Document:

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                                                                   Exhibit 4.2

                                          Print Name:_________________________

                             SSP SOLUTIONS, INC.
                      2001 EMPLOYEE STOCK PURCHASE PLAN

                            SUBSCRIPTION AGREEMENT

            FOR PARTICIPATION COMMENCING WITH THE OFFERING PERIOD
                      FROM ____________ TO ____________

      The SSP Solutions, Inc. 2001 Employee Stock Purchase Plan (the "Plan")
provides Eligible Employees with an opportunity to voluntarily purchase Shares
of Common Stock of SSP Solutions, Inc. (the "Company") at a discount. Attached
to this Subscription Agreement as Appendix A is a complete copy of the Plan.
Capitalized terms used in this Subscription Agreement have the same meanings
given to them in the Plan. If you are an Eligible Employee and would like to
begin to participate in the Plan commencing with the Offering Period stated
above, you must complete this Subscription Agreement and file it with the
Company on or prior to [_________________].

DEFERRAL ELECTION. If you are an Eligible Employee and elect to participate in
the Plan commencing with the Offering Period stated above, check the appropriate
space below and indicate the level of Contributions that are to be deducted from
your Compensation (excluding bonuses) and from your bonuses (if any).

____  Flat Dollar Amount - I hereby authorize the Company to deduct from each of
      my paychecks after this form becomes effective, for the purchase of Common
      Stock under the Plan, the following dollar amount. I understand that if
      the dollar amount I have indicated exceeds 10% of any paycheck, my
      contribution from such paycheck will be limited to 10% of such paycheck.

            $__________________
OR

____  Percentage of Compensation - In each of the following blanks, designate a
      whole number from 1% to 10%. I hereby authorize the Company to deduct from
      each of my paychecks after this form becomes effective, for the purchase
      of Common Stock under the Plan, the following amount(s):

            _____% of my base salary or wages; and

            _____% of my bonuses, if any.

                                      -1-
<PAGE>
REPRESENTATIONS:

      I understand that:

      1. My Contributions are subject to certain limits under the Plan.

      2. Once this Subscription Agreement becomes effective, payroll deductions
shall begin as of the first day of the payroll period that coincides with or
immediately follows the first day of the Offering Period.

      3. Once this Subscription Agreement becomes effective, it will remain
effective for subsequent Offering Periods unless I withdraw from participation
in the Plan or become ineligible to participate in the Plan. However, to the
extent allowed under the Plan, I may change my level of Contributions by filing
a Change in Contributions form in accordance with the terms of the Plan.

BENEFICIARY DESIGNATION.  Please initial the appropriate space below:

____  I hereby acknowledge that I have read and completed the Designation of
      Beneficiary form attached hereto.

____  I hereby acknowledge that I have already filed a Designation of
      Beneficiary form under the Plan and that at this time I do not wish to
      change the designation of beneficiary made therein.

CONSENT OF SPOUSE.  Please initial the appropriate space below:

____ I hereby represent to the Company that I am not married.

____  I hereby represent to the Company that I am married and that my spouse has
      executed the attached Consent of Spouse.

SIGNATURE. I hereby agree to be bound by the terms of the Plan, acknowledge
receipt of a copy of the Plan and related materials, and authorize the election,
payroll deductions, and beneficiary designation (if applicable) specified above.
In addition, I hereby acknowledge that I have been advised to review with my own
legal and tax advisors the federal, state, local and foreign tax and other
consequences of my participation in the Plan, and that I am relying solely on
such advisors or my own personal knowledge of such matters and not on any
statements or representations of SSP Solutions, Inc. or any of its agents.

--------------------------------         -------------------------------
Signature                                 Date

--------------------------------         -------------------------------
Print Name                                Social Security Number

                                      -2-
<PAGE>
                             SSP SOLUTIONS, INC.
                      2001 EMPLOYEE STOCK PURCHASE PLAN

                              CONSENT OF SPOUSE

      I, the spouse of ___________________________________, have read and
approved the foregoing SSP Solutions, Inc. 2001 Employee Stock Purchase Plan
Subscription Agreement for participation in the Plan commencing with the
Offering Period from ___________________ to ___________________. In
consideration of the granting of the right to my spouse to participate in the
Plan as an Eligible Employee, I hereby appoint my spouse as my attorney-in-fact
with respect to the exercise of any rights under the Subscription Agreement or
the Plan and agree to be bound by the provisions of the Subscription Agreement
and the Plan insofar as I may have any rights under the Subscription Agreement
or the Plan or in any securities issued pursuant thereto, under the community
property laws or similar laws relating to marital property in effect in the
state of our residence as of the date of the signing of the Subscription
Agreement.

Dated: ____________________________

                                    ___________________________________________
                                    Signature

                                    ___________________________________________
                                    Print Name
<PAGE>
                             SSP SOLUTIONS, INC.
                      2001 EMPLOYEE STOCK PURCHASE PLAN

                       DESIGNATION OF BENEFICIARY FORM

      I am a Participant in the SSP Solutions, Inc. 2001 Employee Stock Purchase
Plan (the "Plan"). Pursuant to Section 13 of the Plan, I hereby designate the
following individual(s) (indicate relationship, name and Social Security Number
below) as beneficiary of my Account with regard to the percentage I have
indicated below:

My                ,                       and/otherwise, SS#              ,
   ---------------  -----------------------------------     ------------   ----%
      (relationship)          (Legal Name)

My                ,                       and/otherwise, SS#              ,
   ---------------  -----------------------------------     ------------   ----%
      (relationship)          (Legal Name)

My                ,                       and/otherwise, SS#              ,
   ---------------  -----------------------------------     ------------   ----%
      (relationship)          (Legal Name)

      I am presently _____ Non-Married / ______ Married. If I am married and I
have not designated above my spouse as beneficiary of 100% of my Account, my
spouse has executed the following consent:

      Consent of Spouse - I, the spouse of the undersigned participant in the
Plan, hereby acknowledge and voluntarily consent to the above designation of
beneficiary of my spouse's Account. I hereby agree to release and discharge SSP
Solutions, Inc. from liability for acting pursuant to this consent.

      Signature of Spouse of Participant:
                                          ------------------------------------

      Print Name of Spouse of Participant:
                                           -----------------------------------

      Date:
            -----------------------------
      By my execution of this Designation of Beneficiary Form, I hereby make the
foregoing designation of beneficiary and revoke all prior designations of
beneficiaries, if any, effective as of the later of the date set forth below or
the date of my spouse's execution of the above consent.

-----------------------------------      ------------------------------------
Signature                                 Date

-----------------------------------      ------------------------------------
Print Name                                Social Security Number
<PAGE>
                                          Print Name:_________________________

                             SSP SOLUTIONS, INC.
                      2001 EMPLOYEE STOCK PURCHASE PLAN

                         CHANGE IN CONTRIBUTIONS FORM

      I am a Participant in the SSP Solutions, Inc. (the "Company") 2001
Employee Stock Purchase Plan (the "Plan"). I hereby elect to change the amount
or level of future Contributions to be deducted from my Compensation and
bonuses, if any, as follows:

____  FLAT DOLLAR AMOUNT - I hereby authorize the Company to deduct from each of
      my paychecks after this form becomes effective, for the purchase of Common
      Stock under the Plan, the following dollar amount. I understand that if
      the dollar amount I have indicated exceeds 10% of any paycheck, my
      contribution from such paycheck will be limited to 10% of such paycheck..
      $__________________
OR

____  PERCENTAGE OF COMPENSATION AND BONUSES - In each of the following blanks,
      designate a whole number from 1% to 10%. I hereby authorize the Company to
      deduct from each of my paychecks after this form becomes effective, for
      the purchase of Common Stock under the Plan, the following amount(s):

            _____% of my base salary or wages;

            _____% of my bonuses, if any.

REPRESENTATIONS:   I understand that:

      1.    My Contributions are subject to certain limits under the Plan.

      2. This change in Contributions will become effective as soon as
administratively practicable after the Company's receipt of this Change in
Contributions Form, and that pursuant to the Plan I may only file two Change in
Contributions Forms (including this Change in Contributions Form) during this
Offering Period.

      3. Once this change in Contributions becomes effective, it will remain
effective for subsequent Purchase Periods unless my Plan participation
terminates or until I file a Withdrawal Form or a new Change in Contributions
Form in accordance with the terms of the Plan.

_____________________________________     _____________________________________
Signature                                 Date

_____________________________________     _____________________________________
Print Name                                Social Security Number
<PAGE>
                             SSP SOLUTIONS, INC.
                      2001 EMPLOYEE STOCK PURCHASE PLAN

                               WITHDRAWAL FORM

      I am a Participant in the SSP Solutions, Inc. (the "Company") 2001
Employee Stock Purchase Plan (the "Plan"). I hereby elect to withdraw from
participation in the Plan by revoking my Subscription Agreement and terminating
and withdrawing my Contributions.

      I understand that such termination will become effective, and my
Contributions will be refunded, as soon as administratively practicable after
the Company's receipt of this Withdrawal Form.

      I also understand that I may not elect again to participate in the Plan
during this Offering Period, but that, subject to Section 12(b) of the Plan, I
may participate in succeeding Offering Periods if I meet the then applicable
eligibility and participation requirements and execute and file a new
Subscription Agreement with the Company.

_____________________________________     _____________________________________
Signature                                 Date

_____________________________________     _____________________________________
Print Name                                Social Security Number<PAGE>
                                                                     Exhibit 4.3

                           BIZ INTERACTIVE ZONE, INC.
                             2000 STOCK OPTION PLAN

1.       ESTABLISHMENT, PURPOSE AND TERM OF PLAN.

         1.1      ESTABLISHMENT. The BIZ Interactive Zone, Inc. 2000 Stock
Option Plan (the "Plan") is hereby established effective as of October 9, 2000.

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

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

2.       DEFINITIONS AND CONSTRUCTION.

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

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

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

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

                  (d)      "Company" means BIZ Interactive Zone, a Delaware
         corporation, or any successor corporation thereto.

                  (e)      "Consultant" means a person engaged to provide
         consulting or advisory services (other than as an Employee or a
         Director) to a Participating Company, provided that the identity of
         such person, the nature of such services or the entity to which such
         services are provided would not preclude the Company from offering or
         selling securities to such person pursuant to the Plan in reliance on
         either the exemption from registration provided by Rule 701 under the

                                      -1-
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         Securities Act or, if the Company is required to file reports pursuant
         to Section 13 or 15(d) of the Exchange Act, registration on a Form S-8
         Registration Statement under the Securities Act.

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

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

                  (h)      "Employee" means any person treated as an employee
         (including an Officer or a Director who is also treated as an employee)
         in the records of a Participating Company and, with respect to any
         Incentive Stock Option granted to such person, who is an employee for
         purposes of Section 422 of the Code; provided, however, that neither
         service as a Director nor payment of a director's fee shall be
         sufficient to constitute employment for purposes of the Plan. The
         Company shall determine in good faith and in the exercise of its
         discretion whether an individual has become or has ceased to be an
         Employee and the effective date of such individual's employment or
         termination of employment, as the case may be. For purposes of an
         individual's rights, if any, under the Plan as of the time of the
         Company's determination, all such determinations by the Company shall
         be final, binding and conclusive, notwithstanding that the Company or
         any court of law or governmental agency subsequently makes a contrary
         determination.

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

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

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

                           (ii)     If, on such date, the Stock is not listed on
                  a national or regional securities exchange or market system,
                  the Fair Market Value of a share of Stock shall be as
                  determined by the Board in good faith without regard to any
                  restriction other than a restriction which, by its terms, will
                  never lapse.

                  (k)      "Incentive Stock Option" means an Option intended to

         be (as set forth in the Option Agreement) and which qualifies as an
         incentive stock option within the meaning of Section 422(b) of the
         Code.

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

                                      -2-
<PAGE>
                  (m)      "Nonstatutory Stock Option" means an Option not
         intended to be (as set forth in the Option Agreement) or which does not
         qualify as an Incentive Stock Option.

                  (n)      "Officer" means any person designated by the Board as
         an officer of the Company.

                  (o)      "Option" means a right to purchase Stock pursuant to
         the terms and conditions of the Plan. An Option may be either an
         Incentive Stock Option or a Nonstatutory Stock Option.

                  (p)      "Option Agreement" means a written agreement between
         the Company and an Optionee setting forth the terms, conditions and
         restrictions of the Option granted to the Optionee and any shares
         acquired upon the exercise thereof. An Option Agreement may consist of
         a form of "Notice of Grant of Stock Option" and a form of "Stock Option
         Agreement" incorporated therein by reference, or such other form or
         forms as the Board may approve from time to time.

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

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

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

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

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

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

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

                                      -3-
<PAGE>
                  (x)      "Stock" means the common stock of the Company, as
         adjusted from time to time in accordance with Section 4.2.

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

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

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

3. ADMINISTRATION.

         3.1      ADMINISTRATION BY THE BOARD. The Plan shall be administered by
the Board. All questions of interpretation of the Plan or of any Option shall be
determined by the Board, and such determinations shall be final and binding upon
all persons having an interest in the Plan or such Option.

         3.2      AUTHORITY OF OFFICERS. Any Officer shall have the authority to
act on behalf of the Company with respect to any matter, right, obligation,
determination or election which is the responsibility of or which is allocated
to the Company herein, provided the Officer has apparent authority with respect
to such matter, right, obligation, determination or election.

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

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

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

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

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

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

                                      -4-
<PAGE>
                  (f)      to amend, modify, extend, cancel or renew any Option
         or to waive any restrictions or conditions applicable to any Option or
         any shares acquired upon the exercise thereof;

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

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

                  (i)      to correct any defect, supply any omission or
         reconcile any inconsistency in the Plan or any Option Agreement and to
         make all other determinations and take such other actions with respect
         to the Plan or any Option as the Board may deem advisable to the extent
         not inconsistent with the provisions of the Plan or applicable law.

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

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

4.       SHARES SUBJECT TO PLAN.

         4.1      MAXIMUM NUMBER OF SHARES ISSUABLE. Subject to. adjustment as
provided in Section 4.2, the maximum aggregate number of shares of Stock that
may be issued under the Plan shall be Three Million Six Hundred Thousand
(3,600,000) and shall consist of authorized but unissued or reacquired shares of
Stock or any combination thereof. If an outstanding Option for any reason
expires or is terminated or canceled or if shares of Stock are acquired upon the
exercise of an Option subject to a Company repurchase option and are repurchased
by the Company at the Optionee's exercise price, the shares of Stock allocable
to the unexercised portion of such Option or such repurchased shares of Stock
shall again be available for issuance under the Plan. However, except as
adjusted pursuant to Section 4.2, in no event shall more than Three Million Six
Hundred Thousand (3,600,000) shares of Stock be available for issuance pursuant
to the exercise of Incentive Stock Options (the "750 Share Issuance Limit").
Notwithstanding the foregoing, at any such time as the offer and sale of
securities pursuant to the

                                      -5-
<PAGE>
Plan is subject to compliance with Section 260.140.45 of Title 10 of the
California Code of Regulations ("Section 260.140.45"), the total number of
shares of Stock issuable upon the exercise of all outstanding Options (together
with options outstanding under any other stock option plan of the Company) and
the total number of shares provided for under any stock bonus or similar plan of
the Company shall not exceed thirty percent (30%) (or such other higher
percentage limitation as may be approved by the shareholders of the Company
pursuant to Section 260.140.45) of the then outstanding shares of the Company as
calculated in accordance with the conditions and exclusions of Section
260.140.45.

         4.2      ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. In the event of
any stock dividend, stock split, reverse stock split, recapitalization,
combination, reclassification or similar change in the capital structure of the
Company, appropriate adjustments shall be made in the number and class of shares
subject to the Plan and to any outstanding Options, in the ISO Share Issuance
Limit set forth in Section 4.1, and in the exercise price per share of any
outstanding Options. If a majority of the shares which are of the same class as
the shares that are subject to outstanding Options are exchanged for, converted
into, or otherwise become (whether or not pursuant to an Ownership Change Event,
as defined in Section 8.1) shares of another corporation (the "New Shares"), the
Board may unilaterally amend the outstanding Options to provide that such
Options are exercisable for New Shares. In the event of any such amendment, the
number of shares subject to, and the exercise price per share of, the
outstanding Options shall be adjusted in a fair and equitable manner as
determined by the Board, in its discretion. Notwithstanding the foregoing, any
fractional share resulting from an adjustment pursuant to this Section 4.2 shall
be rounded down to the nearest whole number, and in no event may the exercise
price of any Option be decreased to an amount less than the par value, if any,
of the stock subject to the Option. The adjustments determined by the Board
pursuant to this Section 4.2 shall be final, binding and conclusive.
Notwithstanding the foregoing, no adjustment shall be made under this Section
4.2 as a result of the reclassification of the outstanding shares of the
Company's Common Stock into Series A Preferred Stock pursuant to the
recapitalization of the Company authorized by the Board of Directors on the date
the Board of Directors first adopted this Plan.

5.       ELIGIBILITY AND OPTION LIMITATIONS.

         5.1      PERSONS ELIGIBLE FOR OPTIONS. Options may be granted only to
Employees, Consultants, and Directors. For purposes of the foregoing sentence,
"Employees," "Consultants" and "Directors" shall include prospective Employees,
prospective Consultants and prospective Directors to whom Options are granted in
connection with written offers of an employment or other service relationship
with the Participating Company Group. Eligible persons may be granted more than
one (1) Option. However, eligibility in accordance with this Section shall not
entitle any person to be granted an Option, or, having been granted an Option,
to be granted an additional Option.

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

         5.3      FAIR MARKET VALUE LIMITATION. To the extent that options
designated as Incentive Stock Options (granted under all stock option plans of
the Participating Company . Group, including the Plan) become exercisable by an
Optionee for the first time during any calendar year for stock having a Fair
Market Value greater than One Hundred Thousand Dollars ($100,000), the portions
of such options which exceed such amount shall be treated as Nonstatutory Stock
Options. For purposes of this Section 5.3, options designated as Incentive Stock
Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of stock shall be determined as of the time the option
with respect to

                                      -6-
<PAGE>
such stock is granted. If the Code is amended to provide for a different
limitation from that set forth in this Section 5.3, such different limitation
shall be deemed incorporated herein effective as of the date and with respect to
such Options as required or permitted by such amendment to the Code. If an
Option is treated as an Incentive Stock Option in part and as a Nonstatutory
Stock Option in part by reason of the limitation set forth in this Section 5.3,
the Optionee may designate which portion of such Option the Optionee is
exercising. In the absence of such designation, the Optionee shall be deemed to
have exercised the Incentive Stock Option portion of the Option first. Separate
certificates representing each such portion shall be issued upon the exercise of
the Option.

6.       TERMS AND CONDITIONS OF OPTIONS.

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

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

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

         6.3      PAYMENT OF EXERCISE PRICE.

                  (a)      FORMS OF CONSIDERATION AUTHORIZED. Except as
         otherwise provided below, payment of the exercise price for the number
         of shares of Stock being purchased pursuant to any Option shall be made
         (i) in cash, by check or cash equivalent, (ii) by tender to the
         Company, or attestation to the ownership, of shares of Stock owned by
         the Optionee having a Fair Market Value not less than the exercise
         price, (iii) by delivery of a properly executed notice together with

                                      -7-
<PAGE>
         irrevocable instructions to a broker providing for the assignment to
         the Company of the proceeds of a sale or loan with respect to some or
         all of the shares being acquired upon the exercise of the Option
         (including, without limitation, through an exercise complying with the
         provisions of Regulation T as promulgated from time to time by the
         Board of Governors of the Federal Reserve System) (a "Cashless
         Exercise"), (iv) provided that the Optionee is an Employee (unless
         otherwise not prohibited by law, including, without limitation, any
         regulation promulgated by the Board of Governors of the Federal Reserve
         System) and in the Company's sole discretion at the time the Option is
         exercised, by delivery of the Optionee's promissory note in a form
         approved by the Company for the aggregate exercise price, provided
         that, if the Company is incorporated in the State of Delaware, the
         Optionee shall pay in cash that portion of the aggregate exercise price
         not less than the par value of the shares being acquired, (v) by such
         other consideration as may be approved by the Board from time to time
         to the extent permitted by applicable law, or (vi) by any combination
         thereof. The Board may at any time or from time to time, by approval of
         or by amendment to the standard forms of Option Agreement described in
         Section 7, or by other means, grant Options which do not permit all of
         the foregoing forms of consideration to be used in payment of the
         exercise price or which otherwise restrict one or more forms of
         consideration.

                  (b)      LIMITATIONS ON FORMS OF CONSIDERATION.

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

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

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

         6.4      TAX WITHHOLDING. The Company shall have the right, but not the
obligation, to deduct from the shares of Stock issuable upon the exercise of an
Option, or to accept from the Optionee the tender of, a number of whole shares
of Stock having a Fair Market Value, as determined by the Company, equal to all
or any part of the federal, state, local and foreign taxes, if any, required by
law to be withheld

                                      -8-
<PAGE>
by the Participating Company Group with respect to such Option or the shares
acquired upon the exercise thereof. Alternatively or in addition, in its
discretion, the Company shall have the right to require the Optionee, through
payroll withholding, cash payment or otherwise, including by means of a Cashless
Exercise, to make adequate provision for any such tax withholding obligations of
the Participating Company Group arising in connection with the Option or the
shares acquired upon the exercise thereof. The Fair Market Value of any shares
of Stock withheld or tendered to satisfy any such tax withholding obligations
shall not exceed the amount determined by the applicable minimum statutory
withholding rates. The Company shall have no obligation to deliver shares of
Stock or to release shares of Stock from an escrow established pursuant to the
Option Agreement until the Participating Company Group's tax withholding
obligations have been satisfied by the Optionee.

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

         6.6      EFFECT OF TERMINATION OF SERVICE.

                  (a)      OPTION EXERCISABILITY. Subject to earlier termination
         of the Option as otherwise provided herein and unless otherwise
         provided by the Board in the grant of an Option and set forth in the
         Option Agreement, an Option shall be exercisable after an Optionee's
         termination of Service only during the applicable time period
         determined in accordance with this Section 6.6 and thereafter shall
         terminate:

                  (b)      DISABILITY. If the Optionee's Service terminates
         because of the Disability of the Optionee, the Option, to the extent
         unexercised and exercisable on the date on which the Optionee's Service
         terminated,, may be exercised by the Optionee (or the Optionee's
         guardian or legal representative) at any time prior to the expiration
         of twelve (12) months (or such longer period of time as determined by
         the Board, in its discretion) after the date on which the Optionee's
         Service terminated, but in any event no later than the date of
         expiration of the Option's term as set forth in the Option Agreement
         evidencing such Option (the "Option Expiration Date").

                           (i)      DEATH. If the Optionee's Service terminates
                  because of the death of the Optionee, the Option, to the
                  extent unexercised and exercisable on the date on which the
                  Optionee's Service terminated, may be exercised by the
                  Optionee's legal representative or other person who acquired
                  the right to exercise the Option by reason of the Optionee's
                  death at any time prior to the expiration of twelve (12)
                  months (or such longer period of time as determined by the
                  Board, in its discretion) after the date on which the
                  Optionee's Service terminated, but in any event no later than
                  the Option Expiration Date. The Optionee's Service shall be
                  deemed to have terminated on account of death if the Optionee
                  dies within three (3) months (or such longer period of time as
                  determined by the Board, in its discretion) after the
                  Optionee's termination of Service.

                           (ii)     OTHER TERMINATION OF SERVICE. If the
                  Optionee's Service terminates for any reason, except
                  Disability or death, the Option, to the extent unexercised and
                  exercisable by the Optionee on the date on which the
                  Optionee's Service terminated, may

                                      -9-
<PAGE>
                  be exercised by the Optionee at any time prior to the
                  expiration of three (3) months (or such longer period of time
                  as determined by the Board, in its discretion) after the date
                  on which the Optionee's Service terminated, but in any event
                  no later than the Option Expiration Date.

                  (c)      EXTENSION IF EXERCISE PREVENTED BY LAW.
         Notwithstanding the foregoing, if the exercise of an Option within the
         applicable time periods set forth in Section 6.6(a) is prevented by the
         provisions of Section 10 below, the Option shall remain exercisable
         until three (3) months (or such longer period of time as determined by
         the Board, in its discretion) after the date the Optionee is notified
         by the Company that the Option is exercisable, but in any event no
         later than the Option Expiration Date.

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

         6.7      TRANSFERABILITY OF OPTIONS. During the lifetime of the
Optionee, an Option shall be exercisable only by the Optionee or the Optionee's
guardian or legal representative. No Option shall be assignable or transferable
by the Optionee, except by will or by the laws of descent and distribution.
Notwithstanding the foregoing, to the extent permitted by the Board, in its
discretion, and set forth in the Option Agreement evidencing such Option, a
Nonstatutory Stock Option shall be assignable or transferable subject to the
applicable limitations, if any, described in Section 260.140.41 of Title 10 of
the California Code of Regulations, Rule 701 under the Securities Act, and the
General Instructions to Form S-8 Registration Statement under the Securities
Act. 7. STANDARD FORMS OF OPTION AGREEMENT.

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

         7.2      AUTHORITY TO VARY TERMS. The Board shall have the authority
from time to time to vary the terms of any standard form of Option Agreement
described in this Section 7 either in connection with the grant or amendment of
an individual Option or in connection with the authorization of a new standard
form or forms; provided,. however, that the terms and conditions of any such
new, revised or amended standard form or forms of Option Agreement are not
inconsistent with the terms of the Plan.

8.       CHANGE IN CONTROL.

         8.1      DEFINITIONS.

                  (a)      An "Ownership Change Event" shall be deemed to have
         occurred if any of the following occurs with respect to the Company:
         (i) the direct or indirect sale or exchange in a single or series of
         related transactions by the shareholders of the Company of more than
         fifty percent (50%) of the voting stock of the Company; (ii) a merger
         or consolidation in which the

                                      -10-
<PAGE>
         Company is a party; (iii) the sale, exchange, or transfer of all or
         substantially all of the assets of the Company; or (iv) a liquidation
         or dissolution of the Company.

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

         8.2      EFFECT OF CHANGE IN CONTROL ON OPTIONS. In the event of a
Change in Control, the surviving, continuing, successor, or purchasing
corporation or other business entity or parent thereof, as the case may be (the
"Acquiring Corporation"), may, without the consent of the Optionee, either
assume the Company's rights and obligations under outstanding Options or
substitute for outstanding Options substantially equivalent options for the
Acquiring Corporation's stock. Any Options which are neither assumed or
substituted for by the Acquiring Corporation in connection with the Change in
Control nor exercised as of the date of the Change in Control shall terminate
and cease to be outstanding effective as of the date of the Change in Control.
Notwithstanding the foregoing, shares acquired upon exercise of an Option prior
to the Change in Control and any consideration received pursuant to the Change
in Control with respect to such shares shall continue to be subject to all
applicable provisions of the Option Agreement evidencing such Option except as
otherwise provided in such Option Agreement. Furthermore, notwithstanding the
foregoing, if the corporation the stock of which is subject to the outstanding
Options immediately prior to an Ownership Change Event described in Section
8.1(a)(i) constituting a Change in Control is the surviving or continuing
corporation and immediately after such Ownership Change Event less than fifty
percent (50%) of the total combined voting power of its voting stock is held by
another corporation or by other corporations that are members of an affiliated
group within the meaning of Section 1504(a) of the Code without regard to the
provisions of Section 1504(b) of the Code, the outstanding Options shall not
terminate unless the Board otherwise provides in its discretion.

9.       PROVISION OF INFORMATION.

         At least annually, copies of the Company's balance sheet and income
statement for the just completed fiscal year shall be made available to each
Optionee and purchaser of shares of Stock upon the exercise of an Option. The
Company shall not be required to provide such information to key employees whose
duties in connection with the Company assure them access to equivalent
information. Furthermore, the Company shall deliver to each Optionee such
disclosures as are required in accordance with Rule 701 under the Securities
Act.

                                      -11-
<PAGE>
10.      COMPLIANCE WITH SECURITIES LAW.

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

11.      TERMINATION OR AMENDMENT OF PLAN.

         The Board may terminate or amend the Plan at any time. However, subject
to changes in applicable law, regulations or rules that would permit otherwise,
without the approval of the Company's shareholders, there shall be (a) no
increase. in the maximum aggregate number of shares of Stock that may be issued
under the Plan (except by operation of the provisions of Section 4.2), (b) no
change in the class of persons eligible to receive Incentive Stock Options, and
(c) no other amendment of the Plan that would require approval of the Company's
shareholders under any applicable law, regulation or rule. No termination or
amendment of the Plan shall affect any then outstanding Option unless expressly
provided by the Board. In any event, no termination or amendment of the Plan may
adversely affect any then outstanding Option without the consent of the
Optionee, unless such termination or amendment is required to enable an Option
designated as an Incentive Stock Option to qualify as an Incentive Stock Option
or is necessary to comply with any applicable law, regulation or rule.

12.      SHAREHOLDER APPROVAL.

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

         IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies
that the foregoing sets forth the BIZ Interactive Zone, Inc. 2000 Stock Option
Plan as duly adopted by the Board on October 9, 2000.

                                          /s/ Thomas E. Schiff
                                 -----------------------------------------------
                                 Thomas E. Schiff, Secretary

                                      -12-

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