Document:

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                                MERGER AGREEMENT
                                ----------------

                               December 14, 1999
                               -----------------

                  The parties to this agreement are Network Event Theater,
Inc., a Delaware corporation ("NET"); Sixdegrees Acquisition Corp., a Delaware
corporation and a wholly-owned subsidiary of NET ("Newco"); and sixdegrees,
inc., a Delaware corporation (the "Company").

                  The Company is engaged in the business of developing a
network database service, accessible from the Company's website, that enables
members of the Company's service to establish connections with other members
through their respective familial, professional and personal relationships (the
"Business"). The parties wish to provide for the acquisition of the Company by
NET through a tax-free reorganization by means of the merger of Newco into the
Company and the conversion of the Company's outstanding shares into common
stock and Convertible Preferred Stock of NET. Following the merger, the
Business will continue to be operated by the Company, as the surviving
corporation of the merger, and the Company will be a wholly-owned subsidiary of
NET.

                  It is agreed as follows:

                  1.       Merger; Provisions Relating to Surviving Corporation.

                           1.1 Certificate of Merger. Contemporaneously with
the closing under this agreement, a duly executed certificate of merger
providing for the merger (the "Merger") of Newco into the Company shall be
delivered for filing to the Secretary of State of Delaware. The Merger shall
become effective upon the filing of the certificate of merger in Delaware (the
"Effective Time").

                           1.2 Merger. At the Effective Time, Newco shall be
merged into the Company pursuant to the Delaware General Corporation Law and
the separate existence of Newco shall cease. The Company shall be the surviving
corporation of the Merger and shall continue to be governed by the Delaware
General Corporation Law.

                           1.3 Certificate of Incorporation and By-Laws of the
Company. The certificate of incorporation and by-laws of Newco in effect at the
Effective Time shall become the Company's certificate of incorporation and
by-laws, and shall continue as such until amended.

                           1.4 Certificate of Designation of NET. NET shall
adopt and file with the Secretary of State of Delaware, on or before the
Effective Time, a certificate of designation (the "Certificate of Designation")
in the form of exhibit 1.4, which sets forth a description and

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designation of a new class of NET's Convertible Preferred Stock (the
"Convertible Preferred Stock").

                           1.5 Directors and Officers. Commencing at the
Effective Time, the persons then serving as the directors and officers of Newco
shall be the directors and officers of the Company and shall hold office for
the term provided in the Company's bylaws after the Merger.

                           1.6 Closing. The closing under this agreement shall
take place at the offices of Proskauer Rose LLP, 1585 Broadway, New York, New
York 10036 (or at such other place as the parties may agree upon in writing) on
the third business day following the satisfaction of the conditions set forth
in sections 6.1 and 6.2 and immediately prior to the filing referred to in
section 1.1, but in any event no later than January 31, 2000. The date on which
the closing is held is referred to in this agreement as the "Closing Date." At
the closing, the parties shall execute and deliver the documents referred to in
section 7.

                  2.       Conversion of Shares Upon the Merger.

                           2.1      Conversion of Shares.

                                    (a) All of the Company's shares of common
stock and all of the Company's shares of Preferred Stock (including all accrued
dividends thereon) that are issued and outstanding at the Effective Time shall
then automatically cease to be outstanding and shall be converted into (x) an
aggregate number of shares of NET common stock equal to 3,400,000 less the
number of shares of NET common stock issuable upon the exercise of all options
and warrants to purchase shares of NET common stock to be issued upon the
Merger pursuant to sections 2.1(d) and (e), and (y) an aggregate number of
shares of Convertible Preferred Stock equal to (i) 766,667, plus (ii) a number
calculated by dividing the aggregate exercise price of all Company options and
warrants by $24 (which shares are convertible into an equal number of shares of
NET common stock, as provided in the Certificate of Designation) (collectively,
the "Merger Consideration"), plus (z) any additional shares of NET common stock
issuable pursuant to section 2.1(f).

                                    (b) The number of shares of NET common
stock and NET preferred stock distributable to each Company stockholder under
sections 2.1(a)(x), 2.1(a)(y) and 2.1(a)(z) and upon distribution from escrow
pursuant to section 2.2(a) shall in each case be that portion of the amount
distributed determined by multiplying the total amount being distributed by a
fraction of which the numerator shall be the number of shares of Company common
stock such stockholder owns, or in the case of the Convertible Preferred Stock
is entitled to receive upon conversion (plus the number of shares of Company
common stock distributable as a dividend as contemplated by section
5.2(i)(iv)), and the denominator shall be the aggregate number of shares of the
Company's common stock the holders of the Company's common and preferred stock
own or are entitled to receive upon conversion of their preferred stock (plus
any dividend shares). Any fractional shares shall be paid in cash based on a
value of $24 per share. After the Effective Time, the holder of any shares of
common stock or preferred stock of the

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Company that were outstanding prior to the Effective Time shall have no rights
with respect to those shares except to receive the stock of NET into which
those shares have been converted in accordance with the terms of this
agreement.

                                    (c) All of Newco's shares that are issued
and outstanding at the Effective Time shall then automatically be converted
into 100 duly authorized, validly issued, fully paid and non-assessable shares
of common stock of the Company.

                                    (d) At the Effective Time, each option to
purchase shares of common stock of the Company issued to employees of the
Company ("Employee Options") that was outstanding at the Effective Time shall,
for each share of common stock which could be purchased upon exercise,
automatically be converted into an option to purchase .083 shares of NET common
stock, on the same terms and conditions and with the same vesting provisions as
the option to purchase shares in the Company held by such holder at the
Effective Time. These options will be issued pursuant to newly adopted stock
option plans of NET on the same terms and conditions as the existing Company
stock option plans (the "New NET Stock Option Plans"). On consummation of the
merger of NET with Common Places LLC referred to in section 5.6(c), the options
outstanding under the New NET Stock Option Plans will be converted into
comparable options outstanding under the YouthStream Media Networks Inc.
("YouthStream") Stock Incentive Plan, a copy of which has been delivered to the
Company.

                                    (e) At the Effective Time, each option
(other than the Employee Options) and each warrant to purchase shares of common
stock of the Company that was outstanding at the Effective Time shall
automatically be converted into an option or warrant to purchase .083 shares of
NET common stock, on the same terms and conditions as the option or warrant to
purchase shares in the Company held by such holder at the Effective Time. There
are no options or warrants to purchase shares of preferred stock of the Company
outstanding.

                                    (f) If prior to the Effective Time there is
a stock split or stock combination or other recapitalization of NET, the number
of shares of NET common stock and NET Convertible Preferred Stock distributable
hereunder shall be appropriately adjusted to reflect such split, combination or
recapitalization.

                                    (g) Notwithstanding anything in this
agreement to the contrary, any shares of common stock or preferred stock of the
Company that are issued and outstanding immediately prior to the Effective Time
and which are held by stockholders who have not voted such shares in favor of
the Merger (or consented thereto in writing), who shall have delivered a
written objection to the Merger and a demand for appraisal of such shares in
accordance with Section 262 of the Delaware General Corporation Law (the
"DGCL") and who shall not have failed to perfect or shall not have effectively
withdrawn or lost their rights to appraisal and payment under the DGCL (the
"Dissenting Shares"), shall not be converted into the right to receive a
portion of the Merger Consideration, but shall instead entitle the holder
thereof to receive that consideration determined pursuant to section 262 of the
DGCL; provided, however, that if such holder shall have failed to perfect or
shall have effectively withdrawn such holder's right to appraisal and payment
under the DGCL, such holder's shares shall thereupon be deemed

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to have been converted, at the Effective Time, into the right to receive a
portion of the Merger Consideration, without any interest thereon. The
aggregate number of shares of NET Convertible Preferred Stock and common stock
issuable upon the Merger shall be reduced by the aggregate number of shares of
each class that the stockholders of the Company who validly perfected (and did
not withdraw) their dissenters' rights would but for their exercise of their
appraisal rights have been entitled to receive upon the Merger.

                                    (h) The Company shall give NET prompt
notice of any demands for appraisal pursuant to the applicable provision of the
DGCL received by the Company, any withdrawals of such demands, and any other
instruments served pursuant to the DGCL and received by the Company and the
opportunity to participate in all negotiations and proceedings with respect to
demands for appraisal under the DGCL. The Company shall not, except with prior
written consent of NET, make any payment with respect to any such demands for
appraisal or offer to settle or settle any such demands.

                                    (i) Within 15 days after the end of each
calendar year 2000-2002, NET shall issue to the stockholders of the Company, as
additional Merger Consideration, an aggregate number of shares of NET common
stock equal to (1) the excess of the value (at $24.00 per share) of all shares
of NET common stock issuable upon exercise of any options and warrants issued
pursuant to the Merger in exchange for options or warrants to purchase shares
of the Company's common stock or Preferred Stock that expired unexercised
during the prior calendar year over the aggregate exercise price of such
unexercised options or warrants, divided by (2) $24.00, adjusted to reflect any
split, combination or recapitalization of NET after the date hereof. Any
fractional shares shall be paid in cash based on a value of $24 per share.

                  2.2      Payment of Merger Consideration.

                                    (a) Promptly after the Effective Time, (1)
NET shall issue to an escrow agent to be designated by NET, which shall be a
commercial bank of national reputation that shall have executed and delivered
an escrow agreement in substantially the form of exhibit 2.2 (the "Escrow
Agreement"), 75,000 shares of the NET common stock distributable under section
2.1(a)(x) and all of the shares of Convertible Preferred Stock to which the
former stockholders of the Company are entitled, such shares to be held for one
year after the Effective Time as security for the indemnification obligations
of the Company pursuant to section 8, and (2) NET shall issue to the former
holders of Company common stock or Company preferred stock the remaining shares
of NET common stock distributable under section 2.1(a)(x), plus in each case
any applicable shares distributable pursuant to section 2.1(a)(z). At any time
after the Effective Time, each former holder of Company common stock or Company
preferred stock may surrender to NET the certificate or certificates for that
holder's shares and shall receive in exchange the shares of common stock of NET
and Convertible Preferred Stock to which such holder is entitled by virtue of
the Merger (other than the shares delivered and held pursuant to the Escrow
Agreement). The Escrow Agent's fee shall be paid by NET.

                                    (b) At the closing provided for in section
1.6, the Company shall deliver to NET a list, certified as true and complete by
the Company's chief financial officer,

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setting forth the names and addresses of all of the record holders of the
Company's common stock and preferred stock and all record holders of the
Company's options and warrants to purchase common stock and Convertible
Preferred Stock, if any, and the number of shares of common stock of NET and
Convertible Preferred Stock that each stockholder of record is entitled to
receive on the Merger (which shall aggregate to the Merger Consideration) and
the number of shares of NET common stock each option or warrant holder of
record is entitled to receive upon exercise of the option or warrant. In making
any payments to the former holders of the Company's common stock or preferred
stock, NET shall be entitled to rely on that list and shall not have any
liability of any kind arising out of any payment made in accordance with the
list or the failure to make any payment to any holder whose name and holdings
of common stock or preferred stock or options or warrants is omitted from, or
is not accurately stated on, that list.

                  3. Representations and Warranties by the Company. The Company
represents and warrants to NET and Newco as follows:

                           3.1 Organization and Authority of the Company. The
Company is a corporation duly organized, validly existing and in good standing
under the law of Delaware and has the full corporate power and authority to
own, lease and operate its properties as it now does and to carry on its
business as it is presently being conducted. The Company is duly qualified and
in good standing in New York, which is the only jurisdiction in which the
Company owns or leases real property. Except as set forth on schedule 3.1, the
Company does not directly or indirectly own any equity or similar interest in,
or any interest convertible into or exchangeable or exercisable for, any equity
or similar interest in, any corporation, partnership, joint venture or other
business association or entity.

                           3.2 Authorization of Agreement. The execution,
delivery and performance of this agreement by the Company have been duly
authorized by all requisite corporate action of the Company, other than
approval by the stockholders of the Company. The Voting Agreements referred to
in section 5.10 cover the requisite number of shares of common stock of the
Company and preferred stock of the Company required to approve the Merger. This
agreement constitutes a valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except that the Company's
obligation to consummate the Merger is subject to approval of the Merger by the
Company's stockholders and except as may be limited by bankruptcy, insolvency
or other similar laws affecting the enforcement of creditors' rights in general
and subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

                           3.3 Consents of Third Parties. Except as set forth
on schedule 3.3, the execution, delivery and performance of this agreement by
the Company do not and will not (i) conflict with the certificate of
incorporation or by-laws of the Company or conflict with, result in the breach
or termination of, constitute a default under, or increase or accelerate any
obligation under, any lease, agreement, commitment or other instrument, or any
order, judgment or decree, to which the Company is a party or by which the
Company or any of the assets of the Company is bound; (ii) constitute a
violation by the Company of any law, regulation, order, writ, judgment,
injunction or decree applicable to it; or (iii) result in the creation of any
claim, lien, security

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interest, charge or encumbrance ("Liens") upon any of the assets of the
Company. Except as set forth on schedule 3.3, no consent, approval or
authorization of, or designation, declaration or filing with, any court or
governmental authority or any other person or entity is required on the part of
the Company in connection with the execution, delivery and performance of this
agreement.

                           3.4 Ownership of the Company. As of the close of
business on December 13, 1999, there were issued and outstanding 10,212,666
shares of the Company's common stock, 8,000 shares of the Company's Series A
Preferred Stock, 10,478.08595 shares of the Company's Series B Preferred Stock,
13,418,831 shares of the Company's Series C Preferred Stock, and an aggregate
of 10,815,716 shares of the Company's Series D Preferred Stock and Series E
Preferred Stock; and there were outstanding options and warrants to purchase an
aggregate of 5,187,585 shares of the Company's common stock. Since December 13,
1999, except as set forth on schedule 3.4, the Company has not (i) issued any
common stock, other than upon the exercise of stock options or warrants or the
conversion of Convertible Preferred Stock then outstanding, (ii) granted or
issued any options, rights or warrants to purchase common stock (under the
Company's 1997 Incentive Stock Plan, 1999 Stock Plan or otherwise) or options,
rights or warrants to purchase preferred stock, or (iii) split, combined or
reclassified any common stock. Except as set forth on schedule 3.4, all the
outstanding common stock and preferred stock of the Company have been duly
authorized and validly issued and are fully paid and nonassessable and are free
of preemptive rights and free and clear of any Liens granted pursuant to any
agreement in which the Company is a party. Except as set forth on schedule 3.4,
there are no outstanding options, warrants, rights or other agreements or
commitments to acquire from the Company, or obligations of the Company to
issue, any shares of common stock or preferred stock of the Company or
securities convertible into or exchangeable for shares of common stock of the
Company, or obligations of the Company to grant, extend or enter into any
subscription, warrant, right, convertible or exchangeable security or other
similar agreement or commitment (collectively, "Company Securities"). Except as
set forth on schedule 3.4, there are no outstanding obligations of the Company
to repurchase, redeem or otherwise acquire any Company Securities and there are
no other outstanding equity related awards. Except as set forth on schedule
3.4, there are no voting trusts or other agreements or understandings to which
the Company is a party with respect to the voting of capital stock of the
Company. The Company does not own or have any liability or obligation to
acquire any securities or other interest in any other business or entity. The
aggregate exercise price of all outstanding options and warrants to purchase
shares of the Company's common stock is $5,672,416.

                           3.5 Financial Statements. The following financial
statements, copies of which have been delivered to NET, have been prepared in
accordance with generally accepted accounting principles applied on a
consistent basis and fairly present in all material respects the financial
position of the Company as of the dates indicated and the results of operations
for the periods indicated (subject, in the case of interim financial
statements, to normal year-end audit adjustments):

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                                    (a) Balance sheets of the Company as of
December 31, 1998 and 1997, and related statements of income and cash flows for
the years then ended, reviewed by PricewaterhouseCoopers LLP; and

                                    (b) Unaudited balance sheets of the Company
as of September 30, 1999 and 1998, and related statements of income for the 9
month period then ended.

                  All such financial statements have been prepared in
accordance with the books and records of the Company. All of the books of
account of the Company have been exhibited or made available to NET and those
books of account have been maintained in accordance with good business practice
on a consistent basis and accurately record all transactions of the Company
during the periods covered by them. All of the Company's accounts receivable
outstanding as of the date of this agreement arose from bona fide transactions
in the ordinary course of the business and, to the best knowledge of the
Company, none of them is subject to any defense, counterclaim or setoff, and
the Company has no reason to believe that any of them will not be collected in
full when due.

                  3.6 Absence of Undisclosed Liabilities. The Company does not
have any material liability or obligation of any kind, whether accrued,
absolute, contingent or otherwise, other than (a) the liabilities reflected on
the balance sheet of the Company as of September 30, 1999, (b) liabilities and
obligations under leases, commitments and other agreements entered into in the
ordinary course of business (which, to the extent required by section 3.13, are
listed on schedule 3.13), (c) trade accounts payable and accrued expenses
incurred in the ordinary course of business since September 30, 1999, and (d)
the liabilities set forth on schedule 3.6. The Company does not know of any
basis for the assertion against the Company of any material liability other
than those described in the preceding sentence.

                  3.7 Absence of Certain Changes. Since October 1, 1999, the
Company has operated its business in the ordinary course and consistent with
past practice, and, except as set forth on schedule 3.7:

                           (a) the Company has not entered into any transaction
or incurred any liability or obligation other than in the ordinary course of
business;

                           (b) there has been no material adverse change in the
condition (financial or otherwise), business, operations or assets, or, to the
best of the Company's knowledge, except for changes resulting from general
economic conditions and general conditions in the internet industry, in the
prospects of the Company;

                           (c) the Company has not sold or transferred any
assets other than in the ordinary course of business and other than assets that
have been replaced with other assets of equal or greater value;

                           (d) the Company has not incurred any liability that
was unusual in nature or amount or any indebtedness other than indebtedness to
trade creditors incurred in the ordinary course of business;

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                           (e) except for compensation and expense
reimbursements paid in the ordinary course of business and legal fees payable
to Morse, Zelnick, Rose and Lander LLP, the Company has not made any
distribution on or acquired any of its stock or, directly or indirectly, made
any other payment of any kind or any loan to or on behalf of any holder of 5%
or more of the Company's common stock or preferred stock (the "Significant
Stockholders"), any member of any Significant Stockholder's family, or any
entity controlled by any of the Significant Stockholders or any member of their
families;

                           (f) the Company has not granted or agreed to grant
any general increase in any rate or rates of salaries or compensation or in
benefits of any kind to its employees, or any specific increase in the salary
of or compensation to any employee whose total salary and compensation after
such increase would be at an annual rate in excess of $50,000;

                           (g) the Company has not made any change in its
accounting methods or principles (or the application of those methods or
principles) or introduced any material new method of management, operations or
accounting;

                           (h) the Company has not established any new employee
benefit plan (as defined in section 3.24), amended or modified any existing
employee benefit plan, or incurred any obligation or liability under any
employee benefit plan materially different in nature or amount from obligations
or liabilities incurred during similar periods in prior years; and

                           (i) the Company has not entered into any employment,
bonus or deferred compensation agreement with any of its directors, officers or
other employees other than agreements entered into with employees hired since
October 1, 1999 in the ordinary course of business.

                  3.8 Taxes. Except as set forth on schedule 3.8, the Company
has timely filed all foreign, federal, state and local income, gross receipts,
personal property, commercial rent, sales and use and other tax returns,
reports and information returns (including any related or supporting
information) required by law to be filed by it; each of those tax returns is
correct and complete in all material respects and the Company has paid all
taxes shown as due on such returns. None of the Company's tax returns has been
audited by any tax authority. There exist no pending or, to the best of the
knowledge of the Company, proposed tax assessments, suits, actions, claims,
audits, investigations or inquiries by any tax authority with respect to the
business or assets of the Company or against the Company or, with respect to
the operations of the Company, against any of its directors, officers,
employees or independent contractors. There are no tax liens on any of the
Company's assets. The Company (including any person acting on behalf of the
Company) has not given nor been requested to give waivers or extensions of any
statute of limitations relating to payment of taxes of the Company or for which
the Company may be liable and no other party has given or been requested to
give such waivers or extensions with respect to taxes for which the Company may
be liable. All taxes that are or were required by law to be withheld or
collected by the Company have been duly withheld or collected and paid to the
proper tax authority. The Company does not have any tax liability of any kind
that could result in a Lien on any of its assets other than taxes not yet due
and payable.

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                  3.9 Title to Assets. Except as set forth on schedule 3.9 and
except for the lien, if any, of current taxes not yet due and payable, the
Company has valid title, free and clear of any Liens, to all the assets,
tangible and intangible, used in or needed to conduct the Business, and those
assets will be sufficient to enable the Company to continue after the Effective
Time to operate all aspects of the Business in the manner in which it has been
operated by the Company. Except as set forth in Schedule 3.9 and except for
compensation and expense reimbursements for services rendered by employees of
the Company payable in the ordinary course of the Company's business, the
Company does not owe any amount to, or have any contract with or commitment to,
or use any property (real or personal) in its business owned or leased by, any
of the Significant Stockholders or any director, officer, employee, agent or
representative of the Company, or any of their respective affiliates.

                  3.10 Personal Property. Schedule 3.10 lists all of the
equipment, machinery, computers, furniture, leasehold improvements, vehicles
and other personal property having an individual value greater than $25,000
owned or leased by the Company and all interests therein. All equipment and
other tangible assets owned or used by the Company are in good operating
condition and in good condition of maintenance and repair, ordinary wear and
tear excepted, are suitable for their present uses and purposes, and conform in
all material respects with all applicable ordinances, rules and regulations and
all building, zoning and other laws.

                  3.11 Real Property. The Company does not own any real
property. Schedule 3.11 contains a list and brief description of all real
properties used or leased by the Company and all structures located on those
real properties. To the best knowledge of the Company, all improvements on the
real properties used by the Company are in accordance with all applicable laws,
ordinances, regulations and orders, including, but not limited to, those
applicable to zoning, environment and the establishment and maintenance of
working conditions for labor (other than immaterial violations), and all of the
buildings and structures on those properties are in good condition of
maintenance and repair and are adequate, sufficient and suitable for their
present uses and purposes. The transactions contemplated by this agreement will
not adversely affect the Company's right to use those properties after the
Effective Time for the same purpose and to the same extent as they were being
used by the Company prior to the Effective Time.

                  3.12 Litigation; Compliance with Laws. Except as set forth on
schedule 3.12, there is no claim, litigation, proceeding or governmental
investigation pending or, to the best knowledge of the Company, threatened, or
any order, injunction or decree outstanding, against the Company or any of its
properties or assets. The Company does not know of any basis for future claims,
litigations, proceedings or investigations against the Company or any of its
properties or assets. The Company is not in violation of any law, regulation or
ordinance which is material to the operation of the business of the Company, or
any other requirement of any governmental body or court which is material to
the operation of the business of the Company, and no notice has been received
by the Company or any of its officers or directors alleging any such violation.

                  3.13 Lists of Agreements, etc. Schedule 3.13 contains a true
and complete list of (a) all of the Company's commitments and other agreements
for the future purchase of

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materials, supplies, equipment and software, other than commitments and other
agreements that were entered into in the ordinary course of business and
involve an expenditure by the Company of less than $25,000 for any one
commitment or two or more related commitments; (b) all notes and agreements
relating to any indebtedness for borrowings of the Company; (c) all real estate
leases and all personal property leases or other rental agreements under which
the Company is either lessor or lessee involving payments by or to the Company
of more than $25,000 individually; and (d) all of the Company's other
agreements, commitments and understandings (written or oral) that require
payment by the Company of more than $50,000 individually. True and complete
copies of the agreements, commitments and leases referred to on schedule 3.13
have been delivered to NET.

                  3.14 Status of Agreements. Except as set forth on schedule
3.13, each of the agreements, commitments and orders referred to in section
3.13 is presently in full force and effect in accordance with its terms and the
Company is not in default in any material respect, and, to the best of the
knowledge of the Company, (i) no other party is in default in any material
respect under any of the provisions of any of those agreements and (ii) no
condition exists that, with notice or lapse of time or both, would constitute a
material default by the Company or any other party to any of those agreements.
Each of the agreements, commitments or orders referred to in section 3.13 is
valid and binding upon and enforceable against each of the parties thereto in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency or other similar laws affecting the enforcement of
creditors' rights in general. Except as set forth on schedule 3.13, no party to
any of the agreements, commitments or orders referred to in section 3.13 has
made, asserted or, to the best of the Company's knowledge, has any defense,
setoff or counterclaim under any of those agreements, commitments or orders or
has exercised any option granted to it to cancel or terminate its agreement, to
shorten the term of its agreement, or to renew or extend the term of its
agreement.

                  3.15     Employees.

                           (a) The Company has provided to NET a true and
complete list of the names and addresses, social security numbers, positions,
hire dates and annual or hourly compensation of all employees of the Company.
Schedule 3.15(a) sets forth a description of vacation policies, sick leave
policies, and bonus, incentive compensation and group insurance plans for the
benefit of those employees. No employee of the Company is owed any wages,
benefits or other compensation for past services, other than wages and benefits
accrued in the ordinary course of business during the current pay period and
accrued vacation. Except as set forth on schedule 3.15(a), the Company does not
have any severance policy and no employee of the Company is entitled to any
severance payment, either by law or by agreement, upon the termination of his
or her employment. To the best knowledge of the Company, the transactions
provided for in this agreement will not give rise to any liability of the
Company for severance pay or termination pay to any employee of the Company or
trigger any payments of any kind to any employee of the Company. No employee of
the Company is represented by any union or other collective bargaining agent
and there are no collective bargaining or other labor agreements with respect
to those employees.

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                           (b) Schedule 3.15(b) contains a true and complete
list of the names and addresses, social security or tax identification numbers,
the annual, weekly or hourly compensation, and the job descriptions, of all
persons that the Company has engaged as independent contractors since December
31, 1998. To the best knowledge of the Company, all such persons are properly
characterized as independent contractors. Neither the Internal Revenue Service
nor any other governmental agency has asserted any claim to the contrary and,
to the best of the knowledge of the Company, there is no pending investigation
by any governmental agency relating to the Company's practice of engaging
independent contractors.

                           (c) Schedule 3.15(c) contains a true and complete
copy of the Company's employee handbook, which contains accurate summaries of
the Company's employee benefit plans and human resources policies.

                  3.16 Labor Disagreements. Except as set forth on schedule
3.16, (a) to the best knowledge of the Company, the Company is in compliance
with all applicable laws and regulations respecting employment and employment
practices, terms and conditions of employment and wages and hours, and is not
engaged in any unfair labor practice; (b) there is no (and has never been any)
unfair labor practice charge or complaint against the Company pending before
the National Labor Relations Board, any state labor relations board or any
court or tribunal and, to the best of the knowledge of the Company, none is or
has been threatened; (c) there is no labor strike, dispute, request for
representation, slowdown or stoppage actually pending against or affecting the
Company and, to the best of the knowledge of the Company, none is or has been
threatened; and (d) to the best of the Company's knowledge, no grievance which
might have an adverse effect on the conduct of the operations of the Business
or any arbitration proceeding arising out of or under any collective bargaining
agreement is pending or is or has been threatened.

                  3.17 Restrictive Documents, etc. The Company is not subject
to, or a party to, any lease, license, permit, agreement or other commitment,
instrument, law, rule, ordinance, regulation, order, judgment or decree, or any
other restriction of any kind, that materially and adversely affects its
business practices or operations or any of the assets of the Company or that
would prevent its compliance with the terms, conditions and provisions of this
agreement or the continued operation of the Business by the Company after the
Effective Date on substantially the same basis as it has been operated.

                  3.18 Environmental Matters. To the best of the Company's
knowledge, the Company is not in violation of any federal, state or local law,
regulation, rule, order, decree, ordinance or common law relating to pollution,
the protection of human health or the environment.

                  3.19 Permits and Licenses. The Company has all permits,
licenses, franchises and other authorizations ("Licenses") necessary for the
conduct of the Business and all such Licenses are valid and in full force and
effect. All Licenses held by the Company that are material to the Company are
listed on schedule 3.19.

                                      11
<PAGE>

                  3.20 Banks; Powers of Attorney. Schedule 3.20 sets forth (a)
the names and locations of all banks, trust companies, savings and loan
associations and other financial institutions at which the Company maintains
safe deposit boxes or accounts of any nature and the names of all persons
authorized to draw thereon, make withdrawals therefrom or have access thereto
and (b) the names of all persons to whom the Company has granted a power of
attorney, together with a description thereof. The Company has provided NET
with true and complete copies of all bank statements received by it twenty-four
months prior to the date of this agreement.

                  3.21 Intangible Property. Schedule 3.21 contains a complete
list of the trademarks, trade names, copyrights, logos and internet URLs used
by the Company. The Company owns, free and clear of any Liens, each of the
trademarks, trade names, copyrights and logos (including registrations and
applications for registration of any of them) and internet URLs listed on
schedule 3.21, and they constitute all of the trademarks, copyrights, trade
names and logos and internet URLs necessary for the continued operation of the
Business in a manner consistent with past practices. To the best of the
Company's knowledge, the Company is not infringing upon any trademark, trade
name, copyright or other rights of any third party; no proceedings are pending
or threatened; and no claim has been received by the Company alleging any such
violation. Except as set forth in schedule 3.21, to the best knowledge of the
Company, there is no violation by others of any right of the Company with
respect to any trademark, trade name or copyright.

                  3.22 Software and Databases. Schedule 3.22 contains a list of
all software used by the Company in its operations that is material to the
operations of the business of the Company. The Company owns or possesses
adequate licenses or other rights to use all computer software listed on
schedule 3.22. Any license of the Company to use any software is valid and, to
the best of the Company's knowledge, does not infringe on the property rights
of any third party. The Company has not granted to any person or entity any
interest, as licensee or otherwise, in any of its owned software or databases
or in any of its mailing lists, advertiser lists or member lists.

                  3.23 Insurance. Schedule 3.23 contains a complete list of all
of the insurance policies held by the Company, specifying with respect to each
policy the policy limit, type of coverage, location of the property covered,
annual premium, premium payment date and expiration date. True and complete
copies of all of those policies have been delivered to NET.

                  3.24 ERISA. Except as set forth on schedule 3.24, the Company
is not a party to or bound by or liable with respect to any "employee benefit
plan," within the meaning of section 3(3) of the Employee Retirement Income
Security Act of 1974 ("ERISA"). The Company is in compliance in all material
respects with the applicable provisions of ERISA.

                  3.25 Expenses Related to this Agreement. Except for the fees
of counsel and accountants to the Company in connection with the negotiation
and execution of this agreement and the consummation of the Merger, the Company
has not paid any expenses related to the negotiation or preparation of this
agreement or any broker's, finder's or similar fee relating to the

                                      12
<PAGE>

transactions contemplated by this agreement, and no such payment of broker's
fees will be payable after execution of this agreement.

                  3.26 Transactions with Affiliates. Except as set forth on
schedule 3.26 and except for compensation and expense reimbursements paid in
the ordinary course of business and legal fees payable to Morse, Zelnick, Rose
and Lander LLP, during the twelve months preceding the date of this agreement
the Company has not engaged in any transaction with any of the Significant
Stockholders or any of their respective affiliates.

                  3.27 Year 2000 Compliance. The Company's proprietary software
described on schedule 3.22 is able to accurately process dates and date-related
data (including, without limitation, in calculation, comparison, manipulation
and sequencing processes) with dates prior to, through, and subsequent to
January 1, 2000, and all manipulations of time-related data (for example,
dates, durations, weekdays, time zones, leap years, etc.) will produce
reasonably expected and accurate results, provided, however, that this
representation assumes that all other products (including, without limitation,
hardware, software and firmware) used with such software properly exchange date
data with such software ("Y2K Compliant").

                  3.28 Business Relationships. Except as set forth on schedule
3.13 to this agreement, the Company currently enjoys good relationships with
all material suppliers of goods or services to the Company and all other
parties, including advertisers, with which it has material business relations,
and the Company does not know of any intention on the part of any such vendor
or other party to substantially change its relationship with the Company and
the Company has not received any notice to the effect that its relationship
with any such vendor or other party will change after the consummation of the
Merger under this agreement.

                  3.29     Website Information.

                           (a) As of December 1, 1999, the Company had enrolled
not less than 2,850,000 members of which 1,590,000 had completed registration.
Not less than 40% of those members who had completed registration described
their principal occupation as "student."

                           (b) The Company's website (www.sixdegrees.com) (the
"Website") had monthly page-views (including chat and degreemail bot page views
refreshed every thirty seconds) for August, September, October and November
1999 in the amount of 24,100,000, 19,500,000, 19,800,000, and 18,900,000,
respectively.

                           (c) The Website is currently able to handle not less
than 800 users concurrently, where concurrently references a number that
appears on the "who's-on" page of the Website.

                  3.30 No Misrepresentation. No representation or warranty by
the Company in this agreement (including the schedules and exhibits to this
agreement) contains any untrue statement of material fact or omits to state a
material fact necessary to make the statements

                                      13
<PAGE>

contained in this agreement (including the schedules and exhibits to this
agreement) not misleading.

                  40 Representations and Warranties by Newco and NET. Newco and
NET jointly and severally represent and warrant to the Company as follows:

                           4.1 Organization. Each of Newco and NET is a
corporation duly organized, validly
existing and in good standing under the law of the State of Delaware and has
the full corporate power to enter into and to perform this agreement and NET is
duly qualified and in good standing in each jurisdiction in which NET owns or
leases real property.

                           4.2 Authorization of Agreement. The execution,
delivery and performance of this agreement by Newco and NET have been duly
authorized by all requisite corporate action of each of them. This agreement
constitutes a valid and binding obligation of Newco and NET, enforceable
against each of them in accordance with its terms, except as enforceability may
be limited by bankruptcy, insolvency or other similar laws affecting the
enforcement of creditors' rights in general and subject to general principles
of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law).

                           4.3 Consents of Third Parties. The execution,
delivery and performance of this agreement by each of Newco and NET will not
(a) conflict with Newco's or NET's certificate of incorporation or by-laws and
will not conflict with, result in the breach or termination of, or constitute a
default under, any lease, agreement, commitment or other instrument, or any
order, judgment or decree, to which either of them is a party or by which
either of them is bound, or (b) constitute a violation by it of any law,
regulation, order, writ, judgment, injunction or decree applicable to it. No
consent, approval or authorization of, or designation, declaration or filing
with, any court or governmental authority is required on the part of Newco or
NET in connection with the execution, delivery and performance of this
agreement.

                           4.4 Validity of Shares. All of the issued and
outstanding shares of common and preferred stock of NET have been duly
authorized, are validly issued, fully paid and non-assessable. The shares of
NET common stock and NET Convertible Preferred Stock, when issued upon the
Merger, will be duly authorized, validly issued, fully paid and non-assessable.

                           4.5 NET Financials and SEC Reports. The "SEC
Documents" shall mean (a) each final prospectus and definitive proxy statement
filed by NET with the Securities and Exchange Commission (the "SEC") from
January 1, 1998 through the Effective Time, and (b) each report on Form 10-K or
Form 10-Q (and any amendments thereto) filed by NET with the SEC from January
1, 1998 through the Effective Time. None of the SEC Documents referred to in
the preceding sentence, as of the date they were filed with the SEC, contained
any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. The consolidated financial statements of NET and its subsidiaries
for the fiscal years ended December 31, 1998 and 1999 and as of September 30,
1999 included the SEC Documents (the "NET Financials") (including any
related notes thereto) fairly present in

                                      14
<PAGE>

all material respects the consolidated financial position and the consolidated
operations, shareholders' equity and changes in financial position, as the case
may be, of NET and its consolidated subsidiaries as of its date or for the
respective periods set forth therein (subject, in the case of unaudited
statements, to normal recurring year-end audit adjustments), in each case, in
accordance with generally accepted accounting principles consistently applied
during the periods involved (in the case of audited statements) or applicable
accounting requirements of the SEC (in the case of unaudited statements),
except as set forth therein.

                           4.6 Capitalization. The authorized capital stock of
NET consists of 32,000,000 shares of common stock and 1,000,000 shares of NET
preferred stock. As of the close of business on November 30, 1999, 17,419,447
shares of NET common stock were issued and outstanding; no shares of preferred
stock were issued or outstanding; no shares of NET common stock were held in
NET's treasury; and there were outstanding stock options to purchase an
aggregate of 850,000 shares of NET common stock under NET's Stock Option Plans
and other options and warrants to purchase an aggregate of 340,707 shares of
NET common stock under option and warrant agreements. Since November 30, 1999,
except as set forth on schedule 4.6, NET has not (i) issued any shares of NET
common stock, other than upon the exercise of NET stock options or warrants
then outstanding, (ii) granted any options, warrants or other rights to
purchase shares of NET common stock (under the NET Stock Option Plan or
otherwise) or (iii) split, combined or reclassified any of its shares of
capital stock. All the outstanding shares of NET common stock have been duly
authorized and validly issued and are fully paid and nonassessable and are free
of preemptive rights. Except as set forth in this section 4.6 or on schedule
4.6, there are no outstanding (i) shares of capital stock or other voting
securities of NET, (ii) securities of NET convertible into or exchangeable for
shares of capital stock or voting securities of NET or (iii) options, warrants,
rights or other agreements or commitments to acquire from NET, or obligations
of NET to issue, any capital stock, voting securities or securities convertible
into or exchangeable for capital stock or voting securities of NET, or
obligations of NET to grant, extend or enter into any subscription, warrant,
right, convertible or exchangeable security or other similar agreement or
commitment.

                           Upon the completion of the Common Places Merger (as
defined in section 5.6(c)) YouthStream will issue an aggregate of 4,715,312
shares of common stock to the members of Common Places LLC and options to
acquire approximately 1,100,000 shares of YouthStream common stock.

                           4.7 Absence of Certain Changes. Since September 30,
1999, except as set forth in schedule 4.7, there has not been the commencement
of an investigation, lawsuit or proceeding against it or Common Places LLC
seeking to enjoin the Common Places Merger or seeking damages in excess of
$5,000,000, or injunctive relief which, if granted, would have a material
adverse effect on any of NET's business operations.

                  50       Further Agreements of the Parties.

                           5.1 Access to Information. Prior to the closing, NET
and its representatives may make such investigation of the property, assets and
businesses of the

                                      15
<PAGE>

Business as they may desire, and the Company shall give to NET and to its
counsel, accountants and other representatives, upon reasonable notice, full
access, during normal hours throughout the period prior to the closing, to all
of the assets, books, commitments, agreements, records and files of the Company
relating to the Company and the Company shall furnish to NET during that period
all documents and copies of documents and information concerning the Company as
NET reasonably may request. NET shall hold, and shall cause its representatives
to hold, all such information and documents and all other information and
documents delivered pursuant to this agreement confidential and, if the
purchase and sale contemplated by this agreement is not consummated for any
reason, shall return to the Company all such information and documents and any
copies as soon as practicable, and shall not disclose any such information
(that has not previously been disclosed by a party other than NET) to any third
party, unless required to do so pursuant to an order under applicable laws and
regulations or pursuant to a subpoena or other legal process. NET's
confidentiality obligations under this section shall survive the termination of
this agreement.

                           Prior to the closing, the Company and its
representatives may make such reasonable investigation of the financial
condition and business of NET as they may desire, and NET shall give to the
Company and to its counsel and representatives, upon reasonable notice,
reasonable access during normal business hours throughout the period prior to
the closing to the books and records of NET. The Company shall hold, and shall
cause its representatives to hold, all such information and documents and all
other information and documents delivered pursuant to this agreement
confidential and, if the purchase and sale contemplated by this agreement is
not consummated for any reason, shall return to NET all such information and
documents and any copies as soon as practicable, and shall not disclose any
such information (that has not previously been disclosed by a party other than
the Company) to any third party, unless required to do so pursuant to an order
under applicable laws and regulations or pursuant to a subpoena or other legal
process. The Company's confidentiality obligations under this section shall
survive the termination of this agreement.

                           5.2 Conduct of the Business Pending the Closing.
Until the closing, the Company shall operate the Business in the ordinary
course in a manner consistent with past practices and shall:

                                    (a) promptly notify NET in writing of, and
furnish any information that NET reasonably may request with respect to, (i)
any claim, litigation, proceeding or governmental investigation threatened by
or against the Company relating to the Business or any material development
with respect to any such claim, litigation, proceeding or governmental
investigation, (ii) the occurrence of any event or the existence of any state
of facts that would result in any of the Company's representations and
warranties not being true as of the Closing Date, and (iii) any other
occurrence of any kind adversely affecting the Business;

                                    (b) duly comply with all laws, ordinances,
orders, injunctions and decrees applicable to the operation of the Business,
and pay all income, payroll, franchise and other taxes when due;

                                      16
<PAGE>

                                    (c) maintain all of the tangible assets of
the Company in good repair, maintenance and condition, except to the extent of
normal wear and tear, and replace any items of equipment at time intervals
consistent with past practices;

                                    (d) maintain all insurance policies set
forth on schedule 3.23;

                                    (e) except as otherwise requested by NET,
use reasonable efforts, consistent with its past practices, (i) to preserve the
business organization of the Company intact and to preserve the goodwill and
business of the advertisers, suppliers, subscribers and others having business
relations with the Company, (ii) to retain the services of the employees of the
Company, and (iii) to preserve all trademarks, trade names, logos and
copyrights and related registrations of the Company;

                                    (f) not grant or agree to grant any general
increase in the rates of salaries or compensation of its employees, or any
specific increase to any such employee whose total salary or compensation after
the increase would be at an annual rate in excess of $50,000, other than in
each case regularly scheduled annual increases to employees (other than
officers) in the ordinary course of business in amounts consistent with past
practices, or any increase in the pension, retirement or other employment
benefits of the employees of the Company;

                                    (g) except with NET's prior written
approval, not (i) enter into or renew any agreement, commitment or lease which,
if entered into prior to the date of this agreement, would have been required
to be included in schedule 3.13, or (ii) cause or take any action to allow any
lease, agreement or commitment of the Company to lapse (other than in
accordance with its terms), to be modified in any material adverse respect or
otherwise to become impaired in any manner;

                                    (h) except in the ordinary course of
business and substantially consistent with past practice, not (i) enter into
any transaction or incur any liability or obligation that is material to the
Company or (ii) sell or transfer any of the assets of the Company, other than
assets that have worn out or been replaced with other assets of equal or
greater value or assets that are no longer needed in the operation of the
Company; and

                                    (i) not (i) issue any capital stock or
other securities except upon the conversion of outstanding Convertible
Preferred Stock or the exercise of outstanding stock options or warrants, (ii)
amend its certificate of incorporation or by-laws, (iii) take any other action
affecting the capitalization or corporate organization of the Company, (iv)
except for payment of stock dividends on its Convertible Preferred Stock as
required pursuant to the terms of the Convertible Preferred Stock, declare, set
aside or pay any dividend or other distribution in respect of its capital
stock, and not redeem, purchase or otherwise acquire any such stock, or (v)
engage in any transaction with or make any direct or indirect payment of any
kind to or on behalf of the Significant Stockholders or any of the Company's
directors or officers or any of their respective affiliates (other than
payments of compensation to employees hired by the Company in the ordinary
course of business consistent with past practice).

                                      17
<PAGE>

                           5.3 Consents and Approvals. The Company shall use
its best efforts to obtain, at the earliest practicable date, in form and
substance reasonably satisfactory to NET, all consents and approvals required
for the consummation of the transactions contemplated by this agreement,
without any condition adverse to NET or the operation of the Company after the
Effective Time. NET shall cooperate with the Company in obtaining the consents.

                           5.4 Interim Financial Statements. The Company shall
promptly deliver to NET copies of any monthly or quarterly financial statements
or other reports of the Company that may be prepared by the Company during the
period from the date of this agreement to the Closing Date. All such financial
statements shall be prepared from the books and records of the Company, shall
show all income and expenses attributable to the Company and shall fairly
present in all material respects the financial position and results of
operations of the Company as of and for the periods indicated (subject, in the
case of interim financial statements, to normal year-end audit adjustments).
The Company shall also furnish to NET any other information concerning the
financial and operating condition of the Company as NET from time to time
reasonably may request.

                           5.5 Other Action. No party to this agreement shall
take any action that would result in any of its or their representations and
warranties not being true as of the Closing Date. Each of the parties to this
agreement shall use its best efforts to cause the fulfillment at the earliest
practicable date of all of the conditions to the obligations of the parties to
consummate the transactions contemplated by this agreement.

                           5.6      Securities Act Matters.

                                    (a) The Company recognizes that the
issuance of shares of NET common stock and Convertible Preferred Stock under
section 2 is intended to be exempt from registration under the Securities Act
of 1933, as amended (the "Securities Act"), by virtue of section 4(2) of the
Securities Act. In that connection, the Company acknowledges that sales or
transfers of shares of NET common stock and Convertible Preferred Stock to be
acquired by the stockholders of the Company are restricted by the Securities
Act and by certain state securities laws and that a legend referring to that
restriction and the restrictions pursuant to this agreement will be placed on
the certificates representing the shares.

                                    (b) None of the stockholders of the Company
may sell or otherwise transfer the shares acquired by them pursuant to this
agreement unless the transaction is registered under the Securities Act and
applicable state securities laws or an exemption from registration is
available.

                                    (c) NET intends to file a Registration
Statement on Form S-4 (the "S-4") in connection with its proposed merger with
Common Places, LLC (the "Common Places Merger"). All of the outstanding shares
of NET at the time of the filing of the S-4, including all shares of common
stock to be issued under this agreement and the shares of common stock of NET
issuable upon conversion of the shares of Convertible Preferred Stock to be
issued under this agreement, shall be exchanged for shares of YouthStream, as
successor to

                                      18
<PAGE>

NET, and shall thereafter be freely tradeable. If the S-4 does not
become effective by April 30, 2000, the Company shall promptly thereafter file
a Registration Statement on Form S-3 registering the resale of the shares of
common stock of NET issued to the Company stockholders in the Merger (the "Form
S-3"), including the shares of common stock issuable upon conversion of the
Convertible Preferred Stock (any resale to be limited by the terms of the
Lock-Up Agreements referred to in section 5.8). The Company shall use
reasonable efforts to cause the Form S-3 to become effective as promptly as
practicable after the filing and to keep the S-3 effective until June 30, 2001.
If the S-4 does not become effective and if for any reason the Form S-3 is not
then effective and within two years after the Effective Time NET proposes to
file a registration statement (other than a registration statement on Form S-4
or S-8 or any form substituting therefor or the equivalent thereof) on which
securities of NET are to be registered for sale by NET, NET shall give written
notice of such proposed filing to each of the stockholders of the Company at
least 30 days before the anticipated filing date of such registration statement
and such notice shall offer each of the stockholders the opportunity to have up
to 10% of the shares of NET common stock issued to him on the Closing Date
(including the shares issuable upon conversion of the Convertible Preferred
Stock) included in the registration statement. Each stockholder of the Company
desiring to have any of his shares of NET common stock included in the
registration statement shall so advise NET in writing within 20 days after the
date such notice is given by NET (which request shall set forth the number of
shares of NET common stock for which registration is requested). NET shall
include in the registration statement all such securities requested to be
included therein unless, if the registration statement is filed pursuant to an
underwritten offering, the managing underwriter delivers a written opinion that
the inclusion of such requested securities would likely have an adverse effect
on the offering, in which event NET shall include only so many shares as the
managing underwriter indicates may be included without having an adverse effect
on the offering.

                  Notwithstanding the foregoing, NET shall not have any
obligation to include any of a stockholder's shares in a registration statement
other than the S-3 if, in the opinion of NET's counsel (a copy of which shall
be addressed and delivered to the stockholder), the stockholder is then
permitted by law to sell, in a single transaction pursuant to the provisions of
Rule 144 under the Securities Act, all of the shares of common stock of NET
then held by him. NET shall not have any obligation to notify any of the
stockholders of the filing of a registration statement if he has received a
copy of the opinion referred to in the preceding sentence.

                  Each stockholder of the Company shall furnish to NET such
information and other material as NET or its counsel may reasonably request
with respect to the public offering of the shares of common stock of NET and
the stockholder shall take any other action which NET may reasonably request in
connection with the registration statement.

                                    (d) NET shall deliver to the Company, no
later than 10 days after the date of this agreement, disclosure materials to be
delivered by the Company to its stockholders in connection with their vote on
the Merger.

                           5.7 Stockholder Approval. NET shall use reasonable
efforts to obtain approval of its stockholders of the YouthStream Stock
Incentive Plan at the meeting at which the

                                      19
<PAGE>

merger with Common Places LLC is approved by the stockholders of NET. If the
merger with Common Places LLC is not approved by the stockholders of NET by
April 30, 2000, NET shall call a meeting of its stockholders in accordance with
law as promptly as practicable thereafter to approve the issuance to the
stockholders of the Company of the common stock of NET issuable upon conversion
of the Convertible Preferred Stock and to approve the New NET Stock Option
Plans and shall use best efforts to obtain the requisite vote of approval. If
the stockholders of NET do not approve the New NET Stock Option Plans or the
YouthStream Stock Incentive Plan within one year after adoption by the board of
directors of NET, NET shall indemnify and hold harmless any holder who
exercises an option from any tax consequences of exercise and sale of the
underlying shares of NET common stock that are more adverse than those tax
consequences had the NET Stock Option Plans been so approved by the
stockholders of NET (and NET shall lend to any option holder, without interest,
an amount equal to the taxes payable upon exercise of such options, to be
repaid upon sale of the underlying shares). Upon such stockholder approval, the
Convertible Preferred Stock shall immediately convert into common stock of NET
in accordance with the terms of the Convertible Preferred Stock.

                           5.8 Lock-Up Agreements. The Company shall use
reasonable efforts to cause stockholders of the Company holding at least 95% of
the sum of the Company's common stock and the Company's common stock issuable
upon conversion of the Company's Convertible Preferred Stock to enter into
Lock-Up Agreements (the "Lock-Up Agreements") with NET in substantially the
form of exhibit 5.8, prohibiting each stockholder from selling 90% of the
shares of common stock of NET issuable to him pursuant to this agreement
(including the shares of common stock of NET issuable upon conversion of the
Convertible Preferred Stock) and 90% of any shares of common stock issuable to
him upon exercise of any option or warrants for a period of nine months after
the Effective Time and 80% of those shares for a period of one year after the
Effective Time. For purposes of each Lock-Up Agreement, shares issued to the
Escrow Agent which would otherwise have been issued to any holder shall be
deemed shares owned by that holder.

                           5.9 Non-Competition Agreements. The Company shall
use reasonable efforts to cause the management and other key employees of the
Company listed on schedule 5.9 to enter into Non-Competition Agreements in
substantially the form of exhibit 5.9.

                           5.10 Voting Agreement. Each of the stockholders of
the Company listed on schedule 5.10 has entered into a Voting Agreement with
NET, substantially in the form of exhibit 5.10, agreeing to vote all of the
shares of the Company owned by that stockholder in favor of the Merger and the
transactions contemplated by the agreement.

                           5.11 S-8. NET shall cause the options to be issued
to employees of the Company pursuant to the New NET Stock Option Plans or the
YouthStream Stock Option Plan to be included in the Registration Statement on
Form S-8 filed by NET with respect to its existing stock option plans or in the
Registration Statement on Form S-8 to be filed by YouthStream with respect to
its stock option plans after the merger with Common Places LLC.

                                      20
<PAGE>

                           5.12 D&O Insurance. NET shall cause the Company to
maintain its existing directors and officers liability insurance for a period
of one year after the Effective Time. After the Merger, NET shall not amend the
certificate of incorporation of Newco to limit or eliminate the indemnification
of officers and directors as currently provided for in article ___ of Newco's
certificate of incorporation.

                           5.13 Company Stockholder Approval. The Company shall
call a meeting of its stockholders in accordance with law as promptly as
practicable and, in any event, no later than 25 days after the date of this
agreement, to approve the Merger and related matters and shall, through its
board of directors, use reasonable efforts to solicit the requisite vote of
approval. The board of directors of the Company shall recommend to the
stockholders of the Company that they approve the Merger.

                           5.14 Tax Free Reorganization. The Merger is a tax
free reorganization pursuant to the Internal Revenue Code, and the parties
shall so characterize the Merger and the transactions contemplated by this
agreement for tax and all other purposes.

                           5.15 Common Places Merger. NET shall use reasonable
efforts to cause the merger with Common Places LLC to be effected as promptly
as practicable after the Effective Time; provided, however (a) the board of
directors of NET may make any determination to delay or not to consummate the
merger with Common Places LLC that the board of directors of NET determines to
be in the best interests of the stockholders of NET, and (b) NET shall have no
liability to the Company or its stockholders as a result of any delay or
abandonment of the merger with Common Places LLC as a result of any
determination by the board of directors of NET pursuant to clause (a) above.

                           5.16 Securities Act Covenants. NET shall promptly
deliver to the Representatives copies of all filings with the SEC, including
the S-4, in connection with the Common Places Merger, and all correspondences
to and from the SEC with respect to that Merger. NET shall file all reports
required under the Securities Exchange Act of 1934 on a timely basis to permit
sales of shares of NET common stock by the Company's stockholders pursuant to
Rule 144 under the Securities Act of 1933.

                           5.17 Accountants Consent. The Company shall use
reasonable efforts to cause PricewaterhouseCoopers LLP to deliver to NET its
consent to the inclusion of the audited financial statements of the Company for
the years ended December 31, 1997, 1998 and 1999 in any filing by NET or
YouthStream with the SEC.

                           5.18 Listing on NASDAQ. NET shall cause the shares
of NET common stock to be issued at the Effective Time to be listed on NASDAQ
by the Effective Time and the shares of NET common stock (or YouthStream common
stock) to be issued upon conversion of the Convertible Preferred Stock to be
listed on NASDAQ by the time of the conversion of the Convertible Preferred
Stock.

                                      21
<PAGE>

                           5.19 Expenses. Except as expressly provided in this
agreement, the parties shall bear their own expenses incurred in connection
with the negotiation and preparation of this agreement and in connection with
the transactions contemplated by this agreement.

                           5.20 Further Assurances. At any time and from time
to time after the date of this agreement, each party shall, without further
consideration, execute and deliver to the other parties such other instruments
and take such other action as the others may reasonably request to carry out
the transactions contemplated by this agreement.

                  60       Conditions to Closing.

                           6.1 Conditions Precedent to Obligations of Newco and
NET. The obligations of Newco
and NET to consummate the transactions contemplated by this agreement are
subject to the fulfillment, prior to or at the closing, of each of the
following conditions (any or all of which may be waived by Newco or NET):

                                    (a) all representations and warranties of
the Company to Newco and NET shall be true and correct in all material respects
as of the time of the closing, with the same effect as though those
representations and warranties had been made again at and as of that time;

                                    (b) the Company shall have performed and
complied with all obligations and covenants required by this agreement to be
performed or complied with by them, respectively, prior to or at the closing;

                                    (c) NET shall have been furnished with a
certificate (dated the Closing Date and in form and substance reasonably
satisfactory to NET) executed by the president of the Company, certifying to
the fulfillment of the conditions specified in sections 6.1(a) and 6.1(b);

                                    (d) NET shall have been furnished with an
opinion of Morse, Zelnick, Rose & Lander, LLP, counsel to the Company, in the
form of exhibit 6.1(d);

                                    (e) the holders of the requisite percentage
of the Company's common stock and preferred stock shall have approved the
Merger;

                                    (f) the requisite Lock-Up Agreements
required pursuant to section 5.8 and the Non-Competition Agreements required
pursuant to section 5.9 shall have been executed and delivered to NET;

                                    (g) the Company shall have duly received
all consents and approvals required for the consummation of the transactions
contemplated by this agreement, including any required consents from the
holders of all options (other than Employee Stock Options) and warrants to the
conversion of their options or warrants as provided in section 2.1(e);

                                      22
<PAGE>

                                    (h) the Company shall have delivered to NET
evidence reasonably satisfactory to NET that the issuance of NET common stock
and Convertible Preferred Stock upon the Merger is exempt from registration
under the Securities Act;

                                    (i) there shall not be in effect any
injunction or restraining order issued by a court of competent jurisdiction in
an action or proceeding against the consummation of the transactions
contemplated by this agreement; and

                                    (j) the holders of not more than 5% of the
stock of the Company shall have validly exercised appraisal rights with respect
to the Merger.

                           6.2 Conditions Precedent to Obligations of the
Company. The obligations of the Company to consummate the transactions
contemplated by this agreement are subject to the fulfillment, prior to or at
the closing, of each of the following conditions (any or all of which may be
waived by the Company):

                               (a) all representations and warranties of Newco
and NET shall be true and correct in all material respects as of the time of
the closing, with the same effect as though those representations and
warranties had been made again at and as of that time;

                               (b) Newco and NET shall have performed and
complied with all obligations and covenants required by this agreement to be
performed or complied with by them, respectively, prior to or at the closing;

                               (c) since the date of this agreement there shall
not have occurred: (i) the death or disability or resignation or other
termination of employment of Harlan Peltz or Benjamin Bassi; (ii) the
suspension of trading on NASDAQ of NET's stock for a period of two consecutive
days; (iii) the commencement of an investigation, lawsuit or proceeding against
NET or Common Places LLC seeking to enjoin the Common Places Merger or seeking
damages in excess of $5,000,000, or injunctive relief which, if granted, would
have a material adverse effect on any of NET's business operations, unless
counsel for NET or Common Places LLC delivers a written opinion to the Company
that, in its judgment, the investigation, lawsuit or proceeding is not likely
to result in injunctive relief or an award of damages material to NET or Common
Places LLC; or (iv) a decision to terminate or abandon the Common Places
Merger.

                               (d) the Representatives (as defined in Section
8.5) shall have been furnished with a certificate (dated the Closing Date and
in form and substance reasonably satisfactory to the Representatives) executed
by the president of NET, certifying to the fulfillment of the conditions
specified in sections 6.2(a), 6.2(b) and 6.2(c);

                               (e) the Representatives shall have been
furnished with an opinion of Proskauer Rose LLP, counsel to Newco and NET, in
the form of exhibit 6.2(e);

                               (f) the holders of the requisite percentage of
the Company's common stock and preferred stock shall have approved the Merger;

                                      23
<PAGE>

                               (g) there shall not be in effect any injunction
or restraining order issued by a court of competent jurisdiction in an action
or proceeding against the consummation of the transactions contemplated by this
agreement; and

                               (h) there shall have been listed on NASDAQ the
shares of NET common stock issuable to the stockholders of the Company at the
Effective Time.

                70 Documents to be Delivered at Closing.

                7.1 Documents to Be Delivered by the Company. At the closing,
the Company shall deliver to NET and Newco the following:

                                    (a) the certificate referred to in section
6.1(c);

                                    (b) the opinion referred to in section
6.1(d);

                                    (c) a copy of resolutions of the board of
directors and the stockholders of the Company approving the Merger, and a
certificate of its secretary or assistant secretary, dated the Closing Date,
that such resolutions were duly adopted and are in full force and effect;

                                    (d) the Lock-up Agreements referred to in
section 5.8; and

                                    (e) the Non-Competition Agreements referred
to in section 5.9.

                           7.2 Documents To Be Delivered by Newco and NET. At
the closing, Newco and NET shall deliver to the Representatives the following:

                                    (a) certificates representing the number of
shares of common stock and Convertible Preferred Stock of NET as determined in
accordance with section 2.1(a) issued in the names of the stockholders of the
Company;

                                    (b) the certificate referred to in section
6.2(d);

                                    (c) the opinion referred to in section
6.2(e);

=                           (d) a copy of resolutions of the boards of directors
of NET and Newco, and a certificate of the secretary or assistant secretary of
NET or Newco, as the case may be, dated the Closing Date, that such resolutions
were duly adopted and are in full force and effect;

                           (e) the Lock-up Agreements referred to in section
5.8; and

                           (f) the Non-Competition Agreements referred to in
section 5.9.

                           80 Survival of Representations and Warranties;
Indemnification.

                                      24
<PAGE>

                           8.1 Survival. All representations, warranties and
agreements by the Company shall survive the closing under this agreement for a
period of one year notwithstanding any investigation at any time by or on
behalf of Newco or NET, and shall not be considered waived by Newco's or NET's
consummation of the transactions contemplated by this agreement with knowledge
of any breach or misrepresentation by the Company. All representations,
warranties and agreements by Newco and NET shall survive the closing under this
agreement for a period of one year except for the representations covered by
the certification under section 6.2(d) relating to the conditions in section
6.2(c) which shall survive the closing for three months, notwithstanding any
investigation at any time by or on behalf of the Company, and shall not be
considered waived by the Company's consummation of the transactions
contemplated by this agreement with knowledge of any breach or
misrepresentation by Newco or NET.

                           8.2      Indemnification.

                                    (a) The Company and NET shall be
indemnified and held harmless, solely out of the shares of NET common stock and
Convertible Preferred Stock held pursuant to the Escrow Agreement, against all
loss, liability, damage or expense (including reasonable fees and expenses of
counsel, whether involving a third party or between the parties to this
agreement) (collectively, "Losses") the Company or NET may suffer, sustain or
become subject to as a result of any breach of any representation, warranty,
covenant or other agreement of the Company contained in this agreement, or any
misrepresentation by the Company, or any claim by a third party which without
regard to the merits of the claim would constitute such a breach or
misrepresentation.

                                    (b) NET shall indemnify and hold harmless
the stockholders of the Company against all Losses the stockholders of the
Company may suffer, sustain or become subject to as a result of any breach of
any representation, warranty, covenant or other agreement of Newco or NET
contained in this agreement, or any misrepresentation by Newco or NET, or any
claim by a third party which, without regard to the merits of the claim, would
constitute such a breach or misrepresentation.

                           8.3 Limitations on Liability. Notwithstanding
anything to the contrary in this agreement, (a) no party shall be entitled to
indemnification for misrepresentation or breach of warranty unless the aggregate
Losses incurred as a result of all such misrepresentations and breaches of
warranty exceeds the sum of $500,000, in which event such party shall be
entitled to indemnification for all such Losses in excess of $500,000, (b) the
only recourse of NET and the Company for indemnification under this agreement
shall be to the shares of NET common stock and Convertible Preferred Stock held
pursuant to the Escrow Agreement and NET and the Company shall have no other
recourse against the stockholders of the Company with respect to such
indemnification obligations, and (c) for purposes of indemnification by the
stockholders of the Company, each share of NET common stock and Convertible
Preferred Stock held in escrow shall be valued at $24.00.

                           8.4 Defense of Claims. If any third-party claim is
made against any party that, if sustained, would give rise to a liability of
the other party, the party against whom

                                      25
<PAGE>

the claim is made shall promptly cause notice of the claim to be delivered to
the other party and shall afford the other party and its counsel, at the other
party's sole expense, the opportunity to join in defending or compromising the
claim.

                           8.5 Representatives. For purposes of any
indemnification claim, Andrew Weinreich and Matthew Cowan (or if either of them
ceases to act, a successor designated by the holders of a majority of the
shares of the Company's common stock) shall act as representatives (the
"Representatives") of the stockholders of the Company, and shall have full
authority, on behalf of all of the stockholders of the Company, to make any
determination or to settle any claim pursuant to this section 8. By approving
the Merger, the stockholders of the Company shall be deemed to have confirmed
the appointment and authority of the Representatives, and NET shall be entitled
to rely on the Representatives' authority. The Representatives in acting for
the stockholders of the Company shall have no liability unless they are guilty
of gross negligence or willful misconduct in performing their responsibilities
as Representatives. The Representatives may instruct the Escrow Agent to sell
up to 25,000 shares of the NET common stock held in escrow to pay any expenses
of defending any claims for indemnification pursuant to this section 8.

                  90       Termination.

                           9.1 This agreement may be terminated at any time
prior to the Effective Time, whether before or after approval by the
stockholders of the Company:

                               (a) by mutual consent of the boards of directors
of NET and the Company;

                               (b) by NET or the Company, if, without fault of
the terminating party, the Merger shall not have been consummated on or before
January 31, 2000, which date may be extended by mutual agreement of the boards
of directors of NET and the Company;

                               (c) by the Company, if any event shall have
occurred that renders any condition set forth in section 6.2 incapable of
fulfillment and such condition is not waived by the Company; or

                               (d) by NET, if any event shall have occurred
that renders any condition set forth in section 6.1 incapable of fulfillment
and such condition is not waived by NET.

                               9.2 Notice of Termination. In the event of
termination of the Merger pursuant to this section 9, written notice of
termination shall promptly be given to each other party to this agreement.

                               9.3 Effect of Termination. The termination of
this agreement under section 9.1 shall not relieve any party of any liability
for breach of this agreement prior to the date of termination.

                                      26
<PAGE>
                  100      Miscellaneous.

                           10.1 Finders. The parties represent and warrant that
they have not employed or
utilized the services of any broker or finder in connection with this agreement
or the transactions contemplated by it, except that NET has employed Allen &
Company, and shall be responsible for the fees payable to Allen & Company.

                               10.2 Entire Agreement. This agreement (together
with the Lock-up Agreements referred to in section 5.8, the Employment
Agreements referred to in section 5.9, and the Voting Agreements referred to in
section 5.10 and the Escrow Agreement referred to in section 2.2) contains, and
is intended as, a complete statement of all of the terms of the arrangements
among the parties, supersedes any previous agreements and understandings among
the parties with respect to those matters, and cannot be changed or terminated
orally and there are no representations or warranties by any party except as
provided in this agreement.

                               10.3 Governing Law. This agreement shall be
governed by and construed in accordance with the law of the State of New York
applicable to agreements made and to be performed entirely in New York, except
that the provisions relating to the merger of Newco into the Company shall be
governed by Delaware law to the extent appropriate.

                               10.4 Headings. The section headings of this
agreement are for reference purposes only and are to be given no effect in the
construction or interpretation of this agreement.

                               10.5 Notices. All notices and other
communications under this agreement shall be in writing and shall be deemed
given when delivered personally or by facsimile (receipt confirmed), one day
after being sent by recognized overnight courier or four days after being
mailed by registered mail, return receipt requested, to the parties at the
following addresses (or to such other address as a party may specify by notice
given to the other pursuant to this provision):

                                    (a) If to the Company, addressed to it at:

                                        c/o sixdegrees, inc.
                                        28 West 23rd Street
                                        New York, NY  10010
                                        Attention:
                                        Thea A. Winarsky, Esq.
                                        Vice President & General Counsel

                                        with a copy to:

                                        Morse, Zelnick, Rose & Lander, LLP
                                        450 Park Avenue
                                        New York, New York
                                        Attention:  Howard L. Weinreich, Esq.

                                    (b) If to Newco or NET, addressed to either
                                        or both of them at:

                                        Network Event Theater, Inc.
                                        529 Fifth Avenue
                                        New York, New York 10017
                                        Attention: Bruce Resnik,
                                        Executive Vice President and
                                        Chief Financial Officer

                                        with a copy to:

                                        Proskauer Rose LLP
                                        1585 Broadway
                                        New York, New York 10036
                                        Attention: Bertram A. Abrams, Esq.

                  10.6 Waiver. Any party may waive compliance by another with
any of the provisions of this agreement. No waiver of any provision shall be
construed as a waiver of any other provision. Any waiver must be in writing and
must be signed by the party waiving the provision.

                  10.7 Separability. If any provision of this agreement is
invalid or unenforceable, the balance of this agreement shall remain in effect
unless such invalidity or unenforceability shall materially impair the purpose
or objectives of this agreement.

                  10.8 Assignment. No party may assign any of its or her rights
or delegate any of its or her duties under this agreement without the consent
of the other parties.

                  10.9 Publicity. No party shall issue any press release or
other public statement regarding the transactions contemplated by this
agreement, except as required by applicable law and except that the Company and
NET may issue a press release approved in writing by both parties and either
party may thereafter disclose such information as it determines necessary or
appropriate.

                  10.10 Definitions. As used in this agreement, the term
"affiliate" means any person or entity directly or indirectly controlled by,
controlling, or under common control with, any other person or entity. As used
in this agreement, the term "subsidiary" of a person means any corporation or
other legal entity of which that person (either alone or through or together
with any other subsidiary) owns, directly or indirectly, more than 50% of the
stock or other equity interests that are ordinarily and generally, in the
absence of contingencies and understandings, entitled to vote for the election
of the board of directors or other governing body of such entity.

                  10.11 No Third Party Beneficiaries. This agreement does not
create, and shall not be construed as creating, any rights enforceable by any
person not a party to this agreement.

                  10.12 Specific Performance. The Company acknowledges that the
Company is of a special, unique and extraordinary character, and that any
breach of this agreement by the Company could not be compensated for by
damages. Accordingly, if the Company breaches its obligations under this
agreement NET shall be entitled, in addition to any other remedies that it

                                      28
<PAGE>

may have, to enforcement of this agreement by a decree of specific performance
requiring the Company to fulfill its obligations under this agreement, and no
bond or other security shall be required.

                                      29
<PAGE>

                  10.13 Counterparts. This agreement may be executed in one or
more counterparts.

                                sixdegrees, inc.

                                By:      /s/ Andrew Weinreich
                                         --------------------------------------
                                         Andrew Weinreich
                                         President & Chief Executive Officer

                                SIXDEGREES ACQUISITION CORP.

                                By:      /s/ Bruce L. Resnik
                                         --------------------------------------
                                         Bruce L. Resnik
                                         Executive Vice President and
                                         Chief Financial Officer

                                NETWORK EVENT THEATER, INC.

                                By:      /s/ Bruce L. Resnik
                                         --------------------------------------
                                         Bruce L. Resnik
                                         Executive Vice President and
                                         Chief Financial Officer

                                      30<PAGE>

                                                                Exhibit 10.35

                           NETWORK EVENT THEATER, INC.

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

                             1999 STOCK OPTION PLAN
                           --------------------------

                                    ARTICLE I

                                     PURPOSE

         The purpose of this Network Event Theater, Inc. 1999 Stock Option Plan
is to enhance the profitability and value of the Company for the benefit of its
stockholders by enabling the Company to offer employees of and Consultants to
the Company and its Affiliates stock-based incentives and other equity interests
in the Company, thereby creating a means to raise the level of stock ownership
by employees and Consultants in order to attract, retain and reward such
individuals and strengthen the mutuality of interests between such individuals
and the Company's stockholders.

                                   ARTICLE II

                                   DEFINITIONS

         For purposes of this Plan, the following terms shall have the following
meanings:

                  2.1 "Acquisition Event" has the meaning set forth in Section
         4.2(d).

                  2.2 "Affiliate" means each of the following: (i) any
         Subsidiary; (ii) any Parent; (iii) any corporation, trade or business
         (including, without limitation, a partnership or limited liability
         company) which is directly or indirectly controlled 50% or more
         (whether by ownership of stock, assets or an equivalent ownership
         interest or voting interest) by the Company or one of its Affiliates;
         and (iv) any other entity in which the Company or any of its Affiliates
         has a material equity interest and which is designated as an
         "Affiliate" by resolution of the Committee.

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

                  2.4 "Cause" means, with respect to a Participant's Termination
         of Employment or Termination of Consultancy: (i) in the case where
         there is no employment agreement,
<PAGE>

         consulting agreement, change in control agreement or similar agreement
         in effect between the Company or an Affiliate and the Participant at
         the time of the grant of the Option (or where there is such an
         agreement but it does not define "cause" (or words of like import)),
         termination due to a Participant's insubordination, dishonesty,
         incompetence, moral turpitude, other misconduct of any kind or the
         refusal to perform his or her duties or responsibilities for any reason
         other than illness or incapacity; or (ii) in the case where there is an
         employment agreement, consulting agreement, change in control agreement
         or similar agreement in effect between the Company or an Affiliate and
         the Participant at the time of the grant of the Option that defines
         "cause" (or words of like import), as defined under such agreement;
         provided, however, that with regard to any agreement that conditions
         "cause" on occurrence of a change in control, such definition of
         "cause" shall not apply until a change in control actually takes place
         and then only with regard to a termination thereafter.

                  2.5 "Change in Control" has the meaning set forth in Article
         VIII.

                  2.6 "Code" means the Internal Revenue Code of 1986, as
         amended. Any reference to any section of the Code shall also be a
         reference to any successor provision.

                  2.7 "Committee" means: a committee or subcommittee of the
         Board appointed from time to time by the Board, which committee or
         subcommittee shall consist of two or more non-employee directors, each
         of whom is intended to be, to the extent required by Rule 16b-3, a
         "non-employee director" as defined in Rule 16b-3 and, to the extent
         required by Section 162(m) of the Code and any regulations thereunder,
         an "outside director" as defined under Section 162(m) of the Code;
         provided, however, that if and to the extent that no Committee exists
         which has the authority to administer this Plan, the functions of the
         Committee shall be exercised by the Board and all references herein to
         the Committee shall be deemed to be references to the Board.

                  2.8 "Common Stock" means the common stock, $.01 par value per
         share, of the Company.

                  2.9 "Company" means Network Event Theater, Inc., a Delaware
         corporation, and its successors by operation of law.

                  2.10 "Consultant" means any advisor or consultant to the
         Company or its Affiliates.

                  2.11 "Disability" means, with respect to an Eligible Employee
         or Consultant, a permanent and total disability as defined in Section
         22(e)(3) of the Code. A Disability shall only be deemed to occur at the
         time of the determination by the Committee of the Disability.

                  2.12 "Effective Date" means the effective date of this Plan as
         defined in Article XII.

                                        2
<PAGE>

                  2.13 "Eligible Employee" means each employee of the Company or
         an Affiliate.

                  2.14 "Exchange Act" means the Securities Exchange Act of 1934,
         as amended. Any references to any section of the Exchange Act shall
         also be a reference to any successor provision.

                  2.15 "Fair Market Value" means, unless otherwise required by
         any applicable provision of the Code or any regulations issued
         thereunder, as of any date, the last sales price for the Common Stock
         on the applicable date: (i) as reported on the principal national
         securities exchange on which it is then traded or the Nasdaq Stock
         Market, Inc. or (ii) if not traded on any such national securities
         exchange or the Nasdaq Stock Market, Inc. as quoted on an automated
         quotation system sponsored by the National Association of Securities
         Dealers, Inc. If the Common Stock is not readily tradable on a national
         securities exchange, the Nasdaq Stock Market, Inc. or any automated
         quotation system sponsored by the National Association of Securities
         Dealers, Inc., its Fair Market Value shall be set in good faith by the
         Committee. Notwithstanding anything herein to the contrary, "Fair
         Market Value" means the price for Common Stock set by the Committee in
         good faith based on reasonable methods set forth under Section 422 of
         the Code and the regulations thereunder including, without limitation,
         a method utilizing the average of prices of the Common Stock reported
         on the principal national securities exchange on which it is then
         traded during a reasonable period designated by the Committee. For
         purposes of the grant of any Stock Option, the applicable date shall be
         the date for which the last sales price is available at the time of
         grant.

                  2.16 "Foreign Jurisdiction" means any jurisdiction outside of
         the United States including, without limitation, countries, states,
         provinces and localities.

                  2.17 "Incentive Stock Option" means any Stock Option awarded
         to an Eligible Employee under this Plan intended to be and designated
         as an "Incentive Stock Option" within the meaning of Section 422 of the
         Code.

                  2.18 "Non-Qualified Stock Option" means any Stock Option
         awarded under this Plan that is not an Incentive Stock Option.

                  2.19 "Parent" means any parent corporation of the Company
         within the meaning of Section 424(e) of the Code.

                  2.20 "Participant" means any Eligible Employee or Consultant
         to whom an Option has been granted under this Plan.

                  2.21 "Plan" means this Network Event Theater, Inc. 1999 Stock
         Option Plan, as amended from time to time.

                                        3
<PAGE>

                  2.22 "Retirement" means a Termination of Employment or
         Termination of Consultancy without Cause by a Participant at or after
         age 65 or such earlier date after age 50 as may be approved by the
         Committee with regard to such Participant.

                  2.23 "Rule 16b-3" means Rule 16b-3 under Section 16(b) of the
         Exchange Act as then in effect or any successor provisions.

                  2.24 "Section 162(m) of the Code" means Section 162(m) of the
         Code and any Treasury regulations thereunder.

                  2.25 "Securities Act" means the Securities Act of 1933, as
         amended. Any reference to any section of the Securities Act shall also
         be a reference to any successor provision.

                  2.26 "Stock Option" or "Option" means any option to purchase
         shares of Common Stock granted to Eligible Employees or Consultants
         under Article VI.

                  2.27 "Subsidiary" means any subsidiary corporation of the
         Company within the meaning of Section 424(f) of the Code.

                  2.28 "Ten Percent Stockholder" means a person owning stock
         possessing more than 10% of the total combined voting power of all
         classes of stock of the Company, its Subsidiaries or its Parent.

                  2.29 "Termination of Consultancy" means, with respect to a
         Consultant, that the Consultant is no longer acting as a consultant to
         the Company or an Affiliate. In the event an entity shall cease to be
         an Affiliate, there shall be deemed a Termination of Consultancy of any
         individual who is not otherwise a Consultant to the Company or another
         Affiliate at the time the entity ceases to be an Affiliate. In the
         event that a Consultant becomes an Eligible Employee upon the
         termination of his consultancy, the Committee, in its sole and absolute
         discretion, may determine that no Termination of Consultancy shall be
         deemed to occur until such time as such Consultant is no longer a
         Consultant or an Eligible Employee.

                  2.30 "Termination of Employment" means: (i) a termination of
         employment (for reasons other than a military or personal leave of
         absence granted by the Company) of a Participant from the Company and
         its Affiliates; or (ii) when an entity which is employing a Participant
         ceases to be an Affiliate, unless the Participant otherwise is, or
         thereupon becomes, employed by the Company or another Affiliate. In the
         event that an Eligible Employee becomes a Consultant upon the
         termination of his employment, the Committee, in its sole and absolute
         discretion, may determine that no Termination of Employment shall be
         deemed to occur until such time as such Eligible Employee is no longer
         an Eligible Employee or a Consultant.

                                        4
<PAGE>

                  2.31 "Transfer" means anticipate, alienate, attach, sell,
         assign, pledge, encumber, charge, hypothecate or otherwise transfer and
         "Transferred" has a correlative meaning.

                                   ARTICLE III

                                 ADMINISTRATION

                  3.1 The Committee. The Plan shall be administered and
         interpreted by the Committee. If for any reason the appointed Committee
         does not meet the requirements of Rule 16b-3 or Section 162(m) of the
         Code, such noncompliance with the requirements of Rule 16b-3 and
         Section 162(m) of the Code shall not affect the validity of Options,
         grants, interpretations or other actions of the Committee.

                  3.2 Grants of Options. The Committee shall have full authority
         to grant to Eligible Employees and Consultants, pursuant to the terms
         of this Plan, Stock Options. All Stock Options shall be granted by,
         confirmed by, and subject to the terms of, a written agreement executed
         by the Company and the Participant. In particular, the Committee shall
         have the authority:

                           (a) to select the Eligible Employees and Consultants
                  to whom Stock Options may from time to time be granted
                  hereunder;

                           (b) to determine whether and to what extent Stock
                  Options are to be granted hereunder to one or more Eligible
                  Employees or Consultants;

                           (c) to determine, in accordance with the terms of
                  this Plan, the number of shares of Common Stock to be covered
                  by each Stock Option granted hereunder;

                           (d) to determine the terms and conditions, not
                  inconsistent with the terms of this Plan, of any Stock Option
                  granted hereunder (including, but not limited to, the exercise
                  or purchase price, any restriction or limitation, any vesting
                  schedule or acceleration thereof and any forfeiture
                  restrictions or waiver thereof, regarding any Stock Option and
                  the shares of Common Stock relating thereto, based on such
                  factors, if any, as the Committee shall determine, in its sole
                  discretion);

                           (e) to determine whether and under what circumstances
                  a Stock Option may be settled in cash and/or Common Stock
                  under Section 6.3(d);

                           (f) to determine whether, to what extent and under
                  what circumstances to provide loans (which shall bear interest
                  at the rate the Committee shall provide) to Eligible Employees
                  and Consultants in order to exercise Stock Options under this
                  Plan;

                                        5
<PAGE>

                           (g) to determine whether a Stock Option is an
                  Incentive Stock Option or Non-Qualified Stock Option or
                  whether a Stock Option is intended to satisfy Section 162(m)
                  of the Code;

                           (h) to determine whether to require an Eligible
                  Employee or Consultant, as a condition of the granting of any
                  Stock Option, not to sell or otherwise dispose of shares of
                  Common Stock acquired pursuant to the exercise of a Stock
                  Option for a period of time as determined by the Committee, in
                  its sole discretion, following the date of the acquisition of
                  such Stock Option;

                           (i) to modify, extend or renew a Stock Option,
                  subject to Article IX herein, provided, however, that if a
                  Stock Option is modified, extended or renewed and thereby
                  deemed to be the issuance of a new Stock Option under the Code
                  or the applicable accounting rules, the exercise price of a
                  Stock Option may continue to be the original exercise price
                  even if less than the Fair Market Value of the Common Stock at
                  the time of such modification, extension or renewal; and

                           (j) to offer to buy out a Stock Option previously
                  granted, based on such terms and conditions as the Committee
                  shall establish and communicate to the Participant at the time
                  such offer is made.

                  3.3 Guidelines. Subject to Article IX hereof, the Committee
         shall have the authority to adopt, alter and repeal such administrative
         rules, guidelines and practices governing this Plan and perform all
         acts, including the delegation of its administrative responsibilities,
         as it shall, from time to time, deem advisable; to construe and
         interpret the terms and provisions of this Plan and any Option issued
         under this Plan (and any agreements relating thereto); and to otherwise
         supervise the administration of this Plan. The Committee may correct
         any defect, supply any omission or reconcile any inconsistency in this
         Plan or in any agreement relating thereto in the manner and to the
         extent it shall deem necessary to effectuate the purpose and intent of
         this Plan. The Committee may adopt special guidelines and provisions
         for persons who are residing in, or subject to, the taxes of, Foreign
         Jurisdictions to comply with applicable tax and securities laws and may
         impose any limitations and restrictions that it deems necessary to
         comply with the applicable tax and securities laws of such Foreign
         Jurisdictions. To the extent applicable, this Plan is intended to
         comply with Section 162(m) of the Code and the applicable requirements
         of Rule 16b-3 and shall be limited, construed and interpreted in a
         manner so as to comply therewith.

                  3.4 Decisions Final. Any decision, interpretation or other
         action made or taken in good faith by or at the direction of the
         Company, the Board or the Committee (or any of its members) arising out
         of or in connection with this Plan shall be within the absolute
         discretion of all and each of them, as the case may be, and shall be
         final, binding and conclusive on the Company and all employees and
         Participants and their respective heirs, executors, administrators,
         successors and assigns.

                                        6
<PAGE>

                  3.5 Reliance on Counsel. The Company, the Board or the
         Committee may consult with legal counsel, who may be counsel for the
         Company or other counsel, with respect to its obligations or duties
         hereunder, or with respect to any action or proceeding or any question
         of law, and shall not be liable with respect to any action taken or
         omitted by it in good faith pursuant to the advice of such counsel.

                  3.6 Procedures. If the Committee is appointed, the Board shall
         designate one of the members of the Committee as chairman and the
         Committee shall hold meetings, subject to the By-Laws of the Company,
         at such times and places as it shall deem advisable. A majority of the
         Committee members shall constitute a quorum. All determinations of the
         Committee shall be made by a majority of its members. Any decision or
         determination reduced to writing and signed by all the Committee
         members in accordance with the By-Laws of the Company, shall be fully
         as effective as if it had been made by a vote at a meeting duly called
         and held. The Committee shall keep minutes of its meetings and shall
         make such rules and regulations for the conduct of its business as it
         shall deem advisable.

                  3.7 Designation of Consultants/Liability.

                           (a) The Committee may designate employees of the
                  Company and professional advisors to assist the Committee in
                  the administration of this Plan and may grant authority to
                  officers to execute agreements or other documents on behalf of
                  the Committee.

                           (b) The Committee may employ such legal counsel,
                  consultants and agents as it may deem desirable for the
                  administration of this Plan and may rely upon any opinion
                  received from any such counsel or consultant and any
                  computation received from any such consultant or agent.
                  Expenses incurred by the Committee in the engagement of any
                  such counsel, consultant or agent shall be paid by the
                  Company. The Committee, its members and any employee of the
                  Company designated pursuant to paragraph (a) above shall not
                  be liable for any action or determination made in good faith
                  with respect to this Plan. To the maximum extent permitted by
                  applicable law, no officer of the Company or member or former
                  member of the Committee shall be liable for any action or
                  determination made in good faith with respect to this Plan or
                  any Option granted under it. To the maximum extent permitted
                  by applicable law or the Certificate of Incorporation or
                  By-Laws of the Company and to the extent not covered by
                  insurance, each officer and member or former member of the
                  Committee shall be indemnified and held harmless by the
                  Company against any cost or expense (including reasonable fees
                  of counsel reasonably acceptable to the Company) or liability
                  (including any sum paid in settlement of a claim with the
                  approval of the Company), and advanced amounts necessary to
                  pay the foregoing at the earliest time and to the fullest
                  extent permitted, arising out of any act or omission to act in
                  connection with this Plan, except to the extent arising out of
                  such officer's, member's or former member's own fraud or bad
                  faith. Such indemnification shall be in addition to any rights
                  of

                                        7
<PAGE>

                  indemnification the officers, directors or members or former
                  officers, directors or members may have under applicable law
                  or under the Certificate of Incorporation or By-Laws of the
                  Company or any Affiliate. Notwithstanding anything else
                  herein, this indemnification will not apply to the actions or
                  determinations made by an individual with regard to Options
                  granted to him or her under this Plan.

                                   ARTICLE IV

                           SHARE AND OTHER LIMITATIONS

                  4.1 Shares. The aggregate number of shares of Common Stock
         which may be issued or used for reference purposes under this Plan or
         with respect to which Stock Options may be granted shall not exceed
         475,000 shares of Common Stock (subject to any increase or decrease
         pursuant to Section 4.2) which may be either authorized and unissued
         Common Stock or Common Stock held in or acquired for the treasury of
         the Company or both. If any Stock Option granted under this Plan
         expires, terminates or is canceled for any reason without having been
         exercised in full or the Company repurchases any Stock Option, the
         number of shares of Common Stock underlying such unexercised or
         repurchased Stock Option shall again be available for the purposes of
         Options under this Plan. In determining the number of shares of Common
         Stock available for Non-Qualified Stock Options, if Common Stock has
         been delivered or exchanged by a Participant as full or partial payment
         to the Company for payment of the exercise price, or for payment of
         withholding taxes, or if the number shares of Common Stock otherwise
         deliverable has been reduced for payment of the exercise price or for
         payment of withholding taxes, the number of shares of Common Stock
         exchanged as payment in connection with the exercise or for withholding
         or reduced shall again be available for purposes of Non-Qualified Stock
         Options under this Plan.

                  4.2  Changes.

                           (a) The existence of this Plan and the Options
                  granted hereunder shall not affect in any way the right or
                  power of the Board or the stockholders of the Company to make
                  or authorize any adjustment, recapitalization, reorganization
                  or other change in the Company's capital structure or its
                  business, any merger or consolidation of the Company or any
                  Affiliate, any issue of bonds, debentures, preferred or prior
                  preference stock ahead of or affecting Common Stock, the
                  dissolution or liquidation of the Company or any Affiliate,
                  any sale or transfer of all or part of the assets or business
                  of the Company or any Affiliate or any other corporate act or
                  proceeding.

                           (b) Subject to the provisions of Section 4.2(d), in
                  the event of any such change in the capital structure or
                  business of the Company by reason of any stock split, reverse
                  stock split, stock dividend, combination or reclassification
                  of shares,
                                        8
<PAGE>

                  recapitalization, or other change in the capital structure of
                  the Company, merger, consolidation, spin-off, reorganization,
                  partial or complete liquidation, issuance of rights or
                  warrants to purchase any Common Stock or securities
                  convertible into Common Stock, or any other corporate
                  transaction or event having an effect similar to any of the
                  foregoing and effected without receipt of consideration by the
                  Company, then the aggregate number and kind of shares which
                  thereafter may be issued under this Plan, the number and kind
                  of shares or other property (including cash) to be issued upon
                  exercise of an outstanding Stock Option granted under this
                  Plan and the purchase price thereof shall be appropriately
                  adjusted consistent with such change in such manner as the
                  Committee may deem equitable to prevent substantial dilution
                  or enlargement of the rights granted to, or available for,
                  Participants under this Plan, and any such adjustment
                  determined by the Committee in good faith shall be final,
                  binding and conclusive on the Company and all Participants and
                  employees and their respective heirs, executors,
                  administrators, successors and assigns.

                           (c) Fractional shares of Common Stock resulting from
                  any adjustment in Options pursuant to Section 4.2(a) or (b)
                  shall be aggregated until, and eliminated at, the time of
                  exercise by rounding-down for fractions less than one-half and
                  rounding-up for fractions equal to or greater than one-half.
                  No cash settlements shall be made with respect to fractional
                  shares eliminated by rounding. Notice of any adjustment shall
                  be given by the Committee to each Participant whose Option has
                  been adjusted and such adjustment (whether or not such notice
                  is given) shall be effective and binding for all purposes of
                  this Plan.

                           (d) In the event of a merger or consolidation in
                  which the Company is not the surviving entity or in the event
                  of any transaction that results in the acquisition of
                  substantially all of the Company's outstanding Common Stock by
                  a single person or entity or by a group of persons and/or
                  entities acting in concert, or in the event of the sale or
                  transfer of all or substantially all of the Company's assets
                  (all of the foregoing being referred to as "Acquisition
                  Events"), then the Committee may, in its sole discretion,
                  terminate all outstanding Stock Options, effective as of the
                  date of the Acquisition Event, by delivering notice of
                  termination to each Participant at least 30 days prior to the
                  date of consummation of the Acquisition Event, in which case
                  during the period from the date on which such notice of
                  termination is delivered to the consummation of the
                  Acquisition Event, each such Participant shall have the right
                  to exercise in full all of his or her Stock Options that are
                  then outstanding (without regard to any limitations on
                  exercisability otherwise contained in the Stock Option
                  agreements), but any such exercise shall be contingent upon
                  and subject to the occurrence of the Acquisition Event, and,
                  provided that, if the Acquisition Event does not take place
                  within a specified period after giving such notice for any
                  reason whatsoever, the notice and exercise pursuant thereto
                  shall be null and void.

                                        9
<PAGE>

                  If an Acquisition Event occurs but the Committee does not
         terminate the outstanding Stock Options pursuant to this Section
         4.2(d), then the provisions of Section 4.2(b) shall apply.

                  4.3 Minimum Purchase Price. Notwithstanding any provision of
         this Plan to the contrary, if authorized but previously unissued shares
         of Common Stock are issued under this Plan, such shares shall not be
         issued for a consideration which is less than as permitted under
         applicable law.

                  4.4 Assumption of Options. Stock Options that were granted
         prior to the Effective Date under the Network Event Theater, Inc. 1996
         Stock Option Plan, the Network Event Theater, Inc. 1997 Stock Option
         Plan and the sixdegrees, inc. 1997 Incentive Stock Plan that were
         outstanding immediately prior to the Effective Date shall be assumed
         under the Plan by the Company as of the Effective Date and converted
         into Stock Options hereunder based on the Company's Common Stock in a
         manner determined by the Committee and in accordance with section
         2.1(c) of the Merger Agreement dated December 14, 1999 among the
         Company, Sixdegrees Acquisition Corp. and sixdegrees, inc. The terms of
         such Stock Options shall be governed by the terms of this Plan as of
         the Effective Date. Notwithstanding the foregoing, such Stock Options
         shall continue to be governed by the terms of the applicable agreement
         in effect prior to the Effective Date, except as adjusted to reflect
         the appropriate number of shares of Common Stock and the appropriate
         exercise price.

                                    ARTICLE V

                                   ELIGIBILITY

                  5.1 General Eligibility. All Eligible Employees and
         Consultants and prospective employees of and Consultants to the Company
         and its Affiliates are eligible to be granted Non-Qualified Stock
         Options and awards providing benefits similar to each of the foregoing
         designed to meet the requirements of Foreign Jurisdictions under this
         Plan. Eligibility for the grant of an Option and actual participation
         in this Plan shall be determined by the Committee in its sole
         discretion. The vesting and exercise of Options granted to a
         prospective employee or Consultant are conditioned upon such individual
         actually becoming an Eligible Employee or Consultant.

                  5.2 Incentive Stock Options. All Eligible Employees of the
         Company, its Subsidiaries and its Parent (if any) are eligible to be
         granted Incentive Stock Options under this Plan. Eligibility for the
         grant of an Option and actual participation in this Plan shall be
         determined by the Committee in its sole discretion.

                                       10
<PAGE>

                                   ARTICLE VI

                                  STOCK OPTIONS

                  6.1 Stock Options. Each Stock Option granted hereunder shall
         be one of two types: (i) an Incentive Stock Option intended to satisfy
         the requirements of Section 422 of the Code; or (ii) a Non-Qualified
         Stock Option.

                  6.2 Grants. The Committee shall have the authority to grant to
         any Eligible Employee one or more Incentive Stock Options,
         Non-Qualified Stock Options or both types of Stock Options. To the
         extent that any Stock Option does not qualify as an Incentive Stock
         Option (whether because of its provisions or the time or manner of its
         exercise or otherwise), such Stock Option or the portion thereof which
         does not qualify, shall constitute a separate Non-Qualified Stock
         Option. The Committee shall have the authority to grant any Consultant
         one or more Non-Qualified Stock Options. Notwithstanding any other
         provision of this Plan to the contrary or any provision in an agreement
         evidencing the grant of a Stock Option to the contrary, any Stock
         Option granted to an Eligible Employee of an Affiliate (other than an
         Affiliate which is a Parent or a Subsidiary) shall be a Non-Qualified
         Stock Option.

                  6.3 Terms of Stock Options. Stock Options granted under this
         Plan shall be subject to the following terms and conditions, and shall
         be in such form and contain such additional terms and conditions, not
         inconsistent with the terms of this Plan, as the Committee shall deem
         desirable:

                           (a) Exercise Price. The exercise price per share of
                  Common Stock shall be determined by the Committee, but shall
                  not be less than 100% of the Fair Market Value of the share of
                  Common Stock at the time of grant; provided, however, that if
                  an Incentive Stock Option is granted to a Ten Percent
                  Stockholder, the exercise price shall be no less than 110% of
                  the Fair Market Value of the Common Stock.

                           (b) Stock Option Term. The term of each Stock Option
                  shall be fixed by the Committee; provided, however, that no
                  Stock Option shall be exercisable more than 10 years after the
                  date such Stock Option is granted; and further provided that
                  the term of an Incentive Stock Option granted to a Ten Percent
                  Stockholder shall not exceed 5 years.

                           (c) Exercisability. Stock Options shall be
                  exercisable at such time or times and subject to such terms
                  and conditions as shall be determined by the Committee at
                  grant. If the Committee provides, in its discretion, that any
                  Stock Option is exercisable subject to certain limitations
                  (including, without limitation, that such Stock Option is
                  exercisable only in installments or within certain time
                  periods), the Committee may waive such limitations on the
                  exercisability at any time at or after
                                       11
<PAGE>

                  grant in whole or in part (including, without limitation,
                  waiver of the installment exercise provisions or acceleration
                  of the time at which such Stock Option may be exercised),
                  based on such factors, if any, as the Committee shall
                  determine, in its sole discretion.

                           (d) Method of Exercise. Subject to whatever
                  installment exercise and waiting period provisions apply under
                  subsection (c) above, Stock Options may be exercised in whole
                  or in part at any time and from time to time during the Stock
                  Option term by giving written notice of exercise to the
                  Committee specifying the number of shares to be purchased.
                  Such notice shall be accompanied by payment in full of the
                  purchase price as follows: (i) in cash or by check, bank draft
                  or money order payable to the order of the Company; (ii) if
                  the Common Stock is traded on a national securities exchange,
                  the Nasdaq Stock Market, Inc. or quoted on a national
                  quotation system sponsored by the National Association of
                  Securities Dealers, through a "cashless exercise" procedure
                  whereby the Participant delivers irrevocable instructions to a
                  broker to deliver promptly to the Company an amount equal to
                  the purchase price; or (iii) on such other terms and
                  conditions as may be acceptable to the Committee (including,
                  without limitation, the relinquishment of Stock Options or by
                  payment in full or in part in the form of Common Stock owned
                  by the Participant for a period of at least 6 months (and for
                  which the Participant has good title free and clear of any
                  liens and encumbrances) based on the Fair Market Value of the
                  Common Stock on the payment date as determined by the
                  Committee). No shares of Common Stock shall be issued until
                  payment therefor, as provided herein, has been made or
                  provided for.

                           (e) Incentive Stock Option Limitations. To the extent
                  that the aggregate Fair Market Value (determined as of the
                  time of grant) of the Common Stock with respect to which
                  Incentive Stock Options are exercisable for the first time by
                  an Eligible Employee during any calendar year under this Plan
                  and/or any other stock option plan of the Company, any
                  Subsidiary or any Parent exceeds $100,000, such Options shall
                  be treated as Non-Qualified Stock Options. In addition, if an
                  Eligible Employee does not remain employed by the Company, any
                  Subsidiary or any Parent at all times from the time an
                  Incentive Stock Option is granted until 3 months prior to the
                  date of exercise thereof (or such other period as required by
                  applicable law), such Stock Option shall be treated as a
                  Non-Qualified Stock Option. Should any provision of this Plan
                  not be necessary in order for the Stock Options to qualify as
                  Incentive Stock Options, or should any additional provisions
                  be required, the Committee may amend this Plan accordingly,
                  without the necessity of obtaining the approval of the
                  stockholders of the Company.

                           (f) Form, Modification, Extension and Renewal of
                  Stock Options. Subject to the terms and conditions and within
                  the limitations of this Plan, Stock Options shall be evidenced
                  by such form of agreement or grant as is approved by the
                  Committee, and the Committee may (i) modify, extend or renew
                  outstanding Stock

                                       12
<PAGE>

                  Options granted under this Plan (provided that the rights of a
                  Participant are not reduced without his consent), and (ii)
                  accept the surrender of outstanding Stock Options (up to the
                  extent not theretofore exercised) and authorize the granting
                  of new Stock Options in substitution therefor (to the extent
                  not theretofore exercised).

                           (g) Deferred Delivery of Common Shares. The Committee
                  may in its discretion permit Participants to defer delivery of
                  Common Stock acquired pursuant to a Participant's exercise of
                  an Option in accordance with the terms and conditions
                  established by the Committee.

                           (h) Other Terms and Conditions. Stock Options may
                  contain such other provisions, which shall not be inconsistent
                  with any of the terms of this Plan, as the Committee shall
                  deem appropriate including, without limitation, permitting
                  "reloads" such that the same number of Stock Options are
                  granted as the number of Stock Options exercised, shares used
                  to pay for the exercise price of Stock Options or shares used
                  to pay withholding taxes ("Reloads"). With respect to Reloads,
                  the exercise price of the new Stock Option shall be the Fair
                  Market Value on the date of the "reload" and the term of the
                  Stock Option shall be the same as the remaining term of the
                  Stock Options that are exercised, if applicable, or such other
                  exercise price and term as determined by the Committee.

                                   ARTICLE VII

                     NON-TRANSFERABILITY AND TERMINATION OF
                             EMPLOYMENT/CONSULTANCY

         7.1 Non-Transferability. No Stock Option shall be Transferable by the
Participant otherwise than by will or by the laws of descent and distribution.
All Stock Options shall be exercisable, during the Participant's lifetime, only
by the Participant. No Stock Option shall, except as otherwise specifically
provided by law or herein, be Transferable in any manner, and any attempt to
Transfer any such Stock Option shall be void, and no such Stock Option shall in
any manner be liable for or subject to the debts, contracts, liabilities,
engagements or torts of any person who shall be entitled to such Stock Option,
nor shall it be subject to attachment or legal process for or against such
person. Notwithstanding the foregoing, the Committee may determine at the time
of grant or thereafter that a Non-Qualified Stock Option that is otherwise not
transferable pursuant to this Section 7.1 is transferable to a "family member"
in whole or in part and in such circumstances, and under such conditions, as
specified by the Committee. A Non- Qualified Stock Option that is transferred to
a family member pursuant to the preceding sentence may not be subsequently
transferred otherwise than by will or by the laws of descent and distribution.
For purposes hereof, a "family member" shall mean any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the employee's household (other than a tenant

                                       13
<PAGE>

or employee), a trust in which these persons have more than 50% of the
beneficial interest, a foundation in which these persons (or the employee)
control the management of assets, and any other entity in which these persons
(or the employee) own more than 50% of the voting interests.

                  7.2 Termination of Employment or Termination of Consultancy.
         The following rules apply with regard to the Termination of Employment
         or Termination of Consultancy of a Participant, unless otherwise
         determined by the Committee at grant or, if no rights of the
         Participant are reduced, thereafter::

                                     (i) Termination by Reason of Death,
                  Disability or Retirement. If a Participant's Termination of
                  Employment or Termination of Consultancy is by reason of
                  death, Disability or Retirement, all Stock Options held by
                  such Participant may be exercised, to the extent exercisable
                  at the Participant's Termination of Employment or Termination
                  of Consultancy, by the Participant (or, in the case of death,
                  by the legal representative of the Participant's estate) at
                  any time within a period of one year from the date of such
                  Termination of Employment or Termination of Consultancy, but
                  in no event beyond the expiration of the stated terms of such
                  Stock Options; provided, however, that, in the case of
                  Retirement, if the Participant dies within such exercise
                  period, all unexercised Stock Options held by such Participant
                  shall thereafter be exercisable, to the extent to which they
                  were exercisable at the time of death, for a period of one
                  year from the date of such death, but in no event beyond the
                  expiration of the stated term of such Stock Options.

                                     (ii) Involuntary Termination Without Cause.
                  If a Participant's Termination of Employment or Termination of
                  Consultancy is by involuntary termination without Cause, all
                  Stock Options held by such Participant may be exercised, to
                  the extent exercisable at Termination of Employment or
                  Termination of Consultancy, by the Participant at any time
                  within a period of 90 days from the date of such Termination
                  of Employment or Termination of Consultancy, but in no event
                  beyond the expiration of the stated term of such Stock
                  Options.

                                     (iii) Voluntary Termination. If a
                  Participant's Termination of Employment or Termination of
                  Consultancy is voluntary, all Stock Options held by such
                  Participant may be exercised, to the extent exercisable at
                  Termination of Employment or Termination of Consultancy, by
                  the Participant at any time within a period of 90 days from
                  the date of such Termination of Employment or Termination of
                  Consultancy, but in no event beyond the expiration of the
                  stated terms of such Stock Options.

                                     (iv) Termination for Cause. If a
                  Participant's Termination of Employment or Termination of
                  Consultancy (A) is for Cause or (B) is a voluntary termination
                  (as provided in subsection (iii) above) at any time after an
                  event which would be grounds for a Termination of Employment
                  or Termination of Consultancy

                                       14
<PAGE>

                  for Cause, all Stock Options held by such Participant shall
                  thereupon terminate and expire as of the date of such
                  Termination of Employment or Termination of Consultancy.

                                  ARTICLE VIII

                          CHANGE IN CONTROL PROVISIONS

                  8.1 Benefits. In the event of a Change in Control of the
         Company, except as otherwise provided by the Committee upon the grant
         of a Stock Option the Participant shall be entitled to the following
         benefits:

                           (a) Except to the extent provided in the applicable
                  Stock Option agreement, the Participant's employment agreement
                  with the Company or an Affiliate, as approved by the
                  Committee, or other written agreement approved by the
                  Committee (as such agreement may be amended from time to
                  time), Options granted and not previously exercisable shall
                  not become exercisable upon a Change in Control.

                           (b) The Committee, in its sole discretion, may
                  provide for the purchase of any Stock Option by the Company or
                  an Affiliate for an amount of cash equal to the excess of the
                  Change in Control Price (as defined below) of the shares of
                  Common Stock covered by such Stock Options, over the aggregate
                  exercise price of such Stock Options. For purposes of this
                  Section 8.1, Change in Control Price shall mean the higher of
                  (i) the highest price per share of Common Stock paid in any
                  transaction related to a Change in Control of the Company, or
                  (ii) the highest Fair Market Value per share of Common Stock
                  at any time during the sixty (60) day period preceding a
                  Change in Control.

                           (c) Notwithstanding anything to the contrary herein,
                  unless the Committee provides otherwise at the time a Stock
                  Option is granted hereunder or thereafter, no acceleration of
                  exercisability shall occur with respect to such Stock Options
                  if the Committee reasonably determines in good faith, prior to
                  the occurrence of the Change in Control, that the Stock
                  Options shall be honored or assumed, or new rights substituted
                  therefor (each such honored, assumed or substituted stock
                  option hereinafter called an "Alternative Option"), by a
                  Participant's employer (or the parent or a subsidiary of such
                  employer) immediately following the Change in Control,
                  provided that any such Alternative Option must meet the
                  following criteria:

                                     (i) the Alternative Option must be based on
                           stock which is traded on an established securities
                           market, or which will be so traded within 30 days of
                           the Change in Control;

                                       15
<PAGE>

                                     (ii) the Alternative Option must provide
                           such Participant with rights and entitlements
                           substantially equivalent to or better than the
                           rights, terms and conditions applicable under such
                           Stock Option, including, but not limited to, an
                           identical or better exercise schedule; and

                                     (iii) the Alternative Option must have
                           economic value substantially equivalent to the value
                           of such Stock Option (determined at the time of the
                           Change in Control).

                           For purposes of Incentive Stock Options, any assumed
                  or substituted Stock Option shall comply with the requirements
                  of Treasury Regulation ss. 1.425-1 (and any amendments
                  thereto).

                           (d) Notwithstanding anything else herein, the
                  Committee may, in its sole discretion, provide for accelerated
                  vesting of an Option.

                  8.2 Change in Control. A "Change in Control" shall be deemed
         to have occurred:

                           (a) at the time any "person" as such term is used in
                  Sections 13(d) and 14(d) of the Exchange Act (other than the
                  Company, any trustee or other fiduciary holding securities
                  under any employee benefit plan of the Company, or any company
                  owned, directly or indirectly, by the stockholders of the
                  Company in substantially the same proportions as their
                  ownership of Common Stock of the Company), is or becomes the
                  owner (as defined in Rule 13d-3 under the Exchange Act),
                  directly or indirectly, of securities of the Company
                  representing 30% or more of the combined voting power of the
                  Company's then outstanding securities;

                           (b) during any period of two (2) consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board of Directors, and any new director (other than a
                  director designated by a person who has entered into an
                  agreement with the Company to effect a transaction described
                  in paragraph (a), (c), or (d) of this section) or a director
                  whose initial assumption of office occurs as a result of
                  either an actual or threatened election contest (as such term
                  is used in Rule 14a-11 of Regulation 14A promulgated under the
                  Exchange Act) or other actual or threatened solicitation of
                  proxies or consents by or on behalf of a person other than the
                  Board of Directors of the Company whose election by the Board
                  of Directors or nomination for election by the Company's
                  stockholders was approved by a vote of at least two-thirds of
                  the directors then still in office who either were directors
                  at the beginning of the two-year period or whose election or
                  nomination for election was previously so approved, cease for
                  any reason to constitute at least a majority of the Board of
                  Directors;

                           (c) a merger or consolidation of the Company with any
                  other corporation, other than a merger or consolidation which
                  would result in the voting securities of
                                       16
<PAGE>

                  the Company outstanding immediately prior thereto continuing
                  to represent (either by remaining outstanding or by being
                  converted into voting securities of the surviving entity) more
                  than 50% of the combined voting power of the voting securities
                  of the Company or such surviving entity outstanding
                  immediately after such merger or consolidation; provided,
                  however, that a merger or consolidation effected to implement
                  a recapitalization of the Company (or similar transaction) in
                  which no person (other than those covered by the exceptions in
                  (a) above) acquires more than 30% of the combined voting power
                  of the Company's then outstanding securities shall not
                  constitute a Change in Control of the Company; or

                           (d) at the time the stockholders of the Company
                  approve a plan of complete liquidation of the Company or an
                  agreement for the sale or disposition by the Company of all or
                  substantially all of the Company's assets other than the sale
                  or disposition of all or substantially all of the assets of
                  the Company to a person or persons who beneficially own,
                  directly or indirectly, at least 50% or more of the combined
                  voting power of the outstanding voting securities of the
                  Company at the time of the sale.

                                   ARTICLE IX

                        TERMINATION OR AMENDMENT OF PLAN

                  Notwithstanding any other provision of this Plan, the Board or
         the Committee may at any time, and from time to time, amend, in whole
         or in part, any or all of the provisions of this Plan (including any
         amendment deemed necessary to ensure that the Company may comply with
         any regulatory requirement referred to in Article XI), or suspend or
         terminate it entirely, retroactively or otherwise; provided, however,
         that, unless otherwise required by law or specifically provided herein,
         the rights of a Participant with respect to Options granted prior to
         such amendment, suspension or termination, may not be impaired without
         the consent of such Participant and, provided further, without the
         approval of the stockholders of the Company in accordance with the laws
         of the State of Delaware, solely to the extent required by the
         applicable provisions of Rule 16b-3 or Section 162(m) of the Code, or,
         solely to the extent applicable to Incentive Stock Options, Section 422
         of the Code, no amendment may be made which would (i) increase the
         aggregate number of shares of Common Stock that may be issued under
         this Plan; (ii) change the classification of Participants eligible to
         receive Stock Options under this Plan; (iii) decrease the minimum
         option price of any Stock Option; or (iv) extend the maximum option
         period under Section 6.3. In no event may this Plan be amended without
         the approval of the stockholders of the Company in accordance with the
         applicable laws of the State of Delaware to increase the aggregate
         number of shares of Common Stock that may be issued under this Plan,
         decrease the minimum exercise price of any Stock Option, or to make any
         other amendment that would require stockholder approval under the rules
         of any exchange

                                       17
<PAGE>

         or system on which the Company's securities are listed or traded at the
         request of the Company.

                  The Committee may amend the terms of any Option theretofore
         granted, prospectively or retroactively, but, subject to Article IV
         above or as otherwise specifically provided herein, no such amendment
         or other action by the Committee shall impair the rights of any holder
         without the holder's consent.

                                    ARTICLE X

                                  UNFUNDED PLAN

                  10.1 Unfunded Status of Plan. This Plan is intended to
         constitute an "unfunded" plan for incentive and deferred compensation.
         With respect to any payments as to which a Participant has a fixed and
         vested interest but which are not yet made to a Participant by the
         Company, nothing contained herein shall give any such Participant any
         rights that are greater than those of a general creditor of the
         Company.

                                   ARTICLE XI

                               GENERAL PROVISIONS

                  11.1 Legend. The Committee may require each person receiving
         shares pursuant to a Stock Option under this Plan to represent to and
         agree with the Company in writing that the Participant is acquiring the
         shares without a view to distribution thereof. In addition to any
         legend required by this Plan, the certificates for such shares may
         include any legend which the Committee deems appropriate to reflect any
         restrictions on Transfer.

                  All certificates for shares of Common Stock delivered under
         this Plan shall be subject to such stock transfer orders and other
         restrictions as the Committee may deem advisable under the rules,
         regulations and other requirements of the Securities and Exchange
         Commission, any stock exchange upon which the Common Stock is then
         listed or any national securities association system upon whose system
         the Common Stock is then quoted, any applicable Federal or state
         securities law, and any applicable corporate law, and the Committee may
         cause a legend or legends to be put on any such certificates to make
         appropriate reference to such restrictions.

                  11.2 Other Plans. Nothing contained in this Plan shall prevent
         the Board from adopting other or additional compensation arrangements,
         subject to stockholder approval if such approval is required; and such
         arrangements may be either generally applicable or applicable only in
         specific cases.

                                       18
<PAGE>

                  11.3 No Right to Employment/Consultancy. Neither this Plan nor
         the grant of any Option hereunder shall give any Participant or other
         employee or Consultant any right with respect to continuance of
         employment or Consultancy by the Company or any Affiliate, nor shall
         there be a limitation in any way on the right of the Company or any
         Affiliate by which an employee is employed or a Consultant is retained
         to terminate his employment or Consultancy at any time.

                  11.4 Withholding of Taxes. The Company shall have the right to
         deduct from any payment to be made to a Participant, or to otherwise
         require, prior to the issuance or delivery of any shares of Common
         Stock or the payment of any cash hereunder, payment by the Participant
         of, any Federal, state or local taxes required by law to be withheld.
         Upon making an election under Code Section 83(b), a Participant shall
         pay all required withholding to the Company.

                  Any such withholding obligation with regard to any Participant
         may be satisfied, subject to the consent of the Committee, by reducing
         the number of shares of Common Stock otherwise deliverable or by
         delivering shares of Common Stock already owned. Any fraction of a
         share of Common Stock required to satisfy such tax obligations shall be
         disregarded and the amount due shall be paid instead in cash by the
         Participant.

                  11.5 Listing and Other Conditions.

                           (a) As long as the Common Stock is listed on a
                  national securities exchange or system sponsored by a national
                  securities association, the issue of any shares of Common
                  Stock pursuant to an Option shall be conditioned upon such
                  shares being listed on such exchange or system. The Company
                  shall have no obligation to issue such shares unless and until
                  such shares are so listed, and the right to exercise any Stock
                  Option with respect to such shares shall be suspended until
                  such listing has been effected.

                           (b) If at any time counsel to the Company shall be of
                  the opinion that any sale or delivery of shares of Common
                  Stock pursuant to an Option is or may in the circumstances be
                  unlawful or result in the imposition of excise taxes on the
                  Company under the statutes, rules or regulations of any
                  applicable jurisdiction, the Company shall have no obligation
                  to make such sale or delivery, or to make any application or
                  to effect or to maintain any qualification or registration
                  under the Securities Act or otherwise with respect to shares
                  of Common Stock or Stock Options, and the right to exercise
                  any Stock Option shall be suspended until, in the opinion of
                  said counsel, such sale or delivery shall be lawful or will
                  not result in the imposition of excise taxes on the Company.

                           (c) Upon termination of any period of suspension
                  under this Section 11.5, any Stock Option affected by such
                  suspension which shall not then have expired or terminated
                  shall be reinstated as to all shares available before such
                  suspension and

                                       19
<PAGE>

                  as to shares which would otherwise have become available
                  during the period of such suspension, but no such suspension
                  shall extend the term of any Stock Option.

                  11.6 Governing Law. This Plan shall be governed and construed
         in accordance with the laws of the State of Delaware (regardless of the
         law that might otherwise govern under applicable Delaware principles of
         conflict of laws).

                  11.7 Construction. Wherever any words are used in this Plan in
         the masculine gender they shall be construed as though they were also
         used in the feminine gender in all cases where they would so apply, and
         wherever any words are used herein in the singular form they shall be
         construed as though they were also used in the plural form in all cases
         where they would so apply.

                  11.8 Other Benefits. No grant of an Option under this Plan
         shall be deemed compensation for purposes of computing benefits under
         any retirement plan of the Company or its subsidiaries nor affect any
         benefits under any other benefit plan now or subsequently in effect
         under which the availability or amount of benefits is related to the
         level of compensation.

                  11.9 Costs. The Company shall bear all expenses included in
         administering this Plan, including expenses of issuing Common Stock
         pursuant to any Options hereunder.

                  11.10 No Right to Same Benefits. The provisions of Options
         need not be the same with respect to each Participant, and such Options
         to individual Participants need not be the same in subsequent years.

                  11.11 Death/Disability. The Committee may in its discretion
         require the transferee of a Participant to supply it with written
         notice of the Participant's death or Disability and to supply it with a
         copy of the will (in the case of the Participant's death) or such other
         evidence as the Committee deems necessary to establish the validity of
         the transfer of an Option. The Committee may also require that the
         agreement of the transferee to be bound by all of the terms and
         conditions of this Plan.

                  11.12 Section 16(b) of the Exchange Act. All elections and
         transactions under this Plan by persons subject to Section 16 of the
         Exchange Act involving shares of Common Stock are intended to comply
         with any applicable exemptive condition under Rule 16b-3. The Committee
         may establish and adopt written administrative guidelines, designed to
         facilitate compliance with Section 16(b) of the Exchange Act, as it may
         deem necessary or proper for the administration and operation of this
         Plan and the transaction of business thereunder.

                  11.13 Severability of Provisions. If any provision of this
         Plan shall be held invalid or unenforceable, such invalidity or
         unenforceability shall not affect any other provisions

                                       20
<PAGE>

         hereof, and this Plan shall be construed and enforced as if such
         provisions had not been included.

                  11.14 Headings and Captions. The headings and captions herein
         are provided for reference and convenience only, shall not be
         considered part of this Plan, and shall not be employed in the
         construction of this Plan.

                                   ARTICLE XII

                             EFFECTIVE DATE OF PLAN

         The Plan shall become effective upon adoption by the Board, subject to
the approval of this Plan by the stockholders of the Company in accordance with
the requirements of the laws of the State of Delaware or such later date as
provided in the adopting resolution.

                                  ARTICLE XIII

                                  TERM OF PLAN

         No Option shall be granted pursuant to this Plan on or after the tenth
anniversary of the earlier of the date this Plan is adopted or the date of
stockholder approval, but Options granted prior to such tenth anniversary may
extend beyond that date.

                                       21

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