Document:

Exhibit __._

STOCK PURCHASE AGREEMENT WITH THE OWNERS OF ASIA INTERNET

SHARE PURCHASE AGREEMENT

AGREEMENT made the 16th day of March 2000.

A M O N G:

     FIRST ECOM.COM, INC., a corporation incorporated under the laws of the
State of Nevada, one of the United States of America,

     (the "Purchaser")

     - and -

     BALAJI EXPORTS LTD, a corporation formed under the laws of the Hong Kong
Special Administrative Region of the People's Republic of China, and RAJAN
CHELLARM MAHBOOBANI AND RAVI KISHINCHAND DASWANI, both of the Hong Kong Special
Administrative Region of the People's Republic of China,

     (collectively, the "Vendors")

     - and -

     ASIA INTERNET LIMITED, a corporation formed under the laws of the Hong Kong
Special Administrative Region of the People's Republic of China,

     (the "Company")

     RECITALS:

The Company carries on the business of the provision of internet services,
systems integration consulting, software development and enhancement and
e-commerce design;

The Vendors are the owners, beneficially and of record, of all of the issued and
outstanding shares in the capital of the Company (the "Purchased Shares");

Rajan Chellarm Mahboobani owns or controls the majority of the issued and
outstanding shares in the capital of Balaji Exports Ltd; and

The Vendors have agreed to sell to the Purchaser, which has agreed to purchase
from the Vendors, the Purchased Shares, on and subject to the terms and
conditions set out in this Agreement;

     NOW THEREFORE in consideration of the mutual covenants set out in this
Agreement, the parties agree as follows:

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ARTICLE 1 - DEFINITIONS AND SCHEDULES

1.1  Definitions

     As used in this Agreement, the following words and phrases shall have the
following meanings:

"BEL" means Balaji Exports Ltd;

"Business" means the business of providing internet services, systems
integration consulting, software development and enhancement and e-commerce
design carried on by the Company;

"Business Premises" means the business premises leased by the Company located at
the premises municipally known as 5/F, Taurus Building, 21 AB Granville Road,
Tsim Sha Tsui, Kowloon, Hong Kong;

"Date of Completion" means 31 March 2000, or such earlier or later date as may
be agreed to in writing by the parties;

"Financial Statements" means the audited financial statements of the Company for
its fiscal year ended 30 June 1999, which are attached to this Agreement as
Schedule "A";

"Purchase Price" means the aggregate amount payable to the Vendors for the
Purchased Shares pursuant to Clause 2.2;

"Purchased Shares" means all of the issued and outstanding shares in the capital
of the Company, as more particularly described in Clause 3.2(a);

"Purchaser's Solicitors" means Messrs. Goodman Phillips & Vineberg;

"Ravi" means Ravi Kishinchand Daswani;

"Time of Completion" means 10:00 a.m. (Hong Kong time) on the Date of Completion
or such earlier or later time on the Date of Completion as may be agreed to in
writing by the parties; and

"Vendor Principal" means Rajan Chellarm Mahboobani.

1.2  Schedules

     The following are the schedules attached to and incorporated in this
Agreement by reference:

    Schedule No.       Description of Schedule                Clause No.

         A        Financial Statements                        1.1(e), 3.17
         B        Liens, Encumbrances, Leased Assets          3.9
         C        Intellectual Property                       3.10
         D        Real Property Leases                        3.12
         E        Employees                                   3.23
         F        Material Contracts                          3.25

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ARTICLE 2 - AGREEMENT TO PURCHASE

2.1  Purchase of Shares

     Subject to the terms and conditions set out in this Agreement, the Vendors
agree to transfer, sell and convey to the Purchaser and the Purchaser agrees to
purchase from the Vendors, the Purchased Shares.

2.2  Purchase Price for Purchased Shares

     The Purchase Price for the Purchased Shares shall be, in aggregate, the sum
of $ 1,200,000 and 24,870 registered, fully paid and non-assessable shares of
common stock in the capital of the Purchaser.

2.3  Payment Provisions

     The Purchase Price, shall be paid and satisfied by the Purchaser as
follows:

Upon the execution of this agreement by all of the parties, the Purchaser shall
pay the sum of Six Hundred Thousand ($600,000) Dollars (the "Deposit") by cash
or certified cheque to the Purchasers' Solicitors to be held by them, in trust,
pending completion or other termination of the transactions of purchase and sale
contemplated in this Agreement and to be credited (together with interest earned
thereon as hereinafter provided) on account of the Purchase Price, payable at
the Time of Completion. The parties acknowledge and agree that the Purchasers'
Solicitors shall place the Deposit in an interest-bearing trust account, with a
view to ensuring that the Deposit is continuously so invested until the Date of
Completion. If the transactions of purchase and sale contemplated in this
Agreement shall fail to close (otherwise than as a result of any fault of the
Purchaser) the Deposit (together with interest as aforesaid) shall forthwith be
returned to the Purchaser without set off or deduction. If the transactions of
purchase and sale contemplated herein shall fail to close as a result of any
breach by the Purchaser of any of the terms of this agreement, the Deposit
(together with interest thereon as aforesaid) shall be forfeited to the Vendors;

At the time of completion, the Purchaser shall issue to the Vendors, as
registered, fully paid and non-assessable, common shares in its capital, as
follows:

Vendor                         Number of Shares

Balaji Exports Ltd                    4,974
Rajan Chellarm Mahboobani            12,435
Ravi Kishinchand Daswani              7,461

By the Purchaser paying the following amounts to the Vendors, at the Time of
Completion, inclusive of the Deposit;

Vendor                        Payment to be received

Balaji Exports Ltd                  $ 240,000
Rajan Chellarm Mahboobani           $ 600,000
Ravi Kishinchand Daswani            $ 360,000

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ARTICLE 3 - REPRESENTATIONS AND WARRANTIES OF THE VENDORS

     The Vendors hereby jointly and severally represent and warrant as follows
and hereby acknowledge and confirm that the Purchaser is relying on such
representations and warranties in connection with the purchase by it of the
Purchased Shares:

3.1  Authorised Capital

The authorised capital of the Company consists of 5,000,000 ordinary shares.

3.2  Issued Capital

The issued and outstanding capital of the Company consists of 5,000,000 ordinary
shares, which are owned, beneficially and of record, by the Vendors as follows:

Shareholder                        Shares Owned

Balaji Exports Ltd                  1,000,000
Rajan Chellarm Mahboobani           2,500,000
Ravi Kishinchand Daswani            1,500,000

All of the said issued and outstanding shares have been issued as fully paid and
non-assessable. There are outstanding no other shares, warrants, rights,
securities convertible into shares or any other evidence whatsoever in any
interest in the Company.

3.3  Title to Purchased Shares

     The Vendors own the Purchased Shares with good and marketable title
thereto, free of any claims, liens, security interests or encumbrances of any
kind or nature and free of any rights or privileges capable of becoming claims,
liens, security interests or encumbrances. The Vendors are entitled to sell,
transfer and assign good and marketable title to the Purchased Shares to the
Purchaser, free of any such claims, liens, encumbrances, rights and privileges.
In addition, no person, firm or corporation has any agreement or option or any
right capable of becoming an agreement for the purchase, subscription or
issuance of any of the issued or unissued shares in the capital of the Company.

3.4  Status of Company

     The Company is a subsisting corporation duly and validly incorporated and
organised under the laws of Hong Kong.

3.5  Proper Authorisation

     The execution and delivery of this Agreement and all documents and
instruments to be delivered at the Time of Completion in accordance with the
terms of this Agreement by BEL and the Company and the sale of the Purchased
Shares to the Purchaser have been duly authorised by all necessary corporate
action. BEL and the Company have all requisite corporate power and authority to
enter into this Agreement and all documents and instruments to be delivered at
the Time of Completion in accordance with the terms of this

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Agreement and to carry out their respective obligations pursuant to their terms.

3.6  No Shareholders' Agreements

     There is no agreement in place between one or more of the Vendors which
would require any consent before giving effect to the terms of this Agreement or
which would otherwise affect or impair the ability of the Vendors or any of them
to carry out their obligations pursuant to the terms of this Agreement.

3.7  Subsidiaries

     The Company has no subsidiaries. The Company does not own any shares of any
other corporation or any rights, warrants or other securities convertible into
shares of any other corporation.

3.8  Minute Books

     The minute books of the Company contain accurate and complete copies of the
Articles of Association of the Company. There are outstanding no applications or
filings which would alter in any way the constating documents or corporate
status of the Company. No resolutions or by-laws have been passed, enacted,
consented to or adopted by the directors or shareholders or the Company, except
those contained in the said minute books. The corporate records of the Company
have been maintained in accordance with all applicable statutory requirements
and are complete and accurate.

3.9  Assets Free and Clear

     Other than as set out in Schedule "B" the Company owns its property and
assets with good and marketable title free and clear of any and all claims,
liens or encumbrances whatsoever or of any rights or privileges capable of
becoming claims, liens or encumbrances.

3.10 Use of Trade Names and Marks

     The Company uses or has used in connection with the Business, without
payment of any royalty or other fee, all of the trade names, trade marks,
patents, designs, processes, copyrights, internet domain names, and licenses set
out in Schedule "C". To the best knowledge, information and belief of the
Vendors, the right of the Company to use the aforesaid trade names and trade
marks has never been called into question or challenged and the Company is not
infringing upon any patents, trade names, trade marks, service marks or
copyrights, domestic or foreign, or any other industrial or intellectual
property rights of any other person, firm or corporation. The Company has not
granted any right, title or interest in or to the aforesaid trade names or
trademarks to any other person, firm or corporation.

3.11 Conduct of Business

     The Business is being conducted and operated in material compliance with
all ordinances, statutes, by-laws, regulations, orders, covenants, restrictions
or plans of governmental, Provincial or municipal authorities, agencies or
boards applicable to the Business.

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3.12 Real Property Leases

     Schedule "D" contains a true copy of all real property leases and any
amendments or additions thereto to which the Company is a party, by which it is
bound or in respect of which it is entitled to benefit. The foregoing leases are
in good standing and the Company is not in default in payment of rent or in the
performance of any of its obligations thereunder. In addition, to the best
knowledge, information and belief of the Vendors, the landlords under such
leases are not in breach of any of their obligations thereunder and no state of
facts exists which, after notice or lapse of time or both, would result in a
breach of or default under any of the foregoing leases.

3.13 State of Business Premises

     To the best knowledge, information and belief of the Vendors, the Business
Premises and all fixtures, plumbing, heating, electrical, drainage,
air-conditioning and cooling systems therein are in good working order and
condition and are in a good state of repair and maintenance. To the best
knowledge, information and belief of the Vendors, there are no outstanding work
orders relating to such premises issued by any police force or fire department,
sanitation, health or environmental authorities or by any other governmental or
municipal authority, agency or board or any board of fire underwriters or any
insurer for any notices or matters under discussion with any such departments or
authorities relating to work orders.

3.14 Use of Business Premises

     To the best knowledge, information and belief of the Vendors, the use and
occupation to which the Business Premises have been put are not in breach of any
ordinance, statute, by-law, regulation, order, covenant, restriction or plan.

3.15 No Litigation

     There are no judgements or executions outstanding against the Company nor
are there any suits, actions or legal, administrative, arbitration or other
proceedings or governmental investigations or any adverse change affecting the
business, operations, prospects, property or affairs of the Company pending or,
to the knowledge of the Vendors, threatened against the Company which might
adversely affect the financial condition of the Company, its property or the
conduct of the Business.

3.16 Books of Account Accurate

     The books of account and financial records of the Company accurately and
correctly set out and disclose, in all material respects, the current financial
position of the Business and all transactions of or relating to the Business
have been accurately recorded in such books and records.

3.17 Financial Statements

     The Financial Statements:

have been prepared in accordance with generally accepted accounting principles
applied on a basis consistent with those of preceding fiscal periods; and

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present fairly the assets, liabilities and financial condition of the Company as
at 30 June 1999, and the results of its operations and the changes in financial
position for the period then ended.

3.18 No Undisclosed Liabilities

     The Company has not been nor is now subject to any liabilities or
obligations, direct, indirect or contingent, other than those disclosed in this
Agreement since 30 June 1999.

3.19 No Guarantees

     The Company has not guaranteed or otherwise given security for or agreed to
guarantee or give security for any liability, debt or obligation of any person,
firm or corporation.

3.20 Status of Forward Commitments

     All forward commitments by or to the Company for inventories, supplies or
services for use in connection with the Business (whether or not there are any
contracts in writing with respect thereto) which are in existence as of the date
of this Agreement have been entered into by them in the ordinary course of
business and upon terms and conditions consistent with past business practices
relating to the Business.

3.21 Assets in Good Working Order and Repair

     To the best of the knowledge of the Vendors, all machinery, equipment,
motor vehicles and/or other assets owned by the Company are in good working
order and condition and in a good state of maintenance and repair, reasonable
wear and tear excepted.

3.22 No Material Adverse Change

     Since 30 June 1999, there has been no material adverse change with respect
to the Business, financial or otherwise.

3.23 Employees

     Schedule "E" contains a complete list and brief description of all
contracts and arrangements between the Company and employees of the Business
including, without limitation:

all written contracts or arrangements for the employment of any officer,
employee or consultant;

a complete list of all permanent and full-time employees of the Business, their
salaries and wage rates, their positions and length of service and particulars
of any contracts, arrangements or understandings, written or oral, with them;
and

all bonus, deferred compensation, profit sharing, pension, retirement, stock
option, stock purchase, hospitalisation insurance or other plans or arrangements
providing employee benefits.

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3.24 Employee Plans and Arrangements

     All the plans and arrangements referred to in Clause 3.23(c) are in good
standing and the Company has made all payments required to be made by it in
connection therewith. There are no employee pension or other employee plans
requiring funding on the part of the Company. The Company has properly paid, as
due, and shall have paid to the Date of Completion, all employee vacation pay
relating to the Business.

3.25 Material Contracts

     Save as disclosed in Schedule "F", the Company is not a party to nor is it
bound by any contracts, Agreements, arrangements, leases or other documents
(oral or written) other than those entered into in the ordinary course of
business which involve a cost, expenditure or liability of less than Five
Thousand ($5,000) Hong Kong Dollars for each such contract or document.

3.26 No Default Under Contract

     The Company is not in default under or in breach of any material term of
any contract to which it is a party or by which it is bound. There exists no
state of facts which, after notice or lapse of time or both, would constitute a
material default under or breach of a material term of any such contract, and
all such contracts are now in good standing and in full force and effect and the
Company is entitled to all benefit thereunder.

3.27 Profits and Other Taxes

     The Company has duly filed on a timely basis all profits and other
applicable tax returns required to be filed by them in connection with the
Business and have paid all taxes that are due and payable and all assessments,
reassessments, governmental charges, penalties, interest and fines due and
payable by them. The Company has made adequate provision for taxes payable in
respect of the Business for the current fiscal period and any previous periods
for which tax returns are not yet required to be filed.

ARTICLE 4 - COVENANTS OF THE VENDORS

4.1  At Completion

     The Vendors hereby covenant that, at the Time of Completion, the Vendors
shall and the Vendors shall cause the Company to:

Evidence - Re: Representations and Warranties: Furnish the Purchaser with
evidence, including certificates of the Vendors that the representations and
warranties of the Vendors contained in this Agreement are true as at the Time of
Completion, as though then made, and that the covenants of the Vendors to be
complied with at or prior to the Time of Completion have been complied with;
provided that the receipt of such evidence and the Completion of the transaction
contemplated herein shall not be a waiver of the representations, warranties and
covenants of the Vendors which are contained in this Agreement;

Evidence of Corporate Authorisation: Deliver to the Purchaser evidence
satisfactory to the Purchaser's Solicitors that all necessary corporate
authorisations authorising and approving the transactions contemplated herein

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have been obtained, including, without limitations a resolution of the directors
of the Company consenting to the transfer of the Purchased Shares to the
Purchaser;

Deliver Share Certificates: Cause all necessary steps and proceedings as may
reasonably be approved by the Purchaser's Solicitors to be taken so that the
Purchased Shares may be properly transferred to the Purchaser at the Time of
Completion and, in that regard, to deliver to the Purchaser at the Time of
Completion certificates representing all of the Purchased Shares, such
certificates being duly endorsed for transfer to the Purchaser, and cause
transfers of all the Purchased Shares to be duly and regularly recorded in the
name of the Purchaser or as it may in writing direct;

Deliver Resignations: Cause such directors and officers of the Company as the
Purchaser may designate to resign in favour of nominees of the Purchaser;

Deliver Corporate Records: Deliver and cause to be delivered to the Purchaser
the corporate seal, minute book or minute books, share certificates, share
certificate books, share transfers, share register books, directors' registers
and any and all documents, records, books, instruments and agreements of or
pertaining or relating to the Company and the Business; and

Deliver Release: Deliver and cause to be delivered to the Company and the
Purchaser a full and final release by the Vendors and the Vendor Principal of
all claims which they, or any party, with whom they do not deal at arm's length,
now or in future might have against the Company including, without limitation,
as to the entitlement to any outstanding wages, directors' fees, shareholder
loans and other like payment obligations.

ARTICLE 5 - GUARANTEE OF VENDOR PRINCIPAL

5.1  Guarantee

     The Vendor Principal hereby guarantees to the Purchaser the observance and
performance by BEL of all of BEL's covenants and obligations contained in the
Agreement and agrees to indemnify and save harmless the Purchaser from and
against all losses, costs, charges, damages and expenses of any nature
whatsoever occasioned by any act or default of the BEL contrary to such
covenants and obligations or which may be incurred or sustained by reason of any
failure by BEL to observe and perform all or any of such covenants and
obligations.

5.2  Terms of Guarantee

     This guarantee shall be continuing, unconditional and irrevocable. Without
limiting the generality of the foregoing, the obligations of the undersigned
hereunder shall not be released, discharged, impaired or affected by any
extensions of time or indulgences or modifications granted by any party in
favour of another to enforce any of the terms or provisions of this guarantee or
by the bankruptcy, insolvency, dissolution, amalgamation, winding-up or
reorganisation of BEL and the undersigned hereby waives any right to require the
Purchaser to exhaust any action or recourse against any other party before
requiring performance by the undersigned pursuant to this guarantee.

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ARTICLE 6 - REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     The Purchaser hereby represents and warrants as follows and hereby
acknowledge and confirm that the Vendors are relying on such representations and
warranties in connection with the sale by them of the Purchased Shares:

6.1  Purchaser Subsisting

     The Purchaser is a subsisting corporation duly and validly incorporated and
organised under the laws of the State of Nevada.

6.2  Proper Authorisation

     The execution and delivery of this Agreement and all documents and
instruments to be delivered at the Time of Completion in accordance with the
terms of this Agreement by the Purchaser and the purchase of the Purchased
Shares by the Purchaser shall, as at the Time of Completion, have been duly
authorised by all necessary corporate action and the Purchaser has all requisite
corporate power and authority to enter into this Agreement and all documents and
instruments to be delivered at the Time of Completion in accordance with the
terms of this Agreement and to carry out its obligations pursuant to their
terms.

6.3  No Violation of Charter Documents or Contracts

     The execution and delivery of this Agreement by the Purchaser and the
Purchaser Principals and the observance and performance of the terms and
provisions of this Agreement on the part of the Purchaser to be observed and
performed will not constitute a violation of applicable law or breach of the
charter documents or by-laws of the Purchaser or any provision of any contract
or other instrument to which the Purchaser is a party or by which it is bound or
by any order, writ, injunction, decree, statute, rule or regulation applicable
to them, or constitutes a default (or would with the passage of time or the
giving of notice or both, constitute a default) under any contract, Agreement or
instrument to which the Purchaser or is a party or by which it is bound.

ARTICLE 7 - COVENANTS OF THE PURCHASER

7.1  At Completion

     The Purchaser covenants that, at the Time of Completion, the Purchaser
shall:

          (a) Pay Purchase Price: Pay the Purchase Price for the Purchased
     Shares to the Vendors in accordance with the provisions of Clause 2.2; and

          (b) Execute Documents: Execute or cause to be executed all assignments
     and documents delivered pursuant to this Agreement at the Time of
     Completion which require execution by the Purchaser.

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ARTICLE 8 - ADDITIONAL COVENANTS OF THE PARTIES

Stamp Duty

     The Vendors and the Purchaser shall be jointly and severally liable in
respect of any stamp duty in connection with the assignment of the Purchased
Shares payable pursuant to the provisions of the Stamp Duty Ordinance (Ch. 117
of the Laws of Hong Kong), each as to 50% of the total amount so owing.

8.2  Maintenance of Secrecy

     The Vendors, and the Purchaser hereby covenant that they will not disclose
the existence of this Agreement or the transaction contemplated in this
Agreement (except to their own solicitors, auditors and senior officers) without
the prior written consent of the other parties. Until the transactions
contemplated in this Agreement are completed, all public announcements and press
releases made concerning such transaction shall be approved jointly as to form,
content and timing by the Vendors and the Purchaser.

8.3  Confidential Information

     In the event that the purchase and sale of the Purchased Shares
contemplated herein is not completed, the Purchaser agrees that it will not use
for their own purposes any information, trade secrets or confidential data
relating to the Business discovered or acquired by them or their representatives
as a result of the Vendors making available any information, books, accounts,
records or other data and information relating to the Business. The Purchaser
agree that they will not disclose, divulge or communicate any such information,
trade secrets or confidential data so discovered or acquired to any other
person, firm or corporation and the Purchaser agrees that they will forthwith
return to the Vendors any documents delivered pursuant to this Agreement and any
copies made thereof.

ARTICLE 9 - NON-SOLICITATION AND CONFIDENTIALITY

9.1  Non-Solicitation

     Each of the Vendor Principal and Ravi hereby covenants and agrees with the
Company, the Purchaser that they will not, so long as they are employed by the
Purchaser or any of its affiliates or associated companies and for a term of two
(2) years thereafter, divulge to any person, firm or corporation the name of any
customer of the Company or accept as a customer or client, solicit, service,
interfere with or endeavour to entice away from the Company any person, firm or
corporation was an officer, director, or employee, client or active prospect of,
supplier of or otherwise in the habit of dealing with the Company.

9.2  Confidentiality

     The Vendors hereby acknowledge that all records, material and information
pertaining to the Company and the Business and any copies thereof obtained by
them are confidential and shall remain the exclusive property of the Company.
The Vendors covenant and agree that they shall not at any time, divulge the
contents of such records or any of such information to any person other than the
Company's qualified employees or professional advisors nor use the contents of
such records or such information for any purpose whatsoever other than in
furtherance of the business and affairs of the Company.

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9.3  Severability of Covenants

     In the event that any clause or portion of any covenant contained in this
Article should be unenforceable or declared invalid for any reason whatsoever,
such unenforceability or invalidity shall not affect the enforceability or
validity of the remaining portions of the covenant and such unenforceable or
invalid portion shall be severable from the remainder of this Agreement.

9.4  Acknowledgement of Vendors

     The foregoing covenants are given by the Vendor Principal and Ravi
acknowledging that they have specific knowledge of the affairs of the Company
and that the Company carries on and attempts to carry on the Business in Hong
Kong and internationally. The Vendors hereby acknowledge and agree that all
restrictions contained in this Agreement are reasonable and valid and were
negotiated by them and their solicitors and hereby waive any and all defences to
the strict enforcement thereof by the Company or the Purchaser. It is understood
and acknowledged by the parties that the covenants set out in this Article are
essential elements to this Agreement.

9.5  Damages Insufficient

     Without intending to limit the remedies available to the Company and the
Purchaser, the Vendors acknowledge that damages at law will be an insufficient
remedy in view of the irrevocable harm which will be suffered if the Vendors
violate the terms of this Article and the Vendors agree that the Company or the
Purchaser may apply for and have injunctive relief or specific performance in
any court of competent jurisdiction specifically to enforce any such covenants
upon the breach or threatened breach of any such provisions or otherwise
specifically to enforce any such covenants and hereby waives any defences
thereto.

ARTICLE 10 - SURVIVAL OF REPRESENTATIONS WARRANTIES AND COVENANTS

10.1 Survival Provisions

     The representations, warranties and covenants contained in this Agreement,
and in any schedule hereto, and any documents to be executed and delivered
pursuant to this Agreement and in any documents executed and delivered in
connection with the completion of the transaction contemplated in this
Agreement, shall survive the Completion of the transaction contemplated herein
and, notwithstanding such Completion and notwithstanding any investigations made
by or on behalf of the parties, such representations and warranties shall
continue in full force and effect from the Date of Completion as follows:

     (a) as to matters relating to or arising as a result of fraud on the part
of the Vendors or the Purchaser, forever;

     (b) as to matters relating to income tax, sales tax, corporation tax or
other governmental tax, levy or duty, for the duration of the statutory
reassessment period provided for in the enabling legislation with respect to
such tax, levy or duty;

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     (c) as to all other representations and warranties, to and including the
date which is two (2) years following the Date of Completion; and

     (d) as to any and all covenants of the parties, until performed in full.

ARTICLE 11 - INDEMNITIES

11.1 Vendors' Indemnity

     The Vendors covenant and agree to indemnify and save harmless the Purchaser
from and against:

     (e) any loss or damage suffered by the Purchaser as a result of any breach
of, non-compliance with, or untruth of any of the warranties, representations or
covenants of the Vendors contained in this Agreement and any schedule hereto,
and any documents to be delivered and executed pursuant to this Agreement or any
documents executed and delivered in connection with the completion of the
transaction contemplated herein, including, without limiting the generality of
the foregoing, all costs and expenses (including legal fees incurred in
connection with any such loss or damage) in connection with any claim under this
Article; and

     (f) any claims, demands, actions, losses, costs or expenses which the
Purchaser, may pay, suffer or incur in connection with or by reason or any
assessment by the Inland Revenue Department (Hong Kong) or as a result of any
ruling or hearing by any tribunal or court which results in any additional sales
taxes pursuant to the provisions of the Inland Revenue Ordinance (Ch. 112 of the
Laws of Hong Kong) being paid or payable by the Company for any period prior to
the Date of Completion.

11.2 Purchaser's Indemnity

     The Purchaser covenants and agrees to indemnify and save harmless the
Vendors from and against any loss or damage suffered by the Vendors as a result
of any breach of, non-compliance with, or untruth of any of the warranties,
representations or covenants of the Purchaser contained in this Agreement, in
any schedule to this Agreement in the documents to be executed and delivered
pursuant to this Agreement or in any documents executed and delivered in
connection with the completion of the transaction contemplated herein,
including, without limiting the generality of the foregoing, all costs and
expenses (including legal fees incurred in connection with any such loss or
damage) in connection with any claim under this Article.

11.3 Rights Supplemental

     The rights and benefits provided in this Article are supplemental to and
are without prejudice to any other rights, actions or causes of action which may
arise pursuant to any other Clause of this Agreement or pursuant to applicable
law.

                                       13
<PAGE>

ARTICLE 12 - GENERAL CONTRACT PROVISIONS

12.1 Place of Completion

     The completion of the transaction contemplated in this Agreement shall take
place at the Time of Completion on the Date of Completion at the offices of the
Purchaser's Solicitors at 8th Floor, AonChina Building, 29 Queen's Road Central,
Hong Kong, or at such other place as may be agreed to in writing by the parties.

12.2 Notices

     All notices, requests, demands or other communications required or
permitted, under the terms of this Agreement, to be given by one party to
another shall be given in writing by personal delivery or facsimile transmission
or by registered mail, postage prepaid, addressed to such other party or
delivered to such other party as follows:

(a)  to the Purchaser at:

First Ecom.com, Inc
902 Henley Building
5 Queen's Road Central
Hong Kong

Facsimile: 2801 5939

Copy to:

Goodman Phillips & Vineberg
Solicitors
8th Floor, Aon China Building
29 Queen's Road Central
Hong Kong

Attention: Mr. Douglas G. Smith

Facsimile: 2845 9089

(b)  to the Vendors at:

Room 501, 5/F Taurus Building
21 A-B Granville Road
TST, Kowloon
Hong Kong

Attention: Mr. Rajan Chellarm Mahboobani

or at such other address as may be given by any of them to the other in writing
from time to time and such notices, requests, demands or other communications
shall be deemed to have been received when delivered, if so delivered, when
sent, if sent by facsimile transmission or, if mailed, five (5) business days
following the date of mailing thereof.

12.3 Further Assurances

     The parties covenant and agree to sign such other papers, cause such
meetings to be held, resolutions passed and by-laws enacted, exercise their vote
and influence, do and perform and cause to be done and performed such further
and other acts and things as may be necessary or desirable in order to give full
effect to this Agreement and every provision of it.

                                       14
<PAGE>

12.4 Governing Law

     This Agreement shall be governed by the laws of the Hong Kong Special
Administrative Region of the People's Republic of China.

12.5 Currency

     Unless otherwise specified in this Agreement, all dollar amounts referred
to in this Agreement are stated in U.S. dollars.

12.6 Words and Pronouns

     All words and personal pronouns relating thereto as used in this Agreement
shall be read and construed as the number and gender of the party or parties
referred to in each case requires and the verb shall be construed as agreeing
with the required word or pronoun.

12.7 Articles, Clauses

     The division of this Agreement into Articles, Clauses, and schedules is for
convenience of reference only and shall not affect the interpretation or
construction of this Agreement.

12.8 Legal and Other Fees

     The parties acknowledge and agree that, save and except as otherwise
provided in this Agreement, each party shall be responsible for its own legal,
audit and other professional fees and other charges incurred in connection with
the completion of the transaction contemplated in this Agreement and any
post-completion matters.

12.9 Time of the Essence

     Time shall be of the essence of this Agreement and of every part hereof and
no extension or variation of this Agreement shall operate as a waiver of this
provision.

12.10 Entire Agreement

     This Agreement shall constitute the entire Agreement between the parties
with respect to all of the matters herein and this Agreement shall not be
amended except by a memorandum in writing signed by all of the parties hereto
and any amendment hereof shall be null and void and shall not be binding upon
any party which has not given its consent as aforesaid.

12.11 Severability

     In the event that any of the warranties, representations or covenants or
any portion of them contained in this Agreement are unenforceable or are
declared invalid for any reason whatsoever, such unenforceability or invalidity
shall not affect the enforceability or validity of the remaining terms of
portions thereof of this Agreement and such unenforceable or invalid warranty,
representation or covenant or portion thereof shall be severable from the
remainder of this Agreement.

                                       15
<PAGE>

12.12 Assignment, Binding Effect

     No party to this Agreement may assign this Agreement, any part hereof or
their rights hereunder without the prior written consent of the other parties.
Subject to the foregoing, this Agreement shall enure to the benefit of and be
binding upon the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

IN WITNESS WHEREOF the parties have duly executed this Agreement this 16th day
of March 2000.

SIGNED, SEALED AND DELIVERED
in the presence of:

FIRST ECOM.COM, INC.

Per:     (sgd.) G. M. Pek

Per:     (sgd.) J. R. Brewer

BALAJI EXPORTS LTD

Per:     (sgd.) R. C. Mahboobani

Per:     (sgd.) N. R. Mahboobani

(sgd.) R. C. Mahboobani
------------------------------------
RAJAN CHELLARAM MAHBOOBANI

(sgd.) R. K. Daswani
------------------------------------
RAVI KISHINCHAND DASWANI

ASIA INTERNET LIMITED

Per:     (sgd.) R. C. Mahboobani

Per:     (sgd.) R. K. Daswani

                                       16<PAGE>   1

                                                                    EXHIBIT 10.2

                               CAERE CORPORATION
                        1981 INCENTIVE STOCK OPTION PLAN

                            Adopted December 17, 1981
                 Approved by the Shareholders February 24, 1982
                              Amended July 12, 1983
            Amendment Approved by the Shareholders September 21, 1983
                              Amended June 25, 1985
              Amendment Approved by the Shareholders June 24, 1986
                 Amended October 21, 1986 and February 17, 1987
            Amendments Approved by the Shareholders October 20, 1987
                             Amended April 19, 1989
            Amendment Approved by the Stockholders September 26, 1989
                            Amended February 15, 1990
               Amendment Approved by the Stockholders May 3, 1990
                            Amended February 27, 1992
               Amendment Approved by the Stockholders May 5, 1992
                            Amended February 18, 1993
               Amendment Approved by the Stockholders May 4, 1993
                            Amended February 10, 1994
               Amendment Approved by the Stockholders May 25, 1994
                            Amended October 14, 1994
            Amendment Approved by the Stockholders December 20, 1994
                            Amended February 21, 1996
               Amendment Approved by the Stockholders May 14, 1996
                             Amended August 19, 1996

        1.      PURPOSE.

               (a) The purpose of the Plan is to provide a means by which
selected key employees of Caere Corporation (the "Company") and its Affiliates,
as defined in subparagraph l(b), may be given an opportunity to purchase stock
of the Company.

               (b) The word "Affiliate" as used in the Plan means any parent
corporation or subsidiary corporation of the Company, as those terms are defined
in Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986,
as amended from time to time (the "Code").

               (c) The Company, by means of the Plan, seeks to retain the
services of persons now holding key positions, to secure and retain the services
of persons capable of filling such positions, and to provide incentives for such
persons to exert maximum efforts for the success of the Company.

               (d) The Company intends that the options issued under the Plan be
incentive stock options as that term is used in Section 422 of the Code.

                                       1
<PAGE>   2

        2.      ADMINISTRATION.

               (a) The Plan shall be administered by the Board of Directors (the
"Board") of the Company unless and until the Board delegates administration to a
committee, as provided in subparagraph 2(c). Whether or not the Board has
delegated administration, the Board shall have the final power to determine all
questions of policy and expediency that may arise in the administration of the
Plan.

               (b) The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

                             (1) To determine from time to time which of the
persons eligible under the Plan shall be granted options; when and how the
option shall be granted; the provisions of each option granted (which need not
be identical), including the time or times during the term of each option within
which all or portions of such option may be exercised; and the number of shares
for which an option shall be granted to each such person.

                             (2) To construe and interpret the Plan and options
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any option agreement, in a
manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

                             (3) To amend the Plan as provided in paragraph 10.

                             (4) Generally, to exercise such powers and to
perform such acts as the Board deems necessary or expedient to promote the best
interests of the Company.

               (c) The Board may delegate administration of the Plan to a
committee composed of one (1) or more members of the Board, all of the members
of which committee may (but need not) be, in the discretion of the Board,
non-employee directors and/or outside directors, as defined by the provisions of
subparagraphs 2(d) and 2(e), respectively. If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board, including the power to
delegate to a subcommittee of two or more outside directors any of the
administrative powers the committee is authorized to exercise, subject, however,
to such resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. The Board may abolish the Committee at
any time and revest in the Board the administration of the Plan. Additionally,
prior to the date of the first registration of an equity security of the Company
under Section 12 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and notwithstanding anything to the contrary contained herein,
the Board may delegate administration of the Plan to any person or persons and
the term "Committee" shall apply to any person or persons to whom such authority
has been delegated.

               (d) The term "non-employee director," as used in this Plan, shall
mean a director who either (i) is not a current employee or officer of the
Company or its parent or subsidiary, does not receive compensation (directly or
indirectly) from the Company or its parent or subsidiary for services rendered
as a consultant or in any capacity other than as a director

                                       2
<PAGE>   3

(except for an amount as to which disclosure would not be required under Item
404(a) of Regulation S-K ("Regulation S-K") promulgated pursuant to the
Securities Act of 1933 (the "Securities Act"), does not possess an interest in
any other transaction as to which disclosure would be required under Item 404(a)
of Regulation S-K, and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act").

               (e) The term "outside director," as used in this Plan, shall mean
a director who either (i) is not a current employee of the Company or an
"affiliated corporation" (within the meaning of Treasury regulations promulgated
under Section 162(m) of the Code), is not a former employee of the Company or an
"affiliated corporation" receiving compensation for prior services (other than
benefits under a tax qualified pension plan), was not an officer of the Company
or an "affiliated corporation" at any time, and is not currently receiving
direct or indirect remuneration from the Company or an "affiliated corporation"
for services in any capacity other than as a director, or (ii) is otherwise
considered an "outside director" for purposes of Section 162(m) of the Code.

        3.      SHARES SUBJECT TO THE PLAN.

               (a) Subject to the provisions of paragraph 9 relating to
adjustments upon changes in stock, the stock that may be sold pursuant to
options granted under the Plan shall not exceed in the aggregate three million
five hundred ninety-five thousand (3,595,000) shares of the Company's common
stock; provided, however, that such aggregate number of shares shall be reduced
to reflect the number of shares of the Company's common stock that have been
sold pursuant to, or may be sold pursuant to outstanding options granted under,
the Company's 1981 Supplemental Stock Option Plan to the same extent as if such
sales had been made or options had been granted pursuant to this Plan. If any
option granted under the Plan shall for any reason expire or otherwise terminate
without having been exercised in full, the stock not purchased under such option
shall again become available for the Plan.

               (b) The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.

               (c) An option may be granted to an eligible person under the Plan
only if the aggregate fair market value (determined at the time the option is
granted) of the stock with respect to which incentive stock options (as defined
in the Code) granted after 1986 are exercisable for the first time by such
optionee during any calendar year under all incentive stock option plans of the
Company and its Affiliates does not exceed one hundred thousand dollars
($100,000). Should it be determined that an option granted under the Plan
exceeds such maximum for any reason other than the failure of a good faith
attempt to value the stock subject to the option, such option shall be
considered a nonstatutory stock option to the extent, but only to the extent, of
such excess; provided, however, that should it be determined that an entire
option or any portion thereof does not qualify for treatment as an incentive
stock option by reason of exceeding such maximum, such option or the applicable
portion shall be considered a nonstatutory stock option.

                                       3
<PAGE>   4

               (d) Subject to the provisions of paragraph 9 relating to
adjustments upon changes in stock, no person shall be eligible to be granted in
any calendar year options under this Plan covering more than an aggregate of
three hundred thousand (300,000) shares of the Company's common stock, when
combined with options granted in the same calendar year under the Company's 1981
Supplemental Stock Option Plan. Shares subject to an option that is canceled
shall continue to be counted against the maximum number of shares that may be
covered by options granted to a person pursuant to this subparagraph 3(c). If an
option is amended, exchanged or otherwise altered in a manner that results in a
reduction of the exercise price, such transaction shall be deemed to be a
cancellation of the original option and the grant of a new option for purposes
of this subparagraph. In such event, both the original option and the new option
shall be counted in the applicable year against the maximum limitation specified
by this subparagraph in accordance with regulations promulgated under Section
162(m) of the Code.

        4.      ELIGIBILITY.

               (a) Options may be granted only to key employees (including
officers) of the Company or its Affiliates. A director of the Company shall not
be eligible for the benefits of the Plan unless such director is also a key
employee (including an officer) of the Company or any Affiliate.

               (b) No person shall be eligible for the grant of an option under
the Plan if, at the time of grant, such person owns (or is deemed to own
pursuant to the attribution rules of Section 424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company or of any of its Affiliates unless the option
price is at least one hundred ten percent (110%) of the fair market value of
such stock at the date of grant and the term of the option does not exceed five
(5) years from the date of grant.

        5.      OPTION PROVISIONS.

               Each option shall be in such form and shall contain such terms
and conditions as the Board or the Committee shall deem appropriate. The
provisions of separate options need not be identical, but each option shall
include (through incorporation of provisions hereof by reference in the option
or otherwise) the substance of each of the following provisions:

               (a) The term of any option shall not be greater than ten (10)
years from the date it was granted.

               (b) The exercise price of each option shall be not less than one
hundred percent (100%) of the fair market value of the stock subject to the
option on the date the option is granted.

               (c) The purchase price of stock acquired pursuant to an option
shall be paid, to the extent permitted by applicable statutes and regulations,
either (i) in cash at the time the option is exercised, or (ii) at the
discretion of the Board or the Committee, either at the time of grant or
exercise of the option (A) by delivery to the Company of other common stock of
the Company, (B) according to a deferred payment or other arrangement (which may
include, without limiting the generality of the foregoing, the use of other
common stock of the Company)

                                       4
<PAGE>   5

with the person to whom the option is granted or to whom the option is
transferred pursuant to subparagraph 5(d), or (C) in any other form of legal
consideration that may be acceptable to the Board or Committee in their
discretion.

        In the case of any deferred payment arrangement, interest shall be
payable at least annually and shall be charged at the minimum rate of interest
necessary to avoid the treatment as interest, under any applicable provisions of
the Code, of any amounts other than amounts stated to be interest under the
deferred payment arrangement.

               (d) An option shall not be transferable except by will or by the
laws of descent and distribution, and shall be exercisable during the lifetime
of the person to whom the option is granted only by such person. Notwithstanding
the foregoing, the person to whom an option is granted may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the optionee, shall thereafter
be entitled to exercise the option.

               (e) The total number of shares of stock subject to an option may,
but need not, be allotted in periodic installments (which may, but need not, be
equal). From time to time during each of such installment periods, the option
may be exercised with respect to some or all of the shares allotted to that
period, and/or with respect to some or all of the shares allotted to any prior
period as to which the option was not fully exercised. During the remainder of
the term of the option (if its term extends beyond the end of the installment
periods), the option may be exercised from time to time with respect to any
shares then remaining subject to the option. The provisions of this subparagraph
5(e) are subject to any option provisions governing the minimum number of shares
as to which an option may be exercised.

               (f) The Company may require any optionee, or any person to whom
an option is transferred under subparagraph 5(d), as a condition of exercising
any such option: (1) to give written assurances satisfactory to the Company as
to the optionee's knowledge and experience in financial and business matters
and/or to employ a purchaser representative reasonably satisfactory to the
Company who is knowledgeable and experienced in financial and business matters,
and that he or she is capable of evaluating, alone or together with the
purchaser representative, the merits and risks of exercising the option; and (2)
to give written assurances satisfactory to the Company stating that such person
is acquiring the stock subject to the option for such person's own account and
not with any present intention of selling or otherwise distributing the stock.
These requirements, and any assurances given pursuant to such requirements,
shall be inoperative if (i) the issuance of the shares upon the exercise of the
option has been registered under a then currently effective registration
statement under the Securities Act, or (ii) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws.

               (g) An option shall terminate three (3) months after termination
of the optionee's employment with the Company or an Affiliate, unless (i) the
termination of employment of the optionee is due to such person's permanent and
total disability, within the meaning of Section 422(c)(6) of the Code, in which
case the option may, but need not, provide that it may be exercised at any time
within one (l) year following such termination of

                                       5
<PAGE>   6

employment; or (ii) the optionee dies while in the employ of the Company or an
Affiliate, or within not more than three (3) months after termination of such
employment, in which case the option may, but need not, provide that it may be
exercised at any time within eighteen (18) months following the death of the
optionee by the person or persons to whom the optionee's rights under such
option pass by will or by the laws of descent and distribution; or (iii) the
option by its terms specifies either (a) that it shall terminate sooner than
three (3) months after termination of the optionee's employment, or (b) that it
may be exercised more than three (3) months after termination of the optionee's
employment with the Company or an Affiliate. This subparagraph 5(g) shall not be
construed to extend the term of any option or to permit anyone to exercise the
option after expiration of its term, nor shall it be construed to increase the
number of shares as to which any option is exercisable from the amount
exercisable on the date of termination of the optionee's employment.

               (h) The option may, but need not, include a provision whereby the
optionee may elect at any time during the term of his or her employment with the
Company or any Affiliate to exercise the option as to any part or all of the
shares subject to the option prior to the stated vesting date of the option or
of any installment or installments specified in the option. Any shares so
purchased from any unvested installment or option may be subject to a repurchase
right in favor of the Company or to any other restriction the Board or the
Committee determines to be appropriate.

               (i) To the extent provided by the terms of an option, the
optionee may satisfy any federal, state or local tax withholding obligation
relating to the exercise of such option by any of the following means or by a
combination of such means: (1) tendering a cash payment; (2) authorizing the
Company to withhold from the shares of the common stock otherwise issuable to
the participant as a result of the exercise of the stock option a number of
shares having a fair market value less than or equal to the amount of the
withholding tax obligation; or (3) delivering to the Company owned and
unencumbered shares of the common stock having a fair market value less than or
equal to the amount of the withholding tax obligation.

        6.      COVENANTS OF THE COMPANY.

               (a) During the terms of the options granted under the Plan, the
Company shall keep available at all times the number of shares of stock required
to satisfy such options.

               (b) The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be
required to issue and sell shares of stock upon exercise of the options granted
under the Plan; provided, however, that this undertaking shall not require the
Company to register under the Securities Act either the Plan, any option granted
under the Plan or any stock issued or issuable pursuant to any such option. If,
after reasonable efforts, the Company is unable to obtain from any such
regulatory commission or agency the authority that counsel for the Company deems
necessary for the lawful issuance and sale of stock under the Plan, the Company
shall be relieved from any liability for failure to issue and sell stock upon
exercise of such options unless and until such authority is obtained.

                                       6
<PAGE>   7

        7.      USE OF PROCEEDS FROM STOCK.

        Proceeds from the sale of stock pursuant to options granted under the
Plan shall constitute general funds of the Company.

        8.      MISCELLANEOUS.

               (a) The Board or the Committee shall have the power to accelerate
the time during which an option may be exercised, or the time during which an
option or any portion thereof will vest pursuant to subparagraph 5(e),
notwithstanding the provisions in the option stating the time during which it
may be exercised or the time during which it will vest.

               (b) Neither an optionee nor any person to whom an option is
transferred under subparagraph 5(d) shall be deemed to be the holder of, or to
have any of the rights of a holder with respect to, any shares subject to such
option unless and until such person has satisfied all requirements for exercise
of the option pursuant to its terms.

               (c) Throughout the term of any option granted pursuant to the
Plan, the Company shall make available to the holder of such option, not later
than one hundred twenty (120) days after the close of each of the Company's
fiscal years during the option term, upon request, such financial and other
information regarding the Company as comprises the annual report to the
shareholders of the Company provided for in the bylaws of the Company.

               (d) Nothing in the Plan or any instrument executed or option
granted pursuant thereto shall confer upon any eligible employee or optionee any
right to continue in the employ of the Company or any Affiliate or shall affect
the right of the Company or any Affiliate to terminate the employment of any
eligible employee or optionee with or without cause.

        9.      ADJUSTMENTS UPON CHANGES IN STOCK.

               (a) If any change is made in the stock subject to the Plan, or
subject to any option granted under the Plan (through merger, consolidation,
reorganization, recapitalization, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or otherwise), appropriate adjustments
will be made in the class(es) and maximum number of shares subject to the Plan
pursuant to subparagraph 3(a), the class(es) and maximum number of shares that
may be subject to options pursuant to subparagraph 3(d) and the class(es) and
number of shares and price per share of stock subject to outstanding options.

               (b) In the event of: (l) a dissolution or liquidation of the
Company; (2) a merger or consolidation in which the Company is not the surviving
corporation; (3) a reverse merger in which the Company is the surviving
corporation but the shares of the Company's common stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise; or (4) any other capital
reorganization in which more than fifty percent (50%) of the shares of the
Company entitled to vote are exchanged then, at the sole discretion of the Board
to the extent permitted by law, (i) any surviving corporation shall assume
options outstanding under the Plan or substitute similar options for those
outstanding under the Plan, (ii) the time during which options

                                       7
<PAGE>   8

outstanding under the Plan may be exercised shall be accelerated and the options
terminated if not exercised prior to such event, or (iii) options outstanding
under the Plan shall continue in full force and effect.

        10.     AMENDMENT OF THE PLAN.

               (a) The Board at any time, and from time to time, may amend the
Plan. However, except as provided in paragraph 9 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the
stockholders within twelve (12) months before or after the adoption of the
amendment, where the amendment will:

                      (i) Increase the number of shares reserved for options
under the Plan;

                      (ii) Modify the requirements as to eligibility for
participation in the Plan (to the extent such modification requires stockholder
approval in order for the Plan to satisfy the requirements of Section 422 of the
Code); or

                      (iii) Modify the Plan in any other way if such
modification requires stockholder approval in order for the Plan to satisfy the
requirements of Section 422 of the Code or to comply with the requirements of
Rule 16b-3 promulgated under the Exchange Act.

               (b) It is expressly contemplated that the Board may amend the
Plan in any respect the Board deems necessary or advisable to provide optionees
with the maximum benefits provided or to be provided under the provisions of the
Code and the regulations promulgated thereunder relating to employee incentive
stock options and/or to bring the Plan and/or options granted under it into
compliance therewith.

               (c) Rights and obligations under any option granted before
amendment of the Plan shall not be altered or impaired by any amendment of the
Plan unless (i) the Company requests the consent of the person to whom the
option was granted and (ii) such person consents in writing.

               (d) The Board may in its sole discretion submit any other
amendment to the Plan for stockholder approval, including, but not limited to,
amendments to the Plan intended to satisfy the requirements of Section 162(m) of
the Code and the regulations promulgated thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.

        11.     TERMINATION OR SUSPENSION OF THE PLAN.

               (a) The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on January 31, 2000. No
options may be granted under the Plan while the Plan is suspended or after it is
terminated.

               (b) Rights and obligations under any option granted while the
Plan is in effect shall not be altered or impaired by suspension or termination
of the Plan, except with the consent of the person to whom the option was
granted.

                                       8
<PAGE>   9

        12.     EFFECTIVE DATE OF PLAN.

        The Plan shall become effective as determined by the Board, but no
options granted under the Plan shall be exercised unless and until the Plan has
been approved by the stockholders and, if required, an appropriate permit has
been issued by the Commissioner of Corporations of the State of California.

                                       9

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