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                                                                    EXHIBIT 10.2
                            CCC GLOBALCOM CORPORATION
                            2001 STOCK INCENTIVE PLAN

         1. PURPOSE OF PLAN. The purpose of the CCC Globalcom Corporation 2001
Stock Incentive Plan (the "Plan") is to advance the interests of CCC Globalcom
Corporation (the "Company") and its stockholders by enabling the Company and its
Subsidiaries to attract and retain persons of ability to perform services for
the Company and its Subsidiaries by providing an incentive to such individuals
through equity participation in the Company and by rewarding such individuals
who contribute to the achievement by the Company of its economic objectives.

         Pursuant to the Plan, the Company may grant (i) "incentive stock
options," within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended (the "Code") and (ii) stock options that do not qualify as
incentive stock options ("non-qualified stock options"). No option granted under
the Plan shall be treated as an incentive stock option unless the stock option
agreement which evidences the grant refers to such option as an incentive stock
option and such option satisfies the requirements of Section 422 of the Code.
Pursuant to the Plan, the Company may grant Restricted Stock Awards and Stock
Bonuses.

            As used herein, the term "parent" or "subsidiary" shall mean any
present or future corporation which is or would be a "parent corporation" or
"subsidiary corporation" of the Company as the term is defined in Section 424 of
the Code (determined as if the Company were the employer corporation).

         2. DEFINITIONS. The following terms will have the meanings set forth
below, unless the context clearly otherwise requires:

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

         2.2. "BROKER EXERCISE NOTICE" means a written notice pursuant to which
a Participant, upon exercise of an Option, irrevocably instructs a broker or
dealer to sell a sufficient number of shares or loan a sufficient amount of
money to pay all or a portion of the exercise price of the Option and/or any
related withholding tax obligations and remit such sums to the Company and
directs the Company to deliver stock certificates to be issued upon such
exercise directly to such broker or dealer.

         2.3. "CHANGE IN CONTROL" means an event described in Section 11.1 of
the Plan.

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

         2.5. "COMMITTEE" means the group of individuals administering the Plan,
as provided in Section 3 of the Plan.

         2.6. "COMMON STOCK" means the common stock of the Company; par value
$.001 per share, or the number and kind of shares of stock or other securities
into which such Common Stock may be changed in accordance with Section 4.3 of
the Plan.

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         2.7. "DISABILITY" means the disability of the Participant such as would
entitle the Participant to receive disability income benefits pursuant to the
long-term disability plan of the Company or Subsidiary then covering the
participant or, if no such plan exists or is applicable to the Participant, the
permanent and total disability of the Participant within the meaning of Section
22(e)(3) of the Code.

         2.8. "ELIGIBLE RECIPIENTS" means all employees (including, without
limitation, officers and directors who are also employees) of the Company or any
Subsidiary, any non-employee director, consultants and independent contractors
of the Company or any Subsidiary and any joint venture partners (including
without limitation, officers, directors and partners thereof) of the Company or
any Subsidiary.

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

         2.10. "FAIR MARKET VALUE" means, with respect to the Common Stock, as
of any date (or, if no shares were traded or quoted on such date, as of the next
preceding date on which there was such a trade or quote), the closing market
price per share of the Common Stock as reported on that date.

         2.11. "INCENTIVE AWARD" means an Option, Restricted Stock Award or
Stock Bonus granted to an Eligible Recipient pursuant to the Plan.

         2.12. "INCENTIVE STOCK OPTION" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Section 6 of the Plan that
qualifies as an "incentive stock option" within the meaning of Section 422 of
the Code.

         2.13. "NON-EMPLOYEE DIRECTOR" means any member of the Board of
Directors of the Company who is not an employee of the Company or any
Subsidiary.

         2.14. "NON-STATUTORY STOCK OPTION" means a right to purchase Common
Stock granted to an Eligible Recipient pursuant to Section 6 of the Plan that
does not qualify as an Incentive Stock Option.

         2.15. "OPTION" means an Incentive Stock Option or a Non-Statutory Stock
Option.

         2.16. "PARTICIPANT" means an Eligible Recipient who receives one or
more Incentive Awards under the Plan.

         2.17. "PREVIOUSLY ACQUIRED SHARES" means shares of Common Stock that
are already owned by the Participant or, with respect to any Incentive Award,
that are to be issued upon the grant, exercise or vesting of such Incentive
Award.

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         2.18. "RESTRICTED STOCK AWARD" means an award of Common Stock granted
to an Eligible Recipient pursuant to Section 8 of the Plan that is subject to
the restrictions on transferability and the risk of forfeiture imposed by the
provisions of such Section 8.

         2.19. "RETIREMENT" means termination of employment or service pursuant
to and in accordance with the regular (or, if approved by the Board for purposes
of the Plan, early) retirement/pension plan or practice of the Company or
Subsidiary then covering the Participant, provided that if the Participant is
not covered by any such plan or practice, the Participant will be deemed to be
covered by the Company plan or practice for purposes of this determination.

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

         2.21. "STOCK BONUS" means an award of Common Stock granted to an
Eligible Recipient pursuant to Section 8 of the Plan.

         2.22. "SUBSIDIARY" means any entity that is directly or indirectly
controlled by the Company or any entity in which the Company has a significant
equity interest, as determined by the Committee.

         2.23. "TAX DATE" means the date any withholding tax obligation arises
under the Code for a Participant with respect to an Incentive Award.

         3. PLAN ADMINISTRATION.

         3.1. THE COMMITTEE. The Plan shall be administered by the Committee as
appointed from time to time by the Board of Directors of the Company, which may
be the Compensation Committee of the Board of Directors. Except as otherwise
specifically provided herein, no person, other than members of the Committee,
shall have any discretion as to decisions regarding the Plan. The Company may
engage a third party to administer routine matters under the Plan, such as
establishing and maintaining accounts for Plan participants and facilitating
transactions by participants pursuant to the Plan.

         In administering the Plan, the Committee may adopt rules and
regulations for carrying out the Plan. The interpretations and decisions made by
the Committee with regard to any question arising under the Plan shall be final
and conclusive on all persons participating or eligible to participate in the
Plan.

         3.2. AUTHORITY OF THE COMMITTEE.

                  (a) In accordance with and subject to the provisions of the
         Plan, the Committee will have the authority to determine all provisions
         of Incentive Awards as the Committee may deem necessary or desirable
         and as consistent with the terms of the Plan, including, without
         limitation, the following:

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                  (i) the Eligible Recipients to be selected as Participants;

                  (ii) the nature and extent of the Incentive Awards to be made
                  to each Participant (including the number of shares of Common
                  Stock to be subject to each Incentive Award, any exercise
                  price, the manner in which Incentive Awards will vest or
                  become exercisable and whether Incentive Awards will be
                  granted in tandem with other Incentive Awards) and the form of
                  written agreement, if any, evidencing such Incentive Award;

                  (iii) the time or times when Incentive Awards will be granted;

                  (iv) the duration of each Incentive Award; and (v) the
                  restrictions and other conditions to which the payment or
                  vesting of Incentive Awards may be subject. In addition, the
                  Committee will have the authority under the Plan in its sole
                  discretion to pay the economic value of any Incentive Award in
                  the form of cash, Common Stock or any combination of both.

                  (b) The Committee will have the authority under the Plan to
         amend or modify the terms of any outstanding Incentive Award in any
         manner, including, without limitation, the authority to modify the
         number of shares or other terms and conditions of an Incentive Award,
         extend the term of an Incentive Award, accelerate the exercisability or
         vesting or otherwise terminate any restrictions relating to an
         Incentive Award, accept the surrender of any outstanding Incentive
         Award or, to the extent not previously exercised or vested, authorize
         the grant of new Incentive Awards in substitution for surrendered
         Incentive Awards; provided, however that the amended or modified terms
         are permitted by the Plan as then in effect and that any Participant
         adversely affected by such amended or modified terms has consented to
         such amendment or modification. No amendment or modification to an
         Incentive Award, however, whether pursuant to this Section 3.2 or any
         other provisions of the Plan, will be deemed to be a regrant of such
         Incentive Award for purposes of this Plan.

                  (c) In the event of (i) any reorganization, merger,
         consolidation, recapitalization, liquidation, reclassification, stock
         dividend, stock split, combination of shares, rights offering,
         extraordinary dividend or divestiture (including a spin-off) or any
         other change in corporate structure or shares, (ii) any purchase,
         acquisition, sale or disposition of a significant amount of assets or a
         significant business, (iii) any change in accounting principles or
         practices, or (iv) any other similar change, in each case with respect
         the Company or any other entity whose performance is relevant to the
         grant or vesting of an Incentive Award, the Committee (or, if the
         Company is not the surviving corporation in any such transaction, the
         board of directors of the surviving corporation) may, without the
         consent of any affected Participant, amend or modify the vesting
         criteria of any outstanding Incentive Award that is based in whole or
         in part on the financial performance of the Company (or any Subsidiary
         or division thereof) or such other entity so as equitably to reflect
         such event, with the desired

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         result that the criteria for evaluating such financial performance of
         the Company or such other entity will be substantially the same (in the
         sole discretion of the Committee or the board of directors of the
         surviving corporation) following such event as prior to such event;
         provided, however, that the amended or modified terms are permitted by
         the Plan as then in effect.

         4. SHARES AVAILABLE FOR ISSUANCE.

         4.1. MAXIMUM NUMBER OF SHARES AVAILABLE. Subject to adjustment as
provided in Section 4.3 of the Plan, the maximum number of shares of Common
Stock that will be available for issuance under the Plan will be 4,000,000
shares.

         4.2. ACCOUNTING FOR INCENTIVE AWARDS. Shares of Common Stock that are
issued under the Plan or that are subject to outstanding Incentive Awards will
be applied to reduce the maximum number of shares of Common Stock remaining
available for issuance under the Plan. Any shares of Common Stock that are
subject to an Incentive Award that lapses, expires, is forfeited or for any
reason is terminated unexercised or unvested and any shares of Common Stock that
are subject to an Incentive Award that is settled or paid in cash or any form
other than shares of Common Stock will automatically again become available for
issuance under the Plan. Any shares of Common Stock that constitute the
forfeited portion of a Restricted Stock Award, however, will not become
available for further issuance under the Plan.

         4.3. ADJUSTMENTS TO SHARES AND INCENTIVE AWARDS. In the event of any
reorganization, merger, consolidation, recapitalization, liquidation,
reclassification, stock dividend, stock split, combination of shares, rights
offering, divestiture or extraordinary dividend (including a spin-off) or any
other change in the corporate structure or shares of the Company, the Committee
(or, if the Company is not the surviving corporation in any such transaction,
the board of directors of the surviving corporation) will make appropriate
adjustment (which determination will be conclusive) as to the number and kind of
securities available for issuance under the Plan and, in order to prevent
dilution or enlargement of the rights of Participants, the number, kind and,
where applicable, exercise price of securities subject to outstanding Incentive
Awards.

         5. PARTICIPATION. Participants in the Plan will be those Eligible
Recipients who, in the judgment of the Committee, have contributed, are
contributing or are expected to contribute to the achievement of economic
objectives of the Company or its Subsidiaries. Eligible Recipients may be
granted from time to time one or more Incentive Awards, singly or in combination
or in tandem with other Incentive Awards, as may be determined by the Committee
in its sole discretion. Incentive Awards will be deemed to be granted as of the
date specified in the grant resolution of the Committee, which date will be the
date of any related agreement with the Participant.

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         6. OPTIONS.

         6.1. GRANT. An Eligible Recipient may be granted one or more Options
under the Plan, and such Options will be subject to such terms and conditions,
consistent with the other provisions of the Plan, as may be determined by the
Committee in its sole discretion. The Committee may designate whether an Option
is to be considered an Incentive Stock Option or a Non-Statutory Stock Option.

         6.2. EXERCISE PRICE. The per share price to be paid by a Participant
upon exercise of an Option will be determined by the Committee in its discretion
at the time of the Option grant, provided that (a) such price will not be less
than 100% of the Fair Market Value of one share of Common Stock on the date of
grant with respect to an Incentive Stock Option (110% of the Fair Market Value
if, at the time the Incentive Stock Option is granted, the Participant owns,
directly or indirectly, more than 10% of the total combined voting power of all
classes of stock of the Company or any parent or subsidiary corporation of the
Company), and (b) such price will not be less than 85% of the Fair Market Value
of one share of Common Stock on the date of grant with respect to a
Non-Statutory Stock Option.

         6.3. EXERCISABILITV AND DURATION. An Option will become exercisable at
such times and in such installments as may be determined by the Committee in its
sole discretion at the time of grant; provided, however, that no Option may be
exercisable after 10 years from its date of grant.

         6.4. PAYMENT OF EXERCISE PRICE. The purchase price of the shares to be
purchased upon exercise of an Option will be payable to the Company in United
States dollars in cash or by check or, such other legal consideration as may be
approved by the Committee in its discretion. The Committee, in its sole
discretion and upon terms and conditions established by the Committee, may allow
such payments to be made, in whole or in part, by tender of a Broker Exercise
Notice, Previously Acquired Shares or by a combination of such methods. The
Committee, in its discretion, may permit a particular Optionee to pay all or a
portion of the Option Price, and/or the tax withholding liability with respect
to the exercise of an Option either by surrendering shares of stock already
owned by such Optionee or by withholding shares of Option Stock, provided that
the Committee determines that the fair market value of such surrendered stock or
withheld Option Stock is equal to the corresponding portion of such Option Price
and/or tax withholding liability, as the case may be, to be paid for therewith.
The Committee, in its sole discretion, may establish such other terms and
conditions for the payment of the exercise price as it deems appropriate.

         6.5. MANNER OF EXERCISE. An Option may be exercised by a Participant in
whole or in part from time to time, subject to the conditions contained in the
Plan and in the agreement evidencing such Option, by delivery in person, by
facsimile or electronic transmission or through the mail of written notice of
exercise to the Company (Attention: Chief Financial Officer) at its principal
executive office in Salt lake City, Utah and by paying in full the total
exercise price for the shares of Common Stock to be purchased in accordance with
Section 6.4 of the Plan.

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         6.6. AGGREGATE LIMITATION OF STOCK SUBJECT TO INCENTIVE STOCK OPTIONS.
To the extent that the aggregate Fair Market Value (determined as of the date an
Incentive Stock Option is granted) of the shares of Common Stock with respect to
which incentive stock options (within the meaning of Section 422 of the Code)
are exercisable for the first time by a Participant during any calendar year
(under the Plan and any other incentive stock option plans of the Company or any
subsidiary or parent corporation of the Company (within the meaning of the
Code)) exceeds $100,000 (or such other amount as may be prescribed by the Code
from time to time), such excess Options will be treated as Non-Statutory Stock
Options. The determination will be made by taking incentive stock options into
account in the order in which they were granted. If such excess only applies to
a portion of an incentive stock option, the Committee, in its discretion, will
designate which shares will be treated as shares to be acquired upon exercise of
an incentive stock option.

         7. RESTRICTED STOCK AWARDS.

         7.1. GRANT. An Eligible Recipient may be granted one or more Restricted
Stock Awards under the Plan, and such Restricted Stock Awards will be subject to
such terms and conditions, consistent with the other provisions of the Plan, as
may be determined by the Committee in its sole discretion. The Committee may
impose such restrictions or conditions, not inconsistent with the provisions of
the Plan, to the vesting of such Restricted Stock Awards as it deems
appropriate, including, without limitation, that the Participant remain in the
continuous employ or service of the Company or a Subsidiary for a certain period
or that the Participant or the Company (or any Subsidiary or division thereof)
satisfy certain performance goals or criteria.

         7.2. RIGHTS AS A STOCKHOLDER; TRANSFERABILITY. Except as provided in
Sections 7.1, 7.3 and 12.3 of the Plan, a Participant will have all voting,
dividend, liquidation and other rights with respect to shares of Common Stock
issued to the Participant as a Restricted Stock Award under this Section 7 upon
the Participant becoming the holder of record of such shares as if such
Participant were a holder of record of shares of unrestricted Common Stock.

         7.3. DIVIDENDS AND DISTRIBUTIONS. Unless the Committee determines
otherwise in its sole discretion (either in the agreement evidencing the
Restricted Stock Award at the time of grant or at any time after the grant of
the Restricted Stock Award), any dividends or distributions (including regular
quarterly cash dividends) paid with respect to shares of Common Stock subject to
the unvested portion of a Restricted Stock Award will be subject to the same
restrictions as the shares to which such dividends or distributions relate. In
the event the Committee determines not to pay such dividends or distributions
currently, the Committee will determine in its sole discretion whether any
interest will be paid on such dividends or distributions. In addition, the
Committee in its sole discretion may require such dividends and distributions to
be reinvested (and in such case the Participants consent to such reinvestment)
in shares of Common Stock that will be subject to the same restrictions as the
shares to which such dividends or distributions relate.

         7.4. ENFORCEMENT OF RESTRICTIONS. To enforce the restrictions referred
to in this Section 7, the Committee may place a legend on the stock certificates
referring to such restrictions and may

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require the Participant, until the restrictions have lapsed, to keep the stock
certificates, together with duly endorsed stock powers, in the custody of the
Company or its transfer agent or to maintain evidence of stock ownership,
together with duly endorsed stock powers, in a certificateless book-entry stock
account with the Company's transfer agent.

         8. STOCK BONUSES. An Eligible Recipient may be granted one or more
Stock Bonuses under the Plan, and such Stock Bonuses will be subject to such
terms and conditions, consistent with the other provisions of the Plan, as may
be determined by the Committee in its sole discretion. The Participant will have
all voting, dividend, liquidation and other rights with respect to the shares of
Common Stock issued to a Participant as a Stock Bonus under this Section 8 upon
the Participant becoming the holder of record of such shares; provided, however,
that the Committee may impose such restrictions on the assignment or transfer of
a Stock Bonus as it deems appropriate.

         9. EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.

         9.1. TERMINATION DUE TO DEATH, DISABILITY OR RETIREMENT. In the event a
Participant's employment or other service with the Company and all Subsidiaries
is terminated by reason of death, Disability or Retirement:

                  (a) All outstanding Options then held by the Participant will
         remain exercisable to the extent exercisable as of such termination
         following such termination until the expiration date of such Option;

                  (b) All Restricted Stock Awards then held by the Participant
         that have not vested will be terminated and forfeited; and

                  (c) All Stock Bonuses then held by the Participant will vest
         and/or continue to vest in the manner determined by the Committee and
         set forth in the agreement evidencing such Stock Bonuses.

         9.2. TERMINATION FOR REASONS OTHER THAN DEATH, DISABILITY OR
RETIREMENT.

                  (a) In the event a Participant's employment or other service
         is terminated with the Company and all Subsidiaries for any reason
         other than death, Disability or Retirement, or a Participant is in the
         employ or service of a Subsidiary and the Subsidiary ceases to be a
         Subsidiary of the Company (unless the Participant continues in the
         employ or service of the Company or another Subsidiary), all rights of
         the Participant under the Plan and any agreements evidencing an
         Incentive Award will immediately terminate without notice of any kind,
         and no Options then held by the Participant will thereafter be
         exercisable, all Restricted Stock Awards then held by the Participant
         that have not vested will be terminated and forfeited, and Stock
         Bonuses then held by the Participant will vest and/or continue to vest
         in the manner determined by the Committee and set forth in the
         agreement evidencing such Stock Bonuses; provided, however, that if
         such termination is due to any reason other than

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         termination by the Company or any Subsidiary for "cause," all
         outstanding Options then held by such Participant will remain
         exercisable to the extent exercisable as of such termination for a
         period of one month after such termination (but in no event after the
         expiration date of any such Option).

                  (b) For purposes of this Section 9.2, "cause" (as determined
         by the Committee) will be as defined in any employment or other
         agreement or policy applicable to the Participant or, if no such
         agreement or policy exists, will mean (i) dishonesty, fraud,
         misrepresentation, embezzlement or deliberate injury or attempted
         injury, in each case related to the Company or any Subsidiary, (ii) any
         unlawful or criminal activity of a serious nature, (iii) any
         intentional and deliberate breach of a duty or duties that,
         individually or in the aggregate, are material in relation to the
         Participant's overall duties, or (iv) any material breach of any
         employment, service, confidentiality or noncompete agreement entered
         into with the Company or any Subsidiary.

         9.3. MODIFICATION OF RIGHTS UPON TERMINATION. Notwithstanding the other
provisions of this Section 9, upon a Participant's termination of employment or
other service with the Company and all Subsidiaries, the Committee may, in its
sole discretion (which may be exercised at any time on or after the date of
grant, including following such termination), cause Options (or any part
thereof) then held by such Participant to become or continue to become
exercisable and/or remain exercisable following such termination of employment
or service and Restricted Stock Awards and Stock Bonuses then held by such
Participant to vest and/or continue to vest or become free of transfer
restrictions, as the case may be, following such termination of employment or
service, in each case in the manner determined by the Committee; provided,
however, that no Option may remain exercisable beyond its expiration date.

         9.4. BREACH OF CONFIDENTIALITY OR NONCOMPETE AGREEMENTS.
Notwithstanding anything in this Plan to the contrary, in the event that a
Participant materially breaches the terms of any confidentiality or noncompete
agreement entered into with the Company or any Subsidiary or takes any other
action that the Committee, in its sole discretion, deems to be adverse to the
interests of the Company or any Subsidiary (an "Adverse Action"), whether such
Adverse Action occurs before or after termination of such Participant's
employment or other service with the Company or any Subsidiary, the Committee in
its sole discretion may immediately terminate all rights of the Participant
under the Plan and any agreements evidencing an Incentive Award then held by the
Participant without notice of any kind. In addition, to the extent that a
Participant takes such Adverse Action during the period beginning 6 months prior
to, and ending 6 months following, the date of such employment or service
termination, the Committee in its sole discretion will have the authority (by so
providing in the agreement evidencing such Incentive Award at the time of grant)
to rescind (i) any grant of an Incentive Award made to such Participant during
such period and (ii) any exercise of an Option of the Participant that was
exercised during such period, and to require the Participant to pay to the
Company, within 10 days of receipt from the Company of notice of such
rescission, the amount of any gain realized from such rescinded grant or
exercise. Such payment will be made in cash (including check, bank draft or
money order) or, with the Committee's consent, shares of

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Common Stock with a Fair Market Value on the date of payment equal to the amount
of such payment. The Company will be entitled to withhold and deduct from future
wages of the Participant (or from other amounts that may be due and owing to the
Participant from the Company or Subsidiary) or make other arrangements for the
collection of all amounts necessary to satisfy such payment obligation.

         9.5. DATE OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE. Unless the
Committee otherwise determines in its sole discretion, a Participant's
employment or other service will, for purposes of the Plan, be deemed to have
terminated on the date recorded on the personnel or other records of the Company
or the Subsidiary for which the Participant provides employment or other
service, as determined by the Committee in its sole discretion based upon such
records.

         10. PAYMENT OF WITHHOLDING TAXES.

         10.1. GENERAL RULES. The Company is entitled to (a) withhold and deduct
from future wages of the Participant (or from other amounts that may be due and
owing to the Participant from the Company or a Subsidiary), or make other
arrangements for the collection of, all legally required amounts necessary to
satisfy any and all federal, state and local withholding and employment-related
tax requirements attributable to an Incentive Award, including, without
limitation, the grant, exercise or vesting of, or payment of dividends with
respect to, an Incentive Award or a disqualifying disposition of stock received
upon exercise of an Incentive Stock Option, or (b) require the Participant
promptly to remit the amount of such withholding to the Company before taking
any action, including issuing any shares of Common Stock, with respect to an
Incentive Award.

         10.2. SPECIAL RULES. The Committee may, in its sole discretion and upon
terms and conditions established by the Committee, permit or require a
Participant to satisfy, in whole or in part, any withholding or
employment-related tax obligation described in Section 12.1 of the Plan by
electing to tender Previously Acquired Shares or a Broker Exercise Notice, or by
a combination of such methods.

         11.      CHANGE IN CONTROL.

         11.1. CHANGE IN CONTROL. For purposes of this Section 11.1, a "Change
in Control" of the Company will mean (a) the sale, lease, exchange or other
transfer of substantially all of the assets of the Company (in one transaction
or in a series of related transaction) to a person or entity that is not
controlled, directly or indirectly, by the Company, (b) a merger or
consolidation to which the Company is a party if the stockholders of the Company
immediately prior to effective date of such merger or consolidation do not have
"beneficial ownership" (as defined in Rule 13d-3 under the Exchange Act)
immediately following the effective date of such merger or consolidation of more
than 80% of the combined voting power of the surviving corporation's outstanding
securities ordinarily having the right to vote at elections of directors, or (c)
a change in control of the Company of a nature that would be required to be
reported pursuant to Section 13 or 15(d) of the Exchange Act, whether or not the
Company is then subject to such reporting requirements, including, without

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limitation, such time as (i) any person becomes, after the effective date of the
Plan, the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of 40% or more of the combined voting power of the
Company's outstanding securities ordinarily having the right to vote at
elections of directors, or (ii) individuals who constitute the Board on the
effective date of the Plan cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent
to the effective date of the Plan whose election, or nomination for election by
the Company's stockholders, was approved by a vote of at least a majority of the
directors comprising the Board on the effective date of the Plan will, for
purposes of this clause (ii), be considered as though such persons were a member
of the Board on the effective date of the Plan.

         11.2. ACCELERATION OF VESTING. Without limiting the authority of the
Committee under Section 3.2 of the Plan, if a Change in Control of the Company
occurs, then, if approved by the Committee in its sole discretion either in an
agreement evidencing an Incentive Award at the time of grant or at any time
after the grant of an Incentive Award, (a) all Options will become immediately
exercisable in full and will remain exercisable for the remainder of their
terms, regardless of whether the Participants to whom such Options have been
granted remain in the employ or service of the Company or any Subsidiary; (b)
all outstanding Restricted Stock Awards will become immediately fully vested;
and (c) and Stock Bonuses then held by the Participant will vest and/or continue
to vest in the manner determined by the Committee and set forth in the agreement
evidencing such or Stock Bonuses.

         11.3. CASH PAYMENT FOR OPTIONS. If a Change in Control of the Company
occurs, then the Committee, if approved by the Committee in its sole discretion
either in an agreement evidencing an Incentive Award at the time of grant or at
any time after the grant of an Incentive Award, and without the consent of any
Participant effected thereby, may determine that some or all Participants
holding outstanding Options will receive, with respect to and in lieu of some or
all of the shares of Common Stock subject to such Options, as of the effective
date of any such Change in Control of the Company, cash in an amount equal to
the excess of the Fair Market Value of such shares immediately prior to the
effective date of such Change in Control of the Company over the exercise price
per share of such Options.

         11.4. LIMITATION ON CHANGE IN CONTROL PAYMENTS. Notwithstanding
anything in Section 11.2 or 11.3 of the Plan to the contrary, if, with respect
to a Participant, the acceleration of the vesting of an Incentive Award as
provided in Section 11.2 or the payment of cash in exchange for all or part of
an Incentive Award as provided in Section 11.3 (which acceleration or payment
could be deemed a "payment" within the meaning of Section 280G(b)(2) of the
Code), together with any other payments which such Participant has the right to
receive from the Company or any corporation that is a member of an "affiliated
group" (as defined in Section 1504(a) of the Code without regard to Section
1504(b) of the Code) of which the Company is a member, would constitute a
"parachute payment" (as defined in Section 280G(b)(2) of the Code), then the
payments to such Participant pursuant to Section 11.2 or 11.3 will be reduced to
the largest amount as will result in no portion of such payments being subject
to the excise tax imposed by Section 4999 of the Code; provided, however, that
if such Participant is subject to a separate agreement with the Company or a
Subsidiary

                                       11
<PAGE>   12

which specifically provides that payments attributable to one or more forms of
employee stock incentives or to payments made in lieu of employee stock
incentives will not reduce any other payments under such agreement, even if it
would constitute an excess parachute payment, then the limitations of this
Section 11.4 will, to that extent, not apply.

         12. RIGHTS OF ELIGIBLE RECIPIENTS AND PARTICIPANTS: TRANSFERABILITY.

         12.1. EMPLOYMENT OR SERVICE. Nothing in the Plan will interfere with or
limit in any way the right of the Company or any Subsidiary to terminate the
employment or service of any Eligible Recipient or Participant at any time, nor
confer upon any Eligible Recipient or Participant any right to continue in the
employ or service of the Company or any Subsidiary.

         12.2. RIGHTS AS A STOCKHOLDER. As a holder of Incentive Awards (other
than Restricted Stock Awards), a Participant will have no rights as a
stockholder unless and until such Incentive Awards are exercised for, or paid in
the form of, shares of Common Stock and the Participant becomes the holder of
record of such shares. Except as otherwise provided in the Plan, no adjustment
will be made for dividends or distributions with respect to such Incentive
Awards as to which there is a record date preceding the date the Participant
becomes the holder of record of such shares, except as the Committee may
determine in its discretion.

         12.3. RESTRICTIONS ON TRANSFER. Except pursuant to testamentary will or
the laws of descent and distribution or as otherwise expressly permitted by the
Committee or the Plan, no right or interest of any Participant in an Incentive
Award prior to the exercise or vesting of such Incentive Award will be
assignable or transferable, or subjected to any lien; during the lifetime of the
Participant, either voluntarily or involuntarily, directly or indirectly by
operation of law or otherwise. A Participant will, however, be entitled to
designate a beneficiary to receive an Incentive Award upon such Participant's
death, and in the event of a Participant's death, payment of any amounts due
under the Plan will be made to, and exercise of any Options may be made by, the
Participant's legal representatives, heirs and legatees.

         12.4. NON-EXCLUSIVITY OF THE PLAN. Nothing contained in the Plan is
intended to modify or rescind any previously approved compensation plans of
programs of the Company or create any limitations on the power or authority of
the Board to adopt such additional or other compensation arrangements as the
Board may deem necessary or desirable.

         12.5. SECURITIES LAW AND OTHER RESTRICTIONS. Notwithstanding any other
provision of the Plan or any agreements entered into pursuant to the Plan, the
Company will not be required to issue any shares of Common Stock under this
Plan, and a Participant may not sell, assign, transfer or otherwise dispose of
shares of Common Stock issued pursuant to Incentive Awards granted under the
Plan, unless (a) there is in effect with respect to such shares a registration
statement under the Securities Act and any applicable state securities laws or
an exemption from such registration under the Securities Act and applicable
state securities laws, and (b) there has been obtained any other consent,
approval or permit from any other regulatory body which the Committee, in its
sole

                                       12
<PAGE>   13

discretion, deems necessary or advisable. The Company may condition such
issuance, sale or transfer upon the receipt of any representations or agreements
from the parties involved, and the placement of any legends on certificates
representing shares of Common Stock, as may be deemed necessary or advisable by
the Company in order to comply with such securities law or other restrictions.

         13. PLAN AMENDMENT. MODIFICATION AND TERMINATION. The Board may suspend
or terminate the Plan or any portion thereof at any time, and may amend the Plan
from time to time in such respects as the Board may deem advisable in order that
Incentive Awards under the Plan will conform to any change in applicable laws or
regulations or in any other respect the Board may deem to be in the best
interests of the Company; provided, however, that (a) the Board will not have
the authority to amend the eligibility requirements for Options granted pursuant
to Section 6.7 of the Plan, or to modify the number of shares, exercise price,
exercisability, duration, manner of payment or other terms with respect to such
Options, more than once every six months, other than to comply with changes in
the Code, the Employee Retirement Income Security Act or the rules promulgated
thereunder; and (b) no amendments to the Plan will be effective without approval
of the stockholders of the Company if stockholder approval of the amendment is
then required pursuant to Rule 16b-3 under the Exchange Act, Section 422 of the
Code or the rules of the National Association of Securities Dealers, Inc. No
termination, suspension or amendment of the Plan may adversely affect any
outstanding Incentive Award without the consent of the affected Participant;
provided, however, that this sentence will not impair the right of the Committee
to take whatever action it deems appropriate under Sections 4.3 and 11 of the
Plan.

         14. EFFECTIVE DATE AND DURATION OF THE PLAN. The Plan is effective as
of February 7, 2000, the date it was adopted by the Board. The Plan will
terminate at midnight on November 18, 2010, and may be terminated prior to such
time to by Board action, and no Incentive Award will be granted after such
termination. Incentive Awards outstanding upon termination of the Plan may
continue to be exercised, or become free of restrictions, in accordance with
their terms.

         15. MISCELLANEOUS.

         15.1. GOVERNING LAW. The validity, construction, interpretation,
administration and effect of the Plan and any rules, regulations and actions
relating to the Plan will be governed by and construed exclusively in accordance
with the laws of the State of Texas.

         15.2. SUCCESSORS AND ASSIGNS. The Plan will be binding upon and inure
to the benefit of the successors and permitted assigns of the Company and the
Participants.

                                       13<PAGE>   1
                                                                     Exhibit 4.1

                              AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT

      This Amended and Restated Registration Rights Agreement, dated as of May
7, 1998 (this "Agreement"), is entered into by and among Lexicon Genetics
Incorporated, a Delaware corporation (the "Company"), the persons listed on
Schedule A hereto (the "Common Holders") and the persons listed on Schedule B
hereto (the "Series A Holders").

                                   WITNESSETH:

      WHEREAS, the Company and the Common Holders are parties to a Registration
Rights Agreement dated as of September 14, 1995 (the "Existing Agreement")
pursuant to which the Common Holders possess certain rights with respect to the
registration of the offer and sale of shares of the Common Stock, par value
$0.001 per share ("Common Stock"), of the Company under the Securities Act of
1933, as amended; and

      WHEREAS, the Company proposes to enter into a Series A Preferred Stock
Purchase Agreement (the "Stock Purchase Agreement") with the Series A Holders
providing for the purchase by the Series A Holders of shares of the Series A
Preferred Stock, par value $0.01 per share ("Series A Preferred Stock"), of the
Company; and

      WHEREAS, the obligations of the Series A Holders under the Stock Purchase
Agreement are conditioned upon the execution and delivery of this Agreement by
the Company and the Common Holders;

      NOW, THEREFORE, the parties hereto agree as follows:

      1.    CERTAIN DEFINITIONS. As used in this Agreement, the following terms
shall have the meanings set forth below:

            (a)   "Cain Shares" shall mean the Common Shares issued by the
      Company to Gordon A. Cain.

            (b)   "Commercially Reasonable Best Efforts" when used with respect
      to an obligation to be performed or term or provision to be observed
      hereunder, shall mean such efforts (including, without limitation,
      expenditures of funds) as a prudent person seeking the benefits of such
      performance or action would make, use, apply or exercise to preserve,
      protect or advance its rights or interests.

            (c)   "Commission" shall mean the Securities and Exchange Commission
      or any other federal agency at the time administering the Securities Act.

            (d)   "Company" shall have the meaning set forth in the initial
      paragraph of this Agreement.

            (e)   "Common Holders" shall have the meaning set forth in the
      initial paragraph of this Agreement.

            (f)   "Common Stock" shall have the meaning set forth in the
      recitals of this Agreement.

            (g)   "Common Shares" shall mean the shares of Common Stock issued
      or issuable by the Company to the Common Holders and any shares of Common
      Stock issued as a dividend or other distribution with respect to or in
      exchange for or in replacement of such shares.

                                       1
<PAGE>   2
            (h)   "Conversion Shares" shall mean (i) the shares of Common Stock
      issued or issuable upon conversion of the Series A Preferred Stock, (ii)
      the shares of Common Stock issued or issuable upon the exercise of the
      warrants issued to Punk, Ziegel & Company in connection with the sale of
      the Series A Preferred Stock and (iii) any shares of Common Stock issued
      as a dividend or other distribution with respect to or in exchange for or
      in replacement of such shares.

            (i)   "Exchange Act" shall mean the Securities Exchange Act of 1934,
      as amended, or any similar successor federal statute and the rules and
      regulations thereunder, all as the same shall be in effect from time to
      time.

            (j)   "Holder" shall mean (i) any Common Holder who holds
      Registrable Securities, (ii) any Series A Holder who holds Registrable
      Securities and (iii) any other holder of Registrable Securities to whom
      the registration rights conferred by this Agreement have been transferred
      in compliance with Section 9 hereof.

            (k)   "Initiating Holders" shall mean (i) any Holder or Holders who
      in the aggregate hold at least 25% of the then-outstanding Cain Shares
      that constitute Registrable Securities or (ii) any Holder or Holders who
      in the aggregate hold at least 25% of the then-outstanding Conversion
      Shares that constitute Registrable Securities.

            (l)   "Person" means any individual, corporation, partnership, joint
      venture, association, joint-stock company, trust, unincorporated
      organization or government or other agency or political subdivision
      thereof.

            (m)   "Prospectus" means the prospectus included in any Registration
      Statement (including without limitation, a prospectus that discloses
      information previously omitted from a prospectus filed as part of an
      effective registration statement in reliance upon Rule 430A promulgated
      under the Securities Act), as amended or supplemented by any prospectus
      supplement, with respect to the terms of the offering of any portion of
      the securities covered by such Registration Statement, and all other
      amendments and supplements to the prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such prospectus.

            (n)   The terms "register," "registered" and "registration" shall
      refer to a registration effected by preparing and filing a Registration
      Statement in compliance with the Securities Act and applicable rules and
      regulations thereunder, and the declaration or ordering of the
      effectiveness of such Registration Statement.

            (o)   "Registrable Securities" shall mean (i) the Common Shares and
      (ii) the Conversion Shares, provided, however, that Registrable Securities
      shall not include any shares of Common Stock which have been disposed of
      pursuant to an effective Registration Statement, which have been sold or
      otherwise transferred under Rule 144 or which may be sold pursuant to Rule
      144(k) pursuant to the terms set forth herein.

            (p)   "Registration Expenses" shall mean all expenses incident to
      the Company's performance of or compliance with this Agreement including,
      without limitation: (i) all registration and filing fees, (ii) the fees
      and expenses of compliance with securities or blue sky laws (including
      fees and disbursements of

                                       2
<PAGE>   3
      counsel in connection with blue sky qualifications of the Registrable
      Securities), (iii) all printing, messenger and delivery expenses, (iv) the
      Company's internal expenses (including, without limitation, all salaries
      and expenses of its officers and employees performing legal or accounting
      duties), (v) the fees and expenses incurred in connection with the listing
      or quotation, as appropriate, of the Registrable Securities, (vi) the fees
      and disbursements of counsel for the Company and the fees and expenses for
      independent certified public accountants retained by the Company
      (including the expenses of any special audit or cold comfort letters),
      (vii) the fees and expenses of any special experts retained by the Company
      in connection with such registration, and (viii) the reasonable fees and
      expenses of one firm of counsel for the Series A Holders who are selling
      Registrable Securities pursuant to a Registration Statement, but shall not
      include Selling Expenses.

            (q)   "Registration Statement" means any registration statement of
      the Company which covers any of the Registrable Securities pursuant to the
      provisions of this Agreement, including the Prospectus, amendments and
      supplements to such Registration Statement, including post-effective
      amendments, all exhibits and all material incorporated by reference in
      such Registration Statement.

            (r)   "Rule 144" shall mean Rule 144 as promulgated by the
      Commission under the Securities Act, as such Rule may be amended from time
      to time, or any similar successor rule that may be promulgated by the
      Commission.

            (s)   "Rule 145" shall mean Rule 145 as promulgated by the
      Commission under the Securities Act, as such Rule may be amended from time
      to time, or any similar successor rule that may be promulgated by the
      Commission.

            (t)   "Securities Act" shall mean the Securities Act of 1933, as
      amended, or any similar successor federal statute and the rules and
      regulations thereunder, all as the same shall be in effect from time to
      time.

            (u)   "Selling Expenses" shall mean all underwriting discounts and
      selling commissions applicable to the sale of Registrable Securities and
      all fees and disbursements of counsel for any Holder (other than the fees
      and disbursements of counsel included in Registration Expenses or paid by
      the Company pursuant to Section 4).

            (v)   "Series A Holders" shall have the meaning set forth in the
      initial paragraph of this Agreement.

      2.    DEMAND REGISTRATION.

      2.1   Request for Registration. (a) If the Company shall receive from
Initiating Holders, at any time or times not earlier than 180 days after the
effective date of the first Registration Statement under the Securities Act
filed by the Company for an offering of its securities to the general public, a
written request (the "Request") that the Company effect any registration for the
offer and sale of all or a part of the Registrable Securities held by the
Holders participating in the proposed registration, for an amount of Shares
which is not less than 15% of the aggregate combined number of the then
outstanding shares held by Gordon A. Cain and the Series A Holders (calculated
as if all such outstanding shares have been converted into Common Stock), under
the Securities Act, the Company will:

                                       3
<PAGE>   4
            (i)   within ten (10) days of the receipt of the Request, give
      written notice of the proposed registration to all other Holders; and

            (ii)  as soon as practicable, use Commercially Reasonable Best
      Efforts to effect such registration (including, without limitation, filing
      a Registration Statement and any appropriate pre-effective or
      post-effective amendments, appropriate qualifications under applicable
      blue sky or other state securities laws, and appropriate compliance with
      the Securities Act) so as to permit or facilitate the sale and
      distribution of all or such portion of the Registrable Securities as are
      specified in such Request, together with all or such portion of the
      Registrable Securities of any Holder or Holders joining in such request as
      are specified in a written request received by the Company within 20 days
      after such written notice from the Company is effective.

      Each Request shall specify the amount of Registrable Securities proposed
to be sold and the intended method(s) of disposition thereof.

      (b)   The Company shall not be obligated to effect, or to take any action
to effect, any such registration pursuant to this Section 2:

            (i)   in any particular jurisdiction in which the Company would be
      required to execute a general consent to service of process in effecting
      such registration, qualification, or compliance, unless the Company is
      already subject to service in such jurisdiction and except as may be
      required by the Securities Act;

            (ii)  prior to the expiration of a period of twelve months after the
      Company has initiated any previous registration pursuant to this Section
      2.1, or after the Company has initiated a total of three such
      registrations pursuant to this Section 2.1; provided that the Company
      shall not be required to effect (A) more than two such registrations
      requested solely by Initiating Holders of Conversion Shares and (B) more
      than one such registration requested solely by Initiating Holders of Cain
      Shares; and provided further that a registration initiated pursuant to
      this Section 2.1 and subsequently withdrawn by the Holders registering
      shares therein shall not be counted as a requested registration pursuant
      to this clause (ii) if such withdrawal is based upon material adverse
      information relating to the Company that is not known by the Initiating
      Holders at the time of their request for registration pursuant to this
      Section 2.1 or if the Holders bear the Registration Expenses for such
      registration;

            (iii) during the period starting with the date 60 days prior to the
      Company's good faith estimate of the date of filing of, and ending on a
      date 180 days after the effective date of, a Company-initiated
      registration (other than a registration relating solely to employee
      benefit plans or a registration relating solely to a Rule 145
      transaction), provided that the Company is actively employing in good
      faith all Commercially Reasonable Best Efforts to cause such Registration
      Statement to become effective;

            (iv)  if the Initiating Holders do not request that such offering be
      firmly underwritten by underwriters selected by a majority in interest of
      the Initiating Holders (subject to the consent of the Company, which
      consent will not be unreasonably withheld); provided that the foregoing
      condition to the Company's obligation to effect a requested registration
      shall not apply in the event the registration may be effected on Form S-3;

                                       4
<PAGE>   5
            (v)   if the Company and the Initiating Holders are unable to obtain
      the commitment of the underwriters described in clause (iv) above, if
      applicable, to firmly underwrite the offer; or

            (vi)  if, within 14 days after its receipt of a written request to
      effect such registration, the Company causes to be delivered to the
      Initiating Holders an opinion of counsel reasonably acceptable to the
      Initiating Holders to the effect that the proposed disposition of
      Registrable Securities by the Holders wishing to dispose of their
      Registrable Securities pursuant to this Section 2 will not require
      registration or qualification under the Securities Act, it being
      specifically understood and agreed that such Holders will promptly furnish
      to the Company and such counsel all information such counsel may
      reasonably request in order to enable such counsel to determine whether it
      would be able to render such opinion.

      2.2   Right to Defer Registration. Subject to the provisions of Section
2.1(b), the Company shall use Commercially Reasonable Best Efforts to file a
Registration Statement covering the Registrable Securities so requested to be
registered as soon as practicable after receipt of the Request or Requests of
the Holders wishing to dispose of their Registrable Securities pursuant to this
Section 2; provided, however, that if (i) in the good faith judgment of the
Board of Directors of the Company, such registration would be seriously
detrimental to the Company and the Board of Directors of the Company concludes,
as a result, that it is essential to defer the filing of such Registration
Statement at such time, and (ii) the Company shall furnish to such Holders a
certificate signed by the President of the Company stating that in the good
faith judgment of the Board of Directors of the Company, it would be seriously
detrimental to the Company for such Registration Statement to be filed in the
near future and that it is, therefore, essential to defer the filing of such
Registration Statement, then the Company shall have the right to defer such
filing for the period during which such disclosure would be seriously
detrimental, provided that (except as provided in Section 2.1(b)(iii) above) the
Company may not defer the filing for a period of more than 90 days after receipt
of the request of the Initiating Holders, and, provided further, that the
Company shall not defer its obligation in this manner more than twice in any
twelve-month period.

      2.3   Underwriting. (a) If the registration requested by the Initiating
Holders is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 2.1 (a) above. In such event, the right of any Holder to
registration pursuant to Section 2 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting
(together with the Company and other holders of securities of the Company
exercising registration rights with respect to such registration) shall enter
into an underwriting agreement in customary form with the representative of the
underwriter or underwriters selected by a majority in interest of the Initiating
Holders, subject to the consent of the Company, which consent shall not be
unreasonably withheld.

      (b)   Notwithstanding any other provision of this Section 2, if the
representative of the underwriters advises the Initiating Holders in writing
that marketing factors require a limitation on the number of shares to be
underwritten, the number of shares to be included in the underwriting or
registration shall be allocated first to the Holders of the same kinds of Shares
as the Initiating Holders (, Cain Shares or Conversion Shares) and thereafter as
set forth in Section 10 hereof. If a person who has requested inclusion in such
registration as provided above does not agree to the terms of any such
underwriting, such person shall be excluded therefrom by written notice from the
Company, the underwriter or the Initiating Holders. Any Registrable Securities
or other securities excluded or withdrawn from such underwriting shall also be
withdrawn from such registration. If shares are so withdrawn from the
registration and if the number of shares to be included in such registration was
previously reduced as a result of marketing factors pursuant to this Section
2.3, then the Company shall offer to all Holders who have retained rights

                                       5
<PAGE>   6
to include securities in the registration the right to include additional
securities in the registration in an aggregate amount equal to the number of
shares so withdrawn, with such shares to be allocated among such Holders
requesting additional inclusion first to the Initiating Holders with respect to
the Cain Shares and Conversion Shares requested to be included by the Initiating
Holders in such registration, then to the Holders of the same kinds of Shares as
the Initiating Holders (e.g., Cain Shares or Conversion Shares) and thereafter
in accordance with Section 10 hereof.

      3.    PIGGYBACK REGISTRATION.

      3.1   Notice of Registration. If the Company shall determine to register
any of its securities either for its own account or the account of a security
holder or holders exercising their respective demand registration rights (other
than pursuant to Section 2 hereof), other than a registration relating solely to
employee benefit plans, a registration relating solely to a Rule 145
transaction, or a registration on any registration form that does not permit
secondary sales, the Company will:

            (i)   promptly give to each Holder written notice thereof (but in no
      event less than 30 days before the anticipated date of filing); and

            (ii)  use Commercially Reasonable Best Efforts to include in such
      registration (and any related qualification under blue sky laws or other
      compliance), except as set forth in Section 3.2 below, and in any
      underwriting involved therein (to be included on the same terms and
      conditions as any similar securities of the Company or any other security
      holder included therein and to permit the sale or other disposition of
      such Registrable Securities in accordance with the terms of such
      underwriting), all the Registrable Securities specified in a written
      request or requests, made by any Holder within 20 days after the written
      notice from the Company described in clause (i) above is given. Such
      written request may specify all or a part of a Holder's Registrable
      Securities.

      3.2   Right to Terminate Registration. The Company shall have the right to
terminate or withdraw any registration initiated by it under this Section 3
prior to the effectiveness of such registration whether or not any Holder has
elected to include Registrable Securities in such registration. The Holders
shall be permitted to withdraw all or any part of the Registrable Securities
from a registration pursuant to this Section 3 at any time prior to the
effectiveness of such registration.

      3.3   Underwriting. (a) If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 3.1 above. In such event, the right of any Holder to
registration pursuant to this Section 3 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting
(together with the Company and such other holders of securities of the Company
exercising registration rights with respect to such registration) shall enter
into an underwriting agreement in customary form with the representative of the
underwriter or underwriters selected by the Company or the security holders
initiating such registration, as the case may be.

      (b)   Notwithstanding any other provision of this Section 3, if the
representative of the underwriters advises the Company in writing that marketing
factors require a limitation on the number of shares to be underwritten, the
representative may (subject to the limitations set forth below) exclude all
Registrable Securities from, or limit the number of Registrable Securities to be
included in, the registration and underwriting. The Company shall so advise all
holders of securities requesting registration, and the amount of securities that
are

                                       6
<PAGE>   7
entitled to be included in the registration and underwriting shall be allocated
first to the Company for securities being sold for its own account and
thereafter as set forth in Section 10 hereof. If any person does not agree to
the terms of any such underwriting, such person shall be excluded therefrom by
written notice from the Company or the underwriter. Any Registrable Securities
or other securities excluded or withdrawn from such underwriting shall be
withdrawn from such registration.

      3.4   Continuing Obligation. No registration effected under this Section
3, and no failure to effect a registration under this Section 3, shall relieve
the Company of its obligation to effect a registration upon the request of
Holders pursuant to Section 2 (except as expressly provided therein), and no
failure to effect a registration under this Section 3 and to complete the sale
of Registrable Securities in connection therewith shall relieve the Company of
any other obligation under this Agreement (including, without limitation, the
Company's obligations to satisfy in full the Registration Expenses and its
obligations pursuant to Section 6.1).

      4.    EXPENSES OF REGISTRATION. All Registration Expenses incurred in
connection with any registration, qualification or compliance pursuant to this
Agreement, including the reasonable fees of one counsel for the selling
stockholders in the case of a registration pursuant to Section 2 or Section 3
shall be borne by the Company. All Selling Expenses relating to securities so
registered shall be borne by the holders of such securities pro rata on the
basis of the number of shares of securities so registered on their behalf.

      5.    REGISTRATION PROCEDURES. In the case of each registration effected
by the Company pursuant to this Agreement, the Company will keep each Holder
advised in writing as to the initiation of each registration and as to the
completion thereof. At its expense, the Company will use Commercially Reasonable
Best Efforts to:

            (a)   keep such registration effective for a period of 120 days or
      until the Holder or Holders have completed the distribution described in
      the Registration Statement relating thereto, whichever first occurs;
      provided, however, that such 120-day period shall be extended for a period
      of time equal to the period after the effectiveness of such requirements
      that the Holder refrains from selling any securities included in such
      registration at the request of an underwriter of Common Stock (or other
      securities) of the Company; provided further, however, that in the case of
      a Registration Statement on Form S-3 (or any substitute form that may be
      adopted by the Commission) the Company will keep such registration
      effective for a period of 5 years or until the Holders have completed the
      distribution of all of their Registrable Securities;

            (b)   promptly prepare and file with the Commission such amendments
      and post-effective amendments to the Registration Statement as may be
      necessary to keep such Registration Statement effective for as long as
      such registration is required to remain effective pursuant to the terms
      hereof; cause the Prospectus to be supplemented by any required Prospectus
      supplement, and, as so supplemented, to be filed pursuant to Rule 424
      under the Securities Act; and comply with the provisions of the Securities
      Act applicable to it with respect to the disposition of all Registrable
      Securities covered by such Registration Statement during the applicable
      period in accordance with the intended methods of disposition by the
      selling Holders set forth in such Registration Statement or supplement to
      the Prospectus;

            (c)   furnish such number of prospectuses and other documents
      incident thereto, including any amendment of or supplement to the
      prospectus, as a Holder from time to time may reasonably request;

            (d)   within a reasonable time period (to allow the opportunity, for
      review and comment, as set forth below) prior to filing a Registration
      Statement or a Prospectus or any amendment or supplement to

                                       7
<PAGE>   8
      such Registration Statement or Prospectus furnish to (i) each selling
      Holder, (ii) not more than one counsel, if any, representing all selling
      Holders, to be selected by a majority-in-interest of such selling Holders,
      and (iii) each underwriter, if any, of the Registrable Securities covered
      by such Registration Statement copies of such Registration Statement as
      proposed to be filed, together with exhibits thereto, for purposes of each
      such person's review and comment, and thereafter furnish to such selling
      Holders, counsel and underwriters, if any, for their review and comment
      such number of copies of such Registration Statement, each amendment and
      supplement thereto (in each case including all exhibits thereto and
      documents incorporated by reference therein), the Prospectus included in
      such Registration Statement (including each Prospectus subject to
      completion) and such other documents or information as such selling
      Holders, counsel or underwriters may reasonably request in order to
      facilitate the disposition of the Registrable Securities;

            (e)   notify each selling Holder of (and in any event within
      twenty-four (24) hours of the receipt of) any stop order issued or
      threatened by the Commission and take all reasonable actions required to
      prevent the entry of such stop order or to remove it at the earliest
      possible moment if entered;

            (f)   on or prior to the date on which the Registration Statement is
      declared effective by the Commission, use all reasonable efforts to (i)
      register or qualify the Registrable Securities under such other securities
      or blue sky laws of such jurisdictions in the United States as any selling
      Holder reasonably (in light of the intended plan of distribution)
      requests, and (ii) file documents required to register such Registrable
      Securities with or approved by such other governmental agencies or
      authorities in the United States as may be necessary by virtue of the
      business and operations of the Company and do any and all other acts and
      things that may be reasonably necessary or advisable to enable such
      selling Holder to consummate the disposition of the Registrable Securities
      owned by such selling Holder; provided that the Company will not be
      required to (A) qualify generally to do business in any jurisdiction where
      it would not otherwise be required to qualify but for this paragraph (f),
      (B) subject itself to taxation in any such jurisdiction or (C) consent to
      general service of process in any such jurisdiction;

            (g)   notify each selling Holder, selling Holders' counsel and any
      underwriter promptly (and in any event within 24 hours) and (if requested
      by any such Person) confirm such notice in writing, (i) when a Prospectus
      or any Prospectus supplement or post-effective amendment has been filed
      and, with respect to a Registration Statement or any post-effective
      amendment, when the same has become effective, (ii) of any request by the
      Commission or any other federal or state governmental authority for
      amendments or supplements to a Registration Statement or Prospectus or for
      additional information to be included in any Registration Statement or
      Prospectus or otherwise, (iii) of the issuance by the Commission of any
      stop order suspending the effectiveness of a Registration Statement or the
      initiation or threatening of any proceedings for that purpose, (iv) of the
      issuance by any state securities commission or other regulatory authority
      of any order suspending the qualification or exemption from qualification
      of any of the Registrable Securities under state securities or "blue sky"
      laws or the initiation of any proceedings for that purpose, and (v) of the
      happening of any event which makes any statement made in a Registration
      Statement or related Prospectus or any document incorporated or deemed to
      be incorporated by reference therein untrue or which requires the making
      of any changes in such Registration Statement, Prospectus or documents so
      that they will not contain any untrue statement of a material fact or omit
      to state any material fact required to be stated therein or necessary to
      make the statements in the Registration Statement and Prospectus not
      misleading in light of the circumstances under which they were made; and,
      as promptly as practicable thereafter, prepare and file with the
      Commission and furnish a supplement or amendment to

                                       8
<PAGE>   9
      such Prospectus so that, as thereafter deliverable to the purchasers of
      such Registrable Securities, such Prospectus will not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements therein, in light of the circumstances under which
      they were made, not misleading;

            (h)   make generally available an earnings statement satisfying the
      provisions of Section 11(a) of the Securities Act no later than ninety
      (90) days after the end of the 12month period beginning with the first day
      of the Company's first fiscal quarter commencing after the effective date
      of a Registration Statement, which earnings statement shall cover said
      12-month period, and which requirement will be deemed to be satisfied if
      the Company timely files complete and accurate information on Forms 10-Q,
      10-K and 8-K under the Exchange Act and otherwise complies with Rule 158
      under the Securities Act;

            (i)   if requested by the managing underwriter or underwriters,
      selling Holders' counsel, or any selling Holder, unless otherwise advised
      by counsel, promptly incorporate in a Prospectus supplement or
      post-effective amendment such information as the managing underwriter or
      underwriters request, or selling Holders' counsel requests, to be included
      therein, including, without limitation, with respect to the Registrable
      Securities being sold by such selling Holder to such underwriter or
      underwriters, the purchase price being paid therefor by such underwriter
      or underwriters and with respect to any other terms of the underwritten
      offering of the Registrable Securities to be sold in such offering, and
      promptly make all required filings of such Prospectus supplement or
      post-effective amendment;

            (j)   enter into customary agreements reasonably satisfactory to the
      Company (including, if applicable, an underwriting agreement in customary
      form and which is reasonably satisfactory to the Company) and take such
      other actions as are reasonably required in order to expedite or
      facilitate the disposition of such Registrable Securities (the selling
      Holders, at their option may, require that any or all of the
      representations, warranties and covenants of the Company to or for the
      benefit of such underwriters also be made to and for the benefit of such
      selling Holders);

            (k)   make available to each selling Holder (and will deliver to
      their counsel) and each underwriter, if any, subject to restrictions
      imposed by the United States federal government or any agency or
      instrumentality thereof, copies of all correspondence between the
      Commission and the Company, its counsel or auditors and will also make
      available for inspection at reasonable times at the Company's offices by
      any selling Holder of such Registrable Securities, any underwriter
      participating in any disposition pursuant to such Registration Statement
      and any attorney, accountant or other professional retained by any such
      Selling Holder or underwriter (collectively, the "Inspectors"), all
      financial and other records, pertinent corporate documents and properties
      of the Company as shall be reasonably necessary to enable them to exercise
      their due diligence responsibility, and cause the Company's officers and
      employees to supply all information reasonably requested by any Inspectors
      in connection with such Registration Statement;

            (1)   in connection with an underwritten offering, participate, to
      the extent reasonably requested by the managing underwriter or
      underwriters for the offering or the selling Holders, in customary efforts
      to sell the securities under the offering, including, without limitation,
      participating in "road shows"; provided that the Company shall not be
      obligated to participate in more than two such selling efforts in any
      12-month period;

                                       9
<PAGE>   10
            (m)   during the period when the Prospectus is required to be
      delivered under the Securities Act, promptly file all documents required
      to be filed with the Commission pursuant to Section 13(a), 13(c), 14 or
      15(d) of the Exchange Act;

            (n)   use all reasonable efforts to obtain a cold comfort letter
      from the Company's independent public accountants in customary form and
      covering such matters of the type customarily covered by cold comfort
      letters, as the selling Holders may request;

            (o)   cause all such Registrable Securities registered pursuant
      hereunder to be listed on each securities exchange on which similar
      securities issued by the Company are then listed;

            (p)   provide a transfer agent and registrar for all Registrable
      Securities registered pursuant to such Registration Statement and a CUSIP
      number for all such Registrable Securities, in each case not later than
      the effective date of such registration; and

            (q)   otherwise comply with all applicable rules and regulations
      of the Commission.

      6.    INDEMNIFICATION.

      6.1   Indemnification by the Company. The Company agrees to indemnify and
hold harmless, to the fullest extent permitted by law, each selling Holder, its
partners, officers, directors, employees and agents, and each Person, if any,
who controls such selling Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, together with the partners,
officers, directors, employees and agents of such controlling Person
(collectively, the "Controlling Persons"), from and against any loss, claim,
damage, liability, attorneys' fees, cost or expense and costs and expenses of
investigating and defending any such claim (collectively, the "Damages") and any
action in respect thereof to which such selling Holder, its partners, officers,
directors, employees and agents, and any such Controlling Person may become
subject under the Securities Act or otherwise, insofar as such Damages (or
proceedings in respect thereof) arise out of, or are based upon, any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement or Prospectus or any preliminary Prospectus, or arise out
of, or are based upon, any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading under light of the circumstances in which they were made,
except insofar as the same are based upon information furnished in writing to
the Company by a Selling Holder expressly for use therein, and shall reimburse
each selling Holder, its partners, officers, directors, employees and agents,
and each such Controlling Person for any legal and other expenses incurred by
 .that selling Holder, its partners, officers, directors, employees and agents,
or any such Controlling Person in investigating or defending or preparing to
defend against any such Damages or proceedings; provided, however, that the
Company shall not be liable to any Holder or other indemnitee to the extent that
any such Damages arise out of or are based upon an untrue statement or omission
made in any preliminary prospectus if (i) such Holder failed to send or deliver
a copy of the final Prospectus with or prior to the delivery of written
confirmation of the sale by such Holder to the Person asserting the claim from
which such Damages arise, and (ii) the final Prospectus would have corrected
such untiiie statement or such omission; and provided further, however, that the
Company shall not be liable in any such case to the extent that any such Damages
arise out of or are based upon an untrue statement or omission in any Prospectus
if (x) such untrue statement or omission is corrected in an amendment or
supplement to such Prospectus, (y) having previously been furnished by or on
behalf of the Company with copies of such Prospectus as so amended or
supplemented, and (z) after being notified by the Company pursuant hereto of the
happening of any event which would make any statement in the Registration
Statement or related Prospectus or any document incorporated or deemed to be
incorporated by reference therein untrue or misleading, the Holder continues to
offer for sale the

                                       10
<PAGE>   11
Registrable Securities pursuant to the Registration Statement or Prospectus
which is the subject of such notice, such Holder thereafter fails to deliver
such Prospectus as so amended or supplemented prior to or concurrently with the
sale of a Registrable Security to the Person asserting the claim from which such
Damages arise; provided further, that the Company shall not be liable in any
case to the extent that any such Damages arise out of or are based upon an
untrue statement or omission in any Prospectus, even if an amended and corrected
Prospectus is not furnished to the Holder, but only to the extent that the
Holder, after being notified by the Company pursuant hereto, continues to use
such Prospectus and in such case and to the extent of, and with respect to,
Damages which arise after the Holder receives such notice. The Company also
agrees to indemnify any underwriters of the Registrable Securities, their
officers and directors and each Person who controls such underwriters on
substantially the same basis as that of the indemnification of the Selling
Holders provided in this Section 6.1.

      6.2   Indemnification by Selling Holders. Each selling Holder agrees,
severally but not jointly, to indemnify and hold harmless the Company, its
officers, directors, employees and agents and each Person, if any, who controls
the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, together with the partners, officers, directors, employees
and agents of such controlling Person, to the same extent as the foregoing
indemnity from the Company to such selling Holder, but only with reference to
information related to such selling Holder, or its plan of distribution,
furnished in writing by such selling Holder expressly for use in any
Registration Statement or Prospectus, or any amendment or supplement thereto, or
any preliminary Prospectus. In case any action or proceeding shall be brought
against the Company or its officers, directors, employees or agents or any such
controlling Person or its officers, directors, employees or agents, in respect
of which indemnity may be sought against such selling Holder, such Selling
Holder shall have the rights and duties given to the Company, and the Company or
its officers, directors, employees or agents, or such controlling Person, or its
officers, directors, employees or agents, shall have the rights and duties given
to such selling Holder, by the preceding paragraph. Each selling Holder also
agrees to indemnify and hold harmless any underwriters of the Registrable
Securities, their officers and directors and each Person who controls such
underwriters on substantially the same basis as that of the indemnification of
the Company provided in this Section 6.2. Notwithstanding anything. contained
herein to the contrary, no selling Holder shall be required to indemnify such
underwriters or the Company or its officers, directors, employees or agents or
any such controlling Person or its officers, directors, employees or agents, for
any amount in excess of the net proceeds for the Registrable Securities sold for
the account of such selling Holder.

      6.3   Conduct of Indemnification Proceedings. Promptly after receipt by
any person in respect of which indemnity may be sought pursuant to Section 6.1
or 6.2 (an "Indemnified Party") of notice of any claim or the commencement of
any action, the Indemnified Party shall, if a claim in respect thereof is to be
made against the Person against whom such indemnity may be sought (an
"Indemnifying Party"), notify the Indemnifying Party in writing of the claim or
the commencement of such action; provided that the failure to notify the
Indemnifying Party shall not relieve it from any liability which it may have to
an Indemnified Party otherwise than under Section 6.1 or 6.2 except to the
extent of any actual prejudice resulting therefrom. If any such claim or action
shall be brought against an Indemnified Party, and it shall notify the
Indemnifying Party thereof, the Indemnifying Party shall be entitled to
participate therein, and, to the extent that it wishes, jointly with any other
similarly notified Indemnifying Party, to assume the defense thereof with
counsel reasonably satisfactory to the Indemnified Party. After notice from the
Indemnifying Party to the Indemnified Party of its election to assume the
defense of such claim or action, the Indemnifying Party shall not be liable to
the Indemnified Party for any legal or other expenses subsequently incurred by
the Indemnified Party in connection with the defense thereof other than
reasonable costs of investigation; provided that the Indemnified Party shall
have the right to employ separate counsel to represent the Indemnified Party and
its controlling Persons who may be subject to liability arising out of any claim
in respect of which

                                       11
<PAGE>   12
indemnity may be sought by the Indemnified Party against the Indemnifying Party,
but the fees and expenses of such counsel shall be for the account of such
Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party
shall have mutually agreed to the retention of such counsel or (ii) in the
opinion of counsel to such Indemnified Party, representation of both parties by
the same counsel would be inappropriate due to actual or potential conflicts of
interest between them, it being understood, however, that the Indemnifying Party
shall not, in connection with any one such claim or action or separate but
substantially similar or related claims or actions in the same jurisdiction
arising out of the same general allegations or circumstances, be liable for the
fees and expenses of more than one separate firm of attorneys (together with
appropriate local counsel) at any time for all Indemnified Parties. No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any claim or pending or threatened proceeding in
respect of which the Indemnified Party is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Party, unless
such settlement includes an unconditional release of such Indemnified Party from
all liability arising out of such claim or proceeding. Whether or not the
defense of any claim or action is assumed by the Indemnifying Party, such
Indemnifying Party will not be subject to any liability for any settlement made
without its consent, which consent will not be unreasonably withheld.

      6.4   Contribution. If the indemnification provided for in this Section 6
is unavailable to the Indemnified Parties in respect of any Damages referred to
herein, then each Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such Damages in such proportion as is appropriate to reflect the
relative benefits but also the relative fault of the Company on the one hand and
the Selling Holders on the other in connection with the statements or omissions
which resulted in such Damages, as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of each
selling Holder on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by such party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

      The Company and the selling Holders agree that it would not be just and
equitable if contribution pursuant to this Section 6.4 were determined by pro
rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the
Damages referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 6.4, no selling Holder shall be required to contribute any amount in
excess of the amount by which the net proceeds for the Registrable Securities
sold for the account of the selling Holder exceeds the amount of any damages
which such selling Holder has otherwise paid by reason of such untrue or alleged
untrue statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11 (f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. Each selling Holder's obligations to contribute
pursuant to this Section 6.4 is several in the proportion that the proceeds of
the offering received by such selling Holder bears to the total proceeds of the
offering received by all the selling Holders and not joint.

      7.    INFORMATION AND OTHER OBLIGATIONS OF HOLDER.

      (a)   As a condition to exercising the registration rights provided for
herein, each Holder of Registrable Securities shall furnish to the Company such
information regarding such Holder and the distribution proposed by

                                       12
<PAGE>   13
such Holder as the Company may reasonably request in writing and as shall be
reasonably required in connection with any registration, qualification, or
compliance referred to in this Agreement.

      (b)   The failure of any Holder to furnish the information requested
pursuant to Section 7(a) shall not affect the obligation of the Company under
Sections 2 or 3 to the remaining Holder(s) who furnish such information unless,
in the reasonable opinion of counsel to the Company or the underwriters, if any,
such failure impairs or may impair the legality of the Registration Statement or
the underlying offering.

      (c)   Each Holder, with respect to any Registrable Securities included in
any registration, shall cooperate in good faith with the Company and the
underwriters, if any, in connection with such registration.

      (d)   Each Holder, with respect to any Registrable Securities included in
any registration, shall make no further sales or other dispositions, or offers
therefor, of such shares under such Registration Statement if, during the
effectiveness of such Registration Statement, an intervening event should occur
which, in the opinion of counsel to the Company, makes the Prospectus included
in such Registration Statement no longer comply with the Securities Act until
such time as such holder has received from the Company copies of a new, amended
or supplemented Prospectus complying with the Securities Act.

      8.    RULE 144 REPORTING. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the
Restricted Securities to the public without registration, the Company agrees to
use its best efforts to:

            (a)   make and keep public information regarding the Company
      available as those terms are understood and defined in Rule 144 under the
      Securities Act, at all times from and after 90 days following the
      effective date of the first Registration Statement under the Securities
      Act filed by the Company for an offering of its securities to the general
      public;

            (b)   file with the Commission in a timely manner all reports and
      other documents required of the Company under the Securities Act and the
      Exchange Act at any time after it has become subject to such reporting
      requirements; and

            (c)   so long as a Holder owns any restricted Registrable
      Securities, furnish to the Holder forthwith upon written request a written
      statement by the Company as to its compliance with the reporting
      requirements of Rule 144 (at any time from and after 90 days following the
      effective date of the first Registration Statement filed by the Company
      for an offering of its securities to the general public), and of the
      Securities Act and the Exchange Act (at any time after it has become
      subject to such reporting requirements), a copy of the most recent annual
      or quarterly report of the Company, and such other reports and documents
      so filed as a Holder may reasonably request in availing itself of any rule
      or regulation of the Commission allowing a Holder to sell any such
      securities without registration.

      9.    TRANSFER OR ASSIGNMENT OF REGISTRATION RIGHTS. The rights to cause
the Company to register securities granted to Holders by the Company under this
Agreement may be transferred or assigned by a Holder in connection with any
transfer or assignment of Registrable Securities; provided that any transfer or
assignment of the registration rights granted under this Agreement shall be
conditioned upon (i) the Company's being given written notice at the time of or
within a reasonable time after said transfer or assignment, stating the name and
address of the transferee or assignee and identifying the securities with
respect to which such registration rights are being

                                       13
<PAGE>   14
transferred or assigned and (ii) the assumption in writing by the transferee or
assignee of the obligations of a Holder under this Agreement.

      10.   ALLOCATION OF REGISTRATION OPPORTUNITIES. In any circumstance in
which all of the Registrable Securities requested to be included in a
registration on behalf of the Holders cannot be so included as a result of
limitations of the aggregate number of shares of Registrable Securities that may
be so included, the number of shares of Registrable Securities that may be so
included shall be allocated among the Holders requesting inclusion of shares pro
rata on the basis of the number of shares of Registrable Securities held by such
Holders. The Company shall not limit the number of Registrable Securities to be
included in a registration pursuant to this Agreement in order to include shares
held by stockholders with no registration rights or, with respect to
registrations under Section 2 hereof, in order to include in such registration
securities registered for the Company's own account or securities other than
Registrable Securities.

      11.   TERMINATION OF REGISTRATION RIGHTS. The right of any Holder to
request registration or inclusion of Registrable Securities held by such Holder
in any registration pursuant to Section 2 or 3 hereof shall terminate on the
earlier to occur of (i) such date as all Registrable Securities held by such
Holder (including any Registrable Securities that such Holder is entitled to
acquire upon conversion of Series A Preferred Stock or exercise of warrants)
have been sold under Rule 144 or an effective Registration Statement under the
Securities Act or may immediately be sold under Rule 144(k), or (ii) the fifth
anniversary of the completion of an initial public offering of Common Stock
pursuant to an effective Registration Statement under the Securities Act.

      12.   LIMITATIONS ON SUBSEQUENT REGISTRATION RIGHTS. The Company agrees
and covenants that it will not grant or allow any persons any registration
rights with respect to any securities of the Company which rights are superior
to the rights granted herein or which would reduce the number of Conversion
Shares or Cain Shares that would be included for the account of Initiating
Holders in any registration pursuant to Section 2 hereof, unless it shall first
have obtained the written consent of (i) the Holders of at least 75% of the
outstanding Registrable Securities, (ii) the Holders of at least 50% of the
outstanding Conversion Shares that constitute Registrable Securities, and (iii)
the Holders of at least 66-2/3% of the outstanding Cain Shares that constitute
Registrable Securities.

      13.   MISCELLANEOUS.

      13.1  Governing Law. This Agreement shall be governed in all respects by
the internal laws of the State of Delaware, without reference to the conflicts
of law principles thereof.

      13.2  Successors and Assigns. Except as otherwise provided herein, this
Agreement shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the parties hereto.

      13.3  Entire Agreement. This Agreement constitutes the full and entire
understanding and agreement between the parties with regard to the subjects
hereof. Without limiting the foregoing, this Agreement amends and restates the
Existing Agreement in its entirety.

      13.4  Notices, etc. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail, postage prepaid, or otherwise delivered by hand or by messenger,
including Federal Express or similar courier services, addressed (a) if to a
Holder, to such Holder's address as set forth in the stock records of the
Company, or (b) if to the Company, to 4000 Research Forest Drive, The Woodlands,
Texas 77381 Attn: President, or at such other address as the Company shall have
furnished to the

                                       14
<PAGE>   15
Holders. Each such notice or other communication shall for all purposes of this
Agreement be treated as effective or having been given when delivered if
delivered personally, or:- if sent by mail or courier, at the earlier of its
receipt or 72 hours after the same has been deposited in a regularly maintained
receptacle for the deposit of the United States mail, addressed and mailed as
aforesaid.

      13.5  Counterparts. This Agreement may be executed in any number of
counterparts, each of which may be executed by less than all of the Holders,
each of which shall be enforceable against the parties actually executing such
counterparts, and all of which together shall constitute one instrument.

      13.6  Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
such provision in any other jurisdiction, and this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provisions had never been contained herein.

      13.7  Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

      13.8  Amendment and Waiver. Except as expressly provided herein, this
Agreement, or any provision hereof, may be amended, waived, discharged or
terminated upon the written consent of the Company and the Holders of at least
75% of the then outstanding Registrable Securities; provided, however, that (i)
if any of the rights of the Holders of the Conversion Shares are adversely
affected by such amendment or waiver, the written consent of the Holders of at
least 50% of the outstanding Conversion Shares that constitute Registrable
Securities shall also be required, and (ii) if any of the rights of the Holders
of the Cain Shares are adversely affected by such amendment or waiver, the
written consent of the Holders of at least 66-2/3% of the outstanding Cain
Shares that constitute Registrable Securities shall also be required.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first set forth above.

                                    LEXICON GENETICS INCORPORATED

                                    By: /s/ Arthur T. Sands
                                        --------------------------------------
                                          Arthur T. Sands, M.D., Ph.D.
                                          President and Chief Executive Officer

                                       15

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