Document:

<PAGE>

                                                                   Exhibit 10.1
                          WATCHGUARD TECHNOLOGIES, INC.

                    RAPIDSTREAM, INC. 1998 STOCK OPTION PLAN

                         Amended as of October 11, 2000

     1.   Purposes of the Plan. The purposes of this Stock Plan are to attract
          --------------------
and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees, Directors and
Consultants and to promote the success of the Company's business. Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock
Options, as determined by the Administrator at the time of grant. Stock Purchase
Rights may also be granted under the Plan.

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

          (a)   "Administrator" means the Board or any of its Committees as
                 --------------
shall be administering the Plan in accordance with Section 4 hereof.

          (b)   "Applicable Laws" means the requirements relating to the
                 ---------------
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any other country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan.

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

          (d)   "Code" means the Internal Revenue Code of 1986, as amended.
                 ----

          (e)   "Committee"  means a committee of Directors appointed by the
                 ---------
Board in accordance with Section 4 hereof.

          (f)   "Common Stock" means the Common Stock of the Company.
                 ------------

          (g)   "Company" means RapidStream, Inc., a California corporation.
                 -------

          (h)   "Consultant" means any person who is engaged by the Company or
                 ----------
any Parent or Subsidiary to render consulting or advisory services to such
entity.

          (i)   "Director" means a member of the Board of Directors of the
                 --------
Company.

          (j)   "Disability" means total and permanent disability as defined in
                 ----------
Section 22(e)(3) of the Code.

          (k)   "Employee" means any person, including Officers and Directors,
                 --------
employed by the Company or any Parent or Subsidiary of the Company. A Service
Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers

<PAGE>

between locations of the Company or between the Company, its Parent, any
Subsidiary, or any successor. For purposes of Incentive Stock Options, no such
leave may exceed ninety days, unless reemployment upon expiration of such leave
is guaranteed by statute or contract. If reemployment upon expiration of a leave
of absence approved by the Company is not so guaranteed, on the 181st day of
such leave any Incentive Stock Option held by the Optionee shall cease to be
treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option. Neither service as a Director nor payment of a
director's fee by the Company shall be sufficient to constitute "employment" by
the Company.

    (l)   "Exchange Act" means the Securities Exchange Act of 1934, as amended.
           ------------

    (m)   "Fair Market Value" means, as of any date, the value of Common Stock
           -----------------
determined as follows:

           (i)   If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation the Nasdaq National
Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market
Value shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

           (ii)  If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high bid and low asked prices for the Common Stock
on the last market trading day prior to the day of determination; or

           (iii) In the absence of an established market for the Common Stock,
the Fair Market Value thereof shall be determined in good faith by the
Administrator.

    (n)   "Incentive Stock Option" means an Option intended to qualify as an
           ----------------------
incentive stock option within the meaning of Section 422 of the Code.

    (o)   "Nonstatutory Stock Option" means an Option not intended to qualify as
           ------------------------
an Incentive Stock Option.

    (p)   "Officer" means a person who is an officer of the Company within the
           -------
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

    (q)   "Option" means a stock option granted pursuant to the Plan.
           ------

    (r)   "Option Agreement" means a written or electronic agreement between the
           ----------------
Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the
Plan.

    (s)   "Option Exchange Program" means a program whereby outstanding Options
           -----------------------
are exchanged for Options with a lower exercise price.

                                      -2-

<PAGE>

       (t)     "Optioned Stock" means the Common Stock subject to an Option or a
                --------------
Stock Purchase Right.

       (u)     "Optionee" means the holder of an outstanding Option or Stock
                --------
Purchase Right granted under the Plan.

       (v)     "Parent" means a "parent corporation," whether now or hereafter
                ------
existing, as defined in Section 424(e) of the Code.

       (w)     "Plan" means this 1998 Stock Option Plan.
                ----

       (x)     "Restricted Stock" means shares of Common Stock acquired pursuant
                ----------------
to a grant of a Stock Purchase Right under Section 11 below.

       (y)     "Service Provider"  means an Employee, Director or Consultant.
                ----------------

       (z)     "Share" means a share of the Common Stock, as adjusted in
                -----
accordance with Section 12 below.

      (aa)     "Stock Purchase Right" means a right to purchase Common Stock
                --------------------
pursuant to Section 11 below.

      (bb)     "Subsidiary" means a "subsidiary corporation," whether now or
                ----------
hereafter existing, as defined in Section 424(f) of the Code.

  3.  Stock Subject to the Plan.  Subject to the provisions of Section 12 of
      -------------------------
the Plan, the maximum aggregate number of Shares which may be subject to option
and sold under the Plan is 7,200,000 Shares. The Shares may be authorized but
unissued, or reacquired Common Stock.

      If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated). However, Shares that have actually been issued under the Plan, upon
exercise of either an Option or Stock Purchase Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

  4.  Administration of the Plan.
      --------------------------

      (a)      Administrator. The Plan shall be administered by the Board or a
               -------------
Committee appointed by the Board, which Committee shall be constituted to comply
with Applicable Laws.

      (b)      Powers of the Administrator. Subject to the provisions
               ---------------------------
of the Plan and, in the case of a Committee, the specific duties delegated by
the Board to such Committee, and subject to the approval of any relevant
authorities, the Administrator shall have the authority in its discretion:

                                      -3-

<PAGE>

          (i)      to determine the Fair Market Value;

          (ii)     to select the Service Providers to whom Options and Stock
Purchase Rights may from time to time be granted hereunder;

          (iii)    to determine the number of Shares to be covered by each such
award granted hereunder;

          (iv)     to approve forms of agreement for use under the Plan;

          (v)      to determine the terms and conditions, of any Option or Stock
Purchase Right granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Options or Stock Purchase
Rights may be exercised (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Option or Stock Purchase Right or the Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

          (vi)     to determine whether and under what circumstances an Option
may be settled in cash under subsection 9(e) instead of Common Stock;

          (vii)    to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option has declined since the date the Option was granted; (viii) to
initiate an Option Exchange Program;

          (viii)   to initiate an Option Exchange Program;

          (ix)     to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

          (x)      to allow Optionees to satisfy withholding tax obligations by
electing to have the Company withhold from the Shares to be issued upon exercise
of an Option or Stock Purchase Right that number of Shares having a Fair Market
Value equal to the amount required to be withheld. The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined. All elections by Optionees to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable; and

          (xi)     to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan.

     (c)      Effect of Administrator's Decision. All decisions, determinations
              ----------------------------------
and interpretations of the Administrator shall be final and binding on all
Optionees.

                                      -4-

<PAGE>

  5.   Eligibility.
        -----------

       (a) Nonstatutory Stock Options and Stock Purchase Rights may be granted
to Service Providers. Incentive Stock Options may be granted only to Employees.

       (b) Each Option shall be designated in the Option Agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding
such designation, to the extent that the aggregate Fair Market Value of the
Shares with respect to which Incentive Stock Options are exercisable for the
first time by the Optionee during any calendar year (under all plans of the
Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be
treated as Nonstatutory Stock Options. For purposes of this Section 5(b),
Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the
time the Option with respect to such Shares is granted.

       (c) Neither the Plan nor any Option or Stock Purchase Right shall confer
upon any Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall it interfere in
any way with his or her right or the Company's right to terminate such
relationship at any time, with or without cause.

  6.   Term of Plan. The Plan shall become effective upon its adoption by the
       ------------
Board. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 14 of the Plan.

  7.   Term of Option. The term of each Option shall be stated in the Option
       --------------
Agreement; provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof. In the case of an Incentive Stock Option granted
to an Optionee who, at the time the Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the term of the Option shall be five (5)
years from the date of grant or such shorter term as may be provided in the
Option Agreement.

  8.   Option Exercise Price and Consideration.
       ---------------------------------------

       (a) The per share exercise price for the Shares to be issued upon
exercise of an Option shall be such price as is determined by the Administrator,
but shall be subject to the following:

       (i) In the case of an Incentive Stock Option

           (A) granted to an Employee who, at the time of grant of such Option,
owns stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the exercise price
shall be no less than 110% of the Fair Market Value per Share on the date of
grant.

           (B) granted to any other Employee, the per Share exercise price shall
be no less than 100% of the Fair Market Value per Share on the date of grant.

                                      -5-

<PAGE>

             (ii)  In the case of a Nonstatutory Stock Option

                   (A) granted to a Service Provider who, at the time of grant
of such Option, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the exercise price shall be no less than 110% of the Fair Market Value per Share
on the date of grant.

                   (B) granted to any other Service Provider, the per Share
exercise price shall be no less than 85% of the Fair Market Value per Share on
the date of grant.

             (iii) Notwithstanding the foregoing, Options may be granted with a
a per Share exercise price other than as required above pursuant to a merger or
other corporate transaction.

       (b)   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 Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). Such consideration may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) consideration received by the Company
under a cashless exercise program implemented by the Company in connection with
the Plan, or (6) any combination of the foregoing methods of payment. In making
its determination as to the type of consideration to accept, the Administrator
shall consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

   9.  Exercise of Option.
       ------------------

       (a)   Procedure for Exercise; Rights as a Stockholder. Any Option granted
             -----------------------------------------------
hereunder shall be exercisable according to the terms hereof at such times and
under such conditions as determined by the Administrator and set forth in the
Option Agreement. Except in the case of Options granted to Officers, Directors
and Consultants, Options shall become exercisable at a rate of no less than 20%
per year over five (5) years from the date the Options are granted. Unless the
Administrator provides otherwise, vesting of Options granted hereunder to
Officers and Directors shall be tolled during any unpaid leave of absence. An
Option may not be exercised for a fraction of a Share.

             An Option shall be deemed exercised when the Company receives: (i)
written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Shares,

                                      -6-

<PAGE>

notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such Shares promptly after the Option is exercised. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Shares are issued, except as provided in Section 12 of the Plan.

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

     (b) Termination of Relationship as a Service Provider. If an Optionee
         -------------------------------------------------
ceases to be a Service Provider, such Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement (of at least
thirty (30) days) to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of the Option
as set forth in the Option Agreement). In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for three (3) months
following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified by
the Administrator, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

     (c) Disability of Optionee. If an Optionee ceases to be a Service Provider
         ----------------------
as a result of the Optionee's Disability, the Optionee may exercise his or her
Option within such period of time as is specified in the Option Agreement (of at
least six (6) months) to the extent the Option is vested on the date of
termination (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement). In the absence of a specified time
in the Option Agreement, the Option shall remain exercisable for twelve (12)
months following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

     (d) Death of Optionee. If an Optionee dies while a Service Provider, the
         -----------------
Option may be exercised within such period of time as is specified in the Option
Agreement (of at least six (6) months) to the extent that the Option is vested
on the date of death (but in no event later than the expiration of the term of
such Option as set forth in the Option Agreement) by the Optionee's estate or by
a person who acquires the right to exercise the Option by bequest or
inheritance. In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time of death, the Optionee is not vested as to the
entire Option, the Shares covered by the unvested portion of the Option shall
immediately revert to the Plan. If the Option is not so exercised within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

     (e) Buyout Provisions. The Administrator may at any time offer to buy out
         -----------------
for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

                                      -7-

<PAGE>

     10. Non-Transferability of Options and Stock Purchase Rights. The Options
         --------------------------------------------------------
and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

     11. Stock Purchase Rights.
         ---------------------

         (a) Rights to Purchase. Stock Purchase Rights may be issued either
             ------------------
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing or electronically of the terms, conditions and restrictions
related to the offer, including the number of Shares that such person shall be
entitled to purchase, the price to be paid, and the time within which such
person must accept such offer. The terms of the offer shall comply in all
respects with Section 260.140.42 of Title 10 of the California Code of
Regulations. The offer shall be accepted by execution of a Restricted Stock
purchase agreement in the form determined by the Administrator.

         (b) Repurchase Option. Unless the Administrator determines otherwise,
             -----------------
the Restricted Stock purchase agreement shall grant the Company a repurchase
option exercisable upon the voluntary or involuntary termination of the
purchaser's service with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock purchase agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine. Except with respect to Shares purchased by
Officers, Directors and Consultants, the repurchase option shall in no case
lapse at a rate of less than 20% per year over five (5) years from the date of
purchase.

         (c) Other Provisions. The Restricted Stock purchase agreement shall
             ----------------
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

         (d) Rights as a Stockholder. Once the Stock Purchase Right is
             -----------------------
exercised, the purchaser shall have rights equivalent to those of a stockholder
and shall be a stockholder when his or her purchase is entered upon the records
of the duly authorized transfer agent of the Company. No adjustment shall be
made for a dividend or other right for which the record date is prior to the
date the Stock Purchase Right is exercised, except as provided in Section 12 of
the Plan.

     12. Adjustments Upon Changes in Capitalization, Merger or Asset Sale.
         ----------------------------------------------------------------

         (a) Changes in Capitalization. Subject to any required action by the
             -------------------------
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding

                                      -8-

<PAGE>

Option or Stock Purchase Right, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, 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. The 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 into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option or Stock Purchase Right.

          (b) Dissolution or Liquidation. In the event of the proposed
              --------------------------
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option or Stock Purchase Right until
fifteen (15) days prior to such transaction as to all of the Optioned Stock
covered thereby, including Shares as to which the Option or Stock Purchase Right
would not otherwise be exercisable. In addition, the Administrator may provide
that any Company repurchase option applicable to any Shares purchased upon
exercise of an Option or Stock Purchase Right shall lapse as to all such Shares,
provided the proposed dissolution or liquidation takes place at the time and in
the manner contemplated. To the extent it has not been previously exercised, an
Option or Stock Purchase Right will terminate immediately prior to the
consummation of such proposed action.

          (c) Merger or Asset Sale. In the event of a merger of the Company with
              --------------------
or into another corporation, or the sale of substantially all of the assets of
the Company, each outstanding Option and Stock Purchase Right shall be assumed
or an equivalent option or right substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the Option or Stock
Purchase Right, the Optionee shall fully vest in and have the right to exercise
the Option or Stock Purchase Right as to all of the Optioned Stock, including
Shares as to which it would not otherwise be vested or exercisable. If an Option
or Stock Purchase Right becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the
Option or Stock Purchase Right shall be fully exercisable for a period of
fifteen (15) days from the date of such notice, and the Option or Stock Purchase
Right shall terminate upon the expiration of such period. For the purposes of
this paragraph, the Option or Stock Purchase Right shall be considered assumed
if, following the merger or sale of assets, the option or right confers the
right to purchase or receive, for each Share of Optioned Stock subject to the
Option or Stock Purchase Right immediately prior to the merger or sale of
assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each
Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or sale of assets is not solely common
stock of the successor corporation or its Parent, the Administrator may, with
the consent of the successor corporation, provide for the

                                      -9-

<PAGE>

consideration to be received upon the exercise of the Option or Stock Purchase
Right, for each Share of Optioned Stock subject to the Option or Stock Purchase
Right, to be solely common stock of the successor corporation or its Parent
equal in fair market value to the per share consideration received by holders of
Common Stock in the merger or sale of assets.

     13.  Time of Granting Options and Stock Purchase Rights. The date of grant
          --------------------------------------------------
of an Option or Stock Purchase Right shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Service Provider to whom an Option
or Stock Purchase Right is so granted within a reasonable time after the date of
such grant.

     14.  Amendment and Termination of the Plan.
          -------------------------------------

          (a) Amendment and Termination. The Board may at any time amend, alter,
              -------------------------
suspend or terminate the Plan.

          (b) Shareholder Approval. The Board shall obtain shareholder approval
              --------------------
of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

          (c) Effect of Amendment or Termination. No amendment, alteration,
              ----------------------------------
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options granted under the
Plan prior to the date of such termination.

     15.  Conditions Upon Issuance of Shares.
          ----------------------------------

          (a) Legal Compliance. 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 shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          (b) Investment Representations. As a condition to the exercise of an
              --------------------------
Option, the Administrator may require the person exercising such Option to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

     16.  Inability to Obtain Authority. The inability of the Company to obtain
          -----------------------------
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

                                      -10-

<PAGE>

     17. Reservation of Shares. The Company, during the term of this Plan, shall
         ---------------------
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     18. Shareholder Approval. The Plan shall be subject to approval by the
         --------------------
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the degree and manner
required under Applicable Laws.

     19. Information to Optionees and Purchasers. The Company shall provide to
         ---------------------------------------
each Optionee and to each individual who acquires Shares pursuant to the Plan,
not less frequently than annually during the period such Optionee or purchaser
has one or more Options or Stock Purchase Rights outstanding, and, in the case
of an individual who acquires Shares pursuant to the Plan, during the period
such individual owns such Shares, copies of annual financial statements. The
Company shall not be required to provide such statements to key employees whose
duties in connection with the Company assure their access to equivalent
information.

                                      -11-Exhibit 4.1

                              CONUS HOLDINGS, INC.

                  5% SENIOR SUBORDINATED CONVERTIBLE DEBENTURE
                              DUE DECEMBER 31, 2002

Number:________________________________________________________

Principal: $___________________________________________________

Original Issue Date:___________________________________________

Registered Holder:_____________________________________________
                                (name)

         Conus  Holdings,  Inc.,  a  Nevada  corporation  (the  "Company")  with
principal  offices at 1517 E. 7th Avenue,  Suite C, Tampa,  Florida  33605,  for
value  received,  hereby  promises  to pay the  registered  holder  hereof  (the
"Holder") the principal sum set forth above on December 31, 2002 (the  "Maturity
Date"),  in such coin or currency of the United States of America as at the time
of  payment  shall be the legal  tender for the  payment  of public and  private
debts,  and to pay interest,  less any amounts required by law to be deducted or
withheld,  computed  on the basis of a 365-day  year,  on the  unpaid  principal
balance hereof from the date hereof (the "Original Issue Date"),  at the rate of
5% per year, until such principal sum shall have become due and payable,  or has
been  converted by the Holder  pursuant to Section 6, below.  Interest  payments
will be made at the  option of the  Holder in either  cash or in such  number of
shares of the Company's common stock, $.001 par value ("Common Stock"), computed
in accordance with Section 5.2 below and shall be paid, on December 31, 2001 and
quarterly  thereafter  until  Maturity,  or if the principal of the Debenture is
earlier converted,  upon conversion pursuant to Section 6, below. All references
herein to dollar amounts refers to U.S. dollars.

         By acceptance and purchase of this  Debenture,  the  registered  holder
hereof  agrees  with the  Company  that the  Debenture  shall be  subject to the
following terms and conditions:

         1.  Authorization  of Debentures.  The Company has authorized the issue
and sale of its 5% Senior Subordinated  Convertible  Debentures due December 31,
2002 (the  "Debenture," such term includes any debentures which may be issued in
exchange or in  replacement  thereof) in the aggregate  principal  amount of not
more than U.S. $11,500.

         2. Transfer or Exchange.  Prior to due  presentation to the Company for
transfer of this  Debenture,  the Company and any agent of the Company may treat
the person in whose name this  Debenture  is duly  registered  on the  Company's
Debenture  Register as the owner hereof for the purpose of receiving  payment as
herein provided and for all other purposes.

<PAGE>

         3.  Current  Market  Price.  For purposes of this  Debenture,  "Current
Market Price" of the Common stock means:

                  (a)      If  traded  on a  securities  exchange,  the  average
                           closing  bid  price  of  the  Common  Stock  on  such
                           exchange   for  the   fifteen   (15)   trading   days
                           immediately prior to conversion;

                  (b)      If traded over the counter,  the average  closing bid
                           price  reported  by  Bloomberg  from the  NASDAQ  OTC
                           Bulletin  Board for the  fifteen  (15)  trading  days
                           immediately prior to conversion; or

                  (c)      In all other events,  the market price  determined by
                           the Board of Directors of the Company in good faith.

         4. Prepayment; Payment of Interest in Shares.

                  4.1 Optional  Prepayment of Debenture.  The Company may prepay
the Debenture.

                  4.2 Payment of Interest in Shares.  Prior to the conversion of
the principal amount of the Debenture,  the Company will issue to the Holder, at
the Holder's option, in lieu of cash interest, shares of Common Stock calculated
in accordance with the following formula (the "Conversion Rate"):

                  Interest Shares = (.5 x *Principal) / Conversion Price, where

          *Principal = the Principal Amount of the Debenture, and

          *Conversion Price = .001

         5. Conversion of Debentures.

                  5.1      Conversion of the Debenture.

                  (a)      Right to Convert. The record holder of this Debenture
                           shall be  entitled,  on or after the Date of Original
                           Issuance,  at the  option of the  Holder,  to convert
                           this Debenture,  in whole but not in part, into fully
                           paid  and  non-assessable  shares  of  the  Company's
                           Common Stock at the rate of $.001 per share.

                  5.2 Exercise of Conversion Privilege. In order to exercise the
conversion privilege,  the Holder shall surrender such Debenture,  together with
the Notice of Conversion  annexed hereto as Exhibit 1 appropriately  endorsed to
the  Company at its  principal  office,  accompanied  by  written  notice to the
Company (a) stating that the Holder elects to convert the Debenture or a portion
thereof,  and if a portion,  the amount of such  portion in multiples of $500 in
principal  amount,  and (b) setting  forth the name or names  (with  address) in
which the certificate or  certificates  for shares of Common Stock issuable upon
such  conversion  shall be issued.  Provided the Debenture is received  properly

                                       2
<PAGE>

endorsed promptly by the Company, the date of conversion of such Debenture shall
be  deemed  to be the date of  receipt  of  Notice  of  Conversion,  even if the
Company's  stock  transfer  books are at that time  closed,  and the  converting
Holder shall be deemed to have  become,  on the date of  conversion,  the record
holder of the shares of Common Stock  deliverable upon such  conversion.  If the
Debenture is not received, properly endorsed by the fifth business day following
the date the Company receives Notice of Conversion, the date of conversion shall
be deemed to be the date the  Debenture  is received,  provided  that such later
receipt will not lower the Conversion Price stated in the Notice of Conversion.

                  As soon as reasonably  possible  after the date of conversion,
the Company shall issue and deliver to such  converting  Holder a certificate or
certificates for the number of shares of Common Stock due on such conversion. No
adjustments  in respect of  interest  or cash  dividends  shall be made upon the
conversion of any Debenture or Debentures.

                  Upon  conversion of the  Debenture in part,  the Company shall
execute and deliver to the Holder thereof,  at the expense of the Company, a new
Debenture,  in aggregate  principal  amount equal to the unconverted  portion of
such  Debenture.  such new  Debenture  shall have the same terms and  provisions
other than the principal  amount as the Debenture or Debentures  surrendered for
conversion.

                  5.3 Duration of Conversion  Privilege.  The right to subscribe
for and purchase  shares of Common Stock  pursuant to the  conversion  privilege
granted  herein shall  commence on the  Original  Issue Date and shall expire at
5:00 p.m., New York time on December 31, 2002.

                  5.4 Stock Fully Paid;  Restricted.  The Company  covenants and
agrees that:

                  (a)      all shares  which may be issued upon the  exercise of
                           the conversion  privilege  granted herein will,  upon
                           issuance  in  accordance  with the terms  hereof,  be
                           fully paid,  nonassessable,  and free from all taxes,
                           liens and charges (except for taxes, if any, upon the
                           income  of the  Holder)  with  respect  to the  issue
                           thereof, and that the issuance thereof shall not give
                           rise  to any  preemptive  rights  on the  part of the
                           stockholders;

                  (b)      the failure of the  Company to issue  shares upon the
                           conversion  of the  Debenture  will  cause the holder
                           immediate irreparable harm.

                  5.5 Antidilution Provisions. The following provisions apply to
the Debenture:

                  (a)      In case the Company  shall (i) pay a dividend or make
                           a  distribution  in  shares  of  Common  Stock,  (ii)
                           subdivide its outstanding shares of Common Stock into
                           a greater  number of  shares of Common  Stock,  (iii)
                           combine its outstanding shares of Common Stock into a
                           smaller number of shares of Common Stock, (iv) make a
                           distribution  on its  Common  Stock in  shares of its
                           capital stock other than Common  Stock,  or (v) issue

                                       3
<PAGE>

                           by   reclassification   of  its  Common  Stock  other
                           securities of the Company,  the conversion  privilege
                           of the  Debenture  and the  Conversion  Price then in
                           effect immediately prior thereto shall be adjusted so
                           that the Holder shall be entitled to receive the kind
                           and  number  of  shares  of  Common  Stock  and other
                           securities  of the Company  which it would have owned
                           or would  have been  entitled  to  receive  after the
                           happening of any of the events  described  above, had
                           the Debenture been converted immediately prior to the
                           happening  of such  event  or any  record  date  with
                           respect thereto. Any adjustment made pursuant to this
                           paragraph  (a)  shall  become  effective  immediately
                           after the effective date of such event retroactive to
                           the record date, if any, for such event.

                  (b)      When the  number of  shares  of  Common  Stock or the
                           Conversion Price is adjusted as herein provided,  the
                           Company  shall  cause to be  promptly  mailed  to the
                           Holder by first class mail,  postage prepaid,  notice
                           of such  adjustment or adjustments  and a certificate
                           of a firm of independent public accountants  selected
                           by the Board of  Directors of the Company (who may be
                           the  regular  accountants  employed  by the  Company)
                           setting  forth the  number of shares of Common  Stock
                           and the  Conversion  Price after such  adjustment,  a
                           brief   statement   of  the  facts   requiring   such
                           adjustment   and  the   computation   by  which  such
                           adjustment was made.

                  (c)      For the purpose of this Section  5.5,  the  following
                           shall apply:

                           (i)      The term  "Common  Stock" shall mean (A) the
                                    class  of  stock  designated  as the  Common
                                    Stock  of the  Company  at the  date of this
                                    Debenture  or (B) any  other  class of stock
                                    resulting   from   successive   changes   or
                                    reclassification   of  such   Common   Stock
                                    consisting  solely of  changes in par value,
                                    or from par value to no par  value,  or from
                                    no par value to par value. In the event that
                                    at any time,  as a result  of an  adjustment
                                    made  pursuant  to  this  Section  5.5,  the
                                    Holder shall become  entitled to receive any
                                    securities  upon  conversion  of the Company
                                    other than shares of Common Stock thereafter
                                    the number of such other  securities and the
                                    Conversion Price of such securities shall be
                                    subject to adjustment from time to time in a
                                    manner and on terms as nearly  equivalent as
                                    practicable to the  provisions  with respect
                                    to  the  Common  Stock   contained  in  this
                                    Section 5.5.

                           (ii)     If  the   Common   Stock  is   traded  on  a
                                    securities exchange or over the counter, the
                                    "Current  Market Price" for purposes of this
                                    Section  5.5 shall  mean the  average of the
                                    Current   Market   Prices   for   the   five
                                    consecutive  trading days immediate1y  prior
                                    to the date of the event which  necessitates
                                    an adjustment to the Conversion Price.

                  5.6 No Adjustment for Dividends. Except as provided in Section
5.5, no  adjustment  in respect to any  dividends  paid shall be made during the
term of the Debenture or upon the exercise of the Debenture.

                                       4
<PAGE>

                  5.7  Preservation  of Purchase  Rights  Upon  Reclassification
Consolidation.  etc. In the case of any  consolidation  of the  Company  with or
merger of the Company  into  another  corporation  or in the case of any sale or
conveyance to another  corporation of all or substantially  all of the property,
assets or business of the Company,  the Company or such  successor or purchasing
corporation,  as the case may be,  shall  provide that the Holder shall have the
right  thereafter  upon payment of the  Conversion  Price in effect  immediately
prior to such action to purchase  upon  conversion of the Debenture the kind and
amount of shares and other  securities  and property which the Holder would have
owned  or  have  been   entitled  to  receive   after  the   happening  of  such
consolidation,  merger,  sale or  conveyance  had the Debenture  been  converted
immediately prior to such action.  such agreement shall provide for adjustments,
which shall be as nearly  equivalent as may be  practicable  to the  adjustments
provided  for in this  Section  5. The  provisions  of this  Section  5.7  shall
similarly apply to successive consolidations, mergers, sales or conveyances.

                  5.8 Par Value of Common Stock.  Before taking any action which
would cause an adjustment reducing the Conversion Price below the then par value
of the shares of Common Stock  issuable upon  conversion of the  Debenture,  the
Company will take any corporate action which may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally  issue fully paid
and nonassessable shares of Common Stock at such adjusted Conversion Price.

                  5.9 Statement on Debenture  Certificates.  Irrespective of any
adjustments  in the  Conversion  Price or the number of securities  convertible,
this Debenture certificate or any certificates  hereafter issued may continue to
express the same price and number of securities as are stated in this  Debenture
certificate.  However, the Company may at any time in its sole discretion (which
shall be  conclusive)  make any change in the form of the Debenture  certificate
that it may deem appropriate and that does not affect the substance thereof; and
any  Debenture  certificate  thereafter  issued,  whether upon  registration  or
transfer  of, or in  exchange or  substitution  for,  an  outstanding  Debenture
certificate, may be in the form so changed.

         6. Restrictions on Transferability.  The Debenture and the Common Stock
issuable upon conversion of the Debenture shall not be transferred, hypothecated
or assigned before  satisfaction of the conditions  specified in this Section 6,
which  conditions are intended to ensure  compliance  with the provisions of the
Securities Act with respect to the Transfer of any Debenture or any Common Stock
issuable  upon  conversion  of the  Debenture.  Holder,  by  acceptance  of this
Debenture, agrees to be bound by the provisions of this Section 6.

                  6.1 Restrictive Legend. The Holder by accepting this Debenture
and any Common Stock issuable upon conversion of the Debenture  agrees that this
Debenture  and the  Common  Stock  issuable  upon  conversion  hereof may not be
assigned or otherwise  transferred unless and until (i) the Company has received
an opinion of counsel for the Holder that such  securities  may be sold pursuant
to  an  exemption  from  registration   under  the  Securities  Act  or  (ii)  a
registration statement relating to such securities has been filed by the Company
and declared effective by the Commission.

                                       5
<PAGE>

                  (a)      Each certificate for Common Stock issuable  hereunder
                           shall bear a legend  substantially  worded as follows
                           unless such  securities have been sold pursuant to an
                           effective registration statement under the Securities
                           Act:

                           "The securities  represented by this certificate have
                           not been registered under the Securities Act of 1933,
                           as amended (the "Act") or any state  securities laws.
                           The  securities  may not be offered  for sale,  sold,
                           assigned,    offered,    transferred   or   otherwise
                           distributed  for  value  except  (i)  pursuant  to an
                           effective registration statement under the Act or any
                           state   securities   laws  or  (ii)  pursuant  to  an
                           exemption from  registration  or prospectus  delivery
                           requirements  under the Act or any  state  securities
                           laws in respect of which the Company has  received an
                           opinion of  counsel  satisfactory  to the  Company to
                           such effect."

                  (b)      Except as  otherwise  provided in this Section 6, the
                           Debenture  shall be  stamped or  otherwise  imprinted
                           with a legend in substantially the following form:

                           "This Debenture and the securities represented hereby
                           have not been registered  under the Securities Act of
                           1933, as amended,  or any state  securities  laws and
                           may not be  transferred in violation of such Act, the
                           rules  and   regulations   thereunder  or  any  state
                           securities laws or the provisions of this Debenture."

                  6.2 Notice of  Proposed  Transfers.  Prior to any  Transfer or
attempted  Transfer of any Debenture or any shares of  Restricted  Common Stock,
the Holder shall give five (5) days' prior written notice (a "Transfer  Notice")
to the Company of Holder's  intention to effect such  Transfer,  describing  the
manner and  circumstances of the proposed  Transfer,  and obtain from counsel to
Holder  an  opinion  that  the  proposed  Transfer  of  such  Debenture  or such
Restricted  Common  Stock  may  be  effected  without   registration  under  the
Securities  Act or state  securities  laws.  After the Company's  receipt of the
Transfer Notice and opinion, such Holder shall thereupon be entitled to Transfer
such Debenture or such Restricted  Common Stock, in accordance with the terms of
the  Transfer  Notice.  Each  certificate,  if any,  evidencing  such  shares of
Restricted  Common Stock issued upon such Transfer and the Debenture issued upon
such  Transfer  shall bear the  restrictive  legends  set forth in Section  6.1,
unless in the opinion of such  counsel  such legend is not  required in order to
ensure compliance with the Securities Act.

                  6.3 Termination of Restrictions. Notwithstanding the foregoing
provisions  of Section 6, the  restrictions  imposed  by this  Section  upon the
transferability of the Debentures, the Common Stock issuable upon conversion and
the Restricted Common Stock (or Common Stock issuable upon the conversion of the
Debenture) and the legend  requirements of Section 6.1 shall terminate as to any
particular  Debenture or Restricted  Common Stock (or Common Stock issuable upon
the  conversion of the  Debenture)  (i) when and so long as such security  shall
have been  effectively  registered under the Securities Act and applicable state
securities laws and disposed of pursuant  thereto or (ii) when the Company shall
have received an opinion of counsel that such shares may be transferred  without
registration  thereof under the Securities Act and applicable  state  securities
laws. Whenever the restrictions  imposed by Section 6 shall terminate as to this

                                       6
<PAGE>

Debenture,  as  hereinabove  provided,  the Holder  hereof  shall be entitled to
receive from the Company upon written  request of the Holder,  at the expense of
the  Company,  a new  Debenture  bearing  the  following  legend in place of the
restrictive legend set forth hereon:

                  "THE RESTRICTIONS ON  TRANSFERABILITY  OF THE WITHIN DEBENTURE
                  CONTAINED IN SECTION 6 HEREOF TERMINATED ON ___________, 20__,
                  AND ARE OF NO FURTHER FORCE AND EFFECT."

         All  Debentures  issued  upon  registration  of  transfer,  division or
combination of, or in  substitution  for, any Debenture or entitled to bear such
legend shall have a similar legend endorsed  thereon.  Whenever the restrictions
imposed by this Section  shall  terminate as to any share of  Restricted  Common
Stock, as hereinabove provided,  the holder thereof shall be entitled to receive
from the Company, at the Company's expense, a new certificate  representing such
Common Stock not bearing the restrictive legends set forth in Section 6.1.

                  6.4 Listing on Securities Exchange.  If the Company shall list
any shares of Common Stock on any securities exchange,  it will, at its expense,
list thereon, maintain and, when necessary, increase such listing of, all shares
of Common  Stock  issued  or, to the  extent  permissible  under the  applicable
securities  exchange  rules,  issuable upon the  conversion of this Debenture so
long as any  shares  of Common  Stock  shall be so listed  during  the  Exercise
Period.

         7. Piggyback Registrations. If, at any time, the Company proposes or is
required to register any of its equity  securities or securities  convertible or
exchangeable for equity securities under the Securities Act (other than pursuant
to  registrations  on such form or similar  form(s) solely for  registration  of
securities in connection with an employee benefit plan or dividend  reinvestment
plan or a merger,  consolidation or acquisition) on a registration  statement on
Form S-1, Form SB-2 or Form S-3 (or an equivalent general registration form then
in effect),  whether or not for its own account,  the Company  shall give prompt
written notice of its intention to do so to each of the Holders of record of the
Debentures.  Upon  the  written  request  of any  Holder,  made  within  15 days
following the receipt of any such written  notice  (which  request shall specify
the maximum  number of Common Stock  issuable  upon  conversion of the Debenture
intended  to  be  disposed  of  by  such  Holder  and  the  intended  method  of
distribution  thereof), the Company shall use its best efforts to cause all such
Common Stock, the Holders of which have so requested the  registration  thereof,
to be registered under the Securities Act (with the securities which the Company
at the time proposes to register) to permit the sale or other disposition by the
Holders (in accordance with the intended method of distribution  thereof) of the
Common Stock to be so  registered.  There is no limitation on the number of such
piggyback  registrations pursuant to the preceding sentence which the Company is
obligated to effect.

                  7.1 Abandonment or Delay. If, at any time after giving written
notice of its  intention  to  register  any equity  securities  and prior to the
effective  date of the  registration  statement  filed in  connection  with such
registration,  the Company shall  determine for any reason not to register or to
delay registration of such equity securities,  the Company may, at its election,
give written notice of such  determination to all Holders and (i) in the case of
a determination not to register, shall be relieved of its obligation to register
any Common Stock  issuable upon  conversion of the Debenture in connection  with
such abandoned  registration,  and (ii) in the case of a determination  to delay

                                       7
<PAGE>

such  registration  of its equity  securities,  shall be  permitted to delay the
registration  of  such  Common  Stock  for  the  same  period  as the  delay  in
registering such other equity securities.

                  7.2  Holder's  Right to  Withdraw.  Any Holder  shall have the
right  to  withdraw  its  request  for  inclusion  of its  Common  Stock  in any
registration  statement  pursuant to this Section 7 by giving  written notice to
the Company of its request to withdraw; provided, however, that (i) such request
must  be  made  in  writing  prior  to  the  earlier  of  the  execution  of the
underwriting agreement or the execution of the custody agreement with respect to
such  registration,  and (ii) such  withdrawal  shall be irrevocable  and, after
making such withdrawal,  a Holder shall no longer have any right to include such
Common Stock in the registration as to which such withdrawal was made.

                  7.3 Cutbacks.  If the managing underwriter of any underwritten
offering  shall  inform the  Company by letter of its belief  that the number of
shares of Common  Stock  requested to be included in a  registration  under this
Section 7 would materially adversely affect such offering, then the Company will
include in such registration, first the securities proposed by the Company to be
sold for its own account and,  second the Common Stock issuable upon  conversion
and all other  securities of the Company to be included in such  registration to
the extent of the number and type,  if any,  which the Company is so advised can
be sold in (or during  the time of) such  offering,  pro rata among the  Holders
participating in such offering in accordance with the number of shares of Common
Stock held by each such Holder.

         8.  Fractional  Shares.  No  fractional  shares of Common Stock will be
issued  in  connection  with  any  subscription  hereunder  but in  lieu of such
fractional  shares,  the Company  shall make a cash  payment  therefor  equal in
amount to the product of the  applicable  fraction  multiplied by the Conversion
Price then in effect.

         9.  Subordination.  Any right of the Holder to payment of  principal or
interest from the Company shall be  subordinated to the claims and rights of the
holders of the Senior Debt  ("Senior  Debt  Holders").  "Senior  Debt" means all
Indebtedness  of the Company other than the Debentures,  whether  outstanding on
the date of  execution  of this  Debenture or  thereafter  created,  incurred or
assumed, except (x) any such Indebtedness that by the terms of the instrument or
instruments  by  which  such  Indebtedness  was  created,  assumed  or  incurred
expressly  provides that it (i) is junior in right of payment to the  Debentures
or (ii) ranks pari passu in right of  payment  with the  Debentures  and (y) any
amendments,  modifications  or  supplements  to,  or any  renewals,  extensions,
deferrals,  refinancing and refunding of, any of the foregoing. Any cash payment
of principal or interest to the Holder shall be collected,  enforced or received
by the Holder as trustee for the Senior Debt Holders and paid over to the Senior
Debt Holders. The Holder agrees that in the event of any payment of principal or
interest by the Company to the Holder by reason of any receivership,  insolvency
or bankruptcy  proceeding,  or proceeding for  reorganization or readjustment of
the Company or its properties, or otherwise, then, in any such event, the Senior
Debt Holders shall be preferred in the payment of their claims over the claim of
the  Holder to payment of  principal  or  interest  against  the  Company or its
properties,  and the claims of the Senior Debt  Holders  shall be first paid and
satisfied in full before any payment or  distribution  of any kind or character,
whether in cash or  property,  shall be made to the Holder.  Provided,  however,

                                       8
<PAGE>

that this Section 9 shall not apply to any payment of principal or interest made
to the Holder  while the Company is solvent and not in default  with  respect to
its Senior Debt.

         10.  Replacement  of  Debenture  Certificate.  Upon receipt of evidence
satisfactory  to the Company of the  certificate  loss,  theft,  destruction  or
mutilation of the Debenture certificate and, in the case of any such loss, theft
or  destruction,  upon  delivery  of a bond  of  indemnity  satisfactory  to the
Company, or, in the case of any such mutilation, upon surrender and cancellation
of  the  Debenture   certificate,   the  Company  will  issue  a  new  Debenture
certificate, of like tenor, in lieu of such lost, stolen, destroyed or mutilated
Debenture certificate.

         11. Covenants of the Company.  So long as any of the Debentures  remain
outstanding, the Company shall:

                  (a)      At all times keep reserved the total number of shares
                           of Common Stock  necessary for the  conversion of all
                           of  the  then  outstanding  Debentures  at  the  then
                           current Conversion Rate;

                  (b)      Not pay any  dividends  in cash  and/or  property  or
                           other  assets of the Company in respect of its Common
                           Stock or otherwise.

                  (c)      Not issue any  debentures  of the Company  other than
                           the  Debentures  unless the rights of the  holders of
                           such  debentures are  subordinated to the Debentures,
                           in  which  event  the  terms  of  the   subordination
                           provision  shall be similar to the terms set forth in
                           Section 9 of this Debenture;

                   (d)     Not enter into a loan secured by the property  and/or
                           assets of the Company or any of its subsidiaries with
                           (i) any director,  officer or 5%  stockholder  of the
                           Company, (ii) any entity in which a director, officer
                           or 5%  stockholder  has an  interest  as an  officer,
                           director, partner,  beneficiary of a trust or is a 5%
                           or more equity  holder of such  entity,  or (iii) any
                           parent,  spouse,  child or  grandchild of an officer,
                           director or 5%  stockholder of the Company upon terms
                           no less  favorable  to the  Company  than those which
                           could be obtained from an "arms-length" lender; and

                  (e)      Not  redeem,  repurchase  or  otherwise  acquire  any
                           shares  of  the  common  or  preferred  stock  of the
                           Company.

         12. Default.  If any of the following  events (herein called "Events of
Default") shall occur:

                  (a)      if  the  Company  shall  default  in the  payment  or
                           prepayment of any part of the principal of any of the
                           Debentures  after  the  same  shall  become  due  and
                           payable,  whether at  maturity or at a date fixed for
                           prepayment or by acceleration or otherwise,  and such
                           default shall continue for more than 30 days; or

                                       9
<PAGE>

                  (b)      if the  Company  shall  default in the payment of any
                           installment  of interest on any of the Debentures for
                           more than 30 days after the same shall become due and
                           payable; or

                  (c)      if the  Company  shall  make  an  assignment  for the
                           benefit  of  creditors  or shall be unable to pay its
                           debts as they become due; or

                  (d)      if  the  Company   shall   dissolve;   terminate  its
                           existence; become insolvent on a balance sheet basis;
                           commence  a   voluntary   case   under  the   federal
                           bankruptcy  laws or under any other  federal or state
                           law relating to insolvency or debtor's relief; permit
                           the entry of a decree or order for relief against the
                           Company  in an  involuntary  case  under the  federal
                           bankruptcy laws or under any other applicable federal
                           or state  law  relating  to  insolvency  or  debtor's
                           relief;  permit  the  appointment  or  consent to the
                           appointment of a receiver,  trustee,  or custodian of
                           the Company or of any of the Company's property; make
                           an assignment for the benefit of creditors;  or admit
                           in writing to be failing  generally  to pay its debts
                           as such debts become due;

                  (e)      if the Company shall default in the performance of or
                           compliance  with  any  agreement,  condition  or term
                           contained  in  this  Debenture  or any  of the  other
                           Debentures and such default shall not have been cured
                           within 30 days after such default,

                  (f)      Any of the  representations or warranties made by the
                           Company herein, in the Subscription  Agreement, or in
                           any  certificate  or  financial  or other  statements
                           heretofore or hereafter  furnished by or on behalf of
                           the  Company in  connection  with the  execution  and
                           delivery  of  this  Debenture  or  the   Subscription
                           Agreement   shall  be  false  or  misleading  in  any
                           material respect at the time made; or

                  (g)      Any money judgment, writ or warrant of attachment, or
                           similar process not covered by insurance in excess of
                           One  Hundred  Thousand  Dollars   ($100,000)  in  the
                           aggregate  shall  be  entered  or filed  against  the
                           Company or any of its  properties or other assets and
                           shall remain unpaid, unvacated,  unbonded or unstayed
                           for a period  of  thirty  (30)  days or in any  event
                           later  than  ten (10)  days  prior to the date of any
                           proposed sale thereunder; or

then and in any such  event the Holder of this  Debenture  shall have the option
(unless the default shall have  theretofore been cured) by written notice to the
Company to declare the Debenture to be due and payable,  whereupon the Debenture
shall forthwith mature and become due and payable, at the applicable  prepayment
price  on the date of such  notice,  without  presentment,  demand,  protest  or
further notice of any kind, all of which are hereby expressly  waived,  anything
contained in this Debenture to the contrary notwithstanding. Upon the occurrence
of an Event of Default,  the Company  shall  promptly  notify the Holder of this
Debenture in writing setting out the nature of the default in reasonable detail.

                                       10
<PAGE>

         13.  Remedies on Default;  Notice to Other Holders.  In case any one or
more of the Events of Default shall occur, the Holder may proceed to protect and
enforce  his  or her  rights  by a  suit  in  equity,  action  at  law or  other
appropriate  proceeding,  whether,  to the  extent  permitted  by  law,  for the
specific  performance of any agreement of the Company contained herein or in aid
of the exercise of any power granted hereby. If any Holder of one or more of the
Debentures  shall  declare  the same due and  payable  or take any other  action
against  the  Company  in  respect  of an Event of  Default,  the  Company  will
forthwith give written notice to the Holder of this  Debenture,  specifying such
action and the nature of the default alleged.

         14.  Amendments.  With the  consent of the  Holders of more than 50% in
aggregate  principal  amount  of the  Debentures  at the time  outstanding,  the
Company,  when  authorized by a resolution of its Board of Directors,  may enter
into a  supplementary  agreement for the purpose of adding any  provisions to or
changing in any manner or eliminating any of the provisions of this Debenture or
of any  supplemental  agreement  or  modifying  in any  manner  the  rights  and
obligations of the holders of Debentures or Common Stock issued upon  conversion
of  the  Debentures,  and  of the  Company,  provided,  however,  that  no  such
supplemental agreement shall (a) extend the fixed maturity of any Debenture,  or
reduce the principal  amount  thereof,  or reduce the rate or extend the time of
payment of  interest  thereon,  or alter or impair the right to convert the same
into Common  Stock at the rates and upon the terms  provided in this  Debenture,
without the consent of the Holder of each of the Debentures so affected,  or (b)
reduce the aforesaid percentage of Debentures, the Holders of which are required
to consent to any supplemental agreement,  without the consent of the Holders of
all Debentures then outstanding.

         15. Changes,  Waivers.  etc.  Neither this Debenture nor any provisions
hereof may be changed,  waived,  discharged or terminated  orally, but only by a
statement  in  writing  signed by the party  against  which  enforcement  of the
change,  waiver,  discharge  or  termination  is  sought,  except to the  extent
provided in Section 15 of this Debenture.

         16. Entire Agreement.  This Debenture embodies the entire agreement and
understanding  between  the  Holder and the  Company  and  supersedes  all prior
agreements and understandings relating to the subject matter hereof.

         17.      Governing Law, Jurisdiction, etc.

                  (a)      It is the  intention  of the parties that the laws of
                           the State of Florida  shall  govern the  validity  of
                           this Debenture, the construction of its terms and the
                           interpretation  of  the  rights  and  duties  of  the
                           parties.

                  (b)      In the case of any dispute, question,  controversy or
                           claim  arising  among the parties  hereto which shall
                           arise out of or in  connection  with this  Debenture,
                           the same shall be submitted to  arbitration  before a
                           panel of three  arbitrators  in  Tampa,  Florida,  in
                           accordance with the rules of the American Arbitration
                           Association. One arbitrator shall be appointed by the
                           party or parties bringing the claims ("Claimant") and
                           one  arbitrator  shall be  appointed  by the party or
                           parties  defending  the  claim  ("Respondent").   The

                                       11
<PAGE>

                           arbitrators   selected  by  such  parties   shall  be
                           selected  within thirty (30) days after  notification
                           by  the  Claimant  to  the  Respondent  that  it  has
                           determined   to  submit   such   dispute,   question,
                           controversy   or  claim  to   arbitration.   The  two
                           arbitrators   so  selected   shall   select  a  third
                           arbitrator   within   thirty   (30)  days  after  the
                           selection of the arbitrator selected by such parties.
                           Should a party  fail to select an  arbitrator  within
                           the specified time period,  or should the arbitrators
                           selected  by the  parties  fail  to  select  a  third
                           arbitrator,  the missing  arbitrator  or  arbitrators
                           shall be  appointed by the Tampa,  Florida  office of
                           the American Arbitration Association. The decision of
                           the panel  shall be final and  binding on the parties
                           and   enforceable   in   any   court   of   competent
                           jurisdiction.  The costs of the  arbitration  will be
                           imposed   upon  the  Claimant   and   Respondent   as
                           determined by the arbitration  panel or, failing such
                           determination,  will be borne equally by the Claimant
                           and the  Respondent.  The  successful  or  prevailing
                           party  or  parties   shall  be  entitled  to  recover
                           reasonable  attorneys  fees in  addition to any other
                           relief to which it may be entitled.

                  (c)      In the event of any dispute, question, controversy or
                           claim  arising  among the parties  hereto which shall
                           arise out of or in  connection  with this  Debenture,
                           the parties shall keep the proceeding related to such
                           controversy  in  strict   confidence  and  shall  not
                           disclose  the nature of said  dispute,  the status of
                           the  proceeding  or  any   testimony,   documents  or
                           information  obtained or  exchanged  in the course of
                           said  proceeding  without the express written consent
                           of all parties to such dispute.

                                                  CONUS HOLDINGS, INC.

[Corporate Seal]

                                                  By___________________________
                                                     Richard Diamond, President

Number:_______________________________________________

Name of Holder: ______________________________________

Principal: $__________________________________________

Original Issue Date:__________________________________

                                       12
<PAGE>

                                    EXHIBIT 1

                              NOTICE OF CONVERSION

   (To be Executed by the Registered Holder in order to Convert the Debenture)

         The undersigned hereby irrevocably elects to convert $______________ of
the above  Debenture  No. _____ into  _________  shares of Common Stock of Conus
Holdings,  Inc. (the  "Company")  according to the  conditions set forth in such
Debenture, as of the date written below.

         The undersigned  confirms the  representations and warranties set forth
in the Subscription Agreement.

                                    ___________________________________________
                                    Date of Conversion*

                                    ___________________________________________
                                    Applicable Conversion Price

                                    ___________________________________________
                                    Signature

                                    ___________________________________________
                                    Name

                                    ___________________________________________
                                    Address

                                    ___________________________________________

*The original  Debenture  and this Notice of Conversion  must be received by the
Company within five business days following the date of Conversion.

                                       13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]