Document:

WARRANT TO PURCHASE UP TO 1,500,000
SHARES OF COMMON STOCK

Exercisable Commencing September 28, 1999;
Void after September 28, 2004

THIS CERTIFIES that, for value received, Alpha
Venture Capital, Inc., a Cook Islands corporation or
its registered assigns (the "Warrantholder"), is
entitled, subject to the terms and conditions set
forth in this Warrant, to purchase from eConnect, a
Nevada corporation ("Company"), up to one million
five hundred thousand (1,500,000) fully paid, duly
authorized and nonassessable shares of common stock
("Shares"), $0.001 par value per share, of the
Company ("Common Stock"), at any time commencing
September 28, 1999 and continuing up to 5:00 p.m.
Pacific Daylight Time on September 28, 2004 (the
"Exercise Period") at an exercise price of eighty
percent (80%) of the closing bid price of the Common
Stock on the Effective Date, as defined in the
accompanying Registration Rights Agreement, as
reported by Bloomberg, LP, subject to adjustment
pursuant to Section 8 hereof.

This Warrant is subject to the following
provisions, terms and conditions:

Section 1.	Transferability.

1.1	Registration.  The Warrants shall be issued
only in registered form.

1.2	Transfer.  This Warrant shall be transferable only
on the books of the Company maintained at its principal
executive offices upon surrender thereof for registration
of transfer duly endorsed by the Warrantholder or by its duly
authorized attorney or representative, or accompanied
by proper evidence of succession, assignment or authority to
transfer.  Upon any registration of transfer, the Company shall
execute and deliver a new Warrant or Warrants in appropriate
denominations to the person or persons entitled thereto.

1.3	Common Stock to be Issued.	Upon the exercise of any Warrants
and upon receipt by the Company of a facsimile or original of
Warrantholder's signed Election to Exercise Warrant (See Exhibit
A), Company shall instruct its transfer agent to issue
stock certificates, subject to the restrictive legend
set forth below, in the name of Warrantholder (or its
nominee) and in such denominations to be specified by
Warrantholder representing the number of shares of
Common Stock issuable upon such exercise, as applicable.
Company warrants that no instructions, other than these
instructions, have been given or will be given to the transfer
agent and that the Common Stock shall otherwise be freely
transferable on the books and records of the Company.  It shall
be the Company's responsibility to take all necessary
actions and to bear all such costs to issue the
certificate of Common Stock as provided herein,
including the responsibility and cost for delivery of
an opinion letter to the transfer agent, if so
required.  The person in whose name the certificate
of Common Stock is to be registered shall be treated
as a shareholder of record on and after the exercise
date. Upon surrender of any Warrant that is to be
converted in part, the Company shall issue to the
Warrantholder a new Warrant equal to the unconverted
amount, if so requested by Purchaser:

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL
NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED, AND THE RULES AND
REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT"),
AND MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
REGISTRATION UNDER OR AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT.

Section 2.	Exchange of Warrant Certificate.
 Any Warrant certificate may be exchanged for another
certificate or certificates of like tenor entitling
the Warrantholder to purchase a like aggregate number
of Shares as the certificate or certificates
surrendered then entitle such Warrantholder to
purchase.  Any Warrantholder desiring to exchange a
warrant certificate shall make such request in
writing delivered to the Company, and shall
surrender, properly endorsed, the certificate
evidencing the Warrant to be so exchanged.
Thereupon, the Company shall execute and deliver to
the person entitled thereto a new Warrant certificate
as so requested.

Section 3.	Terms of Warrants: Exercise of Warrants.

(a)	(i)  Subject to the terms of this Warrant, the
Warrantholder shall have the right, at any time after
September 28, 1999, but before 5:00 p.m. Pacific
Daylight Time on September 28, 2004, ("Expiration
Time"), to purchase from the Company up to the number
of Shares which the Warrantholder may at the time be
entitled to purchase pursuant to the terms of this
Warrant, upon surrender to the Company at its
principal executive office, of the certificate
evidencing this Warrant to be exercised, together
with the attached Election to Exercise Warrant form
duly filled in and signed, and upon payment to the
Company of the Warrant Price (as defined in and
determined in accordance with the provisions of
Section 7 and 8 hereof) or as provided in Section
3(a)(i) hereof, for the number of Shares with respect
to which such Warrant is then exercised.  Payment of
the aggregate Warrant Price shall be made in cash,
wire transfer or by cashier's check or any
combination thereof.

(b)	Subject to the terms of this Warrant, upon
such surrender of this Warrant and payment of such
Warrant Price as aforesaid, the Company shall
promptly issue and cause to be delivered to the
Warrantholder or to such person or persons as the
Warrantholder may designate in writing, a certificate
or certificates (in such name or names as the
Warrantholder may designate in writing) for the
number of duly authorized, fully paid and non-
assessable whole Shares to be purchased upon the
exercise of this Warrant, and shall deliver to the
Warrantholder Common Stock or cash, to the extent
provided in Section 9 hereof, with respect to any
fractional Shares otherwise issuable upon such
surrender.  Such certificate or certificates shall be
deemed to have been issued and any person so
designated to be named therein shall be deemed to
have become a holder of such Shares as of the close
of business on the date of the surrender of this
Warrant and payment of the Warrant Price,
notwithstanding that the certificates representing
such Shares shall not actually have been delivered or
that the Share and Warrant transfer books of the
Company shall then be closed.  This Warrant shall be
exercisable, at the sole election of the
Warrantholder, either in full or from time to time in
part and, in the event that any certificate
evidencing this Warrant (or any portion thereof) is
exercised prior to the Termination Date with respect
to less than all of the Shares specified therein at
any time prior to the Termination Date, a new
certificate of like tenor evidencing the remaining
portion of this Warrant shall be issued by the
Company, if so requested by the Warrantholder.

(c)	Upon the Company's receipt of a facsimile
or original of Warrantholder's signed Election to
Exercise Warrant, the Company shall instruct its
transfer agent to issue one or more stock
Certificates representing that number of shares of
Common Stock which the Warrantholder is entitled to
purchase in accordance with the terms and conditions
of this Warrant and the Election to Exercise Warrant
attached hereto.  The Company shall act as Registrar
and shall maintain an appropriate ledger containing
the necessary information with respect to each
Warrant.

(d)	Such exercise shall be effectuated by
surrendering to the Company, or its attorney, the
Warrants to be converted together with a facsimile or
original of the signed Election to Exercise Warrant
which evidences Warrantholder's intention to exercise
those Warrants indicated.  The date on which the
Election to Exercise Warrant is effective ("Exercise
Date") shall be deemed to be the date on which the
Warrantholder has delivered to the Company a
facsimile or original of the signed Election to
Exercise Warrant, as long as the original Warrants to
be exercised are received by the Company or its
designated attorney within five (5) business days
thereafter.  As long as the Warrants to be exercised
are received by the Company within five (5) business
days after it receives a facsimile or original of the
signed Election to Exercise Warrant, the Company
shall deliver to the Warrantholder, or per the
Warrantholder's instructions, the shares of Common
Stock within three (3) business days of receipt of
the Warrants to be converted.

(e)	Nothing contained in this Warrant shall be
deemed to establish or require the payment of
interest to the Warrantholder at a rate in excess of
the maximum rate permitted by governing law.  In the
event that the rate of interest required to be paid
exceeds the maximum rate permitted by governing law,
the rate of interest required to be paid thereunder
shall be automatically reduced to the maximum rate
permitted under the governing law and such excess
shall be returned with reasonable promptness by the
Warrantholder to the Company.

(f)	It shall be the Company's responsibility to
take all necessary actions and to bear all such costs
to issue the Certificate of Common Stock as provided
herein, including the responsibility and cost for
delivery of an opinion letter to the transfer agent,
if so required.  The person in whose name the
certificate of Common Stock is to be registered shall
be treated as a shareholder of record on and after
the exercise date. Upon surrender of any Warrants
that are to be converted in part, the Company shall
issue to the Warrantholder new Warrants equal to the
unconverted amount, if so requested by Warrantholder.

(g)	The Company shall at all times reserve and
have available all Common Stock necessary to meet
exercise of the Warrants by all Warrantholders of the
entire amount of Warrants then outstanding.  If, at
any time Warrantholder submits an Election to
Exercise Warrant and the Company does not have
sufficient authorized but unissued shares of Common
Stock available to effect, in full, a exercise of the
Warrants (a "Exercise Default", the date of such
default being referred to herein as the "Exercise
Default Date"), the Company shall issue to the
Warrantholder all of the shares of Common Stock which
are available, and the Election to Exercise Warrant
as to any Warrants requested to be converted but not
converted (the "Unconverted Warrants"), upon
Warrantholder's sole option, may be deemed null and
void.  The Company shall provide notice of such
Exercise Default ("Notice of Exercise Default") to
all existing Warrantholders of outstanding Warrants,
by facsimile, within one (1) business day of such
default  (with the original delivered by overnight or
two day courier), and the Warrantholder shall give
notice to the Company by facsimile within five (5)
business days of receipt of the original Notice of
Exercise Default (with the original delivered by
overnight or two day courier) of its election to
either nullify or confirm the Election to Exercise
Warrant.

(h)	The Company shall furnish to Warrantholder
such number of prospectuses and other documents
incidental to the registration of the shares of
Common Stock underlying the Warrants, including any
amendment of or supplements thereto.  Warrantholder
shall acknowledge in writing the receipt, the careful
reading, and the understanding thereof, prior to any
exercise under this Section 3.

(i)	Each person in whose name any certificate
for shares of Common Stock shall be issued shall for
all purposes be deemed to have become the holder of
record of the Common Stock represented thereby on the
date on which the Warrant was surrendered and payment
of the purchase price and any applicable taxes was
made, irrespective of date of issue or delivery of
such certificate, except that if the date of such
surrender and payment is a date when the Shares
transfer books of the Company are closed, such person
shall be deemed to have become the holder of such
Shares on the next succeeding date on which such
Share transfer books are open.  The Company shall not
close such Share transfer books at any one time for a
period longer than seven (7)  days.

(j)	This Warrant is exercisable in whole or in
part at the Exercise Price per share of Common Stock
(as defined hereafter) payable hereunder, payable in
cash or by certified or official bank check, or by
"cashless exercise", by means of tendering this
Warrant Certificate to the Company to receive a
number of shares of Common Stock equal in Market
Value to the difference between the Market Value of
the shares of Common Stock issuable upon exercise of
this Warrant and the total cash exercise price
thereof.  Upon surrender of this Warrant Certificate
with the annexed Notice of Exercise duly executed,
together with payment of the Exercise Price for the
shares of Common Stock purchased, the Holder shall be
entitled to receive a certificate or certificates for
the shares of Common Stock so purchased.  For the
purposes of this subsection, "Market Value" shall be
an amount equal to the average closing bid price of a
share of Common Stock for the ten (I 0) days
preceding the Company's receipt of the Notice of
Exercise Form duly executed multiplied by the number
of shares of Common Stock to be issued upon surrender
of this Warrant Certificate.

Section 4. 	Payment of Taxes.  The Company shall
pay all documentary stamp taxes, if any, attributable
to the initial issuance of the Shares; provided,
however, that the Company shall not be required to
pay any tax or taxes which may be payable, (i) with
respect to any secondary transfer of this Warrant or
the Shares or (ii) as a result of the issuance of the
Shares to any person other than the Warrantholder,
and the Company shall not be required to issue or
deliver any certificate for any Shares unless and
until the person requesting the issuance thereof
shall have paid to the Company the amount of such tax
or shall have produced evidence that such tax has
been paid to the appropriate taxing authority.

Section 5.	Mutilated or Missing Warrant.
In case the certificate or certificates evidencing
this Warrant shall be mutilated, lost, stolen or
destroyed, the Company shall, at the request of the
Warrantholder, issue and deliver in exchange and
substitution for and upon cancellation of the
mutilated certificate or certificates, or in lieu of
and substitution for the certificate or certificates
lost, stolen or destroyed, a new Warrant certificate
or certificates of like tenor and representing an
equivalent right or interest, but only upon receipt
of evidence satisfactory to the Company of such loss,
theft or destruction of such Warrant and of a bond of
indemnity, if requested, also satisfactory to the
Company in form and amount, and issued at the
applicant's cost.  Applicants for such substitute
Warrant certificate shall also comply with such other
reasonable regulations and pay such other reasonable
charges as the Company may prescribe.

Section 6.	Reservation of Shares. The
issuance, sale and delivery of the Warrants have been
duly authorized by all required corporate action on
the part of the Company and when issued, sold and
delivered in accordance with the terms hereof and
thereof for the consideration expressed herein and
therein, will be duly and validly issued, fully paid,
and non-assessable and enforceable in accordance with
their terms, subject to the laws of bankruptcy and
creditors' rights generally.  The Company shall pay
all taxes in respect of the issue thereof.  As a
condition precedent to the taking of any action that
would result in the effective purchase price per
share of Common Stock upon the exercise of this
Warrant being less than the par value per share (if
such shares of Common Stock then have a par value),
the Company will take such corporate action as may,
in the opinion of its counsel, be necessary in order
that the Company may comply with all its obligations
under this Agreement with regard to the exercise of
this Warrant.

	Section 7.	Warrant Price.  During the
Exercise Period, the price per Share ("Warrant
price") at which Shares shall be purchasable upon the
exercise of this Warrant shall be eighty percent
(80%) of the closing bid price of the Common Stock on
the Effective Date as reported by Bloomberg, LP,
subject to adjustment pursuant to Section 8 hereof.

Section 8.	Adjustment of Warrant Price and
Number of Shares.  The number and kind of securities
purchasable upon the exercise of this Warrant and the
Warrant Price shall be subject to adjustment from
time to time after the date hereof upon the happening
of certain events, as follows:

8.1	Adjustments.  The number of Shares
purchasable upon the exercise of this Warrant shall
be subject to adjustments as follows:

	(a)	In case the Company shall (i) pay a dividend on
Common Stock in Common Stock or securities convertible into,
exchangeable for or otherwise entitling a holder thereof to
receive Common Stock, (ii) declare a dividend payable in cash
on its Common Stock and at substantially the same time offer
its shareholders a right to purchase new Common Stock (or
securities convertible into, exchangeable for or other entitling
a holder thereof to receive Common Stock) from the proceeds of such
dividend (all Common Stock so issued shall be deemed to have been
issued as a stock dividend), (iii) subdivide its outstanding shares
of Common Stock into a greater number of shares of Common Stock,
(iv) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock, or (v) issue by
reclassification of its Common Stock any shares of Common Stock of
the Company, the number of shares of Common Stock issuable upon
exercise of the Warrants immediately prior thereto shall be adjusted
so that the holders of the Warrants shall be entitled to receive
after the happening of any of the events described above that
number and kind of shares as the holders would have received
had such Warrants been converted immediately prior to the happening
of such event or any record date with respect thereto.  Any
adjustment made pursuant to this subdivision shall become effective
immediately after the close of business on the record date in the
case of a stock dividend and shall become effective immediately
after the close of business on the effective date in the
case of a stock split, subdivision, combination or reclassification.

(b)	In case the Company shall distribute,
without receiving consideration therefor, to all
holders of its Common Stock evidences of its
indebtedness or assets (excluding cash dividends
other than as described in Section (8)(a)(ii)), then
in such case, the number of shares of Common Stock
thereafter issuable upon exercise of the Warrants
shall be determined by multiplying the number of
shares of Common Stock theretofore issuable upon
exercise of the Warrants, by a fraction, of which the
numerator shall be the closing bid price per share of
Common Stock on the record date for such
distribution, and of which the denominator shall be
the closing bid price of the Common Stock less the
then fair value (as determined by the Board of
Directors of the Company, whose determination shall
be conclusive) of the portion of the assets or
evidences of indebtedness so distributed per share of
Common Stock.  Such adjustment shall be made whenever
any such distribution is made and shall become
effective immediately after the record date for the
determination of stockholders entitled to receive
such distribution.

(c)	Any adjustment in the number of shares of
Common Stock issuable hereunder otherwise required to
be made by this Section 8 will not have to be
adjusted if such adjustment would not require an
increase or decrease in one percent (1%) or more in
the number of shares of Common Stock issuable upon
exercise of the Warrant.  No adjustment in the number
of Shares purchasable upon exercise of this Warrant
will be made for the issuance of shares of capital
stock to directors, employees or independent
Warrantors pursuant to the Company's or any of its
subsidiaries' stock option, stock ownership or other
benefit plans or arrangements or trusts related
thereto or for issuance of any shares of Common Stock
pursuant to any plan providing for the reinvestment
of dividends or interest payable on securities of the
Company and the investment of additional optional
amounts in shares of Common Stock under such plan.

(d)	Whenever the number of shares of Common
Stock issuable upon the exercise of the Warrants is
adjusted, as herein provided the Warrant Price shall
be adjusted (to the nearest cent) by multiplying such
Warrant Price immediately prior to such adjustment by
a fraction, of which the numerator shall be the
number of shares of Common Stock issuable upon the
exercise of each share of the Warrants immediately
prior to such adjustment, and of which the
denominator shall be the number of shares of Common
Stock issuable immediately thereafter.

(e)	The Company from time to time by action of
its Board of Directors may decrease the Warrant Price
 by any amount for any period of time if the period
is at least twenty (20) days, the decrease is
irrevocable during the period and the Board of
Directors of the Company in its sole discretion shall
have made a determination that such decrease would be
in the best interest of the Company, which
determination shall be conclusive.  Whenever the
Warrant Price is decreased pursuant to the preceding
sentence, the Company shall mail to holders of record
of the Warrants a notice of the decrease at least
fifteen (15) days prior to the date the decreased
Warrant Price takes effect, and such notice shall
state the decreased Warrant Price and the period it
will be in effect.

8.2	Mergers, Etc.		In the case of any (i)
consolidation or merger of the Company into any
entity (other than a consolidation or merger that
does not result in any reclassification, exercise,
exchange or cancellation of outstanding shares of
Common Stock of the Company), (ii) sale, transfer,
lease or conveyance of all or substantially all of
the assets of the Company as an entirety or
substantially as an entirety, or (iii)
reclassification, capital reorganization or change of
the Common Stock (other than solely a change in par
value, or from par value to no par value), in each
case as a result of which shares of Common Stock
shall be converted into the right to receive stock,
securities or other property (including cash or any
combination thereof), each holder of Warrants then
outstanding shall have the right thereafter to
exercise such Warrant only into the kind and amount
of securities, cash and other property receivable
upon such consolidation, merger, sale, transfer,
capital reorganization or reclassification by a
holder of the number of shares of Common Stock of the
Company into which such Warrants would have been
converted immediately prior to such consolidation,
merger, sale, transfer, capital reorganization or
reclassification, assuming such holder of Common
Stock of the Company (A) is not an entity with which
the Company consolidated or into which the Company
merged or which merged into the Company or to which
such sale or transfer was made, as the case may be
("constituent entity"), or an affiliate of a
constituent entity, and (B) failed to exercise his or
her rights of election, if any, as to the kind or
amount of securities, cash and other property
receivable upon such consolidation, merger, sale or
transfer (provided that if the kind or amount of
securities, cash and other property receivable upon
such consolidation, merger, sale or transfer is not
the same for each share of Common Stock of the
Company held immediately prior to such consolidation,
merger, sale or transfer by other than a constituent
entity or an affiliate thereof and in respect of
which such rights or election shall not have been
exercised ("non-electing share"), then for the
purpose of this Section 8.2 the kind and amount of
securities, cash and other property receivable upon
such consolidation, merger, sale or transfer by each
non-electing share shall be deemed to be the kind and
amount so receivable per share by a plurality of the
non-electing shares).  If necessary, appropriate
adjustment shall be made in the application of the
provision set forth herein with respect to the rights
and interests thereafter of the holder of Warrants,
to the end that the provisions set forth herein shall
thereafter correspondingly be made applicable, as
nearly as may reasonably be, in relation to any
shares of stock or other securities or property
thereafter deliverable on the exercise of the
Warrants.  The above provisions shall similarly apply
to successive consolidations, mergers, sales,
transfers, capital reorganizations and
reclassifications.  The Company shall not effect any
such consolidation, merger, sale or transfer unless
prior to or simultaneously with the consummation
thereof the successor company or entity (if other
than the Company) resulting from such consolidation,
merger, sale or transfer assumes, by written
instrument, the obligation to deliver to the holder
of Warrants such shares of stock, securities or
assets as, in accordance with the foregoing
provision, such holder may be entitled to receive
under this Section 8.2.

8.3	Statement of Warrants.	Irrespective of
any adjustments in the Warrant Price of the number or
kind of shares purchasable upon the exercise of this
Warrant, this Warrant certificate or certificates
hereafter issued may continue to express the same
price and number and kind of shares as are stated in
this Warrant.

Section 9.	Fractional Shares.
Any fractional shares of Common Stock issuable upon
exercise of the Warrants shall be rounded to the
nearest whole share or, at the election of the
Company, the Company shall pay the holder thereof an
amount in cash equal to the closing bid price
thereof.  Whether or not fractional shares are
issuable upon exercise shall be determined on the
basis of the total number of Warrants the holder is
at the time exercising and the number of shares of
Common Stock issuable upon such exercise.

Section 10.	No Rights as Stockholders:
Notices to Warrantholders.  Nothing contained in this
Warrant shall be construed as conferring upon the
Warrantholder or its transferees any rights as a
stockholder of the Company, including the right to
vote, receive dividends, consent or receive notices
as a stockholder with respect to any meeting of
stockholders for the election of directors of the
Company or any other matter.  If, however, at any
time prior to the Expiration Time and prior to the
exercise of this Warrant, any of the following events
shall occur:

(a)	any action which would require an
adjustment pursuant to Section 8.1; or

(b)	a dissolution, liquidation or winding up of the
Company or any consolidation, merger or sale of its
property, assets and business as an entirety; then in
any one or more of said events, the Company shall
give notice in writing of such event to the
Warrantholder at least ten (10) days prior to the
date fixed as a record date or the date of closing
the transfer books for the determination of the
shareholders entitled to any relevant dividend,
distribution, subscription rights, or other rights or
for the effective date of any dissolution,
liquidation of winding up or any merger,
consolidation, or sale of substantially all assets,
but failure to mail or receive such notice or any
defect therein or in the mailing thereof shall not
affect the validity of any such action taken.  Such
notice shall specify such record date or the
effective date, as the case may be.

Section 11.	Registration Rights.  The Company
shall prepare and file with the U.S. Securities and
Exchange Commission, no later than five (5) days
after the Effective Date (as defined therein) of a
Registration Rights Agreement between the parties, a
post-effective amendment to the Registration
Statement on Form SB-2/A declared effective on
September 7, 1999 ("Registration Statement"),
covering a sufficient number of shares of Common
Stock to cover the conversion of this Warrant.  If at
any time the number of shares of Common Stock into
which this Warrant shall be converted exceeds the
aggregate number of shares of Common Stock then
registered, the Company shall, within ten (10)
business days after receipt of written notice from
the Warrantholder, file with the SEC an additional
Registration Statement on Form SB-2 or any other
applicable registration statement, to register the
shares of Common Stock into which this Warrant may be
converted that exceed the aggregate number of shares
of Common Stock already registered.

Section 13.	Miscellaneous.

(a)	Benefits of this Agreement.  Nothing in this
Warrant shall be construed to give to any person or
corporation other than the Company and the
Warrantholder any legal or equitable right, remedy or
claim under this Warrant, and this Warrant shall be
for the sole and exclusive benefit of the Company and
the Warrantholder.

(b)	Rights Cumulative; Waivers.  The rights of each
of the parties under this Warrant are cumulative.
The rights of each of the parties hereunder shall not
be capable of being waived or varied other than by an
express waiver or variation in writing.  Any failure
to exercise or any delay in exercising any of such
rights shall not operate as a waiver or variation of
that or any other such right.  Any defective or
partial exercise of any of such rights shall not
preclude any other or further exercise of that or any
other such right.  No act or course of conduct or
negotiation on the part of any party shall in any way
preclude such party from exercising any such right or
constitute a suspension or any variation of any such
right.

(c)	Benefit; Successors Bound.  This Warrant and the
terms, covenants, conditions, provisions,
obligations, undertakings, rights, and benefits
hereof, shall be binding upon, and shall inure to the
benefit of, the parties hereto and their heirs,
executors, administrators, representatives,
successors, and permitted assigns.

(d)	Entire Agreement.  This Warrant contains the
entire agreement between the parties with respect to
the subject matter hereof.  There are no promises,
agreements, conditions, undertakings, understandings,
warranties, covenants or representations, oral or
written, express or implied, between them with
respect to this Warrant or the matters described in
this Warrant, except as set forth in this Warrant.
Any such negotiations, promises, or understandings
shall not be used to interpret or constitute this
Warrant.

(e)	Assignment.  This Warrant may be assigned if the
Assignment of Warrant, attached as Exhibit B to this
Warrant, is properly completed, executed and
delivered to the Company.

(f)	Amendment.  This Warrant may be amended
only by an instrument in writing executed by the
parties hereto.

(g)	Severability.  Each part of this Warrant is
intended to be severable.  In the event that any
provision of this Warrant is found by any court or
other authority of competent jurisdiction to be
illegal or unenforceable, such provision shall be
severed or modified to the extent necessary to render
it enforceable and as so severed or modified, this
Warrant shall continue in full force and effect.

(h)	Notices.  Notices required or permitted to
be given hereunder shall be in writing and shall be
deemed to be sufficiently given when personally
delivered (by hand, by courier, by telephone line
facsimile transmission, receipt confirmed, or other
means) or sent by certified mail, return receipt
requested, properly addressed and with proper postage
pre-paid (i) if to the Company, at its executive
office (ii) if to the Subscriber, at the address set
forth under its name in the Purchase Agreement, with
a copy to its designated attorney and (iii) if to any
other Subscriber, at such address as such Subscriber
shall have provided in writing to the Company, or at
such other address as each such party furnishes by
notice given in accordance with this Section 12(b),
and shall be effective, when personally delivered,
upon receipt and, when so sent by certified mail,
four (4) business days after deposit with the United
States Postal Service.

(i)	Governing Law.  This Agreement shall be governed
by the interpreted in accordance with the laws of the
State of California without reference to its
conflicts of laws rules or principles.  Each of the
parties consents to the exclusive jurisdiction of the
federal courts of the State of California in
connection with any dispute arising under this
Agreement and hereby waives, to the maximum extent
permitted by law, any objection, including any
objection based on forum non coveniens, to the
bringing of any such proceeding in such
jurisdictions.

(j)	Consents.  The person signing this Warrant
on behalf of the Company hereby represents and
warrants that he has the necessary power, consent and
authority to execute and deliver this Warrant on
behalf of the Company.

(k)	Further Assurances.  In addition to the
instruments and documents to be made, executed and
delivered pursuant to this Warrant, the parties
hereto agree to make, execute and deliver or cause to
be made, executed and delivered, to the requesting
party such other instruments and to take such other
actions as the requesting party may reasonably
require to carry out the terms of this Warrant and
the transactions contemplated hereby.

(l)	Section Headings.  The Section headings in
this Warrant are for reference purposes only and
shall not affect in any way the meaning or
interpretation of this Warrant.

(m)	Construction.  Unless the context otherwise
requires, when used herein, the singular shall be
deemed to include the plural, the plural shall be
deemed to include each of the singular, and pronouns
of one or no gender shall be deemed to include the
equivalent pronoun of the other or no gender.

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

COMPANY:

eConnect

By: /s/  Thomas S. Hughes
   	Thomas S. Hughes, President

EXHIBIT A

ELECTION TO EXERCISE WARRANT

The undersigned hereby irrevocably elects to exercise
the right of purchase represented by the within
Warrant for, and to purchase thereunder,
_______shares of Common Stock ("Shares") provided for
therein, and requests that certificates for the
Shares be issued in the name of:*

Name:________________________________________________
Address:_____________________________________________
Social Security No.__________________________________
or Tax ID Number:____________________________________

and, if such number of Shares shall not be all of the
Shares purchasable under the Warrant, that a new
Warrant certificate for the balance of the Shares
purchasable under the within Warrant be registered in
the name of the undersigned Warrantholder or his
Assignee* as indicated below and delivered to the
address stated below:

Dated: _________________, 19___

Name of Warrantholder of
Assignee (Please Print)___________________________________

Address:___________________________________________________

Signature:_________________________________________________

Signature Guaranteed:_______________________________________
                            Signature of Guarantor

*	The Warrant contains restrictions on sale,
assignment or transfer.

**	Note:  The above signature must correspond with
the name as written on 	the face of this Warrant
certificate in every particular, without alteration
or enlargement or any change whatever, unless this
warrant has been assigned.

EXHIBIT B

ASSIGNMENT OF WARRANT

(To be signed only upon assignment of Warrant)*

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto

_____________________________________________________
_____________________________________________________
(Name and Address of Assignee must be Printed or
Typewritten)

the within Warrant, hereby irrevocably constituting
and appointing _________Attorney to transfer said
Warrant on the books of the Company, with full power
of substitution in the premises.

Dated: ___________________, 19____

________________________________**
Signature of Registered Holder

Signature Guaranteed:

________________________________
Signature of Guarantor

*	The Warrant contains restrictions on sale,
assignment or transfer.

**	Note:  The signature of this assignment must
correspond with the name as it appears upon the face
of the Warrant certificate in every particular,
without alteration or enlargement or any change
whatever.<PAGE>   1
                                                                     EXHIBIT 4.1

                             MEADE INSTRUMENTS CORP.

                       NONQUALIFIED STOCK OPTION AGREEMENT

         THIS NONQUALIFIED STOCK OPTION AGREEMENT (this "AGREEMENT") dated as of
the 6th day of January, 2000 by and between Meade Instruments Corp., a Delaware
corporation (the "COMPANY"), and Mario Costantino (the "OPTIONEE").

                                 R E C I T A L S

         WHEREAS, the Company has granted to the Optionee, effective as of the
6th day of January, 2000 (the "GRANT DATE"), a nonqualified stock option to
purchase all or any part of 25,000 shares of the Company's common stock, par
value $0.01 per share (the "COMMON STOCK"), subject to and upon the terms and
conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual promises and covenants
made herein and the mutual benefits to be derived herefrom and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the
parties agree as follows:

1.       GRANT OF OPTION. This Agreement evidences the Company's grant to the
         Optionee of the right and option to purchase, subject to and on the
         terms and conditions set forth herein, all or any part of 25,000 shares
         of the Company's Common Stock (the "SHARES") at the price of $27.00 per
         Share (the "OPTION"), exercisable from time to time, subject to the
         provisions of this Agreement, prior to the close of business on the day
         before the tenth anniversary of the Grant Date (the "EXPIRATION Date"),
         unless earlier terminated pursuant to Section 9. Such price equals the
         fair market value of the Common Stock as of the Grant Date.

2.       EXERCISABILITY OF OPTION. The Option shall first become and remain
         exercisable as to 1/4 of the shares on the first anniversary of the
         Grant Date and as to an additional 1/36 of the shares on and after the
         last day of each succeeding calendar month until all remaining Options
         have become exercisable. If the Optionee does not in any year purchase
         all or any part of the Shares to which the Optionee is entitled, the
         Optionee has the right cumulatively thereafter to purchase any Shares
         not so purchased and such right shall continue until the Option
         terminates or expires. The Option shall only be exercisable in respect
         of whole Shares, and fractional Share interests shall be disregarded.
         The Option may only be exercised as to at least one-hundred (100)
         Shares unless the number purchased is the total number at the time
         available for purchase under the Option.

3.       METHOD OF EXERCISE OF OPTION. The Option shall be exercisable by the
         delivery to the Secretary of the Company of a written notice stating
         the number of Shares to be purchased pursuant to the Option and
         accompanied by (i) delivery of an executed EXERCISE AGREEMENT in the
         form attached hereto as EXHIBIT A, (ii) payment of the full purchase
         price of the Shares to be purchased, and (iii) payment in full of any
         tax withholding obligation under federal, state or local law. Payment
         shall be made in one or

<PAGE>   2

         a combination of the following methods: (i) in cash or by electronic
         funds transfer; (ii) by check payable to the order of the Company;
         (iii) if authorized by the Board of Directors (the "BOARD"), by a
         promissory note of the Optionee upon the terms and conditions approved
         by the Board; (iv) by notice and third party payment in such manner as
         may be authorized by the Board; or (v) by the delivery of shares of
         Common Stock of the Company already owned by the Optionee, provided,
         however, that the Board may in its absolute discretion limit the
         Optionee's ability to exercise the Option by delivering such shares,
         and provided further that any shares delivered which were initially
         acquired upon exercise of a stock option must have been owned by the
         Optionee at least six months as of the date of delivery. Shares of
         Common Stock used to satisfy the exercise price of the Option shall be
         valued at their fair market value on the date of exercise.

4.       TAX WITHHOLDING.

         4.1. CASH OR SHARES. Upon any exercise of the Option, the Company shall
         have the right at its option to (i) require the Optionee (or personal
         representative or beneficiary, as the case may be) to pay or provide
         for payment of the amount of any taxes which the Company may be
         required to withhold with respect to the Option or (ii) deduct from any
         amount payable in cash the amount of any taxes which the Company may be
         required to withhold with respect to such cash payment. In any case
         where a tax is required to be withheld in connection with the delivery
         of shares of Common Stock, the Board may in its sole discretion grant
         to the Optionee the right to elect, pursuant to such rules and subject
         to such conditions as the Board may establish, to have the Company
         reduce the number of shares to be delivered by (or otherwise reacquire)
         the appropriate number of shares valued at their then fair market value
         to satisfy such withholding obligation.

         4.2. TAX LOANS. The Company may, in its discretion and to the extent
         permitted by law, authorize a loan to the Optionee in the amount of any
         taxes which the Company may be required to withhold with respect to
         shares of Common Stock received (or disposed of, as the case may be)
         pursuant to a transaction described in Section 4.1. Such a loan shall
         be for a term, at a rate of interest and pursuant to such other terms
         and conditions as the Company, under applicable law may establish.

5.       OPTION REPRICING/CANCELLATION AND REGRANT/WAIVER OF RESTRICTIONS. The
         Board from time to time may authorize, generally or in specific cases
         only, for the benefit of the Optionee any adjustment in the number of
         shares subject to, the restrictions upon or the term, exercise or
         purchase price or vesting schedule of the Option by cancellation of the
         Option and a subsequent regranting of the Option, by amendment, by
         substitution of the Option, by waiver or by other legally valid means.
         Such amendment or other action may result among other changes in an
         exercise or purchase price which is higher or lower than the exercise
         or purchase price of the original or prior Option, provide for a
         greater or lesser number of shares subject to the Option, or provide
         for a longer or shorter vesting or exercise period.

                                       2

<PAGE>   3

6.       RESTRICTIONS ON SHARES. The Certificate of Incorporation and Bylaws of
         the Company, as either of them may be amended from time to time, may
         provide for restrictions with respect to the Common Stock. To the
         extent that these restrictions and limitations are greater than those
         set forth in this Agreement, such restrictions and limitations shall
         apply to any securities acquired upon exercise of the Option and are
         incorporated herein by this reference.

7.       NO TRANSFERABILITY; LIMITED EXCEPTION TO TRANSFER RESTRICTIONS.

         7.1. LIMIT ON EXERCISE AND TRANSFER. Unless otherwise expressly
         provided in (or pursuant to) this Section 7 or by applicable law (i)
         the Option is non-transferable and shall not be subject in any manner
         to sale, transfer, anticipation, alienation, assignment, pledge,
         encumbrance or charge; the Option shall be exercised only by the
         Optionee; and (ii) amounts payable or shares issuable pursuant to the
         Option shall be delivered only to (or for the account of) the Optionee.

         7.2. EXCEPTIONS. The Board may permit the Option to be exercised by and
         paid only to certain persons or entities related to the Optionee,
         including but not limited to members of the Optionee's family,
         charitable institutions, or trusts or other entities whose
         beneficiaries or beneficial owners are members of the Optionee's family
         and/or charitable institutions, or to such other persons or entities as
         may be approved by the Board, pursuant to such conditions and
         procedures as the Board may establish. Any permitted transfer shall be
         subject to the condition that the Board receive evidence satisfactory
         to it that the transfer is being made for estate and/or tax planning
         purposes on a gratuitous or donative basis and without consideration
         (other than nominal consideration).

         7.3. FURTHER EXCEPTIONS TO LIMITS ON TRANSFER. The exercise and
         transfer restrictions in this Section 7 shall not apply to:

              (i)   transfers to the Company,

              (ii)  the designation of a beneficiary to receive benefits in the
                    event of the Optionee's death or, if the Optionee has died,
                    transfers to or exercise by the Optionee's beneficiary, or,
                    in the absence of a validly designated beneficiary,
                    transfers by will or the laws of descent and distribution,

              (iii) transfers pursuant to a qualified domestic relations order
                    if approved or ratified by the Board,

              (iv)  if the Optionee has suffered a disability, permitted
                    transfers or exercises on behalf of the Optionee by his or
                    her legal representative, or

              (v)   the authorization by the Board of "cashless exercise"
                    procedures with third parties who provide financing for the
                    purpose of (or who otherwise facilitate) the exercise of the
                    Option consistent with applicable laws and the express
                    authorization of the Board.

                                       3

<PAGE>   4

8.       NO EMPLOYMENT CONTRACT. Nothing contained in this Agreement shall
         confer upon the Optionee any right to continue in the employ or other
         service of the Company or any of its subsidiaries, nor constitute any
         contract or agreement of employment or other service, nor shall
         interfere in any way with the right of the Company to change the
         Optionee's compensation or other benefits or to terminate the
         employment of the Optionee, with or without cause; provided, however,
         that nothing contained in this Agreement shall adversely affect any
         independent contractual right of the Optionee without his or her
         consent thereto.

9.       ADJUSTMENT AND TERMINATION UPON CERTAIN EVENTS.

         9.1. ADJUSTMENTS. If there shall occur any extraordinary dividend or
         other extraordinary distribution in respect of the Common Stock
         (whether in the form of cash, Common Stock, other securities, or other
         property), or any reclassification, recapitalization, stock split
         (including a stock split in the form of a stock dividend), reverse
         stock split, reorganization, merger, combination, consolidation,
         split-up, spin-off, combination, repurchase, or exchange of Common
         Stock or other securities of the Company, or there shall occur any
         similar, unusual or extraordinary corporate transaction or event in
         respect of the Common Stock or a sale of substantially all the assets
         of the Company as an entirety, then the Board shall, in such manner and
         to such extent (if any) as it deems appropriate and equitable (1)
         proportionately adjust any or all of (a) the number and type of shares
         of Common Stock (or other securities) which thereafter may be made the
         subject of the Option, (b) the number, amount and type of shares of
         Common Stock (or other securities or property) subject to the Option,
         (c) the grant, purchase, or exercise price of the Option, (d) the
         securities, cash or other property deliverable upon exercise of the
         Option, or (e) the performance standards appropriate to the Option, or
         (2) in the case of an extraordinary dividend or other distribution,
         recapitalization, reclassification, merger, reorganization,
         consolidation, combination, sale of assets, split up, exchange, or spin
         off, make provision for a cash payment or for the substitution or
         exchange of the Option or the cash, securities or property deliverable
         to the Optionee based upon the distribution or consideration payable to
         holders of the Common Stock of the Company upon or in respect of such
         event. In any of such events, the Board may take such action
         sufficiently prior to such event if necessary to permit the Optionee to
         realize the benefits intended to be conveyed with respect to the
         underlying shares in the same manner as is available to stockholders
         generally.

         9.2. ACCELERATION OF AWARDS UPON CHANGE IN CONTROL. Unless the Board
         determines, prior to the occurrence of any of the following (each of
         which shall be hereafter referred to as a "Change in Control Event"):

              (i)   Approval by the stockholders of the Company of the
                    dissolution or liquidation of the Company;

                                       4

<PAGE>   5

              (ii)  Approval by the stockholders of the Company of an agreement
                    to merge or consolidate, or otherwise reorganize, with or
                    into one or more entities that are not subsidiaries or other
                    affiliates, as a result of which less than 50% of the
                    outstanding voting securities of the surviving or resulting
                    entity immediately after the reorganization are, or will be,
                    owned, directly or indirectly, by stockholders of the
                    Company immediately before such reorganization (assuming for
                    purposes of such determination that there is no change in
                    the record ownership of the Company's securities from the
                    record date for such approval until such reorganization and
                    that such record owners hold no securities of the other
                    parties to such reorganization, but including in such
                    determination any securities of the other parties to such
                    reorganization held by affiliates of the Company);

              (iii) Approval by the stockholders of the Company of the sale of
                    substantially all of the Company's business and/or assets to
                    a person or entity which is not a subsidiary or other
                    affiliate;

              (iv)  Any `person' (as such term is used in Sections 13(d) and
                    14(d) of the Securities Exchange Act of 1934, as amended
                    from time to time (the "EXCHANGE ACT") but excluding any
                    person described in and satisfying the conditions of Rule
                    13d-1(b)(1) thereunder) becomes the beneficial owner (as
                    defined in Rule 13d-3 under the Exchange Act), directly or
                    indirectly, of securities of the Company representing 30% or
                    more of the combined voting power of the Company's then
                    outstanding securities entitled to then vote generally in
                    the election of directors of the Company; or

              (v)   During any period not longer than two consecutive years,
                    individuals who at the beginning of such period constituted
                    the Board cease to constitute at least a majority thereof,
                    unless the election, or the nomination for election by the
                    Company's stockholders, of each new Board member was
                    approved by a vote of at least three-fourths of the Board
                    members then still in office who were Board members at the
                    beginning of such period (including for these purposes, new
                    members whose election or nomination was so approved),

         that, upon the occurrence of a Change in Control Event, there shall be
         no acceleration of benefits under the Option or determines that only
         certain or limited benefits under the Option shall be accelerated and
         the extent to which they shall be accelerated, and/or establishes a
         different time in respect of such Change in Control Event for such
         acceleration, then upon the occurrence of a Change in Control Event the
         Option shall become immediately exercisable. The Board may override the
         limitations on acceleration in this Section 9.2 and may accord the
         Optionee a right to refuse any acceleration, in such circumstances as
         the Board may approve. Any acceleration of the Option shall comply with
         applicable regulatory requirements, including, without limitation,
         Section 422 of the Internal Revenue Code of 1986, as amended from time
         to time (the "CODE").

                                       5

<PAGE>   6

         9.3. POSSIBLE EARLY TERMINATION OF ACCELERATED AWARDS. If the Option
         has been fully accelerated as permitted by Section 9.2 but is not
         exercised prior to (i) a dissolution of the Company, or (ii) an event
         described in Section 9.2 that the Company does not survive, or (iii)
         the consummation of an event described in Section 9.2 that results in a
         change of control approved by the Board, the Option shall thereupon
         terminate, subject to any provision that has been expressly made by the
         Board for the survival, substitution, exchange or other settlement of
         the Option.

         9.4. EFFECT OF TERMINATION OF EMPLOYMENT.

                  (a) Resignation or Dismissal. If the Optionee's employment by
         the Company or any of its subsidiaries terminates for any reason (the
         date of such termination being referred to as the "SEVERANCE DATE")
         other than retirement, a "permanent and total disability" within the
         meaning of Section 22(e)(3) of the Code and such other disabilities,
         infirmities, afflictions or conditions as the Board by rule may include
         ("TOTAL DISABILITY") or death, or "for cause" (as determined in the
         discretion of the Board), the Optionee shall have, subject to earlier
         termination pursuant to or as contemplated by Section 1 or 9.2 hereof,
         three months after the Severance Date to exercise the Option to the
         extent it shall have become exercisable on the Severance Date. In the
         case of a termination "for cause", the Option shall terminate on the
         Severance Date. In other cases, the Option, to the extent not
         exercisable on the Severance Date, shall terminate.

                  (b) Death or Disability. If the Optionee's employment by the
         Company or any of its subsidiaries terminates as a result of Total
         Disability or death, the Optionee, the Optionee's personal
         representative or his or her beneficiary, as the case may be, shall
         have, subject to earlier termination pursuant to or as contemplated by
         Section 1 or 9.2 hereof, until 12 months after the Severance Date to
         exercise the Option to the extent it shall have become exercisable by
         the Severance Date. The Option to the extent not exercisable on the
         Severance Date shall terminate.

                  (c) Retirement. If the Optionee's employment by the Company or
         any of its subsidiaries terminates as a result of retirement with the
         consent of the Company or from active service as an employee or officer
         of the Company on or after attaining age 55 with 10 or more years of
         service or after age 65, the Optionee, the Optionee's personal
         representative or his or her beneficiary, as the case may be, shall
         have, subject to earlier termination pursuant to or as contemplated by
         Section 1 or 9.2 hereof, until 12 months after the Severance Date to
         exercise the Option to the extent it shall have become exercisable by
         the Severance Date. The Option, to the extent not exercisable on the
         Severance Date, shall terminate.

                                       6

<PAGE>   7
         (d) Board Discretion. Notwithstanding the foregoing provisions of this
         Section 9.4, in the event, or in anticipation, of a termination of
         employment with the Company or any of its subsidiaries for any reason,
         other than discharge for cause, the Board may, in its discretion,
         increase the portion of the Option available to the Optionee, or the
         Optionee's beneficiary or personal representative, as the case may be,
         or, subject to the provisions of Section 1 hereof, extend the
         exercisability period upon such terms as the Board shall determine and
         expressly set forth in or by amendment to this Agreement.

         9.5. EFFECT OF CHANGE OF SUBSIDIARY STATUS. If an entity ceases to be a
         subsidiary of the Company a termination of employment and service shall
         be deemed to have occurred with respect to each employee of such
         subsidiary who does not continue as an employee of another entity
         within the Company.

10.      SHARES TO BE RESERVED. The Company shall at all times during the term
         of the Option reserve and keep available such number of shares of
         Common Stock as will be sufficient to satisfy the requirements of this
         Agreement.

11.      ASSIGNMENT. This Agreement cannot be directly or indirectly assigned or
         transferred by the Optionee in whole or in part without the prior
         written consent of the Company.

12.      NOTICES. Any notices, demands or requests of any kind whatsoever
         hereunder shall be given in writing and sent to the addresses set forth
         below or to such other address as either party may from time to time in
         writing designate. Each such notice or other communication shall be
         effective (i) if given by telecommunication, when transmitted to the
         applicable number so specified in (or pursuant to) this Section 12 and
         a verification of receipt is received, (ii) if given by mail, three
         days after such communication is deposited in the mail with first class
         postage prepaid, addressed as aforesaid or (iii) if given by any other
         means, when actually delivered at such address.

13.      WAIVER. The parties reserve the right to waive by mutual written
         consent for a specific period and under specific conditions any
         provision of this Agreement, provided that such waiver shall be limited
         to the period and conditions specified by mutual written consent and
         shall in no way constitute a general waiver, or be considered as
         evidence of any given interpretation of any provision so waived.

14.      GOVERNING LAW. This Agreement, and the legal relations between the
         parties, shall be governed by and construed in accordance with the laws
         of the State of California, without regard to conflicts of law
         doctrines. All actions or proceedings under or relating to this
         Agreement will be resolved in a state or federal court located in
         Orange County, California; provided, however, that in the Company's
         discretion, such an action may be heard in some other place designated
         by it if necessary to acquire jurisdiction over third persons so that
         the dispute can be resolved in one action. Each party hereby (i) agrees
         to submit to the jurisdiction of the federal and state courts located
         in Orange County, California, (ii) agrees to appear in any such action,
         (iii) consents to the jurisdiction of such courts and (iv) waives any
         objections it might have as to venue in any such court. Service of
         process may be made in any action, suit or proceeding by mailing or
         delivering a copy of such process to a party at its address and in the
         manner set forth in Section 12 hereof.

                                       7

<PAGE>   8

15.      TITLES. Titles and paragraph headings are for reference purposes only
         and are not to be considered a part of this Agreement.

16.      SEVERABILITY. If any provision of this Agreement is held to be
         unenforceable for any reason, it shall be adjusted rather than voided,
         if possible, to achieve the intent of the parties to the extent
         possible. In any event, all other provisions of this Agreement shall be
         deemed valid and enforceable to the extent possible.

17.      ENTIRE AGREEMENT. The parties hereto acknowledge that each has read
         this Agreement, understands it, and agrees to be bound by its terms.
         The parties further agree that this Agreement and any modifications
         made pursuant to it constitute the complete and exclusive written
         expression of the terms of the agreement between the parties, and
         supercede all prior or contemporaneous proposals, oral or written,
         understandings, representations, conditions, warranties, covenants, and
         all other communications between the parties relating to the subject
         matter of this Agreement. The parties further agree that this Agreement
         may not in any way be explained or supplemented by a prior or existing
         course of dealings between the parties, by any usage of trade or
         custom, or by any prior performance between the parties pursuant to
         this Agreement or otherwise.

18.      COUNTERPARTS. This Agreement may be executed in several counterparts,
         each of which shall be deemed to be an original, but all of which shall
         constitute one and the same instrument.

19.      ATTORNEY'S FEES. In the event that any action or proceeding is brought
         in connection with this Agreement the prevailing party therein shall be
         entitled to recover its costs and reasonable attorney's fees.

20.      COMPLIANCE WITH LAWS. Notwithstanding anything else contained herein to
         the contrary, this Agreement, the granting and vesting of the Option
         and the offer, issuance and delivery of Shares under this Agreement are
         subject to compliance with all applicable federal and state laws, rules
         and regulations (including but not limited to state and federal
         securities laws and federal margin requirements) and to such approvals
         by any listing, regulatory or governmental authority as may, in the
         opinion of counsel for the Company, be necessary or advisable in
         connection therewith. Any securities delivered in respect of this
         Agreement will be subject to such restrictions, and to any restrictions
         the Company may require to preserve a pooling of interests under
         generally accepted accounting principles, and the person acquiring such
         securities will, if requested by the Company, provide such assurances
         and representations to the Company as the Company may deem necessary or
         desirable to assure compliance with all applicable legal requirements.

                                       8

<PAGE>   9

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed on its behalf by a duly authorized officer and the Optionee has
hereunto set his or her hand.

                                            MEADE INSTRUMENTS CORP.,
                                            a Delaware corporation

                                            By: /s/ MARK PETERSON
                                                --------------------------------
                                            Name:   Mark Peterson
                                            Its:    Vice President and
                                                    General Counsel

                                            6001 Oak Canyon
                                            Irvine, CA 92618
                                            Telephone: 949-451-1450
                                            Facsimile: 949-451-1460

                                            OPTIONEE

                                            /s/ MARIO COSTANTINO
                                            ------------------------------------
                                            Signature

                                            Mario Costantino
                                            ------------------------------------
                                            Print Name

                                      S-1

<PAGE>   10

                                CONSENT OF SPOUSE

         In consideration of the execution of the foregoing Nonqualified Stock
Option Agreement by Meade Instruments Corp., I, ___________________________, the
spouse of the Optionee herein named, do hereby agree to be bound by all of the
terms and provisions thereof.

DATED:
       -------------------------                    ----------------------------
                                                    Signature of Spouse

<PAGE>   11

                                                                       EXHIBIT A

                             MEADE INSTRUMENTS CORP.

                               EXERCISE AGREEMENT

         THIS EXERCISE AGREEMENT (this "AGREEMENT") dated as of the ____ day of
______________, _____, by and between Meade Instruments Corp., a Delaware
corporation (the "COMPANY"), and ______________________ (the "PURCHASER").

                                 R E C I T A L S

         WHEREAS, the Company has granted to the Purchaser a nonqualified stock
option (the "OPTION") to purchase all or any part of a designated amount of
authorized but unissued shares of common stock of the Company and, in connection
therewith, the Company and the Purchaser entered into that certain Nonqualified
Stock Option Agreement dated as of the 6th of January, 2000 (the "OPTION
AGREEMENT") of which this Agreement is a part and into which this Agreement is
incorporated;

         WHEREAS, the Purchaser desires to exercise the Option and purchase from
the Company and the Company wishes to issue and sell to the Purchaser _______
shares of its common stock, par value $0.01 per share (the "COMMON STOCK"), to
be sold at a price of $27.00 per share, in accordance with and subject to the
terms and conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the above premises and the
representations, warranties, covenants and agreements contained in this
Agreement, and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto agree as follows:

1.       PURCHASE AND SALE OF COMMON STOCK. The Company shall deliver to the
         Purchaser a stock certificate representing the shares of Common Stock
         against delivery to the Company by the Purchaser of the purchase price
         in the sum of $____________ (which represents the product of the $27.00
         price per share and the number of shares, the "PURCHASE PRICE").

2.       RESTRICTIONS ON SHARES. The shares of Common Stock acquired pursuant to
         Section 1 hereof are subject to, and the Purchaser agrees to be bound
         by, the provisions of Sections 6, 7 and 20 of the Option Agreement,
         incorporated herein by this reference.

3.       MISCELLANEOUS. This Agreement shall be governed by and construed and
         enforced in accordance with the laws of the state of California. This
         Agreement and the Option Agreement together constitute the entire
         agreement and supersede all prior understandings and agreements,
         written or oral, of the parties hereto with respect

                                      A-1

<PAGE>   12

         to the subject matter hereof. This Agreement may be amended by mutual
         agreement of the parties. Such amendment must be in writing and signed
         by the Company. The Company may, however, unilaterally waive any
         provision hereof in writing to the extent such waiver does not
         adversely affect the interests of the Purchaser hereunder, but no such
         waiver shall operate as or be construed to be a subsequent waiver of
         the same provision or a waiver of any other provision hereof.

         IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first written above.

                                            MEADE INSTRUMENTS CORP.,
                                            a Delaware corporation

                                            By:
                                                --------------------------------
                                            Its:
                                                 -------------------------------

                                            PURCHASER

                                            ------------------------------------
                                            Signature

                                            ------------------------------------
                                            Print Name

                                      A-2

<PAGE>   13

                                CONSENT OF SPOUSE

         In consideration of the execution of the foregoing Exercise Agreement
by Meade Instruments Corp., I, ___________________________, the spouse of the
Purchaser herein named, do hereby agree to be bound by all of the terms and
provisions thereof.

DATED:
       ----------------------------              -------------------------------
                                                 Signature of Spouse

                                      A-3

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