Document:

July 3, 2000

Mr. Yifan He, President
Yifan.com, Inc.
41-60 Main Street, Suite 210
Flushing, Queens, New York 11355

      Re:   Agreement Respecting Future Legal Services

Dear Mr. He,

      This  letter will  confirm  that the law firm of Petersen & Fefer has been
engaged to serve as general counsel to Yifan.com,  Inc., a New York  Corporation
("Yifan").  We are aware  that  Yifan is  presently  negotiating  a  transaction
whereby the  stockholders  of Yifan will  exchange  their Yifan shares for newly
issued  shares of Smart  Games  Interactive,  Inc.,  an  inactive  public  shell
controlled by Capston Network Company ("Capston").

      As you know, our firm has  represented  Capston for several years. We have
also served as general  counsel for Smart Games since April 2000. As counsel for
Capston and Smart Games, we have assisted in the  negotiation and  documentation
of the  transactions  that gave Capston control over the affairs of Smart Games.
We have also  assisted in  subsequent  settlement  negotiations  with the former
creditors of Smart  Games.  Lastly,  we have borne  primary  responsibility  for
drafting various  corporate and regulatory  filings for Smart Games and assisted
Capston in its preliminary negotiations with Yifan.

      In our  discussions  over the last several weeks, it has become clear that
Yifan will require the services of competent  commercial and securities  counsel
in connection with the completion of the business  combination with Smart Games.
You will also  require  the  services of  competent  commercial  and  securities
counsel in connection  with the future  activities of Yifan. It is expected that
such services will include, but not be limited to:

o     preparation  of all  required  reports  to the SEC under the  Securities
   Exchange Act of 1934;

o     preparation of all necessary contracts;

o     assistance in  negotiations  with respect to  acquisitions of additional
   properties;

o     assistance in negotiations with respect to strategic relationships;

o     assistance in negotiations with respect to additional financing;

o     preparation  of  documents   associated   with  property   acquisitions,
   strategic relationships and financing;

o     assistance with respect to strategic planning; and

o     general legal services in areas other than litigation and patent law.

     At your  request,  I have  discussed the future needs of Yifan with Capston
and  advised  Capston  that Yifan would like to hire our law firm as its general
counsel. I have also discussed the following issues with Capston:

o     Our desire to continue as legal counsel for Capston in  connection  with
   other matters;

o     Our desire to withdraw as legal counsel for Capston in  connection  with
   the Yifan transaction;

o     Our desire to  continue as legal  counsel for Smart Games in  connection
   with the Yifan transaction

o     Our  desire to  assume  the role of  general  counsel  for the  combined
   Yifan/Smart Games companies;

o     Our obligation to protect the  confidences  of Capston,  Smart Games and
   Yifan; and

o     Our  obligation  to  diligently  pursue the best  interests  of Capston,
   Smart Games and Yifan;

Based on these discussions, we are willing to assume the role as general counsel
for  Yifan  and  the  combined  Yifan/Smart  Games  companies  on the  following
conditions:

o  The effective  date of our  engagement  as general  counsel for Yifan and the
   combined Yifan/Smart Games companies will be July 1, 2000.

o  It is  understood  that we cannot be  involved  in  negotiations  to alter or
   change the fundamental  terms of the proposed  Yifan/Smart  Games transaction
   after this date.

o  Our activities on behalf of Capston will be kept in strict  confidence to the
   extent that they relate to projects  other than the Smart Games  takeover and
   the Yifan/Smart Games transaction.

o  Capston will waive all rights to  confidentiality  on matters relating to the
   Smart  Games  takeover,  negotiations  with Smart  Games'  creditors  and the
   Yifan/Smart Games transaction.

o  In connection with the  documentation  and closing of the  Yifan/Smart  Games
   transaction  we will  continue to bear  primary  responsibility  for document
   preparation,  but  Capston  will have all such  documents  reviewed  by other
   attorneys.

o  In  connection  with future  negotiations  between  Capston,  Smart Games and
   Yifan,  we will  represent the best  interests of Smart Games and Yifan,  and
   Capston  acknowledges  that we are not acting as legal counsel for Capston in
   connection with such negotiations.

o  We will be permitted to issue  opinions on behalf of Yifan and Smart Games in
   connection with the closing of the Yifan/Smart Games transaction, but Capston
   will have all such opinions reviewed by other attorneys.

o  After the effective date of our  engagement as general  counsel for Yifan and
   the combined  Yifan/Smart  Games companies,  Yifan will be entitled to all of
   the client protections and privileges of the Code of Professional Conduct.

o  In the event a dispute  arises  between Yifan and Capston that relates in any
   way to the  Yifan/Smart  Games  transaction,  we will  refrain from acting as
   legal counsel for either party in  connection  with the dispute and cooperate
   fully with both parties in the resolution of the dispute.

     Subject to the foregoing, the law firm of Petersen & Fefer agrees to become
general counsel for Yifan.com,  Inc. and Smart Games Interactive,  Inc effective
July 1, 2000.  Yifan and Smart Games are  collectively  referred to from time to
time  as  the  "Yifan   Companies."  Our   representation  and  assistance  will
specifically include the following:

      (1) We will assist the Yifan  Companies  in the  development  of a holding
company  structure  whereby  Smart  Games  Interactive  will  acquire all of the
outstanding stock of Yifan.com, Inc. and the stockholders of Yifan.com, Inc., as
a group,  will acquire an equity  interest in Smart Games equal to not less than
92%.  We shall,  also  assist the Yifan  Companies  in any  "corporate  cleanup"
activities  necessary to complete the proposed business  combination,  including
the preparation of the necessary directors resolutions and other documents.

      (2) In connection  with the business  combination we will assist the Yifan
Companies in the preparation of such regulatory reports,  contracts,  minutes of
meetings and other  documents as may be  necessary,  convenient  or desirable to
enable the Yifan  Companies to complete the business  combination  in accordance
with the requirements of the Securities Act of 1933 (the "Securities  Act"), the
Securities  Exchange  Act  of  1934  (the  "Exchange  Act")  and  Delaware  law.
Subsequently, we will assist in the preparation of the following SEC filings:

o     Current  Report  on  Form  8-K  relating  to  the  business  combination
   transaction

o     Information Statement Pursuant to Section 14(f) of the Exchange Act;

o     Information Statement Pursuant to Section 14(c) of the Exchange Act;

o     All required  Quarterly and Annual  Reports and Proxy  Statements  under
   the Exchange Act;

o     All required registration statements under the Securities Act;

o     Miscellaneous filings under the Securities Act and the Exchange Act

In connection  with each such SEC filing,  we will assist in the  preparation of
such  contracts,  minutes of meetings as other  documents  as may be  necessary,
convenient  or desirable to enable the Yifan  Companies to lawfully  maintain an
active trading market on the NASD's Electronic  Bulletin Board, the Nasdaq Stock
Market or an  appropriate  regional  or  national  securities  exchange,  all in
accordance with the requirements of the Exchange Act.

      (3) In connection with the future  corporate  financing  activities of the
Yifan  Companies we will explain to  responsible  officers and  directors of the
Yifan Companies their  responsibilities under the applicable provisions of state
and Federal  securities laws and regulations  including,  in general terms,  the
possible  civil and criminal  consequences  associated  with a failure to comply
with such  requirements.  The  appropriate  officers and  directors of the Yifan
Companies must devote adequate time and attention to the review of any documents
prepared  by  us  because  the  applicable   securities  laws  place  upon  them
responsibility  for assuring  that all  necessary  disclosure  documents are not
materially false, misleading or incomplete.  They should further understand that
we, as lawyers, cannot relieve the Yifan Companies or their officers,  directors
and principal  stockholders of their individual  responsibilities  under the law
although we can assist them in fulfilling  them. All information  respecting the
Yifan Companies,  and all biographical information on the officers and directors
of the  Yifan  Companies,  shall  be  furnished  to us in  writing.  We shall be
entitled to rely on the accuracy  and  truthfulness  of all written  information
furnished by the Yifan  Companies and their  respective  officers and directors,
and the the Yifan  Companies and their  respective  officers and directors shall
jointly  and  severally  indemnify  and hold the law  firm of  Petersen  & Fefer
harmless from and against all claims  arising out of or resulting  from material
misrepresentations  or  omissions  contained  in such  written  information.  In
addition to (and not as a limitation to) the foregoing,  the Yifan Companies and
their respective officers and directors shall execute a Representation Agreement
which  will be  supplied  by us prior to the  closing  of any  future  financing
transaction.

      (4) We will discuss  with the  appropriate  officers and  directors of the
Yifan  Companies  their  need to create  procedures  which will  enable  them to
develop the  information  reasonably  necessary to meet the  requirements of the
Securities  Act and the Exchange  Act, and to create a reasonable  timetable and
assignment of  responsibilities  for developing such information.  In each case,
the  officers and  directors of the Yifan  Companies  shall be  responsible  for
assigning responsibility for developing particular types of information to those
persons most knowledgeable  about such matters.  Particularly,  all officers and
directors  should  be  given  a  timely  opportunity  to  review  the  necessary
disclosure  documents  and  discuss  them with those  persons  who are  directly
involved  in their  preparation  and to whom the  officers  and  directors  have
assigned responsibility.

      (5) We will  perform  legal  review and  analysis of matters  which may be
required to be passed upon by us in  connection  with any opinion  which must be
given  because it is  required  by law,  requested  by a party to a  transaction
involving the Yifan  Companies,  or has been  requested by the Yifan  Companies.
This would include for example, a check of due formation of Yifan.com,  Inc. and
Smart Games,  the valid  authorization  of the securities being issued and other
securities  of the same  class  and the  revision  of any  documents  which  may
directly  affect the proposed  transaction.  Our review and analysis  might also
include  in our  discretion  inquiry  concerning  titles,  important  contracts,
pending  litigation  and the impact of laws having a special effect on the Yifan
Companies.  To the extent we deem it prudent to  consult  with  counsel  for the
Yifan  Companies  for advice or opinions on matters  pertaining  to  litigation,
patent law or other matters outside of our area of expertise,  we are authorized
to do so with the prior approval of the Yifan  Companies.  All fees and expenses
of such  counsel  shall be the  sole  and  direct  responsibility  of the  Yifan
Companies.

      (6) We will  assist  the  Yifan  Companies  on the  basis  of  information
furnished to us by the Yifan Companies.  The  responsibility for decisions as to
whether a fact is  material  or whether  there is a material  inaccuracy  in any
statement  shall remain with the officers and directors of the Yifan  Companies.
We are not obligated to search all the files and records of the Yifan  Companies
to discover, for example, all material contracts or other documents but shall be
entitled to rely,  outside of certain legal matters,  on  interrogations  of and
reports  and  compilations  prepared  by others,  including  auditors  and other
lawyers.  In  particular,  we are not being  retained to furnish  accounting  or
economic advice.

      (7) We will  assist the Yifan  Companies  in the  drafting  of the various
documents that will be filed with the Securities and Exchange  Commission by the
Yifan Companies to the end that in his opinion, these documents reflect what the
Yifan  Companies  intend  them to say,  are not  ambiguous  and are written in a
manner  that is designed to protect  the Yifan  Companies  from later  claims of
overstatement,  misleading implications,  omissions or other deficiencies due to
the manner in which the documents in question have been  written.  However,  you
are cautioned  merely because we have assisted you in this  endeavor,  this will
not insure such documents will be free from all misleading, unclear or ambiguous
statements.  However,  all information properly furnished to us will be provided
in the in the format required.  Again, the ability to determine the substance or
context  of any  document  filed  with  the SEC  rests  solely  with  the  Yifan
Companies.

      (8) We will not be required to nor will we make statements that could give
a mistaken  impression we have passed upon matters which we have not nor that we
take  responsibility  for the accuracy and completeness of any document prepared
on  behalf of the Yifan  Companies.  We will  advise  the Yifan  Companies  with
respect to certain  matters under the Federal  securities law that may arise and
not relate  directly to the  preparation  of any  offering  document,  report or
regulatory  filing.  We will advise the Yifan Companies as to the procedures and
requirements  involved in the processing and distribution of regulatory reports,
proxy statements,  news releases and other investor relations material.  We will
also  assist the Yifan  Companies  in the  preparation  of any  notices or other
applications which may be required to be filed with the National  Association of
Securities Dealers, any Stock Exchanges upon which the Yifan Companies will seek
to  list  their  securities  and  the  securities  regulatory  authority  of the
applicable  states and will advise and assist the Yifan  Companies in responding
to any comments from such authorities.

      (9) We will advise  Yifan  Companies  in the  preparation  of any notices,
forms,  qualifications  and other  documents that may be necessary to notify the
Securities and Exchange Commission,  the securities  regulatory authority of any
states,  and any other  person or  regulatory  authority  of any of the proposed
transactions,  will  advise and assist  Yifan  Companies  in  responding  to any
comments from such regulatory authorities.

      (10) We will advise the Yifan Companies in the negotiation and preparation
of any contracts  that are  necessary or desirable for the future  operations of
the Yifan Companies including,  but not limited to, employment contracts,  stock
incentive   plans,   contracts  for  the   acquisition  of  tangible   property,
intellectual   property  and  other  intangible  property,   contracts  for  the
acquisition  of business  activities  or assets,  contracts  for the creation of
strategic  relationships  and  contracts  associated  with the future  financing
activities of the Yifan Companies.

      The  foregoing  undertakings  are  contingent  upon  the  Yifan  Companies
promptly advancing,  upon request,  all costs and expenses and fees when due and
owing.  Costs and expenses  include,  but are not limited to, travel,  printing,
filing  fees,  photocopy,  telephone,  document  preparation  charges,  courier,
Federal  Express,  postage  and  other  expenses.  The Yifan  Companies  further
acknowledge  that we may be required to resign this engagement if our failure to
do so would result in a violation of the Code of Professional Responsibility, or
any Disciplinary Rule promulgated thereunder,  such as those prohibiting counsel
from  knowingly  advising  or  assisting  his  client to engage in an illegal or
fraudulent act.

      In  recognition  of the fact  that the  financial  resources  of the Yifan
Companies are currently  limited and the Yifan Companies  intend to aggressively
control  their future  out-of-pocket  costs,  we have agreed to serve as general
counsel  under a  compensation  structure  that  is  equity-based,  rather  than
fee-based.  As  compensation  for the services to be rendered in connection with
the business combination and all required regulatory filings for a period of one
year  thereafter,  we shall receive a fee  consisting  of 360,000  shares of the
$0.008 par value common stock of the combined Yifan/Smart Games companies.  This
equity position will represent approximately 2.7% of the post-transaction equity
of the combined  Yifan/Smart Games companies.  These shares will be fully earned
upon the execution of the  reorganization  documents relating to the Yifan/Smart
Games business combination and shall have an agreed value of $0.89 per share, an
amount which is equal to the price paid by the last person to purchase shares of
Yifan.com,  Inc.  for  cash.  These  shares  will be  issuable  to us  upon  the
effectiveness of an amendment to the Company's Certificate of Incorporation that
authorizes the issuance of such $0.008 par value common stock.

     The Yifan  Companies  will have the right to terminate  our  engagement  as
general  counsel  at any time.  In the event that the Yifan  Companies  elect to
retain  another firm of lawyers to serve as counsel at any time during the first
year of our  engagement,  we shall be obligated to reimburse the Yifan Companies
for one-half of the total billings  rendered by such other firm, but only to the
extent such billings  specifically  relate to services  that would  otherwise be
covered by this agreement.  Notwithstanding the generality of the foregoing, our
maximum  liability  to the Yifan  Companies  with respect to the fees charged by
successor  legal counsel  shall not exceed  one-half of the fair market value of
the 360,000  shares  received by us. For purposes of this  limitation,  the fair
market value of the shares will be determined  based on the average  closing bid
price of the Yifan Companies common stock during the 30 day period commencing 90
days after completion of the business combination transaction.

      In addition to the fixed fee set forth in the  preceding  paragraph  which
relates solely to services  rendered as general counsel to the Yifan  Companies,
we shall be  entitled  to  receive  the  following  contingent  compensation  on
specific  transactions  effected by the Yifan  Companies  during the term of our
engagement.

o     If we serve as legal counsel for the Yifan  Companies in connection with
      the acquisition of additional properties,  assets or businesses, our fee
      for serving as counsel for the Yifan  Companies in  connection  with the
      transaction  will  be  2.7% of the  consideration  actually  paid by the
      Yifan   Companies   in   connection   with  the   transaction.   If  the
      consideration  to be  received by the other  parties to the  transaction
      consists  of equity  securities  of the Yifan  Companies  or deferred or
      contingent  payments,   our  fees  shall  likewise  be  paid  in  equity
      securities of the Yifan  Companies or deferred or  contingent  payments.
      The  Yifan  Companies  shall  have no duty to use our firm as its  legal
      counsel in connection with any acquisition transaction.

o     If we serve as legal  counsel  for the Yifan  Companies  in  connection  a
      future financing transaction, our fee for serving as counsel for the Yifan
      Companies  in  connection  with  the  transaction  will be  1.35% of gross
      proceeds   received  by  the  Yifan   Companies  in  connection  with  the
      transaction. The Yifan Companies shall have no duty to use our firm as its
      legal counsel in connection with any financing transaction.

All shares issuable  pursuant to this agreement shall be issuable 50% to John L.
Petersen and 50% to Rachel A. Fefer.  To the extent they may lawfully do so, the
Yifan  Companies  shall file a Registration  Statement  under the Securities Act
with respect to all shares issuable to us as compensation, but only if the Yifan
Companies are then eligible to file a short form Registration  Statement on Form
S-8. If the Yifan  Companies  are not  eligible to file a Form S-8  Registration
Statement, then such shares shall be issued pursuant to SEC Regulation D.

      We hereby agree that (a) the shares  provided for herein will be issued to
us compensation  for bona fide legal services  rendered to the Yifan  Companies,
(b) this  agreement  relates  solely to  day-to-day  legal  services  as general
counsel for the Yifan  Companies and our  compensation  for any future  "capital
raising  transactions"  will be established  by a separate  transaction-specific
retainer agreement (c) we have paid no cash consideration to the Yifan Companies
for the shares  that will be issued to us  pursuant  to the terms of this letter
and no portion of the  proceeds  from any resale of such shares will be remitted
to the Yifan  Companies or used  directly or  indirectly  for the payment of any
expenses of the Yifan Companies or any of their  affiliates,  (d) we will not be
involved,  except as  securities  counsel,  in any  activity  that  promotes  or
otherwise  maintains a market for the securities of the Yifan Companies,  (e) as
long as we are the beneficial owner of any securities of the Yifan Companies, we
will not engage in "buy-side" trading activities,  hedging transactions or other
activities  that could  reasonably  be expected to influence the market price of
such  securities,  (f) we will not  sell any  shares  in a  transaction  that is
effected  at a price  lower than the quoted bid price of the  securities  at the
time of sale,  (g) if we  engage  in  multiple  sales  in any  five  consecutive
business days, we will not sell any shares in a transaction  that is effected at
a price lower than the last price  received by us for the same  securities,  and
(h) we will not sell more than 10% of the  shares  issued to us in any  calendar
month.

      If the foregoing terms meet with your approval, please execute one copy of
this  letter in the space  provided  below and return  the  signed  copy at your
earliest  convenience.  We appreciate  this  opportunity to serve your needs and
look forward to a long and productive relationship.  Please call if you have any
questions or comments regarding the terms set forth above.

                                                Very truly yours,
                                                Petersen & Fefer

                                                        /s/

                                                By John L. Petersen

      Accepted and agreed to this 3rd day of July 1999.

Yifan.com, Inc.                               Smart Games Interactive, Inc.

By:           /s/                            By:           /s/
    --------------------------                   -------------
    Its President                                     Its President

Capston Network Company

By:           /s/
    -------------
    Its PresidentYifan Communications, Inc.

                         YEAR 2000 INCENTIVE STOCK PLAN

1.    Purpose of the Plan

      This 2000  Incentive  Stock Plan is intended to promote the  interests  of
Yifan Communications, Inc., a Delaware corporation (the "Company"), by providing
the employees of the Company,  who are largely  responsible  for the management,
growth  and  protection  of the  business  of the  Company,  with a  proprietary
interest in the Company.

2.    Definitions

      As  used  in the  Plan,  the  following  definitions  apply  to the  terms
indicated below:

      (a)   "Board of  Directors"  shall mean the Board of  Directors of Yifan
Communications, Inc., a Delaware corporation.

      (b)  "Cause,"  when  used  in  connection   with  the   termination  of  a
Participant's  employment  with the Company,  shall mean the  termination of the
Participant's  employment by the Company by reason of (i) the  conviction of the
Participant by a court of competent  jurisdiction  as to which no further appeal
can be taken of a crime involving moral turpitude; (ii) the proven commission by
the  Participant  of an act of fraud upon the  Company;  (iii) the  willful  and
proven  misappropriation  of  any  funds  or  property  of  the  Company  by the
Participant;  (iv)  the  willful,  continued  and  unreasonable  failure  by the
Participant  to perform  duties  assigned  to him and agreed to by him;  (v) the
knowing  engagement  by the  Participant  in any  direct,  material  conflict of
interest with the Company  without  compliance  with the  Company's  conflict of
interest  policy,  if any,  then in effect;  (vi) the knowing  engagement by the
Participant,  without the  written  approval  of the Board of  Directors  of the
Company,  in any  activity  which  competes  with the business of the Company or
which would  result in a material  injury to the  Company;  or (vii) the knowing
engagement in any activity  which would  constitute a material  violation of the
provisions  of the Company's  Policies and  Procedures  Manual,  if any, then in
effect.

      (c) "Cash Bonus" shall mean an award of a bonus  payable in cash  pursuant
to Section 10 hereof.

      (d)   "Change in Control" shall mean:

      (1)   a  "change  in   control"  of  the   Company,   as  that  term  is
     contemplated in the federal securities laws; or

      (2)   the occurrence of any of the following events:

            (A) any Person  becomes,  after the effective date of this Plan, the
         "beneficial  owner" (as  defined in Rule  13d-3  promulgated  under the
         Exchange  Act),  directly or  indirectly,  of securities of the Company
         representing  20% or more of the combined voting power of the Company's
         then  outstanding   securities;   provided,  that  the  acquisition  of
         additional voting securities, after the effective date of this Plan, by
         any  Person  who  is,  as of the  effective  date  of  this  Plan,  the
         beneficial  owner,  directly  or  indirectly,  of  20% or  more  of the
         combined  voting power of the Company's  then  outstanding  securities,
         shall not  constitute a "Change in Control" of the Company for purposes
         of this Section 2(d).

            (B) a majority  of  individuals  who are  nominated  by the Board of
         Directors  for election to the Board of Directors on any date,  fail to
         be elected to the Board of Directors as a direct or indirect  result of
         any proxy fight or  contested  election  for  positions on the Board of
         Directors, or

            (C) the  Board of  Directors  determines  in its  sole and  absolute
         discretion that there has been a change in control of the Company.

      (e) "Code" shall mean the Internal  Revenue Code of 1986,  as amended from
time to time.

      (f)  "Committee"  shall mean the  Compensation  Committee  of the Board of
Directors or such other  committee as the Board of Directors  shall appoint from
time to time to administer the Plan.

      (g) "Common Stock" shall mean the Company's  Common Stock, par value $.008
per share  described in a previously  amendment to the Company's  Certificate of
Incorporation  as filed with the  Secretary of State of the State of Delaware on
July 28, 2000.

      (h)   "Company"  shall  mean  Yifan  Communications,  Inc.,  a  Delaware
corporation, and each of its Subsidiaries, and its successors.

      (i)  "Exchange  Act" shall mean the  Securities  Exchange Act of 1934,  as
amended from time to time.

      (j) "Fair  Market  Value" of a share of Common  Stock on any date shall be
(i) the closing sales price on the immediately preceding business day of a share
of Common Stock as reported on the principal securities exchange on which shares
of  Common  Stock are then  listed  or  admitted  to  trading  or (ii) if not so
reported,  the average of the closing bid and asked prices for a share of Common
Stock on the  immediately  preceding  business  day as  quoted  on the  National
Association of Securities Dealers Automated Quotation System ("NASDAQ") or (iii)
if not quoted on NASDAQ,  the average of the closing bid and asked  prices for a
share of Common Stock as quoted by the National Quotation Bureau's "Pink Sheets"
or the National Association of Securities Dealers' OTC Bulletin Board System. If
the price of a share of Common Stock shall not be so  reported,  the Fair Market
Value of a share of Common  Stock shall be  determined  by the  Committee in its
absolute discretion.

      (k) "Incentive Award" shall mean an Option, a share of Restricted Stock, a
share of Phantom  Stock,  a Stock  Bonus or Cash Bonus  granted  pursuant to the
terms of the Plan.

      (l)  "Incentive  Stock Option" shall mean an Option which is an "incentive
stock  option"  within  the  meaning  of  Section  422 of the Code and  which is
identified  as an  Incentive  Stock  Option  in the  agreement  by  which  it is
evidenced.

      (m) "Issue Date" shall mean the date established by the Committee on which
certificates  representing  shares of  Restricted  Stock  shall be issued by the
Company pursuant to the terms of Section 7(d) hereof.

      (n)  "Non-Qualified  Stock  Option"  shall mean an Option  which is not an
Incentive Stock Option and which is identified as a  Non-Qualified  Stock Option
in the agreement by which it is evidenced.

      (o)  "Option"  shall mean an option to purchase  shares of Common Stock of
the  Company  granted  pursuant  to  Section  6  hereof.  Each  Option  shall be
identified as either an Incentive Stock Option or a  Non-Qualified  Stock Option
in the agreement by which it is evidenced.

      (p)  "Participant"  shall mean a full-time  employee of the Company who is
eligible to  participate  in the Plan and to whom an Incentive  Award is granted
pursuant to the Plan, and, upon his death, his successors,  heirs, executors and
administrators, as the case may be, to the extent permitted hereby.

      (q) "Person" shall mean a "person," as such term is used in Sections 13(d)
and 14(d) of the Exchange Act, and the rules and regulations in effect from time
to time thereunder.

      (r) "Phantom  Stock" shall represent the right to receive in cash the Fair
Market Value of a share of Common  Stock of the Company,  which right is granted
pursuant to Section 8 hereof and subject to the terms and  conditions  contained
therein.

      (s)   "Plan" shall mean the Yifan  Communications,  Inc. 2000  Incentive
Stock Plan, as it may be amended from time to time.

      (t) "Qualified  Domestic  Relations Order" shall mean a qualified domestic
relations  order as defined in the Code,  in Title I of the Employee  Retirement
Income  Security Act, or in the rules and  regulations  as may be in effect from
time to time thereunder.

      (u) "Restricted Stock" shall mean a share of Common Stock which is granted
pursuant  to the  terms  of  Section  7  hereof  and  which  is  subject  to the
restrictions set forth in Section 7 (c) hereof for so long as such  restrictions
continue to apply to such share.

      (v)  "Securities  Act" shall mean the  Securities  Act of 1933, as amended
from time to time.

      (w)  "Stock  Bonus"  shall  mean a grant of a bonus  payable  in shares of
Common Stock pursuant to Section 9 hereof.

      (x) "Subsidiary" or "Subsidiaries"  shall mean any and all corporations in
which at the pertinent  time the Company  owns,  directly or  indirectly,  stock
vested  with 50% or more of the total  combined  voting  power of all classes of
stock of such corporations within the meaning of Section 424(f) of the Code..

      (y) "Vesting  Date" shall mean the date  established  by the  Committee on
which a share of Restricted Stock or Phantom Stock may vest.

3.    Stock Subject to the Plan

      Under the Plan, the Committee may grant to Participants (i) Options,  (ii)
shares of Restricted  Stock,  (iii) shares of Phantom Stock,  (iv) Stock Bonuses
and (v) Cash Bonuses.

      The Committee may grant  Options,  shares of Restricted  Stock,  shares of
Phantom  Stock and Stock  Bonuses  under  the Plan with  respect  to a number of
shares  of  Common  Stock  that in the  aggregate  at any time  does not  exceed
1,500,000 shares of Common Stock. The grant of a Cash Bonus shall not reduce the
number of shares  of Common  Stock  with  respect  to which  Options,  shares of
Restricted  Stock,  shares of  Phantom  Stock or Stock  Bonuses  may be  granted
pursuant to the Plan.

      If any  outstanding  Option  expires,  terminates  or is canceled  for any
reason,  the shares of Common Stock subject to the  unexercised  portion of such
Option  shall  again be  available  for grant  under the Plan.  If any shares of
Restricted  Stock or Phantom  Stock,  or any shares of Common Stock granted in a
Stock Bonus are forfeited or canceled for any reason, such shares shall again be
available for grant under the Plan.

      Shares of Common Stock issued under the Plan may be either newly issued or
treasury shares, at the discretion of the Committee.

4.    Administration of the Plan

      The Plan shall be  administered  by a Committee  of the Board of Directors
consisting  of two or  more  persons,  each of whom  shall  be a  "disinterested
person" within the meaning of Rule  16b-3(c)(2)(i)  promulgated under Section 16
of the  Exchange  Act.  The  Committee  shall  from time to time  designate  the
employees  of the Company who shall be granted  Incentive  Awards and the amount
and type of such Incentive Awards.

      The Committee shall have full authority to administer the Plan,  including
authority to interpret  and construe any  provision of the Plan and the terms of
any Incentive  Award issued under it and to adopt such rules and regulations for
administering  the Plan as it may deem  necessary.  Decisions  of the  Committee
shall be final and binding on all parties.

      The Committee  may, in its absolute  discretion (i) accelerate the date on
which any Option  granted  under the Plan becomes  exercisable,  (ii) extend the
date on which any Option granted under the Plan ceases to be exercisable,  (iii)
accelerate  the  Vesting  Date or Issue  Date,  or waive any  condition  imposed
pursuant to Section 7(b) hereof,  with respect to any share of Restricted  Stock
granted  under  the Plan and  (iv)  accelerate  the  Vesting  Date or waive  any
condition  imposed  pursuant to Section 8 hereof,  with  respect to any share of
Phantom Stock granted under the Plan.

      In  addition,  the  Committee  may,  in  its  absolute  discretion,  grant
Incentive  Awards  to  Participants  on the  condition  that  such  Participants
surrender  to  the  Committee  for  cancellation  such  other  Incentive  Awards
(including, without limitation, Incentive Awards with higher exercise prices) as
the Committee  specifies.  Notwithstanding  Section 3 hereof,  Incentive  Awards
granted on the condition of surrender of outstanding  Incentive Awards shall not
count  against  the limits  set forth in such  Section 3 until Such time as such
Incentive Awards are surrendered.

      Whether  an  authorized  leave of  absence,  or  absence  in  military  or
government  service,   shall  constitute  termination  of  employment  shall  be
determined by the Committee in its absolute discretion.

      No member of the Committee  shall be liable for any action,  omission,  or
determination  relating to the Plan,  and the Company  shall  indemnify and hold
harmless each member of the Committee and each other director or employee of the
Company  to  whom  any  duty  or  power  relating  to  the   administration   or
interpretation  of the Plan  has been  delegated  from and  against  any cost or
expense  (including  attorneys'  fees) or liability  (including  any sum paid in
settlement  of a claim with the  approval of the  Committee)  arising out of any
action,  omission or determination relating to the Plan, unless, in either case,
such  action,  omission  or  determination  was  taken  or made by such  member,
director or employee in bad faith and without  reasonable  belief that it was in
the best interests of the Company.

5.    Eligibility

      The persons who shall be eligible to receive  Incentive Awards pursuant to
the Plan shall be such full-time  employees of the Company as the Committee,  in
its absolute  discretion,  shall select from time to time.  Notwithstanding  the
generality  of the  foregoing,  no employee of the Company  shall be eligible to
receive  Incentive Awards pursuant to this Plan if the employee is also entitled
to receive an Incentive  Award under the terms of his employment  agreement with
the  Company,  or any  specialty  Incentive  Stock Plan  adopted  after the date
hereof,  unless such employment  agreement or specialty plan expressly  provides
otherwise.

6.    Options

      The Committee may grant Options  pursuant to the Plan, which Options shall
be evidenced by agreements in such form as the Committee shall from time to time
approve.  Options  shall comply with and be subject to the  following  terms and
conditions:

      (a)   Identification of Options

      All  Options  granted  under the Plan shall be clearly  identified  in the
agreement  evidencing  such  Options  as either  Incentive  Stock  Options or as
Non-Qualified Stock Options.

      (b)   Exercise Price

      The exercise  price of any  Non-Qualified  Stock Option  granted under the
Plan shall be such price as the Committee  shall  determine on the date on which
such Non-Qualified Stock Option is granted; provided, that such price may not be
less than the minimum price required by law.  Except as provided in Section 6(d)
hereof,  the exercise price of any Incentive Stock Option granted under the Plan
shall be not less than 100% of the Fair Market  Value of a share of Common Stock
on the date on which such Incentive Stock Option is granted.

      (c)   Term and Exercise of Options

      (1) Each Option shall be  exercisable  on such date or dates,  during such
     period and for such number of shares of Common Stock as shall be determined
     by the  Committee  on the day on which such Option is granted and set forth
     in the agreement evidencing the Option;  provided,  however, that no Option
     shall be  exercisable  after the expiration of ten years from the date such
     Option was  granted;  and,  provided,  further,  that each Option  shall be
     subject to earlier  termination,  expiration or cancellation as provided in
     the Plan.

      (2) Each Option shall be  exercisable  in whole or in part with respect to
     whole shares of Common Stock.  The partial  exercise of an Option shall not
     cause the expiration,  termination or cancellation of the remaining portion
     thereof.  Upon the partial exercise of an Option, the agreement  evidencing
     such Option  shall be returned to the  Participant  exercising  such Option
     together with the delivery of the certificates described in Section 6(c)(5)
     hereof.

      (3) An Option  shall be exercised by  delivering  notice to the  Company's
     principal  office,  to the attention of its  Secretary,  no fewer than five
     business  days in advance of the effective  date of the proposed  exercise.
     Such notice shall be  accompanied  by the agreement  evidencing the Option,
     shall  specify the number of shares of Common  Stock with  respect to which
     the  Option  is being  exercised  and the  effective  date of the  proposed
     exercise,  and shall be  signed by the  Participant.  The  Participant  may
     withdraw  such  notice at any time  prior to the close of  business  on the
     business  day  immediately  preceding  the  effective  date of the proposed
     exercise,   in  which  case  such  agreement   shall  be  returned  to  the
     Participant. Payment for shares of Common Stock purchased upon the exercise
     of an Option shall be made on the effective  date of such  exercise  either
     (i) in cash, by certified  check,  bank cashier's check or wire transfer or
     (ii)  subject to the approval of the  Committee,  in shares of Common Stock
     owned by the  Participant  and  valued at their  Fair  Market  Value on the
     effective date of such exercise,  or (iii) partly in shares of Common Stock
     with the balance in cash, by certified check,  bank cashier's check or wire
     transfer.  Any  payment in shares of Common  Stock shall be effected by the
     delivery of such shares to the  Secretary of the Company,  duly endorsed in
     blank or accompanied by stock powers duly executed in blank,  together with
     any other  documents  and  evidences as the  Secretary of the Company shall
     require from time to time.

      (4) Any Option granted under the Plan may be exercised by a  broker-dealer
     acting on behalf of a  Participant  if (i) the  broker-dealer  has received
     from the  Participant or the Company a duly endorsed  agreement  evidencing
     such  Option and  instructions  signed by the  Participant  requesting  the
     Company to deliver the shares of Common Stock subject to such Option to the
     broker-dealer  on behalf of the Participant and specifying the account into
     which such shares  should be deposited,  (ii)  adequate  provision has been
     made with  respect to the  payment of any  withholding  taxes due upon such
     exercise and (iii) the  broker-dealer  and the  Participant  have otherwise
     complied with Section 220.3(e)(4) of Regulation T, 12 CFR Part 220.

      (5) Certificates for shares of Common Stock purchased upon the exercise of
     an Option shall be issued in the name of the  Participant  and delivered to
     the  Participant  as soon as  practicable  following the effective  date on
     which the Option is exercised;  provided, however, that such delivery shall
     be effected for all  purposes  when a stock  transfer  agent of the Company
     shall have deposited such certificates in the United States mail, addressed
     to the Participant.

      (6) During the lifetime of a Participant  each Option granted to him shall
     be exercisable  only by him. No Option shall be assignable or  transferable
     otherwise than by will or by the laws of descent and distribution.

      (d)   Limitations on Grant of Incentive Stock Options

      (1) The aggregate Fair Market Value of shares of Common Stock with respect
     to which  "incentive  stock  options"  (within the meaning of Section  422,
     without regard to Section 422(d) of the Code) are exercisable for the first
     time by a  Participant  during  any  calendar  year under the Plan (and any
     other stock option plan of the Company,  or any  subsidiary  of the Company
     shall not exceed $100,000. Such Fair Market Value shall be determined as of
     the date on which each such  Incentive  Stock  Option is  granted.  If such
     aggregate  Fair  Market  Value of shares of Common  Stock  underlying  such
     Incentive  Stock Options  exceeds  $100,000,  then Incentive  Stock Options
     granted hereunder to such Participant shall, to the extent and in the order
     required by Regulations  promulgated under the Code (or any other authority
     having  the  force  of   Regulations),   automatically   be  deemed  to  be
     Non-Qualified  Stock  Options,  but all other terms and  provisions of such
     Incentive  Stock  Options  shall remain  unchanged.  In the absence of such
     Regulations (and authority),  or if such Regulations (or authority) require
     or permit a  designation  of the options  which  shall cease to  constitute
     Incentive  Stock Options,  Incentive  Stock Options shall, to the extent of
     such excess and in the order in which they were granted,  automatically  be
     deemed  to  be  Non-Qualified  Stock  Options,  but  all  other  terms  and
     provisions of such Incentive Stock Options shall remain unchanged.

      (2) No Incentive  Stock Option may be granted to an individual  if, at the
     time of the proposed grant,  such individual  owns,  directly or indirectly
     (based on the  attribution  rules in  Section  424(d)  of the  Code)  stock
     possessing  more than ten percent of the total combined voting power of all
     classes of stock of the Company or any of its subsidiaries,  unless (i) the
     exercise price of such Incentive  Stock Option is at least 110% of the Fair
     Market  Value of a share of Common Stock at the time such  Incentive  Stock
     Option is granted and (ii) such Incentive  Stock Option is not  exercisable
     after the  expiration  of five  years  from the date such  Incentive  Stock
     Option is granted.

      (e)   Effect of Termination of Employment

      (1) If the  employment of a Participant  with the Company shall  terminate
     for any reason other than Cause,  "permanent and total  disability  (within
     the  meaning  of  Section  22(e)(3)  of  the  Code)  or  the  death  of the
     Participant  (i) Options  granted to such  Participant,  to the extent that
     they  were  exercisable  at the  time of  such  termination,  shall  remain
     exercisable  until the expiration of one month after such  termination,  on
     which date they shall expire, and (ii) Options granted to such Participant,
     to the  extent  that  they  were  not  exercisable  at  the  time  of  such
     termination,  shall  expire  at the close of  business  on the date of such
     termination;  provided,  however, that no Option shall be exercisable after
     the expiration of its term.

      (2) If the employment of a Participant with the Company shall terminate as
     a result of the  "permanent  and total  disability  (within  the meaning of
     Section 22(e)(3) of the Code) of the Participant,  the voluntary retirement
     of the  Participant in accordance with the Company's  retirement  policy as
     then in effect or the death of the  Participant (i) Options granted to such
     Participant,  to the extent that they were  exercisable at the time of such
     termination,  shall remain  exercisable  until the  expiration  of one year
     after such termination,  on which date they shall expire,  and (ii) Options
     granted to such  Participant,  to the extent that they were not exercisable
     at the time of such  termination,  shall expire at the close of business on
     the date of such termination;  provided,  however,  that no Option shall be
     exercisable after the expiration of its term.

      (3) In the event of the  termination  of a  Participant's  employment  for
     Cause, all outstanding  Options granted to such Participant shall expire at
     the commencement of business on the date of such termination.

      (f) Acceleration of Exercise Date Upon Change in Control

      Upon the occurrence of a Change in Control,  each Option granted under the
Plan and outstanding at such time shall become fully and immediately exercisable
and shall remain  exercisable until its expiration,  termination or cancellation
pursuant to the terms of the Plan.

7.    Restricted Stock

      The Committee may grant shares of Restricted  Stock  pursuant to the Plan.
Each grant of shares of  Restricted  Stock shall be evidenced by an agreement in
such form as the Committee shall from time to time approve. Each grant of shares
of Restricted  Stock shall comply with and be subject to the following terms and
conditions:

      (a)   Issue Date and Vesting Date

      At the time of the grant of  shares of  Restricted  Stock,  the  Committee
shall establish an Issue Date or Issue Dates and a Vesting Date or Vesting Dates
with respect to such shares.  The  Committee may divide such shares into classes
and assign a different Issue Date and/or Vesting Date for each class.  Except as
provided in Sections 7(c) and 7(f) hereof, upon the occurrence of the Issue Date
with respect to a share of Restricted  Stock, a share of Restricted  Stock shall
be issued in accordance  with the  provisions  of Section 7(d) hereof.  Provided
that all  conditions  to the  vesting  of a share of  Restricted  Stock  imposed
pursuant  to Section  7(b)  hereof are  satisfied,  and  except as  provided  in
Sections  7(c) and 7(f)  hereof,  upon the  occurrence  of the Vesting Date with
respect  to a  share  of  Restricted  Stock,  such  share  shall  vest  and  the
restrictions of Section 7(c) hereof shall cease to apply to such share.

      (b)   Conditions to Vesting

      At the time of the grant of shares of Restricted  Stock, the Committee may
impose such  restrictions or conditions,  not  inconsistent  with the provisions
hereof,  to the vesting of such shares as it in its  absolute  discretion  deems
appropriate.  By way of example and not by way of limitation,  the Committee may
require,  as a  condition  to the  vesting  of any class or classes of shares of
Restricted   Stock,   that  the  Participant  or  the  Company  achieve  certain
performance criteria, such criteria to be specified by the Committee at the time
of the grant of such shares.

      (c)   Restrictions on Transfer Prior to Vesting

      Prior to the  vesting of a share of  Restricted  Stock,  no  transfer of a
Participant's   rights  with  respect  to  such  share,   whether  voluntary  or
involuntary,  by operation of law or otherwise,  shall vest the transferee  with
any interest or right in or with respect to such share, but immediately upon any
attempt to  transfer  such  fights,  such share,  and all of the rights  related
thereto,  shall be forfeited by the  Participant and the transfer shall be of no
force or effect.

      (d)   Issuance of Certificates

      (1)  Except  as  provided  in  Sections  7(c) or 7(f)  hereof,  reasonably
     promptly  after the Issue Date with respect to shares of Restricted  Stock,
     the Company shall cause to be issued a stock certificate, registered in the
     name of the  Participant to whom such shares were granted,  evidencing such
     shares:  provided,  that the  Company  shall not cause to be issued  such a
     stock  certificates  unless it has received a stock power duly  endorsed in
     blank with respect to such shares.  Each such stock  certificate shall bear
     the following legend:

    The  transferability of this certificate and the shares of stock represented
hereby  are  subject  to  the  restrictions,  terms  and  conditions  (including
forfeiture  and   restrictions   against   transfer)   contained  in  the  Yifan
Communications,  Inc. 2000  Incentive  Stock Plan and an Agreement  entered into
between the  registered  owner of such shares and Yifan  Communications,  Inc. A
copy of the Plan and  Agreement  is on file in the  office of the  Secretary  of
Yifan Communications, Inc., 1134 Broadway, New York, NY 10010.

     Such  legend  shall not be removed  from the  certificate  evidencing  such
     shares until such shares vest pursuant to the terms hereof.

      (2) Each  certificate  issued  pursuant  to  Paragraph  7  (d)(1)  hereof,
     together with the stock powers  relating to the shares of Restricted  Stock
     evidenced by such  certificate,  shall be held by the Company.  The Company
     shall issue to the Participant a receipt  evidencing the certificates  held
     by it which are registered in the name of the Participant.

      (e)   Consequences Upon Vesting

      Upon the  vesting of a share of  Restricted  Stock  pursuant  to the terms
hereof,  the  restrictions  of Section  7(c) hereof shall cease to apply to such
share.  Reasonably  promptly after a share of Restricted Stock vests pursuant to
the terms  hereof,  the Company  shall cause to be issued and  delivered  to the
Participant  to whom such shares were  granted,  a certificate  evidencing  such
share, free of the legend set forth in Paragraph 7 (d)(1) hereof,  together with
any other property of the Participant  held by Company  pursuant to Section 7(d)
hereof, provided, however, that such delivery shall be effected for all purposes
when the Company shall have deposited such certificate and other property in the
United States mail, addressed to the Participant.

      (f)   Effect of Termination of Employment

      (1) If the  employment of a Participant  with the Company shall  terminate
     for any  reason  other  than  Cause  prior  to the  vesting  of  shares  of
     Restricted Stock granted to such Participant,  a portion of such shares, to
     the  extent  not  forfeited  or  canceled  on or prior to such  termination
     pursuant  to  any  provision  hereof,  shall  vest  on  the  date  of  such
     termination.  The portion  referred to in the preceding  sentence  shall be
     determined  by the  Committee  at the time of the  grant of such  shares of
     Restricted  Stock  and may be based on the  achievement  of any  conditions
     imposed by the  Committee  with respect to such shares  pursuant to Section
     7(b). Such portion may equal zero.

      (2) In the event of the  termination  of a  Participant's  employment  for
     Cause,  all shares of Restricted  Stock granted to such  Participant  which
     have not vested as of the date of such  termination  shall  immediately  be
     forfeited.

      (g)   Effect of Change in Control

      Upon the occurrence of a Change in Control, all shares of Restricted Stock
which have not  theretofore  vested  (including  those with respect to which the
Issue Date has not yet occur-red) shall immediately vest.

8.    Phantom Stock

      The Committee may grant shares of Phantom Stock pursuant to the Plan. Each
grant of shares of Phantom Stock shall be evidenced by an agreement in such form
as the  Committee  shall  from  time to time  approve.  Each  grant of shares of
Phantom  Stock  shall  comply  with and be  subject to the  following  terms and
conditions:

      (a)   Vesting Date

      At the time of the grant of shares of Phantom Stock,  the Committee  shall
establish  a Vesting  Date or Vesting  Dates with  respect to such  shares.  The
Committee  may divide such shares  into  classes and assign a different  Vesting
Date for each class.  Provided that all  conditions to the vesting of a share of
Phantom Stock imposed pursuant to Section 8(c) hereof are satisfied,  and except
as provided in Section 8(d) hereof, upon the occurrence of the Vesting Date with
respect to a share of Phantom Stock, such share shall vest.

      (b)   Benefit Upon Vesting

      Upon the  vesting  of a share of Phantom  Stock,  a  Participant  shall be
entitled  to  receive  in cash,  within 90 days of the date on which  such share
vests,  an amount in cash in a lump sum equal to the sum of (i) the Fair  Market
Value of a share of Common  Stock of the Company on the date on which such share
of Phantom Stock vests and (ii) the aggregate amount of cash dividends paid with
respect to a share of Common Stock of the Company  during the period  commencing
on the date on which the share of Phantom Stock was granted and  terminating  on
the date on which such share vests.

      (c)   Conditions to Vesting

      At the time of the grant of shares of Phantom  Stock,  the  Committee  may
impose such  restrictions or conditions,  not  inconsistent  with the provisions
hereof,  to the vesting of such shares as it, in its absolute  discretion  deems
appropriate.  By way of example and not by way of limitation,  the Committee may
require,  as a  condition  to the  vesting  of any class or classes of shares of
Phantom Stock,  that the Participant or the Company achieve certain  performance
criteria,  such  criteria to be  specified  by the  Committee at the time of the
grant of such shares.

      (d)   Effect of Termination of Employment

      (1) If the  employment of a Participant  with the Company shall  terminate
     for any reason  other than Cause  prior to the vesting of shares of Phantom
     Stock granted to such  Participant a portion of such shares,  to the extent
     not forfeited or canceled on or prior to such  termination  pursuant to any
     provision hereof,  shall vest on the date of such termination.  The portion
     referred to in the preceding  sentence shall be determined by the Committee
     at the time of the grant of such  shares of Phantom  Stock and may be based
     on the achievement of any conditions  imposed by the Committee with respect
     to such shares pursuant to Section 8(c). Such portion may equal zero.

      (2) In the event of the  termination  of a  Participant's  employment  for
     Cause, all shares of Phantom Stock granted to such  Participant  which have
     not  vested  as of the  date  of  such  termination  shall  immediately  be
     forfeited.

      (e)   Effect of Change in Control

      Upon the  occurrence  of a Change in Control,  all shares of Phantom Stock
which have not theretofore vested shall immediately vest.

9.    Stock Bonuses

      The Committee may, in its absolute discretion, grant Stock Bonuses in such
amounts as it shall  determine from time to time. A Stock Bonus shall be paid at
such time and subject to such conditions as the Committee shall determine at the
time of the grant of such Stock Bonus.  Certificates  for shares of Common Stock
granted as a Stock Bonus shall be issued in the name of the  Participant to whom
such grant was made and  delivered to such  Participant  as soon as  practicable
after the date on which such Stock Bonus is required to be paid.

10.   Cash Bonuses

      The Committee may, in its absolute  discretion,  grant in connection  with
any grant of Restricted Stock or Stock Bonus or at any time  thereafter,  a cash
bonus,  payable  promptly after the date on which the Participant is required to
recognize  income  for  federal  income tax  purposes  in  connection  with such
Restricted  Stock  or  Stock  Bonus,  in such  amounts  as the  Committee  shall
determine  from  time to time;  provided,  however,  that in no event  shall the
amount of a Cash Bonus  exceed the Fair Market  Value of the  related  shares of
Restricted  Stock or Stock Bonus on such date.  A Cash Bonus shall be subject to
such  conditions  as the Committee  shall  determine at the time of the grant of
such Cash Bonus.

11.   Adjustment Upon Changes in Common Stock

      (a)   Outstanding Restricted Stock and Phantom Stock

      Unless the Committee in its absolute discretion otherwise determines, if a
Participant  receives any securities or other property (including dividends paid
in cash)  with  respect  to a share of  Restricted  Stock,  the Issue  Date with
respect to which occurs prior to such event,  but which has not vested as of the
date of such event, as a result of any dividend,  stock split  recapitalization,
merger,  consolidation,  combination,  exchange  of  shares or  otherwise,  such
securities or other property will not vest until such share of Restricted  Stock
vests, and shall be held by the Company pursuant to Paragraph 7 (d) (2) hereof.

      The Committee may, in its absolute discretion,  adjust any grant of shares
of Restricted Stock, the Issue Date with respect to which has not occurred as of
the date of the  occurrence  of any of the  following  events,  or any  grant of
shares of Phantom Stock, to reflect any dividend, stock split, recapitalization,
merger,  consolidation,  combination,  exchange  of shares or similar  corporate
change as the  Committee  may deem  appropriate  to prevent the  enlargement  or
dilution of rights of Participants under the grant.

      (b)   Outstanding  Options,   Increase  or  Decrease  in  Issued  Shares
Without Consideration

      Subject to any required action by the shareholders of the Company,  in the
event of any increase or decrease in the number of issued shares of Common Stock
resulting from a subdivision or  consolidation  of shares of Common Stock or the
payment of a stock  dividend  (but only on the shares of Common  Stock),  or any
other increase or decrease in the number of such shares effected without receipt
of consideration by the Company, the Committee shall  proportionally  adjust the
number of shares and the  exercise  price per share of Common  Stock  subject to
each outstanding Option.

      (c)   Outstanding Options, Certain Mergers

      Subject to any required action by the shareholders of the Company,  if the
Company  shall be the  surviving  corporation  in any  merger  or  consolidation
(except a merger of  consolidation as a result of which the holders of shares of
Common Stock receive securities of another corporation), each Option outstanding
on the date of such merger or  consolidation  shall entitle the  Participant  to
acquire upon exercise the  securities  which a holder of the number of shares of
Common  Stock  subject to such  Option  would have  received  in such  merger or
consolidation.

      (d)   Outstanding Options, Certain Other Transactions

      In the event of a dissolution or liquidation of the Company, a sale of all
or  substantially  all  of the  Company's  assets,  a  merger  or  consolidation
involving the Company in which the Company is not the surviving corporation or a
merger or  consolidation  involving  the  Company  in which the  Company  is the
surviving  corporation  but the  holders  of  shares  of  Common  Stock  receive
securities of another  corporation  and/or other  property,  including cash, the
Committee shall, in its absolute discretion, have the power to:

     (1) cancel,  effective  immediately  prior to the occurrence of such event,
     each Option  outstanding  immediately  prior to such event  (whether or not
     then exercisable),  and, in full consideration of such cancellation, pay to
     the Participant to whom such Option was granted an amount in cash, for each
     share of Common Stock subject to such Option equal to the excess of (A) the
     value,  as determined by the Committee in its absolute  discretion,  of the
     property  (including  cash)  received  by the  holder of a. share of Common
     Stock as a result of such event over (B) the exercise price of such Option;
     or

     (2) provide for the exchange of each Option  outstanding  immediately prior
     to such event  (whether or not then  exercisable)  for an option on some or
     all of the  property  for which  such  Option is  exchanged  and,  incident
     thereto, make an equitable adjustment as determined by the Committee in its
     absolute  discretion in the exercise price of the option,  or the number of
     shares or amount of  property  subject to the  option  or, if  appropriate,
     provide  for a cash  payment  to the  Participant  to whom such  Option was
     granted in partial consideration for the exchange of the Option.

      (e)   Outstanding Options. Other Changes

      In the  event  of any  change  in the  capitalization  of the  Company  or
corporate  change other than those  specifically  referred to in Sections 11(b),
(c) or (d) hereof,  the  Committee  may, in its absolute  discretion,  make such
adjustments in the number and class of shares subject to Options  outstanding on
the date on which such change occurs and in the per share exercise price of each
such Option as the Committee  may consider  appropriate  to prevent  dilution or
enlargement of rights.

      (f)   No Other Rights

      Except as expressly  provided in the Plan, no  Participant  shall have any
rights by reason of any subdivision or  consolidation  of shares of stock of any
class,  the payment of any  dividend,  any increase or decrease in the number of
shares  of  stock  of any  class  or any  dissolution,  liquidation,  merger  or
consolidation  of the  Company  or any other  corporation.  Except as  expressly
provided  in the Plan,  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 of shares of Common Stock  subject to an Incentive  Award or the exercise
price of any Option.

12.   Rights as a Shareholder

      No person  shall  have any  rights as a  shareholder  with  respect to any
shares of Common Stock  covered by or relating to any  Incentive  Award  granted
pursuant to this Plan until the date of the issuance of a stock certificate with
respect to such  shares.  Except as otherwise  expressly  provided in Section 11
hereof,  no  adjustment  to any  Incentive  Award shall be made for dividends or
other  rights  for which the  record  date  occurs  prior to the date such stock
certificate is issued.

13.   No Special Employment Rights; No Right to Incentive Award

      Nothing contained in the Plan or any Incentive Award shall confer upon any
Participant any right with respect to the  continuation of his employment by the
Company or interfere  in any way with the right of the  Company,  subject to the
terms of any  separate  employment  agreement  to the  contrary,  at any time to
terminate  such  employment or to increase or decrease the  compensation  of the
Participant  from the rate in existence at the time of the grant of an Incentive
Award.

      No person  shall  have any claim or right to receive  an  Incentive  Award
hereunder.  The  Committee's  granting of an Incentive Award to a Participant at
any time shall neither require the Committee to grant an Incentive Award to such
Participant  or any other  Participant  or other person at any time nor preclude
the Committee  from making  subsequent  grants to such  Participant or any other
Participant or other person.

14.   Securities Matters

      (a) The Company shall be under no  obligation  to effect the  registration
pursuant  to the  Securities  Act of any  shares  of  Common  Stock to be issued
hereunder or to effect similar compliance under any state laws.  Notwithstanding
anything herein to the contrary,  the Company shall not be obligated to cause to
be  issued or  delivered  any  certificates  evidencing  shares of Common  Stock
pursuant to the Plan unless and until the Company is advised by its counsel that
the  issuance  and  delivery  of such  certificates  is in  compliance  with all
applicable laws,  regulations of governmental  authority and the requirements of
any  securities  exchange  on which  shares of  Common  Stock  are  traded.  The
Committee  may  require,  as  a  condition  of  the  issuance  and  delivery  of
certificates  evidencing  shares of Common Stock  pursuant to the terms  hereof,
that  the  recipient  of  such  shares  make  such  covenants,   agreements  and
representations, and that such certificates bear such legends, as the Committee,
in its sole discretion, deems necessary or desirable.

      (b) The exercise of any Option granted  hereunder  shall only be effective
at such time as counsel to the Company shall have  determined  that the issuance
and  delivery  of  shares  of  Common  Stock  pursuant  to such  exercise  is in
compliance with all applicable laws, regulations of governmental authorities and
the requirements of any securities  exchange on which shares of Common Stock are
traded. The Company may, in its sole discretion,  defer the effectiveness of any
exercise of an Option granted hereunder in order to allow the issuance of shares
of Common  Stock  pursuant  thereto to be made  pursuant to  registration  or an
exemption  from  registration  or other methods for compliance  available  under
federal or state  securities  laws. The Company shall inform the  Participant in
writing of its decision to defer the  effectiveness of the exercise of an Option
granted  hereunder.  During the period that the effectiveness of the exercise of
an Option has been deferred,  the Participant  may, by written notice,  withdraw
such exercise and obtain the refund of any amount paid with respect thereto.

15.   Withholding Taxes

      Whenever  shares of Common  Stock are to be issued upon the exercise of an
Option, the occurrence of the Issue Date or Vesting Date with respect to a share
of Restricted  Stock or the payment of a Stock Bonus, the Company shall have the
right to  require  the  Participant  to remit to the  Company  in cash an amount
sufficient to satisfy federal, state and local withholding tax requirements,  if
any, attributable to such exercise,  occurrence or payment prior to the delivery
of any certificate or certificates for such shares. In addition,  upon the grant
of a Cash  Bonus or the making of a payment  with  respect to a share of Phantom
Stock,  the  Company  shall  have the right to  withhold  from any cash  payment
required  to be made  pursuant  thereto  an amount  sufficient  to  satisfy  the
federal,  state and local withholding tax requirements,  if any, attributable to
such exercise or grant.

16.   Amendment of the Plan

      The Board of Directors may at any time suspend or discontinue  the Plan or
revise or amend it in any respect whatsoever,  provided,  however,  that without
approval  of the  shareholders  no  revision  or  amendment  shall (i) except as
provided  in Section 11 hereof,  increase  the number of shares of Common  Stock
that may be  issued  under the  Plan,  (ii)  materially  increase  the  benefits
accruing to individuals holding Incentive Awards granted pursuant to the Plan or
(iii) materially  modify the requirements as to eligibility for participation in
the Plan.

17.   No Obligation to Exercise

      The grant to a Participant  of an Option shall impose no  obligation  upon
such Participant to exercise such Option.

18.   Transfers Upon Death

      Upon the death of a Participant,  outstanding  Incentive Awards granted to
such Participant may be exercised only by the executors or administrators of the
Participant's  estate or by any person or persons who shall have  acquired  such
right  to  exercise  by will or by the  laws of  descent  and  distribution.  No
transfer by will or the laws of descent and distribution of any Incentive Award,
or the right to exercise  any  Incentive  Award,  shall be effective to bind the
Company  unless the Committee  shall have been furnished with (a) written notice
thereof and with a copy of the will and/or such  evidence as the  Committee  may
deem necessary to establish the validity of the transfer and (b) an agreement by
the  transferee  to comply with all the terms and  conditions  of the  Incentive
Award that are or would have been  applicable to the Participant and to be bound
by the  acknowledgments  made by the Participant in connection with the grant of
the Incentive Award.

19.   Expenses and Receipts

      The  expenses  of the Plan  shall  be paid by the  Company.  Any  proceeds
received by the Company in connection  with any Incentive Award will be used for
general corporate purposes.

20.   Failure to Comply

      In addition to the remedies of the Company elsewhere  provided for herein,
failure by a Participant  to comply with any of the terms and  conditions of the
Plan or the  agreement  executed by such  Participant  evidencing  an  Incentive
Award, unless such failure is remedied by such Participant within ten days after
having been notified of such failure by the Committee,  shall be grounds for the
cancellation  and forfeiture of such Incentive Award, in whole or in part as the
Committee, in its absolute discretion, may determine.

21.   Effective Date and Term of Plan

      The Plan was adopted by the Board of Directors  effective  August 3, 2000,
subject to  approval  by the  shareholders  of the  Company in  accordance  with
applicable law, the requirements of Section 422 of the Code and the requirements
of Rule 16b-3 under Section 16(b) of the Exchange Act. No Incentive Award may be
granted  under the Plan after  August 2, 2010.  Incentive  Awards may be granted
under the Plan at any time prior to the  receipt of such  shareholder  approval;
provided,  however,  that each such grant  shall be  subject  to such  approval.
Without  limitation on the  foregoing,  no Option may be exercised  prior to the
receipt of such approval,  no share  certificate  shall be issued  pursuant to a
grant of  Restricted  Stock or Stock Bonus prior to the receipt of such approval
and no Cash Bonus or payment with  respect to a share of Phantom  Stock shall be
paid prior to the receipt of such  approval.  If the Plan is not approved by the
Company's shareholders,  then the Plan and all Incentive Awards then outstanding
hereunder shall forthwith automatically terminate and be of no force and effect.

      IN WITNESS  WHEREOF,  this 2000 Incentive  Stock Plan has been executed in
Clearwater, Florida, this 3rd day of August 2000.

YIFAN COMMUNICATIONS, INC.                      ATTEST

              /s/                                          /s/
------------------------------               -----------------
Yifan He, President                             Sally A. Fonner, Secretary

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