Document:

Employee Stock Purchase Plan

MARKETWATCH.COM, INC.

2000 EMPLOYEE STOCK PURCHASE PLAN

As Adopted July 12, 2000

1.  Establishment of Plan.  MarketWatch.com, Inc. (the "Company") proposes to
grant options for purchase of the Company's Common Stock to eligible employees of the Company and its Participating Subsidiaries (as
hereinafter defined) pursuant to this Employee Stock Purchase Plan (this "Plan").  For purposes of this Plan,
"Parent Corporation" and "Subsidiary" shall have the same meanings as "parent
corporation" and "subsidiary corporation" in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code of
1986, as amended (the "Code").  "Participating Subsidiaries" are Parent Corporations
or Subsidiaries that the Board of Directors of the Company (the "Board") designates from time to time as
corporations that shall participate in this Plan.  The Company intends this Plan to qualify as an "employee stock purchase
plan" under Section 423 of the Code (including any amendments to or replacements of such Section), and this Plan shall be so
construed.  Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the same
definition herein.  A total of 500,000 shares of the Company's Common Stock is reserved for issuance under this Plan.  In addition,
on each January 1, the aggregate number of shares of the Company's Common Stock reserved for issuance under the Plan shall be
increased automatically by a number of shares purchased under the Plan in the preceding calendar year; provided that the Board
or the Committee may in its sole discretion reduce the amount of the increase in any particular year. Such number shall be subject to
adjustments effected in accordance with Section 14 of this Plan.

2.  Purpose.  The purpose of this Plan is to provide eligible employees of the Company and
Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company through payroll deductions, to
enhance such employees' sense of participation in the affairs of the Company and Participating Subsidiaries, and to provide an
incentive for continued employment.

3.  Administration.  This Plan shall be administered by the Compensation Committee of the Board (the
"Committee").  Subject to the provisions of this Plan and the limitations of Section 423 of the Code or any
successor provision in the Code, all questions of interpretation or application of this Plan shall be determined by the Committee and
its decisions shall be final and binding upon all participants.  Members of the Committee shall receive no compensation for their
services in connection with the administration of this Plan, other than standard fees as established from time to time by the Board
for services rendered by Board members serving on Board committees.  All expenses incurred in connection with the administration of
this Plan shall be paid by the Company.

4.  Eligibility.  Any employee of the Company or the Participating Subsidiaries is eligible to
participate in an Offering Period (as hereinafter defined) under this Plan except the following:

(a) employees who are not employed by the Company or a Participating Subsidiary prior to the beginning of such
Offering Period;

(b)  employees who are customarily employed for twenty (20) hours or less per week;

(c)  employees who are customarily employed for five (5) months or less in a calendar year;

(d)  employees who, together with any other person whose stock would be attributed to such employee pursuant to
Section 424(d) of the Code, own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company or any of its Participating Subsidiaries or who, as a result of being
granted an option under this Plan with respect to such Offering Period, would own stock or hold options to purchase stock possessing
five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its
Participating Subsidiaries; and

(e)  individuals who provide services to the Company or any of its Participating Subsidiaries as independent
contractors who are reclassified as common law employees for any reason except for federal income and employment tax
purposes.

5.  Offering Dates.  The offering periods of this Plan (each, an "Offering
Period") shall be of six (6) months duration commencing on February 15 and August 15 of each year and
ending on August 14 and February 14 of each year during which payroll deductions of the participants are accumulated under this Plan.
The first business day of each Offering Period is referred to as the "Offering Date".  The last business day
of each Offering Period is referred to as the "Purchase Date".  The Committee shall have the power to change
the Offering Dates, the Purchase Dates and the duration of Offering Periods without stockholder approval if such change is announced
prior to the relevant Offering Period, or prior to such other time period as specified by the Committee.

6.  Participation in this Plan.  Eligible employees may become participants in an Offering Period under
this Plan on the first Offering Date after satisfying the eligibility requirements by delivering a subscription agreement to the
Company's Human Resource Department (the "Human Resource Department") Company prior to such Offering Date, or
such other time period as specified by the Committee.  Notwithstanding the foregoing, the Committee may set a later time for filing
the subscription agreement authorizing payroll deductions for all eligible employees with respect to a given Offering Period.  An
eligible employee who does not deliver a subscription agreement to the Human Resource Department by such date after becoming eligible
to participate in such Offering Period shall not participate in that Offering Period or any subsequent Offering Period unless such
employee enrolls in this Plan by filing a subscription agreement with the Human Resource Department prior to such Offering Date, or
such other time period as specified by the Committee.  Once an employee becomes a participant in an Offering Period, such employee
will automatically participate in the Offering Period commencing immediately following the last day of the prior Offering Period
unless the employee withdraws or is deemed to withdraw from this Plan or terminates further participation in the Offering Period as
set forth in Section 11 below.  Such participant is not required to file any additional subscription agreement in order to continue
participation in this Plan.  

7.  Grant of Option on Enrollment.  Enrollment by an eligible employee in this Plan with respect to an
Offering Period will constitute the grant (as of the Offering Date) by the Company to such employee of an option to purchase on the
Purchase Date up to that number of shares of Common Stock of the Company determined by dividing (a) the amount accumulated in
such employee's payroll deduction account during such Offering Period by (b) the lower of (i) eighty-five percent (85%) of
the fair market value of a share of the Company's Common Stock on the Offering Date (but in no event less than the par value of a
share of the Company's Common Stock), or (ii) eighty-five percent (85%) of the fair market value of a share of the Company's
Common Stock on the Purchase Date (but in no event less than the par value of a share of the Company's Common Stock), provided,
however, that the number of shares of the Company's Common Stock subject to any option granted pursuant to this Plan shall not
exceed the maximum number of shares set by the Committee pursuant to Section 10(b) below with respect to the applicable Purchase
Date.  The fair market value of a share of the Company's Common Stock shall be determined as provided in Section 8 below.

8.  Purchase Price.  The purchase price per share at which a share of Common Stock will be sold in any
Offering Period shall be eighty-five percent (85%) of the lesser of:

(a)  The fair market value on the Offering Date; or

(b)  The fair market value on the Purchase Date.

For purposes of this Plan, the term "Fair Market Value" means, as of any date, the
value of a share of the Company's Common Stock determined as follows:

(a)if such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq
National Market on the date of determination;

(b)if such Common Stock is publicly traded and is then listed on a national securities exchange, its
closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or
admitted to trading;

(c)if such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or
admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of determination;
or

(d)if none of the foregoing is applicable, by the Board in good faith.

9.  Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.  

(a)  The purchase price of the shares is accumulated by regular payroll deductions made during each
Offering Period.  The deductions are made as a percentage of the participant's compensation in one percent (1%) increments not less
than one percent (1%), nor greater than fifteen percent (15%) or such lower limit set by the Committee.  Compensation shall mean all
W-2 cash compensation, including, but not limited to, base salary, wages, commissions, overtime and shift premiums, provided,
however, that for purposes of determining a participant's compensation, any election by such participant to reduce his or her
regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the participant did not make such election.
Payroll deductions shall commence on the first payday of the Offering Period and shall continue to the end of the Offering Period
unless sooner altered or terminated as provided in this Plan.

(b)  A participant may increase or decrease the rate of payroll deductions during an Offering Period by filing
with the Human Resource Department a new authorization for payroll deductions, in which case the new rate shall become effective for
the next payroll period commencing after the Human Resource Department's receipt of the authorization and shall continue for the
remainder of the Offering Period unless changed as described below.  Such change in the rate of payroll deductions may be made at any
time during an Offering Period, but not more than one (1) change may be made effective during any Offering Period.  A participant may
increase or decrease the rate of payroll deductions for any subsequent Offering Period by filing with the Human Resource Department a
new authorization for payroll deductions prior to the beginning of such Offering Period, or prior to such other time period as
specified by the Committee.

(c)  A participant may reduce his or her payroll deduction percentage to zero during an Offering Period by
filing with the Human Resource Department a request for cessation of payroll deductions.  Such reduction shall be effective beginning
with the next payroll period after the Human Resource Department's receipt of the request and no further payroll deductions will be
made for the duration of the Offering Period.  Payroll deductions credited to the participant's account prior to the effective date
of the request shall be used to purchase shares of Common Stock of the Company in accordance with Section (e) below.  A
participant may not resume making payroll deductions during the Offering Period in which he or she reduced his or her payroll
deductions to zero.

(d)  All payroll deductions made for a participant are credited to his or her account under this Plan and are
deposited with the general funds of the Company.  No interest accrues on the payroll deductions.  All payroll deductions received or
held by the Company may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions.

(e)  On each Purchase Date, so long as this Plan remains in effect and provided that the participant has not
submitted a signed and completed withdrawal form before that date which notifies the Company that the participant wishes to withdraw
from that Offering Period under this Plan and have all payroll deductions accumulated in the account maintained on behalf of the
participant as of that date returned to the participant, the Company shall apply the funds then in the participant's account to the
purchase of whole shares of Common Stock reserved under the option granted to such participant with respect to the Offering Period to
the extent that such option is exercisable on the Purchase Date.  The purchase price per share shall be as specified in Section 8 of
this Plan.  Any cash remaining in a participant's account after such purchase of shares shall be refunded to such participant in
cash, without interest; provided, however that any amount remaining in such participant's account on a Purchase Date which is less
than the amount necessary to purchase a full share of Common Stock of the Company shall be carried forward, without interest, into
the next Offering Period, as the case may be.  In the event that this Plan has been oversubscribed, all funds not used to purchase
shares on the Purchase Date shall be returned to the participant, without interest.  No Common Stock shall be purchased on a Purchase
Date on behalf of any employee whose participation in this Plan has terminated prior to such Purchase Date.

(f)  As promptly as practicable after the Purchase Date, the Company shall issue shares for the participant's
benefit representing the shares purchased upon exercise of his or her option.

(g)  During a participant's lifetime, his or her option to purchase shares hereunder is exercisable only by
him or her.  The participant will have no interest or voting right in shares covered by his or her option until such option has been
exercised. 

10.  Limitations on Shares to be Purchased.

(a)  No participant shall be entitled to purchase stock under this Plan at a rate which, when aggregated with
his or her rights to purchase stock under all other employee stock purchase plans of the Company or any Subsidiary, exceeds $25,000
in fair market value, determined as of the Offering Date (or such other limit as may be imposed by the Code) for each calendar year
in which the employee participates in this Plan.  The Company shall automatically suspend the payroll deductions of any participant
as necessary to enforce such limit provided that when the Company automatically resumes such payroll deductions, the Company must
apply the rate in effect immediately prior to such suspension.

(b)  No participant shall be entitled to purchase more than the Maximum Share Amount (as defined below) on any
single Purchase Date.  Prior to the commencement of any Offering Period or prior to such time period as specified by the Committee,
the Committee may, in its sole discretion, set a maximum number of shares which may be purchased by any employee at any single
Purchase Date (hereinafter the "Maximum Share Amount").  Until otherwise determined by the Committee,
there shall be no Maximum Share Amount.  If a new Maximum Share Amount is set, then all participants must be notified of such Maximum
Share Amount prior to the commencement of the next Offering Period.  The Maximum Share Amount shall continue to apply with respect to
all succeeding Purchase Dates and Offering Periods unless revised by the Committee as set forth above.

(c)  If the number of shares to be purchased on a Purchase Date by all employees participating in this Plan
exceeds the number of shares then available for issuance under this Plan, then the Company will make a pro rata allocation of the
remaining shares in as uniform a manner as shall be reasonably practicable and as the Committee shall determine to be equitable.  In
such event, the Company shall give written notice of such reduction of the number of shares to be purchased under a participant's
option to each participant affected. 

(d)  Any payroll deductions accumulated in a participant's account which are not used to purchase stock due to
the limitations in this Section 10 shall be returned to the participant as soon as practicable after the end of the applicable
Offering Period, without interest.

11.  Withdrawal.

(a)  Each participant may withdraw from an Offering Period under this Plan by signing and delivering to
the Human Resource Department a written notice to that effect on a form provided for such purpose.  Such withdrawal may be elected at
any time prior to the end of an Offering Period, or such other time period as specified by the Committee.

(b)  Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to the withdrawn
participant, without interest, and his or her interest in this Plan shall terminate.  In the event a participant voluntarily elects
to withdraw from this Plan, he or she may not resume his or her participation in this Plan during the same Offering Period, but he or
she may participate in any Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new
authorization for payroll deductions in the same manner as set forth in Section 6 above for initial participation in this Plan.

12.  Termination of Employment.  Termination of a participant's employment for any reason, including
retirement, death or the failure of a participant to remain an eligible employee of the Company or of a Participating Subsidiary,
immediately terminates his or her participation in this Plan.  In such event, the payroll deductions credited to the participant's
account will be returned to him or her or, in the case of his or her death, to his or her legal representative, without interest.
For purposes of this Section 12, an employee will not be deemed to have terminated employment or failed to remain in the continuous
employ of the Company or of a Participating Subsidiary 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 ninety (90) days or reemployment upon the
expiration of such leave is guaranteed by contract or statute.

13.  Return of Payroll Deductions.  In the event a participant's interest in this Plan is terminated by
withdrawal, termination of employment or otherwise, or in the event this Plan is terminated by the Board, the Company shall deliver
to the participant all payroll deductions credited to such participant's account.  No interest shall accrue on the payroll deductions
of a participant in this Plan.

14.  Capital Changes.  Subject to any required action by the stockholders of the Company, the number of
shares of Common Stock covered by each option under this Plan which has not yet been exercised and the number of shares of Common
Stock which have been authorized for issuance under this Plan but have not yet been placed under option (collectively, the
"Reserves"), as well as the price per share of Common Stock covered by each option under this Plan which has
not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding shares
of Common Stock of the Company resulting from a stock split or the payment of a stock dividend (but only on the Common Stock) or any
other increase or decrease in the number of issued and outstanding shares of Common Stock effected without receipt of any
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 Committee,
whose determination shall be final, binding and conclusive.  Except as expressly provided herein, no issue by the Company of shares
of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock subject to an option.

In the event of the proposed dissolution or liquidation of the Company, the Offering Period will terminate
immediately prior to the consummation of such proposed action, unless otherwise provided by the Committee.  The Committee may, in the
exercise of its sole discretion in such instances, declare that this Plan shall terminate as of a date fixed by the Committee and
give each participant the right to purchase shares under this Plan prior to such termination.  In the event of (i) a merger or
consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned
subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial
change in the stockholders of the Company or their relative stock holdings and the options under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all participants), (ii) a merger in which the Company
is the surviving corporation but after which the stockholders of the Company immediately prior to such merger (other than any
stockholder that merges, or which owns or controls another corporation that merges, with the Company in such merger) cease to own
their shares or other equity interest in the Company, (iii) the sale of all or substantially all of the assets of the Company or
(iv) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or similar
transaction, the Plan will continue with regard to Offering Periods that commenced prior to the closing of the proposed transaction
and shares will be purchased based on the Fair Market Value of the surviving corporation's stock on each Purchase Date, unless
otherwise provided by the Committee consistent with pooling of interests accounting treatment.

The Committee may, if it so determines in the exercise of its sole discretion, also make provision for
adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, in the event that the
Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its
outstanding Common Stock, or in the event of the Company being consolidated with or merged into any other corporation.

15.  Nonassignability.  Neither payroll deductions credited to a participant's account nor any rights
with regard to the exercise of an option or to receive shares under this Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 22 below) by the
participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be void and without effect.

16.  Reports.  Individual accounts will be maintained for each participant in this Plan.  Each
participant shall receive promptly after the end of each Offering Period a report of his or her account setting forth the total
payroll deductions accumulated, the number of shares purchased, the per share price thereof and the remaining cash balance, if any,
carried forward to the next Offering Period, as the case may be.

17.  Notice of Disposition.  Each participant shall notify the Company in writing if the participant
disposes of any of the shares purchased in any Offering Period pursuant to this Plan if such disposition occurs within two (2) years
from the Offering Date or within one (1) year from the Purchase Date on which such shares were purchased (the
"Notice Period").  The Company may, at any time during the Notice Period, place a legend or legends on
any certificate representing shares acquired pursuant to this Plan requesting the Company's transfer agent to notify the Company of
any transfer of the shares.  The obligation of the participant to provide such notice shall continue notwithstanding the placement of
any such legend on the certificates.

18.  No Rights to Continued Employment.  Neither this Plan nor the grant of any option hereunder shall
confer any right on any employee to remain in the employ of the Company or any Participating Subsidiary, or restrict the right of the
Company or any Participating Subsidiary to terminate such employee's employment.

19.  Equal Rights And Privileges.  All eligible employees shall have equal rights and privileges with
respect to this Plan so that this Plan qualifies as an "employee stock purchase plan" within the meaning of Section 423 or
any successor provision of the Code and the related regulations.  Any provision of this Plan which is inconsistent with Section 423
or any successor provision of the Code shall, without further act or amendment by the Company, the Committee or the Board, be
reformed to comply with the requirements of Section 423.  This Section 19 shall take precedence over all other provisions in
this Plan.

20.  Notices.  All notices or other communications by a participant to the Company under or in
connection with this Plan shall be deemed to have been duly given when received in the form specified by the Company at the location,
or by the person, designated by the Company for the receipt thereof.

21. Term; Stockholder Approval.  After this Plan is adopted by the Board, this Plan will become
effective on August 15, 2000.  This Plan shall be approved by the stockholders of the Company, in any manner permitted by applicable
corporate law, within twelve (12) months before or after the date this Plan is adopted by the Board.  No purchase of shares pursuant
to this Plan shall occur prior to such stockholder approval.  This Plan shall continue until the earlier to occur of (a) termination
of this Plan by the Board (which termination may be effected by the Board at any time), (b) issuance of all of the shares of Common
Stock reserved for issuance under this Plan, or (c) ten (10) years from the adoption of this Plan by the Board.

22.  Designation of Beneficiary.

(a)  A participant may file a written designation of a beneficiary who is to receive any shares and cash, if
any, from the participant's account under this Plan in the event of such participant's death subsequent to the end of an Offering
Period but prior to delivery to him of such shares and cash.  In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant's account under this Plan in the event of such participant's death prior
to a Purchase Date.

(b)  Such designation of beneficiary may be changed by the participant at any time by written notice.  In the
event of the death of a participant and in the absence of a beneficiary validly designated under this Plan who is living at the time
of such participant's death, the Company shall deliver such shares or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its
discretion, may deliver such shares or cash to the spouse or to any one or more dependents or relatives of the participant, or if no
spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

23.  Conditions Upon Issuance of Shares; Limitation on Sale of Shares.  Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply
with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock
exchange or automated quotation system upon which the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

24.  Applicable Law.  The Plan shall be governed by the substantive laws (excluding the conflict of
laws rules) of the State of California.

25.  Amendment or Termination of this Plan.  The Board may at any time amend, terminate or extend the
term of this Plan, except that any such termination cannot affect options previously granted under this Plan, nor may any amendment
make any change in an option previously granted which would adversely affect the right of any participant, nor may any amendment be
made without approval of the stockholders of the Company obtained in accordance with Section 21 above within twelve (12) months of
the adoption of such amendment (or earlier if required by Section 21) if such amendment would:

(a)increase the number of shares that may be issued under this Plan; or

(b)change the designation of the employees (or class of employees) eligible for participation in this Plan.

Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board determines to be
advisable, if the continuation of the Plan or any Offering Period would result in financial accounting treatment for the Plan that is
different from the financial accounting treatment in effect on the date this Plan is adopted by the Board.EXHIBIT 10.1
                                                                    ------------

                                  STOCK OPTION

                                   GRANTED BY

                                  DYNAGEN, INC.
                       (hereinafter called the "Company")

                                       TO

                               F. HOWARD SCHNEIDER

                        (hereinafter called the "Holder")

         For valuable consideration, the receipt of which is hereby
acknowledged, the Company hereby grants to the Holder the following option:

         FIRST: Subject to the terms and conditions hereinafter set forth, the
Holder is hereby given the right and option to purchase from the Company shares
of the common stock, $.01 par value per share, ("Common Stock"), of the Company.
Schedule A hereto, the provisions of which are incorporated by reference herein,
sets forth (a) the maximum number of shares that the Holder may purchase upon
exercise of this Option, (b) the exercise price per share of Common Stock
purchasable hereunder, (c) the expiration date of this Option, (d) the vesting
rate and (e) certain other terms and conditions applicable to this Option.

         This Option shall be exercised in whole or in part by the Holder's
delivery to the Company of written notice (the "Notice of Exercise") setting
forth the number of shares with respect to which this Option is to be exercised,
together with (a) cash in an amount, or a check, bank draft or postal or express
money order payable in an amount, equal to the aggregate exercise price for the
shares being purchased, (b) with the consent of the Board (which term shall
herein include the "Committee," as that term is defined in the Plan), shares of
Common Stock having a fair market value equal to such aggregate exercise price;
(c) with the consent of the Board, a personal recourse note issued by the Holder
to the Company in a principal amount equal to such aggregate exercise price and
with such other terms, including interest rate and maturity, as the Board may
determine in its discretion, PROVIDED that the interest rate borne by such note
shall not be less than the lowest applicable federal rate, as defined in Section
1274(d) of the Internal Revenue Code of 1986, as amended; (d) with the consent
of the Board, such other consideration that is acceptable to the Board and that
has a fair market value, as determined by the Board, equal to such aggregate
exercise price; or (e) with the consent of the Board, any combination of the
foregoing. The "fair market value" of the Common Stock shall equal (i) the
closing price per share on the date of grant of the Option as reported by the
National Market
<PAGE>

System or another automated quotation system of the National Association of
Securities Dealers, Inc., including the OTC Bulletin Board, (ii) if the Common
Stock is not quoted on any such system, as reported by a national stock exchange
or (iii) if the Common Stock is not listed on such an exchange, the fair market
value as determined by the Board.

         SECOND: The Company, in its discretion, may file a registration
statement on Form S-8 under the Securities Act of 1933, as amended, to register
shares of Common Stock reserved for issuance under this option. At any time at
which such a registration statement is not in effect, it shall be a condition
precedent to any exercise of this Option that the Holder shall deliver to the
Company a customary "investment letter" satisfactory to the Company and its
counsel in which, among other things, the Holder shall (a) state that he or she
is acquiring shares of Common Stock subject to the Option for his or her own
account for investment and not with a view to the resale or distribution thereof
and (b) acknowledge that those shares are not freely transferable except in
compliance with federal and state securities laws.

         THIRD: In order to exercise this option in whole or in part, the Holder
shall deliver to the Company the Notice of Exercise and related investment
letter, payment of exercise price pursuant to Paragraphs First and Second hereof
and any agreement not inconsistent with that may then be required by the Company
in its sole discretion. As promptly as practicable after receipt by the Company,
such materials, the Company shall deliver to the Holder (or if any other
individual or individuals are exercising this Option, to such individual or
individuals) a certificate registered in the name of the Holder (or the names of
the other individual or individuals exercising this Option) and representing the
number of shares with respect to which this Option is then being exercised;
PROVIDED, HOWEVER, that if any law or regulation or order of the Securities and
Exchange Commission or any other body having jurisdiction in the premises shall
require the Company or the Holder (or the individual or individuals exercising
this Option) to take any action in connection with the shares then being
purchased, the date for the delivery of the certificate for such shares shall be
extended for the period necessary to take and complete such action. The Company
may imprint upon said certificate such legends as counsel for the Company may
consider appropriate. Delivery by the Company of the certificates for such
shares shall be deemed effected for all purposes when the Company or a stock
transfer agent of the Company shall have deposited such certificates in the
United States mail, addressed to the Holder, at the address specified in the
Notice. The Company will pay all fees or expenses necessarily incurred by the
Company in connection with the issuance and delivery of shares pursuant to the
exercise of this Option.

         The Company will, at all times while any portion of this Option is
outstanding, reserve and keep available, out of shares of its authorized and
unissued Common Stock or shares of Common Stock held in treasury, a sufficient
number of shares of its Common Stock to satisfy the requirements of this Option.

         FOURTH: If the Company shall effect any subdivision or consolidation of
shares of its stock or other capital readjustment, the payment of a stock
dividend, or other increase or reduction of the number of shares outstanding, in
any such case without receiving compensation therefor in money, services or
property, then the number, class and per share price of shares of stock subject
to this Option shall be appropriately adjusted in such a manner as to entitle
the
<PAGE>

Holder to receive upon exercise of this Option, for the same aggregate cash
consideration, the same total number and class of shares as he or she would have
received as a result of the event requiring the adjustment had he or she
exercised this Option in full immediately prior to such event.

         If the Company shall be a party to a reorganization or merger with one
or more other corporations (whether or not the Company is the surviving or
resulting corporation), shall consolidate with or into one or more other
corporations, shall be liquidated, or shall sell or otherwise dispose of
substantially all of its assets to another corporation (each a "Transaction"),
then:

                  (a) subject to the provisions of clauses (b) and (c) below,
         after the effective date of the Transaction, the Holder of this Option
         shall be entitled, upon exercise hereof and at no additional cost, to
         receive shares of Common Stock or, if applicable, shares of such other
         stock or other securities, cash or property as the holders of shares of
         Common Stock received pursuant to the terms of the Transaction;

                  (b) the Board may accelerate the time for exercise of this
         Option to a date prior to the effective date of the Transaction, as
         specified by the Board; or

                  (c) this Option may be canceled by the Board as of the
         effective date of the Transaction, PROVIDED that (i) notice of such
         cancellation shall have been given to the Holder and (ii) the Holder
         shall have the right to exercise this Option to the extent the same is
         then exercisable or, if the Board shall have accelerated the time for
         exercise of this Option, in full during the thirty-day period preceding
         the effective date of the Transaction.

         Except as hereinbefore expressly provided, the issue by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, for cash or property, or for labor or services, either upon direct
sale or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common Stock then
subject to this Option.

         FIFTH: Neither the Holder nor any other person shall, by virtue of the
granting of this Option, be deemed for any purpose to be the owner of any shares
of Common Stock subject to this Option or to be entitled to the rights or
privileges of a holder of such shares unless and until this Option has been
exercised pursuant to the terms hereof with respect to such shares and the
Company has issued and delivered the shares to the Holder.

         SIXTH: This Option is not transferable by the Holder or by operation of
law, otherwise than by will or under the laws of descent and distribution. This
Option is exercisable, during the Holder's lifetime, only by the Holder.

         In the event that the Holder's employment (which term shall "emploment"
include
<PAGE>

service as a director" with the Company or any subsidiary is terminated by the
Company without "Cause" (as defined hereinafter), the Holder shall have the
right to exercise this Option within thirty days after the latest date on which
the Holder so ceases to be an employee of the Company or any subsidiary or
parent (but not later than the expiration date of this Option) with respect to
the shares which were purchasable by the Holder by exercise of this Option on
such date.

         In the event that the Holder's employment is terminated by the Holder
for any reason or by the Company for Cause, this Option shall terminate
immediately. As used in this Option, "Cause" shall mean a determination by the
Company (including the Board) or a subsidiary or parent that the Holder's
employment with the Company or such subsidiary or parent should be terminated as
a result of (i) a material breach by the Holder of any agreement to which the
Holder and the Company (or such subsidiary or parent) are both parties, (ii) any
act (other than retirement) by the Holder that may have a material and adverse
effect on the business of the Company or any subsidiary or on the ability to
perform services for the Company or such subsidiary, including the proven or
admitted commission of any crime (other than an ordinary traffic violation), or
(iii) any material misconduct or material neglect of duties by the Holder in
connection with the business or affairs of the Company or such subsidiary or
parent.

         In the event of the death or permanent and total disability of the
Holder prior to termination of the Holder's employment with the Company and all
subsidiaries or parents and prior to the date of expiration of this Option, this
Option shall terminate on the earlier of the expiration date of this Option or
one year following the date of such death or disability.

         In the event of the death of the Holder prior to termination of the
Holder's employment with the Company and all subsidiaries or parents and prior
to the date of expiration of this Option, the Holder's executors, administrators
or any individual or individuals to whom this Option is transferred by will or
under the laws of descent and distribution, as the case may be, shall have the
right to exercise this Option with respect to the number of shares purchasable
by the Holder at the date of death.

         SEVENTH: The Holder agrees that, during the 180-day period commencing
with the closing date of any public offering by the Company of shares of Common
Stock pursuant to a registration statement filed under the Securities Act of
1933, as amended, or any successor act, the Holder will not, without the prior
written consent of the representative or representatives of the underwriters of
such offering, directly or indirectly, sell, offer to sell, contract to sell,
grant any option for the sale of, assign, transfer, pledge, hypothecate or
otherwise dispose of or encumber any shares of Common Stock acquired upon
exercise of this Option, other than such shares, if any, as shall be covered by
such registration statement or as shall be consented to by the Company and such
representative or representatives. The Holder further agrees that, in order to
facilitate any such public offering, (a) the agreements in this Paragraph
Seventh shall be for the benefit of such underwriters as well as the Company and
(b) upon request of such representative or representatives, the Holder will
execute a separate written instrument to the effect set forth in the preceding
sentence, with such changes therein as such representative or representatives
may request, PROVIDED that such changes are not materially adverse to the
interest of the Holder.
<PAGE>

         EIGHTH: If the Company in its discretion determines that it is
obligated to withhold tax with respect to shares of Common Stock received on
exercise of this Option, the Holder agrees that the Company may withhold from
the Holder's wages the appropriate amount of federal, state or local withholding
taxes attributable to the Holder's exercise of such Option. At the Company's
discretion, the amount required to be withheld may be withheld in cash from such
wages or (with respect to compensation income attributable to the exercise of
this Option) in kind from the Common Stock otherwise deliverable to the Holder
on exercise of this Option. The Holder further agrees that, if the Company does
not withhold an amount from the Holder's wages sufficient to satisfy the
Company's withholding obligation, the Holder will remit to the Company on
demand, in cash, the amount estimated by the Company to be underwithheld.

         NINTH: Any notice to be given to the Company hereunder shall be deemed
sufficient if addressed to the Company and delivered at the office of the Chief
Financial Officer of the Company, or to such other officer or at such other
address as the Company may hereafter designate, or when deposited in the mail,
postage prepaid, addressed to the attention of the Chief Financial Officer of
the Company at such office or other address.

         Any notice to be given to the Holder hereunder shall be deemed
sufficient if addressed to and delivered in person to the Holder at his address
furnished to the Company or when deposited in the mail, postage prepaid,
addressed to the Holder at such address.

         TENTH: This Option is subject to all laws, regulations and orders of
any governmental authority which may be applicable thereto and, notwithstanding
any of the provisions hereof, the Holder agrees that he will not exercise the
Option granted hereby nor will the Company be obligated to issue any shares of
stock hereunder if the exercise thereof or the issuance of such shares, as the
case may be, would constitute a violation by the Holder or the Company of any
such law, regulation or order or any provision thereof.
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be
executed in its name and on its behalf as of the effective date.

                                        DYNAGEN, INC.

                                        By: /s/ Dhananjay G. Wadekar
                                            -------------------------------
                                            Name: Dhananjay G. Wadekar
                                            Title: Executive Vice President

Acknowledgment

         The undersigned Holder acknowledges receipt of this Stock Option
Agreement, including Schedule A hereto, and agrees to be bound by all
obligations of the Holder as set forth in such Stock Option Agreement.

                                        HOLDER

                                        -----------------------------------
                                        Name:

<PAGE>
                                   SCHEDULE A

                                  DYNAGEN, INC.

                                  STOCK OPTION
                                  ------------

Date of Grant:                                October 13, 2000
                                              -----------------------------

Name of Holder:                               F. Howard Schneider
                                              -----------------------------

Address:                                      64 Avon Road
                                              -----------------------------

                                              Yarmouthport, MA 02675
                                              -----------------------------

Social Security Number:                       ###-##-####
                                              -----------------------------
Maximum number of shares for which
this Option is exercisable:                   300,000
                                              -----------------------------

Exercise (purchase) price per share:          $0.13
                                              -----------------------------

Expiration date of this Option:               October 13, 2010
                                              -----------------------------

Vesting rate:                                 All shares vest immediately
                                              -----------------------------

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

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

Other terms and conditions:                   none
                                              ----

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