Document:

Exhibit 10.13

Exhibit 10.13

 

                                               SHARE
PURCHASE AGREEMENT

 

THIS
AGREEMENT made this 26th day of November, 2002.

B E T W E E N:

                        RICHARD
MacARTHUR and JOHN WHITTAKER,

hereinafter
called the "Purchasers",

                                                                                                                       OF
THE FIRST PART;

- and -

ARS
NETWORKS, INCORPORATED, a corporation incorporated under the laws of the
State of New Hampshire,

hereinafter
called the "Vendor",

                                                                                                                  OF
THE SECOND PART;

- and -

T & T
DIESEL POWER LIMITED, a corporation incorporated under the laws of the
Province of Ontario,

hereinafter
called the "Corporation",

                                                                                                                      OF
THE THIRD PART;

- and -

SYDNEY
HARLAND, of the Town of Oakville, in the Regional Municipality of Halton,

hereinafter
called "Sydney",

                                                                                                                  OF
THE FOURTH PART.

THIS
AGREEMENT WITNESSETH as follows:

WHEREAS the
Vendor is the registered and beneficial owner of all of the issued and
outstanding shares in the capital stock of the Corporation as follows:

CLASS A COMMON                         CLASS
B COMMON

ARS Networks, Incorporated               100                                                      100

AND WHEREAS
the Vendor wishes to sell to the Purchasers and the Purchasers wishes to
purchase from the Vendor certain of the aforesaid shares in the capital of the
Corporation which are owned by the Vendor, upon and subject to the terms and
conditions hereinafter set forth.

NOW THEREFORE
in consideration of the premises and the mutual agreements and covenants
herein contained (the adequacy of which consideration for each of the parties
hereto is mutually admitted), the parties hereto covenant and agree as follows:

                                                                 ARTICLE
1.00

                                                DEFINITIONS
AND SCHEDULES 

 1.01                 Definitions
-  Whenever used in this Agreement, unless there is something in the subject
matter or context inconsistent therewith, the following words and terms shall
have the respective meanings ascribed to them as follows:

(a)    "Agreement" means this Share Purchase Agreement and instruments
supplemental hereto or in amendment or confirmation hereof; "hereof",
"hereto"  and "hereunder" and similar
expressions mean and refer to this Agreement and not to any particular article
or section; "Article" or "Section" means and
refers to the specified article or section of this Agreement.

(b)    "Closing" means the completion of the sale and purchase
of the Purchased Shares hereinafter referred to by the transfer and delivery of
the certificates therefor and the payment of the Purchase Price as contemplated
herein at the offices of the Purchasers' solicitors, McBride, Wallace, Laurent
& Cord, Barristers & Solicitors, 5464 Dundas Street West, 2nd
Floor, Toronto, Ontario M9B 1B4.

(c)     "Closing Date"  means the 8th day of
January, 2003 or such other date as the parties may agree as the date upon
which the Closing shall take place;

(d)      "Effective Date" means the 31st day of October, 2002;

(e)       "Purchase Price" shall have the meaning ascribed
thereto in Article 2.01 hereof.

(f)       "Purchased Shares"  means the 100 Class A Common Shares
and the 100 Class B Common Shares owned by the Vendor.

(g)      "Time of Closing"  means 2:00 p.m. on the Closing Date or such
other time on the Closing Date as the parties may agree upon.      

1.02                 Schedules
- The schedules to this Agreement as listed below are an integral part of
this Agreement.

SCHEDULE "A"       -           Promissory Note

SCHEDULE "B"       -           Escrow Agreement 

SCHEDULE "C"       -           Non-Competition/Non-Solicitation
and Confidentiality Agreement

                                                                 ARTICLE
2.00

                     PURCHASE
AND SALE AND PAYMENT OF PURCHASE PRICE

2.01                 Purchase
and Sale -Subject  to the terms and conditions hereof, the Vendor
agrees to sell, assign and transfer to the Purchasers and the Purchasers agree
to purchase from the Vendor as of the Effective Date the Purchased Shares,
being all but not less than all of the issued and outstanding shares in the
capital stock of the Corporation, for the Purchase Price of One Hundred
Thousand ($100,000.00) Dollars Canadian.

2.02                 Payment
of Purchase Price - The  Purchase Price for the Purchased Shares shall
be allocated and  payable as follows:

(a)   The sum of Fifty-Three Thousand ($53,000.00) Dollars, by way of cash or
certified cheque upon Closing, to the Vendor, or as the Vendor may otherwise
direct; 

(b)   The balance of the Purchase Price of Forty-Seven Thousand ($47,000.00)
shall be payable six (6) months following the Closing Date by certified cheque
and shall be secured by a non-interest bearing Promissory Note delivered to the
Vendor in the form as set out in Schedule "A" attached hereto.

2.03                 The
Purchased Shares shall be held in escrow until the Promissory Note referred to
above has been paid in full, such escrow to be in accordance with the terms and
provisions of the Escrow Agreement attached hereto as Schedule "B".

                                                                 ARTICLE
3.00

                       REPRESENTATIONS
AND WARRANTIES OF THE VENDOR

3.01                 The
Vendor represents and warrants to the Purchasers and acknowledges that the
Purchasers are relying on such representations and warranties in entering into
this Agreement as follows:

(a)     the
Vendor is now and will at the Time of Closing be the sole legal and beneficial
owner of the Purchased Shares registered in its name with good and marketable
title thereto, free and clear of all mortgages, liens, charges, security
interests, adverse claims, pledges, encumbrances, options or rights of others
or demands whatsoever;

 

(b)     the
Vendor now has and will at the Time of Closing have the exclusive right to
dispose of the Purchased Shares registered in its name hereunder and the
disposition of such Purchased Shares will not violate, contravene, breach or
offend against or result in any default under any indenture, agreement or other
instrument, or any statute, regulation, order, judgment, decree or law to which
the Vendor is a party or subject or by which the Vendor is bound;

(c)     the
Vendor is a  non-resident of Canada for the purposes of Section 116 of the
Income Tax Act (Canada);

(d)     to
the best of the knowledge and belief of the Vendor, the books and records,
financial and otherwise, of the Corporation fairly and correctly set out and
disclose in all material respects the financial position of the Corporation as
of the date hereof and all financial transactions between the Vendor and the
Corporation have to the best of the knowledge of the Vendor, been accurately
recorded in such books and records;

(e)     this
Agreement constitutes a valid and binding agreement enforceable against the
Vendor  in accordance with the terms hereof;

(f)     
the Vendor is not aware of any suit, litigation, arbitration proceeding,
application for review, in progress, pending or, threatened against or relating
to the Corporation or its respective properties and assets which has not been
fully disclosed to the Corporation.  The Vendor is not aware of any grounds on
which any such action, suit or proceeding might be commenced with any
reasonable likelihood of success; 

(g)     there
are no undisclosed facts of a materially adverse nature known to the Vendor
with respect to the Corporation which would, if known to the Purchasers, have a
material effect on the Purchase Price or cause the Purchasers, acting
reasonably, not to complete the within purchase transaction;

(h)      the
corporate records and minute book of the Corporation contain complete and
accurate minutes of all meetings of the directors and shareholders of the
Corporation held since the incorporation of the Corporation, all such meetings
were duly called and held, the share certificates, registers of shareholders,
registers of transfers, and register of directors of the Corporation are
complete and accurate and all exigible security transfer tax payable in
connection with the transfer of any securities of the Corporation has been duly
paid;

(i)      the Corporation has duly and timely filed all tax returns required to be
filed by it from and after August 1, 2000 to the fiscal year ended January 31,
2002,  and has paid all taxes which are due and payable, and has paid all
assessments and reassessments, and all other taxes, governmental charges,
penalties, interest, and fines due and payable by it with respect to all tax
returns which have been filed by it between August 1, 2000 and the fiscal year
ended January 31, 2002; the Canadian federal income tax liability of the
Corporation has been reviewed and determined by Canada Customs and Revenue
Agency ("CCRA")  for all fiscal years, including the fiscal year ended January
31, 2002.

                                                                 ARTICLE
4.00

                         COVENANTS
OF THE VENDOR AND SYDNEY HARLAND

The Vendor
covenants and agrees with the Purchasers that on or before the Closing Date, it
will do or cause to be done the following:

4.01     Permit the
Purchasers through their representatives,/ to make such investigations of the
properties and assets of the Corporation and of its financial and legal
condition as the Purchasers deem necessary or advisable; such investigation
shall not however affect or mitigate the Vendor's covenants, representations
and warranties hereunder, which shall continue in full force and effect as
provided in Article 3.00.  The Vendor agrees to provide any and all of the
following documentation, as may be required, and to permit the Purchasers full
access to the premises of the Corporation where the business is carried on for
such purpose:

(a)    full
disclosure of all contracts, agreements or arrangements into which the
Corporation has entered;

(b)   full
and complete information relating to the ownership and/or leasehold use of
chattels, machinery and equipment used in connection with the business,
including any warranties and/or guarantees relating thereto and the opportunity
to physical inspect all of the foregoing;

(c)   all
other licences, contracts, insurance policies, books, records, accounts,
financial  statements, income tax returns and CCRA and Ministry of Finance
assessment notices and all other data which in the opinion of the Purchasers
and their representative are required to make an examination of the business of
the Corporation;

(d)   full
and complete access to all premises upon which the business is carried on by
the Corporation for the purpose of inspecting the state, extent and repair of
the Corporation's assets and inventory;

4.02     Deliver
to the Purchasers at the Time of Closing, a Statutory Declaration of Sydney
Harland as Chief Executive Officer of the Corporation, that:

(a)   the
authorized capital of the Corporation consists of an unlimited number of Class
A Common Shares and an unlimited number of Class B Common Shares of which 100
Class A Shares and 100 Class B Shares have been duly issued and are outstanding
as fully paid and non-assessable.  The Purchased Shares represent all of the
issued and outstanding shares in the capital of the Corporation;

(b)   all
necessary corporate action and proceedings have been taken to permit the due
and valid transfer of the Purchased Shares at the Time of Closing from the
Vendor to the Purchasers;

(c)   to
the best of his knowledge and belief, completion of the transaction of purchase
and sale contemplated by this Agreement will not result in a breach of any term
or provision of or constitute a default under the constating documents, by-laws
or resolutions of the Corporation, or to the best of his knowledge and belief,
any indenture, agreement, instrument, licence, permit or understanding to which
the Corporation is a party, or by which it is bound, or to the best of his
knowledge and belief will the completion of such transaction accelerate any
commitment or obligation of the Corporation or result in the creation of any
lien or encumbrance upon any of the assets or property of the Corporation;

(d)  the
Corporation does not have outstanding any option, convertible securities,
warrants or other convertible obligations, agreements or other commitments to
allot, reserve, set aside, create, issue or sell any securities or any of the
unissued share capital of the Corporation, except as set out in this Agreement;

(e)   the
Corporation is not engaged in and to the best of counsel's knowledge has not
been threatened with any legal action or other proceedings and has not been
charged with or to the best of the knowledge of such counsel incurred any
violation of any federal, provincial or local law or administrative regulation
which could materially adversely affect or impair its financial position,
business operation, prospects, properties or assets;

(f)    no consent, authorization, licence, franchise, permit, approval or order
of any court or governmental agency or regulatory bodies required for the
acquisition of the Purchased Shares by the Corporation.

(g)   To
the best of his knowledge and belief there are no liens or encumbrances or
other security interest against any of the assets, chattels, fixtures,
equipment or inventory of the Corporation other than has been disclosed in the
financial statements of the Corporation for the period ending January 31, 2002
and without limiting the generality of the foregoing, including the security
interest of BODKIN CAPITAL CORPORATION registered as instrument 20011219 1037
1616 4209 under the Personal Property Security Registration System securing
inter alia the photocopy machine

4.03    Cause
the directors and officers of the Corporation to resign at the Time of Closing
in favour of nominees of the Purchasers and providing to the Purchasers and the
Corporation at the Time of Closing full and complete releases and discharges by
each officer, director and shareholder of any and all claims that each of them
may have up to and including the Closing Date, excepting any claims arising out
of this Agreement.

4.04    Cause
the Corporation to duly and timely file all tax returns required to be filed by
it up to but not including the Effective Date and to promptly pay all taxes,
assessments and government charges which are claimed by any governmental
authority to be due and owing; cause the Corporation not to enter into any
agreements, waivers or other arrangements providing for an extension of time
with respect to the filing of any income tax return or the payment or assessment
of any tax, governmental charge or deficiency;

4.05    Cause
the Corporation not to make any changes in its banking arrangements without the
prior written consent of the Purchasers;

4.06    To
do such other things and execute such other documents as may be reasonably
required by the Purchasers in connection with the completion of this
transaction of purchase and sale.

4.07    Comply
in all respects with any and all of its further covenants and obligations
contained in this Agreement or arising out of the Agreement after Closing.

4.08    To
be responsible for its own legal and other professional fees associated with
the transaction, except for the cost of negotiating, drafting and preparing the
Agreement of Purchase and Sale, which costs shall be shared equally by the
Purchasers and the Vendor.  The parties acknowledge that the costs to be shared
equally shall include the fees of both the Vendor's solicitor and the
Purchaser's solicitor as they relate to the negotiation, drafting and
preparation of the Agreement of Purchase and Sale.

4.09    The
Vendor shall execute on behalf of the Corporation, a demand promissory note in
the amount of any funds advanced by the Purchasers to the Corporation for the
purpose of providing interim financing to ensure continued operation of the
Corporation prior to the Closing Date, which Promissory Note shall be forgiven
by the Purchasers upon successful completion of the transaction.

4.10    The
Vendors shall not remove, transfer or otherwise deal with any equipment,
machinery, fixtures or chattels of any type or form belonging to the
Corporation and found on the premises of the Corporation prior to the Closing
Date, except for the following items:-

four (4) desks
wood veneer with returns (Syd's, Mark's, Ron's, Spare)

            four (4) chairs

            photocopy
machine

            computer
equipment

            two (2) file
cabinets (black)

All located at
the office premises of the Vendor, being Unit 21

4.11    To
cause the Corporation to execute and to deliver to the Purchasers at the Time
of Closing, a Non-Competition/Non-Solicitation Confidentiality Agreement in the
form of the unexecuted agreement annexed hereto as Schedule "C".

4.12    The
Vendor covenants to obtain and produce upon Closing a full and final release
from Mr. R. Husczo relating to any and all monies owed to him by the
Corporation to the Closing Date.

4.13    The
Vendor shall produce upon Closing a full and final release relating to any and
all monies owing to it by the Corporation for management fees or otherwise.

4.14    To
discharge all liens and encumbrances and other security interests, if any,
against the assets of the Corporation and without limiting the generality of
the foregoing including the Security Interest of BODKIN CAPITAL CORPORATION
registered under the Personal Property Security Registration System as Registration
20011219 1037 1616 4209; Provided that should the Vendor be unable to obtain
any such discharge on or before the due date of the Promissory Note given by
the Purchasers to the Vendor on Closing then the Purchasers shall have the
right of set off against the Promissory Note for the full amount of any
liability of the Corporation for which any such lien, encumbrance or security
interest has been given.

4.15    To
obtain and produce upon Closing a Clearance Certificate from the CCRA with
respect to any tax liability or potential tax liability of the Vendor arising
out of its status as a non-resident and the sale of the Purchased Shares;
Provided that if such Clearance Certificate is not produced on or before the
due date of the Promissory Note given by the Purchasers at Closing then
Purchasers shall be entitled to withhold payment under the Promissory Note
until the Clearance Certificate is produced.

                                                                 ARTICLE
5.00

                   REPRESENTATIONS
AND WARRANTIES OF THE PURCHASERS

5.01    The Purchasers
are not non-Canadian persons as defined in the Investment Canada Act.

5.02    This
Agreement has been duly executed and delivered by the Purchasers and is a valid
and binding obligation to the Purchasers enforceable in accordance with its
terms.

                                                                 ARTICLE
6.00

                                             COVENANTS
OF THE PURCHASERS

 

The Purchasers
covenant and agree with the Vendor that they will do or cause to be done the
following:

6.01    Deliver
the Purchase Price to the Vendor at the Time of Closing in accordance with the
provisions of Article 2.02, subject to adjustments and holdbacks as the parties
may agree upon;

6.02    Comply
in all respects with any and all of its further covenants and obligations
contained in this Agreement or arising out of the Agreement after Closing and
without limiting the generality of the foregoing including compliance with the
terms, provisions and procedures set out in Article 2.02.

6.03    To
cause the Corporation, subsequent to Closing, to prepare and file in a timely
manner, the income tax returns for the fiscal period ending on the Effective
Date of October 31, 2002 and to cause the Corporation to pay the income tax due
upon such filing.

6.04     To
be responsible for its own legal and other professional fees associated with
the transaction, except for the cost of negotiating, drafting and preparing the
Agreement of Purchase and Sale, which costs shall be shared equally by the
Purchasers and the Vendor.  The parties acknowledge that the costs to be shared
equally shall include the fees of both the Vendor's solicitor and the
Purchaser's solicitor as they relate to the negotiation, drafting and
preparation of the Agreement of Purchase and Sale.

6.05     To
pay for and on behalf of the Corporation at the Time of Closing by certified
cheque or bank draft the sum of Fifteen Thousand ($15,000.00) Dollars to R.
Husczo as full and final satisfaction of monies loaned to the Corporation by R.
Husczo and to further pay at the time of Closing the sum or Seven Thousand
($7,000.00) to the Vendor in full and final satisfaction of outstanding
management fees owing by the Corporation to the Vendor to the Closing Date.

6.06     To execute and deliver to the Corporation, its directors and
officers at the Time of Closing a full release of any claims which the
Purchasers or either of them may have against the Corporation, such directors
and officers for unpaid bonuses, wages or damages as a result of the
termination of their employment with the Corporation.

6.07    To
execute and deliver to the Vendor at the Time of Closing a Promissory Note in
the form attached hereto as Schedule "A".

 

                                                                 ARTICLE
7.00

             SURVIVAL
OF COVENANTS, REPRESENTATIONS AND WARRANTIES

7.01    The covenants, representations
and warranties of the Vendor contained in this Agreement or  in any document or
certificate given pursuant hereto relating to the tax liability of the
Corporation shall survive the Closing and, notwithstanding the Closing, nor any
investigation made by or on behalf of the Purchasers, shall continue in full
force and effect for the benefit of the Purchasers indefinitely.

7.02    The covenants, representations
and warranties of the Vendor contained in this Agreement or  in any document or
certificate given pursuant hereto relating to any matters other than the tax
liabilities of the Corporation shall survive the Closing and, notwithstanding
the Closing, nor any investigation made by or on behalf of the Purchasers,
shall continue in full force and effect for the benefit of the Purchasers for a
period of two (2) years immediately following the Closing Date.

7.03     The covenants, representations
and warranties of the Purchasers contained in this Agreement and contained in
any document or certificate given pursuant hereto shall survive the Closing of
the purchase and sale of the Purchased Shares herein provided for and,
notwithstanding such Closing, nor any investigation made by or on behalf of the
Vendor, shall continue in full force and effect for the benefit of the Vendor
for a period of two (2) years immediately following the Closing Date.

ARTICLE
8.00

PURCHASERS'
CONDITIONS OF CLOSING

8.01    The purchase by the Purchasers of the Purchased Shares
herein provided for is subject to the following terms and conditions for the
exclusive benefit of the Purchasers to be fulfilled and/or performed at or
prior to the Time of Closing;

(a)    The
representation and warranties of the Vendor contained in Article 3.00 hereof
shall be true and correct as of the date hereof and each and every one of such
representations and warranties is deemed to be a condition;

(b)   The
Vendor shall have complied with all covenants and agreements herein agreed to
be performed or caused to be performed by it;

(c)   The
covenants, representations and warranties of the Vendor contained in this
Agreement, or in any Schedule hereto, or in any certificate or other document
delivered to the Purchasers pursuant hereto shall be true and correct on and as
of the Closing Date with the same force and effect as though such covenants,
representations and warranties had been made on and as of such date (and
subject only to such changes as are contemplated in this Agreement), and the
Purchasers shall have received at the Time of Closing on the Closing Date a
certificate dated the Closing Date, in form satisfactory to counsel for the
Purchasers acting reasonably, signed under seal by the Vendor, to the effect
that such covenants, representations and warranties referred to above are true
and correct on and as of the Closing Date with the same force and effect as
though  made on and as of such date; provided that the acceptance of such
certificate and the Closing of the transaction herein provided for shall not be
a waiver of the covenants, representations and warranties contained in Article
3.00 or Article 4.00 or in any Schedule hereto or in any certificate or
document given pursuant to this Agreement or in the certificate under this
clause 8.01 (c)  which covenants, representations and warranties shall continue
in full force and effect as provided in Article 7.00 hereof;

 

 

(d)   At
the Closing Date the Purchasers shall be satisfied in its sole discretion that
any objection, issue or matter raised as a result of the due diligence
performed by it and on its behalf by its professional advisors pursuant to
Article 4.01 have been adequately dealt with;

(e)   No
substantial damage by fire or other hazard to the physical assets of the  Corporation
shall have occurred prior to the Time of Closing;

(f)   
All required consents, approvals, orders and authorizations of any
person including lenders and governmental and regulatory authorities and bodies
and licensors, if necessary, shall have been obtained;

(g)  
Execution and delivery by the Vendor and by any director, officer or key
employee of the Corporation of a full and final release of claims against the
Corporation up to and including the Closing Date except for claims arising out
of this Agreement;

(h)  
Execution and delivery by the Vendor and Sydney to the Purchasers at the
Time of Closing of a Non-Competition/Non-Solicitation Confidentiality Agreement
in the form of the unexecuted agreement annexed hereto as Schedule "C".

8.02     In
case any one or more of the foregoing conditions shall not have been fulfilled
and/or performed to the satisfaction of the Purchasers on or before the Closing
Date,  the Purchasers may rescind this Agreement by delivering written notice
to the Vendor and in such event the Purchasers shall be released from all
obligations hereunder and unless the Purchasers can show that the condition or
conditions for the non-performance of which the Purchasers have rescinded such
Agreement are reasonably capable of being performed or caused to be performed
by the Vendor, then the Vendor shall also be released from all obligations
hereunder; provided that any of the said conditions  may be waived in whole or
in part by the Purchasers without prejudice to its rights of rescission in the
event of the non-fulfilment of any other condition or conditions, any such
waiver to be binding upon the Purchasers only if it is in writing.

ARTICLE 9.00

VENDORS CONDITIONS
OF CLOSING

9.01     The sale by the Vendors of the Purchased Shares herein provided for
is subject to the following terms and conditions for the exclusive benefit of
the Vendors to be fulfilled and/or performed at or prior to the Time of
Closing;

(a) 
The representation and warranties of the
Purchaser contained in Article 5.00 hereof shall be true and correct as of the
date hereof and each and every one of such representations and warranties is
deemed to be a condition;

(b)
The Purchasers shall have complied with all
covenants and agreements herein agreed to be performed or caused to be
performed by it;

(c)  The
covenants, representations and warranties of the Purchasers contained in this
Agreement, or in any Schedule hereto, or in any certificate or other document
delivered to the Vendor pursuant hereto shall be true and correct on and as of
the Closing Date with the same force and effect as though such covenants,
representations and warranties had been made on and as of such date (and
subject only to such changes as are contemplated in this Agreement), and the
Vendor shall have received at the Time of Closing on the Closing Date a
certificate dated the Closing Date, in form satisfactory to counsel for the
Vendor acting reasonably, signed under seal by the Purchasers, to the effect
that such covenants, representations and warranties referred to above are true and
correct on and as of the Closing Date with the same force and effect as though 
made on and as of such date; provided that the acceptance of such certificate
and the Closing of the transaction herein provided for shall not be a waiver of
the covenants, representations and warranties contained in Article 5.00 or
Article 6.00 or in any Schedule hereto or in any certificate or document given
pursuant to this Agreement or in the certificate under this clause 9.01 (3) 
which covenants, representations and warranties shall continue in full force
and effect as provided in Article 7.00 hereof;

9.02     In case any one or more of the foregoing conditions shall not be
fulfilled and/or performed to the full satisfaction of the Vendor on or before
the Closing Date, the Vendor may rescind this Agreement by delivering written
notice to the Purchasers and in such event the Vendor shall be released from
all obligations hereunder and unless the Vendor can show that the condition for
the non-performance of which the Vendor has rescinded such agreement is
reasonably capable of being performed or caused to be performed by the
Purchasers, then the Purchasers shall also be released from all obligations
hereunder; provided that the said conditions may be waived in whole or in part by
the Vendor without prejudice to its rights of recision in the event of the
non-fulfillment of any other condition or conditions  any such waiver to be
binding upon the Vendor only if it is in writing.

ARTICLE 10.00

INDEMNIFICATION

10.01   The
Vendor covenants and agrees to indemnify and save harmless the Purchasers and
the Corporation of and from any loss whatsoever arising out of, under or
pursuant to:

(a)   all debts, liabilities, contracts or engagements whatsoever, existing at
the Closing Date save and except only those liabilities existing and disclosed
on the books of the Corporation as at the Effective Date or subsequently
incurred in the ordinary course of business;

(b)   all contingent liabilities which the Corporation  becomes obligated to
pay, and which existed as at the Closing Date and were not disclosed to the
Purchaser;

(c)    any reassessment for income or corporate tax, interest and/or penalties
for any period between August 1, 2000 and the fiscal year ending January 31,
2002, inclusive, for which no adequate reserve has been provided for and
disclosed in the Financial Statements of the Corporation for such period,
other than a reassessment disallowing an expense or a deduction claimed by the
Corporation in respect of which the Corporation subsequently will be entitled
to claim capital cost allowances pursuant to the regulations to the Income Tax
Act (Canada);

(d)   any loss suffered by the Purchasers or the Corporation as a result of
any breach of representation, warranty or non-performance or non-fulfilment of
any covenant contained in this Agreement;

(e)    all claims, demands, costs and expenses in respect of the foregoing.

10.02   It
is understood that the Vendor shall not be responsible to indemnify and save
harmless the Purchasers and the Corporation for any loss arising out of and
matter predating August 1, 2000 when the Vendor originally purchased the
Purchased Shares from the Purchaser.

10.03   The
Purchasers shall forthwith notify the Vendor of any debts, liabilities,
contracts, engagements or reassessments for which the Vendor may be liable
under Section 10.01 and the Vendor shall have the right to participate in any
negotiations with respect thereto.  If the Corporation receives an assessment
or reassessment in respect of which the indemnity of the Vendor hereunder may
extend or relate, the Purchasers shall cause the Corporation forthwith after
receipt thereof to deliver to the Vendor a copy of such assessment or
reassessment and the Purchasers shall notify the Vendors of its claim, if any,
against the Vendor under the within indemnity within fifteen (15) days after
receipt of such assessment or reassessment and shall take all action necessary
to preserve the Corporation's rights to object to the assessment or
reassessment.  Unless the Purchasers shall have complied with the provisions of
the immediately preceding sentence, the liability of the Vendor to indemnify it
or the Corporation with respect to such assessment or reassessment shall cease.

 

10.04   The
Vendor shall at all times have the right at their sole and only expense to
dispute and contest in the name of the Corporation any debts, liabilities,
contracts, engagements or reassessments for which the Vendor may be liable
under Section 10.01 provided, however, that with respect to any reassessment
for income, corporate, sales, excise or other tax, the Vendor's right to so
contest shall only apply after the payment of any such reassessment.  The
payment of any such reassessment by the Vendor on behalf of the Corporation
shall be repaid to the Vendor if repaid by the taxing authority.  The
Purchasers will fully cooperate and will cause the Corporation to fully
cooperate with the Vendor and their counsel in any proceedings with respect to
any such debts, liabilities, contracts, engagements or reassessments.

ARTICLE 11.00

CLOSING
ARRANGEMENTS

11.01   The
Closing shall take place at the Time of Closing on the Closing Date at the
offices of McBride, Wallace, Laurent & Cord and subject to all other terms
and conditions hereof being complied with, including the payment of the
Purchase Price. 

11.02   At
the Time of Closing on the Closing Date and upon fulfillment of all the
conditions set out in Article 8.00 which have not been waived in writing by the
Purchasers, and further upon of all the conditions set out in Article 9.00
which have not been waived in writing by the Vendor, the Vendor shall deliver
to the Purchasers certificates representing all the Purchased Shares duly
endorsed in blank for transfer and will cause the transfer of such shares to be
duly and regularly recorded in the name of the Purchasers and will cause all of
the directors and officer of the Corporation to resign in favour of the
Purchasers and its nominees whereupon, subject  to all other terms and
conditions hereof being complied with, payment of the Purchase Price shall be
paid and satisfied in the manner provided in Article 2.00.

ARTICLE 12.00

COMMISSIONS, ETC.

12.01   The
Vendor covenants and agree with the Purchasers to indemnify and save harmless
the Purchasers from and against any claims whatsoever for any commission or
other remuneration payable or alleged to be payable to any broker, agent or
other intermediary who has acted for the Vendor in connection with the sale of
the Purchased Shares.

 

ARTICLE 13.00

NOTICES

13.01   Any
notice, direction or other instrument required or permitted to be given to the
parties hereto shall be in writing and addressed to the party or parties and
may be given either by mailing the same postage prepaid; or by personal
delivery; or by facsimile transmission to the following numbers:

To the Vendor as follows:

c/o Mark Miziolek

            1384 Clearwater Crescent

            Oakville, Ontario

            L6H 7J7

Fax: (905) 339-1981

copy to:                                    Borges
Banasinski Rolle LLP

704-10 Kingsbridge Garden Circle

Mississauga, Ontario

L5R 3K6

Fax: (905) 502-3478 

to the Purchasers at:                  23 Armstrong
Avenue

Georgetown, Ontario

L7G 4S1

Fax: (905) 877-3995

copy to :                                   Paul R.
Laurent

McBride, Wallace, Laurent & Cord

5464 Dundas Street West, 2nd Floor,

Toronto, Ontario M9B 1B4

Fax: (416) 231-6630

Any notice, direction or other instrument required aforesaid if
delivered shall be deemed to have been given or made on the date on which it
was delivered if delivered personally or sent by facsimile transmission during
normal business hours or on the next business day if sent by facsimile
transmission on Saturday, Sunday or Statutory Holiday or if mailed shall be
deemed to have been given or made on the fourth (4th ) business day
following the day on which it was mailed.  If notice is sent by facsimile
transmission, a copy shall also be mailed forthwith.

The Purchasers or the Vendor may change its or their address for
service from time to time by notice given in accordance with the foregoing.

ARTICLE
14.00

TIME
OF THE ESSENCE

14.01   Time shall be of the essence of this Agreement.

ARTICLE
15.00

EXECUTION
IN COUNTERPARTS

15.01   This Agreement may be executed
in one or more counterparts, each of which so executed shall constitute an
original and all of which together shall constitute one and the same agreement.
Facsimile signatures will be accepted by all parties if they were original
signatures.

ARTICLE
16.00

ENTIRE
AGREEMENT

16.01   This Agreement, including the
Schedules hereto, constitutes the entire agreement between the parties hereto. 
There are not and shall not be any verbal statements, representations,
warranties, undertakings or agreements between the parties and this agreement
may not be amended or modified in any respect except by written instrument
signed by the parties hereto.

ARTICLE
17.00

PROPER
LAW OF CONTRACT

17.01   This Agreement shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the Province of Ontario.  Each of the parties
hereto hereby irrevocably attorns to the jurisdiction of the courts of the
Province of Ontario.

ARTICLE
18.00

BENEFIT
AND BINDING NATURE OF THE AGREEMENT

18.01   This Agreement shall enure to
the benefit of and be binding upon the parties hereto and their respective
heirs, legal personal representatives, successors and assigns but shall not be
assignable by either of the parties hereto prior to the Time of Closing without
the written consent of the other party hereto.

 

18.02   The Corporation has executed
this Agreement by its duly authorized officer in that regard to signify its
intentions to be bound by the terms, provisions and conditions of this
Agreement and to do all things as may be reasonably required to carry out the
intention of the parties hereto.

18.03   Sydney is executing this
Agreement to acknowledge and confirm his intention and covenant to execute the
Non Competition/Non Solicitation Agreement in the form of the unexecuted
agreement annexed hereto as Schedule "C" and to execute the Statutory
Declaration referred to in Paragraph 4.02 in his capacity as Chief Executive
Officer of the Corporation

IN WITNESS WHEREOF THIS AGREEMENT has been executed by the parties hereto.

SIGNED, SEALED AND DELIVERED     )           

in the presence of                                  )           

)                                                                      

)           Richard MacArthur

)

)           ______________________________

)           John Whittaker

)           

)           ARS NETWORKS, INCORPORATED

)           

)           

)           Per: ___________________________

)                       Name:

Title:

 

)           I have authority to bind the Corporation

)           

)           T & T DIESEL POWER LIMITED

)           

)           Per: __________________________

)                       Name:

 Title:

)                  I have authority to bind the
Corporation

)           

)

)           _______________________________

)                       Sydney Harland

 

SCHEDULE "A"

PROMISSORY NOTE

FOR VALUE
RECEIVED, the undersigned, RICHARD MacARTHUR and JOHN WHITTAKER, jointly and
severally, promise to pay to ARS NETWORKS INCORPORATED, six (6) months
following the Closing Date as set out in an
Agreement of Purchase and Sale dated the 26th day of November, 2002
(the "Share Purchase Agreement"), entered into between the undersigned, as
Purchasers, and ARS Networks Incorporated, as Vendor, the sum of FORTY-SEVEN
THOUSAND ($47,000.00) DOLLARS without interest. 

Failure to pay
in accordance with this Promissory Note shall constitute an Event of Default
for the purposes of the Escrow Agreement between the parties and dated the 26th
day of November, 2002.

Presentment,
protest, notice of protest and notice of dishonour are hereby waived.

Provided that
during the term of this Promissory Note, and the undersigned, not being in
default, the undersigned may pay from time to time the whole or any portion of
the principal sum then outstanding without notice or bonus.

DATED at
Etobicoke  this  10th day of  January,  2003

WITNESS:

____________________________________

                                                                        Richard
MacArthur

____________________________________

                                                                        John Whittaker

SCHEDULE
"B"

ESCROW AGREEMENT

MEMORANDUM OF AGREEMENT made as of the
10h day of January, 2003.

B E T W E E
N:

RICHARD MacARTHUR and JOHN WHITTAKER,

(hereinafter called the "Pledgor")

OF THE FIRST PART

- and -

ARS NETWORKS INCORPORATED, a corporation
incorporated under the laws of the State of New Hampshire,

(hereinafter called the "Pledgee")

OF THE SECOND PART

- and -

MCBRIDE WALLACE LAURENT & CORD LLP,
Solicitors, of the City of Etobicoke, in the Province of Ontario

(hereinafter called the "Escrow Agent")

OF THE THIRD PART

- and - 

T & T DIESEL POWER LIMITED, a
corporation incorporated under the laws of the Province of Ontario,

(hereinafter called or the "Corporation");

OF THE FOURTH PART

WHEREAS pursuant to a share purchase
agreement dated November 26, 2002 (the "Agreement"), the Pledgee
agreed to sell and the Pledgor agreed to purchase 100 Class A common and 100
Class B common shares  in the capital of the Corporation (the "Pledged
Shares"). 

AND WHEREAS the purchase price for the
Pledged Shares was satisfied in part by the Pledgor issuing a promissory note
(the "Note") in favour of the Pledgee;

 

AND WHEREAS as additional security for
the fulfilment of its obligations under the promissory note the Pledgor has
agreed to pledge the Pledged Shares to the Pledgee pursuant to the Agreement
and to deliver the share certificates for the Pledged Shares to the Escrow
Agent as escrow agent subject to the terms and conditions hereof and of the
Pledge Agreement;

NOW THEREFORE THIS AGREEMENT WITNESSETH
that in consideration of the premises and of the respective covenants and
agreements hereinafter contained and other good and valuable consideration (the
receipt and sufficiency of which is hereby acknowledged by the parties hereto),
the parties hereto covenant and agree with each other as follows:

1.                     The
Pledgor and the Pledgee hereby appoint the Escrow Agent, and the Escrow Agent
hereby agrees to act, as escrow agent in accordance with the terms and
conditions of this agreement.

2.                     The
certificates representing the Pledged Shares, duly endorsed in blank for
transfer, is hereby delivered to the Escrow Agent and shall be held and
retained by the Escrow Agent as agent for the Pledgee subject to the terms and
conditions hereof and the terms and conditions of this Agreement.

3.                     In
the event that an Event of Default (as defined in the Note) occurs, then upon
delivery by the Pledgee of written notice of such default to the Escrow Agent,
together with an affidavit setting forth particulars of the Pledgor's default
(a copy of which shall be sent concurrently to the Pledgor), the Escrow Agent
shall deliver the certificates representing the Pledged Shares to the Pledgee.

4.                     The
acceptance by the Escrow Agent of its duties and obligations under this
agreement is subject to the following terms and conditions, which the parties
to this agreement hereby agree shall govern and control with respect to its
rights, duties, liabilities and immunities:

(a)        the Escrow Agent shall not be responsible or
liable in any manner whatever for the sufficiency, correctness, genuineness or
validity of any security deposited with it;

(b)        the Escrow Agent shall be protected in
acting upon any written notice, request, waiver, consent, receipt, statutory
declaration or other paper or document furnished to it, and signed by the
Pledgee, not only as to its due execution and the validity and effectiveness of
its provisions but also as to the truth and acceptability of any information
therein contained, which it in good faith believes to be genuine and what it
purports to be.  The Pledgee agrees to indemnify and save harmless the Escrow
Agent from and against any and all liabilities and claims made against it in
respect of any action or thing it may take or do or omit to take or do in
connection herewith except as a result of its wilful neglect or default
hereunder.  This indemnity shall survive the termination of this agreement;

(c)        except for acts of gross negligence or
misconduct, the Escrow Agent shall not be liable for any act done or step taken
or omitted by it in good faith, or for any mistake of act or law;

(d)        the Escrow Agent may consult with and obtain
advice from legal counsel in the event of any question as to any of the
provisions hereof or its duties hereunder, and it shall incur no liability and
shall be fully protected in acting in good faith in accordance with the opinion
and instructions of such counsel.  The cost of such services shall be added to
and be a part of the Escrow Agent's fee hereunder.  The Pledgor shall pay all
fees and expenses of the Escrow Agent hereunder forthwith upon demand therefor;

(e)        the Escrow Agent shall have no duties except
those which are expressly set forth herein, and it shall not be bound by any
notice of claim or demand with respect thereto, or any waiver, modification,
amendment, termination or rescission of this agreement, unless received in
writing, and signed by the Pledgee and, if its duties herein are affected,
unless it shall have given its prior written consent thereto;  and

(f)         in the event of a dispute between the
parties with respect to the matters herein, the Escrow Agent may, at its
option, deposit all documents and certificates held by it hereunder with a
court of competent jurisdiction and seek direction from such court.

5.                     Upon
payment in full by the Pledgor of its obligations, liabilities, and
indebtedness under the Purchase Agreement, the Pledgee shall forthwith deliver
an acknowledgement to that effect to the Escrow Agent and thereafter the Escrow
Agent shall deliver to the Pledgor the certificate or certificates representing
the Pledged Shares or, in the case of a partial payment of the purchase price,
the pro rata amount of the Pledged Shares released from the pledge of the
Pledge Agreement in accordance with the terms thereof, duly endorsed in blank
for transfer and upon delivery of the last of the Pledged Shares the Escrow
Agent shall be released of all its obligations hereunder.  If the Pledgee fails
to deliver such acknowledgement as aforesaid, the Escrow Agent may deliver the
said certificates to the Pledgor upon receipt by it of evidence satisfactory to
it as to payment in full by the Pledgor of its obligations, liabilities and
indebtedness under Purchase Agreement.

6.                     This
agreement may be amended or cancelled by and upon written notice to the Escrow
Agent at any time given jointly by the Pledgee and the Pledgor, but the duties
or responsibilities of the Escrow Agent may not be released without its
consent.

7.                    
Any notices or other communications required or permitted hereunder shall be
sufficiently given if sent by registered mail, postage prepaid, if to the
Pledgee at 1384 Clearwater Crescent, Oakville, Ontario, L6H 7J7; if to the
Pledgor at 23 Armstrong Avenue, Georgetown, Ontario, L7G 4S1;  if to the
Escrow Agent at 5464 Dundas Street West, Toronto, Ontario M9B 1B4; or in any case
to such other address as shall be furnished in writing by any such party to all
of the other parties hereto.  Such notices or other communications so given
shall be deemed to have been given on the third business day after the date so
mailed or the day of delivery if delivered.

 

8.                     This
agreement shall enure to the benefit of and shall be binding upon the parties
hereto, their respective heirs, legal personal representatives, successors and
assigns.

9.                     This
agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable therein.  The parties
irrevocably attorn to the jurisdiction of the courts of the Province of
Ontario.

IN WITNESS WHEREOF THIS AGREEMENT has
been executed by the parties hereto on the date first above written.

SIGNED,
SEALED AND DELIVERED     )           

   in the presence of                                           )   

)        ______________________

)        Richard MacArthur

)    

)        ______________________

)         John Whittaker

)               

)

)           ARS NETWORKS INCORPORATED

)           Per:

)                       _____________________

)                       Name:

)                       Title:

)           I have authority to bind the Corporation

)

)           McBRIDE WALLACE LAURENT &

CORD LLP

)           Per:

)                       _____________________

)

)           T & T DIESEL POWER LIMITED

)           Per:

)                       ______________________

)                       Name:

)                       Title:

)           I have authority to bind the Corporation

 

                                                                SCHEDULE
"C"

                                        NON-COMPETITION/NON-SOLICITATION

                                           AND CONFIDENTIALITY AGREEMENT

WHEREAS:

A.        Pursuant to an Agreement of Purchase and Sale dated the 26th
day of November, 2002 (the "Share Purchase Agreement") entered into between 
the Covenantor hereto, as Vendor and Richard MacArthur and John Whittaker, as
Purchasers and T & T Diesel Power Limited (the "Corporation"), the
Purchasers purchased from the Vendor, the Purchased Shares relating to the
Business.

2.                 
Defined terms used in this Agreement shall have the same meanings herein
as are attributed thereto in the Share Purchase Agreement or as otherwise set
out herein.

IN
CONSIDERATION of the completion of the transaction contemplated by the
Share Purchase Agreement and in order to induce the Purchaser to do so, and the
mutual agreements and covenants hereinafter contained, the sufficiency of which
is hereby expressly acknowledged by the Covenantor, the Covenantor hereby
covenants and agrees as follows:

(1)              
For a period of three (3)  year(s) following the Closing Date, it shall
not for whatever reason and with or without cause, either individually or in
partnership or jointly or in conjunction with any affiliate, person or persons,
firm, association, syndicate, company, corporation or entity as principal,
agent, employee, shareholder, owner, investor, partner or in any other manner
whatsoever:

a)      directly
or indirectly, carry on or be engaged in or be concerned with or interested in
or advise, lend money to, guarantee the debts or obligations of or permit its
name  to be used or employed by any person, persons, firm, association,
syndicate, company, corporation or entity engaged in or concerned with or
interested in a Competitive Business within the Province of Ontario;

b)      knowingly
solicit, interfere with or endeavour to entice away from the Purchasers or the
Corporation any supplier, customer, client, agent, sub-agent or employee or any
other person, firm, corporation or entity in the habit of dealing with the
Corporation or the Business of the Corporation;

c)      interfere
with or knowingly entice away or otherwise attempt to obtain the withdrawal of
any franchisor, licensor, independent contractor, agent or sub-agent or
employee from any contractual relationship, either written or oral with the
Corporation or the Purchaser in existence at the Closing Date;

PROVIDED that
each of clauses (a), (b) and (c) of this paragraph shall reflect separate
covenants on the part of the Covenantor and shall be severable one from the
other.

4       
For a period of three (3) year(s) following the Closing Date, it shall not
either alone or in conjunction with any individual, firm, corporation,
association or other entity, whether as principal, agent, shareholder or in any
other capacity whatsoever:

a)      divulge
to any person, firm or corporation, any name, address or requirement of any
franchisor, licensor, supplier, customer, client, agent, sub-agent, employee or
independent contractor of the Business existing at the Closing Date;

b)      divulge
to any person, firm or corporation, any process, method or device of the
Business and without limiting the generality of the foregoing, including
purchasing, sales, advertising, training, recruiting, supply and/or
distribution process, method or device, or any other information in respect of
the Business, other than such information that is in the public domain;

c)      divulge
to any person, firm or corporation any of the financial affairs of the
Business;

PROVIDED that
each of clauses (a), (b) and (c) of this paragraph shall reflect separate
covenants and shall be severable one from the other.

5    All of the restrictions contained herein are reasonable and valid, and
all defences to the strict enforcement of all or any portion thereof by the
Purchasers and/or the Corporation are hereby waived by the Covenantor.  If any
of the covenants contained herein shall be held unreasonable by reason of the
area, duration or type or scope of service covered by such covenant, then such
covenant shall be given effect to in such reduced form as may be determined by
any court of competent jurisdiction.  In the event that any clause or portion
hereof should be unenforceable or declared invalid for any reason whatsoever,
such unenforceability or invalidity shall not affect the enforceability or
validity of the remaining portions hereof and such unenforceable or invalid portion
shall be severable from the remainder hereof.

6    Any remedy at law for any breach of the provisions hereof by the
Covenantor may be inadequate and that in the event of such breach, the
Purchasers and/or the Corporation shall be entitled to make an application to
the appropriate court granting the Purchasers and the Corporation  temporary
and/or permanent injunctive relief against the offending Covenantor, without
the necessity of proving actual damage to the Purchasers or the Corporation or
the Business of the Corporation.

7    A waiver of any breach of a covenant or provision contained herein by
the Purchasers or the Corporation shall only be a waiver in respect of the
particular breach thereof giving rise to such waiver.

8    If the Covenantor is in breach of any of such covenants herein set
forth, the running of the period of proscription shall be stayed and shall
recommence upon the date that it ceased to be in breach thereof, whether
voluntarily or by injunction.

9    This Non-Competition/Non-Solicitation and Confidentiality Agreement
shall be governed by and interpreted in accordance with the laws of the
Province of Ontario, and the parties hereby submit to the non-exclusive
jurisdiction of the courts of the Province of Ontario; provided, however, that
neither party shall be constrained from taking legal action in any other
jurisdiction for the purpose of enforcing its rights hereunder.

10  For the purpose
hereof, the following terms shall have the following meanings:

a)      "Business"
means the business being carried on by the Corporation as at the day following
the Closing Date and without limiting the generality of the foregoing,
including the manufacture, assembly and sale of electric generator sets, gen
set enclosures, equipment trailers, service and maintenance contracts for
owners and users of products built and distributed by T & T Diesel Power
Limited;

b)      "Competitive
Business" means a Business that is substantially similar to the Business.

(8)   This Agreement and everything contained herein shall extend to and enure
to the benefit of and be binding upon the parties hereto and their respective
heirs, executors, administrators, successors, assigns and legal
representatives.

IN WITNESS
WHEREOF the undersigned has duly executed this Agreement this 10th day of
January, 2003.

 

SIGNED, SEALED AND DELIVERED     )           ARS NETWORKS
INCORPORATED

in the presence of                                  )           

)           Per:                                                              

)                       Name:  Sydney Harland

)                       Title:

)           I have authority to bind the Corporation<PAGE>

EXHIBIT 10.1   April 2003 NON-QUALIFIED STOCK COMPENSATION PLAN

APRIL 2003 NON-QUALIFIED STOCK & STOCK OPTION PLAN

1.       PURPOSE OF PLAN

         1.1 This April 2003 Non-Qualified Stock & Stock Option Plan (the
"Plan") of U.S. West Homes, Inc., a Nevada corporation (the "Company") for
employees, directors and other persons associated with the Company, is intended
to advance the best interests of the Company by providing those persons who have
a substantial responsibility for its management and growth with additional
incentive and by increasing their proprietary interest in the success of the
Company, thereby encouraging them to maintain their relationships with the
Company. Further, the availability and offering of stock options and common
stock under the Plan supports and increases the Company's ability to attract and
retain individuals of exceptional talent upon whom, in large measure, the
sustained progress, growth and profitability of the Company depends.

2.       DEFINITIONS

         2.1 For Plan purposes, except where the context might clearly indicate
otherwise, the following terms shall have the meanings set forth below:

         "Board" shall mean the Board of Directors of the Company.

         "Committee" shall mean the Compensation Committee, or such other
committee appointed by the Board, which shall be designated by the Board to
administer the Plan, or the Board if no committees have been established. The
Committee shall be composed of three or more persons as from time to time are
appointed to serve by the Board. Each member of the Committee, while serving as
such, shall be a disinterested person with the meaning of Rule 16b-3 promulgated
under the Securities Exchange Act of 1934.

         "Common Shares" shall mean the Company's Common Shares, $.001 par value
per share, or, in the event that the outstanding Common Shares are hereafter
changed into or exchanged for different shares of securities of the Company,
such other shares or securities.

         "Company" shall mean U.S. West Homes, Inc., a Nevada corporation, and
any parent or subsidiary corporation of U.S. West Homes, Inc., as such terms are
defined in Sections 425(e) and 425(f), respectively, of the Code.

         "Fair Market Value" shall mean, with respect to the date a given stock
option is granted or exercised, the average of the highest and lowest reported
sales prices of the Common Shares, as reported by such responsible reporting
service as the Committee may select, or if there were no transactions in the
Common Shares on such day, then the last preceding day on which transactions
took place. The above withstanding, the Committee may determine the Fair Market
Value in such other manner as it may deem more equitable for Plan purposes or as
is required by applicable laws or regulations.

<PAGE>

         "Optionee" shall mean an employee of the company who has been granted
one or more Stock Options under the Plan.

         "Common Stock" shall mean shares of common stock which are issued by
the Company pursuant to Section 5, below.

         "Common Stockholder" means the employee of, consultant to, or director
of the Company or other person to whom shares of Common Stock are issued
pursuant to this Plan.

         "Common Stock Agreement" means an agreement executed by a Common
Stockholder and the Company as contemplated by Section 5, below, which imposes
on the shares of Common Stock held by the Common Stockholder such restrictions
as the Board or Committee deem appropriate.

         "Stock Option" or "Non-Qualified Stock Option" or "NQSO" shall mean a
stock option granted pursuant to the terms of the Plan.

         "Stock Option Agreement" shall mean the agreement between the Company
and the Optionee under which the Optionee may purchase Common Shares hereunder.

3.       ADMINISTRATION OF THE PLAN

         3.1 The Committee shall administer the Plan and accordingly, it shall
have full power to grant Stock Options and Common Stock, construe and interpret
the Plan, establish rules and regulations and perform all other acts, including
the delegation of administrative responsibilities, it believes reasonable and
proper.

         3.2 The determination of those eligible to receive Stock Options and
Common Stock, and the amount, type and timing of each grant and the terms and
conditions of the respective stock option agreements and Common stock agreements
shall rest in the sole discretion of the Committee, subject to the provisions of
the Plan.

         3.3 The Committee may cancel any Stock Options awarded under the Plan
if an Optionee conducts himself in a manner which the Committee determines to be
inimical to the best interest of the Company, as set forth more fully in
paragraph 8 of Article 11 of the Plan.

         3.4 The Board, or the Committee, may correct any defect, supply any
omission or reconcile any inconsistency in the Plan, or in any granted Stock
Option, in the manner and to the extent it shall deem necessary to carry it into
effect.

         3.5 Any decision made, or action taken, by the Committee or the Board
arising out of or in connection with the interpretation and administration of
the Plan shall be final and conclusive.

<PAGE>

         3.6 Meetings of the Committee shall be held at such times and places as
shall be determined by the Committee. A majority of the members of the Committee
shall constitute a quorum for the transaction of business, and the vote of a
majority of those members present at any meeting shall decide any question
brought before that meeting. In addition, the Committee may take any action
otherwise proper under the Plan by the affirmative vote, taken without a
meeting, of a majority of its members.

         3.7 No member of the Committee shall be liable for any act or omission
of any other member of the Committee or for any act or omission on his own part,
including, but not limited to, the exercise of any power or discretion given to
him under the Plan, except those resulting from his own gross negligence or
willful misconduct.

         3.8 The Company, through its management, shall supply full and timely
information to the Committee on all matters relating to the eligibility of
Optionees, their duties and performance, and current information on any
Optionee's death, retirement, disability or other termination of association
with the Company, and such other pertinent information as the Committee may
require. The Company shall furnish the Committee with such clerical and other
assistance as is necessary in the performance of its duties hereunder.

4.       SHARES SUBJECT TO THE PLAN

         4.1 The total number of shares of the Company available for grants of
Stock Options and Common Stock under the Plan shall be One Billion
(1,000,000,000) Common Shares, subject to adjustment in accordance with Article
7 of the Plan, which shares may be either authorized but unissued or reacquired
Common Shares of the Company.

         4.2 If a Stock Option or portion thereof shall expire or terminate for
any reason without having been exercised in full, the unpurchased shares covered
by such NQSO shall be available for future grants of Stock Options.

SECTION 1.        5.       AWARD OF COMMON STOCK

         5.1 The Board or Committee from time to time, in its absolute
discretion, may (a) award Common Stock to employees of, consultants to, and
directors of the Company, and such other persons as the Board or Committee may
select, and (b) permit Holders of Options to exercise such Options prior to full
vesting therein and hold the Common Shares issued upon exercise of the Option as
Common Stock. In either such event, the owner of such Common Stock shall hold
such stock subject to such vesting schedule as the Board or Committee may impose
or such vesting schedule to which the Option was subject, as determined in the
discretion of the Board or Committee.

         5.2 Common Stock shall be issued only pursuant to a Common Stock
Agreement, which shall be executed by the Common Stockholder and the Company and
which shall contain such terms and conditions as the Board or Committee shall
determine consistent with this Plan, including such restrictions on transfer as
are imposed by the Common Stock Agreement.

<PAGE>

         5.3 Upon delivery of the shares of Common Stock to the Common
Stockholder, below, the Common Stockholder shall have, unless otherwise provided
by the Board or Committee, all the rights of a stockholder with respect to said
shares, subject to the restrictions in the Common Stock Agreement, including the
right to receive all dividends and other distributions paid or made with respect
to the Common Stock.

         5.4. Notwithstanding anything in this Plan or any Common Stock
Agreement to the contrary, no Common Stockholders may sell or otherwise
transfer, whether or not for value, any of the Common Stock prior to the date on
which the Common Stockholder is vested therein.

         5.5 All shares of Common Stock issued under this Plan (including any
shares of Common Stock and other securities issued with respect to the shares of
Common Stock as a result of stock dividends, stock splits or similar changes in
the capital structure of the Company) shall be subject to such restrictions as
the Board or Committee shall provide, which restrictions may include, without
limitation, restrictions concerning voting rights, transferability of the Common
Stock and restrictions based on duration of employment with the Company, Company
performance and individual performance; provided that the Board or Committee
may, on such terms and conditions as it may determine to be appropriate, remove
any or all of such restrictions. Common Stock may not be sold or encumbered
until all applicable restrictions have terminated or expire. The restrictions,
if any, imposed by the Board or Committee of the Board under this Section 5 need
not be identical for all Common Stock and the imposition of any restrictions
with respect to any Common Stock shall not require the imposition of the same or
any other restrictions with respect to any other Common Stock.

         5.6 Each Common Stock Agreement shall provide that the Company shall
have the right to repurchase from the Common Stockholder the unvested Common
Stock upon a termination of employment, termination of directorship or
termination of a consultancy arrangement, as applicable, at a cash price per
share equal to the purchase price paid by the Common Stockholder for such Common
Stock.

         5.7 In the discretion of the Board or Committee, the Common Stock
Agreement may provide that the Company shall have the right of first refusal
with respect to the Common Stock and a right to repurchase the vested Common
Stock upon a termination of the Common Stockholder's employment with the
Company, the termination of the Common Stockholder's consulting arrangement with
the Company, the termination of the Common Stockholder's service on the
Company's Board, or such other events as the Board or Committee may deem
appropriate.

         5.8 The Board or Committee shall cause a legend or legends to be placed
on certificates representing shares of Common Stock that are subject to
restrictions under Common Stock Agreements, which legend or legends shall make
appropriate reference to the applicable restrictions.

<PAGE>

6.       STOCK OPTION TERMS AND CONDITIONS

         6.1 Consistent with the Plan's purpose, Stock Options may be granted to
non-employee directors of the Company or other persons who are performing or who
have been engaged to perform services of special importance to the management,
operation or development of the Company.

         6.2 All Stock Options granted under the Plan shall be evidenced by
agreements which shall be subject to applicable provisions of the Plan, and such
other provisions as the Committee may adopt, including the provisions set forth
in paragraphs 2 through 11 of this Section 6.

         6.3 All Stock Options granted hereunder must be granted within ten
years from the earlier of the date of this Plan is adopted or approved by the
Company's shareholders.

         6.4 No Stock Option granted to any employee or 10% Shareholder shall be
exercisable after the expiration of ten years from the date such NQSO is
granted. The Committee, in its discretion, may provide that an Option shall be
exercisable during such ten year period or during any lesser period of time.

                  The Committee may establish installment exercise terms for a
Stock Option such that the NQSO becomes fully exercisable in a series of
cumulating portions. If an Optionee shall not, in any given installment period,
purchase all the Common Shares which such Optionee is entitled to purchase
within such installment period, such Optionee's right to purchase any Common
Shares not purchased in such installment period shall continue until the
expiration or sooner termination of such NQSO. The Committee may also accelerate
the exercise of any NQSO. However, no NQSO, or any portion thereof, may be
exercisable until thirty (30) days following date of grant ("30-Day Holding
Period.").

         6.5 A Stock Option, or portion thereof, shall be exercised by delivery
of (i) a written notice of exercise to the Company specifying the number of
common shares to be purchased, and (ii) payment of the full price of such Common
Shares, as fully set forth in paragraph 6 of this Section 6.

                  No NQSO or installment thereof shall be exercisable except
with respect to whole shares, and fractional share interests shall be
disregarded. Not less than 100 Common Shares may be purchased at one time unless
the number purchased is the total number at the time available for purchase
under the NQSO. Until the Common Shares represented by an exercised NQSO are
issued to an Optionee, he shall have none of the rights of a shareholder.

         6.6 The exercise price of a Stock Option, or portion thereof, may be
paid:

                  A. In United States dollars, in cash or by cashier's check,
certified check, bank draft or money order, payable to the order of the Company
in an amount equal to the option price; or

<PAGE>

                  B. At the discretion of the Committee, through the delivery of
fully paid and nonassessable Common Shares, with an aggregate Fair Market Value
on the date the NQSO is exercised equal to the option price, provided such
tendered Shares have been owned by the Optionee for at least one year prior to
such exercise; or

                  C. By a combination of both A and B above.

                  The Committee shall determine acceptable methods for tendering
Common Shares as payment upon exercise of a Stock Option and may impose such
limitations and prohibitions on the use of Common Shares to exercise an NQSO as
it deems appropriate.

         6.7 With the Optionee's consent, the Committee may cancel any Stock
Option issued under this Plan and issue a new NQSO to such Optionee.

         6.8 Except by will or the laws of descent and distribution, no right or
interest in any Stock Option granted under the Plan shall be assignable or
transferable, and no right or interest of any Optionee shall be liable for, or
subject to, any lien, obligation or liability of the Optionee. Stock Options
shall be exercisable during the Optionee's lifetime only by the Optionee or the
duly appointed legal representative of an incompetent Optionee.

         6.9 If the Optionee shall die while associated with the Company or
within three months after termination of such association, the personal
representative or administrator of the Optionee's estate or the person(s) to
whom an NQSO granted hereunder shall have been validly transferred by such
personal representative or administrator pursuant to the Optionee's will or the
laws of descent and distribution, shall have the right to exercise the NQSO for
one year after the date of the Optionee's death, to the extent (i) such NQSO was
exercisable on the date of such termination of employment by death, and (ii)
such NQSO was not exercised, and (iii) the exercise period may not be extended
beyond the expiration of the term of the Option.

                  No transfer of a Stock Option by the will of an Optionee or by
the laws of descent and distribution shall be effective to bind the Company
unless the Company shall have been furnished with written notice thereof and an
authenticated copy of the will and/or such other evidence as the Committee may
deem necessary to establish the validity of the transfer and the acceptance by
the transferee or transferee of the terms and conditions by such Stock Option.

                  In the event of death following termination of the Optionee's
association with the Company while any portion of an NQSO remains exercisable,
the Committee, in its discretion, may provide for an extension of the exercise
period of up to one year after the Optionee's death but not beyond the
expiration of the term of the Stock Option.

         6.10 Any Optionee who disposes of Common Shares acquired on the
exercise of a NQSO by sale or exchange either (i) within two years after the
date of the grant of the NQSO under which the stock was acquired, or (ii) within
one year after the acquisition of such Shares, shall notify the Company of such
disposition and of the amount realized upon such disposition. The transfer of
Common Shares may also be made under applicable provisions of the Securities Act
of 1933, as amended.

<PAGE>

7.       ADJUSTMENTS OR CHANGES IN CAPITALIZATION

         7.1 In the event that the outstanding Common Shares of the Company are
hereafter changed into or exchanged for a different number or kind of shares or
other securities of the Company by reason of merger, consolidation, other
reorganization, recapitalization, reclassification, combination of shares, stock
split-up or stock dividend:

                  A. Prompt, proportionate, equitable, lawful and adequate
adjustment shall be made of the aggregate number and kind of shares subject to
Stock Options which may be granted under the Plan, such that the Optionee shall
have the right to purchase such Common Shares as may be issued in exchange for
the Common Shares purchasable on exercise of the NQSO had such merger,
consolidation, other reorganization, recapitalization, reclassification,
combination of shares, stock split-up or stock dividend not taken place;

                  B. Rights under unexercised Stock Options or portions thereof
granted prior to any such change, both as to the number or kind of shares and
the exercise price per share, shall be adjusted appropriately, provided that
such adjustments shall be made without change in the total exercise price
applicable to the unexercised portion of such NQSO's but by an adjustment in the
price for each share covered by such NQSO's; or

                  C. Upon any dissolution or liquidation of the Company or any
merger or combination in which the Company is not a surviving corporation, each
outstanding Stock Option granted hereunder shall terminate, but the Optionee
shall have the right, immediately prior to such dissolution, liquidation, merger
or combination, to exercise his NQSO in whole or in part, to the extent that it
shall not have been exercised, without regard to any installment exercise
provisions in such NQSO.

         7.2 The foregoing adjustments and the manner of application of the
foregoing provisions shall be determined solely by the Committee, whose
determination as to what adjustments shall be made and the extent thereof, shall
be final, binding and conclusive. No fractional Shares shall be issued under the
Plan on account of any such adjustments.

8.       MERGER, CONSOLIDATION OR TENDER OFFER

         8.1 If the Company shall be a party to a binding agreement to any
merger, consolidation or reorganization or sale of substantially all the assets
of the Company, each outstanding Stock Option shall pertain and apply to the
securities and/or property which a shareholder of the number of Common Shares of
the Company subject to the NQSO would be entitled to receive pursuant to such
merger, consolidation or reorganization or sale of assets.

         8.2 In the event that:

<PAGE>

                  A. Any person other than the Company shall acquire more than
20% of the Common Shares of the Company through a tender offer, exchange offer
or otherwise;

                  B. A change in the "control" of the Company occurs, as such
term is defined in Rule 405 under the Securities Act of 1933;

                  C. There shall be a sale of all or substantially all of the
assets of the Company;

any then outstanding Stock Option held by an Optionee, who is deemed by the
Committee to be a statutory officer ("Insider") for purposes of Section 16 of
the Securities Exchange Act of 1934 shall be entitled to receive, subject to any
action by the Committee revoking such an entitlement as provided for below, in
lieu of exercise of such Stock Option, to the extent that it is then
exercisable, a cash payment in an amount equal to the difference between the
aggregate exercise price of such NQSO, or portion thereof, and, (i) in the event
of an offer or similar event, the final offer price per share paid for Common
Shares, or such lower price as the Committee may determine to conform an option
to preserve its Stock Option status, times the number of Common Shares covered
by the NQSO or portion thereof, or (ii) in the case of an event covered by B or
C above, the aggregate Fair Market Value of the Common Shares covered by the
Stock Option, as determined by the Committee at such time.

         8.3 Any payment which the Company is required to make pursuant to
paragraph 8.2 of this Section 8 shall be made within 15 business days, following
the event which results in the Optionee's right to such payment. In the event of
a tender offer in which fewer than all the shares which are validly tendered in
compliance with such offer are purchased or exchanged, then only that portion of
the shares covered by an NQSO as results from multiplying such shares by a
fraction, the numerator of which is the number of Common Shares acquired
pursuant to the offer and the denominator of which is the number of Common
Shares tendered in compliance with such offer shall be used to determine the
payment thereupon. To the extent that all or any portion of a Stock Option shall
be affected by this provision, all or such portion of the NQSO shall be
terminated.

         8.4 Notwithstanding paragraphs 8.1 and 8.3 of this Section 8, the
Committee may, by unanimous vote and resolution, unilaterally revoke the
benefits of the above provisions; provided, however, that such vote is taken no
later than ten business days following public announcement of the intent of an
offer or the change of control, whichever occurs earlier.

9.       AMENDMENT AND TERMINATION OF PLAN

         9.1 The Board may at any time, and from time to time, suspend or
terminate the Plan in whole or in part or amend it from time to time in such
respects as the Board may deem appropriate and in the best interest of the
Company.

<PAGE>

         9.2 No amendment, suspension or termination of this Plan shall, without
the Optionee's consent, alter or impair any of the rights or obligations under
any Stock Option theretofore granted to him under the Plan.

         9.3 The Board may amend the Plan, subject to the limitations cited
above, in such manner as it deems necessary to permit the granting of Stock
Options meeting the requirements of future amendments or issued regulations, if
any, to the Code.

         9.4 No NQSO may be granted during any suspension of the Plan or after
termination of the Plan.

10.      GOVERNMENT AND OTHER REGULATIONS

         10.1 The obligation of the Company to issue, transfer and deliver
Common Shares for Stock Options exercised under the Plan shall be subject to all
applicable laws, regulations, rules, orders and approval which shall then be in
effect and required by the relevant stock exchanges on which the Common Shares
are traded and by government entities as set forth below or as the Committee in
its sole discretion shall deem necessary or advisable. Specifically, in
connection with the Securities Act of 1933, as amended, upon exercise of any
Stock Option, the Company shall not be required to issue Common Shares unless
the Committee has received evidence satisfactory to it to the effect that the
Optionee will not transfer such shares except pursuant to a registration
statement in effect under such Act or unless an opinion of counsel satisfactory
to the Company has been received by the Company to the effect that such
registration is not required. Any determination in this connection by the
Committee shall be final, binding and conclusive. The Company may, but shall in
no event be obligated to, take any other affirmative action in order to cause
the exercise of a Stock Option or the issuance of Common Shares pursuant thereto
to comply with any law or regulation of any government authority.

11.      MISCELLANEOUS PROVISIONS

         11.1 No person shall have any claim or right to be granted a Stock
Option or Common Stock under the Plan, and the grant of an NQSO or Common Stock
under the Plan shall not be construed as giving an Optionee or Common
Stockholder the right to be retained by the Company. Furthermore, the Company
expressly reserves the right at any time to terminate its relationship with an
Optionee with or without cause, free from any liability, or any claim under the
Plan, except as provided herein, in an option agreement, or in any agreement
between the Company and the Optionee.

         11.2 Any expenses of administering this Plan shall be borne by the
Company.

         11.3 The payment received from Optionee from the exercise of Stock
Options under the Plan shall be used for the general corporate purposes of the
Company.

         11.4 The place of administration of the Plan shall be in the State of
Florida, and the validity, construction, interpretation, administration and
effect of the Plan and of its rules and regulations, and rights relating to the
Plan, shall be determined solely in accordance with the laws of the State of
Florida.

<PAGE>

         11.5 Without amending the Plan, grants may be made to persons who are
foreign nationals or employed outside the United States, or both, on such terms
and conditions, consistent with the Plan's purpose, different from those
specified in the Plan as may, in the judgment of the Committee, be necessary or
desirable to create equitable opportunities given differences in tax laws in
other countries.

         11.6 In addition to such other rights of indemnification as they may
have as members of the Board or the Committee, the members of the Committee
shall be indemnified by the Company against all costs and expenses reasonably
incurred by them in connection with any action, suit or proceeding to which they
or any of them may be party by reason of any action taken or failure to act
under or in connection with the Plan or any Stock Option granted thereunder, 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 a judgment based upon a finding of bad faith; provided that upon the
institution of any such action, suit or proceeding a Committee member shall, in
writing, give the Company notice thereof and an opportunity, at its own expense,
to handle and defend the same, with counsel acceptable to the Optionee, before
such Committee member undertakes to handle and defend it on his own behalf.

         11.7 Stock Options may be granted under this Plan from time to time, in
substitution for stock options held by employees of other corporations who are
about to become employees of the Company as the result of a merger or
consolidation of the employing corporation with the Company or the acquisition
by the Company of the assets of the employing corporation or the acquisition by
the Company of stock of the employing corporation as a result of which it
becomes a subsidiary of the Company. The terms and conditions of such substitute
stock options so granted may vary from the terms and conditions set forth in
this Plan to such extent as the Board of Directors of the Company at the time of
grant may deem appropriate to conform, in whole or in part, to the provisions of
the stock options in substitution for which they are granted, but no such
variations shall be such as to affect the status of any such substitute stock
options as a stock option under Section 422A of the Code.

         11.8 Notwithstanding anything to the contrary in the Plan, if the
Committee finds by a majority vote, after full consideration of the facts
presented on behalf of both the Company and the Optionee, that the Optionee has
been engaged in fraud, embezzlement, theft, insider trading in the Company's
stock, commission of a felony or proven dishonesty in the course of his
association with the Company or any subsidiary corporation which damaged the
Company or any subsidiary corporation, or for disclosing trade secrets of the
Company or any subsidiary corporation, the Optionee shall forfeit all
unexercised Stock Options and all exercised NQSO's under which the Company has
not yet delivered the certificates and which have been earlier granted to the
Optionee by the Committee. The decision of the Committee as to the cause of an
Optionee's discharge and the damage done to the Company shall be final. No
decision of the Committee, however, shall affect the finality of the discharge
of such Optionee by the Company or any subsidiary corporation in any manner.

<PAGE>

12.      WRITTEN AGREEMENT

         12.1 Each Stock Option granted hereunder shall be embodied in a written
Stock Option Agreement which shall be subject to the terms and conditions
prescribed above and shall be signed by the Optionee and by the President or any
Vice President of the Company, for and in the name and on behalf of the Company.
Such Stock Option Agreement shall contain such other provisions as the
Committee, in its discretion shall deem advisable.

<PAGE>

Number of Shares:___________                             Date of Grant:_________

                  FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

         AGREEMENT made this _______ day of _____________ 200_, between
________________ (the "Optionee"), and U.S. West Homes, Inc. (the "Company").

         1.       GRANT OF OPTION

                  The Company, pursuant to the provisions of the April 2002
Non-Qualified Stock & Stock Option Plan (the "Plan"), adopted by the Board of
Directors on April 25, 2003, the Company hereby grants to the Optionee, subject
to the terms and conditions set forth or incorporated herein, an option to
purchase from the Company all or any part of an aggregate of shares of its $.001
par value common stock, as such common stock is now constituted, at the purchase
price of $ per share. The provisions of the Plan governing the terms and
conditions of the Option granted hereby are incorporated in full herein by
reference.

         2.       EXERCISE

                  The Option evidenced hereby shall be exercisable in whole or
in part on or after and on or before , provided that the cumulative number of
shares of common stock as to which this Option may be exercised (except in the
event of death, retirement, or permanent and total disability, as provided in
paragraph 6.9 of the Plan) shall not exceed the following amounts:

         Cumulative Number                  Prior to Date
             of Shares                   (Note Inclusive of)
             ---------                   -------------------

The Option evidenced hereby shall be exercisable by the delivery to and receipt
by the Company of (i) written notice of election to exercise, in the form set
forth in Attachment B hereto, specifying the number of shares to be purchased;
(ii) accompanied by payment of the full purchase price thereof in cash or
certified check payable to the order of the Company, or by fully paid and
nonassessable common stock of the Company properly endorsed over to the Company,
or by a combination thereof, and (iii) by return of this Stock Option Agreement
for endorsement of exercise by the Company on Schedule I hereof. In the event
fully paid and nonassessable common stock is submitted as whole or partial
payment for shares to be purchased hereunder, such common stock will be valued
at their Fair Market Value (as defined in the Plan) on the date such shares
received by the Company are applied to payment of the exercise price.

<PAGE>

         3.       TRANSFERABILITY

                  The Option evidenced hereby is not assignable or transferable
by the Optionee other than by the Optionee's will or by the laws of descent and
distribution, as provided in paragraph 6.9 of the Plan. The Option shall be
exercisable only by the Optionee during his lifetime.

                                        U.S. West Homes, Inc.

                                        By:
                                        Name:
ATTEST:                                 Title:

------------------------------
Secretary

         Optionee hereby acknowledges receipt of a copy of the Plan, attached
hereto and accepts this Option subject to each and every term and provision of
such Plan. Optionee hereby agrees to accept as binding, conclusive and final,
all decisions or interpretations of the Board of Directors administering the
Plan on any questions arising under such Plan. Optionee recognizes that if
Optionee's employment with the Company or any subsidiary thereof shall be
terminated without cause, or by the Optionee, prior to completion or
satisfactory performance by Optionee (except as otherwise provided in paragraph
6 of the Plan) all of the Optionee's rights hereunder shall thereupon terminate;
and that, pursuant to paragraph 6 of the Plan, this Option may not be exercised
while there is outstanding to Optionee any unexercised Stock Option granted to
Optionee before the date of grant of this Option.

Dated:_____________                     ________________________________________

                                       Optionee

                                        ________________________________________
                                        Print Name

                                        ________________________________________
                                        Address

                                        ________________________________________
                                        Social Security No.

<PAGE>

ATTACHMENT B

                               NOTICE OF EXERCISE

To:      U.S. West Homes, Inc.

         (1) The undersigned hereby elects to purchase ________ shares of Common
Shares (the "Common Shares"), of U.S. West Homes, Inc. pursuant to the terms of
the attached Non-Qualified Stock Option Agreement, and tenders herewith payment
of the exercise price in full, together with all applicable transfer taxes, if
any.

         (2) Please issue a certificate or certificates representing said shares
of Common Shares in the name of the undersigned or in such other name as is
specified below:

                            _______________________________
                            (Name)

                            _______________________________
                            (Address)
                            _______________________________

Dated:

                                                  ______________________________
                                                  Signature

<PAGE>

Optionee:____________________                     Date of Grant:________________

                                   SCHEDULE I

=============== ================= ============== ================ ==============
DATE            SHARES            PAYMENT        UNEXERCISED      ISSUING
                PURCHASED         RECEIVED       SHARES           OFFICER
                                                 REMAINING        INITIALS
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