Document:

STOCK PURCHASE AGREEMENT

                                      AMONG

                                   HOMADA LLC,

                             HABITAT SOLUTIONS, INC.

                                       AND

                                INTERIORS, INC.,

                                 JANUARY 16 2002

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                                TABLE OF CONTENTS

                                                                            PAGE

ARTICLE I       DEFINITIONS ..................................................1

ARTICLE II  PURCHASE AND SALE OF SHARES ......................................7
      SECTION   2.01  Purchase and Sale of Shares ............................7
      SECTION   2.02  Purchase Price .........................................7
      SECTION   2.03  Adjustment for Future Performance ......................9
      SECTION   2.04  Closing ................................................10
      SECTION   2.05  Actions Prior to and at the Closing ....................10

ARTICLE III     REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY .........11
      SECTION   3.01  Organization and Good Standing; Authorization...........11
      SECTION   3.02  No Conflicts............................................11
      SECTION   3.03  Capitalization .........................................12
      SECTION   3.04  Financial Statements; Completion Schedule ..............12
      SECTION   3.05  Title to Property; Encumbrances. .......................13
      SECTION   3.06  Inventory ..............................................14
      SECTION   3.07  Compliance with Law ....................................14
      SECTION   3.08  Insurance ..............................................15
      SECTION   3.09  Indebtedness ...........................................16
      SECTION   3.10  Judgments; Litigation ..................................16
      SECTION   3.11  Income and Other Taxes .................................17
      SECTION   3.12  Corporate Records ......................................18
      SECTION   3.13  Employee Benefit Matters ...............................18
      SECTION   3.14  No Undisclosed Liabilities .............................18
      SECTION   3.15  Permits, Licenses, Etc. ................................18
      SECTION   3.16  Regulatory Filings .....................................18
      SECTION   3.17  Consents ...............................................19
      SECTION   3.18  Material Contracts; No Defaults ........................19
      SECTION   3.19  Absence of Certain Changes .............................21
      SECTION   3.20  Employees and Labor Matters ............................21
      SECTION   3.21  Affiliations ...........................................22
      SECTION   3.22  Warranty Liability .....................................23
      SECTION   3.23  Hazardous Materials ....................................23
      SECTION   3.24  Brokers' Fees ..........................................24
      SECTION   3.25  Disclosure .............................................24

ARTICLE IV      REPRESENTATIONS AND WARRANTIES OF BUYER ......................24
      SECTION   4.01  Organization, Power and Authority of Buyer .............24
      SECTION   4.02  Authorization ..........................................24
      SECTION   4.03  No Conflict or Violation ...............................24
      SECTION   4.04  Capitalization .........................................25

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      SECTION   4.05  Consents and Approvals .................................25
      SECTION   4.06  Reports and Financial Statements .......................25
      SECTION   4.07  Brokers' Fees ..........................................26

ARTICLE V       REPRESENTATIONS AND WARRANTIES  OF Shareholder ...............26
      SECTION   5.01  Ownership of Shares ....................................26
      SECTION   5.02  Delivery of Good Title .................................26
      SECTION   5.03  Execution and Delivery .................................26
      SECTION   5.04  No Conflicts ...........................................26

ARTICLE VI      CONDITIONS TO CONSUMMATION OF SALE OF SHARES .................28
      SECTION   6.01  Conditions to Obligations of Buyer .....................28
      SECTION   6.02  Conditions to Obligations of the Shareholder ...........30

ARTICLE VII     ADDITIONAL COVENANTS .........................................33
      SECTION   7.01  Covenants of the Shareholder ...........................33
      SECTION   7.02  Covenants of Buyer .....................................34
      SECTION   7.03  Access and Information .................................34
      SECTION   7.04  Expenses ...............................................35
      SECTION   7.05  Certain Notifications ..................................35
      SECTION   7.06  Publicity; Employee Communications .....................35
      SECTION   7.07  Further Assurances .....................................36
      SECTION   7.08  Competing Offers; Merger or Liquidation ................36
      SECTION   7.09  Inconsistent Action ....................................36
      SECTION   7.10  Post-Termination Employment ............................36

ARTICLE VIII    TERMINATION, AMENDMENT AND WAIVER ............................37
      SECTION   8.01  Termination ............................................37
      SECTION   8.02  Effect of Termination ..................................37
      SECTION   8.03  Amendment ..............................................37
      SECTION   8.04  Waiver .................................................37

ARTICLE IX      INDEMNIFICATION ..............................................38
      SECTION   9.01 Survival of Representations and Warranties
                        and Covenants ........................................38
      SECTION   9.02  Indemnification ........................................38
      SECTION   9.03  Third Party Claims .....................................39
      SECTION   9.04  Indemnification Non-Exclusive ..........................40

ARTICLE X       GENERAL PROVISIONS ...........................................40
      SECTION   10.01 Notices ................................................40
      SECTION   10.02 Severability ...........................................41
      SECTION   10.03 Entire Agreement .......................................41
      SECTION   10.04 Successors and Assigns..................................42
      SECTION   10.05 Counterparts............................................42
      SECTION   10.06 Schedules and Annexes ..................................42
      SECTION   10.07 Construction ...........................................42
      SECTION   10.08 Governing Law ..........................................42

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      SECTION   10.09 Arbitration Concerning Disputes Regarding EBIT .........42

            LIST OF ANNEXES

            Annex A - Form of Shareholder Certificate

            Annex B - Certificate of the Company's Officers

            Annex C - Certificate of the Company's Secretary

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                            STOCK PURCHASE AGREEMENT

      THIS STOCK PURCHASE AGREEMENT (this "AGREEMENT") is entered into as of
January 16, 2002, by and among Habitat Solutions, Inc., a Delaware corporation
("SHAREHOLDER"), Interiors, Inc., a Delaware corporation and the parent
corporation of the Shareholder ("Interiors"), and Homada LLC, a California
Limited Liability Company ("BUYER").

                                 R E C I T A L S

(d)   The Shareholder owns 100 shares of common stock (the "SHARES") of ------
      Concepts 4, Inc., a California corporation (the "COMPANY"). The -------
      Shareholder is the owner of all the issued and outstanding common stock of
      the Company.

(e)   The Shareholder desires to sell to Buyer, and Buyer desires to purchase
      from the Shareholder, the Shares in accordance with the terms of this
      Agreement.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties herein contained, the parties hereto agree as
follows:

                                   ARTICLE I.
                                   DEFINITIONS

      Unless the context otherwise requires, the terms defined in this Article I
shall have the meanings herein specified for all purposes of this Agreement,
applicable to both the singular and plural forms of any of the terms herein
defined. All accounting terms defined in this Article I and those accounting
terms used in this Agreement and not defined in this Article I shall, except as
otherwise provided for herein, be construed in accordance with GAAP.

      "ACTION" shall mean any actual or threatened claim, action, suit,
arbitration, hearing, inquiry, proceeding, complaint, charge or investigation by
or before any Governmental Entity or arbitrator and any appeal from any of the
foregoing.

      "AFFILIATE" shall mean any Person which directly or indirectly controls,
is controlled by, or is under common control with, the indicated Person.

      "AGREEMENT" shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.

      "BALANCE SHEET DATE" shall have the meaning assigned to such term in
Section 3.04(a) hereof.

      "BROKER" shall have the meaning assigned to such term in Section 3.24
hereof.

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      "BUYER" shall have the meaning assigned to such term in the introductory
paragraph of this Agreement.

      "CLAIM NOTICE" shall have the meaning assigned to such term in Section
9.03 hereof.

      "CLOSING" and "CLOSING DATE" shall have the respective meanings assigned
to such terms in Section 2.05 hereof.

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

      "COMMON STOCK" shall mean the common stock of the Company.

      "COMPANY" shall have the meaning assigned to such term in Recital A
hereof.

      "DAMAGES" shall mean any and all losses, liabilities, obligations, costs,
expenses, damages or judgments of any kind or nature whatsoever (including
without limitation reasonable attorneys', accountants' and experts' fees,
disbursements of counsel, and other costs and expenses incurred pursuing
indemnification claims under Article X hereof).

      "EARNOUT PAYMENTS" shall have the meaning assigned to such term in Section
2.03 hereof.

      "EBIT" shall mean Net Income plus the Company's provision and other
expenses for federal income taxes and Interest Expense, less any Interest
Income, attributable solely to the business of the Company for a particular
fiscal year. For the purpose of calculating EBIT in connection with Section 2.03
only, any increase in the operating expenses of the Company (which increase, for
the purposes of calculating EBIT, shall be calculated by comparing the current
operating expenses against the operating expenses for the preceding twelve (12)
month period), which operating expenses are incurred as a result of the actions
of Buyer, shall be excluded from EBIT upon Shareholder' written notice to Buyer
if the increase in operating expenses is (i) not in the Ordinary Course; or (ii)
incurred to increase the revenue or profits of the Company during periods which
do not include the First Earnout Period, the Second Earnout Period or the Third
Earnout Period. Any increase in operating expenses of the Company incurred as a
result of the actions of Buyer shall be included in EBIT if the increase in
operating expenses is (x) incurred to preserve the assets of the Company; or (y)
incurred to maintain Buyer's financial control of the Company.

      "ENVIRONMENTAL LAWS" shall mean all Legal Requirements pertaining to the
protection of the environment, the treatment, emission and discharge of gaseous,
particulate and effluent pollutants and the use, handling, storage, treatment,
removal, transport, transloading, cleanup, decontamination, discharge and
disposal of Hazardous Material.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time.

      "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

      "FINANCIAL STATEMENTS" shall have the meaning assigned to such term in
Section 3.04(a) hereof.

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      "FIRST EARNOUT PERIOD" shall mean the period of time beginning on the
Closing Date and ending on the first anniversary of the Closing Date.

      "FORMER SHAREHOLDERS" shall mean Jerry Howard and his assignee, the Howard
Family Trust dated March 21, 2000, Dennis Darlington and the Mamer Family Trust
dated October 1, 1997.

      "GAAP" means United States generally accepted accounting principles,
consistently applied.

      "GOVERNMENTAL ENTITY" shall mean any local, state, federal or foreign (i)
court, (ii) government or (iii) governmental department, commission,
instrumentality, board, agency or authority, including the IRS and other taxing
authorities.

      "HAZARDOUS MATERIAL" shall mean any flammable, ignitable, corrosive,
reactive, radioactive or explosive substance or material, hazardous waste, toxic
substance or related material and any other substance or material defined or
designated as a hazardous or toxic substance, material or waste by any
Environmental Law currently in effect or as amended or promulgated in the
future.

      "INDEBTEDNESS" shall mean, when used with reference to any Person, without
duplication, (i) any liability of such Person created or assumed by such Person,
or any Subsidiary thereof, (A) for borrowed money, (B) evidenced by a bond,
note, debenture or similar instrument (including a purchase money obligation,
deed of trust or mortgage) given in connection with the acquisition of, or
exchange for, any property or assets (other than inventory or similar property
acquired and consumed in the Ordinary Course), including securities and other
Indebtedness, (C) in respect of letters of credit issued for such Person's
account and "swaps" of interest and currency exchange rates (and other interest
and currency exchange rate hedging agreements) to which such Person is a party
or (D) for the payment of money as lessee under leases that should be, in
accordance with GAAP, recorded as capital leases for financial reporting
purposes; (ii) any liability of others described in the preceding clause (i)
guaranteed as to payment of principal or interest by such Person or in effect
guaranteed by such Person through an agreement, contingent or otherwise, to
purchase, repurchase or pay the related Indebtedness or to acquire the security
therefor; (iii) all liabilities or obligations secured by a Lien upon property
owned by such Person and upon which liabilities or obligations such Person
customarily pays interest or principal, whether or not such Person has not
assumed or become liable for the payment of such liabilities or obligations; and
(iv) any amendment, renewal, extension, revision or refunding of any such
liability or obligation.

      "INDEMNIFIABLE CLAIM" shall have the meaning assigned to such term in
Section 9.03 hereof.

      "INDEMNIFIED PARTY" shall have the meaning assigned to such term in
Section 9.02 hereof.

      "INDEMNIFYING PARTY" shall have the meaning assigned to such term in
Section 9.03 hereof.

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      "INTEREST EXPENSE" and "INTEREST INCOME" for a fiscal year shall mean,
respectively, the Company's interest expense and interest income for such fiscal
year used in determining Net Income for that fiscal year.

      "IRS" shall mean the United States Internal Revenue Service. ---

      "JANUARY 30 NOTE" shall have the meaning assigned to such term in Section
2.02(a)(i) hereof.

      "JUNE BALANCE SHEET" shall have the meaning assigned to such term in
Section 3.04 hereof.

      "LEGAL REQUIREMENT" shall mean any statute, law, ordinance, rule,
regulation, permit, order, writ, judgment, injunction, decree or award issued,
enacted or promulgated by any Governmental Entity or any arbitrator.

      "LIEN" shall mean all liens (including judgment and mechanics' liens,
regardless of whether liquidated), mortgages, assessments, security interests,
easements, claims, pledges, trusts (constructive or other), deeds of trust,
options or other charges, encumbrances or restrictions.

      "MANAGEMENT GROUP" shall mean Rene Acquino, William Azzalino, Sharon
Calhoun, Grace Ebiya, Vicente Frias, Jr., William Legg, Ramon Nadres, Linda
Snyder and Delia Vechi.

      "MATERIAL ADVERSE EFFECT" shall mean a material adverse effect on the
business, financial condition, properties, profitability, prospects or
operations of the Company. "NET INCOME" shall mean the net income of the Company
for such period, determined in accordance with GAAP, applied in a manner
consistent with the prior accounting practices of the Company, attributable
solely to the business of the Company for a particular fiscal year.

      "OPTIONS" shall mean all outstanding options, warrants and other rights to
acquire Common Stock.

      "ORDINARY COURSE" shall mean, when used with reference to the Company, the
ordinary course of the Company's business consistent with past practices.

      "PERMITTED LIENS" shall mean (a) Liens for ad valorem real or personal
property taxes or assessments not at the time due and (b) Liens in respect of
pledges or deposits under workers' compensation laws or similar legislation,
carriers', warehousemen's, mechanics', laborers' and materialmen's and similar
liens, if the obligations secured by such Liens are not then delinquent.

      "PERSON" shall mean all natural persons, corporations, business trusts,
associations, companies, partnerships, limited liability companies, joint
ventures, Governmental Entities and any other entities.

      "PRE-CLOSING BALANCE SHEET" shall have the meaning assigned to such term
in Section 2.03(a) hereof.

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      "PURCHASE PRICE" shall have the meaning assigned to such term in Section
2.02(a) hereof.

      "SECOND EARNOUT PERIOD" shall mean the period of time beginning on the
Closing Date and ending on the second anniversary of the Closing Date.

      "SECTION 2.02 NOTE" shall have the meaning assigned to such term in
Section 2.02(a) of this Agreement.

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

      "SHAREHOLDER" shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.

      "SHARES" shall have the meaning assigned to such term in Recital A hereof.

      "SHAREHOLDER STOCK PURCHASE AGREEMENT" shall have the meaning assigned to
such term in Section 2.04 of this Agreement.

      "STRUCTURE" shall mean any facility, building, plant, factory, office,
warehouse structure or other improvement owned or leased by the Company.

      "SUBSIDIARY" of a Person shall mean any corporation, partnership,
association or other business entity at least 50% of the outstanding voting
power of which is at the time owned or controlled directly or indirectly by such
Person or by one or more of such subsidiary entities, or both.

      "TAX" shall mean any federal, state, local or foreign income, gross
receipts, license, payroll, unemployment, excise, severance, stamp, occupation,
premium, windfall profits, environmental (including, without limitation, taxes
under Code Section 59A), customs duties, capital stock, franchise, profits,
withholding, social security (or similar), employment, disability, real
property, personal property, sales, use, transfer, registration, value added,
alternative or add-on minimum, estimated tax or other tax, assessment or charge
of any kind whatsoever, including, without limitation, any interest, fine
penalty or addition thereto, whether disputed or not.

      "TAX RETURN" shall mean any return, declaration, report, claim for refund
or information, or statement relating to Taxes, and any exhibit, schedule,
attachment or amendment thereto.

      "THIRD EARNOUT PERIOD" shall mean the period of time beginning on the
Closing Date and ending on the third anniversary of the Closing Date.

                                  ARTICLE II.
                           PURCHASE AND SALE OF SHARES

      SECTION 2.01. PURCHASE AND SALE OF SHARES. Subject to the terms and
conditions set forth herein, the Shareholder agrees to sell and deliver the
Shares to Buyer, and Buyer agrees to purchase and accept the Shares from the
Shareholder free and clear of all Liens, for the Purchase Price described in
Section 2.02 hereof.

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      SECTION 2.02. PURCHASE PRICE.

      (a) Buyer shall pay an aggregate purchase price (the "PURCHASE PRICE") for
the Shares equal to the sum of:

           (i) Eight Hundred Seventy-five Thousand Dollars ($875,000) in cash
(the "CASH PAYMENT") payable as follows: (A) Seven Hundred and Fifty Thousand
Dollars ($750,000) payable at the Closing, and (B) One Hundred and Twenty Five
Thousand Dollars ($125,000) payable no later than January 31, 2002, the
obligation for which shall be evidenced at Closing by an unsecured promissory
note, in substantially the form attached hereto as Exhibit A-1, which note shall
be payable in full on January 30, 2002 in immediately available funds (the
"JANUARY 30 NOTE").

           (ii) Buyer's unsecured Promissory Note, in substantially the form as
attached hereto as Exhibit A-2, in the amount of Six Hundred Twenty-five
Thousand Dollars ($625,000), bearing interest of five percent per annum from the
Closing Date to the first anniversary of the closing date and bearing interest
at six percent per annum thereafter and with annual payments amortized over
seven years and the note payable in full within five years (the "SECTION 2.02
NOTE"). The first payment on the Section 2.02 Note shall be made January 2,
2003.

      (b) If Company enters into a currently contemplated agreement with Robles
del Rio hotel in Carmel, California within 120 days of the Closing Date
execution of the purchase, then Buyer shall pay, in one or more payments, an
amount up to $100,000 in a prepayment on the Section 2.02 Note, which prepayment
will be paid from any monies received by the Company from the Robles del Rio
hotel as they are received by the Company, with no less than ten percent (10%)
of each payment received from the Robles del Rio hotel used to fund said
prepayment.

      (c) If the balance owing to Seller under Section 2.02(a) is paid in full
within the first six months following the Closing of the purchase, Buyer shall
be entitled to discount the Purchase Price by $75,000 so that the total Purchase
Price is reduced to $1,425,000.

      (d) In the event that, prior to payment in full of its obligations owing
under the Section 2.02 Note, the stockholders or holders of equity of the Buyer
shall sell all or a majority the capital stock or assets of the Buyer or the
Buyer shall sell a majority of the Shares in the Company, AND either prior to or
simultaneous with such sale all obligations owed to the Former Stockholders
pursuant to Section 2.04. are paid, then all the remaining balance due under the
Section 2.02 Note, shall be paid to Shareholder as an advance payment of the
Section 2.02 Note.

      SECTION 2.03. ADJUSTMENT FOR FUTURE PERFORMANCE. Buyer shall make the
following additional payments to Shareholder for the Shares, at the times and in
the amounts specified below (in the aggregate, the "EARNOUT PAYMENTS"):

      (a) In the event the Company's EBIT during the First Earnout Period
exceeds Three Million Dollars ($3,000,000), then within seventy-five (75) days
following the end of said period, Buyer shall pay to Shareholder as additional
purchase price One Dollar ($1.00) for each One Dollar ($1) that Company's EBIT
during the first calendar year exceeds Three Million Dollars ($3,000,000) up to
a maximum of Two Hundred Fifty Thousand Dollars ($250,000).

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Buyer shall not be obligated to pay any additional purchase price in the event
that Company's EBIT during said earnout period is less than Three Million
Dollars ($3,000,000).

      (b) In the event the Company's EBIT during the Second Earnout Period
exceeds Three Million Dollars ($3,000,000), then seventy-five (75) days
following the end of said period, Buyer shall pay to Shareholder as additional
purchase price One Dollar ($1.00) for each One Dollar ($1.00) that Company's
EBIT during the Second Earnout Period exceeds Three Million Dollars ($3,000,000)
up to a maximum of Two Hundred Fifty Thousand Dollars ($250,000). Buyer shall
not be obligated to pay any additional purchase price in the event that
Company's EBIT during said earnout period is less than Three Million Dollars
($3,000,000).

      (c) In the event the Company's EBIT during the Third Earnout Period
exceeds Three Million Dollars ($3,000,000), then seventy-five (75) days
following the end of said period, Buyer shall pay to Shareholder as additional
purchase price One Dollar ($1.00) for each One Dollar ($1.00) that Company's
EBIT during the Third Earnout Period exceeds Three Million Dollars ($3,000,000)
up to a maximum of Two Hundred Fifty Thousand Dollars ($250,000). Buyer shall
not be obligated to pay any additional purchase price in the event that
Company's EBIT during said earnout period is less than Three Million Dollars
($3,000,000).

      (d) In the event that (i) Buyer satisfies its obligations to the Former
Shareholders pursuant to Section 2.04 in the amounts set forth in Schedule
2.03(d) attached hereto and (ii) Buyer receives or has the right to receive cash
proceeds or securities on account of its ownership interest in Company within
six years from the Closing Date, then Buyer shall pay to Shareholder as
additional purchase price fifteen percent (15%) of all cash proceeds or
securities received or receivable by the Management Group of Buyer.

      SECTION 2.04. ASSUMPTION OF LIABILITIES. Buyer will assume the following
obligations of Interiors:

      (a) The obligations of Interiors to the Former Shareholders under Section
2.02(a)(iv), (v), (vi) and (vii) and Section 2.04 of the Stock Purchase
Agreement between Interiors and the Former Shareholders dated October 27, 1999,
as amended on December 15, 1999, October 12, 2000, and February 28, 2001, (the
"Shareholder Stock Purchase Agreement") and will obtain a release in favor of
Interiors of all obligations to Former Shareholders under Shareholder Stock
Purchase Agreement.

      (b) The obligations of Interiors to the Former Shareholders under the
Employment Agreements entered into between the Former Shareholders and Company
concurrently with the Shareholder Stock Purchase Agreement.

      (c) The obligations of Interiors to William Azzalino, William Legg and
Linda Snyder under the Employment Agreements entered into between them and
Company concurrently with the Shareholder Stock Purchase Agreement.

      SECTION 2.05. CLOSING. Unless this Agreement shall have been terminated
pursuant to Section 9.01 hereof, the closing of the purchase and sale of the
Shares contemplated hereby (the "CLOSING") shall take place at the Law Office of
Lorraine L. Loder, Eighth Floor, 601 W. Fifth Street, Los Angeles, California
90071, at 10:00 A.M. local time on or prior to January 18, 2002,

                                       7

as promptly as practicable upon satisfaction of the conditions appearing in
Article VI hereof or at such other time and place as Buyer and Shareholder may
mutually establish (such time and date being referred to herein as the "CLOSING
DATE").

      SECTION 2.06. ACTIONS PRIOR TO AND AT THE CLOSING.

      (a) At the Closing the Company and Shareholder shall deliver or cause to
be delivered to Buyer:

           (i) a certificate or certificates representing the Shares registered
in the name of the Buyer; and

           (ii) all of the documents, certificates and instruments required to
be delivered to Buyer pursuant to Section 6.01.

      (b) At the Closing Buyer shall deliver or cause to be delivered to
Shareholder:

           (i) Seven Hundred and Fifty Thousand Dollars ($750,000) of the Cash
Payment (as required by Section 2.02(a)(i) hereof), the January 30 Note (as
required by Section 2.02(a)(i) hereof), and the Section 2.02 Note (as required
by Section 2.02(a)(ii) hereof); and

           (ii) all of the documents, certificates and instruments required to
be delivered to Shareholder pursuant to Section 6.02.

                                  ARTICLE III.
              REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

      Shareholder and Interiors each hereby represent and warrant to and
covenant and agree with Buyer that:

      SECTION 3.01. ORGANIZATION AND GOOD STANDING; AUTHORIZATION.

      (a) The Company has been duly organized and is existing as a corporation
in good standing under the laws of the State of California with full power and
authority (corporate and other) to own and lease its properties and to conduct
its business as currently conducted. The Company has been duly qualified as a
foreign corporation for the transaction of business and is in good standing
under the laws of each jurisdiction set forth on Schedule 3.01(a), such
jurisdictions comprising all jurisdictions in which the Company owns or leases
any property, or conducts any business, so as to require such qualification.

      (b) The Company has no Subsidiaries nor owns or controls, or has any other
equity investment or other interest in, directly or indirectly, any corporation,
joint venture, partnership, association or other Person.

      SECTION 3.02. NO CONFLICTS. Subject to compliance with the applicable
requirements of the Securities Act and any applicable state securities laws, the
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby

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<PAGE>

will not (a) conflict with or result in a breach or violation of any term or
provision of, or constitute a default under (with or without notice or passage
of time, or both), or otherwise give any Person a basis for accelerated or
increased rights or termination or nonperformance under, any indenture,
mortgage, deed of trust, loan or credit agreement, lease, license or other
agreement or instrument to which the Company is a party or by which the Company
is bound or affected or to which any of the property or assets of the Company is
bound or affected including, without limitation, all arrangements in Section
3.17 hereof, (b) result in the violation of the provisions of the Articles of
Incorporation or Bylaws of the Company or any Legal Requirement applicable to or
binding upon it, (c) result in the creation or imposition of any Lien upon any
property or asset of the Company or (d) otherwise adversely affect the
contractual or other legal rights or privileges of the Company. Schedule 3.02
sets forth a list of all agreements requiring the consent of any party thereto
to any of the transactions contemplated hereby.

      SECTION 3.03. CAPITALIZATION. The authorized capital stock of the Company
consists solely of 10,000 shares of Common Stock, of which 100 are, and on the
Closing Date will be, issued and outstanding. Schedule 3.03 sets forth a
complete and accurate list of the holders of shares of Common Stock, indicating
the number of Shares held by each holder and their respective addresses. All of
the issued and outstanding shares of Common Stock are duly authorized, validly
issued, fully paid, nonassessable and free of all preemptive rights. Other than
as set forth on Schedule 3.03, (i) there are no existing Options, warrants,
right, calls or commitments of any character relating to shares of Common Stock,
(ii) there are no outstanding securities or other instruments convertible into
or exchangeable for shares of Common Stock and no commitments to issue such
securities or instruments and (iii) no Person has any right of first refusal,
preemptive right, subscription right or similar right with respect to any shares
of Common Stock. The offer, issuance and sale of the Shares were (i) exempt from
the registration and prospectus delivery requirements of the Securities Act,
(ii) registered or qualified (or exempt from registration or qualification)
under the registration or qualification requirements of all applicable state
securities laws and (iii) accomplished in conformity with all other Legal
Requirements.

      SECTION 3.04. FINANCIAL STATEMENTS; COMPLETION SCHEDULE.

      (a) Schedule 3.04(a) contains true and complete copies of the unaudited
balance sheet of the Company (the "JUNE BALANCE SHEET") at June 30, 2001 (the
"BALANCE SHEET DATE") and the related unaudited statements of income,
Shareholder' equity and cash flows for the six-month period ended on the Balance
Sheet Date, and the Pre-Closing Balance Sheet at the Pre-Closing Date and the
related unaudited statements of income, Shareholder' equity and cash flows for
the six-month period ended on the Pre-Closing Date (such unaudited financial
statements are collectively referred to as the "FINANCIAL STATEMENTS").

      (b) The Financial Statements present fairly the financial condition of the
Company as of the dates indicated therein and the results of operations and
changes in financial position of the Company for the periods specified therein,
have been prepared in conformity with GAAP during the periods covered thereby
and prior periods (except that the Balance Sheet, the Pre-Closing Balance Sheet
and the related unaudited statements of income, Shareholder' equity and cash
flows for the periods ended on the Balance Sheet Date and on the Pre-Closing
Date, respectively, do not contain footnotes and are subject to year end
adjustments which would not,

                                       9

<PAGE>

either individually or in the aggregate, be material), have been derived from
the accounting records of the Company and represent only actual, bona fide
transactions. The Financial Statements are true and correct in all material
respects.

      (c) Other than as set forth in Balance Sheet or disclosed in this
Agreement and attached schedules, there are no liabilities of the Company other
than in the Ordinary Course of business.

      SECTION 3.05. TITLE TO PROPERTY; ENCUMBRANCES.

      (a) The Company does not own any real property or any Structures.

      (b) The Company has, and immediately prior to the Closing will have, good,
valid and marketable title in fee simple to all personal property reflected on
the Balance Sheet as owned by the Company and all personal property acquired by
the Company since the Balance Sheet Date, in each case free and clear of all
Liens except Permitted Liens.

      (c) Company has not leased any material real or personal property that is
not known to the management of Company.

      SECTION 3.06. INVENTORY. The value at which inventories are carried on the
Balance Sheet reflects the normal inventory valuation policy of the Company, on
a basis consistent with that of preceding period, of stating inventory at its
lower of cost or market value, and, consistent therewith, all non-current or
obsolete inventory held by the Company on the Balance Sheet Date has been valued
at its current market value on the Balance Sheet.

      SECTION 3.07. COMPLIANCE WITH LAW. Except where it has not had a Material
Adverse Effect, through and including the Closing Date, the Company (i) has not
violated, has not conducted its business or operations in violation of, and has
not used or occupied its properties or assets in violation of, any Legal
Requirement, (ii) has not been alleged to be in violation of any Legal
Requirement, and (iii) has not received any notice of any alleged violation of,
nor any citation for noncompliance with, any Legal Requirement.

      SECTION 3.08. INSURANCE. Except as set forth in Schedule 3.08, neither the
 Shareholder nor Interiors has modified, terminated or allowed to lapse any of
Company's insurance policies or any of Shareholder's or Interiors' insurance
policies covering Company since the date of Shareholder Stock Purchase
Agreement.

      SECTION 3.09. INDEBTEDNESS. Except as set forth in Schedule 3.09 or on
   Balance Sheet, no liability or obligation for Indebtedness. and documents
evidencing, creating, securing or otherwise relating to such Indebtedness have
been delivered to Buyer heretofore. Except as described in Schedule 3.09, no
event has occurred and no condition has become known to Shareholder or Interiors
(including the transactions contemplated hereby) that constitutes or, with
notice or passage of time, or both, would constitute a default or a basis of
FORCE MAJEURE or other claim of accelerated or increased rights, termination,
excusable delay or nonperformance by the Company or any other Person under any
instrument or document relating to or evidencing Indebtedness that would entitle
any Person to require the Company to pay any portion of the principal amount of
such Indebtedness prior to the scheduled maturity thereof. Except as set

                                       10

<PAGE>

forth in Schedule 3.09, no instrument or document evidencing, creating, securing
or otherwise relating to Indebtedness will require the consent of any Person to
or as a result of the consummation of the transactions contemplated by this
Agreement.

      SECTION 3.10 JUDGMENTS; LITIGATION. Except as set forth on Schedule 3.10:

      (a) There is no (i) outstanding judgment, order, decree, award,
stipulation, injunction of any Governmental Entity or arbitrator against or
affecting the Company or its properties, assets or business or (ii) Action
pending against or affecting the Company or its properties, assets or business.

      (b) There is no (i) outstanding judgment, order, decree, award,
stipulation, injunction of any Governmental Entity or arbitrator against or
affecting any officer, director or employee of the Company relating to the
Company or its business, (ii) Action threatened against the Company or its
properties, assets or business, (iii) Action pending or threatened against the
Company's officers, directors or employees relating to the Company or its
business or (iv) basis for the institution of any Action against the Company or
any of its officers, directors, employees, properties or assets which, if
decided adversely, would have a Material Adverse Effect.

      SECTION 3.11. INCOME AND OTHER TAXES. Except as set forth on Schedule
3.11, for the period from December 15, 1999 through the date of Closing:

      (a) All Tax Returns required to be filed through and including the date
hereof in connection with the operations of the Company are true, complete and
correct in all respects and have been properly and timely filed. The Company has
not requested any extension of time within which to file any Tax Return, which
Tax Return has not since been filed. Buyer has heretofore been furnished by the
Company with true, correct and complete copies of each Tax Return of the Company
with respect to the past two (2) taxable years, and of all reports of, and
communications from, any Governmental Entities relating to such period. (b) All
Taxes required to be paid or withheld and deposited through and including the
date hereof in connection with the operations of the Company have been duly and
timely paid or deposited by the Company. The Company has properly withheld or
collected all amounts required by law for income Taxes and employment Taxes
relating to its employees, creditors, independent contractors and other third
parties, and for Taxes on sales, and has properly and timely remitted such
withheld or collected amounts to the appropriate Governmental Entity. The
Company has no liabilities for any Taxes for any taxable period ending prior to
or coincident with the Closing Date.

      (c) The Company has made adequate provision on its books of account for
all Taxes with respect to its business, properties and operations through the
Balance Sheet Date, and the accruals for Taxes in the Balance Sheet are adequate
to cover all liabilities for Taxes of the Company for all periods ending on or
before the Closing Date.

      (d) The Company has not heretofore (i) had a tax deficiency proposed,
asserted or assessed against it, (ii) executed any waiver of any statute of
limitations on the assessment or collection of any Taxes, or (iii) been
delinquent in the payment of any Taxes.

                                       11

<PAGE>

      (e) No Tax Return of the Company has been audited or the subject of other
Action by any Governmental Entity. The Company has not received any notice from
any Governmental Entity of any pending examination or any proposed deficiency,
addition, assessment, demand for payment or adjustment relating to or affecting
the Company or its assets or properties and the Shareholder and Interiors have
no reason to believe that any Governmental Entity may assess (or threaten to
assess) any Taxes for any periods ending on or prior to the Closing Date.

      (f) The Company (i) has not filed any consent or agreement pursuant to
Code Section 341(f), and no such consent or agreement will be filed at any time
on or before the Closing Date; (ii) has not made any payments, is not obligated
to make any payments and is not a party to any agreement that under certain
circumstances could obligate the Company to make any payments that will not be
deductible under Code Section 280G; (iii) is not a United States real property
holding corporation within the meaning of Code Section 897(c)(2); (iv) is not a
party to a tax allocation or sharing agreement; (v) has never been (or does not
have any liability for unpaid Taxes because it was) a member of an affiliated
group with the meaning of Code Section 1504(a); (vi) has never applied for a tax
ruling from a Governmental Entity; and (vii) has never filed or been the subject
of an election under Code Section 338(g) or Code Section 338(h)(10) or caused or
been the subject of a deemed election under Code Section 338(e).

      (g) Set forth on Schedule 3.11(g) is the amount, as of the most recent
practicable date, of any net operating loss, net capital loss, unused investment
or other credit, unused foreign tax or excess charitable contribution. The net
operating losses incurred by Company after June 30, 2001 have not been used or
impaired.

      SECTION 3.12. CORPORATE RECORDS. The copies or originals of the Articles
of Incorporation, Bylaws, minute books and stock records of the Company
previously delivered to, or made available for inspection by, Buyer are true,
complete and correct.

      SECTION 3.13. EMPLOYEE BENEFIT MATTERS. Except as set forth in Schedule
3.13, the Company maintains no pension, retirement, profit-sharing, employee
stock ownership plan, deferred compensation, stock bonus or other similar plan;
medical, vision, dental or other health plan; life insurance plan; vacation,
severance, golden parachute or other similar plan or arrangement; stock option,
stock appreciation or other similar plan or arrangement; and any other employee
benefit plan, including, without limitation, any "employee benefit plan" as
defined in Section 3(3) of ERISA, which, in any case, relates to the Company.

      SECTION 3.14. NO UNDISCLOSED LIABILITIES. Except (i) to the extent set
forth or provided for in the Financial Statements or the notes thereto, (ii) as
set forth on Schedule 3.14 or (iii) for non-material current liabilities
incurred since the Balance Sheet Date in the Ordinary Course, as of the date
hereof the Company has no liabilities, whether accrued, absolute, contingent or
otherwise, whether due or to become due and whether the amounts thereof are
readily ascertainable or not, or any unrealized or anticipated losses from any
commitments of a contractual nature, including Taxes with respect to or based
upon the transactions or events occurring at or prior to the Closing.

                                       12

<PAGE>

      SECTION 3.15. REGULATORY FILINGS. The Company has made all required
registrations and filings with and submissions to all applicable Governmental
Entities relating to the operations of the Company as currently conducted and as
proposed to be conducted, including, without limitation, all such applicable
Governmental Entities having jurisdiction over any matters pertaining to
conservation or protection of the environment, and the treatment, discharge,
use, handling, storage or production, or disposal of Hazardous Materials. All
such registrations, filings and submissions were in compliance with all Legal
Requirements (including all Environmental Laws) and other requirements when
filed, no material deficiencies have been asserted by any such applicable
Governmental Entities with respect to such registrations, filings or submissions
and no facts or circumstances exist which would indicate that a material
deficiency may be asserted by any such authority with respect to any such
registration, filing or submission.

      SECTION 3.16. CONSENTS. All consents, authorizations and approvals of any
Person to, or as a result of the consummation of, the transactions contemplated
hereby that are necessary or advisable in connection with the operations and
business of the Company as currently conducted and as proposed to be conducted,
or for which the failure to obtain the same might have, individually or in the
aggregate, a Material Adverse Effect, have been lawfully and validly obtained by
the Company, except as described in Schedules 3.02, 3.05(d) and 3.09(a) hereto.
All consents, authorizations and approvals described in Schedules 3.02, 3.05(d)
and 3.09(a) will have been lawfully and validly obtained prior to the Closing.

      SECTION 3.17. ABSENCE OF CERTAIN CHANGES. Since the Balance Sheet Date,
except as disclosed in Schedule 3.17, neither the Shareholder nor Interiors has
caused the Company to engage in any transaction

      SECTION 3.18. AFFILIATIONS. Except as disclosed on Schedule 3.18, no
Shareholder, officer, director or key employee of the Company or any associate
or Affiliate of the Company or any of such Persons has, directly or indirectly,
(i) an interest in any Person that (A) furnishes or sells, or proposes to
furnish or sell, services or products that are furnished or sold by the Company
or (B) purchases from or sells or furnishes to, or proposes to purchase from or
sell or furnish to, the Company any goods or services or (ii) a beneficial
interest in any contract or agreement to which the Company is a party or by
which the Company or any of the assets of the Company are bound or affected.

      SECTION 3.19. BROKERS' FEES. Shareholder has retained broker DN Partners
LLC ("BROKER") in connection with the sale of its interest in the Company.
Shareholder is responsible for payment of any finder's fees or any similar
compensation due to Broker in connection with this Agreement or the transactions
contemplated hereby.

      SECTION 3.20. DISCLOSURE. Except as set forth on Schedule 3.20, no
representation or warranty of the Shareholder or Interiors in this Agreement and
no information contained in any Schedule or other writing delivered by the
Shareholder or Interiors pursuant to this Agreement or at the Closing contains
or will contain any untrue statement of a material fact or omits or will omit to
state a material fact required to make the statements herein or therein not
misleading. There is no fact that the Shareholder or Interiors has not disclosed
to Buyer in writing that has

                                       13

<PAGE>

had or, insofar as the Shareholder or Interiors can now foresee, may have a
material adverse effect on the ability of the Shareholder to perform fully this
Agreement.

                                   ARTICLE IV.
                     REPRESENTATIONS AND WARRANTIES OF BUYER

      Buyer hereby represents and warrants to, and covenants and agrees with,
the Shareholder that:

      SECTION 4.01 ORGANIZATION, POWER AND AUTHORITY OF BUYER. Buyer has been
duly organized and is existing as a limited liability company in good standing
under the laws of the State of California with full power and authority to
conduct its business as currently conducted.

      SECTION 4.02 AUTHORIZATION. Buyer has the power and authority to execute
and deliver this Agreement, to consummate the transactions contemplated hereby
and to perform its obligations under this Agreement. The execution and delivery
by Buyer of this Agreement, and the consummation of the transactions
contemplated hereby, have been duly authorized by all necessary action by Buyer.
This Agreement, upon its execution and delivery by Buyer (assuming the due
authorization, execution and delivery hereof by the other parties hereto), will
constitute the legal, valid and binding obligation of Buyer, enforceable against
Buyer in accordance with its terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency and similar laws relating to creditors'
rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

      SECTION 4.03 NO CONFLICT OR VIOLATION. Subject to compliance with the
applicable requirements of the Securities Act and any applicable state
securities laws, the execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby will not (a) conflict
with or result in a breach or violation of any term or provision of, or
constitute a default under (with or without notice or passage of time, or both),
or otherwise give any Person a basis for accelerated or increased rights or
termination or nonperformance under, any indenture, mortgage, deed of trust,
loan or credit agreement, lease, license or other agreement or instrument to
which Buyer is a party or by which Buyer is bound or affected or to which any of
the property or assets of Buyer is bound or affected, (b) result in the
violation of the provisions of the Operating Agreement of Buyer or any Legal
Requirement applicable to or binding upon it, (c) result in the creation or
imposition of any Lien upon any property or asset of Buyer or (d) otherwise
adversely affect the contractual or other legal rights or privileges of Buyer.
Schedule 4.03 sets forth a list of all agreements to which Buyer is a party
requiring the consent of any party thereto to any of the transactions
contemplated hereby.

      SECTION 4.04 CONSENTS AND APPROVALS. No consent, approval, authorization,
license, permit or other action by, or filing with, any governmental or
regulatory authority is required in connection with the execution and delivery
of this Agreement by Buyer or the consummation by Buyer of the transactions
contemplated hereby, except for such consents, approvals, authorizations,
licenses, permits, actions or filings as will have been obtained, taken or filed
at or prior to the Closing.

      SECTION 4.05 BROKERS' FEES. No broker, finder or similar agent has been
employed by or on behalf of Buyer in connection with this Agreement or the
transactions contemplated hereby, and Buyer has not entered into any agreement
or understanding of any kind with any person or entity for the payment of any
brokerage commission, finder's fee or any similar compensation in connection
with this Agreement or the transactions contemplated hereby.

                                       14

<PAGE>

                                   ARTICLE V.
                         REPRESENTATIONS AND WARRANTIES
                               OF THE SHAREHOLDER

      Shareholder hereby represents and warrants to, and covenants and agrees
with, Buyer that:

      SECTION 5.01. OWNERSHIP OF SHARES. Shareholder owns of record and
beneficially 100 Shares, and has, and at all times prior to and as of the
Closing will have, good and marketable title to such Shares free and clear of
all Liens. SECTION 5.02. DELIVERY OF GOOD TITLE. All consents, approvals,
authorizations and orders necessary for the sale and delivery of the Shares to
be sold hereunder have been obtained, and Shareholder has, and immediately prior
to the Closing will have, full right, power, authority and capacity to sell,
assign, transfer and deliver such Shares pursuant to this Agreement.

      SECTION 5.03. EXECUTION AND DELIVERY. Shareholder has the power and
authority to execute and deliver this Agreement, to consummate the transactions
contemplated hereby and to perform its obligations under this Agreement. This
Agreement, upon its execution and delivery by Shareholder (assuming the due
authorization, execution and delivery hereof by the other parties hereto), will
constitute the legal, valid and binding obligation of Shareholder, enforceable
against Shareholder in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency and similar laws relating to
creditors' rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

      SECTION 5.04. NO CONFLICTS. The execution, delivery and performance of
this Agreement by Shareholder and the consummation by Shareholder of the
transactions contemplated hereby will not (a) conflict with or result in a
breach or violation of any term or provision of, or constitute a default (with
or without notice or passage of time, or both) under, or otherwise give any
Person a basis for accelerated or increased rights or termination or
nonperformance under any indenture, mortgage, deed of trust, trust (constructive
and other), loan or credit agreement or other agreement or instrument to which
Shareholder is a party or by which Shareholder or Shareholder's Shares are
bound, (b) result in the violation of any Legal Requirement applicable to or
binding upon Shareholder, (c) result in the creation or imposition of any Lien
upon any property or asset of Shareholder, or (d) otherwise adversely affect the
contractual or other legal rights or privileges of Shareholder.

                                       15

<PAGE>

                                  ARTICLE VI.
                  CONDITIONS TO CONSUMMATION OF SALE OF SHARES

      SECTION 6.01. CONDITIONS TO OBLIGATIONS OF BUYER. Notwithstanding any
other provision of this Agreement, the obligations of Buyer to consummate the
Agreement and the other transactions contemplated hereby shall be subject to the
satisfaction, at or prior to the Closing Date, of the following conditions:

      (a) There shall not be instituted and pending or threatened any Action (i)
challenging the Agreement or otherwise seeking to restrain or prohibit the
consummation of the transactions contemplated hereby, or (ii) seeking to
prohibit the direct or indirect ownership or operation by Buyer of all or a
material portion of the business or assets of the Company, or to compel Buyer or
the Company to dispose of or hold separate all or a material portion of the
business or assets of the Company or Buyer.

      (b) The representations and warranties of Shareholder and Interiors in
this Agreement shall be true and correct in all material respects on and as of
the Closing Date with the same effect as if made on the Closing Date, and the
Shareholder and Interiors shall have complied with all covenants and agreements
and satisfied all conditions on the Company's or its part, as applicable, to be
performed or satisfied on or prior to the Closing Date.

      (c) Buyer shall have received from Shareholder a certificate dated the
Closing Date in substantially the form attached as ANNEX A hereto.

      (d) All authorizations, consents, waivers and approvals by or from third
parties required for the consummation of the transactions contemplated hereby
shall have been obtained and all Liens on the assets and properties of the
Company shall have been released or terminated.

      (e) No act, event or condition shall have occurred after the date hereof
which Buyer determines has had or could reasonably be expected to have a
Material Adverse Effect.

      (f) Buyer shall have concluded (through its representatives, agents,
accountants, legal counsel and other experts) satisfactorily an investigation,
including without limitation a legal and financial review, of the Company and
shall be satisfied in its sole discretion with the results thereof.

      (g) All corporate and other proceedings and actions taken in connection
with the transactions contemplated hereby and all certificates, opinions,
agreements, instruments, releases and documents referenced herein or incident to
the transactions contemplated hereby shall be in form and substance reasonably
satisfactory to Buyer and its counsel.

      (h) Except as otherwise approved by the Buyer, the assets of Company shall
be free and clear of all liens.

      (i) Company shall have received from Shareholder, Interiors and/or its
Affiliates the originals of all outstanding Promissory Notes issued by Company
or by its officers

                                       16

<PAGE>

to Shareholder or to an affiliate of Shareholder marked "cancelled" and Company
shall have agreed to pay all tax obligations owing on account of said
cancellation.

      (j) Shareholder shall have established to the satisfaction of Buyer that
the federal income tax obligations of Company for the tax years ending June 30,
2000 and June 30, 2001 have been paid in full.

      (k) Shareholder shall deliver to Buyer the resignations of all of the
directors of Company effective on the Closing Date.

      (l) Buyer shall have received confirmation that Broker has been paid all
monies owing to it on account of this Agreement.

      (m) The Former Stockholders shall have received a full and unconditional
general release from the Shareholder and Interiors.

      SECTION 6.02. CONDITIONS TO OBLIGATIONS OF THE SHAREHOLDER.
Notwithstanding any other provision of this Agreement, the obligations of the
Shareholder to consummate the Agreement and the other transactions contemplated
hereby shall be subject to the satisfaction, at or prior to the Closing Date, of
the following conditions:

      (a) The representations and warranties of Buyer in this Agreement shall be
true and correct in all material respects on and as of the Closing Date with the
same effect as if made on the Closing Date, and Buyer shall have complied with
all covenants and agreements and satisfied all conditions on its part to be
performed or satisfied on or prior to the Closing Date.

      (b) The Shareholder shall have received a certificate of the Secretary of
Buyer dated the Closing Date in substantially the form attached as ANNEX C
hereto.

      (c) The Shareholder shall have received a certificate of the President of
Buyer in substantially the form attached as ANNEX D hereto.

      (d) No act, event or condition shall have occurred after the date hereof
which Shareholder determines has had or could reasonably be expected to have a
material adverse effect on the business, financial condition, properties,
profitability, prospects or operations of Buyer.

      (e) All proceedings and actions taken in connection with the transactions
contemplated hereby and all certificates, opinions, agreements, instruments,
releases and documents referenced herein or incident to the transactions
contemplated hereby shall be in form and substance reasonably satisfactory to
Shareholder and its counsel.

      (f) The Former Shareholders shall have agreed to the assumption by Buyer
of Interiors' remaining obligations for payment of the purchase price under the
Stock Purchase Agreement dated October 27, 1999, by and between Interiors and
the Former Shareholders.

                                       17

<PAGE>

      (g) Shareholder shall receive from the Former Shareholders written
instructions to the Escrow Holder under the Shareholder Stock Purchase Agreement
to return to Interiors all of the stock certificates of Interiors held by said
Escrow Holder.

      (h) Shareholder shall have received from Company the original of all
outstanding promissory notes payable to Company from Shareholder marked
cancelled.

      (i) Interiors shall have received from the Former Shareholders and from
Buyer the originals of all outstanding Promissory Notes issued by Interiors to
the Former Shareholders or to Buyer pursuant to the Shareholder Stock Purchase
Agreement marked cancelled.

      (j) The Shareholder and Interiors shall have received a full and
unconditional general release from the Former Shareholders.

                                  ARTICLE VII.
                              ADDITIONAL COVENANTS

      SECTION 7.01. EXPENSES. Except as otherwise specifically provided herein,
each party to this Agreement shall bear its own direct and indirect expenses
incurred in connection with the negotiation and preparation of this Agreement
and the consummation and performance of the transactions contemplated hereby,
including, without limitation, all legal fees and fees of any brokers, finders
or similar agents.

      SECTION 7.02. PUBLICITY; EMPLOYEE COMMUNICATIONS. At all times prior to
the Closing Date, Shareholder shall obtain the written consent of Buyer prior to
issuing, or permitting any of the directors, officers, employees or agents of
the Company to issue, any press release or other information to the press,
employees of the Company or any third party with respect to this Agreement or
the transactions contemplated hereby; PROVIDED, HOWEVER, that no party shall be
prohibited from supplying any information to any of is representatives, agents,
attorneys, advisors, financing sources and others to the extent necessary to
complete the transactions contemplated hereby so long as such representatives,
agents, attorneys, advisors, financing sources and others are made aware of and
agree to be bound by the terms of this Section 7.02. Nothing contained in this
Agreement shall prevent any party to this Agreement at any time from furnishing
any required information to any Governmental Entity or authority pursuant to a
Legal Requirement or from complying with its legal or contractual obligations.

      SECTION 7.03. POST-TERMINATION EMPLOYMENT. Shareholder and Interiors
acknowledge and agree that, subject to any written contracts of employment, if
any, after the Closing (a) Buyer shall not be required to employ or retain any
employee of the Company or any other Person, and (b) Buyer, in its sole and
absolute discretion, may cause the Company to retain all, some, or none of such
employees.

                                       18

<PAGE>

                                  ARTICLE VIII.
                        TERMINATION, AMENDMENT AND WAIVER

      SECTION 8.01. TERMINATION. This Agreement may be terminated at any time
prior to the Closing:

      (a) by mutual consent of all of the parties hereto;

      (b) by Shareholder, on the one hand, or by Buyer, on the other hand, by
written notice to the other party or parties hereto if the Agreement shall not
have been consummated on or before January 31, 2002 (or such later date as Buyer
and Shareholder may agree), provided that in the case of a termination under
this clause (b), the party or parties terminating this Agreement shall not then
be in material breach of any of its or their obligations under this Agreement;

      (c) by Buyer if (i) there has been a material misrepresentation, breach of
warranty or breach of covenant by Shareholder and/or Interiors under this
Agreement or (ii) any of the conditions precedent to Closing set forth in
Section 6.01 have not been met on the Closing Date, and, in each case, Buyer is
not then in material default of its obligations hereunder; or

      (d) by Shareholder if (i) there has been a material misrepresentation,
breach of warranty or breach of covenant by Buyer under this Agreement or (ii)
any of the conditions precedent to Closing set forth in Section 6.02 have not
been met on the Closing Date, and, in each case, Shareholder is not then in
material default of its obligations hereunder.

      SECTION 8.02. EFFECT OF TERMINATION.

      (a) Upon termination of this Agreement as provided in Section 8.01(a),
this Agreement shall forthwith become void and there shall be no liability or
obligation on the part of any party hereto or their respective directors,
officers, employees, agents or other representatives.

      (b) In the event of termination of this Agreement as provided in Section
8.01(b), hereof, such termination shall be without prejudice to any rights that
the terminating party or parties may have against the breaching party or parties
or any other Person under the terms of this Agreement or otherwise.

      SECTION 8.03. AMENDMENT. This Agreement may be amended only by a written
instrument executed by each of the parties hereto. Any amendment effected
pursuant to this Section 8.03 shall be binding upon all parties hereto.

      SECTION 8.04. WAIVER. Any term or provision of this Agreement may be
waived in writing at any time by the party or parties entitled to the benefits
thereof. Any waiver effected pursuant to this Section 8.04 shall be binding upon
all parties hereto. No failure to exercise and no delay in exercising any right,
power or privilege shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege preclude the exercise of any
other right, power or privilege. No waiver of any breach of any covenant or
agreement hereunder shall be deemed a waiver of any preceding or subsequent
breach of the same or any other covenant or agreement. The rights and remedies
of each party under this Agreement are in addition to all other rights and
remedies, at law or in equity, that such party may have against the other
parties.

                                       19

<PAGE>

                                  ARTICLE IX.
                                 INDEMNIFICATION

      SECTION 9.01. SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND COVENANTS.

      (a) The representations and warranties of the parties hereto contained in
this Agreement or in any writing delivered pursuant hereto or at the Closing
shall survive the execution and delivery of this Agreement and the Closing and
the consummation of the transactions contemplated hereby (and any examination or
investigation by or on behalf of any party hereto) until the June 30, 2003
(except for claims in respect thereof pending at such time, which shall survive
until finally resolved or settled).

      (b) No Action may be commenced with respect to any representation,
warranty, covenant or agreement in this Agreement, or in any writing delivered
pursuant hereto, unless written notice, setting forth in reasonable detail the
claimed breach thereof, shall be delivered pursuant to Section 10.01 to the
party or parties against whom liability for the claimed breach is charged on or
before the termination of the survival period specified in Section 9.01(a) for
such representation, warranty, covenant or agreement.

      SECTION 9.02. INDEMNIFICATION.

      (a) Shareholder and Interiors each covenant and agree to defend, indemnify
and hold harmless Buyer and each Person who controls Buyer within the meaning of
the Securities Act, and after the Closing, the Company, from and against any
Damages aggregating in excess of $25,000 arising out of or resulting from: (i)
any inaccuracy in or breach of any representation or warranty made by
Shareholder or Interiors in this Agreement or in any writing delivered pursuant
to this Agreement or at the Closing; PROVIDED, HOWEVER, that neither the
Shareholder nor Interiors shall be liable to the Buyer for any breach of any
representation or warranty made by them in Article III hereof with regard to any
fact or circumstance which any of the Buyer, its officers, directors, employees,
agents, affiliates or representatives know of or have reason to know of as of
the Closing Date, or (ii) the failure of Shareholder or Interiors to perform or
observe fully any covenant, agreement or provision to be performed or observed
by Shareholder or Interiors pursuant to this Agreement. The Shareholder and
Interiors shall not be liable for any Damages to the extent that the aggregate
amount thereof which shall be incurred by the Buyer and each Person who controls
Buyer shall be $25,000 or less.

      (b) Buyer covenants and agrees to defend, indemnify and hold harmless
Shareholder from and against any Damages arising out of or resulting from: (i)
any inaccuracy in or breach of any representation or warranty made by Buyer in
this Agreement or in any writing delivered pursuant to this Agreement or at the
Closing; or (ii) the failure by Buyer to perform or observe any covenant,
agreement or condition to be performed or observed by it pursuant to this
Agreement.

      (c) The right to indemnification, payment of damages or other remedy based
on the representations, warranties and covenants, and obligations set forth
herein will not be affected by any investigation conducted, whether before or
after the Closing Date, or the parties' agreement as to any purchase price
adjustments pursuant hereto, with respect to the accuracy or inaccuracy of or

                                       20

<PAGE>

compliance with, any such representation, warranty, covenant or obligation.
Notwithstanding anything in this Article IX to the contrary, each party hereto
shall retain all other rights and remedies to which it may be entitled under
applicable law.

      SECTION 9.03. THIRD PARTY CLAIMS.

      (a) If an Indemnified Party receives notice of the assertion by any third
party of any claim or of the commencement by any such third person of any Action
(any such claim or Action being referred to herein as an "INDEMNIFIABLE CLAIM")
with respect to which another party hereto (an "INDEMNIFYING PARTY") is or may
be obligated to provide indemnification, the Indemnified Party shall promptly
notify the Indemnifying Party in writing (the "CLAIM NOTICE") of the
Indemnifiable Claim; PROVIDED, HOWEVER, that the failure to provide such notice
shall not relieve or otherwise affect the obligation of the Indemnifying Party
to provide indemnification hereunder, except to the extent that the Indemnifying
Party was materially prejudiced by such failure.

      (b) The Indemnifying Party shall have thirty (30) days after receipt of
the Claim Notice to undertake, conduct and control, through counsel of its own
choosing, and at its expense, the settlement or defense thereof, and the
Indemnified Party shall cooperate with the Indemnifying Party in connection
therewith; PROVIDED, HOWEVER, that (i) the Indemnifying Party shall permit the
Indemnified Party to participate in such settlement or defense through counsel
chosen by the Indemnified Party (subject to the consent of the Indemnifying
Party, which consent shall not be unreasonably withheld), provided that the fees
and expenses of such counsel shall not be borne by the Indemnifying Party, and
(ii) the Indemnifying Party shall not settle any Indemnifiable Claim without the
Indemnified Party's consent. So long as the Indemnifying Party is vigorously
contesting any such Indemnifiable Claim in good faith, the Indemnified Party
shall not pay or settle such claim without the Indemnifying Party's consent,
which consent shall not be unreasonably withheld.

      (c) If the Indemnifying Party does not notify the Indemnified Party within
thirty (30) days after receipt of the Claim Notice that it elects to undertake
the defense of the Indemnifiable Claim described therein, the Indemnified Party
shall have the right to contest, settle or compromise the Indemnifiable Claim in
the exercise of its reasonable discretion; PROVIDED, HOWEVER, that the
Indemnified Party shall notify the Indemnifying Party of any compromise or
settlement of any such Indemnifiable Claim.

      (d) Anything contained in this Section 9.03 to the contrary
notwithstanding, Shareholder shall not be entitled to assume the defense for any
Indemnifiable Claim (and shall be liable for the reasonable fees and expenses
incurred by the Indemnified Party in defending such claim) if the Indemnifiable
Claim seeks an order, injunction or other equitable relief or relief for other
than money damages against Buyer or the Company which Buyer determines, after
conferring with its counsel, cannot be separated from any related claim for
money damages and which, if successful, would adversely affect the business,
properties or prospects of Buyer or the Company; PROVIDED, HOWEVER, if such
equitable relief portion of the Indemnifiable Claim can be so separated from
that for money damages, Shareholder shall be entitled to assume the defense of
the portion relating to money damages.

                                       21

<PAGE>

      SECTION 9.04. INDEMNIFICATION NON-EXCLUSIVE. The foregoing indemnification
provisions are in addition to, and not in derogation of, any statutory,
equitable or common-law remedy any party may have for breach of representation,
warranty, covenant or agreement.

                                   ARTICLE X.
                               GENERAL PROVISIONS

      SECTION 10.01. NOTICES. All notices and other communications under or in
connection with this Agreement shall be in writing and shall be deemed given (a)
if delivered personally, upon delivery, (b) if delivered by registered or
certified mail (return receipt requested), upon the earlier of actual delivery
or three (3) days after being mailed, or (c) if given by facsimile, upon
confirmation of transmission by facsimile, in each case to the parties at the
following addresses:

            (a)   If to Buyer addressed to:

                              Homada, LLC
                              3229 East Spring Street, Suite 200
                              Long Beach, California  90806
                              Facsimile: (562) 424-1331

                              Attention: __________________

                              With a copy to:

                              Lorraine L. Loder, Esq.
                              601 West Fifth Street, Eighth Floor
                              Los Angeles, California 90071
                              Facsimile:  (213) 623-1409

            (b)   If to the Shareholder or Interiors, addressed to:

                              Interiors, Inc.
                              320 Washington Street
                              Mt. Vernon, New York 10553-1017
                              Facsimile: (914) 665-5469
                              Attention: Mr. Lawrence Shatsoff

                              With a copy to:

                              Stephen Weiss, Esq.
                              Greenberg Traurig, LLP
                              MetLife Building
                              200 Park Avenue
                              New York, NY 10166

      SECTION 10.02. SEVERABILITY. If any term or provision of this Agreement or
the application thereof to any circumstance shall, in any jurisdiction and to
any extent, be invalid or unenforceable, such term or provision shall be
ineffective as to such jurisdiction to the extent of

                                       22

<PAGE>

such invalidity or unenforceability without invalidating or rendering
unenforceable such term or provision in any other jurisdiction, the remaining
terms and provisions of this Agreement or the application of such terms and
provisions to circumstances other than those as to which it is held invalid or
enforceable.

      SECTION 10.03. ENTIRE AGREEMENT. Except as specifically set forth herein,
this Agreement, including the annexes and schedules attached hereto and other
documents referred to herein, contain the entire understanding of the parties
hereto in respect of their subject matter and supersede all prior and
contemporaneous agreements and understandings, oral and written, among the
parties with respect to such subject matter.

      SECTION 10.04. SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of each of the parties hereto and their respective
successors, heirs and assigns; PROVIDED, HOWEVER, that no party may assign
either this Agreement or any of its rights, interests or obligations hereunder
in whole or in part without the prior written consent of the other parties
hereto, and any such transfer or assignment without said consent shall be void,
AB INITIO. Subject to the immediately preceding sentence, this Agreement is not
intended to benefit, and shall not run to the benefit of or be enforceable by,
any other person or entity other than the parties hereto and their permitted
successors and assigns.

      SECTION 10.05. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all such
counterparts together shall constitute but one and the same Agreement.

      SECTION 10.06. SCHEDULES AND ANNEXES. The schedules and annexes to this
Agreement are incorporated herein and, by this reference, made a part hereof as
if fully set forth at length herein.

      SECTION 10.07. CONSTRUCTION.

      (a) The article, section and subsection headings used herein are inserted
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

      (b) As used in this Agreement, the masculine, feminine or neuter gender,
and the singular or plural, shall be deemed to include the others whenever and
wherever the context so requires.

      (c) For the purposes of this Agreement, unless the context clearly
requires, "or" is not exclusive.

      SECTION 10.08. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws (and not the law of conflicts) of
the State of California.

      SECTION 10.09. ARBITRATION OF DISPUTES.

      (a) At the option of any party hereto, any and all disputes, whether of
law or fact and of any nature whatsoever, shall be decided by binding
arbitration in accordance with the

                                       23

<PAGE>

Commercial Arbitration Rules of Association. If the parties are unable to agree
upon a single arbitrator, the arbitrator shall be a single, independent
arbitrator selected by the Association.

      (b) Any arbitration proceedings hereunder shall be held in Los Angeles,
California.

      (c) The decision of the arbitrator shall be final and binding upon all
parties hereto and all Persons claiming under and through them. The fees and
expenses of the arbitrator shall be paid 50% by Shareholder and 50% by Buyer.

                                       24

<PAGE>

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

                                    HABITAT SOLUTIONS, INC.

                                    By:
                                       -------------------------------
                                          Lawrence Shatsoff
                                          President

                                    INTERIORS, INC.

                                    By:
                                       -------------------------------
                                          Lawrence Shatsoff
                                          Executive Vice President

                                   HOMADA LLC

                                    By:
                                       -------------------------------
                                          Name:
                                          Title:

                                       25

<PAGE><Page>

EXHIBIT NO. 4.1

                              SUREQUEST SYSTEMS, INC.

                         2002 STOCK OPTION AND GRANT PLAN

SureQuest Systems, Inc., a Nevada corporation, (the "Company"), hereby adopts
this 2002  Stock Option and Grant Plan (the "Plan") this 30th day of January,
2002, under which Incentive Stock Options, Non-Qualified Stock Options,
Restricted Stock Awards, and Common Stock in Lieu of Cash Compensation Awards
("Awards") of the Company may be granted from time to time to employees and
consultants of the Company or its subsidiaries, if any. In addition, at the
discretion of the board of directors, awards may from time to time be granted
under this Plan to other individuals who contribute to the success of the
Company or its subsidiaries, if any, and are not employees of the Company,
all on the terms and conditions set forth herein.

SECTION 1.

                   GENERAL PURPOSE OF THE PLAN; DEFINITIONS

The Plan is intended to aid the Company in maintaining and developing a
management team, attracting qualified officers and employees capable of
assisting in the future success of the Company, and rewarding those
individuals who have contributed to the success of the Company. It is
designed to aid the Company in retaining the services of executives and
employees and in attracting new personnel when needed for future operations
and growth and to provide such personnel with an incentive to remain
employees of the Company, to use their best efforts to promote the success of
the Company's business, and to provide them with an opportunity to obtain or
increase a proprietary interest in the Company. It is also designed to permit
the Company to reward those individuals who are not employees of the Company
but who are perceived by management as having contributed to the success of
the Company or who are important to the continued business and operations of
the Company. The above aims will be effectuated through the granting awards,
subject to the terms and conditions of this Plan.

The following terms shall be defined as set forth below:

"Act" means the Securities Exchange Act of 1934, as amended from time to
time.

"Administrator" is defined in Section 2(a).

"Award" or "Awards," except where referring to a particular category of grant
under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Restricted Stock Awards, and Common Stock in Lieu of Cash
Compensation Awards.

"Board" means the Board of Directors of the Company as constituted from time
to time.

"Change of Control" is defined in Section 13.

"Code" means the Internal Revenue Code of 1986, as amended from time to time,
and any successor Code, and related rules, regulations and interpretations.

"Committee" means the Committee of the Board referred to in Section 2.

                                                                          Page 5
<Page>

"Common Stock in Lieu of Cash Compensation Award" means Awards granted
pursuant to Section 7.

"Company" means SureQuest Systems, Inc.., a Nevada corporation, and any
successor thereto.

"Effective Date" means the date on which the Plan is initially approved by
the Board of Directors as set forth in Section 14.

"Fair Market Value" on any given date means the last sale price at which
Stock is traded on such date or, if no Stock is traded on such date, the next
preceding date on which Stock was traded, as reported by Nasdaq Bulletin
Board or, if applicable, the principal stock exchange or, if applicable, any
other national stock exchange on which the Stock is traded or admitted to
trading.

"Incentive Stock Option" means any Stock Option that is intended to qualify
as and is designated in writing in the related Option Award agreement as
intending to constitute an "incentive stock option" as defined in Section 422
of the Code.

"Independent Director" means a member of the Board who is not also an
employee of the Company or any Subsidiary.

"Non-Qualified Stock Option" means any Stock Option that is not an Incentive
Stock Option.

"Restricted Stock Award" means Awards granted pursuant to Section 6.

"Stock" means the Common Stock, no par value, of the Company, subject to
adjustments pursuant to Section 3.

"Stock Option" means any option to purchase shares of Stock granted pursuant
to Section 5.

"Subsidiary" means any corporation or other entity (other than the Company)
in any unbroken chain of corporations or other entities beginning with the
Company if each of the corporations or entities (other than the last
corporation or entity in the unbroken chain) owns stock or other interests
possessing 50% or more of the economic interest or the total combined voting
power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

SECTION 2.

              ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT
                       PARTICIPANTS AND DETERMINE AWARDS

(a) COMMITTEE. The Plan shall be administered by either the Board or a
committee of not fewer than two (2) Independent Directors (in either case,
the "Administrator"). Each member of the Committee shall be a "non-employee
director" within the meaning of Rule 16b-3(b)(3)(i) promulgated under the
Act, or any successor definition under said rule. From and after the date the
Company becomes subject to Section 162(m) of the Code with respect to
compensation earned under this Plan, each member of the Committee shall also
be an "outside director" within the meaning of Section 162(m) of the Code and
the regulations promulgated thereunder. The interpretation and construction
of the terms of the Plan by the Board or a duly authorized committee shall be
final and binding on all participants in the Plan absent a showing of
demonstrable error. No member of the Board or duly authorized committee shall
be liable for any action taken or determination made in good faith with
respect to the Plan.

                                                                          Page 6
<Page>

(b) POWERS OF ADMINISTRATOR. The Administrator shall have the power and
authority to grant Awards consistent with the terms of the Plan, including
the power and authority:

(i) to select the individuals to whom Awards may from time to time be
granted;

(ii) to determine the time or times of grant, and the extent, if any, of
Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock
Awards, and Common Stock in Lieu of Cash Compensation Awards or any
combination of the foregoing, granted to any one or more participants;

(iii) to determine the number of shares of Stock to be covered by any Award;

(iv) to determine and modify from time to time the terms and conditions,
including restrictions, not inconsistent with the terms of the Plan, of any
Award, which terms and conditions may differ among individual Awards and
participants, and to approve the form of written instruments evidencing the
Awards;

(v) to accelerate at any time the exercisability or vesting of all or any
portion of any Award;

(vi) subject to the provisions of Section 5(a)(iii), to extend at any time
the post-termination period in which Stock Options may be exercised;

(vii) to determine at any time whether, to what extent, and under what
circumstances Stock and other amounts payable with respect to an Award shall
be deferred either automatically or at the election of the participant and
whether and to what extent the Company shall pay or credit amounts
constituting deemed interest (at rates determined by the Administrator) or
dividends or deemed dividends on such deferrals; and

(viii) at any time to adopt, alter and repeal such rules, guidelines and
practices for administration of the Plan and for its own acts and proceedings
as it shall deem advisable; to interpret the terms and provisions of the Plan
and any Award (including related written instruments); to make all
determinations it deems advisable for the administration of the Plan; to
decide all disputes arising in connection with the Plan; and to otherwise
supervise the administration of the Plan.

All decisions and interpretations of the Administrator shall be made in the
Administrator's sole and absolute discretion and shall be final and binding
on all persons, including the Company and Plan participants.

(c) DELEGATION OF AUTHORITY TO GRANT AWARDS. The Administrator may delegate
to the Chief Executive Officer and/or the President of the Company (provided
that such officer is a member of the Board of Directors) all or part of the
Administrator's authority and duties with respect to Awards, including the
granting thereof, to individuals who are not subject to the reporting and
other provisions of Section 16 of the Act or "covered employees" within the
meaning of Section 162(m) of the Code, PROVIDED, however, that the number of
shares of Stock underlying Awards made by the Chief Executive Officer and/or
the President shall not exceed, in the aggregate,  twenty-five percent (25%)
of the number of shares of Stock available for issuance under the Plan.

                                                                          Page 7
<Page>

SECTION 3.

                  STOCK ISSUABLE UNDER THE PLAN; TERM OF PLAN;
                 RECAPITALIZATIONS; MERGERS; SUBSTITUTE AWARDS

(a) STOCK ISSUABLE. The maximum number of shares of Stock reserved and
available for issuance under the Plan initially shall be 5,000,000 shares of
Stock. In addition, if any portion of an Award is forfeited, cancelled, or
reacquired by the Company or is satisfied without the issuance of Stock or
otherwise terminated, the shares of Stock underlying such portion of the
Award shall be added back to the shares of Stock available for issuance under
the Plan. Subject to such overall limitation, shares of Stock may be issued
up to such maximum number pursuant to any type or types of Award. The shares
available for issuance under the Plan may be authorized but unissued shares
of Stock or shares of Stock reacquired by the Company.

(b) TERM OF PLAN. No Awards shall be made after January 1, 2012.
Notwithstanding the foregoing, Stock Options granted hereunder may, except as
otherwise expressly provided herein, be exercisable for up to ten years after
the date of grant.

(c) RECAPITALIZATIONS. Subject to the provisions of Section 12, if, through
or as a result of any merger, consolidation, sale of all or substantially all
of the assets of the Company, reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other
similar transaction, the outstanding shares of Stock are increased or
decreased or are exchanged for a different number or kind of shares or other
securities of the Company, or additional shares or new or different shares or
other securities of the Company or other non-cash assets are distributed with
respect to such shares of Stock or other securities, the Administrator may
make an appropriate or proportionate adjustment in (i) the maximum number of
shares reserved for issuance under the Plan, (ii) the number of Stock Options
that can be granted to any one individual participant, (iii) the number and
kind of shares or other securities subject to any then outstanding Awards
under the Plan, and (iv) the price for each share subject to any then
outstanding Stock Options under the Plan, without changing the aggregate
exercise price (i.e., the exercise price multiplied by the total number of
Stock Options) as to which such Stock Options remain exercisable. The
adjustment by the Administrator shall be final, binding and conclusive. No
fractional shares of Stock shall be issued under the Plan resulting from any
such adjustment, but the Administrator in its discretion may make a cash
payment in lieu of fractional shares.

(d) SUBSTITUTE AWARDS. The Administrator may grant Awards under the Plan in
substitution for stock and stock based awards held by employees of another
corporation who become employees of the Company or a Subsidiary as the result
of a merger or consolidation of the employing corporation with the Company or
a Subsidiary or the acquisition by the Company or a Subsidiary of property or
stock of the employing corporation. The Administrator may direct that the
substitute awards be granted on such terms and conditions as the
Administrator considers appropriate in the circumstances.

SECTION 4.

                                  ELIGIBILITY

Awards under the Plan may be granted to employees, including officers, and
directors of the Company or its subsidiaries, as may be existing from time to
time, and to other individuals who are not employees of the Company, but
performed bona fide services to the Company, as may be deemed in the best
interest of the Company by the Board or a duly authorized committee. These

                                                                          Page 8
<Page>

individuals may be referred to as consultants or key persons.  Such services
to the Company or a subsidiary shall not be in connection with the offer or
sale of securities in a capital-raising transaction. Such Awards shall be in
the amounts, and shall have the rights and be subject to the restrictions, as
may be determined by the Board or a duly authorized committee, all as may be
within the general provisions of this Plan.

SECTION 5.

                                 STOCK OPTIONS

Any Stock Option granted under the Plan shall be in such form as the
Administrator may from time to time approve. Stock Options granted under the
Plan may be either Incentive Stock Options or Non-Qualified Stock Options.
Incentive Stock Options may be granted only to employees of the Company or
any Subsidiary that is a "subsidiary corporation" within the meaning of
Section 424(f) of the Code. To the extent that any Option does not qualify as
an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option.

(a) STOCK OPTIONS GRANTED TO ELIGIBLE PERSON. The Administrator in its
discretion may grant Stock Options to those persons eligible to receive
Optons under this plan. Stock Options granted pursuant to this Section 5(a)
shall be subject to the following terms and conditions and shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan,
as the Administrator shall deem desirable. If the Administrator so
determines, Stock Options may be granted in lieu of cash compensation at the
participant's election, subject to such terms and conditions as the
Administrator may establish, as well as in addition to other compensation.

(i) EXERCISE PRICE. The exercise price per share for the Stock covered by a
Stock Option granted pursuant to this Section 5(a) shall be determined by the
Administrator at the time of grant.

(ii) OPTION TERM. The term of each Stock Option shall be fixed by the
Administrator, but no Incentive Stock Option shall be exercisable more than
ten years after the date the option is granted. If an employee owns or is
deemed to own (by reason of the attribution rules of Section 424(d) of the
Code) more than 10% of the combined voting power of all classes of stock of
the Company or any parent or subsidiary corporation and an Incentive Stock
Option is granted to such employee, the term of such option shall be no more
than five years from the date of grant. The term of the Option, once it is
granted, may be reduced only as provided for in this Plan and under the
written provisions of the Option.  In no event may an Option be exercised
after the expiration of its term.

(iii) EXERCISABILITY; RIGHTS OF A STOCKHOLDER. Stock Options shall become
exercisable at such time or times, whether or not in installments, as shall
be determined by the Administrator at or after the grant date; PROVIDED,
however, that (A) Stock Options granted in lieu of compensation shall be
exercisable in full as of the grant date unless the Administrator otherwise
provides in the Award agreement, and (B) all Stock Options must be exercised
within three (3) years of the date they become exercisable or they shall
automatically expire, and PROVIDED FURTHER that (1) no holder of a Stock
Option may exercise any Stock Options during any period in which such person
is in breach of any noncompetition agreement or covenant such person has with
the Company as determined by the Administrator, and (2) if any such holder
fails to cure any such breach within thirty (30) days of written notice
thereof, all

                                                                          Page 9
<Page>

Stock Options held by such person shall thereupon be forfeited. The
Administrator may at any time accelerate the exercisability of all or any
portion of any Stock Option. An optionee shall have the rights of a
stockholder only as to shares acquired upon the exercise of a Stock Option
and not as to unexercised Stock Options.

(iv) METHOD OF EXERCISE. Stock Options may be exercised in whole or in part,
by giving written notice of exercise to the Company, specifying the number of
shares to be purchased. Payment of the purchase price may be made by one or
more of the following methods to the extent provided in the Option Award
agreement:

(A) In cash, by certified or bank check or other instrument acceptable to the
Administrator;

(B) In the form of shares of Stock that are not then subject to restrictions
under any Company plan and that have been beneficially owned by the optionee
for at least six months, if permitted by the Administrator in its discretion.
Such surrendered shares shall be valued at Fair Market Value on the exercise
date;

(C) By the optionee delivering to the Company a properly executed exercise
notice together with irrevocable instructions to a broker to promptly deliver
to the Company cash or a check payable and acceptable to the Company to pay
the purchase price; provided that in the event the optionee chooses to pay
the purchase price as so provided, the optionee and the broker shall comply
with such procedures and enter into such agreements of indemnity and other
agreements as the Administrator shall prescribe as a condition of such
payment procedure; or

(D) By the optionee delivering to the Company a promissory note if the
Administrator has expressly authorized the loan of funds to the optionee for
the purpose of enabling or assisting the optionee to effect the exercise of
his Stock Option; PROVIDED that any such promissory note shall bear interest
at market rates, as determined by the Administrator, if the promissory note
exceeds sixty (60) days. Payment instruments will be received subject to
collection.

The delivery of certificates representing the shares of Stock to be purchased
pursuant to the exercise of a Stock Option will be contingent upon receipt
from the optionee (or a purchaser acting in his stead in accordance with the
provisions of the Stock Option) by the Company of the full purchase price for
such shares and the fulfillment of any other requirements contained in the
Stock Option or applicable provisions of laws.

(v) ANNUAL LIMIT ON INCENTIVE STOCK OPTIONS. To the extent required for
"incentive stock option" treatment under Section 422 of the Code, the
aggregate Fair Market Value (determined as of the time of grant) of the
shares of Stock with respect to which Incentive Stock Options granted under
this Plan and any other plan of the Company or its parent and subsidiary
corporations become exercisable for the first time by an optionee during any
calendar year shall not exceed $100,000. To the extent that any Stock Option
exceeds this limit, it shall constitute a Non-Qualified Stock Option.

(c) NON-TRANSFERABILITY OF OPTIONS. Except as otherwise set forth in the
following sentence, no Stock Option shall be transferable by the optionee
other than by will or by the laws of descent and distribution and all Stock
Options shall be exercisable, during the optionee's lifetime, only by the
optionee. Notwithstanding the foregoing, an optionee may transfer, without
consideration for the transfer, his Non-Qualified Stock Options to members of
his family, to trusts for the benefit of such family members, or to
partnerships in which such family members are the only partners, PROVIDED
that the transferee agrees in writing with the Company to be bound by all of
the terms and conditions of this Plan and the applicable option agreement.

                                                                         Page 10
<Page>

(d) TERMINATION. Except as may otherwise be provided by the Administrator
either in the Award agreement, or subject to Section 15 below, in writing
after the Award agreement is issued, an optionee's rights in all Stock
Options shall automatically terminate sixty (60) days following optionee's
termination of employment (or cessation of business relationship) with the
Company and its Subsidiaries for any reason.

SECTION 6.

                              RESTRICTED STOCK AWARDS

(a) NATURE OF RESTRICTED STOCK AWARDS. A Restricted Stock Award is an Award
entitling the recipient to acquire, at par value or such other higher
purchase price determined by the Administrator, shares of Stock subject to
such restrictions and conditions as the Administrator may determine at the
time of grant ("Restricted Stock"). Conditions may be based on continuing
employment (or other business relationship) and/or achievement of
pre-established performance goals and objectives. The grant of a Restricted
Stock Award is contingent on the participant executing the Restricted Stock
Award agreement. The terms and conditions of each such agreement shall be
determined by the Administrator, and such terms and conditions may differ
among individual Awards and participants.

(b) RIGHTS AS A STOCKHOLDER. Upon execution of the Restricted Stock Award
agreement and paying any applicable purchase price, a participant shall have
the rights of a stockholder with respect to the voting of the Restricted
Stock, subject to such terms and conditions as may be contained in the
Restricted Stock Award agreement. Unless the Administrator shall otherwise
determine, certificates evidencing the Restricted Stock shall remain in the
possession of the Company until such Restricted Stock is vested as provided
in Section 6(d) below, and the participant shall be required, as a condition
of the grant, to deliver to the Company a stock power endorsed in blank.

(c) RESTRICTIONS. Restricted Stock may not be sold, assigned, transferred,
pledged or otherwise encumbered or disposed of except as specifically
provided herein or in the Restricted Stock Award agreement. If a
participant's employment (or other business relationship) with the Company
and its Subsidiaries terminates for any reason, the Company shall have the
right to repurchase Restricted Stock that has not vested at the time of
termination at its original purchase price, from the participant or the
participant's legal representative. The Company must give notice within
ninety (90) days  after termination of employment if the Company desire to
exercise this option.  The Company may repurchase the shares with a note
payable in equal annual installments over a five year period with interest at
the prime rate at the time of repurchase.

(d) VESTING OF RESTRICTED STOCK. The Administrator at the time of grant shall
specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the non-
transferability of the Restricted Stock and the Company's right of repurchase
or forfeiture shall lapse.  Additionally, at the Administrator's discretion,
the vesting can be accelerated upon the achievement of specified performance
goals. Subsequent to such date or dates and/or the attainment of such
pre-established performance goals, objectives and other conditions, the
shares on which all restrictions have lapsed shall no longer be Restricted
Stock and shall be deemed "vested." Except as may otherwise be provided by
the Administrator either in the Award agreement or, subject to Section 15
below, in writing after the Award agreement is issued, a participant's rights
in any shares of Restricted Stock that have not vested

                                                                         Page 11
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shall automatically terminate upon the participant's termination of
employment (or other business relationship) with the Company and its
Subsidiaries for any reason and such shares shall be subject to the Company's
right of repurchase as provided in Section 6(c) above.

(e) WAIVER, DEFERRAL AND REINVESTMENT OF DIVIDENDS. The Restricted Stock
Award agreement may require or permit the immediate payment, waiver, deferral
or reinvestment (in the form of additional Restricted Stock) of dividends
paid on the Restricted Stock.

(f) LIMIT ON RESTRICTED STOCK AWARDS. No more than 25% of the shares of Stock
reserved for issuance under the Plan may, in any Plan year, be used for
Restricted Stock Awards.

SECTION 7.

               COMMON STOCK IN LIEU OF CASH COMPENSATION AWARDS

(a) GRANTS OF COMMON STOCK PAYABLE IN LIEU OF CASH. The Administrator may
grant shares of Stock available for issuance under the Plan to an eligible
participant in lieu of cash compensation earned by the participant under a
short- or long-term incentive plan of the Company (an "Other Incentive Plan),
PROVIDED, however, that the award made under the Other Incentive Plan allows
for satisfaction of such award by payment of Stock in lieu of cash
compensation. Additionally, shares of Stock may be granted if specified
performance goals established by the Administrator are met, provided that the
performance goals so established meet the requirements of Section 162(m) of
the Code and that the Administrator certifies that the performance goals have
been met. In the event of a grant of shares of Stock in lieu of cash
compensation, such grant shall be conditioned upon the participant's
irrevocable election to waive receipt of all or a portion of the cash
compensation otherwise payable, which waiver shall constitute payment in full
by such participant for the shares of Stock granted in lieu of such cash
compensation. All shares of Stock granted under this Section 7 shall be
without restriction.

(b) DATE OF GRANT. Stock granted in lieu of cash compensation shall be
granted to each participant on the date the waived cash compensation would
otherwise by paid, provided, however, that with respect to a participant who
is subject to Section 16 of the Act, if such grant date is not at least six
months and one day from the date of the election, the grant shall be delayed
until the date which is six months and one day from the date of the election
(or the next following business day, if such date is not a business day) to
the extent necessary to conform to the requirements for exempt purchases
under Rule 16b-3 of the Act.

(c) NUMBER OF SHARES. The number of shares of Stock granted in lieu of cash
compensation shall be determined by dividing the amount of the waived cash
compensation by the Fair Market Value of the Stock on the date the Stock is
granted. Such Stock shall be granted for the whole number of shares so
determined; the value of any fractional share shall be paid in cash.

SECTION 8.

                                TAX WITHHOLDING

(a) PAYMENT BY PARTICIPANT. Each participant shall, no later than the date as
of which the value of an Award or of any Stock or other amounts received
thereunder first becomes

                                                                         Page 12
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includable in the gross income of the participant for Federal income tax
purposes, pay to the Company, or make arrangements satisfactory to the
Administrator regarding payment of, any Federal, state, or local taxes of any
kind required by law to be withheld with respect to such income. The Company
and its Subsidiaries shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to the
participant. The Company's obligation to deliver stock certificates to any
participant is subject to and conditioned on tax obligations being satisfied
by the participant.

(b) PAYMENT IN STOCK. Subject to approval by the Administrator, a participant
may elect to have such tax withholding obligation satisfied, in whole or in
part, by (i) authorizing the Company to withhold from shares of Stock to be
issued pursuant to any Award a number of shares with an aggregate Fair Market
Value (as of the date the withholding is effected) that would satisfy the
withholding amount due, or (ii) transferring to the Company shares of Stock
owned by the participant with an aggregate Fair Market Value (as of the date
the withholding is effected) that would satisfy the withholding amount due.

SECTION 9.

                        TRANSFER, LEAVE OF ABSENCE, ETC.

For purposes of the Plan, the following events shall not be deemed a
termination of employment:

(a) a transfer to the employment of the Company from a Subsidiary or from the
Company to a Subsidiary, or from one Subsidiary to another; or

(b) an approved leave of absence for military service or sickness, or for any
other purpose approved by the Company, if the employee's right to re-
employment is guaranteed either by a statute or by contract or under the
written policy pursuant to which the leave of absence was granted or if the
Administrator otherwise so provides in writing.

SECTION 10.

                          AMENDMENTS AND TERMINATION

The Board may, at any time, amend or discontinue the Plan, and the
Administrator may, at any time, amend or cancel any outstanding Award for the
purpose of satisfying changes in law or for any other lawful purpose, but no
such action shall adversely affect rights under any outstanding Award without
the holder's written consent. The Administrator may provide substitute Awards
at the same or reduced exercise or purchase price or with no exercise or
purchase price in a manner not inconsistent with the terms of the Plan, but
such price, if any, must satisfy the requirements which would apply to the
substitute or amended Award if it were then initially granted under this
Plan, but no such action shall adversely affect rights under any outstanding
Award without the holder's written consent. If and to the extent determined
by the Administrator to be required by (a) the Code to ensure that Incentive
Stock Options granted under the Plan are qualified under Section 422 of the
Code or ensure that compensation earned under Stock Options granted under the
Plan qualifies as performance-based compensation under Section 162(m) of the
Code, if and to the extent intended to so qualify, or (b) the rules of the
Nasdaq bulletin board Stock Market, Plan amendments shall be subject to
approval by the Company's stockholders entitled to vote at a meeting of
stockholders. Nothing in this Section 15 shall limit the Board's authority to
take any action permitted pursuant to Section 3(c) or 3(d).

                                                                         Page 13
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SECTION 11.

                                 STATUS OF PLAN

Unless the Administrator shall otherwise expressly determine in writing, with
respect to the portion of any Award which has not been exercised and any
payments in cash, Stock or other consideration not received by a participant,
a participant shall have no rights greater than those of a general creditor
of the Company. In its sole discretion, the Administrator may authorize the
creation of trusts or other arrangements to meet the Company's obligations to
deliver Stock or make payments with respect to Awards hereunder, provided
that the existence of such trusts or other arrangements is consistent with
the foregoing sentence.

SECTION 12.

                     CHANGE OF CONTROL AND MERGER PROVISIONS

(a) In contemplation of and subject to the consummation of a consolidation or
merger or sale of all or substantially all of the assets of the Company in
which outstanding shares of Stock are exchanged for securities, cash or other
property of an unrelated corporation or business entity or in the event of a
liquidation or dissolution of the Company or in the event of a corporate
reorganization of the Company (in each case, a "Transaction"), the Board, or
the board of directors of any corporation or other entity assuming the
obligations of the Company, may, in its discretion, take any one or more of
the following actions, as to outstanding Awards: (i) provide that such Awards
shall be assumed or equivalent awards shall be substituted, by the acquiring
or succeeding corporation or other entity (or an affiliate thereof), and/or
(ii) upon written notice to the participants, provide that all Awards will
terminate immediately prior to the consummation of the Transaction. In the
event that, pursuant to clause (ii) above, Awards will terminate immediately
prior to the consummation of the Transaction, all vested Awards, other than
Options, shall be fully settled in cash or in kind at such appropriate
consideration as determined by the Administrator in its sole discretion after
taking into account any and all consideration payable per share of Stock
pursuant to the Transaction (the "Transaction Price") and all Stock Options
shall be fully settled, in cash or in kind, in an amount equal to the
difference between (A) the Transaction Price times the number of shares of
Stock subject to such outstanding Stock Options (to the extent then
exercisable at prices not in excess of the Transaction Price) and (B) the
aggregate exercise price of all such outstanding Stock Options. In addition,
the Board, or the board of directors of any corporation or other entity
assuming the obligations of the Company, may, in its discretion, permit each
participant, within a specified period determined by the Board prior to the
consummation of the Transaction, to exercise all outstanding Stock Options,
including those that are not then exercisable, subject to the consummation of
the Transaction.

(b) Upon the occurrence of a Change of Control as defined in Section 17(c)
below, unless otherwise specified in the Award instrument, unless otherwise
determined by the Board in office immediately prior to such Change of Control
or specified in the Plan Award instrument, each Award outstanding shall be
accelerated, such that all Stock Options shall become fully exercisable and
the restricted period on all shares of Restricted Stock shall terminate
immediately.

(c) "Change of Control" shall be defined as any "person," as such term is
used in Sections 13(d) and 14(d) of the Act (other than the Company, any of
its Subsidiaries, any "affiliate" or "associate" (as such terms are defined
in Rule 12b-2 under the Act) of the foregoing persons, or any trustee,
fiduciary or other person or entity holding securities under any employee
benefit

                                                                         Page 14
<Page>

plan or trust of the Company or any of its Subsidiaries), together with all
"affiliates" and "associates" (as such terms are defined in Rule 12b-2 under
the Act) of such person, shall become the "beneficial owner" (as such term is
defined in Rule 13d-3 under the Act), directly or indirectly, of securities
of the Company representing 25% or more of the combined voting power of the
Company's then outstanding securities having the right to vote in an election
of the Company's Board of Directors ("Voting Securities") (other than as a
result of an acquisition of securities directly from the Company).

Notwithstanding the foregoing, a "Change of Control" shall not be deemed to
have occurred for purposes of the foregoing paragraph solely as the result of
an acquisition of securities by the Company which, by reducing the number of
shares of Voting Securities outstanding, increases the proportionate number
of shares of Voting Securities beneficially owned by any person (as defined
in the foregoing paragraph to 25% or more of the combined voting power of all
then outstanding Voting Securities; PROVIDED, however, that if such person
shall thereafter become the beneficial owner of any additional shares of
Voting Securities (other than pursuant to a stock split, stock dividend, or
similar transaction or as a result of an acquisition of securities directly
from the Company), then a "Change of Control" shall be deemed to have
occurred for purposes of the foregoing paragraph.

SECTION 13.

                               GENERAL PROVISIONS

(a) NO DISTRIBUTION; COMPLIANCE WITH LEGAL REQUIREMENTS. The Administrator
may require each person acquiring Stock pursuant to an Award to represent to
and agree with the Company in writing that such person is acquiring the
shares without a view to distribution thereof. No shares of Stock shall be
issued pursuant to an Award until all applicable securities law and other
legal and stock exchange or similar requirements have been satisfied. The
Administrator may require the placing of such stop-orders and restrictive
legends on certificates for Stock and Awards as it deems appropriate.

(b) DELIVERY OF STOCK CERTIFICATES. Stock certificates to be delivered to
participants under this Plan shall be deemed delivered for all purposes when
the Company or a stock transfer agent of the Company shall have mailed such
certificates in the United States mail, addressed to the participant, at the
participant's last known address on file with the Company.

(c) OTHER COMPENSATION ARRANGEMENTS; NO EMPLOYMENT RIGHTS. Nothing contained
in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, including trusts, and such arrangements may be
either generally applicable or applicable only in specific cases. The
adoption of this Plan and the grant of Awards shall not confer upon any
employee any right to continued employment with the Company or any Subsidiary
and shall not interfere in any way with the right of the Company or any
Subsidiary to terminate the employment of any of its employees at any time.

(d) TRADING POLICY RESTRICTIONS. Sale of Stock aquired pursuant to an Option
or other Awards under the Plan shall be subject to such Company
insider-trading-policy-related restrictions, terms and conditions as may be
established by the Administrator, or in accordance with policies set by the
Administrator, from time to time.

                                                                         Page 15
<Page>

SECTION 14.

                             EFFECTIVE DATE OF PLAN

The Plan shall become effective immediately on adoption by the board of
directors of the Company (the "Board")

SECTION 15.

                                 GOVERNING LAW

This Plan and all Awards and actions taken thereunder shall be governed by,
and construed in accordance with, the laws of the State of Nevada, applied
without regard to conflict of law principles.

DATE APPROVED BY BOARD OF DIRECTORS: January 30, 2002

DATE APPROVED BY SHAREHOLDERS: _________________

                                                                         Page 16

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