Document:

EX-10.7
                                 DATAMEG CORP.

                             STOCK OPTION AGREEMENT

1. Grant of Option. DataMEG Corp., a New York corporation (the
"Company"), hereby grants to Rex Hester (the "Optionee") an option to
purchase an aggregate of One Million Seven Hundred Fifty Thousand
(1,750,000) shares of Common Stock ("Common Stock") of the Company at a
price of One Cent ($0.01) per share, purchasable as set forth in and
subject to the terms and conditions of this option.

2. Non-Statutory Stock Option.  This option is not intended to
qualify as an incentive stock option within the meaning of Section 422
of the Internal Revenue Code.

3. Exercise of option and Provisions for Termination.

  (a) Vesting Schedule.  Except as otherwise provided in this
Agreement, this option is fully vested as of the date hereof and may be
exercised prior to the tenth anniversary of the date of grant
(hereinafter the "Expiration Date").

The right of exercise shall be cumulative so that if the option is not
exercised to the maximum extent permissible at any time, it shall be
exercisable, in whole or in part, with respect to all shares not so
purchased at any time prior to the Expiration Date or the earlier
termination of this option.  This option may not be exercised at any
time on or after the Expiration Date, except as otherwise provided in
Section 3(c) below.

  (b) Exercise Procedure.  Subject to the conditions set forth in this
Agreement, this option shall be exercised by the Optionee's delivery of
written notice of exercise in the form attached hereto as Exhibit "A" to
the President of the Company, specifying the number of shares to be
purchased and the purchase price to be paid therefor and accompanied by
payment in full in accordance with Section 4.  Such exercise shall be
effective upon receipt by the President of the Company of such written
notice together with the required payment.  The Optionee may purchase
less than the number of shares covered hereby, provided that no partial
exercise of this option may be for any fractional share or for fewer
than One Thousand (1,000) whole shares.

  (c) Exercise Period Upon Death or Disability.  If the Optionee dies
or becomes disabled this option shall be exercisable, within the period
of one year following the date of death or disability of the Optionee
(whether or not such exercise occurs before the Expiration Date), by the
Optionee or by the person to whom this option is transferred by will or
the laws of descent and distribution, provided that this option shall be
exercisable only to the extent that this option was exercisable by the
Optionee on the date of his or her death or disability.  Except as
otherwise indicated by the context, the term "Optionee," as used in this
option, shall be deemed to include the estate of the Optionee or any
person who acquires the right to exercise this option by bequest or
inheritance or otherwise by reason of the death of the Optionee.

4. Payment of Purchase Price.

  (a) Method of Payment.  Payment of the purchase price for shares
purchased upon exercise of this option shall be made (i) by delivery to
the Company of cash or a check to the order of the Company in an amount
equal to the purchase price of such shares, (ii) subject to the consent
of the Company, by delivery to the Company of shares of Common Stock of
the Company then owned by the Optionee having a fair market value equal
in amount to the purchase price of such shares, (iii) by any other means
which the Company's Board of Directors determines are consistent with
the applicable laws and regulations (including, without limitation, the
provisions of Rule 16b-3 under the Securities Exchange Act of 1934 and
Regulation T promulgated by the Federal Reserve Board), or (iv) by any
combination of such methods of payment.

  (b) Valuation of Shares or Other Non-Cash Consideration Tendered in
Payment of Purchase Price.  For the purposes hereof, the fair market
value of any share of the Company's Common Stock or other non-cash
consideration which may be delivered to the Company in exercise of this
option shall be determined in good faith by the Board of Directors of
the Company.

  (c) Delivery of Shares Tendered in Payment of Purchase Price.  If
the Optionee exercises this option by delivery of shares of Common Stock
of the Company, the certificate or certificates representing the shares
of Common Stock of the Company to be delivered shall be duly executed in
blank by the Optionee or shall be accompanied by a stock power duly
executed in blank suitable for purposes of transferring such shares to
the Company.  Fractional shares of Common Stock of the Company will not
be accepted in payment of the purchase price of shares acquired upon
exercise of this option.

  (d) Restrictions on Use of Option Stock.  Notwithstanding the
foregoing, no shares of Common Stock of the Company may be tendered in
payment of the purchase price of shares purchased upon exercise of this
option if the shares to be so tendered were acquired within twelve (12)
months before the date of such tender through the exercise of this
option or any other option granted by the Company under any stock option
or restricted stock plan of the Company.

5. Delivery of Shares; Compliance With Securities Laws, Etc.

  (a) General.  The Company shall, upon payment of the option price
for the number of shares purchased and paid for, make prompt delivery of
such shares to the Optionee, provided that if any law or regulation
requires the Company to take any action with respect to such shares
before the issuance thereof, then the date of delivery of such shares
shall be extended for the period necessary to complete such action.

  (b) Listing, Qualification, Etc.  This option shall be subject to
the requirement that if, at any time, counsel to the Company shall
determine that the listing, registration or qualification of the shares
subject hereto upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental or
regulatory body, or that the disclosure of non-public information or the
satisfaction of any other condition is necessary as a condition of, or
in connection with, the issuance or purchase of shares hereunder, this
option may not be exercised, in whole or in part, unless such listing,
registration, qualification, consent or approval, disclosure or
satisfaction of such other condition shall have been effected or
obtained on terms acceptable to the Board of Directors.  Nothing herein
shall be deemed to require the Company to apply for, effect or obtain
such listing, registration, qualification or disclosure, or to satisfy
such other condition.

6. Nontransferability of Option.  This option is personal and no
rights granted hereunder may be transferred, assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) nor
shall any such rights be subject to execution, attachment or similar
process, except that this option may be transferred (i) by will or the
laws of descent and distribution or (ii) pursuant to a qualified
domestic relations order as defined in Section 414(p) of the Internal
Revenue Code.  Upon any attempt to transfer, assign, pledge, hypothecate
or otherwise dispose of this option or of such rights contrary to the
provisions hereof, or upon the levy of any attachment or similar process
upon this option or such rights, this option and such rights shall, at
the election of the Company, become null and void.

7. Rights as a Shareholder. The Optionee shall have no rights as a
shareholder with respect to any shares which may be purchased by
exercise of this option (including, without limitation, any rights to
receive dividends or non-cash distributions with respect to such shares)
unless and until a certificate representing such shares is duly issued
and delivered to the Optionee.  No adjustment shall be made for
dividends or other rights for which the record date is prior to the date
such stock certificate is issued.

8. Adjustment Provisions for Recapitalizations and Related
Transactions.

  (a) General.  If, through or as a result of any merger,
consolidation, sale of all or substantially all of the assets of the
Corporation, reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split or other similar transaction,

        (i) the outstanding shares of Common Stock are increased,
        decreased or exchanged for a different number or kind of shares
        or other securities of the Corporation, or

        (ii) additional shares or new or different shares or other
        securities of the Corporation or other non-cash assets are
        distributed with respect to such shares of Common Stock or other
        securities,

an appropriate and proportionate adjustment shall be made in (x) the
number and kind of shares or other securities subject to this Option
Agreement, and (y) the price for each share subject to this Option
Agreement, without changing the aggregate purchase price as to which
such options remain exercisable.

  (b) Board Authority to Make Adjustments.  Any adjustments under this
Section 8 will be made by the Board of Directors, whose determination as
to what adjustments, if any, will be made and the extent thereof will be
final, binding and conclusive.  No fractional shares will be issued
pursuant to this option on account of any such adjustments.

9. Withholding Taxes.  The Company's obligation to deliver shares
upon the exercise of this option shall be subject to the Optionee's
satisfaction of all applicable federal, state and local income and
employment tax withholding requirements.

10. Investment Representations; Legends.

  (a) Representations.  The Optionee represents, warrants and
covenants that:

        (i) Any shares purchased upon exercise of this option shall
        be acquired for the Optionee's account for investment only, and
        not with a view to, or for sale in connection with, any
        distribution of the shares in violation of the Securities Act of
        1933 (the "Securities Act"), or any rule or regulation under the
        Securities Act.

        (ii) The Optionee has had such opportunity as he or she has
        deemed adequate to obtain from representatives of the Company
        such information as is necessary to permit the Optionee to
        evaluate the merits and risks of his or her investment in the
        Company.

        (iii) The Optionee is able to bear the economic risk of
        holding such shares acquired pursuant to the exercise of this
        option for an indefinite period.

        (iv) The Optionee understands that (A) the shares acquired
        pursuant to the exercise of this option will not be registered
        under the Securities Act and are "restricted securities" within
        the meaning of Rule 144 under the Securities Act; (B) such
        shares cannot be sold, transferred or otherwise disposed of
        unless they are subsequently registered under the Securities Act
        or an exemption from registration is then available; (C) in any
        event, an exemption from registration under Rule 144 or
        otherwise under the Securities Act not be available for at least
        two years and even then will not be available unless a public
        market then exists for the Common Stock, adequate information
        concerning the Company is then available to the public, and
        other terms and conditions of Rule 144 are complied with; and
        (D) there is now no registration statement on file with the
        Securities and Exchange Commission with respect to any stock of
        the Company and the Company has no obligation or current
        intention to register any shares acquired pursuant to the
        exercise of this option under the Securities Act.

        (v) The Optionee agrees that, if the Company offers any of
        its Common Stock for sale pursuant to a registration statement
        under the Securities Act, the Optionee will not, without the
        prior written consent of the Company, offer, sell, contract to
        sell or otherwise dispose of, directly or indirectly (a
        "Disposition"), any shares purchased upon exercise of this
        option for a period of 90 days after the effective date of such
        registration statement.

By making payment upon exercise of this option, the Optionee shall be
deemed to have reaffirmed, as of the date of such payment, the
representations made in this Section 10.

  (b) Legends on Stock Certificate.  All stock certificates
representing shares of Common Stock issued to the Optionee upon exercise
of this option shall have affixed thereto legends substantially in the
following forms, in addition to any other legends required by applicable
state Law:

"The shares of stock represented by this certificate have not been
registered under the Securities Act of 1933 and may not be transferred,
sold or otherwise disposed of in the absence of an effective
registration statement with respect to the shares evidenced by this
certificate, filed and made effective under the Securities Act of 1933,
or an opinion of counsel satisfactory to the Company to the effect that
registration under such Act is not required."

"The shares of stock represented by this certificate are subject to
certain restrictions on transfer contained in an Option Agreement, a
copy of which will be furnished upon request by the issuer."

11. Miscellaneous.

  (a) Except as provided herein, this option may not be amended or
otherwise modified unless evidenced in writing and signed by the Company
and the Optionee.

  (b) All notices under this option shall be mailed or delivered by
hand to the parties at their respective addresses set forth beneath
their names below or at such other address as may be designated in
writing by either of the parties to one another.

  (c) This option shall be governed by and construed in accordance
with the laws of the Commonwealth of Massachusetts, without reference to
its conflict of laws provisions.

                                 DATAMEG CORP.

January __, 2004 By: Andrew Benson, President Hereunto Duly Authorized

OPTIONEE'S ACCEPTANCE

        The undersigned hereby accepts the foregoing option and agrees to the
        terms and conditions thereof.

                                    OPTIONEE

Date: January __, 2004 Rex Hester Address:  XXXX XXXXX XXXXXX, NC 27207

EXHIBIT 1

Notice of Option Exercise

Date:

TO: The President of DataMEG Corp.:

        The undersigned, in accordance with the provisions of a stock option
        agreement ("agreement") between datameg corp. ("Corporation") and the
        undersigned, hereby gives notice pursuant to section 3(b) of the
        agreement of the undersigned's exercise of the option pursuant to the
        agreement to purchase (#)____________ common shares of the corporation
        for the aggregate payment for said shares of $____________ ("price")
        payable as follows (please check one):

       By the tender of a check for immediately available funds for the entire
       price (enclose check made payable to "datameg corp.");

       Subject to the consent of the corporation, by tendering (#)____________
       shares of the corporation's (type)_____________ stock;

       Subject to the consent of the corporation, by tendering $____________ in
       cash (enclose check made payable to "datameg corp.") and (#)____________
       shares of the corporation's (type)_____________ stock; or

       By alternative means approved by the corporation's board of directors as
       follows:
________________________________________________________________________________
________________________________________________________________________________
_________________________________________

        The undersigned represents and warrants to the Corporation that all of
        the representations and warranties set forth in Section 10(a) of the
        Agreement are true and correct as of the date of this Notice.

                                                Signature:

                                                Name:

                                                Address:

                                                Social Security Number:EX-10.8

LOCK-UP AGREEMENT

This Lock-up Agreement (the "Lock-Up Agreement") dated as of ______________,
2004, is by and between DataMEG Corp., a New York corporation, having usual
place of business at XXXXX XXXX XXX, XXXXX XXXX, Boston, MA 02116 ("DataMEG")
and Rex Hester, of XXXXX XXXX XXXXX XXX XXXXXX, North Carolina ("Hester").

WHEREAS, on the date hereof, DataMEG and Hester entered into that certain
Settlement Agreement and Mutual Release ("Settlement Agreement") (capitalized
terms used and not otherwise defined herein shall have the respective meanings
ascribed to them in the Settlement Agreement);

WHEREAS, pursuant to Section 1 of the Settlement Agreement DataMEG shall deliver
to the Hester One Million Seven Hundred Fifty Thousand (1,750,000) shares of the
common stock, $.01 par value of DataMEG, to be subject to this Lock-Up
Agreement.

WHEREAS, as an inducement and a condition to DataMEG entering into the
Settlement Agreement, and incurring the obligations set forth therein, DataMEG
has required that Hester enter into this Lock-Up Agreement.

NOW THEREFORE, for and in consideration of the mutual agreements, terms,
covenants and conditions herein and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the parties agree as
follows:

1.  Recitals.  The foregoing recitals are incorporated into and made an integral
part of this Lock-Up Agreement.

2. Lock-up. DataMEG entered into the Settlement Agreement and Mutual Release in
reliance upon the covenants of Hester contained herein, and for other good and
valuable consideration, receipt of which is hereby acknowledged, Hester agrees,
for the benefit of DataMEG, that in each calendar month, for as long as Hester
holds the Option or the shares subject to the Option (the "Lock-Up Period"), not
to offer to sell, contract to sell or otherwise sell, dispose of loan, pledge or
grant any rights with respect to (collectively, a "Disposition") any number of
shares of common stock, $.01 par value of the DataMEG ("Common Stock"), any
options or warrants to purchase any shares of Common Stock or any securities
convertible into or exchangeable for shares of Common Stock (collectively,
"Securities"), now owned or hereafter acquired directly by the Hester or with
respect to which the Hester has or hereafter acquires the power of disposition,
exceeding _________("Limitation"),  otherwise than (i) as a bonafide gift or
gifts, provided the donee or donees thereof agree to be bound by this Lock-Up
Agreement, or (ii) with the prior written consent of DataMEG. The foregoing
restriction is expressly agreed to preclude the holder of the Securities from
engaging in any hedging or other transaction which is designed to or reasonably
expected to lead to or result in a Disposition of Securities during the Lock-Up
Period exceeding the Limitation even if such Securities would be disposed of by
someone other than Hester.  Such prohibited hedging or other transactions would
include without limitation any short sale (whether or not against the box) or
any purchase, sale or grant of any right (including without limitation any put
or call option) with respect to any Securities or with respect to any security
(other than a broad-based market basket or index) that includes, relates to or
derives any significant part of its value from Securities.

3. Hester hereby agrees and consents to the entry of stop transfer instructions
with the Company's transfer agent against the transfer of the Securities held by
Hester except in compliance with this Lock-Up Agreement.

4. Any Disposition of Securities allowed under this Lock-Up Agreement shall not
be conducted except in compliance with the applicable provisions of the
Securities Act of 1933, as amended ("1933 Act") and the rules and regulations
promulgated thereunder.

5. Registration.  The shares of Common Stock have not been registered under the
1933 Act, or any other similar federal or state securities statute, and may only
be transferred upon registration of the shares under the foregoing statutes and
applicable regulations adopted thereunder or upon the delivery to DataMEG of an
opinion of counsel satisfactory to DataMEG that such registration is not
required.  DataMEG agrees that it will include the Shares subject to the
Settlement Agreement in the next legally permissible registration statement
filed with the Securities and Exchange Commission.

6. Notices. Any notice or other communication which is required or permitted
under this Lock-Up Agreement shall be in writing and shall be deemed to have
been given, delivered, or made, as the case may be (notwithstanding lack of
actual receipt by the addressee) (i) on the date sent if delivered personally or
by cable, telecopy, telegram, telex, or facsimile (which is confirmed) or (ii)
three (3) business days after having been deposited in the United States mail,
certified or registered, return receipt requested, sufficient postage affixed
and prepaid, or (iii) one (1) business day after having been deposited with a
nationally recognized overnight courier service (such as by way of example, but
not limitation, U.S. Express Mail, Federal Express, or Airborne), to the parties
at the following addresses (or at such other address for a party as shall be
specified by like notice):

If to Company:                  DataMEG Corp. 20 Park Plaza,
                                XXXX XXXXX Boston, MA 02116
                                Attn.: Andrew Benson
                                Telecopy No.:  (617) ________

If to Hester:                   Rex Hester XXXX XXXXX XXXX
                                XXXXXXXX, NC 27207
                                Telecopy No.:___________

7. Amendment, Assignments, Jurisdiction.  This Lock-Up Agreement shall not be
amended except by an instrument in writing signed by all the parties hereto.
This Lock-Up Agreement may be executed in one or more counterparts, each of
which shall be deemed an original. Neither this Lock-Up Agreement nor any of the
rights, interests or obligations under this Lock-Up Agreement shall be assigned
or delegated, in whole or in part, by operation of law or otherwise, by any of
the parties hereto without the prior written consent of the other parties.  In
the event that any provision of this Lock-Up Agreement is held to be illegal or
unenforceable, the remainder of this Lock-Up Agreement shall remain in full
force and effect.  This Lock-Up Agreement shall be construed and enforced in
accordance with the laws of the Commonwealth of Massachusetts, without reference
to its so-called conflict of laws provisions.

[Signatures on the following page.]

        IN WITNESS WHEREOF, the parties hereto have duly executed this Lock-up
        Agreement under seal as of the date first written above.

                                                HESTER:

                                                Rex Hester

                                                DATAMEG:

                                                DataMEG Corp.

                                                By: Andrew Benson, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]