Document:

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                                                                    EXHIBIT 10.7

                                RICH COAST INC.
                            1999 STOCK OPTION PLAN

     A.   1.   Purposes of and Benefits Under the Plan.  This 1999 Stock Option
               ---------------------------------------
Plan (the "Plan") is intended to encourage stock ownership by employees,
consultants and directors of Rich Coast Inc. and its controlled, affiliated and
subsidiary entities (collectively, the "Corporation"), so that they may acquire
or increase their proprietary interest in the Corporation, and is intended to
facilitate the Corporation's efforts to (i) induce qualified persons to become
employees, officers and directors (whether or not they are employees) and
consultants to the Corporation; (ii) compensate employees, officers, directors
and consultants for services to the Corporation; and (iii) encourage such
persons to remain in the employ of or associated with the Corporation and to put
forth maximum efforts for the success of the Corporation.  It is further
intended that options granted by the Committee pursuant to Section 6 of this
Plan shall constitute "incentive stock options" ("Incentive Stock Options")
within the meaning of Section 422 of the Internal Revenue Code, and the
regulations issued thereunder, and options granted by the Committee pursuant to
Section 7 of this Plan shall constitute "non-qualified stock options" ("Non-
qualified Stock Options").

     2.   Definitions.  As used in this Plan, the following words and phrases
          -----------
shall have the meanings indicated:

          (a)  "Board" shall mean the Board of Directors of the Corporation.

          (b)  "Committee" shall mean any Committee appointed by the Board to
administer this Plan, if one has been appointed.  If no Committee has been
appointed, the term "Committee" shall mean the Board.

          (c)  "Common Stock" shall mean the Corporation's $.001 par value
common stock.

          (d)  "Disability" shall mean a Recipient's inability to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment that can be expected to result in death or that has lasted or
can be expected to last for a continuous period of not less than 12 months.  If
the Recipient has a disability insurance policy, the term "Disability" shall be
as defined therein.

          (e)  "Fair Market Value" per share as of a particular date shall mean
the last sale price of the Corporation's Common Stock as reported on a national
securities exchange or by NASDAQ, or if the quotation for the last sale reported
is not available for the Corporation's Common Stock, the average of the closing
bid and asked prices of the Corporation's Common Stock as so reported or, if
such quotations are unavailable, the value determined by the Committee in
accordance with its discretion in making a bona fide, good faith determination
of fair market value. Fair Market Value shall be determined without regard to
any restriction other than a restriction which, by its terms, never will lapse.
In the case of Options and Bonuses granted at a time when the Corporation does
not have a registration statement in effect relating to
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the shares issuable hereunder, the value at which the Bonus shares are issued
may be determined by the Committee at a reasonable discount from Fair Market
Value to reflect the restricted nature of the shares to be issued and the
inability of the Recipient to sell those shares promptly.

          (f)  "Recipient" means any person granted an Option or awarded a Bonus
hereunder.

          (g)  "Internal Revenue Code" shall mean the United States Internal
Revenue Code of 1986, as amended from time to time (codified as Title 26 of the
United States Code) and any successor legislation.

     3.   Administration.
          --------------

          (a)  The Plan shall be administered by the Committee. The Committee
shall have the authority in its discretion, subject to and not inconsistent with
the express provisions of the Plan, to administer the Plan and to exercise all
the powers and authorities either specifically conferred under the Plan or
necessary or advisable in the administration of the Plan, including the
authority: to grant Options and Bonuses; to determine the vesting schedule and
other restrictions, if any, relating to Options and Bonuses; to determine the
purchase price of the shares of Common Stock covered by each Option (the "Option
Price"); to determine the persons to whom, and the time or times at which,
Options and Bonuses shall be granted; to determine the number of shares to be
covered by each Option or Bonus; to determine Fair Market Value per share; to
interpret the Plan; to prescribe, amend and rescind rules and regulations
relating to the Plan; to determine the terms and provisions of the Option
agreements (which need not be identical) entered into in connection with Options
granted under the Plan; and to make all other determinations deemed necessary or
advisable for the administration of the Plan. The Committee may delegate to one
or more of its members or to one or more agents such administrative duties as it
may deem advisable, and the Committee or any person to whom it has delegated
duties as aforesaid may employ one or more persons to render advice with respect
to any responsibility the Committee or such person may have under the Plan.

          (b)  Options and Bonuses granted under the Plan shall be evidenced by
duly adopted resolutions of the Committee included in the minutes of the meeting
at which they are adopted or in a unanimous written consent.

          (c)  The Committee shall endeavor to administer the Plan and grant
Options and Bonuses hereunder in a manner that is compatible with the
obligations of persons subject to Section 16 of the U.S. Securities Exchange Act
of 1934 (the "1934 Act"), although compliance with Section 16 is the obligation
of the Recipient, not the Corporation. Neither the Committee, the Board nor the
Corporation can assume any legal responsibility for a Recipient's compliance
with his obligations under Section 16 of the 1934 Act.

          (d)  No member of the Committee or the Board shall be liable for any
action taken or determination made in good faith with respect to the Plan or any
Option or Bonus granted hereunder.

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     4.   Eligibility.
          -----------

          (a)  Subject to certain limitations hereinafter set forth, Options and
Bonuses may be granted to employees (including officers) and consultants to and
directors  (whether or not they are employees) of the Corporation or its present
or future divisions, affiliates and subsidiaries.  In determining the persons to
whom Options or Bonuses shall be granted and the number of shares to be covered
by each Option or Bonus, the Committee shall take into account the duties of the
respective persons, their present and potential contributions to the success of
the Corporation, and such other factors as the Committee shall deem relevant to
accomplish the purposes of the Plan.

          (b)  A Recipient shall be eligible to receive more than one grant of
an Option or Bonus during the term of the Plan, on the terms and subject to the
restrictions herein set forth.

     5.   Stock Reserved.
          --------------

          (a)  The stock subject to Options or Bonuses hereunder shall be shares
of Common Stock. Such shares, in whole or in part, may be authorized but
unissued shares or shares that shall have been or that may be reacquired by the
Corporation. The aggregate number of shares of Common Stock as to which Options
and Bonuses may be granted from time to time under the Plan shall not exceed
2,500,000, subject to adjustment as provided in Section 8(i) hereof.

          (b)  If any Option outstanding under the Plan for any reason expires
or is terminated without having been exercised in full, or if any Bonus granted
is forfeited because of vesting or other restrictions imposed at the time of
grant, the shares of Common Stock allocable to the unexercised portion of such
Option or the forfeited portion of the Bonus shall become available for
subsequent grants of Options and Bonuses under the Plan.

     6.   Incentive Stock Options.
          -----------------------

          (a)  Options granted pursuant to this Section 6 are intended to
constitute Incentive Stock Options and shall be subject to the following special
terms and conditions, in addition to the general terms and conditions specified
in Section 8 hereof. Only employees of the Corporation shall be entitled to
receive Incentive Stock Options.

          (b)  The aggregate Fair Market Value (determined as of the date the
Incentive Stock Option is granted) of the shares of Common Stock with respect to
which Incentive Stock Options granted under this and any other plan of the
Corporation or any parent or subsidiary of the Corporation are exercisable for
the first time by a Recipient during any calendar year may not exceed the amount
set forth in Section 422(d) of the Internal Revenue Code.

          (c)  Incentive Stock Options granted under this Plan are intended to
satisfy all requirements for incentive stock options under Section 422 of the
Internal Revenue Code and the Treasury Regulations promulgated thereunder and,
notwithstanding any other provision of this Plan, the Plan and all Incentive
Stock Options granted under it shall be so construed, and all

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contrary provisions shall be so limited in scope and effect and, to the extent
they cannot be so limited, they shall be void.

     7.   Non-qualified Stock Options.  Options granted pursuant to this Section
          ---------------------------
7 are intended to constitute Non-qualified Stock Options and shall be subject
only to the general terms and conditions specified in Section 8 hereof.

     8.   Terms and Conditions of Options.  Each Option granted pursuant to the
          -------------------------------
Plan shall be evidenced by a written Option agreement between the Corporation
and the Recipient, which agreement shall be substantially in the form of Exhibit
                                                                         -------
A hereto as modified from time to time by the Committee in its discretion, and
-
which shall comply with and be subject to the following terms and conditions:

          (a)  Number of Shares.  Each Option agreement shall state the number
               ----------------
of shares of Common Stock covered by the Option.

          (b)  Type of Option.  Each Option Agreement shall specifically
               --------------
identify the portion, if any, of the Option which constitutes an Incentive Stock
Option and the portion, if any, which constitutes a Non-qualified Stock Option.

          (c)  Option Price.  Subject to adjustment as provided in Section 8 (i)
               ------------
hereof, each Option agreement shall state the Option Price, which shall be
determined by the Committee subject only to the following restrictions:

               (1)  Each Option Agreement shall state the Option Price, which
(except as otherwise set forth in paragraphs 8(c)(2) and (3) hereof) shall not
be less than 100% of the Fair Market Value per share on the date of grant of the
Option.

               (2)  Any Incentive Stock Option granted under the Plan to a
person owning more than ten percent of the total combined voting power of the
Common Stock shall be at a price of no less than 110% of the Fair Market Value
per share on the date of grant of the Incentive Stock Option.

               (3)  Any Non-qualified Stock Option granted under the Plan shall
be at a price no less than 80% of the Fair Market Value per share on the date of
grant of the Non-qualified Stock Option.

               (4)  The date on which the Committee adopts a resolution
expressly granting an Option shall be considered the day on which such option is
granted, unless a future date is specified in the resolution.

          (d)  Term of Option.  Each Option agreement shall state the period
               --------------
during and times at which the Option shall be exercisable, in accordance with
the following limitations:

               (1)  The date on which the Committee adopts a resolution
expressly granting an Option shall be considered the day on which such Option is
granted, unless a future

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date is specified in the resolution, although any such grant shall not be
effective until the Recipient has executed an Option agreement with respect to
such Option.

               (2)  The exercise period of any Option shall not exceed ten years
from the date of grant of the Option.

               (3)  Incentive Stock Options granted to a person owning more than
ten percent of the total combined voting power of the Common Stock of the
Corporation shall be for no more than five years.

               (4)  The Committee shall have the authority to accelerate or
extend the exercisability of any outstanding Option at such time and under such
circumstances as it, in its sole discretion, deems appropriate. In any event, no
exercise period may be so extended to increase the term of the Option beyond ten
years from the date of the grant.

               (5)  The exercise period shall be subject to earlier termination
as provided in Sections 8(f) and 8(g) hereof, and, furthermore, shall be
terminated upon surrender of the Option by the holder thereof if such surrender
has been authorized in advance by the Committee.

          (e)  Method of Exercise and Medium and Time of Payment.
               -------------------------------------------------

               (1)  An Option may be exercised as to any or all whole shares of
Common Stock as to which it then is exercisable, provided, however, that no
Option may be exercised as to less than 100 shares (or such number of shares as
to which the Option is then exercisable if such number of shares is less than
100).

               (2)  Each exercise of an Option granted hereunder, whether in
whole or in part, shall be effected by written notice to the Secretary of the
Corporation designating the number of shares as to which the Option is being
exercised, and shall be accompanied by payment in full of the Option Price for
the number of shares so designated, together with any written statements
required by, or deemed by the Corporation's counsel to be advisable pursuant to,
any applicable securities laws.

               (3)  The Option Price shall be paid in cash, or in shares of
Common Stock having a Fair Market Value equal to such Option Price, or in
property or in a combination of cash, shares and property and, subject to
approval of the Committee, may be effected in whole or in part with funds
received from the Corporation at the time of exercise as a compensatory cash
payment.

               (4)  The Committee shall have the sole and absolute discretion to
determine whether or not property other than cash or Common Stock may be used to
purchase the shares of Common Stock hereunder and, if so, to determine the value
of the property received.

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               (5)  The Recipient shall make provision for the withholding of
taxes as required by Section 10 hereof.

          (f)  Termination.
               -----------

               (1)  Unless otherwise provided in the Option Agreement by and
between the Corporation and the Recipient, if the Recipient ceases to be an
employee, officer, director or consultant of the Corporation (other than by
reason of death, Disability or retirement), all Options theretofore granted to
such Recipient but not theretofore exercised shall terminate three months
following the date the Recipient ceased to be an employee, officer, director or
consultant of the Corporation, and shall terminate upon the date of termination
of employment or other relationship if discharged for cause.

               (2)  Nothing in the Plan or in any Option or Bonus granted
hereunder shall confer upon an individual any right to continue in the employ of
or other relationship with the Corporation or interfere in any way with the
right of the Corporation to terminate such employment or other relationship
between the individual and the Corporation.

          (g)  Death, Disability or Retirement of Recipient.  Unless otherwise
               --------------------------------------------
provided in the Option Agreement by and between the Corporation and the
Recipient, if a Recipient shall die while an employee, officer, director or
consultant of the Corporation, or within ninety days after the termination of
such Recipient as an employee, officer, director or consultant, other than
termination for cause, or if the Recipient's relationship with the Corporation
shall terminate by reason of Disability or retirement, all Options theretofore
granted to such Recipient (whether or not otherwise exercisable) unless earlier
terminated in accordance with their terms, may be exercised by the Recipient or
by the Recipient's estate or by a person who acquired the right to exercise such
Options by bequest or inheritance or otherwise by reason of the death or
Disability of the Recipient, at any time within one year after the date of
death, Disability or retirement of the Recipient; provided, however, that in the
case of Incentive Stock Options such one-year period shall be limited to three
months in the case of retirement.

          (h)  Transferability Restriction.
               ---------------------------

               (1)  Options granted under the Plan shall not be transferable
other than by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined by the Internal Revenue Code or
Title I of the Employee Retirement Income Security Act of 1974, or the rules
thereunder. Options may be exercised during the lifetime of the Recipient only
by the Recipient and thereafter only by his legal representative.

               (2)  Any attempted sale, pledge, assignment, hypothecation or
other transfer of an Option contrary to the provisions hereof and/or the levy of
any execution, attachment or similar process upon an Option, shall be null and
void and without force or effect and shall result in a termination of the
Option.

          (3)  (A)  As a condition to the transfer of any shares of Common Stock
issued upon exercise of an Option granted under this Plan, the Corporation may
require an

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opinion of counsel, satisfactory to the Corporation, to the effect that such
transfer will not be in violation of the U.S. Securities Act of 1933, as amended
(the "1933 Act") or any other applicable securities laws or that such transfer
has been registered under federal and all applicable state securities laws. (B)
Further, the Corporation shall be authorized to refrain from delivering or
transferring shares of Common Stock issued under this Plan until the Committee
determines that such delivery or transfer will not violate applicable securities
laws and the Recipient has tendered to the Corporation any federal, state or
local tax owed by the Recipient as a result of exercising the Option or
disposing of any Common Stock when the Corporation has a legal liability to
satisfy such tax. (C) The Corporation shall not be liable for damages due to
delay in the delivery or issuance of any stock certificate for any reason
whatsoever, including, but not limited to, a delay caused by listing
requirements of any securities exchange or any registration requirements under
the 1933 Act, the 1934 Act, or under any other state, federal or provincial law,
rule or regulation. (D) The Corporation is under no obligation to take any
action or incur any expense in order to register or qualify the delivery or
transfer of shares of Common Stock under applicable securities laws or to
perfect any exemption from such registration or qualification. (E) Furthermore,
the Corporation will not be liable to any Recipient for failure to deliver or
transfer shares of Common Stock if such failure is based upon the provisions of
this paragraph.

          (i)  Effect of Certain Changes.
               -------------------------

               (1)  If there is any change in the number of shares of
outstanding Common Stock through the declaration of stock dividends, or through
a recapitalization resulting in stock splits or combinations or exchanges of
such shares, the number of shares of Common Stock available for Options and the
number of such shares covered by outstanding Options, and the exercise price per
share of the outstanding Options, shall be proportionately adjusted by the
Committee to reflect any increase or decrease in the number of issued shares of
Common Stock; provided, however, that any fractional shares resulting from such
adjustment shall be eliminated.

               (2)  In the event of the proposed dissolution or liquidation of
the Corporation, or any corporate separation or division, including, but not
limited to, split-up, split-off or spin-off, or a merger or consolidation of the
Corporation with another corporation, the Committee may provide that the holder
of each Option then exercisable shall have the right to exercise such Option (at
its then current Option Price) solely for the kind and amount of shares of stock
and other securities, property, cash or any combination thereof receivable upon
such dissolution, liquidation, corporate separation or division, or merger or
consolidation by a holder of the number of shares of Common Stock for which such
Option might have been exercised immediately prior to such dissolution,
liquidation, corporate separation or division, or merger or consolidation; or,
in the alternative the Committee may provide that each Option granted under the
Plan shall terminate as of a date fixed by the Committee; provided, however,
that not less than 30 days' written notice of the date so fixed shall be given
to each Recipient, who shall have the right, during the period of 30 days
preceding such termination, to exercise the Option as to all or any part of the
shares of Common Stock covered thereby, including shares as to which such Option
would not otherwise be exercisable.

               (3)  Paragraph 2 of this Section 8 (i) shall not apply to a
merger or consolidation in which the Corporation is the surviving corporation
and shares of Common Stock

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are not converted into or exchanged for stock, securities of any other
corporation, cash or any other thing of value. Notwithstanding the preceding
sentence, in case of any consolidation or merger of another corporation into the
Corporation in which the Corporation is the surviving corporation and in which
there is a reclassification or change (including a change to the right to
receive cash or other property) of the shares of Common Stock (excluding a
change in par value, or from no par value to par value, or any change as a
result of a subdivision or combination, but including any change in such shares
into two or more classes or series of shares), the Committee may provide that
the holder of each Option then exercisable shall have the right to exercise such
Option solely for the kind and amount of shares of stock and other securities
(including those of any new direct or indirect parent of the Corporation),
property, cash or any combination thereof receivable upon such reclassification,
change, consolidation or merger by the holder of the number of shares of Common
Stock for which such Option might have been exercised.

               (4)  In the event of a change in the Common Stock of the
Corporation as presently constituted into the same number of shares with a
different par value, the shares resulting from any such change shall be deemed
to be the Common Stock of the Corporation within the meaning of the Plan.

               (5)  To the extent that the foregoing adjustments relate to stock
or securities of the Corporation, such adjustments shall be made by the
Committee, whose determination in that respect shall be final, binding and
conclusive, provided that each Incentive Stock Option granted pursuant to this
Plan shall not be adjusted in a manner that causes such option to fail to
continue to qualify as an Incentive Stock Option within the meaning of Section
422 of the Internal Revenue Code.

               (6)  Except as expressly provided in this Section 8(i), the
Recipient shall have no rights by reason of any subdivision or consolidation of
shares of stock of any class, or the payment of any stock dividend or any other
increase or decrease in the number of shares of stock of any class, or by reason
of any dissolution, liquidation, merger, or consolidation or spin-off of assets
or stock of another corporation; and any issue by the Corporation of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of shares of Common Stock subject to an Option. The
grant of an Option pursuant to the Plan shall not affect in any way the right or
power of the Corporation to make adjustments, reclassifications, reorganizations
or changes of its capital or business structures, or to merge or consolidate, or
to dissolve, liquidate, or sell or transfer all or any part of its business or
assets.

          (j)  No Rights as Shareholder - Non-Distributive Intent.
               --------------------------------------------------

               (1)  Neither a Recipient of an Option nor such Recipient's legal
representative, heir, legatee or distributee, shall be deemed to be the holder
of, or to have any rights of a holder with respect to, any shares subject to
such Option until after the Option is exercised and the shares are issued.

               (2)  No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distributions
or other rights for

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which the record date is prior to the date such stock certificate is issued,
except as provided in Section 8(i) hereof.

               (3)  Upon exercise of an Option at a time when there is no
registration statement in effect under the 1933 Act relating to the shares
issuable upon exercise, shares may be issued to the Recipient only if the
Recipient represents and warrants in writing to the Corporation that the shares
purchased are being acquired for investment and not with a view to the
distribution thereof and provides the Corporation with sufficient information to
establish an exemption from the registration requirements of the 1933 Act. A
form of subscription agreement containing representations and warranties deemed
sufficient as of the date of adoption of this Plan is attached hereto as Exhibit
                                                                         -------
B.
-

               (4)  No shares shall be issued upon the exercise of an Option
unless and until there shall have been compliance with any then applicable
requirements of the U.S. Securities and Exchange Commission or any other
regulatory agencies having jurisdiction over the Corporation.

          (k)  Other Provisions. Option Agreements authorized under the Plan may
               ----------------
contain such other provisions, including, without limitation, (i) the imposition
of restrictions upon the exercise, and (ii) in the case of an Incentive Stock
Option, the inclusion of any condition not inconsistent with such Option
qualifying as an Incentive Stock Option, as the Committee shall deem advisable.

     9.   Grant of Stock Bonuses.  In addition to, or in lieu of, the grant of
          ----------------------
an Option, the Committee may grant Bonuses.

          (a)  At the time of grant of a Bonus, the Committee may impose a
vesting period of up to ten years, and such other restrictions which it deems
appropriate. Unless otherwise directed by the Committee at the time of grant of
a Bonus, the Recipient shall be considered a shareholder of the Corporation as
to the Bonus shares which have vested in the grantee at any time regardless of
any forfeiture provisions which have not yet arisen.

          (b)  The grant of a Bonus and the issuance and delivery of shares of
Common Stock pursuant thereto shall be subject to approval by the Corporation's
counsel of all legal matters in connection therewith, including compliance with
the requirements of the 1933 Act, the 1934 Act, other applicable securities
laws, rules and regulations, and the requirements of any stock exchanges upon
which the Common Stock then may be listed. Any certificates prepared to evidence
Common Stock issued pursuant to a Bonus grant shall bear legends as the
Corporation's counsel may seem necessary or advisable. Included among the
foregoing requirements, but without limitation, any Recipient of a Bonus at a
time when a registration statement relating thereto is not effective under the
1933 Act shall execute a Subscription Agreement substantially in the form of
Exhibit B.
---------

     10.  Agreement by Recipient Regarding Withholding Taxes.  Each Recipient
          --------------------------------------------------
agrees that the Corporation, to the extent permitted or required by law, shall
deduct a sufficient number of shares due to the Recipient upon exercise of the
Option or the grant of a Bonus to allow the

                                       9
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Corporation to pay federal, provincial, state and local taxes of any kind
required by law to be withheld upon the exercise of such Option or payment of
such Bonus from any payment of any kind otherwise due to the Recipient. The
Corporation shall not be obligated to advise any Recipient of the existence of
any tax or the amount which the Corporation will be so required to withhold.

     11.  Term of Plan.  Options and Bonuses may be granted under this Plan from
          ------------
time to time within a period of ten years from the date the Plan is adopted by
the Board.

     12.  Amendment and Termination of the Plan.
          -------------------------------------

          (a)  (1)  Subject to the policies, rules and regulations of any lawful
authority having jurisdiction (including any exchange with which the shares of
the Corporation are listed for trading), the Board of Directors may at any time,
without further action by the shareholders, amend the Plan or any Option granted
hereunder in such respects as it may consider advisable and, without limiting
the generality of the foregoing, it may do so to ensure that Options granted
hereunder will comply with any provisions respecting stock options in the income
tax and other laws in force in any country or jurisdiction of which any Option
holders may from time to time be a resident or citizen, or it may at any time
without action by shareholders terminate the Plan.

               (2)  provided, however, that any amendment that would:  (A)
materially increase the number of securities issuable under the Plan to persons
who are subject to Section 16(a) of the 1934 Act; or (B) grant eligibility to a
class of persons who are subject to Section 16(a) of the 1934 Act and are not
included within the terms of the Plan prior to the amendment; or (C) materially
increase the benefits accruing to persons who are subject to Section 16(a) of
the 1934 Act under the Plan; or (D) require shareholder approval under
applicable state law, the rules and regulations of any national securities
exchange on which the Corporation's securities then may be listed, the Internal
Revenue Code or any other applicable law, shall be subject to the approval of
the shareholders of the Corporation as provided in Section 13 hereof.

               (3)  provided further that any such increase or modification that
may result from adjustments authorized by Section 8(i) hereof or which are
required for compliance with the 1934 Act, the Internal Revenue Code, the
Employee Retirement Income Security Act of 1974, their rules or other laws or
judicial order, shall not require such approval of the shareholders.

          (b)  Except as provided in Section 8 hereof, no suspension,
termination, modification or amendment of the Plan may adversely affect any
Option previously granted, unless the written consent of the Recipient is
obtained.

     13.  Approval of Shareholders.  The Plan shall take effect upon its
          ------------------------
adoption by the Board but shall be subject to approval at a duly called and held
meeting of stockholders in conformance with the vote required by the
Corporation's governing documents, resolution of the Board, any other applicable
law and the rules and regulations thereunder, or the rules and

                                       10
<PAGE>

regulations of any national securities exchange upon which the Corporation's
Common Stock is listed and traded, each to the extent applicable.

     14.  Termination of Right of Action.  Every right of action arising out of
          ------------------------------
or in connection with the Plan by or on behalf of the Corporation or any of its
subsidiaries, or by any shareholder of the Corporation or any of its
subsidiaries against any past, present or future member of the Board, or against
any employee, or by an employee (past, present or future) against the
Corporation or any of its subsidiaries, will, irrespective of the place where an
action may be brought and irrespective of the place of residence of any such
shareholder, director or employee, cease and be barred by the expiration of
three years from the date of the act or omission in respect of which such right
of action is alleged to have risen.

     15.  Tax Litigation.  The Corporation shall have the right, but not the
          --------------
obligation, to contest, at its expense, any tax ruling or decision,
administrative or judicial, on any issue which is related to the Plan and which
the Board believes to be important to holders of Options issued under the Plan
and to conduct any such contest or any litigation arising therefrom to a final
decision.

     16.  Adoption.
          --------

          (a)  This Plan was approved by resolution of the Board of Directors of
the Corporation on November 20, 1999.

          (b)  If this Plan is not approved by the shareholders of the
Corporation within 12 months of the date the Plan was approved by the Board as
required by Section 422(b)(1) of the Internal Revenue Code, this Plan and any
Options granted hereunder to Recipients shall be and remain effective, but the
reference to Incentive Stock Options herein shall be deleted and all Options
granted hereunder shall be Non-qualified Stock Options pursuant to Section 7
hereof.

                                 [End of Plan]

                                       11<PAGE>

                                                                    EXHIBIT 10.2

                    NUTRITION FOR LIFE INTERNATIONAL, INC.

                      1995 STOCK OPTION PLAN, AS AMENDED

     This Stock Option Plan (the "Plan") is adopted in consideration for
services rendered and to be rendered to Nutrition For Life International, Inc.
and related companies.

     1.   Definitions.
          -----------

          The terms used in this Plan shall, unless otherwise indicated or
required by the particular context, have the following meanings:

          Board:  The Board of Directors of Nutrition For Life International,
          -----
Inc.

          Code:  The Internal Revenue Code of 1986, as amended.
          ----

          Common Stock:  The $.01 par value Common Stock of Nutrition For Life
          ------------
International, Inc.

          Company:  Nutrition For Life International, Inc., a corporation
          -------
incorporated under the laws of Texas, and any successors in interest by merger,
operation of law, assignment or purchase of all or substantially all of the
property, assets or business of the Company.

          Consultant:  A Consultant is any person, including any advisor,
          ----------
engaged by the Company or any Related Company to render consulting services and
who is compensated for such services.

          Continuous Status as an Employee or Consultant:  The employment by, or
          ----------------------------------------------
relationship as a Consultant with, the Company is not interrupted or terminated.
The Board, at its sole discretion, may determine whether Continuous Status as an
Employee or Consultant shall be considered interrupted due to personal or other
mitigating circumstances.

          Date of Grant:  The date on which an Option is granted under the Plan.
          -------------

          Employee:  An Employee is an employee of the Company or any Related
          --------
Company.

          Fair Market Value:  The Fair Market Value of the Option Shares.  Such
          -----------------
Fair Market Value as of any date shall be reasonably determined by the Option
Committee
<PAGE>

(see below); provided, however, that if there is a public market for the Common
Stock, the Fair Market Value of the Option Shares as of any date shall be the
officially quoted closing price, if available, through the National Association
of Securities Dealers, Inc. or a stock exchange, or if no officially quoted
closing price is available, the representative closing bid price, on the date in
question. In the event there is no officially quoted closing price or bid price
or the Common Stock is not traded publicly, the Fair Market Value of a share of
Common Stock on any date shall be determined, in good faith, by the Board or the
Option Committee after such consultation with outside legal, accounting and
other experts as the Board or the Option Committee may deem advisable, and the
Board or the Option Committee shall maintain a written record of its method of
determining such value.

          Incentive Stock Options ("ISOs"):  "Incentive Stock Options" as that
          --------------------------------
term is defined in Section 422A of the Code.

          Key Employee:  A person designated by the Option Committee who either
          ------------
is employed by the Company or a Related Company (see below) and upon whose
judgment, initiative and efforts the Company or a Related Company is largely
dependent for the successful conduct of its business; provided, however, that
Key Employees shall not include those members of the Board who are not employees
of the Company or a Related Company.

          Non-Incentive Stock Options ("Non-ISOs"):  Options which are not
          ----------------------------------------
intended to qualify as "Incentive Stock Options" under Section 422A of the Code.

          Option:  The rights granted to an Employee or Consultant to purchase
          ------
Common Stock pursuant to the terms and conditions of an Option Agreement (see
below).

          Option Agreement:  The written agreement (and any amendment or
          ----------------
supplement thereto) between the Company and an Employee or Consultant
designating the terms and conditions of an Option.

          Option Committee: The Plan shall be administered by an Option
          ----------------
Committee composed of the Board or a committee, selected by the Board,
consisting of two or more persons, each of whom is not an employee of the
Corporation. The foregoing does not apply to Specific Option Grants.

          Option Shares:  The shares of Common Stock underlying an Option
          -------------
granted to an Employee or Consultant.

          Optionee:  An Employee or Consultant who has been granted an Option.
          --------

          Related Company:  Any corporation that is a "parent corporation" or a
          ---------------
"subsidiary corporation" with respect to the Company, as those terms are defined
in

                                      -2-
<PAGE>

Section 425 of the Code. The determination of whether a corporation is a Related
Company shall be made without regard to whether the corporation or the
relationship between the corporation and the Company now exists or comes into
existence hereinafter.

          Specific Option Grants:  The specific grants of Options as provided in
          ----------------------
Section 9.

     2.   Purpose and Scope.
          -----------------

          (a)  The purpose of this Plan is to advance the interests of the
Company and its stockholders by affording Employees and Consultants an
opportunity for investment in the Company and the incentive advantages inherent
in stock ownership in this Company.

          (b)  This Plan authorizes the Option Committee to grant Options to
purchase shares of Common Stock to Employees and Consultants selected by the
Option Committee while considering criteria such as employment position or other
relationship with the Company, duties and responsibilities, ability,
productivity, length of service or association, morale, interest in the Company,
recommendations by supervisors, and other matters.

     3.   Administration of the Plan.  The Plan shall be administered by the
          --------------------------
Option Committee.  The Option Committee shall have the authority granted to it
under this section and under each other section of the Plan.

          In accordance with and subject to the provisions of the Plan, the
Option Committee shall select the Optionees, shall determine (i) the number of
shares of Common Stock to be subject to each Option, (ii) the time at which each
Option is to be granted, (iii) whether an Option shall be granted in exchange
for the cancellation and termination of a previously granted option or options
under the Plan or otherwise, (iv) the purchase price for the Option Shares, (v)
the option period, and (vi) the manner in which the Option becomes exercisable.
Provided, that, the number of shares of Common Stock to be subject to Options
granted to an Optionee shall not exceed 150,000 in any fiscal year of the
Company. In addition, the Option Committee shall fix such other terms of each
Option as the Option Committee may deem necessary or desirable. The Option
Committee shall determine the form of Option Agreement to evidence each Option.

          The Option Committee from time to time may adopt such rules and
regulations for carrying out the purposes of the Plan as it may deem proper and
in the best interests of the Company. The Option Committee shall keep minutes of
its meetings and those minutes shall be distributed to every member of the
Board.

                                      -3-
<PAGE>

          The Board may from time to time make such changes in and additions to
the Plan as it may deem proper and in the best interest of the Company;
provided, however, that no such change or addition shall impair any Option
previously granted under the Plan, and that the approval by the affirmative
votes of the holders of a majority of the Company's securities entitled to vote
and represented at a meeting duly held in accordance with the applicable laws of
the State of Texas, shall be required for any amendment which would:

          (a)  modify the eligibility requirements for receiving Options under
the Plan;

          (b)  increase the benefits accruing to Employees under the Plan; or

          (c)  increase the number of shares of Common Stock that may be issued
under the Plan.

          All actions taken and all interpretations and determinations made by
the Option Committee in good faith (including determinations of Fair Market
Value) shall be final and binding upon all Employees, Consultants, the Company
and all other interested persons. No member of the Option Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, and all members of the Option Committee shall,
in addition to rights they may have if Directors of the Company, be fully
protected by the Company with respect to any such action, determination or
interpretation.

     4.   The Common Stock.  In addition to the Specific Option Grants, the
          ----------------
Board is authorized to appropriate, issue and sell for the purposes of the Plan,
and the Option Committee is authorized to grant Options with respect to, a total
number, not in excess of 2,000,000 shares of Common Stock, either treasury or
authorized but unissued, or the number and kind of shares of stock or other
securities which in accordance with Section 10 shall be substituted for the
2,000,000 shares or into which such 2,000,000 shares shall be adjusted.  All or
any unsold shares subject to an Option that for any reason expires or otherwise
terminates may again be made subject to Options under the Plan.

     5.   Eligibility.  Options which are intended to qualify as ISOs will
          -----------
be granted only to Key Employees.  Key Employees and other Employees and
Consultants may hold more than one Option under the Plan and may hold Options
under the Plan and options granted pursuant to other plans or otherwise.

     6.   Option Price.  The Option Committee shall determine the purchase
          ------------
price for the Option Shares, provided that the purchase price to be paid by
Optionees for the Option Shares whether ISOs or non-ISOs, shall not be less than
100 percent of the Fair Market Value of the Option Shares on the Date of Grant.
The purchase price for the Option Shares shall be a fixed, and cannot be a
fluctuating, price.

                                      -4-
<PAGE>

     7.   Duration and Exercise of Options.
          --------------------------------

          (a)  The option period shall commence on the Date of Grant and shall
be as set by the Option Committee, but not to exceed 10 years in length. No
Option shall be exercised for the period of six months following the Date of
Grant; provided, however, that this limitation shall not apply to the exercise
of an Option pursuant to the terms of the relevant Option Agreement upon the
Optionee's death.

          (b)  During the lifetime of the Optionee, the Option shall be
exercisable only by the Optionee; provided, that in the event of the legal
disability of an Optionee, the guardian or personal representative of the
Optionee may exercise the Option. However, if the Option is an ISO it may be
exercised by the guardian or personal representative of the Optionee only if
such guardian or personal representative obtains a ruling from the Internal
Revenue Service or an opinion of counsel to the effect that neither the grant
nor the exercise of such power is violative of the Code. Any opinion of counsel
must be both from counsel and in a form acceptable to the Option Committee.

          (c)  The Option Committee may determine whether any Option shall be
exercisable as provided in Paragraph (a) of this Section 7 or whether the
Options shall be exercisable in installments only; if the Option Committee
determines the latter, it shall determine the number of installments and the
percentage of the Option exercisable at each installment date.  All such
installments shall be cumulative.

          (d)  In the event an Optionee's Continuous Status as an Employee or
Consultant terminates because of the death or permanent and total disability of
the Optionee, any Option held by the Optionee on the date of termination may be
exercised within 90 days after the date of termination, but only to the extent
that the Option was exercisable according to its terms on the date of
termination.  After such 90-day period, any unexercised portion of an Option
shall expire.

          (e)  Notwithstanding the provisions of Paragraph (d) of this Section
7, in the event an Optionee's Continuous Status as an Employee or Consultant
terminates for any reason other than the Optionee's death or permanent and total
disability, any unexercised portion of any Option held by the Optionee on the
date of termination may be exercised within 30 days after the date of
termination, but only to the extent that the Option was exercisable according to
its terms on the date of termination. After such 30-day period, any unexercised
portion of an Option shall expire.

          (f)  Each Option shall be exercised in whole or in part by delivering
to the office of the Treasurer of the Company written notice of the number of
shares with respect to which the Option is to be exercised and by paying in full
the purchase price for the Option Shares purchased as set forth in Section 8;
provided, that an Option may not

                                      -5-
<PAGE>

be exercised in part unless the purchase price for the Option Shares purchased
is at least $2,000.

          (g)  No Option may be exercised until the Plan is approved by the
shareholders of the Company as provided in Section 16 below.

          (h)  No Option Shares may be sold, transferred or otherwise disposed
of within six months of the Date of Grant by any person who is subject to the
reporting requirements of Section 16(a) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act") on the Date of Grant.

          (i)  No Option Shares may be sold, transferred or otherwise disposed
of within six months of the date of shareholder approval of the Plan by any
person who is subject to the reporting requirements of Section 16(a) of the
Exchange Act on the date of shareholder approval of the Plan.

     8.   Payment for Option Shares.  If the purchase price of the Option
          -------------------------
Shares purchased by any Optionee at one time exceeds $2,000, the Option
Committee may permit all or part of the purchase price for the Option Shares to
be paid by delivery to the Company for cancellation shares of the Company's
Common Stock previously owned by the Optionee with a Fair Market Value as of the
date of payment equal to the portion of the purchase price for the Option Shares
that the Optionee does not pay in cash. In the case of all other Option
exercises, the purchase price shall be paid in cash or certified funds upon
exercise of the Option.

     9.   Specific Option Grants.  The Company hereby grants to the
          -----------------------
following Key Employees, Options to purchase the Option Shares set forth
opposite their respective names below in this Section 9, and at Exercise Prices
set forth opposite their respective names, such Options to be exercisable
commencing six months from the date of Shareholder approval of this Plan, and to
expire seven years from the date of Grant, unless earlier terminated in
accordance with the provisions of this Plan:

           Name of Optionee       Number of Shares    Exercise Price
           ----------------       ----------------    --------------

           David P. Bertrand             16,000           $2.25
           David P. Bertrand             16,000           $2.70
           Jana Mitcham                  14,000           $2.25
           Jana Mitcham                  14,000           $2.70
           Ronnie Meaux                   7,500           $2.25
           Ronnie Meaux                   7,500           $2.70
           Gregory Pusey                  5,000           $2.25
           Gregory Pusey                  5,000           $2.70

                                      -6-
<PAGE>

     10.  Change in Stock, Adjustments, Etc.  In the event that each of the
          ----------------------------------
outstanding shares of Common Stock (other than shares held by dissenting
shareholders which are not changed or exchanged) should be changed into, or
exchanged for, a different number or kind of shares of stock or other securities
of the Company, or, if further changes or exchanges of any stock or other
securities into which the Common Stock shall have been changed, or for which it
shall have been exchanged, shall be made (whether by reason of merger,
consolidation, reorganization, recapitalization, stock dividends,
reclassification, split-up, combination of shares or otherwise), then there
shall be substituted for each share of Common Stock that is subject to the Plan
but not subject to an outstanding Option thereunder, the number and kind of
shares of stock or other securities into which each outstanding share of Common
Stock (other than shares held by dissenting shareholders which are not changed
or exchanged) shall be so changed or for which each outstanding share of Common
Stock (other than shares held by dissenting shareholders) shall be exchanged.
Any securities so substituted shall be subject to similar successive
adjustments.

          In the event of any such changes or exchanges, the Option Committee
shall determine whether, in order to prevent dilution or enlargement of rights,
an adjustment should be made in the number, or kind, or option price of the
shares or other securities then subject to an Option or Options granted pursuant
to the Plan and the Option Committee shall make any such adjustment, and such
adjustments shall be made and shall be effective and binding for all purposes of
the Plan.

     11.  Relationship to Employment or Position. Nothing contained in the Plan,
          --------------------------------------
or in any Option granted pursuant to the Plan, shall confer upon any Optionee
any right with respect to continuance of employment by the Company, as an
Employee or as a Consultant or interfere in any way with the right of the
Company to terminate the Optionee's employment as an Employee or position as a
Consultant, at any time.

     12.  Nontransferability of Option. No Option granted under the Plan shall
          ----------------------------
be transferable by the Optionee, either voluntarily or involuntarily, except by
will or the laws of descent and distribution, or except pursuant to a qualified
domestic relations order as defined in the Code, the Employee Retirement Income
Security Act, or rules promulgated thereunder. Except as provided in the
preceding sentence, any attempt to transfer the Option shall void the Option.

     13.  Rights as a Stockholder.  No person shall have any rights as a
          -----------------------
shareholder with respect to any share covered by an Option until that person
shall become the holder of record of such share and, except as provided in
Section 10, no adjustments shall be made for dividends or other distributions or
other rights as to which there is an earlier record date.

                                      -7-
<PAGE>

     14.  Securities Laws Requirements.  No Option Shares shall be issued unless
          ----------------------------
and until, in the opinion of the Company, any applicable registration
requirements of the Securities Act of 1933, as amended, any applicable listing
requirements of any securities exchange on which stock of the same class is then
listed, and any other requirements of law or of any regulatory bodies having
jurisdiction over such issuance and delivery, have been fully complied with.
Each Option and each Option Share certificate may be imprinted with legends
reflecting federal and state securities laws, restrictions and conditions, and
the Company may comply therewith and issue "stop transfer" instructions to its
transfer agent and registrar in good faith without liability.

     15.  Disposition of Shares. Each Optionee, as a condition of exercise,
          ---------------------
shall represent, warrant and agree, in a form of written certificate approved by
the Company, as follows: (a) that all Option Shares are being acquired solely
for his own account and not on behalf of any other person or entity; (b) that no
Option Shares will be sold or otherwise distributed in violation of the
Securities Act of 1933, as amended, or any other applicable federal or state
securities laws; (c) that if he is subject to reporting requirements under
Section 16(a) of the Exchange Act, he will (i) not violate Section 16(b) of the
Exchange Act, (ii) furnish the Company with a copy of each Form 4 and Form 5
filed by him, and (iii) timely file all reports required under the federal
securities laws; and (d) that he will report all sales of Option Shares to the
Company in writing on a form prescribed by the Company.

     16.  Effective Date of Plan; Termination Date of Plan.  Subject to the
          ------------------------------------------------
approval of the Plan by the affirmative vote of the holders of a majority of the
Company's securities entitled to vote and represented at a meeting duly held in
accordance with applicable law, the Plan shall be deemed effective as of March
3, 1995.  The Plan shall terminate at midnight on February 28, 2005, except as
to Options previously granted and outstanding under the Plan at that time.  No
Options shall be granted after the date on which the Plan terminates.  The Plan
may be abandoned or terminated at any earlier time by the Board, except with
respect to any Options then outstanding under the Plan.

     17.  Limitation on Amount of Option.  To the extent that the aggregate Fair
          ------------------------------
Market Value (determined at the Date of Grant) of Common Stock with respect to
which ISOs are exercisable for the first time by any Optionee during any
calendar year under all plans of the Company and Related Company exceeds
$100,000, the Options or portions thereof which exceed such limit (according to
the order in which they were granted) shall be treated as Non-ISOs.

     18.  Ten Percent Shareholder Rule.  With respect to ISO's, no Option may be
          ----------------------------
granted to a Key Employee who, at the time the Option is granted, owns stock
possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company or of any "parent corporation" or "subsidiary
corporation", as those terms are defined in Section 425 of the Code, unless at
the time the Option is granted the purchase price for the Option Shares is at
least 110 percent of the Fair Market Value of the Option Shares

                                      -8-
<PAGE>

on the Date of Grant and such Option by its terms is not exercisable after the
expiration of five years from the Date of Grant. For purposes of the preceding
sentence, stock ownership shall be determined as provided in Section 425 of the
Code.

     19.  Withholding Taxes.  The Company, or any Related Company, may take such
          -----------------
steps as it may deem necessary or appropriate for the withholding of any taxes
which the Company, or any Related Company, is required by any law or regulation
or any governmental authority, whether federal, state or local, domestic or
foreign, to withhold in connection with any Option including, but not limited
to, the withholding of all or any portion of any payment or the withholding of
issuance of Option Shares to be issued upon the exercise of any Option.

     20.  Effect of Changes in Control and Certain Reorganizations.
          --------------------------------------------------------

          (a)  In the event of a Change in Control of the Company (as defined
below), the Option Committee may, in its discretion, make any or all of the
following adjustments: (i) provide that all Options granted pursuant to the Plan
shall become exercisable immediately upon such Change in Control (or such other
time as the Committee shall determine), subject to Section 17 with respect to
ISOs; (ii) provide for the payment to an Optionee upon surrender of an Option
(or portion thereof) of an amount in cash equal to the excess of (a) the higher
of (I) the aggregate Fair Market Value of the Option Shares covered by such
Option (or portion thereof) on the date of surrender or (II) the average price
per share paid for the most highly priced one percent of the Common Stock
acquired in connection with the Change in Control times the number of Option
Shares covered by such Option (or portion thereof) over (b) the aggregate
exercise price, except that in no event shall an Optionee have a right to
receive with respect to any ISO an amount in excess of the Fair Market Value on
the date of surrender of the total number of Option Shares with respect to which
such Option is surrendered, less the exercise price which the Optionee would
otherwise have been required to pay upon purchase of such Option Shares had he
exercised the Option; (iii) make any other adjustments, or take such other
action, as the Option Committee, in its discretion, shall deem appropriate. In
the event that the Option Committee provides for the surrender of Options
pursuant to clause (ii) above, to the extent any Option is surrendered, it shall
be deemed to have been exercised for purposes of Section 4. For purposes of this
Section 20, a "Change in Control" of the Company shall mean a change in control
of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Exchange Act, whether or
not the Company is then subject to such reporting requirement; provided that,
without limitation, a Change in Control shall be deemed to have occurred if (i)
any individual, partnership, firm, corporation, association, trust,
unincorporated organization or other entity, or any syndicate or group deemed to
be a person under Section 14(d)(2) of the Exchange Act, is or becomes the
"beneficial owner" (within the meaning of Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder), directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power
of the Company's then

                                      -9-
<PAGE>

outstanding securities entitled to vote in the election of directors of the
Company; or (ii) during any period of two consecutive years (not including any
period prior to the adoption of this Plan), individuals who at the beginning of
such period constituted the Board and any new directors, whose appointment by
the Board or nomination for election by the Company's shareholders was approved
by a vote of at least a majority of the directors then still in office who
either were directors at the beginning of the period or whose appointment or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof.

          (b)  In the event that (i) the Company is merged or consolidated with
another corporation, (ii) one person becomes the beneficial owner of all of the
issued and outstanding equity securities of the Company (for purposes of this
Section 20(b), the terms "person" and "beneficial owner" shall have the meanings
assigned to them in Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder), (iii) a division or subsidiary of the
Company is acquired by another corporation, person or entity, (iv) all or
substantially all of the assets of the Company are acquired by another
corporation, (v) the Company is reorganized, dissolved or liquidated (each such
event in (i), (ii), (iii), (iv) or (v) being hereinafter referred to as a
"Reorganization Event"), or (vi) the Board shall propose that the Company enter
into a Reorganization Event, then the Option Committee may, in its sole
discretion, make any or all of the following adjustments: (A) by written notice
to each Optionee provide that such Optionee's Options shall be terminated or
cancelled, unless exercised within thirty (30) days (or such other period as the
Option Committee shall determine) after the date of such notice; (B) subject to
Section 17 with respect to ISOs, advance the dates upon which any or all
outstanding Options shall be exercised; (C) provide for the payment upon
termination or cancellation of an Option of an amount in cash or securities
equal to the excess, if any, of the Fair Market Value of the Option Shares
subject to the Option at the time of such termination or cancellation over the
exercise price of such Option; and (D) make any other adjustments, or take such
other action, as the Option Committee, in its discretion, shall deem
appropriate. Any action taken by the Option Committee may be made conditional
upon the consummation of the applicable Reorganization Event.

     21.  Other Provisions.
          ----------------

               (a)  The use of a masculine gender in the Plan shall also include
within its meaning the feminine, and the singular may include the plural, and
the plural may include the singular, unless the context clearly indicates to the
contrary.

               (b)  Any expenses of administering the Plan shall be borne by the
Company.

               (c)  This Plan shall be construed to be in addition to any and
all other compensation plans or programs. Neither the adoption of the Plan by
the Board nor the submission of the Plan to the shareholders of the Company for
approval shall be

                                      -10-
<PAGE>

construed as creating any limitations on the power of authority of the Board to
adopt such other additional incentive or other compensation arrangements as the
Board may deem necessary or desirable.

               (d)   The validity, construction, interpretation, administration
and effect of the Plan and of its rules and regulations, and the rights of any
and all personnel having or claiming to have an interest therein or thereunder
shall be governed by and determined exclusively and solely in accordance with
the laws of the State of Texas.

                                * * * * * * * *

                                      -11-

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