates for such shares be issued in the name of:

--------------------------------------------------------------------------------
(Please print name and address.)

--------------------------------------------------------------------------------
(Please insert social security or other identifying number.)

The undersigned represents that it is acquiring the shares of Common Stock for
its own account and not with a view to distribution, and it will not sell these
shares unless they have been registered under the Securities Act of 1933 or an
exemption from such registration requirement is available.

If such number of Warrants shall not be all the Warrants evidenced by the
accompanying Warrant Certificate, a new Warrant Certificate for the balance
remaining of such Warrants shall be registered in the name of and delivered to:

--------------------------------------------------------------------------------
(Please print name and address.)

--------------------------------------------------------------------------------
(Please insert social security or other identifying number.)

Dated:                     ,        .
      ---------------------  -------
                                                     ---------------------------
                                                     Holder

                                                     By:
                                                        ------------------------
                                                     Name:
                                                          ----------------------
                                                     Title:
                                                           ---------------------

                                     NOTICE

         The signature to the foregoing Election to Purchase must correspond to
the name as written upon the face of the accompanying Warrant Certificate or any
prior assignment thereof in every particular, without alteration or enlargement
or any change whatsoever.

                                       9

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