Document:

SERIAL NUMBER                REG. NUMBER          WORK MARK LIVE/DEAD INDICATOR
-------------                -----------          -----------------------------
1  75836587                 ISHOPNOMARKUP                    LIVE
2  75924383                 NOMARKUP   LIVE
3  75902081                 USHOPNETWORK.COM                 LIVE
4  75902074                 CLLINE.COM LIVE
5  75902521                 SOURCEENGINE.NET                 LIVE
6  75901997                 SAVAUC.COM LIVE
7  75901975                 SAVEAUCTION.COM                  LIVE
8  75808928                 SAVEENGINE LIVE

<PAGE>

ISHOPNOMARKUP.COM

                                                iShopNoMarkUp.com
                                                585 Stewart Ave 6th floor
                                                Garden City N.Y. 11530
                                                Phone Number;(516)222-9301
                                                Fax Number: (516)944-0091
                                                E-mail:ishopnomarkup@aol.com

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

July 25, 2000

John S. Yard
Trademark Examining Attorney
Law Office 104
Commissioner for Trademark
2900 Crystal Drive
Arlington, VA 22202-3513

Re:       Serial No: 75/902520; Applicant ISHOPNOMARKUP.com, Inc.;
Mark:     B2BENGINE.NET

Dear Mr. Yard,

     Pursuant to your letter dated 06/19/00 regarding the above mentioned
application and our telephone conversation today, please accept the following
revisions:

1.    The identification should be changed to Class 35, stating: "Business
      on-line directory services, namely, providing an online index of hypertext
      links for business to business use for finding the businesses which
      provide lowest prices on raw materials."

2.    Pursuant to your recommendation, please amend from the Principal Register
      to the Supplemental Register.

3.    The new corporate address:

          585 Stewart Avenue,
          6th Floor
          Garden City, NY 11530

      In an effort to expedite the process I am taking the liberty of forwarding
via facsimile this letter to your attention as well as via certified mail.

<PAGE>

Thank you for your prompt, courteous and attentive response. If I may be of any
further assistance, please do not hesitate to contact me at (516) 222-9301.

Very truly yours,

/s/ Robert A. Abedi
Robert A. Abedi
General Counsel

<PAGE>

UNITED STATES PATENT AND TRADEMARK OFFICE
--------------------------------------------------------------------------------
SERIAL NO.               APPLICANT
75/902521           ISHOPNOMARKUP.COM, INC.
--------------------------------------------------------------------------------
MARK
SOURCEENGINE.NET
--------------------------------------------------------------------------------
ADDRESS
ISHOPNOMARKUP.COM, INC.
334 MAIN STREET
PORT WASHINGTON, NY 11542

PAPER NO.

ADDRESS:
Commissioner for Trademarks
2900 Crystal Drive
Arlington, VA 22202-3513
WWW.USPTO.GOV

If no fees are enclosed, the address should include the words "Box Responses -
No Fee."

Please provide in all correspondence:
1.   Filing Date, serial number, mark and Applicant's name.
2.   Mailing date of this Office action.
3.   Examining Attorney's name and Law Office number.
4.   Your telephone number and ZIP code.

ACTION NO.
01

MAILING DATE
07/06/00

REF. NO.

TRADEMARK LAW OFFICE 103
Serial Number: 75/902521
Mark:   SOURCEENGINE.NET
**Please Place on Upper Right Corner**
**of Response to Office Action ONLY**

A PROPER RESPONSE TO THIS OFFICE ACTION MUST BE RECEIVED WITHIN 6 MONTHS FROM
THE DATE OF THIS ACTION IN ORDER TO AVOID ABANDONMENT.

FOR YOUR CONVENIENCE AND TO ENSURE PROPER HANDLING OF YOUR RESPONSE, A LABEL HAS
BEEN ENCLOSED. PLEASE ATTACH IT TO THE UPPER RIGHT CORNER OF YOUR RESPONSE. IF
THE LABEL IS NOT ENCLOSED, PRINT OR TYPE THE TRADEMARK LAW OFFICE NO., SERIAL
NO. AND MARK IN THE UPPER RIGHT CORNER OF YOUR RESPONSE.

RE: Serial Number 75/902521 SOURCEENGINE.NET

The assigned examining attorney has reviewed the referenced application and
determined the following:

DESCRIPTIVENESS -  Section 2(e)(1)
The examining attorney refuses registration on the Principal Register because
the proposed mark merely describes the services. Trademark Act Section 2(e)(1),
15 U.S.C. Section 1052(e)(1); TMEP section 1209 et seq.

It is not necessary that a term describe all of the purposes, functions,
characteristics or features of the services to be merely descriptive. It is
enough if the term describes one attribute of the services. In re H.U.D.D.L.E.,
216 USPQ 358 (TTAB 1982); In re MBAssociates, 180 USPae 338 (TTAB 1973)

In this case, the proposed mark SOURCEENGINE.NET is descriptive because the
wording will be immediately understood by prospective customers for its common,
plain language meaning as describing services providing a "source engine".

<PAGE>

                                      -2-

See attached evidence consisting of excerpted articles from the Nexis Research
Data Base and World Wide Web which tends to demonstrate the descriptive
significance of the mark in the relevant field of use as applied to the
services.

In light of the foregoing, the examining attorney concludes that the proposed
mark is at least merely descriptive

Alternatively, to the extent that the proposed mark does not describe any aspect
of the services, then the idea it conveys would be false because, given the
nature of the services, it is plausible that the proposed mark would immediately
be understood as describing some aspect of the services.

If the idea conveyed by the mark is false, and also plausible, then the term is
deceptively misdescriptive and is unregistrable under Trademark Act Section
2(e)(1), 15 U.S.C. Section 1052(e)(1). In re Woodward & Lothrop Inc., 4 USPQ2d
1412 (TTAB 1987); In re Ox-Yoke Originals, Inc., 222 USPQ 352 (TTAB 1983).

Therefore, to the extent that the proposed mark does not describe any aspect of
the services as indicated above, the examining attorney concludes that the
proposed mark would be deceptively misdescriptive and, therefore, in the
al+ernative, registration is refused on that basis as well.

APPLICANT MAY RESPOND
---------------------
Although the examining attorney has refused registration, the applicant may
respond to the refusal to register by submitting evidence and arguments in
support of registration.

INFORMALITIES
-------------
If the applicant chooses to respond to the refusal to register, the applicant
must also respond to the following informalities.

Please note that the following issues are being raised in this letter in order
to address every problem with the application. However, this does not obviate
the original determination of non-registrability by the examining attorney.
Applicant must still respond to the refusal by submitting arguments in support
of registration.

IDENTIFICATION OF SERVICES
--------------------------
The identification of services is unacceptable in its present form and must be
amended to read as follows, if accurate:

      "Computer services, namely providing search engines for obtaining data on
      a global computer network for manufacturers, wholesalers, distributors,
      and suppliers." International Class 42.

Please note that, while an application may be amended to clarify or limit the
identification, additions to the identification are not permitted. 37 C.F.R.
Section 2.71(b). Therefore, the applicant may not amend to include any goods or
services that are not within the scope of the goods and/or services recited in
the present identification.

<PAGE>

                                      -3-

SPECIMEN
--------
The specimen is unacceptable as evidence of actual service mark use because the
mark is not show in relation to the identified service. The specimen must show
use of the mark "in the sale or advertising of services." Trademark Act Section
45, 15 U.S.C. Section 1127; In re Universal Oil Products Co., 476 F.2d 653, 177
USPQ 456 (CCPA 1973); TMEP section 1301.02. Therefore, the specimen must show
the mark in reference to the particular services identified.

The applicant must submit one specimen showing the mark as it s used in
commerce. 37 C.F.R. Section 2.58. Examples of acceptable specimens are signs,
photographs, brochures or advertisements that show the mark used in the sale or
advertising of the services. TMEP section 1301.04. The applicant must verify,
with an affidavit or a declaration under 37 C.F.R. Section 2.20, that the
substitute specimen was in use in commerce at least as early as the filing date
of the application. 37 C.F.R. Section 2.59(a); TMEP section 905.10.

OFFICE SEARCH
-------------
The examining attorney has searched the Office records and has found no similar
registered or pending mark which would bar registration under Trademark Act
Section 2(d), 15 U.S.C. Section 1052(d). TMEP section 1105.01.

If the applicant has any questions or needs assistance in responding to this
Office action, please telephone the assigned examining attorney.

                                    /s/ Tracy Cross
                                    Tracy Cross
                                    Examining Attorney
                                    Law Office 103
                                    (703) 308-9103 ext.224

<PAGE>

UNITED STATES PATENT AND TRADEMARK OFFICE
--------------------------------------------------------------------------------
SERIAL NO.               APPLICANT
75/924383           ISHOPNOMARKUP.COM, INC.
--------------------------------------------------------------------------------
MARK
NOMARKUPT
--------------------------------------------------------------------------------
ADDRESS
TIMOTHY E. BADEAUX
ISHOPNOMARKUP.COM
334 MAIN STREET
PORT WASHINGTON, NEW YORK  11050

PAPER NO.

ADDRESS:
Commissioner for Trademarks
2900 Crystal Drive
Arlington, VA 22202-3513
WWW.USPTO.GOV

If no fees are enclosed, the address should include the words "Box Responses -
No Fee."

Please provide in all correspondence:
1.   Filing Date, serial number, mark and Applicant's name.
2.   Mailing date of this Office action.
3.   Examining Attorney's name and Law Office number.
4.   Your telephone number and ZIP code.

ACTION NO.
01

MAILING DATE
07/17/00

REF. NO.

TRADEMARK LAW OFFICE 13
Serial Number: 75/924383
Mark:   NOMARKUP
**Please Place on Upper Right Corner**
**of Response to Office Action ONLY**

A PROPER RESPONSE TO THIS OFFICE ACTION MUST BE RECEIVED WITHIN 6 MONTHS FROM
THE DATE OF THIS ACTION IN ORDER TO AVOID ABANDONMENT.

FOR YOUR CONVENIENCE AND TO ENSURE PROPER HANDLING OF YOUR RESPONSE, A LABEL HAS
BEEN ENCLOSED. PLEASE ATTACH IT TO THE UPPER RIGHT CORNER OF YOUR RESPONSE. IF
THE LABEL IS NOT ENCLOSED, PRINT OR TYPE THE TRADEMARK LAW OFFICE NO., SERIAL
NO. AND MARK IN THE UPPER RIGHT CORNER OF YOUR RESPONSE.

RE: Serial Number 75/924383

The assigned examining attorney has reviewed the referenced application and
determined the following:

Section 2(e)(1) Refusal; Merely Descriptive
-------------------------------------------

The examining attorney refuses registration on the Principal Register because
the proposed mark merely describes the services. Trademark Act Section 2(e)(1),
15 U.S.C. Section 1052(e)(1); TMEP section 1209 et seq.

A mark is merely descriptive under Trademark Act Section 2(e)(1), 15 U.S.C.
1052(e)(1), if it describes an ingredient, quality, characteristic, function,
feature, purpose or use of the relevant services.  In re Gyulay, 820 F.2d 1216,
3 USPQ2d 1009 9 (Fed.Cir.1987); In re Bid &b Breakfast Registry, 791 F.2d 157,
229 USPQ 818 (Fed. Cir.1986); In re MetPath Inc. 223 USPQ 88 (TTAB 1984); In re
Bright-Crest, Ltd., 204 &USPQ 591 (TTAB 1979); TMEP section 1209.01(b).

<PAGE>

The applicant seeks to register the mark "NOMARKUP" for "e-commerce retailer
that offers products online at no markup."  However, the applicant's mark is
merely descriptive because it will immediately convey to prospective consumers a
significant feature of the applicant's retail services, namely that the
applicant sells products at no mark up.

The phrase "mark up" is defined as "to mark for sale at a higher price."  See
attached definition for the American Heritage Dictionary of the English
Language, (3rd ed. 1992).  The phrase "no mark up" is commonly used to refer to
the quality of retail establishments that the stores do not mark their products
for sale at a higher price.  See attached articles from LEXIS-NEXIS research.
Thus, the applicant's mark will immediately convey to prospective consumers a
significant aspect of the applicant's services, namely that the applicant does
not mark its goods for sale at higher prices.  The fact that the applicant
combines the terms into one word does not diminishj the fact that the mark will
immediately convey to prospective consumers a significant feature of the
services.  Because the mark merely describes the services, registration is
refused under 15. U.S.C. ss1052 (e)(1).

Although the examining attorney has refused registration, the applicant may
respond to the refusal to register by submitting evidence and arguments in
support of registration.

If the applicant chooses to respond to the refusal to register, the applicant
must also respond to the following informalities.

APPLICANT MUST AMEND THE RECITATION OF SERVICES
-----------------------------------------------

The recitation of services is unacceptable as indefinite because it does not
sufficiently specify the services the applicant intends to offer.  TMEP section
1301.05.  Specifically, the recitation does not specify the nature of the online
retail services.  Also, the recitation does not list the types of products it
intends to offer via its retail services.  The applicant must amend the
recitation to clarify the above ambiquities.  The applicant may adopt the
following recitation, if accurate:

Online retail store services featuring [applicant must specify the types of
products it intends to offer, e.g. clothing, home electronics roducts, books,
etc.] IC 035.

Please note that, while an application may be amended to clarify or limit the
identification, additions to the identificaiton are not permitted.  37 C.F.R.
Section 2.71(a); TMEP section 804.09.  Therefore, the applicant may not amend to
include any services that are not within the scope of the services recited in
the present identification.

The PTO's Acceptable ID Manual is available on the Patent and Trademark Office's
home page at www.uspto.gov.  This manual includes explanations and notices of
classification policy that may be beneficial to the applicant when amending the
recitation of services.

NOTICE OF FEE INCREASE
----------------------

Effective January 10, 2000, the following trademark filing fees increased:

<PAGE>

<TABLE>
<CAPTION>

37 C.F.R. SECTION     DESCRIPTION OF PAPER FILED         OLD FEE   NEW FEE AMOUNT
-----------------     --------------------------         AMOUNT    (EFFECTIVE 1/10/2000)
                                                         ------    ---------------------

<S>              <C>                                  <C>         <C>
2.6(a)(1)           Application for Registration,          $245        $325
                    per class
2.6(a)(4)           Request for Extension of time
                    for filing Statement of Use,
                    per class                              $100        $150
2.6(a)(5)           Application for Renewal, per class     $300        $400
2.6(a)(13)          Filing Section 15 Affidavit, per class $100        $200
2.6(a)(16)          Petition for Cancellation, per class   $200        $300
2.6(a)(17)          Notice of Opposition, per class        $200        $300
</TABLE>

See notices at 64 FR 67774 (Dec. 3, 1999) and 1229 TMOG 12 (Dec. 7, 1999).  This
notice is for future reference only.  The applicant has complied with the fee
requirements for the present application at this time.

If the applicant has any questions or needs assistance in responding to this
Office action, please telephone the assigned examining attorney.

                              /s/ Branden Ritchie
                              Branden Ritchie
                              Examining Attorney
                              Law Office 113
                              (703) 308-9113 x229

<PAGE>

                          THE UNITED STATES OF AMERICA

                          CERTIFICATE OF REGISTRATION
                               PRINCIPAL REGISTER

         The Mark shown in this certificate has been registered in the United
States Patent and Trademark Office to the named registrant.

         The records of the United States Patent and Trademark Office show that
an application for registration of the Mark shown in this Certificate was filed
in the Office; that the application was examined and determined to be in
compliance with the requirements of the law and with the regulations prescribed
by the Commissioner of Patents and Trademarks; and that the Applicant is
entitled to registration of the Mark under the Trademark Act of 1946, as
Amended.

         A copy of the Mark and pertinent data from the application are part of
this certificate.

         This registration shall remain in force for TEN (10) years, unless
terminated earlier as provided by law, and subject to compliance with the
provisions of Section 8 of the Trademark Act of 1946, as Amended.

                                      /s/
                                      Commission of Patents and Trademarks

[Corporate Seal]

<PAGE>

INT. CL.: 35
PRIOR .S. CLS.: 100, 101 AND 102
UNITED STATES PATENT AND TRADEMARK OFFICE                   REG. NO. 2,379,738
                                                        REGISTERED AUG. 22, 2000
-------------------------------------------------------------------------------

                                  SERVICE MARK
                               PRINCIPAL REGISTER

                                 ISHOPNOMARKUP

ISHOPNOMARKUP.COM INC. (NEVADA CORPORATION)
334 MAIN STREET
PORT WASHINGTON, NY  11050

FOR: PROVIDING AN ONLINE DIRECTORY AND ORDERING SERVICE WHICH LISTS THE GOODS
OF OTHERS AND WHICH FACILITIES THE PURCHASE OF THOSE GOODS DIRECTLY FROM THE
SUPPLIER BY ALLOWING CONSUMERS TO PLACE ORDERS FOR THOSE GOODS VIA A WEB SITE ON
A GLOBAL COMPUTER INFORMATION NETWORK, IN CLASS 35 (U.S. CLS. 100, 101 AND 102).

FIRST USE 8-20-1999; IN COMMERCE 8-20-1999

SER.NO. 75-836,587,  FILED 11-1-1999.

BRANDON RITCHIE, EXAMINING ATTORNEY

<PAGE>

                         REQUIREMENTS FOR MAINTAINING A
                         FEDERAL TRADEMARK REGISTRATION

                     SECTION 8: AFFIDAVIT OF CONTINUED USE

The registration shall remain in force for 10 years, except that the
registration shall be canceled for failure to file an Affidavit of Continued Use
under Section 8 of the Trademark Act, 15 U.S.C. ss 1058, upon the expiration of
the following time periods:

i)   At the end of 6 years following the date of registration.
ii)  At the end of each successive 10-year period following the date of
     registration.

FAILURE TO FILE A PROPER SECTION 8 AFFIDAVIT AT THE APPROPRIATE TIME WILL RESULT
IN THE CANCELLATION OF THE REGISTRATION.

NO FURTHER NOTICE OR REMINDER OF THESE REQUIREMENTS WILL BE SENT TO THE
REGISTRANT BY THE PATENT AND TRADEMARK OFFICE. IT IS RECOMMENDED THAT THE
REGISTRANT CONTACT THE PATENT AND TRADEMARK OFFICE APROXIMATELY ONE YEAR BEFORE
THE EXPIRATION OF THE TIME PERIODS SHOWN ABOVE TO DETERMINE THE REQUIREMENTS AND
FEES FOR THE FILINGS REQUIRED TO MAINTAIN THE REGISTRATION.ISHOPNOMARKUP.COM, INC.

                             1999 STOCK OPTION PLAN

           1. PURPOSES OF THIS PLAN. The purposes of this 1999 Stock Option Plan
are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees and
Consultants and to promote the success of the Company's business. Options
granted hereunder may be either "incentive stock options" as defined in Section
422 of the Internal Revenue Code of 1986, as amended, or "non-statutory stock
options," at the discretion of the Board and as reflected in the terms of the
written stock option agreement.

           2. DEFINITIONS. As used herein, the following definitions shall
apply:

               A. "BOARD" shall mean the Committee, if one has been appointed,
or the Board of Directors of the Company if no Committee is appointed.

               B. "CODE" shall mean the Internal Revenue Code of 1986, as
amended.

               C. "COMMON STOCK" shall mean the $0.001 par value common stock of
the Company.

               D. "COMPANY" shall mean shall mean iShopNoMarkup.com, Inc., a
Nevada Corporation.

               E. "COMMITTEE" shall mean the Committee appointed by the Board in
accordance with paragraph (a) of Section 4 of this Plan, if one is appointed, or
the Board if no committee is appointed.

               F. "CONSULTANT" shall mean any person who is engaged by the
Company or by any Parent or Subsidiary to render consulting services and is
compensated for such consulting services, but does not include a director of the
Company who is compensated for services as a director only with the payment of a
director's fee by the Company.

               G. "CONTINUOUS STATUS AS AN EMPLOYEE" shall mean the absence of
any interruption or termination of service as an Employee. Continuous Status as
an Employee shall not be considered interrupted in the case of sick leave,
military leave, or any other leave of absence approved by the Board; provided
that such leave is for a period of not more than 90 days or re-employment upon
the expiration of such leave is guaranteed by contract or statute.

                                       1

<PAGE>

               H. "EMPLOYEE" shall mean any person, including officers and
directors, employed by the Company or by any Parent or Subsidiary. The payment
of a director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

               I. "INCENTIVE STOCK OPTION" shall mean an Option which is
intended to qualify as an incentive stock option within the meaning of Section
422 of the Code and which shall be clearly identified as such in the written
Stock Option Agreement provided by the Company to each Optionee granted an
Incentive Stock Option under this Plan.

               J. "NON-EMPLOYEE DIRECTOR" shall mean a director who:

                               (i) Is not currently an officer (as defined in
           section 16a-1(f) of the Securities Exchange Act of 1934, as amended)
           of the Company or of a Parent or Subsidiary or otherwise currently
           employed by the Company or by a Parent or Subsidiary.

                               (ii) Does not receive compensation, either
           directly or indirectly, from the Company or from a Parent or
           Subsidiary, for services rendered as a Consultant or in any capacity
           other than as a director, except for an amount that does not exceed
           the dollar amount for which disclosure would be required pursuant to
           Item 404(a) of Regulation S-K adopted by the United States Securities
           and Exchange Commission.

                               (iii) Does not possess an interest in any other
           transaction for which disclosure would be required pursuant to Item
           404(a) of Regulation S-K adopted by the United States Securities and
           Exchange Commission.

                     K. "NONSTATUTORY STOCK OPTION" shall mean an Option granted
           under this Plan which does not qualify as an Incentive Stock Option
           and which shall be clearly identified as such in the written Stock
           Option Agreement provided by the Company to each Optionee granted a
           Nonstatutory Stock Option under this Plan. To the extent that the
           aggregate fair market value of Optioned Stock to which Incentive
           Stock Options granted under Options to an Employee are exercisable
           for the first time during any calendar year (under this Plan and all
           plans of the Company or any Parent or Subsidiary) exceeds $100,000,
           such Options shall be treated as Nonstatutory Stock Options under
           this Plan. The aggregate fair market value of the Optioned Stock
           shall be determined as of the date of rant of each Option and the
           determination of which Incentive Stock Options shall be treated as
           qualified incentive stock options under Section 422 of the Code and
           which Incentive Stock Options exercisable for the first time in a
           particular year in excess of the $100,000 limitation shall be treated
           as Nonstatutory Stock Options shall be determined based on the order
           in which such Options were granted in accordance with Section 422(d)
           of the Code.

                                       2

<PAGE>

               L. "OPTION" shall mean an Incentive Stock Plan, a Nonstatutory
Stock Option or both as identified in a written Stock Option Agreement
representing such stock option granted pursuant to this Plan.

               M. "OPTIONED STOCK" shall mean the Common Stock subject to an
Option.

               N. "OPTIONEE" shall mean an Employee or other person who is
granted an Option.

               O. "PARENT" shall mean a "parent corporation" of the Company,
whether now or hereafter existing, as defined in Section 424(e) of the Code.

               P. "PLAN" shall mean this 1999 Stock Option Plan.

               Q. "SHARE" shall mean a share of the Common Stock of the Company,
as adjusted in accordance with Section 11 of this Plan.

               R. "STOCK OPTION AGREEMENT" shall mean the agreement to be
entered into between he Company and each Optionee which shall set forth the
terms and conditions of each Option granted to each Optionee, including the
number of Shares underlying such Option and the exercise prices of each Option
granted to such Optionee under such agreement.

               S. "SUBSIDIARY" shall mean a "subsidiary corporation" of the
Company, whether now or hereafter existing, as defined in Section 424(f) of the
Code.

           3. STOCK SUBJECT TO THIS PLAN. Subject to the provisions of Section
11 of this Plan, the maximum aggregate number of Shares which may be optioned
and sold under this Plan is 5,000,000 shares of Common Stock. The Shares may be
authorized, but unissued, or reacquired Common Stock. If an Option should expire
or become unexercisable for any reason without having been exercised in full,
the unpurchased Shares which were subject thereto shall, unless the Plan shall
have been terminated, become available for future grant under this Plan.

           4. ADMINISTRATION OF THIS PLAN.

               A. PROCEDURE. This Plan shall be administered by the Board or a
           Committee appointed by the Board consisting of two or more
           Non-Employee Directors to administer this Plan on behalf of the
           Board, subject to such terms and conditions as the Board may
           prescribe.

                   (i) Once appointed, the Committee shall continue to serve
               until otherwise directed by the Board (which for purposes of this
               paragraph (a)(i) of this Section 4 shall be the Board of
               Directors of the Company). From time to time, the Board may
               increase

                                       3
<PAGE>

           the size of the Committee and appoint additional members thereof,
           remove members (with or without cause) and appoint new members in
           substitution thereof, fill vacancies however caused, or remove all
           members of the Committee and thereafter directly administer this
           Plan.

                   (ii) Members of the Board who are granted, or have been
               granted, Options may vote on any matters affecting the
               administration of this Plan or the grant of any Options pursuant
               to this Plan.

               B. POWERS OF THE BOARD. Subject to the provisions of this Plan,
           the Board shall have the authority, in its discretion:

                   (i) To grant Incentive Stock Options, in accordance with
           Section 422 of the Code, and Nonstatutory Stock Options or both as
           provided and identified in a separate written Stock Option Agreement
           to each Optionee granted such Option or Options under this Plan;
           provided however, that in no event shall an Incentive Stock Option
           and a Nonstatutory Stock Option granted to any Optionee under a
           single Stock Option Agreement be subject to a "tandem" exercise
           arrangement such that the exercise of one such Option affects the
           Optionee's right to exercise the other Option granted under such
           Stock Option Agreement;

                   (ii) To determine, upon review of relevant information and in
           accordance with Section 8(b) of this Plan, the fair market value of
           the Common Stock;

                   (iii) To determine the exercise price per Share of Options to
           be granted, which exercise price shall be determined in accordance
           with Section 8(a) of this Plan;

                   (iv) To determine the Employees or other persons to whom, and
           the time or times at which, Options shall be granted and the number
           of Shares to be represented by each Option;

                   (v) To interpret this Plan;

                   (vi) To prescribe, amend and rescind rules and regulations
           relating to this Plan;

                   (vii) To determine the terms and provisions of each Option
           granted (which need not be identical) and, with the consent of the
           holder thereof, modify or amend each Option;

                   (viii) To accelerate or defer (with the consent of the
           Optionee) the exercise date of any Option, consistent with the
           provisions of Section 7 of this Plan;

                                       4

<PAGE>

                   (ix) 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 Board; and

                   (x) To make all other determinations deemed necessary or
           advisable for the administration of this Plan.

               C. EFFECT OF BOARD'S DECISION. All decisions, determinations and
           interpretations of the Board shall be final and binding on all
           Optionees and any other permissible holders of any Options granted
           under this Plan.

           5.        ELIGIBILITY.

               A. PERSONS ELIGIBLE. Options may be granted to any person
           selected by the Board. Incentive Stock Options may be granted only to
           Employees. An Employee, who is also a director of the Company, its
           parent or Subsidiary, shall be treated as an Employee for purposes of
           this Section 5. An Employee or other person who has been granted an
           Option may, if he is otherwise eligible, be granted an additional
           Option or Options.

               B. NO EFFECT ON RELATIONSHIP. This Plan shall not confer upon any
           Optionee any right with respect to continuation of employment or
           other relationship with the Company nor shall it interfere in any
           with his right or the Company's right to terminate his employment or
           other relationship at any time.

           6. TERM OF PLAN. This Plan became effective on August 20, 1999. It
shall continue in effect until August 19, 2009, unless sooner terminated under
Section 13 of this Plan.

           7. TERM OF OPTION. The term of each Option shall be 10 years from the
date of grant thereof or such shorter term as may be provided in the Stock
Option Agreement. However, in the case of an Option granted to an Optionee who,
at the time the Option is granted, owns stock represented more than 10% of the
total combined voting power of all classes of stock of the Company or any Parent
or Subsidiary, if the Option is an Incentive Stock Option, the term of the
Option shall be five years from the date of grant thereof or such shorter time
as may be provided in the Stock Option Agreement.

           8.        EXERCISE PRICE AND CONSIDERATION.

               A. EXERCISE PRICE. The per Share exercise price for the Shares to
           be issued pursuant to exercise of an Option shall be such price as is
           determined by the Board, but the per Share exercise price under an
           Incentive Stock Option shall be subject to the following:

                                       5

<PAGE>

                   (i) If granted to an Employee who, at the time of the grant
of such Incentive Stock Option, owns stock representing more than 10% of the
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the per Share exercise price shall not be less than 110% of the fair market
value per Share on the date of grant.

                   (ii) If granted to any other Employee, the per Share exercise
price shall not be less than 100% of the fair market value per Share on the date
of grant.

               B. DETERMINATION OF FAIR MARKET VALUE. The fair market value per
           Share on the date of grant shall be determined as follows:

                   (i) If the Commons Stock is listed on the New York Stock
Exchange, the American Stock Exchange or such other securities exchanges
designated by the Board, or admitted to unlisted trading privileges on any such
exchange, or if the Common Stock is quoted on a National Association of
Securities Dealers, Inc. system that reports closing prices, the fair market
value shall be the closing price of the Common Stock as reported by such
exchange or system on the day the fair market value is to be determined, or if
no such prices is reported for such day, then the determination of such closing
price shall be as of the last immediately preceding day on which the closing
prices is so reported;

                   (ii) If the Common Stock is not so listed or admitted to
unlisted trading privileges or so quoted, the fair market value shall be the
average of the last reported highest bid and the lowest asked prices quoted on
the national Association of Securities Dealers, Inc. Automated Quotations System
or, if not so quoted, then y the National Quotation Bureau, Inc. on the day the
fair market value is determined; or

                   (iii) If the Common Stock is not so listed or admitted to
unlisted trading privileges or so quoted, and bid and asked prices are not
reported, the fair market value shall be determined in such reasonable manner as
may be prescribed by the Board.

           C. CONSIDERATION AND METHOD OF PAYMENT. The consideration to be paid
for the Shares to be issued upon exercise of an Option, including the method of
payment, shall be determined by the Board and may consist entirely of cash,
check, other shares of Common Stock having a fair market value on the date of
exercise equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised, or any combination of such methods of payment, or
such other consideration and method of payment for the issuance of Shares to the
extent permitted under the Nevada General Corporation Lay.

9.         EXERCISE OF OPTION.

           A. PROCEDURE FOR EXERCISE: RIGHTS AS A SHAREHOLDER. Any Option
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Board, including performance criteria with respect to the
Company and/or the Optionee, and as shall be permissible under the terms of this
Plan.

                                       6

<PAGE>

           In the sole discretion of the Board, at the time of the grant of an
Option or Subsequent thereto but prior to the exercise of an Option, an Optionee
may e provided with the right to exchange, in a cashless transaction, all or
part of the Option for Common Stock of the Company on terms and conditions
determined by the Board.

           An Option may not be exercised for a fraction of a Share.

           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 Stock
Option Agreement 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. Full payment, as authorized by the Board, may consist of a
consideration and method of payment allowable under Section 8(c) and this
Section 9(a) of this Plan. Until the issuance (as evidenced by the appropriate
entry on the books of the Company or of the duly authorized transfer agent of
the Company) of the stock certificate evidencing such Shares, no right to vote
or receive dividends or any other rights as a shareholder shall exist with
respect to the Optioned Stock, notwithstanding the exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 11 of this Plan.

           Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of this
Plan and for sale under the Option, by the number of Share as to which the
Option is exercise.

           B. TERMINATION OF STATUS AS AN EMPLOYEE. In the case of an Incentive
Stock Option, if any Employee ceases to serve as an Employee, he may, but only
within such period of time not exceeding three months as is determined by the
Board at the time of grant of the Option after the date he ceases to be an
Employee of the Company, exercise his Option to the extent that he was not
entitled to exercise the Option at the date of such termination, or if he does
not exercise such Option (which he was entitled to exercise) within the time
specified herein, the Option shall terminate.

           C. DISABILITY OF OPTIONEE. In the case of an Incentive Stock Option,
notwithstanding the provisions of Section 9(b) above, in the event of an
Employee is unable to continue his employment with the Company as a result of
his total and permanent disability (as defined in section 22(e)(3) of the Code),
he may, but only within such period of time not exceeding 12 months as is
determined by the Board at the time of grant of the Option from the date of
termination, exercise his Option to the extent he was entitled to exercise it at
the date of such termination. To the extent that he was not entitled to exercise
the Option at the date of termination, or if he does not exercise such Option
(which he was entitled to exercise) within the time specified herein, the Option
shall terminate.

           D. DEATH OF OPTIONEE. In the case of an Incentive Stock Option, in
the event of the death of the Optionee:

                                       7

<PAGE>

                     (i) During the term of the Option if the Optionee was at
the time of his death an Employee and had been in Continuous Status as an
Employee or Consultant since the date of grant of the Option, the Option may be
exercised, at any time within 12 months following the date of death, by the
Optionee's estate or by a person who acquired the right to exercise the Option
by bequest or inheritance, but only to the extent that the right to exercise
would have accrued had the Optionee continued living and remained in Continuous
Status as an Employee 12 months after the date of death; or

                     (ii) Within such period of time not exceeding three months
as is determined by the Board at the time of grant of the Option after the
termination of Continuous Status as and Employee, the Option may be exercised,
at any time within 12 months following the ate of death, by the Optionee's
estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, but only to the extent that the right to exercise had accrued at
the date of termination.

           10. NONTRANSFERABILITY OF OPTIONS. Unless permitted by the Code, the
case of an Incentive Stock 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 OR MERGER. Subject to
any required action by the shareholders of the Company, the number of Shares
covered by each outstanding Option, and the number of Shares which have been
authorized for issuance under this Plan but as to which no Options have yet been
granted or which have been returned to this Plan upon cancellation or expiration
of any Option, as well as the price per Share covered by each such outstanding
Option, shall be proportionately adjusted for any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the 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 issuance by the Company
of shares of stock of any class, or securities convertible in 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 subject to an Option.

           In the event of the proposed dissolution or liquidation of the
Company, the Option will terminated immediately prior to the consummation of
such proposed action, unless otherwise provided by the Board. The Board may, in
the exercise of its sole discretion in such instances, declare that any Option
shall terminate as of a date fixed by the Board and give each Optionee the right
to exercise his Option as to all or any part of the Optioned Stock, including
shares as to which the Option would not otherwise be exercisable. In the event
of the proposed sale of all or substantially all of the assets of the Company,
or the merger of the Company with or into another entity in a transaction in

                                       8

<PAGE>

which the Company is not the survivor, the Option shall be assumed or an
equivalent option shall be substituted by such successor corporation or a parent
of subsidiary of such successor corporation, unless the Board determines, in the
exercise of its sole discretion and in lieu of such assumption or substitution,
that the Optionee shall have the right to exercise the Option as to all of the
Optioned Stock, including Shares as to which the Option would not otherwise be
exercisable. If the Board makes an Option fully exercisable in lieu of
assumption or substitution in the event of such a merger or sale of assets, the
Board shall notify the Optionee that the Option shall be fully exercisable for a
period of 30 days from the date of such notice, and the Option will terminate
upon the expiration of such period.

           12. TIME OF GRANTING OPTIONS. The date of grant of an Option shall,
for all purposes, be the date on which the Board makes the determination
granting such Option. Notice of the determination shall be given to each
Employee or other person to whom an Option is so granted within a reasonable
time after the date of such grant. Within a reasonable time after the date of
the grant of an Option, the Company shall enter into and deliver to each
Employee or other person granted such Option a written Stock Option Agreement as
provided in Sections 2(r) and 16 hereof, setting forth the terms and conditions
of such Option and separately identifying the portion of the Option which is an
Incentive Stock Option and/or the portion of such Option which is a Nonstatutory
Stock Option.

           13.       AMENDMENT AND TERMINATION OF THIS PLAN.

                     A. AMENDMENT AND TERMINATION. The Board may amend or
           terminate this Plan from time to time in such respects as the Board
           may deem advisable; provided that, the following revisions or
           amendments shall require approval of the shareholders of the Company
           in the manner described in Section 17 of this Plan;

                         (i) An increase in the number of Shares subject to this
           Plan above 5,000,000 Shares, other than in connection with an
           adjustment under Section 11 of this Plan;

                         (ii) Any change in the designation of the class of
           Employees eligible to be granted Incentive Stock Options; or

                         (iii) Any material amendment under this Plan that would
           have to be approved by the shareholders of the Company for the Board
           to continue to be able to grant Incentive Stock Options under this
           Plan.

                     B. EFFECT OF AMENDMENT OR TERMINATION. Any such amendment
           or termination of this Plan shall not affect Options already granted
           and such Options shall remain in full force and effect as if this
           Plan had not been amended or terminated, unless mutually agreed
           otherwise between the Optionee and the Board, which agreement must be
           in writing and signed by the Optionee and the Company.

                                       9

<PAGE>

           14. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option 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 of
1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and
regulations promulgated thereunder, applicable state securities laws, and the
requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of legal counsel for the Company with
respect to such compliance.

           As a condition to the existence 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 and such other
representations and warranties which in the opinion of legal counsel for the
Company, are necessary or appropriate to establish an exemption from the
registration requirements under applicable federal and state securities laws
with respect to the acquisition of such Shares.

           15. RESERVATION OF SHARES. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of this Plan. Inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's legal counsel to be necessary for the lawful issuance
and sale of any Share hereunder, shall relieve the Company of any liability
relating to the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

           16. STOCK OPTION AGREEMENT. Each Option granted to an Employee or
other persons shall be evidenced by a written Stock Option Agreement in such
form as the Board shall approve.

           17. SHAREHOLDER APPROVAL. Continuance of this Plan shall be subject
to approval by the shareholders of the Company on or before August 19, 2000.
Such shareholder approval and any shareholder approval required under Section 13
of this Plan, may be obtained at a duly held shareholders meeting if the votes
cast of favor of the approval exceed the votes cast opposing the approval, or by
unanimous written consent of the shareholders in accordance with the provisions
of the Nevada General Corporation Law.

           18. INFORMATION TO OPTIONEE. The company shall proved to each
Optionee, during the period for which such Optionee has one or more Options
outstanding, copies of all annual reports and other information which are
provided to all shareholders of the Company. The Company shall not be required
to provide such information if the issuance of Options under this Plan is
limited to key employees whose duties in connection with the Company assure
their access to equivalent information.

                                       10

<PAGE>

           19. GENDER. As used herein, the masculine, feminine and neuter
genders shall be deemed to include the others in all cases where they would so
apply.

           20. CHOICE OF LAW. ALL QUESTIONS CONCERNING THE CONSTRUCTION,
VALIDITY AND INTERPRETATION OF THIS PLAN AND THE INSTRUMENTS EVIDENCING OPTIONS
WILL BE GOVERNED BY THE INTERNAL LAW, AND NOT THE LAW OF CONFLICTS, OF THE STATE
OF NEVADA.

           IN WITNESS WHEREOF, the company has caused its duly authorized
officer to exercise this Plan effective as of August 20, 1999.

                                   ISHOPNOMARKUP.COM, INC.,

                                   By: _____________________________________
                                           Anthony Knight, Chairman

                                       11

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