Document:

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                                  Exhibit 10.2

                     Certificate Guaranty Insurance Policies

Ambac                                       Ambac Assurance Corporation
Certificate Guaranty Insurance Policy       c/o CT Corporation Systems
                                            44 East Mifflin Street,
                                            Madison, Wisconsin 53703
                                            Administrative Office:
                                            One State Street Plaza
                                            New York, New York 10004
                                            Telephone: (212) 668-0340

Insured Obligations:                            Policy Number:  AB0373BE
Home Equity Mortgage Asset-Backed
Pass-Through Certificates, Series
2000-KS3 Class A-I Certificates

                                                          Premium:
                                                          As  specified  in  the
                                                          endorsement   attached
                                                          hereto.

Ambac  Assurance  Corporation  (Ambac) A Wisconsin  Stock  Insurance  Company in
consideration  of the  payment of the  premium  and subject to the terms of this
Policy, hereby agrees  unconditionally and irrevocably to pay to the Trustee for
the  benefit of the  Holders of the  Insured  Obligations,  that  portion of the
Insured Amounts which shall become Due for Payment but shall be unpaid by reason
of Nonpayment.

Ambac will make such  payments to the Trustee from its own funds on the later of
(a) one (1) Business Day  following  notification  to Ambac of Nonpayment or (b)
the Business Day on which the Insured Amounts are Due for Payment. Such payments
of principal or interest shall be made only upon  presentation  of an instrument
of assignment in form and substance satisfactory to Ambac, transferring to Ambac
all rights  under such  Insured  Obligations  to receive  the  principal  of and
interest  on the  Insured  Obligation.  Ambac  shall  be  subrogated  to all the
Holders'  rights to  payment  on the  Insured  Obligations  to the extent of the
insurance  disbursements so made. Once payments of the Insured Amounts have been
made to the Trustee, Ambac shall have no further obligation hereunder in respect
of such Insured Amounts.

In the event the Trustee for the Insured Obligations has notice that any payment
of  principal  or  interest  on an Insured  Obligation  which has become Due for
Payment  and which is made to a Holder by or on behalf of the  Trustee  has been
deemed a  preferential  transfer  and  theretofore  recovered  from  its  Holder
pursuant  to the  United  States  Bankruptcy  Code in  accordance  with a final,
nonappealable  order of a court of competent  jurisdiction,  such Holder will be
entitled  to payment  from Ambac to the extent of such  recovery  if  sufficient
funds are not otherwise available.

This  Policy is  noncancelable  by Ambac for any  reason,  including  failure to
receive payment of any premium due hereunder.  The premium on this Policy is not
refundable  for any  reason.  This Policy  does not insure  against  loss of any
prepayment  or other  acceleration  payment  which at any time may become due in
respect of any Insured  Obligation,  other than at the sole option of Ambac, nor
against any risk other than Nonpayment, including failure of the Trustee to make
any payment due Holders of Insured Amounts.

To the fullest  extent  permitted by  applicable  law,  Ambac hereby  waives and
agrees not to assert any and all rights and defenses,  to the extent such rights
and  defenses may be available  to Ambac,  to avoid  payment of its  obligations
under this Policy in accordance with the express provisions hereof.

Any capitalized terms not defined herein shall have the meaning given such terms
in the endorsement attached hereto or in the Agreement.

In  witness  whereof,  Ambac  has  caused  this  Policy to be  affixed  with its
corporate seal and to be signed by its duly authorized  officers in facsimile to
become  effective as their original  signatures and binding upon Ambac by virtue
of the countersignature of its duly authorized representative.

/s/ Philip Lassiter                                /s/ Stephen D. Cooke
President                                          Secretary

                                                   /s/ Nora J. Dahlman
Effective Date:  June 29, 2000                     Authorized Representative

<PAGE>

Ambac                                       Ambac Assurance Corporation
Certificate Guaranty Insurance Policy       c/o CT Corporation Systems
                                            44 East Mifflin Street,
                                            Madison, Wisconsin 53703
                                            Administrative Office:
                                            One State Street Plaza
                                            New York, New York 10004
                                            Telephone: (212) 668-0340

Insured Obligations:                         Policy Number:  AB0375BE
Home Equity Mortgage Asset-Backed
Pass-Through Certificates, Series
2000-KS3 Class A-II Certificates

                                                          Premium:
                                                          As  specified  in  the
                                                          endorsement   attached
                                                          hereto.

Ambac Assurance  Corporation (Ambac) A Wisconsin Stock Insurance  Corporation in
consideration  of the  payment of the  premium  and subject to the terms of this
Policy, hereby agrees  unconditionally and irrevocably to pay to the Trustee for
the  benefit of the  Holders of the  Insured  Obligations,  that  portion of the
Insured Amounts which shall become Due for Payment but shall be unpaid by reason
of Nonpayment.

Ambac will make such  payments to the Trustee from its own funds on the later of
(a) one (1) Business Day  following  notification  to Ambac of Nonpayment or (b)
the Business Day on which the Insured Amounts are Due for Payment. Such payments
of principal or interest shall be made only upon  presentation  of an instrument
of assignment in form and substance satisfactory to Ambac, transferring to Ambac
all rights  under such  Insured  Obligations  to receive  the  principal  of and
interest  on the  Insured  Obligation.  Ambac  shall  be  subrogated  to all the
Holders'  rights to  payment  on the  Insured  Obligations  to the extent of the
insurance  disbursements so made. Once payments of the Insured Amounts have been
made to the Trustee, Ambac shall have no further obligation hereunder in respect
of such Insured Amounts.

In the event the Trustee for the Insured Obligations has notice that any payment
of  principal  or  interest  on an Insured  Obligation  which has become Due for
Payment  and which is made to a Holder by or on behalf of the  Trustee  has been
deemed a  preferential  transfer  and  theretofore  recovered  from  its  Holder
pursuant  to the  United  States  Bankruptcy  Code in  accordance  with a final,
nonappealable  order of a court of competent  jurisdiction,  such Holder will be
entitled  to payment  from Ambac to the extent of such  recovery  if  sufficient
funds are not otherwise available.

This  Policy is  noncancelable  by Ambac for any  reason,  including  failure to
receive payment of any premium due hereunder.  The premium on this Policy is not
refundable  for any  reason.  This Policy  does not insure  against  loss of any
prepayment  or other  acceleration  payment  which at any time may become due in
respect of any Insured  Obligation,  other than at the sole option of Ambac, nor
against any risk other than Nonpayment, including failure of the Trustee to make
any payment due Holders of Insured Amounts.

To the fullest  extent  permitted by  applicable  law,  Ambac hereby  waives and
agrees not to assert any and all rights and defenses,  to the extent such rights
and  defenses may be available  to Ambac,  to avoid  payment of its  obligations
under this Policy in accordance with the express provisions hereof.

Any capitalized terms not defined herein shall have the meaning given such terms
in the endorsement attached hereto or in the Agreement.

In  witness  whereof,  Ambac  has  caused  this  Policy to be  affixed  with its
corporate seal and to be signed by its duly authorized  officers in facsimile to
become  effective as their original  signatures and binding upon Ambac by virtue
of the countersignature of its duly authorized representative.

/s/ Philip Lassiter                                /s/ Stephen D. Cooke
President                                          Secretary

                                                   /s/ Nora J. Dahlman
Effective Date:  June 29, 2000                     Authorized Representative

<PAGE><PAGE>   1
                                                                    EXHIBIT 4.01

                                    eHNC INC.

                           1999 EQUITY INCENTIVE PLAN

                      AS ADOPTED ON SEPTEMBER 27, 1999 AND
                            AMENDED ON MARCH 21, 2000

        1.     PURPOSE. The purpose of this Plan is to provide incentives to
attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company's
future performance through awards of Options and Restricted Stock. Capitalized
terms not defined in the text are defined in Section 22 hereof. This Plan is
intended to be a written compensatory benefit plan within the meaning of Rule
701 promulgated under the Securities Act.

        2.     SHARES SUBJECT TO THE PLAN.

        2.1    Number of Shares Available. Subject to Sections 2.2 and 17
hereof, the total number of Shares reserved and available for grant and issuance
pursuant to this Plan will be 4,045,0001 Shares or such lesser number of Shares
as permitted under Section 260.140.45 of Title 10 of the California Code of
Regulations. Subject to Sections 2.2, 5.10 and 17 hereof, Shares subject to
Awards previously granted will again be available for grant and issuance in
connection with future Awards under this Plan to the extent such Shares: (i)
cease to be subject to issuance upon exercise of an Option, other than due to
exercise of such Option; (ii) are subject to an Award granted hereunder but the
Shares subject to such Award are forfeited or repurchased by the Company at the
original issue price; or (iii) are subject to an Award that otherwise terminates
without Shares being issued. At all times the Company will reserve and keep
available a sufficient number of Shares as will be required to satisfy the
requirements of all Awards granted and outstanding under this Plan.

               2.2    Adjustment of Shares. In the event that the number of
outstanding shares of the Company's Common Stock is changed by a stock dividend,
recapitalization, stock split, reverse stock split, subdivision, combination,
reclassification or similar change in the capital structure of the Company
without consideration, then (i) the number of Shares reserved for issuance under
this Plan, (ii) the Exercise Prices of and number of Shares subject to
outstanding Options and (iii) the Purchase Prices of and number of Shares
subject to other outstanding Awards will be proportionately adjusted, subject to
any required action by the Board or the stockholders of the Company and
compliance with applicable securities laws; provided, however, that fractions of
a Share will not be issued but will either be paid in cash at the Fair Market
Value of such fraction of a Share or will be rounded down to the nearest whole
Share, as determined by the Committee and provided, further, that the Exercise
Price of any Option may not be decreased to below the par value of the Shares.

--------
1 Increased from 3,200,000 to 4,045,000 by Unanimous Consent of the Board and
Consent of the Sole Stockholder on March 21, 2000.

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        3.     ELIGIBILITY. ISOs (as defined in Section 5 hereof) may be granted
only to employees (including officers and directors who are also employees) of
the Company or of a Parent or Subsidiary of the Company. NQSOs (as defined in
Section 5 hereof) and Restricted Stock Awards may be granted to employees,
officers, directors and consultants of the Company or any Parent, Subsidiary or
Affiliate of the Company; provided such consultants render bona fide services
not in connection with the offer and sale of securities in a capital-raising
transaction. A person may be granted more than one Award under this Plan.

        4.     ADMINISTRATION.

               4.1    Committee Authority. This Plan will be administered by the
Committee or the Board if no Committee is created by the Board. Subject to the
general purposes, terms and conditions of this Plan, and to the direction of the
Board, the Committee will have full power to implement and carry out this Plan.
Without limitation, the Committee will have the authority to:

               (a)    construe and interpret this Plan, any Award Agreement and
                      any other agreement or document executed pursuant to this
                      Plan;

               (b)    prescribe, amend and rescind rules and regulations
                      relating to this Plan;

               (c)    approve persons to receive Awards;

               (d)    determine the form and terms of Awards;

               (e)    determine the number of Shares or other consideration
                      subject to Awards;

               (f)    determine whether Awards will be granted singly, in
                      combination with, in tandem with, in replacement of, or as
                      alternatives to, other Awards under this Plan or awards
                      under any other incentive or compensation plan of the
                      Company or any Parent or Subsidiary of the Company;

               (g)    grant waivers of any conditions of this Plan or any Award;

               (h)    determine the terms of vesting, exercisability and payment
                      of Awards;

               (i)    correct any defect, supply any omission, or reconcile any
                      inconsistency in this Plan, any Award, any Award
                      Agreement, any Exercise Agreement or any Restricted Stock
                      Purchase Agreement;

               (j)    determine whether an Award has been earned;

               (k)    make all other determinations necessary or advisable for
                      the administration of this Plan; and

               (l)    extend the vesting period beyond a Participant's
                      Termination Date.

               4.2    Committee Discretion. Unless in contravention of any
express terms of this Plan or Award, any determination made by the Committee
with respect to any Award will be made in its sole discretion either (i) at the
time of grant of the Award, or (ii) subject to Section 5.9 hereof, at any later
time. Any such determination will be final and binding on the Company and on all
persons having an interest in any Award under this Plan. The Committee may

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delegate to one or more officers of the Company the authority to grant an Award
under this Plan, provided such officer or officers are members of the Board.

        5.     OPTIONS. The Committee may grant Options to eligible persons
described in Section 3 hereof and will determine whether such Options will be
Incentive Stock Options within the meaning of the Code ("ISOS") or Nonqualified
Stock Options ("NQSOS"), the number of Shares subject to the Option, the
Exercise Price of the Option, the period during which the Option may be
exercised, and all other terms and conditions of the Option, subject to the
following:

               5.1    Form of Option Grant. Each Option granted under this Plan
will be evidenced by an Award Agreement which will expressly identify the Option
as an ISO or an NQSO ("STOCK OPTION AGREEMENT"), and will be in such form and
contain such provisions (which need not be the same for each Participant) as the
Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan.

               5.2    Date of Grant. The date of grant of an Option will be the
date on which the Committee makes the determination to grant such Option, unless
a later date is otherwise specified by the Committee. The Stock Option Agreement
and a copy of this Plan will be delivered to the Participant within a reasonable
time after the granting of the Option.

               5.3    Exercise Period. Options may be exercisable immediately
but subject to repurchase pursuant to Section 11 hereof or may be exercisable
within the times or upon the events determined by the Committee as set forth in
the Stock Option Agreement governing such Option; provided, however, that no
Option will be exercisable after the expiration of ten (10) years from the date
the Option is granted; and provided further that no ISO granted to a person who
directly or by attribution owns more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or of any Parent or
Subsidiary of the Company ("TEN PERCENT SHAREHOLDER") will be exercisable after
the expiration of five (5) years from the date the ISO is granted. The Committee
also may provide for Options to become exercisable at one time or from time to
time, periodically or otherwise, in such number of Shares or percentage of
Shares as the Committee determines. Subject to earlier termination of the Option
as provided herein, each Participant who is not an officer, director or
consultant of the Company or of a Parent or Subsidiary of the Company shall have
the right to exercise an Option granted hereunder at the rate of no less than
twenty percent (20%) per year over five (5) years from the date such Option is
granted.

               5.4    Exercise Price. The Exercise Price of an Option will be
determined by the Committee when the Option is granted and may not be less than
eighty-five percent (85%) of the Fair Market Value of the Shares on the date of
grant; provided that (i) the Exercise Price of an ISO will not be less than one
hundred percent (100%) of the Fair Market Value of the Shares on the date of
grant and (ii) the Exercise Price of any Option granted to a Ten Percent
Shareholder will not be less than one hundred ten percent (110%) of the Fair
Market Value of the Shares on the date of grant. Payment for the Shares
purchased must be made in accordance with Section 7 hereof.

               5.5    Method of Exercise. Options may be exercised only by
delivery to the Company of a written stock option exercise agreement (the
"EXERCISE AGREEMENT") in a form approved by the Committee (which need not be the
same for each Participant). The Exercise Agreement will state (i) the number of
Shares being purchased, (ii) the restrictions imposed on

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the Shares purchased under such Exercise Agreement, if any, and (iii) such
representations and agreements regarding Participant's investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable securities laws. Participant shall
execute and deliver to the Company the Exercise Agreement together with payment
in full of the Exercise Price, and any applicable taxes, for the number of
Shares being purchased.

               5.6    Termination. Subject to earlier termination pursuant to
Sections 17 and 18 hereof and unless otherwise determined by the Committee and
set forth in the Stock Option Agreement, exercise of an Option will be subject
to the following:

               (a)    If the Participant is Terminated for any reason other than
                      death, Disability or for Cause, then the Participant may
                      exercise such Participant's Options only to the extent
                      that such Options are exercisable upon the Termination
                      Date or as otherwise determined by the Committee. Such
                      Options must be exercised by the Participant, if at all,
                      as to all or some of the Vested Shares calculated as of
                      the Termination Date or such other date determined by the
                      Committee, within three (3) months after the Termination
                      Date (or within such shorter time period, not less than
                      thirty (30) days, or within such longer time period, not
                      exceeding five (5) years, after the Termination Date as
                      may be determined by the Committee, with any exercise
                      beyond three (3) months after the Termination Date deemed
                      to be an NQSO) but in any event, no later than the
                      expiration date of the Options.

               (b)    If the Participant is Terminated because of Participant's
                      death or Disability (or the Participant dies within three
                      (3) months after a Termination other than for Cause), then
                      Participant's Options may be exercised only to the extent
                      that such Options are exercisable by Participant on the
                      Termination Date or as otherwise determined by the
                      Committee. Such options must be exercised by Participant
                      (or Participant's legal representative or authorized
                      assignee), if at all, as to all or some of the Vested
                      Shares calculated as of the Termination Date or such other
                      date determined by the Committee, within twelve (12)
                      months after the Termination Date (or within such shorter
                      time period, not less than six (6) months, or within such
                      longer time period, not exceeding five (5) years, after
                      the Termination Date as may be determined by the
                      Committee, with any exercise beyond (i) three (3) months
                      after the Termination Date when the Termination is for any
                      reason other than the Participant's death or disability,
                      within the meaning of Section 22(e)(3) of the Code, or
                      (ii) twelve (12) months after the Termination Date when
                      the Termination is for Participant's disability, within
                      the meaning of Section 22(e)(3) of the Code, deemed to be
                      an NQSO) but in any event no later than the expiration
                      date of the Options.

               (c)    If the Participant is terminated for Cause, then
                      Participant's Options shall expire on such Participant's
                      Termination Date, or at such later time and on such
                      conditions as are determined by the Committee.

               5.7    Limitations on Exercise. The Committee may specify a
reasonable minimum number of Shares that may be purchased on any exercise of an
Option, provided that

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such minimum number will not prevent Participant from exercising the Option for
the full number of Shares for which it is then exercisable.

               5.8    Limitations on ISOs. The aggregate Fair Market Value
(determined as of the date of grant) of Shares with respect to which ISOs are
exercisable for the first time by a Participant during any calendar year (under
this Plan or under any other incentive stock option plan of the Company or any
Parent or Subsidiary of the Company) will not exceed One Hundred Thousand
Dollars ($100,000). If the Fair Market Value of Shares on the date of grant with
respect to which ISOs are exercisable for the first time by a Participant during
any calendar year exceeds One Hundred Thousand Dollars ($100,000), then the
Options for the first One Hundred Thousand Dollars ($100,000) worth of Shares to
become exercisable in such calendar year will be ISOs and the Options for the
amount in excess of One Hundred Thousand Dollars ($100,000) that become
exercisable in that calendar year will be NQSOs. In the event that the Code or
the regulations promulgated thereunder are amended after the Effective Date (as
defined in Section 18 hereof) to provide for a different limit on the Fair
Market Value of Shares permitted to be subject to ISOs, then such different
limit will be automatically incorporated herein and will apply to any Options
granted after the effective date of such amendment.

               5.9    Modification, Extension or Renewal. The Committee may
modify, extend or renew outstanding Options and authorize the grant of new
Options in substitution therefor, provided that any such action may not, without
the written consent of a Participant, impair any of such Participant's rights
under any Option previously granted. Any outstanding ISO that is modified,
extended, renewed or otherwise altered will be treated in accordance with
Section 424(h) of the Code. Subject to Section 5.10 hereof, the Committee may
reduce the Exercise Price of outstanding Options without the consent of
Participants by a written notice to them; provided, however, that the Exercise
Price may not be reduced below the minimum Exercise Price that would be
permitted under Section 5.4 hereof for Options granted on the date the action is
taken to reduce the Exercise Price; provided, further, that the Exercise Price
will not be reduced below the par value of the Shares, if any.

               5.10   No Disqualification. Notwithstanding any other provision
in this Plan, no term of this Plan relating to ISOs will be interpreted, amended
or altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant, to disqualify any Participant's ISO
under Section 422 of the Code. In no event shall the total number of Shares
issued (counting each reissuance of a Share that was previously issued and then
forfeited or repurchased by the Company as a separate issuance) under the Plan
upon exercise of ISOs exceed 6,400,000 Shares (adjusted in proportion to any
adjustments under Section 2.2. hereof) over the term of the Plan.

        6.     RESTRICTED STOCK. A Restricted Stock Award is an offer by the
Company to sell to an eligible person Shares that are subject to certain
specified restrictions. The Committee will determine to whom an offer will be
made, the number of Shares the person may purchase, the Purchase Price, the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

               6.1    Form of Restricted Stock Award. All purchases under a
Restricted Stock Award made pursuant to this Plan will be evidenced by an Award
Agreement ("RESTRICTED STOCK PURCHASE AGREEMENT") that will be in such form
(which need not be the same for each Participant) as the Committee will from
time to time approve, and will comply with and be subject to the terms and
conditions of this Plan. The Restricted Stock Award will be accepted by

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the Participant's execution and delivery of the Restricted Stock Purchase
Agreement and full payment for the Shares to the Company within thirty (30) days
from the date the Restricted Stock Purchase Agreement is delivered to the
person. If such person does not execute and deliver the Restricted Stock
Purchase Agreement along with full payment for the Shares to the Company within
such thirty (30) days, then the offer will terminate, unless otherwise
determined by the Committee.

               6.2    Purchase Price. The Purchase Price of Shares sold pursuant
to a Restricted Stock Award will be determined by the Committee and will be at
least eighty-five percent (85%) of the Fair Market Value of the Shares on the
date the Restricted Stock Award is granted or at the time the purchase is
consummated, except in the case of a sale to a Ten Percent Shareholder, in which
case the Purchase Price will be one hundred percent (100%) of the Fair Market
Value on the date the Restricted Stock Award is granted or at the time the
purchase is consummated. Payment of the Purchase Price must be made in
accordance with Section 7 hereof.

               6.3    Restrictions. Restricted Stock Awards may be subject to
the restrictions set forth in Section 11 hereof or such other restrictions not
inconsistent with Section 25102(o) of the California Corporations Code.

        7.     PAYMENT FOR SHARE PURCHASES.

               7.1    Payment. Payment for Shares purchased pursuant to this
Plan may be made in cash (by check) or, where expressly approved for the
Participant by the Committee and where permitted by law:

               (a)    by cancellation of indebtedness of the Company owed to the
                      Participant;

               (b)    by surrender of shares that: (i) either (A) have been
                      owned by Participant for more than six (6) months and have
                      been paid for within the meaning of SEC Rule 144 (and, if
                      such shares were purchased from the Company by use of a
                      promissory note, such note has been fully paid with
                      respect to such shares) or (B) were obtained by
                      Participant in the public market and (ii) are clear of all
                      liens, claims, encumbrances or security interests;

               (c)    by tender of a full recourse promissory note having such
                      terms as may be approved by the Committee and bearing
                      interest at a rate sufficient to avoid imputation of
                      income under Sections 483 and 1274 of the Code; provided,
                      however, that Participants who are not employees or
                      directors of the Company will not be entitled to purchase
                      Shares with a promissory note unless the note is
                      adequately secured by collateral other than the Shares;
                      provided, further, that the portion of the Exercise Price
                      or Purchase Price, as the case may be, equal to the par
                      value of the Shares must be paid in cash or other legal
                      consideration permitted by Delaware General Corporation
                      Law;

               (d)    by waiver of compensation due or accrued to the
                      Participant from the Company for services rendered;

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               (e)    with respect only to purchases upon exercise of an Option,
                      and provided that a public market for the Company's stock
                      exists:

                      (i)    through a "same day sale" commitment from the
                             Participant and a broker-dealer that is a member of
                             the National Association of Securities Dealers (an
                             "NASD DEALER") whereby the Participant irrevocably
                             elects to exercise the Option and to sell a portion
                             of the Shares so purchased sufficient to pay the
                             total Exercise Price, and whereby the NASD Dealer
                             irrevocably commits upon receipt of such Shares to
                             forward the total Exercise Price directly to the
                             Company; or

                      (ii)   through a "margin" commitment from the Participant
                             and an NASD Dealer whereby the Participant
                             irrevocably elects to exercise the Option and to
                             pledge the Shares so purchased to the NASD Dealer
                             in a margin account as security for a loan from the
                             NASD Dealer in the amount of the total Exercise
                             Price, and whereby the NASD Dealer irrevocably
                             commits upon receipt of such Shares to forward the
                             total Exercise Price directly to the Company; or

               (f)    by any combination of the foregoing.

               7.2    Loan Guarantees. The Committee may, in its sole
discretion, elect to assist the Participant in paying for Shares purchased under
this Plan by authorizing a guarantee by the Company of a third-party loan to the
Participant.

        8.     WITHHOLDING TAXES.

               8.1    Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash by the Company, such payment
will be net of an amount sufficient to satisfy federal, state, and local
withholding tax requirements.

               8.2    Stock Withholding. When, under applicable tax laws, a
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that minimum number of Shares having a Fair Market Value equal to the minimum
amount required to be withheld, determined on the date that the amount of tax to
be withheld is to be determined; but in no event will the Company withhold
Shares if such withholding would result in adverse accounting consequences to
the Company. All elections by a Participant to have Shares withheld for this
purpose will be made in accordance with the requirements established by the
Committee for such elections and be in writing in a form acceptable to the
Committee.

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        9.     PRIVILEGES OF STOCK OWNERSHIP.

               9.1    Voting and Dividends. No Participant will have any of the
rights of a stockholder with respect to any Shares until the Shares are issued
to the Participant. After Shares are issued to the Participant, the Participant
will be a stockholder and have all the rights of a stockholder with respect to
such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock. The Participant will have no right to retain such stock
dividends or stock distributions with respect to Unvested Shares that are
repurchased pursuant to Section 11 hereof. The Company will comply with Section
260.140.1 of Title 10 of the California Code of Regulations with respect to the
voting rights of Common Stock.

               9.2    Financial Statements. The Company will provide financial
statements to each Participant annually during the period such Participant has
Awards outstanding, or as otherwise required under Section 260.140.46 of Title
10 of the California Code of Regulations. Notwithstanding the foregoing, the
Company will not be required to provide such financial statements to
Participants when issuance is limited to key employees whose services in
connection with the Company assure them access to equivalent information.

        10.    TRANSFERABILITY. Awards granted under this Plan, and any interest
therein, will not be transferable or assignable by Participant, other than by
will or by the laws of descent and distribution, and may not be made subject to
execution, attachment or similar process. During the lifetime of the Participant
an Award will be exercisable only by the Participant or Participant's legal
representative and any elections with respect to an Award may be made only by
the Participant or Participant's legal representative.

        11.    RESTRICTIONS ON SHARES.

               11.1   Right of First Refusal. At the discretion of the
Committee, the Company may reserve to itself and/or its assignee(s) in the Award
Agreement a right of first refusal to purchase all Shares that a Participant (or
a subsequent transferee) may propose to transfer to a third party, unless
otherwise not permitted by Section 25102(o) of the California Corporations Code,
provided that such right of first refusal terminates upon the Company's initial
public offering of Common Stock pursuant to an effective registration statement
filed under the Securities Act.

               11.2   Right of Repurchase. At the discretion of the Committee,
the Company may reserve to itself and/or its assignee(s) in the Award Agreement
a right to repurchase Unvested Shares held by a Participant for cash and/or
cancellation of purchase money indebtedness owed to the Company by the
Participant following such Participant's Termination at any time within the
later of ninety (90) days after the Participant's Termination Date and the date
the Participant purchases Shares under the Plan at the Participant's Exercise
Price or Purchase Price, as the case may be, provided that, unless the
Participant is an officer, director or consultant of the Company or of a Parent
or Subsidiary of the Company, such right of repurchase lapses at the rate of no
less than twenty percent (20%) per year over five (5) years from: (a) the date
of grant of the Option or (b) in the case of Restricted Stock, the date the
Participant purchases the Shares.

                                       8
<PAGE>   9

        12.    CERTIFICATES. All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed or
quoted.

        13.    ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant's Shares set forth in Section 11 hereof, the Committee may require
the Participant to deposit all certificates representing Shares, together with
stock powers or other instruments of transfer approved by the Committee,
appropriately endorsed in blank, with the Company or an agent designated by the
Company to hold in escrow until such restrictions have lapsed or terminated. The
Committee may cause a legend or legends referencing such restrictions to be
placed on the certificates. Any Participant who is permitted to execute a
promissory note as partial or full consideration for the purchase of Shares
under this Plan will be required to pledge and deposit with the Company all or
part of the Shares so purchased as collateral to secure the payment of
Participant's obligation to the Company under the promissory note; provided,
however, that the Committee may require or accept other or additional forms of
collateral to secure the payment of such obligation and, in any event, the
Company will have full recourse against the Participant under the promissory
note notwithstanding any pledge of the Participant's Shares or other collateral.
In connection with any pledge of the Shares, Participant will be required to
execute and deliver a written pledge agreement in such form as the Committee
will from time to time approve.

        14.    EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or
from time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, shares of Common
Stock of the Company (including Restricted Stock) or other consideration, based
on such terms and conditions as the Committee and the Participant may agree.

        15.    SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. This Plan is
intended to comply with Section 25102(o) of the California Corporations Code.
Any provision of this Plan which is inconsistent with Section 25102(o) shall,
without further act or amendment by the Company or the Board, be reformed to
comply with the requirements of Section 25102(o). An Award will not be effective
unless such Award is in compliance with all applicable federal and state
securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. Notwithstanding
any other provision in this Plan, the Company will have no obligation to issue
or deliver certificates for Shares under this Plan prior to (i) obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable, and/or (ii) compliance with any exemption, completion of any
registration or other qualification of such Shares under any state or federal
law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the exemption, registration,
qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability
for any inability or failure to do so.

                                       9
<PAGE>   10

        16.    NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award
granted under this Plan will confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other relationship
with, the Company or any Parent, Subsidiary or Affiliate of the Company or limit
in any way the right of the Company or any Parent, Subsidiary or Affiliate of
the Company to terminate Participant's employment or other relationship at any
time, with or without Cause.

        17.    CORPORATE TRANSACTIONS.

               17.1   Assumption or Replacement of Awards by Successor or
Acquiring Company. In the event of (i) a dissolution or liquidation of the
Company, (ii) a merger or consolidation in which the Company is not the
surviving corporation, (iii) a merger in which the Company is the surviving
corporation but after which the stockholders of the Company immediately prior to
such merger (other than any stockholder which merges with the Company in such
merger, or which owns or controls another corporation which merges with the
Company in such merger) cease to own their shares or other equity interests in
the Company, or (iv) the sale of all or substantially all of the assets of the
Company, any or all outstanding Awards may be assumed, converted or replaced by
the successor or acquiring corporation (if any) with or into cash, options
and/or other securities or property, which assumption, conversion or replacement
will be binding on all Participants. In the alternative, the successor or
acquiring corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to stockholders in such
transactions (after taking into account the existing provisions of the Awards).
The successor or acquiring corporation may also substitute by issuing, in place
of outstanding Shares of the Company held by the Participant, substantially
similar shares or other property subject to repurchase restrictions and other
provisions no less favorable to the Participant than those which applied to such
outstanding Shares immediately prior to such transaction described in this
Section 17.1. In the event such successor or acquiring corporation (if any)
refuses to assume, convert, replace or substitute Awards, as provided above,
pursuant to a transaction described in this Section 17.1, then notwithstanding
any other provision in this Plan to the contrary, such Awards will expire upon
the consummation of such transaction at such time and on such conditions as the
Board will determine.

               17.2   Other Treatment of Awards. Subject to any greater rights
granted to Participants under the foregoing provisions of this Section 17, in
the event of the occurrence of any transaction described in Section 17.1 hereof,
any outstanding Awards will be treated as provided in the applicable agreement
or plan of merger, consolidation, dissolution, liquidation or sale of assets.

               17.3   Assumption of Awards by the Company. The Company, from
time to time, also may substitute or assume outstanding awards granted by
another company, whether in connection with an acquisition of such other company
or otherwise, by either (i) granting an Award under this Plan in substitution of
such other company's award or (ii) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option

                                       10
<PAGE>   11

rather than assuming an existing option, such new Option may be granted with a
similarly adjusted Exercise Price.

        18.    ADOPTION AND STOCKHOLDER APPROVAL. This Plan will become
effective on the date that it is adopted by the Board (the "EFFECTIVE DATE").
This Plan will be approved by the stockholders of the Company (excluding the
vote of Shares issued pursuant to this Plan), consistent with applicable laws,
within twelve (12) months before or after the Effective Date. Upon the Effective
Date, the Board may grant Awards pursuant to this Plan; provided, however, that:
(i) no Option may be exercised prior to initial stockholder approval of this
Plan; (ii) no Option granted pursuant to an increase in the number of Shares
approved by the Board shall be exercised prior to the time such increase has
been approved by the stockholders of the Company; (iii) in the event that
initial stockholder approval is not obtained within the time period provided
herein, all Awards granted hereunder shall be canceled, any Shares issued
pursuant to any Award shall be canceled and any purchase of Shares issued
hereunder shall be rescinded; and (iv) Awards granted pursuant to an increase in
the number of Shares approved by the Board which increase is not timely approved
by stockholders shall be canceled, any Shares issued pursuant to any such Awards
shall be canceled, and any purchase of Shares subject to any such Award shall be
rescinded.

        19.    TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided
herein, this Plan will terminate ten (10) years from the Effective Date or, if
earlier, the date of stockholder approval. This Plan and all agreements
hereunder shall be governed by and construed in accordance with the laws of the
State of California.

        20.    AMENDMENT OR TERMINATION OF PLAN. Subject to Section 5.9 hereof,
the Board may at any time terminate or amend this Plan in any respect, including
without limitation amendment of any form of Award Agreement or instrument to be
executed pursuant to this Plan; provided, however, that the Board will not,
without the approval of the stockholders of the Company, amend this Plan in any
manner that requires such stockholder approval pursuant to Section 25102(o) of
the California Corporations Code or the Code or the regulations promulgated
thereunder as such provisions apply to ISO plans.

        21.    NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by
the Board, the submission of this Plan to the stockholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and other equity awards otherwise than under this
Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.

        22.    DEFINITIONS. As used in this Plan, the following terms will have
the following meanings:

              "AFFILIATE" means any corporation that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with, another corporation, where "control" (including the terms
"controlled by" and "under common control with") means the possession, direct or
indirect, of the power to cause the direction of the management and policies of
the corporation, whether through the ownership of voting securities, by contract
or otherwise.

                                       11
<PAGE>   12

               "AWARD" means any award under this Plan, including any Option or
Restricted Stock Award.

               "AWARD AGREEMENT" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award, including the Stock Option Agreement and
Restricted Stock Agreement.

               "BOARD" means the Board of Directors of the Company.

               "CAUSE" means Termination because of (i) any willful, material
violation by the Participant of any law or regulation applicable to the business
of the Company or a Parent or Subsidiary of the Company, the Participant's
conviction for, or guilty plea to, a felony or a crime involving moral
turpitude, or any willful perpetration by the Participant of a common law fraud,
(ii) the Participant's commission of an act of personal dishonesty which
involves personal profit in connection with the Company or any other entity
having a business relationship with the Company, (iii) any material breach by
the Participant of any provision of any agreement or understanding between the
Company or any Parent or Subsidiary of the Company and the Participant regarding
the terms of the Participant's service as an employee, officer, director or
consultant to the Company or a Parent or Subsidiary of the Company, including
without limitation, the willful and continued failure or refusal of the
Participant to perform the material duties required of such Participant as an
employee, officer, director or consultant of the Company or a Parent or
Subsidiary of the Company, other than as a result of having a Disability, or a
breach of any applicable invention assignment and confidentiality agreement or
similar agreement between the Company or a Parent or Subsidiary of the Company
and the Participant, (iv) Participant's disregard of the policies of the Company
or any Parent or Subsidiary of the Company so as to cause loss, damage or injury
to the property, reputation or employees of the Company or a Parent or
Subsidiary of the Company, or (v) any other misconduct by the Participant which
is materially injurious to the financial condition or business reputation of, or
is otherwise materially injurious to, the Company or a Parent or Subsidiary of
the Company.

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

               "COMMITTEE" means the committee created and appointed by the
Board to administer this Plan, or if no committee is created and appointed, the
Board.

               "COMPANY" means eHNC Inc., or any successor corporation.

               "DISABILITY" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

               "EXERCISE PRICE" means the price at which a holder of an Option
may purchase the Shares issuable upon exercise of the Option.

               "FAIR MARKET VALUE" means, as of any date, the value of a share
of the Company's Common Stock determined as follows:

               (a)    if such Common Stock is then quoted on the Nasdaq National
                      Market, its closing price on the Nasdaq National Market on
                      the date of determination as reported in The Wall Street
                      Journal;

                                       12
<PAGE>   13

               (b)    if such Common Stock is publicly traded and is then listed
                      on a national securities exchange, its closing price on
                      the date of determination on the principal national
                      securities exchange on which the Common Stock is listed or
                      admitted to trading as reported in The Wall Street
                      Journal;

               (c)    if such Common Stock is publicly traded but is not quoted
                      on the Nasdaq National Market nor listed or admitted to
                      trading on a national securities exchange, the average of
                      the closing bid and asked prices on the date of
                      determination as reported by The Wall Street Journal (or,
                      if not so reported, as otherwise reported by any newspaper
                      or other source as the Board may determine); or

               (d)    if none of the foregoing is applicable, by the Committee
                      in good faith.

               "OPTION" means an award of an option to purchase Shares pursuant
to Section 5 hereof.

               "PARENT" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if each of such
corporations other than the Company owns stock representing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

               "PARTICIPANT" means a person who receives an Award under this
Plan.

               "PLAN" means this eHNC Inc. 1999 Equity Incentive Plan, as
amended from time to time.

               "PURCHASE PRICE" means the price at which a Participant may
purchase Restricted Stock.

               "RESTRICTED STOCK" means Shares purchased pursuant to a
Restricted Stock Award.

               "RESTRICTED STOCK AWARD" means an award of Shares pursuant to
Section 6 hereof.

               "SEC" means the Securities and Exchange Commission.

               "SECURITIES ACT" means the Securities Act of 1933, as amended.

               "SHARES" means shares of the Company's Common Stock reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 17 hereof, and
any successor security.

               "SUBSIDIARY" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
representing fifty percent (50%) or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

               "TERMINATION" or "TERMINATED" means, for purposes of this Plan
with respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director or consultant to the Company
or a Parent, Subsidiary or Affiliate of the Company. A Participant will not be
deemed to have ceased to provide services in the case of (i)

                                       13
<PAGE>   14

sick leave, (ii) military leave, or (iii) any other leave of absence approved by
the Committee, provided that such leave is for a period of not more than ninety
(90) days (a) unless reinstatement (or, in the case of an employee with an ISO,
reemployment) upon the expiration of such leave is guaranteed by contract or
statute, or (b) unless provided otherwise pursuant to formal policy adopted from
time to time by the Company's Board and issued and promulgated in writing. In
the case of any Participant on (i) sick leave, (ii) military leave or (iii) an
approved leave of absence, the Committee may make such provisions respecting
suspension of vesting of the Award while on leave from the Company or a Parent,
Subsidiary or Affiliate of the Company as it may deem appropriate, except that
in no event may an Option be exercised after the expiration of the term set
forth in the Stock Option Agreement. The Committee will have sole discretion to
determine whether a Participant has ceased to provide services and the effective
date on which the Participant ceased to provide services (the "TERMINATION
DATE").

               "UNVESTED SHARES" means "Unvested Shares" as defined in the Award
Agreement.

               "VESTED SHARES" means "Vested Shares" as defined in the Award
Agreement.

                                       14

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