Document:

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                                                                   EXHIBIT 10.35

                                                         Equinix, Inc.
                                                         2450 Bayshore Parkway
                                                         Mountain View, CA 94043
                                                         USA

                                                         11 October 2000

Herm Gunter Rothenberger and Sven Rothenberger
Naxos Schmirgelwerk Mainkur GmbH
GutleutstraBe 175
D-60327
Frankfurt am Main

Our Reference:  24412-26S-203

Subject:  First Supplement to the Lease Agreement

between

1)   Naxos Schmirgelwerk Mainkur GmbH, GutleutstraBe 175, D-60327 Frankfurt,
     represented by Mr. Gunter Rothenberger and Mr. Sven Rothenberger;

2)   A.A.A. Aktiengesellschaft Allgemeine Anlageverwaltung vorm. Seilwolff AG
     von 1890, GutleutstraBe 175, 60327 Frankfurt/M, represented by Mr. Gunter
     Rothenberger and Mr. Sven Rothenberger;

     both companies acting in a German Civil Code Partnership (the Parties at 1.
     and 2. jointly called: "Landlord"), under the firm name Naxos-Union
     Grundstucksverwaltungsgesellschaft GbR, Frankfurt/M, and

3)   Equinix, Inc., a Delaware Corporation, 2450 Bayshore Parkway, Mountain
     View, CA 94043, USA, represented by Christopher L. Birdsong;

dated August 7, 2000, (the Lease)

The Parties hereto agree to modify the Lease as follows:

                              Preliminary Remarks

The Tenant has rescheduled the fit-out and operations of its facility on the
Premises. In consequence of this rescheduling the actual occupation of the
Premises by the Tenant and the installation of its equipment will take place at
a later time than anticipated. This means that part of the fit-out work which is
geared to the specific needs of the Tenant can take place later than expected.
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In view of the fact that the Landlord has already given certain instructions to
construction firms and in view of the fact that the Landlord's bank relies on
the financial obligations of the Tenant under the Lease, the parties, in view of
the Premises, agree on what follows:

1.   Transfer of the leased property will take place as previously agreed on
     February 7, 2001. Due to the modified construction planning and the delayed
     submission of the Preliminary Design Package by the Tenant, the parties
     hereby agree that Handover will take place on February 7, 2001 in
     accordance with the condition described in Exhibit C-1 of this First
     Supplement to the Lease. Exhibit C-1 herewith replaces Exhibit C, Landlords
     Scope of Building Works' of the lease agreement; whereas the drawing
     Exhibit C - Landlord Improvements' remains unaffected.

     In the event Tenant does not apply by 31" July, 2001 for:-

          .    all necessary work permits for the utilization of the Property as
               an internet exchange center; and

          .    to the (local) authorities regarding approval and permits for
               (diesel) generators, fuel tanks, antenna(-s) and satellite
               dish(-es); including permission from the Historical Preservation
               Department authorities to obtain permits,

     then the Tenant hereby waives his right of cancellation pursuant to section
     20.1, 2nd and 4th bullet points of the Lease, in such case.

     In case Tenant does not submit the Preliminary Design Packages by January
     31, 2001, then Landlord is entitled to construct the leased property in
     accordance with Exhibit C-1, item B "Building work after February 2001". If
     Landlord does not complete this work by July 31, 2001 then Landlord shall
     pay as liquidated damages an amount equal to three times the daily Rent in
     accordance with Article 2.4.1 otherwise due for each commenced day after
     July 31, 2001.

2.   If the Tenant does not execute an agreement with "Mainova" on the supply of
     certain quantities of electricity by October 31, 2000, the Tenant may lose
     the power allocation which was tentatively promised by Mainova to the
     Tenant through the good offices of the Landlord as a consequence. Art.
     20.1, 3rd bullet point of the Lease provides for a guaranty of such power
     delivery by the Landlord.

     In case that the Tenant does not execute the agreement with Mainova, the
     Tenant hereby relieves the Landlord from its obligation under Art. 20.1,
     3rd bullet point of the Lease to guarantee the power supply by Mainova; the
     Tenant hereby waives his right of cancellation pursuant to section 20.1,
     3rd bullet point of the Lease, in such case.

3.   Despite the changes reflected in Exhibit C-1, the Tenant shall

          -    commence payment of the Service Charges per April 1, 2001 as
               agreed in Sec. 9 (b) Lease Summary

                                       2
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          -    commence payment of the Rent per October 1, 2001 as agreed in
               Sec. 9 (b) Lease Summary

4.   The Parties are in agreement that Sec. 4.a.2.1 has a typo on line four. The
     date should be: "7th February 2001" instead of "7th February 2000".

5.   Tenant's address has been changed to the following new address; Equinix,
     Inc., 2450 Bayshore Parkway, Mountain View, CA 94043, USA.

     All other provisions of the Lease shall remain unaffected.

1.   TENANT

     Equinix, Inc

     By: /S/ CHRISTOPHER L. BIRDSONG
        ____________________________________
              Christopher L. BIRDSONG

     Title :  Director IBX Development and Operations

     Date :  13-October-2000
           ---------------------------------

2.   LANDLORD

2.1  Naxos Schmirgelwerk Mainkur GmbH
     Equinix, Inc

     By: /S/ GUNTER ROTHENBERGER
        ____________________________________
              Gunter ROTHENBERGER

     Title :  Managing Director

     Date :  25-October-2000
           ---------------------------------

2.2  A.A.A. Aktiengesellschaft Allgemeine Anlagenverwaltung Seilwolff AG von
     1890

     By: /S/ GUNTER ROTHENBERGER                /S/ SVEN ROTHENBERGER
        ____________________________________   ________________________________
               Gunter ROTHENBERGER                    Sven ROTHENBERGER

     Title: President

     Date :  25-October-2000
             -------------------------------

                                       3
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Equinix European lBX Build out
Frankfurt - Naxos Union
-----------------------
Work Letter - Existing Building and Site
----------------------------------------
Lease Exhibit C-1 to the first Supplement to the Lease for the Real Property
----------------------------------------------------------------------------

Landlord's Scope of Building works

The buildings are to be handed over as clean, dry shells, free from
contamination and fit for immediate occupation. Utilities are to be capped off
and any live sections remaining identified.

The Landlord is to carry out this work scope under Section 6 of the Lease
Summary. Bechtel personnel will be permitted reasonable access at any time
during the works to monitor quality and schedule.

A.   Building works to be completed by 7th February 2001

1.   Site Clean Up
     -------------

     (1)  Contain the exposed asbestos pipe lagging and arrange for its safe
          removal by an approved asbestos removal contractor. Dispose off site
          to a licensed disposal facility.

     (2)  Commence groundwater remediation measures as recommended in Arcadis
          report of 5th July according to instructions from competent
          authorities.

     (3)  Strip out oil-contaminated wood block floor from western half of
          building and remove any contaminated material found below as far as
          practical.

     (4)  Install additional underfloor vapour extraction points and operate the
          underfloor vapour removal system until safe levels are achieved in
          accordance with current German statutes. In the event that minimum
          safe levels of vapour in accordance with the current German statutes
          are not achieved, then the Landlord shall leave vapour removal
          pipework system in place under floor slabs and relocate filtration
          equipment outside of production halls for further monitoring and use.

     (5)  Remove any further asbestos, asbestos cement or other harmful elements
          identified by Arcadis investigation 7th-17th July from the building
          and dispose offsite.

     (6)  Clean all paint on the steel structure by steam. Landlord guarantees
          to prepare all steelwork to a clean and sound condition to enable the
          application of the project paint system by others.

     (7)  Remove all PCB filled transformers from site and dispose. Remove any
          PCB contaminated material from transformer pens.

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     (8)  Remove all waste oils, paints, chemicals including empty containers
          from site prior to handover.

     (9)  Obtain certification from competent authorities on old hazardous
          material (Altlasten) pursuant to section 14.3 Lease and in deviation
          to section 14.3, certification from Arcadis on all other hazards.

2.   Internal Strip out
     ------------------

     (1)  Remove all internal partition walls e.g. paint cabins

     (2)  Remove heating system including pipes, radiators and blower/heaters

     (3)  Strip-out gantry cranes and crane rails (excepting for the original
          crane to be preserved)

     (4)  Strip out all existing electrical power switchgear, distribution,
          lighting, cabling etc.

     (5)  Strip out ventilation systems, curtains, telephones, first aid boxes
          and all other fixtures.

     (6)  Dismantle and remove paint drying equipment from the basement under
          the first Production Hall

     (7)  Strip out painting equipment from outbuilding to western side

     (8)  Remove boiler equipment, flues, pipework, water treatment equipment
          etc. from boiler rooms and dispose off site taking care that no
          asbestos is uncovered during this work.

3.   Building works
     --------------

     (1)  Remove and rebuild any unsound areas of brickwork identified in
          condition survey

     (2)  Repoint other areas of exposed brickwork as required

     (3)  (item per Exhibit-C is technically not good, as it will create
          moisture in the building, stops breathing - Equinix to reconsider)

     (4)  Construct bullet resistant (Beschusswiderstandsklasse M 4) blockwork
          (or precast concrete panel) walls behind remaining windows of
          protected western, eastern and northern facades. In the event that
          competent authorities (Denkmalschutzbehoerde) allow to brick windows,
          windows have to be bricked according to instructions from these
          competent authorities.

                                       5
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     (5)  Cast new reinforced concrete floor to agreed specification (min
          25kN/m2 loading) throughout the second Production Hall.

     (6)  Infill spaces left in the new floor of first production Hall following
          removal of internal walls, electrical switchgear etc.

4.   Existing Office block Refurbishment
     -----------------------------------

     (1)  Strip out existing office partitions/ceilings/floor coverings

     (2)  Strip out sinks, showers, toilets, tiling etc from basement.

     (3)  Refurbish ground floor as entrance area and offices.

     (4)  Second floor to be fitted out as individual offices. Fit out to be to
          modem commercial standard with suspended ceilings and carpeted floors,
          but without partition walls; Landlord to install partition walls at
          Tenant instructions (Landlord will have the 6 months period to install
          such walls)

     (5)  Refurbish all floors in cellar and ground floor to take uniformly
          distributed loads of 7.5 kN/m2; and first floor to take uniformally
          distributed loads of 5 kN/m2

     (6)  Provide new lighting, heating, and phone connections to offices

     (7)  Basement to be left as bare shell with minimum lighting/heating as
          storage

5.   External works
     --------------

     (1)  Demolish the surrounding outbuildings in accordance with Landlord's
          Improvements Plan - Exhibit C, to 1 metre below ground level and
          remove all demolition materials from site. The foundation and ground
          work of the building remains until Tenant in accordance with Mainova
          have decided in which way cables for electricity have to pass the real
          estate. If Tenant does not require the foundation, then Landlord shall
          remove.

     (2)  Fuel tanks to be cleaned and refurbished to a standard suitable for
          process water storage duty.

     (3)  Construct NATO perimeter security fence 2.1 metres high from steel
          posts and wire mesh fabric with 45 degree extension arms with three
          rows of barbed wire complete with 6 metre wide security gates. Fence
          to be located 18 metres from existing production halls as indicated on
          Exhibit A plan.

     (4)  Obtain necessary permits and fell the trees indicated on the Site Plan
          - Exhibit C and remove the stumps. Clear bushes adjacent to existing
          office to provide vehicular access around buildings

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     (5)  Landlord will design and implement a landscaping scheme to form buffer
          zone around the buildings including planting of replacement trees to
          compensate for those felled.

     (6)  Construct car parking for 25 vehicles as shown on the Site Plan
          Exhibit C. Car parking to be designed with adequate lighting levels
          for 24 hour operations.

     (7)  The Landlord will arrange for the Mains gas supply to be disconnected
          at the property boundary.

     (8)  Existing Chimney stack to be surveyed and remedial works undertaken to
          ensure it is safe for duration of lease. This may include re-pointing
          the brickwork, filling or reinforcing the stack, capping off,
          repainting or replacement of the steel bands and a new lightening
          protection system.

B.   Building works to be completed after 7th February 2001

1.   Site Clean Up
     -------------

     (1)  Thoroughly clean the building prior to handover to remove all dust and
          other contaminating materials.

     (2)  Complete underfloor gas remediation to safe levels in accordance with
          current German statutes then remove pipework and equipment.

2.   Roofing
     -------

     "Northlight" roof to first Production Hall

     (1)  Check condition of existing lightweight concrete infill planks and
          remove if necessary

     (2)  Strip off existing wired glazing panels and dispose

     (3)  Install an aluminum profile cladding system over entire roof area
          including new channels to valleys with minimum 1:48 fall. The work to
          be carried out to DIN 18299, DIN 18338 and DIN 18339. Aluminum
          sections and sheets proposed for covering the roof openings must be to
          specification Z-14.1-181

     (4)  Provide falls ( minimum 1:4 8 ) to the existing flat valley between
          the two roofs to prevent ponding and fit new meshes to top of
          downpipes

     Roof to second Production Hall

     (5)  Remove skylight cupolas

     (6)  Close openings in lightweight concrete slabs (method to be agreed)

                                       7
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     (7)  Install new waterproofing system to entire roof to give a 30 year
          guarantee watertight

     (8)  Replace cupolas or replacements, or instead of steps 5 through 8
          above, any other method of achieving a watertight roof structure for
          30 (thirty) years, e.g. the process suggested on page 2 of RKW report
          on meeting of June 09, 2000 (copy attached hereto)

     Roofs generally

     (9)  Provide new, safe roof access from within the building. Remove
          existing roof ladders.

     (10) Repair/ replace roof gutters and drainage pipework to match style of
          existing

     (11) Install new Lightning Protection system to latest VDE specification

     (12) Roof insulation to be in compliance with local building regulations
          and provide for a normal temperature in the shed hall areas of 20 deg.
          C +/- 1 deg. C.

3.   Building works
     --------------

     (1)  Close up doorways not required for new layout (Brick external to
          match/block internal)

     (2)  Replace internal rainwater pipes and box in with leak detection

4.   External works
     --------------
     Install a new lightening protection system on the roof.

5.   New Mezzanine Floor
     -------------------

     Landlord uses his best endeavors to obtain a building permit
     (Baugenehmigung) from competent authorities for a mezzanine floor (with
     approx 2,000 m2 space and minimum floor to ceiling height of 5 m) in
     production hall.

     Prior to construction of the mezzanine floor, Landlord shall submit the
     design to Tenant for his review and approval. In the event the Tenant
     grants approval and Landlord constructs the Mezzanine, then the Tenant is
     not obliged to rent the space. If Tenant elects to rent the space, then
     both parties agree that the rental rate will be set at DM 22/m2 per month
     for the mezzanine floor.

                                       8<PAGE>

                                                                     EXHIBIT 4.1

                        CADABRA DESIGN LIBRARIES, INC.
                            U.S. STOCK OPTION PLAN

     1.   Establishment, Purpose and Term of Plan.

          1.1  Establishment. The Cadabra Design Libraries, Inc. U.S. Stock
Option Plan (the "Plan") is hereby established effective as of October 27, 1997.

          1.2  Purpose.  The purpose of the Plan is to advance the interests of
the Participating Company Group and its shareholders by providing an incentive
to attract, retain and reward persons performing services for the Participating
Company Group and by motivating such persons to contribute to the growth and
profitability of the Participating Company Group.

          1.3  Term of Plan.  The Plan shall continue in effect until the
earlier of its termination by the Board or the date on which all of the shares
of Stock available for issuance under the Plan have been issued and all
restrictions on such shares under the terms of the Plan and the agreements
evidencing Options granted under the Plan have lapsed. However, all Options
shall be granted, if at all, within ten (10) years from the earlier of the date
the Plan is adopted by the Board or the date the Plan is duly approved by the
shareholders of the Company.

     2.   Definitions and Construction.
          ----------------------------

          2.1  Definitions.  Whenever used herein, the following terms shall
have their respective meanings set forth below:

               (a)  "Board" means the Board of Directors of the Company. If one
or more Committees have been appointed by the Board to administer the Plan,
"Board" also means such Committee(s).

               (b)  "Code" means the Internal Revenue Code of 1986, as amended,
and any applicable regulations promulgated thereunder.

               (c)  "Committee" means the Compensation Committee or other
committee of the Board duly appointed to administer the Plan and having such
powers as shall be specified by the Board. Unless the powers of the Committee
have been specifically limited, the Committee shall have all of the powers of
the Board granted herein, including, without limitation, the power to amend or
terminate the Plan at any time, subject to the terms of the Plan and any
applicable limitations imposed by law.

               (d)  "Company" means Cadabra Design Libraries, Inc., or any
successor corporation thereto.

                                       1
<PAGE>

               (e)  "Consultant" means any person, including an advisor, engaged
by a Participating Company to render services other than as an Employee or a
Director.

               (f)  "Director" means a member of the Board or of the board of
directors of any other Participating Company.

               (g)  "Disability" means the inability of the Optionee, in the
opinion of a qualified physician acceptable to the Company, to perform the major
duties of the Optionee's position with the Participating Company group because
of the sickness or injury of the Optionee.

               (h)  "Employee" means any person treated as an employee
(including an officer or a Director who is also treated as an employee) in the
records of a Participating Company and, with respect to any Incentive Stock
Option granted to such person, who is an employee for purposes of Section 422 of
the Code; provided, however, that neither service as a Director nor payment of a
director's fee shall be sufficient to constitute employment for purposes of the
Plan.

               (i)  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

               (j)  "Fair Market Value" means, as of any date, the value of a
share of Stock or other property as determined by the Board, in its sole
discretion, or by the Company, in its sole discretion, if such determination is
expressly allocated to the Company herein, subject to the following:

                    (i)  If, on such date, there is a public market for the
Stock, the Fair Market Value of a share of Stock shall be the closing sale price
of a share of Stock (or the mean of the closing bid and asked prices of a share
of Stock if the Stock is so quoted instead) as quoted on the Nasdaq National
Market, the Nasdaq Small-Cap Market or such other national or regional
securities exchange or market system constituting the primary market for the
Stock, as reported in the Wall Street Journal or such other source as the
                          -------------------
Company deems reliable. If the relevant date does not fall on a day on which the
Stock has traded on such securities exchange or market system, the date on which
the Fair Market Value shall be established shall be the last day on which the
Stock was so traded prior to the relevant date, or such other appropriate day as
shall be determined by the Board, in its sole discretion.

                    (ii) If, on such date, there is no public market for the
Stock, the Fair Market Value of a share of Stock shall be as determined by the
Board without regard to any restriction other than a restriction which, by its
terms, will never lapse.

               (k)  "Incentive Stock Option" means an Option intended to be (as
set forth in the Option Agreement) and which qualifies as an incentive stock
option within the meaning of Section 422(b) of the Code.

               (l)  "Insider" means an officer or a Director of the Company or
any other person whose transactions in Stock are subject to Section 16 of the
Exchange Act.

               (m)  "Nonstatutory Stock Option" means an Option not intended to
be (as set forth in the Option Agreement) or which does not qualify as an
Incentive Stock Option.

                                       2
<PAGE>

               (n)  "Option" means a right to purchase Stock (subject to
adjustment as provided in Section 4.2) pursuant to the terms and conditions of
the Plan. An Option may be either an Incentive Stock Option or a Nonstatutory
Stock Option.

               (o)  "Option Agreement" means a written agreement between the
Company and an Optionee setting forth the terms, conditions and restrictions of
the Option granted to the Optionee and any shares acquired upon the exercise
thereof.

               (p)  "Optionee" means a person who has been granted one or more
Options.

               (q)  "Parent Corporation" means any present or future "parent
corporation" of the Company, as defined in Section 424(e) of the Code.

               (r)  "Participating Company" means the Company or any Parent
Corporation or Subsidiary Corporation.

               (s)  "Participating Company Group" means, at any point in time,
all corporations collectively which are then Participating Companies.

               (t)  "Rule 16b-3" means Rule 16b-3 under the Exchange Act, as
amended from time to time, or any successor rule or regulation.

               (u)  "Securities Act" means the Securities Act of 1933, as
amended.

               (v)  "Service" means an Optionee's employment or service with the
Participating Company Group, whether in the capacity of an Employee, a Director
or a Consultant. The Optionee's Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Optionee renders Service
to the Participating Company Group or a change in the Participating Company for
which the Optionee renders such Service, provided that there is no interruption
or termination of the Optionee's Service. Furthermore, an Optionee's Service
with the Participating Company Group shall not be deemed to have terminated if
the Optionee takes any military leave, sick leave, or other bona fide leave of
absence approved by the Company; provided, however, that if any such leave
exceeds ninety (90) days, on the ninety-first (91st) day of such leave the
Optionee's Service shall be deemed to have terminated unless the Optionee's
right to return to Service with the Participating Company Group is guaranteed by
statute or contract. Notwithstanding the foregoing, unless otherwise designated
by the Company or required by law, a leave of absence shall not be treated as
Service for purposes of determining vesting under the Optionee's Option
Agreement. The Optionee's Service shall be deemed to have terminated either upon
an actual termination of Service or upon the corporation for which the Optionee
performs Service ceasing to be a Participating Company. Subject to the
foregoing, the Company, in its sole discretion, shall determine whether the
Optionee's Service has terminated and the effective date of such termination.

               (w)  "Stock" means the common stock of the Company, as adjusted
from time to time in accordance with Section 4.2.

               (x)  "Subsidiary Corporation" means any present or future
"subsidiary corporation" of the Company, as defined in Section 424(f) of the
Code.

                                       3
<PAGE>

               (y)  "Ten Percent Owner Optionee" means an Optionee who, at the
time an Option is granted to the Optionee, owns stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of a
Participating Company within the meaning of Section 422(b)(6) of the Code.

          2.2  Construction. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the singular. Use
of the term "or" is not intended to be exclusive, unless the context clearly
requires otherwise.

     3.   Administration.
          --------------

          3.1  Administration by the Board.  The Plan shall be administered by
the Board. All questions of interpretation of the Plan or of any Option shall be
determined by the Board, and such determinations shall be final and binding upon
all persons having an interest in the Plan or such Option. Any officer of a
Participating Company shall have the authority to act on behalf of the Company
with respect to any matter, right, obligation, determination or election which
is the responsibility of or which is allocated to the Company herein, provided
the officer has apparent authority with respect to such matter, right,
obligation, determination or election.

          3.2  Administration with Respect to Insiders. With respect to
participation by Insiders in the Plan, at any time that any class of equity
security of the Company is registered pursuant to Section 12 of the Exchange
Act, the Plan shall be administered in compliance with the requirements, if any,
of Rule 16b-3.

          3.3  Powers of the Board. In addition to any other powers set forth in
the Plan and subject to the provisions of the Plan, the Board shall have the
full and final power and authority, in its sole discretion:

               (a)  to determine the persons to whom, and the time or times at
which, Options shall be granted and the number of shares of Stock to be subject
to each Option;

               (b)  to designate Options as Incentive Stock Options or
Nonstatutory Stock Options;

               (c)  to determine the Fair Market Value of shares of Stock or
other property;

               (d)  to determine the terms, conditions and restrictions
applicable to each Option (which need not be identical) and any shares acquired
upon the exercise thereof, including, without limitation, (i) the exercise price
of the Option, (ii) the method of payment for shares purchased upon the exercise
of the Option, (iii) the method for satisfaction of any tax withholding
obligation arising in connection with the Option or such shares, including by
the withholding or delivery of shares of stock, (iv) the timing, terms and
conditions of the exercisability of the Option or the vesting of any shares
acquired upon the exercise thereof, (v) the time of the expiration of the
Option, (vi) the effect of the Optionee's termination of Service with the
Participating Company Group on any of the foregoing, and (vii) all other terms,
conditions and restrictions applicable to the Option or such shares not
inconsistent with the terms of the Plan;

                                       4
<PAGE>

               (e)  to approve one or more forms of Option Agreement;

               (f)  to amend, modify, extend, cancel, renew, reprice or
otherwise adjust the exercise price of, or grant a new Option in substitution
for, any Option or to waive any restrictions or conditions applicable to any
Option or any shares acquired upon the exercise thereof;

               (g)  to accelerate, continue, extend or defer the exercisability
of any Option or the vesting of any shares acquired upon the exercise thereof,
including with respect to the period following an Optionee's termination of
Service with the Participating Company Group;

               (h)  to prescribe, amend or rescind rules, guidelines and
policies relating to the Plan, or to adopt supplements to, or alternative
versions of, the Plan, including, without limitation, as the Board deems
necessary or desirable to comply with the laws of, or to accommodate the tax
policy or custom of, foreign jurisdictions whose citizens may be granted
Options; and

               (i)  to correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Option Agreement and to make all other
determinations and take such other actions with respect to the Plan or any
Option as the Board may deem advisable to the extent consistent with the Plan
and applicable law.

     4.   Shares Subject to Plan.
          ----------------------

          4.1  Maximum Number of Shares Issuable. Subject to adjustment as
provided in Section 4.2, the maximum aggregate number of shares of Stock that
may be issued under the Plan shall be Two Million Nine Hundred Thousand
(2,900,000) and shall consist of authorized but unissued or reacquired shares of
Stock or any combination thereof. If an outstanding Option for any reason
expires or is terminated or canceled or shares of Stock acquired, subject to
repurchase, upon the exercise of an Option are repurchased by the Company, the
shares of Stock allocable to the unexercised portion of such Option, or such
repurchased shares of Stock, shall again be available for issuance under the
Plan.

          4.2  Adjustments for Changes in Capital Structure. In the event of any
stock dividend, stock split, reverse stock split, recapitalization, combination,
reclassification or similar change in the capital structure of the Company,
appropriate adjustments shall be made in the number and class of shares subject
to the Plan and to any outstanding Options and in the exercise price per share
of any outstanding Options. If a majority of the shares which are of the same
class as the shares that are subject to outstanding Options are exchanged for,
converted into, or otherwise become (whether or not pursuant to an Ownership
Change Event, as defined in Section 8.1) shares of another corporation (the "New
Shares"), the Board may unilaterally amend the outstanding Options to provide
that such Options are exercisable for New Shares. In the event of any such
amendment, the number of shares subject to, and the exercise price per share of,
the outstanding Options shall be adjusted in a fair and equitable manner as
determined by the Board, in its sole discretion. Notwithstanding the foregoing,
any fractional share resulting from an adjustment pursuant to this Section 4.2
shall be rounded up or down to the nearest whole number, as determined by the
Board, and in no event may the exercise price of any Option be decreased to an
amount less than the par value, if any, of the stock subject to the Option. The
adjustments determined by the Board pursuant to this Section 4.2 shall be final,
binding and conclusive.

                                       5
<PAGE>

     5.   Eligibility and Option Limitations.
          ----------------------------------

          5.1  Persons Eligible for Options. Options may be granted only to
Employees, Consultants, and Directors. For purposes of the foregoing sentence,
"Employees," "Consultants" and "Directors" shall include prospective Employees,
prospective Consultants and prospective Directors to whom Options are granted in
connection with written offers of an employment or other service relationship
with the Participating Company Group. Eligible persons may be granted more than
one (1) Option.

          5.2  Option Grant Restrictions. Any person who is not an Employee on
the effective date of the grant of an Option to such person may be granted only
a Nonstatutory Stock Option. An Incentive Stock Option granted to a prospective
Employee upon the condition that such person become an Employee shall be deemed
granted effective on the date such person commences service with a Participating
Company, with an exercise price determined as of such date in accordance with
Section 6.1.

          5.3  Fair Market Value Limitation. To the extent that options
designated as Incentive Stock Options (granted under all stock option plans of
the Participating Company Group, including the Plan) become exercisable by an
Optionee for the first time during any calendar year for stock having a Fair
Market Value greater than One Hundred Thousand Dollars ($100,000), the portion
of such options which exceeds such amount shall be treated as Nonstatutory Stock
Options. For purposes of this Section 5.3, options designated as Incentive Stock
Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of stock shall be determined as of the time the option
with respect to such stock is granted. If the Code is amended to provide for a
different limitation from that set forth in this Section 5.3, such different
limitation shall be deemed incorporated herein effective as of the date and with
respect to such Options as required or permitted by such amendment to the Code.
If an Option is treated as an Incentive Stock Option in part and as a
Nonstatutory Stock Option in part by reason of the limitation set forth in this
Section 5.3, the Optionee may designate which portion of such Option the
Optionee is exercising. In the absence of such designation, the Optionee shall
be deemed to have exercised the Incentive Stock Option portion of the Option
first. Separate certificates representing each such portion shall be issued upon
the exercise of the Option.

          5.4  Toronto Stock Exchange Grant Limit. If, on the effective date of
grant of an Option, the Stock is listed on The Toronto Stock Exchange (the
"TSE"), the number of shares of Stock subject to an Option granted to any one
Optionee under the Plan together with any other Stock reserved for issuance
under any share compensation arrangements to such Optionee shall not exceed five
percent (5%) of the total number of issued and outstanding shares of Stock
(determined on a non-diluted basis) on the effective date of grant of the
Option.

     6.   Terms and Conditions of Options.
          -------------------------------

     Options shall be evidenced by Option Agreements specifying the number of
shares of Stock covered thereby, in such form as the Board shall from time to
time establish.  No Option or purported Option shall be a valid and binding
obligation of the Company unless evidenced by a fully executed Option Agreement.
Option Agreements may incorporate all or any of the terms of the Plan by
reference and shall comply with and be subject to the following terms and
conditions:

     6.1  Exercise Price. The exercise price for each Option shall be
established in the sole discretion of the Board; provided, however, that (a) the
exercise price per share for an Incentive Stock Option

                                       6
<PAGE>

shall be not less than the Fair Market Value of a share of Stock on the
effective date of grant of the Option, (b) the exercise price per share for a
Nonstatutory Stock Option shall be not less than eighty-five percent (85%) of
the Fair Market Value of a share of Stock on the effective date of grant of the
Option, and (c) no Option granted to a Ten Percent Owner Optionee shall have an
exercise price per share less than one hundred ten percent (110%) of the Fair
Market Value of a share of Stock on the effective date of grant of the Option.
Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a
Nonstatutory Stock Option) may be granted with an exercise price lower than the
minimum exercise price set forth above if such Option is granted pursuant to an
assumption or substitution for another option in a manner qualifying under the
provisions of Section 424(a) of the Code. Notwithstanding any of the foregoing,
in the event that the Stock is traded on the TSE on the effective date of grant
of the Option, the exercise price per share for such Option shall not be less
than the closing market price of a share of the Stock as reported on the TSE on
the date of grant of the Option.

          6.2  Exercise Period. Options shall be exercisable at such time or
times, or upon such event or events, and subject to such terms, conditions,
performance criteria, and restrictions as shall be determined by the Board and
set forth in the Option Agreement evidencing such Option; provided, however,
that (a) no Option shall be exercisable after the expiration of ten (10) years
after the effective date of grant of such Option, (b) no Incentive Stock Option
granted to a Ten Percent Owner Optionee shall be exercisable after the
expiration of five (5) years after the effective date of grant of such Option,
(c) no Option granted to a prospective Employee, prospective Consultant or
prospective Director may become exercisable prior to the date on which such
person commences Service with a Participating Company, and (d) with the
exception of an Option granted to an officer, Director or Consultant, no Option
shall become exercisable at a rate less than twenty percent (20%) per year over
a period of five (5) years from the effective date of grant of such Option,
subject to the Optionee's continued Service. Subject to the foregoing, unless
otherwise specified by the Board in the grant of an Option, any Option granted
hereunder shall have a term of ten (10) years from the effective date of grant
of the Option.

          6.3  Payment of Exercise Price.

               (a)  Forms of Consideration Authorized. Except as otherwise
provided below, payment of the exercise price for the number of shares of Stock
being purchased pursuant to any Option shall be made (i) in cash, by check, or
cash equivalent, (ii) by tender to the Company of shares of Stock owned by the
Optionee having a Fair Market Value (as determined by the Company without regard
to any restrictions on transferability applicable to such stock by reason of
federal or state securities laws or agreements with an underwriter for the
Company) not less than the exercise price, (iii) by the assignment of the
proceeds of a sale or loan with respect to some or all of the shares being
acquired upon the exercise of the Option (including, without limitation, through
an exercise complying with the provisions of Regulation T as promulgated from
time to time by the Board of Governors of the Federal Reserve System) (a
"Cashless Exercise"), (iv) by the Optionee's promissory note in a form approved
by the Company, (v) by such other consideration as may be approved by the Board
from time to time to the extent permitted by applicable law, or (vi) by any
combination thereof. The Board may at any time or from time to time, by adoption
of or by amendment to the standard forms of Option Agreement described in
Section 7, or by other means, grant Options which do not permit all of the
foregoing forms of consideration to be used in payment of the exercise price or
which otherwise restrict one or more forms of consideration.

                                       7
<PAGE>

               (b)  Tender of Stock. Notwithstanding the foregoing, an Option
may not be exercised by tender to the Company of shares of Stock to the extent
such tender of Stock would constitute a violation of the provisions of any law,
regulation or agreement restricting the redemption of the Company's stock.
Unless otherwise provided by the Board, an Option may not be exercised by tender
to the Company of shares of Stock unless such shares either have been owned by
the Optionee for more than six (6) months or were not acquired, directly or
indirectly, from the Company.

               (c)  Cashless Exercise. The Company reserves, at any and all
times, the right, in the Company's sole and absolute discretion, to establish,
decline to approve or terminate any program or procedures for the exercise of
Options by means of a Cashless Exercise.

               (d)  Payment by Promissory Note. No promissory note shall be
permitted if the exercise of an Option using a promissory note would be a
violation of any law. Any permitted promissory note shall be on such terms as
the Board shall determine at the time the Option is granted. The Board shall
have the authority to permit or require the Optionee to secure any promissory
note used to exercise an Option with the shares of Stock acquired upon the
exercise of the Option or with other collateral acceptable to the Company
(unless use of such other collateral will violate any applicable rules or
regulations established by the TSE). Unless otherwise provided by the Board, if
the Company at any time is subject to the regulations promulgated by the Board
of Governors of the Federal Reserve System or any other governmental entity
affecting the extension of credit in connection with the Company's securities,
any promissory note shall comply with such applicable regulations, and the
Optionee shall pay the unpaid principal and accrued interest, if any, to the
extent necessary to comply with such applicable regulations.

          6.4  Tax Withholding. The Company shall have the right, but not the
obligation, to deduct from the shares of Stock issuable upon the exercise of an
Option, or to accept from the Optionee the tender of, a number of whole shares
of Stock having a Fair Market Value, as determined by the Company, equal to all
or any part of the federal, state, local and foreign taxes, if any, required by
law to be withheld by the Participating Company Group with respect to such
Option or the shares acquired upon the exercise thereof. Alternatively or in
addition, in its sole discretion, the Company shall have the right to require
the Optionee, through payroll withholding, cash payment or otherwise, including
by means of a Cashless Exercise, to make adequate provision for any such tax
withholding obligations of the Participating Company Group arising in connection
with the Option or the shares acquired upon the exercise thereof. The Company
shall have no obligation to deliver shares of Stock or to release shares of
Stock from an escrow established pursuant to the Option Agreement until the
Participating Company Group's tax withholding obligations have been satisfied by
the Optionee.

          6.5  Repurchase Rights. Shares issued under the Plan may be subject to
a right of first refusal, one or more repurchase options, or other conditions
and restrictions as determined by the Board in its sole discretion at the time
the Option is granted. The Company shall have the right to assign at any time
any repurchase right it may have, whether or not such right is then exercisable,
to one or more persons as may be selected by the Company. Upon request by the
Company, each Optionee shall execute any agreement evidencing such transfer
restrictions prior to the receipt of shares of Stock hereunder and shall
promptly present to the Company any and all certificates representing shares of
Stock acquired hereunder for the placement on such certificates of appropriate
legends evidencing any such transfer restrictions.

                                       8
<PAGE>

          6.6  Effect of Termination of Service.

               (a)  Option Exercisability. Subject to earlier termination of the
Option as otherwise provided herein, an Option shall be exercisable after an
Optionee's termination of Service as follows:

                    (i)    Disability. If the Optionee's Service with the
Participating Company Group is terminated because of the Disability of the
Optionee, the Option, to the extent unexercised and exercisable on the date on
which the Optionee's Service terminated, may be exercised by the Optionee (or
the Optionee's guardian or legal representative) at any time prior to the
expiration of six (6) months (or such longer period of time as determined by the
Board, in its sole discretion) after the date on which the Optionee's Service
terminated, but in any event no later than the date of expiration of the
Option's term as set forth in the Option Agreement evidencing such Option (the
"Option Expiration Date").

                    (ii)   Death. If the Optionee's Service with the
Participating Company Group is terminated because of the death of the Optionee,
the Option, to the extent unexercised and exercisable on the date on which the
Optionee's Service terminated, may be exercised by the Optionee's legal
representative or other person who acquired the right to exercise the Option by
reason of the Optionee's death at any time prior to the expiration of six (6)
months (or such longer period of time as determined by the Board, in its sole
discretion) after the date on which the Optionee's Service terminated, but in
any event no later than the Option Expiration Date. The Optionee's Service shall
be deemed to have terminated on account of death if the Optionee dies within
thirty (30) days after the Optionee's termination of Service (other than upon
termination for "Cause", as defined below).

                    (iii)  Other Termination of Service. If the Optionee's
Service with the Participating Company Group terminates for any reason, except
Disability or death, the Option, to the extent unexercised and exercisable by
the Optionee on the date on which the Optionee's Service terminated, may be
exercised by the Optionee within thirty (30) days (or such longer period of time
as determined by the Board, in its sole discretion) after the date on which the
Optionee's Service terminated, but in any event no later than the Option
Expiration Date.

               (b)  Extension if Exercise Prevented by Law. Notwithstanding the
foregoing, if the exercise of an Option within the applicable time periods set
forth in Section 6.6(a) is prevented by the provisions of Section 11 below, the
Option shall remain exercisable until three (3) months after the date the
Optionee is notified by the Company that the Option is exercisable, but in any
event no later than the Option Expiration Date.

               (c)  Extension if Optionee Subject to Section 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods set
forth in Section 6.6(a) of shares acquired upon the exercise of the Option would
subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option
shall remain exercisable until the earliest to occur of (i) the tenth (10th) day
following the date on which a sale of such shares by the Optionee would no
longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day
after the Optionee's termination of Service, or (iii) the Option Expiration
Date.

               (d)  Termination for Cause. Notwithstanding any other provision
of the Plan to the contrary, if the Optionee's Service with the Participating
Company Group is terminated for Cause as defined below, the Option shall
terminate and cease to be exercisable immediately upon such termination of

                                       9
<PAGE>

Service. For purposes of this Section 6.6(d), "Cause" shall mean any of the
following: (1) the Optionee's theft, dishonesty, or falsification of any
Participating Company documents or records; (2) the Optionee's improper use or
disclosure of a Participating Company's confidential or proprietary information;
(3) any action by the Optionee which has a detrimental effect on a Participating
Company's reputation or business; (4) the Optionee's failure or inability to
perform any reasonable assigned duties after written notice from the
Participating Company Group of, and a reasonable opportunity to cure, such
failure or inability; (5) any material breach by the Optionee of any employment
agreement between the Optionee and the Participating Company Group, which breach
is not cured pursuant to the terms of such agreement; or (6) the Optionee's
conviction (including any plea of guilty or nolo contendere) of any criminal act
which impairs the Optionee's ability to perform his or her duties with the
Participating Company Group.

     7.   Standard Forms of Option Agreement.
          ----------------------------------

          7.1  Incentive Stock Options. Unless otherwise provided by the Board
at the time the Option is granted, an Option designated as an "Incentive Stock
Option" shall comply with and be subject to the terms and conditions set forth
in the form of Incentive Stock Option Agreement adopted by the Board
concurrently with its adoption of the Plan and as amended from time to time.

          7.2  Nonstatutory Stock Options. Unless otherwise provided by the
Board at the time the Option is granted, an Option designated as a "Nonstatutory
Stock Option" shall comply with and be subject to the terms and conditions set
forth in the form of Nonstatutory Stock Option Agreement adopted by the Board
concurrently with its adoption of the Plan and as amended from time to time.

          7.3  Authority to Vary Terms. The Board shall have the authority from
time to time to vary the terms of any of the standard forms of Option Agreement
described in this Section 7 either in connection with the grant or amendment of
an individual Option or in connection with the authorization of a new standard
form or forms; provided, however, that the terms and conditions of any such new,
revised or amended standard form or forms of Option Agreement shall be in
accordance with the terms of the Plan.

     8.   Change in Control.
          -----------------

          8.1  Definitions.

               (a)  An "Ownership Change Event" shall be deemed to have occurred
if any of the following occurs with respect to the Company:

                    (i)    the direct or indirect sale or exchange in a single
or series of related transactions by the shareholders of the Company of more
than fifty percent (50%) of the voting stock of the Company;

                    (ii)   a merger or consolidation in which the Company is a
party;

                    (iii)  the sale, exchange, or transfer of all or
substantially all of the assets of the Company; or

                    (iv)   a liquidation or dissolution of the Company.

                                       10
<PAGE>

               (b)  A "Change in Control" shall mean an Ownership Change Event
or a series of related Ownership Change Events (collectively, the "Transaction")
wherein the shareholders of the Company immediately before the Transaction do
not retain immediately after the Transaction, in substantially the same
proportions as their ownership of shares of the Company's voting stock
immediately before the Transaction, direct or indirect beneficial ownership of
more than fifty percent (50%) of the total combined voting power of the
outstanding voting stock of the Company or the corporation or corporations to
which the assets of the Company were transferred (the "Transferee
Corporation(s)"), as the case may be. For purposes of the preceding sentence,
indirect beneficial ownership shall include, without limitation, an interest
resulting from ownership of the voting stock of one or more corporations which,
as a result of the Transaction, own the Company or the Transferee
Corporation(s), as the case may be, either directly or through one or more
subsidiary corporations. The Board shall have the right to determine whether
multiple sales or exchanges of the voting stock of the Company or multiple
Ownership Change Events are related, and its determination shall be final,
binding and conclusive.

          8.2  Effect of Change in Control on Options. In the event of a Change
in Control, the surviving, continuing, successor, or purchasing corporation or
parent corporation thereof, as the case may be (the "Acquiring Corporation"),
may either assume the Company's rights and obligations under outstanding Options
or substitute for outstanding Options substantially equivalent options for the
Acquiring Corporation's stock. For purposes of this Section 8.2, an Option shall
be deemed assumed if, following the Change in Control, the Option confers the
right to purchase in accordance with its terms and conditions, for each share of
Stock subject to the Option immediately prior to the Change in Control, the
consideration (whether stock, cash or other securities or property) to which a
holder of a share of Stock on the effective date of the Change in Control was
entitled. Any Options which are neither assumed or substituted for by the
Acquiring Corporation in connection with the Change in Control nor exercised as
of the date of the Change in Control shall terminate and cease to be outstanding
effective as of the date of the Change in Control. Notwithstanding the
foregoing, shares acquired upon exercise of an Option prior to the Change in
Control and any consideration received pursuant to the Change in Control with
respect to such shares shall continue to be subject to all applicable provisions
of the Option Agreement evidencing such Option except as otherwise provided in
such Option Agreement. Furthermore, notwithstanding the foregoing, if the
corporation the stock of which is subject to the outstanding Options immediately
prior to an Ownership Change Event described in Section 8.1(a)(i) constituting a
Change in Control is the surviving or continuing corporation and immediately
after such Ownership Change Event less than fifty percent (50%) of the total
combined voting power of its voting stock is held by another corporation or by
other corporations that are members of an affiliated group within the meaning of
Section 1504(a) of the Code without regard to the provisions of Section 1504(b)
of the Code, the outstanding Options shall not terminate unless the Board
otherwise provides in its sole discretion.

     9.   Provision of Information.
          ------------------------

          At least annually, copies of the Company's balance sheet and income
statement for the just completed fiscal year shall be made available to each
Optionee and purchaser of shares of Stock upon the exercise of an Option. The
Company shall not be required to provide such information to persons whose
duties in connection with the Company assure them access to equivalent
information.

                                       11
<PAGE>

     10.  Nontransferability of Options.
          -----------------------------

     During the lifetime of the Optionee, an Option shall be exercisable only by
the Optionee or the Optionee's guardian or legal representative.  No Option
shall be assignable or transferable by the Optionee, except by will or by the
laws of descent and distribution.

     11.  Compliance with Securities Law.
          ------------------------------

     The grant of Options and the issuance of shares of Stock upon exercise of
Options shall be subject to compliance with all applicable requirements of
federal, state and foreign law with respect to such securities.  Options may not
be exercised if the issuance of shares of Stock upon exercise would constitute a
violation of any applicable federal, state or foreign securities laws or other
law or regulations or the requirements of any stock exchange or market system
upon which the Stock may then be listed.  In addition, no Option may be
exercised unless (a) a registration statement under the Securities Act shall at
the time of exercise of the Option be in effect with respect to the shares
issuable upon exercise of the Option or (b) in the opinion of legal counsel to
the Company, the shares issuable upon exercise of the Option may be issued in
accordance with the terms of an applicable exemption from the registration
requirements of the Securities Act.  The inability of the Company to obtain from
any regulatory body having jurisdiction the authority, if any, deemed by the
Company's legal counsel to be necessary to the lawful issuance and sale of any
shares hereunder shall relieve the Company of any liability in respect of the
failure to issue or sell such shares as to which such requisite authority shall
not have been obtained.  As a condition to the exercise of any Option, the
Company may require the Optionee to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or
regulation and to make any representation or warranty with respect thereto as
may be requested by the Company.

     12.  Indemnification.
          ---------------

     In addition to such other rights of indemnification as they may have as
members of the Board or officers or employees of the Participating Company
Group, members of the Board and any officers or employees of the Participating
Company Group to whom authority to act for the Board or the Company is delegated
shall be indemnified by the Company against all reasonable expenses, including
attorneys' fees, actually and necessarily incurred in connection with the
defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan, or any right
granted hereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding, except in relation to matters as to which it shall be
adjudged in such action, suit or proceeding that such person is liable for gross
negligence, bad faith or intentional misconduct in duties; provided, however,
that within sixty (60) days after the institution of such action, suit or
proceeding, such person shall offer to the Company, in writing, the opportunity
at its own expense to handle and defend the same.

     13.  Termination or Amendment of Plan.
          --------------------------------

     The Board may terminate or amend the Plan at any time.  However, subject to
changes in applicable law, regulations or rules that would permit otherwise,
without the approval of the Company's shareholders, there shall be (a) no
increase in the maximum aggregate number of shares of Stock that may be issued
under the Plan (except by operation of the provisions of Section 4.2), (b) no
change in the class of persons eligible

                                       12
<PAGE>

to receive Incentive Stock Options, and (c) no other amendment of the Plan that
would require approval of the Company's shareholders under any applicable law,
regulation or rule. In any event, no termination or amendment of the Plan may
adversely affect any then outstanding Option or any unexercised portion thereof,
without the consent of the Optionee, unless such termination or amendment is
required to enable an Option designated as an Incentive Stock Option to qualify
as an Incentive Stock Option or is necessary to comply with any applicable law,
regulation or rule.

     14.  Shareholder Approval.
          --------------------

     The Plan or any increase in the maximum number of shares of Stock issuable
thereunder as provided in Section 4.1 (the "Maximum Shares") shall be approved
by the shareholders of the Company within twelve (12) months of the date of
adoption thereof by the Board.  Options granted prior to shareholder approval of
the Plan or in excess of the Maximum Shares previously approved by the
shareholders shall become exercisable no earlier than the date of shareholder
approval of the Plan or such increase in the Maximum Shares, as the case may be.

                                       13

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