Document:

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                                                                 EXHIBIT 10.6(a)

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND THEY MAY NOT BE OFFERED, SOLD, PLEDGED,
HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (I) PURSUANT TO A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT WHICH HAS BECOME EFFECTIVE AND IS CURRENT
WITH RESPECT TO THESE SECURITIES, OR (II) PURSUANT TO A SPECIFIC EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, BUT ONLY UPON A HOLDER HEREOF FIRST
HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL TO THE ISSUER, OR OTHER COUNSEL
REASONABLY ACCEPTABLE TO THE ISSUER, THAT THE PROPOSED DISPOSITION IS EXEMPT
FROM REGISTRATION UNDER THE SECURITIES ACT.

                                     OPTION

     This OPTION (the "Option") is granted as of the __ day of January, 2000
("Grant Date") by I.T. Technology, Inc., a Delaware corporation (the "Issuer"),
to Robert Petty ("Holder").

                                     RECITAL

     In consideration for Holder's agreement to serve as a consultant of the
Issuer, the Issuer has agreed to issue to Holder, Options, permitting the Holder
purchase of One Million Four Hundred and Fifty Thousand (1,450,000) shares of
the Common Stock of the Issuer (subject to adjustment pursuant to Section 15
below) on the terms and conditions set forth below (collectively, the "Option
Shares").

                                    AGREEMENT

     NOW, THEREFORE, in consideration of these premises and the mutual covenants
and agreements hereinafter set forth, and for other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
Issuer and Holder agree as follows:

     1. GRANT OF OPTION.

     The Issuer hereby grants to Holder the right and option (the "Option"),
upon the terms and subject to the conditions set forth in this Option, to
purchase the Option Shares, at a per share exercise price equal to $1.00 per
share (the "Exercise Price"), with the exception of the Third Capitalization
Option (the "Third Option"), which shall have an exercise price of $2.00 per
option share.

     2. TERM OF OPTION.

     The Option shall terminate and expire at 5:00 p.m., New York time, upon the
earlier occurrence of either (i) the second (2nd) anniversary of the Vesting
Date, (ii) the fifth (5th) anniversary of the Grant Date, or (iii) 30 days
after termination of Holder's employment or consulting arrangement for the
Issuer (the "Option Expiration Date").

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     3. VESTING OF OPTION.

     The Options following number of Options shall vest upon the occurrence of
the following events ("Vesting Date"), no Options may vest after the
termination of Petty's employment or consulting arrangement with the Issuer:

          (a) Options to purchase Two Hundred Fifty Thousand (250,000) shares
shall vest upon the Corporation reaching a market capitalization of One Hundred
Fifty Million Dollars ($150,000,000) for thirty (30) consecutive business days
within three (3) years of the Grant Date ("First Capitalization Option");

          (b) Options to purchase Three Hundred Fifty Thousand (350,000) shares
shall vest upon the Corporation reaching a market capitalization of Three
Hundred Million Dollars ($300,000,000) for sixty (60) consecutive business days
within three (3) years of the Grant Date ("Second Capitalization Option");

          (c) Options to purchase Five Hundred Thousand (500,000) shares shall
vest upon the Corporation reaching a market capitalization of Seven Hundred
Million Dollars ($700,000,000) for sixty (60) consecutive business days within
three (3) years of the Grant Date ("Third Capitalization Option");

          (d) Options to purchase One Hundred Seventy-Five Thousand (175,000)
shares shall vest upon the successful sale within three (3) years of the Grant
Date of equity securities of Stampville in an initial public offering through
the means of a registration statement which has been declared effective by the
SEC ("Stampville IPO Option"); and

          (e) Options to purchase One Hundred Seventy-Five Thousand (175,000)
shares shall vest upon the successful sale within three (3) years of the Grant
Date of (1) equity of securities of one of the Issuer's majority owned
subsidiaries (other than Stampville) (the "Subsidiary") in an initial public
offering through a registration statement which has been declared effective by
the SEC or (2) all or any portion of the shares or assets of such Subsidiary for
no less than $50,000,000 ("Subsidiary IPO Option").

          (f) Notwithstanding anything to the contrary contained above, all
unvested Options shall vest upon the consummation by the Issuer of a merger,
reorganization, sale of the Issuer's capital stock or other corporate
transaction where the shareholders of the Issuer immediately prior to such
transaction do not constitute a majority of the shareholders of the surviving
entity immediately following the transaction (the "Change of Control
Transaction"); provided, further however, that such Change of Control
Transaction occurs only after (1) the effectiveness of an IPO by the Issuer and
(2) where the market capitalization of the Issuer immediately prior to the
consummation of the Change of Control Transaction is at least $150,000,000.

          (g) In addition to the foregoing, the Holder agrees that
notwithstanding anything to the contrary contained above, no Option may not be
exercised unless and until any

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then-applicable requirements of all state and federal securities laws shall have
been fully complied with to the reasonable satisfaction of the Issuer and its
counsel; provided, however, that the Issuer use its best efforts to comply with
the requirements of all such state and federal securities laws.

     4. EXERCISE OF OPTION.

     There is no obligation to exercise the Option, but the Option may be
exercised in whole or in part at any time or from time to time on or prior to
the Option Expiration Date. A new Option shall be issued for the amount of
unexercised shares. The Option must be exercised by delivery to the Issuer of:

          (a) written notice of exercise in substantially the form of Exhibit
"A" attached to this Option; and

          (b) payment of the Exercise Price of the Option Shares pursuant to
Section 6.

     Upon receipt of the foregoing, the Issuer shall promptly issue in the name
of the Holder one or more stock certificates evidencing the Option Shares issued
pursuant to such exercise and deliver such certificate(s) to the Holder in such
denominations as the Holder shall request.

     5. SALE OF OPTION SHARES.

     (a) Sale Restriction. The Holder hereby agrees that, notwithstanding
anything in this Option to the contrary, the Holder shall be entitled to sell
from Open Shares issued to him pursuant to the exercise of Options, no more than
twenty percent (20%) of the total number of Option Shares during any twelve (12)
month period.

     (b) Notice of Offer, Right of First Refusal. Holder shall first offer to
the Issuer any Option Shares, Holder wishes to sell (the "Offer"). In the event
Holder is entitled and intends to sell such Option Shares to the public, the
offering price shall be deemed to be the closing trading price of the Issuer's
common stock on the last trading day prior to the day on which the Issuer
receives notice from the Holder of the intended sale . In the event Holder
wishes to sell any Option Shares in private placement, Holder agrees that upon
receiving a bona fide offer by a third party to purchase all or any of the
Option Shares which the Holder is willing to accept the Holder shall give notice
thereof to the Issuer. The notice shall specify:

          (1) The number Option Shares proposed to be sold (the "Offered
Shares");

          (2) The identity of the proposed buyer;

          (3) The consideration to be received for the Offered Shares; and

          (4) The terms and conditions upon which the Holder intends to make the
sale.

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This notice shall be accompanied by a true and complete copy of the proposed
buyer's written offer. The Issuer shall have ten (10) business days to notify
the Holder of its acceptance of any Offer by the Holder to sell the Offered
Shares to the Issuer. The Issuer shall have the right to purchase all or a
portion of the Offered Shares at the price per Share and on the terms set forth
in the Offer, which it may exercise only by giving written notice thereof to the
Holder (the "Issuer's Acceptance"), during the ten (30) business day period
following the receipt of the Holder's notice. The Issuer's Acceptance shall
specify the number of the Offered Shares that the Issuer desires to purchase.
The Holder shall not participate in any vote that may be required in connection
with the Issuer's decision as to whether to exercise its right to purchase any
or all of the Offered Shares.

     (c) Closing for Right of First Refusal Purchase. If the Issuer exercises
its right to purchase the Offered Shares, the closing of such purchase shall
take place on or before the thirtieth (30th) day following the date that the
Issuer, gave notice of the exercise of its right to purchase such Shares. The
Issuer shall give written notice to the Holder of the closing date and the
location of the closing for the purchase by Issuer, at least five (5) days prior
to such date.

     (d) Transfer of Offered Shares to Third Party. Notwithstanding any other
provision in this Section, if and only if the Issuer either (i) does not
exercise its rights to purchase all or a portion of the Offered Shares in
accordance with the terms and conditions set forth in this Section or (ii) after
exercising such rights, the Issuer fails to consummate such purchases through no
fault of the Holder, then Holder may carry out its proposed sale to the proposed
buyer in accordance with the terms set forth in the Offer.

     6. DELIVERY OF SHARES; PAYMENT OF EXERCISE PRICE.

     Payment of the Exercise Price may be made as follows: (i) in United States
currency by wire transfer to an account designated by the Issuer or by cash or
by delivery of a certified check, bank draft or postal or express money order
payable to the order of the Issuer, or (ii) in the discretion of the Plan
Administrator, upon such terms as the Plan Administrator shall approve, a copy
of instructions to a broker directing such broker to sell the Common Stock for
which such Option is exercised, and to remit to the Issuer the aggregate
exercise price of such Options (a "cashless exercise"); (iii) in the discretion
of the Issuer, upon such terms as the Issuer shall approve, the Holder may pay
all or a portion of the purchase price for the number of shares being purchased
by tendering shares of the Issuer's Common Stock owned by the Holder, duly
endorsed for transfer to the Issuer, with a fair market value on the date of
delivery equal to the aggregate purchase price of the shares with respect to
which such Option or portion is thereby exercised (a "stock-for-stock
exercise"), or (iv) in the discretion of the Issuer, upon such terms as the
Issuer shall approve, the Holder may pay all or a portion of the purchase price
for the number of shares being purchased by withholding shares of stock from any
transfer or payment to the Optionee ("stock withholding exercise").

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     7. RESTRICTIONS ON OPTION SHARES.

     Unless the Issuer has on file with the Securities and Exchange Commission
(the "SEC") an effective registration statement covering the reoffer or resale
of the Option Shares issued to the Holder, each certificate for Option Shares
issued upon the exercise of the Option, shall be stamped or otherwise imprinted
with a legend in substantially the following form:

          THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933, AS AMENDED (THE "SECURITIES ACT"), AND THEY MAY NOT BE OFFERED,
          SOLD, PLEDGED, HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (i)
          PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WHICH
          HAS BECOME EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES,
          OR (ii) PURSUANT TO A SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE
          SECURITIES ACT, BUT ONLY UPON A HOLDER HEREOF FIRST HAVING OBTAINED
          THE WRITTEN OPINION OF COUNSEL TO THE ISSUER, OR OTHER COUNSEL
          REASONABLY ACCEPTABLE TO THE ISSUER, THAT THE PROPOSED DISPOSITION IS
          EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT.

     8. REPRESENTATIONS AND WARRANTIES OF THE ISSUER.

     The Issuer represents and Options that it has properly set aside and
reserved from its authorized but unissued shares of Common Stock, and will at
all times maintain as reserved, a number of shares equal to the Option Shares.
The Option Shares will, upon issuance, be duly authorized, validly issued, fully
paid and nonassessible and free from all preemptive rights of any shareholders
and free of all taxes, liens and charges with respect to the issuance thereof.
Except as expressly set forth in this Section 8, the Issuer has made no
representation, warranty, covenant or agreement regarding the Option, the shares
issuable in connection therewith or any other matter relating thereto. including
but not limited to whether or not the Issuer shall file a registration statement
with the SEC, if such a registration statement is filed, whether the SEC will
declare the registration Statement effective.

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     9. RESERVE.

     The Issuer shall at all times reserve and keep available out of its
authorized but unissued shares of Common Stock, solely for the purpose of
maintaining a reserve equal to the number of Option Shares, and if at any time
the number of authorized but unissued shares of Common Stock shall not be
sufficient to effect the issuance of Common Stock upon exercise of the Option,
the Issuer shall promptly seek such corporate action as may, in the opinion of
its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purpose.
In the event of the consolidation or merger of the Issuer with another
corporation where the Issuer is not the surviving corporation, effective
provision shall be made in the Certificate or Articles of Incorporation,
documents of merger or consolidation, or otherwise, of the surviving corporation
so that such corporation will at all times reserve and keep available a
sufficient number of shares of Common Stock or other securities or property to
provide for the Option in accordance with the provisions of this Section 9.

     10. NO RIGHTS AS STOCKHOLDER.

     Holder shall have no rights as a stockholder of the Issuer with respect to
the Option Shares until the date the exercise notice is received by the Issuer
together with payment (the "Exercise Date"). No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions or other rights for which the record date is prior to
the Exercise Date.

     11. LOST, MUTILATED OR MISSING OPTION.

     Upon receipt by the Issuer of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Option, and, in the case of loss,
theft or destruction, upon receipt of indemnification, or, in the case of
mutilation, upon surrender and cancellation of the mutilated Option, the Issuer
shall execute and deliver a new Option of like tenor and representing the right
to purchase the same aggregate number of Option Shares.

     12. TAXES.

     The Issuer shall pay all expenses, taxes and owner charges payable in
connection with the preparation, issuance and delivery of certificates for the
Option Shares and any new Options, except that if the certificates for the
Option Shares or the new Options are to be registered in a name or names other
than the name of the Option Holder, funds sufficient to pay all transfer taxes
payable as a result of such transfer shall be paid by the Option Holder at the
time of its delivery of the Notice of Exercise or promptly upon receipt of a
written request by the Issuer for payment

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     13. NO IMPAIRMENT.

     The Issuer will not, by amendment of its Certificate of Incorporation or
through any reorganization, recapitalization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Issuer, but will at all times in good
faith assist in the carrying out of all the provisions of this Option and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Holder against impairment.

     14. ADJUSTMENT.

     (a) If outstanding shares of the Common Stock of the Issuer shall be
subdivided into a greater number of shares, or a dividend in Common Stock or
other securities of the Issuer convertible into or exchangeable for Common Stock
(in which latter event the number of shares of Common Stock issuable upon the
conversion or exchange of such securities shall be deemed to have been
distributed), shall be paid or distributed in respect to the Common Stock of the
Issuer, the number of Option Shares for which this Option may be exercised
immediately prior to such subdivision or at the record date of such dividend
shall, simultaneously with the effectiveness of such subdivision or immediately
after the record date of such dividend or other distribution, be proportionately
increased, and conversely, if outstanding shares of the Common Stock of the
Issuer shall be combined into a smaller number of shares, the number of Option
Shares for which this Option may be exercised prior to such combination shall,
simultaneously with the effectiveness of such combination, be proportionately
decreased. Any adjustment to the Option Shares under this Section 14(a) shall
become effective at the close of business on the date the subdivision or
combination referred to herein becomes effective.

     (b) In the event of any recapitalization, consolidation, merger or
reorganization ("Reorganization"), where the Issuer shall not be the surviving
entity the Holder of the Options shall at the sole discretion of the Issuer be
entitled to either (1) receive, and provision shall be made therefore in any
agreement relating to any such Reorganization, upon exercise of the Option the
kind and number of shares of Common Stock or other securities or property
(including cash) of the Issuer, which the Holder would have received in
connection with the Reorganization as the holder of the number of shares of
Common Stock into which the Option could have been exercised in full immediately
prior to such Reorganization; and in any such case appropriate adjustment shall
be made in the application of the provisions herein set forth with respect to
the rights and interests thereafter of the Holders, to the end that the
provisions set forth herein (including the specified changes and other
adjustments to the number of Option Shares) shall thereafter be applicable, as
nearly as reasonably may be, in relation to any shares, to such other securities
or property thereafter receivable upon issuance of the Option Shares or (b) no
less than thirty (30) days prior notice of such Reorganization, during which
time the Holder may elect to exercise all Options which have then vested. All
other Options shall expire upon the consummation of the Reorganization . The
provisions of this Section 14(b) shall similarly apply to successive
Reorganizations. For purposes of this Section 14, the term "Reorganization"
shall include the acquisition of the Issuer by another entity by means of a
merger, consolidation or other reorganization.

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     (c) In addition to the adjustments to the number of Option Shares or other
property receivable upon exercise of the Options as provided in Sections 14(a)
and (b) above, the Exercise price per Option Share shall be appropriately
adjusted so that the aggregate exercise price shall remain constant.

     15. CERTIFICATE OF ADJUSTMENT.

     Within thirty (30) days following any event requiring an adjustment or
readjustment of the number of shares of Common Stock or other securities
issuable upon exercise of the Option, the Issuer, at its expense, shall cause a
nationally recognized firm of independent public accountants selected by the
Issuer to compute such adjustment or readjustment in accordance with this Option
and to prepare a certificate showing such adjustment or readjustment, and shall
mail such certificate, by first-class mail, postage prepaid, to the Holder at
the address set forth in Section 18(b). The certificate shall set forth such
adjustment or readjustment, showing in detail the facts upon which such
adjustment or readjustment is based.

     16. MODIFICATION.

     The Board or a committee thereof may modify, extend or renew the Option or
accept the surrender of, and authorize the grant of a new option or Option in
substitution for, the Option (to the extent not previously exercised). No
modification of the Option shall be made without the written consent of Holder.

     17. GENERAL PROVISIONS.

     (a) FURTHER ASSURANCES. Holder shall promptly take all actions and execute
all documents requested by the Issuer, which the Issuer deems to be reasonably
necessary to effectuate the terms and intent of this Option.

     (b) NOTICES. All notices, requests, demands and other communications under
this Option shall be in writing and shall be given to the parties hereto as
follows:

                         If to the Issuer, to:

                         I.T. Technology, Inc.
                         34-36 Punt Road
                         Windsor, Vic 3181
                         Melbourne, Australia

                         If to Holder, to:

                         Robert Petty
                         20H 240 86th
                         East NY 10028 NY

or at such other address or addresses as may have been furnished by either party
in writing to the

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other party hereto. Any such notice, request, demand or other communication
shall be effective (i) if given by mail, two days after such communication is
deposited in the mail by first-class certified mail, return receipt requested,
postage prepaid, addressed as aforesaid, or (ii) if given by any other means,
when delivered at the address specified in this subparagraph (b).

     (c) GOVERNING LAW. THIS OPTION SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
IN, AND TO BE PERFORMED WITHIN, THAT STATE. JURISDICTION AND VENUE OVER ANY
LEGAL ACTION BROUGHT HEREUNDER SHALL RESIDE EXCLUSIVELY IN THE COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA. EACH OF THE PARTIES HERETO WAIVES ITS RIGHT TO A
JURY TRIAL WITH RESPECT TO ANY SUCH LEGAL ACTIONS.

     (d) ATTORNEYS' FEES. In the event that any action, suit or arbitration or
other proceeding is instituted upon any breach of this Option, the prevailing
party shall be paid by the other party thereto an amount equal to all of the
prevailing party's costs and expenses, including reasonable attorneys' fees
incurred in each and every such action, suit or proceeding (including any and
all appeals or petitions therefrom).

     (e) AMENDMENT; WAIVER. This Option shall be binding upon and inure to the
benefit of the Holder and the Issuer and their respective successors, heirs and
personal representatives. No provision of this Option may be amended or waived
unless in writing signed by the Holder and the Issuer. Waiver of any one
provision of this Option shall not be deemed to be a waiver of any other
provision.

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     IN WITNESS WHEREOF, the Issuer has caused this Option to be executed as of
the date first above written.

                                     I.T. TECHNOLOGY, INC.

                                     By:
                                         ------------------------------------

AGREED TO AND ACCEPTED THIS

17 DAY OF JANUARY, 2000.

By: /s/ ROBERT PETTY
   --------------------------------
   Robert Petty

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                                   EXHIBIT "A"

                               NOTICE OF EXERCISE

                 (To be signed only upon exercise of the Option)

TO: I.T. Technology, Inc.

     The undersigned hereby irrevocably elects to exercise the purchase right
represented by the Option granted to the undersigned on ___________, 1999 and to
purchase thereunder _______ shares of Common Stock of I.T. Technology, Inc., a
Delaware corporation (the "Issuer"). The closing of the exercise of the purchase
right shall take place at _____ on ________________, _____ at the principal
executive office of the Issuer located at ________________________________.

                                    [Holder]

                                    By:
                                        --------------------------------
                                    Its:
                                        --------------------------------<PAGE>   1
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND THEY MAY NOT BE OFFERED, SOLD, PLEDGED,
HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (i) PURSUANT TO A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT WHICH HAS BECOME EFFECTIVE AND IS CURRENT
WITH RESPECT TO THESE SECURITIES, OR (ii) PURSUANT TO A SPECIFIC EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, BUT ONLY UPON A HOLDER HEREOF FIRST
HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL TO THE ISSUER, OR OTHER COUNSEL
REASONABLY ACCEPTABLE TO THE ISSUER, THAT THE PROPOSED DISPOSITION IS EXEMPT
FROM REGISTRATION UNDER THE SECURITIES ACT.

                                     OPTION

        This OPTION (the "Option") is granted as of the 8 day of December, 1999
by I.T. Technology, Inc., a Delaware corporation (the "Issuer"), to Cheski
(Jonathan) Malamud ("Holder").

                                     RECITAL

        In consideration for Holder's agreement to serve as a senior executive
officer of the Issuer's subsidiary, Stampville.com, Inc., the Issuer has agreed
to issue to Holder, Options, permitting the Holder purchase of One Million Six
Hundred Thousand (1,600,000) shares of the Common Stock of the Issuer (subject
to adjustment pursuant to Section 13 below) on the terms and conditions set
forth below (collectively, the "Option Shares").

                                    AGREEMENT

        NOW, THEREFORE, in consideration of these premises and the mutual
covenants and agreements hereinafter set forth, and for other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
Issuer and Holder agree as follows:

        1.      GRANT OF OPTION.

        The Issuer hereby grants to Holder the right and option (the "Option"),
upon the terms and subject to the conditions set forth in this Option, to
purchase the Option Shares, at a per share exercise price equal to $1.25 per
share (the "Exercise Price").

        2.      TERM OF OPTION.

        The Option shall terminate and expire at 5:00 p.m., New York time, on
the fifth (5th) anniversary of the date which is the "Vesting Date", as defined
in Section 3(a) below (the "Option Expiration Date").

        3.      VESTING OF OPTION.

               (a) No portion of the Option will be exercisable until the
occurance of both of the following:

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                      (i) the public sale of at least $10,000,000 of the
Issuer's equity securities through an effective Registration Statement under the
Securities Act or the investment by the Issuer of an additional $5,000,000 in
Stampville.com, Inc.("Stampville") above the "Stage One" Investment, as such
term is defined in the Stock Purchase Agreement dated as of June 18, 1999
between the Issuer and Stampville; and

                      (ii) the second anniversary of the date of this Option
(the "Vesting Date").

               (b) Commencing on the Vesting Date, the Holder may purchase up to
320,000 shares issuable upon the exercise of the Option or 20% of the Option;
thereafter the Holder may purchase up to the following amounts of shares
issuable upon the exercise of the Option:

                      (i) commencing one year after the Vesting Date, the Holder
may purchase up to an aggregate of 640,000 shares issuable upon the exercise of
the Option or 40% of the Option;

                      (ii) commencing two years after the Vesting Date, the
Holder may purchase up to an aggregate of 960,000 shares issuable upon the
exercise of the Option or 60% of the Option;

                      (iii) commencing three years after the Vesting Date, the
Holder may purchase up to an aggregate of 1,280,000 shares issuable upon the
exercise of the Option or 80% of the Option; and

                      (iv) commencing four years after the Vesting Date, the
Holder may purchase up to an aggregate of 1,600,000 shares issuable upon the
exercise of the Option or 100% of the Option.

               (c) Notwithstanding anything to the contrary contained in this
Option, the Option may not be exercised unless and until any then-applicable
requirements of all state and federal securities laws shall have been fully
complied with to the reasonable satisfaction of the Issuer and its counsel;
provided, however, that the Issuer use its best efforts to comply with the
requirements of all such state and federal securities laws.

        4.      EXERCISE OF OPTION.

        There is no obligation to exercise the Option, but the Option may be
exercised in whole or in part at any time or from time to time on or prior to
the Option Expiration Date. A new Option shall be issued for the amount of
unexercised shares. The Option must be exercised by delivery to the Issuer of:

               (a) written notice of exercise in substantially the form of
Exhibit "A" attached to this Option; and

               (b) payment of the Exercise Price of the Option Shares pursuant
to Section 5.

        Upon receipt of the foregoing, the Issuer shall promptly issue in the
name of the Holder one or more stock certificates evidencing the Option Shares
issued pursuant to such exercise and deliver such certificate(s) to the Holder
in such denominations as the Holder shall request.

<PAGE>   3
        5.      DELIVERY OF SHARES; PAYMENT OF EXERCISE PRICE.

        Payment of the Exercise Price may be made as follows: (i) in United
States currency by wire transfer to an account designated by the Issuer or by
cash or by delivery of a certified check, bank draft or postal or express money
order payable to the order of the Issuer, or (ii) in the discretion of the Plan
Administrator, upon such terms as the Plan Administrator shall approve, a copy
of instructions to a broker directing such broker to sell the Common Stock for
which such Option is exercised, and to remit to the Company the aggregate
exercise price of such Options (a "cashless exercise"); (iii) in the discretion
of the Issuer, upon such terms as the Issuer shall approve, the Holder may pay
all or a portion of the purchase price for the number of shares being purchased
by tendering shares of the Issuer's Common Stock owned by the Holder, duly
endorsed for transfer to the Issuer, with a fair market value on the date of
delivery equal to the aggregate purchase price of the shares with respect to
which such Option or portion is thereby exercised (a "stock-for-stock
exercise"), or (iv) in the discretion of the Issuer, upon such terms as the
Issuer shall approve, the Holder may pay all or a portion of the purchase price
for the number of shares being purchased by withholding shares of stock from any
transfer or payment to the Optionee ("stock withholding exercise").

        6.      RESTRICTIONS ON OPTION SHARES.

               (a) Each certificate for Option Shares issued upon the exercise
of the Option, shall be stamped or otherwise imprinted with a legend in
substantially the following form:

               (b) "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THEY MAY NOT BE
OFFERED, SOLD, PLEDGED, HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (i)
PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WHICH HAS BECOME
EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES, OR (ii) PURSUANT TO A
SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, BUT ONLY UPON A
HOLDER HEREOF FIRST HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL TO THE
ISSUER, OR OTHER COUNSEL REASONABLY ACCEPTABLE TO THE ISSUER, THAT THE PROPOSED
DISPOSITION IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT.

        7.      REPRESENTATIONS AND WARRANTIES OF THE ISSUER.

<PAGE>   4

        The Issuer represents and Options that it has properly set aside and
reserved from its authorized but unissued shares of Common Stock, and will at
all times maintain as reserved, a number of shares equal to the Option Shares.
The Option Shares will, upon issuance, be duly authorized, validly issued, fully
paid and nonassessible and free from all preemptive rights of any shareholders
and free of all taxes, liens and charges with respect to the issuance thereof.
Except as expressly set forth in this Section 7., the Issuer has made no
representation, warranty, covenant or agreement regarding the Option, the shares
issuable in connection therewith or any other matter relating thereto. including
but not limited to whether or not the Issuer shall file a registration statement
with the Securities and Exchange Commission (the SEC"), if such a registration
statement is filed, whether the SEC will declare the registration Statement
effective or if declared effective, whether the Issuer will successfully raise
$10,000,000 pursuant to such Registration Statement. Notwithstanding the
foregoing, in the event such registration statement is filed with the SEC and
declared effective, the Issuer agrees to use its reasonable best efforts to
register the offer and sale and or resale of the shares issuable upon the
exercise of the Option on a Form S-8 Registration Statement and, if necessary, a
Form S-3 Prospectus contained therein, prior to the initial vesting date of the
Options.

        8.      RESERVE.

        The Issuer shall at all times reserve and keep available out of its
authorized but unissued shares of Common Stock, solely for the purpose of
maintaining a reserve equal to the number of Option Shares, and if at any time
the number of authorized but unissued shares of Common Stock shall not be
sufficient to effect the issuance of Common Stock upon exercise of the Option,
the Issuer shall promptly seek such corporate action as may, in the opinion of
its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purpose.
In the event of the consolidation or merger of the Issuer with another
corporation where the Issuer is not the surviving corporation, effective
provision shall be made in the Certificate or Articles of Incorporation,
documents of merger or consolidation, or otherwise, of the surviving corporation
so that such corporation will at all times reserve and keep available a
sufficient number of shares of Common Stock or other securities or property to
provide for the Option in accordance with the provisions of this Section 8.

        9.      NO RIGHTS AS STOCKHOLDER.

        Holder shall have no rights as a stockholder of the Issuer with respect
to the Option Shares until the date the exercise notice is received by the
Issuer together with payment (the "Exercise Date"). No adjustment shall be made
for dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions or other rights for which the record date is prior to
the Exercise Date.

        10.     LOST, MUTILATED OR MISSING OPTION.

        Upon receipt by the Issuer of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Option, and, in the case of
loss, theft or destruction, upon receipt of indemnification, or, in the case of
mutilation, upon surrender and cancellation of the mutilated Option, the Issuer
shall execute and deliver a new Option of like tenor and representing the right
to purchase the same aggregate number of Option Shares.

<PAGE>   5
        11.     TAXES.

        The Issuer shall pay all expenses, taxes and owner charges payable in
connection with the preparation, issuance and delivery of certificates for the
Option Shares and any new Options, except that if the certificates for the
Option Shares or the new Options are to be registered in a name or names other
than the name of the Option Holder, funds sufficient to pay all transfer taxes
payable as a result of such transfer shall be paid by the Option Holder at the
time of its delivery of the Notice of Exercise or promptly upon receipt of a
written request by the Issuer for payment

        12.     NO IMPAIRMENT.

        The Issuer will not, by amendment of its Certificate of Incorporation or
through any reorganization, recapitalization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Issuer, but will at all times in good
faith assist in the carrying out of all the provisions of this Option and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Holder against impairment.

        13.     ADJUSTMENT.

               (a) If outstanding shares of the Common Stock of the Issuer shall
be subdivided into a greater number of shares, or a dividend in Common Stock or
other securities of the Issuer convertible into or exchangeable for Common Stock
(in which latter event the number of shares of Common Stock issuable upon the
conversion or exchange of such securities shall be deemed to have been
distributed), shall be paid or distributed in respect to the Common Stock of the
Issuer, the number of Option Shares for which this Option may be exercised
immediately prior to such subdivision or at the record date of such dividend
shall, simultaneously with the effectiveness of such subdivision or immediately
after the record date of such dividend or other distribution, be proportionately
increased, and conversely, if outstanding shares of the Common Stock of the
Issuer shall be combined into a smaller number of shares, the number of Option
Shares for which this Option may be exercised prior to such combination shall,
simultaneously with the effectiveness of such combination, be proportionately
decreased. Any adjustment to the Option Shares under this Section 13(a) shall
become effective at the close of business on the date the subdivision or
combination referred to herein becomes effective.

               (b) In the event the Issuer at any time, or from time to time,
shall make or issue, or fix a record date for the determination of holders of
Common Stock entitled to receive a dividend or other distribution payable in
securities of the Issuer other than shares of Common Stock or securities
convertible into or exchangeable for Common Stock, or other property or assets
(other than cash) then and in each such event, provision shall be made so that
the Holders of the Options shall receive upon exercise thereof, in addition to
the number of shares of Common Stock receivable thereupon, the amount of
securities of the Issuer or other property or assets which they would have
received had their Options been exercised in full on the date of such event and
had thereafter, during the period from the date of such event to and including
the date of conversion, retained such securities or other property or assets
receivable by them as aforesaid during such period, giving application to all
adjustments called for during such period under this Section 13(b) with respect
to the rights of the Holders.

<PAGE>   6
               (c) In the event of any recapitalization, consolidation, merger
or reorganization ("Reorganization"), the Holder of the Options shall thereafter
be entitled to receive, and provision shall be made therefore in any agreement
relating to any such Reorganization, upon exercise of the Option the kind and
number of shares of Common Stock or other securities or property (including
cash) of the Issuer, which the Holder would have received in connection with the
Reorganization as the holder of the number of shares of Common Stock into which
the Option could have been exercised in full immediately prior to such
Reorganization; and in any such case appropriate adjustment shall be made in the
application of the provisions herein set forth with respect to the rights and
interests thereafter of the Holders, to the end that the provisions set forth
herein (including the specified changes and other adjustments to the number of
Option Shares) shall thereafter be applicable, as nearly as reasonably may be,
in relation to any shares, to such other securities or property thereafter
receivable upon issuance of the Option Shares. The provisions of this Section
13(c) shall similarly apply to successive Reorganizations. For purposes of this
Section 13, the term "Reorganization" shall mean include the sale of all or
substantially all of the assets of the Issuer or the acquisition of the Issuer
by another entity by means of a merger, consolidation or other reorganization.

               (d) In addition to the adjustments to the number of Option Shares
or other property receivable upon exercise of the Options as provided in
Sections 13(a), (b) and (c) above, the Exercise price per Option Share shall be
appropriately adjusted so that the aggregate exercise price shall remain
constant.

        14.     NOTICES OF CHANGE.

               (a) The Company shall give written notice to the Holder at least
ten (10) business days prior to the date on which the Company closes its books
or takes a record for determining rights to receive any dividends or
distributions.

               (b) The Company shall also give written notice to the Holder at
least twenty (20) business days prior to the date on which a Reorganization
shall take place.

        15.     CERTIFICATE OF ADJUSTMENT.

        Within thirty (30) days following any event requiring an adjustment or
readjustment of the number of shares of Common Stock or other securities
issuable upon exercise of the Option, the Issuer, at its expense, shall cause a
nationally recognized firm of independent public accountants selected by the
Issuer to compute such adjustment or readjustment in accordance with this Option
and to prepare a certificate showing such adjustment or readjustment, and shall
mail such certificate, by first-class mail, postage prepaid, to the Holder at
the address set forth in Section 17(b). The certificate shall set forth such
adjustment or readjustment, showing in detail the facts upon which such
adjustment or readjustment is based.

        16.     MODIFICATION.

        The Board or a committee thereof may modify, extend or renew the Option
or accept the surrender of, and authorize the grant of a new option or Option in
substitution for, the Option (to the extent not previously exercised). No
modification of the Option shall be made without the written consent of Holder.

<PAGE>   7
        17.     GENERAL PROVISIONS.

               (a) FURTHER ASSURANCES. Holder shall promptly take all actions
and execute all documents requested by the Issuer, which the Issuer deems to be
reasonably necessary to effectuate the terms and intent of this Option.

               (b) NOTICES. All notices, requests, demands and other
communications under this Option shall be in writing and shall be given to the
parties hereto as follows:

                             If to the Issuer, to:

                             I.T. Technology, Inc.

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

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

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

                             If to Holder, to:

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

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

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

or at such other address or addresses as may have been furnished by either party
in writing to the other party hereto. Any such notice, request, demand or other
communication shall be effective (i) if given by mail, two days after such
communication is deposited in the mail by first-class certified mail, return
receipt requested, postage prepaid, addressed as aforesaid, or (ii) if given by
any other means, when delivered at the address specified in this subparagraph
(b).

               (c) GOVERNING LAW. THIS OPTION SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE IN, AND TO BE PERFORMED WITHIN, THAT STATE. JURISDICTION AND VENUE OVER ANY
LEGAL ACTION BROUGHT HEREUNDER SHALL RESIDE EXCLUSIVELY IN THE COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA. EACH OF THE PARTIES HERETO WAIVES ITS RIGHT TO A
JURY TRIAL WITH RESPECT TO ANY SUCH LEGAL ACTIONS.

               (d) ATTORNEYS' FEES. In the event that any action, suit or
arbitration or other proceeding is instituted upon any breach of this Option,
the prevailing party shall be paid by the other party thereto an amount equal to
all of the prevailing party's costs and expenses, including reasonable
attorneys' fees incurred in each and every such action, suit or proceeding
(including any and all appeals or petitions therefrom).

               (e) AMENDMENT; WAIVER. This Option shall be binding upon and
inure to the benefit of the Holder and the Issuer and their respective
successors, heirs and personal representatives. No provision of this Option may
be amended or waived unless in writing signed by the Holder and the Issuer.
Waiver of any one provision of this Option shall not be deemed to be a waiver of
any other provision.

<PAGE>   8
        IN WITNESS WHEREOF, the Issuer has caused this Option to be executed as
of the date first above written.

                                     I.T. TECHNOLOGY, INC.

                                     By: /s/ JONATHAN HERZOG
                                        -------------------------------

AGREED TO AND ACCEPTED

THIS 10th DAY OF FEBRUARY 2000

by: /s/ C. JONATHAN MALAMUD
   -------------------------------
    Jonathan (Chesky) Malamud

<PAGE>   9
                                   EXHIBIT "A"

                               NOTICE OF EXERCISE

                 (To be signed only upon exercise of the Option)

TO: I.T. Technology, Inc.

        The undersigned hereby irrevocably elects to exercise the purchase right
represented by the Option granted to the undersigned on ___________, 1999 and to
purchase thereunder _______ shares of Common Stock of I.T. Technology, Inc., a
Delaware corporation (the "Issuer). The closing of the exercise of the purchase
right shall take place at _____ on ________________, _____ at the principal
executive office of the Issuer located at __________________________________.

                                    [Holder]

                                    By:
                                       --------------------------------
                                    Its:
                                        -------------------------------

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