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THIS OPTION MAY BE EXERCISED  ONLY IN ACCORDANCE  WITH THE TERMS OF THE PLAN AND
THIS  AGREEMENT.  ONLY CERTAIN  PROVISIONS  OF THE PLAN ARE  SUMMARIZED  IN THIS
AGREEMENT. A COPY OF THE PLAN IS PROVIDED WITH THIS AGREEMENT.

                            ONLINE STOCK MARKET GROUP(TM)

                        INCENTIVE STOCK OPTION AGREEMENT

Date of Grant: ___________

TO: _____________

         We are  pleased  to notify  you that  ONLINE  STOCK  MARKET  GROUP (the
"Company")  on this day hereby  grants to you an option to  purchase  all or any
part of  ____________  shares of the Common Stock of the Company at the price of
$_____  per share  (the  "Exercise  Price"),  which has been  determined  by the
Company to be one hundred  percent (100%) of the fair market value of a share of
the Common Stock of the Company as of the Date of Grant, as a stock option under
the ONLINE STOCK MARKET GROUP 1998 Stock Option Plan (the "Plan").

THIS OPTION IS INTENDED TO BE AN INCENTIVE STOCK OPTION,  AS DESCRIBED IN ss.422
OF THE INTERNAL  REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),  BUT THE COMPANY
DOES NOT  REPRESENT OR WARRANT THAT THIS OPTION  NECESSARILY  QUALIFIES AS SUCH.
YOUR ABILITY TO RECEIVE THE TAX  TREATMENT  ACCORDED TO INCENTIVE  STOCK OPTIONS
UPON EXERCISE OF THIS OPTION AND THE SALE OF THE STOCK ACQUIRED UPON EXERCISE IS
SUBJECT TO TIMING  REQUIREMENTS  SET FORTH IN THE CODE.  YOU SHOULD CONSULT WITH
YOUR OWN TAX ADVISOR REGARDING THE TAX EFFECTS OF THIS OPTION.

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1. Signature on Option Agreement

         You cannot exercise this option unless you first sign this Agreement in
the place  provided  and return it to the  Secretary  of the Company  before the
close of business on the 20th day after the Date of Grant. If you fail to do so,
this  option  will  terminate  and be of no effect.  However,  your  signing and
delivering  this letter will not bind you to purchase any of the shares  subject
to this option.

2. Term of Option and Vesting

         Subject to the  provisions of Sections 5 and 6 below,  you may exercise
this option at any time during a period of one hundred  twenty (120) months from
the Date of Grant in accordance with the following schedule:

         a. You may not  exercise  this option with  respect to any shares until
         _________. On _____________,  you may exercise this option with respect
         to _______________ shares of the Company's Common Stock.

         b. For each full month after __________________,  you may exercise this
         option for an additional ________ shares of the Company's Common Stock.

         You may exercise all or any unexercised portion of this option any time
prior to or upon the expiration of one hundred twenty (120) months from the Date
of Grant.  If you do not  exercise  all of this option prior to or on that date,
all of your  rights to  exercise  any  unexercised  portion of this  option will
immediately terminate.

3. Method of Exercising Option.

         a.  Notice  and  Payment - General  This  option  may be  exercised  by
delivering to the Secretary of the Company payment in full at the Exercise Price
for the number of shares being purchased in cash,  certified or cashier's check,
personal  bank  check  or the  equivalent  thereof  acceptable  to the  Company,
together with a written notice in a form satisfactory to the Company,  signed by
you  specifying the number of shares you then desire to purchase and the time of
delivery  thereof,  which shall not be less than  fifteen (15) days and not more
than thirty (30) days after the giving of such notice.

         b.  Alternative   Forms  of  Payment  The  Company  may,  in  its  sole
discretion,  agree to allow you to make payment of the exercise price in any one
of the following forms:

                  i. The  surrender of shares of the  Company's  stock which you
own having a value,  as determined by the Company,  equal to the exercise price,
provided that if you are subject to short-swing  profit  liability  under '16 of
the Exchange  Act, the timing of the exercise must satisfy the  requirements  of
Rule 16b-3 of the SEC;

                  ii. The delivery of a recourse  promissory note signed by you,
provided  that the  promissory  note shall be due and payable not more than four
(4) years after this option is exercised

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and that  interest  shall be payable at least  annually  at a rate not less than
that necessary to avoid assessment of imputed interest under the Code; or

                  iii. The assignment by you of the proceeds of the sale of some
or all of the shares being acquired upon exercise of this option.

         The  Company  shall be under no  obligation  to allow you to use any of
these  alternative  forms of payment of the  purchase  price.  Furthermore,  the
Company  may  place  additional  conditions  upon your use of these  methods  of
payment of the Exercise Price if it believes, in its sole discretion, that it is
in the best interests of the Company to do so.

         c.  Fractional  Shares.  The  Company  shall not be  required  to issue
fractional shares upon the exercise of this option.

         d.  Securities  Laws  Restrictions.  The  Company  has granted you this
option  pursuant  to an  exemption  from the  registration  requirements  of the
Securities  Act of 1933 (the "Act") set forth in Rule 701 of the  Securities and
Exchange Commission,  and it is anticipated that the exemption contained in that
Rule will apply to your exercise of this option.  If for any reason that Rule or
successor  thereto is not available to the exercise of this option,  this option
may not be exercised unless a registration  statement under the Act is in effect
with respect to the shares  issuable  upon exercise of this option or, if in the
opinion  of  counsel  to the  Company,  another  exemption  to the  registration
requirements is available. The availability of any exemption to the registration
requirements may be conditioned,  among other things, upon the Company's receipt
of written  representations from you regarding your investment experience,  your
receipt  of  financial  and  other  information   regarding  the  Company,   and
representations  from you that you will not resell or  otherwise  dispose of the
shares you are acquiring  other than in accordance  with Rule 144 of the SEC. If
an exemption to the  registration  requirements  is not  available,  the Company
shall be under no  obligation  to register the shares you may receive  under the
Act.  As a result,  it is  possible  that you may not be able to  exercise  this
option when you desire to do so.

         e.  Withholding.  If you incur a tax liability in connection  with this
option,  the Company may, in its  discretion,  allow you to satisfy  federal and
state tax  withholding  requirements  by having the  Company  withhold  from the
shares to be issued to you upon  exercise  of this  option that number of shares
with a fair market value equal to the amount of tax to be withheld. The value of
the shares to be withheld shall be determined on the date that the amount of tax
to be  withheld  is  ascertained.  You must make this  election in writing on or
before the date that the amount of tax is determined and you may not revoke this
election  after you make it. If the Company  decides not to allow you to satisfy
your  withholding  obligations in this manner,  the Company may require you as a
condition to your  exercise of this option to pay in cash or cash  equivalent to
the Company  the amount of your  withholding  obligations  on or before the date
that payment of withholding taxes is due.

4. Nontransferability of Option.

         This  option  shall not be  transferable  except by Will or the laws of
descent and distribution,  and this option may be exercised during your lifetime
only by you. Any  purported  transfer or

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assignment  of this  option  shall be void and of no effect,  and shall give the
Company  the right to  terminate  this  option as of the date of such  purported
transfer or assignment.

5. Termination of Employment.

         a. Termination:  General.  Notwithstanding the provisions of Section 2,
if your status as employee of the  Company is  terminated  for any reason  other
than death or  disability,  you may exercise this option within three (3) months
from the effective  date of such  termination to the extent you were entitled to
exercise this option on the date of termination,  after which you will no longer
have any rights to  exercise  this  option.  If your  status as an  employee  is
terminated due to death or disability,  you (or your qualified representative or
estate,  as the case may be) may exercise  this option within twelve (12) months
from the date you died or became  disabled to extent to which you were  entitled
to exercise this option on the date of death or disability, after which time you
will no longer  have any rights to  exercise  this  option.  The  definition  of
"disability" for purposes of this agreement shall be that set forth in '22(e)(3)
of the Internal Revenue Code of 1986, as amended (the "Code"), or such successor
provision under the Code as is in effect as of the date of such  disability.  In
no event may you exercise  this option after the  expiration of the term of this
option.

         b. Leave of Absence. For the purposes of this Agreement, your status as
an employee shall not be deemed  terminated if you take any military leave, sick
leave or other  leave of absence  approved by the Company of ninety (90) days or
less. If the leave extends beyond that time,  your  employment will be deemed to
have terminated on the ninety-first (91st) day after the leave began unless your
right to  reemployment  is guaranteed by statute or contract.  There shall be no
continued  vesting  of  shares  as  provided  in  Section  2 while you are on an
approved leave unless the Company  otherwise  agrees or  continuation of vesting
during your leave of absence is required by law.

6. Termination of Options Upon Certain Events.

         a. General. Except as otherwise provided in this Section 6, this option
shall  terminate  immediately,  notwithstanding  the fact that this option could
otherwise be exercised,  two (2) business days prior to the occurrence of any of
the following events:

                  i. The merger or consolidation of the Company,  whether or not
the  Company  is the  surviving  corporation,  if the  beneficial  owners of the
Company's securities immediately prior to the merger or consolidation as a group
are the beneficial owners of less than 50% of the surviving entity's outstanding
voting securities immediately after the merger or consolidation;

                  ii. The sale or  exchange of all or  substantially  all of the
outstanding voting securities of the Company;

                  iii.  The sale,  exchange or transfer of all or  substantially
all of the assets of the Company other than in the ordinary  course of business;
or

                  iv. The dissolution or liquidation of the Company.

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         b. No  Assumption of  Obligations.  Although the Company may attempt to
negotiate with the surviving,  continuing, successor or acquiring corporation or
entity,  as the case may be (the  "Acquiror")  for the  Acquiror  to assume  the
obligations of the Company with respect to the outstanding options, the Acquiror
shall not be required to assume these obligations or provide  substitute options
unless the Acquiror  agrees to do so. The Company shall not be liable in any way
if the Acquiror  does not agree to assume the Company's  obligations  or provide
substitute options.

         c.  Notice  of Event.  If the  Acquiror  does not  agree to assume  the
obligations of the Company under this  agreement,  the Company shall provide you
with notice of any event  described  in  subsection  6.a above no later than ten
(10) calendar days before it occurs.

         d. No  Cancellation  of  Options.  There  shall be no  cancellation  of
options  under this  Section 6 if the  Acquiror  was an affiliate of the Company
immediately prior to the event described in 6.a.i, 6.a.ii or 6.a.iii above or is
a  person,  group or  other  entity  which  beneficially  owned  over 10% of the
Company's outstanding voting stock immediately prior to the event.

7. Adjustment of and Changes in the Shares.

         a.  Adjustments.  If: (i) the shares of the Company's  Common Stock are
changed  into  a  different  number  of  shares  by  reason  of  reorganization,
recapitalization,  combination  of shares,  stock split,  reverse stock split or
reclassification;  (ii) the Company  declares  and pays a stock  dividend on the
Common Stock;  or (iii) the Company's  Common Stock is changed into or exchanged
for a different  type of security due to any  reorganization,  recapitalization,
reclassification   or  similar  event,   the  Company  shall  make   appropriate
adjustments in the number of shares or kind of securities which you may purchase
upon exercise of this option so that your proportionate shareholding interest in
the  Company  represented  by  unexercised  portion  of  this  option  shall  be
maintained as before the event. Adjustments in this option shall be made without
change to the total price of the  unexercised  portion of this option and with a
corresponding adjustment in the option price per share.

         b. No Additional  Rights.  Except as expressly provided in this Section
7, you  shall  have no rights by  reason  of any of the  following  events:  (1)
subdivision  or  consolidation  of shares  of stock of any  class  issued by the
Company;  (2)  payment  by the  Company  of any  stock  dividend;  (3) any other
increase  or  decrease  in the number of shares of stock of any  class;  (4) any
dissolution,  liquidation,  merger,  consolidation,  spin-off or  acquisition of
assets or stock of another  corporation by the Company.  Other than as set forth
in subsection 7.a, no issuance by the Company of shares of stock of any class or
securities  convertible  into  shares of any class,  or the  conversion  of such
securities  into shares of any class of stock,  shall affect the number or price
of shares of Common Stock  subject to this option,  and no  adjustment by reason
thereof shall be made.

         c. No Limitation on Company's  Rights.  Nothing in this Agreement shall
affect  in any way the  right  or  power  of the  Company  to make  adjustments,
reclassifications,  reorganizations  or  changes  of  its  capital  or  business
structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or
any part of its business or assets.

8. Rights as a Shareholder.

         You shall have no rights as a shareholder by virtue of possessing  this
option and no such  rights  with  respect to any shares of stock  issuable  upon
exercise  of this  option  until  the  date you are  issued a stock  certificate
evidencing  the your  ownership of the shares.  No adjustment  shall be made

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for  dividends or other rights for which the record date is prior to the date of
such issuance, except as provided in Section 7 hereof.

9. Right of First Refusal.

         a. General. If you propose to sell, pledge or otherwise transfer any of
the shares you acquire upon the  exercise of this option to any person  pursuant
to a bona fide offer,  the Company shall have the right to purchase those shares
(the "Offered  Shares") from you pursuant to the terms and  conditions set forth
below (hereafter referred to as the "Right of First Refusal").

         b. Notice of Proposed Transfer.  Before you transfer any of the Offered
Shares,  you shall  provide the  Company  with a written  notice (the  "Transfer
Notice")  setting forth the number of shares you wish to transfer,  the identity
of the proposed  transferee,  the price at which the Offered Shares are proposed
to be transferred and all of the material terms of the proposed transfer. If the
Company  wishes to exercise  the Right of First  Refusal with respect to some or
all of these  shares,  the Company  must so notify you no later than thirty (30)
days after its receipt of the  Transfer  Notice  (the  "Election  Notice").  The
Company  shall then be  entitled to  purchase  the number of Offered  Shares set
forth in the  Election  Notice  at the  price  and  pursuant  to the  terms  and
conditions  contained in the Transfer Notice,  provided that the sale shall take
place on the  later of: i) the date upon  which  the  transfer  to the  proposed
transferee  was to take place;  or ii) sixty (60) days  following  the Company's
receipt of the Transfer Notice.  If the purchase price specified in the Transfer
Notice is payable in property  other than cash or debt,  the Company  shall have
the option of paying the  purchase  price in cash equal to the fair market value
of that  property,  as determined  in the good faith  discretion of the Board of
Directors of the Company.

         c. Shares Not  Purchased.  Offered  Shares  which the Company  does not
elect to  purchase  and which are  transferred  to the  proposed  transferee  in
accordance  with the Transfer  Notice shall not be subject to the Right of First
Refusal after the transfer  occurs.  The Right of First Refusal will continue to
apply to all shares purchasable upon exercise of this option,  including but not
limited to the Offered Shares, if the transfer does not take place in accordance
with the Transfer Notice or if the transfer violates subsection 9.g.

         d. Change in Offer. If the offer from the proposed  transferee pursuant
to which you propose to transfer  these shares is amended in any way which makes
the offer materially more favorable to the proposed  transferee,  or if the date
for completion of the sale is extended more than sixty (60) days beyond that set
forth in the Transfer Notice,  the amended or extended offer shall be considered
a new offer.  No shares may be sold to the proposed  transferee  on the basis of
that new offer  unless  the shares are  re-offered  to the  Company on the terms
contained in the new offer in accordance  with the  procedures set forth in this
Section 9.

         e.  Involuntary  Transfers.  If any  of the  shares  you  acquire  upon
exercise  of this  option are sold or  otherwise  transferred  pursuant to court
order, foreclosure or otherwise by operation of law (other than upon death under
the conditions set forth in subsection 9.f), the Company shall have the right to
purchase  the shares from you or, if title to these shares has been given to the
transferee,  from the transferee in accordance  with the procedures set forth in
subsection  9.b. You or, if title to these

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shares has already been transferred,  the transferee must transmit copies of the
court order or notice of  foreclosure  or sale to the Company  together with the
Transfer Notice. If the proposed transferee is required to provide consideration
in exchange  for the shares,  the  purchase  price for the shares by the Company
shall be the amount of that  consideration.  If no price capable of valuation is
given, the purchase price for the shares by the Company shall be the fair market
value of the shares as determined in the good faith discretion of the Company.

         f. Transfers Not Subject to Right of First Refusal.  The Right of First
Refusal shall not apply to any transfer of shares acquired upon exercise of this
option to: i) your  spouse,  children or your lineal  descendants  or to a trust
established  for your  benefit or the benefit of these  persons;  or ii) to your
estate  and,  thereafter,  your  ancestors,  descendants  or  spouse  by Will or
intestate succession following your death,  provided that each transferee agrees
in writing in a form acceptable to the Company that the transferee will abide by
all of the  provisions of this Section 9 and  acknowledging  that the shares are
subject to the Right of First Refusal and other  provisions  of this  Agreement.
Transfers  of shares by gift other than as provided for in this  subsection  9.f
are prohibited.

         g. Transfers in Bad Faith.  If the Company  concludes that any transfer
described  in a  Transfer  Notice  is not bona  fide,  or if a  transfer  is not
otherwise  made in  accordance  with the  requirements  of this  Section  9, the
Company may refuse to recognize  that  transfer in its  shareholder  records and
that purported transfer will be null and void.

         h.  Assignment  of Right of First  Refusal.  The Company may assign its
Right of First Refusal to one or more of the Company's  shareholders at any time
with respect to some or all of the shares which are proposed to be transferred.

         i. Termination of Right of First Refusal. This Section 9 shall cease to
be in effect upon the occurrence of any of the following events:

                  i. The  closing of an  underwritten  public  offering  for the
Company's  Common  Stock  (or any  equity  securities  of a class  which  may be
purchased   upon  the  exercise  of  this  option)   pursuant  to  an  effective
registration  statement filed with the Securities and Exchange  Commission under
the  Securities  Act;  provided that the gross  proceeds to the Company from the
offering, after underwriter's discounts and commissions, exceed $5,000,000;

                  ii. The listing of the Company's Common Stock (or other equity
securities  of a class which may be purchased  upon the exercise of this option)
on a  national  securities  exchange  (as  that  term is used in the  Securities
Exchange  Act of 1934),  on the Nasdaq  National  Market or the Nasdaq  SmallCap
Market;

                  iii.  The  occurrence  of  any  of  the  events  described  in
subsection 6.a.

10. Notification of Sale.

         If the right of first refusal has been terminated,  you agree to notify
the Company of a sale,  pledge or other  transfer of any of the shares  acquired
upon exercise of this option not more than five (5) days after the sale,  pledge
or other transfer.

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11. Restrictions on Sales under Securities Laws.

                  a. Federal Securities Laws. The shares which are issuable upon
the exercise of this option have not been  registered  under the Securities Act.
As a  consequence,  you will not be able to sell,  pledge or otherwise  transfer
these shares unless they are  registered  under the Securities Act or unless the
sale complies with the  requirements  of SEC Rule 701 or SEC Rule 144 or, in the
opinion  of  counsel  to the  Company,  another  exemption  to the  registration
requirements  is  available  to the  transaction.  You should be aware that your
ability to sell,  pledge or  otherwise  transfer  these shares may be subject to
substantial  restrictions  under the Securities Act and the rules of the SEC. No
sale,  pledge or other  transfer of these shares will be allowed  unless you are
able to  demonstrate  to the  satisfaction  of the  Company  that  the  proposed
transfer  complies with the Securities Act and the rules of the SEC. If you wish
for information on whether a proposed  transfer may violate these  restrictions,
you should contact the Secretary of the Company or your own counsel.

                  b. The shares  issuable  upon the exercise of this option have
not been  registered or qualified  under the securities laws of any other state.
If the  securities  laws of any  other  state  require  that the  Company  place
limitations  on the  transferability  of these  shares,  these shares may not be
transferred  unless  you are  able to  demonstrate  to the  satisfaction  of the
Company that the proposed transfer complies with that state's law.

12.  Restrictive Legends.

                  The Company may place  restrictive  legends on the certificate
or  certificates  representing  the shares  issued upon  exercise of this option
referring  the Right of First  Refusal set forth in Section 9 of this  Agreement
and any  restrictions on transfer under federal and applicable  state securities
laws.  Upon the request of the Company,  you shall promptly  provide the Company
with any and all certificates representing shares acquired upon exercise of this
option in order to allow the Company to attach  applicable  legends.  Unless the
Company determines otherwise, the legends which may be placed on the certificate
or certificates representing the shares may include, but are not limited to, the
following:

                  a. "THE SHARES  EVIDENCED  BY THIS  CERTIFICATE  HAVE NOT BEEN
REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED (THE  "ACT").  THESE
SHARES MAY NOT BE SOLD,  HYPOTHECATED,  ASSIGNED OR OTHERWISE TRANSFERRED UNLESS
THERE IS AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THESE SHARES OR THE
COMPANY  RECEIVES  EVIDENCE  REASONABLY   SATISFACTORY  TO  IT  THAT  THE  SALE,
HYPOTHECATION,  ASSIGNMENT  OR OTHER  TRANSFER IS EXEMPT  FROM THE  REGISTRATION
REQUIREMENT OF THE ACT.

                  b. "THE SHARES  EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO A
RIGHT OF FIRST REFUSAL IN FAVOR OF THE  CORPORATION OR ITS ASSIGNEES.  THE TERMS
OF THE  RIGHT OF  FIRST  REFUSAL  ARE  CONTAINED  IN AN  AGREEMENT  BETWEEN  THE
CORPORATION  AND THE  REGISTERED  HOLDER OF THE  SHARES,  A COPY OF WHICH MAY BE
REVIEWED  UPON WRITTEN  REQUEST MADE TO THE  SECRETARY OF

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<PAGE>

THE CORPORATION. ANY TRANSFER OF THE SHARES IN VIOLATION OF THIS AGREEMENT SHALL
BE VOID."

13.  Market Standoff Agreement.

         You agree that, in connection  with any  registration  of the Company's
securities  under the Securities Act of 1933, upon the request of the Company or
the underwriters managing any public offering of the Company's  securities,  you
will not sell or otherwise  dispose of any shares you acquire  upon  exercise of
this option without the prior written consent of the Company or the underwriters
for such period as the Company or the  underwriters  may specify;  provided that
such period shall not exceed 180 days from the registration of the securities.

14. Subject to Terms of the Plan.

         This  Agreement  shall be  subject  in all  respects  to the  terms and
conditions of the Plan, and if the terms of this Agreement and the Plan conflict
in any  way,  the  terms  of the  Plan  shall  control.  Your  signature  herein
represents your  acknowledgment of receipt of a copy of the Plan. Any dispute or
disagreement  which shall arise  under,  or as a result of, or pursuant to, this
Agreement  shall be finally and  conclusively  determined  by the Company in its
sole discretion, and such determination shall be binding upon all parties.

15. Exercise of Option Conditioned on Approval.

         This option shall become null and void,  and you may not exercise  this
option,  unless the  shareholders  of the Company approve the Plan within twelve
months of the date the Plan was adopted by the Company's Board of Directors.

16.  Taxes.

         This option is  intended to be an  incentive  stock  option  within the
meaning of ?422 of the Code,  and  taxation  thereof  (with  respect to both the
Company and you or your estate)  shall be governed by  applicable  provisions of
the Code. Your ability to receive the tax treatment  accorded to incentive stock
options upon the exercise of this option and the sale of the stock acquired upon
exercise  is subject to timing  requirements  set forth in the Code.  You should
consult with your tax advisor if you have questions  regarding the tax effect of
this option.

17.  Not an Employment Contract.

         This Agreement shall not be deemed to be an agreement to employ you for
a specific  term or to limit in any way the right of the  Company  to  terminate
your employment at any time with or without cause.

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<PAGE>

18. Entire Agreement.

         This document,  the Plan and all  attachments to this document  contain
the entire  agreement  between you and the Company  with  respect to the subject
matter  contained  herein  and  supersede  in their  entirety  any  previous  or
contemporaneous  agreements,  whether  oral or  written,  with  respect  to that
subject matter.

19.  No Waiver or Amendment.

         This  Agreement may not be amended or modified  except with the signed,
written consent of the parties to such amendment or modification. No right shall
be deemed waived  without the written  consent of the party charged with waiving
such right.  The Company may at any time terminate or amend the Plan;  provided,
however,  that no such termination or amendment may adversely affect your rights
under this Agreement.

20.  Governing Law.

         This  Agreement  shall be governed by and construed in accordance  with
the  laws  of the  State  of  California,  exclusive  of its  conflicts  of laws
provisions.

                                            ONLINE STOCK MARKET GROUP

                                            By: _______________________

                                            Its: ______________________

                                       10
<PAGE>

         I acknowledge  receipt of this Agreement and a copy of the ONLINE STOCK
MARKET GROUP 1999 Stock Option Plan. I have reviewed  this  Agreement and accept
the terms and conditions thereof.

Date: _______________                        ____________________________
                                               [Signature of Optionee]

                                             ____________________________
                                          [Printed or Typed Name of Optionee]

                                       11THIS OPTION MAY BE EXERCISED  ONLY IN ACCORDANCE  WITH THE TERMS OF THE PLAN AND
THIS  AGREEMENT.  ONLY CERTAIN  PROVISIONS  OF THE PLAN ARE  SUMMARIZED  IN THIS
AGREEMENT. A COPY OF THE PLAN IS PROVIDED WITH THIS AGREEMENT.

                         ONLINE STOCK MARKET GROUP(TM)

                      NONSTATUTORY STOCK OPTION AGREEMENT

Date of Grant:________________

TO: __________________

        We are  pleased  to notify  you that  Online  Stock  Market  Group  (the
"Company")  on this day hereby  grants to you an option to  purchase  all or any
part of _____________  shares of the Common Stock of the Company at the price of
$_____  per share  (the  "Exercise  Price"),  which has been  determined  by the
Company to be one hundred  percent (100%) of the fair market value of a share of
the Common Stock of the Company as of the Date of Grant, as a stock option under
the Online Stock Market Group 1998 Stock Option Plan (the "Plan").

THIS OPTION IS NOT AN INCENTIVE STOCK OPTION, AS DESCRIBED IN SECTION 422 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").  YOU SHOULD CONSULT WITH
YOUR OWN TAX ADVISOR REGARDING THE TAX EFFECTS OF THIS OPTION.

                                       1
<PAGE>

1. Signature on Option Agreement

         You cannot exercise this option unless you first sign this Agreement in
the place  provided  and return it to the  Secretary  of the Company  before the
close of business on the 20th day after the Date of Grant. If you fail to do so,
this  option  will  terminate  and be of no effect.  However,  your  signing and
delivering  this letter will not bind you to purchase any of the shares  subject
to this option.

2. Term of Option and Vesting

         Subject to the provisions of Sections and below,  you may exercise this
option at any time during a period of one hundred  twenty  (120) months from the
Date of Grant in accordance with the following schedule:

         a. As of the date of grant,  you may exercise  this option with respect
         to _________ shares of the Company's Common Stock.

         b. For each full month after the Date of Grant,  you may exercise  this
         option  for an  additional  _________  shares of the  Company's  Common
         Stock.

         You may exercise all or any unexercised portion of this option any time
prior to or upon the expiration of one hundred twenty (120) months from the Date
of Grant.  If you do not  exercise  all of this option prior to or on that date,
all of your  rights to  exercise  any  unexercised  portion of this  option will
immediately terminate.

3. Method of Exercising Option.

         a.  Notice  and  Payment - General  This  option  may be  exercised  by
delivering to the Secretary of the Company payment in full of the Exercise Price
for the number of shares being purchased in cash,  certified or cashier's check,
personal  bank  check  or the  equivalent  thereof  acceptable  to the  Company,
together with a written notice in a form satisfactory to the Company,  signed by
you  specifying the number of shares you then desire to purchase and the time of
delivery  thereof,  which shall not be less than  fifteen (15) days and not more
than thirty (30) days after the giving of such notice.

         b.  Alternative   Forms  of  Payment  The  Company  may,  in  its  sole
discretion,  agree to allow you to make payment of the exercise price in any one
of the following forms:

                  i. The  surrender of shares of the  Company's  stock which you
own having a value,  as determined by the Company,  equal to the exercise price,
provided that if you are subject to short-swing  profit liability  underss.16 of
the Exchange  Act, the timing of the exercise must satisfy the  requirements  of
Rule 16b-3 of the SEC;

                  ii. The delivery of a recourse  promissory note signed by you,
provided  that the  promissory  note shall be due and payable not more than four
(4) years after this option is exercised

                                       2
<PAGE>

and that  interest  shall be payable at least  annually  at a rate not less than
that necessary to avoid assessment of imputed interest under the Code; or

                  iii. The assignment by you of the proceeds of the sale of some
or all of the shares being acquired upon exercise of this option.

         The  Company  shall be under no  obligation  to allow you to use any of
these  alternative  forms of payment of the  purchase  price.  Furthermore,  the
Company  may  place  additional  conditions  upon your use of these  methods  of
payment of the Exercise Price if it believes, in its sole discretion, that it is
in the best interests of the Company to do so.

         c.  Fractional  Shares.  The  Company  shall not be  required  to issue
fractional shares upon the exercise of this option.

         d.  Securities  Laws  Restrictions.  The  Company  has granted you this
option  pursuant  to an  exemption  from the  registration  requirements  of the
Securities  Act of 1933 (the "Act") set forth in Rule 701 of the  Securities and
Exchange Commission,  and it is anticipated that the exemption contained in that
Rule will apply to your exercise of this option.  If for any reason that Rule or
successor  thereto is not available to the exercise of this option,  this option
may not be exercised unless a registration  statement under the Act is in effect
with respect to the shares  issuable  upon exercise of this option or, if in the
opinion  of  counsel  to the  Company,  another  exemption  to the  registration
requirements  is  available.  The  availability  of  such  an  exemption  may be
conditioned,  among other  requirements,  upon the Company's  receipt of written
representations from you regarding your investment  experience,  your receipt of
financial and other information  regarding the Company, and representations from
you  that you will  not  resell  or  otherwise  dispose  of the  shares  you are
acquiring  other than in accordance with Rule 144 of the SEC. If an exemption to
the  registration  requirements is not available,  the Company shall be under no
obligation to register the shares you may receive under the Act. As a result, it
is possible  that you may not be able to exercise this option when you desire to
do so.

         e.  Withholding.  If you incur a tax liability in connection  with this
option,  the Company may, in its  discretion,  allow you to satisfy  federal and
state tax  withholding  requirements  by having the  Company  withhold  from the
shares to be issued to you upon  exercise  of this  option that number of shares
with a fair market value equal to the amount of tax to be withheld. The value of
the shares to be withheld shall be determined on the date that the amount of tax
to be  withheld  is  ascertained.  You must make this  election in writing on or
before the date that the amount of tax is determined and you may not revoke this
election  after you make it. If the Company  decides not to allow you to satisfy
your  withholding  obligations in this manner,  the Company may require you as a
condition to your  exercise of this option to pay in cash or cash  equivalent to
the Company  the amount of your  withholding  obligations  on or before the date
that payment of withholding taxes is due.

4. Nontransferability of Option.

         This  option  shall not be  transferable  except by Will or the laws of
descent and distribution. This option may be exercised during your lifetime only
by you. Any purported transfer or

                                       3
<PAGE>

assignment  of this  option  shall be void and of no effect,  and shall give the
Company  the right to  terminate  this  option as of the date of such  purported
transfer or assignment.

5. Termination of Employment.

         a. Termination: General. Notwithstanding the provisions of Section , if
your status as employee of the Company is  terminated  for any reason other than
death or  disability,  you may exercise this option within thirty (30) days from
the  effective  date of such  termination  to the  extent you were  entitled  to
exercise this option on the date of termination,  after which you will no longer
have any rights to  exercise  this  option.  If your  status as an  employee  is
terminated due to death or disability,  you (or your qualified representative or
estate,  as the case may be) may exercise this option within six (6) months from
the date you died or became  disabled  to extent to which you were  entitled  to
exercise  this  option on the date of death or  disability.  The  definition  of
"disability"  for  purposes  of this  agreement  shall  be  that  set  forth  in
ss.22(e)(3)  of the Internal  Revenue Code of 1986, as amended (the "Code"),  or
such successor  provision  under the Code as is in effect as of the date of such
disability,  except that the actual or  anticipated  duration of the  disability
shall be six (6) months.  In no event may you  exercise  this  option  after the
expiration of the term of this option.

         b. Leave of Absence. For the purposes of this Agreement, your status as
an employee shall not be deemed  terminated if you take any military leave, sick
leave or other  leave of absence  approved by the Company of ninety (90) days or
less. If the leave extends beyond that time,  your  employment will be deemed to
have terminated on the ninety-first (91st) day after the leave began unless your
right to  reemployment  is guaranteed by statute or contract.  There shall be no
continued  vesting of shares as provided in Section while you are on an approved
leave unless the Company otherwise agrees or continuation of vesting during your
leave of absence is required by law.

6. Termination of Option Upon Certain Events.

         a. General.  Except as otherwise provided in this Section , this option
shall  terminate  immediately,  notwithstanding  the fact that this option could
otherwise be exercised,  two (2) business days prior to the occurrence of any of
the following events:

                  i. The merger or consolidation of the Company,  whether or not
the  Company  is the  surviving  corporation,  if the  beneficial  owners of the
Company's securities immediately prior to the merger or consolidation as a group
are the beneficial owners of less than 50% of the surviving entity's outstanding
voting securities immediately after the merger or consolidation;

                  ii. The sale or  exchange of all or  substantially  all of the
outstanding voting securities of the Company;

                  iii.  The sale,  exchange or transfer of all or  substantially
all of the assets of the Company other than in the ordinary  course of business;
or

                  iv. The dissolution or liquidation of the Company.

                                       4
<PAGE>

         b. No  Assumption of  Obligations.  Although the Company may attempt to
negotiate with the surviving,  continuing, successor or acquiring corporation or
entity,  as the case may be (the  "Acquiror")  for the  Acquiror  to assume  the
obligations of the Company with respect to the outstanding options, the Acquiror
shall not be required to assume these obligations or provide  substitute options
unless the Acquiror  agrees to do so. The Company shall not be liable in any way
if the Acquiror  does not agree to assume the Company's  obligations  or provide
substitute options.

         c.  Notice  of Event.  If the  Acquiror  does not  agree to assume  the
obligations of the Company under this  agreement,  the Company shall provide you
with notice of any of the events described in subsection above no later than ten
(10) calendar days before it occurs or eight (8) calendar days before the option
is terminated pursuant to this Section, whichever is the first to occur.

         d. No  Cancellation  of  Options.  There  shall be no  cancellation  of
options  under this  Section if the  Acquiror  was an  affiliate  of the Company
immediately prior to the event described in , or above or is a person,  group or
other  entity which  beneficially  owned over 10% of the  Company's  outstanding
voting stock immediately prior to the event.

7. Adjustment of and Changes in the Shares.

         a.  Adjustments.  If: (i) the shares of the Company's  Common Stock are
changed  into  a  different  number  of  shares  by  reason  of  reorganization,
recapitalization,  combination  of shares,  stock split,  reverse stock split or
reclassification;  (ii) the Company  declares  and pays a stock  dividend on the
Common Stock;  or (iii) the Company's  Common Stock is changed into or exchanged
for a different  type of security due to any  reorganization,  recapitalization,
reclassification   or  similar  event,   the  Company  shall  make   appropriate
adjustments in the number of shares or kind of securities which you may purchase
upon exercise of this option so that your proportionate shareholding interest in
the  Company  represented  by  unexercised  portion  of  this  option  shall  be
maintained as before the event. Adjustments in this option shall be made without
change to the total price of the  unexercised  portion of this option and with a
corresponding adjustment in this option price per share.

         b. No Additional Rights. Except as expressly provided in this Section ,
no  issuance  by the  Company  of  shares  of stock of any  class or  securities
convertible  into shares of any class, or the conversion of such securities into
shares of any  class of stock,  shall  affect  the  number or price of shares of
Common Stock subject to this option,  and no adjustment by reason  thereof shall
be made.

         c. No Limitation on Company's  Rights.  Nothing in this Agreement shall
affect  in any way the  right  or  power  of the  Company  to make  adjustments,
reclassifications,  reorganizations  or  changes  of  its  capital  or  business
structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or
any part of its business or assets.

8. Rights as a Shareholder.

         You shall have no rights as a shareholder by virtue of possessing  this
option and no such  rights  with  respect to any shares of stock  issuable  upon
exercise  of this  option  until  the  date you are  issued a stock  certificate
evidencing  the your  ownership of the shares.  No adjustment  shall be made

                                       5
<PAGE>

for  dividends or other rights for which the record date is prior to the date of
such issuance, except as provided in Section hereof.

9. Right of First Refusal.

         a. General. If you propose to sell, pledge or otherwise transfer any of
the shares you acquire upon the  exercise of this option to any person  pursuant
to a bona fide offer,  the Company shall have the right to purchase those shares
(the "Offered  Shares") from you pursuant to the terms and  conditions set forth
below (hereafter the "Right of First Refusal").

         b. Notice of Proposed Transfer.  Before you transfer any of the Offered
Shares,  you shall  provide the  Company  with a written  notice (the  "Transfer
Notice")  setting forth the number of shares you wish to transfer,  the identity
of the proposed  transferee,  the price at which the Offered Shares are proposed
to be transferred and all of the material terms of the proposed transfer. If the
Company  wishes to exercise  the Right of First  Refusal with respect to some or
all of these  shares,  the Company  must so notify you no later than thirty (30)
days after its receipt of the  Transfer  Notice  (the  "Election  Notice").  The
Company  shall then be  entitled to  purchase  the number of Offered  Shares set
forth in the  Election  Notice  at the  price  and  pursuant  to the  terms  and
conditions  contained in the Transfer Notice,  provided that the sale shall take
place on the  later of: i) the date upon  which  the  transfer  to the  proposed
transferee  was to take place;  or ii) sixty (60) days  following  the Company's
receipt of the Transfer Notice.  If the purchase price specified in the Transfer
Notice is payable in property  other than cash or debt,  the Company  shall have
the option of paying the  purchase  price in cash equal to the fair market value
of that  property,  as determined  in the good faith  discretion of the Board of
Directors of the Company.

         c. Shares Not  Purchased.  Offered  Shares  which the Company  does not
elect to  purchase  and which are  transferred  to the  proposed  transferee  in
accordance  with the Transfer  Notice shall not be subject to the Right of First
Refusal after the transfer  occurs.  The Right of First Refusal will continue to
apply to all shares purchasable upon exercise of this option,  including but not
limited to the Offered Shares, if the transfer does not take place in accordance
with the Transfer Notice or if the transfer violates subsection .

         d. Change in Offer. If the offer from the proposed  transferee pursuant
to which you propose to transfer  these shares is amended in any way which makes
the offer materially more favorable to the proposed  transferee,  or if the date
for completion of the sale is extended more than sixty (60) days beyond that set
forth in the Transfer Notice,  the amended or extended offer shall be considered
a new offer.  No shares may be sold to the proposed  transferee  on the basis of
that new offer  unless  the shares are  re-offered  to the  Company on the terms
contained in the new offer in accordance  with the  procedures set forth in this
Section .

         e.  Involuntary  Transfers.  If any  of the  shares  you  acquire  upon
exercise  of this  option are sold or  otherwise  transferred  pursuant to court
order, foreclosure or otherwise by operation of law (other than upon death under
the  conditions  set forth in  subsection ), the Company shall have the right to
purchase  the shares from you or, if title to these shares has been given to the
transferee,  from the transferee in accordance  with the procedures set forth in
subsection . You or, if title to these

                                       6
<PAGE>

shares has already been transferred,  the transferee must transmit copies of the
court order or notice of  foreclosure  or sale to the Company  together with the
Transfer Notice. If the proposed transferee is required to provide consideration
in exchange  for the shares,  the  purchase  price for the shares by the Company
shall be the amount of that  consideration.  If no price capable of valuation is
given, the purchase price for the shares by the Company shall be the fair market
value of the shares as determined in the good faith discretion of the Company.

         f. Transfers Not Subject to Right of First Refusal.  The Right of First
Refusal shall not apply to any transfer of shares acquired upon exercise of this
option to: i) your  spouse,  children or your lineal  descendants  or to a trust
established  for your  benefit or the benefit of these  persons;  or ii) to your
estate  and,  thereafter,  your  ancestors,  descendants  or  spouse  by Will or
intestate succession following your death,  provided that each transferee agrees
in writing in a form acceptable to the Company that the transferee will abide by
all of the  provisions  of this  Section and  acknowledging  that the shares are
subject to the Right of First Refusal and other  provisions  of this  Agreement.
Transfers  of shares by gift other than as provided for in this  subsection  are
prohibited.

         g. Transfers in Bad Faith.  If the Company  concludes that any transfer
described in a Transfer  Notice is not bona fide, or if a transfer  otherwise is
not made in accordance  with the  requirements of this Section , the Company may
refuse to recognize that transfer in its shareholder  records and that purported
transfer will be null and void.

         h.  Assignment  of Right of First  Refusal.  The Company may assign its
Right of First Refusal to one or more of the Company's  shareholders at any time
with respect to some or all of the shares which are proposed to be transferred.

         i.  Termination of Right of First Refusal.  This Section shall cease to
be in effect upon the occurrence of any of the following events:

                  i. The  closing of an  underwritten  public  offering  for the
Company's  Common  Stock  (or any  equity  securities  of a class  which  may be
purchased   upon  the  exercise  of  this  option)   pursuant  to  an  effective
registration  statement filed with the Securities and Exchange  Commission under
the  Securities  Act;  provided that the gross  proceeds to the Company from the
offering, after underwriter's discounts and commissions, exceed $5,000,000;

                  ii. The listing of the Company's Common Stock (or other equity
securities  of a class which may be purchased  upon the exercise of this option)
on a  national  securities  exchange  (as  that  term is used in the  Securities
Exchange Act of 1934), the Nasdaq National Market or the Nasdaq SmallCap Market.

                  iii. The occurrence of any of the events  described in Section
6.a.

10. Notification of Sale.

         If the Right of First Refusal has been terminated,  you agree to notify
the Company of a sale,  pledge or other  transfer of any of the shares  acquired
upon exercise of this option not more than five (5) days after the sale,  pledge
or other transfer.

                                       7
<PAGE>

11. Restrictions on Sales under Securities Laws.

         a. Federal  Securities  Laws.  The shares  which are issuable  upon the
exercise of this option have not been registered  under the Securities Act. As a
consequence,  you will not be able to sell,  pledge or otherwise  transfer these
shares unless they are  registered  under the  Securities Act or unless the sale
complies  with the  requirements  of SEC  Rule  701 or SEC  Rule 144 or,  in the
opinion  of  counsel  to the  Company,  another  exemption  to the  registration
requirements  is  available  to the  transaction.  You should be aware that your
ability to sell,  pledge or  otherwise  transfer  these shares may be subject to
substantial  restrictions  under the Securities Act and the rules of the SEC. No
sale,  pledge or other  transfer of these shares will be allowed  unless you are
able to  demonstrate  to the  satisfaction  of the  Company  that  the  proposed
transfer  complies with the Securities Act and the rules of the SEC. If you wish
for information on whether a proposed  transfer may violate these  restrictions,
you should contact the Secretary of the Company or your own counsel.

         b. The shares  issuable  upon the exercise of this option have not been
registered or qualified  under the  securities  laws of any other state.  If the
securities laws of any other state require that the Company place limitations on
the transferability of these shares,  these shares may not be transferred unless
you are able to demonstrate to the satisfaction of the Company that the proposed
transfer complies with that state's law.

12. Restrictive Legends.

         The  Company  may  place  restrictive  legends  on the  certificate  or
certificates  representing  the  shares  issued  upon  exercise  of this  option
referring the Right of First Refusal set forth in Section of this  Agreement and
any restrictions on transfer under federal and applicable state securities laws.
Upon the request of the Company, you shall promptly provide the Company with any
and all certificates  representing  shares acquired upon exercise of this option
in order to allow the Company to attach applicable  legends.  Unless the Company
determines  otherwise,  the legends  which may be placed on the  certificate  or
certificates  representing  the shares may include,  but are not limited to, the
following:

         a. "THE SHARES  EVIDENCED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES  ACT OF 1933, AS AMENDED (THE "ACT").  THESE SHARES MAY NOT
BE SOLD,  HYPOTHECATED,  ASSIGNED OR  OTHERWISE  TRANSFERRED  UNLESS THERE IS AN
EFFECTIVE  REGISTRATION  STATEMENT  WITH  RESPECT TO THESE SHARES OR THE COMPANY
RECEIVES EVIDENCE  REASONABLY  SATISFACTORY TO IT THAT THE SALE,  HYPOTHECATION,
ASSIGNMENT OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION  REQUIREMENT OF THE
ACT."

         b. "THE SHARES  EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT OF
FIRST REFUSAL IN FAVOR OF THE  CORPORATION  OR ITS  ASSIGNEES.  THE TERMS OF THE
RIGHT OF FIRST REFUSAL ARE CONTAINED IN AN AGREEMENT BETWEEN THE CORPORATION AND
THE  REGISTERED  HOLDER  OF THE  SHARES,  A COPY OF WHICH MAY BE  REVIEWED  UPON
WRITTEN  REQUEST MADE TO THE SECRETARY OF

                                       8
<PAGE>

THE CORPORATION. ANY TRANSFER OF THE SHARES IN VIOLATION OF THIS AGREEMENT SHALL
BE VOID."

13. Market Standoff Agreement.

         You agree that, in connection  with any  registration  of the Company's
securities  under the  Securities  Act,  upon the  request of the Company or the
underwriters managing any public offering of the Company's securities,  you will
not sell or otherwise  dispose of any shares you acquire  upon  exercise of this
option without the prior written consent of the Company or the  underwriters for
such period as the Company or the underwriters  may specify;  provided that such
period shall not exceed 180 days from the registration of the securities.

14. Subject to Terms of the Plan.

         This  Agreement  shall be  subject  in all  respects  to the  terms and
conditions of the Plan, and if the terms of this Agreement and the Plan conflict
in any  way,  the  terms  of the  Plan  shall  control.  Your  signature  herein
represents your  acknowledgment of receipt of a copy of the Plan. Any dispute or
disagreement  which shall arise  under,  or as a result of, or pursuant to, this
Agreement  shall be finally and  conclusively  determined  by the Company in its
sole discretion, and such determination shall be binding upon all parties.

15. Tax Consequences: Advice.

         This option is not an incentive  stock option,  as that term is defined
in the Code. There are certain tax consequences to you upon the exercise of this
option and the sale of the shares which you acquired upon exercise.  The Company
shall not be responsible  for providing you with advice on the tax  consequences
of exercising this option and/or selling the shares acquired thereunder.

16. Not an Employment Contract.

         This Agreement shall not be deemed to be an agreement to employ you for
a specific  term or to limit in any way the right of the  Company  to  terminate
your employment at any time with or without cause.

17.       Entire Agreement.

        This document, the Plan and all attachments to this document contain the
entire agreement  between you and the Company with respect to the subject matter
contained herein and supersede in their entirety any previous or contemporaneous
agreements, whether oral or written, with respect to that subject matter.

                                       9
<PAGE>

18. No Waiver or Amendment.

         This  Agreement  may not be amended or modified  except with the signed
written consent of the parties to such amendment or modification. No right shall
be deemed waived  without the written  consent of the party charged with waiving
such right.  The Company may at any time terminate or amend the Plan;  provided,
however,  that no such termination or amendment may adversely affect your rights
under this Agreement.

19. Governing Law.

         This  Agreement  shall be governed by and construed in accordance  with
the laws of the State of California applicable to transactions occurring between
residents of and entirely within that state.

                                      ONLINE STOCK MARKET GROUP

                                      By: _______________________

                                      Its: ______________________

                                       10
<PAGE>

         I acknowledge  receipt of this Agreement and a copy of the Online Stock
Market Group 1998 Stock Option Plan. I have reviewed  this  Agreement and accept
the terms and conditions thereof.

Date: _______________                       ________________________________
                                                   [Name of Recipient]

                                       11

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