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                                                                   EXHIBIT 10.31

                               REPLACEMENT OPTION

                                 SMARTGATE, INC.

       This certifies that, H.R. Williams Family Limited Partnership (the
"Holder") is entitled at any time until December 31, 2001 to purchase and
receive 446,804 Shares of SmartGate, Inc., a Nevada corporation (the "Company"
or "SmartGate") capital stock. The exercise price under this Option shall be
$1.0657716 per share. In the event that SmartGate issues any Options from the
date hereof and during the Term of this Option at a price less than $1.0657716
per share then the Option exercise price hereunder shall be automatically
reduced to the lowest price reflected in any such option. This Option may be
accelerated by the Company during the calendar year 2001 provided that the
exercise price is discounted at the rate of 1% of the purchase price for each
month accelerated.

       This Option and the shares that may be acquired under this Option may be
assigned by the Holder and Holder in whole or in part to any family member or
any trust or other entity created by the Holder for the benefit of his family
members. Further, this Option may be exercised by the Holder in part and any
remaining unexercised portion of the Option shall remain intact and be
exercisable for the balance of the Term of this Option.

       SHARES ISSUED UPON THE EXERCISE OF THIS OPTION WILL BE RESTRICTED IN
ACCORDANCE WITH APPLICABLE STATE AND FEDERAL SECURITIES LAWS.

       In the event of a stock dividend or stock split resulting in the number
of outstanding of shares of the Company being changed, the applicable exercise
price and number of shares, as provided in this Option, shall be proportionately
adjusted. In the event of the merger, consolidation, or combination of the
Company into another company or entity which survives that transaction, the
shares which may be purchased under this Option shall be converted into an
equivalent number of shares of the surviving entity. In the event of the sale of
all or substantially all of the assets of the Company, the shares which may be
purchased upon the exercise of the Option shall be treated in any distribution
as if said shares are issued and outstanding, with the exception that the
exercise price under this Option shall be deducted from the amount to be
distributed on a per-share basis.

       This Option shall not entitle the Holder to voting or other rights of a
shareholder or to any dividends declared upon shares unless the holder shall
have exercised the Option and purchased the shares prior to the record date
fixed by the Company for such action.

       This Option is being issued by SmartGate, Inc., in exchange and
replacement for an Option representing 476,191 shares of SmartGate, L.C. (the
"Surrendered Option"). The Surrendered Option was issued by SmartGate, L.C., a
Florida limited liability company. The Surrendered Option shall be rendered void
and unenforceable by virtue of the acceptance by Holder of this Replacement
Option issued by SmartGate, Inc.

       IN WITNESS WHEREOF, the Company has caused this Option to be signed and
sealed by its duly authorized officer.

                                                    SmartGate, Inc.
                                                    a Nevada corporation

Dated: As of 2-9-2000                          By: /s/ STEPHEN A. MICHAEL
       --------------                              -----------------------------
                                                   Stephen A. Michael, President

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                       AMENDMENT TO SUBSCRIPTION AGREEMENT

       This Amendment to Subscription Agreement is entered into April 27, 2001
by and among H.R. Williams Family Limited Partnership ("Partnership"), H.R.
Williams, SmartGate, L.C. ("SmartGate") and SmartGate, Inc. to amend that
certain Subscription Agreement (the "Subscription Agreement") between the
Partnership and SmartGate dated March 12, 1999.

       WHEREAS, pursuant to the Subscription Agreement, the Partnership was
granted an option to purchase 476,191 shares of SmartGate, L.C. at $1.00 per
share with an exercise period to terminate on December 31, 2001 ("Option"); and

       WHEREAS, pursuant to the Contribution Agreement entered into by and among
the Partnership, as a member of SmartGate, SmartGate, and SmartGate, Inc. dated
February 9, 2000, the Partnership's Option was converted into an option to
purchase an equivalent number of SmartGate, Inc. shares in accordance with the
conversion ratio utilized under the Conversion Agreement for the exchange of
SmartGate, L.C. shares to SmartGate, Inc. shares ("Replacement Option"), a copy
of which is attached hereto; and

       WHEREAS, the Replacement Option issued to the Partnership is for the
purchase of 446,804 shares of SmartGate, Inc. at $1.0657716 per share with an
exercise period to terminate on December 31, 2001; and

       WHEREAS, pursuant to the Subscription Agreement, H.R. Williams agreed to
personally guarantee a credit facility for SmartGate and that said guarantee
would remain in effect for a period of twenty-four (24) months; and

       WHEREAS, the parties wish to extend the period of the personal guarantee
and the exercise period of the Replacement Option by amending the Subscription
Agreement as set forth hereinbelow.

       NOW THEREFORE, in consideration of their mutual promises made herein, and
for other good and valuable consideration, receipt of which is hereby
acknowledged by each party, the parties, intending to be legally bound, hereby
agree as follows:

       1. REPLACEMENT OPTION EXERCISE PERIOD EXTENSION. The reference to the
Option in Paragraph 2(a) of the Subscription Agreement is hereby amended to
reference the Replacement Option, and the exercise period of the Replacement
Option is amended as follows: the exercise period termination date of December
31, 2001 is hereby cancelled and deleted. The termination date for the exercise
period under the Replacement Option is hereby extended to be the 245th day
following the first date upon which either: (i) SmartGate's line of credit
facility with Regions Bank ("Credit Facility") or a replacement bank if Regions
Bank is unwilling to extend said credit facility ("Replacement Credit Facility")
is paid off; or (ii) H.R. Williams' guarantee is released by SmartGate from the
Credit Facility or the Replacement Credit Facility (the "Option Release
Conditions"). Upon satisfaction of the Option Release Conditions, SmartGate will
advise the Partnership that the Option Release Conditions has been satisfied and
that the period to exercise the Replacement Option will terminate on the 245th
day following said date ("New Exercise Termination Date"). The parties further
agree that all other terms of the Replacement Option remain in full force and
effect and that this Amendment shall serve as the amendment to the Replacement
Option establishing the New Exercise Termination Date.

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       2. CREDIT FACILITY GUARANTY EXTENSION. Mr. Williams shall renew and
extend his guarantee of SmartGate's line of credit facility with Regions Bank
(or a Replacement Credit Facility) for an additional two-year period.
Accordingly, Paragraph 2(b)(iii) of the Subscription Agreement is hereby amended
to reflect this guarantee extension.

       3. REMAINDER OF SUBSCRIPTION AGREEMENT BINDING. Except as herein
modified, the Subscription Agreement and the Replacement Option and all of the
terms and conditions therein shall remain unmodified and in full force and
effect.

       4. COUNTERPARTS. This Amendment to Subscription Agreement may be executed
in several counterparts, each of which shall be fully effective as an original,
and all of which together shall constitute one in the same instrument. A
facsimile copy of this Agreement and counterpart signature shall be considered,
for all purposes, as an original.

       IN WITNESS WHEREOF, the undersigned have caused the execution of this
Amendment to Subscription Agreement by them on April 27, 2001.

H.R. Williams Family Limited Partnership       SmartGate, L.C.

By: /s/ H.R. WILLIAMS                      By: /s/ STEPHEN A. MICHAEL, PRESIDENT
    -----------------                          ---------------------------------

H.R. Williams                                   SmartGate, Inc.

    /s/ H.R. WILLIAMS                      By: /s/ STEPHEN A. MICHAEL, PRESIDENT
    -----------------                          ---------------------------------
H.R. Williams<PAGE>
                                                                   EXHIBIT 10.32

                                "SMARTGATE, INC."
              2000 EMPLOYEE, DIRECTOR, CONSULTANT AND ADVISOR STOCK
                                COMPENSATION PLAN

1.      Purpose

        The purpose of this plan (the "Plan") is to secure for SmartGate, Inc.
(the "Company") and its shareholders the benefits arising from capital stock
ownership by employees, officers and directors of, and consultants or advisors
to, the Company and its parent and subsidiary corporation who have contributed
to the Company in the past and who are expected to contribute to the Company's
future growth and success. Except where the context otherwise requires, the term
"Company" shall include the parent and all present and future subsidiaries of
the Company.

2.      Type of Stock or Option and Administration

        (a) Type of Stock or Option. The shares of the Common Stock issued for
services rendered pursuant to the Plan shall be authorized by action of the
Board of Directors of the Company (the "Board"), or a committee (the
"Committee") designated by the Board of Directors.

        (b) Administration. The Plan will be administered by the Board, whose
construction and interpretation of the terms and provisions of the Plan shall be
final and conclusive. The Board may, to the full extent permitted by or
consistent with applicable laws or regulations (including, without rotation,
applicable state laws and Rule 16b-3 promulgated under the Securities Exchange
Act of 1934 (the "Exchange Act"), or any successor rate (Rule 16b-3"), delegate
any or all of its powers under the Plan to a Committee appointed by the Board,
and if the Committee is so appointed all references to the Board in this Plan
shall mean and relate to such Committee. The Board may in its sole discretion
authorize the issuance of Common Stock for services rendered ("Common Stock").
The Board shall have authority, subject to the express provision of the Plan, to
construe the respective stock issuance agreements, and the Plan, to prescribe,
amend and rescind rates and regulations relating to the Plan, to determine the
terms and provisions of the prescribed stock issuance agreements, which need not
be identical, and to make all other determinations in the judgement of the Bond
necessary or desirable for the administration of the Plan. The Board may correct
any defect or supply any emission or reconcile my inconsistency in the Plan or
in any stock issuance agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect and it shall be the sole and final judge
of such expediency. No other director or person acting pursuant to authority
delegated by the Board or the Committee shall be liable for any action or
determination under the Plan made in good faith.

3.      Eligibility

        (a) General. Shares may be issued to persons who are, at the time of
issuance, employees or officers and directors of, or consultants or advisors to,
the Company; and Common Stock may be issued to consultants or advisors who have
rendered or are rendering and are expected to continue to render consulting or
advisory services, including professional advisory services, to the Company.

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        (b) Issuance of Stock to Officers and Directors. The selection of an
officer or director as a recipient of stock, the timing of the stock issuance,
and the number of shares subject to the issuance shall be determined either (i)
by the Board, of which all members shall be "disinterested persons" (as
hereinafter defined), or (ii) by two or more directors having full authority to
act in the matter.

        (c) Issuance of Stock. Stock may only be issued to eligible persons for
services (as defined in Section 3(a) above) (including incidental expenses
incurred in connection with the rendering of services) to the Company.

4.      Stock Subject to Plan.

        Subject to adjustment as provided in Section 9 below, the maximum number
of shares of Common Stock of the Company which may be issued and sold under the
Plan is 1,500,000 shares.

5.      Forms of Stock Issuance Agreements.

        As a condition to the issuance of Stock under the Plan, each recipient
of either stock shall execute either an employee, director or advisor
compensation agreement or an option agreement in such form not inconsistent with
the Plan as may be approved by the Board. Such agreements may differ among
recipients.

6.      Effects of Stock Issuance.

        Shares of stock that are issued for services rendered pursuant to this
Plan may not be canceled by the Company; provided that when the shares are
issued, the recipient of the shares shall acknowledge having received full
payment for the services previously rendered and shall waive any right to
additional or different payment by the Company for such services.

7.      Additional Provisions.

        The Board may, in its sole discretion, include additional provisions in
stock issuance agreements under the Plan, including without limitations
restrictions on transfer, repurchase rights, commitments to pay cash bonuses,
registration rights under the Securities Act of 1933, or such provisions as
shall be determined by the Board; provided that such additional provisions shall
not be inconsistent with any other term or condition of the Plan.

8.      General Restrictions.

        The shares issued pursuant to this Plan shall be subject to the
requirements that if, at any time, counsel to the Company shall determined that
the listing, registration or qualification of the shares, upon any securities
exchange or under any state or federal law, or that the consent or approval of
any government or regulatory body, or that the disclosure of non-public
information or the satisfaction of my other condition is necessary as a
condition of, or in connection with, the issuance of shares thereunder, such
shares may not be issued, in whole or in part, unless such listing,
registration, qualification, consent or approval, or satisfaction of such
condition shall have been effected or obtained on conditions acceptable of the
Board.

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9.      Adjustment Provisions for Recapitalization

        If, through or as a result of any merger, consolidation, sale of all or
substantially all of the assets of the Company, reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar transaction, (i) the outstanding shares of Common Stock
are increased, decreased or exchanged for a different number or kind of shares
or other securities of the Company or (ii) additional shares or new or different
shares or other securities, of the Company or other non-cash assets are
distributed with respect to such shares of Common Stock or other securities, an
appropriate and proportionate adjustment may be made in the maximum number and
kind of shares reserved for issuance under the Plan.

10.     Substitute Stock.

        The Company may issue stock under the Plan in substitution for stock
held by employees and directors of, or consultants or advisors to, another
corporation who becomes employees of or consultant or advisors to the Company or
a subsidiary of the Company, or as a result of the acquisition by the Company,
or one of its subsidiaries, of property or stock of the employing corporation.
The Company may direct that substitute stock be issued on such terms and
conditions as the Board considers appropriate in the circumstances.

11.     No Special Employment Rights.

        Nothing contained in the Plan or in any stock issuance shall confer upon
any recipient any right with respect to the continuation of his or her
employment by the Company or interfere in any way with the right of the Company
at any time to terminate such employment or to increase or decrease the
compensation of the recipient.

12.     Amendment of the Plan.

        (a) The Board may at any time, and from time to time, modify or amend
the Plan in any respect, except that if at any time the approval of the
shareholders of the Company is required under the law or rule, the Board may not
effect such modification or amendment without such approval.

        (b) The termination or any modification or amendment of the Plan shall
not, without the consent of a recipient of stock, affect his or her rights under
stock previously issued or granted to him or her. With the consent of the
recipient or optionee affected, the Board may amend outstanding stock agreements
in a manner not inconsistent with the Plan.

13.     Effective Date and Duration Of the Plan

        (a) Effective Date. The Plan shall become effective when adopted by the
Board. Amendments to the Plan shall become effective when adopted by the Board.
Shares may be issued under the Plan at any time after the effective date and
before the dated fixed as the termination date of the Plan.

        (b) Termination. Unless sooner expressly terminated in accordance with
the provisions of the Plan, the Plan shall terminate upon the earlier of (i)
September 1, 2010, or (ii) the date on which all shares available for issuance
under the Plan shall have been issued.

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14.     Provisions for Foreign Participation

        The Board may, without amending the Plan, modify stock issuances granted
to participants who we foreign national or employed outside the United States to
recognize differences in laws, rules, regulations or customs of such foreign
jurisdiction with respect to tax, securities, currency, employee benefits or
other matters.

15.     Registration of Shares

        In the Board's discretion, the Board may agree with respect to any or
all of the shares issued under the Plan, to prepare and file Registration
Statements on Form S-8, which Registration Statements may include re-offer
prospectuses as that term is defined in Form S-8, to register and continue to
keep effectively registered for resale the shares issued as compensation under
the Plan.

                                   Adopted by the Board of Directors
                                   July 26, 2000

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                    FILING SCHEDULE PURSUANT TO PARAGRAPH 2.
    INSTRUCTIONS TO ITEM 601 UNDER SECTION 229.601 EXHIBITS OF REGULATION S-K

        This 2000 Employee, Director, Consultant and Advisor Stock Compensation
Plan was attached to all of the Plan 2000 Option Agreements.

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