Document:

Exhibit 10.2

                              EMPLOYMENT AGREEMENT

     This  Employment  Agreement ("Agreement"), dated as of September 1, 2000 by
and  between EVOLUTION USA, INC., a Washington corporation, having an address of
6100 Wilshire Boulevard, Suite 201, Los Angeles, California 90048 (hereafter the
"Employer"),  and  GARY  L.  DIAMOND, an individual residing at 13578 Via Flora,
Apt.  G,  Delray  Beach  Florida  33484  (hereafter  the  "Employee").

     WITNESSETH:

     WHEREAS,  Employer  desires  to  hire  Employee  and Employee is willing to
render  services  to  the  Employer,  under  the  terms and conditions set forth
herein;  and

     WHEREAS,  Employee  acknowledges  that  as  a  result  of  his  position as
Executive  Vice  President,  Chief  Financial  Officer and Secretary, he will be
entrusted  with  Employer's  confidential  information,  trade  secrets  and
proprietary  processes  and  procedures;  and

     WHEREAS,  Employee  has  agreed that, as an inducement for Employer to hire
Employee  and  to  permit  the  Employee  access  to the Employer's confidential
information, trade secrets and proprietary processes and procedures necessary to
perform  his  work,  Employee  has  agreed  to  enter  into  this  Agreement;

     NOW, THEREFORE, in consideration of the mutual  covenants  and  agreements
contained  herein,  and  other  good and valuable consideration, the receipt and
sufficiency  of  which  are  hereby  acknowledged, the parties agree as follows:

     1)     TERM.  This  Agreement  shall  be effective as of the aforementioned
            ----
date  and  shall  be  for  an  initial  term  of  three  ("3") years and may be
terminated  by  Employer  at  any time subject to the termination provisions set
forth  in  Section  12  hereof.

     2)     DUTIES.  Employer  shall  employ  Employee  as  its Vice President,
            ------
Chief  Financial Officer and Secretary, and his duties and responsibilities will
be  commensurate  with  such  position.  In  the  performance  of his duties and
obligations  hereunder,  Employee  shall  report  to  the  Board of Directors of
Employer.  Employee  agrees  to  abide  by  all  bylaws,  policies,  practices,
procedures  or  rules  of  Employer,  as  they may be amended from time to time.

     3)     SERVICES AND BEST EFFORTS.  Employee agrees to his best efforts,
            -------------------------
energies  and  skill  to  the  discharge  of  the  duties  and  responsibilities
attributable  to his  position,  and to this end, he will devote sufficient time
and  attention  to  the  business  and  affairs  of  Employer.

     4)     BASE  COMPENSATION.  As  compensation  for  his  services  and
            ------------------
covenants  hereunder,  Employee  shall  receive  a  salary  payable  pursuant to
Employer's  normal  payroll  procedures  in  effect  from  time  to time, at the
following  rates:

     > $20,000  U.S.  Dollars  per  month  upon  execution  of  this  Agreement;
     > upon the earlier of the first anniversary hereof or the closing of a
       second round  of  funding,  whichever is earlier; the sum of $30,000
       Dollars per month;

<PAGE>
     > upon  the  second  anniversary  hereof,  $35,000  Dollars  per  month;

The  above  amounts  shall be less all necessary and required federal, state and
local  payroll  deductions  and  withholdings.

Section  5  NOT  USED

     6)     ISSUANCE  OF  COMMON  STOCK.  Employee  initially  shall  be granted
            ----------------------------
Five  Hundred  Thousand (500,000) shares of restricted Class B non-voting common
stock  of  Employer,  subject to dilution from outside investors on a pari passu
basis  with other equity holders.  Such shares shall be valued as founders stock
and shall vest with Employee over a period of eighteen (18) months from the date
of  execution  hereof,  on  a  quarterly  basis at the rate of 83,333 shares per
quarter.

     7)     OPTIONS. Employer SHALL  grant  to  Employee,  from  time  to  time,
            --------          -----
options to acquire  additional  equity  in  Employer, with the number of options
and price to be  determined  by  the  Board  of  Directors.

     8)     SALE OR MERGER - EFFECT  ON  SECTIONS  6)  AND 7).  In the event any
            --------------------------------------------------------------------
options or  stock  issuances  under  Sections  6)  and 7)  hereof, hereunder are
-----------------------------------------------------------------
not  vested at the time of a sale of substantially all of the assets or stock of
Employer, or a merger or other form of recapitalization resulting in a change of
control  of  Employer, all such options and issuance of stock shall become fully
vested  and  exercisable  at  such  time.

     9)     EMPLOYEE  BENEFITS.  During  his employment with  Employer, Employee
            ------------------
shall  be  entitled to participate in all benefit programs of Employer currently
existing  or  hereafter  made  available  to  Employer's executives and/or other
salaried  employees,  including,  but  not  limited  to,  disability, health and
medical  benefits,  retirement,  pension,  profit  sharing,  sick  leave, salary
continuation,  vacation  and  holidays, cellular telephone and all related costs
and expenses, or other employee benefit plans as are from time to time generally
made  available  to  employees of similar position with Employer pursuant to the
policies  of  Employer;  provided,  however,  that Employee shall be required to
comply  with the conditions attendant to coverage by such plans and shall comply
with  and  be  entitled  to  benefits  only  in  accordance  with  the terms and
conditions  of  such  plans.  Employer may withhold from any benefits payable to
Employee  all  federal,  state,  local  and  other taxes and amounts as shall be
permitted  or  required  to be withheld, pursuant to any applicable law, rule or
regulation.

     10)     VACATION.  Notwithstanding  the  provisions  of  Section  9) above,
             --------
Employee shall be entitled to three (3) weeks of vacation per year after one (1)
complete  year of employment, three (3) weeks of vacation per year after two (2)
complete  years of employment,.  The scheduling of any vacation shall be subject
to  the  needs  of  Employer.

     11)     BUSINESS EXPENSE REIMBURSEMENT.  During  the  term  of  employment,
             -------------------------------
Employee  shall  be entitled to receive proper reimbursement for all reasonable,
out-of-pocket expenses incurred by Employee (in accordance with the policies and
procedures  established  by  the  Company  for its senior executive officers) in
performing  the  services  hereunder,  provided  the  Employee properly accounts
therefor.

     12)     AUTOMOBILE  EXPENSE.  Employer  shall  grant  to  Employee a $1,000
             -------------------
monthly automobile  allowance,  plus  reimbursement  for expenses at the rate 10
cents per mile,  for  every  business  mile  traveled.

                                      - 2 -
<PAGE>
     13)     DEATH  AND  DISABILITY.
             ----------------------

     (A)     DEATH.  In  the  event  of  death  of  the  Employee  while
employed  by  Employer,  Employee's  monthly  base  salary  shall be paid to the
Employee's designated beneficiary, or in the absence of such designation, to the
estate  or  other legal representative (collectively "Designee") of the Employee
for  a  period of twelve (12) months from and after the date of death; provided,
however,  that Employer's obligation under this Paragraph 13A) shall not exceed,
in any event, the amount of any insurance proceeds received by Employer from any
insurance policy maintained by Employer on the life of Employee.  Employer shall
also  be  obligated to pay to said Designee, any accrued bonus to which Employee
would  have  been  entitled based upon the formula set forth in Section 5 above,
but  prorated  for  the  number of months in Employer's fiscal year during which
Employee  was  employed.  In  addition, beneficiary shall be entitled to receive
all  common  stock issued and issuable to Employee pursuant to Section 6) above.

     (B)     OTHER  DEATH  BENEFITS.  Any  other  death benefits to which
Employee or Employee's  estate  may  be  entitled  shall  be  pursuant  to and
determined in accordance  with  the  terms  of  the Employer's benefit programs
and plans.

     (C)     DISABILITY.  If,  during  the  term  of  Employee's employment with
Employer,  in  the  opinion  of  a duly licensed physician selected by Employer,
Employee,  because  of  physical  or  mental illness or incapacity, shall become
unable  to  perform the duties and services required of him under this Agreement
for a period of eight (8) consecutive weeks, or a period of twelve (12) weeks in
the  aggregate  during  any twelve-month period, Employer may, upon at least ten
(10)  days'  prior written notice given at any time after the expiration of such
eight-week  period  or  twelve-week  period (as the case may be), give notice to
Employee  of Employer's intention to terminate his employment as of such date as
may  be  set forth in the notice.  In the event of disability, as defined above,
the Employee shall be entitled to compensation in accordance with the Employer's
disability  compensation  practice for senior executives, including any separate
arrangement  or  policy  covering  the Employee, but in any event Employee shall
continue to receive his monthly base salary hereunder for a period of 60 (sixty)
days  following  the  date  of  disability.  Any  amounts  provided  for in this
Paragraph  13(C)  shall  be offset by any other long-term disability payments or
benefits  provided  to  Employee  by  Employer.

     Notwithstanding  any  provision  herein  to  the  contrary, if, following a
termination  of  employment  hereunder  due to disability as provided above, the
Employee  becomes re-employed, whether as an employee or consultant, any salary,
annual  bonuses  or  other  benefits earned by the Employee from such employment
shall  offset  any  salary continuation payments or benefits due to the Employee
hereunder  commencing  with  the  date  of  re-employment.

     14)     TERMINATION WITHOUT CAUSE. Employer may terminate this Agreement
             --------------------------
without  cause  upon  thirty  (30)  days  advance  written  notice  to Employee.
Employee  may  terminate  this  Agreement for any reason upon one hundred twenty
(120) days' advance written notice to Employer, provided, however, that Employee
has  been  employed  for  at  least  six  (6) months prior to the giving of such
notice.  Upon  any  such  termination:

     (A)     The  Employee  shall  receive,  for  a period of 12 (twelve) months
following  the  termination  date,  Employee's then current monthly base salary.
The  Employee  shall  be  entitled  to  continued health and medical benefits as
provided  in  Section  9 above or to reimbursement for the cost of providing the
Employee  with comparable benefit coverage during the term in which the Employee
is  receiving  payments  from  the  Employer  after termination pursuant to this
Section.  Such  benefit coverage, however, will be offset by comparable coverage
provided  to  the  Employee  in  connection  with  any  subsequent  employment.

                                      - 3 -
<PAGE>
     (B)     Notwithstanding  the  foregoing,  Employer's obligations under
Paragraph 14(A)  above  shall  be  null  and void if Employer does not receive
funding and therefore,  cannot  execute  its  business  plan.

     15)     TERMINATION  FOR  CAUSE.
             -----------------------

     (A)     Employer  may  terminate this Agreement immediately for "cause", as
such  term  is  defined below. Upon such termination, Employer shall be released
from  any and all further obligations under this Agreement, except that Employer
shall  be  obligated  to  pay  Employee  his  monthly  base  salary (but not any
benefits)  owing  to  Employee through the day on which Employee's employment is
terminated.

     (B)     For  the purposes of this Agreement, "cause" shall include, without
limitation,  the  following:

          (i)  Failure  or  refusal of, or neglect by, Employee to perform his
duties pursuant  to  this  Agreement;

          (ii)  Failure  or  refusal  of  Employee  to obey orders given by
Employer, provided that such orders are not, and (if followed) would not require
Employee  to  act,  in  violation  of  the  rules  of  the  applicable statutes,
regulations  or  rules  of  the  federal  government,  any  state  or  municipal
governmental  or  regulatory  agency or the rules or policies of any national or
regional  securities  exchange.

          (iii)  Misconduct  in  connection with the performance of any of
Employee's  duties,  including,  without  limitation,  theft,  embezzlement  or
misappropriation  of  funds  or  property of Employer, securing or attempting to
secure  personally any profit in connection with any transaction entered into on
behalf  of  Employer, misrepresentation to Employer, or any violation of laws or
regulations  to  which  Employer  is  subject;

          (iv)  Commission  by  Employee  of  an act involving moral turpitude,
dishonesty,  theft  or  unethical  business conduct, or conduct which impairs or
injures  the  reputation  of,  or  harms,  Employer;

          (v)   Disloyalty  by  Employee,  such  as  aiding  a  competitor;

          (vi)  Employee's  medically  confirmed dependence on or abuse of
alcohol or any  controlled  substance;

          (vii)  Failure  by  Employee  to  devote  his full time and best
efforts to Employer;

          (viii)  Any  breach  of  this  Agreement  by  Employee.

16)     NON-DISCLOSURE  OF  INFORMATION  AND  RESTRICTIVE  COVENANT.
        ------------------------------------------------------------

     (A)     Employee  acknowledges  that,  by  his  employment  with  Employer,
Employee  has been and will be in a confidential relationship with Employer, and
Employee  will  have  access  to  Confidential Information and Trade Secrets (as
defined  below)  of  Employer  and  Employer's past and present subsidiaries and
affiliates.

                                      - 4 -
<PAGE>
     "Confidential  Information"  shall  include,  but is not limited to, any
      -------------------------
and  all  information  (whether disclosed to Employee directly or indirectly, in
writing,  orally,  or by drawings or observation of parts or equipment) which is
of  a  confidential  or  proprietary nature designated or treated as such by the
Employer,  and  is  either  applicable  to,  or  related  in any way to: (i) the
financial  status,  plans or projections of the Company, its subsidiaries and/or
affiliates;  (ii)  technical  know-how,  ingredients,  concepts,  formulae  and
processes of the Company, its subsidiaries and/or affiliates; (iii) the research
and  development  or  investigations  of  the  Company,  its subsidiaries and/or
affiliates;  (iv)  marketing plans, strategies or business plans of the Company,
its  subsidiaries  and/or  affiliates;  or  (v) customer lists of the Company or
other  information  concerning  customers  or  vendors  of  the  Company,  its
subsidiaries  and/or  affiliates  not  in the public domain.  Information is not
confidential  or proprietary if it is in the public domain or subsequently comes
into  the  public  domain  through  no  fault  of  Employee.

     "Trade  Secret"  shall  include,  but  is  not  limited to, any information
      -------------
relating  to  the  Company's  (or its subsidiaries' and/or affiliates') business
including,  but  not  limited  to, ideas, inventions, technical or non-technical
data,  compilations,  computer  programs,  software, systems, designs, circuits,
ingredients,  formulae,  methods,  techniques,  processes,  financial  data,  or
financial  plans which (i) derives economic value, actual or potential, from not
being  generally  known  to,  and  not readily ascertainable by proper means by,
other  persons  or entities who can obtain economic value from its disclosure or
use;  and which (ii) is or has been the subject of efforts by the Company, which
were  or  are  reasonable  under  the  circumstances,  to  maintain its secrecy.

     (B)     Employee will not, during his employment or at any time thereafter,
use,  publish,  reproduce  or  disclose  to  any  third  party, Trade Secrets or
Confidential  Information of Employer or Employer's past or present subsidiaries
and affiliates, including, but not limited to, Confidential Information or Trade
Secrets  belonging  or relating to Employer, or its past or present subsidiaries
and  affiliates,  customers,  clients and suppliers or proprietary processes and
procedures  of  Employer,  or  its  past or present subsidiaries and affiliates,
customers,  clients  and  suppliers.  Proprietary processes and procedures shall
include, but shall not be limited to, all information which is known or intended
to  be  known  only by employees of Employer or its past or present subsidiaries
and  affiliates,  or  others in a confidential relationship with Employer or its
past  or  present subsidiaries and affiliates, which relate to business matters.

     (C)     Employee  will  not,  during  his  employment  and  for a period of
eighteen  (18)  months  after  termination of his employment, in any state where
Employer  engages  in  business or in e-commerce involving ALL LINES OF BUSINESS
MORE  FULLY DESCRIBED IN THE EMPLOYER'S BUSINESS PLAN COMPLETED AND EFFECTIVE AS
OF  OCTOBER  31, 2000, directly or indirectly, under any circumstance other than
at  the  direction  and  for  the  benefit  of  Employer,  its  subsidiaries  or
affiliates, engage in or participate in any business activity (including but not
limited  to  acting  as  a  director,  officer,  employee,  agent,  independent
contractor,  partner,  consultant,  licensor,  licensee, franchisor, franchisee,
proprietor,  syndicate  member, shareholder or creditor, or with a person having
any  other  relationship  with any other business, Employer, firm, occupation or
business  activity)  that  is,  directly  or  indirectly,  competitive  with any
business  carried  on  by Employer or its subsidiaries and affiliates during the
term  of  this  Agreement.

     (D)     Employee  acknowledges  and agrees that customers, suppliers and/or
clients  referred  to  in  this  Section  16  means  each and every corporation,
employer,  business  or  other  entity or person with or to whom Employer or its
past  or  present  subsidiaries and affiliates has had a relationship within the
three-year period preceding the termination date of Employee's employment, or to
whom  any presentation, offer or other proposal had been made by Employer or its
past  or  present subsidiaries and affiliates, and not affirmatively rejected as
of  the  Employee's  termination  date.

                                      - 5 -
<PAGE>
     (E)     Nothing  contained  in  this  Section  16  shall  be  construed  as
prohibiting Employee from being engaged by a client, customer or supplier of the
Employer upon his termination of employment by Employer; provided, however, that
such  engagement  is  in  compliance  with  the  terms  of  this  Section  14.

     (F)     It  is  expressly  agreed  by Employee that the nature and scope of
each  of  the  provisions  set forth above in this Section 16 are reasonable and
necessary.  If, for any reason, any aspect of the above provisions as they apply
to  Employee  is  determined  by  a  court  of  competent  jurisdiction  to  be
unreasonable  or  unenforceable,  the  provisions  shall only be modified to the
minimum extent required to make the provisions reasonable and/or enforceable, as
the  case  may  be.  Employee acknowledges and agrees that his services are of a
unique  character  and  expressly  grants  to  the  Employer or any successor or
assigns  the  right to enforce the provisions of this Section 14 through the use
of  all  remedies  available at law or in equity, including, but not limited to,
injunctive  relief.

     (G)     This  Section  16  and  Sections  17,  18, 19,  and 20 hereof shall
survive the expiration  or  termination  of  this  Agreement  for  any  reason.

     17)     EMPLOYER  PROPERTY.  (A)  Any  works,  patents,  inventions,
             ------------------
discoveries,  applications,  processes,  know-how or other intellectual property
(collectively,  "Intellectual  Property")  designed,  devised, planned, applied,
created,  discovered  or  invented  by  Employee  in  the  course  of Employee's
employment  under  this  Agreement  and  which  pertain  to  any  aspect  of the
Employer's  business  shall  be  the sole and absolute property of Employer, and
Employee  shall  promptly  report  the  same  to Employer.  Without limiting the
foregoing,  Employee  agrees  that any and all Intellectual Property and any and
all  Confidential  Information  and  Trade  Secrets developed, made, formulated,
written,  invented,  coded or otherwise originated in any way by Employee, alone
or  with others, in connection with Employee's employment with Employer, (and/or
its  past  or  present subsidiaries and affiliates) shall be deemed to be "works
for hire" under the Copyright Act of 1976 and the sole and exclusive property of
Employer.  To  the  extent  that  any  such  Intellectual Property, Confidential
Information  or  Trade  Secrets  shall  for any reason be considered not to be a
"work  for  hire"  for  U.S.  copyright  law  purposes, Employee hereby conveys,
transfers  and  assigns  to Employer all right, title and interest that Employee
may  have  now  or  in  the  future  pertaining  to  such Intellectual Property,
Confidential  Information  and  Trade  Secrets, including but not limited to all
copyrights and other intellectual property rights pertaining to the Intellectual
Property,  Confidential  Information  and  Trade  Secrets.  Upon  the request of
Employer,  Employee  shall  promptly  execute  all  instruments  and  documents
necessary  to  evidence  such  conveyance,  transfer  and  assignment,  which
instruments  and  documents  shall  be prepared at the sole expense of Employer.
Nothing  contained  in  this  Agreement  shall  be  construed  as granting to or
conferring  on  Employee  any  rights  (by  license  or  otherwise) in or to any
Intellectual  Property,  Confidential  Information  and  Trade  Secrets.

     (B)     Notwithstanding  Paragraph 17(A) above, Employee  acknowledges  and
understands  that  the  provisions  of  this  Agreement  requiring assignment of
inventions  to  Employer do not apply to any invention which qualifies fully for
protection  under  the  provisions of Revised Code of Washington ("RCW") Section
49.44.140 (a copy of which is attached hereto as Exhibit A).  Employee agrees to
                                                 ---------
advise  Employer  promptly in writing of any invention(s) that Employee believes
meet  the  criteria  in  RCW  49.44.140.

     (C)     All  records,  files,  lists,  including  computer-generated lists,
drawings,  documents, software, equipment and similar items relating to Employer
business  which Employee shall prepare or receive from Employer shall remain the
sole and exclusive property of Employer. Upon any termination of this Agreement,
Employee  shall  promptly  return  to  Employer  all property of Employer in his
possession.  Employee  further  represents  that he will not copy or cause to be
copied,  print  out  or cause to be printed out any software, documents or other
materials  originating  with  or  belonging  to Employer.  Employee additionally
represents  that,  upon termination of his employment with Employer, he will not
retain  in  his  possession  any  such software, documents or other materials or
copies  in  machine-  or  human-readable  form.

                                      - 6 -
<PAGE>
     18)     REMEDIES.  It is  mutually  understood  and  agreed that Employee's
             --------
services  are  special,  unique,  unusual,  extraordinary and of an intellectual
character  giving  them a peculiar value, the loss of which cannot be reasonably
or  adequately  compensated in damages in an action at law.  Accordingly, in the
event  of  any  breach of this Agreement by Employee, including, but not limited
to,  the  breach of the non-disclosure, non-solicitation and non-compete clauses
under  Section  16 hereof, the Employer shall be entitled to equitable relief by
way  of injunction or otherwise in addition to any damages which Employer may be
entitled  to  recover.

     19)     REPRESENTATIONS,  WARRANTIES AND COVENANTS OF EMPLOYEE;
             -------------------------------------------------------
             INDEMNIFICATION.
             ----------------

     (B)     In  order to induce Employer to enter into this Agreement, Employee
hereby  represents  and  warrants  to  Employer, and covenants with Employer, as
follows:  i)  Employee  has the legal capacity and unrestricted right to execute
and deliver this Agreement and to perform all of his obligations hereunder; (ii)
the  execution and delivery of this Agreement by Employee and the performance of
his  obligations hereunder will not violate or be in conflict with any fiduciary
or  other  duty,  instrument,  agreement,  document,  arrangement  or  other
understanding  to which Employee is a party or by which he is or may be bound or
subject;  (iii)  Employee is not a party to any instrument, agreement, document,
arrangement  or  other  understanding  with  any  person  (other  than Employer)
requiring  or  restricting the use or disclosure of any confidential information
or  the  provision  of  any  employment,  consulting  or  other  services;

     (C)     Employee  hereby  agrees  to  protect,  defend,  indemnify and hold
harmless  Employer  from  and  against  any  and  all losses, costs, damages and
expenses  (including,  without  limitation,  its  reasonable  attorneys'  fees)
incurred or suffered by Employer resulting from any breach by Employee of any of
his  representations  or  warranties  set  forth  herein.

      20)     ARBITRATION  OF  CLAIMS  AND  CONTROVERSIES; ATTORNEYS' FEES;
              -------------------------------------------------------------
              INJUNCTIVE RELIEF.
              ------------------

     (A)     Subject to Paragraph 16(F) above and Section 18 above, any claim or
controversy  between  Employer  and  Employee arising out of or relating to this
Agreement or the breach hereof and/or Employee's employment with Employer and/or
any  termination  thereof  shall  be submitted to arbitration to be held in King
County,  Washington  or such other place as mutually agreed to by the parties in
accordance  the  rules  of  the  American  Arbitration  Association.

     (B)     Nothing in this Agreement shall limit the right of Employer to seek
temporary or preliminary injunctive relief in any federal or state court in King
County,  Washington,  or  in  any  other  federal, state or foreign court having
jurisdiction  thereof,  to  enforce  any  right  under  this  Agreement.

     (C)     In  the  event of any arbitration or litigation arising out of this
Agreement,  the prevailing party shall be entitled to an award of its attorneys'
fees  and  costs  (including  any  fees  and  costs  incurred  in  any appellate
proceedings)  against  the  non-prevailing  party.

     (D)     To  the  fullest  extent  permitted  by  applicable law, each party
hereby  waives  any  right(s)  to  seek  or  be  awarded  punitive  damages.

                                      - 7 -
<PAGE>
     21)     NOTICES.  (A)  Notices by Employee to Employer shall be valid only
             -------
if  in writing and shall be deemed to be duly given only if personally delivered
or  deposited  in  the  U.S.  mail by Certified Mail with Return Receipt service
requested,  and  addressed  to  each  of  Employer and Employer's legal counsel,
separately,  at  the following addresses (or at such other address(es) as may be
designated by notice to Employee given in accordance with this Paragraph 21(A)):

     If  to  Employer:          EVOLUTION  USA,  INC.:
                                6100  Wilshire  Boulevard,  Suite  201
                                Los  Angeles,  California  90048
                                Attention:  Gary  L.  Diamond

     With  a  copy  to:         Monahan  &  Biagi,  P.L.L.C.
                                701  Fifth  Avenue,  Suite  5701
                                Seattle,  Washington  98104
                                Attention:  James  F.  Biagi,  Jr.

     If  to  Employee:          Gary  L.  Diamond
                                13578  Via  Flora,  Apt  G
                                Delray  Beach,  Florida,  33484

     (B)     Notices  by  Employer to Employee shall be valid only if in writing
and  shall  be deemed to be duly given if delivered to Employee personally or by
United  States  Postal  Service First Class Mail at the address set forth at the
beginning  of  this  Agreement (or at such other address as may be designated by
notice  to  the  Employer  given  in  accordance  with  this  Paragraph  20(B)).

     22)     INTERPRETATION,  HEADINGS.  The  parties  acknowledge and agree
             -------------------------
that  the terms and provisions of this Agreement have been negotiated, shall be
construed  fairly  as to all parties hereto, and shall not be construed in favor
of  or against any party.  The section headings contained 'in this Agreement are
for  reference  purposes only and shall not affect the meaning or interpretation
of  this  Agreement.

     23)     SUCCESSORS  AND  ASSIGNS;  ASSIGNMENT;  INTENDED BENEFICIARIES.
             --------------------------------------------------------------
Neither  this  Agreement,  nor  any  of  Employee's  rights,  powers,  duties or
obligations  hereunder,  may  be  assigned by Employee.  This Agreement shall be
binding  upon  and  inure  to  the  benefit  of Employee and his heirs and legal
representatives  and Employer, and its successors.  Successors of Employer shall
include, without limitation, any corporation or corporations acquiring, directly
or  indirectly,  all  or substantially all of the assets of Employer, whether by
merger,  consolidation,  purchase,  lease or otherwise, and such successor shall
thereafter  be  deemed  "Employer  "  for  the  purpose  hereof.

     24)     NO WAIVER BY ACTION, CUMULATIVE RIGHTS, ETC.  Any waiver or
             -------------------------------------------
consent from Employer with respect to any term or provision of this Agreement or
any  other aspect of Employee's conduct or employment shall be effective only in
the specific instance and for the specific purpose for which given and shall not
be  deemed,  regardless of frequency given, to be a further or continuing waiver
or  consent.  The  failure  or delay of Employer at any time or times to require
performance  of,  or  to  exercise  any  of  its powers, rights or remedies with
respect  to,  any  term  or  provision  of this Agreement or any other aspect of
Employee's  conduct  or  employment  in no manner (except as otherwise expressly
provided  herein)  shall  affect Employer's right at a later time to enforce any
such  term  or  provision.

     25)     SEVERABILITY.  Except as otherwise provided for in this Agreement,
             ------------
if  any  provision of this Agreement shall be unenforceable under any applicable
law, then notwithstanding such unenforceability, the remainder of this Agreement
shall  continue  in  full  force  and  effect.

     26)     COUNTERPARTS;  GOVERNING  LAW;  AMENDMENTS,  ENTIRE  AGREEMENT.
             ---------------------------------------------------------------
This  Agreement  may be executed in two counterpart copies, each of which may be
executed  by  one  of the parties hereto, but all of which, when taken together,
shall  constitute  a  single  agreement  binding upon all of the parties hereto.
This  Agreement and all other aspects of Employee's employment shall be governed
by  and construed in accordance with the applicable laws pertaining in the State
of  Washington.  Each  and  every  modification  and amendment of this Agreement
shall  be in writing and signed by the Employee and the Employer, and any waiver
of,  or  consent  to any departure from, any term or provision of this Agreement
shall  be  in  writing and signed by each affected party hereto.  This Agreement
contains  the  entire  agreement  of  the  parties  and  supersedes  all  prior
representations,  agreements  and understandings, oral or otherwise, between the
parties  with  respect  to  the  matters  contained  herein.

                                      - 8 -
<PAGE>
     27)     MISCELLANEOUS.  Employee represents and agrees that he fully
             -------------
understands  his right to discuss all aspects of this Agreement with his private
attorney;  that  to  the  extent, if any, that he desired, he availed himself of
this  right-,  that  he  has  carefully  read  and  fully understands all of the
provisions  of  the  Agreement;  that he is competent to execute this Agreement,
that his agreement to execute this Agreement has not been obtained by any duress
and  that  he  freely  and voluntarily enters into it, and that he has read this
document  in  its  entirety  and  fully  understands  the  meaning,  intent  and
consequences  of  this  document which is that it is an agreement of employment.

     IN  WITNESS  THEREOF,  the  parties  have executed this Agreement as of the
______  day  of  ___________________,  2000.

EMPLOYER:     EVOLUTION  USA,  INC.
---------

              /s/  George  Fleming
              ___________________________________
              By:  George  Fleming
              Its:  Chief  Executive  Officer

EMPLOYEE:
---------

              /s/  Gary  L.  Diamond
              ____________________________________
              GARY  L.  DIAMOND

                                      - 9 -
<PAGE>
                                    EXHIBIT A
                                    ---------

                  REVISED CODE OF WASHINGTON SECTION 49.44.140
                  --------------------------------------------

RCW  49.44.140.  REQUIRING  ASSIGNMENT  OF  EMPLOYEE'S  RIGHTS  TO
INVENTIONS--CONDITIONS

     (1)  A provision in an employment agreement which provides that an employee
shall  assign or offer to assign any of the employee's rights in an invention to
the  employer  does  not apply to an invention for which no equipment, supplies,
facilities,  or  trade secret information of the employer was used and which was
developed  entirely on the employee's own time, unless (a) the invention relates
(i)  directly  to the business of the employer, or (ii) to the employer's actual
or  demonstrably  anticipated  research  or  development,  or  (b) the invention
results from any work performed by the employee for the employer.  Any provision
which  purports  to  apply  to  such  an invention is to that extent against the
public  policy  of  this  state  and  is  to that extent void and unenforceable.

     (2)  An  employer shall not require a provision made void and unenforceable
by  subsection  (1)  of  this section as a condition of employment or continuing
employment.

     (3)  If  an  employment  agreement  entered  into  after September 1, 1979,
contains  a  provision  requiring  the  employee to assign any of the employee's
rights in any invention to the employer, the employer must also, at the time the
agreement  is  made,  provide  a  written  notification to the employee that the
agreement  does  not  apply  to  an  invention for which no equipment, supplies,
facility,  or  trade  secret  information of the employer was used and which was
developed  entirely on the employee's own time, unless (a) the invention relates
(i)  directly  to the business of the employer, or (ii) to the employer's actual
or  demonstrably  anticipated  research  or  development,  or  (b) the invention
results  from  any  work  preformed  by  the  employee  for  the  employer.

                                      - 10 -
<PAGE>Exhibit 4.5

                            INTERACTIVE NETWORK, INC.

                             1988 STOCK OPTION PLAN
                       (AS AMENDED THROUGH JULY 17, 1995)

         1. PURPOSES OF THE PLAN. The purposes of this Stock Option Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentives to Employees, Non-Employee
Directors and Consultants of the Company and its Subsidiaries, and to promote
the success of the Company's business. Options granted hereunder may be either
Incentive Stock Options or Nonstatutory Stock Options at the discretion of the
Committee.

         2. DEFINITIONS. As used herein, and in any Option granted hereunder,
the following definitions shall apply:

                  (a) "BOARD" shall mean the Board of Directors of the Company.

                  (b) "CODE" shall mean the Internal Revenue Code of 1986, as
amended.

                  (c) "COVERED EMPLOYEE" means an Employee who is a "covered
employee" under Section 162(m)(3) of the Code.

                  (d) "COMMON STOCK" shall mean the Common Stock of the Company.

                  (e) "COMPANY" shall mean Interactive Network, Inc.

                  (f) "COMMITTEE" shall mean the Committee appointed by the
Board in accordance with paragraph (a) of Section 4 of the Plan. If the Board
does not appoint or ceases to maintain a Committee, the term "Committee" shall
refer to the Board.

                  (g) "CONSULTANT" shall mean any independent contractor
retained to perform services for the Company.

                  (h) "CONTINUOUS EMPLOYMENT" shall mean the absence of any
interruption or termination of service as an Employee or Non-Employee Director
by the Company or any Subsidiary. For purposes of the preceding sentence,
service shall not be considered interrupted during any period of vacation, sick
leave, military leave or any other leave of absence approved by the Board or in
the case of transfers between locations of the Company or between the Company,
its Subsidiaries or its successor.

                  (i) "DISINTERESTED PERSON" shall mean a person who has not at
any time within one year prior to service as a member of the Committee (or
during such service) been granted or awarded Options or other equity securities
pursuant to the Plan or any other plan of the Company or any Subsidiary.
Notwithstanding the foregoing, a member of the Committee shall not fail to be a
Disinterested Person merely because he or she participates in a plan meeting the
requirements of Rule 16b-3(c)(2)(i)(A) or (B) promulgated under the Exchange
Act.

                  (j) "EMPLOYEE" shall mean any person, including officers
(whether or not they are directors), employed by the Company or any Subsidiary.

                  (k) "EXCHANGE ACT" shall mean the Securities Exchange Act of
1934, as amended.

                  (l) "INCENTIVE STOCK OPTION" shall mean any option granted
under this Plan and any other option granted to an Employee in accordance with
the provisions of Section 422 of the Code, and the regulations promulgated
thereunder.

                                       1
<PAGE>

                  (m) "NON-EMPLOYEE DIRECTOR" shall mean any director of the
Company or any Subsidiary who is not employed by the Company or such Subsidiary.

                  (n) "NONSTATUTORY STOCK OPTION" shall mean any Option granted
under the Plan that is not an Incentive Stock Option.

                  (o) "OPTION" shall mean a stock option granted pursuant to the
Plan.

                  (p) "OPTION AGREEMENT" shall mean a written agreement between
the Company and the Optionee regarding the grant and exercise of Options to
purchase Shares and the terms and conditions thereof as determined by the
Committee pursuant to the Plan.

                  (q) "OPTIONED SHARES" shall mean the Common Stock subject to
an Option.

                  (r) "OPTIONEE" shall mean an Employee, Non-Employee Director
or Consultant who receives an Option.

                  (s) "PARENT" shall mean a "parent corporation," whether now or
hereafter existing, as defined by Section 425(e) of the Code.

                  (t) "PERFORMANCE-BASED COMPENSATION" means compensation
qualifying as "performance-based compensation" under Section 162(m) of the Code.

                  (u) "PLAN" shall mean this 1988 Stock Option Plan.

                  (v) "REGISTRATION DATE" shall mean the effective date of the
first registration statement filed by the Company, pursuant to Section 12(g) of
the Exchange Act, with respect to any class of the Company's equity securities.

                  (w) "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended.

                  (x) "SHARE" shall mean a share of the Common Stock, as
adjusted in accordance with Section 11 of the Plan.

                  (y) "SUBSIDIARY" shall mean a "subsidiary corporation,"
whether now or hereafter existing, as defined in Section 425(f) of the Code.

                                       2
<PAGE>

         3. STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 11
of the Plan, the maximum aggregate number of Shares which may be optioned and
sold under the Plan is 5,000,000 Shares. The Shares may be authorized but
unissued or reacquired shares of Common Stock. If an Option expires or becomes
unexercisable for any reason without having been exercised in full, the Shares
which were subject to the Option but as to which the Option was not exercised
shall become available for other Option grants under the Plan, unless the Plan
shall have been terminated.

         4. ADMINISTRATION OF THE PLAN.

                  (a) PROCEDURE. The Plan shall be administered by the Board.
The Board may appoint a Committee consisting of not less than two (2) members of
the Board to administer the Plan, subject to such terms and conditions as the
Board may prescribe. Once appointed, the Committee shall continue to serve until
otherwise directed by the Board. From time to time, the Board may increase the
size of the Committee and appoint additional members thereof, remove members
(with or without cause) and appoint new members in substitution therefor, fill
vacancies, however caused, and remove all members of the Committee and,
thereafter, directly administer the Plan. Members of the Board or Committee who
are either eligible for Options or have been granted Options may vote on any
matters affecting the administration of the Plan or the grant of Options
pursuant to the Plan, except that no such member shall act upon the granting of
an Option to himself, but any such member may be counted in determining the
existence of a quorum at any meeting of the Board or the Committee during which
action is taken with respect to the granting of an Option to him or her.

         The Committee shall meet at such times and places and upon such notice
as the Chairperson determines. A majority of the Committee shall constitute a
quorum. Any acts by the Committee may be taken at any meeting at which a quorum
is present and shall be by majority vote of those members entitled to vote.
Additionally, any acts reduced to writing or approved in writing by all of the
members of the Committee shall be valid acts of the Committee.

                  (b) PROCEDURE AFTER REGISTRATION DATE.

                           (i) ADMINISTRATION AFTER THE REGISTRATION DATE.
Notwithstanding subsection (a) above, after the date of registration of the
Company's Common Stock on a national securities exchange or the Registration
Date, the Plan shall be administered either by: (A) the full Board, provided
that all members of the Board are Disinterested Persons; or (B) a Committee of
two (2) or more directors, each of whom is a Disinterested Person. After such
date, the Board shall take all action necessary to administer the Plan in
accordance with the then effective provisions of Rule 16b-3 promulgated under
the Exchange Act, provided that any amendment to the Plan required for
compliance with such provisions shall be made consistent with the provisions of
Section 13 of the Plan, and said regulations. After such date, however, Options
can be granted to members of the Board or the Committee only if: (X) the Plan is
being administered by a Committee consisting solely of Disinterested Persons; or
(Y) a majority of the Board and a majority of the Directors acting with respect
to such option grants consists of Disinterested Persons.

                                       3
<PAGE>

                           (ii) ADMINISTRATION WITH RESPECT TO COVERED
EMPLOYEES. Notwithstanding the foregoing, grants of Options to any Covered
Employee intended to qualify as Performance-Based Compensation shall be made
only by a Committee (or subcommittee of a Committee) which is comprised solely
of two or more directors eligible to serve on a committee granting Options
qualifying as Performance-Based Compensation. In the case of such Options
granted to Covered Employees, references to the "Administrator" or to a
"Committee" shall be deemed to be references to such Committee or subcommittee.

                  (c) POWERS OF THE COMMITTEE. Subject to the provisions of the
Plan, the Committee shall have the authority: (i) to determine, upon review of
relevant information, the fair market value of the Common Stock; (ii) to
determine the exercise price of Options to be granted, the Employees, Directors
or consultants to whom and the time or times at which Options shall be granted,
and the number of Shares to be represented by each Option; (iii) to interpret
the Plan; (iv) to prescribe, amend and rescind rules and regulations relating to
the Plan; (v) to determine the terms and provisions of each Option granted under
the Plan (which need not be identical) and, with the consent of the holder
thereof, to modify or amend any Option; (vi) to authorize any person to execute
on behalf of the Company any instrument required to effectuate the grant of an
Option previously granted by the Committee; (vii) to accelerate an exercise date
of any Option subject to the provisions of Section 9(a) of the Plan; (viii) to
determine whether Options granted under the Plan will be Incentive Stock Options
or Nonstatutory Stock Options; and (ix) to make all other determinations deemed
necessary or advisable for the administration of the Plan.

                  (d) EFFECT OF COMMITTEE'S DECISION. All decisions,
determinations and interpretations of the Committee shall be final and binding
on all potential or actual Optionees, any other holder of an Option or other
equity security of the Company and all other persons.

         5. ELIGIBILITY.

                  (a) PERSONS ELIGIBLE FOR OPTIONS. Options under the Plan may
be granted only to Employees, Non-Employee Directors or Consultants. Incentive
Stock Options may be granted only to Employees. An Employee who has been granted
an Option, if he or she is otherwise eligible, may be granted an additional
Option or Options. However, the aggregate fair market value (determined in
accordance with the provisions of Section 8(a) of the Plan) of the Shares
subject to one or more Incentive Stock Option grants that are exercisable for
the first time by an Optionee during any calendar year (under all stock option
plans of the Company and its Parents and Subsidiaries) shall not exceed $100,000
(determined as of the grant date).

                  (b) NO RIGHT TO CONTINUING EMPLOYMENT. Neither the
establishment nor operation of the Plan shall confer upon any Optionee or any
other person any right with respect to continuation of employment or other
service with the Company or any Subsidiary, nor shall the Plan interfere in any
way with the right of the Optionee or other person or the right of the Company
or Subsidiary to terminate such employment or service at any time.

         6. TERM OF PLAN. The Plan shall become effective upon its adoption by
the Board or its approval by vote of the holders of the outstanding shares of
the Company entitled to vote on the adoption of the Plan (in accordance with the
provisions of Section 18 hereof), whichever is earlier. It shall continue in
effect for a term of ten (10) years unless sooner terminated under Section 13 of
the Plan.

                                       4
<PAGE>

         7. TERM OF OPTION. Unless the Committee determines otherwise, the term
of each Option granted under the Plan shall be five (5) years from the date of
grant. The term of the Option shall be set forth in the Option Agreement. No
Incentive Stock Option shall be exercisable after the expiration of ten (10)
years from the date such Option is granted, provided that no Incentive Stock
Option granted to any Employee who, at the date such Option is granted, owns
(within the meaning of Section 425(d) of the Code) more than ten percent (10%)
of the total combined voting power of all classes of stock of the Company or any
Parent or Subsidiary shall be exercisable after the expiration of five (5) years
from the date such Option is granted.

         8. OPTION PRICE AND CONSIDERATION.

                  (a) OPTION PRICE. Except as provided in subsections (b) below,
the option price for the Shares to be issued pursuant to any Option shall be
such price as is determined by the Committee, which shall in no event be less
than: (i) in the case of Incentive Stock Options, the fair market value of such
Shares on the date the Option is granted; or (ii) in the case of Nonstatutory
Stock Options, 85% of such fair market value; or (iii) in the case of Options
intended to qualify as Performance-Based Compensation, the exercise price shall
be not less than one hundred percent (100%) of the fair market value per Share
on the date the Option is granted, in each case as determined by the Committee,
using such criteria as it deems relevant; provided, however, that if there is a
public market for the Common Stock, the fair market value per Share shall be the
average of the last reported bid and asked prices of the Common Stock on the
date of grant, as reported in THE WALL STREET JOURNAL (or, if not so reported,
as otherwise reported by the National Association of Securities Dealers
Automated Quotation (NASDAQ) System) or, in the event the Common Stock is listed
on a national securities exchange (within the meaning of Section 6 of the
Exchange Act), the fair market value per Share shall be the closing price on
such exchange on the date of grant of the Option, as reported in THE WALL STREET
JOURNAL.

                  (b) TEN PERCENT SHAREHOLDERS. No Option shall be granted to
any Employee who, at the date such Option is granted, owns (within the meaning
of Section 425(d) of the Code) more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or any Parent or Subsidiary,
unless the option price for the Shares to be issued pursuant to such Option is
at least equal to 110 percent (110%) of the fair market value of such Shares on
the grant date determined by the Committee in the manner set forth in subsection
(a) above.

                  (c) CONSIDERATION. The consideration to be paid for the Shares
to be issued upon exercise of an Option shall be payment in cash or by check
unless payment in some other manner, including by promissory note, other shares
of the Company's Common Stock or such other consideration and method of payment
for the issuance of Shares as may be permitted under Sections 408 and 409 of the
California General Corporation Law, is authorized by the Committee at the time
of the grant of the Option.

         9. EXERCISE OF OPTION.

                  (a) VESTING PERIOD. Any Option granted hereunder shall be
exercisable at such times and under such conditions as determined by the
Committee and as shall be permissible under the terms of the Plan, which shall
be specified in the Option Agreement evidencing the Option. Unless the Committee
specifically determines otherwise at the time of the grant of the Option, each

                                       5
<PAGE>

Option shall vest and become exercisable, cumulatively, in four substantially
equal installments on each of the first four anniversaries of the date of the
grant of the Option, subject to the Optionee's Continuous Employment. An Option
may not be exercised for fractional shares or for less than 10 Shares.

                  (b) INDIVIDUAL OPTION LIMIT. The maximum number of Shares with
respect to which Options may be granted to any Grantee in any fiscal year of the
Company shall be one million (1,000,000) Shares. The foregoing limitations shall
be adjusted proportionately in connection with any change in the Company's
capitalization pursuant to Section 11, below. To the extent required by Section
162(m) of the Code or the regulations thereunder, in applying the foregoing
limitations with respect to an Optionee, if any Option is canceled, the canceled
Option shall continue to count against the maximum number of Shares with respect
to which Options may be granted to the Grantee. For this purpose, the repricing
of an Option shall be treated as the cancellation of the existing Option and the
grant of a new Option.

                  (c) EXERCISE PROCEDURES. An Option shall be deemed to be
exercised when written notice of such exercise has been given to the Company in
accordance with the terms of the Option by the person entitled to exercise the
Option and full payment for the Shares with respect to which the Option is
exercised has been received by the Company. After the Registration Date, in lieu
of delivery of a cash payment for the purchase price of the Shares with respect
to which the Option is exercised, the Optionee may deliver to the Company a sell
order to a broker for the Shares being purchased and an agreement to pay (or
have the broker remit payment for) the purchase price for the Shares being
purchased on or before the settlement date for the sale of such shares to the
broker. As soon as practicable following the exercise of an Option in the manner
set forth above, the Company shall issue or cause its transfer agent to issue
stock certificates representing the Shares purchased. Until the issuance of such
stock certificates (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to vote
or receive dividends or any other rights as a stockholder shall exist with
respect to the Optioned Shares notwithstanding the exercise of the Option. No
adjustment will be made for a dividend or other rights for which the record date
is prior to the date of the transfer by the Optionee of the consideration for
the purchase of the Shares, except as provided in Section 11 of the Plan.

                  (d) EXERCISE OF OPTION WITH STOCK. If an Optionee is permitted
to exercise an Option by delivering shares of the Company's Common Stock, the
Option Agreement covering such Option may include provisions authorizing the
Optionee to exercise the Option, in whole or in part, by (i) delivering whole
shares of the Company's Common Stock previously owned by such Optionee (whether
or not acquired through the prior exercise of a stock option) having a fair
market value equal to the Option price; or (ii) directing the Company to
withhold from the Shares that would otherwise be issued upon exercise of the
Option that number of whole Shares having a fair market value equal to the
Option price. Shares of the Company's Common Stock so delivered or withheld
shall be valued at their fair market value at the close of the last business day
immediately preceding the date of exercise of the Option, as determined by the
Committee. Any balance of the Option price shall be paid in cash. Any Shares
delivered or withheld in accordance with this provision shall again become
available for purposes of the Plan and for Options subsequently granted
thereunder. After the Registration Date, any exercise of an Option under Section
9(d)(i) or 9(d)(ii) above by any person subject to short-swing trading liability
under Section 16(b) of the Exchange Act shall comply with the relevant
requirements of Rule 16b-3(d) or (e) promulgated under the Exchange Act.

                                       6
<PAGE>

                  (e) TERMINATION OF STATUS AS EMPLOYEE, NON-EMPLOYEE DIRECTOR
OR CONSULTANT. If an Optionee shall cease to be an Employee, Non-Employee
Director or Consultant for any reason other than permanent and total disability
or death, he or she may, but only within 90 days (or such other period of time
as is determined by the Committee) after the date he or she ceases to be an
Employee, Non-Employee Director or Consultant, exercise his or her Option to the
extent that he or she was entitled to exercise it at the date of such
termination, subject to the condition that no Option shall be exercisable after
the expiration of the Option period. In addition, any Optionee who ceases to be
an Employee, Non-Employee Director or Consultant for any reason other than
permanent and total disability or death who rejoins the Company as a full-time
Employee within 30 days of the expiration date of his or her Option, shall
maintain the unvested portion of any option which had expired in such 30-day
period, with all terms other than the vesting schedule of such Option remaining
unchanged for such unvested shares, and the vesting schedule adjusted forward
for the amount of time elapsed between the date of such Optionee's last paycheck
from the Company in his or her former position and the date of re-hire of such
Optionee as a full-time Employee.

                  (f) DISABILITY OF OPTIONEE. In the event of the permanent and
total disability during the Option period of an Optionee who is at the time of
such disability, or was within the 90-day period prior thereto, an Employee,
Non-Employee Director or Consultant and who was in Continuous Employment as such
from the date of the grant of the Option until the date of disability or
termination, the Option may be exercised at any time within 90 days following
the date of disability, but only to the extent of the accrued right to exercise
at the time of the termination or disability, whichever comes first, subject to
the condition that no option shall be exercised after the expiration of the
Option period.

                  (g) DEATH OF OPTIONEE. In the event of the death during the
Option period of an Optionee who is at the time of his or her death, or was
within the 90-day period immediately prior thereto, an Employee, Non-Employee
Director or Consultant and who was in Continuous Employment as such from the
date of the grant of the Option until the date of death or termination, the
Option may be exercised, at any time within 180 days following the date of
death, by the Optionee's estate or by a person who acquired the right to
exercise the Option by bequest, inheritance or otherwise as a result of the
Optionee's death, but only to the extent of the accrued right to exercise at the
time of the termination or death, whichever comes first, subject to the
condition that no option shall be exercised after the expiration of the Option
period.

                  (h) TAX WITHHOLDING. When an Optionee is required to pay to
the Company an amount with respect to tax withholding obligations in connection
with the exercise of an Option granted under the Plan, the Optionee may elect,
prior to the date the amount of such withholding tax is determined (the "Tax
Date") to make such payment, or such increased payment as the Optionee elects to
make up to the maximum federal, state and local marginal tax rates, including
any related obligation under the Federal Insurance Contribution Act, applicable
to the Optionee and the particular transaction, by (i) delivering cash; (ii)
delivering part or all of the payment in previously owned stock (whether or not
acquired through the prior exercise of a stock option); or (iii) irrevocably

                                       7
<PAGE>

directing the Company to withhold from the Shares that would otherwise be issued
upon exercise of the Option that number of whole Shares having a fair market
value equal to the amount of tax required or elected to be withheld (a
"Withholding Election"). If an Optionee's Tax Date is deferred beyond the date
of exercise and the Optionee makes a Withholding Election, the Optionee will
receive the full amount of Shares otherwise issuable upon exercise of the Option
minus the number of Shares necessary to satisfy his or her minimum withholding
requirements measured on the date the Option is exercised, or such higher
payment as he or she may have elected to make, with adjustments to be made in
cash after the Tax Date.

         After the Registration Date, any withholding of Shares with respect to
taxes arising in connection with the exercise of an Option by any person subject
to short-swing trading liability under Section 16(b) of the Exchange Act shall
satisfy the following conditions:

                           (i) An advance election to withhold Shares in
settlement of a tax liability must satisfy the requirements of Rule
16b-3(d)(1)(i), regarding participant-directed transactions;

                           (ii) Absent such an election, the withholding of
Shares to settle a tax liability may occur only during the quarterly window
period described in Rule 16b-3(e);

                           (iii) Absent an advance election or window period
withholding, the Optionee may deliver Shares owned prior to the exercise of an
Option to settle a tax liability arising upon exercise of the Option, in
accordance with Rule 16b-3(f); or

                           (iv) The delivery of previously acquired Shares (but
not the withholding of newly acquired Shares) will be allowed where an election
under Section 83(b) of the Code accelerates the Tax Date to a day that occurs
less than six months after the advance election and is not within the quarterly
window period described in Rule 16b-3(e).

Any adverse consequences incurred by an Optionee with respect to the use of
Shares to pay any part of the Option price or of any tax in connection with the
exercise of an Option, including without limitation any adverse tax consequences
arising as a result of a disqualifying disposition within the meaning of Section
422 of the Code, shall be the sole responsibility of the Optionee.

         10. NON-TRANSFERABILITY OF OPTIONS. An Option may not be sold, pledged,
assigned, hypothecated, transferred or disposed of in any manner other than by
will or by the laws of descent and distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

         11. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. Subject to any required
action by the shareholders of the Company, the number of shares of Common Stock
covered by each outstanding Option, and the per share exercise price thereof in
each such Option, shall be proportionately adjusted for any increase or decrease
in the number of issued shares of Common Stock resulting from a stock split,
reverse stock split, combination, reclassification, the payment of a stock
dividend on the Common Stock or any other increase or decrease in the number of
such shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the

                                       8
<PAGE>

Company shall not be deemed to have been "effected without receipt of
consideration". Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option.

         The Committee may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the number or class of securities
covered by any Option, as well as the price to be paid therefor, in the event
that the Company effects one or more reorganizations, recapitalizations, rights
offerings, or other increases or reductions of shares of its outstanding Common
Stock, and in the event of the Company being consolidated with or merged into
any other corporation.

         Unless otherwise determined by the Board, upon the dissolution or
liquidation of the Company the Options granted under the Plan shall terminate
and thereupon become null and void. Upon any merger or consolidation, if the
Company is not the surviving corporation, the Options granted under the Plan
shall either be assumed by the new entity or shall terminate in accordance with
the provisions of the preceding sentence.

         12. TIME OF GRANTING OPTIONS. Unless otherwise specified by the
Committee, the date of grant of an Option under the Plan shall be the date on
which the Committee makes the determination granting such Option. Notice of the
determination shall be given to each Employee to whom an Option is so granted
within a reasonable time after the date of such grant.

         13. AMENDMENT AND TERMINATION OF THE PLAN. The Board may amend or
terminate the Plan from time to time in such respects as the Board may deem
advisable, except that, without approval of the shareholders of the Company, no
such revision or amendment shall change the number of Shares subject to the
Plan, change the designation of the class of employees eligible to receive
Options or add any material benefit to Optionees under the Plan. Any such
amendment or termination of the Plan shall not affect Options already granted
and such Options shall remain in full force and effect as if the Plan had not
been amended or terminated.

         14. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued with
respect to an Option granted under the Plan unless the exercise of such Option
and the issuance and delivery of such Shares pursuant thereto shall comply with
all relevant provisions of law, including, without limitation, the Securities
Act, the Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance. As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

                                       9
<PAGE>

         15. RESERVATION OF SHARES. During the term of this Plan the Company
will at all times reserve and keep available the number of Shares as shall be
sufficient to satisfy the requirements of the Plan. Inability of the Company to
obtain from any regulatory body having jurisdiction and authority deemed by the
Company's counsel to be necessary to the lawful issuance and sale of any Shares
hereunder shall relieve the Company of any liability in respect of the
non-issuance or sale of such Shares as to which such requisite authority shall
not have been obtained.

         16. INFORMATION TO OPTIONEE. During the term of any Option granted
under the Plan, the Company shall provide or otherwise make available to each
Optionee a copy of its annual report to Shareholders and financial information
which is provided to its shareholders in accordance with the provisions of the
Company's Bylaws and applicable law.

         17. OPTION AGREEMENT. Options granted under the Plan shall be evidenced
by Option Agreements.

         18. SHAREHOLDER APPROVAL. The Plan was approved by the shareholders of
the Company within twelve (12) months after the Plan having been adopted by the
Board. Any amendments to the Plan which require shareholder approval shall be by
the affirmative vote of the holders of a majority of the outstanding capital
stock represented and voting at a duly held meeting or by the written consent of
shareholders.

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]