Document:

SUNGLASSES AGREEMENT
                              --------------------

THIS AGREEMENT is made and entered into as of the 1st day of December, 2000 by
and between MOSSIMO, INC., a Delaware corporation, with its principal place of
business located at 2016 Broadway, Santa Monica, CA 90404 U.S.A. ("Mossimo"),
MARCOLIN S.P.A.. a corporation organized under the laws of Italy with its
principal place of business located at Via Noai 31, 32940 Frazione Vallesella
Domegge di Cadora (BL) ("Marcolin") and TARGET STORES, a division of Target
Corporation, a Minnesota corporation with its principal place of business
located at 33 South Sixth Street, Minneapolis, MN 55402 U.S.A. ("Target").

         A. Mossimo and Marcolin entered into that certain Licensing Agreement
dated June 9, 1999, as amended on July 31, 2000 (as amended, the "Marcolin
Agreement") for the license of the MOSSIMO trademark to Marcolin for, among
other things, sunglasses, all as more specifically set forth therein.

         B. Mossimo and Target entered into that certain License Agreement on
March 28, 2000 (the "Target Agreement") for, among other things, the license of
the MOSSIMO trademark to Target for use on a variety of merchandise, all as more
specifically set forth therein.

         C. The parties wish to exclude from the Marcolin Agreement and add to
the Target Agreement Non-Optical Sunglass Products (as defined below)
distributed in the Territory (as defined below) on the terms and subject to the
conditions set forth herein.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and agreements contained herein, the parties hereto agree as
follows:

1. DEFINITIONS. For purposes of this Agreement, the Marcolin Agreement and the
Target Agreement, the following terms shall have the following meanings and
shall include the plural as well as the singular:

         "Optical Channel" shall mean the channel of trade through which
consumers purchase or otherwise obtain certain products which includes
opticians, optometrists, ophthalmologists, optical chains (i.e., Pearle and
Lenscrafters) and specialty eyeglass and sunglass stores (i.e.. InVision and
Sunglass Hut).

         "Non-Optical Sunglass Products" shall mean sunglasses, sunglass cases
and related accessories that are sold through channels of trade other than the
Optical Channel, including, by way of example and not limitation, mass
merchandise discount stores, super centers, mid-tier stores and department
stores.

         "Territory" shall mean the United States, its territories and
possessions.

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         "Net Sales" shall mean the sales price to customers on all sales of
Non-Optical Sunglass Products by Target (whether regular, markdown, clearance or
otherwise), excluding sales tax and finance charges and, less any refunds and
credits for returns actually given by Target to its customers.

2. MARCOLIN AGREEMENT. Marcolin and Mossimo hereby amend the Marcolin Agreement
effective as of the date hereof by excluding sunglasses and sunglass cases
distributed in the Territory outside of the optical channel from the definition
of PRODUCTS in said agreement and from the grant of rights to Marcolin
thereunder, and releasing Marcolin from any reporting or payment obligations
with respect thereto.

3. TARGET AGREEMENT. Mossimo and Target hereby amend the Target Agreement
effective as of the date hereof by adding Non-Optical Sunglass Products
distributed in the Territory to the definition of "Exclusive Merchandise" in
said agreement and to the list of "Exclusive Merchandise Categories" set forth
in Exhibit B thereto. The parties agree that all sales of Non-Optical Sunglass
Products by Target shall be subject to the royalty and reporting requirements of
the Target Agreement, and further, that Marcolin shall not have any reporting or
royalty obligations to Mossimo with respect to any such sales.

4. PAYMENTS. In consideration of the transfer of rights described herein, Target
shall pay to Marcolin a minimum of US$800,000 and a maximum of US$1,600,000 in
accordance with the following schedule:

         (a) US$400,000 on or before December 31, 2000; and

         (b) US$400,000 on or before December 31, 2001; and

         (c) In the event that Target's Net Sales of Non-Optical Sunglass
Products are greater than Us$35,000,000 and less than US$50,000,000 from the
date hereof through December 31, 2002 (the "Term"), an additional US$400,000
within thirty (30) days of the end of the Term; or

         (d) In the event that Target's Net Sales of Non-Optical Sunglass
Products are greater than US$50,000,000 during the Term, an additional
US$800,000 within thirty (30) days of the end of the Term.

5. INDEMNIFICATION.

         (a) INDEMNIFICATION OF TARGET. Marcolin shall indemnify and hold Target
and its affiliates, directors, officers, employees and agents harmless from and
against any and all liabilities, losses, claims, suits, damages, costs and
expenses (including, without limitation, reasonable attorneys' fees and
expenses) arising out of or otherwise relating to any claims arising out of the
manufacture, packaging, distribution, promotion, sale, marketing or advertising
of Non-Optical Sunglass Products by Marcolin, provided that (i) prompt written
notice is given to Marcolin upon Target becoming aware of any such actual or
threatened claims or suits; (ii) Marcolin shall have the option to exclusively

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undertake and conduct the defense and/or settlement of any such claims or suits;
and (iii) no settlement or attempt at settlement of any such claims or suits is
made without the prior written consent of Marcolin.

         (b) INDEMNIFICATION OF MARCOLIN. Target shall indemnify and hold
Marcolin and its affiliates, directors, officers, employees and agents harmless
from and against any and all liabilities, losses, claims, suits, damages, costs
and expenses (including, without limitation, reasonable attorneys' fees and
expenses) arising out of or otherwise relating to any claims arising out of the
manufacture, packaging, distribution, promotion, sale, marketing or advertising
of Non-Optical Sunglass Products by or on behalf of Target, provided that (i)
prompt written notice is given to Target upon Marcolin becoming aware of any
such actual or threatened claims or suits; (ii) Target shall have the option to
exclusively undertake and conduct the defense and/or settlement of any such
claims or suits; and (iii) no settlement or attempt at settlement of any such
claims or suits is made without the prior written consent of Target.

6. CONFIDENTIALITY. The parties acknowledge and agree that any and all reports
and financial information disclosed by a party pursuant to this Agreement are
confidential information commercially valuable to such party (the "Confidential
Information"). The parties acknowledge that Confidential Information is
disclosed hereunder on a confidential basis to be used only as expressly
permitted by the disclosing party. Each receiving party, its officers,
directors, employees, and agents, shall protect the Confidential Information
belonging to the other party and shall not disclose it to any other person,
firm, organization, or employee unless authorized, in writing, by the disclosing
party. If required by governmental or judicial law regulation or ruling,
pursuant to subpoena or other court or administrative process, the receiving
party shall give prompt notice to the disclosing party of such pending
disclosure and shall, if requested, assist the disclosing party in seeking a
protective order or other measures to preserve the confidentiality of such
Confidential Information. Except as expressly permitted hereunder, the
Confidential Information may not be copied, reprinted, duplicated, or recreated
in whole or in part without the express written consent of the disclosing party.
Each receiving party shall take responsibility for action by instruction,
agreement or otherwise with respect to its employees or other persons permitted
access to the Confidential Information to comply fully with the obligations
hereunder with respect thereto. The parties each agree to return the
Confidential Information belonging to the other party, and all copies thereof,
to the disclosing party, upon request. Each party hereby consents to the
disclosure of its Confidential Information to any of the other party's
attorneys, accountants and similar third parties who have a business "need to
know" such information.

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<PAGE>

7. GENERAL PROVISIONS.

         (a) All notices and other communications required or permitted to be
given under this Agreement shall be in writing and shall be delivered either by
personal service. facsimile or prepaid overnight courier service and addressed
as follows:

If to Mossimo:               Mossimo, Inc.
                             2016 Broadway
                             Santa Monica, CA 90404
                             Attn.: Chief Executive Officer

If to Target:                Target Stores
                             33 South Sixth Street
                             Minneapolis, MN 55405
                             Attn: Senior Vice President,
                             Merchandising Softlines

With a copy to:              Target Brands, Inc.
                             33 South Sixth Street
                             Minneapolis, MN 55405
                             Attn: President

If to Marcolin:              Marcolin S.P.A.
                             c/o Marcolin USA, Inc.
                             200 Forge Way
                             Rockaway, NJ 07866
                             Attn: Russell P. Guagenti

If delivered personally, such notices or other communications shall be deemed
delivered upon delivery. If sent by fax, such notice or other communications
shall be deemed delivered when received provided that the sender has
confirmation of receipt. If sent by prepaid overnight courier service, such
notices or other communications shall be deemed delivered upon delivery or
refusal to accept delivery as indicated on the return receipt. Any party may
change its address at any time by written notice to the other party as set forth
above.

         (b) Nothing in this Agreement shall create a partnership or joint
venture or establish the relationship of principal and agent or any other
relationship of a similar nature between the parties hereto, and neither
Mossimo, Marcolin nor Target shall have the power to obligate or bind the other
in any manner whatsoever.

         (c) This Agreement shall be governed by and construed in accordance
with the laws of the State of Minnesota, without reference to its provisions
governing conflicts of laws. This Agreement constitutes the complete agreement
of the parties on the subject matter covered herein and supersedes all prior or
contemporaneous understandings, agreements or representations, written or oral,
of the parties hereto. Except as expressly

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<PAGE>

modified herein, the Marcolin Agreement and the Target Agreement shall remain in
full force and effect. This Agreement shall be binding upon the successors and
assigns of each party. This Agreement may not be amended except by a writing
signed by the parties hereto and expressly declared to be an amendment or
modification thereof. In the event that any one or more of the provisions of
this Agreement is unenforceable, the enforceability of the remaining provisions
shall be unimpaired.

         (d) This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement, in
the manner appropriate to each, as of the day and year first above written.

                            MOSSIMO, INC.

                            By: /s/ Mossimo Giannulli
                                -------------------------------------
                            Title:
                                   ----------------------------------

                            TARGET STORES, a division of Target Corporation

                            By: /s/ Sandra Doyle
                               --------------------------------------
                            Title: VPMM
                                  -----------------------------------

                            MARCOLIN S.P.A.

                            By: /s/ signature
                               --------------------------------------
                            Title: Executive VP & Licensing Director
                                  -----------------------------------

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                                    EXHIBIT A

                                   Trademarks
                                   ----------

                                  Registrations
                                  -------------

Trademark                 Class       Registration Number      Registration Date

M IN A BOX DESIGN           25            1611314                28 Aug 1990

MOSS                         9            2155830                05 May 1998

MOSS                        25            2157797                12 May 1998

MOSSIMO (Block)              9            1746343                12 Jan 1993

MOSSIMO (Block)             14            2051272                08 Apr 1997

MOSSIMO (Block)             25            1551068                08 Aug 1989

MOSSIMO (Stylized)          14            2053214                15 Apr 1997

MOSSIMO (Stylized)          25            2201308                03 Nov 1998

MOSSIMO (Stylized)          42            1970116                23 Apr 1996

MOSSIMO (Stylized)          42            1984437                02 Jul 1996

MOSS1MO AND BADGE           25            1813793                28 Dec 1993
DESIGN

MOSSIMO AND M DESIGN         9            1775768                08 Jun 1993

MOSSIMO AND M DESIGN        25            1620035                30 Oct 1990

MOSSIMO GIANNULLI            9            2157796                12 May 1998

MOSSIMO GIANNULLI           25            2155829                05 May 1998

                                  Applications
                                  ------------

Trademark                 Class       Application Number         Filing Date

BABY MOSS                   25            75/100784              8 May 1996

MOSS                    3, 14, 18         74/735725              29 Sep 1995

MOSSIMO (BLOCK)              3            75/633095              02 Feb 1999

MOSSIMO (Stylized)           3            75/248668              27 Feb 1997

MOSSIMO (Stylized)           9            75/689070              21 Apr 1999

MOSSIMO (Stylized)          18            75/759670              26 Jul 1999

MOSSIMO FOOTWEAR            25            75/768844              4 Aug 1999

MOSSIMO FOOTWEAR            35            75/767903              4 Aug 1999KWIKWEB.COM, INC.

                             2000 STOCK OPTION PLAN

         1. PURPOSE. The purpose of the KwikWeb.com, Inc. 2000 Stock Option Plan
(the "Plan") is to strengthen KwikWeb.com, Inc., a Nevada corporation
("Corporation"), by providing to employees, officers, directors, consultants and
independent contractors of the Corporation or any of its subsidiaries (including
dealers, distributors, and other business entities or persons providing services
on behalf of the Corporation or any of its subsidiaries) added incentive for
high levels of performance and unusual efforts to increase the earnings of the
Corporation. The Plan seeks to accomplish this purpose by enabling specified
persons to purchase shares of the common stock of the Corporation, $.001 par
value, thereby increasing their proprietary interest in the Corporation's
success and encouraging them to remain in the employ or service of the
Corporation.

         2. CERTAIN DEFINITIONS. As used in this Plan, the following words and
phrases shall have the respective meanings set forth below, unless the context
clearly indicates a contrary meaning:

                  2.1 "BOARD OF DIRECTORS": The Board of Directors of the
Corporation.

                  2.2 "COMMITTEE": The Committee which shall administer the Plan
shall consist of the entire Board of Directors or a committee designated by the
entire Board.

                  2.3 "FAIR MARKET VALUE PER SHARE": The fair market value per
share of the Shares as determined by the Committee in good faith. The Committee
is authorized to make its determination as to the fair market value per share of
the Shares on the following basis: (i) if the Shares are traded only otherwise
than on a securities exchange and are not quoted on the National Association of
Securities Dealers' Automated Quotation System ("NASDAQ"), but are quoted on the
Bulletin Board, either (a) the average of the daily closing prices of the Shares
over the thirty (30) trading days preceding the date of grant of an Option, or
(b) the closing sale price of the Shares on the date of grant; (ii) if the
Shares are traded on a securities exchange or on the NASDAQ, either (a) the
average of the daily closing prices of the Shares during the ten (10) trading
days preceding the date of grant of an Option, or (b) the daily closing price of
the Shares on the date of grant of an Option, or (iii) if the Shares are traded
only otherwise than as described in (i) or (ii) above, or if the Shares are not
publicly traded, the value determined by the Committee in good faith based upon
the fair market value as determined by completely independent and well qualified
experts.

                  2.4 "OPTION": A stock option granted under the Plan.

                  2.5 "INCENTIVE STOCK OPTION": An Option intended to qualify
for treatment as an incentive stock option under Code Sections 421 and 422, and
designated as an Incentive Stock Option.

                  2.6 "NONQUALIFIED OPTION": An Option not qualifying as an
Incentive Stock Option.

<PAGE>

                  2.7 "OPTIONEE": The holder of an Option.

                  2.8 "OPTION AGREEMENT": The document setting forth the terms
and conditions of each Option.

                  2.9 "SHARES": The shares of common stock, $.001 par value, of
the Corporation.

                  2.10 "CODE": The U.S. Internal Revenue Code of 1986, as
amended.

                  2.11 "SUBSIDIARY": Any corporation of which fifty percent
(50%) or more of total combined voting power of all classes of stock of such
corporation is owned by the Corporation or another Subsidiary (as so defined).

         3. ADMINISTRATION OF PLAN.

                  3.1 IN GENERAL. This Plan shall be administered by the
Committee. Any action of the Committee with respect to administration of the
Plan shall be taken pursuant to (i) a majority vote at a meeting of the
Committee (to be documented by minutes), or (ii) the unanimous written consent
of its members.

                  3.2 AUTHORITY. Subject to the express provisions of this Plan,
the Committee shall have the authority to: (i) construe and interpret the Plan,
decide all questions and settle all controversies and disputes which may arise
in connection with the Plan and to define the terms used therein; (ii)
prescribe, amend and rescind rules and regulations relating to administration of
the Plan; (iii) determine the purchase price of the Shares covered by each
Option and the method of payment of such price, individuals to whom, and the
time or times at which, Options shall be granted and exercisable and the number
of Shares covered by each Option; (iv) determine the terms and provisions of the
respective Option Agreements (which need not be identical); (v) determine the
duration and purposes of leaves of absence which may be granted to participants
without constituting a termination of their employment for purposes of the Plan;
and (vi) make all other determinations necessary or advisable to the
administration of the Plan. Determinations of the Committee on matters referred
to in this Section 3 shall be conclusive and binding on all parties howsoever
concerned. With respect to Incentive Stock Options, the Committee shall
administer the Plan in compliance with the provisions of Code Section 422 as the
same may hereafter be amended from time to time. No member of the Committee
shall be liable for any action or determination made in good faith with respect
to the Plan or any Option.

         4. ELIGIBILITY AND PARTICIPATION.

                  4.1 IN GENERAL. Only officers, employees and directors who are
also employees of the Corporation or any Subsidiary shall be eligible to receive
grants of Incentive Stock Options. Officers, employees and directors (whether or
not they are also employees) of the Corporation or any Subsidiary, as well as
consultants, independent contractors or other service providers of the
Corporation or any Subsidiary shall be eligible to receive grants of
Nonqualified Options. Within the foregoing limits, the Committee, from time to
time, shall determine and designate persons to whom Options may be granted. All
such designations shall be made in the absolute discretion of the Committee and
shall not require the approval of the stockholders. In determining (i) the
number of Shares to be covered by each Option, (ii) the purchase price for such
Shares and the method of payment of such price (subject to the other sections

                                       2

<PAGE>

hereof), (iii) the individuals of the eligible class to whom Options shall be
granted, (iv) the terms and provisions of the respective Option Agreements, and
(v) the times at which such Options shall be granted, the Committee shall take
into account such factors as it shall deem relevant in connection with
accomplishing the purpose of the Plan as set forth in Section 1. An individual
who has been granted an Option may be granted an additional Option or Options if
the Committee shall so determine. No Option shall be granted under the Plan
after July 8, 2009, but Options granted before such date may be exercisable
after such date.

                  4.2 CERTAIN LIMITATIONS. In no event shall Incentive Stock
Options be granted to an Optionee such that the sum of (i) aggregate fair market
value (determined at the time the Incentive Stock Options are granted) of the
Shares subject to all Options granted under the Plan which are exercisable for
the first time during the same calendar year, plus (ii) the aggregate fair
market value (determined at the time the options are granted) of all stock
subject to all other incentive stock options granted to such Optionee by the
Corporation, its parent and Subsidiaries which are exercisable for the first
time during such calendar year, exceeds One Hundred Thousand Dollars ($100,000).
For purposes of the immediately preceding sentence, fair market value shall be
determined as of the date of grant based on the Fair Market Value Per Share as
determined pursuant to Section 2.3.

         5. AVAILABLE SHARES AND ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

                  5.1 SHARES. Subject to adjustment as provided in Section 5.2
below, the total number of Shares to be subject to Options granted pursuant to
this Plan shall not exceed Six Hundred Thousand (600,000) Shares. Shares subject
to the Plan may be either authorized but unissued shares or shares that were
once issued and subsequently reacquired by the Corporation; the Committee shall
be empowered to take any appropriate action required to make Shares available
for Options granted under this Plan. If any Option is surrendered before
exercise or lapses without exercise in full or for any other reason ceases to be
exercisable, the Shares reserved therefore shall continue to be available under
the Plan.

                  5.2 ADJUSTMENTS. As used herein, the term "Adjustment Event"
means an event pursuant to which the outstanding Shares of the Corporation are
increased, decreased or changed into, or exchanged for a different number or
kind of shares or securities, without receipt of consideration by the
Corporation, through reclassification, stock split, reverse stock split, stock
dividend, stock consolidation or otherwise. Upon the occurrence of an Adjustment
Event, (i) appropriate and proportionate adjustments shall be made to the number
and kind of shares and exercise price for the shares subject to the Options
which may thereafter be granted under this Plan, (ii) appropriate and
proportionate adjustments shall be made to the number and kind of and exercise
price for the shares subject to the then outstanding Options granted under this
Plan, and (iii) appropriate amendments to the Option Agreements shall be
executed by the Corporation and the Optionees if the Committee determines that
such an amendment is necessary or desirable to reflect such adjustments. If
determined by the Committee to be appropriate, in the event of an Adjustment
Event which involves the substitution of securities of a corporation other than

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<PAGE>

the Corporation, the Committee shall make arrangements for the assumptions by
such other corporation of any Options then or thereafter outstanding under the
Plan. Notwithstanding the foregoing, such adjustment in an outstanding Option
shall be made without change in the total exercise price applicable to the
unexercised portion of the Option, but with an appropriate adjustment to the
number of shares, kind of shares and exercise price for each share subject to
the Option. The determination by the Committee as to what adjustments,
amendments or arrangements shall be made pursuant to this Section 5.2, and the
extent thereof, shall be final and conclusive. No fractional Shares shall be
issued under the Plan on account of any such adjustment or arrangement.

         6. TERMS AND CONDITIONS OF OPTIONS.

                  6.1 INTENDED TREATMENT AS INCENTIVE STOCK OPTIONS. Incentive
Stock Options granted pursuant to this Plan are intended to be "incentive stock
options" to which Code Sections 421 and 422 apply, and the Plan shall be
construed and administered to implement that intent. If all or any part of an
Incentive Stock Option shall not be an "incentive stock option" subject to
Sections 421 or 422 of the Code, such Option shall nevertheless be valid and
carried into effect. All Options granted under this Plan shall be subject to the
terms and conditions set forth in this Section 6 (except as provided in Section
5.2) and to such other terms and conditions as the Committee shall determine to
be appropriate to accomplish the purpose of the Plan as set forth in Section 1.

                  6.2 AMOUNT AND PAYMENT OF EXERCISE PRICE.

                           6.2.1 EXERCISE PRICE. The exercise price per Share
for each Share which the Optionee is entitled to purchase under a Nonqualified
Option shall be determined by the Committee. The exercise price per Share for
each Share which the Optionee is entitled to purchase under an Incentive Stock
Option shall be determined by the Committee but shall not be less than the Fair
Market Value Per Share on the date of the grant of the Incentive Stock Option;
provided, however, that the exercise price shall not be less than one hundred
ten percent (110%) of the Fair Market Value Per Share on the date of the grant
of the Incentive Stock Option in the case of an individual then owning (within
the meaning of Code Section 425(d)) more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation or of its
parent or Subsidiaries.

                           6.2.2 PAYMENT OF EXERCISE PRICE. The consideration to
be paid for the Shares to be issued upon exercise of an Option, including the
method of payment, shall be determined by the Committee and may consist of
promissory notes, shares of the common stock of the Corporation or such other
consideration and method of payment for the Shares as may be permitted under
applicable state and federal laws.

                  6.3 EXERCISE OF OPTIONS.

                           6.3.1 Each Option granted under this Plan shall be
exercisable at such times and under such conditions as may be
determined by the Committee at the time of the grant of the Option and as shall
be permissible under the terms of the Plan; provided, however, in no event shall
an Incentive Stock Option be exercisable after the expiration of ten (10) years
from the date it is granted, and in the case of an Optionee owning (within the
meaning of Code Section 425(d)), at the time an Incentive Stock Option is
granted, more than ten percent (10%) of the total combined voting power of all
classes of stock of the Corporation or of its parent or Subsidiaries, such
Incentive Stock Option shall not be exercisable later than five (5) years after
the date of grant.

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<PAGE>

                           6.3.2 An Optionee may purchase less than the total
number of Shares for which the Option is exercisable, provided that
a partial exercise of an Option may not be for less than One Hundred (100)
Shares and shall not include any fractional shares.

                  6.4 NONTRANSFERABILITY OF OPTIONS. All Options granted under
this Plan shall be nontransferable, either voluntarily or by operation of law,
otherwise than by will or the laws of descent and distribution, and shall be
exercisable during the Optionee's lifetime only by such Optionee.

                  6.5 EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP.
Except as otherwise determined by the Committee in connection with the grant of
Nonqualified Options, the effect of termination of an Optionee's employment or
other relationship with the Corporation on such Optionee's rights to acquire
Shares pursuant to the Plan shall be as follows:

                           6.5.1 TERMINATION FOR OTHER THAN DEATH, DISABILITY OR
CAUSE. If an Optionee ceases to be employed by, or ceases to have a relationship
with, the Corporation for any reason other than for death, disability or cause,
such Optionee's Options shall expire not later than three (3) months thereafter.
During such three (3) month period and prior to the expiration of the Option by
its terms, the Optionee may exercise any Option granted to him, but only to the
extent such Options were exercisable on the date of termination of his
employment or relationship and except as so exercised, such Options shall expire
at the end of such three (3) month period unless such Options by their terms
expire before such date. Notwithstanding the foregoing, in the event the
Optionee accepts a position with a business that competes directly or indirectly
with the Corporation, the Options shall terminate effective as of the Optionee's
acceptance of such position. The decision as to whether a termination for a
reason other than death, disability or cause has occurred, or the Optionee has
accepted a position with a competing business, shall be made by the Committee,
whose decision shall be final and conclusive, except that employment shall not
be considered terminated in the case of sick leave or other bona fide leave of
absence approved by the Corporation.

                           6.5.2 DEATH OR DISABILITY. If an Optionee ceases to
be employed by, or ceases to have a relationship with, the Corporation by reason
of death or disability, such Optionee's Options shall expire not later than one
(1) year thereafter. During such one (1) year period and prior to the expiration
of the Option by its terms, the Optionee may exercise any Option granted to him,
but only to the extent such Options were exercisable on the date the Optionee
ceased to be employed by, or ceased to have a relationship with, the Corporation
by reason of death or disability and except as so exercised, such Options shall
expire at the end of such one (1) year period unless such Options by their terms
expire before such date. The decision as to whether a termination by reason of
death or disability has occurred shall be made by the Committee, whose decision
shall be final and conclusive.

                           6.5.3 TERMINATION FOR CAUSE. If an Optionee's
employment by, or relationship with, the Corporation is terminated for cause,
such Optionee's Option shall expire immediately; provided, however, the
Committee may, in its sole discretion, within thirty (30) days of such
termination, waive the expiration of the Option by giving written notice of such
waiver to the Optionee at such Optionee's last known address. In the event of

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<PAGE>

such waiver, the Optionee may exercise the Option only to such extent, for such
time, and upon such terms and conditions as if such Optionee had ceased to be
employed by, or ceased to have a relationship with, the Corporation upon the
date of such termination for a reason other than death, disability or cause.
Termination for cause shall include termination for insubordination, malfeasance
or gross misfeasance in the performance of duties or conviction of illegal
activity in connection therewith or any conduct detrimental to the interests of
the Corporation or a Subsidiary. The determination of the Committee with respect
to whether a termination for cause has occurred shall be final and conclusive.

                  6.6 WITHHOLDING OF TAXES. As a condition to the exercise, in
whole or in part, of any Options the Board of Directors may in its sole
discretion require the Optionee to pay, in addition to the purchase price of the
Shares covered by the Option an amount equal to any Federal, state or local
taxes that may be required to be withheld in connection with the exercise of
such Option.

                  6.7 NO RIGHTS TO CONTINUED EMPLOYMENT OR RELATIONSHIP. Nothing
contained in this Plan or in any Option Agreement shall obligate the Corporation
to employ or have another relationship with any Optionee for any period or
interfere in any way with the right of the Corporation to reduce such Optionee's
compensation or to terminate the employment of or relationship with any Optionee
at any time.

                  6.8 TIME OF GRANTING OPTIONS. The time an Option is granted,
sometimes referred to herein as the date of grant, shall be the day the
Corporation executes the Option Agreement; provided, however, that if
appropriate resolutions of the Committee indicate that an Option is to be
granted as of and on some prior or future date, the time such Option is granted
shall be such prior or future date.

                  6.9 PRIVILEGES OF STOCK OWNERSHIP. No Optionee shall be
entitled to the privileges of stock ownership as to any Shares not actually
issued and delivered to such Optionee. No Shares shall be purchased upon the
exercise of any Option unless and until, in the opinion of the Corporation's
counsel, any then applicable requirements of any laws or governmental or
regulatory agencies having jurisdiction and of any exchanges upon which the
stock of the Corporation may be listed shall have been fully complied with.

                  6.10 SECURITIES LAWS COMPLIANCE. The Corporation will
diligently endeavor to comply with all applicable securities laws before any
Options are granted under the Plan and before any Shares are issued pursuant to
Options. Without limiting the generality of the foregoing, the Corporation may
require from the Optionee such investment representation or such agreement, if
any, as counsel for the Corporation may consider necessary or advisable in order
to comply with the Securities Act of 1933 as then in effect, and may require
that the Optionee agree that any sale of the Shares will be made only in such
manner as is permitted by the Committee. The Committee in its discretion may
cause the Shares underlying the Options to be registered under the Securities
Act of 1933, as amended, by the filing of a Form S-8 Registration Statement
covering the Options and Shares underlying such Options. Optionee shall take any
action reasonably requested by the Corporation in connection with registration
or qualification of the Shares under federal or state securities laws.

                                       6

<PAGE>

                  6.11 OPTION AGREEMENT. Each Incentive Stock Option and
Nonqualified Option granted under this Plan shall be evidenced by the
appropriate written Stock Option Agreement ("Option Agreement") executed by the
Corporation and the Optionee in a form substantially the same as the appropriate
form of Option Agreement attached as Exhibit I or II hereto (and made a part
hereof by this reference) and shall contain each of the provisions and
agreements specifically required to be contained therein pursuant to this
Section 6, and such other terms and conditions as are deemed desirable by the
Committee and are not inconsistent with the purpose of the Plan as set forth in
Section 1.

         7. PLAN AMENDMENT AND TERMINATION.

                  7.1 AUTHORITY OF COMMITTEE. The Committee may at any time
discontinue granting Options under the Plan or otherwise suspend, amend or
terminate the Plan and may, with the consent of an Optionee, make such
modification of the terms and conditions of such Optionee's Option as it shall
deem advisable; provided that, except as permitted under the provisions of
Section 5.2, the Committee shall have no authority to make any amendment or
modification to this Plan or any outstanding Option thereunder which would: (i)
increase the maximum number of shares which may be purchased pursuant to Options
granted under the Plan, either in the aggregate or by an Optionee (except
pursuant to Section 5.2); (ii) change the designation of the class of the
employees eligible to receive Incentive Stock Options; (iii) extend the term of
the Plan or the maximum Option period thereunder; (iv) decrease the minimum
Incentive Stock Option price or permit reductions of the price at which shares
may be purchased for Incentive Stock Options granted under the Plan; or (v)
cause Incentive Stock Options issued under the Plan to fail to meet the
requirements of incentive stock options under Code Section 422. An amendment or
modification made pursuant to the provisions of this Section 7 shall be deemed
adopted as of the date of the action of the Committee effecting such amendment
or modification and shall be effective immediately, unless otherwise provided
therein, subject to approval thereof (1) within twelve (12) months before or
after the effective date by stockholders of the Corporation holding not less
than a majority vote of the voting power of the Corporation voting in person or
by proxy at a duly held stockholders meeting when required to maintain or
satisfy the requirements of Code Section 422 with respect to Incentive Stock
Options, and (2) by any appropriate governmental agency. No Option may be
granted during any suspension or after termination of the Plan.

                  7.2 TEN (10) YEAR MAXIMUM TERM. Unless previously terminated
by the Committee, this Plan shall terminate on June 30, 2010, and no Options
shall be granted under the Plan thereafter.

                  7.3 EFFECT ON OUTSTANDING OPTIONS. Amendment, suspension or
termination of this Plan shall not, without the consent of the Optionee, alter
or impair any rights or obligations under any Option theretofore granted.

         8. EFFECTIVE DATE OF PLAN. This Plan shall be effective as of July 1,
2000, the date the Plan was adopted by the Board of Directors, subject to the
approval of the Plan by the affirmative vote of a majority of the issued and
outstanding Shares of common stock of the Corporation represented and voting at
a duly held meeting at which a quorum is present within twelve (12) months
thereafter. The Committee shall be authorized and empowered to make grants of

                                       7

<PAGE>

Options pursuant to this Plan prior to such approval of this Plan by the
stockholders; provided, however, in such event the Option grants shall be made
subject to the approval of both this Plan and such Option grants by the
stockholders in accordance with the provisions of this Section 8.

         9. MISCELLANEOUS PROVISIONS.

                  9.1 EXCULPATION AND INDEMNIFICATION. The Corporation shall
indemnify and hold harmless the Committee from and against any and all
liabilities, costs and expenses incurred by such persons as a result of any act,
or omission to act, in connection with the performance of such persons' duties,
responsibilities and obligations under the Plan, other than such liabilities,
costs and expenses as may result from the gross negligence, bad faith, willful
conduct and/or criminal acts of such persons.

                  9.2 GOVERNING LAW. The Plan shall be governed and construed in
accordance with the laws of the State of Nevada and the Code.

                  9.3 COMPLIANCE WITH APPLICABLE LAWS. The inability of the
Corporation to obtain from any regulatory body having jurisdiction authority
deemed by the Corporation's counsel to be necessary to the lawful issuance and
sale of any Shares upon the exercise of an Option shall relieve the Corporation
of any liability in respect of the non-issuance or sale of such Shares as to
which such requisite authority shall not have been obtained.

                                       8

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