Document:

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                                LOCK-UP AGREEMENT
                                  July 5, 1999

Unitrend, Inc.
4665 W. Bancroft
Toledo, Ohio 43615

Ladies and Gentlemen:

         The Undersigned understands that Unitrend, Inc., a Nevada corporation,
(the "Company") intends to provide for public offering of shares of common stock
of the Company (the "Securities") pursuant to a Registration Statement on Form
S-1 (the "Registration Statement") to be filed with the Securities and Exchange
Commission.

         In consideration of the Company's efforts to offer and sell the
Securities pursuant to the public offering, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Undersigned agrees that he will not, directly or indirectly, sell, offer to
sell, contract to sell, grant any option for the sale of, grant any security
interest in, pledge, margin, hypothecate, or otherwise sell, convey or dispose
of the following shares of the Company's common stock (the "Locked-Up Shares")
or any other Restricted Securities during the Lock-Up Period:

         Five hundred thousand (500,000) presently-uncertificated shares,
subject to all stock splits

         The "Lock-Up Period" shall be the period beginning on the date hereof
and ending at the earliest of:

         (i) the date that Mr. Conrad A.H. Jelinger can publicly sell all or a
         portion of his shares; or

         (ii) 10 months following the effective date of the Prospectus relating
         to the public offering of the Securities.

The "Locked-Up Shares" shall include any securities convertible into or
exchangeable for the Locked-Up Shares, or any interest in such securities or
rights, owned directly by the Undersigned or with respect to which the
Undersigned has the power of disposition, at any time prior to the effective
date of the Registration Statement.

The "Restricted Securities" shall be any of the Company's common stock (the
"Common Stock"), or any options or warrants to purchase any Common Stock, or any
securities convertible into or exchangeable for Common Stock, or any interest in
such securities or rights, owned directly by the Undersigned or with respect to
which the Undersigned has the power of disposition, in any such case whether now
owned or hereafter acquired at any time prior to the effective date of the
Registration Statement, except any subsequently acquired Restricted Securities
that are otherwise subject to lock-up restrictions shall be subject to such
restrictions.
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         The Undersigned also agrees and consents to the entry of stop transfer
instructions with the Company's transfer agent and registrar against the
transfer of any of the Restricted Securities held by the Undersigned. The
Company's Board may in its absolute discretion without notice, release all or
any portion of the securities subject to this Lock-Up Agreement or any similar
agreement executed by any other security holder, and if the Company's Board
releases any securities of any other security holder, securities of the
Undersigned shall not be entitled to release from this Lock-Up Agreement.

         In the event that the Undersigned owns no Common Stock of the Company
at the date hereof or prior to the Effective Date, but has the right to acquire
Common Stock of the Company pursuant to options or warrants, and if the
Undersigned exercises such options or warrants prior to the expiration of the
Lock-Up Period commencing on the Effective Date, he agrees that the Common Stock
purchased on such exercise of options or warrants will be subject to the terms
of this Lock-Up Agreement for the remaining portion of such Lock-Up Period. In
addition, the Undersigned agrees that he will not convey, sell, pledge, margin,
hypothecate or otherwise dispose of such Common Stock pursuant to the exemption
afforded by Rule 701 under the Securities Act of 1933, as amended, during such
Lock-Up Period without the prior written consent of the Company's Board.

         The Undersigned further agrees that he shall not enter into any swap or
other arrangement that transfers or conveys all or a portion of the economic
consequences associated with the ownership of any Common Stock owned by the
Undersigned at the date hereof, or that the Undersigned obtains ownership of
during the Lock-Up Period (regardless of whether any of the transactions are to
be settled by the delivery of Common Stock, other securities, cash or
otherwise), for the Lock-Up Period without the prior written consent of the
Company's Board.

         In the event Undersigned desires or is directed to transfer, convey, or
otherwise dispose of all or any part of his shares in the Company during the
Lock-Up Period he shall deliver written notice of such desire or direction to
the Company's Board, specifying the number of shares he desires or is directed
to dispose of. On receipt of such notice, the Company, in the Board's absolute
discretion, may preemptively buy, and the Undersigned shall sell to the Company
the number of shares set forth in the notice on the terms set forth in this
paragraph. On the death of Undersigned during the Lock-Up Period, the Company
shall buy, and the executor, administrator, or personal representative of the
Undersigned will sell to the Company, all of the shares owned by the Undersigned
at the time of his death at the price and on the terms set forth in this
paragraph. The purchase price shall be two cents ($.02) per share, subject to
all stock splits. It is understood that the purchase price, determined as set
forth above, shall be the Undersigned's basis and value of the purchased shares
for all tax purposes. In the event such value is later increased by any federal
or state taxing authority, any tax liability resulting from such increase shall
be borne by the Undersigned, or his executor, administrator, or personal
representative or as the case may be.

         The Undersigned further agrees that all of the rights, authority and
preemptive provisions granted to the Company's Board pursuant to this Lock-Up
Agreement may be transferred by the Company's Board to any NASD member firm that
participates in the proposed public offering of the Company's securities.

         Certificates for all certificated shares transferred according to this
Agreement, shall be delivered to the receiving party by the transferring party
not later than 15 days after the record
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date of the transfer. Then the transferring party, or his estate, shall cease to
be a shareholder of the Company with respect to such shares.

         Any notice required to be given pursuant to this Agreement shall be
sent, and shall be considered to have been delivered on the date when sent by
prepaid United States registered or certified mail, return receipt requested,
properly addressed to the party to receive it, as follows: Notices to be sent to
the Company shall be addressed to it at 4665 W. Bancroft, Toledo, Ohio 43615,
attention of the President: Notices to be sent to the Undersigned shall be sent
to him at his address as shown on the Company's stock records unless a different
address has been designated in writing.

         This Agreement shall bind and, unless inconsistent with its provisions,
shall insure to the benefit of the executor, administrator, or personal
representative, and the heirs and assigns of the Undersigned.

         This Agreement is executed and is to be performed in Ohio, and shall be
governed by and construed in accordance with the laws of the State of Ohio.

         The Undersigned understands that the Company will undertake the public
offering in reliance upon this Lock-Up Agreement.

                                        Very truly yours,

                                        /s/ Eric V. Jelinger

                                        Eric V. Jelinger

Approved by Unitrend, Inc.:

By: /s/ Conrad A.H. Jelinger
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        President<PAGE>   1
                                                                    EXHIBIT 10.1

                           1999 EQUITY INCENTIVE PLAN

SECTION 1
PURPOSE

The purpose of the 1999 Equity Incentive Plan is to provide a means whereby
Unitrend Inc., a Nevada Corporation (the "Corporation"), may attract able
persons to remain in or to enter the employ of the Corporation, a Parent
Corporation, or a Subsidiary and to provide a means whereby those employees,
directors, officers, and other individuals or entities upon whom the
responsibilities of the successful administration, management, planning, and/or
organization of the Corporation may rest, and whose present and potential
contributions to the welfare of the Corporation, a Parent Corporation or a
Subsidiary are of importance, can acquire and maintain stock ownership, thereby
strengthening their concern for the long-term welfare of the Corporation. A
further purpose of the Plan is to provide such employees and individuals or
entities with additional incentive and reward opportunities designed to enhance
the profitable growth of the Corporation over the long term. Accordingly, the
Plan provides for granting Incentive Stock Options, options which do not
constitute Incentive Stock Options, or any combination of the foregoing, as is
best suited to the circumstances of the particular employee and individual or
entities as provided herein.

SECTION 2
DEFINITIONS

The following definitions shall be applicable during the term of the Plan unless
specifically modified by any paragraph:

(a)      Additional Award means, individually or collectively, a discretionary
         award granted by the Designated Officer.

(b)      Automatic Award means, individually or collectively, an automatic
         Option granted pursuant to the Plan.

(c)      Board means the board of directors of the Corporation.

(d)      Change of Control Value means the amount determined in Clause (i), (ii)
         or (iii), whichever is applicable, as follows: (i) the per share price
         offered to stockholders of the Corporation in any merger,
         consolidation, sale or assets or dissolution transaction, (ii) the
         price per share offered to stockholders of the corporation in any
         tender offer or exchange offer whereby a Corporate Change takes place
         or (iii) if a Corporate Change occurs other than as described in Clause
         (i) or Clause (ii), the fair market value per share determined by the
         Board as of the date determined by the Board to be the date of
         cancellation and surrender of an Option. If the consideration offered
         to stockholders of the Corporation in any transaction described in this
         Paragraph or Paragraphs (d) and (e) of Section 8 consists of anything
         other than cash, the Board shall determine the fair cash equivalent of
         the portion of the consideration offered which is other than cash.

(e)      Code means the Internal Revenue Code of 1986, as amended. Reference in
         the Plan to any Section of the Code shall be deemed to include any
         amendments or successor provisions to such Section and any regulations
         under such Section.

(f)      Common Stock means the common stock of the Corporation.

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(g)      Corporation means Unitrend Inc.

(h)      Corporate Change means one of the following events: (i) the merger,
         consolidation or other reorganization of the Corporation in which the
         outstanding Common Stock is converted into or exchanged for a different
         class of securities of the Corporation, a class of securities of any
         other issuer (except a Subsidiary or Parent Corporation), cash or other
         property other than (a) a merger, consolidation or reorganization of
         the Corporation which would result in the voting stock of the
         Corporation outstanding immediately prior thereto continuing to
         represent (either by remaining outstanding or by being converted into
         voting securities of the surviving entity), in combination with the
         ownership of any trustee or other fiduciary holding securities under an
         employee benefit plan of the Corporation, at least sixty percent (60%)
         of the combined voting power of the voting stock of the Corporation or
         such surviving entity outstanding immediately after such merger,
         consolidation or reorganization of the Corporation, or (b) merger,
         consolidation or reorganization of the Corporation effected to
         implement a recapitalization of the Corporation (or similar
         transaction) in which no person acquires more than forty-nine percent
         (49%) of the combined voting power of the Corporation's then
         outstanding stock; (ii) the sale, lease or exchange of all or
         substantially all of the assets of the Corporation to any other
         corporation or entity (except a Subsidiary or Parent Corporation);
         (iii) the adoption by the stockholders of the Corporation of a plan of
         liquidation and dissolution; (iv) the acquisition (other than
         acquisition pursuant to any other clause of this definition) by any
         person or entity, including without limitation a "group" as
         contemplated by Section 13(d)(3) of the Exchange Act, of beneficial
         ownership, as contemplated by such Section, of more than twenty-five
         percent (25%) (based on voting power) of the Corporation's outstanding
         capital stock or acquisition by a person or entity who currently has
         beneficial ownership which increases such person's or entity's
         beneficial ownership to fifty percent (50%) or more (based on voting
         power) of the Corporation's outstanding capital stock; or (v) as a
         result of or in connection with a contested election of directors, the
         persons who were directors of the Corporation before such election
         shall cease to constitute a majority of the Board. Notwithstanding the
         provisions of clause (iv) above, a Corporate Change shall not be
         considered to have occurred upon the acquisition (other than
         acquisition pursuant to any other clause of the preceding sentence) by
         any person or entity, including without limitation a "group" as
         contemplated by Section 13(d)(3) of the Exchange Act, of beneficial
         ownership, as contemplated by such Section, of more than twenty-five
         percent (25%) (based on voting power) of the Corporation's outstanding
         capital stock or the requisite percentage to increase their ownership
         to fifty percent (50%) resulting from a public offering of securities
         of the Corporation under the Securities Act of 1933, as amended.

(i)      Designated Officer means an officer of the Corporation, such as the
         President or Chief Operating Officer, who is given authority by the
         Board to grant options or make stock grants under the Plan.

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

(k)      Fair Market Value means, as of any specified date, the closing price of
         the Common Stock on the NASDAQ (or, if the Common Stock is not listed
         on such exchange, such other national securities exchange on which the
         Common Stock is then listed) on that date, or if no prices are reported
         on that date, on the last preceding date on which such prices of the
         Common Stock are so reported. If the Common Stock is not then listed on
         any national securities exchange but is traded over the counter at the
         time determination of its Fair Market Value is required to be made
         hereunder, its Fair Market Value shall be deemed to be equal to the
         average between the reported high and low sales prices of Common Stock
         on the most recent date on which Common Stock was publicly traded. If
         the Common Stock is not publicly traded at the time a determination of
         its value is required to be made hereunder, the determination of its
         Fair Market Value shall be made by the Board in such manner as it deems
         appropriate (such determination will be made in good-faith as required
         by Section 422(c)(1) of the Code and may be based on the advice of an
         independent investment banker or appraiser recognized to be expert in
         making such valuations).

(l)      Holder means an individual or entity who has been granted an Award.

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(m)      Incentive Stock Option means an Option within the meaning of Section
         422 of the Code.

(n)      Option means an Award granted under Section 7 of the Plan and includes
         both Incentive Stock Options to purchase Common Stock and Options which
         do not constitute Incentive Stock Options to purchase Common Stock.

(o)      Option Agreement means a written agreement between the Corporation and
         an employee with respect to an Option.

(p)      Optionee means an employee, director, officer, entity or individual who
         has been granted an Option.

(q)      Parent Corporation shall have the meaning set forth in Section 424(e)
         of the Code.

(r)      Plan means the 1999 Equity Incentive Plan.

(s)      Rule 16b-3 means Rule 16b-3 of the General Rules and Regulations of the
         Securities and Exchange Commission under the Exchange Act, as such rule
         is currently in effect or as hereafter modified or amended.

(t)      Subsidiary means a company (whether a corporation, partnership, joint
         venture or other form of entity) in which the Corporation, or a
         corporation in which the Corporation owns a majority of the shares of
         capital stock, directly or indirectly, owns an equity interest of fifty
         percent (50%) or more, except solely with respect to the issuance of
         Incentive Stock Options the term "Subsidiary" shall have the same
         meaning as the term "subsidiary corporation" as defined in Section
         424(f) of the Code.

SECTION 3
EFFECTIVE DATE AND DURATION OF THE PLAN

The Plan shall be effective as of July 5, 1999, the date of its adoption by the
Board, provided that the Plan is approved by the stockholders of the Corporation
within twelve (12) months thereafter. Notwithstanding any provision of the Plan
or of any Option Agreement, no Option shall be exercisable prior to such
stockholder approval. The Plan shall be terminated and no further Awards may be
granted under the Plan after ten (10) years from the date the Plan is adopted by
the Board or the date the Plan is approved by the Corporation's shareholders,
whichever is earlier. Subject to the provisions of Section 9, the Plan shall
remain in effect until all Options granted under the Plan have been exercised or
have expired by reason of lapse of time. Any option exercised before shareholder
approval is obtained must be rescinded if shareholder approval is not obtained
within twelve (12) months before or after the Plan is adopted. Such shares shall
not be counted in determining whether such approval is granted.

SECTION 4
ADMINISTRATION

(a)      Administration of Plan by Board. The Plan shall be administered by the
         Board in compliance with Rule 16b-3. Members of the Board shall abstain
         from participating in and deciding matters which directly affect their
         individual ownership interests under the Plan.

(b)      Powers. Subject to the terms of the Plan, the Board shall elect one or
         several Designated Officers who shall have authority, subject to Board
         approval, to determine which employees, officers, directors,
         individuals or entities shall receive an Additional Award, the time or
         times when such Additional Award shall be made, whether an Incentive
         Stock Option or nonqualified Option shall be granted and the number of
         shares of Common Stock which may be issued under each Option,

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         but no Additional Award shall vest immediately but must vest, in part
         or in whole, at least one year from the time of the Award unless the
         Award is compensation for past services, as determined by the
         Designated Officer and stated in the Agreement with the Holder, then
         the Option shall vest immediately. In making such determinations, the
         Designated Officer may take into account the nature of the services
         rendered by these individuals, their present and potential contribution
         to the success of the Corporation, a Parent Corporation or a
         Subsidiary, and such other factors as the Board in its discretion shall
         deem relevant.

(c)      Additional Powers. The Board shall have such additional powers as are
         delegated to it by the other provisions of the Plan. Subject to the
         express provisions of the Plan, the Board is authorized in its absolute
         discretion, to construe and interpret the Plan and the respective
         agreements executed thereunder, to prescribe such rules and regulations
         relating to the Plan as it may deem advisable to carry out the Plan,
         and to determine the terms, restrictions and provisions of each Award,
         including such terms, restrictions and provisions as shall be requisite
         in the judgment of the Board to cause designated Options to qualify as
         Incentive Stock Options, and to make all other determinations necessary
         or advisable for administering the Plan. The Board may correct any
         defect or supply any omission or reconcile any inconsistency in any
         agreement relating to an Award in the manner and to the extent it shall
         deem expedient to carry it into effect. The determination of the Board
         on the matters referred to in this Section 4 shall be conclusive. The
         Designated Officer, upon making the determination to make an Additional
         Awards, shall first present the Award and its terms to the Board, or a
         committee of the Board as may be designated, for review, and thereafter
         the Board must review all Additional Awards, no later than ninety (90)
         days from the date of the presentation of the Additional Award to the
         Board or Compensation Committee of the Board, and with a majority vote,
         the board may reject such Additional Award in its absolute discretion.
         Such vote must take place within the ninety (90) days from the date of
         the presentment, and written notice must be sent to the Designated
         Officer within fifteen (15) days of the decision to reject the Award.
         If the Designated Officer is a member of the Board, he/she shall not
         vote on rejecting any Additional Awards and shall not impede or
         preclude the Board from examining and voting, in good faith, to reject
         any Additional Award.

(d)      Compliance With Code Section 162(m). In the event the Corporation, a
         Parent Corporation or a Subsidiary becomes a "publicly-held
         corporation" as defined in Section 162(m)(2) of the Code, the
         Corporation may establish a committee of outside directors meeting the
         requirements of Code Section 162(m) to (i) approve the grant of Options
         which might reasonably be anticipated to result in the payment of
         employee remuneration that would otherwise exceed the limit on employee
         remuneration deductible for income tax purposes by the Corporation
         pursuant to Code Section 162(m) and (ii) administer the Plan. In such
         event, the powers reserved to the Board in the Plan shall be exercised
         by such compensation committee. In addition, Options under the Plan
         shall be granted upon satisfaction of the conditions to such grants
         provided pursuant to Code Section 162(m) and any Treasury Regulations
         promulgated thereunder.

SECTION 5
GRANT OF OPTIONS SUBJECT TO THE PLAN

(a)      Automatic Employee Award. All new employees who meet the requirements
         set out below shall receive an award of Two-Hundred Fifty (250)
         Incentive Stock Options or as many as do not exceed the monetary value
         maximum set out in the Code at a price to be determined under Section
         2(k) to be the Fair Market Value at the date of the Award (as adjusted
         by recaptializations, stock splits, reverse stock splits, or any other
         change in the capital structure of the Corporation, or as may be
         changed from time to time by the Board in its sole discretion). If the
         Award does exceed the monetary maximum set in the code, all Options
         awarded above the value stated in the Code shall be non-Incentive Stock
         Options. Options will vest according to the schedule listed below and
         will be exercisable subject to the exercise restrictions set forth
         below.

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         (i)      Requirements for Automatic Employee Award. To receive an
                  Automatic Employee Award the holder must be duly hired to a
                  permanent full-time position. Duly hired shall mean having
                  executed all necessary contracts and agreements with the
                  Corporation as are required by all new employees. Full-time
                  shall mean employment of not less than 35 hours a week and
                  eligible to participating in all full-time employee benefits,
                  including health insurance and other such benefits as the
                  Corporation may implement.

         (ii)     Vesting Schedule. All Automatic Employee Awards shall vest
                  one-third upon the completion of one year of successful
                  employment, and shall continue to vest one-third upon the
                  anniversary date of the employee's date of hire thereafter,
                  representing one additional year of employment until all
                  options are vested.

(b)      Additional Awards. The Designated Officer may from time to time grant
         Additional Awards to one or more employees, directors, officers,
         individuals or entities determined by him or her to be eligible for
         participation in the Plan in accordance with the provisions of Section
         6 of the Plan and subject to Board oversight as specified in Section 4
         of the Plan. No Additional Award shall exceed 5,000 shares in a twelve
         (12) month period, as adjusted by recaptializations, stock splits,
         reverse stock splits, or any other change in the capital structure of
         the Corporation, or as may be changed from time to time by the Board in
         its sole discretion.

(c)      Exercise Alternatives. All options exercised before three (3) years
         from the date of the Award or Additional Award must be exercised in
         cash by the Holder, and the Holder must also pay, in cash, any amount
         required to be withheld by the Code. After an Award or Additional Award
         has been held for three (3) years from the date of Award, the Holder
         may use any exercise alternative offered by the board at that time,
         including, but not limited to, cashless same day exercise.

(d)      Aggregate Award Limits. The aggregate number of shares of Common Stock
         that may be issued under the Plan shall not exceed 12,500,000 shares.
         The total number of shares issuable upon exercise of all outstanding
         Options shall not exceed a number of shares which is equal to 6.25
         percent of the then authorized shares of the Corporation. Any of such
         shares which remain unissued and which are not subject to outstanding
         Options and/or Awards at the termination of the Plan shall cease to be
         subject to the Plan but, until termination of the Plan, the Corporation
         shall at all times reserve a sufficient number of shares to meet the
         requirements of the Plan. Shares shall be deemed to have been issued
         under the Plan only to the extent actually issued and delivered
         pursuant to an Award. To the extent that an Award lapses or the rights
         of its Holder terminate, any shares of Common Stock subject to such
         Award or Grant shall again be available for the grant of an Award. The
         aggregate number of shares which may be issued under the Plan shall be
         subject to adjustment in the same manner as provided in Section 8 of
         the Plan with respect to shares of Common Stock subject to Options then
         outstanding. Separate stock certificates shall be issued by the
         Corporation for those shares acquired pursuant to the exercise of an
         Incentive Stock Option and for those shares acquired pursuant to the
         exercise of any Option which does not constitute an Incentive Stock
         Option.

(e)      Stock Offered. The stock to be offered pursuant to an any Award may be
         authorized but unissued Common Stock or Common Stock previously issued
         and outstanding and reacquired by the Corporation.

SECTION 6
ELIGIBILITY

An Incentive Stock Option Award made pursuant to the Plan may be granted only to
an individual who, at the time of grant, is an employee of the Corporation, a
Parent Corporation or a Subsidiary. An Award of an Option which is not an
Incentive Stock Option may be made to an individual who, at the time of Award,
is an employee of the Corporation, a Parent Corporation or a Subsidiary, or to
an individual who has been identified by the Board or Designated Officer to
receive an Award due to their contribution or service to the

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Corporation, including members of the Board of Directors of the Corporation, a
Parent Corporation or a Subsidiary. An Award made pursuant to the Plan may be
made on more than one occasion to the same person, and such Award may include an
Incentive Stock Option and an Option which is not an Incentive Stock Option, or
any combination thereof. Each Award shall be evidenced by a written instrument
duly executed by or on behalf of the Corporation.

SECTION 7
STOCK OPTIONS

(a)      Stock Option Agreement. Each Option shall be evidenced by an Option
         Agreement between the Corporation and the Optionee which shall contain
         such terms and conditions as may be approved by the Board and agreed
         upon by the Holder. The terms and conditions of the respective Option
         Agreements need not be identical. Each Option Agreement shall specify
         the effect of termination of employment, total and permanent
         disability, retirement or death on the exercisability of the Option.
         Under each Option Agreement, a Holder shall have the right to appoint
         any individual or legal entity in writing as his or her beneficiary
         under the Plan in the event of his death. Such designation may be
         revoked in writing by the Holder at any time and a new beneficiary may
         be appointed in writing on the form provided by the Board for such
         purpose. In the absence of such appointment, the beneficiary shall be
         the legal representative of the Holder's estate.

(b)      Option Period. The term of each Option shall be as specified by the
         Board at the date of grant and shall be stated in the Option Agreement;
         provided, however, that an option may not be exercised more than one
         hundred twenty (120) months from the date it is granted.

(c)      Limitations on Exercise of Option. Any Option granted hereunder shall
         be exercisable at such times and under such conditions as determined by
         the Board and as shall be permissible under the terms of the Plan,
         which shall be specified in the Option Agreement evidencing the Option.

(d)      Special Limitations on Incentive Stock Options. To the extent that the
         aggregate Fair Market Value (determined at the time the respective
         Incentive Stock Option is granted) of Common Stock with respect to
         which Incentive Stock Options are exercisable for the first time by an
         individual during any calendar year under all incentive stock option
         plans of the Corporation (and any Parent Corporation or Subsidiary)
         exceeds One Hundred Thousand Dollars ($100,000) (within the meaning of
         Section 422 of the Code), such excess Incentive Stock Options shall be
         treated as Options which do not constitute Incentive Stock Options. The
         Board shall determine, in accordance with applicable provisions of the
         Code, Treasury Regulations and other administrative pronouncements,
         which of an Optionee's Incentive Stock Options will not constitute
         Incentive Stock Options because of such limitation and shall notify the
         Optionee of such determination as soon as practicable after such
         determination. No Incentive Stock Option shall be granted to an
         individual if, at the time the Option is granted, such individual owns
         stock possessing more than ten percent (10%) of the total combined
         voting power of all classes of stock of the Corporation or of its
         Parent Corporation or a Subsidiary, within the meaning of Section
         422(b)(6) of the Code, unless (i) at the time such Option is granted
         the Option price is at least one hundred ten percent (110%) of the Fair
         Market Value of the Common Stock subject to the Option and (ii) such
         Option by its terms is not exercisable after the expiration of five
         years from the date of grant.

(e)      Option Price. The purchase price of Common Stock issued under each
         Option shall be determined by the Board and shall be stated in the
         Option Agreement, but such purchase price shall, in the case of
         Incentive Stock Options, not be less than the Fair Market Value of
         Common Stock subject to the Option on the date the Option is granted,
         and, in the case of Options which do not constitute Incentive Stock
         Options, not be less than eighty-five percent (85%) of the fair value
         of the stock at the time the option is granted, except that the price
         shall be one hundred ten percent (110%) of the fair value in the case
         of any person or entity who owns stock comprising more than ten percent
         (10%) of the total combined voting power of all classes of stock of the
         Corporation or its Parent Corporation or Subsidiary.

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(f)      Options and Rights in Substitution for Stock Options Made by Other
         Corporations. Options may be granted under the Plan from time to time
         in substitution for stock options held by employees of corporations who
         become, or who became prior to the effective date of the Plan,
         employees of the Corporation, of any Parent Corporation or of any
         Subsidiary as a result of a merger or consolidation of the employing
         corporation with the Corporation, such Parent Corporation or such
         Subsidiary, or the acquisition by the Corporation, a Parent Corporation
         or a Subsidiary of all or a portion of the assets of the employing
         corporation, or the acquisition by the Corporation, a Parent
         Corporation or a Subsidiary of stock of the employing corporation with
         the result that such employing corporation becomes a Subsidiary.

SECTION 8
RECAPITALIZATION OR REORGANIZATION

(a)      Except as hereinafter otherwise provided, Awards shall be subject to
         adjustment by the Board at its discretion as to the number and price of
         shares of Common Stock in the event of changes in the outstanding
         Common Stock by reason of stock dividends, stock splits, reverse stock
         splits, reclassifications, recapitalizations, reorganizations, mergers,
         consolidations, combinations, exchanges or other relevant changes in
         capitalization occurring after the date of the grant of any such
         Options or Common Stock.

(b)      The existence of the Plan and the Awards made hereunder shall not
         affect in any way the right or power of the Board or the stockholders
         of the Corporation to make or authorize any adjustment,
         recapitalization, reorganization or other change in the capital
         structure of the Corporation, a Parent Corporation or a Subsidiary or
         their business, any merger or consolidation of the Corporation, a
         Parent Corporation or a Subsidiary, any issue of debt or equity
         securities having any priority or preference with respect to or
         affecting Common Stock or the rights thereof, the dissolution or
         liquidation of the Corporation, a Parent Corporation or a Subsidiary,
         or any sale, lease, exchange or other disposition of all or any part of
         their assets or business or any other corporate act or proceeding.

(c)      The shares with respect to which Options may be granted are shares of
         Common Stock as presently constituted but if and whenever, prior to the
         expiration of an Option theretofore granted, the Corporation shall
         effect a subdivision or consolidation of shares of Common Stock or the
         payment of a stock dividend on Common Stock without receipt of
         consideration by the Corporation, the number of shares of Common Stock
         with respect to which such Option may thereafter be exercised (i) in
         the event of an increase in the number of outstanding shares shall be
         proportionately increased, and the purchase price per share shall be
         proportionately reduced, and (ii) in the event of a reduction in the
         number of outstanding shares shall be proportionately reduced, and the
         purchase price per share shall be proportionately increased.

(d)      If the Corporation recapitalizes or otherwise changes its capital
         structure, thereafter upon any exercise of an Option theretofore
         granted, the Optionee shall be entitled to purchase under such Option,
         in lieu of the number of shares of Common Stock as to which such Option
         shall then be exercisable, the number and class of shares of stock and
         securities, and the cash and other property to which the Optionee would
         have been entitled pursuant to the terms of the recapitalization if,
         immediately prior to such recapitalization, the Optionee had been the
         holder of such record of the number of shares of Common Stock then
         covered by such Option.

(e)      In the event of a Corporate Change, unless otherwise deemed to be
         impractical by the Board, then no later than (i) two business days
         prior to any Corporate Change referenced in Clause (i), (ii), (iii),
         (v) or (vi) of the definition thereof or (ii) ten business days after
         any Corporate Change referenced in Clause (iv) of the definition
         thereof, the Board, acting in its sole discretion without the consent
         or approval of any Optionee or Grantee, shall act to effect the
         following alternatives with respect to outstanding Options which acts
         may vary among individual Optionees and, with

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<PAGE>   8
         respect to acts taken pursuant to Clause (i) above, may be contingent
         upon effectuation of the Corporate Change: (A) in the event of a
         Corporate Change referenced in Clauses (i), (ii) and (vi) acceleration
         of exercise for all Options then outstanding so that such Options may
         be exercised in full for a limited period of time on or before a
         specified date (before or after such Corporate Change) fixed by the
         Board, after which specified date all unexercised Options and all
         rights of Optionees thereunder shall terminate; (B) in the event of a
         Corporate Change referenced in Clauses (iii), (iv) and (v) require the
         mandatory surrender to the Corporation by selected Optionees of some or
         all of the outstanding Options held by such Optionees (irrespective of
         whether such Options are then exercisable under the provisions of the
         Plan) as of a date (before or after such Corporate Change) specified by
         the Board, in which event the Board shall thereupon cancel such Options
         and pay to each Optionee an amount of cash per share equal to the
         excess, if any, of the Change of Control Value of the shares subject to
         such Option over the exercise price(s) under such Options for such
         shares; (C) in the event of a Corporate Change referenced in Clauses
         (iii), (iv) and (v), make such adjustments to Options then outstanding
         as the Board deems appropriate to reflect such Corporate Change
         (provided, however, that the Board may determine in its sole discretion
         that no adjustment is necessary to Options then outstanding); (D) in
         the event of a Corporate Change referenced in Clauses (iii), (iv) and
         (v), provide that thereafter upon any exercise of an Option theretofore
         granted the Optionee shall be entitled to purchase under such Option,
         in lieu of the number of shares of Common Stock as to which such Option
         shall then be exercisable, the number and class of shares of stock or
         other securities or property (including, without limitation, cash) to
         which the Optionee would have been entitled pursuant to the terms of
         the agreement of merger, consolidation or sale of assets or plan of
         liquidation and dissolution if, immediately prior to such merger,
         consolidation or sale of assets or any distribution in liquidation and
         dissolution of the Corporation, the Optionee had been the holder of
         record of the number of shares of Common Stock then covered by such
         Option; or (E) in the event of a Corporate Change referenced in Clauses
         (iii), (iv) and (v), cancel the Options granted if the Fair Market
         Value of the Common Stock underlying the Options is below the Option
         exercise price.

(f)      Except as hereinbefore expressly provided, issuance by the Corporation
         of shares of stock of any class or securities convertible into shares
         of stock of any class, for cash, property, labor or services, upon
         direct sale, upon the exercise of rights or warranty to subscribe
         therefore, or upon conversion of shares or obligations of the
         Corporation convertible into such shares or other securities, and in
         any case whether or not for fair value, shall not affect, and no
         adjustment by reason thereof shall be made with respect to, the number
         of shares of Common Stock subject to Options theretofore granted, or
         the purchase price per share of Common Stock subject to Options.

SECTION 9
AMENDMENT OR TERMINATION OF THE PLAN

The Board in its discretion may terminate the Plan or any Option or Grant or
alter or amend the Plan or any part thereof or any Option from time to time;
provided that no change in any Award or Grant previously made may be made which
would impair the rights of the Holder without the consent of the Holder, and
provided further, that the Board may not, without approval of the stockholders,
amend the Plan:

(a)      to increase the aggregate number of shares which may be issued pursuant
         to the provisions of the Plan on exercise or surrender of Options or
         upon Grants;

(b)      to change the minimum Option exercise price;

(c)      to change the class of employees eligible to receive Awards and/or
         Grants or increase materially the benefits accruing to employees under
         the Plan;

(d)      to extend the maximum period during which Awards may be granted under
         the Plan;

(e)      to modify materially the requirements as to eligibility for
         participation in the Plan; or

                                       8
<PAGE>   9
(f)      to decrease any authority granted to the Board hereunder in
         contravention of Rule 16b-3.

SECTION 10
OTHER

(a)      No Right to an Award. Neither the adoption of the Plan nor any action
         of the Board or Designated Officer shall be deemed to give an employee
         any right to be granted an Option to purchase Common Stock or any other
         rights hereunder except as may be evidenced by an Option Agreement duly
         executed on behalf of the Corporation, and then only to the extent of
         and on the terms and conditions expressly set forth therein. The Plan
         shall be unfunded. The Corporation shall not be required to establish
         any special or separate fund or to make any other segregation of funds
         or assets to assure the payment of any Award.

(b)      No Employment Rights Conferred. Nothing contained in the Plan or in any
         Award made hereunder shall (i) confer upon any employee any right with
         respect to continuation of employment with the Corporation or any
         Parent Corporation or Subsidiary, or (ii) interfere in any way with the
         right of the Corporation or any Parent Corporation or Subsidiary to
         terminate his or her employment at any time.

(c)      Other Laws; Withholding. The Corporation shall not be obligated to
         issue any Common Stock pursuant to any Award granted under the Plan at
         any time when the offering of the shares covered by such Award has not
         been registered (or exempted) under the Securities Act of 1933 and such
         other state and federal laws, rules or regulations as the Corporation
         or the Board deems applicable and, in the opinion of legal counsel for
         the Corporation, there is no exemption from the registration
         requirements of such laws, rules or regulations available for the
         issuance and sale of such shares. No fractional shares of Common Stock
         shall be delivered, nor shall any cash in lieu of fractional shares be
         paid. The Corporation shall have the right to deduct in connection with
         all Awards any taxes required by law to be withheld and to require any
         payments necessary to enable it to satisfy its withholding obligations.
         The Board may permit the Holder of an Award to elect to surrender, or
         authorize the Corporation to withhold shares of Common Stock (valued at
         their Fair Market Value on the date of surrender or withholding of such
         shares) in satisfaction of the Corporation's withholding obligation,
         subject to such restrictions as the Board deems necessary to satisfy
         the requirements of Rule 16b-3.

(d)      No Restriction of Corporate Action. Nothing contained in the Plan shall
         be construed to prevent the Corporation or any Parent Corporation or
         Subsidiary from taking any corporate action which is deemed by the
         Corporation or such Parent Corporation or Subsidiary to be appropriate
         or in its best interest, whether or not such action would have an
         adverse effect on the Plan or any Award made under the Plan. No
         employee, beneficiary or other person shall have any claim against the
         Corporation or any Parent Corporation or Subsidiary as a result of such
         action.

(e)      Restrictions on Transfer. An Award shall not be transferable otherwise
         than by will or the laws of descent and distribution and shall be
         exercisable during the lifetime of the Holder only by such Holder.

(f)      Effect of Death, Disability or Termination of Employment. The Option
         Agreement or other written instrument evidencing an Award shall specify
         the effect of the death, disability or termination of employment of the
         Holder on the Award; provided, however that an Optionee shall be
         entitled to exercise (i) at least six (6) months from the date of
         termination of employment with the Corporation if such termination is
         caused by death or disability or (ii) at least thirty (30) days from
         the date of termination of employment with the Corporation if such
         termination is caused by reasons other than death or disability.

                                       9
<PAGE>   10
         All outstanding Incentive Stock Options will automatically be converted
         to a nonqualified stock option if the Optionee does not exercise the
         Incentive Stock Option (i) within three (3) months of the date of
         termination caused by reasons other than death or disability; or (ii)
         within twelve (12) months of the date of termination caused by
         disability.

(g)      Information to Employees. Optionees and Grantees under the Plan shall
         receive financial statements annually regarding the Corporation during
         the period the options are outstanding.

(h)      Rule 16b-3. It is intended that the Plan and any grant of an Award made
         to a person subject to Section 16 of the Exchange Act meet all of the
         requirements of Rule 16b-3. If any provisions of the Plan or any such
         Award would disqualify the Plan or such Award hereunder, or would
         otherwise not comply with Rule 16b-3, such provision or Award shall be
         construed or deemed amended to conform to Rule 16b-3.

(i)      Governing Law. The Plan shall by construed in accordance with the laws
         of the State of Ohio and all applicable federal law. The securities
         issued hereunder shall be governed by and in accordance with the
         Corporate Securities Laws of the State of Ohio.

ADOPTED BY UNITREND'S BOARD OF DIRECTORS AS OF July 6, 1999.

APPROVED BY THE SHAREHOLDERS AS OF July 6, 1999.

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