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EXHIBIT 10.1

                                   UWINK, INC.
                            2004 STOCK INCENTIVE PLAN

1. PURPOSE OF PLAN.

         The purpose of the uWink, Inc. 2004 Stock Incentive Plan (the "Plan")
is to advance the interests of uWink, Inc. (the "Company") and its shareholders
by enabling the Company and its Subsidiaries to attract and retain qualified
individuals through opportunities for equity participation in the Company, and
to reward those individuals who contribute to the Company's achievement of its
economic objectives.

2. DEFINITIONS.

         The following terms will have the meanings set forth below, unless the
context clearly otherwise requires:

         2.1 "BOARD" means the Company's Board of Directors.

         2.2 "BROKER EXERCISE NOTICE" means a written notice pursuant to which a
Participant, upon exercise of an Option, irrevocably instructs a broker or
dealer to sell a sufficient number of shares or loan a sufficient amount of
money to pay all or a portion of the exercise price of the Option and/or any
related withholding tax obligations and remit such sums to the Company and
directs the Company to deliver stock certificates to be issued upon such
exercise directly to such broker or dealer or their nominee.

         2.3 "CAUSE" means (i) dishonesty, fraud, misrepresentation,
embezzlement or deliberate injury or attempted injury, in each case related to
the Company or any Subsidiary, (ii) any unlawful or criminal activity of a
serious nature, (iii) any intentional and deliberate breach of a duty or duties
that, individually or in the aggregate, are material in relation to the
Participant's overall duties, (iv) any material breach of any confidentiality or
noncompete agreement entered into with the Company or any Subsidiary, or (v)
with respect to a particular Participant, any other act or omission that
constitutes "cause" as may be defined in any employment, consulting or similar
agreement between such Participant and the Company or any Subsidiary.

         2.4 "CHANGE IN CONTROL" means an event described in Section 11.1 of the
Plan.

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

         2.6 "COMMITTEE" means the group of individuals administering the Plan,
as provided in Section 3 of the Plan.

         2.7 "COMMON STOCK" means the common stock of the Company, par value
$0.001 per share, or the number and kind of shares of stock or other securities
into which such Common Stock may be changed in accordance with Section 4.3 of
the Plan.

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         2.8 "DISABILITY" means the disability of the Participant such as would
entitle the Participant to receive disability income benefits pursuant to the
long-term disability plan of the Company or Subsidiary then covering the
Participant or, if no such plan exists or is applicable to the Participant, the
permanent and total disability of the Participant within the meaning of Section
22(e)(3) of the Code.

         2.9 "EFFECTIVE DATE" means February 24, 2004 or such later date as the
Plan is initially approved by the Company's shareholders.

         2.10 "ELIGIBLE RECIPIENTS" means all employees, officers, directors,
consultants and advisors of the Company or any Subsidiary, including
non-employee independent contractors who provide to the Company or any
Subsidiary bona fide services that are traditionally performed by an employee in
consideration for compensation that constitutes the primary source of such
person's annual earned income.

         2.11 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         2.12 "FAIR MARKET VALUE" means, with respect to the Common Stock, as of
any date: (i) the mean between the reported high and low sale prices of the
Common Stock at the end of the regular trading session, if the Common Stock is
listed, admitted to unlisted trading privileges, or reported on any national
securities exchange or on the Nasdaq National Market on such date (or, if no
shares were traded on such day, as of the next preceding day on which there was
such a trade); or (ii) if the Common Stock is not so listed, admitted to
unlisted trading privileges, or reported on any national exchange or on the
Nasdaq National Market, the closing bid price as of such date at the end of the
regular trading session, as reported by the Nasdaq SmallCap Market, OTC Bulletin
Board, the Bulletin Board Exchange (BBX) or the National Quotation Bureaus,
Inc., or other comparable service; or (iii) if the Common Stock is not so listed
or reported, such price as the Committee determines in good faith in the
exercise of its reasonable discretion.

         2.13 "INCENTIVE AWARD" means an Option, Restricted Stock Award or
Unrestricted Stock Award granted to an Eligible Recipient pursuant to the Plan.

         2.14 "INCENTIVE STOCK OPTION" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Section 6 of the Plan that
qualifies as an "incentive stock option" within the meaning of Section 422 of
the Code.

         2.15 "NON-STATUTORY STOCK OPTION" means a right to purchase Common
Stock granted to an Eligible Recipient pursuant to Section 6 of the Plan that
does not qualify as an Incentive Stock Option.

         2.16 "OPTION" means an Incentive Stock Option or a Non-Statutory Stock
Option.

         2.17 "PARTICIPANT" means an Eligible Recipient who receives one or more
Incentive Awards under the Plan.

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         2.18 "PERFORMANCE CRITERIA" means the performance criteria that may be
used by the Committee in granting Performance Stock Awards contingent upon
achievement of such performance goals as the Committee may determine in its sole
discretion. The Committee may select one criterion or multiple criteria for
measuring performance, and the measurement may be based upon Company, Subsidiary
or business unit performance, or the individual performance of the Eligible
Recipient, either absolute or by relative comparison to other companies, other
Eligible Recipients or any other external measure of the selected criteria.

         2.19 "PERFORMANCE STOCK AWARDS" means an award of Common Stock granted
to an Eligible Recipient pursuant to Section 8 of the Plan and which may be
subject to the future achievement of Performance Criteria or be free of any
performance or vesting conditions.

         2.20 "PREVIOUSLY ACQUIRED SHARES" means shares of Common Stock that are
already owned by the Participant or, with respect to any Incentive Award, that
are to be issued upon the grant, exercise or vesting of such Incentive Award.

         2.21 "RESTRICTED STOCK AWARD" means an award of Common Stock granted to
an Eligible Recipient pursuant to Section 7 of the Plan that is subject to the
restrictions on transferability and the risk of forfeiture imposed by the
provisions of such Section 7.

         2.22 "RETIREMENT" means normal or approved early termination of
employment or service pursuant to and in accordance with the regular
retirement/pension plan or practice of the Company or Subsidiary then covering
the Participant, provided that if the Participant is not covered by any such
plan or practice, the Participant will be deemed to be covered by the Company's
plan or practice for purposes of this determination.

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

         2.24 "SUBSIDIARY" means any entity that is directly or indirectly
controlled by the Company or any entity in which the Company has a significant
equity interest, as determined by the Committee.

3. PLAN ADMINISTRATION.

         3.1 THE COMMITTEE. The Plan will be administered by the Board or by a
committee of the Board. So long as the Company has a class of its equity
securities registered under Section 12 of the Exchange Act, any committee
administering the Plan will consist solely of two or more members of the Board
who are "non-employee directors" within the meaning of Rule 16b-3 under the
Exchange Act. Such a committee, if established, will act by majority approval of
the members (unanimous approval with respect to action by written consent), and
a majority of the members of such a committee will constitute a quorum. As used
in the Plan, "Committee" will refer to the Board or to such a committee, if
established. To the extent consistent with applicable corporate law of the
Company's jurisdiction of incorporation, the Committee may delegate to any
officers of the Company the duties, power and authority of the Committee under
the Plan pursuant to such conditions or limitations as the Committee may

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establish; provided, however, that only the Committee may exercise such duties,
power and authority with respect to Eligible Recipients who are subject to
Section 16 of the Exchange Act. The Committee may exercise its duties, power and
authority under the Plan in its sole and absolute discretion without the consent
of any Participant or other party, unless the Plan specifically provides
otherwise. Each determination, interpretation or other action made or taken by
the Committee pursuant to the provisions of the Plan will be conclusive and
binding for all purposes and on all persons, and no member of the Committee will
be liable for any action or determination made in good faith with respect to the
Plan or any Incentive Award granted under the Plan.

         3.2 AUTHORITY OF THE COMMITTEE.

                  (a) In accordance with and subject to the provisions of the
         Plan, the Committee will have the authority to determine all provisions
         of Incentive Awards as the Committee may deem necessary or desirable
         and as consistent with the terms of the Plan, including, without
         limitation, the following: (i) the Eligible Recipients to be selected
         as Participants; (ii) the nature and extent of the Incentive Awards to
         be made to each Participant (including the number of shares of Common
         Stock to be subject to each Incentive Award, any exercise price, the
         manner in which Incentive Awards will vest or become exercisable and
         whether Incentive Awards will be granted in tandem with other Incentive
         Awards) and the form of written agreement, if any, evidencing such
         Incentive Award; (iii) the time or times when Incentive Awards will be
         granted; (iv) the duration of each Incentive Award; and (v) the
         restrictions and other conditions to which the payment or vesting of
         Incentive Awards may be subject. In addition, the Committee will have
         the authority under the Plan in its sole discretion to pay the economic
         value of any Incentive Award in the form of cash, Common Stock or any
         combination of both.

                  (b) Subject to Section 3.2(d), below, the Committee will have
         the authority under the Plan to amend or modify the terms of any
         outstanding Incentive Award in any manner, including, without
         limitation, the authority to modify the number of shares or other terms
         and conditions of an Incentive Award, extend the term of an Incentive
         Award, accelerate the exercisability or vesting or otherwise terminate
         any restrictions relating to an Incentive Award, accept the surrender
         of any outstanding Incentive Award or, to the extent not previously
         exercised or vested, authorize the grant of new Incentive Awards in
         substitution for surrendered Incentive Awards; provided, however that
         the amended or modified terms are permitted by the Plan as then in
         effect and that any Participant adversely affected by such amended or
         modified terms has consented to such amendment or modification.

                  (c) In the event of (i) any reorganization, merger,
         consolidation, recapitalization, liquidation, reclassification, stock
         dividend, stock split, combination of shares, rights offering,
         extraordinary dividend or divestiture (including a spin-off) or any
         other change in corporate structure or shares; (ii) any purchase,
         acquisition, sale, disposition or write-down of a significant amount of
         assets or a significant business; (iii) any change in accounting
         principles or practices, tax laws or other such laws or provisions
         affecting reported results; or (iv) any other similar change, in each
         case with respect to the Company or any other entity whose performance
         is relevant to the grant or vesting of an Incentive Award, the

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         Committee (or, if the Company is not the surviving corporation in any
         such transaction, the board of directors of the surviving corporation)
         may, without the consent of any affected Participant, amend or modify
         the vesting criteria (including Performance Criteria) of any
         outstanding Incentive Award that is based in whole or in part on the
         financial performance of the Company (or any Subsidiary or division or
         other subunit thereof) or such other entity so as equitably to reflect
         such event, with the desired result that the criteria for evaluating
         such financial performance of the Company or such other entity will be
         substantially the same (in the sole discretion of the Committee or the
         board of directors of the surviving corporation) following such event
         as prior to such event; provided, however, that the amended or modified
         terms are permitted by the Plan as then in effect.

4. SHARES AVAILABLE FOR ISSUANCE.

         4.1 MAXIMUM NUMBER OF SHARES AVAILABLE; CERTAIN RESTRICTIONS ON AWARDS.
Subject to adjustment as provided in Section 4.3 of the Plan, the maximum number
of shares of Common Stock that will be available for issuance under the Plan
will be 1,200,000. The shares available for issuance under the Plan may, at the
election of the Committee, be either treasury shares or shares authorized but
unissued, and, if treasury shares are used, all references in the Plan to the
issuance of shares will, for corporate law purposes, be deemed to mean the
transfer of shares from treasury.

         4.2 ACCOUNTING FOR INCENTIVE AWARDS. Shares of Common Stock that are
issued under the Plan or that are subject to outstanding Incentive Awards will
be applied to reduce the maximum number of shares of Common Stock remaining
available for issuance under the Plan; provided, however, that shares subject to
an Incentive Award that lapses, expires, is forfeited (including issued shares
forfeited under a Restricted Stock Award) or for any reason is terminated
unexercised or unvested or is settled or paid in cash or any form other than
shares of Common Stock will automatically again become available for issuance
under the Plan. To the extent that the exercise price of any Option and/or
associated tax withholding obligations are paid by tender or attestation as to
ownership of Previously Acquired Shares, or to the extent that such tax
withholding obligations are satisfied by withholding of shares otherwise
issuable upon exercise of the Option, only the number of shares of Common Stock
issued net of the number of shares tendered, attested to or withheld will be
applied to reduce the maximum number of shares of Common Stock remaining
available for issuance under the Plan.

         4.3 ADJUSTMENTS TO SHARES AND INCENTIVE AWARDS. In the event of any
reorganization, merger, consolidation, recapitalization, liquidation,
reclassification, stock dividend, stock split, combination of shares or any
other change in the corporate structure or shares of the Company, the Committee
(or, if the Company is not the surviving corporation in any such transaction,
the board of directors of the surviving corporation) will make appropriate
adjustment (which determination will be conclusive) as to the number and kind of
securities or other property (including cash) available for issuance or payment
under the Plan and, in order to prevent dilution or enlargement of the rights of
Participants, the number and kind of securities or other property (including
cash) subject to outstanding Incentive Awards and the exercise price of
outstanding Options.

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5. PARTICIPATION.

         Participants in the Plan will be those Eligible Recipients who, in the
judgment of the Committee, have contributed, are contributing or are expected to
contribute to the achievement of economic objectives of the Company or its
Subsidiaries. Eligible Recipients may be granted from time to time one or more
Incentive Awards, singly or in combination or in tandem with other Incentive
Awards, as may be determined by the Committee in its sole discretion. Incentive
Awards will be deemed to be granted as of the date specified in the grant
resolution of the Committee, which date will be the date of any related
agreement with the Participant.

6. OPTIONS.

         6.1 GRANT. An Eligible Recipient may be granted one or more Options
under the Plan, and such Options will be subject to such terms and conditions,
consistent with the other provisions of the Plan, as may be determined by the
Committee in its sole discretion. The Committee may designate whether an Option
is to be considered an Incentive Stock Option or a Non-Statutory Stock Option.
To the extent that any Incentive Stock Option granted under the Plan ceases for
any reason to qualify as an "incentive stock option" for purposes of Section 422
of the Code, such Incentive Stock Option will continue to be outstanding for
purposes of the Plan but will thereafter be deemed to be a Non-Statutory Stock
Option.

         6.2 EXERCISE PRICE. The per share price to be paid by a Participant
upon exercise of an Option will be determined by the Committee in its discretion
at the time of the Option grant; provided, however, that such price will not be
less than 100% of the Fair Market Value of one share of Common Stock on the date
of grant with respect to any Incentive Stock Option (110% of the Fair Market
Value with respect to an Incentive Stock Option if, at the time such Incentive
Stock Option is granted, the Participant owns, directly or indirectly, more than
10% of the total combined voting power of all classes of stock of the Company or
any parent or subsidiary corporation of the Company).

         6.3 EXERCISABILITY AND DURATION. An Option will become exercisable at
such times and in such installments and upon such terms and conditions as may be
determined by the Committee in its sole discretion at the time of grant
(including without limitation (i) the achievement of one or more of the
Performance Criteria and/or (ii) that the Participant remain in the continuous
employ or service of the Company or a Subsidiary for a certain period);
provided, however, that no Option may be exercisable prior to six months from
its date of grant (other than as provided in Section 9.1 of the Plan) or after
10 years from its date of grant (five years from its date of grant in the case
of an Incentive Stock Option if, at the time the Incentive Stock Option is
granted, the Participant owns, directly or indirectly, more than 10% of the
total combined voting power of all classes of stock of the Company or any parent
or subsidiary corporation of the Company).

         6.4 PAYMENT OF EXERCISE PRICE. The total purchase price of the shares
to be purchased upon exercise of an Option will be paid entirely in cash
(including check, bank draft or money order); provided, however, that the
Committee, in its sole discretion and upon terms and conditions established by
the Committee, may allow such payments to be made, in whole or in part, by
tender of a Broker Exercise Notice, by tender, or attestation as to ownership,
of Previously Acquired Shares that have been held for the period of time
necessary to avoid a charge to the Company's earnings for financial reporting
purposes and that are otherwise acceptable to the Committee, or by a combination
of such methods. For purposes of such payment, Previously Acquired Shares
tendered or covered by an attestation will be valued at their Fair Market Value
on the exercise date.

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         6.5 MANNER OF EXERCISE. An Option may be exercised by a Participant in
whole or in part from time to time, subject to the conditions contained in the
Plan and in the agreement evidencing such Option, by delivery in person, by
facsimile or electronic transmission or through the mail of written notice of
exercise to the Company at its principal executive office in Los Angeles,
California and by paying in full the total exercise price for the shares of
Common Stock to be purchased in accordance with Section 6.4 of the Plan.

7. RESTRICTED STOCK AWARDS.

         7.1 GRANT. An Eligible Recipient may be granted one or more Restricted
Stock Awards under the Plan, and such Restricted Stock Awards will be subject to
such terms and conditions, consistent with the other provisions of the Plan, as
may be determined by the Committee in its sole discretion. The Committee may
impose such restrictions or conditions, not inconsistent with the provisions of
the Plan, to the vesting of such Restricted Stock Awards as it deems
appropriate, including, without limitation, (i) the achievement of one or more
of the Performance Criteria and/or (ii) that the Participant remain in the
continuous employ or service of the Company or a Subsidiary for a certain
period; provided, however, that other than as provided in Section 9.1 of the
Plan, no Restricted Stock Award may vest prior to six months from its date of
grant.

         7.2 RIGHTS AS A SHAREHOLDER; TRANSFERABILITY. Except as provided in
Sections 7.1, 7.3, 7.4 and 12.3 of the Plan, a Participant will have all voting,
dividend, liquidation and other rights with respect to shares of Common Stock
issued to the Participant as a Restricted Stock Award under this Section 7 upon
the Participant becoming the holder of record of such shares as if such
Participant were a holder of record of shares of unrestricted Common Stock.

         7.3 DIVIDENDS AND DISTRIBUTIONS. Unless the Committee determines
otherwise in its sole discretion (either in the agreement evidencing the
Restricted Stock Award at the time of grant or at any time after the grant of
the Restricted Stock Award), any dividends or distributions (other than regular
quarterly cash dividends) paid with respect to shares of Common Stock subject to
the unvested portion of a Restricted Stock Award will be subject to the same
restrictions as the shares to which such dividends or distributions relate. The
Committee will determine in its sole discretion whether any interest will be
paid on such dividends or distributions.

         7.4 ENFORCEMENT OF RESTRICTIONS. To enforce the restrictions referred
to in this Section 7, the Committee may place a legend on the stock certificates
referring to such restrictions and may require the Participant, until the
restrictions have lapsed, to keep the stock certificates, together with duly
endorsed stock powers, in the custody of the Company or its transfer agent, or
to maintain evidence of stock ownership, together with duly endorsed stock
powers, in a certificateless book-entry stock account with the Company's
transfer agent.

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8. PERFORMANCE STOCK AWARDS.

         8.1 An Eligible Recipient may be granted one or more Performance Stock
Awards under the Plan, and the issuance of shares of Common Stock pursuant to
such Performance Stock Awards will be subject to such terms and conditions, if
any, consistent with the other provisions of the Plan, as may be determined by
the Committee in its sole discretion, including, but not limited to, the
achievement of one or more of the Performance Criteria.

         8.2 RESTRICTIONS ON TRANSFERS. The right to receive shares of
Performance Stock Awards on a deferred basis may not be sold, assigned,
transferred, pledged or otherwise encumbered, other than by will or the laws of
descent and distribution.

9. EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.

         9.1 TERMINATION DUE TO DEATH, DISABILITY OR RETIREMENT. Subject to
Section 9.4 of the Plan, in the event a Participant's employment or other
service with the Company and all Subsidiaries is terminated by reason of death,
disability or retirement:

                  (a) All outstanding Options then held by the Participant will,
         to the extent exercisable as of such termination, remain exercisable in
         full for a period of thirty (30) days after such termination (but in no
         event after the expiration date of any such Option). Options not
         exercisable as of such Retirement will be forfeited and terminate; and

                  (b) All Restricted Stock Awards then held by the Participant
         that have not vested as of such termination will be terminated and
         forfeited.

                  (c) All outstanding Performance Stock Awards then held by the
         Participant not vested as of such termination will be terminated and
         forfeited.

         9.2 TERMINATION FOR REASONS OTHER THAN DEATH, DISABILITY OR RETIREMENT.
Subject to Section 9.4 of the Plan, in the event a Participant's employment or
other service is terminated with the Company and all Subsidiaries for any reason
other than death, Disability or Retirement, or a Participant is in the employ of
a Subsidiary and the Subsidiary ceases to be a Subsidiary of the Company (unless
the Participant continues in the employ of the Company or another Subsidiary):

                  (a) All outstanding Options then held by the Participant will,
         to the extent exercisable as of such termination, remain exercisable in
         full for a period of thirty (30) days after such termination (but in no
         event after the expiration date of any such Option). Options not
         exercisable as of such termination will be forfeited and terminate; and

                  (b) All Restricted Stock Awards then held by the Participant
         not vested as of such termination will be terminated and forfeited.

                  (c) All outstanding Performance Stock Awards then held by the
         Participant not vested as of such termination will be terminated and
         forfeited.

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         9.3 MODIFICATION OF RIGHTS UPON TERMINATION. Notwithstanding the other
provisions of this Section 9, upon a Participant's termination of employment or
other service with the Company and all Subsidiaries, the Committee may, in its
sole discretion (which may be exercised at any time on or after the date of
grant, including following such termination), cause Options (or any part
thereof) then held by such Participant to become or continue to become
exercisable and/or remain exercisable following such termination of employment
or service, and Restricted Stock Awards and Performance Stock Awards then held
by such Participant to vest and/or continue to vest or become free of
restrictions and conditions to issuance, as the case may be, following such
termination of employment or service, in each case in the manner determined by
the Committee; provided, however, that (a) no Option will become exercisable or
vest prior to six months from its date of grant (unless such exercisability or
vesting is by reason of death or Disability), (b) no Restricted Stock Award will
vest or be issued prior to six months from its date of grant (unless such
vesting or issuance is by reason of death or Disability) and (c) no Incentive
Award may remain exercisable or continue to vest for more than two years beyond
the date such Incentive Award would have terminated if not for the provisions of
this Section 9.4 but in no event beyond its expiration date.

         9.4 EFFECTS OF ACTIONS CONSTITUTING CAUSE. Notwithstanding anything in
the Plan to the contrary, in the event that a Participant is determined by the
Committee, acting in its sole discretion, to have committed any action which
would constitute Cause as defined in Section 2.3, irrespective of whether such
action or the Committee's determination occurs before or after termination of
such Participant's employment or service with the Company or any Subsidiary, all
rights of the Participant under the Plan and any agreements evidencing an
Incentive Award then held by the Participant shall terminate and be forfeited
without notice of any kind. The Company may defer the exercise of any Option or
the vesting of any Restricted Stock Award for a period of up to forty-five (45)
days in order for the Committee to make any determination as to the existence of
Cause.

         9.5 DETERMINATION OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE. Unless
the Committee otherwise determines in its sole discretion, a Participant's
employment or other service will, for purposes of the Plan, be deemed to have
terminated on the date recorded on the personnel or other records of the Company
or the Subsidiary for which the Participant provides employment or service, as
determined by the Committee in its sole discretion based upon such records.

10. PAYMENT OF WITHHOLDING TAXES.

         10.1 GENERAL RULES. The Company is entitled to (a) withhold and deduct
from future wages of the Participant (or from other amounts that may be due and
owing to the Participant from the Company or a Subsidiary), or make other
arrangements for the collection of, all legally required amounts necessary to
satisfy any and all federal, foreign, state and local withholding and
employment-related tax requirements attributable to an Incentive Award,
including, without limitation, the grant, exercise or vesting of, or payment of
dividends with respect to, an Incentive Award or a disqualifying disposition of
stock received upon exercise of an Incentive Stock Option, or (b) require the
Participant promptly to remit the amount of such withholding to the Company
before taking any action, including issuing any shares of Common Stock, with
respect to an Incentive Award.

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         10.2 SPECIAL RULES. The Committee may, in its sole discretion and upon
terms and conditions established by the Committee, permit or require a
Participant to satisfy, in whole or in part, any withholding or
employment-related tax obligation described in Section 10.1 of the Plan by
electing to tender, or by attestation as to ownership of, Previously Acquired
Shares that have been held for the period of time necessary to avoid a charge to
the Company's earnings for financial reporting purposes and that are otherwise
acceptable to the Committee, by delivery of a Broker Exercise Notice or a
combination of such methods. For purposes of satisfying a Participant's
withholding or employment-related tax obligation, Previously Acquired Shares
tendered or covered by an attestation will be valued at their Fair Market Value.

11. CHANGE IN CONTROL.

         11.1 A "Change in Control" shall be deemed to have occurred if the
event set forth in any one of the following paragraphs has occurred:

                  (a) the sale, lease, exchange or other transfer, directly or
         indirectly, of substantially all of the assets of the Company (in one
         transaction or in a series of related transactions) to any Successor;

                  (b) the approval by the shareholders of the Company of any
         plan or proposal for the liquidation or dissolution of the Company;

                  (c) any Successor (as defined in Section 11.2 below), other
         than a Bona Fide Underwriter (as defined in Section 11.2 below),
         becomes after the effective date of the Plan the "beneficial owner" (as
         defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
         of (i) 20% or more, but not 50% or more, of the combined voting power
         of the Company's outstanding securities ordinarily having the right to
         vote at elections of directors, unless the transaction resulting in
         such ownership has been approved in advance by the Continuity Directors
         (as defined in Section 11.2 below), or (ii) more than 50% of the
         combined voting power of the Company's outstanding securities
         ordinarily having the right to vote at elections of directors
         (regardless of any approval by the Continuity Directors);

                  (d) a merger or consolidation to which the Company is a party
         if the shareholders of the Company immediately prior to effective date
         of such merger or consolidation have "beneficial ownership" (as defined
         in Rule 13d-3 under the Exchange Act), immediately following the
         effective date of such merger or consolidation, of securities of the
         surviving corporation representing (i) 50% or more, but not more than
         80%, of the combined voting power of the surviving corporation's then
         outstanding securities ordinarily having the right to vote at elections
         of directors, unless such merger or consolidation has been approved in
         advance by the Continuity Directors, or (ii) less than 50% of the
         combined voting power of the surviving corporation's then outstanding
         securities ordinarily having the right to vote at elections of
         directors (regardless of any approval by the Continuity Directors); or

                  (e) the Continuity Directors cease for any reason to
         constitute at least 50% or more of the Board.

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         11.2 CHANGE IN CONTROL DEFINITIONS. For purposes of this Section 11:

                  (a) "CONTINUITY DIRECTORS" of the Company will mean any
         individuals who are members of the Board on the effective date of the
         Plan and any individual who subsequently becomes a member of the Board
         whose election, or nomination for election by the Company's
         shareholders, was approved by a vote of at least a majority of the
         Continuity Directors (either by specific vote or by approval of the
         Company's proxy statement in which such individual is named as a
         nominee for director without objection to such nomination).

                  (b) "BONA FIDE UNDERWRITER" means an entity engaged in
         business as an underwriter of securities that acquires securities of
         the Company through such entity's participation in good faith in a firm
         commitment underwriting until the expiration of 40 days after the date
         of such acquisition.

                  (c) "SUCCESSOR" means any individual, corporation,
         partnership, group, association or other person," as such term is used
         in Section 13(d) or Section 14(d) of the Exchange Act, other than the
         Company, any "affiliate" (as defined below) or any benefit plan(s)
         sponsored by the Company or any affiliate that succeeds to, or has the
         practical ability to control (either immediately or solely with the
         passage of time), the Company's business directly, by merger,
         consolidation or other form of business combination, or indirectly, by
         purchase of the Company's outstanding securities ordinarily having the
         right to vote at the election of directors or all or substantially all
         of its assets or otherwise. For this purpose, an "affiliate" is (i) any
         corporation at least a majority of whose outstanding securities
         ordinarily having the right to vote at elections of directors is owned
         directly or indirectly by the Company or (ii) any other form of
         business entity in which the Company, by virtue of a direct or indirect
         ownership interest, has the right to elect a majority of the members of
         such entity's governing body.

         11.3 ACCELERATION OF VESTING. Without limiting the authority of the
Committee under Sections 3.2 and 4.3 of the Plan, if a Change in Control of the
Company occurs, then, if approved by the Committee in its sole discretion either
in an agreement evidencing an Incentive Award at the time of grant or at any
time after the grant of an Incentive Award: (a) all Options that have been
outstanding for at least six months will become immediately exercisable in full
and will remain exercisable in accordance with their terms; (b) all Restricted
Stock Awards that have been outstanding for at least six months will become
immediately fully vested and non-forfeitable; and (c) any conditions to the
issuance of shares of Common Stock pursuant to Performance Stock Awards that
have been outstanding for at least six months will lapse.

         11.4 CASH PAYMENT. If a Change in Control of the Company occurs, then
the Committee, if approved by the Committee in its sole discretion either in an
agreement evidencing an Incentive Award at the time of grant or at any time
after the grant of an Incentive Award, and without the consent of any
Participant affected thereby, may determine that:

                  (a) some or all Participants holding outstanding Options will
         receive, with respect to some or all of the shares of Common Stock
         subject to such Options, as of the effective date of any such Change in
         Control of the Company, cash in an amount equal to the excess of the
         Fair Market Value of such shares immediately prior to the effective
         date of such Change in Control of the Company over the exercise price
         per share of such Options; and

                                       11
<PAGE>

                  (b) any Options which, as of the effective date of any such
         Change in Control, are "underwater" (as defined in Section 3.2(d))
         shall terminate as of the effective date of any such Change in Control.

                  (c) some or all Participants holding Performance Stock Awards
         will receive, with respect to some or all of the shares of Common Stock
         subject to such Performance Stock Awards that remain subject to
         issuance based upon the future achievement of Performance Criteria as
         of the effective date of any such Change in Control of the Company,
         cash in an amount equal the Fair Market Value of such shares
         immediately prior to the effective date of such Change in Control.

         11.5 LIMITATION ON CHANGE IN CONTROL PAYMENTS. Notwithstanding anything
in Section 11.3 or 11.4 of the Plan to the contrary, if, with respect to a
Participant, the acceleration of the exercisability of an Option as provided in
Section 11.3 or the payment of cash in exchange for all or part of an Option as
provided in Section 11.4 (which acceleration or payment could be deemed a
"payment" within the meaning of Section 280G(b)(2) of the Code), together with
any other "payments" that such Participant has the right to receive from the
Company or any corporation that is a member of an "affiliated group" (as defined
in Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of
which the Company is a member, would constitute a "parachute payment" (as
defined in Section 280G(b)(2) of the Code), then the "payments" to such
Participant pursuant to Section 11.3 or 11.4 of the Plan will be reduced to the
largest amount as will result in no portion of such "payments" being subject to
the excise tax imposed by Section 4999 of the Code; provided, however, that if a
Participant is subject to a separate agreement with the Company or a Subsidiary
which specifically provides that payments attributable to one or more forms of
employee stock incentives or to payments made in lieu of employee stock
incentives will not reduce any other payments under such agreement, even if it
would constitute an excess parachute payment, or provides that the Participant
will have the discretion to determine which payments will be reduced in order to
avoid an excess parachute payment, then the limitations of this Section 11.4
will, to that extent, not apply.

12. RIGHTS OF ELIGIBLE RECIPIENTS AND PARTICIPANTS; TRANSFERABILITY.

         12.1 EMPLOYMENT OR SERVICE. Nothing in the Plan will interfere with or
limit in any way the right of the Company or any Subsidiary to terminate the
employment or service of any Eligible Recipient or Participant at any time, nor
confer upon any Eligible Recipient or Participant any right to continue in the
employ or service of the Company or any Subsidiary.

         12.2 RIGHTS AS A SHAREHOLDER. As a holder of Incentive Awards (other
than Restricted Stock Awards), a Participant will have no rights as a
shareholder unless and until such Incentive Awards are exercised for, or paid in
the form of, shares of Common Stock and the Participant becomes the holder of
record of such shares. Except as otherwise provided in the Plan, no adjustment
will be made for dividends or distributions with respect to such Incentive
Awards as to which there is a record date preceding the date the Participant
becomes the holder of record of such shares, except as the Committee may
determine in its discretion.

                                       12
<PAGE>

         12.3 RESTRICTIONS ON TRANSFER.

                  (a) Except pursuant to testamentary will or the laws of
         descent and distribution or as otherwise expressly permitted by
         subsections (b) and (c) below, no right or interest of any Participant
         in an Incentive Award prior to the exercise (in the case of Options) or
         vesting (in the case of Restricted Stock Awards) of such Incentive
         Award will be assignable or transferable, or subjected to any lien,
         during the lifetime of the Participant, either voluntarily or
         involuntarily, directly or indirectly, by operation of law or
         otherwise.

                  (b) A Participant will be entitled to designate a beneficiary
         to receive an Incentive Award upon such Participant's death, and in the
         event of such Participant's death, payment of any amounts due under the
         Plan will be made to, and exercise of any Options (to the extent
         permitted pursuant to Section 9 of the Plan) may be made by, such
         beneficiary. If a deceased Participant has failed to designate a
         beneficiary, or if a beneficiary designated by the Participant fails to
         survive the Participant, payment of any amounts due under the Plan will
         be made to, and exercise of any Options (to the extent permitted
         pursuant to Section 9 of the Plan) may be made by, the Participant's
         legal representatives, heirs and legatees. If a deceased Participant
         has designated a beneficiary and such beneficiary survives the
         Participant but dies before complete payment of all amounts due under
         the Plan or exercise of all exercisable Options, then such payments
         will be made to, and the exercise of such Options may be made by, the
         legal representatives, heirs and legatees of the beneficiary.

                  (c) Upon a Participant's request, the Committee may, in its
         sole discretion, permit a transfer of all or a portion of a
         Non-Statutory Stock Option, other than for value, to such Participant's
         child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
         former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
         son-in-law, daughter-in-law, brother-in-law, or sister-in-law, any
         person sharing such Participant's household (other than a tenant or
         employee), a trust in which any of the foregoing have more than fifty
         percent of the beneficial interests, a foundation in which any of the
         foregoing (or the Participant) control the management of assets, and
         any other entity in which these persons (or the Participant) own more
         than fifty percent of the voting interests. Any permitted transferee
         will remain subject to all the terms and conditions applicable to the
         Participant prior to the transfer. A permitted transfer may be
         conditioned upon such requirements as the Committee may, in its sole
         discretion, determine, including, but not limited to execution and/or
         delivery of appropriate acknowledgements, opinion of counsel, or other
         documents by the transferee.

         12.4 NON-EXCLUSIVITY OF THE PLAN. Nothing contained in the Plan is
intended to modify or rescind any previously approved compensation plans or
programs of the Company or create any limitations on the power or authority of
the Board to adopt such additional or other compensation arrangements as the
Board may deem necessary or desirable.

                                       13
<PAGE>

13. SECURITIES LAW AND OTHER RESTRICTIONS.

         Notwithstanding any other provision of the Plan or any agreements
entered into pursuant to the Plan, the Company will not be required to issue any
shares of Common Stock under this Plan, and a Participant may not sell, assign,
transfer or otherwise dispose of shares of Common Stock issued pursuant to
Incentive Awards granted under the Plan, unless (a) there is in effect with
respect to such shares a registration statement under the Securities Act and any
applicable securities laws of a state or foreign jurisdiction or an exemption
from such registration under the Securities Act and applicable state or foreign
securities laws, and (b) there has been obtained any other consent, approval or
permit from any other U.S. or foreign regulatory body which the Committee, in
its sole discretion, deems necessary or advisable. The Company may condition
such issuance, sale or transfer upon the receipt of any representations or
agreements from the parties involved, and the placement of any legends on
certificates representing shares of Common Stock, as may be deemed necessary or
advisable by the Company in order to comply with such securities law or other
restrictions.

14. PLAN AMENDMENT, MODIFICATION AND TERMINATION.

         The Board may suspend or terminate the Plan or any portion thereof at
any time, and may amend the Plan from time to time in such respects as the Board
may deem advisable in order that Incentive Awards under the Plan will conform to
any change in applicable laws or regulations or in any other respect the Board
may deem to be in the best interests of the Company; provided, however, that no
such amendments to the Plan will be effective without approval of the Company's
shareholders if shareholder approval of the amendment is then required pursuant
to Section 422 of the Code or the rules of any stock exchange or Nasdaq or
similar regulatory body. No termination, suspension or amendment of the Plan may
adversely affect any outstanding Incentive Award without the consent of the
affected Participant; provided, however, that this sentence will not impair the
right of the Committee to take whatever action it deems appropriate under
Sections 3.2(c), 4.3 and 11 of the Plan.

15. EFFECTIVE DATE AND DURATION OF THE PLAN.

         The Plan is effective as of the Effective Date. The Plan will terminate
at midnight on February 24, 2014, and may be terminated prior to such time by
Board action. No Incentive Award will be granted after termination of the Plan.
Incentive Awards outstanding upon termination of the Plan may continue to be
exercised, or become free of restrictions, according to their terms.

16.      MISCELLANEOUS.

         16.1 GOVERNING LAW. Except to the extent expressly provided herein or
in connection with other matters of corporate governance and authority (all of
which shall be governed by the laws of the Company's jurisdiction of
incorporation), the validity, construction, interpretation, administration and
effect of the Plan and any rules, regulations and actions relating to the Plan
will be governed by and construed exclusively in accordance with the laws of the
State of California notwithstanding the conflicts of laws principles of any
jurisdictions.

         16.2 SUCCESSORS AND ASSIGNS. The Plan will be binding upon and inure to
the benefit of the successors and permitted assigns of the Company and the
Participants.

                                       14EXHIBIT 4.0

              VOID AFTER 3:30 P.M., MOUNTAIN TIME, ON JULY 9, 2006

                        WARRANT TO PURCHASE COMMON SHARES

                             CAN-CAL RESOURCES LTD.

     This is to Certify That, for value received, _______________ ("Holder"), is
entitled to purchase, subject to the provisions of this Warrant, from Can-Cal
Resources Ltd., a Nevada corporation, (the "Company" or "we"), at any time until
5:00 P.M. on _____________, 2006 ("Expiration Date") __________ shares of the
Common Stock of the Company ("Common Shares") at a purchase price per share of $
0.25 plus an additional __________ shares of the Common Stock of the Company
("Common Shares") at a purchase price per share of $0.50 during the period that
this Warrant is exercisable. The number of Common Shares to be received upon the
exercise of this Warrant and the price to be paid for a Common Share may be
adjusted from time to time as hereinafter set forth. The purchase price of a
Common Share in effect at any time and as adjusted from time to time is
hereinafter sometimes referred to as the "Exercise Price." This Warrant is one
of a series of warrants identical in form issued by the Company to purchase
Common Shares of the Company; "Warrants" used herein means all such warrants
(including this Warrant). The Common Shares underlying the Warrants are
sometimes referred to as "Warrant Shares" and include all Common Shares that
have been issued upon the exercise of the Warrants and all unissued Common
Shares underlying the Warrants.

     (A)  EXERCISE OF WARRANT.

          (1) SURRENDER AND PAYMENT. This Warrant may be exercised in whole or
in part at any time or from time to time until the Expiration Date or if the
Expiration Date is a day on which banking institutions are authorized by law to
close, then on the next succeeding day which shall not be such a day, by
presentation and surrender hereof to the Company or at the office of its stock
transfer agent, with the Purchase Form annexed hereto duly executed and
accompanied by cash payment or wire transfer of the Exercise Price for the
number of shares specified in such Form, together with all federal and state
taxes applicable upon such exercise. Cashless exercise is not permitted.

          (2) MERGER; REORGANIZATION. The Company agrees not to merge,
reorganize or take any action that would terminate this Warrant unless
provisions are made as part of a Reorganization Action (as defined below) which
would provide the holders of this Warrant with an equivalent of this Warrant as
specified in Section (h); provided, however, that if reasonably required by the
other party or parties to such Reorganization Action, the Company may accelerate
the Expiration Date to a date prior to such merger, reorganization or other
action, but only if the Company shall give the Holder written notice of such
acceleration at least 30 days prior to such accelerated Expiration Date. A
"Reorganization Action" means the closing of a merger or consolidation of the
Company with or into another entity in which the Company is not the surviving
entity, or a merger (including a reverse triangular merger) in which the Company
is the surviving entity but the shares of the Company's capital stock
outstanding immediately prior to the merger are converted by virtue of the
merger into cash, securities or other property.

<PAGE>

          (3) TENDER; PARTIAL EXERCISE. The Company agrees to provide notice to
the Holder that any tender offer is being made for the Company's Common Shares
no later than three business days after the day the Company becomes aware that
any tender offer is being made for outstanding Common Shares of the Company. If
this Warrant should be exercised in part only, the Company shall, upon surrender
of this Warrant for cancellation, execute and deliver a new Warrant evidencing
the right of the Holder to purchase the balance of the Common Shares purchasable
hereunder. Upon receipt by the Company of this Warrant at the office of the
Company or at the office of the Company's stock transfer agent, in proper form
for exercise and accompanied by the Exercise Price, the Holder shall be deemed
to be the holder of record of the Common Shares issuable upon such exercise,
notwithstanding that the stock transfer books of the Company shall then be
closed or that certificates representing such Common Shares shall not then be
actually delivered to the Holder. In any event of a tender offer coming within
the provisions of the Company's shareholder rights plan (the "poison pill
plan"), the rights of the Holder shall be subject to the provisions of that plan
to the extent the Holder exercises this Warrant.

     (B) RESERVATION OF SHARES. The Company hereby agrees that at all times
there shall be reserved for issuance and/or delivery upon exercise of this
Warrant such number of Common Shares as shall be required for issuance or
delivery upon exercise of this Warrant.

     (C) FRACTIONAL SHARES. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a Common Share called for upon any exercise hereof,
the Company shall, upon receipt by the Company or the Company's stock transfer
agent of the Exercise Price on such fractional share, pay to the Holder an
amount in cash equal to such fraction multiplied by the current market value of
such fractional share, determined as follows:

          (1) If the Common Shares are listed on a national securities exchange,
     are admitted to unlisted trading privileges on such an exchange, or are
     listed for trading on a trading system of the National Association of
     Securities Dealers, Inc. ("NASD") such as Regular NASDAQ ("NASDAQ") or
     NASDAQ/NMS ("NMS"), then the current value shall be the last reported sale
     price of the Common Shares on such an exchange or system on the last
     business day prior to the date of exercise of this Warrant or if no such
     sale is made on such day, the average of the closing bid prices for the
     Common Shares for such day on such exchange or such system shall be used;
     or

          (2) If the Common Shares are not so listed on such exchange or system
     or admitted to unlisted trading privileges, the current value shall be the
     average of the last reported bid prices reported by the National Quotation
     Bureau, Inc. on the last business day prior to the date of the exercise of
     this Warrant; or

          (3) If the Common Shares are not so listed or admitted to unlisted
     trading privileges and if bid and asked prices are not so reported, the
     current value shall be an amount, not less than book value, determined in
     such reasonable manner as may be prescribed by the board of directors of
     the Company.

     (D) EXCHANGE, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable,
without expense, at the option of the Holder, upon presentation and surrender
hereof to the Company or at the office of its stock transfer agent, if any, for
other Warrants of different denominations entitling

                                       2
<PAGE>

the Holder thereof to purchase (under the same terms and conditions as provided
by this Warrant) in the aggregate the same number of Common Shares purchasable
hereunder. This Warrant may not be sold, transferred, assigned, or hypothecated
except in compliance with the Securities Act of 1933. Any such transfer or
assignment shall be made by surrender of this Warrant to the Company or at the
office of its stock transfer agent, if any, with the Assignment Form annexed
hereto duly executed and with funds sufficient to pay any transfer tax;
whereupon the Company shall, without charge, execute and deliver a new Warrant
in the name of the assignee named in such instrument of assignment and this
Warrant shall promptly be canceled. This Warrant may be divided or combined with
other Warrants which carry the same rights upon presentation hereof at the
office of the Company or at the office of its stock transfer agent, if any,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued and signed by the Holder hereof. The term
"Warrant" as used herein includes any warrants issued in substitution for or
replacement of this Warrant, or into which this Warrant may be divided or
exchanged. Upon receipt by the Company of evidence satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) of reasonably satisfactory indemnification, and upon
surrender and cancellation of this Warrant, if mutilated, the Company will
execute and deliver a new Warrant of like tenor and date. Subject to such right
of indemnification, any such new Warrant executed and delivered shall constitute
an additional contractual obligation on the part of the Company, whether or not
this Warrant so lost, stolen, destroyed, or mutilated shall be at any time
enforceable by anyone.

     (E) RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be
entitled to any rights of a shareholder in the Company, either at law or equity,
and the rights of the Holder are limited to those expressed in the Warrant and
are not enforceable against the Company except to the extent set forth herein.

     (F)  ADJUSTMENT PROVISIONS.

          (1) ADJUSTMENTS OF THE EXERCISE PRICE STRICTLY LIMITED. If the Company
subdivides outstanding Common Shares into a greater number of Common Shares, the
Exercise Price in effect immediately prior to such subdivision shall be
proportionately reduced. If the Company combines its outstanding Common Shares
into a lesser number of Common Shares, the Exercise Price in effect immediately
prior to such combination shall be proportionally increased. In case of a
subdivision or combination, the adjustment of the Exercise Price shall be made
as of the effective date of the applicable event. No other adjustment to
Exercise Price shall be made, for any reason.

          (2) ADJUSTMENTS OF THE NUMBER OF SHARES FOLLOWING ADJUSTMENTS OF THE
EXERCISE PRICE. Upon any adjustment of the Exercise Price, the Holder of this
Warrant shall thereafter (until another such adjustment) be entitled to
purchase, at the new Exercise Price, the number of Common Shares, calculated to
the nearest full share, obtained by multiplying the number of Common Shares
initially issuable upon exercise of this Warrant by the Exercise Price specified
in the first paragraph hereof and dividing the product so obtained by the new
Exercise Price.

     (G) NOTICES TO HOLDERS. So long as this Warrant shall be outstanding and
unexercised (i) if any capital reorganization of the Company, reclassification
of the capital stock of the Company, consolidation or merger of the Company with
or into another corporation, sale, lease or transfer of

                                       3
<PAGE>

all or substantially all of the property and assets of the Company to another
corporation, or voluntary or involuntary dissolution, liquidation or winding up
of the Company shall be effected, then, in any such case, the Company shall
cause to be delivered to the Holder, at least 10 days prior to the date
specified in (x) or (y) below, as the case may be, a notice containing a brief
description of the proposed action and stating the date on which (x) a record is
to be taken for the purpose of such dividend, distribution or rights, or (y)
such reclassification, reorganization, consolidation, merger, conveyance, lease,
dissolution, liquidation or winding up is to take place and the date, if any is
to be fixed, as of which the holders of Common Shares of record shall be
entitled to exchange their Common Shares for securities or other property
deliverable upon such reclassification, reorganization, consolidation, merger,
conveyance, dissolution, liquidation or winding up.

     (H) RECLASSIFICATION, REORGANIZATION OR MERGER. In case of any
reclassification, capital reorganization or other change of outstanding Common
Shares of the Company (other than a change in par value, or from par value to no
par value, or from no par value to par value, or as a result of an issuance of
Common Shares by way of dividend or other distribution or of a subdivision or
combination), or in case of any consolidation or merger of the Company with or
into another corporation (other than a merger with a subsidiary in which merger
the Company is the continuing corporation and which does not result in any
reclassification, capital reorganization or other change of outstanding Common
Shares of the class issuable upon exercise of this Warrant), or in case of any
sale or conveyance to another corporation of the property of the Company as an
entirety or substantially as an entirety, then the Company shall cause effective
provision to be made so that the Holder shall have the right thereafter, by
causing delivery to the Holder of another warrant, or by exercising this
Warrant, to purchase the kind and amount of shares of stock and other securities
and property which the Holder would have received upon such reclassification,
capital reorganization or other change, consolidation, merger, sale or
conveyance had this Warrant been exercised prior to the consummation of such
transaction. These provisions shall apply to successive Reorganization Actions.
In the event the Company spins off a subsidiary by distributing to the
shareholders of the Company as a dividend or otherwise the stock of the
subsidiary, the Company shall reserve for the life of this Warrant, shares of
the subsidiary to be delivered to the Holders of the Warrants upon exercise to
the same extent as if they were owners of record of the Warrant Shares on the
record date for payment of the shares of the subsidiary.

     (I)  NO REGISTRATION UNDER THE SECURITIES ACT OF 1933.

     Upon exercise of this Warrant, the Warrant Shares will be issued as
"restricted securities" as that term is defined in rule 144 of the Securities
and Exchange Commission. The Company is under no obligation to register the
Holder's resale of the Warrant Shares.

     (J) TRANSFER TO COMPLY WITH THE SECURITIES ACT OF 1933. The Company shall
cause the following legend, or one similar thereto, to be set forth on the
Warrants and on each certificate representing Warrant Shares or any other
security issued or issuable upon exercise of this Warrant:

     "The securities represented by this certificate may not be offered for
     sale, sold or otherwise transferred except pursuant to an effective
     registration statement made under the Securities Act of 1933 (the
     "Act") and under any applicable state securities law, or pursuant to
     an exemption from registration under the Act and under any applicable
     state securities law, the availability of which is to be established
     to the satisfaction of the Company."

                                     4
<PAGE>

     (K) APPLICABLE LAW. This Warrant shall be governed by, and construed
in accordance with, the laws of the state of Nevada.

Dated  __________________, 2004

                                            CAN-CAL RESOURCES LTD.

                                            By:
                                                --------------------------------
                                                Ronald D. Sloan, Director

                                     5

<PAGE>

                               PURCHASE FORM
                               -------------

                                                         Dated:
     The undersigned hereby irrevocably elects to exercise the Warrant to the
extent of purchasing ___________ shares of Common Stock and hereby makes payment
of $___________ in payment of the exercise price.

                   INSTRUCTIONS FOR REGISTRATION OF STOCK
                   --------------------------------------

Name: __________________________________________________________________________
                  (Please typewrite or print in block letters)

Address: _______________________________________________________________________

Signature:  ____________________________________________________________________

                                 ASSIGNMENT FORM
                                 ---------------

                                                         Dated:_________________

         FOR VALUE RECEIVED, ___________________________________________________

hereby sells, assigns and transfers unto _______________________________________

________________________________________________________________________________
               (Name: Please typewrite or print in block letters)

Address: _______________________________________________________________________

the right to purchase Common Stock represented by this Warrant to the extent of

______________ shares as to which such right is exercisable and does hereby

irrevocably constitute and appoint _____________________________________________

________________________________________________________________________________

attorney, to transfer the same on the books of the Company with full power of

substitution in the premises.

                           Signature: __________________________________________

                                     6
<PAGE>

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