Document:

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                                                                   EXHIBIT 10.16

                        EXECUTIVE EMPLOYMENT AGREEMENT
                        ------------------------------

     This Employment Agreement (the "Agreement") is entered into by and between
Cumetrix Data Systems Corp. (the "Company") and Max Toghraie ("Executive"), as
of the 1st day of January, 2000.

I.    EMPLOYMENT.
      ----------

      The Company hereby employs Executive and Executive hereby accepts such
employment, upon the terms and conditions hereinafter set forth, from January 1,
2000, to and including January 1, 2004. This Agreement is subject to renewal
only as set forth in Section VI below.

II.   DUTIES.
      ------

      A.  Executive shall, during course of his employment, serve as Chief
Executive Officer and a director of the Board of Directors of the Company, and
shall have such other duties and responsibilities as the Board of Directors of
the Company shall determine from time to time.

      B.  Executive agrees to devote substantially all of his time, energy and
ability to the business of the Company. Nothing herein shall prevent Executive,
upon approval of the Board of Directors of the Company, from serving as a
director or trustee of other corporations or businesses which are not in
competition with the business of the Company as set forth in Section IV hereof
or in competition with any present or future affiliate of the Company. Nothing
herein shall prevent Executive from investing in real estate for his own account
or from becoming a partner or a stockholder in any corporation, partnership or
other venture not in competition with the business of the Company as set forth
in Section IV hereof or in competition with any present or future affiliate of
the Company.

     C.  During the term of this Agreement, Executive shall be the most senior
executive officer in the Company and shall report to the Board of Directors of
the Company.

III. COMPENSATION.
     ------------

     A.  The Company will pay to Executive a base salary at the annual rate of
$192,000.00.  Such salary shall be earned monthly and shall be payable in
periodic installments no less frequently than monthly in accordance with the
Company's customary practices. Amounts payable shall be reduced by standard
withholding and other authorized deductions. The Company may in its discretion
increase Executive's salary but it may not reduce it during the term of this
Agreement.

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        B.  Stock Options.  The Company shall grant to Executive, concurrent
            -------------
with the execution of this Agreement, options to purchase one hundred and fifty
thousand (150,000) shares of the Company's Common Stock (the "Options"),
exercisable at a per share exercise price of $1.125 per share, subject to the
vesting requirements set forth in the Option Certificate to be signed by
Executive, a copy of which is attached hereto and made a part hereof.

        C.  Welfare Benefit Plans.  Executive and/or his family, as the case may
            ---------------------
be, shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs provided by the Company
(including, without limitation, medical, prescription, dental, disability,
salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to
other peer executives of the Company. Executive will be compensated for up to
ten sick days per year.

        D.  Expenses.  Executive shall have access to an expense account in the
            --------
sum of $24,000.00 per year. Executive shall be entitled to withdraw from the
expense account to pay for all reasonable employment expenses incurred by him in
accordance with the policies, practices and procedures as in effect generally
with respect to other peer executives of the Company.

        E.  Fringe Benefits.  Executive shall be entitled to fringe benefits in
            ---------------
accordance with the plans, practices, programs and policies as in effect
generally with respect to other peer executives of the Company.

        F.  Vacation.  Executive shall be entitled to two weeks paid vacation
            --------
per year, in accordance with the plans, policies, programs and practices as in
effect generally with respect to other peer executives of the Company.

        G.  Car Allowance.  The Company will provide Executive a car for his
            -------------
exclusive use. The Company's contribution to this program shall not exceed
$1,000 per month.  This amount excludes regular fuel, Insurance, repair and
maintenance charges, which will be additionally paid by the company.  The
Executive shall have exclusive use of the company owned car for the greater of
five years (5) or duration of his employment contract with the company.

        H.  The Company reserves the right to modify, suspend or discontinue any
and all of the above plans, practices, policies and programs at any time without
recourse by Executive so long as such action is taken generally with respect to
other similarly situated peer executives and does not single out Executive.

IV.     TERMINATION.
        -----------

        A.  Death or Disability.  Executive's employment shall terminate
            -------------------
automatically upon Executive's death. If the Company determines in good faith
that the Disability of Executive has occurred (pursuant to the definition of
Disability set forth below), it may give to Executive written notice in
accordance with Section XVIII of its intention to terminate, effective on the
30th day after receipt of such notice by Executive, provided that, within the 30
days after such receipt, Executive shall not have returned to full-time
performance of his duties.  For purposes of this Agreement, "disability" shall
mean a physical or mental impairment which substantially limits a

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to the Employee pursuant to section (II) of this agreement and the Company shall
continue to provide Executive benefits pursuant to Section III(C) of this
Agreement for the remainder of the term of the employment contract or until
comparable benefits are obtained by Executive from another employer.

          4.   Exclusive Remedy. Executive agrees that the payments
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contemplated by this Agreement shall constitute the exclusive and sole remedy
for any termination of his employment and Executive covenants not to assert or
pursue any other remedies, at law or in equity, with respect to any termination
of employment.

V.    ARBITRATION.
      -----------
     Any controversy or claim arising out of or relating to this Agreement, its
enforcement or interpretation, or because of an alleged breach, default or
misrepresentation in connection with any of its provisions, shall be submitted
to arbitration, to be held in Los Angeles County, California in accordance
with California Civil Procedures Code SS 1282-1284.2. In the event either party
institutes arbitration under this Agreement, the party prevailing in any such
litigation shall be entitled, in addition to all other relief, to reasonable
attorneys' fees relating to such arbitration. The non prevailing party shall be
responsible for all costs of the arbitration, including but not limited to, the
arbitration fees, court reporter fees,etc.

VI.   RENEWAL
      -------
     This Agreement shall be automatically renewed for consecutive periods of
one year each, after the expiration of the stated term, unless one party or the
other gives notice, in writing, at least (30) days prior to the expiration of
this Agreement (or any renewal) of their desire to terminate the Agreement or
modify its terms.

VII.  ANTI-SOLICITATION
      -----------------
     Executive promises and agrees that during the term of this Agreement or
renewal in accordance with Section VI above, he will not influence or attempt to
influence customers of the Company or any of its present or future subsidiaries
or affiliates, either directly or indirectly to divert their business to any
individual, partnership, firm, corporation or other entity then in competition
with the business of the Company, or any subsidiary or affiliate of the Company.

VIII. JOINING FORMER COMPANY EMPLOYEES.
      --------------------------------
     Executive promises and agrees that for one year following his termination
of employment other than pursuant to Section IV(C) above or Disability above or
expiration of this Agreement, he will not enter business or work with any person
who was employed with the Company, and who earned annually $25,0000 or more as a
Company employee during the last six months of his or her own employment, in any
business, partnership, firm, corporation or other entity then in competition
with the business of the Company or any subsidiary or affiliate of the Company.

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IX.  SOLICITING EMPLOYEES.
     --------------------
     Executive promises and agrees that he will not, for a period of one year
following termination of his accordance with Section VI above, directly
or indirectly solicit any of the Company employees who earned annually $25,000
or more as a Company employee during the last six months of his or her own
employment to work for any business, individual, partnership, firm, corporation,
or other entity then in competition with the business of the Company or any
subsidiary or affiliate of the Company.

X.   CONFIDENTIAL INFORMATION.
     ------------------------

      A. Executive, in the performance of Executive's duties on behalf of the
Company,shall have access to, receive and be entrusted with confidential
information, including but in no way limited to development,
marketing,organizational, financial, management, administrative,
production,distribution and sales information, data, specifications,and
processes presently owned or at any time in the future developed, by the Company
or its agents or consultants, or used presently or at any time in the future in
the course of its business that is not otherwise part of the public domain
(collectively, the "Confidential Material"). All such Confidential Material is
considered secret and will be available to Executive in confidence. Except in
the performance of duties on behalf of the Company, Executive shall disclose or
use any such Confidential Material, unless such Confidential Material ceases
(through no fault of Executive's) to be confidential because it has become part
of the public domain. All records, files, drawings, documents, equipment and
other tangible items, wherever located, relating in any way to the Confidential
Material or otherwise to the Company's business, which Executive prepares, uses
or encounters, shall be and remain the Company's sole and exclusive property and
shall be included in the Confidential Material. Upon termination of this
Agreement by any means, or whenever requested by the Company, Executive shall
promptly deliver to the Company any and all of the Confidential Material, not
previously delivered to the Company, that may be or at any previous time has
been in Executive's possession or under Executive's control.

      B. Executive hereby acknowledges that the sale or unauthorized use or
disclosure of any of the Company's Confidential Material by any means whatsoever
and any time before, during or after Executive's employment with the Company
shall constitute unfair Competition. Executive agrees that Executive shall not
engage in Unfair Competition either during the time employed by the Company or
any time thereafter.

XI.  SUCCESSORS.
     ----------

      A. This Agreement is personal to Executive and shall not, without the
prior written consent of the Company, be assignable by Executive.

      B. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns and any such successor or assignee shall
be deemed substituted for the Company under the terms of this Agreement for all
purposes. As used herein, "successor" and

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major life activity of Executive and which renders Executive unable to perform
the essential functions of his position, even with reasonable accommodation
which does not impose an undue hardship on the Company. The Company reserves the
right, in good faith, to make the determination of disability under this
Agreement based upon information supplied by Executive and/or his medical
personnel, as well as information from medical personnel (or others) selected by
the Company or its insurers. "Incapacity" as used herein shall be limited only
to such Disability which substantially prevents the Company from availing itself
on the services of Executive.

     B.  Cause.  The Company may at any time terminate Executive's employment
         -----
for "cause," which shall be based solely upon a good-faith determination by a
majority vote of the Company's Board of Directors that such termination of such
employment is necessary for the welfare of, and in the best interests of, the
Company by reason of (i) acts of dishonesty, theft, misappropriation of
corporate assets; (ii) willful and repeated failure to follow explicit
instructions of the Company's Board of Directors; (iii) willful malfeasance;
(iv) willful nonfeasance; and (v) breach of any material term of this Agreement.

     C.  Other than Cause or Death or Disability.  The Company may terminate
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Executive's employment other than for the reasons set forth in Sections IV (A)
and (B) above upon written notice.

     D.  Obligations of the Company Upon Termination.
         -------------------------------------------

         1.  Death or Disability.  If Executive's employment is terminated by
             -------------------
reason of Executive's Death or Disability, this Agreement shall terminate
without further obligations to Executive or his/her legal representatives under
this Agreement, other than for (a) payment of the sum of (i) employees annual
base salary through the date of termination to the extent not heretofore paid
and (ii) any compensation previously deferred by Executive (together with any
accrued interest or earnings thereon) and any accrued vacation pay, in each case
to the extent not theretofore paid (the sum of the amounts described in clauses
(i) and (ii) shall be hereinafter referred to as the "Accrued Obligations"),
which shall be paid to Executive or his estate or beneficiary, as applicable, in
a lump sum in cash within 30 days of the date of termination; and (b) payment to
Executive or his estate or beneficiary, as applicable, any amounts due pursuant
to the terms of any applicable welfare benefit plans.

         2.  Cause.  If Executive's employment is terminated by the Company for
             -----
Cause, this Agreement shall terminate without further obligations to Executive
other than for the timely payment of Accrued Obligations. If it is subsequently
determined that the Company did not have Cause for termination under this
Section IV (D)(2), then the Company's decision to terminate shall be deemed to
have been made under Section IV (D)(3) and the amounts payable thereunder shall
be the only amounts Executive may receive for his termination.

         3.  Other than Cause or Death or Disability.  If the Company terminates
             ---------------------------------------
Executive's employment for other than Cause or Death or Disability, it shall pay
the employee a lump sum payment equivalent to the compensation for the remainder
of the employment term due
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"assignee" shall include any person, firm, corporation or other business entity
which at any time, whether by purchase, merger or otherwise, directly or
indirectly acquires the stock of the Company or to which the Company assigns
this Agreement by operation of law or otherwise.

XII.    WAIVER.
        ------

        No waiver of any breach of any term or provision of this Agreement shall
        be construed to be, nor shall be, a waiver of any other breach of this
        Agreement. No waiver shall be binding unless in writing and signed by
        the party waiving the breach.

XIII.   MODIFICATION.
        ------------

        This Agreement may not be amended or modified other than by a written
agreement executed by Executive and an officer of the Company following
authorization by the Board of Directors of the Company.

XIV.    SAVING CLAUSE.
        -------------

        If any provision of this Agreement or the application thereof is hold
invalid, the invalidity shall not effect other provisions or applications of the
Agreement which can be given effect without invalid provisions or application
and to this end the provisions of this Agreement are declared to be severable.

XV.     COMPLETE AGREEMENT.
        ------------------

        This Agreement constitutes and contains the entire agreement and final
understanding concerning Executive's employment with the Company and the other
subject matters addressed herein between the parties. It is extended by the
parties as a complete and exclusive statement of the terms of their agreement.
It supersedes and replaces all prior negotiations and all agreements proposed or
otherwise, whether written or oral, concerning the subject matter hereof. Any
representation, promise or agreement, not specifically included in this
Agreement shall not be binding upon or enforceable against either party. This is
a fully integrated agreement.

XVI.    GOVERNING LAW.
        -------------

        This Agreement shall be deemed to have been executed and delivered
within the State of California, and the rights and obligations of the parties
hereunder shall be construed and enforced in accordance with and governed by, by
the laws of the State of California without regard to principles of conflict of
laws.

XVII.   CONSTRUCTION.
        ------------

        Each party has cooperated in the drafting and preparation of this
Agreement. Hence, in any construction to be made of this Agreement, the same
shall not be construed against any party on the basis that the party was the
drafter. The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect.

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XVIII.   NOTICES.
         -------

       All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if delivered or if
mailed by registered or certified mail, postage prepaid, addressed as follows:

       If to Executive:  Max Toghraie
                         2062 Sapra Street.
                         Thousand Oaks, California 91362

       If to Company:    Cumetrix Data Systems Corp.
                         957 Lawson Street.
                         City of Industry, CA 91745

Either party may change the address at which notice shall be given by written
notice given in the above manner.

XIX.     EXECUTION.
         ---------

       This Agreement is being executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Photographic copies of such signed counterparts may
be used in lieu of the original for any purpose.

XX.      LEGAL COUNSEL.
         -------------

       Executive and the Company recognize that this is a legally binding
contract and acknowledge and agree that they have had the opportunity to consult
with legal counsel of their choice.

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

Cumetrix Data Systems Corp.

By: /s/ NANCY HUNDT                         /s/ MAX TOGHRAIE
   -----------------------------            ----------------------------------
        Nancy Hundt                             Executive
                                                Max Toghraie

By: /s/ JEFF TOGHRAIE
   -----------------------------
        Jeff Toghraie<PAGE>

                                                                   EXHIBIT 10.17

                          CUMETRIX DATA SYSTEMS CORP.

                     AMENDED AND RESTATED 2000 STOCK PLAN

1.  Purpose of the Plan.

     The purpose of this Amended and Restated 2000 Stock Plan (the "Plan") is to
provide incentives and rewards to selected eligible directors, officers,
employees and consultants of Cumetrix Data Systems Corp. (the "Company") or its
subsidiaries in order to assist the Company and its subsidiaries in attracting,
retaining and motivating those persons by providing for or increasing the
proprietary interests of those persons in the Company, and by associating their
interests in the Company with those of the Company's shareholders.

2.  Administration of the Plan.

     The Plan shall be administered by the Board of Directors of the Company
(the "Board"), or a committee of the Board (the "Committee") whose members shall
serve at the pleasure of the Board.  If administration is delegated to the
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board (and references in this
Plan to the Board shall thereafter be to the Committee), subject, however, to
such resolutions, not inconsistent with the provisions of the Plan as may be
adopted from time to time by the Board.

     The Board shall have all the powers vested in it by the terms of the Plan,
including exclusive authority (i) to select from among eligible directors,
officers, employees and consultants, those persons to be granted "Awards" (as
defined below) under the Plan; (ii) to determine the type, size and terms of
individual Awards (which need not be identical) to be made to each person
selected; (iii) to determine the time when Awards will be granted and to
establish objectives and conditions (including, without limitation, vesting and
performance conditions), if any, for earning Awards; (iv) to amend the terms or
conditions of any outstanding Award, subject to applicable legal restrictions
and to the consent of the other party to such Award; (v) to determine the
duration and purpose of leaves of absences which may be granted to holders of
Awards without constituting termination of their employment for purposes of
their Awards; (vi) to authorize any person to execute, on behalf of the Company,
any instrument required to carry out the purposes of the Plan; and (vii) to make
any and all other determinations which it determines to be necessary or
advisable in the administration of the Plan. The Board shall have full power and
authority to administer and interpret the Plan and to adopt, amend and revoke
such rules, regulations, agreements, guidelines and instruments for the
administration of the Plan and for the conduct of its business as the Board
deems
<PAGE>

necessary or advisable. The Board's interpretation of the Plan, and all actions
taken and determinations made by the Board pursuant to the powers vested in it
hereunder, shall be conclusive and binding on all parties concerned, including
the Company, its shareholders, any participants in the Plan and any other
employee of the Company or any of its subsidiaries.

3.  Persons Eligible Under the Plan.

     Any person who is a director, officer, employee or consultant of the
Company, or any of its subsidiaries (a "Participant"), shall be eligible to be
considered for the grant of Awards under the Plan.

4.  Awards.

     (a) Common Stock and Derivative Security Awards.  Awards authorized under
the Plan shall consist of any type of arrangement with a Participant that is not
inconsistent with the provisions of the Plan and that, by its terms, involves or
might involve or be made with reference to the issuance of (i) shares of the
Common Stock, no par value, of the Company (the "Common Stock") or (ii) a
"derivative security" (as that term is defined in Rule 16a-1(c) of the Rules and
Regulations of the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended, as the same may be amended from time to time)
with an exercise or conversion price related to the Common Stock or with a value
derived from the value of the Common Stock.

     (b)  Types of Awards.  Awards are not restricted to any specified form or
structure and may include, but need not be limited to, sales, bonuses and other
transfers of stock, restricted stock, stock options, reload stock options, stock
purchase warrants, other rights to acquire stock or securities convertible into
or redeemable for stock, stock appreciation rights, phantom stock, dividend
equivalents, performance units or performance shares, or any other type of Award
which the Board shall determine is consistent with the objectives and
limitations of the Plan.  An Award may consist of one such security or benefit,
or two or more of them in tandem or in the alternative.

     (c)  Consideration.  Common Stock may be issued pursuant to an Award for
any lawful consideration as determined by the Board, including, without
limitation, a cash payment, services rendered, or the cancellation of
indebtedness.

     (d) Guidelines.  The Board may adopt, amend or revoke from time to time
written policies implementing the Plan.  Such policies may include, but need not
be limited to, the type, size and term of Awards to be made to participants and
the conditions for payment of such Awards.

     (e)  Terms and Conditions.  Subject to the provisions of the Plan, the
Board, in its sole and absolute discretion, shall determine all of the terms and
conditions of each Award granted pursuant to the Plan, which terms and
conditions may include, among other things:
<PAGE>

          (i) any provision necessary for such Award to qualify as an incentive
     stock option under Section 422 of the Internal Revenue Code of 1986, as
     amended (the "Code") (an "Incentive Stock Option");

          (ii) a provision permitting the recipient of such Award to pay the
     purchase price of the Common Stock or other property issuable pursuant to
     such Award, or to pay such recipient's tax withholding obligation with
     respect to such issuance, in whole or in part, by delivering previously
     owned shares of capital stock of the Company (including "pyramiding") or
     other property, or by reducing the number of shares of Common Stock or the
     amount of other property otherwise issuable pursuant to such Award; or

          (iii) a provision conditioning or accelerating the receipt of benefits
     pursuant to the Award, or terminating the Award, either automatically or in
     the discretion of the Board, upon the occurrence of specified events,
     including, without limitation, a change of control of the Company, an
     acquisition of a specified percentage of the voting power of the Company,
     the dissolution or liquidation of the Company, a sale of substantially all
     of the property and assets of the Company or an event of the type described
     in Section 7 of the Plan.

     (f)  Suspension or Termination of Awards.  If the Company believes that a
Participant has committed an act of misconduct as described below, the Company
may suspend the Participant's rights under any then outstanding Award pending a
determination by the Board.  If the Board determines that a Participant has
committed an act of embezzlement, fraud, nonpayment of any obligation owed to
the Company or any subsidiary, breach of fiduciary duty or deliberate disregard
of the Company's rules resulting in loss, damage or injury to the Company, or if
a Participant makes an unauthorized disclosure of trade secret or confidential
information of the Company, engages in any conduct constituting unfair
competition, or induces any customer of the Company to breach a contract with
the Company, neither the Participant nor his or her estate shall be entitled to
exercise any rights whatsoever with respect to such Award.  In making such
determination, the Board shall act fairly and shall give the Participant a
reasonable opportunity to appear and present evidence on his or her behalf to
the Board.

     (g)  Maximum Grant of Awards to any Participant.  No Participant shall
receive Awards representing more than 40% of the aggregate number of shares of
Common Stock that may be issued pursuant to all Awards under the Plan as set
forth in Section 5 hereof.
<PAGE>

5.  Shares of Common Stock Subject to the Plan.

     The aggregate number of shares of Common Stock that may be issued or
issuable pursuant to all Awards under the Plan (including Awards in the form of
Incentive Stock Options and Non-Statutory Stock Options) shall not exceed an
aggregate of 1,000,000 shares of Common Stock, subject to adjustment as provided
in Section 7 of the Plan.  Shares of Common Stock subject to the Plan may
consist, in whole or in part, of authorized and unissued shares or treasury
shares.  Any shares of Common Stock subject to an Award which for any reason
expires or is terminated unexercised as to such shares shall again be available
for issuance under the Plan.  For purposes of this Section 5, the aggregate
number of shares of Common Stock that may be issued at any time pursuant to
Awards granted under the Plan shall be reduced by: (i) the number of shares of
Common Stock previously issued pursuant to Awards granted under the Plan, other
than shares of Common Stock subsequently reacquired by the Company pursuant to
the terms and conditions of such Awards and with respect to which the holder
thereof received no benefits of ownership, such as dividends; and (ii) the
number of shares of Common Stock which were otherwise issuable pursuant to
Awards granted under this Plan but which were withheld by the Company as payment
of the purchase price of the Common Stock issued pursuant to such Awards or as
payment of the recipient's tax withholding obligation with respect to such
issuance.

6.  Payment of Awards.

     The Board shall determine the extent to which Awards shall be payable in
cash, shares of Common Stock or any combination thereof.  The Board may, upon
request of a Participant, determine that all or a portion of a payment to that
Participant under the Plan, whether it is to be made in cash, shares of Common
Stock or a combination thereof, shall be deferred.  Deferrals shall be for such
periods and upon such terms as the Board may determine in its sole discretion.

7.  Dilution and Other Adjustment.

     In the event of any change in the outstanding shares of the Common Stock or
other securities then subject to the Plan by reason of any stock split, reverse
stock split, stock dividend, recapitalization, merger, consolidation,
combination or exchange of shares or other similar corporate change, or if the
outstanding securities of the class then subject to the Plan are exchanged for
or converted into cash, property or a different kind of securities, or if cash,
property or securities are distributed in respect of such outstanding securities
as a class (other than cash dividends), then the Board may, but it shall not be
required to, make such equitable adjustments to the Plan and the Awards
thereunder (including, without limitation, appropriate and proportionate
adjustments in (i) the number and type of shares or other securities or cash or
other property that may be acquired pursuant to Incentive Stock Options and
other Awards theretofore granted under the Plan, (ii) the maximum number and
type of shares or other securities that may be
<PAGE>

issued pursuant to Incentive Stock Options and other Awards thereafter granted
under the Plan; and (iii) the maximum number of securities with respect to which
Awards may thereafter be granted to any Participant in any fiscal year) as the
Board in its sole discretion determines appropriate, including any adjustments
in the maximum number of shares referred to in Section 5 of the Plan. Such
adjustments shall be conclusive and binding for all purposes of the Plan.

8.  Miscellaneous Provisions.

     (a)  Definitions.  As used herein, "subsidiary" means any future
corporation which would be a "subsidiary corporation," as that term is defined
in Section 424(f) of the Code, of the Company; and the term "or" means "and/or."

     (b)  Conditions on Issuance.  Securities shall not be issued pursuant to
Awards unless the grant and issuance thereof shall comply with all relevant
provisions of law and the requirements of any securities exchange or quotation
system upon which any securities of the Company are listed, and shall be further
subject to approval of counsel for the Company with respect to such compliance.
Inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is determined by Company counsel to be necessary
to the lawful issuance and sale of any security or Award, shall relieve the
Company of any liability in respect of the nonissuance or sale of such
securities as to which requisite authority shall not have been obtained.

     (c) Rights as Shareholder.  A participant under the Plan shall have no
rights as a holder of Common Stock with respect to Awards hereunder, unless and
until certificates for shares of such stock are issued to the participant.

     (d) Assignment or Transfer.  Subject to the discretion of the Board, and
except with respect to Incentive Stock Options which are not transferable except
by will or the laws of descent and distribution, Awards under the Plan or any
rights or interests therein shall be assignable or transferable.

     (e) Agreements.  All Awards granted under the Plan shall be evidenced by
written agreements in such form and containing such terms and conditions (not
inconsistent with the Plan) as the Board shall from time to time adopt.

     (f) Withholding Taxes.  The Company shall have the right to deduct from all
Awards hereunder paid in cash any federal, state, local or foreign taxes
required by law to be withheld with respect to such awards and, with respect to
awards paid in stock, to require the payment (through withholding from the
participant's salary or otherwise) of any such taxes.  The obligation of the
Company to make delivery of Awards in cash or Common Stock shall be subject to
the restrictions imposed by any and all governmental authorities.

     (g) No Rights to Award.  No Participant or other person shall have any
right to
<PAGE>

be granted an Award under the Plan. Neither the Plan nor any action taken
hereunder shall be construed as giving any Participant any right to be retained
in the employ of the Company or any of its subsidiaries or shall interfere with
or restrict in any way the rights of the Company or any of its subsidiaries,
which are hereby reserved, to discharge a Participant at any time for any reason
whatsoever, with or without good cause.

     (h) Costs and Expenses.  The costs and expenses of administering the Plan
shall be borne by the Company and not charged to any Award nor to any
Participant receiving an Award.

     (i) Funding of Plan.  The Plan shall be unfunded.  The Company shall not be
required to establish any special or separate fund or to make any other
segregation of assets to assure the payment of any Award under the Plan.

9.  Amendments and Termination.

     (a) Amendments.  The Board may at any time terminate or from time to time
amend the Plan in whole or in part, but no such action shall adversely affect
any rights or obligations with respect to any Awards theretofore made under the
Plan.  However, with the consent of the Participant affected, the Board may
amend outstanding agreements evidencing Awards under the Plan in a manner not
inconsistent with the terms of the Plan.

     (b) Shareholder Approval.  To the extent that Section 422 of the Code,
other applicable law, or the rules, regulations, procedures or listing agreement
of any national securities exchange or quotation system, requires that any
amendment of the Plan be approved by the shareholders of the Company, no such
amendment shall be effective unless and until it is approved by the shareholders
in such a manner and to such a degree as is required.

     (c) Termination.  Unless the Plan shall theretofore have been terminated as
above provided, the Plan (but not the awards theretofore granted under the Plan)
shall terminate on and no awards shall be granted after July 1, 2009.

10.  Effective Date.

     The Plan, as amended, is effective on January 5, 2000 the date on which it
was adopted by the Board of Directors of the Company and the holders of the
majority of the Common Stock of the Company.

11.  Governing Law.

     The Plan and any agreements entered into thereunder shall be construed and
governed by the laws of the State of California applicable to contracts made
within, and
<PAGE>

to be performed wholly within, such state, without regard to the application of
conflict of laws rules thereof.

      Signed: /s/ MAX TOGHRAIE               Dated: January 7, 2000
              -------------------------             ---------------
                  Max Toghraie
              Chief Executive Officer

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