<PAGE>   1


                                                                   EXHIBIT 10.09

                             CYBERGUARD CORPORATION

                           EMPLOYEE STOCK OPTION PLAN

                                September 4, 1998

     1. PURPOSE

        The purpose of the CyberGuard Corporation Employee Stock Option Plan
(the "Plan") is to promote the long-term growth and performance of CyberGuard
Corporation (the "Corporation") and its affiliates and to attract and retain
outstanding individuals by awarding stock options, stock appreciation rights,
performance awards, restricted stock and/or other stock-based awards.

     2. DEFINITIONS

        The following definitions are applicable to the Plan:

        "Award" means the grant of Options, SARs, Performance Awards, Restricted
Stock or other stock-based award under the Plan.

        "Board" means the Board of Directors of the Corporation.

        "Board Committee" means the Compensation Committee of the Board, or in
lieu thereof, the Board may appoint any committee of at least two directors to
administer the Plan.

        "Change of Control" means any of the events set forth below; PROVIDED,
HOWEVER, that the Board Committee, in its sole discretion, may specify a more
restrictive definition of Change of Control in any Award agreement and, in such
event, the definition of Change of Control set forth in the Award agreement
shall apply to the Award granted under such Award agreement:

        (a) The acquisition in one or more transactions, other than from the
Corporation, by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of either (i) 20% of
the Outstanding Corporation Common Stock or (ii) 20% of the Corporation Voting
Securities; PROVIDED, HOWEVER, that the following shall not constitute a Change
of Control: any acquisition by (1) the Corporation or any of its Subsidiaries,
any employee benefit plan (or related trust) sponsored or maintained by the
Corporation or any of its Subsidiaries, or (2) any corporation with respect to
which, following such acquisition, more than 80% of, respectively, the then
outstanding shares of common stock of such corporation and the combined voting
power of the then outstanding voting securities of such corporation entitled to
vote generally in the election of directors is then beneficially owned, directly
or indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Corporation Common
Stock and Corporation Voting Securities immediately prior to such acquisition in
substantially the same proportion as their ownership, immediately prior to such
acquisition, of the Outstanding Corporation Common Stock and Corporation Voting
Securities, as the case may be; or


<PAGE>   2

        (b) Individuals who constitute the Incumbent Board cease for any reason
to constitute in excess of three-fourths (3/4) of the Board; PROVIDED, HOWEVER,
that any individual becoming a director subsequenT to September 4, 1998 whose
election or nomination for election by the Corporation was approved by a vote of
AT least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office is in connection with an actual or threatened election contest relating
to the election of members of the Board; or

        (c) Approval by the stockholders of the Corporation of a reorganization,
merger or consolidation, unless, following such reorganization, merger or
consolidation, all or substantially all of the individuals and entities who were
the respective beneficial owners of the Outstanding Corporation Common Stock and
Corporation Voting Securities immediately prior to such reorganization, merger
or consolidation, following such reorganization, merger or consolidation
beneficially own, directly or indirectly, more than 80% of, respectively, the
then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such
reorganization, merger or consolidation in substantially the same proportion as
their ownership of the Outstanding Corporation Common Stock and Corporation
Voting Securities immediately prior to such reorganization, merger of
consolidation, as the case may be; or

        (d) Approval by the stockholders of the Corporation of (i) a complete
liquidation or dissolution of the Corporation or (ii) a sale or other
disposition of 60% or more by value of the assets of the Corporation other than
to a corporation with respect to which, following such sale or disposition, more
than 80% of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors is then owned beneficially, directly or
indirectly, by all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Corporation Common Stock
and Corporation Voting Securities immediately prior to such sale or disposition
in substantially the same proportion as their ownership of the Outstanding
Corporation Common Stock and Corporation Voting Securities, as the case may be,
immediately prior to such sale or disposition.

        "Code" means the Internal Revenue Code of 1986, as amended.

        "Commission" means the Securities and Exchange Commission.

        "Common Stock" means the common stock of the Corporation, $.01 par value
per share.

        "Corporation Voting Securities" means the combined voting power of all
outstanding voting securities of the Corporation entitled to vote generally in
the election of directors for the Board.

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

        "Fair Market Value" means, on any date, the closing sale price of one
share of Common Stock, as reported in the NASDAQ National Market System or any
national securities exchange on which the Common Stock is then listed, as
published in the Wall Street Journal or another newspaper of general
circulation, as of such date or, if there were no sales reported as of such
date, as of the last date preceding such date as of which a sale was reported.
In the event that the Common Stock is not listed on the NASDAQ National Market
System or a national securities exchange, Fair Market Value shall be determined
in good faith by the Board Committee in its sole discretion.



<PAGE>   3

        "Grant Date" means the date on which an Option under Section 5.1 hereof
or a SAR under Section 6.1 hereof is granted.

        "Incumbent Board" means the Board as constituted as of September 4,
1998.

        "Non-Statutory Stock Option" means an option to purchase shares of
Common Stock which is not an Incentive Stock Option.

        "Option" means any option to purchase shares of Common Stock granted
under Sections 5.1 and 10.1 hereof.

        "Option Price" means the purchase price of each share of Common Stock
under an Option.

        "Outstanding Corporation Common Stock" means, at any time, the issued
and outstanding shares of Corporation Common Stock.

        "Participant" means any employee or consultant of the Corporation and
its affiliates designated by the Board Committee to receive an Award under the
Plan.

        "Performance Award" means an Award of shares of Common Stock granted
under Section 7 hereof.

        "Performance Period" means the period of time established by the Board
Committee for achievement of certain objectives under Section 7.1 hereof.

        "Restriction Period" means the period of time specified in a Performance
Share Award Agreement or a Restricted Stock Award Agreement, as the case may be,
between the Participant and the Corporation during which the following
conditions remain in effect: (i) certain restrictions on the sale or other
disposition of shares of Common Stock awarded under the Plan, and (ii) subject
to the terms of the applicable agreement, a requirement of continued employment
of the Participant in order to prevent forfeiture of the Award.

        "Retirement" and "Termination upon Retirement" shall be deemed to have
occurred at anytime when all of the following three events (a, b and c) have
occurred:

          (a)  an employee: (i) is terminated without cause, or (ii) resigns his
               or her position with the Corporation, or (iii) resigns for
               reasons of disability; and
          (b)  such termination occurs on or after his or her sixtieth (60th)
               birthday; and
          (c)  either (i) employee has at least ten (10) years of service with
               the Corporation, or (ii) employee has been continuously in the
               employ of the Corporation since July 1, 1996.

This provision shall apply only to employees, not consultants or others (that
is, consultants or others under no circumstances may be deemed to have "retired"
under the Plan.)

        "Stock Appreciation Rights" or "SARs" means the right to receive a cash
payment from the Corporation equal to the excess of the Fair Market Value of a
stated number of shares of Common Stock at the exercise date over a fixed price
for such shares.

        "Subsidiary" means any corporation (other than the Corporation) in an
unbroken chain of corporations beginning with the Corporation if each of the
corporations (other than the last corporation in the chain) owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in the chain.



<PAGE>   4

     3. SHARES SUBJECT TO PLAN

        3.1 SHARES RESERVED UNDER THE PLAN. Subject to adjustment as provided in
Section 3.2, no more than one million four hundred thousand (1,400,000) shares
of Common Stock shall be cumulatively available for the grant of Stock Options
under the Plan. Any Common Stock issued by the Corporation through the
assumption or substitution of outstanding grants from an acquired corporation or
entity shall not reduce the shares available for grants under the Plan. Shares
of Common Stock to be issued pursuant to the Plan may be authorized and unissued
shares, treasury shares, or any combination thereof. Subject to Section 6.2
hereof, if any shares of Common Stock subject to an Award hereunder are
forfeited or any such Award otherwise terminates without the issuance of such
shares of Common Stock to a Participant, or if any shares of Common Stock are
surrendered by a Participant in full or partial payment of the Option Price of
an Option, such shares, to the extent of any such forfeiture, termination or
surrender, shall again be available for grant under the Plan; PROVIDED HOWEVER,
that shares of Common Stock surrendered by a Participant who is subject to
Section 16 of the Exchange Act, or any successor thereto, in payment of the
Option Price, shall be available for grant under the Plan only to Participants
not subject to such Section.

        3.2 ADJUSTMENTS. Subject to Section 12 hereof, the aggregate number of
shares of Common Stock which may be awarded under the Plan and outstanding
Awards shall be adjusted by the Board Committee to reflect a change in the
capitalization of the Corporation, including but not limited to, a stock
dividend or split, recapitalization, reorganization, merger, consolidation,
combination, exchange of shares, spin-off, spin-out or other distribution of
assets to shareholders.

     4. ADMINISTRATION OF PLAN

        4.1 ADMINISTRATION BY THE BOARD. The Plan shall be administered by the
Board Committee; PROVIDED HOWEVER, the Board Committee may delegate some or all
of its authority and responsibility under the Plan with respect to Awards to
Participants who are not subject to Section 16 of the Exchange Act to the Chief
Executive Officer of the Corporation. The Board Committee shall have authority
to interpret the Plan, to establish, amend, and rescind any rules and
regulations relating to the Plan, to prescribe the form of any agreement or
instrument executed in connection herewith, and to make all other determinations
necessary or advisable for the administration of the Plan. All such
interpretations, rules, regulations and determinations shall be conclusive and
binding on all persons and for all purposes. In addition, the Board Committee
shall have authority, without amending the Plan, to grant Awards hereunder to
Participants who are foreign nationals or employed outside the United States or
both, on terms and conditions different from those specified herein as may, in
the sole judgment and discretion of the Board Committee, be necessary or
desirable to further the purpose of the Plan.

        4.2 DESIGNATION OF PARTICIPANTS. Participants shall be selected, from
time to time, by the Board Committee, from those employees and consultants of
the Corporation and its affiliates who, in the opinion of the Board Committee,
have the capacity to contribute materially to the continued growth and
successful performance of the Corporation.

     5. STOCK OPTIONS

        5.1 GRANTS. Options may be granted, from time to time, to such employees
and consultants of the Corporation and its affiliates as may be selected by the
Board Committee. The Option Price shall be determined by the Board Committee
effective on the Grant Date; PROVIDED HOWEVER, that such price shall not


<PAGE>   5

be less than fifty (50%) of the Fair Market Value of a share of Common Stock on
the Grant Date. The number of shares of Common Stock subject to each option
granted to each Participant, the terms of each option, and any other terms and
conditions of an Option granted hereunder shall be determined by the Board
Committee, in its sole discretion, effective on the Grant Date; PROVIDED
HOWEVER, that no option shall be exercisable any later than ten (10) years from
the Grant Date. Each option shall be evidenced by a Stock Option Agreement
between the Participant and the Corporation which shall specify the Option
Price, the term of the Option, the number of shares of Common Stock to which the
Option pertains, the conditions upon which the Option becomes exercisable and
such other terms and conditions as the Board Committee shall determine.

        5.2 PAYMENT OF OPTION PRICE. No shares of Common Stock shall be issued
upon exercise of an Option until full payment of the Option Price therefor by
the Participant. Upon exercise, the Option Price may be paid in cash, in shares
of Common Stock having a Fair Market Value equal to the Option Price, or in any
combination thereof.

        5.3 RIGHTS AS SHAREHOLDERS. Participants shall not have any of the
rights of a shareholder with respect to any shares subject to an Option until
such shares have been issued upon the proper exercise of such Option.

        5.4 TRANSFERABILITY OF OPTIONS. Options granted under the Plan may not
be sold, transferred, pledged, assigned, hypothecated or otherwise disposed of
except by will or by the laws of descent and distribution. All Options granted
to a Participant under the Plan shall be exercisable during the lifetime of such
Participant only by such Participant, his agent, guardian or attorney-in-fact.

        5.5 TERMINATION OF EMPLOYMENT. If a Participant ceases to be an employee
or a consultant of either the Corporation or of any of its affiliates, the
Options granted hereunder shall be exercisable in accordance with the Stock
Option Agreement between the Participant and the Corporation.

     6. STOCK APPRECIATION RIGHTS

        6.1 GRANTS. Stock Appreciation Rights may be granted, from time to time,
to such employees and consultants of the Corporation and its affiliates as may
be selected by the Board Committee. SARs may be granted at the discretion of the
Board Committee either (i) in connection with an Option or (ii) independent of
an Option. The price from which appreciation shall be computed shall be
established by the Board Committee at the Grant Date; PROVIDED HOWEVER, that
such price shall not be less than fifty percent (50%) of the Fair Market Value
of the number of shares of Common Stock subject of the grant on the Grant Date.
In the event the SAR is granted in connection with an Option, the fixed price
from which appreciation shall be computed shall be the Option Price. Each grant
of a SAR shall be evidenced by a Stock Appreciation Rights Agreement between the
Participant and the Corporation which shall specify the type of SAR granted, the
number of SARs, the conditions upon which the SARs vest and such other terms and
conditions as the Board Committee shall determine.

        6.2 EXERCISE OF SARs. SARs may be exercised upon such terms and
conditions as the Board Committee shall determine; PROVIDED HOWEVER, that SARs
granted in connection with Options may be exercised only to the extent the
related Options are then exercisable. Notwithstanding Section 3.1 hereof, upon
exercise of a SAR granted in connection with an Option as to all or some of the
shares subject of such Award, the related Option shall be automatically canceled
to the extent of the number of shares subject of the exercise, and such shares
shall no longer be available for grant hereunder. Conversely, if the related
Option is


<PAGE>   6

exercised as to some or all of the shares subject of such Award, the related SAR
shall automatically be canceled to the extent of the number of shares of the
exercise, and such shares shall no longer be available for grant hereunder.

        6.3 PAYMENT OF EXERCISE. Upon exercise of a SAR, the holder shall be
paid in cash the excess of the Fair Market Value of the number of shares subject
of the exercise over the fixed price, which in the case of a SAR granted in
connection with an Option shall be the Option Price for such, shares.

        6.4 RIGHTS OF SHAREHOLDERS. Participants shall not have any of the
rights of a shareholder with respect to any Options granted in connection with a
SAR until shares have been issued upon the proper exercise of an Option.

        6.5 TRANSFERABILITY OF SARs. SARs granted under the Plan may not be
sold, transferred, pledged, assigned, hypothecated or otherwise disposed of
except by will or by the laws of descent and distribution. All SARs granted to a
Participant under the Plan shall be exercisable during the lifetime of such
Participant only by such Participant, his agent, guardian, or attorney-in-fact.

        6.6 TERMINATION OF EMPLOYMENT. If a Participant ceases to be an employee
or a consultant of either the Corporation or of any of its affiliates, SARs
granted hereunder shall be exercisable in accordance with the Stock Appreciation
Rights Agreement between the Participant and the Corporation.

     7. PERFORMANCE AWARDS

        7.1 AWARDS. Awards of shares of Common Stock may be made, from time to
time, to such employees and consultants of the Corporation and its affiliates as
may be selected by the Board Committee. The release of such shares to the
Participant at the lapse of restriction on the sale or transfer of shares
subject to such Awards shall be contingent upon (i) achievement of such
corporate, sector, division or other objectives during the Performance Period as
shall be established by the Board Committee and (ii) the expiration of the
Restriction Period. Except as provided in the Performance Share Award Agreement
between the Participant and the Corporation, shares subject to such Awards under
this Section 7.1 shall be released to the Participant only after the expiration
of the relevant Restriction Period. Each Award under this Section 7.1 shall be
evidenced by a Performance Share Award Agreement between the Participant and the
Corporation which shall specify the applicable performance objectives, the
Performance Period, the Restriction Period, any forfeiture conditions and such
other terms and conditions as the Board Committee shall determine.

        7.2 STOCK CERTIFICATES. Upon an Award of shares of Common Stock under
Section 7.1 of the Plan, the Corporation shall issue a certificate registered in
the name of the Participant bearing the following legend and any other legend
required by any federal or state securities laws or by the Florida Business
Corporation Act:

          "The sale or other transfer of the shares of stock represented by this
          certificate is subject to certain restrictions set forth in the
          CyberGuard Corporation Employee Stock Option Plan, administrative
          rules adopted pursuant to such Plan and a Performance Share Award
          Agreement between the registered owner and CyberGuard Corporation. A
          copy of the Plan, such rules and such Agreement may be obtained from
          the Secretary of CyberGuard Corporation.


<PAGE>   7

Unless otherwise provided in the Performance Share Award Agreement between the
Participant and the Corporation, such certificates shall be retained by the
Corporation until the expiration of the Restriction Period. Upon the expiration
of the Restriction Period, the Corporation shall (i) cause the removal of the
legend from the certificates for such shares as to which a Participant is
entitled in accordance with the Performance Share Award Agreement between the
Participant and the Corporation and (ii) release such shares to the custody of
the Participant.

         7.3 RIGHTS AS SHAREHOLDERS. Subject to the provisions of the
Performance Share Award Agreement between the Participant and the Corporation,
during the Performance Period, Participants may exercise full voting rights with
respect to all shares awarded thereto under Section 7.1 hereof and shall be
entitled to receive dividends and other distributions paid with respect to those
shares. During the period between the completion of the Performance Period and
the expiration of the Restriction Period, Participants may exercise full voting
rights and shall be entitled to receive dividends and other distributions only
as to the number of shares determined in accordance with the Performance Share
Award Agreement between the Participant and the Corporation.

         7.4 TRANSFERABILITY OF SHARES. Certificates evidencing the shares of
Common Stock awarded under the Plan shall not be sold, exchanged, assigned,
transferred, pledged, hypothecated or otherwise disposed of until the expiration
of the Restriction Period.

         7.5 TERMINATION OF EMPLOYMENT. If a Participant ceases to be an
employee or a consultant of either the Corporation or of one of its affiliates,
the number of shares subject of the Award, if any, to which the Participant
shall be entitled shall be determined in accordance with the Performance Share
Award Agreement between the Participant and the Corporation.

         7.6 TRANSFER OF EMPLOYMENT. If a Participant transfers employment from
one business unit of the Corporation or any of its affiliates to another
business unit during a Performance Period, such Participant shall be eligible to
receive such number of shares of Common Stock as the Board Committee may
determine based upon such factors as the Board Committee in its sole discretion
may deem appropriate.

     8. RESTRICTED STOCK AWARDS

         8.1 AWARDS. Awards of shares of Common Stock subject to such
restrictions as to vesting and otherwise as the Board Committee shall determine,
may be made, from time to time, to employees and consultants of the Corporation
and its affiliates as may be selected by the Board Committee. The Board
Committee may in its sole discretion at the time of the Award or at any time
thereafter provide for the early vesting of such Award prior to the expiration
of the Restriction Period. Each Award under this Section 8.1 shall be evidenced
by a Restricted Stock Award Agreement between the Participant and the
Corporation which shall specify the vesting schedule, any rights of
acceleration, any forfeiture conditions, and such other terms and conditions as
the Board Committee shall determine.

         8.2 STOCK CERTIFICATES. Upon an Award of shares of Common Stock under
Section 8.1 of the Plan, the Corporation shall issue a certificate registered in
the name of the Participant bearing the following legend and any other legend
required by any federal or state securities laws or by the Florida Business
Corporation Act.


<PAGE>   8

                  "The sale or other transfer of the shares of stock represented
                  by this certificate is subject to certain restrictions set
                  forth in the CyberGuard Corporation Employee Stock Option
                  Plan, administrative rules adopted pursuant to such Plan and a
                  Restricted Stock Award Agreement between the registered owner
                  and CyberGuard Corporation. A copy of the Plan, such rules and
                  such agreement may be obtained form the Secretary of
                  CyberGuard Corporation."

Unless otherwise provided in the Restricted Stock Award Agreement between the
Participant and the Corporation, such certificates shall be retained by the
Corporation until the expiration of the Restriction Period. Upon the expiration
of the Restriction Period, the Corporation shall (i) cause the removal of the
legend from the certificates for such shares as to which a Participant is
entitled in accordance with the Restricted Stock Award Agreement between the
Participant and the Corporation and (ii) release such shares to the custody of
the Participant.

         8.3 RIGHTS AS SHAREHOLDERS. During the Restriction Period, Participants
may exercise full voting rights with respect to all shares awarded thereto under
Section 8.1 hereof and shall be entitled to receive dividends and other
distributions paid with respect to those shares.

         8.4 TRANSFERABILITY OF SHARES. Certificates evidencing the shares of
Common Stock awarded under the Plan shall not be sold, exchanged, assigned,
transferred, pledged, hypothecated or otherwise disposed of until the expiration
of the Restriction Period.

         8.5 TERMINATION OF EMPLOYMENT. If a Participant ceases to be an
employee or a consultant of either the Corporation or of any of its affiliates,
the number of shares subject of the Award, if any, to which the Participant
shall be entitled shall be determined in accordance with the Restricted Stock
Award Agreement between the Participant and the Corporation. All remaining
shares as to which restrictions apply at the date of termination of employment
shall be forfeited subject to such exceptions, if any, authorized by the Board
Committee.

     9. OTHER STOCK-BASED AWARDS

         Awards of shares of Common Stock and other awards that are valued in
whole or in part by reference to, or are otherwise based on, Common Stock, may
be made, from time to time, to employees and consultants of the Corporation and
its affiliates as may be selected by the Board Committee. Such Awards may be
made alone or in addition to or in connection with any other Award hereunder.
The Board Committee may in its sole discretion determine the terms and
conditions of any such Award. Each such Award shall be evidenced by an agreement
between the Participant and the Corporation which shall specify the number of
shares of Common Stock subject of the Award, any consideration therefor, any
vesting or performance requirements and such other terms and conditions as the
Board Committee shall determine.

     10. (Omitted Intentionally)

     11. AMENDMENT OR TERMINATION OF PLAN

         Until such time as a Change of Control shall have occurred, the Board
or the Board Committee may amend, suspend or terminate the Plan or any part
thereof from time to time, provided that no change may be


<PAGE>   9

made which would impair the rights of a Participant to whom shares of Common
Stock have theretofore been awarded without the consent of said Participant.

     12. MISCELLANEOUS

         12.1 RIGHTS OF PARTICIPANTS. Nothing in the Plan shall interfere with
or limit in any way the right of the Corporation or any affiliate to terminate
any Participant's employment or consultancy at any time, nor confer upon any
Participant any right to continued employment or consulting status with the
Corporation or any affiliate.

         12.2 TAX WITHHOLDING. The Corporation shall have the authority to
withhold, or to require a Participant to remit to the Corporation, prior to
issuance or delivery of any shares or cash hereunder, an amount sufficient to
satisfy federal, state and a local tax withholding requirements associated with
any Award. In addition, the Corporation may, in its sole discretion, permit a
Participant to satisfy any tax withholding requirements, in whole or in part, by
(i) delivering to the Corporation shares of Common Stock held by such
Participant having a Fair Market Value equal to the amount of the tax or (ii)
directing the Corporation to retain shares of Common stock otherwise issuable to
the Participant under the Plan.

         12.3 STATUS OF AWARDS. Awards hereunder shall not be deemed
compensation for purposes of computing benefits under any retirement plan of the
Corporation or affiliate and shall not affect any benefits under any other
benefit plan now or hereafter in effect under which the availability or amount
of benefits is related to the level of compensation.

         12.4 WAIVER OF RESTRICTIONS. The Board Committee may, in its sole
discretion, based on such factors as the Board Committee may deem appropriate,
waive in whole or in part, any remaining restrictions or vesting requirements in
connection with any Award hereunder.

         12.5 DELEGATION TO MANAGEMENT. The Board Committee may delegate to one
or more officers of the Corporation or a committee of officers the right to
grant Awards hereunder to employees and consultants who are not officers or
directors of the Corporation and to cancel or suspend Awards to employees and
consultants who are not officers or directors of the Corporation.

         12.6 ADJUSTMENT OF AWARDS. Subject to Section 11, the Board Committee
shall be authorized to make adjustments in performance award criteria or in the
terms and conditions of other Awards in recognition of unusual or nonrecurring
events affecting the Corporation or its financial statements or changes in
applicable laws, regulations or accounting principles; provided however, that no
such adjustment shall impair the rights of any Participant without his or her
consent. The Board Committee may also make Awards hereunder in replacement of,
or as alternatives to, Awards previously granted to Participants, including
without limitation, previously granted Options having higher Option Prices and
grants or rights under any other plan of the Corporation or of any acquired
entity. The Board Committee may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Award in the manner and to the
extent it shall deem desirable to carry it into effect. In the event the
Corporation shall assume outstanding employee benefit awards or the right or
obligation to make future such awards in connection with the acquisition of
another corporation or business entity, the Board Committee may, in its
discretion, make such adjustments in the terms of Awards under the Plan as it
shall deem appropriate.



<PAGE>   10

         12.7 CONSIDERATION FOR AWARDS. Except as otherwise required in any
applicable agreement or by the terms of the Plan, Participants under the Plan
shall not be required to make any payment or provide consideration for an Award
other than the rendering of services.

         12.8 EFFECTIVE DATE AND TERM OF PLAN. The Plan shall be effective as of
September 4, 1998. Unless terminated under the provisions of Section 11 hereof,
the Plan shall continue in effect until terminated by the Board.

         Approved by the Board of Directors this 4th day of September, 1998.

                                         Attested:



                                         -----------------------------------