Document:

<PAGE>

                                                                   EXHIBIT 10.26

                              FIRST AMENDMENT TO
                             EMPLOYMENT AGREEMENT
                             --------------------

     This Amendment to Employment Agreement ("Amendment") is made as of February
18, 2001, between Grow Biz International, Inc. ("Employer") and John L. Morgan
("Employee").

                                  INTRODUCTION

     Employer and Employee entered into a Employment Agreement dated March 22,
2000 ("Employment Agreement"), which each party now desires to amend as set
forth below.

                                   AGREEMENT

     In consideration of the foregoing, the parties agree as follows:

1.   Amendment of Section 3. Section 3 of the Employment Agreement is hereby
     amended and restated in its entirety as follows:

          Annual Base Salary. The annual base salary, exclusive of any benefits
          or bonuses, which Employer agrees to pay to Employee will be One
          Hundred Thousand Dollars ($100,000). All amounts paid under this
          Agreement will be paid consistent with Employer's normal payroll
          practice and will be subject to all normal and required withholdings.

2.   Force and Effect.  Except as amended hereby, each term of the Employment
     Agreement shall remain in full force and effect.

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
herein first above written.

                                 EMPLOYER:

                                 Grow Biz International, Inc.

Dated:    February 18, 2001      By: /s/ Stephen M. Briggs
                                     ----------------------------------
                                     Stephen M. Briggs, President

                                 EMPLOYEE:

Dated:    February 18, 2001      By: /s/ John L. Morgan
                                     ----------------------------------
                                     John L. Morgan<PAGE>

                                                                   EXHIBIT 10.27

                          GROW BIZ INTERNATIONAL, INC.
                             2001 STOCK OPTION PLAN

                                   SECTION 1.
                                  DEFINITIONS
                                  -----------

     As used herein, the following terms shall have the meanings indicated
below:

     (a)  "Affiliate" shall mean a Parent or Subsidiary of the Company.

     (b)  "Committee" shall mean a Committee of two or more directors who shall
be appointed by and serve at the pleasure of the Board.  In the event the
Company's securities are registered pursuant to Section 12 of the Securities
Exchange Act of 1934, as amended, each of the members of the Committee shall be
a "non-employee director" within the meaning of Rule 16b-3, or any successor
provision, as then in effect, of the General Rules and Regulations under the
Securities Exchange Act of 1934 as amended.

     (c)  The "Company" shall mean Grow Biz International, Inc., a Minnesota
corporation.

     (d)  "Fair Market Value" as of any date shall mean (i) if such stock is
listed on the Nasdaq National Market, Nasdaq SmallCap Market, or an established
stock exchange, the price of such stock at the close of the regular trading
session of such market or exchange on such date, as reported by The Wall Street
                                                                ---------------
Journal or a comparable reporting service, or, if no sale of such stock shall
-------
have occurred on such date, on the next preceding day on which there was a sale
of stock; (ii) if such stock is not so listed on the Nasdaq National Market,
Nasdaq SmallCap Market, or an established stock exchange, the average of the
closing "bid" and "asked" prices quoted by the OTC Bulletin Board, the National
Quotation Bureau, or any comparable reporting service on such date or, if there
are no quoted "bid" and "asked" prices on such date, on the next preceding date
for which there are such quotes; or (iii) if such stock is not publicly traded
as of such date, the per share value as determined by the Board, or the
Committee, in its sole discretion by applying principles of valuation with
respect to the Company's Common Stock.

     (e)  The "Internal Revenue Code" is the Internal Revenue Code of 1986, as
amended from time to time.

     (f)  "Option Stock" shall mean Common Stock of the Company (subject to
adjustment as described in Section 12) reserved for options pursuant to this
Plan.

     (g)  The "Optionee" means an employee of the Company or any Affiliate to
whom an incentive stock option has been granted pursuant to Section 9; a
consultant or advisor, to or director, employee or officer, of the Company or
any Affiliate to whom a nonqualified stock option has been granted pursuant to
Section 10; or a director to whom a nonqualified stock option has been granted
hereunder.

     (h)  "Parent" shall mean any corporation which owns, directly or indirectly
in an unbroken chain, fifty percent (50%) or more of the total voting power of
the Company's outstanding stock.

     (i)  The "Plan" means the Grow Biz International, Inc. 2001 Stock Option
Plan, as amended hereafter from time to time, including the form of Option
Agreements as they may be modified by the Administrator from time to time.
<PAGE>

     (j)  A "Subsidiary" shall mean any corporation of which fifty percent (50%)
or more of the total voting power of outstanding stock is owned, directly or
indirectly in an unbroken chain, by the Company.

                                   SECTION 2.
                                    PURPOSE
                                    -------

     The purpose of the Plan is to promote the success of the Company and its
Affiliates by facilitating the employment and retention of competent personnel
and by furnishing incentive to officers, directors, employees, consultants, and
advisors upon whose efforts the success of the Company and its Affiliates will
depend to a large degree.

     It is the intention of the Company to carry out the Plan through the
granting of stock options which will qualify as "incentive stock options" under
the provisions of Section 422 of the Internal Revenue Code, or any successor
provision, and through the granting of "non-qualified stock options."  Adoption
of this Plan shall be and is expressly subject to the condition of approval by
the shareholders of the Company within twelve (12) months before or after the
adoption of the Plan by the Board of Directors.  In the event shareholder
approval is not obtained within such twelve-month period, any incentive stock
options granted under the Plan shall automatically become nonqualified stock
options.

                                  SECTION 3.
                            EFFECTIVE DATE OF PLAN
                            ----------------------

     The Plan shall be effective as of the date of adoption by the Board of
Directors, subject to approval by the shareholders of the Company as required in
Section 2.

                                  SECTION 4.
                                ADMINISTRATION
                                --------------

     The Plan shall be administered by the Board of Directors of the Company
(hereinafter referred to as the "Board") or by a Committee which may be
appointed by the Board from time to time to administer the Plan (hereinafter the
Board and Committee shall be collectively referred to as the "Administrator").
The Administrator shall have all of the powers vested in it under the provisions
of the Plan, including but not limited to exclusive authority (where applicable
and within the limitations described herein) to determine, in its sole
discretion, whether an incentive stock option or nonqualified stock option shall
be granted, the individuals to whom, and the time or times at which, options
shall be granted, the number of shares subject to each option and the option
price and terms and conditions of each option.  The Administrator shall have
full power and authority to administer and interpret the Plan, to make and amend
rules, regulations and guidelines for administering the Plan, to prescribe the
form and conditions of the respective stock option agreements (which may vary
from Optionee to Optionee) evidencing each option and to make all other
determinations necessary or advisable for the administration of the Plan.  The
Administrator's  interpretation of the Plan, and all actions taken and
determinations made by the Administrator pursuant to the power vested in it
hereunder, shall be conclusive and binding on all parties concerned.

     No member of the Board or the Committee shall be liable for any action
taken or determination made in good faith in connection with the administration
of the Plan.  In the event the Board appoints a Committee as provided hereunder,
any action of the Committee with respect to the administration of the Plan shall
be taken pursuant to a majority vote of the Committee members or pursuant to the
written resolution of all Committee members.
<PAGE>

                                  SECTION 5.
                                 PARTICIPANTS
                                 ------------

     The Administrator shall from time to time, at its discretion and without
approval of the shareholders, designate those employees, officers, directors,
consultants, and advisors of the Company or of any Affiliate to whom
nonqualified stock options shall be granted under this Plan; provided, however,
that consultants or advisors shall not be eligible to receive stock options
hereunder unless such consultant or advisor renders bona fide services to the
Company or Affiliate and such services are not in connection with the offer or
sale of securities in a capital raising transaction and do not directly or
indirectly promote or maintain a market for the Company's securities.  The
Administrator shall, from time to time, at its discretion and without approval
of the shareholders, designate those employees of the Company or any Affiliate
to whom incentive stock options shall be granted under this Plan.  The
Administrator may grant additional incentive stock options or nonqualified stock
options under this Plan to some or all participants then holding options or may
grant options solely or partially to new participants.  In designating
participants, the Administrator shall also determine the number of shares to be
optioned to each such participant.  The Administrator may from time to time
designate individuals as being ineligible to participate in the Plan.

                                  SECTION 6.
                                    STOCK
                                    -----

     The Stock to be optioned under this Plan shall consist of authorized but
unissued shares of Option Stock.  Five Hundred Thousand (500,000) shares of
Option Stock shall be reserved and available for options under the Plan;
provided, however, that the total number of shares of Option Stock reserved for
options under this Plan shall be subject to adjustment as provided in Section 12
of the Plan.  In the event that any outstanding option under the Plan for any
reason expires or is terminated prior to the exercise thereof, the shares of
Option Stock allocable to the unexercised portion of such option shall continue
to be reserved for options under the Plan and may be optioned hereunder.

                                  SECTION 7.
                               DURATION OF PLAN
                               ----------------

     Incentive stock options may be granted pursuant to the Plan from time to
time during a period of ten (10) years from the effective date as defined in
Section 3.  Nonqualified stock options may be granted pursuant to the Plan from
time to time after the effective date of the Plan and until the Plan is
discontinued or terminated by the Board.

                                  SECTION 8.
                                    PAYMENT
                                    -------

     Optionees may pay for shares upon exercise of options granted pursuant to
this Plan with cash, personal check, certified check or, if approved by the
Administrator in its sole discretion, previously-owned shares of Option Stock
valued at such stock's then Fair Market Value, or such other form of payment as
may be authorized by the Administrator.  The Administrator may, in its sole
discretion, limit the forms of payment available to the Optionee and may
exercise such discretion any time prior to the termination of the Option granted
to the Optionee or upon any exercise of the Option by the Optionee.
"Previously-owned shares" means shares of Option Stock which the Optionee has
owned for at least six (6) months prior to the exercise of the stock option, or
for such other period of time as may be required by generally accepted
accounting principles.

     With respect to payment in the form of shares of Option Stock, the
Administrator may require advance approval or adopt such rules as it deems
necessary to assure compliance with Rule 16b-3, or any successor
<PAGE>

provision, as then in effect, of the General Rules and Regulations under the
Securities Exchange Act of 1934, if applicable.

                                  SECTION 9.
                TERMS AND CONDITIONS OF INCENTIVE STOCK OPTIONS
                -----------------------------------------------

     Each incentive stock option granted pursuant to this Section 9 shall be
evidenced by a written stock option agreement (the "Option Agreement").  The
Option Agreement shall be in such form as may be approved from time to time by
the Administrator and may vary from Optionee to Optionee; provided, however,
that each Optionee and each Option Agreement shall comply with and be subject to
the following terms and conditions:

     (a)  Number of Shares and Option Price.  The Option Agreement shall state
the total number of shares covered by the incentive stock option.  To the extent
required to qualify the Option as an incentive stock option under Section 422 of
the Internal Revenue Code, or any successor provision, the option price per
share shall not be less than one hundred percent (100%) of the per share Fair
Market Value of the Option Stock on the date the Administrator grants the
option; provided, however, that if an Optionee owns stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of its parent or any Subsidiary, the option price per share of an
incentive stock option granted to such Optionee shall not be less than one
hundred ten percent (110%) of the per share Fair Market Value of the Option
Stock on the date of the grant of the option.  The Administrator shall have full
authority and discretion in establishing the option price and shall be fully
protected in so doing.

     (b)  Term and Exercisability of Incentive Stock Option.  The term during
which any incentive stock option granted under the Plan may be exercised shall
be established in each case by the Administrator .  To the extent required to
qualify the Option as an incentive stock option under Section 422 of the
Internal Revenue Code, or any successor provision, in no event shall any
incentive stock option be exercisable during a term of more than ten (10) years
after the date on which it is granted; provided, however, that if an Optionee
owns stock possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of its parent or any Subsidiary,
the incentive stock option granted to such Optionee shall be exercisable during
a term of not more than five (5) years after the date on which it is granted.
The Option Agreement shall state when the incentive stock option becomes
exercisable and shall also state the maximum term during which the option may be
exercised.  In the event an incentive stock option is exercisable immediately,
the manner of exercise of the option in the event it is not exercised in full
immediately shall be specified in the Option Agreement.  The Administrator may
accelerate the exercise date of any incentive stock option granted hereunder
which is not immediately exercisable as of the date of grant.

     (c)  Other Provisions. The Option Agreement authorized under this Section 9
shall contain such other provisions as the Administrator shall deem advisable.
Any such Option Agreement shall contain such limitations and restrictions upon
the exercise of the option as shall be necessary to ensure that such option will
be considered an "incentive stock option" as defined in Section 422 of the
Internal Revenue Code or to conform to any change therein.

                                  SECTION 10.
              TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTIONS
              --------------------------------------------------

     Each nonqualified stock option granted pursuant to this Section 10 shall be
evidenced by a written Option Agreement.  The Option Agreement shall be in such
form as may be approved from time to time by the Administrator and may vary from
Optionee to Optionee; provided, however, that each Optionee and each Option
Agreement shall comply with and be subject to the following terms and
conditions:
<PAGE>

     (a)  Number of Shares and Option Price.  The Option Agreement shall state
the total number of shares covered by the nonqualified stock option.  Unless
otherwise determined by the Administrator, the option price per share shall be
one hundred percent (100%) of the per share Fair Market Value of the Option
Stock on the date the Administrator grants the option; provided, however, that
the option price per share may not be less than eighty-five percent (85%) of the
per share Fair Market Value of the Option Stock on the date of grant.

     (b)  Term and Exercisability of Nonqualified Stock Option.  The term during
which any nonqualified stock option granted under the Plan may be exercised
shall be established in each case by the Administrator.  The Option Agreement
shall state when the nonqualified stock option becomes exercisable and shall
also state the maximum term during which the option may be exercised.  In the
event a nonqualified stock option is exercisable immediately, the manner of
exercise of the option in the event it is not exercised in full immediately
shall be specified in the stock option agreement.  The Administrator may
accelerate the exercise date of any nonqualified stock option granted hereunder
which is not immediately exercisable as of the date of grant.

     (c)  Withholding.  The Company or its Affiliate shall be entitled to
withhold and deduct from future wages of the Optionee all legally required
amounts necessary to satisfy any and all withholding and employment-related
taxes attributable to the Optionee's exercise of a nonqualified stock option.
In the event the Optionee is required under the Option Agreement to pay the
Company, or make arrangements satisfactory to the Company respecting payment of,
such withholding and employment-related taxes, the Administrator may, in its
discretion and pursuant to such rules as it may adopt, permit the Optionee to
satisfy such obligation, in whole or in part, by electing to have the Company
withhold shares of Option Stock otherwise issuable to the Optionee as a result
of the option's exercise having a Fair Market Value equal to the minimum
required tax withholding, based on the minimum statutory withholding rates for
federal and state tax purposes, including payroll taxes, that are applicable to
the supplemental income resulting from the option.  In no event may the Company
or any Affiliate withhold shares having a Fair Market Value in excess of such
statutory minimum required tax withholding.  The Optionee's election to have
shares withheld for this purpose shall be made on or before the date the option
is exercised or, if later, the date that the amount of tax to be withheld is
determined under applicable tax law.  Such election shall be approved by the
Administrator and otherwise comply with such rules as the Administrator may
adopt to assure compliance with Rule 16b-3, or any successor provision, as then
in effect, of the General Rules and Regulations under the Securities Exchange
Act of 1934, if applicable.

     (d)  Other Provisions.  The Option Agreement authorized under this Section
10 shall contain such other provisions as the Administrator shall deem
advisable.

                                  SECTION 11.
                              TRANSFER OF OPTION
                              ------------------

     No incentive stock option shall be transferable, in whole or in part, by
the Optionee other than by will or by the laws of descent and distribution and,
during the Optionee's lifetime, the option may be exercised only by the
Optionee.  If the Optionee shall attempt any transfer of any incentive stock
option granted under the Plan during the Optionee's lifetime, such transfer
shall be void and the incentive stock option, to the extent not fully exercised,
shall terminate.

     No nonqualified stock option shall be transferred, except that the
Administrator may, in its sole discretion, permit the Optionee to transfer any
or all nonqualified stock options to any member of the Optionee's "immediate
family" as such term is defined in Rule 16a-1(e) promulgated under the
Securities Exchange Act of 1934, or any successor provision, or to one or more
trusts whose beneficiaries are members of such Optionee's "immediate family" or
partnerships in which such family members are the only partners; provided,
however, that the Optionee receives no consideration for the transfer and such
transferred nonqualified stock option shall continue to be subject to the same
terms and conditions as were applicable to such nonqualified stock option
immediately prior to its transfer.
<PAGE>

                                  SECTION 12.
                   RECAPITALIZATION, SALE, MERGER, EXCHANGE
                   ----------------------------------------
                                OR LIQUIDATION
                                --------------

     If, following adoption of this Plan, the Company effects an increase or
decrease in the number of shares of Common Stock in the form of a subdivision or
consolidation of shares, or the payment of a stock dividend, or effects any
other increase or decrease in the number of shares of Common Stock without
receipt of consideration by the Company, the number of shares of Option Stock
reserved under Section 6 hereof and the number of shares of Option Stock covered
by each outstanding option and the price per share thereof shall be
appropriately adjusted by the Board to reflect such change.  Additional shares
which may be credited pursuant to such adjustment shall be subject to the same
restrictions as are applicable to the shares with respect to which the
adjustment relates.

     Unless otherwise provided in the Option Agreement, in the event of an
acquisition of the Company through the sale of substantially all of the
Company's assets and the consequent discontinuance of its business or through a
merger, consolidation, exchange, reorganization, reclassification, extraordinary
dividend, divestiture or liquidation of the Company (collectively referred to as
a "transaction"), all outstanding stock options shall become immediately
exercisable, whether or not such options had become exercisable prior to the
transaction; provided, however, that if the acquiring party seeks to have the
transaction accounted for on a "pooling of interests" basis and, in the opinion
of the Company's independent certified public accountants, the acceleration of
the exercisability of such options would preclude a pooling of interests under
generally accepted accounting principles, the exercisability of such options
shall not accelerate.  In addition to the foregoing, or in the event a pooling
of interests transaction precludes the acceleration of the exercisability of
outstanding options, the Board may provide for one or more of the following:

          (a)  the complete termination of this Plan and the cancellation of
     outstanding options not exercised prior to a date specified by the Board
     (which date shall give Optionees a reasonable period of time in which to
     exercise the options prior to the effectiveness of such transaction);

          (b) that Optionees holding outstanding stock options shall receive,
     with respect to each share of Stock subject to such options, as of the
     effective date of any such transaction, cash in an amount equal to the
     excess of the Fair Market Value of such Stock on the date immediately
     preceding the effective date of such transaction over the option price per
     share of such options; provided that the Board may, in lieu of such cash
     payment, distribute to such Optionees shares of stock of the Company or
     shares of stock of any corporation succeeding the Company by reason of such
     transaction, such shares having a value equal to the cash payment herein;

          (c)  the continuance of the Plan with respect to the exercise of
     options which were outstanding as of the date of adoption by the Board of
     such plan for such transaction and provide to Optionees holding such
     options the right to exercise their respective options as to an equivalent
     number of shares of stock of the corporation succeeding the Company by
     reason of such transaction.

The Board may restrict the rights of or the applicability of this Section 12 to
the extent necessary to comply with Section 16(b) of the Securities Exchange Act
of 1934, the Internal Revenue Code or any other applicable law or regulation.
The grant of an option pursuant to the Plan shall not limit in any way the right
or power of the Company to make adjustments, reclassifications, reorganizations
or changes of its capital or business structure or to merge, exchange or
consolidate or to dissolve, liquidate, sell or transfer all or any part of its
business or assets.

                                  SECTION 13.
                              INVESTMENT PURPOSE
                              ------------------
<PAGE>

     No shares of Option Stock shall be issued pursuant to the Plan unless and
until there has been compliance, in the opinion of Company's counsel, with all
applicable legal requirements, including without limitation, those relating to
securities laws and stock exchange listing requirements.  As a condition to the
issuance of Option Stock to Optionee, the Administrator may require Optionee to
(a) represent that the shares of Option Stock are being acquired for investment
and not resale and to make such other representations as the Administrator shall
deem necessary or appropriate to qualify the issuance of the shares as exempt
from the Securities Act of 1933 and any other applicable securities laws, and
(b) represent that Optionee shall not dispose of the shares of Option Stock in
violation of the Securities Act of 1933 or any other applicable securities laws.

     As a further condition to the grant of any stock option or the issuance of
Option Stock to Optionee, Optionee agrees to the following:

          (a) In the event the Company advises Optionee that it plans an
     underwritten public offering of its Common Stock in compliance with the
     Securities Act of 1933, as amended, and the underwriter(s) seek to impose
     restrictions under which certain shareholders may not sell or contract to
     sell or grant any option to buy or otherwise dispose of part or all of
     their stock purchase rights of the underlying Common Stock, Optionee will
     not, for a period not to exceed 180 days from the prospectus, sell or
     contract to sell or grant an option to buy or otherwise dispose of any
     stock option granted to Optionee pursuant to the Plan or any of the
     underlying shares of Option Stock without the prior written consent of the
     underwriter(s) or its representative(s).

          (b) In the event the Company makes any public offering of its
     securities and determines in its sole discretion that it is necessary to
     reduce the number of issued but unexercised stock purchase rights so as to
     comply with any states securities or Blue Sky law limitations with respect
     thereto, the Administrator shall have the right (i) to accelerate the
     exercisability of any stock option and the date on which such option must
     be exercised, provided that the Company gives Optionee prior written notice
     of such acceleration, and (ii) to cancel any options or portions thereof
     which Optionee does not exercise prior to or contemporaneously with such
     public offering.

          (c) In the event of a transaction (as defined in Section 12 of the
     Plan) which is treated as a "pooling of interests" under generally accepted
     accounting principles, Optionee will comply with Rule 145 of the Securities
     Act of 1933 and any other restrictions imposed under other applicable legal
     or accounting principles if Optionee is an "affiliate" (as defined in such
     applicable legal and accounting principles) at the time of the transaction,
     and Optionee will execute any documents necessary to ensure compliance with
     such rules.

The Company reserves the right to place a legend on any stock certificate issued
upon exercise of an option granted pursuant to the Plan to assure compliance
with this Section 13.

                                  SECTION 14.
                            RIGHTS AS A SHAREHOLDER
                            -----------------------

     An Optionee (or the Optionee's successor or successors) shall have no
rights as a shareholder with respect to any shares covered by an option until
the date of the issuance of a stock certificate evidencing such shares.  No
adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property), distributions or other rights for which the
record date is prior to the date such stock certificate is actually issued
(except as otherwise provided in Section 12 of the Plan).
<PAGE>

                                  SECTION 15.
                             AMENDMENT OF THE PLAN
                             ---------------------

     The Board may from time to time, insofar as permitted by law, suspend or
discontinue the Plan or revise or amend it in any respect; provided, however,
that no such revision or amendment, except as is authorized in Section 12, shall
impair the terms and conditions of any option which is outstanding on the date
of such revision or amendment to the material detriment of the Optionee without
the consent of the Optionee.  Notwithstanding the foregoing, no such revision or
amendment shall (i) increase the number of shares subject to the Plan except as
provided in Section 12 hereof, (ii) change the designation of the class of
employees eligible to receive options, (iii) decrease the price at which options
may be granted, or (iv) materially increase the benefits accruing to Optionees
under the Plan without the approval of the shareholders of the Company if such
approval is required for compliance with the requirements of any applicable law
or regulation.  Furthermore, the Plan may not, without the approval of the
shareholders, be amended in any manner that will cause incentive stock options
to fail to meet the requirements of Section 422 of the Internal Revenue Code.

                                  SECTION 16.
                       NO OBLIGATION TO EXERCISE OPTION
                       --------------------------------

          The granting of an option shall impose no obligation upon the Optionee
to exercise such option.  Further, the granting of an option hereunder shall not
impose upon the Company or any Affiliate any obligation to retain the Optionee
in its employ for any period.
<PAGE>

                       INCENTIVE STOCK OPTION AGREEMENT

                         GROW BIZ INTERNATIONAL, INC.
                            2001 STOCK OPTION PLAN

     THIS AGREEMENT, made effective as of this ____ day of _____________,
______, by and between Grow Biz International, Inc., a Minnesota corporation
(the "Company"), and ______________________ ("Optionee").

                             W I T N E S S E T H:

     WHEREAS, Optionee on the date hereof is a key employee or officer of the
Company or an Affiliate; and

     WHEREAS, the Company wishes to grant an incentive stock option to Optionee
to purchase shares of the Company's Common Stock pursuant to the Company's 2001
Stock Option Plan (the "Plan"); and

     WHEREAS, the Administrator of the Plan has authorized the grant of an
incentive stock option to Optionee and has determined that, as of the effective
date of this Agreement, the fair market value of the Company's Common Stock is
$_________ per share;

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

     1.   Grant of Option.  The Company hereby grants to Optionee on the date
set forth above (the "Date of Grant"), the right and option (the "Option") to
purchase all or portions of an aggregate of
______________________________________________ (________________) shares of
Common Stock (the "Stock") at a per share price of $____________ on the terms
and conditions set forth herein, and subject to adjustment pursuant to Section
12 of the Plan.  This Option is intended to be an incentive stock option within
the meaning of Section 422, or any successor provision, of the Internal Revenue
Code of 1986, as amended (the "Code"), and the regulations thereunder, to the
extent permitted under Code Section 422(d).

     2.   Duration and Exercisability.

          a.   General.  The term during which this Option may be exercised
shall terminate on ____________________________, ______, except as otherwise
provided in Paragraphs 2(b) through 2(d) below.  This Option shall become
exercisable according to the following schedule:

                                         Cumulative Percentage
               Vesting Date                 of Shares
               ------------                 ---------

Once the Option becomes exercisable to the extent of one hundred percent (100%)
of the aggregate number of shares specified in Paragraph 1, Optionee may
continue to exercise this Option under the terms and conditions of this
Agreement until the termination of the Option as provided herein.  If Optionee
does not purchase upon an exercise of this Option the full number of shares
which Optionee is then entitled to purchase, Optionee may purchase upon any
subsequent exercise prior to this Option's termination such previously
unpurchased shares in addition to those Optionee is otherwise entitled to
purchase.
<PAGE>

          b.   Termination of Employment (Other Than Disability or Death).  If
Optionee's employment with the Company or its Affiliate is terminated for any
reason other than disability or death,  this Option shall terminate on the
earlier of (i) the close of business on the three-month anniversary date of the
such termination of employment, and (ii) the expiration date of this Option
stated in Paragraph 2(a) above.  In such period following the termination of
Optionee's employment, this Option shall be exercisable only to the extent the
Option was exercisable on the vesting date immediately preceding such
termination of employment, but had not previously been exercised.  To the extent
this Option was not exercisable upon such termination of employment, or if
Optionee does not exercise the Option within the time specified in this
Paragraph 2(b), all rights of Optionee under this Option shall be forfeited.

          c.   Disability.  If Optionee's employment terminates because of
disability (as defined in Code Section 22(e), or any successor provision), this
Option shall terminate on the earlier of (i) the close of business on the
twelve-month anniversary date of the such termination of employment, and (ii)
the expiration date of this Option stated in Paragraph 2(a) above.  In such
period following the termination of Optionee's employment, this Option shall be
exercisable only to the extent the Option was exercisable on the vesting date
immediately preceding such termination of employment, but had not previously
been exercised.  To the extent this Option was not exercisable upon such
termination of employment, or if Optionee does not exercise the Option within
the time specified in this Paragraph 2(c), all rights of Optionee under this
Option shall be forfeited.

          d.   Death.  In the event of Optionee's death, this Option shall
terminate on the earlier of (i) the close of business on the twelve-month
anniversary date of the date of Optionee's death, and (ii) the expiration date
of this Option stated in Paragraph 2(a) above.  In such period following
Optionee's death, this Option shall be exercisable by the person or persons to
whom Optionee's rights under this Option shall have passed by Optionee's will or
by the laws of descent and distribution only to the extent the Option was
exercisable on the vesting date immediately preceding the date of Optionee's
death, but had not previously been exercised.  To the extent this Option was not
exercisable upon the date of Optionee's death, or if such person or persons do
not exercise this Option within the time specified in this Paragraph 2(d), all
rights under this Option shall be forfeited.

     3.   Manner of Exercise.

          a.   General.  The Option may be exercised only by Optionee (or other
proper party in the event of death or incapacity), subject to the conditions of
the Plan and subject to such other administrative rules as the Administrator may
deem advisable, by delivering within the Option Period written notice of
exercise to the Company at its principal office.  The notice shall state the
number of shares as to which the Option is being exercised and shall be
accompanied by payment in full of the Option price for all shares designated in
the notice.  The exercise of the Option shall be deemed effective upon receipt
of such notice by the Company and upon payment that complies with the terms of
the Plan and this Agreement.  The Option may be exercised with respect to any
number or all of the shares as to which it can then be exercised and, if
partially exercised, may be so exercised as to the unexercised shares any number
of times during the Option period as provided herein.

          b.   Form of Payment.  Subject to approval by the Administrator,
payment of the option price by Optionee shall be in the form of cash, personal
check, certified check or previously acquired shares of Stock of the Company, or
any combination thereof.  Any Stock so tendered as part of such payment shall be
valued at its Fair Market Value as provided in the Plan.  For purposes of this
Agreement, "previously-owned shares" means shares of Stock which the Optionee
has owned for at least six (6) months prior to the exercise of the stock option,
or for such other period of time as may be required by generally accepted
accounting principles.

          c.   Stock Transfer Records.  As soon as practicable after the
effective exercise of all or any part of the Option, Optionee shall be recorded
on the stock transfer books of the Company as the owner of the shares purchased,
and the Company shall deliver to Optionee one or more duly issued stock
certificates evidencing such ownership.  All requisite original issue or
transfer documentary stamp taxes shall be paid by the Company.
<PAGE>

     4.   Miscellaneous.

          a.   Employment; Rights as Shareholder.  This Agreement shall not
confer on Optionee any right with respect to continuance of employment by the
Company or any of its Affiliates, nor will it interfere in any way with the
right of the Company to terminate such employment.  Optionee shall have no
rights as a shareholder with respect to shares subject to this Option until such
shares have been issued to Optionee upon exercise of this Option.  No adjustment
shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property), distributions or other rights for which the
record date is prior to the date such shares are issued, except as provided in
Section 12 of the Plan.

          b.   Securities Law Compliance.  The exercise of all or any parts of
this Option shall only be effective at such time as counsel to the Company shall
have determined that the issuance and delivery of Stock pursuant to such
exercise will not violate any state or federal securities or other laws.
Optionee may be required by the Company, as a condition of the effectiveness of
any exercise of this Option, to agree in writing that all Stock to be acquired
pursuant to such exercise shall be held, until such time that such Stock is
registered and freely tradable under applicable state and federal securities
laws, for Optionee's own account without a view to any further distribution
thereof, that the certificates for such shares shall bear an appropriate legend
to that effect and that such shares will be not transferred or disposed of
except in compliance with applicable state and federal securities laws.

          c.   Mergers, Recapitalizations, Stock Splits, Etc.  Pursuant and
subject to Section 12 of the Plan, certain changes in the number or character of
the Stock (through sale, merger, consolidation, exchange, reorganization,
divestiture (including a spin-off), liquidation, recapitalization, stock split,
stock dividend or otherwise) shall result in an adjustment, reduction or
enlargement, as appropriate, in Optionee's rights with respect to any
unexercised portion of the Option (i.e., Optionee shall have such "anti-
dilution" rights under the Option with respect to such events, but shall not
have "preemptive" rights).

          d.   Shares Reserved.  The Company shall at all times during the
option period reserve and keep available such number of shares as will be
sufficient to satisfy the requirements of this Agreement.

          e.   Withholding Taxes on Disqualifying Disposition.  In the event of
a disqualifying disposition of the shares acquired through the exercise of this
Option, Optionee hereby agrees to inform the Company of such disposition.  Upon
notice of a disqualifying disposition, the Company may take such action as it
deems appropriate to insure that, if necessary to comply with all applicable
federal or state income tax laws or regulations, all applicable federal and
state payroll, income or other taxes are withheld from any amounts payable by
the Company to Optionee.  If the Company is unable to withhold such federal and
state taxes, for whatever reason, Optionee hereby agrees to pay to the Company
an amount equal to the amount the Company would otherwise be required to
withhold under federal or state law.  Optionee may, subject to the approval and
discretion of the Administrator or such administrative rules it may deem
advisable, elect to have all or a portion of such tax withholding obligations
satisfied by delivering shares of Stock having a Fair Market Value equal to such
obligations.

          f.   Nontransferability.  During the lifetime of Optionee, the accrued
Option shall be exercisable only by Optionee or by the Optionee's guardian or
other legal representative, and shall not be assignable or transferable by
Optionee, in whole or in part, other than by will or by the laws of descent and
distribution.

          g.   2001 Stock Option Plan.  The Option evidenced by this Agreement
is granted pursuant to the Plan, a copy of which Plan has been made available to
Optionee and is hereby incorporated into this Agreement.  This Agreement is
subject to and in all respects limited and conditioned as provided in the Plan.
The Plan governs this Option and, in the  event of any questions as to the
construction of this Agreement or in the event of a conflict between the Plan
and this Agreement, the Plan shall govern, except as the Plan otherwise
provides.

          h.   Lockup Period Limitation.  Optionee agrees that in the event the
Company advises Optionee that it plans an underwritten public offering of its
Common Stock in compliance with the Securities Act of 1933, as amended, and that
the underwriter(s) seek to impose restrictions under which certain shareholders
may not
<PAGE>

sell or contract to sell or grant any option to buy or otherwise dispose of part
or all of their stock purchase rights of the underlying Common Stock, Optionee
hereby agrees that for a period not to exceed 180 days from the prospectus,
Optionee will not sell or contract to sell or grant an option to buy or
otherwise dispose of this option or any of the underlying shares of Stock
without the prior written consent of the underwriter(s) or its
representative(s).

          i.   Blue Sky Limitation.  Notwithstanding anything in this Agreement
to the contrary, in the event the Company makes any public offering of its
securities and determines in its sole discretion that it is necessary to reduce
the number of issued but unexercised stock purchase rights so as to comply with
any state securities or Blue Sky law limitations with respect thereto, the
Administrator shall have the right (i) to accelerate the exercisability of this
Option and the date on which this Option must be exercised, provided that the
Company gives Optionee 15 days' prior written notice of such acceleration, and
(ii) to cancel any portion of this Option or any other option granted to
Optionee pursuant to the Plan which is not exercised prior to or
contemporaneously with such public offering.  Notice shall be deemed given when
delivered personally or when deposited in the United States mail, first class
postage prepaid and addressed to Optionee at the address of Optionee on file
with the Company.

          j.   Accounting Compliance.  Optionee agrees that, if a merger,
reorganization, liquidation or other "transaction" as defined in Section 12 of
the Plan is treated as a "pooling of interests" under generally accepted
accounting principles and Optionee is an "affiliate" of the Company or any
Affiliate (as defined in applicable legal and accounting principles) at the time
of such transaction, Optionee will comply with all requirements of Rule 145 of
the Securities Act of 1933, as amended, and the requirements of such other legal
or accounting principles, and will execute any documents necessary to ensure
such compliance.

          k.   Stock Legend.  The Administrator may require that the
certificates for any shares of Stock purchased by Optionee (or, in the case of
death, Optionee's successors) shall bear an appropriate legend to reflect the
restrictions of Paragraph 4(b) and Paragraphs 4(h) through 4(k) of this
Agreement.

          l.   Scope of Agreement.  This Agreement shall bind and inure to the
benefit of the Company and its successors and assigns and Optionee and any
successor or successors of Optionee permitted by Paragraph 2 or Paragraph 4(f)
above.

          m.   Arbitration.  Any dispute arising out of or relating to this
Agreement or the alleged breach of it, or the making of this Agreement,
including claims of fraud in the inducement, shall be discussed between the
disputing parties in a good faith effort to arrive at a mutual settlement of any
such controversy.  If, notwithstanding, such dispute cannot be resolved, such
dispute shall be settled by binding arbitration.  Judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.  The arbitrator shall be a retired state or federal judge or an
attorney who has practiced securities or business litigation for at least 10
years.  If the parties cannot agree on an arbitrator within 20 days, any party
may request that the chief judge of the District Court for Hennepin County,
Minnesota, select an arbitrator.  Arbitration will be conducted pursuant to the
provisions of this Agreement, and the commercial arbitration rules of the
American Arbitration Association, unless such rules are inconsistent with the
provisions of this Agreement.  Limited civil discovery shall be permitted for
the production of documents and taking of depositions.  Unresolved discovery
disputes may be brought to the attention of the arbitrator who may dispose of
such dispute.  The arbitrator shall have the authority to award any remedy or
relief that a court of this state could order or grant; provided, however, that
punitive or exemplary damages shall not be awarded.  The arbitrator may award to
the prevailing party, if any, as determined by the arbitrator, all of its costs
and fees, including the arbitrator's fees, administrative fees, travel expenses,
out-of-pocket expenses and reasonable  attorneys' fees.  Unless otherwise agreed
by the parties, the place of any arbitration proceedings shall be Hennepin
County, Minneapolis.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the day and year first above written.

                              GROW BIZ INTERNATIONAL, INC.
<PAGE>

                              By:__________________________
                                 Its:______________________

                              _____________________________
                              Optionee
<PAGE>

                      NONQUALIFIED STOCK OPTION AGREEMENT

                         GROW BIZ INTERNATIONAL, INC.
                            2001 STOCK OPTION PLAN

     THIS AGREEMENT, made effective as of this ______ day of ___________, _____,
by and between Grow Biz International, Inc., a Minnesota corporation (the
"Company"), and _________________ ("Optionee").

                             W I T N E S S E T H:

     WHEREAS, Optionee on the date hereof is a key employee, officer or director
of the Company or its Affiliate; and

     WHEREAS, the Company wishes to grant a nonqualified stock option to
Optionee to purchase shares of the Company's Common Stock pursuant to the
Company's 2001 Stock Option Plan (the "Plan"); and

     WHEREAS, the Administrator has authorized the grant of a nonqualified stock
option to Optionee and has determined that, as of the effective date of this
Agreement, the fair market value of the Company's Common Stock is $________ per
share;

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

     1.   Grant of Option.  The Company hereby grants to Optionee on the date
set forth above (the "Date of Grant"), the right and option (the "Option") to
purchase all or portions of an aggregate of
______________________________________________ (________________) shares of
Common Stock (the "Stock") at a per share price of $____________ on the terms
and conditions set forth herein, and subject to adjustment pursuant to Section
12 of the Plan.  This Option is a nonqualified stock option and will not be
treated as an incentive stock option, as defined under Section 422, or any
successor provision, of the Internal Revenue Code of 1986, as amended (the
"Code"), and the regulations thereunder.

     2.   Duration and Exercisability.

          a.   General.  The term during which this Option may be exercised
shall terminate on ____________________________, ______, except as otherwise
provided in Paragraphs 2(b) through 2(d) below.  This Option shall become
exercisable according to the following schedule:

                                         Cumulative Percentage
               Vesting Date                 of Shares
               ------------                 ---------

Once the Option becomes fully exercisable, Optionee may continue to exercise
this Option under the terms and conditions of this Agreement until the
termination of the Option as provided herein.  If Optionee does not purchase
upon an exercise of this Option the full number of shares which Optionee is then
entitled to purchase, Optionee may purchase upon any subsequent exercise prior
to this Option's termination such previously unpurchased shares in addition to
those Optionee is otherwise entitled to purchase.
<PAGE>

          b.   Termination of Relationship (Other Than Disability or Death).  If
Optionee's relationship with the Company or any Subsidiary is terminated for any
reason other than disability or death, this Option shall completely terminate on
the earlier of (i) the close of business on the three-month anniversary date of
the termination of such relationship, and (ii) the expiration date of this
Option stated in Paragraph 2(a) above.  In such period following such
termination, this Option shall be exercisable only to the extent the Option was
exercisable on the vesting date immediately preceding the date on which
Optionee's relationship with the Company or Subsidiary terminated, but had not
previously been exercised.  To the extent this Option was not exercisable upon
the termination of such relationship, or if Optionee does not exercise the
Option within the time specified in this Paragraph 2(b), all rights of Optionee
under this Option shall be forfeited.

          c.   Disability.  If Optionee ceases to be [an employee] [a
consultant] [a nonemployee director] of the Company or any Subsidiary because of
disability (as defined in Code Section 22(e), or any successor provision), this
Option shall completely terminate on the earlier of (i) the close of business on
the twelve-month anniversary date of the termination of all such relationships,
and (ii) the expiration date of this Option stated in Paragraph 2(a) above.  In
such period following such termination, this Option shall be exercisable only to
the extent the Option was exercisable on the vesting date immediately preceding
the date on which all of Optionee's relationships with the Company or Subsidiary
have terminated, but had not previously been exercised.  To the extent this
Option was not exercisable upon the termination of such relationship, or if
Optionee does not exercise the Option within the time specified in this
Paragraph 2(c), all rights of Optionee under this Option shall be forfeited.

          d.   Death.  In the event of Optionee's death, this Option shall
terminate on the earlier of (i) the close of business on the twelve-month
anniversary date of the date of Optionee's death, and (ii) the expiration date
of this Option stated in Paragraph 2(a) above.  In such period following
Optionee's death, this Option may be exercised by the person or persons to whom
Optionee's rights under this Option shall have passed by Optionee's will or by
the laws of descent and distribution only to the extent the Option was
exercisable on the vesting date immediately preceding the date of Optionee's
death, but had not previously been exercised.  To the extent this Option was not
exercisable upon the date of Optionee's death, or if such person or persons fail
to exercise this Option within the time specified in this Paragraph 2(d), all
rights under this Option shall be forfeited.

     3.   Manner of Exercise.

          a.   General.  The Option may be exercised only by Optionee (or other
proper party in the event of death or incapacity), subject to the conditions of
the Plan and subject to such other administrative rules as the Administrator may
deem advisable, by delivering within the option period written notice of
exercise to the Company at its principal office.  The notice shall state the
number of shares as to which the Option is being exercised and shall be
accompanied by payment in full of the option price for all shares designated in
the notice.  The exercise of the Option shall be deemed effective upon receipt
of such notice by the Company and upon payment that complies with the terms of
the Plan and this Agreement.  The Option may be exercised with respect to any
number or all of the shares as to which it can then be exercised and, if
partially exercised, may be exercised as to the unexercised shares any number of
times during the option period as provided herein.

          b.   Form of Payment.  Subject to the approval of the Administrator,
payment of the option price by Optionee shall be in the form of cash, personal
check, certified check or previously acquired shares of Stock of the Company, or
any combination thereof.  Any Stock so tendered as part of such payment shall be
valued at its Fair Market Value as provided in the Plan.  For purposes of this
Agreement, "previously-owned shares" means shares of Stock which the Optionee
has owned for at least six (6) months prior to the exercise of the stock option,
or for such other period of time as may be required by generally accepted
accounting principles.

          c.   Stock Transfer Records.  As soon as practicable after the
effective exercise of all or any part of the Option, Optionee shall be recorded
on the stock transfer books of the Company as the owner of the shares purchased,
and the Company shall deliver to Optionee one or more duly issued stock
certificates evidencing such ownership.  All requisite original issue or
transfer documentary stamp taxes shall be paid by the Company.
<PAGE>

     4.   Miscellaneous.

          a.   Rights as Shareholder.  This Agreement shall not confer on
Optionee any right with respect to the continuance of any relationship with the
Company or any of its Affiliates,  nor will it interfere in any way with the
right of the Company to terminate any such relationship.  Optionee shall have no
rights as a shareholder with respect to shares subject to this Option until such
shares have been issued to Optionee upon exercise of this Option.  No adjustment
shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property), distributions or other rights for which the
record date is prior to the date such shares are issued, except as provided in
Section 12 of the Plan.

          b.   Securities Law Compliance.  The exercise of all or any parts of
this Option shall only be effective at such time as counsel to the Company shall
have determined that the issuance and delivery of Stock pursuant to such
exercise will not violate any state or federal securities or other laws.
Optionee may be required by the Company, as a condition of the effectiveness of
any exercise of this Option, to agree in writing that all Stock to be acquired
pursuant to such exercise shall be held, until such time that such Stock is
registered and freely tradable under applicable state and federal securities
laws, for Optionee's own account without a view to any further distribution
thereof and that such shares will be not transferred or disposed of except in
compliance with applicable state and federal securities laws.

          c.   Mergers, Recapitalizations, Stock Splits, Etc.  Pursuant and
subject to Section 12 of the Plan, certain changes in the number or character of
the Stock of the Company (through sale, merger, consolidation, exchange,
reorganization, divestiture (including a spin-off), liquidation,
recapitalization, stock split, stock dividend or otherwise) shall result in an
adjustment, reduction or enlargement, as appropriate, in Optionee's rights with
respect to any unexercised portion of the Option (i.e., Optionee shall have such
"anti-dilution" rights under the Option with respect to such events, but shall
not have "preemptive" rights).

          d.   Shares Reserved.  The Company shall at all times during the
option period reserve and keep available such number of shares as will be
sufficient to satisfy the requirements of this Agreement.

          e.   Withholding Taxes.  In order to permit the Company to comply with
all applicable federal or state income tax laws or regulations, the Company may
take such action as it deems appropriate to insure that, if necessary, all
applicable federal or state payroll, income or other taxes are withheld from any
amounts payable by the Company to Optionee.  If the Company is unable to
withhold such federal and state taxes, for whatever reason, Optionee hereby
agrees to pay to the Company an amount equal to the amount the Company would
otherwise be required to withhold under federal or state law.

          Subject to such rules as the Administrator may adopt, the
Administrator may, in its sole discretion, permit a Optionee to satisfy such
withholding tax obligations, in whole or in part (i) by delivering shares of
Stock of having an equivalent fair market value, or (ii) by electing to have the
Company withhold shares of Stock otherwise issuable to Optionee having a Fair
Market Value equal to the minimum required tax withholding, based on the minimum
statutory withholding rates for federal and state tax purposes, including
payroll taxes, that are applicable to the supplemental income resulting from the
option.  In no event may the Company or Affiliate withhold shares having a Fair
Market Value in excess of such statutory minimum required tax withholding.
Optionee's election to have shares withheld for purposes of such withholding tax
obligations shall be made on or before the date that triggers such obligations
or, if later, the date that the amount of tax to be withheld is determined under
applicable tax law.  Optionee's election shall be approved by the Administrator
and otherwise comply with such rules as the Administrator may adopt to assure
compliance with Rule 16b-3 or any successor provision, as then in effect, of the
General Rules and Regulations under the Securities and Exchange Act of 1934, if
applicable.

          f.   Nontransferability.  During the lifetime of Optionee, the accrued
Option shall be exercisable only by Optionee or by the Optionee's guardian or
other legal representative, and shall not be assignable or transferable by
Optionee, in whole or in part, other than by will or by the laws of descent and
distribution.
<PAGE>

          g.   2001 Stock Option Plan.  The Option evidenced by this Agreement
is granted pursuant to the Plan, a copy of which Plan has been made available to
Optionee and is hereby incorporated into this Agreement.  This Agreement is
subject to and in all respects limited and conditioned as provided in the Plan.
All defined terms of the Plan shall have the same meaning when used in this
Agreement.  The Plan governs this Option and, in the event of any questions as
to the construction of this Agreement or in the event of a conflict between the
Plan and this Agreement, the Plan shall govern, except as the Plan otherwise
provides.

          h.   Lockup Period Limitation.  Optionee agrees that in the event the
Company advises Optionee that it plans an underwritten public offering of its
Common Stock in compliance with the Securities Act of 1933, as amended, and that
the underwriter(s) seek to impose restrictions under which certain shareholders
may not sell or contract to sell or grant any option to buy or otherwise dispose
of part or all of their stock purchase rights of the underlying Common Stock,
Optionee hereby agrees that for a period not to exceed 180 days from the
prospectus, Optionee will not sell or contract to sell or grant an option to buy
or otherwise dispose of this option or any of the underlying shares of Stock
without the prior written consent of the underwriter(s) or its
representative(s).

          i.   Blue Sky Limitation.  Notwithstanding anything in this Agreement
to the contrary, in the event the Company makes any public offering of its
securities and determines in its sole discretion that it is necessary to reduce
the number of issued but unexercised stock purchase rights so as to comply with
any state securities or Blue Sky law limitations with respect thereto, the
Administrator shall have the right (i) to accelerate the exercisability of this
Option and the date on which this Option must be exercised, provided that the
Company gives Optionee 15 days' prior written notice of such acceleration, and
(ii) to cancel any portion of this Option or any other option granted to
Optionee pursuant to the Plan which is not exercised prior to or
contemporaneously with such public offering.  Notice shall be deemed given when
delivered personally or when deposited in the United States mail, first class
postage prepaid and addressed to Optionee at the address of Optionee on file
with the Company.

          j.   Accounting Compliance.  Optionee agrees that, if a merger,
reorganization, liquidation or other "transaction" as defined in Section 12 of
the Plan is treated as a "pooling of interests" under generally accepted
accounting principles and Optionee is an "affiliate" of the Company or any
Subsidiary (as defined in applicable legal and accounting principles) at the
time of such transaction, Optionee will comply with all requirements of Rule 145
of the Securities Act of 1933, as amended, and the requirements of such other
legal or accounting principles, and will execute any documents necessary to
ensure such compliance.

          k.   Stock Legend.  The Administrator may require that the
certificates for any shares of Common Stock purchased by Optionee (or, in the
case of death, Optionee's successors) shall bear an appropriate legend to
reflect the restrictions of Paragraph 4(b) and Paragraphs 4(h) through 4(k) of
this Agreement.

          l.   Scope of Agreement.  This Agreement shall bind and inure to the
benefit of the Company and its successors and assigns and Optionee and any
successor or successors of Optionee permitted by Paragraph 2 or Paragraph 4(f)
above.

          m.   Arbitration.  Any dispute arising out of or relating to this
Agreement or the alleged breach of it, or the making of this Agreement,
including claims of fraud in the inducement, shall be discussed between the
disputing parties in a good faith effort to arrive at a mutual settlement of any
such controversy.  If, notwithstanding, such dispute cannot be resolved, such
dispute shall be settled by binding arbitration.  Judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.  The arbitrator shall be a retired state or federal judge or an
attorney who has practiced securities or business litigation for at least 10
years.  If the parties cannot agree on an arbitrator within 20 days, any party
may request that the chief judge of the District Court for Hennepin County,
Minnesota, select an arbitrator.  Arbitration will be conducted pursuant to the
provisions of this Agreement, and the commercial arbitration rules of the
American Arbitration Association, unless such rules are inconsistent with the
provisions of this Agreement.  Limited civil discovery shall be permitted for
the production of documents and taking of depositions.  Unresolved discovery
disputes may be brought to the attention of the arbitrator who may dispose of
such dispute.  The arbitrator shall have the authority to award any remedy or
relief
<PAGE>

that a court of this state could order or grant; provided, however, that
punitive or exemplary damages shall not be awarded. The arbitrator may award to
the prevailing party, if any, as determined by the arbitrator, all of its costs
and fees, including the arbitrator's fees, administrative fees, travel expenses,
out-of-pocket expenses and reasonable attorneys' fees. Unless otherwise agreed
by the parties, the place of any arbitration proceedings shall be Hennepin
County, Minnesota..

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the day and year first above written.

                              GROW BIZ INTERNATIONAL, INC.

                              By:________________________________________

                                    Its:_________________________________

                              ___________________________________________
                              Optionee

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