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                                                                   EXHIBIT 10.27

                         REGISTRATION RIGHTS AGREEMENT

          This REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of May
2, 2000, is entered into by and among e-Net Financial.com Corporation, a Nevada
corporation, with headquarters located at 3200 Bristol Street, Suite 700, Costa
Mesa, California 92626 (the "COMPANY"), and the undersigned buyers (each, a
"BUYER" and collectively, the "BUYERS").

         WHEREAS:

         A.    In connection with the Securities Purchase Agreement by and
among the parties dated as of May 2, 2000 (the "SECURITIES PURCHASE AGREEMENT"),
the Company has agreed, upon the terms and subject to the conditions of the
Securities Purchase Agreement, (i) to issue and sell to the Buyers 666,666
shares of the Company's common stock, no par value per share (the "COMMON
Stock") and (ii) to issue 333,334 Warrants (the "WARRANTS") which will be
exercisable to purchase Company Common Stock (the "WARRANT SHARES"); and

         B.    To induce the Buyers to execute and deliver the Securities
Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the
"1933 ACT"), and applicable state securities laws.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Buyers hereby agree as follows:

         1.    DEFINITIONS.

               As used in this Agreement, the following terms shall have the
following meanings:

               a.   "INVESTOR" means a Buyer, any transferee or
assignee thereof to whom a Buyer assigns its rights under this Agreement and who
agrees to become bound by the provisions of this Agreement in accordance with
Section 10 and any transferee or assignee thereof to whom a transferee or
assignee assigns its rights under this Agreement and who agrees to become bound
by the provisions of this Agreement in accordance with Section 10.

               b.   "PERSON" means a corporation, a limited liability
company, an association, a partnership, an organization, a business, an
individual, a governmental or political subdivision thereof or a governmental
agency.

               c.   "REGISTER," "REGISTERED," and "REGISTRATION" refer
to a registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the 1933 Act and pursuant to
Rule 415 under the 1933 Act or any successor rule providing for offering
securities on a continuous basis ("RULE 415"), and the declaration or ordering
of effectiveness of such Registration Statement(s) by the United States
Securities and Exchange Commission (the "SEC").

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               d.   "REGISTRABLE SECURITIES" means the Common Stock and
the Warrant Shares issued or issuable upon exercise of the Warrants and any
shares of capital stock issued or issuable with respect to the Common Stock,
Warrants or Warrant Shares as a result of any stock split, stock dividend,
recapitalization, exchange, anti-dilution rights, liquidated damages payment or
similar event or otherwise, without regard to any limitation on the exercise of
the Warrants.

               e.   "REGISTRATION  STATEMENT"  means a  registration
statement  of the  Company  filed  under  the 1933 Act and pursuant to Rule 415.

Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Securities Purchase Agreement.

         2.    REGISTRATION.

               a.   MANDATORY REGISTRATION. The Company shall prepare,
and, as soon as practicable, but in no event later than one hundred eighty (180)
calendar days after the date hereof, file with the SEC a Registration Statement
or Registration Statements (as is necessary) on Form SB-2 (or if such form is
unavailable, such other form as is available for registration) covering the
resale of all of the Registrable Securities. The initial Registration Statement
prepared pursuant hereto shall register for resale at least that number of
shares of Company Common Stock equal to the product of (x) two (2) and (y) the
number of Registrable Securities as of the date immediately preceding the date
the Registration Statement is initially filed with the SEC, subject to
adjustment as provided in Section 3(b). The Company shall use its best efforts
to have the Registration Statement declared effective by the SEC as soon as
practicable, but in no event later than two hundred ten (210) calendar days
after the date hereof.

               b.   PIGGY-BACK REGISTRATIONS. If at any time prior to
the expiration of the Registration Period (as defined in Section 3(a)) the
Company proposes to file with the SEC a Registration Statement relating to an
offering for its own account or the account of others under the 1933 Act of any
of its securities (other than on Form S-8 (or their equivalents at such time)
relating to equity securities issuable in connection with stock option or other
employee benefit plans or on Form S-4 (or their equivalents at such time)
relating to equity securities issuable in connection with a business
combination) the Company shall promptly send to each Investor written notice of
the Company's intention to file a Registration Statement and of such Investor's
rights under this Section 2(b) and, if within twenty (20) days after receipt of
such notice, such Investor shall so request in writing, the Company shall
include in such Registration Statement all or any part of the Registrable
Securities such Investor requests to be registered, subject to the priorities
set forth in Section 2(b) below. No right to registration of Registrable
Securities under this Section 2(b) shall be construed to limit any registration
required under Section 2(a). The obligations of the Company under this Section
2(b) may be waived by the Buyers. If an offering in connection with which an
Investor is entitled to registration under this Section 2(b) is an underwritten
offering, then each Investor whose Registrable Securities are included in such
Registration Statement shall, unless otherwise agreed by the Company, offer and
sell such Registrable Securities in an underwritten offering using the same
underwriter or underwriters and, subject to the provisions of this Agreement, on
the same

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terms and conditions as other shares of Company common stock included
in such underwritten offering. If a registration pursuant to this Section 2(b)
is to be an underwritten public offering and the managing underwriter(s) advise
the Company in writing, that in their reasonable good faith opinion, marketing
or other factors dictate that a limitation on the number of shares of Company
common stock which may be included in the Registration Statement is necessary to
facilitate and not adversely affect the proposed offering, then the Company
shall include in such registration: (1) first, all securities the Company
proposes to sell for its own account, (2) second, up to the full number of
securities proposed to be registered for the account of the holders of
securities entitled to inclusion of their securities in the Registration
Statement by reason of demand registration rights, and (3) third, the securities
requested to be registered by the Investors and other holders of securities
entitled to participate in the registration, as of the date hereof, drawn from
them pro rata based on the number each has requested to be included in such
registration.

               c.   ALLOCATION OF REGISTRABLE SECURITIES. The initial
number of Registrable Securities included in any Registration Statement and each
increase in the number of Registrable Securities included therein shall be
allocated pro rata among the Investors based on the number of Registrable
Securities held, or which could be held, by each Investor at the time the
Registration Statement covering such initial number of Registrable Securities or
increase thereof is declared effective by the SEC. In the event that an Investor
sells or otherwise transfers any of such Person's Registrable Securities, each
transferee shall be allocated a pro rata portion of the then remaining number of
Registrable Securities included in such Registration Statement for such
transferor. Any shares of Common Stock included in a Registration Statement and
which remain allocated to any Person which ceases to hold any Registrable
Securities shall be allocated to the remaining Investors, pro rata based on the
number of Registrable Securities then held by such Investors.

               d.   LEGAL COUNSEL. Subject to Section 5 hereof, the
Buyers shall have the right to select one legal counsel to review and oversee
any offering pursuant to this Section 2 ("LEGAL COUNSEL"). The Company shall
reasonably cooperate with Legal Counsel in performing the Company's obligations
under this Agreement.

               e.   [Reserved.]

               f.   RULE 416. The Company and the Investors each
acknowledge that each Registration Statement prepared in accordance hereunder
shall include an indeterminate number of Registrable Securities pursuant to Rule
416 under the 1933 Act so as to cover any and all Registrable Securities which
may become issuable (i) to prevent dilution resulting from stock splits, stock
dividends or similar transactions and (ii) if permitted by law, by reason of the
anti-dilution provisions contained in the Certificate of Designations and the
Warrants in accordance with the terms thereof (collectively, the "RULE 416
SECURITIES"). In this regard, the Company agrees to use all reasonable efforts
to ensure that the maximum number of Registrable Securities which may be
registered pursuant to Rule 416 under the 1933 Act are covered by each
Registration Statement and, absent guidance from the SEC or other definitive
authority to the contrary, the Company shall use all reasonable efforts to
affirmatively support and to not take any position adverse to the position that
each Registration Statement filed hereunder covers all of the Rule 416
Securities. If the Company determines that the Registration Statement

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filed hereunder does not cover all of the Rule 416 Securities, the Company shall
immediately (i) provide to each Investor written evidence setting forth the
basis for the Company's position and the authority therefor and (ii) prepare and
file an amendment to such Registration Statement or a new Registration Statement
in accordance with Section 2(g).

               g. SUFFICIENT NUMBER OF SHARES REGISTERED. In the
event the number of shares available under a Registration Statement filed
pursuant to Section 2(a) is insufficient to cover all of the Registrable
Securities or an Investor's allocated portion of the Registrable Securities
pursuant to Section 2(c) (a "DEFICIT FAILURE"), the Company shall amend the
Registration Statement, or file a new Registration Statement (on the short form
available therefor, if applicable), or both, so as to cover at least two hundred
percent (200%) of such Registrable Securities in each case, as soon as
practicable, but in any event not later than fifteen (15) days after the
necessity thereof arises. The Company shall use it best efforts to cause such
amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof. For purposes of the foregoing
provision, the number of shares available under a Registration Statement shall
be deemed "insufficient to cover all of the Registrable Securities" if at any
time the number of Registrable Securities issued or issuable upon exercise of
the Warrants is greater than the quotient determined by dividing (i) the number
of shares of Common Stock available for resale under such Registration Statement
by (ii) two.

         3.    RELATED OBLIGATIONS.

         Whenever an Investor has requested that any Registrable Securities be
registered pursuant to Section 2(b) or at such time as the Company is obligated
to file a Registration Statement with the SEC pursuant to Section 2(a) or 2(g),
the Company will use its best efforts to effect the registration of the
Registrable Securities in accordance with the intended method of disposition
thereof and, pursuant thereto, the Company shall have the following obligations:

               a. The Company shall promptly prepare and file (but in no
event later than one hundred eighty (180) calendar days after the date
hereof) with the SEC a Registration Statement with respect to the Registrable
Securities for the registration of Registrable Securities pursuant to Section
2(a) and use its best efforts to cause such Registration Statement relating to
the Registrable Securities to become effective as soon as possible after such
filing (but in no event later than two hundred seventy (270) calendar days after
the date hereof for the registration of Registrable Securities pursuant to
Section 2(a)), and keep such Registration Statement effective pursuant to Rule
415 at all times until the earlier of (i) the date as of which the Investors may
sell all of the Registrable Securities without restriction pursuant to Rule
144(k) promulgated under the 1933 Act (or successor thereto) or (ii) the date on
which (A) the Investors shall have sold all the Registrable Securities and (B)
none of the Warrants is outstanding (the "REGISTRATION PERIOD"), which
Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein, or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading.

               b. The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the pro-

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spectus used in connection with such Registration Statement, which prospectus
is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be
necessary to keep such Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the provisions of the
1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by such Registration Statement until such time as all of such
Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth
in such Registration Statement.

               c. The Company shall permit Legal Counsel to review and comment
upon a Registration Statement and all amendments and supplements thereto at
least seven (7) days prior to their filing with the SEC, and not file any
document in a form to which Legal Counsel reasonably objects. The Company shall
not submit a request for acceleration of the effectiveness of a Registration
Statement or any amendment or supplement thereto without the prior approval of
Legal Counsel, which consent shall not be unreasonably withheld. The Company
shall furnish to Legal Counsel, without charge, (i) any correspondence from the
SEC or the staff of the SEC to the Company or its representatives relating to
any Registration Statement, (ii) promptly after the same is prepared and filed
with the SEC, one copy of any Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits and (iii) upon the
effectiveness of any Registration Statement, one copy of the prospectus
included in such Registration Statement and all amendments and supplements
thereto.

               d. The Company shall furnish to each Investor whose Registrable
Securities are included in any Registration Statement, without charge,
(i) promptly after the same is prepared and filed with the SEC, at least
one copy of such Registration Statement and any amendment(s) thereto, including
financial statements and schedules, all documents incorporated therein by
reference and all exhibits, (ii) upon the effectiveness of any Registration
Statement, ten (10) copies of the prospectus included in such Registration
Statement and all amendments and supplements thereto (or such other number of
copies as such Investor may reasonably request) and (iii) such other documents,
including copies of any preliminary or final prospectus, as such Investor may
reasonably request from time to time in order to facilitate the disposition of
the Registrable Securities owned by such Investor.

               e. The Company shall use reasonable efforts to (i) register and
qualify the Registrable Securities covered by a Registration Statement under
such other securities or "blue sky" laws of such jurisdictions in the United
States as Legal Counsel or any Investor reasonably requests, (ii) prepare and
file in those jurisdictions, such amendments (including post-effective
amendments) and supplements to such registrations and qualifications as may be
necessary to maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such
registrations and qualifications in effect at all times during the Registration
Period, and (iv) take all other actions reasonably necessary or advisable to
qualify the Registrable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or as a
condition thereto to (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(e),
(y) subject itself to general taxation in any such jurisdiction, or (z) file a
general consent to service of process in any such jurisdiction.
The Company shall

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promptly notify Legal Counsel and each Investor who holds Registrable
Securities of the receipt by the Company of any notification with respect to
the suspension of the registration or qualification of any of the Registrable
Securities for sale under the securities or "blue sky" laws of any jurisdiction
in the United States or its receipt of actual notice of the initiation or
threatening of any proceeding for such purpose.

               f. In the event Investors who hold a majority of the Registrable
Securities being offered in the offering select underwriters for the offering,
the Company shall enter into and perform its obligations under an underwriting
agreement, in usual and customary form, including, without limitation,\
customary indemnification and contribution obligations, with the underwriters
of such offering.

               g. As promptly as practicable after becoming aware of such event,
the Company shall notify Legal Counsel and each Investor in writing of the
happening of any event as a result of which the prospectus included in a
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and promptly prepare a supplement or
amendment to such Registration Statement to correct such untrue statement or
omission, and deliver ten (10) copies of such supplement or amendment to Legal
Counsel and each Investor (or such other number of copies as Legal Counsel or
such Investor may reasonably request). The Company shall also promptly notify
Legal Counsel and each Investor in writing (i) when a prospectus or any
prospectus supplement or post-effective amendment has been filed, and when a
Registration Statement or any post-effective amendment has become effective
(notification of such effectiveness shall be delivered to Legal Counsel and each
Investor by facsimile on the same day of such effectiveness and by overnight
mail), (ii) of any request by the SEC for amendments or supplements to a
Registration Statement or related prospectus or related information, and (iii)
of the Company's reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate.

               h. The Company shall use its best efforts to prevent the issuance
of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable
Securities for sale in any jurisdiction and, if such an order or suspension is
issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment and to notify Legal Counsel and each Investor who holds
Registrable Securities being sold (and, in the event of an underwritten
offering, the managing underwriters) of the issuance of such order and the
resolution thereof or its receipt of actual notice of the initiation or threat
of any proceeding for such purpose.

               i. At the request of any Investor, the Company shall furnish to
such Investor, on the date of the effectiveness of the Registration Statement
and thereafter from time to time on such dates as an Investor may reasonably
request (i) if required by an underwriter, a letter, dated such date, from the
Company's independent certified public accountants in form and substance as is
customarily given by independent certified public accountants to underwriters
in an underwritten public offering, addressed to the underwriters, and (ii) an
opinion, dated as of such date, of counsel representing the Company for
purposes of such Registration State-

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ment, in form, scope and substance as is customarily given in an underwritten
public offering, addressed to the underwriters and the Investors.

               j. The Company shall make available for inspection by (i) any
Investor, (ii) Legal Counsel, (iii) any underwriter participating in any
disposition pursuant to a Registration Statement, (iv) one firm of accountants
or other agents retained by the Investors, and (v) one firm of attorneys
retained by such underwriters (collectively, the "INSPECTORS") all pertinent
financial and other records, and pertinent corporate documents and properties of
the Company (collectively, the "RECORDS"), as shall be reasonably deemed
necessary by each Inspector, and cause the Company's officers, directors and
employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall hold in strict confidence and shall
not make any disclosure (except to an Investor) or use of any Record or other
information which the Company determines in good faith to be confidential, and
of which determination the Inspectors are so notified, unless (a) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in
any Registration Statement or is otherwise required under the 1933 Act, (b) the
release of such Records is ordered pursuant to a final, non-appealable subpoena
or order from a court or government body of competent jurisdiction, or (c) the
information in such Records has been made generally available to the public
other than by disclosure in violation of this or any other agreement of which
the Inspector has knowledge. Each Investor agrees that it shall, upon learning
that disclosure of such Records is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt notice to the
Company and allow the Company, at its expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, the Records
deemed confidential.

               k. The Company shall hold in confidence and not make any
disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent
jurisdiction, or (iv) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other
agreement. The Company agrees that it shall, upon learning that disclosure of
such information concerning an Investor is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
written notice to such Investor and allow such Investor, at the Investor's
expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

               l. The Company shall use its best efforts either to (i) cause all
the Registrable Securities covered by a Registration Statement to be listed on
each securities exchange on which securities of the same class or series issued
by the Company are then listed, if any, if the listing of such Registrable
Securities is then permitted under the rules of such exchange, or (ii) secure
designation and quotation of all the Registrable Securities covered by the
Registration Statement on the Nasdaq National Market System or, if, despite the
Company's best efforts to satisfy the preceding clause (i) or (ii), the Company
is unsuccessful in satisfying the preceding clause (i) or (ii), to secure the
inclusion for quotation on The Nasdaq SmallCap Market for such Registrable
Securities and, without limiting the generality of the foregoing, to arrange
for

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at least two market makers to register with the National Association
of Securities Dealers, Inc. ("NASD") as such with respect to such Registrable
Securities. The Company shall pay all fees and expenses in connection with
satisfying its obligation under this Section 3(l).

               m. [Reserved.]

               n. The Company shall provide a transfer agent and registrar of
all such Registrable Securities not later than the effective date of such
Registration Statement.

               o. If requested by the managing underwriters or an Investor, the
Company shall (i) immediately incorporate in a prospectus supplement or
post-effective amendment such information as the managing underwriters and the
Investors agree should be included therein relating to the sale and
distribution of Registrable Securities, including, without limitation,
information with respect to the number of Registrable Securities being sold to
such underwriters, the purchase price being paid therefor by such underwriters
and any other terms of the underwritten (or best efforts underwritten) offering
of the Registrable Securities to be sold in such offering; (ii) make all
required filings of such prospectus supplement or post-effective amendment as
soon as notified of the matters to be incorporated in such prospectus supplement
or post-effective amendment; and (iii) supplement or make amendments to any
Registration Statement if requested by a shareholder or any underwriter of such
Registrable Securities.

               p. The Company shall use its best efforts to cause the
Registrable Securities covered by the applicable Registration Statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to consummate the disposition of such Registrable
Securities.

               q. [Reserved.]

               r. The Company shall otherwise use its best efforts to comply
with all applicable rules and regulations of the SEC in connection with any
registration hereunder and the Company shall use its best efforts to file with
the SEC in a timely manner all reports and documents required of the Company
under the 1933 Act and the 1934 Act (as defined in Section 6(a)).

               s. Within two (2) business days after the Registration
Statement which includes the Registrable Securities is ordered effective by the
SEC, the Company shall deliver, and shall cause legal counsel for the Company to
deliver, to the transfer agent for such Registrable Securities (with copies to
the Investors whose Registrable Securities are included in such Registration
Statement) confirmation that the Registration Statement has been declared
effective by the SEC in the form attached hereto as EXHIBIT A.

               t. [Reserved.]

               u. The Company shall take all other reasonable actions
necessary to expedite and facilitate disposition by the Investors of Registrable
Securities pursuant to a Registration Statement.

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               v. Notwithstanding anything to the contrary contained in this
Agreement,  the  Registration  Statement shall register only the Registrable
Securities.

         4.    OBLIGATIONS OF THE INVESTORS.

               a.   At least seven (7) days prior to the first
anticipated filing date of the Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such
Investor if such Investor elects to have any of such Investor's Registrable
Securities included in such Registration Statement. It shall be a condition
precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a
particular Investor that such Investor shall furnish to the Company such
information regarding itself and the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the
Company may reasonably request.

               b.   Each Investor by such Investor's acceptance of the
Registrable Securities agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any
Registration Statement hereunder, unless such Investor has notified the Company
in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from such Registration Statement.

               c.   In the event any Investor elects to participate in
an underwritten public offering pursuant to Section 2, each such Investor agrees
to enter into and perform such Investor's obligations under an underwriting
agreement, in usual and customary form, including, without limitation, customary
indemnification and contribution obligations, with the managing underwriter of
such offering and take such other actions as are reasonably required in order to
expedite or facilitate the disposition of the Registrable Securities.

         5.    EXPENSES OF REGISTRATION.

               All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees and disbursements of counsel for the Company and fees and disbursements of
Legal Counsel, shall be paid by the Company.

         6.    INDEMNIFICATION.

               In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

               a.   To the fullest extent permitted by law, the Company
will, and hereby does, indemnify, hold harmless and defend each Investor who
holds such Registrable Securities, the directors, officers, partners, employees,
agents, representatives of, and each Person, if any, who controls any Investor
within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as
amended (the "1934 ACT"), and any underwriter (as defined in the

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1933 Act) for the Investors, and the directors and officers of, and each
Person, if any, who controls, any such underwriter within the meaning of the
1933 Act or the 1934 Act (each, an "INDEMNIFIED PERSON"), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs,
attorneys' fees, amounts paid in settlement or expenses, joint or several,
(collectively, "INDEMNIFIED DAMAGES") incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto ("CLAIMS"), to
which any of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon: (i) any untrue statement or alleged untrue statement of a
material fact in a Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification of the
offering under the securities or other "blue sky" laws of any jurisdiction in
which Registrable Securities are offered ("BLUE SKY FILING"), or the omission
or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, (ii) any untrue
statement or alleged untrue statement of a material fact contained in any
preliminary prospectus if used prior to the effective date of such Registration
Statement, or contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC)
or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading, (iii) any
violation or alleged violation by the Company of the 1933 Act, the 1934 Act,
any other law, including, without limitation, any state securities law, or any
rule or regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement or (iv) any material violation
of this Agreement (the matters in the foregoing clauses (i) through (iv) being,
collectively, "VIOLATIONS"). The Company shall reimburse the Investors and each
such underwriter or controlling person, promptly as such expenses are incurred
and are due and payable, for any legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a): (i) shall not apply to a Claim by an
Indemnified Person arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information furnished in writing to the
Company by such Indemnified Person or underwriter for such Indemnified Person
expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto, if such
prospectus was timely made available by the Company pursuant to Section 3(d);
(ii) with respect to any preliminary prospectus, shall not inure to the benefit
of any such person from whom the person asserting any such Claim purchased the
Registrable Securities that are the subject thereof (or to the benefit of any
person controlling such person) if the untrue statement or omission of material
fact contained in the preliminary prospectus was corrected in the prospectus,
as then amended or supplemented, if such prospectus was timely made available
by the Company pursuant to Section 3(d), and the Indemnified Person was
promptly advised in writing not to use the incorrect prospectus prior to the
use giving rise to a violation and such Indemnified Person, notwithstanding
such advice, used it; (iii) shall not be available to the extent such Claim is
based on a failure of the Investor to deliver or to cause to be delivered the
prospectus made available by the Company, if such prospectus was timely made
available by the Company pursuant to Section 3(d); and (iv) shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without
the prior written

                                       10
<PAGE>

consent of the Company, which consent shall not be unreasonably withheld.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investors pursuant to
Section 10.

               b.   In connection with any Registration Statement in
which an Investor is participating, each such Investor agrees to severally and
not jointly indemnify, hold harmless and defend, to the same extent and in the
same manner as is set forth in Section 6(a), the Company, each of its directors,
each of its officers who signs the Registration Statement, each Person, if any,
who controls the Company within the meaning of the 1933 Act or the 1934 Act
(collectively and together with an Indemnified Person, an "INDEMNIFIED PARTY"),
against any Claim or Indemnified Damages to which any Indemnified Party may
become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such
Claim or Indemnified Damages arise out of or are based upon any Violation, in
each case to the extent, and only to the extent, that such Violation occurs in
reliance upon and in conformity with written information furnished to the
Company by such Investor expressly for use in connection with such Registration
Statement; and, subject to Section 6(d), such Investor will reimburse any legal
or other expenses reasonably incurred by them in connection with investigating
or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution
contained in Section 7 shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of such
Investor, which consent shall not be unreasonably withheld; provided, further,
however, that the Investor shall be liable under this Section 6(b) for only that
amount of a Claim or Indemnified Damages as does not exceed the net proceeds to
such Investor as a result of the sale of Registrable Securities pursuant to such
Registration Statement. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the transfer of the Registrable Securities by the Investors
pursuant to Section 10. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(b) with
respect to any preliminary prospectus shall not inure to the benefit of any
Indemnified Party if the untrue statement or omission of material fact contained
in the preliminary prospectus was corrected on a timely basis in the prospectus,
as then amended or supplemented.

               c.   The Company shall be entitled to receive indemnities from
underwriters, selling brokers, dealer managers and similar securities industry
professionals participating in any distribution, to the same extent as provided
above, with respect to information such persons so furnished in writing
expressly for inclusion in the Registration Statement.

              d.    Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving
a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party under this Section
6, deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be; provided,

                                       11
<PAGE>

however, that an Indemnified Person or Indemnified Party shall have the right
to retain its own counsel with the fees and expenses to be paid by the
indemnifying party, if, in the reasonable opinion of counsel retained by the
indemnifying party, the representation by such counsel of the Indemnified
Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person
or Indemnified Party and any other party represented by such counsel in such
proceeding. The Company shall pay reasonable fees for only one separate legal
counsel for the Investors, and such legal counsel shall be selected by the
Investors holding a majority in interest of the Registrable Securities included
in the Registration Statement to which the Claim relates. The Indemnified Party
or Indemnified Person shall cooperate fully with the indemnifying party in
connection with any negotiation or defense of any such action or claim by the
indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or claim. The indemnifying party shall keep the
Indemnified Party or Indemnified Person fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto.
No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its written consent, provided, however, that the
indemnifying party shall not unreasonably withhold, delay or condition its
consent. No indemnifying party shall, without the consent of the Indemnified
Party or Indemnified Person, consent to entry of any judgment or enter into
any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
or Indemnified Person of a release from all liability in respect to such claim
or litigation. Following indemnification as provided for hereunder, the
indemnifying party shall be subrogated to all rights of the Indemnified Party
or Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action shall not relieve such indemnifying party
of any liability to the Indemnified Person or Indemnified Party under this
Section 6, except to the extent that the indemnifying party is prejudiced in
its ability to defend such action.

              e.    The indemnification required by this Section 6 shall be
made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified
Damages are incurred.

              f.    The indemnity agreements contained herein shall be
in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

         7.    CONTRIBUTION.

               To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable Securities guilty of fraudulent misrep-

                                       12
<PAGE>

resentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any seller of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (ii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities.

         8.    REPORTS UNDER THE 1934 ACT.

               With a view to making available to the Investors the benefits
of Rule 144 promulgated under the 1933 Act or any other similar rule or
regulation of the SEC that may at any time permit the Investors to sell
securities of the Company to the public without registration ("RULE 144"), the
Company agrees to:

               a.   make and keep public information available, as those terms
are understood and defined in Rule 144;

               b.   file with the SEC in a timely manner all reports
and other documents required of the Company under the 1933 Act and the 1934 Act
so long as the Company remains subject to such requirements (it being understood
that nothing herein shall limit the Company's obligations under Section 4(c) of
the Securities Purchase Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

               c.   furnish to each Investor so long as such Investor
owns Registrable Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144,
the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested to
permit the investors to sell such securities pursuant to Rule 144 without
registration.

         9.    RESERVED.

         10.   ASSIGNMENT OF REGISTRATION RIGHTS.

               The rights under this Agreement shall be automatically
assignable by the Investors to any transferee of all or any portion of
Registrable Securities if: (i) the Investor agrees in writing with the
transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such assignment; (ii)
the Company is, within a reasonable time after such transfer or assignment,
furnished with written notice of (a) the name and address of such transferee or
assignee, and (b) the securities with respect to which such registration rights
are being transferred or assigned; (iii) immediately following such transfer or
assignment the further disposition of such securities by the transferee or
assignee is restricted under the 1933 Act and applicable state securities laws;
provided, however, that the transferee or assignee may subsequently transfer or
assign all or any portion of the Registrable Securities if an exemption from
registration under the 1933 Act is applicable to such transfer or assignment;
(iv) at or before the time the Company receives the written notice contemplated
by clause (ii) of this sentence the transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein; and (v)
such transfer shall have been made in accordance with the applicable
requirements of the Securities Purchase Agreement.

                                       13
<PAGE>

         11.   AMENDMENT OF REGISTRATION RIGHTS.

               Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and Investors who then hold two-thirds (2/3) of the Registrable Securities. Any
amendment or waiver effected in accordance with this Section 11 shall be binding
upon each Investor and the Company. No such amendment shall be effective to the
extent that it applies to less than all of the holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of this Agreement
unless the same consideration also is offered to all of the parties to this
Agreement.

         12.   MISCELLANEOUS.

               a.   A Person is deemed to be a holder of Registrable
Securities whenever such Person owns or is deemed to own of record such
Registrable Securities. If the Company receives conflicting instructions,
notices or elections from two or more Persons with respect to the same
Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from the registered owner of such Registrable
Securities.

               b.   Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one business day
after deposit with a nationally recognized overnight delivery service, in each
case properly addressed to the party to receive the same. The addresses and
facsimile numbers for such communications shall be:

               If to the Company:

                     e-Net Financial.com Corporation
                     3200 Bristol Street, Suite 700
                     Costa Mesa, California 92626
                     Telephone: (714) 557-2222
                     Facsimile: (714) 557-2204
                     Attention:  President

                With a copy to:
                     (which shall not constitute notice)

                     Bryan Cave LLP
                     18881 Von Karman, Suite 1500
                     Irvine, California 92612
                     Telephone: (949) 223-7000
                     Facsimile: (949) 223-7100
                     Attention:  Randolf W. Katz, Esq.

                                       14
<PAGE>

If to a Buyer, to it at the address and facsimile number set forth on the
Schedule of Buyers attached hereto, with copies to such Buyer's representatives
as set forth on the Schedule of Buyers, or at such other address and/or
facsimile number and/or to the attention of such other person as the recipient
party has specified by written notice given to each other party five days prior
to the effectiveness of such change.

               c.   Failure of any party to exercise any right or
remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

               d.   This Agreement shall be governed by and construed
in all respects by the internal laws of the State of California (except for the
proper application of the United States federal securities laws), without giving
effect to any choice of law or conflict of law provision or rule (whether of the
State of California or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of California. Each party
hereby irrevocably submits to the non-exclusive jurisdiction of the state and
federal courts sitting the City of Chicago, for the adjudication of any dispute
hereunder. If any provision of this Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction.

               e.   This Agreement, the Securities Purchase Agreement,
the Certificate of Designations and the Warrants constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. This Agreement, the
Securities Purchase Agreement, and the Warrants supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter
hereof and thereof.

               f.   Subject to the requirements of Section 10, this
Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of each of the parties hereto.

               g.   The  headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

               h.   This Agreement may be executed in identical
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. This Agreement, once executed by a party,
may be delivered to the other party hereto by facsimile transmission of a copy
of this Agreement bearing the signature of the party so delivering this
Agreement.

               i.   Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry

                                       15
<PAGE>

out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

               j.   All consents and other determinations to be made by
the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by Investors holding a majority of the Registrable
Securities, determined as if all of the Warrants then outstanding have been
converted into Registrable Securities.

               k.   The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent and no
rules of strict construction will be applied against any party.

               l.   This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not
for the benefit of, nor may any provision hereof be enforced by, any other
Person.

         IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of day and year first above written.

COMPANY:                                        BUYERS:

E-NET FINANCIAL.COM CORPORATION                 JUPITER UNIT TRUST MANAGERS
                                                LIMITED, as discretionary
                                                investment manager of the
                                                Jupiter European Special
                                                Situations Fund

By:                                             By:
     --------------------------------------        ----------------------------
     James Shipley, Chief Executive Officer
                                                                     , Director
                                                   ------------------

                                       16
<PAGE>

                               SCHEDULE OF BUYERS

                                                             Investor's Address
         Investor's Name                                   and Facsimile Number
-------------------------------------         ----------------------------------
RBSTB Nominees Limited (A/C 7019), as                      67, Lombard Street
trustee of the Jupiter European Special Situations Fund         London EC3P 3DL
                                                               England

with a copy to:

Jupiter Unit Trust Managers Limited
1, Grosvenor Place
London SW1X 7JJ
Attention:  Richard P. Pease

Fax:  011-44-20-7412-0705

<PAGE>

                                    EXHIBIT A
                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn:
     ----------------------

            Re: E-NET FINANCIAL.COM CORPORATION

Ladies and Gentlemen:

            We are counsel to e-Net Financial.com Corporation, a Nevada
corporation (the "COMPANY"), and have represented the Company in connection with
that certain Securities Purchase Agreement (the "PURCHASE AGREEMENT") entered
into by and among the Company and the buyers named therein (collectively, the
"HOLDERS") pursuant to which the Company issued to the Holders shares of its
common stock, par value $ 0.001 per share (the "COMMON SHARES") and Warrants
exercisable into its Common Stock (the "WARRANT SHARES"). Pursuant to the
Purchase Agreement, the Company also has entered into a Registration Rights
Agreement with the Holders (the "REGISTRATION RIGHTS AGREEMENT") pursuant to
which the Company agreed, among other things, to register the Registrable
Securities (as defined in the Registration Rights Agreement), consisting of the
Common Shares and the Warrant Shares, under the Securities Act of 1933, as
amended (the "1933 ACT"). In connection with the Company's obligations under the
Registration Rights Agreement, on _________, 2000, the Company filed a
Registration Statement on Form [S-1] (File No. _____________) (the "REGISTRATION
STATEMENT") with the Securities and Exchange Commission (the "SEC") relating to
the Registrable Securities which names each of the Holders as a selling
stockholder thereunder.

            In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                      Very truly yours,

                                      [ISSUER'S COUNSEL]

                                      By:
                                           -----------------------------------

cc:  [LIST NAMES OF HOLDERS]<PAGE>   1

                                                                     EXHIBIT 4.7
                                  HOTRAIL, INC.

                                2000 EQUITY PLAN
                 (Plan Pursuant to Section 25102(f) & Rule 504)

                            As Adopted April 19, 2000

         1. PURPOSE. The purpose of this Plan is to provide incentives to
attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company's
future performance through awards of Options, Warrants, Restricted Stock and
Stock Bonuses. Capitalized terms not defined in the text are defined in Section
24.

         2. SHARES SUBJECT TO THE PLAN.

            2.1 Number of Shares Available. Subject to Sections 2.2 and 19, the
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be 750,000 Shares. Subject to Sections 2.2 and 19, Shares will
again be available for grant and issuance in connection with future Awards under
this Plan that: (a) are subject to issuance upon exercise of an Option but cease
to be subject to such Option for any reason other than exercise of such Option,
(b) are subject to an Award granted hereunder but are forfeited or are
repurchased by the Company as set forth herein, or (c) are subject to an Award
that otherwise terminates without Shares being issued. At all times the Company
will reserve and keep available a sufficient number of Shares as will be
required to satisfy the requirements of all outstanding Options granted under
this Plan and all other outstanding but unvested Awards granted under this Plan.

            2.2 Adjustment of Shares. In the event that the number of
outstanding shares of the Company's Common Stock is changed by a stock dividend,
recapitalization, stock split, reverse stock split, subdivision, combination,
reclassification or similar change in the capital structure of the Company
without consideration, then (a) the number of Shares reserved for issuance under
this Plan, (b) the Exercise Prices of, and number of Shares subject to,
outstanding Options and Warrants, and (c) the Purchase Price of, and number of
Shares subject to, other outstanding Awards will be proportionately adjusted,
subject to any required action by the Board or the shareholders of the Company
and compliance with applicable securities laws; provided, however, that
fractions of a Share will not be issued but will either be paid in cash at Fair
Market Value of such fraction of a Share or will be rounded down to the nearest
whole Share, as determined by the Committee.

         3. ELIGIBILITY. Options may be granted only to Service Providers. ISOs
(as defined in Section 5 below) may be granted only to employees (including
officers and directors who are also employees) of the Company or of a Parent or
Subsidiary of the Company. All other Awards may be granted to Service Providers,
Strategic Partners and Strategic Partner Affiliates. No person will be eligible
to receive more than 400,000 Shares (as such number may be adjusted for stock
splits, stock dividends and the like) in any calendar year under this Plan
pursuant to the grant of Options or Warrants hereunder, other than a new
employee of the Company or of a Parent or Subsidiary of the Company (including a
new employee who is also an officer and/or director of the Company or any Parent
or Subsidiary of the Company), each of whom is eligible to receive up to a
maximum of 500,000 Shares (as such number may be adjusted for stock splits,
stock dividends and the like) in the calendar year in which such employee
commences his or her employment. A person or entity may be granted more than one
Award under this Plan.

<PAGE>   2

         4. ADMINISTRATION.

            4.1 Committee Authority. This Plan will be administered by the
Committee or the Board acting as the Committee. Subject to the general purposes,
terms and conditions of this Plan, and to the direction of the Board, the
Committee will have full power to implement and carry out this Plan. Without
limitation, the Committee will have the authority to:

                (a) construe and interpret this Plan, any Award Agreement and
         any other agreement or document executed pursuant to this Plan;

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

                (c) select persons to receive Awards;

                (d) determine the form and terms of Awards;

                (e) determine the number of Shares or other consideration
         subject to Awards;

                (f) determine whether Awards will be granted singly, in
         combination with, in tandem with, in replacement of, or as alternatives
         to, other Awards under this Plan or any other incentive or compensation
         plan of the Company or any Parent or Subsidiary of the Company;

                (g) grant waivers of Plan or Award conditions;

                (h) determine the vesting, exercisability and payment of Awards;

                (i) correct any defect, supply any omission, or reconcile any
         inconsistency in this Plan, any Award or any Award Agreement;

                (j) determine whether an Award has been earned; and

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

            4.2 Committee Discretion. Any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, and subject to Section 5.9, at any later time, and such determination
will be final and binding on the Company and on all persons having an interest
in any Award under this Plan. The Committee may delegate to one or more officers
of the Company the authority to grant an Award under this Plan to Participants
who are not Insiders of the Company.

         5. OPTIONS. The Committee may grant Options to any Service Provider and
the Committee will determine whether such Options will be Incentive Stock
Options within the meaning of the Code ("ISOS") or Nonqualified Stock Options
("NQSOS"), the number of Shares subject to the Option, the Exercise Price of the
Option, the period during which the Option may be exercised, and all other terms
and conditions of the Option, subject to the following.

            5.1 Form of Option Grant. Each Option granted under this Plan will
be evidenced by an Award Agreement which will expressly identify the Option as
an ISO or an NQSO ("STOCK OPTION AGREEMENT"), and will be in such form and
contain such provisions (which need not be the same for each Participant) as the
Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan.

            5.2 Date of Grant. The date of grant of an Option will be the date
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

            5.3 Exercise Period. Options may be exercisable immediately (whether
or not subject to repurchase pursuant to Section 13 of this Plan) or may be
exercisable within the times or upon the events determined by the Committee as
set forth in the Stock Option Agreement governing such Option; provided,
however, that no Option will be exercisable after the expiration of ten years
from the date the Option is granted; and provided further that no ISO granted to
a person who directly or by attribution owns more than 10% of the total combined
voting power of all classes of stock of the Company or of any Parent or
Subsidiary of the Company ("TEN PERCENT SHAREHOLDER") will be exercisable after
the expiration of five years from the date the ISO is granted. The Committee
also may provide for Options to become exercisable at one time or from time to
time, periodically or otherwise, in such number of Shares or percentage of
Shares as the Committee determines.

                                       2

<PAGE>   3

            5.4 Exercise Price. The Exercise Price of an Option will be
determined by the Committee when the Option is granted and may not be less than
85% of the Fair Market Value of the Shares on the date of grant; provided that
(a) the Exercise Price of an ISO will not be less than 100% of the Fair Market
Value of the Shares on the date of grant and (b) the Exercise Price of any ISO
granted to a Ten Percent Shareholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant. Payment for the Shares
purchased must be made in accordance with Section 9 of this Plan.

            5.5 Method of Exercise. Options may be exercised only by delivery to
the Company of a written stock option exercise agreement (the "EXERCISE
AGREEMENT") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price, and any applicable taxes, for the
number of Shares being purchased.

            5.6 Termination. Subject to earlier termination pursuant to Sections
19 and 20 and notwithstanding the exercise periods set forth in the Stock Option
Agreement, exercise of an Option will always be subject to the following:

                (a) If the Participant is Terminated for any reason except
         death, Disability or for Cause, then the Participant may exercise such
         Participant's Options only to the extent that such Options are
         exercisable upon the Termination Date no later than three months after
         the Termination Date (or such shorter time period, not less than 30
         days, as may be specified in the Stock Option Agreement) or such longer
         time period not exceeding five years after the Termination Date as may
         be determined by the Committee, with any exercise beyond three months
         after the Termination Date deemed to be an NQSO, but in any event, no
         later than the expiration date of the Options.

                (b) If the Participant is Terminated because of Participant's
         death or Disability (or the Participant dies within three months after
         a Termination other than because of Participant's Disability or Cause),
         then Participant's Options may be exercised only to the extent that
         such Options are exercisable by Participant on the Termination Date and
         must be exercised by Participant (or Participant's legal representative
         or authorized assignee) no later than twelve months after the
         Termination Date (or such shorter time period, not less than six
         months, or longer time period not exceeding five years after the
         Termination Date, as may be determined by the Committee and specified
         in the Stock Option Agreement), with any exercise beyond (a) three
         months after the Termination Date when the Termination is for any
         reason other than the Participant's death or disability, within the
         meaning of Section 22(e)(3) of the Code, or (b) 12 months after the
         Termination Date when the Termination is for Participant's death or
         disability, within the meaning of Section 22(e)(3) of the Code, deemed
         to be an NQSO, but in any event no later than the expiration date of
         the Options.

                (c) If the Participant is terminated for Cause, then
         Participant's Options shall expire on such Participant's Termination
         Date, or at such later time and on such conditions as are determined by
         the Committee.

            5.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent Participant from exercising
the Option for the full number of Shares for which it is then exercisable.

            5.8 Limitations on ISOs. The aggregate Fair Market Value (determined
as of the date of grant) of Shares with respect to which ISOs are exercisable
for the first time by a Participant during any calendar year (under this Plan or
under any other incentive stock option plan of the Company or any Parent or
Subsidiary of the Company) will not exceed $100,000. If the Fair Market Value of
Shares on the date of grant with respect to which ISOs are exercisable for the
first time by a Participant during any calendar year exceeds $100,000, then the
Options for the first $100,000 worth of Shares to become exercisable in such
calendar year

                                       3

<PAGE>   4

will be ISOs and the Options for the amount in excess of $100,000 that become
exercisable in that calendar year will be NQSOs. In the event that the Code or
the regulations promulgated thereunder are amended after the Effective Date (as
defined in Section 19 below) to provide for a different limit on the Fair Market
Value of Shares permitted to be subject to ISOs, then such different limit will
be automatically incorporated herein and will apply to any Options granted after
the effective date of such amendment.

            5.9 Modification, Extension or Renewal. The Committee may modify,
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

            5.10 No Disqualification. Notwithstanding any other provision in
this Plan, no term of this Plan relating to ISOs will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

         6. WARRANTS. The Committee may grant Warrants to any Service Provider,
Strategic Partner or Strategic Partner Affiliate and the Committee will
determine the number of Shares subject to the Warrant, the Exercise Price of the
Warrant, the period during which the Warrant may be exercised, and all other
terms and conditions of the Warrant, subject to the following.

            6.1 Form of Warrant. Each Warrant granted under this Plan will be
evidenced by an Award Agreement ("WARRANT AGREEMENT"), and will be in such form
and contain such provisions (which need not be the same for each Participant) as
the Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan. The Warrant Agreement will
contain the restrictions imposed on the Shares purchased under such Agreement,
if any, and such representations and agreements regarding Participant's
investment intent and access to information and other matters, if any, as may be
required or desirable by the Company to comply with applicable securities laws.

            6.2 Date of Grant. The date of grant of an Warrant will be the date
on which the Committee makes the determination to issue such Warrant, unless
otherwise specified by the Committee. The Warrant Agreement and a copy of this
Plan will be delivered to the Participant within a reasonable time after the
granting of the Warrant.

            6.3 Exercise Period. Warrants may be exercisable immediately
(whether or not subject to repurchase pursuant to Section 13 of this Plan) or
may be exercisable within the times or upon the events determined by the
Committee as set forth in the Warrant Agreement governing such Option; provided,
however, that no Warrant will be exercisable after the expiration of ten years
from the date the Warrant is granted. The Committee also may provide for
Warrants to become exercisable at one time or from time to time, periodically or
otherwise, in such number of Shares or percentage of Shares as the Committee
determines. Subject to earlier termination of the Warrant as provided in this
Plan, each Participant who is not an officer, director or consultant of the
Company or of a Parent or Subsidiary of the Company shall have the right to
exercise any Warrant granted hereunder at the rate of at least 20% per year over
five years from the date such Warrant is granted.

            6.4 Exercise Price. The Exercise Price of a Warrant will be
determined by the Committee when the Warrant is granted and may not be less than
100% of the Fair Market Value of the Shares on the date of grant. Payment for
the Shares purchased upon exercise of the Warrant must be made in accordance
with Section 9 of this Plan and may be issued subject to net exercise provisions
as permitted by Section 16 below.

                                       4

<PAGE>   5

            6.5 Method of Exercise. Warrants may be exercised only by delivery
to the Company of the original Warrant Agreement, stating on the warrant
exercise form attached thereto the number of Shares being purchased and such
representations and agreements regarding Participant's investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable securities laws, together with payment
in full of the Exercise Price, and any applicable taxes, for the number of
Shares being purchased.

            6.6 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of a Warrant,
provided that such minimum number will not prevent Participant from exercising
the Warrant for the full number of Shares for which it is then exercisable.

            6.7 Modification, Extension or Renewal. The Committee may modify,
extend or renew outstanding Warrants and authorize the grant of new Warrants in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Warrant previously granted. The Committee may reduce the Exercise Price of
outstanding Warrants without the consent of Participants affected by a written
notice to them; provided, however, that the Exercise Price may not be reduced
below the minimum Exercise Price that would be permitted under Section 6.4 of
this Plan for Warrants granted on the date the action is taken to reduce the
Exercise Price.

         7. RESTRICTED STOCK. A Restricted Stock Award is an offer by the
Company to sell Shares that are subject to restrictions to any Service Provider,
Strategic Partner or Strategic Partner Affiliate. The Committee will determine
to whom an offer will be made, the number of Shares the person or entity may
purchase, the Purchase Price, the restrictions to which the Shares will be
subject, if any, and all other terms and conditions of the Restricted Stock
Award, subject to the following.

            7.1 Form of Restricted Stock Award. All purchases under a Restricted
Stock Award made pursuant to this Plan will be evidenced by an Award Agreement
("RESTRICTED STOCK PURCHASE AGREEMENT") that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this
Plan. The Restricted Stock Award will be accepted by the Participant's execution
and delivery of the Restricted Stock Purchase Agreement and full payment for the
Shares to the Company within 30 days from the date the Restricted Stock Purchase
Agreement is delivered to the person or entity. If such person or entity does
not execute and deliver the Restricted Stock Purchase Agreement along with full
payment for the Shares to the Company within such 30 days, then the offer will
terminate, unless otherwise determined by the Committee.

            7.2 Purchase Price. The Purchase Price of Shares sold pursuant to a
Restricted Stock Award will be determined by the Committee and will be at least
100% of the Fair Market Value of the Shares on the date the Restricted Stock
Award is granted or at the time the purchase is consummated. Payment of the
Purchase Price may be made in accordance with Section 9 of this Plan.

            7.3 Restrictions. Restricted Stock Awards may be subject to the
restrictions set forth in Section 13 of this Plan or such other restrictions (if
any) as the Committee may impose.

         8. STOCK BONUSES.

            8.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares
(which may consist of Restricted Stock) to any Service Provider, Strategic
Partner or Strategic Partner Affiliate for past services already rendered to the
Company or any Parent or Subsidiary of the Company or to a Strategic Partner or
Strategic Partner Affiliate in consideration for entering into and/or performing
any contract to provide goods, property or rights to the Company or any Parent
or Subsidiary of the Company. A Stock Bonus shall be awarded pursuant to an
Award Agreement (the "STOCK BONUS AGREEMENT") that will be in such form (which
need not be the same for each Participant) as the Committee will from time to
time approve, and will comply with and be subject to the terms and conditions of
this Plan. A Stock Bonus may be awarded upon satisfaction of such performance
goals as are set out in advance in the Participant's individual Award Agreement
(the "PERFORMANCE STOCK BONUS AGREEMENT") that will be in such form (which need
not be the same for each

                                       5

<PAGE>   6

Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual performance factors or upon such other criteria as the Committee may
determine; provided, however, that performance-based bonuses shall be restricted
to individuals earning at least 60,000 per year and of adequate sophistication
and sufficiently empowered to achieve the performance goals.

            8.2 Terms of Stock Bonuses. The Committee will determine the number
of Shares to be awarded to the Participant and whether such Shares will be
subject to the restrictions provided for in Section 13 below or to such other
restrictions as may be deemed appropriate by the Committee. If the Stock Bonus
is being earned upon the satisfaction of performance goals pursuant to a
Performance Stock Bonus Agreement, then the Committee will determine: (a) the
nature, length and starting date of any period during which performance is to be
measured (the "PERFORMANCE PERIOD") for each Stock Bonus; (b) the performance
goals and criteria to be used to measure the performance, if any; (c) the number
of Shares that may be awarded to the Participant; and (d) the extent to which
such Stock Bonuses have been earned. Performance Periods may overlap and
Participants may participate simultaneously with respect to Stock Bonuses that
are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with
such performance goals and criteria as may be determined by the Committee. The
Committee may adjust the performance goals applicable to the Stock Bonuses to
take into account changes in law and accounting or tax rules and to make such
adjustments as the Committee deems necessary or appropriate to reflect the
impact of extraordinary or unusual items, events or circumstances to avoid
windfalls or hardships.

            8.3 Form of Payment. The earned portion of a Stock Bonus may be paid
currently or on a deferred basis with such interest or dividend equivalent, if
any, as the Committee may determine. Payment may be made in the form of cash,
whole Shares, including Restricted Stock, or a combination thereof, either in a
lump sum payment or in installments, all as the Committee will determine.

            8.4 Termination During Performance Period. If a Participant is
Terminated during a Performance Period for any reason or, if applicable, the
business relationship between the Company and the Participant is terminated,
then such Participant will be entitled to payment (whether in Shares, cash or
otherwise) with respect to the Stock Bonus only to the extent earned as of the
date of such termination in accordance with the Performance Stock Bonus
Agreement, unless the Committee will determine otherwise.

         9. PAYMENT FOR SHARE PURCHASES.

            9.1 Payment. Payment for Shares purchased pursuant to this Plan
pursuant to Sections 5 through 7 may be made in cash (by check) or, where
expressly approved for the Participant by the Committee and where permitted by
law:

                (a) by cancellation of indebtedness of the Company to the
         Participant;

                (b) for Service Providers only, by surrender of shares that
         either: (i) have been owned by Participant for more than six (6) months
         and have been paid for within the meaning of SEC Rule 144 (and, if such
         shares were purchased from the Company by use of a promissory note,
         such note has been fully paid with respect to such shares); or (ii)
         were obtained by Participant in the public market;

                (c) for Service Providers only, by tender of a full recourse
         promissory note having such terms as may be approved by the Committee
         and bearing interest at a rate sufficient to avoid imputation of income
         under Sections 483 and 1274 of the Code; provided, however, that
         Participants who are not employees or directors of the Company will not
         be entitled to purchase Shares with a promissory note unless the note
         is adequately secured by collateral other than the Shares.

                (d) for Service Providers only, by waiver of compensation due or
         accrued to the Participant for services rendered;

                                       6

<PAGE>   7

                (e) for Service Providers only, with respect only to purchases
         upon exercise of an Option, and provided that a public market for the
         Company's stock exists:

                    (i) through a "same day sale" commitment from the
                Participant and a broker-dealer that is a member of the National
                Association of Securities Dealers (an "NASD DEALER") whereby the
                Participant irrevocably elects to exercise the Option and to
                sell a portion of the Shares so purchased to pay for the
                Exercise Price, and whereby the NASD Dealer irrevocably commits
                upon receipt of such Shares to forward the Exercise Price
                directly to the Company; or

                    (ii) through a "margin" commitment from the Participant and
                an NASD Dealer whereby the Participant irrevocably elects to
                exercise the Option and to pledge the Shares so purchased to the
                NASD Dealer in a margin account as security for a loan from the
                NASD Dealer in the amount of the Exercise Price, and whereby the
                NASD Dealer irrevocably commits upon receipt of such Shares to
                forward the Exercise Price directly to the Company; or

                (f) by any applicable combination of the foregoing.

            9.2 Loan Guarantees. The Committee may help the Participant pay for
Shares purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

        10. WITHHOLDING TAXES.

            10.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

            10.2 Stock Withholding. When, under applicable tax laws, a
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined. All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee for such elections and be in writing in a form
acceptable to the Committee.

         11. PRIVILEGES OF STOCK OWNERSHIP. No Participant will have any of the
rights of a shareholder with respect to any Shares until the Shares are issued
to the Participant. After Shares are issued to the Participant, the Participant
will be a shareholder and have all the rights of a shareholder with respect to
such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided, further, that the Participant will have no right to
retain such stock dividends or stock distributions with respect to Unvested
Shares that are repurchased pursuant to Section 13.

         12. TRANSFERABILITY. Awards, other than Warrants, granted under this
Plan, and any interest therein, will not be transferable or assignable by a
Participant otherwise than by will or by the laws of descent and distribution.
During the lifetime of any Participant who is a natural person, such an Award
will be exercisable only by the Participant or Participant's legal
representative. Any elections with respect to an Award, may be made only by a
Participant or such Participant's legal representative. No Award may be
transferred or

                                       7

<PAGE>   8

assigned to a competitor or potential competitor of the Company, nor shall be
made subject to execution, attachment or similar process, and each such
permitted transfer or assignment must be consistent with the specific Plan and
Award Agreement provisions relating thereto.

         13. RESTRICTIONS ON SHARES. At the discretion of the Committee, the
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right of first refusal to purchase all Shares that a Participant (or a
subsequent transferee) may propose to transfer to a third party, provided, that
such right of first refusal terminates upon the Company's initial public
offering of Common Stock pursuant an effective registration statement filed
under the Securities Act and/or:

             (a) with respect to a Participant who is a Service Provider, a
         right to repurchase Unvested Shares held by the Participant following
         such Participant's Termination at any time within 90 days after
         Participant's Termination Date, or in the case of securities issued
         upon exercise of an Option after the Participant's Termination Date,
         within 90 days after the date of such exercise for cash and/or
         cancellation of purchase money indebtedness, at the Participant's
         Exercise Price or Purchase Price, as the case may be; or

             (b) in the case of a Strategic Partner or Strategic Partner
         Affiliate, a right to repurchase any Shares held by the Participant
         upon such terms and conditions as are set forth in the Award Agreement.

         14. CERTIFICATES. All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed or
quoted.

         15. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates. Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral. In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve. The
Shares purchased with the promissory note may be released from the pledge on a
pro rata basis as the promissory note is paid.

         16. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or
from time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, shares of Common
Stock of the Company (including restricted stock) or other consideration, based
on such terms and conditions as the Committee and the Participant may agree.

         17. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not
be effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. Notwithstanding
any other provision in this Plan, the Company will have no obligation to issue
or deliver certificates for Shares under this Plan prior to (a) obtaining

                                       8

<PAGE>   9

any approvals from governmental agencies that the Company determines are
necessary or advisable, and/or (b) compliance with any exemption or completion
of any registration or other qualification of such Shares under any state or
federal law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the exemption, registration,
qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability
for any inability or failure to do so.

         18. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
Cause.

         19. CORPORATE TRANSACTIONS.

             19.1 Assumption or Replacement of Awards Other than Warrants. In
the event of

                  (a) a dissolution or liquidation of the Company,

                  (b) 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 shareholders of the Company or their relative
         stock holdings and the Awards granted under this Plan are assumed,
         converted or replaced by the successor corporation, which assumption,
         conversion or replacement will be binding on all Participants),

                  (c) a merger in which the Company is the surviving corporation
         but after which the shareholders of the Company immediately prior to
         such merger (other than any shareholder which merges with the Company
         in such merger, or which owns or controls another corporation which
         merges, with the Company in such merger) cease to own at least 90% of
         their shares or other equity interests in the Company,

                  (d) the sale of all or substantially all of the assets of the
         Company or

                  (e) the sale by the shareholders of the Company of at least
         90% of the outstanding shares of capital stock of the Company in one
         transaction or series of related transactions,

then, any or all outstanding Awards other than Warrants may be assumed,
converted or replaced by the successor corporation (if any), which assumption,
conversion or replacement will be binding on all Participants. In the
alternative, the successor corporation may substitute equivalent Awards or
provide substantially similar consideration to such Participants as was provided
to shareholders (after taking into account the existing provisions of the
Awards). The successor corporation may also issue, in place of outstanding
Shares of the Company held by such Participant, substantially similar shares or
other property subject to repurchase restrictions and other provisions no less
favorable to the Participant than those which applied to such outstanding Shares
immediately prior to such transaction described in this Subsection 19.1. In the
event such successor corporation (if any) refuses to assume or substitute Awards
other than Warrants, as provided above, pursuant to a transaction described in
this Subsection 19.1, then notwithstanding any other provision in this Plan to
the contrary, the vesting of such Awards will accelerate and the Awards will
vest and become exercisable as to one (1) year in addition to the amount of
vesting that would have been applicable in the absence of such accelerated
vesting, which vesting shall accelerate prior to the consummation of such
transaction at such times and on such conditions as the Committee determines,
and if such Awards are not exercised in full prior to the consummation of such
transaction, they will expire as to the unexercised portion on the occurrence of
such transaction at such time and on such conditions as the Committee will
determine.

                                       9

<PAGE>   10

             19.2 Termination or Assumption of Warrants. All Warrants shall
terminate or be assumed upon a transaction described in Section 19.1 as provided
in the Warrant Agreement.

             19.3 Other Treatment of Awards. Subject to any greater rights
granted to Participants under the foregoing provisions of this Section 19, in
the event of the occurrence of any transaction described in Section 19.1, any
outstanding Awards will be treated as provided in the applicable agreement
entered into by the Company in connection therewith or the plan of merger,
consolidation, dissolution or liquidation relating thereto.

             19.4 Assumption of Awards by the Company. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either (a) granting an Award under this Plan in substitution of
such other company's award, or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Award rather than assuming an existing award, such new Award be granted with a
similarly adjusted Exercise Price.

         20. ADOPTION AND SHAREHOLDER APPROVAL. This Plan will become effective
on the date that it is adopted by the Board (the "EFFECTIVE DATE"). This Plan
will be approved by the shareholders of the Company (excluding Shares issued
pursuant to this Plan), consistent with applicable laws, within 12 months before
or after the Effective Date. Upon the Effective Date, the Board may grant Awards
pursuant to this Plan; provided, however, that: (a) no Option or Warrant may be
exercised prior to initial shareholder approval of this Plan; (b) no Option or
Warrant granted pursuant to an increase in the number of Shares subject to this
Plan approved by the Board will be exercised prior to the time such increase has
been approved by the shareholders of the Company; (c) in the event that initial
shareholder approval of this Plan is not obtained within the time period
provided herein, all Awards granted hereunder will be canceled, any Shares
issued pursuant to any Award will be canceled and any purchase of Shares
hereunder will be rescinded; and (d) Awards granted pursuant to an increase in
the number of Shares approved by the Board which increase is not timely approved
by shareholders shall be canceled, any Shares issued pursuant to any such Award
shall be canceled and any purchases of Shares subject to any such Award shall be
rescinded.

         21. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided
herein, this Plan will terminate ten years after the Effective Date or, if
earlier, the date of Board approval. This Plan and all agreements hereunder
shall be governed by and construed in accordance with the laws of the State of
California.

         22. AMENDMENT OR TERMINATION OF PLAN. Subject to Section 5.9, the Board
may at any time terminate or amend this Plan in any respect, including without
limitation amendment of any form of Award Agreement or instrument to be executed
pursuant to this Plan; provided, however, that the Board will not, without the
approval of the shareholders of the Company, amend this Plan in any manner that
requires such shareholder approval pursuant to the Code or the regulations
promulgated thereunder as such provisions apply to ISO plans.

         23. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by
the Board, the submission of this Plan to the shareholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options, warrants and bonuses otherwise than under this Plan,
and such arrangements may be either generally applicable or applicable only in
specific cases.

                                       10

<PAGE>   11

         24. DEFINITIONS. As used in this Plan, the following terms will have
the following meanings.

         "AWARD" means any award under this Plan, including any Option, Warrant,
         Restricted Stock Award or Stock Bonus.

         "AWARD AGREEMENT" means, with respect to each Award, the signed written
         agreement between the Company and the Participant setting forth the
         terms and conditions of the Award, including but not limited to a Stock
         Option Agreement, Exercise Agreement, Warrant Agreement, Restricted
         Stock Purchase Agreement, Stock Bonus Agreement and Performance Stock
         Bonus Agreement.

         "BOARD" means the Board of Directors of the Company.

         "CAUSE" means Termination because of (a) any willful material violation
         by the Participant of any law or regulation applicable to the business
         of the Company or a Parent or Subsidiary of the Company, the
         Participant's conviction for, or guilty plea to, a felony or a crime
         involving moral turpitude, any willful perpetration by the Participant
         of a common law fraud or any unlawful use by the Participant of drugs
         or other controlled substances, (b) the Participant's commission of an
         act of personal dishonesty which involves personal profit in connection
         with the Company or any other entity having a business relationship
         with the Company, (c) any material breach by the Participant of any
         material provision of any agreement or understanding between the
         Company or any Parent or Subsidiary of the Company, and the Participant
         regarding the terms of the Participant's service as an employee,
         director, consultant, independent contractor or adviser to the Company
         or any Parent or Subsidiary of the Company, including without
         limitation, the willful and continued failure or refusal of the
         Participant to perform the material duties required of such Participant
         as an employee, director, consultant, independent contractor or adviser
         of the Company or any Parent or Subsidiary of the Company, other than
         as a result of having a Disability, or a breach of any applicable
         invention assignment and confidentiality agreement or similar agreement
         between the Company or any Parent or Subsidiary of the Company and the
         Participant, (d) Participant's intentional disregard of the policies of
         the Company so as to cause loss, damage or injury to the property,
         reputation or employees of the Company or any Parent or Subsidiary of
         the Company, or (e) any other misconduct by the Participant which is
         materially injurious to the financial condition or business reputation
         of, or is otherwise materially injurious to, the Company or a Parent or
         Subsidiary of the Company.

         "CODE" means the Internal Revenue Code of 1986, as amended.

         "COMMITTEE" means the committee appointed by the Board to administer
         this Plan, or if no committee is appointed, the Board.

         "COMPANY" means HOTRAIL, INC. or any successor corporation.

         "DISABILITY" means a disability, whether temporary or permanent,
         partial or total, as determined by the Committee.

         "EXERCISE PRICE" means the price at which a holder of an Option or
         Warrant may purchase the Shares issuable upon exercise thereof.

         "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 as reported in The Wall Street
                    Journal;

                (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 as reported in The Wall Street Journal;

                                       11

<PAGE>   12

                (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 as
                    reported by The Wall Street Journal (or, if not so reported,
                    as otherwise reported by any newspaper or other source as
                    the Board may determine); or

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

         For purposes of arriving at the Fair Market Value of a Warrant in
         connection with the net exercise thereof, the Committee shall make its
         determination in accordance with the provisions set forth in the
         related Warrant Agreement.

         "INSIDER" means an officer or director of the Company or any other
         person whose transactions in the Company's Common Stock are subject to
         Section 16 of the Securities and Exchange Act of 1934, as amended.

         "OPTION" means an award of an option to purchase Shares pursuant to
         Section 5.

         "PARENT" means any corporation (other than the Company) in an unbroken
         chain of corporations ending with the Company if each of such
         corporations other than the Company owns stock possessing 50% or more
         of the total combined voting power of all classes of stock in one of
         the other corporations in such chain.

         "PARTICIPANT" means a person or entity who receives an Award under this
         Plan.

         "PLAN" means this 2000 Equity Plan, as amended from time to time.

         "PURCHASE PRICE" means the price at which a Participant may purchase
         Restricted Stock.

         "RESTRICTED STOCK" means Shares purchased pursuant to a Restricted
         Stock Award.

         "RESTRICTED STOCK AWARD" means an award of Shares pursuant to
         Section 7.

         "SEC" means the Securities and Exchange Commission.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SERVICE PROVIDER" means an employee, officer, director, independent
         contractor or consultant of the Company or any Parent or Subsidiary of
         the Company.

         "SHARES" means shares of the Company's Common Stock reserved for
         issuance under this Plan, as adjusted pursuant to Sections 2 and 19,
         and any successor security.

         "STOCK BONUS" means an award of Shares, or cash in lieu of Shares,
         pursuant to Section 8.

         "STRATEGIC PARTNER" means any customer, supplier, partner or other
         person or entity who has entered into a business agreement with the
         Company or any Parent or Subsidiary of the Company that is evidenced in
         writing, including but not limited to a distribution agreement, loan
         agreement, real property or equipment lease or purchase agreement, but
         shall not mean a natural person whose only relationship with the
         Company, its Parent or Subsidiary is the performance of services
         thereto.

         "STRATEGIC PARTNER AFFILIATE" means an owner, officer, director,
         employee, independent contractor or consultant to a Strategic Partner.

                                       12

<PAGE>   13

         "SUBSIDIARY" means any corporation (other than the Company) in an
         unbroken chain of corporations beginning with the Company if each of
         the corporations other than the last corporation in the unbroken chain
         owns stock possessing 50% or more of the total combined voting power of
         all classes of stock in one of the other corporations in such chain.

         "TERMINATION" or "TERMINATED" means, for purposes of this Plan with
         respect to a Participant, that the Participant has for any reason
         ceased to provide services as a Service Provider. A Participant will
         not be deemed to have ceased to provide services in the case of (a)
         sick leave, (b) military leave, or (c) any other leave of absence
         approved by the Committee, provided that such leave is for a period of
         not more than 90 days unless reemployment upon the expiration of such
         leave is guaranteed by contract or statute, or unless provided
         otherwise pursuant to formal policy adopted from time to time by the
         Company and issued and promulgated in writing. In the case of any
         Participant on (a) sick leave, (b) military leave, or (c) an approved
         leave of absence, the Committee may make such provisions respecting
         suspension of vesting of the Award while on leave from the employ of
         the Company or a Subsidiary as it may deem appropriate, except that in
         no event may an Option be exercised after the expiration of the term
         set forth in the Stock Option Agreement. The Committee will have sole
         discretion to determine whether a Participant has ceased to provide
         services and the effective date on which the Participant ceased to
         provide services (the "TERMINATION DATE").

         "UNVESTED SHARES" means "Unvested Shares" as defined in the Award
         Agreement.

         "VESTED SHARES" means "Vested Shares" as defined in the Award
         Agreement.

         "WARRANT" means an award of a warrant pursuant to Section 6.

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

                                       13

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