Document:

EXHIBIT 10.8

                    AMERIMMUNE PHARMACEUTICALS, INC.
                           EXCHANGE AGREEMENT

     THIS EXCHANGE AGREEMENT (this "AGREEMENT") is made as of November 15,
2001, by and among Amerimmune Pharmaceuticals, Inc., a Colorado corporation
(the "COMPANY") whose address is 2325 Renaissance Drive, Las Vegas, Nevada
89119, and Rex H. Lewis, an individual whose address is c/o the Company,
2325 Renaissance Drive, Las Vegas, Nevada  89119 ("HOLDER"), with respect
to the following facts:

     A.   The Company has previously granted Holder options (collectively,
the "OPTION") to purchase up to 6,380,357 shares of Common Stock of the
Company ("COMMON STOCK") at an exercise price of  $0.22 per share pursuant
to the terms of two Stock Option Agreements, each having a grant date of
December 28, 2000 (the "OPTION AGREEMENTS").

     B.   The Company and Holder desire to enter into a transaction by
which Holder would agree to cancel the existing Option and any rights he
may have pursuant to the terms of the Option Agreements in exchange for a
Warrant to purchase up to 6,380,357 shares of Common Stock at an exercise
price of $0.22 per share pursuant to the terms of a Warrant Agreement in
the form of Exhibit A, attached hereto (the "WARRANT AGREEMENT").

     C.   The Company and Holder acknowledge and agree that (i) the value
of the Warrant (the "WARRANT VALUE") can be readily ascertained through the
application of recognized option and warrant valuation methods which
consider, among other things, (1) the value of the underlying Common Stock
based on the reported public trading price of the Common Stock, (2) the
probability of any increase or decrease in the value of the underlying
Common Stock, and (3) the term of the Warrant , and (ii) the Warrant Value,
as determined in good faith by the Company's Board of Directors based upon
established valuation methods, shall be treated as compensation to the
Holder.

          NOW, THEREFORE, for good and valuable consideration, the receipt
of which is hereby acknowledged, the parties hereto agree as follows:

          1.   CANCELLATION OF OPTION AND ISSUANCE OF WARRANT.

               1.1  CANCELLATION OF OPTION.   Subject to the terms of this
Agreement and issuance of the Warrant to the Holder pursuant to the terms
of this Agreement and the Warrant Agreement, simultaneously with the
execution of this Agreement (i) the Option shall be deemed canceled and of
no further force and effect , without exercise of any portion thereof, and
(ii) Holder shall be deemed to have automatically waived any rights that he
may have pursuant to the terms of the Option Agreements and (iii) Holder
shall deliver to the Company the original Option Agreements or, if either
of the Option Agreements has been lost or destroyed, a customary form of
acknowledgment and indemnity.

               1.2  ISSUANCE OF WARRANT.  Subject to the terms of this
Agreement and cancellation of the Option pursuant to the terms of Section
1.1 hereof, simultaneously with the execution of this Agreement, the
Company shall issue and deliver to Holder the Warrant as evidenced by the
Warrant Agreement.

               1.3  COMPENSATION TO HOLDER.  The disinterested members of
the Company's Board of Directors, after consideration of various factors,
including a recent independent valuation of warrants having comparable
terms, has determined that the aggregate Warrant Value equals $127,607.14
(e.g. $.02 per Warrant Share, as defined below).  Holder and the Company
acknowledge and agree that upon issuance of the Warrant, such aggregate
Warrant Value shall be treated as W-2 compensation to the Holder.

                                   -1-
<PAGE>
               1.4  WAIVER OF ANTI-DILUTION ADJUSTMENTS.  To the extent
that the issuance of this Warrant or the Warrant Shares (as defined below)
would trigger an adjustment in the number of shares or exercise price
pursuant to the anti-dilution provisions of any currently outstanding
warrant issued to Holder or his affiliates, including Maya, LLC, any
adjustment(s) that would otherwise result from the transactions
contemplated hereby or the issuance of the Warrant or the Warrant Shares,
are hereby waived by Holder and his affiliates.  Nothing herein shall be
deemed a waiver of any anti-dilution rights that the Holder or his
affiliates may have as a result of any transactions other than the issuance
of this Warrant or the Warrant Shares contemplated hereby.

          2.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to Holder as follows:

               2.1  ORGANIZATION, GOOD STANDING AND QUALIFICATION. The
Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Colorado and has all requisite
corporate power and authority to carry on its business as now conducted and
as proposed to be conducted.

               2.2  AUTHORIZATION. All corporate action on the part of the
Company, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement, the performance of
all obligations of the Company hereunder, and the authorization, issuance
(or reservation for issuance), sale and delivery of the Warrant being
issued hereunder, including the approval of this transaction by a majority
of the disinterested members of the Board of Directors of the Company, has
been taken, and this Agreement constitutes a valid and legally binding
obligation of the Company, enforceable in accordance with its terms, except
(i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of
creditors' rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief, or other equitable
remedies.   The Company has all requisite legal and corporate power and
authority to execute and deliver this Agreement, to issue the Warrant, to
issue the Common Stock upon exercise of the Warrant and to carry out and
perform its obligations under the terms of the Agreement.

               2.3  VALID ISSUANCE OF WARRANT. The Warrant, when issued,
sold and delivered in accordance with the terms of this Agreement for the
consideration expressed herein, will be duly and validly issued, fully paid
and will be free of restrictions on transfer other than restrictions on
transfer under applicable state and federal securities laws.  The shares of
Common Stock issuable upon exercise of the Warrant (the "WARRANT SHARES"),
when issued upon exercise of the Warrant, will be duly and validly issued,
fully paid and will be free of restrictions on transfer other than
restrictions on transfer under applicable state and federal securities
laws.

          3.   REPRESENTATIONS AND WARRANTIES OF HOLDER.  The Holder hereby
represents and Warrants that:

               3.1  AUTHORIZATION.  The Holder has full power and authority
to enter into this Agreement, and the Agreement constitutes his valid and
legally binding obligation, enforceable in accordance with its terms except
(i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of
creditors' rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief, or other equitable
remedies.

               3.2  ACCREDITED INVESTOR. The Holder is an "accredited
investor" within the meaning of Securities and Exchange Commission ("SEC")
Rule 501 of Regulation D, as presently in effect.

                                   -2-
<PAGE>
               3.3  SECURITIES LAWS.  Holder understands that the Warrant
and the Warrant Shares into which the Warrants are exercisable are
characterized as "restricted securities" under federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable
regulations such securities may not be resold without registration under
the Act or pursuant to an exemption from such registration.

               3.4  LEGENDS.  It is understood that the certificates
evidencing any Warrant Shares issued upon exercise of a Warrant shall bear
such legends as may be required under applicable law, including the
following legend:

          "These securities have not been registered under the Securities
Act of 1933, as amended. They may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with
respect to the securities under such Act and applicable state law or an
opinion of counsel satisfactory to the Company that such registration is
not required."

               3.5  OWNERSHIP OF OPTION.   The Holder is the owner of the
Option and any rights pursuant to the Option Agreements free and clear of
any and all claims, liens, encumbrances or security interests.  The Holder
has not transferred, hypothecated or otherwise assigned or agreed to
transfer, hypothecate or otherwise assign, any interest in and to the
Option, the Option Agreements or any shares of Common Stock issuable upon
exercise of the Option.

          4.   MISCELLANEOUS.

               4.1  SURVIVAL.  The warranties, representations and
covenants of the Company and the Holder contained in or made pursuant to
this Agreement shall survive the execution and delivery of this Agreement.

               4.2  SUCCESSORS AND ASSIGNS.  Subject to any restrictions
under applicable securities laws, the Holder shall have the right to
transfer or assign his rights hereunder without the consent of the Company.
Except as otherwise provided herein, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties (including transferees of the Warrant
or Warrant Shares). Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

               4.3  GOVERNING LAW. This Agreement shall be governed by and
construed under the laws of the State of Nevada as applied to agreements
among Nevada residents entered into and to be performed entirely within
Nevada; provided, however, that the Colorado Business Corporation Act shall
govern with respect to the matters of corporate law.

               4.4  COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

               4.5  TITLES AND SUBTITLES. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

               4.6  NOTICES. Unless otherwise provided, any notice required
or permitted under this Agreement shall be given in writing and shall be
deemed effectively given upon delivery by overnight mail, personal delivery
to the party to be notified, or upon deposit with the United States Post
Office, by registered or certified mail, postage prepaid and addressed to
the party to be notified at the address indicated for such party on the
signature page hereof, or at such other address as such party may designate
by ten (10) days' advance written notice to the other parties.

                                   -3-
<PAGE>
               4.7  EXPENSES.  The Company shall pay all costs and expenses
that it incurs with respect to the negotiation, execution, delivery and
performance of this Agreement.  If any action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to reasonable attorneys' fees, costs and
necessary disbursements in addition to any other relief to which such party
may be entitled.

               4.8  AMENDMENTS AND WAIVERS. Any term of this Agreement may
be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the parties to this
Agreement.

               4.9  SEVERABILITY. If one or more provisions of this
Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of the Agreement
shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

               4.10 ENTIRE AGREEMENT. This Agreement and the documents
referred to herein constitute the entire agreement among the parties and no
party shall be liable or bound to any other party in any manner by any
warranties, representations, or covenants except as specifically set forth
herein or therein.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

AMERIMMUNE PHARMACEUTICALS, INC.,
a Colorado corporation

By: ______________________________      __________________________________
     O.B. Parrish, Chairman                  REX H. LEWIS

                                        MAYA, LLC, a Nevada limited
                                        liability company (solely with
                                        respect to Section 1.4 of this
                                        Agreement)

                                        By:_____________________________

                                        Name: __________________________

                                        Title: _________________________

                                   -4-
<PAGE>
                                EXHIBIT A

                             FORM OF WARRANT
                             ---------------

See attached form of Warrant

                                   -5-
<PAGE>
THIS WARRANT AND THE SHARES OF COMMON STOCK PURCHASABLE HEREUNDER HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  SUCH WARRANTS AND SHARES
MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED OR HYPOTHECATED IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH
SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.

                                 WARRANT
                          TO PURCHASE SHARES OF
                             COMMON STOCK OF
                    AMERIMMUNE PHARMACEUTICALS, INC.

                                                  Dated November 15, 2001

HOLDER: REX H. LEWIS

NUMBER OF SHARES: 6,380,357

     THIS CERTIFIES THAT, for good and valuable consideration, the above
referenced holder ("Holder"), or its assigns, is entitled to subscribe for
and purchase from AMERIMMUNE PHARMACEUTICALS, INC., a Colorado corporation
(the "Company"), at any time commencing on the date of this Warrant and
ending at the close of business ten (10) years from the date of issuance,
the number of fully paid and nonassessable shares of the Common Stock of
the Company set forth above at an exercise price of twenty-two cents
($0.22) per share (the "Warrant Exercise Price"), subject to the adjustment
provisions of Sections 5 and 6 of this Warrant.   The shares which may be
acquired upon exercise of this Warrant are referred to herein as the
"Warrant Shares." As used herein, the term "Holder" includes any party who
acquires all or a part of this Warrant as a transferee of Holder; the term
"Common Stock" means and includes the Company's presently authorized Common
Stock, $0.05 par value.

     This Warrant is issued in accordance with the terms of that certain
Exchange Agreement between Holder and the Company of even date herewith and
is subject to the following provisions, terms and conditions:

     1.   EXERCISE; TRANSFERABILITY.

          (a)  The rights represented by this Warrant may be exercised by
the Holder hereof, in whole or in part (but not as to any fractional shares
of Common Stock), by written notice of exercise (in the form attached
hereto) delivered to the Company at the principal office of the Company
prior to the expiration of this Warrant and accompanied or preceded by the
surrender of this Warrant along with

<PAGE>
payment of the Warrant Exercise Price for such shares (i) in cash, by check
or by wire transfer of federal funds, (ii) on a cashless basis in
accordance with the provisions of Section 11 of this Warrant, or (iii) by
a combination of the methods specified in clauses (a) and (b).
Notwithstanding the foregoing, the Company, in its sole discretion, may
extend and maintain, or arrange for the extension and maintenance of,
credit to the Holder to finance payment of the purchase price on such terms
as may be approved by the Board of Directors of the Company.

     2.   EXCHANGE AND REPLACEMENT.  Subject to Sections 1 and 9 hereof,
this Warrant is exchangeable upon the surrender hereof by the Holder to the
Company at its office for new Warrants of like tenor and date representing
in the aggregate the right to purchase the number of Warrant Shares
purchasable hereunder, each of such new Warrants to represent the right to
purchase such number of Warrant Shares (not to exceed the aggregate total
number purchasable hereunder) as shall be designated by the Holder at the
time of such surrender. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction, or mutilation of this
Warrant, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it, and upon surrender and cancellation
of this Warrant, if mutilated, the Company will make and deliver a new
Warrant of like tenor, in lieu of this Warrant; provided, however, that if
Holder shall be such Holder, an agreement of indemnity by such Holder shall
be sufficient for all purposes of this Section 2. This Warrant shall be
promptly canceled by the Company upon the surrender hereof in connection
with any exchange or replacement. The Company shall pay all expenses, taxes
(other than stock transfer taxes), and other charges payable in connection
with the preparation, execution, and delivery of Warrants pursuant to this
Section 2.

     3.   ISSUANCE OF THE WARRANT SHARES.

          (a)  The Company agrees that the Warrant Shares shall be and will
be deemed to be issued to the Holder as of the close of business on the
date on which this Warrant shall have been surrendered and the payment made
for such Warrant Shares as provided herein. Subject to the provisions of
the next section, certificates for the Warrant Shares so purchased shall be
delivered to the Holder within a reasonable time after the rights
represented by this Warrant shall have been so exercised, and, unless this
Warrant has expired, a new Warrant representing the right to purchase the
number of Warrant Shares, if any, with respect to which this Warrant shall
not then have been exercised shall also be delivered to the Holder within
such time.

          (b)  Notwithstanding the foregoing, however, the Company shall
not be required to deliver any certificate for Warrant Shares upon exercise
of this Warrant except in accordance with exemptions from the applicable
securities registration requirements or registrations under applicable
securities laws. Nothing herein, however, shall obligate the Company to
effect registrations under federal or state securities laws. If
registrations are not in effect and if exemptions are not available

<PAGE>
when the Holder seeks to exercise the Warrant, the Warrant exercise period
will be extended, if need be, to prevent the Warrant from expiring, until
such time as either registrations become effective or exemptions are
available, and the Warrant shall then remain exercisable for a period of at
least 90 calendar days from the date the Company delivers to the Holder
written notice of the availability of any registrations or exemptions. The
Holder agrees to execute such documents and make such representations,
warranties and agreements as maybe required solely to comply with the
exemptions relied upon by the Company, or any registrations made, for the
issuance of the Warrant Shares.

     4.   COVENANTS OF THE COMPANY.  The Company covenants and agrees that
all Warrant Shares will, upon issuance, be duly authorized and issued,
fully paid, nonassessable, and free from all taxes, liens, and charges with
respect to the issue thereof. The Company further covenants and agrees that
during the period within which the rights represented by this Warrant may
be exercised, the Company will at all times have authorized and reserved
for the purpose of issue or transfer upon exercise of the purchase rights
evidenced by this Warrant a sufficient number of shares of Common Stock to
provide for the exercise of the rights represented by this Warrant.

     5.   RESTRICTIONS ON ISSUANCE AND TRANSFER OF SHARES.  Shares of
Common Stock acquired pursuant to the exercise of this Warrant which are
not registered under the Securities Act of 1933, as amended (the "Act"),
shall be subject to restrictions on transfer and as required by applicable
state and/or federal securities laws.  Any unregistered shares acquired by
exercise of this Warrant shall bear a legend referring to the restrictions
and limitations of this Section.  The Company may impose stop transfer
instructions to implement such restrictions and limitations.

     6.   ANTI-DILUTION ADJUSTMENTS.  The number of Warrant Shares
purchasable upon the exercise of this Warrant and the Warrant Exercise
Price shall be subject to adjustment as follows:

          (a)  In case the Company shall (i) pay a dividend or make a
     distribution on its Common Stock in shares of its capital stock or
     other securities, (ii) subdivide its outstanding shares of Common
     Stock into a greater number of shares, or (iii) issue, by
     reclassification of its Common Stock, shares of its capital stock or
     other securities of the Company (including any such reclassification
     in connection with a consolidation or merger in which the Company is
     the continuing corporation), the number of Warrant Shares purchasable
     upon exercise of this Warrant immediately prior thereto shall be
     adjusted so that the Holder shall be entitled to receive the kind and
     number of Warrant Shares, shares of its capital stock and other
     securities of the Company which such holder would have owned or would
     have been entitled to receive immediately after the happening of any
     of the events described above, had the Warrant been exercised
     immediately prior to the

<PAGE>
     happening of such event or any record date with respect thereto.  Any
     adjustment made pursuant to this subsection 6(a) shall become
     effective immediately after the effective date of such event.

          (b)  In case the Company shall issue rights, options, warrants or
     convertible securities to holders of its Common Stock, without any
     charge to such holders, containing the right to subscribe for or
     purchase Common Stock, the number of Warrant Shares thereafter
     purchasable upon the exercise of this Warrant shall be determined by
     multiplying the number of Warrant shares theretofore purchasable upon
     exercise of this Warrant by a fraction, of which the numerator shall
     be the number of shares of Common Stock outstanding immediately prior
     to the issuance of such rights, options, warrants or convertible
     securities plus the number of additional shares of Common Stock
     offered for subscription or purchase, and of which the denominator
     shall be the number of shares of Common Stock outstanding immediately
     prior to the issuance of such rights, options, warrants or convertible
     securities.  Such adjustment shall be made whenever such rights,
     options, warrants or convertible securities are issued, and shall
     become effective immediately upon issuance of such rights, options,
     warrants or convertible securities.  In the event of such adjustment,
     corresponding adjustments shall be made to the Warrant Exercise Price.

          (c)  In case the Company shall distribute to holders of its
     Common Stock evidences of its indebtedness or assets (excluding cash
     dividends or distributions out of current earnings made in the
     ordinary course of business consistent with past practices), then in
     each case the number of Warrant shares thereafter purchasable upon the
     exercise of this Warrant shall be determined by multiplying the number
     of Warrant Shares theretofore purchasable upon exercise of this
     Warrant by a fraction, of which the numerator shall be the then Market
     Price (as defined below) on the date of such distribution, and of
     which the denominator shall be such Market Price on such date minus
     the then fair value (determined as provided in subsection 6(e) below)
     of the portion of the assets or evidences of indebtedness so
     distributed applicable to one share of Common Stock.  Such adjustment
     shall be made whenever any such distribution is made and shall become
     effective on the date of distribution.  In the event of any such
     adjustment, the number of shares of Common Stock subject to the
     Warrant shall also be adjusted and shall be that number determined by
     multiplying the number of shares of Common Stock issuable upon
     exercise before the adjustment by a fraction, the numerator of which
     shall be the Warrant Exercise Price in effect immediately before the
     adjustment and the denominator of which shall be the Warrant Exercise
     Price as so adjusted.

<PAGE>
          (d)  Whenever the number of Warrant Shares purchasable upon the
     exercise of this Warrant is adjusted as herein provided, the Warrant
     Exercise Price payable upon exercise of the Warrant shall be adjusted
     by multiplying such Warrant Exercise Price immediately prior to such
     adjustment by a fraction, the numerator of which shall be the number
     of Warrant Shares purchasable upon the exercise of this Warrant
     immediately prior to such adjustment, and the denominator of which
     shall be the number of Warrant Shares  purchasable immediately
     thereafter.

          (e)  In case the Company shall sell or issue shares of Common
     Stock, or rights, options, warrants, or convertible or exchangeable
     securities containing the right to subscribe for or purchase shares of
     Common Stock at a price per share of Common Stock (determined, in the
     case of such rights, options, warrants, or convertible or exchangeable
     securities, by dividing (X) the total amount receivable by the Company
     in consideration of the sale and issuance of such rights, options,
     warrants, or convertible or exchangeable securities, plus the total
     consideration payable to the Company upon exercise, conversion, or
     exchange thereof, by (Y) the total number of shares of Common Stock
     covered by such rights, options, warrants, or convertible or
     exchangeable securities) that is lower than the Warrant Exercise
     Price, then the Warrant Exercise Price shall be adjusted so that it
     shall equal the price per share of Common Stock at which such Common
     Stock or other securities were sold or issued.  Such adjustment shall
     be made successively whenever such a sale or issuance occurs.  In the
     event of any such adjustment, the number of shares of Common Stock
     subject to the Warrant shall also be adjusted and shall be that number
     determined by multiplying the number of shares of Common Stock
     issuable upon exercise before the adjustment by a fraction, the
     numerator of which shall be the Warrant Exercise Price in effect
     immediately before the adjustment and the denominator of which shall
     be the Warrant Exercise Price as so adjusted.  For the purposes of
     adjustments, the shares of Common Stock which the holder of any such
     rights, options, warrants, or convertible or exchangeable securities
     shall be entitled to subscribe for or purchase shall be deemed to be
     issued and outstanding as of the date of the sale or issuance of the
     rights, warrants, or convertible or exchangeable securities and the
     consideration received by the Company therefor shall be deemed to be
     the consideration received by the Company for such rights, options,
     warrants, or convertble or exchangeable securities, plus the
     consideration or premiums stated in such rights, options, warrants or
     convertible or exchangeable securities to be paid for the shares of
     Common Stock covered thereby.  In case the Company shall sell or issue
     shares of Common Stock or rights, options, warrants, or convertible or
     exchangeable securities containing the right

<PAGE>
     to subscribe for or purchase shares of Common Stock for a
     consideration consisting, in whole or in part, of property other than
     cash or its equivalent, then in determining the "price per share of
     Common Stock" and the "consideration received by the Company," the
     Board of Directors of the Company shall determine, in good faith, the
     fair value of said property.  PROVIDED, that there shall be no
     adjustment due to the recoupment by the Company of any number of the
     Company's shares of Common Stock from Three R Associates, Inc. ("3R")
     or Joseph J. McCann, Jr., an agent of 3R.

          (f)  Upon any adjustment of the Warrant Exercise Price and the
     number of Warrant Shares subject to this Warrant, then and in each
     such case, the Company shall give written notice thereof, by
     first-class mail, postage prepaid, addressed to the Holder as shown on
     the books of the Company, which notice shall state the Warrant
     Exercise Price resulting from such adjustment and the increase or
     decrease, if any, in the number of shares of Common Stock purchasable
     at such price upon the exercise of this Warrant, setting forth in
     reasonable detail the method of calculation and the facts upon which
     such calculation is based.

     Whenever the Company's Board of Directors determines the fair market
value as stated in Section 6(e) above or Section 10 below and the Holder
disagrees, the Holder may, within 60 days of receipt of such notice of
determination, require the Company to deliver a certificate of a firm of
independent public accountants of recognized standing selected by the Board
of Directors (which may be the regular auditors of the Company) recomputing
the Exercise Price and the number of Warrant Shares after the adjustment or
the effect of the modification and a brief statement of the firm's manner
of recomputing the same.  Such recomputation shall be binding upon the
Company and the Holder.  The cost of obtaining the second certificate shall
be borne by the Company unless the recomputation is the same as or less
favorable to the Holder than the Company's initial computation, in which
case the cost of obtaining the second certificate shall be borne by the
Holder.

     7.   MERGER, REORGANIZATION OR CONSOLIDATION.  In any case in which a
transaction would result in a complete liquidation of the Company or a
merger, reorganization, or consolidation of the Company with any other
unrelated corporation or other entity in which the Company is not the
surviving corporation or the Company becomes a wholly-owned subsidiary of
another unrelated corporation or other entity (all such transactions being
referred to herein as a "Reorganization"), the surviving corporation or
other entity shall be required to assume the Warrant or to issue substitute
warrants in place thereof which substitute warrants shall provide for terms
at least as favorable to the Warrantholders as contained in this Warrant
and shall provide the Warrantholder the right to acquire the kind and
amount of shares and other securities and property which the Warrantholder
would have owned or been entitled to receive had the Warrants been
exercised immediately prior to such Reorganization.

<PAGE>
     8.   NO VOTING RIGHTS.  This Warrant shall not entitle the Holder to
any voting rights or other rights as a stockholder of the Company.

     9.   NOTICE OF TRANSFER OF WARRANT OR RESALE OF THE WARRANT SHARES.

          (a)  The Holder, by acceptance hereof, agrees to give written
notice to the Company before transferring this Warrant or transferring any
Warrant Shares of such Holder's intention to do so, describing briefly the
manner of any proposed transfer. Promptly upon receiving such written
notice, the Company shall present copies thereof to the Company's counsel
and to counsel to the original purchaser of this Warrant. If in the opinion
of each such counsel the proposed transfer may be effected without
registration or qualification (under any federal or state securities laws),
the Company, as promptly as practicable, shall notify the Holder of such
opinion, whereupon the Holder shall be entitled to transfer this Warrant or
to dispose of Warrant Shares received upon the previous exercise of this
Warrant, all in accordance with the terms of the notice delivered by the
Holder to the Company; provided that an appropriate legend may be endorsed
on the Warrant or the certificates for such Warrant Shares respecting
restrictions upon transfer thereof necessary or advisable in the opinion of
counsel and satisfactory to the Company to prevent further transfers which
would be in violation of Section 5 of the Securities Act of 1933, as
amended (the "Act"), and applicable state securities laws; and provided
further that the prospective transferee or purchaser shall execute such
documents and make such representations, warranties, and agreements as may
be reasonably required solely to comply with the exemptions relied upon by
the Company or the Holder for the transfer or disposition of the Warrant or
Warrant Shares.

          (b)  If in the opinion of counsel referred to in this Section 9,
the proposed transfer or disposition of this Warrant or such Warrant Shares
described in the written notice given pursuant to this Section 9 may not be
effected without registration or qualification of this Warrant or such
Warrant Shares, the Company shall promptly give written notice thereof to
the Holder.

     10.  Fractional Shares.  Fractional shares shall not be issued upon
the exercise of this Warrant, but in any case where the Holder would,
except for the provisions of this Section, be entitled under the terms
hereof to receive a fractional share, the Company shall, upon the exercise
of this Warrant for the largest number of whole shares then called for, pay
a sum in cash equal to the sum of (a) the excess, if any, of the Market
Price of such fractional share over the proportional part of the Warrant
Exercise Price represented by such fractional share, plus (b) the
proportional part of the Warrant Exercise Price represented by such
fractional share. For purposes of this Section, the term "Market Price"
with respect to shares of Common Stock of any class or series means the
average of the last reported sale prices or, if none, the average of the
last reported closing bid and asked prices on any national securities
exchange, the Nasdaq National Market, Nasdaq SmallCap Market, or NASD OTC

<PAGE>
Bulletin Board over the five (5) trading days immediately preceding the
determination date.  If the Company's Common Stock is not listed on a
national securities exchange or quoted on Nasdaq or the OTC Bulletin Board,
the Market Price shall be the average of the last reported closing bid and
asked prices as reported in the "pink sheets" or other standard compilation
of quotations by market makers in the over-the-counter market over the five
consecutive trading days immediately prior to the determination date.  In
the event that no quotations are available, the "Market Price" shall be the
fair market value of a share of Common Stock as determined in good faith by
the Board of Directors of the Company.

     11.  RIGHT TO CONVERT WARRANT INTO COMMON STOCK; NET ISSUANCE.  In
addition to any other methods of payment set forth in Section 1(a) above
and in lieu of any cash payment required thereunder, unless otherwise
prohibited by law, the Holder shall have the right at any time, when
exercisable, and from time to time to exercise this Warrant in full or in
part (i) by receiving from the Company the number of Warrant Shares equal
to the number of Warrant shares otherwise issuable upon such exercise less
the number of Warrant Shares having an aggregate value on the date of
exercise equal to the Warrant Exercise Price multiplied by the number of
Warrant Shares  for which this Warrant is being exercised.  For purposes
hereof, the "value" of a share of Common Stock on a given date shall equal
to the Market Price on such date as defined in Section  10 of this
Agreement.

     12.  REPRESENTATIONS AND WARRANTIES.  The Company represents and
warrants to the Holder of this Warrant as follows:

          (a)  This Warrant has been duly authorized and executed by the
Company and is a valid and binding obligation of the Company enforceable in
accordance with its terms, subject to laws of general application relating
to bankruptcy, insolvency and the relief of debtors and the rules of law or
principles at equity governing specific performance, injunctive relief and
other equitable remedies;

          (b)  The Warrant Shares have been duly authorized and reserved
for issuance by the Company and, when issued in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable; and

          (c)  The execution and delivery of this Warrant are not, and the
issuance of the Warrant Shares upon exercise of this Warrant in accordance
with the terms hereof will not be, inconsistent with the articles of
incorporation, by-laws or other organizational documents of the Company, do
not and will not contravene, in any material respect, any governmental rule
or regulation, judgment or order applicable to the Company, and do not and
will not conflict with or contravene any provision of, or constitute a
default under, any indenture, mortgage, contract or other instrument of
which the Company is a party or by which it is bound or require the consent
or approval of, the giving of notice to, the registration or filing with or
the taking of any action in respect of or by, any Federal, state or local
government authority or agency or

<PAGE>
other person, except for the filing of notices pursuant to federal and
state securities laws, which filings will be effected by the time required
thereby.

     13.  NOTICES.  Notices and other communications provided for herein
shall be in writing and may be given by mail, courier, confirmed telex or
facsimile transmission and shall, unless otherwise expressly required, be
deemed given when received or when delivery thereof is refused.  In the
case of Holder, such notices and communications shall be addressed to its
address as shown on the books maintained by the Company unless Holder shall
notify the Company that notices and communications should be sent to a
different address (or telex or facsimile number) in which case such notices
and communications shall be sent to the address (or telex or facsimile
number) specified by Holder.

     14.  GOVERNING LAW.  This Warrant shall be governed by and construed
in accordance with the laws of the State of Nevada.

     15.  GENERAL PROVISIONS.

               (a)  This Agreement contains the entire understanding
between the parties with respect to the subject matter hereof, and
supersedes any and all prior written or oral agreements between the parties
with respect to the subject matter hereof.  There are no representations,
agreements, arrangements, or understandings, either written or oral,
between or among the parties with respect to the subject matter hereof
which are not set forth in this Agreement.

               (b)  Each party to this Agreement agrees to perform such
further acts and to execute and deliver such other and additional documents
as may be reasonably necessary to carry out the provisions of this
Agreement.

               (c)  If any term, provision, covenant, or condition of this
Agreement is held by a court of competent jurisdiction to be invalid,
illegal, or unenforceable for any reason, such invalidity, illegality, or
unenforceability shall not affect any of the other terms, provisions,
covenants, or conditions of this Agreement, each of which shall be binding
and enforceable.

               (d)  This Agreement may not be modified, extended, renewed
or substituted without an amendment or other agreement in writing signed by
the parties to this Agreement.

<PAGE>
     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed
by its duly authorized officer as the date first specified above.

                    AMERIMMUNE PHARMACEUTICALS, INC.

                    By:_______________________________________

                    Name: OB Parrish

                    Title: Chairman of the Board

ATTEST:

By:________________________________________

Name: Pamela M. Kapustay

Title:  Vice President of Operations

<PAGE>
                    AMERIMMUNE PHARMACEUTICALS, INC.

                         WARRANT EXERCISE NOTICE

              (TO BE SIGNED ONLY UPON EXERCISE OF WARRANT)

     The undersigned Holder of the foregoing Warrant hereby irrevocably
elects to exercise the right, represented by such Warrant, to purchase
__________ shares of the Common Stock, _____ par value, of AMERIMMUNE
PHARMACEUTICALS, INC. and tenders herewith payment in accordance with
Section 1 of said Warrant as follows:

          ______ shares for CASH:  $ _______________________

          ______ shares for CASHLESS EXERCISE (pursuant to Section 11
                 of theWarrant)

     Please deliver the stock certificate to the address set forth below.
In addition, if the number of shares being purchased pursuant to this
exercise is less than the all of the shares purchasable under this Warrant,
please return to such address either (1) the Warrant marked to reflect the
remaining balance of shares purchasable thereunder or (2) a newly issued
Warrant in the name of the undersigned for such remaining balance of shares
purchasable thereunder.

Dated: ____________________________

Name of Warrant Holder:  _________________________________________________

Tax Identification No. or
Social Security No. of Warrant Holder:  __________________________________

_________________________________________
(Signature)

Title:

NOTE: THE ABOVE SIGNATURE SHOULD CORRESPOND EXACTLY WITH THE NAME OF THE
WARRANT HOLDER AS IT APPEARS ON THE FIRST PAGE OF THE  WARRANT OR ON A DULY
EXECUTED WARRANT ASSIGNMENT.

<PAGE>
                    AMERIMMUNE PHARMACEUTICALS, INC.

                           WARRANT ASSIGNMENT

              (TO BE SIGNED ONLY UPON TRANSFER OF WARRANT)

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto ______________________________________________________, the
assignee, whose address is ______________________________________________,
and whose tax identification or social security number is
_______________________,the right represented by the foregoing Warrant to
purchase ___________________shares of the Common Stock of AMERIMMUNE
PHARMACEUTICALS, INC., to which the foregoing Warrant relates and appoints
___________________ attorney to transfer said right on the books of
Amerimmune Pharmaceuticals, Inc., with full power of substitution in the
premises. If the number of shares assigned is less than all of the shares
purchasable under the Warrant, anew Warrant will be issued in the name of
the undersigned for the remaining balance of the shares purchasable
thereunder.

Dated: ______________________________

Name of Warrant Holder/Assignor:  _________________________________________
                                             (Please print)

________________________________________
(Signature)
Title:

Address of Warrant Holder/Assignor:  ______________________________________

                                     ______________________________________

                                     ______________________________________

Tax Identification No. or Social Security No. of
Warrant Holder/Assignor:  _________________________________________________

NOTE: THE ABOVE SIGNATURE SHOULD CORRESPOND EXACTLY WITH THE NAME OF THE
WARRANT HOLDER  AS IT APPEARS ON THE FIRST PAGE OF THE  WARRANT OR ON A
DULY EXECUTED ASSIGNMENT FORM.

<PAGE>
                           WARRANT ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto MAYA, LLC, a Nevada limited liability company whose address
is 2325 Renaissance Drive, Las Vegas, Nevada 89119, and whose tax
identification number is 88-0333538, all of the undersigned's rights in and
to and obligations under the warrant (the "Warrant") represented by that
certain Warrant Agreement, dated November 15, 2001 to purchase 6,380,357
shares of the Common Stock of AMERIMMUNE PHARMACEUTICALS, INC., a Colorado
corporation (the "Company"), and appoints the Company's Chairman or Chief
Financial Officer, or either of them acting individually, as attorney to
transfer said right on the books of Company with full power of substitution
in the premises.

     The signature of Maya, LLC set forth below constitutes its agreement
to be bound by the terms and conditions of the Warrant as the Holder
thereof. The transfer to Maya, LLC, an entity owned or controlled by the
undersigned, has been made as a contribution of capital by the undersigned
and for no other consideration.

Dated: _________________________________

Name of Warrant Holder/Assignor:   REX H. LEWIS
                                   ------------
                                   (Please print)

_____________________________________
(Signature)

Address of Warrant Holder/Assignor:     2325 Renaissance Drive
                                        Las Vegas, Nevada 89119

AGREED TO AND ACCEPTED AS OF
__________________________, 2001:

MAYA, LLC, a Nevada limited liability company

By:_________________________________________
Name:  Rex H. Lewis
Title:    Manager

<PAGE>
                      ACKNOWLEDGMENT OF ASSIGNMENT

     Amerimmune Pharmaceuticals, Inc., a Colorado corporation (the
"Company") hereby acknowledges receipt of the attached Warrant Assignment
and acknowledges and agrees that (i) such Warrant Assignment satisfies the
notice provisions of Section 9 of the Warrant (as defined in the attached
Warrant Assignment), and (ii) due to the nature of the assignment (e.g. a
transfer to an entity owned or controlled by the transferor), the
requirement of an opinion of Company counsel regarding such assignment is
hereby waived.

                         AMERIMMUNE PHARMACEUTICALS, INC., a
                         Colorado corporation

                         By:_______________________________________
                                O.B. Parrish, Chairman<PAGE>

EXHIBIT 10.1   2002 NON-QUALIFIED STOCK COMPENSATION PLAN

                   2002 NON-QUALIFIED STOCK COMPENSATION PLAN

1.       PURPOSE OF PLAN

         1.1 This 2002 NON-QUALIFIED STOCK COMPENSATION PLAN (the "Plan") of
Composite Technology Corporation, a Nevada corporation (the "Company") for
employees, directors, officers, consultants, advisors and other persons
associated with the Company, is intended to advance the best interests of the
Company by providing those persons who have a substantial responsibility for its
management and growth with additional incentive and 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 and common stock under the Plan supports and increases
the Company's ability to attract and retain individuals of exceptional talent
upon whom, in large measure, the sustained progress, growth and profitability of
the Company depends.

2.       DEFINITIONS

         2.1 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.

         "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, or the Board if no committees have been established. The
Committee shall be composed of three or more persons as from time to time are
appointed to serve by the Board. Each member of the Committee, while serving as
such, shall be a disinterested person with the meaning of Rule 16b-3 promulgated
under the Securities Exchange Act of 1934.

         "Common Shares" shall mean the Company's Common Shares, $.001 par value
per share, or, in the event that the outstanding Common Shares are hereafter
changed into or exchanged for different shares of securities of the Company,
such other shares or securities.

         "Company" shall mean Composite Technology Corporation, a Nevada
corporation, and any parent or subsidiary corporation of Composite Technology
Corporation, as such terms are defined in Sections 425(e) and 425(f),
respectively, of the Code.

         "Fair Market Value" shall mean, with respect to the date a given stock
option is granted or exercised, the average of the highest and lowest reported
sales prices of the Common Shares, 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. The above withstanding, the Committee may determine the Fair Market
Value in such other manner as it may deem more equitable for Plan purposes or as
is required by applicable laws or regulations.

<PAGE>

         "Optionee" shall mean an employee of the company who has been granted
one or more Stock Options under the Plan.

         "Common Stock" shall mean shares of common stock which are issued by
the Company pursuant to Section 5, below.

         "Common Stockholder" means the employee of, consultant to, or director
of the Company or other person to whom shares of Common Stock are issued
pursuant to this Plan.

         "Common Stock Agreement" means an agreement executed by a Common
Stockholder and the Company as contemplated by Section 5, below, which imposes
on the shares of Common Stock held by the Common Stockholder such restrictions
as the Board or Committee deem appropriate.

         "Stock Option" or "Non-Qualified 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.

3.       ADMINISTRATION OF THE PLAN

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

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

         3.3 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, as set forth more fully in
paragraph 8 of Article 11 of the Plan.

         3.4 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.

                                       2
<PAGE>

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

         3.6 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 Committee may take any action
otherwise proper under the Plan by the affirmative vote, taken without a
meeting, of a majority of its members.

         3.7 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 from his own gross negligence or
willful misconduct.

         3.8 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.

4.       SHARES SUBJECT TO THE PLAN

         4.1 The total number of shares of the Company available for grants of
Stock Options and Common Stock under the Plan shall be 9,000,000 Common Shares,
subject to adjustment in accordance with Article 7 of the Plan, which shares may
be either authorized but unissued or reacquired Common Shares of the Company.

         4.2 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.

5.       AWARD OF COMMON STOCK

         5.1 The Board or Committee from time to time, in its absolute
discretion, may (a) award Common Stock to employees of, consultants to, and
directors of the Company, and such other persons as the Board or Committee may
select, and (b) permit Holders of Options to exercise such Options prior to full
vesting therein and hold the Common Shares issued upon exercise of the Option as
Common Stock. In either such event, the owner of such Common Stock shall hold
such stock subject to such vesting schedule as the Board or Committee may impose
or such vesting schedule to which the Option was subject, as determined in the
discretion of the Board or Committee.

                                       3
<PAGE>

         5.2 Common Stock shall be issued only pursuant to a Common Stock
Agreement, which shall be executed by the Common Stockholder and the Company and
which shall contain such terms and conditions as the Board or Committee shall
determine consistent with this Plan, including such restrictions on transfer as
are imposed by the Common Stock Agreement.

         5.3 Upon delivery of the shares of Common Stock to the Common
Stockholder, below, the Common Stockholder shall have, unless otherwise provided
by the Board or Committee, all the rights of a stockholder with respect to said
shares, subject to the restrictions in the Common Stock Agreement, including the
right to receive all dividends and other distributions paid or made with respect
to the Common Stock.

         5.4. Notwithstanding anything in this Plan or any Common Stock
Agreement to the contrary, no Common Stockholders may sell or otherwise
transfer, whether or not for value, any of the Common Stock prior to the date on
which the Common Stockholder is vested therein.

         5.5 All shares of Common Stock issued under this Plan (including any
shares of Common Stock and other securities issued with respect to the shares of
Common Stock as a result of stock dividends, stock splits or similar changes in
the capital structure of the Company) shall be subject to such restrictions as
the Board or Committee shall provide, which restrictions may include, without
limitation, restrictions concerning voting rights, transferability of the Common
Stock and restrictions based on duration of employment with the Company, Company
performance and individual performance; provided that the Board or Committee
may, on such terms and conditions as it may determine to be appropriate, remove
any or all of such restrictions. Common Stock may not be sold or encumbered
until all applicable restrictions have terminated or expire. The restrictions,
if any, imposed by the Board or Committee or the Board under this Section 5 need
not be identical for all Common Stock and the imposition of any restrictions
with respect to any Common Stock shall not require the imposition of the same or
any other restrictions with respect to any other Common Stock.

         5.6 Each Common Stock Agreement shall provide that the Company shall
have the right to repurchase from the Common Stockholder the unvested Common
Stock upon a termination of employment, termination of directorship or
termination of a consultancy arrangement, as applicable, at a cash price per
share equal to the purchase price paid by the Common Stockholder for such Common
Stock.

         5.7 In the discretion of the Board or Committee, the Common Stock
Agreement may provide that the Company shall have the a right of first refusal
with respect to the Common Stock and a right to repurchase the vested Common
Stock upon a termination of the Common Stockholder's employment with the
Company, the termination of the Common Stockholder's consulting arrangement with
the Company, the termination of the Common Stockholder's service on the
Company's Board, or such other events as the Board or Committee may deem
appropriate.

                                       4
<PAGE>

         5.8 The Board or Committee shall cause a legend or legends to be placed
on certificates representing shares of Common Stock that are subject to
restrictions under Common Stock Agreements, which legend or legends shall make
appropriate reference to the applicable restrictions.

6.       STOCK OPTION TERMS AND CONDITIONS

         6.1 Consistent with the Plan's purpose, Stock Options may be granted to
non-employee directors of the Company or other persons who are performing or who
have been engaged to perform services of special importance to the management,
operation or development of the Company.

         6.2 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 Section 6.

         6.3 All Stock Options granted hereunder must be granted within ten
years from the earlier of the date of this Plan is adopted or approved by the
Company's shareholders.

         6.4 No Stock Option granted to any employee or 10% Shareholder 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 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. However, no NQSO, or any portion thereof, may be
exercisable until thirty (30) days following date of grant ("30-Day Holding
Period.").

         6.5 A Stock Option, or portion thereof, shall be exercised by delivery
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 6 of this Section 6.

                  No NQSO or installment thereof shall be exercisable 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 an exercised NQSO are
issued to an Optionee, he shall have none of the rights of a shareholder.

                                       5
<PAGE>

         6.6 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
on the date the NQSO is exercised equal to the option price, provided such
tendered Shares have been owned by the Optionee for at least one year 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.

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

         6.8 Except by will or the laws of descent and distribution, 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. Stock Options
shall be exercisable during the Optionee's lifetime only by the Optionee or the
duly appointed legal representative of an incompetent Optionee.

         6.9 If the Optionee shall die while associated with the Company or
within three months after termination of such association, the personal
representative or administrator of the Optionee's estate or the person(s) to
whom an NQSO granted hereunder shall have been validly transferred by such
personal representative or administrator pursuant to the Optionee's will or the
laws of descent and distribution, shall have the right to exercise the NQSO for
one year after the date of the Optionee's death, to the extent (i) such NQSO was
exercisable on the date of such termination of employment by death, and (ii)
such NQSO was not exercised, and (iii) the exercise period may not be extended
beyond the expiration of the term of the Option.

                  No transfer of a Stock Option by the will of an Optionee or by
the laws of descent and distribution shall be effective to bind the Company
unless the Company shall have been furnished with written notice thereof and an
authenticated copy of the will and/or such other evidence as the Committee may
deem necessary to establish the validity of the transfer and the acceptance by
the transferee or transferee of the terms and conditions by such Stock Option.

                  In the event of death following termination of the Optionee's
association with the Company while any portion of an NQSO remains exercisable,
the Committee, in its discretion, may provide for an extension of the exercise
period of up to one year after the Optionee's death but not beyond the
expiration of the term of the Stock Option.

                                       6
<PAGE>

         6.10 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 made under applicable provisions of the Securities Act
of 1933, as amended.

7.       ADJUSTMENTS OR CHANGES IN CAPITALIZATION

         7.1 In the event that the outstanding Common Shares of the Company are
hereafter changed into or exchanged for a different number or kind 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;

                  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.

         7.2 The foregoing adjustments 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.

8.       MERGER, CONSOLIDATION OR TENDER OFFER

         8.1 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.

                                       7
<PAGE>

         8.2      In the event that:

                  A. Any person other than the Company shall acquire more than
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
term 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;

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 an 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 final 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 an 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.

         8.3 Any payment which the Company is required to make pursuant to
paragraph 8.2 of this Section 8 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 validly tendered in
compliance with such offer are purchased or exchanged, then only that portion of
the shares covered by an NQSO as results from multiplying such shares by a
fraction, the numerator of which is the number of Common Shares acquired
pursuant 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.

         8.4 Notwithstanding paragraphs 8.1 and 8.3 of this Section 8, the
Committee may, by unanimous vote and resolution, unilaterally revoke the
benefits of the above provisions; provided, however, that such vote is taken no
later than ten business days following public announcement of the intent of an
offer or the change of control, whichever occurs earlier.

                                       8
<PAGE>

9.       AMENDMENT AND TERMINATION OF PLAN

         9.1 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.

         9.2 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.

         9.3 The Board may amend the Plan, subject to the limitations cited
above, in 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.

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

10.      GOVERNMENT AND OTHER REGULATIONS

         10.1 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 pursuant thereto
to comply with any law or regulation of any government authority.

11.      MISCELLANEOUS PROVISIONS

         11.1 No person shall have any claim or right to be granted a Stock
Option or Common Stock under the Plan, and the grant of an NQSO or Common Stock
under the Plan shall not be construed as giving an Optionee or Common
Stockholder the right to be retained by the Company. Furthermore, the Company
expressly reserves the right at any time 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.

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

                                       9
<PAGE>

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

         11.4 The place of administration of the Plan shall be at the principal
office of the Company, and the validity, construction, interpretation,
administration and effect of the Plan and of its rules and regulations, and
rights relating to the Plan, shall be determined solely in accordance with the
laws of the State of Nevada.

         11.5 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.

         11.6 In addition to such other rights of indemnification as they may
have as members of the Board or the 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 action, suit 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, and
against all amounts 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, with counsel acceptable to the Optionee, before
such Committee member undertakes to handle and defend it on his own behalf.

         11.7 Stock Options may be granted under this Plan from time to time, in
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
becomes a subsidiary of the Company. The terms and conditions of such substitute
stock options so granted may vary from the terms and conditions set forth in
this Plan to such extent as the Board of Directors 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.

         11.8 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 and the Optionee, that the Optionee has
been engaged in fraud, embezzlement, theft, insider trading in the Company's
stock, 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 for disclosing trade secrets of the

                                       10
<PAGE>

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 to the
Optionee by the Committee. The decision of the Committee as to the cause 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 any manner.

12.      WRITTEN AGREEMENT

         12.1 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 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.

                                       11
<PAGE>

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

                  FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

         AGREEMENT made this ________ day of ______________ 200__ , between
_________________ (the "Optionee"), and Composite Technology Corporation (the
"Company").

         1.       GRANT OF OPTION

                  The Company, pursuant to the provisions of the Non-Qualified
Stock Compensation Plan (the "Plan"), adopted by the Board of Directors on
____________, 2001, the Company hereby grants to the Optionee, subject to the
terms and conditions set forth or incorporated herein, an option to purchase
from the Company all or any part of an aggregate of __________ shares of its
$.001 par value common stock, as such common stock is now constituted, at the
purchase price of $ __ per share. The provisions of the 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 on or after ________ and on or before __________________ , provided that
the cumulative number of shares of common stock as to which this Option may be
exercised (except in the event of death, retirement, or permanent and total
disability, as provided in paragraph 6.9 of the Plan) shall not exceed the
following amounts:

         Cumulative Number                  Prior to Date
             of Shares                   (Note Inclusive of)
             ---------                   -------------------

The Option evidenced hereby shall be exercisable by the delivery to and receipt
by the Company of (i) 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 cash or
certified check payable to the order of the Company, or by fully paid and
nonassessable common stock 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 stock is submitted as whole or partial
payment for shares to be purchased hereunder, such common stock will be valued
at their Fair Market Value (as defined in the Plan) on the date such shares
received by the Company are applied to payment of the exercise price.

                                       12
<PAGE>

         3.       TRANSFERABILITY

                  The Option evidenced hereby is not assignable or transferable
by the Optionee other than by the Optionee's will or by the laws of descent and
distribution, as provided in paragraph 6.9 of the Plan. The Option shall be
exercisable only by the Optionee during his lifetime.

                                              Composite Technology Corporation

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

___________________________
Secretary

         Optionee hereby acknowledges receipt of a copy of the 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 Board of Directors administering the
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 without cause, or by the Optionee, prior to completion or
satisfactory performance by Optionee (except as otherwise provided in paragraph
6 of the Plan) all of the Optionee's rights hereunder shall thereupon terminate;
and that, pursuant to paragraph 6 of the 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.

Dated:_______________                ___________________________________________
                                     Optionee

                                     ___________________________________________
                                     Print Name

                                     ___________________________________________
                                     Address

                                     ___________________________________________
                                     Social Security No.

                                       13
<PAGE>

ATTACHMENT B

                               NOTICE OF EXERCISE

To:      Composite Technology Corporation

                  (1) The undersigned hereby elects to purchase ________ shares
of Common Shares (the "Common Shares"), of Composite Technology Corporation
pursuant to the terms of the attached Non-Qualified Stock Option Agreement, and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

                  (2) Please issue a certificate or certificates representing
said shares of Common Shares in the name of the undersigned or in such other
name as is specified below:

                 -------------------------------
                 (Name)

                 -------------------------------
                 (Address)

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

Dated:

                                              ------------------------------
                                              Signature

                                       14
<PAGE>

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

                                   SCHEDULE I

================= ================= ================= ============== ===========
DATE              SHARES PURCHASED  PAYMENT RECEIVED  UNEXERCISED    ISSUING
                                                      SHARES         OFFICER
                                                      REMAINING      INITIALS
----------------- ----------------- ----------------- -------------- -----------

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================= ================= ================= ============== ===========

                                       15

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