<PAGE>

                                                                     EXHIBIT 4.1
                                                                     -----------
                                                        As Amended April 2, 1999
                                                and approved by the Stockholders
                                                  of the Company on May 11, 1999


                            GEERLINGS & WADE, INC.

                               STOCK OPTION PLAN

1. PURPOSE
   -------

     The purpose of this Stock Option Plan (the "Plan") is to advance the
interests of Geerlings & Wade, Inc. (the "Company") by enhancing the ability of
the Company, and its parent and subsidiaries (if any) to attract and retain able
employees, consultants or advisers to the Company; to reward such individuals
for their contributions; and to encourage such individuals to take into account
the long-term interests of the Company through interests in shares of the
Company's common stock, $.01 par value (the "Stock"). Any employee, consultant,
or adviser selected to receive an award under the Plan is referred to as a
"participant".

     Options granted pursuant to the Plan may be incentive stock options as
defined in section 422 of the Internal Revenue Code of 1986 (as from time to
time amended, the "Code") (any option that is intended so to qualify as an
incentive stock option being referred to herein as an "incentive option"), or
options that are not incentive options, or both.  Except as otherwise expressly
provided with respect to an option grant, no option granted pursuant to the Plan
shall be an incentive option.

2. ADMINISTRATION
   --------------

     The Plan shall be administered by the Board of Directors (the "Board") of
the Company. The Board shall have discretionary authority, not inconsistent with
the express provisions of the Plan, (a) to grant option awards to such eligible
persons as the Board may select; (b) to determine the time or times when awards
shall be granted and the number of shares of Stock subject to each award; (c) to
determine which options are, and which options are not, intended to be incentive
options; (d) to determine the terms and conditions of each award; (e) to
prescribe the form or forms of any instruments evidencing awards and
<PAGE>

any other instruments required under the Plan and to change such forms from
time to time; (f) to adopt, amend, and rescind rules and regulations for the
administration of the Plan; and (g) to interpret the Plan and to decide any
questions and settle all controversies and disputes that may arise in connection
with the Plan.  Such determinations of the Board shall be conclusive and shall
bind all parties.  Subject to Section 9 the Board shall also have the authority,
both generally and in particular instances, to waive compliance by a participant
with any obligation to be performed by him or her under an award, to waive any
condition or provision of an award, and to amend or cancel any award (and if an
award is cancelled, to grant a new award on such terms as the Board shall
specify) except that the Board may not take any action with respect to an
outstanding award that would adversely affect the rights of the participant
under such award without such participant's consent.  Nothing in the preceding
sentence shall be construed as limiting the power of the Board to make
adjustments required by Section 4(c) and Section 6(g).

     The Board may, in its discretion, delegate some or all of its powers with
respect to the Plan to a committee (the "Committee"), in which event all
references (as appropriate) to the Board hereunder shall be deemed to refer to
the Committee. The Committee, if one is appointed, shall consist of at least two
directors. A majority of the members of the Committee shall constitute a quorum,
and all determinations of the Committee shall be made by a majority of its
members. Any determination of the Committee under the Plan may be made without
notice or meeting of the Committee by a writing signed by a majority of the
Committee members. On and after registration of the Stock under the Securities
Exchange Act of 1934 (the "1934 Act"), the Board shall delegate the power to
select directors and officers to receive awards under the Plan and the timing,
pricing, and amount of such awards to a Committee, all members of which shall be
disinterested persons within the meaning of Rule 16b-3 under the 1934 Act and
"outside directors" within the meaning of section 162(m)(4)(c)(i) of the Code.

3. EFFECTIVE DATE AND TERM OF PLAN
   -------------------------------

     The Plan shall become effective on the date on which it is approved by the
shareholders of the Company. Grants of awards under the Plan may be made prior
to that date (but after Board adoption of the Plan), subject to approval of the
Plan by the shareholders.

     No awards shall be granted under the Plan after the completion of ten years
from the date on which the Plan was adopted by the Board, but awards previously
granted may extend beyond that date.

                                      -2-
<PAGE>

4. SHARES SUBJECT TO THE PLAN
   --------------------------

     (a)  Number of Shares.  Subject to adjustment as provided in Section (c), 4
          ----------------
the aggregate number of shares of Stock that may be the subject of awards
granted under the Plan shall be 600,000. If any award granted under the Plan
terminates without having been exercised in full, or upon exercise is satisfied
other than by delivery of Stock, the number of shares of Stock as to which such
award was not exercised shall be available for future grants. No employee shall
be entitled to grants of options in excess of 250,000 shares, subject to
adjustment in accordance with Section 4(c).

     (b)  Shares to be Delivered.  Shares delivered under the Plan shall be
          ----------------------
authorized but unissued Stock, or if the Board so decides in its sole
discretion, previously issued Stock acquired by the Company and held in its
treasury.  No fractional shares of Stock shall be delivered under the Plan.

     (c)  Changes in Stock.  In the event of a stock dividend, stock split
          ----------------
or combination of shares, recapitalization, or other change in the Company's
capital stock, the number and kind of shares of stock or securities of the
Company subject to awards then outstanding or subsequently granted under the
Plan, the exercise price of such awards, the maximum number of shares or
securities that may be delivered under the Plan, and other relevant provisions
shall be appropriately adjusted by the Board, whose determination shall be
binding on all persons.

     The Board may also adjust the number of shares subject to outstanding
awards, the exercise price of outstanding awards, and the terms of outstanding
awards, to take into consideration material changes in accounting practices or
principles, extraordinary dividends, consolidations or mergers (except those
described in Section 6(g)), acquisitions or dispositions of stock or property,
or any other event if it is determined by the Board that such adjustment is
appropriate to avoid distortion in the operation of the Plan, provided that no
such adjustment shall be made in the case of an incentive option, without the
consent of the participant, if it would constitute a modification, extension, or
renewal of the option within the meaning of section 424(h) of the Code.

5. AWARDS; ETC.
   ------------

     Persons eligible to receive awards under the Plan shall be those persons
who, in the opinion of the Board, are in a position to make a significant
contribution to the success of the Company and its subsidiaries. A subsidiary
for purposes of the Plan shall be a corporation in which the Company owns,
directly or indirectly, stock possessing 50% or more of the total combined
voting power of all classes of stock.

                                      -3-
<PAGE>

     Incentive options shall be granted only to "employees" as defined in the
provisions of the Code or regulations thereunder applicable to incentive stock
options.

6. TERMS AND CONDITIONS OF OPTIONS
   -------------------------------

     (a)  Exercise Price of Options.  The exercise price of each option shall be
          -------------------------
determined by the Board but in the case of an incentive option shall not be less
than 100% (110%, in the case of an incentive option granted to a ten-percent
shareholder) of the fair market value of the Stock at the time the option is
granted; nor shall the exercise price be less, in the case of an original issue
of authorized stock, than par value. For this purpose, "fair market value" in
the case of incentive options shall have the same meaning as it does in the
provisions of the Code and the regulations thereunder applicable to incentive
options; and "ten-percent shareholder" shall mean any participant who at the
time of grant owns directly, or by reason of the attribution rules set forth in
section 424(d) of the Code is deemed to own, stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company or of any
of its parent or subsidiary corporations.

     (b)  Duration of Options.  An option shall be exercisable during such
          -------------------
period or periods as the Board may specify. The latest date on which an option
may be exercised (the "Expiration Date") shall be the date which is ten years
(five years, in the case of an incentive option granted to a "ten-percent
shareholder" as defined in (a) above) from the date the option was granted or
such earlier date as may be specified by the Board at the time the option is
granted.

     (c)  Exercise of Options.
          -------------------

     (1)    An option shall become exercisable at such time or times and upon
            such conditions as the Board shall specify. In the case of an option
            not immediately exercisable in full, the Board may at any time
            accelerate the time at which all or any part of the option may be
            exercised.

     (2)    Any exercise of an option shall be in writing, signed by the proper
            person and furnished to the Company, accompanied by (i) such
            documents as may be required by the Board and (ii) payment in full
            as specified below in Section 6(d) for the number of shares for
            which the option is exercised.

     (3)    The Board shall have the right to require that the participant
            exercising the option remit to the Company an amount sufficient to
            satisfy any federal, state, or local withholding tax requirements
            (or make other arrangements satisfactory to the Company with regard
            to such taxes) prior to the delivery of any Stock pursuant to the
            exercise of the option. If permitted by the Board, either at the
            time of the grant of the option or in connection with

                                      -4-
<PAGE>

            exercise, the participant may elect, at such time and in such manner
            as the Board may prescribe, to satisfy such withholding obligation
            by (i) delivering to the Company Stock owned by such individual
            having a fair market value equal to such withholding obligation, or
            (ii) requesting that the Company withhold from the shares of Stock
            to be delivered upon the exercise a number of shares of Stock having
            a fair market value equal to such withholding obligation.

            In the case of an incentive option, the Board may require as a
            condition of exercise that the participant exercising the option
            agree to inform the Company promptly of any disposition (within the
            meaning of section 424(c) of the Code and the regulations
            thereunder) of Stock received upon exercise. In addition, if at the
            time the option is exercised the Board determines that under
            applicable law and regulations the Company could be liable for the
            withholding of any federal or state tax with respect to a
            disposition of the Stock received upon exercise, the Board may
            require as a condition of exercise that the participant exercising
            the option agree to give such security as the Board deems adequate
            to meet the potential liability of the Company for the withholding
            of tax, and to augment such security from time to time in any amount
            reasonably deemed necessary by the Board to preserve the adequacy of
            such security.

     (4)    If an option is exercised by the executor or administrator of a
            deceased participant, or by the person or persons to whom the option
            has been transferred by the participant's will or the applicable
            laws of descent and distribution, the Company shall be under no
            obligation to deliver Stock pursuant to such exercise until the
            Company is satisfied as to the authority of the person or persons
            exercising the option.

     (d)  Payment for and Delivery of Stock.  Stock purchased upon exercise of
          ---------------------------------
an option under the Plan shall be paid for as follows:  (i) in cash, check
acceptable to the Company (determined in accordance with such guidelines as the
Board may prescribe), or money order payable to the order of the Company, or
(ii) if so permitted by the Board (which, in the case of an incentive option,
shall specify such method of payment at the time of grant), (A) through the
delivery of shares of Stock (which, in the case of Stock acquired from the
Company, shall have been held for at least six months unless the Board specifies
a shorter period) having a fair market value on the last business day preceding
the date of exercise equal to the purchase price, or (B) by delivery of a
promissory note of the participant to the Company, such note to be payable on
such terms as are specified by the Board, or (C) by delivery of an unconditional
and irrevocable undertaking by a broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or (D) by any combination of the
permissible forms of payment; provided, that if the Stock delivered

                                      -5-
<PAGE>

upon exercise of the option is an original issue of authorized Stock, at least
so much of the exercise price as represents the par value of such Stock shall be
paid other than with a personal check or promissory note of the person
exercising the option.

     (e)  Delivery of Stock.  A participant shall not have the rights of a
          -----------------
shareholder with regard to awards under the Plan except as to Stock actually
received by him under the Plan.

     The Company shall not be obligated to deliver any shares of Stock (i)
until, in the opinion of the Company's counsel, all applicable federal and state
laws and regulations have been complied with, (ii) if the outstanding Stock is
at the time listed on any stock exchange, until the shares to be delivered have
been listed or authorized to be listed on such exchange upon official notice of
issuance, and (iii) until all other legal matters in connection with the
issuance and delivery of such shares have been approved by the Company's
counsel.  If the sale of Stock has not been registered under the Securities Act
of 1933, as amended, the Company may require, as a condition to exercise of the
award, such representations or agreements as counsel for the Company may
consider appropriate to avoid violation of such Act and may require that the
certificates evidencing such Stock bear an appropriate legend restricting
transfer.

     (f)  Nontransferability of Awards.  No award may be transferred other than
          ----------------------------
by will or by the laws of descent and distribution, and during a participant's
lifetime an award may be exercised only by him or her.

     (g)  Mergers, etc.  In the event of any merger, consolidation, dissolution,
          -------------
or liquidation of the Company, the Board in its sole discretion may, as to any
outstanding awards, make such substitution or adjustment in the aggregate number
of shares reserved for issuance under the Plan and in the number and purchase
price (if any) of shares subject to such awards as it may determine, or
accelerate, amend, or terminate such awards upon such terms and conditions as it
shall provide (which, in the case of the termination of the vested portion of
any award, shall require payment or other consideration which the Board deems
equitable in the circumstances).

7. TERMINATION OF EMPLOYMENT
   -------------------------

     If a participant's employment or other service relationship with the
Company terminates prior to the Expiration Date the following shall apply:

     (a)  Options that are not exercisable immediately prior to the termination
          shall terminate, except that the Board may in its sole discretion
          provide that the participant or beneficiary receive in cash, with
          respect to each share of Stock to which an option relates, the excess
          of (i) the share's fair market

                                      -6-
<PAGE>

          value on the date of the participant's termination, over (ii) the
          option exercise price.

     (b)  To the extent exercisable immediately prior to termination of
          employment or other service, the option shall continue to be
          exercisable thereafter during the period prior to the Expiration Date
          and within 60 days following the termination (180 days in the event
          that a participant's service terminates by reason of death), unless
          the participant's employment or other service is terminated "for
          cause" as defined in (c) below, in which case all awards shall
          terminate immediately.  Except as otherwise provided in an award,
          after completion of the 60-day (or 180-day) period, such awards shall
          terminate to the extent not previously exercised, expired, or
          terminated.

     (c)  The following, as determined by the Board in its reasonable judgment
          shall constitute "cause" termination:  (i) a participant's failure to
          perform, or negligence in the performance of, his or her duties and
          responsibilities to the Company; (ii) a participant's fraud,
          embezzlement or other material dishonesty with respect to the Company;
          or (iii) other conduct by a participant that is harmful to the
          business, interest, or reputation of the Company.

No option shall be exercised or surrendered in exchange for a cash payment after
the Expiration Date.

     In the case of any award, the Board may provide in the case of any award
for post-termination exercise provisions different from those expressly set
forth in this Section 7, including without limitation terms allowing a later
exercise by a former employee, consultant or advisor (or, in the case of a
former employee, consultant or advisor who is deceased, the person or persons to
whom the award is transferred by will or the laws of descent and distribution)
as to all or any portion of the award not exercisable immediately prior to
termination of employment or other service, but in no case may an award be
exercised after the Expiration Date.

8. EMPLOYMENT RIGHTS
   -----------------

     Neither the adoption of the Plan nor the grant of awards shall confer upon
any participant any right to continue as an employee of, or consultant or
adviser to, the Company, its parent, or any subsidiary or affect in any way the
right of the Company, its parent, or a subsidiary to terminate the participant's
relationship at any time.  Except as specifically provided by the Board in any
particular case, the loss of existing or potential profit in awards granted
under this Plan shall not constitute an element of damages in the

                                      -7-
<PAGE>

event of termination of the relationship of a participant even if the
termination is in violation of an obligation of the Company to the participant
by contract or otherwise.

9. EFFECT, DISCONTINUANCE, CANCELLATION, AMENDMENT, AND TERMINATION
   ----------------------------------------------------------------

     Neither adoption of the Plan nor the grant of awards to a participant shall
affect the Company's right to make awards to such participant that are not
subject to the Plan, to issue to such participant Stock as a bonus or otherwise,
or to adopt other plans or arrangements under which Stock may be issued.

     The Board may at any time discontinue granting awards under the Plan.  With
the consent of the participant, the Board may at any time cancel an existing
award in whole or in part and grant another award for such number of shares as
the Board specifies.  The Board may at any time or times amend the Plan or any
outstanding award for the purpose of satisfying the requirements of section 422
of the Code or of any changes in applicable laws or regulations or for any other
purpose that may at the time be permitted by law, or may at any time terminate
the Plan as to any further grants of awards; except that no such amendment shall
adversely affect the rights of any participant (without his or her consent)
under any award previously granted.

                                      -8-