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                        INDUSTRIALEX MANUFACTURING CORP.

                           INCENTIVE COMPENSATION PLAN
                                 (of June, 2000)

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                        INDUSTRIALEX MANUFACTURING CORP.
                           INCENTIVE COMPENSATION PLAN
                      ADOPTED ON THE 15TH DAY OF JUNE, 2000

                                    SECTION 1
                                  INTRODUCTION

         1.1      Establishment. Industrialex Manufacturing Corp., a Colorado
corporation (hereinafter referred to as the "Company" except where the context
otherwise requires), hereby establishes the Industrialex Incentive Compensation
Plan (the "Plan").

         1.2      Purpose. The purpose of the Plan is to attract and retain
directors, officers, consultants and employees and to motivate such persons by
relating incentive compensation to increases in stockholder value.

                                    SECTION 2
                                   DEFINITIONS

         2.1      Definitions. The following terms shall have the meanings set
forth below:

                  (a) "Affiliate" means, with respect to any Person, any other
Person directly or indirectly controlling, controlled by or under direct or
indirect common control with such Person. A Person shall be deemed to control
another Person for purposes of this definition if such Person possesses,
directly or indirectly, the power (i) to vote the securities or other ownership
interests having ordinary voting power to elect a majority of the board of
directors of a corporation or other Persons performing similar functions for any
other type of Person, or (ii) to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities,
by contract, as general partner, as trustee or otherwise.

                  (b) "Award" means a grant made under this Plan in the form of
Non-Statutory Options, Incentive Stock Options and/or Restricted Stock Awards.

                  (c) "Board" means the Board of Directors of the Company.

                  (d) "Committee" shall mean the Compensation Committee and
shall also include the Employee Committee, if established. The Compensation
Committee and the Employee Committee shall not function simultaneously, and the
Board shall designate which of them is authorized, if either, to perform
function hereunder from time to time.

                  (e) "Compensation Committee" means a committee consisting of
at least two Non-Employee Directors (as defined in Rule 16b-3(i) under the 1934
act who are empowered hereunder to take actions in the administration of the
Plan. If the Stock is publicly traded, the Compensation Committee shall be so
constituted at all times as to permit the Plan to comply with Rule 16b-3 or any
successor rule promulgated under the Securities Exchange Act of 1934 (the "1934
Act") as well ss.162(m) of the Internal Revenue Code of 1986, as it may be

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amended from time to time ("Code"). Members of the Compensation Committee shall
be appointed from time to time by the Board, shall serve at the pleasure of the
Board, and may resign at any time upon written notice to the Board.

         (f) "Effective Date" means the effective date of the Plan,      ,
2000.

         (g) "Eligible Employees" means full-time key employees (including,
without limitation, officers and directors who are also employees) of the
Company or any division thereof, upon whose judgment, initiative and efforts the
Company is, or will be, important to the successful conduct of its business.

         (h) "Employee Committee" shall mean a committee composed of at least
one member of the Board who may, but need not, be a non-employee director,
which, if established, shall be empowered hereunder to grant Awards to Employees
who are not directors or "officers" of the Company as that term is defined in
Rule 16a-1(f) of the 1934 Act nor "covered employees" under Section 162(m) of
the Code, and to establish the terms of such Awards at the time of grant, but
shall have no other authority with respect to the Plan or outstanding Awards
except as expressly granted by the Plan. Members of the Employee Committee shall
be appointed from time to time by the Board, shall serve at the pleasure of the
Board, and may resign at any time upon written notice to the Board.

         (i) "Fair Market Value" means, if the Stock is not publicly traded, the
value of the Stock as determined in good faith by the Committee after such
consultation with outside legal, accounting and other experts as the Committee
may deem advisable. [In the discretion of the Committee, the Fair Market Value
of Stock subject to an Option may be determined by a formula price established
by a non-lapse restriction.] The Committee shall maintain a written record of
its method of determining such value. If the Stock is publicly traded, Fair
Market Value means the officially quoted closing price of the Stock on the
national exchange on which the Stock is traded on a particular date. If there
are no Stock transactions on such date, the Fair Market Value shall be
determined as of the immediately preceding date on which there were Stock
transactions. If no such prices are reported on the national exchange on which
the Stock is traded, then Fair Market Value shall mean the most recent ten day
average of the high and low sale prices for the Stock (or if no sales prices are
reported, the average of the preceding ten day high and low bid prices) as
reported by the principal regional stock exchange, or if not so reported, as
reported by a quotation system of general circulation to brokers and dealers.

         (j) "Incentive Stock Option" means any Option designated as such and
granted in accordance with the requirements ofss. 422 of the Code.

         (k) "Non-Statutory Option" means any Option other than an Incentive
Stock Option.

         (l) "Option" means a right to purchase Stock at a stated price for a
specified period of time.

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         (m) "Option Price" means the price at which shares of Stock subject to
an Option may be purchased, determined in accordance with subsection 6.2(b).

         (n) "Participant" means an Eligible Employee, consultant or other
independent advisor of the Company designated by the Committee from time to time
during the term of the Plan to receive one or more Awards under the Plan.

         (o) "Person" means any individual, partnership, joint venture, firm,
company, corporation, association, trust or other enterprise or any government
or political subdivision or any agent, department or instrumentality thereof.

         (p) "Plan Year" means each 12-month period coinciding the Company's
fiscal year except that for the first year of the Plan it shall begin on the
Effective Date and extend to the end of the fiscal year of Company following the
Effective Date.

         (q) "Restricted Stock" shall mean shares of Stock granted under Section
7 that are subject to restrictions imposed pursuant to such Section.

         (r) "Share" means a share of Stock.

         (s) "Stock" means the common stock, $.01 par value, of the Company.

2.2      Gender and Number. Except when otherwise indicated by the context, the
masculine gender shall also include the feminine gender, and the definition of
any term herein in the singular shall also include the plural

                                    SECTION 3
                               PLAN ADMINISTRATION

         The Plan shall be administered by the Compensation Committee and, if
established, the Employee Committee. Except as might otherwise be set forth in
an Eligible Employee's employment agreement with the Company, in accordance with
the provisions of the Plan, the Committee shall, in its sole discretion, select
Participants from among the Eligible Employees to whom Awards will be granted,
the form of each Award, the amount of each Award and any other terms and
conditions of each Award as the Committee may deem necessary or desirable and
consistent with the terms of the Plan. The Committee shall determine the form or
forms of the agreements with Participants which shall evidence the particular
provisions, terms, conditions, rights and duties of the Company and the
Participants with respect to Awards granted pursuant to the Plan, which
provisions need not be identical except as may be provided herein. The Committee
may from time to time adopt such rules and regulations for carrying out the
purposes of the Plan as it may deem proper and in the best interests of the
Company. The Committee may correct any defect, supply any omission or reconcile
any inconsistency in the Plan or in any agreement entered into hereunder in the
manner and to the extent it shall deem expedient and it shall be the sole and
final judge of such expediency. No member of the Committee shall be liable for
any action or determination made in good faith, and all members of the Committee
shall, in addition to their rights as directors, be fully protected by the

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Company with respect to any such action, determination or interpretation. The
determination, interpretations and other actions of the Committee pursuant to
the provisions of the Plan shall be binding and conclusive for all purposes and
on all persons.

                                    SECTION 4
                            STOCK SUBJECT TO THE PLAN

         4.1      Number of Shares. Initially, 1,200,000 Shares are authorized
for issuance under the Plan in accordance with the provisions of the Plan and
subject to such restrictions or other provisions as the Compensation Committee
may from time to time deem necessary. The Shares may be divided among the
various Plan components as the Compensation Committee shall determine, and all
of them shall be available for the grant of Incentive Stock Options under the
Plan. Shares which may be issued upon the exercise of Options shall be applied
to reduce the maximum number of Shares remaining available for use under the
Plan. The Company shall at all times during the term of the Plan and while any
Options are outstanding retain as authorized and unissued Stock, or as treasury
Stock, at least the number of Shares from time to time required under the
provisions of the Plan, or otherwise assure itself of its ability to perform its
obligations hereunder. In no event will the sum of the number of Shares issued
under the Plan and the number of Shares subject to option under the Plan exceed
twenty percent (20%) of the outstanding Stock of the Company (including treasury
shares) as of the date of grant of any Option.

         4.2      Unused and Forfeited Stock. Any Shares that are subject to an
Award under this Plan which are not used because the terms and conditions of the
Award are not met, including any Shares that are subject to an Option which
expires or is terminated for any reason, any Shares which are used for full or
partial payment of the purchase price of Shares with respect to which an Option
is exercised and any Shares retained by the Company pursuant to Section 13.2
shall automatically become available for use under the Plan. Notwithstanding the
foregoing, any Shares used for full or partial payment of the purchase price of
the Shares with respect to which an Option is exercised and any Shares retained
by the Company pursuant to Section 13.2 that were originally Incentive Stock
Option Shares must still be considered as having been granted for purposes of
determining whether the limitation on Incentive Stock Option grants provided for
in Section 4.1 has been reached.

         4.3      Adjustments for Stock Split, Stock Dividend, Etc. If the
Company shall at any time increase or decrease the number of its outstanding
Shares of Stock or change in any way the rights and privileges of such Shares by
means of the payment of a stock dividend or any other distribution upon such
Shares payable in Stock, or through a stock split, subdivision, consolidation,
combination, reclassification or recapitalization involving the Stock, then in
relation to the Stock that is affected by one or more of the above events, the
numbers, rights and privileges of the following shall be increased, decreased or
changed in like manner as if they had been issued and outstanding, fully paid
and nonassessable at the time of such occurrence: (i) the Shares as to which
Awards may be granted under the Plan; and (ii) the Shares of Stock then included
in each outstanding Option granted hereunder.

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         4.4      Other Changes in Stock. In the event there shall be any
change, other than as specified in Section 4.3, in the number or kind of
outstanding Shares or of any stock or other securities into which the Stock
shall be changed or for which it shall have been exchanged, and if the Committee
shall in its discretion determine that such change equitably requires an
adjustment in the number or kind of Shares subject to outstanding Awards or
which have been reserved for issuance pursuant to the Plan but are not then
subject to an Award, then such adjustments shall be made by the Committee and
shall be effective for all purposes of the Plan and on each outstanding Award
that involves the particular type of stock for which a change was effected.

         4.5      Rights to Subscribe. If the Company shall at any time grant to
the holders of its Stock rights to subscribe pro rata for additional shares
thereof or for any other securities of the Company or of any other corporation,
there shall be reserved with respect to the Shares then subject to an Award held
by any Participant of the particular class of Stock involved, the Stock or other
securities which the Participant would have been entitled to subscribe for if
immediately prior to such grant the Participant had exercised his entire Option,
or otherwise vested in his entire Award. If, upon exercise of any such Option or
the vesting of any other Award, the Participant subscribes for the additional
Stock or other securities, the Participant shall pay to the Company the price
that is payable by the Participant for such Stock or other securities.

         4.6      General Adjustment Rules. If any adjustment or substitution
provided for in this Section 4 shall result in the creation of a fractional
Share under any Award, the Company shall, in lieu of selling or otherwise
issuing such fractional Share, pay to the Participant a cash sum in an amount
equal to the product of such fraction multiplied by the Fair Market Value of a
Share on the date the fractional Share would otherwise have been issued. In the
case of any such substitution or adjustment affecting an Option, the total
Option Price for the Shares then subject to an Option shall remain unchanged but
the Option Price per share under each such Option shall be equitably adjusted by
the Compensation Committee to reflect the greater or lesser number of Shares or
other securities into which the Stock subject to the Option may have been
changed.

         4.7      Determination by Compensation Committee, Etc. Adjustments
under this Section 4 shall be made by the Compensation Committee, whose
determinations with regard thereto shall be final and binding upon all parties
thereto.

                                    SECTION 5
                                  PARTICIPATION

         Participants in the Plan shall be those Participants who, in the
judgment of the Committee, are performing, or during the term of their
employment will perform, important services in the management, operation and
development of the Company, and significantly contribute, or are expected to
significantly contribute, to the achievement of long-term corporate economic
objectives. Participants may be granted from time to time one or more Awards;
provided, however, that the grant of each such Award shall be separately
approved by the Committee, and receipt of one such Award shall not result in
automatic receipt of any other Award, written notice shall be given to such
person, specifying the terms, conditions, rights and duties related thereto.
Each Participant shall enter into an agreement with the Company, in such form as
the Committee shall determine and which is consistent with the provisions of the
Plan,

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specifying such terms, conditions, rights and duties. Awards shall be deemed to
be granted as of the date specified in the grant resolution of the Committee,
which date shall be the date of any related agreement with the Participant. In
the event of any inconsistency between the provisions of the Plan and any such
agreement entered into hereunder, the provisions of the Plan shall govern.

                                    SECTION 6
                                  STOCK OPTIONS

         6.1      Grant of Options. Coincident with the following designation
for participation in the Plan, a Participant may be granted one or more Options.
The Committee in its sole discretion shall designate whether an Option is to be
considered an Incentive Stock Option or a Non-Statutory Option. The Committee
may grant both an Incentive Stock Option and a Non-Statutory Option to the same
Participant at the same time or at different times. Incentive Stock Options and
Non-Statutory Options, whether granted at the same or different times, shall be
deemed to have been awarded in separate grants, shall be clearly identified, and
in no event shall the exercise of one Option affect the right to exercise any
other Option or affect the number of Shares for which any other Option may be
exercised.

         6.2      Option Agreements. Each Option granted under the Plan
shall be evidenced by a written stock option agreement which shall be entered
into by the Company and the Participant to whom the Option is granted (the
"Option Holder"), and which shall contain the following terms and conditions, as
well as such other terms and conditions not inconsistent therewith, as the
Committee may consider appropriate in each case.

                  (a) Number of Shares. Each stock option agreement shall state
that it covers a specified number of Shares, as determined by the Committee.
Notwithstanding any other provision of the Plan, the aggregate Fair Market Value
of the Shares with respect to which Incentive Stock Options are exercisable for
the first time by an Option Holder in any calendar year, under the Plan or
otherwise, shall not exceed $100,000. For this purpose, the Fair Market Value of
the Shares shall be determined as of the time an Option is granted.

                  (b) Price. The price at which each Share covered by an Option
may be purchased shall be determined in each case by the Committee and set forth
in the stock option agreement, but in no event shall the Option Price for each
Share covered by an Incentive Stock Option be less than the Fair Market Value of
the Stock on the date the Option is granted; provided that the Option Price for
each Share covered by a Non-Statutory Option may be granted at any price less
than Fair Market Value, in the sole discretion of the Committee. In addition,
the Option Price for each Share covered by an Incentive Stock Option granted to
an Eligible Employee who then owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or any parent or
subsidiary corporation of the Company must be at least 110% of the Fair Market
Value of the Stock subject to the Incentive Stock Option on the date the Option
is granted.

                  (c) Duration of Options. Each stock option agreement shall
state the period of time, determined by the Compensation Committee, within which
the Option may be

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exercised by the Option Holder (the "Option Period"). The Option Period must
expire, in all cases, not more than five years from the date an Option is
granted. Each stock option agreement shall also state the periods of time, if
any, as determined by the Compensation Committee, when incremental portions of
each Option shall vest. Except as provided in Section 7, no portion of any
Option shall vest earlier than one year after the date of grant of the Option.

                  (d) Termination of Employment, Death, Disability, Etc. Except
as otherwise determined by the Committee, each stock option agreement shall
provide as follows with respect to the exercise of the Option upon termination
of the employment or the death of the Option Holder:

                      (i) If the employment of the Option Holder is terminated
within the Option Period for cause, as determined by the Company, the Option
shall thereafter be void for all purposes. As used in this subsection 6.2(d),
"cause" shall mean willful dishonesty towards, fraud upon or deliberate injury
or attempted deliberate injury to the Company, misrepresentation or concealment
of a material fact or circumstance for the purpose of or otherwise in connection
with securing employment with the Company, breach of any limitations on the use
or disclosure of confidential information or materials, conviction for a felony
or a material breach of the Option Holder's employment agreement with the
Company. The effect of this subsection 6.2(d)(i) shall be limited to determining
the consequences of a termination, and nothing in this subsection 6.2(d)(i)
shall restrict or otherwise interfere with the Company's discretion with respect
to the termination of any employee.

                      (ii) If the Option Holder terminates his employment with
the Company in a manner determined by the Board, in its sole discretion, to
constitute retirement (which determination shall be communicated to the Option
Holder within 10 days of such termination), the Option may be exercised by the
Option Holder, or, in the case of death, by the persons specified in subsection
(iii) of this subsection 6.2(d), within 30 days following his or her retirement
regardless of whether the Option is an Incentive Stock Option or is a
Non-Statutory Stock Option (provided in each case that such exercise must occur
within the Option Period), but not thereafter. In any such case, the Option may
be exercised only as to the Shares as to which the Option had become exercisable
on or before the date of the Option Holder's termination of employment.

                      (iii) If the Option Holder dies, or if the Option Holder
becomes disabled (within the meaning of Section 22(e) of the Internal Revenue
Code), during the Option Period while still employed, or within the 30 day
period referred to in (iv) below, or within the 30 day period referred to in
(ii) above, the Option may be exercised by those entitled to do so under the
Option Holder's will or by the laws of descent and distribution within twelve
months following the Option Holder's death or disability, but not thereafter. In
any such case, the Option may be exercised only as to the Shares as to which the
Option had become exercisable on or before the date of the Option Holder's death
or disability.

                      (iv) If the employment of the Option Holder by the Company
is terminated (which for this purpose means that the Option Holder is no longer
employed by the Company or by an Affiliate) within the Option Period for any
reason other than cause, retirement

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as provided in (ii) above, disability or the Option Holder's death, the Option
may be exercised by the Option Holder within 30 days following the date of such
termination (provided that such exercise must occur within the Option Period),
but not thereafter. In any such case, the Option may be exercised only as to the
Shares as to which the Option had become exercisable on or before the date of
termination of employment.

                  (e) Transferability. Each stock option agreement applicable to
an Incentive Stock Option shall provide that the Option granted therein is not
transferable by the Option Holder except by will or pursuant to the laws of
descent and distribution, and that such Option is exercisable during the Option
Holder's lifetime only by him or her, or in the event of disability or
incapacity, by his or her guardian or legal representative. The Committee shall
determine the extent, if any, to which Non-Statutory Options shall be subject to
transferability and exercisability restrictions.

                  (f) Exercise, Payments, Etc.

                      (i) Each stock option agreement shall provide that the
method for exercising the Option granted therein shall be by delivery to the
Corporate Secretary of the Company of written notice specifying the number of
Shares with respect to which such Option is exercised (which must be in an
amount evenly divisible by 100) and payment of the Option Price. Such notice
shall be in a form satisfactory to the Committee and shall specify the
particular Option (or portion thereof) which is being exercised and the number
of Shares with respect to which the Option is being exercised. The exercise of
the Option shall be deemed effective upon receipt of such notice by the
Corporate Secretary and payment to the Company. The purchase of such Stock shall
take place at the principal offices of the Company upon delivery of such notice,
at which time the purchase price of the Stock shall be paid in full by any of
the methods or any combination of the methods set forth in (ii) below. A
properly executed certificate or certificates representing the Stock shall be
issued by the Company and delivered to the Option Holder. If certificates
representing Stock are used to pay all or part of the Option Price, separate
certificates for the same number of Shares shall be issued by the Company and
delivered to the Option Holder representing each certificate used to pay the
Option Price, and an additional certificate shall be issued by the Company and
delivered to the Option Holder representing the additional Shares, in excess of
the Option Price, to which the Option Holder is entitled as a result of the
exercise of the Option.

                      (ii) The Option Price shall be paid by any of the
following methods or any combination of the following methods:

                         (A) in cash;

                         (B) by cashier's check payable to the order of the
Company;

                         (C) by delivery to the Company of certificates
representing the number of Shares then owned by the Option Holder, the Fair
Market Value of which equals the Option Price, properly endorsed for transfer to
the Company; provided

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however, that Shares used for this purpose must have been held by the Option
Holder for such minimum period of time as may be established from time to time
by the Committee; For purposes of this Plan, the Fair Market Value of any Shares
delivered in payment of the Option Price shall be the Fair Market Value as of
the exercise date. The exercise date shall be the day the delivery of the
certificates for the Stock used as payment of the Option Price; or

                         (D)if the Stock is publicly traded, by delivery to the
Company of a properly executed notice of exercise together with irrevocable
instructions to a broker to deliver to the Company promptly the amount of the
proceeds of the sale of all or a portion of the Stock or of a loan from the
broker to the Option Holder necessary to pay the Option Price.

                      (iii) In the discretion of the Committee, the Company may
provide a recourse loan to a Participant, or guaranty a third-party loan
obtained by a Participant, to pay part or all of the Option Price of the Shares
provided that such loan or the Company's guaranty is secured by the Shares.

                  (g) Date of Grant. An option shall be considered as having
been granted on the date specified in the grant resolution of the Committee.

                  (h) Withholding.

                         (A) Non-Statutory Options. Each stock option agreement
covering Non-Statutory Options shall provide that, upon exercise of the Option,
the Option Holder shall make appropriate arrangements with the Company to
provide for the amount of additional withholding required by applicable federal
and state income tax laws, including payment of such taxes through delivery of
Stock or by withholding Stock to be issued under the Option, as provided in
Section 13

                         (B) Incentive Stock Options. In the event that a
Participant makes a disposition (as defined in Section 424(c) of the Code) of
any Stock acquired pursuant to the exercise of an Incentive Stock Option prior
to the expiration of two years from the date on which the Incentive Stock Option
was granted or prior to the expiration of one year from the date on which the
Option was exercised, the Participant shall send written notice to the Company
at its principal office (Attention: Corporate Secretary) of the date of such
disposition, the number of shares disposed of, the amount of proceeds received
from such disposition, the number of Shares disposed of, the amount of proceeds
received from such disposition and any other information relating to such
disposition as the Company may reasonably request. The Participant shall, in the
event of such a disposition, make appropriate arrangements with the Company to
provide for the amount of additional withholding, if any, required by applicable
federal and state income tax laws.

                  (i) Adjustment of Options. Subject to the limitations
contained in Sections 6 and 9 the Committee may make any adjustment to the
Option Price, the number of Shares subject to, or the terms of, an outstanding
Option and a subsequent granting of an Option by amendment or by substitution of
an outstanding Option. Each Non-Statutory Option granted

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hereunder shall provide for a formula reduction in the Option Price should cash
dividends be declared and paid in respect of the Stock during the time that an
Option is unexercised. Such amendment, substitution, reduction, or re-grant may
result in terms and conditions (including Option Price, number of shares
covered, vesting schedule or Option Period) that differ from the terms and
conditions of the original Option. The Committee may not, however, adversely
affect the rights of any Participant to previously granted Options without the
consent of such Participant. If such action is affected by amendment, the
effective date of such amendment shall be the date of the original grant.

         6.3      Stockholder Privileges. No Option Holder shall have any
rights as a stockholder with respect to any Shares covered by an Option until
the Option Holder becomes the holder of record of such Stock, and no adjustments
shall be made for dividends or other distributions or other rights as to which
there is a record date preceding the date such Option Holder becomes the holder
of record of such Stock, except as provided in Section 4.

                                    SECTION 7
                            RESTRICTED STOCK PROGRAM

         7.1      Awards Granted. Coincident with or following designation for
participation in the Plan, a Participant may be granted one or more Restricted
Stock Awards consisting of Shares. The number of Shares granted as a Restricted
Stock Award shall be determined by the Committee or the Board. Each Restricted
Stock Award shall be evidenced by a written equity award agreement that shall be
entered into by the Company and the Participant to whom the Award is granted.

         7.2      Restrictions. A Participant's right to retain a Restricted
stock Award granted to such Participant under Section 7.1 shall be subject to
such restrictions set forth in the equity award agreement, including but not
limited to his or her continuous employment by the Company for a restriction
period specified by the Committee or the Board or the attainment of specified
performance goals and objectives, as may be established by the Committee or the
Board with respect to such Award. The Committee or the Board may in its sole
discretion require different periods of employment or different performance
goals and objectives with respect to different Participants, to different
Restricted Stock Awards or to separate, designated portions of the shares
constituting a Restricted Stock Award.

         7.3      Privileges of a Stockholder. Transferability. A Participant
shall have all voting, dividend, liquidation and other rights with respect to
Shares in accordance with its terms received by him or her as a Restricted Stock
Award under this Section 7 upon his or her becoming the holder of record of such
Shares; provided, however, that the Participant's right to sell, encumber or
otherwise transfer such shares shall be subject to the limitations of Section
9.2 hereof.

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                                    SECTION 8
                                CHANGE IN CONTROL

         8.1      Options. In the event of a change in control of the Company as
defined in Section 8.2, then the Committee or the Board shall have the power and
discretion to prescribe the terms and conditions for the exercise of, or
modification of, any outstanding Awards granted hereunder. By way of
illustration, and not by way of limitation, the Committee or the Board may
provide for the complete or partial acceleration of the dates of exercise of the
Options, or may provide that such Options will be exchanged or converted into
options to acquire securities of the surviving or acquiring corporation, or may
provide for a payment or distribution in respect of outstanding Options (or the
portion thereof that is currently exercisable) in cancellation thereof. The
Compensation Committee may modify the performance requirements for any other
Awards. The Compensation Committee may provide that Awards granted hereunder
must be exercised in connection with the closing of such transaction, and that
if not so exercised such Awards will expire. Any such determinations by the
Compensation Committee may be made generally with respect to all Participants,
or may be made on a case-by-case basis with respect to particular Participants.

         8.2      Definition. For purposes of the Plan, a "change in control"
shall be deemed to have occurred if (a) any "person" or "group" (within the
meaning of Sections 13(d) and 14(d)(2) of the 1934 Act), other than a trustee or
other fiduciary holding securities under an employee benefit plan of the Company
or the current beneficial owners or their Affiliates are or become the
"beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or
indirectly, of more than one-half of the voting power of the then outstanding
voting stock of the Company; or (b) the stockholders of the Company approve 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 the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least a majority of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or the stockholders 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.

                                    SECTION 9
                        RIGHTS OF EMPLOYEES; PARTICIPANTS

         9.1      Employment. Nothing contained in the Plan or in any Award
granted under the Plan shall confer upon any Participant any right with respect
to the continuation of his or her employment by the Company, or interfere in any
way with the right of the Company, subject to the terms of any separate
employment agreement to the contrary, at any time to terminate such employment
or to increase or decrease the compensation of the Participant from the rate in
existence at the time of the grant of an Award. Whether an authorized leave of
absence, or absence in military or government service, shall constitute a
termination of employment shall be determined by the Committee at the time.

         9.2      Nontransferability. No right or interest of any Participant in
an Award granted pursuant to the Plan shall be assignable or transferable during
the lifetime of the Participant, either voluntarily or involuntarily, or be
subjected to any lien, directly or indirectly,

                                      -11-
<PAGE>   13

by operation of law, or otherwise, including execution, levy, garnishment,
attachment, pledge or bankruptcy, except as provided in Section 6.2(e). In the
event or a Participant's death, a Participant's rights and interests in Options
shall, to the extent provided in Section 7, be transferable by testamentary will
or the laws of descent and distribution, and payment of any amounts due under
the Plan shall be made to, and exercise of any Options may be made by, the
Participant's legal representatives, heirs or legatees. If in the opinion of the
Committee a person entitled to payments or to exercise rights with respect to
the Plan is disabled from caring for his affairs because of mental condition,
physical condition or age, payment due such person may be made to, and such
rights shall be exercised by, such person's guardian, conservator or other legal
personal representative upon furnishing the Committee with evidence satisfactory
to the Committee of such status. The Committee may in its sole discretion
require the placing of a legend on the stock certificates referring to the
restrictions set forth herein.

                                   SECTION 10
                              GENERAL RESTRICTIONS

         10.1     Investment Representations. The Company may require any person
to whom an Option or other Award is granted, as a condition of exercising such
Option or receiving Stock under the Award, to give written assurances in
substance and form satisfactory to the Company and its counsel to the effect
that such person is acquiring the Stock subject to the Option or the Award for
his own account for investment and not with any present intention of selling or
otherwise distributing the same, and to such other effects as the Company deems
necessary or appropriate in order to comply with federal and applicable state
securities laws. Legends evidencing such restrictions may be placed on the
certificates evidencing the Stock.

         10.2     Compliance with Securities Laws. Each Award shall be subject
to the requirement that, if at any time counsel to the Company shall determine
that the listing, registration or qualification of the Shares subject to such
Award upon any securities exchange or under any state or federal law, or the
consent or approval of any governmental or regulatory body, is necessary as a
condition of, or in connection with, the issuance or purchase of Shares
thereunder, such Award may not be accepted or exercised in whole or in part
unless such listing, registration, qualification, consent or approval shall have
been effected or obtained on conditions acceptable to the Committee. Nothing
herein shall be deemed to require the Company to apply for or to obtain such
listing, registration or qualification.

         10.3     Stock Restriction Agreement. The Committee may provide that
Shares issuable upon the exercise of an Option shall, under certain conditions,
be subject to restrictions whereby the Company has a right to prohibit the
transfer of such Shares, a right of first refusal with respect to such Shares
and/or a right or obligation to repurchase all or a portion of such Shares,
which restrictions may survive a Participant's term of employment with the
Company. The acceleration of time or times at which an Option becomes
exercisable may be conditioned upon the Participant's agreement to such
restrictions.

                                      -12-
<PAGE>   14

                                   SECTION 11
                             OTHER EMPLOYEE BENEFITS

         The amount of any compensation deemed to be received by a Participant
as a result of the exercise of an Option or the grant or vesting of any other
Award shall not constitute "earnings" with respect to which any other employee
benefits of such employee are determined, including without limitation benefits
under any pension, profit sharing, life insurance or salary continuation plan.

                                   SECTION 12
                  PLAN AMENDMENT, MODIFICATION AND TERMINATION

         The Compensation Committee may at any time terminate, and from
time-to-time may amend or modify, the Plan; provided, however, that no amendment
or modification may become effective without approval of the amendment or
modification by the stockholders if stockholder approval is required to enable
the Plan to satisfy any applicable statutory or regulatory requirements, or if
the Company, on the advice of counsel, determines that either stockholder and/or
Board approval is otherwise necessary or desirable.

         No amendment, modification or termination of the Plan shall in any
manner adversely affect any Awards theretofore granted under the Plan, without
the consent of the Participant holding such Awards.

                                   SECTION 13
                                   WITHHOLDING

         13.1     Withholding Requirement. The Company's obligations to deliver
Shares upon the exercise of an Option, or upon the vesting of any other Award,
shall be subject to the Participant's satisfaction of all applicable federal,
state and local income and other tax withholding requirements.

         13.2     Withholding With Stock. At the time the Committee grants an
Award, it may, in its sole discretion, grant the Participant an election to pay
all amounts of tax withholding, or any part thereof, by electing to transfer to
the Company, or to have the Company withhold from Shares otherwise issuable to
the Participant, Shares having a value equal to the amount required to be
withheld or such lesser amount as may be elected by the Participant. All
elections shall be subject to the approval or disapproval of the Committee. The
value of Shares to be withheld shall be based on the Fair Market Value of the
Stock on the date that the amount of tax to be withheld is to be determined (the
"Tax Date"). Any such elections by Participants to have Shares withheld for this
purpose will be subject to the following restrictions:

                  (a) All elections must be made prior to the Tax Date.

                  (b) All elections shall be irrevocable.

                  (c) If the Participant is an officer or director of the
Company within the meaning of Section 16 of the 1934 Act ("Section 16"), the
Participant must satisfy the requirements of such Section 16 and any applicable
rules thereunder with respect to the use of Stock to satisfy such tax
withholding obligation.

                                      -13-
<PAGE>   15

                                   SECTION 14
                             BROKERAGE ARRANGEMENTS

         The Compensation Committee, in its discretion, may enter into
arrangements with one or more banks, brokers or other financial institutions to
facilitate the disposition of shares acquired upon exercise of Stock Options,
including, without limitation, arrangements for the simultaneous exercise of
Stock Options and sale of the Shares acquired upon such exercise.

                                   SECTION 15
                           NONEXCLUSIVITY OF THE PLAN

         Neither the adoption of the Plan by the Board nor the submission of the
Plan to stockholders of the Company for approval shall be construed as creating
any limitations on the power or authority of the Board to adopt such other or
additional incentive or other compensation arrangements of whatever nature as
the Board may deem necessary or desirable or preclude or limit the continuation
of any other plan, practice or arrangement for the payment of compensation or
fringe benefits to employees generally, or to any class or group of employees,
which the Company now has lawfully put into effect, including, without
limitation, any retirement, pension, savings and stock purchase plan, insurance,
death and disability benefits and executive short-term Compensations.

                                   SECTION 16
                               REQUIREMENTS OF LAW

         16.1     Requirements of Law. The issuance of stock and the payment of
cash pursuant to the Plan shall be subject to all applicable laws, rules and
regulations.

         16.2     Federal Securities Law Requirements. If, and to the extent,
required by law, if a Participant is an officer or director of the Company
within the meaning of Section 16 of the 1934 Act, Awards granted hereunder shall
be subject to all conditions required under Rule 16b-3, or any successor rule
promulgated under the 1934 Act, to qualify the Award for any exception from the
provisions of Section 16(b) of the 1934 Act available under that Rule. Such
conditions are hereby incorporated herein by reference and shall be set forth in
the agreement with the Participant which describes the Award.

         16.3     Governing Law. The Plan and all agreements hereunder shall be
construed in accordance with and governed by the laws of the State of Colorado.

                                      -14-
<PAGE>   16

                                   SECTION 17
                              DURATION OF THE PLAN

         The Plan shall terminate at such time as may be determined by the Board
of Directors, and no Award shall be granted after such termination. If not
sooner terminated under the preceding sentence, the Plan shall fully cease and
expire at midnight on that date which is the date immediately preceding the
fifth anniversary of the date of adoption of the Plan. Awards outstanding at the
time of the Plan termination may continue to be exercised or earned in
accordance with their terms.

                                   SECTION 18
                                CONFLICT IN TERMS

         In the event that there is a conflict between the terms of this Plan
and any Stock Option granted pursuant to this Plan and/or any Repurchase
Agreement executed in connection with this Plan, the terms of this Plan shall
control.

                                           INDUSTRIALEX MANUFACTURING CORP.

                                           By: /s/ Ahmad Akrami
                                              ----------------------------------
                                                   Ahmad Akrami

                                      -15-<PAGE>   1
                                                                    EXHIBIT 10.3

December 28, 1999

Ahmad Akrami
Industrialex Manufacturing LLC
63 South Pratt Parkway
Longmont, CO 80501

Dear Ahmad:

We write to record our agreement (the "Agreement") with respect to the matters
described herein. Bolder Venture Partners, LLC ("BVP") has reviewed Industrialex
Manufacturing LLC ("Industrialex") and its conformal coating operation
contemplated in its roll up. BVP wishes to pursue the opportunity presented by
Industrialex and to play a significant role in aiding Industrialex in its future
growth and Industrialex wishes to engage BVP for that purpose. Accordingly, BVP
and Industrialex agree as follows:

1.   BVP will lead a complete financing plan which will include the following:

     (a)  an initial U.S.$1,000,000 private placement (the "Initial Placement")
          to close within 30 days after the later of (i) the signing of this
          Agreement, and (ii) the corporate continuance of Industrialex into the
          State of Delaware, subject to the completion, prior to the Initial
          Placement, of a capital reorganization which will result in
          Industrialex having a fully-diluted capital structure consisting of
          8.05 million shares;

     (b)  immediately upon completion of the Initial Private Placement, BVP will
          lead and direct an initial public offering (the "IPO") to raise
          approximately US $2.0 million in a common stock and convertible
          debenture, depending on market conditions, and listing of Industrialex
          shares on the Vancouver Stock Exchange (the "VSE"); and

     (c)  following the IPO, BVP will assist with a placement which will qualify
          Industrialex to list its shares on the Nasdaq Small Cap Market Place
          at a fee to be determined.

     In addition, Industrialex will pay BVP a success fee of U.S. $50,000, on
     closing of the Initial Placement. The time horizon from the Initial
     Placement through the IPO and to completion of the Follow-On Placement
     which will be in the range of 18 - 24 months. BVP is prepared to fund, if
     required, as agent and as principal, not less than 40% of each tranche.

     Industrialex management will provide BVP with a "President's List" of close
     personal friends, relatives and business associates who have expressed
     interest in participating in financings carried out by Industrialex and
     BVP. Industrialex management and BVP will agree on the approximate number
     of Industrialex shares to be reserved for subscribers from the President's
     List. BVP will have the right, but not the obligation, to accept
     subscriptions from the President's List, in the denominations and to the
     persons set out therein. BVP may include one or more a sub-agent in the
     financing process, if required. The sub-agents shall consist of firms
     suggested by either Industrialex

<PAGE>   2

     or BVP. Sub-agents shall receive a percentage of any fees paid to BVP, in
     an amount to be determined by BVP, for any portion of a financing raised by
     them.

2.   Subject to an approved capital reorganization of Industrialex, BVP proposes
     that: (i) the Initial Placement consist of 2,000,000 shares at a price of
     US $0.50 per share (US $1,000,000); (ii) the IPO consist of approximately
     1,000,000 shares at approximately US $1.00 per share (US $1,000,000) and
     $1,000,000 Convertible Debenture 10% coupon convertible at US $1.25; and
     (iii) the Follow-On Placement will raise an amount and at a price to be
     determined with reference to market conditions at the time.

3.   In partial consideration of BVP's services, Industrialex will issue BVP
     warrants (the "Warrants") to purchase 805,000 shares exercisable for a
     period of five years from the date hereof, which will vest in three
     tranches, subject to performance by BVP, as follows:

          400,000 of the Warrants will be exercisable upon execution by
          Industrialex of this Agreement, at a price of U.S.$0.25 per share;

          205,000 of the Warrants will be exercisable upon completion of the
          Initial Placement, at a price per share equal to the private placement
          price (estimated to be US $0.50 per share);

          200,000 of the Warrants will be exercisable upon completion of the
          IPO, at a price per Share equal to the IPO price (estimated to be US
          $1. 00 per share);

     The Warrants and any shares issued upon their exercise will have the
     customary anti-dilution protection and demand and piggyback registration
     rights, which will be set out in the Warrant certificates. If all of the
     Shares of Industrialex are purchased by a third party, unaffiliated to
     Industrialex, its shareholders, officers or directors, prior to the vesting
     of all of the Warrants in accordance with the foregoing schedule, BVP will
     have no entitlement to exercise any Warrants which have not vested at the
     time of completion of that transaction.

4.   The proposed capital structure, depending on market conditions, for this
     project is as follows:

<TABLE>
<CAPTION>
Share Type                 No. of shares      Debt       Price
----------                 -------------      ----       -----
<S>                        <C>             <C>           <C>
Founders                     4,250,000
Private Placement            2,000,000                   $  .50
Initial Public Offering
  Common Stock               1,000,000                   $ 1.00
  Convertible Debenture                    $1,000,000      10% coupon, convertible @ $1.25
</TABLE>

5.   Industrialex will pay BVP's reasonable out-of-pocket expenses up to $3,000
     per month. Expenses exceeding US $3,000 per month will require prior
     approval from Industrialex management in order to qualify for
     reimbursement.

<PAGE>   3
6.   BVP will also serve as corporate development and financial advisor to
     Industrialex for a period of 12 months, and in that capacity will advise
     and assist with respect to matters including, but not limited to: (i)
     strategic planning; (ii) the recruitment of senior management, employees
     and directors; (iii) the financings described above, culminating in the
     securing of a NASDAQ listing with sponsorship from a US investment banking
     firm. This engagement will commence effective December 1, 1999 and will
     continue to have effect until November 30, 2000. In consideration of BVP's
     services in this advisory capacity, Industrialex will pay BVP a monthly fee
     of U.S. $4,500 on the first business day of each month throughout the
     engagement period.

BVP looks forward to aiding current management in developing Industrialex into a
major provider of conformal coating. We believe that the combination of current
management's skills and the experience BVP brings, from a financial markets
perspective, will successfully drive the growth of Industrialex. Throughout the
term of this agreement, BVP will report directly to you on all financing and/ or
operational issues concerning Industrialex.

Please confirm our agreement, set forth above by executing, in the space
indicated below, and returning to us the enclosed copy of this letter.

Sincerely yours,

BOLDER VENTURE PARTNERS, LLC

   /s/ Daryl Yurek
-----------------------
Daryl Yurek
General Partner

Accepted and agreed to as per the terms set forth above, this ___ day of
December 1999.

Industrialex Manufacturing LLC.

By:     /s/ Ahmad Akrami
   ---------------------
     President

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