Document:

Exhibit (10)(a)

                       STARTECH ENVIRONMENTAL CORPORATION
                             2000 STOCK OPTION PLAN

Section 1. Purpose.
------------------

     The purpose of the Startech Environmental Corporation 2000 Stock Option
Plan (the "Plan") is to advance the interests of the Startech Environmental
Corporation (the "Company"), its Affiliated Companies (as defined in Section 2)
and all its shareholders by encouraging and enabling the acquisition of a
financial interest in the Company by officers, other key employees and
consultants of the Company or its Affiliated Companies. In addition, the Plan is
intended to aid the Company and its Affiliated Companies to compete with other
companies offering similar plans in attracting and retaining key employees, to
stimulate the efforts of such employees and to strengthen their desire to remain
in the employ of the Company and its Affiliated Companies.

Section 2. Definitions.
-----------------------

     "Common Stock" means Startech Environmental Corporation Common Stock, no
par value per share.

     "Affiliated Company" or "Affiliated Companies" means corporation(s) or
other business organization(s) in which the Company owns, directly or
indirectly, 20% or more of the voting stock or capital at the relevant time.

     "Business Day" means a day on which the NASDAQ National Market is open for
securities trading.

     "Change in Control" shall mean a change in control of a nature that would
be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A under the Securities Exchange Act of 1934 (" 1934 Act") as in
effect on January 1, 2000, provided that such a change in control shall be
deemed to have occurred at such time as (i) any "person" (as that term is used
in Sections 13(d) and 14(d)(2) of the 1934 Act), is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the 1934 Act as in effect on January 1,
2000) directly or indirectly, of securities representing 20% or more of the
combined voting power for election of directors of the then outstanding
securities of the Company or any successor of the Company; (ii) during any
period of two (2) consecutive years or less, individuals who at the beginning of
such period constituted the Board of Directors of the Company cease, for any
reason, to constitute at least a majority of the Board of Directors, unless the
election or nomination for election of each new director was approved by a vote
of at least two-thirds of the directors then still in office who were directors
at the beginning of the period; (iii) the shareholders of the Company approve
any merger or consolidation as a result of which the Startech Environmental
Corporation Common Stock (as defined below) shall be changed, converted or
exchanged (other than a merger with a wholly owned subsidiary of the Company) or
any liquidation of the Company or any sale or other disposition of 50% or more
of the assets or earning power of the Company; or (iv) the shareholders of the
Company approve any merger or consolidation to which the Company is a party as a
result of which the persons who were shareholders of the Company immediately
prior to the effective date of the merger or consolidation shall have beneficial
ownership of less than 50% of the combined voting power for election of
directors of the surviving corporation following the effective date of such
merger or consolidation; provided, however, that no Change in Control shall be
deemed to have occurred if, prior to such times as a Change in Control would
otherwise be deemed to have occurred, the Board of Directors determines
otherwise.

<PAGE>

     "Committee" means a committee appointed by the Board of Directors in
accordance with the Company's By-Laws from among its members. Unless and until
its members are not qualified to serve on the Committee pursuant to the
provisions of the Plan, the Compensation Committee of the Board shall function
as the Committee. Eligibility requirements for members of the Committee shall
comply with Rule 16b-3 under the 1934 Act, or any successor rule or regulation.

     "Disabled" or "Disability" means the optionee meets the definition of
"disabled" under Section 22(e) of the Internal Revenue Code of 1986, as,
amended.

     "ISO means an incentive stock option within the meaning of Section 422 of
the Internal Revenue Code of 1986, as
amended.

     "Majority-Owned Affiliated Company" means a Affiliated Company in which the
Company owns, directly or indirectly, 50% or more of the of the voting stock or
capital on the date an Option is granted.

     "NSO" means a non-statutory stock option that does not constitute an ISO.

     "Options" means ISOs and NSOs granted under this Plan.

     "Retire" means to enter Retirement.

     "Retirement" means an employee's termination of employment by reason of
retirement.

Section 3. Options.
-------------------

     The Company may grant ISOs and NSOs to those persons meeting the
eligibility requirements in Section 6.

Section 4.  Administration.
--------------------------

     The Plan shall be administered by the Committee. No person, other than
members of the Committee, shall have any discretion concerning decisions
regarding the Plan. The Committee shall determine the key employees and
consultants of the Company and its Affiliated Companies (including officers,
whether or not they are directors) to whom, and the time or times at which,
Options will be granted; the number of shares to be subject to each Option; the
duration of each Option; the time or times within which the Option may be
exercised; the cancellation of the Option (with the consent of the holder
thereof); and the other conditions of the grant of the Option, at grant or while
outstanding, pursuant to the terms of the Plan. The provisions and conditions of
the Options need not be the same with respect to each optionee or with respect
to each Option.

     The Committee may, subject to the provisions of the Plan, establish such
rules and regulations as it deems necessary or advisable for the proper
administration of the Plan, and may make determinations and may take such other
action in connection with or in relation to the Plan as it deems necessary or
advisable. Each determination or other action made or taken pursuant to the
Plan, including interpretation of the Plan and the specific conditions and
provisions of the Options granted hereunder by the Committee, shall be final and
conclusive for all purposes and upon all persons including, but without
limitation, the Company, its Affiliated Companies, the Committee, the Board,
officers and the affected employees and consultants of the Company and/or its
Affiliated Companies, optionees and the respective successors in interest of any
of the foregoing.

                                       2
<PAGE>

Section 5.  Stock.
------------------

     The Common Stock to be issued, transferred and/or sold under the Plan shall
be made available from authorized and unissued Common Stock or from the
Company's treasury shares. The total number of shares of Common Stock that may
be issued or transferred under the Plan pursuant to Options granted thereunder
may not exceed 1,000,000 shares (subject to adjustment as described below). Such
number of shares shall be subject to adjustment in accordance with Section 11.
Common Stock subject to any unexercised portion of an Option which expires or is
canceled, surrendered or terminated for any reason may again be subject to
Options granted under the Plan.

Section 6. Eligibility.
-----------------------

     Options may be granted to employees and consultants of the Company and its
Majority-Owned Affiliated Companies. The Committee may grant Options to
particular employee(s) or consultants of an Affiliated Company who within the
past eighteen (18) months were employee(s) or consultants of the Company or a
Majority-Owned Affiliated Company, and in instances to be determined by the
Committee in its sole discretion, employees or consultants of an Affiliated
Company who have not been employees or consultants of the Company or a
Majority-Owned Affiliated Company within the past eighteen (18) months.

Section 7. Awards of Options.
-----------------------------

     Except as otherwise specifically provided in this Plan, Options granted
pursuant to the Plan shall be subject to the following terms and conditions:

          (a) Option Price. The option price shall be 100% of the fair market
value of the Common Stock on the date of grant. The fair market value of a share
of Common Stock shall be the closing market price at which a share of Common
Stock shall have been sold on the day preceding the date of grant, or on the
next preceding trading day if such date was not a trading date, as reported on
the NASDAQ National Market Consolidated Trading Listing or such other market as
the Company's Common Stock is regularly traded.

          (b) Payment. The option price shall be paid in full at the time of
exercise, except as provided in the next sentence. If an exercise is executed by
using the cashless method, the exercise price shall be paid in full no later
than the close of business on the fourth Business Day following the exercise.

     Payment may be in cash or, upon conditions established by the Committee, by
delivery of shares of Common Stock owned for at least six (6) months by the
optionee.

     The optionee, if a U.S. taxpayer, may elect to satisfy Federal, state and
local income tax liabilities due by reason of the exercise by the withholding of
shares of Common Stock.

     If shares are delivered to pay the option price or if shares are withheld
for U.S. taxpayers to satisfy such tax liabilities, the value of the shares
delivered or withheld shall be computed on the basis of the reported market
price at which a share of Common Stock most recently traded prior to the time
the exercise order was processed. Such price will be determined by reference to
the OTC Bulletin Board, the NASDAQ National Market Consolidated Trading or to
such other market on which the Company's Common Stock is regularly traded.

          (c) Exercise May Be Delayed Until Withholding is Satisfied. The
Company may refuse to exercise an Option if the optionee has not made
arrangements satisfactory to the Company to satisfy the tax withholding which
the Company determines is necessary to comply with applicable requirements.

          (d) Duration of Options. The duration of Options shall be determined
by the Committee, but in no event shall the duration of an ISO exceed ten (10)
years from the date of its grant or the duration of an NSO exceed fifteen (15)
years from the date of its grant.

          (e) Other Terms and Conditions. Options may contain such other
provisions, not inconsistent with the provisions of the Plan, as the Committee
shall determine appropriate from time to time, including vesting provisions;
provided, however, that, except in the event of a Change in Control or the
Disability or death of the optionee, no ISO Option shall be exercisable in whole
or in part for a period of twelve (12) months from the date on which the Option
is granted. The grant of an Option to any employee shall not affect in any way
the right of the Company and any Affiliated Company to terminate the employment
of the holder thereof.

                                       3

<PAGE>

     (f) ISOs. The Committee, with respect to each grant of an Option to an
optionee, shall determine whether such Option shall be an ISO, and, upon
determining that an Option shall be an ISO, shall designate it as such in the
written instrument evidencing such Option. If the written instrument evidencing
an Option does not contain a designation that it is an ISO, it shall not be an
ISO.

     The aggregate fair market value (determined in each instance on the date on
which an ISO is granted) of the Common Stock with respect to which ISOs are
first exercisable by any optionee in any calendar year shall not exceed $100,000
for such optionee. If any subsidiary or Majority-Owned Affiliated Company of the
Company shall adopt a stock option plan under which options constituting ISOs
may be granted, the fair market value of the stock on which any such incentive
stock options are granted and the times at which such incentive stock options
will first become exercisable shall be taken into account in determining the
maximum amount of ISOs which may be granted to the optionee under this Plan in
any calendar year.

          (g) 10% Shareholder. If any employee to whom an ISO is to be granted
under the Plan is, at the time of the grant of such option, the owner of stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company (after taking into account the attribution of stock
ownership rules of Section 425(d) of the Code), then the following special
provisions shall be applicable to the ISO granted to such individual:

               (i) The purchase price per share of the Common Stock subject to
such ISO shall not be less than 110% of the fair market value of one share of
Common Stock at the time of grant; and

               (ii) The option exercise period shall not exceed five years from
the date of grant.

Section 8.  Nontransferability of Option.
----------------------------------------

     No ISO granted pursuant to the Plan shall be transferable otherwise than by
will or by the laws of descent and distribution. During the lifetime of an
optionee, the ISO shall be exercisable only by the optionee personally or by the
Optionee's legal representative. Any NSO granted pursuant to the Plan shall be
transferrable to any member of such Optionee's "immediate family" (as such term
is defined in Rule 16a-1(c) promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended, or any
successor rule or regulation) or to a trust or family partnership whose
beneficiaries are members of such optionee's "immediate family" or to a
qualified charitable organization to which contributions are deductible for tax
purpose pursuant to Section 170 of the Internal Revenue Code of 1986, as
amended.

                                       4

<PAGE>

Section 9. Effect of Termination of Employment, Other Changes of Employment or
Employer Status, Death, Retirement or a Change in Control.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

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

                Event                              Impact on Vesting                 Impact on Exercise Period
--------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                                     <C>
Employment terminates upon Disability.   All options become immediately         Option expiration date provided in
                                         vested.                                grant continues to apply.
--------------------------------------------------------------------------------------------------------------------
Employment terminates upon Retirement.   Option held at least 12 full calendar  Option expiration date provided in
                                         months become immediately vested;      grant continues to apply.
                                         options held less than 12 full
                                         calendar months are forfeited.
--------------------------------------------------------------------------------------------------------------------
Employment terminates upon death.        All options become immediately         Right of executor, administrator of
                                         vested.                                estate (or other transferee
                                                                                permitted by Section 8) terminates on
                                                                                earlier of (1) 12 months from the
                                                                                date of death, or (2) the expiration
                                                                                date provided in the Option.
--------------------------------------------------------------------------------------------------------------------
Employment terminates upon Change in     All options become immediately         Option expiration date provided in
Control.                                 vested.                                grant continues to apply.
--------------------------------------------------------------------------------------------------------------------
Termination of employment for other      Unvested options are forfeited.        Expires upon earlier of 3 months
reasons (Optionees should be aware                                              from termination date or option
that the receipt of severance does not                                          expiration date provided in grant.
extend their termination date).
--------------------------------------------------------------------------------------------------------------------
US military leave.                       Vesting continues during leave.        Option expiration date provided in
                                                                                grant continues to apply.
--------------------------------------------------------------------------------------------------------------------
Eleemosynary service.                    Committee's discretion.                Committee's discretion.
--------------------------------------------------------------------------------------------------------------------
US FMLA leave of absence.                Vesting continues during leave.        Option expiration date provided in
                                                                                grant continues to apply.
--------------------------------------------------------------------------------------------------------------------
Company investment in optionee's         Unvested options are forfeited.        Expires upon earlier of 3 months
employer falls under 20% (this                                                  from  termination date or option
constitutes a termination of                                                    expiration date provided in grant.
employment under the Plan, effective
the date the investment falls below
20%)
               OR
employment is transferred to an entity
in which the Company's ownership
interest is less than 20%.
--------------------------------------------------------------------------------------------------------------------
Employment transferred to Affiliated     Vesting continues after transfer.      Option expiration date provided in
Company.                                                                        grant continues to apply.
--------------------------------------------------------------------------------------------------------------------
Death after employment has terminated    Not applicable.                        Right of Executor, administrator of
but before option has expired (note                                             estate (or other  transferee
that termination of employment may                                              permitted by Section 8) terminates
have resulted in a change to the                                                on earlier of (1) 12 months from
original option expiration date                                                 the date of death, or (2) the
provided in the grant).                                                         Option expiration that applied at
                                                                                the date of death (Note that
                                                                                termination of employment may have
                                                                                resulted in a change to the original
                                                                                option expiration date provided in
                                                                                the grant).

--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                                             5
<PAGE>

     In the case of other leaves of absence not specified above, optionees will
be deemed to have terminated employment (so that options unvested will expire
and the option exercise period will end on the earlier of 6 months from the date
the leave began or the option expiration date provided in the grant), unless the
Committee identifies a valid business interest in doing otherwise in which case
it may specify what provisions it deems appropriate in its sole discretion;
provided that the Committee shall have no obligation to consider any such
matters.

     Notwithstanding the foregoing provisions, the Committee may, in its sole
discretion, establish different terms and conditions pertaining to the effect of
an optionee's termination on the expiration or exercisability of Options at the
time of grant or (with the consent of the affected optionee) outstanding
Options. However, no Option can have a term of more than fifteen years.

Section 10. No Rights as a Share Owner.
---------------------------------------

     An optionee or a transferee of an optionee pursuant to Section 8 shall have
no right as a share owner with respect to any Common Stock covered by an Option
or receivable upon the exercise of an Option until the optionee or transferee
shall have become the holder of record of such Common Stock and no adjustments
shall be made for dividends in cash or other property or other distributions or
rights in respect to such Common Stock for which the record date is prior to the
date on which the optionee or transferee shall have in fact become the holder of
record of the share of Common Stock acquired pursuant to the Option.

Section 11.  Adjustment in the Number of Shares and in Option Price.
-------------------------------------------------------------------

     In the event there is any change in the shares of Common Stock through the
declaration of stock dividends, or stock splits or through recapitalization or
merger or consolidation or combination of shares or spin-offs or otherwise, the
Committee or the Board shall make such adjustment, if any, as it may deem
appropriate in the number of shares of Common Stock available for Options as
well as the number of shares of Common Stock subject to any outstanding Option
and the option price thereof. Any such adjustment may provide for the
elimination of any fractional shares which might otherwise become subject to any
Option without payment therefor.

Section 12.  Cancellation And New Grant of Options.
--------------------------------------------------

     The Board shall have the authority to effect, at any time and from time to
time, with the consent of the affected Optionees, the cancellation of any or all
outstanding options under the Plan and the grant in substitution therefor of new
options under the Plan covering the same or different numbers of shares of
Common Stock having an option exercise price per share which may be lower or
higher than the exercise price per share of the cancelled options.

Section 13. Regulatory Compliance and Listing.
----------------------------------------------

     The delivery of any shares issuable upon exercise of an Option granted
under the Plan may be postponed by the Company for such period as may be
required to comply with any applicable requirements under the Federal or State
securities laws, any applicable listing or other requirements of any national
securities exchange and requirements under any other law or regulation
applicable to the delivery of such shares, and the Company shall not be
obligated to deliver any such shares under the Plan if such delivery shall
constitute a violation of any provision of any law or of any regulation of any
governmental authority or any national securities exchange. In addition, the
shares when delivered may be subject to conditions, including transfer
restrictions, if required to comply with applicable securities law.

                                       6

<PAGE>

Section 14. Amendments, Modifications and Termination of the Plan.
-----------------------------------------------------------------

     The Board or the Committee may terminate the Plan at any time. From time to
time, the Board or the Committee may suspend the Plan, in whole or in part. From
time to time, the Board or the Committee may amend the Plan, in whole or in
part, including the adoption of amendments deemed necessary or desirable to
qualify the Options under the laws of various countries (including tax laws) and
under rules and regulations promulgated by the Securities and Exchange
Commission with respect to employees who are subject to the provisions of
Section 16 of the 1934 Act, or to correct any defect or supply an omission or
reconcile any inconsistency in the Plan or in any Option granted thereunder, or
for any other purpose or to any effect permitted by applicable laws and
regulations, without the approval of the share owners of the Company. However,
in no event may additional shares of Common Stock be allocated to the Plan
without shareholder approval. Without limiting the foregoing, the Board of
Directors or the Committee may make amendments applicable or inapplicable only
to participants who are subject to Section 16 of the 1934 Act.

     No amendment or termination or modification of the Plan shall in any manner
affect any Option theretofore granted without the consent of the optionee,
except that the Committee may amend or modify the Plan in a manner that does
affect Options theretofore granted upon a finding by the Committee that such
amendment or modification is in the best interest of holders of outstanding
Options affected thereby. Grants of ISOs may be made under this Plan until ten
years from the Effective Date or such earlier date as this Plan is terminated,
and grants of NSOs may be made until all of the shares of Common Stock
authorized for issuance hereunder (adjusted as provided in Section 11) have been
issued or until this Plan is terminated, whichever first occurs. The Plan shall
terminate when there are no longer Options outstanding under the Plan, unless
earlier terminated by the Board or by the Committee. Absent the occurrence of
any of the foregoing events, the Plan shall terminate upon the close of business
on the day next preceding the tenth anniversary of the date of its adoption by
the Board of Directors.

Section 15. Governing Law.
--------------------------

     The Plan and all determinations made and actions taken pursuant thereto
shall be governed by the laws of the State of Delaware and construed in
accordance therewith.

Section 16.  Effective Date.
---------------------------

     The Plan shall become effective when adopted by the Board of Directors, but
no ISO granted under the Plan shall become exercisable unless and until the Plan
shall have been approved by the Company's shareholders. If such shareholder
approval is not obtained within twelve months after the date of the Board's
adoption of the Plan, any ISO's previously granted under the Plan shall
terminate and no further ISO shall be granted. Amendments to the Plan not
requiring shareholder approval shall become effective when adopted by the Board
of Directors; amendments requiring shareholder approval (as provided in Section
12) shall become effective when adopted by the Board of Directors, but no ISO
issued after the date of such amendment shall become exercisable (to the extent
that such amendment to the Plan was required to enable the Company to grant such
ISO to a particular optionee) unless and until such amendment shall have been
approved by the Company's shareholders. If such shareholder approval is not
obtained within twelve months of the Board's adoption of such amendment, any
ISO's granted on or after the date of such amendment shall terminate to the
extent that such amendment to the Plan was required to enable the Company to
grant such option to a particular optionee. Subject to this limitation, Options
may be granted under the Plan at any time after the effective date and before
the date fixed for termination of the Plan.

                                Adopted by the Board of Directors

                                January 24, 2000

                                       7Exhibit (10)(b)

                           KAPUALA ACQUISITIONS, INC.

                      1995 NONQUALIFYING STOCK OPTION PLAN

                                    ARTICLE I
                                 Purpose of Plan

     This 1995 NONQUALIFYING STOCK OPTION PLAN (the "Plan") of KAPUALA
ACQUISITIONS, INC. (the "Company") for persons employed or associated with the
Company, including without limitation any employee, director, general partner,
officer, attorney, accountant, consultant or advisor, is intended to advance the
best interests of the Company by providing additional incentive to those persons
who have a substantial responsibility for its management, affairs, and growth by
increasing their proprietary interest in the success of the Company, thereby
encouraging them to maintain their relationships with the Company). Further, the
availability and offering of Stock Options under the Plan supports and increases
the Company's ability to attract, engage and retain individuals of exceptional
talent upon whom, in large measure, the sustained progress growth and
profitability of the Company for the shareholders depends.

                                   ARTICLE 11
                                   Definitions

     For Plan purposes, except where the context might clearly indicate
otherwise, the following terms shall have the meanings set forth below:

          "Board" shall mean the Board of Directors of the Company.

          "Code" shall mean the Internal Revenue Code of 1986, as amended, and
the rules and regulations promulgated thereunder.

          "Committee" shall mean the Compensation Committee, or such other
committee appointed by the Board, which shall be designated by the Board to
administer the Plan. The Company shall be composed of two or more persons as
from time to time are appointed to serve by the Board and may be members of the
Board.

          "Committee Shares" shall mean the Company's Common Shares no par value
per share, or, in the event that the outstanding Common Shares are hereafter
changed into or exchanged for different shares or securities of the Company,
such other shares or securities.

          "Company" shall mean Kapuala Acquisitions, Inc., a Colorado
corporation, and any parent or subsidiary corporation of Kapuala Acquisitions,
Inc., as such terms are defined in Section 425(e) and 425(f), respectively of
the Code.

          "Optionee" shall mean any person employed or associated with the
affairs of the Company who has been granted one or more Stock Options under the
Plan.

          "Stock Option" or "NQSO" shall mean a stock option granted pursuant to
the terms of the Plan.

          "Stock Option Agreement" shall mean the agreement between the Company
and the Optionee under which the Optionee may purchase Common Shares hereunder.

<PAGE>

                                   ARTICLE III
                           Administration of the Plan

          1. The Committee shall administer the plan and accordingly, it shall
have full power to grant Stock Options, construe and interpret the Plan,
establish rules and regulations and per-form all other acts, including the
delegation of administrative responsibilities, it believes reasonable and
proper.

          2. The determination of those eligible to receive Stock Options, and
the amount, price, type and timing of each Stock Option and the terms and
conditions of the respective stock option agreements shall rest in the sole
discretion of the Committee, subject to the provisions of the Plan.

          3. The Committee may cancel any Stock Options awarded under the Plan
if an Optionee conducts himself in a manner which the Committee determines to be
inimical to the best interest of the Company and its shareholders as set forth
more fully in paragraph 8 of Article X of the Plan.

          4. The Board, or the Committee, may correct any defect, supply any
omission or reconcile any inconsistency in the Plan or in any granted Stock
Option, in the Manner and to the extent it shall deem necessary to carry it into
effect.

          5. Any decision made, or action taken, by the Committee or the Board
arising out or in connection with the interpretation and administration of the
Plan shall be final and conclusive.

          6. Meetings of the Committee shall be held at such times and places as
shall be determined by the Committee. A majority of the members of the Committee
shall constitute a quorum for the transaction of business, and the vote of a
majority of those members present at any meeting shall decide any question
brought before that meeting. In addition, the Company may take any action
otherwise proper under the Plan by the affirmative vote, taken without a
meeting, of a majority of its members.

          7. No member of the Committee shall be liable for any act or omission
of any other member of the Committee or for any act or omission on his own part,
including, but not limited to, the exercise of any power or discretion given to
him under the Plan except those resulting form his own gross negligence or
willful misconduct.

<PAGE>

          8. The Company, through its management, shall supply full and timely
information to the Committee on all matters relating to the eligibility of
Optionees, their duties and performance, and current information on any
Optionee's death, retirement, disability or other termination of association
with the Company, and such other pertinent information as the Committee may
require. The Company shall furnish the Committee with such clerical and other
assistance as is necessary in the performance of its duties hereunder.

                                   ARTICLE IV
                           Shares Subject to the Plan

          1. The total number of shares of the Company available for grants of
Stock Options under the Plan shall be 2,000,000 Common Shares, subject to
adjustment as herein provided, which shares may be either authorized but
unissued or reacquired Common Shares of the Company.

          2. If a Stock Option or portion thereof shall expire or terminate for
any reason without having been exercised in full, the unpurchased shares covered
by such NQSO shall be available for future grants of Stock Options.

                                    ARTICLE V
                        Stock Option Terms and Conditions

          1. Consistent with the Plan's purpose, Stock Options may be granted to
any person who is performing or who has been engaged to perform services of
special importance to management in the operation, development and growth of the
Company.

          2. Determination of the option price per share for any stock option
issues hereunder shall rest in the sole and unfettered discretion of the
Committee.

          3. All Stock Options granted under the Plan shall be evidenced by
agreements which shall be subject to applicable provisions of the Plan, and such
other provisions as the Committee may adopt, including the provisions set forth
in paragraphs 2 through 11 of this Article V.

          4. All Stock Options granted hereunder must be granted within ten
years from the date this Plan is adopted.

          5. No Stock Option granted hereunder shall be exercisable after the
expiration of ten years from the date such NQSO is granted. The Committee, in
its discretion, may provide that an option shall be exercisable during such ten
year period or during any lesser period of time. The Committee may establish

<PAGE>

installment exercise terms for a Stock Option such that the NQSO becomes fully
exercisable in a series of cumulating portions. If an Optionee shall not, in any
given installment period, purchase all the Common Shares which such Optionee is
entitled to purchase within such installment period, such Optionee's right to
purchase any Common Shares not purchased in such installment period shall
continue until the expiration or sooner termination of such NQSO. The Committee
may also accelerate the exercise of any NQSO.

          6. A Stock Option, or portion thereof, shall be exercised by deliver
of (i) a written notice of exercise to the Company specifying the number of
Common Shares to be purchased, and (ii) payment of the full price of such Common
Shares, as fully set forth in paragraph 7 of this Article V.

               No NQSO or installment thereof shall be reusable except with
respect to whole shares, and fractional share interests shall be disregarded.
Not less than 100 Common Shares may be purchased at one time unless the number
purchased is the total number at the time available for purchase under the NQSO.
Until the Common Shares represented by all exercised NQSO are issued to an
Optionee, he shall have none of the rights of a shareholder.

          7. The exercise price of a Stock Option, or portion thereof, may be
paid:

               A. In United States dollars, in cash or by cashier's check,
          certified check, bank draft or money order, payable to the order of
          the Company in an amount equal to the option price; or,

               B. At the discretion of the Committee, through the delivery of
          fully paid and nonassessable Common Shares, with an aggregate fair
          market value (determined as the average of the highest and lowest
          reported sales prices on the Common Shares as of the date of exercise
          of the NQSO, as reported by such responsible reporting service as the
          Committee may select, or if there were not transactions in the Common
          Shares on such day, then the last preceding day on which transactions
          took place), as of the date of the NQSO exercise equal to the option
          price, provided such tendered shares, or any derivative security
          resulting in the issuance of Common Shares, have been owned by be
          Optionee for at least 30 days prior to such exercise; or,

               C. By a combination of both A and B above.

          The Committee shall determine acceptable methods for tendering Common
Shares as payment upon exercise of a Stock Option and may impose such
limitations and prohibitions on the use of Common Shares to exercise an NQSO as
it deems appropriate.

<PAGE>

          8. With the Optionee's consent, the Committee may cancel any Stock
Option issued under this Plan and issue a new NQSO to such Optionee.

          9. Except by will, the laws of descent and distribution, or with the
written consent of the Committee, no right or interest in any Stock Option
granted under the Plan shall be assignable or transferable, and no right or
interest of any Optionee shall be liable for, or subject to, any lien,
obligation or liability of the Optionee. Upon petition to, and thereafter with
the written consent of the Committee, an Optionee may assign or transfer all or
a portion of the Optionee's rights and interest in any stock option granted
hereunder. Stock Options shall be exercisable during the Optionee's lifetime
only by the Optionee or assignees, or the duly appointed legal representative of
an incompetent Optionee, including following all assignment consented to by the
Committee herein.

          10. No NQSO shall be exercisable while there is outstanding any other
NQSO which was granted to the Optionee before the grant of such option under the
Plan or any other plan which gives the right to the Optionee to purchase stock
in the Company or in a corporation which is a parent corporation (as defined in
Section 425(e) of the Code) of the Company, or any predecessor corporation of
any of such corporations at the time of the grant. An NQSO shall be treated as
outstanding until it is either exercised in full or expires by reason of lapse
of time.

          11. Any Optionee who disposes of Common Shares acquired on the
exercise of a NQSO by sale or exchange either (i) within two years after the
date of the grant of the NQSO under which the stock was acquired, or (ii) within
one year after the acquisition of such Shares, shall notify the Company of such
disposition and of the amount realized upon such disposition. The transfer of
Common Shares may also be restricted by applicable provisions of the Securities
Act of 1933, as amended.

                                   ARTICLE VI
                    Adjustments or Changes in Capitalization

1. In the event that the outstanding Common Shares of the Company are hereafter
changed into or exchanged for a different number of kinds of shares or other
securities of the Company by reason of merger, consolidation, other
reorganization, recapitalization, reclassification, combination of shares, stock
split-up or stock dividend:

               A. Prompt, proportionate, equitable, lawful and adequate
          adjustment shall be made of the aggregate number and kind of shares
          subject to Stock Options which may be granted under the Plan, such
          that the Optionee shall have the right to purchase such Common Shares
          as may be issued in exchange for the Common Shares purchasable on
          exercise of the NQSO had such merger, consolidation, other
          reorganization, recapitalization, reclassification, combination of
          shares, stock split-up or stock dividend not taken place;

<PAGE>

               B. Rights under unexercised Stock Options or portions thereof
          granted prior to any such change, both as to the number or kind of
          shares and the exercise price per share, shall be adjusted
          appropriately, provided that such adjustments shall be made without
          change in the total exercise price applicable to the unexercised
          portion of such NQSO's but by an adjustment in the price for each
          share covered by such NQSO'S; or,

               C. Upon any dissolution or liquidation of the Company or any
          merger or combination in which the Company is not a surviving
          corporation, each outstanding Stock Option granted hereunder shall
          terminate, but the Optionee shall have the right, immediately prior to
          such dissolution, liquidation, merger or combination, to exercise his
          NQSO in whole or in part, to the extent that it shall not have been
          exercised, without regard to any installment exercise provisions in
          such NQSO.

          2. The foregoing adjustment and the manner of application of the
foregoing provisions shall be determined solely by the Committee, whose'
determination as to what adjustments shall be made and the extent thereof, shall
be final, binding and conclusive. No fractional Shares shall be issued under the
Plan on account of any such adjustments.

                                   ARTICLE VII
                      Merger, Consolidation or Tender Offer

          1. If the Company shall be a party to a binding agreement to any
merger, consolidation or reorganization or sale of substantially all the assets
of the Company, each outstanding Stock Option shall pertain and apply to the
securities and/or property which a shareholder of the number of Common Shares of
the Company subject to the NQSO would be entitled to receive pursuant to such
merger, consolidation or reorganization or sale of assets.

          2. In the event that:

               A. Any person other than the Company shall acquire more thin 20%
          of the Common Shares of the Company through a tender offer, exchange
          offer or otherwise;

               B. A change in the "control" of the Company occurs, as such ten-n
          is defined in Rule 405 under the Securities Act of 1933;

               C. There shall be a sale of all or substantially all of the
          assets of the Company;

<PAGE>

any then outstanding Stock Option held by an Optionee, who is deemed by the
Committee to be a statutory officer ("insider") for purposes of Section 16 of
the Securities Exchange Act of' 1934 shall be entitled to receive, subject to
any action by the Committee revoking such all entitlement as provided for below,
in lieu of exercise of such Stock Option, to the extent that it is then
exercisable, a cash payment in an amount equal to the difference between the
aggregate exercise price of such NQSO, or portion thereof, and, (i) in the event
of an offer or similar event, the filial offer price per share paid for Common
Shares, or such lower price as the Committee may determine to conform an option
to preserve its Stock Option status, times the number of Common Shares covered
by the NQSO or portion thereof, or (ii) in the case of all event covered by B or
C above, the aggregate fair market value of the Common Shares covered by the
Stock Option, as determined by the Committee at such time.

          3. Any payment which the Company is required to make pursuant to
paragraph 2 of this Article VII, shall be made within 15 business days,
following the event which results in the Optionee's right to such payment. In
the event of a tender offer in which fewer than all the shares which are
validity tendered in compliance with such offer are purchased or exchanged, then
only that portion of the shares covered by all NQSA as results from multiplying
such shares by a fraction, the numerator of which is the number of Common Shares
acquired purchase to the offer and the denominator of which is the number of
Common Shares tendered in compliance with such offer, shall be used to determine
the payment thereupon. To the extent that all or any portion of a Stock Option
shall be affected by this provision, all or such portion of the NQSO shall be
terminated.

          4. Notwithstanding paragraphs I and 3 of this Article VII, the Company
may, by unanimous vote and resolution, unilaterally revoke the benefits of the
above provisions; provided, however, that such vote is taken no later than tell
business days following public announcement of the intent of an offer of the
change of control, whichever occurs earlier.

                                  ARTICLE VIII
                        Amendment and Termination of Plan

          1. The Board may at any time, and from time to time, suspend or
terminate the Plan in whole or in part or amend it from time to time in such
respects as the Board may deem appropriate and in the best interest of the
Company.

          2. No amendment, suspension or termination of this Plan shall, without
the Optionee's consent, alter or impair any of the rights or obligations under
any Stock Option theretofore granted to him under the Plan.

          3. The Board may amend the Plan, subject to the limitations cited
above, ill such manner as it deems necessary to permit the granting of Stock
Options meeting the requirements of future amendments or issued regulations, if
any, to the Code.

<PAGE>

          4. No NQSO may be granted during any suspension of the Plan or after
termination of the Plan.

                                   ARTICLE IX
                        Government and Other Regulations

          The obligation of the Company to issue, transfer and deliver Common
Shares for Stock Options exercised under the Plan shall be subject to all
applicable laws, regulations, rules, orders and approval which shall then be in
effect and required by the relevant stock exchanges on which the Common Shares
are traded and by government entities as set forth below or as the Committee in
its sole discretion shall deem necessary or advisable. Specifically, in
connection with the Securities Act of 1933, as amended, upon exercise of any
Stock Option, the Company shall not be required to issue Common Shares unless
the Committee has received evidence satisfactory to it to the effect that the
Optionee will not transfer such shares except pursuant to a registration
statement in effect under such Act or unless an opinion of counsel satisfactory
to the Company has been received by the Company to the effect that such
registration is not required. Any determination in this connection by the
Committee shall be final, binding and conclusive. The Company may, but shall in
no event be obligated to take any other affirmative action in order to cause the
exercise of a Stock Option or the issuance of Common Shares purchase thereto to
comply with any law or regulation of any government authority.

                                    ARTICLE X
                            Miscellaneous Provisions

          1. No person shall have any claim or right to be granted a Stock
Option tender the Plan, and the grant of an NQSO under the Plan shall not be
construed as giving an Optionee the right to be retained by the Company.
Furthermore, the Company expressly reserves the right it ally hills to terminate
its relationship with an Optionee with or without cause, free from any
liability, or any claim under the Plan, except as provided herein, in an option
agreement, or in any agreement between the Company and the Optionee.

          2. Any expenses of administering this Plan shall be borne by the
Company.

          3. The payment received from Optionee from the exercise of Stock
Options trader the Plan shall be used for the general corporate purposes of the
Company.

          4. The place of administration of the Plan shall be in the State of
Texas, and the validity, contraction, interpretation, administration and effect
of the Plan and its rules and regulations, and rights relating to the Plan,
shall be determined solely in accordance with the laws of the State of Colorado.

<PAGE>

          5. Without amending the Plan, grants may be made to persons who are
foreign nationals or employed outside the United States, or both, on such terms
and conditions. consistent with the Plan's purpose, different from those
specified in the Plan as may, in the judgment of the Committee, be necessary or
desirable to create equitable opportunities given differences in tax laws in
other countries.

          6. In addition to such other rights of indemnification as they may
have as members of the Board or Committee, the members of the Committee shall be
indemnified by the Company against all costs and expenses reasonably incurred by
them in connection with any actions suite or proceeding to which they or any of
them may be party by reason of any action taken or failure to act under or in
connection with the Plan or any Stock Option granted thereunder, an against ill
amount paid by them in settlement thereof (provided such settlement is approved
by independent legal Counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except a
judgment based upon a finding of bad faith; provided that upon the institution
of any such action, suit or proceeding a Committee member shall in writing, give
the Company notice thereof and an opportunity, at its own expense, to handle and
defend the same before steel) Committee member undertakes to handle and defend
it on his own behalf.

          7. Stock Options may be granted under this Plan form time to time, ill
substitution for stock options held by employees of other corporations who are
about to become employees of the Company as the result of a merger or
consolidation of the employing corporation with the Company or the acquisition
by the Company of the assets of the employing corporation or the acquisition by
the Company of stock of the employing corporation as a result of which it become
a subsidiary of the Company. The terms and conditions of such substitute stock
options so granted my vary from the terms and conditions set forth in this Plan
to Such extent as the Board of Director of the Company at the time of grant may
deem appropriate to conform, in whole, or in part, to the provisions of the
stock options in substitution for which they are granted, but no such variations
shall be such as to affect the status of any such Substitute stock options as a
stock option under Section 422A of the Code.

          8. Notwithstanding anything to the contrary in the Plan, if the
Committee finds by a majority vote, after full consideration of the facts
presented on behalf of both the Company the Optionee, that the Optionee has been
engaged in fraud, embezzlement, theft, commission of a felony or proven
dishonesty in the course of his association with the Company or any subsidiary
corporation which damaged the Company or any subsidiary corporation, or (or
disclosing trade secrets of the Company or any subsidiary corporation, the
Optionee shall forfeit all unexercised Stock Options and all exercised NQSO's
under which the Company has not yet delivered the certificates and which have
been earlier granted the Optionee by the Committee. The decision of the
Committee as to the case of an Optionee's discharge and the damage done to the
Company shall be final. No decision of the Committee, however, shall affect the
finality of the discharge of such Optionee by the Company or any subsidiary
corporation in ally Clarifier. Further, if Optionee voluntarily terminates
employment with the Company, the Optionee shall forfeit all unexercised stock
options.

<PAGE>

                                   ARTICLE XI
                                Written Agreement

Each Stock Option granted hereunder shall be embodied in a written Stock Option
Agreement which shall be subject to the terms and conditions prescribed above
and shall be subject to the terms and conditions prescribed above and shall be
signed by the Optionee and by the President or any Vice President of the
Company, for and in the name and on behalf of the Company. Such Stock Option
Agreement shall contain such other provisions as the Committee, in its
discretion shall deem advisable.

                                   ARTICLE XII
                                 Effective Date

This Plan shall become unconditionally effective as of the effective date of
approval of the Plan by the Board of Directors of the Company. No Stock Option
may be granted later than ten (10) years from the effective date of the Plan;
provided, however, that the Plan and all outstanding Stock Options shall remain
in effect until such NQSO's have expired or until such options are cancelled.

<PAGE>

Number of Shares:                                  Date of Grant:
                  ------------                                    --------------

                      NON QUALIFYING STOCK OPTION AGREEMENT

          AGREEMENT made this ________ day of __________ 19 _____, between
____________________ (the "Optionee"), and Kapuala Acquisitions, Inc., a
Colorado Corporation (the "Company").

          1. Grant of Option. The Company, pursuant to the provisions of the
Kapuala Acquisitions, Inc. 1995 Nonqualifying Stock Option Plan (the "1995
Plan"), set forth as Attachment A hereto, hereby grants to the Optionee, subject
to the terms and conditions set forth or incorporated herein, an Option and
Purchase from the Company all or any part of an aggregate of Common Shares, as
such Common Shares are now constituted, at the purchase price of $ per share.
The provisions of the 1995 Plan governing the terms and conditions of the Option
granted hereby are incorporated in full herein by reference.

          2. Exercise. The Option evidenced hereby shall be exercisable in whole
or in part (but only in multiples of 100 Shares unless such exercise is as to
the remaining balance of this Option) on or after and on or before_________
provided that the cumulative number of Common Shares as to which this Option may
be (except as provided in paragraph I of Article VI of this 1995 Plan) shall not
exceed the following amounts:

             Cumulative Number                         Prior to Date
             of Shares                               (Not inclusive of)
             ---------                               ------------------

The Option evidenced hereby shall be exercisable by the deliver to and receipt
by the Company of (i) a written notice of election to exercise, in the form set
forth in Attachment B hereto, specifying the number of shares to be purchased;
(ii) accompanied by payment of the full purchase price thereof in case or
certified check payable to the order of the Company, or by fully-paid and
nonassessable Common Shares of the Company properly endorsed over to the
Company, or by a combination thereof; and, (iii) by return of this Stock Option
Agreement for endorsement of exercise by the Company on Schedule I hereof. In
the event fully paid and nonassessable Common Shares are submitted as whole or
partial payment for Shares to be purchased hereunder, such Common Shares will be
valued at their Fair Market Value (as (Inclined in the 1995 Plan) on the date
such Shares are received by the Company and applied to payment of the exercise
price.

<PAGE>

          3. Transferabilitv. The Option evidenced hereby is NOT assignable on
transferable by the Optionee other than by the Optionee's will, by the laws of
descent and distribution, as provided in paragraph 9 of Article V of the 1995
Plan. The Option shall be exercisable only by the Optionee during his lifetime.

                                      KAPUALA ACQUISITIONS, INC.

                                      BY:
                                           -------------------------------------
                                           Joseph F. Longo, President
ATTEST:
----------------
Secretary

          Optionee hereby acknowledges receipt of a copy of the 1995 Plan,
attached hereto and accepts this Option subject to each and every term and
provision of such Plan. Optionee hereby agrees to accept as binding, conclusive
and final, all decisions or interpretations of the Compensation Committee of the
Board of Directors administering the 1995 Plan on any questions arising under
such Plan. Optionee recognizes that if Optionee's employment with the Company or
any subsidiary thereof shall be terminated with cause, or by the Optionee, all
of the Optionee's rights hereunder shall thereupon terminate; and that, pursuant
to paragraph 10 of Article V of the 1995 Plan, this Option may not be exercised
while there is outstanding to Optionee any unexercised Stock Option, granted to
Optionee before the date of grant of this Option, to purchase Common Shares of
the Company or any parent or Subsidiary thereof.

Dated:
        --------------------------------

Optionee
         -------------------------------

Type or Print Name
                   ---------------------
Address
        --------------------------------

Social Security No.
                   ---------------------

<PAGE>

                                  Attachment B

                    (Suggested form of letter to be used for
                     notification of election to exercise.)

                                                     Date:
Secretary,

KAPUALA ACQUISITIONS, INC.
79 Old Ridgefield Road
Wilton, Connecticut 06897

Dear Sir:

          In accordance with paragraph 2 of the Nonqualifying Stock Option
          Agreement evidencing the Option granted to me on under the Kapuala
          Acquisitions, Inc. 1995 Nonqualifying Stock Option Plan, I hereby
          elect to exercise this Option to the extent of __________ Common
          Shares.

          Enclosed are (i) Certificate(s) No.(s) representing fully-paid Common
          Shares of Kapuala Acquisitions, Inc. endorsed to the Company with
          signature guaranteed, and/or a certified check payable to the order of
          Kapuala Acquisitions, Inc. in the amount of $ as the balance of the
          purchase price of $ for the Shares which I have elected to purchase
          and (ii) the original Stock Option Agreement for endorsement by the
          Company as to exercise on Schedule I thereof. I acknowledge that the
          Common Shares (if any) submitted as part payment for the exercise
          price due hereunder will be valued by the Company at their Fair Market
          Value (as defined in the 1995 Plan) on the date this Option exercise
          is effected by the Company. In the event I hereafter sell any Common
          Shares issued pursuant to this option exercise within one year from
          the date of exercise or within two years after the date of grant of
          this Option, I agree to notify the Company promptly of the amount of
          taxable compensation realized by me by reason of such sale for federal
          income tax purposes.

          When the certificate for Common Shares which I have elected to
purchase has been issued, please deliver it to me, along with my endorsed Stock
Option Agreement in the event there remains an unexercised balance of Shares
under the Option, at the following address:

                  Signature of Optionee:
                                         ------------------------

                     Type or Print Name:
                                         ------------------------

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