Document:

ex1022

Exhibit 10.22

MASTER LEASE AGREEMENT

dated as of April 9, 2001 ("Agreement")

This Agreement is between General Electric
Capital Corporation  (together with its successors and assigns, if any,
"Lessor") and Exelixis, Inc. ("Lessee").  Lessor has an
office at 401 Merritt 7 2nd Floor, Norwalk, CT  06856.  Lessee is a
corporation organized and existing under the laws of the state of Delaware.
Lessee's mailing address and chief place of business is 170 Harbor Way, South
San Francisco, CA  94083-0511.  This Agreement contains the general terms that
apply to the leasing of Equipment from Lessor to Lessee.  Additional terms that
apply to the Equipment (term, rent, options, etc.) shall be contained on a
schedule ("Schedule").

	LEASING:

	Lessor agrees to lease to Lessee, and Lessee
agrees to lease from Lessor, the equipment ("Equipment") described in
any schedule signed by both parties.

	Lessor shall purchase Equipment from the manufacture or
supplier ("Supplier") and lease it to Lessee if on or before the Last
Delivery Date Lessor receives (i) a Schedule for the Equipment, (ii) evidence of
insurance which complies with the requirements of Section 9, and (iii) such
other documents as Lessor may reasonably request.  Each of the documents
required above must be in form and substance satisfactory to Lessor.  Lessor
hereby appoints Lessee its agent for inspection and acceptance of the Equipment
from the Supplier.  Once the Schedule is signed, the Lessee may not cancel the
Schedule.

	TERM, RENT AND PAYMENT:

	The rent payable for the Equipment and
Lessee's right to use the Equipment shall begin on the earlier of (i) the date
when the Lessee signs the Schedule and accepts the Equipment or (ii) when Lessee
has accepted the Equipment under a Certificate of Acceptance ("Lease
Commencement Date"). The term of this Agreement shall be the period
specified in the applicable schedule.  the word "term" shall include
all basic and any renewal terms.

	Lessee shall pay rent to Lessor at its address stated
above, except as otherwise directed by Lessor. Rent payments shall be in the
amount set forth in, and due as stated in the applicable Schedule.  If any
Advance Rent (as stated in the Schedule) is payable, it shall be due when the
Lessee signs the Schedule.  Advance Rent shall be applied to the first rent
payment and the balance, if any, to the final rent payment(s) under such
Schedule.  In no event shall any Advance Rent or any other rent payments be
refunded to Lessee.  If rent is not paid within ten (10) days of its due date,
Lessee agrees to pay a late charge of five cents ($.05) per collar on, and in
addition to, the amount of such rent but not exceeding the lawful maximum, if
any.

	RENT ADJUSTMENT:

	If solely as a result of Congressional
enactment of any law (including, without limitation, any modification of, or
amendment or addition to, the Internal Revenue Code of 1986, as amended,
("Code")), the maximum effective corporate income tax rate (exclusive
of any minimum tax rate) for calendar-year taxpayers ("Effective
Rate") is higher than thirty-five percent (35%) for any year during the
lease term, then Lessor shall have the right to increase such rent payments in
the year of effectiveness and thereafter annually for so long as the Effective
Rate is greater than 35% by requiring payment of a single additional sum.  The
additional sum shall be equal to the product of (i) the Effective Rate
(expressed as a decimal) for such year less .35 (or, in the event that any
adjustment has been made hereunder for any previous year, the Effective Rate
(expressed as a decimal) used in calculating the next previous adjustment) times
(ii) the adjusted Termination Value (defined below), divided by (iii) the
difference between the new Effective Rate (expressed as a decimal) and one (1).
the adjusted Termination Value shall be the Termination Value calculated as of
the first rent due in the year for which the adjustment is being made) minus the
Tax Benefits that would be allowable under Section 168 of the Code (as of the
first day of the year for which such adjustment is being made and all future
years of the lease term).  The Termination Values and Tax Benefits are defined
on the Schedule.  Lessee shall pay to Lessor the full amount of the additional
rent payment on the later of (i) receipt of notice or (ii) the first day of the
year for which such adjustment is being made.

	Lessee's obligations under this Section 3 shall survive
any expiration or termination of this Agreement.

	TAXES:

	If permitted by law, Lessee shall report and
pay promptly all taxes, fees and assessments due, imposed, assessed or levied
against any Equipment (or purchase, ownership, delivery, leasing, possession,
use or operation thereof), this Agreement (or any rents or receipts hereunder),
any Schedule, Lessor or Lessee by any governmental entity or taxing authority
during or related to the term of this Agreement, including, without limitation,
all license and registration fees, and by all sales, use, personal property,
excise, gross receipts, franchise, stamp or other taxes, imposts, duties and
charges, together with any penalties, fines or interest thereon (collectively
"Taxes").  Lessee shall have no liability for Taxes imposed by the
United States of America or any state or political subdivision thereof which are
on or measured by the net income of Lessor except as provided in Sections 3 and
14(c).  Lessee shall promptly reimburse Lessor (on an after tax basis) for any
Taxes charges to or assessed against lessor following delivery of the
documentation of such charges or assessments.  Lessee shall show Lessor as the
owner of the Equipment on all tax reports or returns, and send Lessor a copy of
each report or return and evidence of lessee's payment of Taxes upon
request.

	Lessee's obligations, and Lessor's rights and privileges,
contained in this Section 4 shall survive the expiration or other termination of
this Agreement.

	REPORTS:

	If any tax or other lien shall attach to any
Equipment, Lessee will notify Lessor in writing, within ten business (10) days
after Lessee becomes aware of the tax or lien.  The notice shall include the
full particulars of the tax or lien and the location of such Equipment on the
date of the notice.

	Lessee will deliver to Lessor, Lessee's complete
financial statements, certified by a recognized firm of certified public
accountants within ninety (90) days of the close of each fiscal year of Lessee.
If not otherwise delivered hereunder, Lessee will deliver to Lessor copies of
Lessee's quarterly financial report certified by the chief financial officer of
Lessee, within ninety (90) days of the close of each fiscal quarter of Lessee.
Lessee will deliver to Lessor all Forms 10-K and 10-Q, if any, filed with the
Securities and Exchange Commission within thirty (30) days after the date on
which they are filed.

	Lessor may inspect any Equipment during normal business
hours after giving Lessee reasonable prior notice.

	Lessee will not move any equipment form the location
specified on the Schedule, without the prior written consent of lessor, which
consent will not be unreasonably withheld.  If Lessor asks, Lessee will promptly
notify Lessor in writing of the location of any Equipment.

	If any Equipment is lost or damaged (where the estimated
repair costs would exceed the greater often percent (10%) of the original
Equipment cost or ten thousand and 00/100 dollars ($10,000)), or is otherwise
involved in an accident causing personal injury or property damage, Lessee will
promptly and fully report the event to Lessor in writing.

	Lessee will furnish a certificate of an authorized
officer of Lessee stating that he has reviewed the activities of lessee and
that, to the best of his knowledge, there exists no default or event which with
notice or lapse of time (or both) would become such a default within thirty (30)
days after any request by Lessor; provided that such request shall not exceed
more than once per calendar quarter.

	DELIVERY, USE AND
OPERATION:

	All  Equipment shall be shipped directly from
the Supplier to Lessee.

	lessee agrees that the Equipment will be used by Lessee
solely in the conduct of its business and in a manner complying with all
applicable laws, regulations and insurance policies;

	Lessee will not move any equipment form the location
specified on the Schedule, without the prior written consent of Lessor which
consent will not be unreasonably withheld.

	Lessee will keep the Equipment free and clear of all
liens and encumbrances other than those which result form acts of
Lessor.

	Lessor shall not disturb Lessee's quiet enjoyment of the
Equipment during the term of the Agreement unless defaults has occurred and is
continuing under this Agreement.

	MAINTENANCE:

	Lessee will, at its sole expense, maintain
each unit of Equipment in good operating order and repair, normal wear and tear
excepted.  The Lessee shall also maintain the Equipment in accordance with
manufacturer's specifications.  Lessee shall make all alterations or
modifications  required for Equipment to comply with any applicable law, rule or
regulation during the term of this Agreement.  If Lessor requests, Lessee shall
affix plates, tags or other identifying labels showing ownership thereof by
Lessor.  The tax or labels shall be placed in a prominent position on each unit
of Equipment.

	Lessee will not attach or install anything on any
Equipment that will impair the originally intended function or use of such
Equipment without the prior written consent of Lessor.  All additions, parts,
supplies, accessories, and equipment ("Additions") furnished or
attached to any Equipment that are not readily removable shall become the
property of Lessor.  All Additions shall be made only in compliance with
applicable law.  Lessee without attach or install any Equipment to or in any
other personal or real property without the prior written consent of lessor,
unless Lessee ensures that the Equipment that is attached or installed to other
personal or real property will not be deemed a fixture, accession or attachment
and will be able to be readily installed/unattached without impairing the
original value or function of the Equipment. 

	STIPULATED LOSS VALUE:  If for any reason any unit
of Equipment becomes worn out, lost, stolen, destroyed, irreparably damaged or
unusable ("Casualty Occurrences") lessee shall promptly and fully
notify Lessor in writing.  Lessee shall pay Lessor the sum of (i) the Stipulated
Loss Value (see Schedule) of the affected unit determined as of the rent payment
date prior to the Casualty Occurrence; and (ii) all rent and other amounts which
are then due under this  Agreement on the Payment Date (defined below) for the
affected unit. The Payment Date shall be the next rent payment date after the
Casualty Occurrence.  Upon Payment of all sums due hereunder, the term of this
lease as to such unit shall terminate.

	INSURANCE:

	Lessee shall bear the entire risk of any loss, theft,
damage to, or destruction of, any unit of Equipment from any cause whatsoever
from the time the  Equipment is shipped to Lessee.

	Lessee agrees, at its own expense, to keep all Equipment
insured for such amounts and against such hazards as Lessor may reasonably
required.  All such policies shall be with companies, and on terms, reasonably
satisfactory to Lessor.  The insurance shall include coverage for damage to or
loss of the Equipment, liability for personal injuries, death or property
damage.  Lessor shall be named as additional insured with a loss payable clause
in favor of Lessor, as its interest may appear, irrespective of any breach of
warranty or other act or omission of Lessee. The insurance shall provide for
liability coverage in an amount equal to at least One Million U.S. Dollars
($1,000,000.00) total liability per occurrence unless otherwise stated in any
schedule.  The casualty/property damage coverage shall be in an amount equal to
the higher of the Stipulated Loss Value or the full replacement cost of the
Equipment.  No insurance shall be subject to an y co-insurance clause. The
insurance policies shall provide that the insurance may not be altered or
canceled by the insurer until after thirty (30) days written notice to Lessor.
Lessee agrees to deliver to Lessor evidence of insurance reasonably satisfactory
to lessor.

	Lessee hereby appoints Lessor as Lessee's attorney-in-
fact to make proof of loss and claim for insurance, and to make adjustment with
insurers and to receive payment of and execute or endorse all documents, checks
or drafts in connection with insurance payments.  Lessor shall not act as
lessee's attorney-in-fact unless Lessee is in default.  Lessee shall pay any
reasonable expenses of Lessor in adjusting or collecting insurance.  Lessee will
not make adjustment with insurers except with respect to claims for damage to
any unit of Equipment where the repair costs are less than the lesser often
percent (10%) of the original Equipment cost or ten thousand and 00/100 dollars
($10,000).  Lessor may, at its option, apply proceeds of insurance, in whole or
in part, to (i) repair or replace Equipment or any portion thereof, or (ii)
satisfy any obligation of Lessee to Lessor under this Agreement.

	RETURN OF EQUIPMENT:

	At the expiration or termination of this Agreement or
any Schedule, Lessee shall perform any testing and repairs required to place the
units of Equipment in the same condition and appearance as when received by
Lessee (reasonable wear and tear excepted) and in good working order for the
original intended purpose of the Equipment.  If required the units or Equipment
shall be deinstalled, disassembled and crate by an authorized manufacturer's
representative or such other service person as is reasonably satisfactory to
Lessor.  Lessee shall remove installed markings that are not necessary for the
operation, maintenance or repair do the Equipment.  All Equipment will be
cleaned, cosmetically acceptable, and in such condition as to be immediately
installed (in a fully assembled condition) into use in a similar environment for
which the Equipment was originally intended to be used.  All waste material and
fluid must be removed from the Equipment and disposes of in accordance with then
current waste laws.  Lessee shall return the units of Equipment to a location
within the continental United States as Lessor shall direct.  Lessee shall
obtain and pay for a policy of transit insurance for the redelivery period in an
amount not less than the replacement value of the Equipment.  The transit
insurance must name Lessor as the loss payee.  The Lessee shall pay for all
costs to comply with this section (a).

	Until Lessee has fully complied with the requirements of
Section 10(a) above, Lessee's rent payment obligation and all other obligations
under this Agreement shall continue from month to month notwithstanding any
expiration or termination of the lease term.  Lessor may terminate the Lessee's
right to use the Equipment upon ten (1) days notice to Lessee.

	Lessee shall provide to Lessor a reasonably detailed
inventory of all components of the Equipment including model and serial numbers.
Lessee shall also provide an up-t-date copy of all other documentation
pertaining to the Equipment.  All service manuals, blue prints, process flow
diagrams, operating manuals, inventory and maintenance records in Lessee's
possession shall be given to Lessor at least ninety (90) days and not more than
one hundred twenty (120) days prior to least termination.  Lessee agrees to make
a diligent effort to procure any missing service manuals, blue prints, process
flow diagrams, operating manuals, inventory and maintenance records.

	Lessee shall make the Equipment available for on-site
operational inspections by potential purchasers at least one hundred twenty
(120) days prior to and continuing up to lease termination.

	DEFAULT AND REMEDIES:

	Lessor may in writing declare this Agreement
in default if (i) Lessee breaches its obligations to pay rent or any other sum
when due and fails to cure the breach within ten (10) days; (ii) Lessee breaches
any of its insurance obligations under Section 9; (iii) Lessee breaches any of
its other obligations and fails to cure that breach within thirty (30) days
after written notice form Lessor; (iv) any representation or warranty made by
Lessee in connection with this Agreement shall be false or misleading in any
material respect; (v) Lessee or any guarantor or other obligor for the Lessee's
obligations hereunder ("Guarantor") becomes insolvent or ceases to do
business as a going concern; (vi) any Equipment is illegally used; (vii) if
lessee or any guarantor is a natural person, any death or incompetency of Lessee
or such Guarantor; or (viii) a petition is filed by or against Lessee or any
Guarantor under any bankruptcy or insolvency laws and in the event of an
involuntary petition, the petition is not dismissed within forty-five (45) days
of the filing date.  The default declaration shall apply to all Schedules unless
specifically excepted by Lessor.

	After a default, at the request of Lessor, Lessee shall
comply with the provisions of Section 109a).  lessee hereby authorizes Lessor to
peacefully enter any premises where any Equipment may be and take possession of
the Equipment.  Lessee shall immediately pay to Lessor without further demand as
liquidated damages for loss of a bargain and not as a penalty, the Stipulated
Loss Value of the Equipment (calculated as of the rent payment date prior to the
declaration of default), and all rents and other sums then due under this
Agreement and all schedules.  Lessor may terminate this Agreement as to any or
all of the Equipment.  A termination shall occur only upon written notice by
Lessor to Lessee and only as to the units of Equipment specified in any such
notice.  Following termination hereunder, Lessor may, but shall not be required
to, sell Equipment at private or public sale, in bulk or in parcels, with or
without notice, and without having the Equipment present at the place of sale.
Lessor may also, but shall not be required to, lease, otherwise dispose of or
keep idle all or part of the Equipment.  Lessor may use Lessee's premises for a
reasonable period of time for any or all of the purposes sated above without
liability for rent, costs, damages or otherwise.  The proceeds of sale, lease or
other disposition, if any, shall be applied in the following order of
priorities: (i) to pay all of Lessor's costs, charges and expense incurred in
taking, removing, holding, repairing and selling, leasing or other disposing of
Equipment; then (ii) to the extent not previously paid by Lessee, to pay Lessor
all sums due from Lessee under this Agreement; then (iii) to reimburse to Lessee
any sums previously paid by Lessee as liquidated damages; and (iv) any surplus
shall be retained by Lessor.  lessee shall immediately pay any deficiency in (i)
and (ii) above.

	The foregoing remedies are cumulative, and any or all
thereof may be exercised instead of or in addition to each other or any remedies
at law, in equity, or under statute.  Lessee waives notice of sale or other
disposition (and the time and place thereof), and the manner and place of any
advertising.  Lessee shall pay Lessor's actual attorney's fees incurred in
connection with the enforcement, assertion, defense or preservation of lessor's
rights and remedies under this Agreement, or if prohibited by law, such lesser
sum as may be permitted.  Waiver of any default shall not be a waiver of any
other or subsequent default.

	Any default under the terms of this or any agreement
between Lessor and Lessee may be declared by Lessor a default under this and any
such other agreement.

	ASSIGNMENT:  LESSEE SHALL NOT SELL, TRANSFER,
ASSIGN, ENCUMBER OR SUBLET ANY EQUIPMENT OR THE INTEREST OF LESSEE IN THE
EQUIPMENT WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR.  Lessor may, without the
consent of Lessee, assign this Agreement, any Schedule or the right to enter
into a Schedule.  Lessee agrees that if Lessee receives written notice of an
assignment from Lessor, Lessee will pay all rent and all other amounts payable
under any assigned Schedule to such assignee or as instructed by Lessor.  Lessee
also agrees to confirm in writing receipt of the notice of assignment as may be
reasonably requested by assignee.  Lessee hereby waives and agrees not to assert
against any such assignee any defense, set-off, recoupment claim or counterclaim
which lessee has or may at any time have against lessor for any reason
whatsoever.

	NET LEASE:  Lessee is unconditionally obligated to
pay all rent and other amounts due for the entire lease term no matter what
happens, even if the Equipment is damaged or destroyed, if its defective or if
Lessee no longer can use it.  Lessee is not entitled to reduce or set-off
against rent or other amounts due to Lessor or to anyone to whom Lessor assigns
t his Agreement or any Schedule whether Lessee's claim arises out of this
Agreement, any Schedule, any statement by Lessor, Lessor's liability or any
manufacturer's liability, strict liability, negligence or otherwise.

	INDEMNIFICATION:

	Lessee hereby agrees to indemnify lessor, its agents,
employees, successors and assigns (on an after tax basis) from and against any
and all losses, damages, penalties, injuries, claims, actions and suites,
including legal expenses, or whatsoever kind and nature arising out of or
relating to the Equipment or this Agreement, except to the extent the losses,
damages, penalties, injuries, claims, actions, suites or expenses result form
Lessor's gross negligence or willful misconduct ("Claims").  this
indemnity shall include, but is not limited to, Lessor's strict liability in
tort and Claims, arising out of (i) the selection, manufacture, purchase,
acceptance or rejection of Equipment, the ownership of equipment during the term
of this Agreement, and the delivery, lease, possession, maintenance, uses,
condition, return or operation of Equipment (including, without limitation,
patent and other defects, whether or not discoverable by Lessor or Lessee and
any claim for patent, trademark or copyright infringement or environmental
damage) or (ii) the condition of Equipment sold or disposed of after use by
Lessee, any sublessee or employees of Lessee.  Lessee shall, upon request,
defend any actions based on, or arising out of, any of the foregoing.

	Lessee hereby represents, warrants and covenants that (i)
to its knowledge, on the Lease Commencement Date for any unit of Equipment, such
unit will qualify for all of the items of deduction and credit specified in
Section C of the applicable Schedule ("Tax Benefits") in the hands of
Lessor, and (ii) at no time during the term of this Agreement will Lessee take
or omit to take, nor will it permit any sublessee or assignee to take or omit to
take, any action (whether or not such act or omission is otherwise permitted by
Lessor or by this Agreement), which will result in the disqualification of any
Equipment for, or recapture of, all or any portion of such Tax
Benefits.

	It as a result of a breach of any representation,
warranty or covenant of the Lessee contained in this Agreement or any Schedule
(i) tax counsel of Lessor shall determine that Lessor is not entitled to claim
on its Federal income tax return all or any portion of the Tax Benefits with
respect to any Equipment, or (ii) any Tax Benefit claimed on the Federal income
tax return of Lessor is disallowed or adjusted by the Internal Revenue Service,
or (iii) any Tax Benefit is recalculated or recaptured (any determination,
disallowance, adjustment, recalculation or recapture being a "Loss"),
then Lessee shall pay to Lessor, as an indemnity and as additional rent, an
amount that shall, in the reasonable opinion of Lessor, cause Lessor's after-tax
economic yields and cash flows to equal the Net Economic Return that would have
been realized by Lessor if such Loss had not occurred.  Such amount shall, to
the extent not otherwise paid under Section 3(a), be payable upon demand
accompanied by a statement describing in reasonable detail such Loss and the
computation of such amount.  The economic yields and cash flows shall be
computed on the same assumptions, including tax rates as were used by Lessor in
originally evaluating the transaction ("Net Economic Return".  If an
adjustment has been made under Section 3 then the Effective Rate use din the
next preceding adjustment shall be substituted.

	All references to Lessor in this Section 14 include
Lessor and the consolidated taxpayer group of which Lessor is a member.  All of
Lessor's rights, privileges and indemnities contained in this Section 14 shall
survive the expiration or other termination of this Agreement.  The rights,
privileges and indemnities contained herein are expressly made for the benefit
of, and shall be enforceable by Lessor, its successors and
assigns.

	DISCLAIMER:  LESSEE ACKNOWLEDGES THAT IT HAS
SELECTED THE EQUIPMENT WITHOUT ANY ASSISTANCE FROM LESSOR, ITS AGENTS OR
EMPLOYEES.  LESSOR DOES NOT MAKE , AHS NOT MADE, NOR SHALL BE DEEMED TO MAKE OR
HAVE MADE, ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR
ORAL, WITH RESPECT TO THE EQUIPMENT LEASED UNDER THIS AGREEMENT OR ANY COMPONENT
THEREOF, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE
WITH SPECIFICATIONS, QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY,
FITNESS FOR ANY PURPOSE, USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR
COPYRIGHT INFRINGEMENT, OR TITLE.  All such risks, as between Lessor and Lessee
are to be borne by Lessee. Without limiting the foregoing, Lessor shall have no
responsibility or liability to Lessee or any other person with respect to any of
the following; (i) any liability, loss or damage caused or alleged to be caused
directly or indirectly by an Equipment, any inadequacy thereof, any deficiency
or defect (latent or otherwise) of the Equipment, or  any other circumstance in
connection with the Equipment; (ii) the use, operation or performance of any
Equipment or any risks relating to it; (iii) any interruption of service, loss
of business or anticipated profits or consequential damages; or (iv) the
delivery, operation, servicing, maintenance, repair, improvement or replacement
of any Equipment.  If, and so long as, no default exists under this Agreement,
Lessee shall be, and hereby is, authorized during the term of this Agreement to
assert and enforce whatever claims and rights Lessor may have against any
Supplier of the Equipment at Lessee's sole cost and expense, in the name of and
for the account of Lessor and/or Lessee, as their interests may appear.

	REPRESENTATIONS AND WARRANTIES OF LESSEE:  Lessee
makes each of the following representations and warranties to Lessor on the date
hereof and on the date of execution of each Schedule.

	Lessee has adequate power and capacity to enter into, and
perform under, this Agreement and all related documents (together, the
"Documents").  Lessee is duly qualified to do business wherever
necessary to carry on its present business and operations, including the
jurisdiction(s) where the Equipment is or is to be located.

	The Documents have been duly authorized, executed and
delivered by Lessee and constitute valid, legal and binding agreements,
enforceable in accordance with their terms, except to the extent that the
enforcement of remedies may be limed under applicable bankruptcy and insolvency
laws.

	No approval, consent or withholding or objections is
required from any governmental authority or entity with respect to the entry
into or performance by Lessee of the Documents except such as have already been
obtained.

	the entry into and performance by Lessee of the Documents
will not: (i) violate any judgment, order, law or regulation applicable to
Lessee or any provision of Lessee's Certificate of Incorporation or bylaws; or
(ii) result in any breach of, constitute a default under or result in the
creations of any lien, charge, security interest or other encumbrance upon any
Equipment pursuant to any indenture, mortgage, deed of trust, bank loan or
credit agreement or other instrument (other than this Agreement) to which Lessee
is a party.

	There are no suits or proceedings pending or threatened
in court or before any commission, board or other administrative agency against
or affecting Lessee, which if decided against Lessee will have a material
adverse effect on the ability of Lessee to fulfill its obligations under this
Agreement.

	The Equipment accepted under any Certificate of
Acceptance is and will remain tangible personal property.

	Each financial statement delivered to Lessor has been
prepared in accordance with generally accepted accounting principals
consistently applied, except to the extent notes to the financial statements are
not required pursuant to SEC requirements.  Since the date of the most recent
financial statement, there has been no material adverse change.

	Lessee is and will be at all times validly existing and
in good standing under the laws of the State of its incorporation (specified in
the first sentence of this Agreement).

	The Equipment will at all times be used for commercial or
business purposes.

	PURPOSE OPTION:

	Lessee may at lease expiration purchase all (but not
less than all) of the Equipment in any Schedule on an AS IS BASIS for cash equal
to its then Fair Market Value (plus all applicable sales taxes).  Lessee must
notify Lessor of its intent to purchase the Equipment in writing at least one
hundred eighty (180) days in advance.  If Lessee is in default or if the Lease
has already been terminated Lessee may not purchase the Equipment.

	"Fair Market Value" shall mean the price that a
willing buyer (who is neither a lessee in possession nor a used equipment
dealer) would pay for the Equipment in an arm's length transaction to a willing
seller under no compulsion to sell.  In determining the Fair Market Value the
Equipment shall be assumed to be in the condition in which it is required to be
maintained and returned under this Agreement.  If the Equipment is installed it
shall be a valued on an installed basis.  The costs of removal form current
location shall not be a deduction from the Value of the Equipment.  If lessor
and Lessee are unable to agree on the Fair Market Value at least one hundred
thirty-five (135) days before lease expiration, Lessor shall appoint an
independent appraiser (reasonably acceptable to Lessee) to determine Fair Market
Value.  The independent appraiser's determination shall be final, binding and
conclusive.  Lessee shall bear all costs associated with any such
appraisal.

	Lessee shall be deemed to have waived this option unless
it provides Lessor with written notice of its irrevocable election to exercise
the same within fifteen (15) business days after Fair Market Value is told to
Lessee.

	MISCELLANEOUS:

	LESSEE AND LESSOR UNCONDITIONALLY WAIVE THE RIGHTS TO
A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT, ANY OF TH RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR
RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS,
AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR.
THE SCOPE OF T HIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT.  THIS WAIVER IS IRREVOCABLE.  THIS
WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. T HE WAIVER ALSO SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT, ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THIS TRANSACTION OR ANY RELATE TRANSACTION. THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

	The Equipment shall remain lessor's property unless
Lessee purchases the Equipment from Lessor and until such time Lessee shall only
have the right to use the Equipment as a lessee.  Any cancellation or
termination by Lessor of this Agreement, any Schedule, supplement or amendment
hereto, or the lease of any equipment hereunder shall not release Lessee form
any then outstanding obligations to Lessor hereunder.   All Equipment shall at
all times remain personal property of Lessor even though it may be attached to
real property.  The Equipment shall not become part of any other property by
reason of any installation in, or attachment to, other real or personal
property.

	Time is of the essence of this Agreement. Lessor's
failure at any time to require strict performance by Lessee of any of the
provisions hereof shall not waive or diminish Lessor's right at any other time
to demand strict compliance with this Agreement.   Lessee agrees, upon Lessor's
request, to execute any instrument reasonably necessary or expedient for filing,
recording or perfecting the interest of Lessor.  All notices required to be
given hereunder shall be deemed adequately given if sent by registered or
certified mail to the addressee at its address stated herein, or at such other
place as such addressee may have specified in writing.  This Agreement and any
Schedule and Annexes thereto constitute the entire agreement of the parties with
respect to the subject matter hereof.  NO VARIATION OR MODIFICATION OF THIS
AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISION OR CONDITIONS, SHALL BE VALID
UNLESS IN WRITING AND SIGNED BY AN AUTHORIZED REPRESENTATIVE OF OTHER PARTIES
HERETO.

	If Lessee does not comply with any provision of this
Agreement, Lessor shall have the right, but shall not be obligated, to effect
such compliance, in whole or in part.  All reasonable amounts spent and
obligations incurred or assumed by Lessor in effecting such compliance shall
constitute additional rent due to Lessor.  Lessee shall pay the additional rent
within five days after the date Lessor sends notice to Lessee requesting
payment.  Lessor's effecting such compliance shall not be a waiver of Lessee's
default.

	Any rent or other amount not paid to Lessor when due
shall bear interest, form the due date until paid, at the lesser of eighteen
percent (18%) per annum or the maximum rate allowed by law.  Any provisions in
this Agreement and any Schedule that are in conflict with any statute, law or
applicable rule shall be deemed omitted, modified or altered to conform
thereto.

	Lessee hereby irrevocable authorized lessor to adjust the
Capitalized Lessor's Cost up or down by no more than ten percent (10%) within
each Schedule to account for equipment change orders, equipment returns,
invoicing errors, and similar matters. Lessee acknowledges and agrees that the
rent shall be adjusted as a result of the change in the Capitalized Lessor's
Cost.  Lessor shall send Lessee a written notice stating the final Capitalized
Lessor's Cost, if it has changed.

	THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO
THE CONFLICT OF LAWS PRINCIPALS OF SUCH STATE), INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF  THE
EQUIPMENT.

	Any cancellation or termination by Lessor, pursuant to
the provision of t his Agreement, any Schedule, supplement or amendment hereto,
of the lease of any Equipment hereunder, shall not release Lessee from any then
outstanding obligations to Lessor hereunder.

	To the extent that any Schedule would constitute chattel
paper, as such term is defined in the Uniform Commercial Code as in effect in
any applicable jurisdiction, no security interest therein may be created through
the transfer or possession of this Agreement in and of itself without the
transfer or possession of the original of a Schedule executed pursuant to this
Agreement and incorporating this Agreement by reference; and no security
interest in this Agreement and a Schedule may be created by the transfer or
possession of any counterpart of the Schedule other than the original thereof,
which shall be identified as the document marked "Original" and all
other counterparts shall be marked Duplicate".

In Witness Whereof, Lessee and Lessor have cause this
Agreement to be executed by their duly authorized representatives as of the date
first above written.

	
LESSOR:

General Electric Capital Corporation
	
LESSEE:

Exelixis, Inc.

	
By:
	
By:/s/ Glen Y. Sato

	
Name:
	
Name:Glen Y. Sato

	
Title:
	
Title:CFOCertificate of DESIGNATION OF Rights, PRIVILEGES AND PREFERENCES of
                       CLASS c Voting Preferred Stock, of
                             Klever Marketing, Inc.

     The undersigned, Corey A. Hamilton, hereby certifies that:

     A. He is the duly elected and acting President and Chief Executive  Officer
of Klever Marketing, Inc., a Delaware corporation (hereafter the "Corporation");

     B. The following  resolutions of the Board of Directors of the Corporation,
duly  adopted as of  January 2, 2001  pursuant  to  Section  151 of the  General
Corporation  Law of the State of Delaware  and  Article IV of the  Corporation's
Certificate of Incorporation set forth the rights, preferences and privileges of
the various series of Corporation's Class C Voting Preferred Stock.

     Pursuant  to  the  provisions  of its  Certificate  of  Incorporation,  the
Corporation  hereby  authorizes and establishes a series of its preferred stock,
par value $.01 per share,  consisting of 125,000 shares, to be known as "Class C
Voting  Preferred  Stock,"  having  the  following   designations,   rights  and
preferences:

     1.  Designation and Amount.  Of the 2,000,000  shares of preferred stock of
the  Corporation,  par value $.01 per share,  as authorized by Article IV of the
Corporation's Certificate of Incorporation, 125,000 shares are hereby designated
"Class C Voting Preferred Stock" (the "Class C Shares").

     2. Definitions. For purposes of this Certificate, the following terms shall
have the following definitions:

     2.1 "Class C Shares" shall mean the Class C Voting Preferred Stock.

     2.2  "Preferred  Stock"  shall  mean  the  Class C  Shares  and  all  other
authorized Preferred Shares, collectively.

<PAGE>

     2.3 "Common Stock" shall mean the Corporation's authorized shares of Common
Stock.

     2.4 "Liquidation Preference" for Class C Shares shall be the Original Issue
Price,  plus in each case any accrued but unpaid  dividends on such  shares,  if
any, appropriately adjusted for combinations, splits, dividends or distributions
of shares of stock (a "Share  Combination  or  Division")  with  respect to such
shares.

     2.5 "Redemption Price" for the Class C Shares, are set forth in Section 6.1
hereof.

     2.6 "Original Issue Date" shall mean January 2, 2001.

     2.7  "Original  Issue Price" of the Class C Shares is Six Dollars and sixty
cents ($6.60) per share.

     2.8 "Act" shall mean the General  Corporation Law of the State of Delaware,
as amended.

     3.  Dividends.  The holders of Class C Shares  shall be entitled to receive
when and as declared by the Board of  Directors  of the  Corporation  out of any
funds at the  time  legally  available  therefore  dividends  at the rate of the
Original  Issue  Price  divided  by  11.8181818  per  share per  annum,  payable
semi-annually  on the first day of January and July of each year. Such dividends
shall accrue on each such share from the date of its original issuance and shall
accrue from day to day, whether or not earned or declared.  Such dividends shall
be  cumulative  and may be paid in cash or in kind through the  distribution  of
 .0425  Class C Shares  for each  outstanding  Class C  Share,  on each  dividend
payment date;  provided,  that if such  dividends in respect of any period shall
not have been paid or declared  and set apart for  payment  for all  outstanding

                                       2
<PAGE>

Class C Shares by each payment  date,  then until all unpaid  dividends  thereon
shall be paid or set  apart for  payment  to the  holders  of such  shares,  the
Corporation may not pay, declare or set apart any dividend or other distribution
on its shares of Common Stock or other shares junior to the Class C Shares,  nor
may any other distributions,  redemptions or other payments be made with respect
to the  shares  of Common  Stock or other  junior  shares.  In  addition  to the
foregoing, each holder of a Class C Share shall be entitled to receive, when and
as declared,  a dividend equal to each dividend  declared and paid on the shares
of Common  Stock,  on a share for share  basis,  so the  holders  of the Class C
Shares shall be entitled to participate  equally on a share for share basis with
the holders of the shares of Common Stock. If there is a share split or dividend
on the Common Stock,  then the Class C Share dividends shall be adjusted as if a
similar  split or dividend had occurred  with respect to the Class C Shares.  No
other right to  dividends  shall accrue to holders of Class C Shares as a result
of a failure to declare or pay dividends with respect to any period.

     4. Voting  Rights.  Except as  otherwise  expressly  provided  herein or as
required by law,  and unless the Act  provides for the holders of Class C Shares
to vote separately  from the holders of shares of Common Stock on a matter,  the
holder of each  Class C Share  shall be  entitled  to one vote for each share of
Common Stock into which such Class C Shares  could then be  converted  (with any
fractional share determined on an aggregate conversion basis being rounded up or
down to the nearest  whole share) and shall have voting  rights and powers equal
to the  voting  rights  and  powers of a holder of shares of Common  Stock.  The
holders of Class C Shares  shall vote with the holders of shares of Common Stock
and not as a separate class, and shall be entitled to notice of any shareholders
meeting in accordance with the Bylaws of the Corporation.

                                        3
<PAGE>

     5. Liquidation  Rights.  In the event of any liquidation,  dissolution,  or
winding up of the Corporation, either voluntary or involuntary, distributions to
the shareholders of the Corporation shall be made in the following manner.

     5.1 Class C Shares.  The  holders of Class C Shares  shall be  entitled  to
receive,  prior and in  preference to any  distribution  of any of the assets or
surplus funds of the Corporation to the holders of shares of Common Stock or any
other  Preferred  Stock  that are not  expressly  deemed  to be on a par with or
senior to the Class C Shares,  an amount equal to their  Liquidation  Preference
for each  Class C Share then held by them.  For this  purpose,  Preferred  Stock
Classes A and B, shall be on a par with Class C Shares. If such assets and funds
are  insufficient to permit the payment to the holders of Class C Shares of such
full  preferential  amount,  then the entire assets and funds of the Corporation
legally  available for  distribution  shall be  distributed  pro-rata  among the
holders  of the  Class C  Shares  and  Preferred  Stock  Classes  A and B in the
proportion  to their  ownership  of Class C Shares  based upon their  respective
Liquidation Preferences.

     5.2 Remaining  Liquidation Rights.  After payment to the holders of Class C
Shares  and other  Preferred  Stock on a par with or senior to Class C Shares of
the  amounts  set forth in Section 5.1 above,  the entire  remaining  assets and
funds of the Corporation  legally available for  distribution,  if any, shall be
distributed  among  the  holders  of all  outstanding  shares  of  Common  Stock
pro-rata, based on the number of shares of Common Stock held by each holder.

     5.3 Consolidation, Merger, Sale of Assets. Neither the consolidation or the
merger of the  Corporation  into or with any other entity or  entities,  nor the
sale or transfer by the Corporation of all or  substantially  all of its assets,
shall  be  deemed  to  be a  liquidation,  dissolution  or  winding  up  of  the
Corporation  within the meaning of the provisions of this Section 5, unless such

                                       4
<PAGE>

sale,  lease or conveyance  shall be in connection  with a plan of  liquidation,
dissolution, or winding up of the Corporation.

     6.  Redemption.  The Class C Shares shall be redeemable by the Corporation,
in whole or in part, at the option of the Board of Directors of the Corporation,
at any time and from time to time on or after July 2, 2004.

     6.1 Redemption  Price.  The Redemption Price of the Class C Shares shall be
the Original  Issue Price,  together  with accrued but unpaid  dividends on such
shares,  if any. The date fixed by the  Corporation  for any such  redemption is
herein called the "Redemption Date". In the event of a redemption of only a part
of the  Class  C  Shares  then  outstanding,  the  Corporation  shall  effect  a
redemption  of Class C Shares  pro-rata  among the  holders of such Shares .

     6.2  Redemption  Procedure.  At  least  thirty  (30)  days  prior  to  each
Redemption Date, the Corporation shall give written notice of such redemption to
each  holder  of  record  of the  Class C  Shares.  Written  notice  shall be by
certified  mail enclosed in a postage paid envelope  addressed to such holder at
such holder's  address as the same shall appear on the books of the Corporation.
Such  notice  shall (i) state that the  Corporation  has  elected to redeem such
shares pursuant to Section 5.1 hereof, (ii) state the Redemption Date, and (iii)
call upon such holder to surrender to the  Corporation  on or after such date at
its principal  office in Salt Lake City,  Utah (or at such other place as may be
designated by the  Corporation)  certificate or  certificates  representing  the
number of Class C Shares to be redeemed in  accordance  with such notice.  On or
after the Redemption Date, each holder of Class C Shares to be so redeemed shall
present or surrender  the  certificate  or  certificates  for such shares to the
Corporation  at  the  place  designated  in  such  notice  and,  thereupon,  the
Redemption Price of such shares shall be paid to, or to the order of, the person
whose name appears on such  certificate  or  certificates  as the owner thereof.

                                       5

<PAGE>

From  and  after  the  Redemption  Date,  unless  default  shall  be made by the
Corporation  in providing for the payment of the  Redemption  Price  pursuant to
such notice, all rights of the holders of the Class C Shares so redeemed, except
the right to receive the Redemption Price (but without  interest  thereon) shall
cease and terminate.

     6.3  Reissue  of  Redeemed  Shares.  Unless the Board of  Directors  of the
Corporation  shall determine  otherwise with respect to a specific  transaction,
Class C Shares  redeemed  by the  Corporation  shall  not be  retired  but shall
constitute   authorized  but  unissued  shares  that  may  be  reissued  by  the
Corporation as it sees fit.

     7.  Conversion.  The  holders of the Class C Shares  shall have  conversion
rights as follows (the "Conversion Rights"):

     7.1 Right to Convert/Automatic Conversion.

     (a) Each Class C Share  shall be  convertible,  at the option of the holder
thereof,  at any time  after  the  Original  Issue  Date,  at the  office of the
Corporation  or any transfer  agent for the Class C Shares,  into such number of
fully  paid and  non-assessable  shares  of  Common  Stock as is  determined  by
dividing the Original Issue Price by the  Conversion  Price for shares of Common
Stock at the time in effect.  The initial  Conversion Price for shares of Common
Stock shall be the Original Issue Price divided by ten (10); provided,  however,
that the  Conversion  Price shall be subject to  adjustment as set forth in this
Section 7.

     (b) Each Class C Share  shall  automatically  be  converted  into shares of
Common Stock at the then effective Conversion Price (i) immediately prior to the
closing of the Corporation's sale of shares of its Common Stock to the public in
a bona fide,  underwritten public offering pursuant to a registration  statement
under the Securities Act of 1933, as amended,  in which (a) the aggregate  price
paid for such  shares by the  public is at least $25  million  and (b) the price

                                       6
<PAGE>

paid by the public for such shares (before  deduction of underwriting  discounts
and registration  expenses)  results in a market valuation of the Corporation of
at least $200 million,  or (ii) promptly upon receipt of the affirmative vote of
the holders of two-thirds of the outstanding Class C Shares.

     7.2 Mechanics of Conversion.

     (a) To convert  Class C Shares,  the holder  thereof  shall  surrender  the
certificate or  certificates  representing  such shares,  duly endorsed,  at the
principal  corporate  office of the Corporation or of any transfer agent for the
Class C  Shares,  and  shall  give  written  notice  to the  Corporation  at its
principal  corporate  office of the election to convert the same and shall state
therein the name or names in which the  certificate or  certificates  for Common
Shares  are  to be  issued.  The  Corporation  shall,  as  soon  as  practicable
thereafter,  issue and  deliver at such office to such holder of Class C Shares,
or to the nominee or nominees of such holder,  a certificate or certificates for
the number of shares of Common  Stock to which such holder  shall be entitled as
aforesaid,  and a check  payable to the holder in the amount of any cash amounts
payable to the holder in lieu of fractional  shares, as provided in Section 7.7.
Such conversion shall be deemed to have been made immediately prior to the close
of business on the date of such surrender of the  certificate  representing  the
Class C Shares to be  converted,  and the person or persons  entitled to receive
the shares of Common Stock  issuable upon such  conversion  shall be treated for
all  purposes as the record  holder or holders of such shares of Common Stock as
of such date.

     (b) In the event of an automatic  conversion pursuant to Section 7.1(b) the
Class C Shares shall not be deemed to be converted  until  immediately  prior to
the closing of such sale of securities or one business day after the  completion

                                       7
<PAGE>

of the vote  referenced  in clause (ii) of Section  7.1(b).  Upon the closing of
such an offering or the day after the  completion of the vote,  the  outstanding
Class C Shares shall be converted  automatically  without  further action by the
holders of said shares and  whether or not the  certificates  representing  said
shares are  surrendered  to the  Corporation  or its transfer  agent;  provided,
however, the Corporation shall not be obligated to issue certificates evidencing
the shares of Common Stock issuable upon conversion of any Class C Shares unless
certificates  evidencing  such  Class  C  Shares  are  either  delivered  to the
Corporation or any transfer agent,  or the holder notifies the Corporation  that
said  certificates have been lost, stolen or destroyed and executes an agreement
satisfactory to the  Corporation to indemnify the  Corporation  against any loss
incurred by it in  connection  therewith.  Upon the  occurrence of the automatic
conversion,  the  holders of Class C Shares  shall  surrender  the  certificates
representing  the shares at the  office of the  Corporation  or of any  transfer
agent for the Class C Shares. Thereupon,  there shall be issued and delivered to
such holder,  promptly at such office and in such holder's name as shown on such
surrendered  certificate or certificates  (or such other name as such holder may
designate),  a certificate  or  certificates  for the number of shares of Common
Stock into which the Class C Shares  surrendered were convertible on the date on
which the event effecting the automatic conversion occurred.

     7.3 Conversion Price Adjustment. The Conversion Price of the Class C Shares
shall be subject to adjustment from time to time as follows:

     (a) (i) If the Corporation  shall issue any "Additional  Stock" (as defined
in Section 7.3(b) below) for a consideration  per share less than the Conversion
Price of the Common  Stock in effect  immediately  prior to the issuance of such
Additional Stock,  then the applicable  Conversion Price for the Common Stock in
effect  immediately prior to each such issuance shall forthwith be adjusted to a
price  determined  by  dividing  the  aggregate  consideration  received  by the
Corporation  for all  Additional  Stock  issued by the  Corporation  during  the

                                       8
<PAGE>

preceding 12 month  period,  including the  consideration  to be received by the
Corporation for the issuance of such Additional  Stock, by the aggregate  number
of shares of  Additional  Stock issued  during such  preceding 12 month  period,
including  the  number  of shares  of  Additional  Stock to be issued in the new
issuance.  Immediately  after any  shares of  Additional  Stock are deemed to be
issued pursuant to Section  7.3(a)(v),  such shares of Additional Stock shall be
deemed to be outstanding.

     (ii) No adjustment of the applicable  Conversion  Price shall be made in an
amount less than one cent ($.01) per share,  provided that any adjustments which
are not required to be made by reason of this sentence shall be carried  forward
and shall be made at the time of and  together  with any  subsequent  adjustment
which, on a cumulative  basis,  amounts to an adjustment of one cent ($0.01) per
share or more in the Conversion Price. Except to the limited extent provided for
in Sections  7.3(a)(v)(3)  and  7.3(a)(v)(4),  no adjustment of such  Conversion
Price pursuant to this Section  7.3(a) shall have the effect of increasing  such
Conversion Price above the Conversion Price in effect  immediately prior to such
adjustment.

     (iii) In the case of the issuance of shares of Common  Stock for cash,  the
consideration  shall be deemed to be the  amount of cash paid  therefore  before
deducting any discounts, commissions or other expenses allowed, paid or incurred
by the  Corporation  for any  underwriting  or otherwise in connection  with the
issuance and sale thereof.

     (iv)  In the  case  of  the  issuance  of  shares  of  Common  Stock  for a
consideration in whole or in part other than cash, the consideration  other than
cash shall be deemed to be the fair value  thereof as determined by the Board of
Directors irrespective of any accounting treatment.

                                       9
<PAGE>

     (v) In the case of the  issuance  of  options  to  purchase  or  rights  to
subscribe for shares of Common Stock, securities by their terms convertible into
or exchangeable  for shares of Common Stock, or options to purchase or rights to
subscribe  for  such  convertible  or  exchangeable  securities  (that  are  not
expressly  excluded  from the  definition of  Additional  Stock),  the following
provisions shall apply:

     (1) The aggregate maximum number of shares of Common Stock deliverable upon
exercise of such options to purchase or rights to subscribe for shares of Common
Stock  shall be deemed to have been  issued at the time such  options  or rights
were issued and for a consideration  equal to the  consideration  (determined in
the manner provided in Sections 7.3(a)(iii) and 7.3(a)(iv)), if any, received by
the  Corporation  upon the  issuance of such  options or rights plus the minimum
purchase price provided in such options or rights for the shares of Common Stock
covered thereby.

     (2) The aggregate maximum number of shares of Common Stock deliverable upon
conversion  of  or  in  exchange  for  any  such   convertible  or  exchangeable
securities,  or upon the  exercise of options to purchase or rights to subscribe
for such convertible or exchangeable  securities and subsequent conversion of or
exchange  thereof,  shall  be  deemed  to have  been  issued  at the  time  such
securities  were  issued  or  such  options  or  rights  were  issued  and for a
consideration,  if any, received by the Corporation for any such securities,  or
for any such options or rights,  plus the minimum additional  consideration,  if
any,  to be  received  by the  Corporation  upon the  conversion  or exchange of
related  securities,  for such shares of Common Stock (the consideration in each
case to be  determined  in the  manner  provided  in  Sections  7.3(a)(iii)  and
7.3(a)(iv)).

                                       10
<PAGE>

     (3) In the  event of any  change in the  number  of shares of Common  Stock
deliverable or any increase in the consideration payable to the Corporation upon
exercise of such options or rights or upon conversion of or in exchange for such
convertible or exchangeable securities,  including, but not limited to, a change
resulting from the antidilution  provisions thereof, the Conversion Price of the
Common Stock  obtained  with respect to the  adjustment  which was made upon the
issuance of such options,  rights or securities,  and any subsequent adjustments
based  thereon,  shall be  recomputed  to reflect  such  change,  but no further
adjustment  shall be made for the actual  issuance of shares of Common  Stock or
any  payment of such  consideration  upon the  exercise  of any such  options or
rights or the conversion or exchange of such related securities.

     (4) Upon the expiration of any such options or rights,  the  termination of
any such  rights to convert or  exchange  or the  expiration  of any  options or
rights related to such  convertible or exchangeable  securities,  the Conversion
Price of the Class C Shares  obtained with respect to the  adjustment  which was
made upon the  issuance  of such  options,  rights or  securities  or options or
rights related to such securities, and any subsequent adjustments based thereon,
shall be  recomputed  to reflect  the  issuance  of only the number of shares of
Common Stock actually  issued upon the exercise of such options or rights,  upon
the  conversion  or  exchange  of such  securities  or upon the  exercise of the
options or rights and conversion or exchange of such related securities.

     (b) "Additional  Stock" shall mean any shares of Common Stock issued either
directly or upon exercise or conversion of a derivative instrument (or deemed to
have been issued  pursuant to Section  7.3(a)(v)) by the  Corporation  after the
Original Issue Date other than:

                                       11
<PAGE>

     (i) Shares of Common Stock issued  pursuant to a  transaction  described in
subsection 7.3(c) hereof;

     (ii)  Shares of Common  Stock  issuable or issued to  employees,  officers,
directors  or  consultants  of the  Corporation  directly or pursuant to a stock
option plan or agreement or restricted  stock plan or agreement  approved by the
Board of Directors of the Corporation, when the total number of shares of Common
Stock so  issuable  or issued  does not  exceed  seven  hundred  fifty  thousand
(750,000)   shares   (appropriately   adjusted  to  reflect   subsequent   Share
Combinations  or  Divisions,  and  net of any  such  shares  repurchased  by the
Corporation at cost upon  termination of employment or services,  and net of any
such options which may expire unexercised);

     (iii) Shares of Common Stock issued or issuable in connection  with debt or
lease financings approved by the Board of Directors;

     (iv)  Shares of Common  Stock  issued or issuable  in  connection  with any
acquisition approved by the Board of Directors;

     (v)  Shares of Common  Stock  issued or  issuable  upon  conversion  of the
Preferred Stock Classes A or B or C;

     (vi) Common Stock issued or issuable as dividend  payments or accruals;  or
(vii) Shares of Common Stock issued prior to the Original Issue Date or pursuant
to subscription agreements entered into by the Corporation prior to the Original
Issue Date.

     (c) In the  event the  Corporation  should at any time or from time to time
after  the  Original  Issue  Date  fix a  record  date to  effect a split of the

                                       12
<PAGE>

outstanding  shares of Common Stock or the determination of holders of shares of
Common  Stock  entitled to receive a dividend or other  distribution  payable in
additional  shares of Common  Stock or other  securities  or rights  convertible
into,  or  entitling  the  holder  thereof to receive  directly  or  indirectly,
additional  shares of Common  Stock  (hereinafter  referred to as "Common  Stock
Equivalents")  without  payment  of any  consideration  by such  holder  for the
additional Common Stock  Equivalents  (including the additional shares of Common
Stock  issuable upon  conversion or exercise  thereof),  then, as of such record
date (or the date of such split,  dividend or  distribution if no record date is
fixed), the Conversion Price shall be appropriately decreased so that the number
of shares of Common Stock  issuable on conversion of each Class C Share shall be
increased in proportion to such increase of  outstanding  shares  (and/or shares
deemed to be outstanding as determined in accordance with Section 7.3(a)(v)).

     (d) If the number of shares of Common Stock  outstanding  at any time after
the Original Issue Date is decreased by a combination of the outstanding  shares
of Common  Stock,  then,  following  the record  date of such  combination,  the
Conversion Price shall be  appropriately  increased so that the number of shares
of Common Stock  issuable on conversion of each Class C Share shall be decreased
in  proportion to such  decrease in the number of  outstanding  shares of Common
Stock .

     7.4 Adjustment for Reclassification,  Exchange and Substitution.  If at any
time or from time to time after the  Original  Issue Date,  the shares of Common
Stock  issuable  upon the  conversion of the Class C Shares are changed into the
same or a different  number of shares of any class or classes of stock,  whether
by   recapitalization,   reclassification  or  otherwise  (other  than  a  share
combination  or division  provided for elsewhere in this Section 7), in any such
event  each  holder of the Class C Shares  shall  have the right  thereafter  to
convert  such  shares  into the kind  and  amount  of  securities  and  property

                                       13
<PAGE>

receivable  upon  such  recapitalization,  reclassification  or other  change by
holders of the shares of Common  Stock into which such Class C Shares could have
been converted immediately prior to such  recapitalization,  reclassification or
change.  In  any  such  case,  appropriate  adjustment  shall  be  made  in  the
application  of the  provisions  of this Section 7 with respect to the rights of
holders of Class C Shares after such  recapitalization,  reclassification or the
like to the end that the  provisions of this Section 7 (including  adjustment of
the  Conversion  Price then in effect  and the number of shares of Common  Stock
receivable upon conversion of the Class C Shares) shall be applicable after that
event and be as nearly equivalent as possible.

     7.5 Reorganizations,  Mergers,  Sale of Assets. If at any time or from time
to time after the Original Issue Date the Corporation  effects a merger, sale or
conveyance  of all or  substantially  all of the assets of the  Corporation,  or
similar reorganization (other than a reclassification,  exchange or substitution
provided for in Section 7.4), then as a part of such merger,  sale or conveyance
of assets, or other  reorganization  provision shall be made so that the holders
of Class C Shares shall thereafter be entitled to receive upon conversion of the
Class C Shares the number of shares of stock or other  securities or property of
the  Corporation  to which a holder of the  number  of  shares  of Common  Stock
deliverable upon conversion of such Class C Shares would have been entitled upon
such merger,  sale or conveyance of assets or other  reorganization,  subject to
adjustment in respect of such stock or securities by the terms  thereof.  In any
such  case,  appropriate  adjustment  shall  be made in the  application  of the
provisions  of this Section 7 with respect to the rights of the holders of Class
C Shares after the merger, sale or conveyance of assets or other  reorganization
to the end that the  provisions  of this Section 7 (including  adjustment of the
Conversion  Price  then in effect  and the  number of  shares  purchasable  upon
conversion of the Class C Shares)  shall be  applicable  after that event and be
nearly equivalent as practicable.

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<PAGE>

     7.6 No Impairment.  The Corporation  will not,  without the approval of the
holders  of Class C Shares as  required  under  Section 8, by  amendment  of its
Certificate of  Incorporation or through any  reorganization,  recapitalization,
transfer  of  assets,  consolidation,  merger,  dissolution,  issue  or  sale of
securities or any other voluntary action,  avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed  hereunder by the
Corporation,  but will at all times in good faith  assist in the carrying out of
all the provisions of this Section 7 and in the taking of all such action as may
be necessary or appropriate  in order to protect the  Conversion  Rights against
impairment.

     7.7 No  Fractional  Shares.  No  fractional  shares  shall be  issued  upon
conversion  of any of the  Class C  Shares,  and the  number of shares of Common
Stock to be issued upon  conversion  shall be rounded down to the nearest  whole
share.  In lieu of any fractional  shares to which the holder would otherwise be
entitled,  the  Corporation  shall pay the  holder  cash  equal to the  fraction
multiplied  by the fair market  value of one share of Common  Stock  immediately
prior to the conversion,  as determined by the Board of Directors in good faith.
Whether or not  fractional  shares are issuable  upon such  conversion  shall be
determined  on the basis of the total  number of Class C Shares the holder is at
the time  converting  into  shares of Common  Stock and the  number of shares of
Common Stock issuable upon such aggregate conversion.

     8.  Protective  Provisions  for  Class C  Shares.  As long as at  least  an
aggregate  of fifty  thousand  (50,000) of the Class C Shares (as  appropriately
adjusted  for  Share  Combinations  or  Divisions)  shall  be  outstanding,  the
Corporation  shall not, without first obtaining the approval (by vote or written
consent,  as  provided by law) of the holders of not less than a majority of the
total number of Class C Shares then outstanding, voting together as one class:

                                       15
<PAGE>

     8.1 Certain Class C Share Changes. Amend or repeal any provision of, or add
any provision to, the  Corporation's  certificate of incorporation or bylaws, if
such  action  would  alter or change  the  rights,  preferences,  privileges  or
restrictions of the Class C Shares;

     8.2  Senior or Parity  Securities.  Issue  shares of any series or class of
stock having any preference or priority as to dividends,  assets or other rights
superior to or on a parity with any such  preference or priority  enjoyed by the
holders of the Class C Shares.

     8.3 Dividends.  Declare or pay any dividends on account of shares of Common
Stock,  except for share  dividends  issued pro rata to the holders of shares of
Common Stock;

     8.4  Redemption.  Purchase or redeem any capital  stock of the  Corporation
except  pursuant  to  Section 6 hereof or through a purchase  or  redemption  of
shares of Common Stock from an officer, employee,  director or consultant of the
Corporation upon termination of employment or services  pursuant to the terms of
a stock purchase or stock option plan or agreement.

     9. Notices.  Subject to any rights that may be conferred upon any shares of
Preferred Stock, each outstanding share of Common Stock shall be entitled to one
vote on each matter to be voted on by the  shareholders  of the  Corporation and
the  holders of the shares of Common  Stock shall be entitled to receive the net
assets of the Corporation upon dissolution.

     9.1 Notices of Record Date.  In the event of any taking by the  Corporation
of a record  of the  holders  of any  class of  securities  for the  purpose  of
determining  the holders thereof who are entitled to receive any dividend (other
than a cash dividend) or other  distribution,  or right to purchase or otherwise
acquire any securities or property of the Corporation, or any other right (other
than the right to vote shares), the Corporation shall mail to each holder of the
Class C Shares at least fifteen (15) days prior to the date specified therein, a
notice  specifying  the date on which  any such  record  is to be taken  for the

                                       16
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purpose of such dividend,  distribution or rights,  and the amount and character
of such dividend, distribution or right.

     9.2 Manner of Notice.  Any notice  required or permitted to be given by the
provisions of this Certificate of Incorporation to the holders of Class C Shares
(or any Class  thereof)  shall be given in  writing  and shall be deemed to have
been  duly  given if  delivered  personally  or when  mailed  by  registered  or
certified mail, postage prepaid, to each such holder of record of Class C Shares
at such holder's address appearing on the books of this Corporation.

     IN WITNESS WHEREOF, Klever Marketing,  Inc., has caused this Certificate to
be executed this 2nd day of January,  2001, by its  undersigned  duly authorized
officer.
                             KLEVER MARKETING, INC.

                             By: __/s/Corey A. Hamilton
                                 Corey A. Hamilton
                                 Its:  President/CEO

                                       17

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