Document:

Prepared by R.R. Donnelley Financial -- Exchange Agreement dated as of April 26, 2002

  
 Exhibit 10.2 
  
 EXCHANGE AGREEMENT 
  
 Exchange Agreement (this “Agreement”), dated as of April
26, 2002, by and between Webb Interactive Services, Inc., a Colorado corporation (the “Company”) and DiamondCluster International, Inc. (“DiamondCluster”). 
  
 The Company is the parent corporation of Jabber, Inc., a Delaware corporation (“Jabber”). DiamondCluster owns 690 shares of the Series B Convertible Preferred Stock of Jabber
(the “Series B Shares”) and 37,500 shares of the Common Stock of Jabber (the “Jabber Common Shares”). The Company desires to simplify Jabber’s capital structure and is working to eliminate most of the outstanding shares of
Jabber’s preferred stock. 
  
 The Company and DiamondCluster agree as follows: 
  

	1.
	 
	EXCHANGE. 
 

  
 DiamondCluster
hereby exchanges (the “Exchange”) all of the Series B Shares, including accrued dividends, and Jabber Common Shares owned by DiamondCluster for 911,645 shares of the common stock, no par value (the “Common Stock”), of the
Company. DiamondCluster hereby delivers and transfers to the Company all of its right, title and interest in the Series B Shares and the Jabber Common Shares and the Company hereby issues 911,645 shares of Common Stock to DiamondCluster. Upon
execution and delivery of this Agreement, the Company shall deliver a letter to the transfer agent for the Company’s Common Stock in the form of Exhibit A attached hereto instructing the transfer agent to issue and deliver to DiamondCluster
911,645 shares of Common Stock. 
  

	2.
	 
	REPRESENTATIONS, WARRANTIES AND COVENANTS OF DIAMONDCLUSTER. 
 

  
 DiamondCluster hereby represents and warrants to the Company and agrees with the Company as follows: 
  
 2.1    Authorization; Enforceability.    DiamondCluster is duly and validly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or
organization with full power and authority to effect the Exchange and to execute and delivery this Agreement. This Agreement constitutes DiamondCluster’s valid and legally binding obligation, enforceable in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency or other laws affecting creditors’ rights generally and to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity) or
public policy. 
  
 2.2    Ownership of Shares.    DiamondCluster is the record and
beneficial owner and holder of the Series B Shares and Common Shares, free and clear of all taxes, liens or similar encumbrances and when delivered to the Company in accordance with the terms of this Agreement, will be free and clear of all such
encumbrances. 
  
 2.3    Information.    The Company has granted to DiamondCluster
the opportunity to ask questions of and receive answers from representatives of the Company, its officer, directors, employees and agents concerning the Company and materials relating to the terms and conditions of the purchase and sale of the
Common Stock. 
  
 2.4    Limitations on Disposition.    DiamondCluster
acknowledges that, except as provided in this Agreement, the Common Stock has not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and may not be transferred or resold without registration under the
Securities Act or unless pursuant to an exemption therefrom. 
 

 12 

  
 2.5    Legend.    DiamondCluster understands
that the certificates representing the Common Stock may bear at issuance a restrictive legend in substantially the following form: 
  
 “The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state, and may not be offered or sold unless a
registration statement under the Securities Act and applicable state securities laws shall have become effective with regard thereto, or an exemption from registration under such laws is available in connection with such offer or sale.”

  

	3.
	 
	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. 
 

  
 The Company hereby represents and warrants to DiamondCluster as follows: 
  
 3.1    Organization, Good Standing and Qualification.    Each of the Company and its subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of
its incorporation or organization and has all requisite corporate power and authority to carry on its business as now conducted. Each of the Company and its subsidiaries is duly qualified to transact business and is in good standing in each
jurisdiction in which the failure so to qualify would have a material adverse effect on the consolidated business or financial condition of the Company and its subsidiaries taken as a whole. For purposes of this Agreement, the term
“subsidiary” or “subsidiaries” shall mean any entity or entities in which the Company beneficially owns 20% or more of the voting equity thereof. 
  
 3.2.    Authorization; Consents.    The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement. All corporate action on the part of the Company by its officers, directors and stockholders necessary for the authorization, execution and delivery of, and the performance by the Company of its obligations under this Agreement
has been taken, and no further consent or authorization of the Company, its Board of Directors, its stockholders, any governmental agency or organization (other than such approval as may be required under the Securities Act and applicable state
securities laws in respect of the registration of the Common Stock), or any other person or entity is required. 
  
 3.3    Valid Issuance.    The Common Stock is duly authorized and, when issued, sold and delivered in accordance with the terms hereof, (i) will be duly and validly issued, fully paid and
nonassessable, free and clear of any taxes, liens, claims, preemptive or similar rights or encumbrances imposed by or through the Company; and (ii) based in part upon the representations of DiamondCluster in this Agreement, will be issued, sold and
delivered in compliance with all applicable Federal and state securities laws. 
  

	4.
	 
	REGISTRATION. 
 

  
 4.1    On or before June 1, 2002, the Company shall file a Registration Statement pursuant to the Securities Act for the registration of the Common Stock acquired by DiamondCluster in the Exchange, shall use its best
efforts to cause the Registration Statement to be declared effective as soon thereafter as is reasonably possible and shall use its best efforts to see that the Registration Statement remains effective until the earlier of the sale by DiamondCluster
of all shares of the Common Stock acquired in the Exchange pursuant to the Registration Statement or two years from the anniversary of the date of this Agreement. 
  
 4.2    The Registration Statement is being filed by the Company in accordance with registration rights granted to Jona, Inc. in connection with its purchase during
the first quarter of 2002 of 7,500,000 Units of the Company’s securities for $7,500,000. Each Unit consisted of one share of Common Stock and a warrant representing the right to purchase an additional share of Common Stock, also at $1.00 per
share. The Registration Statement will be on Form S-3 and will not include any securities to be sold by the Company. The Company currently has no plans to register any of its securities pursuant to the Securities Act for sale by the Company.

 

 13 

  
 4.3    Until the earlier of two years from the date of this Agreement or
such time as DiamondCluster has disposed of at least 600,000 the shares of Common Stock acquired by it in the Exchange, the Company covenants and agrees as follows: 
  

	 	4.3.1
	 
	Notwithstanding its current intent, if at any time it determines to register any of its Common Stock under the Securities Act in connection with the public offering of such
securities solely for cash on a form that would also permit the registration of the shares of Common Stock acquired by DiamondCluster in the Exchange, the Company shall promptly give DiamondCluster written notice of such determination and, upon
DiamondCluster’s request given within 30 days of its receipt of such notice, use its best efforts to cause to be registered all of the shares of Common Stock acquired by DiamondCluster in the Exchange in connection with the Company’s
public offering; provided that DiamondCluster shall enter into such agreements and undertakings as may be reasonably required by the underwriter for such offering. 
 

  

	 	4.3.2
	 
	It will not enter into any agreement with any holder or prospective holder of any securities of the Company providing for the granting to such holder registration rights unless
such agreement includes a provision that in the case of a public offering involving an underwritten registered offering,permits DiamondCluster to participate in such offering and if marketing factors require a limitation on the number of securities
to be included in the underwriting, the number of securities so included will be apportioned among the participating selling shareholders on an equitable basis. 
 

  

	 	4.3.3
	 
	It will file with the Securities and Exchange Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Securities
Exchange Act of 1934, as amended. 
 

  

	5.
	 
	MISCELLANEOUS. 
 

  
 5.1    Successors and Assigns.    The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement. 
  
 5.2    No
Reliance.    Each party acknowledges that (i) it has such knowledge in business and financial matters as to be fully capable of evaluating transactions contemplated hereby, (ii) it is not relying on any advice or
representation of the other party in connection with entering into this Agreement or such transactions (other than the representations made in this Agreement); (iii) it has not received from such party any assurance or guarantee as to the merits
(whether legal, regulatory, tax, financial or otherwise) of entering into this Agreement or the performance of its obligations hereunder, and (iv) it has consulted with its own legal, regulatory, tax, business, investment, financial and accounting
advisors to the extent that it has deemed necessary and has entered into this Agreement based on its own independent judgment and on the advice of its advisors as it has deemed necessary, and not on any view (whether written or oral) expressed by
such party. 
  
 5.3    Governing Law; Jurisdiction.    This Agreement shall be
governed by and construed under the laws of the State of Colorado without regard to the conflict of laws provisions thereof. 
  
 5.4    Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same
instrument. 
  
 5.5    Headings; Drafting.    The headings used in this Agreement
are used for convenience only and are not to be considered in construing or interpreting this Agreement. The parties shall be deemed to have participated jointly in the drafting of this Agreement and no provision hereof or thereof shall be construed
against any party as the drafter thereof. 
 

 14 

  
 5.6    Entire Agreement; Amendments;
Waiver.    This Agreement constitutes the entire agreement between the parties with regard to the subject matter hereof and thereof, superseding all prior agreements or understandings, whether written or oral, between or
among the parties. Except as expressly provided herein, neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and DiamondCluster. 
  
 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written. 
  

	 	WE
	BB INTERACTIVE SERVICES, INC. 
 

  

	 	By
	:  /s/    Lindley S. Branson 
 

	 	Na
	me: Lindley S. Branson 
 

	 	Tit
	le: Vice President/General Counsel 
 

  

	 	DI
	AMONDCLUSTER INTERNATIONAL, INC. 
 

  

	 	By
	:  /s/    Karl E. Bupp 
 

	 	Na
	me: Karl E. Bupp 
 

	 	Tit
	le: Vice President & Chief Financial Officer 
 

 

 15 

  
 Exhibit A 
 [To be placed on
Webb stationery] 
  
 April     , 2002 
  
 Ms. Kathy Kinard 
 Client Services  
 Computershare Investor Services 
 350 Indiana 
 Suite 800 
 Golden, CO 80401 
  
 Re:    Issuance of Common Stock 
  
 Dear Kathy: 
  
 Please issue a certificate for 911,465 shares of the common stock of Webb Interactive Services, Inc. (the “Company”) to DiamondCluster
International, Inc. The issuance of the securities was made without registration under the Securities Act of 1933, as amended, in reliance upon the exemption from such registration requirements contained in Regulation D promulgated by the Securities
and Exchange Commission. The certificate for the shares should contain a restrictive legend indicating that they have been issued without registration under the Securities Act of 1933. 
  
 A copy of the resolution adopted by the Company’s Board of Directors effective April 17, 2002, approving the sale and issuance of the securities is attached as Exhibit A. The
certificate for the shares should be sent to DiamondCluster International, Inc. at             , Attention:             . The
federal identification number for DiamondCluster International, Inc. is             . 
  

	 	Sin
	cerely, 
 

  

	 	WE
	BB INTERACTIVE SERVICES, INC. 
 

  

	 	By 
	                                      
        
 

	 	Lin
	dley S. Branson 
 

	 	Its
	 Vice President and General Counsel 
 

 

 16EMTC INTERNATIONAL, INC.
                             2002 STOCK OPTION PLAN

     1. Purposes of the Plan. The purposes of this 2002 Stock Option Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under this Plan may be incentive stock options (as
defined under Section 422 of the Code) or nonqualified stock options, as
determined by the Option Committee at the time of grant of an option and subject
to the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder.

     2. Definitions. As used herein, the following definitions shall apply:

          2.1 "Option Committee" means the Board or any of its committees, as
applicable, that is administering the Plan pursuant to Section 4 of the Plan.

          2.2 "Board" means the Board of Directors of the Company.

          2.3 "Code" means the Internal Revenue Code of 1986, as amended.

          2.4 "Company" means EMTC International, Inc., an Oklahoma corporation.

          2.5 "Consultant" means any consultant or advisor to the Company or any
Parent or Subsidiary and any director of the Company whether compensated for
such services or not, but not including any Employee.

          2.6 "Continuous Status as an Employee" means the absence of any
interruption or termination of the employment relationship by the Company or any
Subsidiary. Continuous Status as an Employee shall not be considered interrupted
in the case of: (i) any leave of absence approved by the Board, including sick
leave, military leave, or any other personal leave; provided, however, that for
purposes of Incentive Stock Options, such leave is for a period of not more than
90 days, unless reemployment upon the expiration of such leave is guaranteed by
contract or statute, or unless provided otherwise pursuant to Company policy
adopted from time to time; or (ii) in the case of transfers between locations of
the Company or between the Company, its Subsidiaries or its successors.

          2.7 "Employee" means any person, including officers and directors,
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

          2.8 "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

          2.9 "Fair Market Value" means, as of any date, the value of Stock
determined as follows:

               2.9.1 If the Stock is listed on any established stock exchange or
a national market system including without limitation the National Market System
of the National Association of Securities Dealers, Inc. Automated Quotation
("Nasdaq") System, its Fair Market Value shall be the closing sales price for
such stock (or the closing bid, if no sales were reported, as quoted on such
system or exchange or the exchange with the greatest volume of trading in Stock
for the last market trading day prior to the time of determination) as reported
in the Wall Street Journal or such other source as the Option Committee deems
reliable;

               2.9.2 If the Stock is quoted on Nasdaq SmallCap (but not on the
National Market System) or regularly quoted by a recognized securities dealer
but selling prices are not reported, its Fair Market Value shall be the mean
between the high and low asked prices for the Stock; or

               2.9.3 In the absence of an established market for the Stock, the
Fair Market Value thereof shall be determined in good faith by the Option
Committee.

          2.10 "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

          2.11 "Nonqualified Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

          2.12 "Option" means a stock option granted pursuant to the Plan.

          2.13 "Optioned Stock" means the Stock subject to an Option.

          2.14 "Optionee" means an Employee or Consultant who receives an
Option.

          2.15 "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

          2.16 "Plan" means this 2002 Stock Option Plan.

          2.17 "Share" means a share of the Stock, as adjusted in accordance
with Section 13 of the Plan.

          2.18 "Stock" means the Common Stock, par value $0.001 per share, of
the Company.

          2.19 "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

     3. Stock Subject to the Plan. Subject to the provisions of Section 13 of
the Plan, the maximum number of shares of Stock which may be optioned and sold
under the Plan is 2,000,000 shares. The shares may be authorized, but unissued,
or reacquired Stock. If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares which were
subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan.

     4. Administration of the Plan.

          4.1 Administration By Board or Committee. The Plan shall be
administered by (a) the Board or (b) a committee designated by the Board to
administer the Plan, which committee shall be constituted in such a manner as to
permit the Plan to comply with Rule 16b-3 promulgated under the Exchange Act or
any successor thereto ("Rule 16b-3") with respect to a plan intended to qualify
thereunder as a discretionary plan. Once appointed, such committee shall
continue to serve in its designated capacity until otherwise directed by the
Board. From time to time the Board may increase the size of the committee and
appoint additional members thereof, remove members (with or without cause) and
appoint new members in substitution therefor, fill vacancies, however caused,
and remove all members of the committee and thereafter directly administer the
Plan, all to the extent permitted by Rule 16b-3 with respect to a plan intended
to qualify thereunder as a discretionary plan.

          4.2 Limitation on Administration by Board. Notwithstanding the
foregoing, the Plan shall not be administered by the Board if (a) the Company
and its officers and directors are then subject to the requirements of Section
16 of the Exchange Act and (b) the Board's administration of the Plan would
prevent the Plan from complying with Rule 16b-3.

          4.3 Multiple Administrative Bodies. If permitted by Rule 16b-3, the
Plan may be administered by different bodies with respect to directors,
non-director officers and Employees who are neither directors nor officers.

          4.4 Powers of the Option Committee. Subject to the provisions of the
Plan and in, the case of a committee, the specific duties delegated by the Board
to such committee, the Option Committee shall have the authority, in its
discretion:

               4.4.1 to determine whether and to what extent Options shall be
granted hereunder;

               4.4.2 to select the officers, Consultants and Employees to whom
Options may from time to time be granted hereunder;

               4.4.3 to determine the number of shares of Stock to be covered by
each such award granted hereunder;

               4.4.4 to determine the Fair Market Value of the Stock, in
accordance with Section 2.9 of the Plan;

               4.4.5 to approve forms of agreement for use under the Plan;

               4.4.6 to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder (including, but not
limited to, the per share exercise price for the Shares to be issued pursuant to
the exercise of an Option and any restriction or limitation, or any vesting,
acceleration or waiver of forfeiture restrictions regarding any Option or other
award and/or the shares of Stock relating thereto, based in each case on such
factors as the Option Committee shall determine, in its sole discretion);

               4.4.7 to determine whether and under what circumstances an\
Option may be bought-out for cash under subsection 10.4;

               4.4.8 to determine whether, to what extent and under what
circumstances Stock and other amounts payable with respect to an award under
this Plan shall be deferred either automatically or at the election of the
participant (including providing for and determining the amount, if any, of any
deemed earnings on any deferred amount during any deferral period); and

               4.4.9 to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Stock covered by such
Option shall have declined since the date the Option was granted.

          4.5 Effect of Option Committee's Decision. All decisions,
determinations and interpretations of the Option Committee shall be final and
binding on all Optionees and any other holders of any Options. Neither the
Board, the Committee, nor any member thereof shall be liable for any act,
omission, interpretation, construction or determination made in connection with
the Plan in good faith, and the members of the Board and of the Committee shall
be entitled to indemnification and reimbursement by the Company in respect of
any claim, loss, damage or expense (including counsel fees) arising therefrom to
the full extent permitted by law.

     5.   Eligibility.

          5.1 Nonqualified Stock Options may be granted to Employees and
Consultants. Incentive Stock Options may be granted only to Employees. An
Employee or Consultant who has been granted an Option may, if he is otherwise
eligible, be granted an additional Option or Options.

          5.2 Each Option shall be designated in the written option agreement as
either an Incentive Stock Option or a Nonqualified Stock Option. However,
notwithstanding such designations to the extent that the aggregate Fair Market
Value of the Shares, with respect to which Options designated as Incentive Stock
Options are exercisable for the first time by any Optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary), exceeds
$100,000, such excess Options shall be treated as Nonqualified Stock Options.
For this purpose, Incentive Stock Options shall be taken into account in the
order in which they were granted, and the Fair Market Value of the Shares shall
be determined as of the time the Option with respect to such Shares is granted.

          5.3 The Plan shall not confer upon any Optionee any right with respect
to continuation of employment or consulting relationship with the Company, nor
shall it interfere in any way with his right or the Company's right to terminate
his employment or consulting relationship at any time, with or without cause,
unless otherwise agreed in writing by the Company and such Optionee.

     6. Term of Plan. The Plan shall become effective upon its adoption by the
Board of Directors subject only to approval by the holders of a majority of the
outstanding Shares within 12 months after such date. Should the Plan not be
approved by a vote of shareholders as specified above, the Plan shall terminate
12 months after the effective date, all options issued prior to that termination
date shall continue in effect but without the benefits that would accrue under
the Code or the Act from such shareholder approval. Otherwise, it shall continue
in effect until ten years from the effective date, unless extended by the Board
or sooner terminated under Section 15 of the Plan. No grants of Options will be
made pursuant to the Plan after termination of the Plan.

     7. Term of Option. The term of each Option shall be the term stated in the
Option Agreement; provided, however, that in the case of an Incentive Stock
Option, the terms shall be no more than 10 years from the date of grant thereof
or such shorter term as may be provided in the Option Agreement. However, in the
case of an Option granted to an Optionee who, at the time the Option is granted,
owns Stock representing more than 10% of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.

     8. Option Exercise Price and Consideration.

          8.1 The per share exercise price for the Shares to be issued pursuant
to exercise of an Option shall be such price as is determined by the Option
Committee; provided, however, that as to an Incentive Option:

               8.1.1 granted to an Employee who, at the time of the grant of
such Incentive Stock Option, owns stock representing more than 10% of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be no less than 110% of the Fair Market Value per
Share on the date of grant.

               8.1.2 granted to any other Employee, the per Share exercise price
shall be no less than 100% of the Fair Market Value per Share on the date of
grant.

          8.2 The consideration to be paid for the Shares to be issued upon

exercise of an Option may be paid by certified or cashier's check. In the
discretion of the Option Committee as set forth in the Option Agreement or,
except for Incentive Options, determined at the time of exercise, payment may
also be made by any or all of the following:

               8.2.1 check,

               8.2.2 promissory note,

               8.2.3 other shares of the Company's capital stock which (a) in
the case of shares of the Company's capital stock acquired upon exercise of an
Option either have been owned by the Optionee for more than six months on the
date of surrender or were not acquired, directly or indirectly, from the
Company, and (b) have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the Shares to which said Option shall be exercised,

               8.2.4 authorization for the Company to retain from the total
number of Shares as to which the Option is exercised that number of Shares
having a Fair Market Value on the date of exercise equal to the exercise price
for the total number of Shares as to which the Option is exercised,

               8.2.5 delivery of a properly executed exercise notice together
with irrevocable instructions to a broker to promptly deliver to the Company the
amount of sale or loan proceeds required to pay the exercise price, or

               8.2.6 such other consideration and method of payment for the
issuance of Shares to the extent permitted under applicable laws.

     9. Limitation on Exercise. The following limitations on exercise of Options
shall apply to all Incentive Options and, except to the extent waived by the
Option Committee and stated in the Option Agreement, to all other Options.

          9.1 Termination of Employment. In the event of termination of an
Optionee's relationship as a Consultant (unless such termination is for purposes
of becoming an Employee of the Company) or on termination of an Optionee's
Continuous Status as an Employee with the Company (as the case may be), such
Optionee may, but only within 90 days (or, as to Options other than Incentive
Options, such longer period of time as is determined by the Option Committee)
after the date of such termination, but in no event later than the expiration
date of the term of such Option as set forth in the Option Agreement, exercise
his Option to the extent that Optionee was entitled to exercise it at the date
of such termination. To the extent that Optionee was not entitled to exercise
the Option at the date of such termination, or if Optionee does not exercise
such Option to the extent so entitled within the time specified herein, the
Option shall terminate.

          9.2 Disability of Optionee. Notwithstanding the provisions of Section
9.1 above, in the event of termination of an Optionee's relationship as a
Consultant or Continuous Status as an Employee as a result of his total and
permanent disability (as defined in Section 22(e)(3) of the Code), Optionee may,
but only within 12 months from the date of such termination and in no event
later than the expiration date of the term of such Option as set forth in the
Option Agreement, exercise the Option to the extent otherwise entitled to
exercise it at the date of such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee does
not exercise such Option to the extent so entitled within the time specified
herein, the Option shall terminate.

          9.3 Death of Optionee. In the event of the death of an Optionee, the
Option may be exercised, at any time within 12 months following the date of
death (but in no event later than the expiration date of the term of such Option
as set forth in the Option Agreement), by the Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent the Optionee was entitled to exercise the Option at the date
of death. To the extent that the Optionee was not entitled to exercise the
Option at the date of termination, or if the Optionee's estate (or such other
person who acquired the right to exercise the Option) does not exercise such
Option to the extent so entitled within the time specified herein, the Option
shall terminate.

     10. Exercise of Option.

          10.1 Procedure for Exercise; Rights as a Stockholder. An Option shall
be deemed to be exercised, and the Optionee deemed to be a stockholder of the
Shares being purchased upon exercise, when written notice of such exercise has
been given to the Company in accordance with the terms of the Option by the
person entitled to exercise the Option and full payment for the Shares with
respect to which the Option is exercised has been received by the Company. Full
payment may, as authorized by the Board, consist of any consideration and method
of payment allowable under Section 8.2 of the Plan. An Option may not be
exercised for a fraction of a Share.

          10.2 Effect on Number of Shares. Exercise of an Option in any manner

shall result in a decrease in the number of shares which thereafter may be
available, both for purposes of the Plan and for sale under the Option, by the
number of Shares as to which the Option is exercised.

          10.3 Rule 16b-3. Options granted to persons subject to Section 16(b)
of the Exchange Act must comply with the Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

          10.4 Buyout Provisions. The Option Committee may at any time offer to
buy out for a payment in cash or Shares, an Option previously granted, based on
such terms and conditions as the Option Committee shall establish and
communicate to the Optionee at the time that such offer is made.

     11. Non-Transferability of Options. The Options may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

     12. Stock Withholding to Satisfy Withholding Tax Obligations.

          12.1 At the discretion of the Option Committee, Optionees may satisfy
withholding tax obligations as provided in this paragraph. When an Optionee
incurs tax liability in connection with an Option, which tax liability is
subject to tax withholding under applicable tax laws, and the Optionee is
obligated to pay the Company an amount required to be withheld under applicable
tax laws, the Optionee may satisfy the withholding tax obligation by electing to
have the Company withhold from the Shares to be issued upon exercise of the
Option, that number of Shares having a Fair Market Value equal to the amount
required to be withheld. The Fair Market Value of the Shares to be withheld
shall be determined on the date that the amount of tax to be withheld is to be
determined (the "Tax Date").

          12.2 All elections by an Optionee to have Shares withheld for this
purpose shall be made in writing in a form acceptable to the Option Committee
and shall be subject to the following restrictions:

               12.2.1 the election must be made on or prior to the applicable
Tax Date;

               12.2.2 once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made;

               12.2.3 all elections shall be subject to the consent or
disapproval of the Option Committee; and

               12.2.4 if the Optionee is subject to Rule 16b-3, the election
must comply with the applicable provisions of Rule 16b-3 and shall be subject to
such additional conditions or restrictions as may be required thereunder to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

          12.3 In the event the election to have Shares withheld is made by an
Optionee, the Tax Date is deferred under Section 83 of the Code and no election
is filed under Section 83(b) of the Code, the Optionee shall receive the full
number of Shares with respect to which the Option is exercised but such Optionee
shall be unconditionally obligated to tender back to the Company the proper
number of Shares on the Tax Date.

     13. Changes in the Company's Capital Structure. The existence of
outstanding Options shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, or any merger or consolidation of the Company, or any
issue of bond, debentures, preferred or prior preference stock ahead of or
affecting the Stock or the rights thereof, or the dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar
character or otherwise; subject to the following:

          13.1 If the Company shall effect a subdivision or consolidation of
shares or other capital readjustment, the payment of a stock dividend, or other
increase or reduction of the number of shares of the Stock outstanding, without
receiving compensation therefor in money, services or property, then (a) the
number, class, and per share price of shares of Stock subject to outstanding
Options hereunder shall be appropriately adjusted in such a manner as to entitle
an Optionee to receive upon exercise of an Option, for the same aggregate cash
consideration, the same total number and class of shares as he would have
received had he exercised his Option; (b) the number and class of shares of
Stock then reserved for issuance under the Plan shall be adjusted by
substituting for the total number and class of shares of Stock then reserved
that number and class of shares of stock that would have been received by the
owner of an equal number of outstanding shares of each class of Stock as the
result of the event requiring the adjustment.

          13.2 Unless otherwise expressly provided in an Option Agreement, upon
a Corporate Change (as defined below), notwithstanding any other term of this
Plan, any and all outstanding Options not fully vested and exercisable shall
vest in full and be immediately exercisable, and any other restrictions on such
Options including, without limitation, requirements concerning the achievement
of specific goals shall terminate. The foregoing shall apply to Incentive
Options, unless stated to the contrary in the Option Agreement, even though the
effect may be to convert part of the Option to a Nonqualified Option.

          13.3 As used in this Plan, a "Corporate Change" shall be deemed to
have occurred upon, and shall mean (a) the acquisition by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange
Act) (a "Person"), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 80% or more of either (i) the then
outstanding shares of Stock of the Company (the "Outstanding Company Common
Stock") or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided, however, that
the following transactions shall not constitute a Corporate Change: (u) any
acquisition by virtue of the conversion of preferred stock of the Company
outstanding on the effective date hereof; (v) customary transactions with and
between underwriters and selling group members with respect to a bona fide
public offering of securities, (w) any acquisition directly from the Company
(excluding an acquisition by virtue of the exercise of a conversion privilege),
(x) any acquisition by the Company, (y) any acquisition by any employee benefit
plan(s) (or related trust(s)) sponsored or maintained by the Company or any
corporation controlled by the Company or (z) any acquisition by any entity
pursuant to a reorganization, merger or consolidation, if, immediately following
such reorganization, merger or consolidation the conditions described in clauses
(i), (ii) and (iii) of clause (b) of this paragraph are satisfied; or (b) the
approval by the stockholders of the Company of a reorganization, merger or
consolidation, in each case, unless immediately following such reorganization,
merger or consolidation (i) more than 60% of, respectively, the then outstanding
shares of common stock (or other equivalent securities) of the entity resulting
from such reorganization, merger or consolidation and the combined voting power
of the then outstanding voting securities of such entity entitled to vote
generally in the election of directors (or other similar governing body) is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Company Common Stock and Outstanding Company Voting Securities immediately prior
to such reorganization, merger or consolidation in substantially the same
proportions as their ownership, immediately prior to such reorganization, merger
or consolidation of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (ii) no Person (excluding the Company,
any employee benefit plan(s) (or related trust(s)) of the Company and/or its
subsidiaries or such entity resulting from such reorganization, merger or
consolidation and any Person beneficially owning, immediately prior to such
reorganization, merger or consolidation, directly or indirectly, 80% or more of
the Outstanding Company Common Stock or Outstanding Company Voting Securities,
as the case may be) beneficially owns, directly or indirectly, 80% or more of,
respectively, the then outstanding shares of common stock (or other equivalent
securities) of the entity resulting from such reorganization, merger or
consolidation or the combined voting power of the then outstanding voting
securities of such entity entitled to vote generally in the election of
directors (or other similar governing body) and (iii) at least a majority of the
members of the board of directors (or other similar governing body) of the
entity resulting from such reorganization, merger or consolidation were members
of the Incumbent Board (as defined below) at the time of the execution of the
initial agreement providing for such reorganization, merger on consolidation.
The "Incumbent Board" shall mean individuals who as of the effective date hereof
constitute the Company's Board of Directors; provided, however, that any
individual becoming a director subsequent to such date whose election, or
nomination for election by the Company's stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either (i) an actual or threatened election contest
(as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act), or an actual or threatened solicitation of proxies or consents by
or on behalf of a Person other than the Company's Board of Directors or (ii) a
plan or agreement to replace a majority of the members of the Board of Directors
then comprising the Incumbent Board.

          13.4 The Company intends that this Section shall comply with the
requirements of Rule 16b-3 and any future rules promulgated in substitution
therefor under the Exchange Act during the term of the Plan. Should any
provision of this Section not be necessary to comply with the requirements of
Rule 16b-3 or should any additional provisions be necessary for this Section to
comply with the requirements of Rule 16b-3, the Board of Directors may amend the
Plan to add to or modify the provisions of the Plan accordingly.

          13.5 Except as hereinbefore expressly provided, the issue by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, for cash or property, or for labor or services either
upon direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company convertible
into such shares or other securities, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number, class, or price of
shares of Stock then subject to outstanding Options.

     14. Time of Granting Options. The date of grant of an Option shall, for all
purposes, be the date on which the Option Committee makes the determination
granting such Option, or such other date as is determined by the Option
Committee. Notice of the determination shall be given to each Employee or
Consultant to whom an Option is so granted within a reasonable time after the
date of such grant.

     15. Amendment and Termination of the Plan.

          15.1 Amendment and Termination. The Board may at any time amend,
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension
or discontinuation shall be made which would impair the rights of any Optionee
under any grant theretofore made, without his or her consent. In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under the Exchange
Act or with Section 422 of the Code (or any other applicable law or regulation,
including the applicable requirements of the NASD or an established stock
exchange), the Company shall obtain stockholder approval of any Plan amendment
in such a manner and to such a degree as required.

          15.2 Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

     16. Conditions Upon Issuance of Shares.

          16.1 Shares shall not be issued pursuant to the exercise of an Option
unless the exercise of such Option and the issuance and delivery of such Shares
pursuant thereto shall comply with all relevant provisions of law, including
without limitation, the Securities Act of 1933, as amended, the Exchange Act,
the rules and regulations promulgated thereunder, and the requirements of any
stock exchange upon which the Shares may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          16.2 As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

     17. Reservation of Shares. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     18. Information to Optionees. The Company shall provide to each Optionee,
during the period for which such Optionee has one or more Options outstanding,
copies of all annual reports and other information which are generally provided
to all stockholders of the Company. The Company shall not be required to provide
such information to persons whose duties in connection with the Company assure
their access to equivalent information.

     19. Governing Law; Construction. All rights and obligations under the Plan
shall be governed by, and the Plan shall be construed in accordance with, the
laws of the State of Oklahoma without regard to the principals of conflicts of
laws. Titles and headings to Sections herein are for purposes of reference only,
and shall in no way limit, define or otherwise affect the meaning or
interpretation of any provisions of the Plan.

     ADOPTED by the Directors on March 13, 2002.

     APPROVED by the Shareholders on March 13, 2002.

<PAGE>

                                   EMTC, INC.
                             STOCK OPTION AGREEMENT

     THIS STOCK OPTION AGREEMENT (the "Agreement") is made this       day of
                                                                -----
[December], [2002] (the "Date of Grant"), between EMTC International, Inc., an
Oklahoma corporation (the "Company"), and [                    ], a resident of
                                           -------------------
                            (the "Optionee").
----------------------------

                              W I T N E S S E T H:
                               -------------------

     WHEREAS, under the terms and conditions of the Company's 2002 Stock Option
Plan (the "Plan"), a copy of which is attached hereto, Optionee has been
granted, effective the Date of Grant, an option to purchase shares of the
Company's Common Stock, $0.001 par value ("Common Stock");

     WHEREAS, the Company considers that its interests will be served by
granting Optionee an option to purchase shares of Common Stock as an inducement
for Optionee's continued and effective performance of services to the Company;

     NOW, THEREFORE, in consideration of the covenants and agreements herein
contained, the parties hereto hereby agree as follows:

     1. Subject to the terms and conditions set forth in this Agreement and in
the Plan, which is hereby incorporated herein by reference, the Company hereby
grants to Optionee the option (the "Option") to purchase up to, but not
exceeding in the aggregate, [________] shares of Common Stock at a price of
$[___] per share (the "Option Price"), subject to adjustment as provided in
Section 13 of the Plan.

     2. The type of Option and term are as indicated below:

----     This Option is intended to be an "incentive stock option" within
                  the meaning of Section 422A of the Internal Revenue Code of
                  1986, as amended, is issued to Optionee as an Employee and
                  shall extend for a maximum term of 10 years from the Date of
                  Grant.

----     This Option is not intended to be an "incentive stock option"
                  within the meaning of Section 422A of the Internal Revenue
                  Code of 1986, as amended, is issued to Optionee as an:

         ----     Employee

         ----     Consultant providing services as ________________________

     3. The Option may be exercised in whole or in part as follows:

          3.1 The Option may be exercised on [Date] with respect to [________]
of the aggregate number of shares subject to the Option;

          3.2 After the expiration of each annual anniversary of the date set
forth in paragraph 3.1, the Option may be exercised with respect to an
additional [_________] of the aggregate number of shares subject to the Option,
so that after the expiration of the [______] anniversary of the date set forth
in paragraph 3.1, the Option shall be exercisable in full;

          3.3 To the extent not exercised, installments shall be cumulative and
may be exercised in whole or in part until the Option expires.

     4. Exercise of the Option by Optionee shall be made pursuant to the terms
of Section 10 of the Plan.

     5. Upon severance of the affiliation of Optionee with the Company,
including due to death, the Option shall terminate in accordance with Section 9
of the Plan.

     6. As indicated below, this option is or is not subject to additional terms
set forth on Exhibit A hereto, which terms shall supersede any contrary
provision of the Agreement but shall not supersede any mandatory provision of
the Plan:

                        Exhibit A attached.
                  -----

                        No Exhibit A.
                  -----

     7. The Option shall not be transferable by Optionee otherwise than by will
or under the laws of descent and distribution or pursuant to a qualified
domestic relations order, and shall be exercisable during Optionee's lifetime
only by Optionee.

     8. The Option shall not be exercisable until compliance with all applicable
laws.

     9. This Agreement may not be modified or terminated except by an agreement
in writing signed by the party against whom enforcement of any such modification
or termination is sought.

     10. The grant of the Option imposes no obligation on the Company to be
affiliated with or continue to be affiliated with Optionee; and the right of the
Company to terminate the affiliation of Optionee shall not be diminished or
affected by reason of the fact that the Option has been granted to Optionee.

     11. Optionee shall not have any rights as a stockholder with respect to any
shares covered by the Option until the date of issuance of a stock certificate
or certificates to Optionee for such shares following Optionee's exercise of the
Option, in whole or in part, pursuant to its terms and conditions and payment
for the shares.

     12. In the event of any difference of opinion between Optionee and the
Company concerning the meaning or effect of the Plan, such difference shall be
resolved by the Board of Directors of the Company.

     13. The validity, construction and performance of this Agreement shall be
governed by and construed in accordance with the laws of the State of Oklahoma.
The invalidity of any provision of this Agreement shall not affect the validity
of any other provision.

     14. All offers, notices, demands, requests, acceptances or other
communications hereunder shall be in writing to the following addresses or such
other address as either party may hereafter designate in writing to the other:

         If to the Company:                          If to the Optionee:

         EMTC International, Inc.           ---------------------------------
         124 East Sheridan Avenue
                                            ---------------------------------
         Oklahoma City, OK 73104
                                            ---------------------------------
         Attention: John Harcourt
                                            ---------------------------------

     15. This Agreement shall, except as herein stated to the contrary, inure to
the benefit of and be binding upon the legal representatives, successors and
assigns of the parties hereto.

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as
of the day and year first above written.

EMTC International, Inc.                      OPTIONEE:

By:                                           Signature:
    ---------------------------------        -----------------------------
       John Harcourt, President

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