Document:

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                                                                    Exhibit 10.8

                               optionsXpress, Inc.
                                39 South LaSalle
                             Chicago, Illinois 60603

                                January 15, 2004

Summit Ventures VI-A, L.P.
Summit Ventures VI-B, L.P.
222 Berkeley Street - 18th Floor
Boston, Massachusetts 02116

       Re:    MANAGEMENT RIGHTS

Ladies and Gentlemen:

       This letter will confirm our agreement that effective upon your purchase
of shares of Series A Convertible Preferred Stock, par value $.0001 per share
(the "PREFERRED STOCK") of optionsXpress, Inc., a Delaware corporation (the
"COMPANY"), you will be entitled to the following contractual management rights,
in addition to rights to certain non-public financial information, inspection
rights and other rights that you may be entitled to pursuant to that certain
Stock Purchase and Recapitalization Agreement, dated as of the date hereof, and
the other agreements referenced therein that have been entered into on the date
hereof:

       (1)    You shall be permitted to consult with and offer advice to
management of the Company on significant business issues, including management's
proposed annual operating plans, and management will make itself available to
meet with you at the Company's facilities at mutually agreeable times for such
consultation and advice and to review progress in achieving said plans.

       (2)    You may examine the books and records of the Company and inspect
its facilities and may request information at reasonable times and intervals
concerning the general status of the Company's financial condition and
operations, provided that access to highly confidential proprietary information
and facilities need not be provided hereunder.

       (3)    If and for so long as you do not have a representative on the
Company's Board of Directors, the Company shall invite you to send your
representative to attend in a nonvoting observer capacity all meetings of its
Board of Directors and, in this respect, shall give your representative copies
of all notices, minutes, consents, and other material that it provides to its
Directors; PROVIDED, HOWEVER, that the Company reserves the right to exclude
your representative from access to any material or meeting or portion thereof if
the Company believes upon advice of counsel that such exclusion is reasonably
necessary to preserve the attorney-client privilege, to protect highly
confidential proprietary information or for other similar reasons.

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January 15, 2004
Page 2

The rights described herein shall terminate and be of no further force or effect
upon the earliest to occur of (a) the closing of an initial public offering of
shares of the Company's capital stock pursuant to a registration statement filed
by the Company under the Securities Act of 1933 which has become effective
thereunder (other than a registration statement relating solely to employee
benefit plans or a transaction covered by Rule 145), (b) such time as the
Company becomes required to file reports with the Securities and Exchange
Commission under Sections 12(g) or 15(d) of the Securities Exchange Act of 1934,
(c) such time as you hold, in aggregate, less than 10% of the Preferred Stock
(or common stock issued upon a conversion thereof) purchased by you on the date
hereof, or (d) the date of the closing of a sale, lease, or other disposition of
all or substantially all of the Company's assets or the Company's merger into or
consolidation with any other corporation or other entity, or any other corporate
reorganization, in which the holders of the Company's outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing less than fifty percent (50%) of the voting power of the
corporation or other entity surviving such transaction, provided that this
provision shall not apply to a merger effected exclusively for the purpose of
changing the domicile of the Company.

                                           Very truly yours,

                                           OPTIONSXPRESS, INC.

                                           By:   /s/ DAVID KALT
                                              ------------------------------

                                           Title: President

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                                                                    Exhibit 10.9

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                               OPTIONSXPRESS, INC.

                           2001 EQUITY INCENTIVE PLAN

                          Effective as of March 1, 2001

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<Table>
<S>                                                                              <C>
ARTICLE IX
     CHANGE IN CONTROL...........................................................12

ARTICLE X
     MISCELLANEOUS...............................................................12
     10.1    Amendments and Termination..........................................12
     10.2    Unfunded Status of Plan.............................................13
     10.3    General Provisions..................................................13
     10.4    Mitigation of Excise Tax............................................14
     10.5    No Rights with Respect to Continuance of Employment.................14
     10.6    Awards in Substitution for Awards Granted by Other Entities.........15
     10.7    Procedure for Adoption..............................................15
     10.8    Procedure for Withdrawal............................................15
     10.9    Delay...............................................................15
     10.10   Headings............................................................15
     10.11   Severability........................................................15
     10.12   Successors and Assigns..............................................15
     10.13   Entire Agreement....................................................16
</Table>

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                               optionsXpress, Inc.

                           2001 EQUITY INCENTIVE PLAN

                                    ARTICLE I

                                  ESTABLISHMENT

     1.1    PURPOSE. The optionsXpress, Inc. 2001 Equity Incentive Plan is
hereby established by the Company. The purpose of this Plan is to promote the
overall financial objectives of the Company and its shareholders by motivating
those persons selected to participate in this Plan to achieve long-term growth
in the equity interests in the Company and by retaining the association of those
individuals who are instrumental in achieving this growth. This Plan is adopted
effective as of March 1, 2001 (the "EFFECTIVE DATE").

                                   ARTICLE II

                                   DEFINITIONS

     For purposes of this Plan, the following terms are defined as set forth
below:

     "AFFILIATE" with respect to any person or entity shall mean: (i) any person
or entity directly or indirectly controlling, controlled by or under common
control with said person or entity (including, without limitation, any
partnership in which such person or entity serves as a general partner, any
corporation in which such person or entity owns greater than 10% of the issued
and outstanding voting capital stock or any limited liability company or joint
venture in which such person or entity owns greater than 10% of the equity
interests); and (ii) any officer, director, trustee or general partner or any
person or entity so controlling, controlled by or under common control with said
person or entity.

     "AGREEMENT" means, individually or collectively, any agreement entered into
pursuant to this Plan pursuant to which an Award is granted to a Participant.

     "AWARD" means any Option, shares of Common Stock issued upon exercise of
any Option, or Restricted Stock (before or after the restrictions have lapsed)
granted to a Participant, together with any other right or interest granted to a
Participant under this Plan.

     "BOARD OF DIRECTORS" shall mean the board of directors of the Company.

     "CAUSE" shall have the meaning given such term (or given the term "Good
Cause") in any written agreement between Participant and the Company (or any
Affiliate thereof) regarding such Participant's employment with the Company (or
an Affiliate thereof) or the termination of such employment; provided that if no
such agreement has been entered into or such term is not defined therein,
"CAUSE" shall mean the termination of the Participant's employment with the
Company (or any Affiliate thereof) because the Board of Directors, in its sole
and absolute discretion, has determined that Participant has: (i) committed
fraud, theft, embezzlement or engaged in other conduct which could reasonably be
expected to injure the integrity, character or reputation of the Company, which
could reasonably be expected to impugn Participant's own integrity, character or

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reputation or which constitutes an act of moral turpitude, (ii) committed an act
that indicates alcohol or drug abuse that adversely affects the Participant's
performance as an employee of the Company, (iii) Failed to devote Participant's
full business time and attention to the Company, (iv) was negligent in the
performance of Participant's duties as an employee of the Company, (v) failed or
refused to perform Participant's duties as an employee of the Company, or (vi)
violated any rule or policy of the Company, including, without limitation, the
Employee Agreement Regarding Confidentiality, Non-Competition and
Non-Solicitation.

     "CHANGE IN CONTROL" means a merger, consolidation, sale or conveyance of
all or substantially all of the Company's assets or Shares to any Independent
Third Party or Affiliated group of Independent Third Parties pursuant to which
the holders of the voting securities of the Company immediately before the
transaction own immediately after the transaction less than a majority of the
outstanding voting securities of the surviving entity (or its parent) or the
purchasing entity (or its parent), as the case may be.

     "CODE" or "INTERNAL REVENUE CODE" means the Internal Revenue Code of 1986,
as amended, Treasury Regulations promulgated thereunder (including proposed
regulations), as the same may be amended from time to time, and any subsequent
Internal Revenue Code.

     "COMMITTEE" means the Board of Directors or the person or persons appointed
by the Board of Directors to administer this Plan.

     "COMMON STOCK" means the Common Stock of the Company, par value $.0001 per
share.

     "COMPANY" means optionsXpress, Inc., a Delaware corporation, and includes
any successor or assignee entity or entities into which such entity may be
merged, changed or consolidated; any entity for whose securities the securities
of such entity shall be exchanged; and any assignee of or successor to
substantially all of the assets of such entity.

     "DISABILITY" shall have the meaning given such term (or given the term
"Total Disability" or "Permanent Disability") in any written agreement between
the Participant and the Company (or any Affiliate thereof) regarding
Participant's employment with the Company (or any Affiliate thereof) or the
termination of such employment; provided that if no such agreement has been
entered into or such term is not defined therein, "Disability" shall mean a
mental or physical illness that renders a Participant incapable of performing
the Participant's duties for or with respect to the Company or an Affiliate
thereof. Notwithstanding the foregoing, a mental or physical illness shall not
qualify as a Disability under this Plan if it is the result of (i) a
self-inflicted injury or self-induced sickness; or (ii) an injury or disease
contracted, suffered or incurred while participating in a criminal offense
constituting a felony. The determination of Disability shall be made by the
Board of Directors in its sole and absolute discretion. The determination of
Disability for purposes of this Plan shall not be construed to be an admission
of disability for any other purpose.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, as the same may be amended
from time to time.

     "GRANT DATE" means the date as of which an Award is granted pursuant to
this Plan.

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     "INCENTIVE STOCK OPTION" means any Option intended to be and designated as
an "incentive stock option" within the meaning of Section 422 of the Code.

     "INDEPENDENT THIRD PARTY" means any individual, partnership, limited
liability company, corporation, joint venture, trust, business trust, foreign
business organization, or any other form of domestic or foreign organization who
does not directly or indirectly own in excess of 10% of the voting securities of
the Company, who is not controlling, controlled by or under common control with
any such 10% owner of the voting securities of the Company and who is not the
spouse or descendent (by birth or adoption) of any such 10% owner of the voting
securities of the Company.

     "NONQUALIFIED STOCK OPTION" means an Option granted under this Plan that is
not an Incentive Stock Option.

     "OPTION" means an option or right granted to a Participant to purchase
shares of Common Stock at a specified price, during specified time periods and
subject to specified restrictions under this Plan.

     "OPTION PERIOD" means the period during which an Option shall be
exercisable in accordance with the related Agreement and this Plan.

     "OPTION PRICE" means the price at which a share of Common Stock may be
purchased under an Option as provided in the related Agreement and this Plan.

     "PARTICIPANT" means a person who satisfies the eligibility conditions of
Article V below and to whom an Award has been granted by the Committee under
this Plan, and in the event a Representative is appointed for a Participant or
another person becomes a Representative, then the term "Participant" shall mean
such Representative to the extent appropriate.

     "PLAN" means this optionsXpress, Inc. 2001 Equity Incentive Plan, as the
same may be amended from time to time.

     "QUALIFIED IPO" means an underwritten public offering of Common Stock of
the Company or of equity securities of a successor to the Company pursuant to
the Securities Act.

     REPRESENTATIVE" means (a) the person or entity acting as the executor or
administrator of a Participant's estate pursuant to the last will and testament
of a Participant or pursuant to the laws of the jurisdiction in which the
Participant had the Participant's primary residence at the date of the
Participant's death; (b) the person or entity acting as the guardian or
temporary guardian of a Participant; or (c) the person or entity which is the
beneficiary of the Participant upon or following the Participant's death;
provided that only one of the foregoing shall be the Representative at any point
in time as determined under applicable law and recognized by the Committee. Any
Representative shall be subject to all terms and conditions applicable to the
Participant.

     "RESTRICTED STOCK" means Common Stock granted or sold to a Participant
hereunder that is subject to certain restrictions and to a risk of forfeiture or
repurchase by the Company.

     "RETIREMENT" shall have the meaning set forth in an Agreement or any
written agreement between the Participant and the Company (or any Affiliate
thereof), regarding Participant's

                                        3
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employment with the Company (or any Affiliate thereof) or the termination of
such employment; provided that if no such agreement has been entered into or
such term is not defined therein, "Retirement" shall mean the Participant's
Termination of Employment after attaining age 65.

     "RULE 16b-3" means Rule 16b-3, as from time to time in effect and
applicable to this Plan and Participants, promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act or any successor to
such rule.

     "SECURITIES ACT" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as the same may be amended from
time to time.

     "SHARE" means a share of Common Stock.

     "SHARE VALUE" means the fair market value of a Share. Prior to the date of
a Qualified IPO, the Share Value as of any date shall be an amount determined by
the Committee in its sole discretion. On or after a Qualified IPO, the Share
Value shall be the closing sale price per Share reported on a consolidated basis
on the principal exchange or market on which Shares are traded on the date as of
which such value is being determined or, if there is no sale on that date, then
on the last previous day on which a sale was reported.

     "TERMINATION OF EMPLOYMENT" means the occurrence of any act or event,
whether pursuant to a written agreement or otherwise that actually or
effectively causes or results in a Participant's ceasing, for whatever reason,
as applicable, (a) to be an employee, director, independent contractor, or
consultant of the Company or of any Affiliate thereof or (b) to be an employee,
director, independent contractor or consultant of any entity that provides
services to the Company or an Affiliate thereof, including, without limitation,
death, Disability, dismissal (with or without Cause), severance at the election
of the Participant, Retirement, or severance as a result of the discontinuance,
liquidation, sale or transfer by the Company or its Affiliates of all or
substantially all of the business of the Company or its Affiliates. A transfer
of employment from the Company to an Affiliate thereof, or from such Affiliate
to the Company, shall not be a Termination of Employment unless expressly
determined by the Committee. A Termination of Employment shall occur with
respect to an employee, director, independent contractor or consultant of an
Affiliate of the Company that ceases to be an Affiliate of the Company if the
Participant does not immediately thereafter become an employee, director,
independent contractor or consultant of the Company or an Affiliate thereof.

     In addition, certain other terms used herein have definitions given to them
as provided herein.

                                   ARTICLE III

                                 ADMINISTRATION

     3.1    COMMITTEE STRUCTURE AND AUTHORITY. This Plan shall be administered
by the Committee, which may authorize any one or more of its members or an
officer of the Company to execute and deliver documents on behalf of the
Committee. The Committee may allocate among one or more of its members, or may
delegate to one or more of its agents, such duties and responsibilities as it
determines.

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     Among other things, the Committee shall have the authority, subject to the
terms of this Plan and any Participant's Agreement:

            (a)  to select those persons to whom Awards may be granted from time
     to time;

            (b)  to determine whether and to what extent Awards are to be
     granted hereunder;

            (c)  to determine the number of Shares to be covered by each Award
     hereunder;

            (d)  to determine the terms and conditions of any Award granted
     hereunder (including, but not limited to, (i) for Options, the Option
     Price, the Option Period, any exercise restriction or limitation, any
     exercise acceleration or forfeiture (or forfeiture waiver), and any right
     of the Company to repurchase Shares issued upon exercise of an Option, and
     (ii) for Restricted Stock, the purchase price (if any), the restriction
     period, the Company's repurchase rights, any other restrictions and the
     acceleration or removal of such restrictions;

            (e)  to adjust the terms and conditions, at any time or from time to
     time, of any Award, subject to the limitations of SECTION 10.1 below;

            (f)  to determine to what extent and under what circumstances Common
     Stock and other amounts payable with respect to an Award shall be deferred;

            (g)  to determine under what circumstances an Award may be settled
     in cash, Common Stock or other equity;

            (h)  to provide for the forms of Agreement to be utilized in
     connection with this Plan;

            (i)  to determine whether a Participant has a Disability;

            (j)  to determine what securities law requirements are applicable to
     this Plan, Awards, and the issuance of Common Stock and to require of a
     Participant that appropriate action be taken with respect to such
     requirements;

            (k)  to cancel, with the consent of the Participant or as otherwise
     provided in this Plan or an Agreement, outstanding Awards;

            (1)  to interpret and make determinations with respect to the
     remaining number of Shares available under this Plan;

            (m)  to require as a condition of the exercise of an Award or the
     issuance or transfer of shares of Common Stock, the withholding from a
     Participant of the amount of any Federal, state or local taxes as may be
     required by law;

            (n)  to determine whether and with what effect a Termination of
     Employment has occurred;

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            (o)  to determine whether the Company or any other person has a
     right or obligation to purchase Common Stock from a Participant and, if so,
     the terms and conditions on which such Common Stock is to be purchased;

            (p)  to determine the restrictions or limitations on the transfer of
     Common Stock;

            (q)  to determine whether an Award is to be adjusted, modified or
     purchased, or is to become fully exercisable, under this Plan or the terms
     of an Agreement;

            (r)  to determine the permissible methods of Award exercise and
     payment, including cashless exercise arrangements;

            (s)  to adopt, amend and rescind such rules and regulations as, in
     its opinion, may be advisable in the administration of this Plan;

            (t)  to appoint and compensate agents, counsel, auditors or other
     specialists to aid it in the discharge of its duties; and

            (u)  to take any other actions it deems necessary or advisable for
     the administration of this Plan or any Agreement.

     The Committee shall have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing this Plan as it shall,
from time to time, deem advisable to interpret the terms and provisions of this
Plan and any Award issued under this Plan (and any Agreement) and to otherwise
supervise the administration of this Plan. The Committee's policies and
procedures may differ with respect to Awards granted at different times or to
different Participants.

     Any determination made by the Committee pursuant to the provisions of this
Plan shall be made in its discretion, and in the case of any determination
relating to an Award, may be made at the time of the grant of the Award or,
unless in contravention of any express term of this Plan or an Agreement, at any
time thereafter. All decisions made by the Committee pursuant to the provisions
of this Plan shall be final and binding on all persons, including the Company
and Participants.

                                   ARTICLE IV

                             SHARES SUBJECT TO PLAN

     4.1    NUMBER OF SHARES OF COMMON STOCK. Subject to adjustment under
SECTION 4.4 below, the total number of Shares reserved and available for
distribution under this Plan shall be 500,000. Such Shares may consist, in whole
or in part, of authorized and unissued Common Stock.

     4.2    RELEASE OF COMMON STOCK. If any Shares that are subject to an Award
cease to be such, or are forfeited or repurchased, if any Award otherwise
terminates without issuance of Shares being made to the Participant, or if any
Shares are received by the Company in connection with the exercise of an Award
or the satisfaction of a tax withholding obligation, such Shares, in the
discretion of the Committee, may again be available for distribution in
connection with Awards under this Plan, except that the aggregate number of
Shares which may be issued upon the exercise

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of Incentive Stock Options shall in no event exceed 500,000 shares of Common
Stock (subject to adjustment under SECTION 4.4). If any Common Stock could not
again be available for Awards to a particular Participant under any applicable
law, such Common Stock may be available exclusively for Awards to Participants
who are not subject to such limitations.

     4.3    RESTRICTIONS ON SHARES. Shares issued as or in conjunction with an
Award shall be subject to such terms, conditions and restrictions as the
Committee may determine in its discretion, or as may be provided in an Agreement
or in the Company's certificate of incorporation or by-laws, as the same may be
amended from time to time (the "COMPANY'S GOVERNING DOCUMENTS"). The Company
shall not be required to issue or transfer any Shares prior to the satisfaction
of any applicable withholding obligation with respect to the exercise of an
Award. The Company may cause any Shares to reflect the limitations on transfer
of such Shares as provided under this Plan or as the Committee may otherwise
require. The Committee may require any person receiving or exercising an Award
to make such representations and furnish such information as it may reasonably
consider appropriate in connection with the issuance of the Shares in compliance
with applicable law or otherwise.

     4.4    ADJUSTMENTS. The number of Shares available for Awards under this
Plan, the number of Shares covered by outstanding Awards, the exercise price per
Share for outstanding Options and the limits on the number of Shares that may be
issued under this Plan set forth in SECTIONS 4.1, 4.2, 6.1 and 7.2 shall be
automatically proportionately adjusted to reflect any stock-split, stock
dividend or other recapitalization affecting Common Stock subsequent to the date
hereof.

     4.5    NO REGISTRATION RIGHTS. Unless otherwise provided in an Agreement or
in the Company's Governing Documents, no registration rights are granted with
respect to any shares of Common Stock which may be received pursuant to an Award
granted under this Plan.

                                    ARTICLE V

                                   ELIGIBILITY

     5.1    ELIGIBILITY. Except as herein provided, the persons who shall be
eligible to participate in this Plan and be granted Awards shall be those
persons who are employees, directors, independent contractors or consultants of
the Company or an Affiliate thereof, and who shall be in a position, in the
opinion of the Committee, to make contributions to the growth, management,
protection and success of the Company and its Affiliates. Of those persons
described in the preceding sentence, the Committee may, from time to time,
select persons to be granted Awards and shall determine the terms and conditions
with respect thereto. In making any such selection and in determining the form
of the Award, the Committee may give consideration to the person's
responsibilities, services and contributions and such other factors deemed
relevant by the Committee.

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                                   ARTICLE VI

                                     OPTIONS

     6.1    GENERAL. The Committee shall have authority to grant Options under
this Plan at any time or from time to time. Options may be either Incentive
Stock Options or Non-Qualified Stock Options. An Option shall entitle the
Participant to receive Common Stock upon the exercise of such Option, subject to
the Participant's satisfaction in full of any conditions, restrictions or
limitations imposed in accordance with this Plan or an Agreement (the terms and
provisions of which may differ from other Agreements) including without
limitation, payment of the Option Price. During any calendar year, Options to
purchase no more than 400,00 Shares (subject to adjustment under SECTION 4.4)
may be granted to any Participant. Notwithstanding any provision to the contrary
in this Plan or an Agreement, any provision of this Plan or an Agreement which
is contrary to the Company's Governing Documents, shall be void AB INITIO and
the Committee shall have the authority in its sole discretion to amend the void
provision or rescind and void the applicable document in its entirety.

     6.2    GRANT AND EXERCISE. The grant of an Option shall occur as of the
date the Committee determines. Each Option granted under this Plan shall be
evidenced by an Agreement, in a form approved by the Committee, which shall
embody the terms and conditions of such Option and which shall be subject to the
express terms and conditions set forth in this Plan. Such Agreement shall become
effective upon execution by the Company and the Participant. Only a person who
is a common-law employee of the Company, any parent corporation of the Company
or a subsidiary corporation of the Company (as such terms are defined in Section
424 of the Code) on the Grant Date shall be eligible to be granted an Option
which is intended to be and is an Incentive Stock Option. To the extent that any
Option is not designated as an Incentive Stock Option or even if so designated
does not qualify as an Incentive Stock Option, it shall constitute a
Non-Qualified Stock Option. No Option which is intended to be an Incentive Stock
Option shall be granted more than ten (10) years From the date this Plan is
adopted by the Company or the date this Plan is approved by the stockholders of
the Company, whichever is earlier.

     6.3    STOCKHOLDER RIGHTS. No person shall have any rights of a stockholder
as to Common Stock issuable upon exercise of an Option until after the
Participant has given written notice of exercise, has paid in full for such
Shares, has executed all relevant agreements and such Shares have been recorded
on the Company's official records as having been issued or transferred. Upon
exercise of an Option or any portion thereof (including the execution and/or
delivery of any documents required pursuant to SECTION 4.3 above), the Company
shall have ten (10) days in which to issue the Common Stock, and the Participant
shall not be treated as a stockholder for any purpose whatsoever prior to such
issuance. No adjustment shall be made for cash distributions or other rights for
which the record date is prior to the date such Shares are recorded as issued or
transferred in the Company's official records, except as provided herein or in
an Agreement and if the form of the equity interest in the Company represented
by the Common Stock shall change, all references to "Common Stock" shall mean
such new form of equity interest.

     6.4    TERMS AND CONDITIONS. Options shall be subject to such terms and
conditions as shall be determined by the Committee, including, without
limitation, the following:

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            (a)  OPTION PERIOD. The Option Period of each Option will be fixed
     by the Committee and specified in the Agreement governing such Option
     grant; provided that no Option shall be exercisable more than ten (10)
     years after the Grant Date, or five (5) years after the Grant Date in the
     case of an Incentive Stock Option granted to an individual who owns (for
     purposes of Section 422(b) of the Code) or is deemed to own interests
     possessing more than ten percent (10%) of the total combined voting power
     of all classes of stock of the Company, a corporation which is a parent
     corporation of the Company or any subsidiary corporation of the Company
     (each as defined in Section 424 of the Code).

            (b)  OPTION PRICE. The Option Price of each Option shall be
     determined by the Committee and specified in the Agreement governing such
     Option grant. If such Option is intended to qualify as an Incentive Stock
     Option, the Option Price per share shall be not less than the Share Value
     on the Grant Date, or where granted to an individual who owns or who is
     deemed to own (for purposes of Section 422(b) of the Code) interests
     possessing more than ten percent (10%) of the total combined voting power
     of all classes of stock of the Company or a corporation which is a parent
     corporation of the Company or any subsidiary corporation of the Company
     (each as defined in Section 424 of the Code), not less than one hundred ten
     percent (110%) of such Share Value.

            (c)  VESTING. Options granted hereunder shall vest in accordance
     with the terms specified in the Agreement governing such Option grant. The
     Committee may condition the vesting of Options upon the attainment of
     specified performance goals by the Participant or by the Company or an
     Affiliate thereof (including a division or department of the Company or an
     Affiliate thereof) for or within which the Participant is primarily
     employed or upon such other factors or criteria as the Committee shall
     determine. The vesting terms for Options need net be the same with respect
     to any Participant.

            (d)  EXERCISABILITY. Options shall not be exercisable prior to their
     vesting under SECTION 6.4(c) above, unless otherwise provided in an
     Agreement. Vested Options shall be exercisable as specified in the terms of
     the Agreement governing such Option grant. All Options intended to be
     Incentive Stock Options shall be subject to all limitations and
     restrictions applicable to Incentive Stock Options at all times as provided
     by the Code.

            (e)  METHOD OF EXERCISE. Subject to paragraph (d) above, a
     Participant may exercise Options, in whole or in part, if permitted by the
     applicable Agreement, at any time prior to the expiration of the Option
     Period by the Participant's giving written notice of exercise in a form
     acceptable to the Committee, to the Company specifying the number of Shares
     to be purchased. Such notice shall be accompanied by payment in full of the
     purchase price by cash or check or such other form of payment as the
     Company may accept. If approved by the Committee, payment in full or in
     part may also be made (i) by transferring Shares already owned by the
     Participant for a period of at least six (6) months prior to payment having
     a total Share Value on the date of such transfer equal to the Option Price;
     (ii) by the execution and delivery of a note or other evidence of
     indebtedness (and any security agreement thereunder) satisfactory to the
     Committee, (iii) by the delivery of cash or the extension of credit by a
     broker-dealer to whom the Participant has submitted a notice of exercise or
     otherwise indicated an intent to exercise an Option (in accordance with
     Part 220, Chapter II, Title 12 of the Code of Federal Regulations,
     so-called "cashless"

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     exercise); or (iv) by any combination of the foregoing. No shares of Common
     Stock will be issued until full payment therefor has been made and the
     Participant has executed any agreements that the Committee, in its sole
     discretion, may require the Participant to execute.

            (f)  NONTRANSFERABILITY OF OPTIONS. Except as provided herein or in
     an Agreement, no Option or interest therein shall be transferable by the
     Participant other than by will or by the laws of descent, and all Options
     shall be exercisable during the Participant's lifetime only by the
     Participant.

            (g)  FORFEITURE/REPURCHASE RIGHTS. Options and Shares issued upon
     exercise of Options may be subject to forfeiture and/or repurchase as
     specified in the Agreement governing such Option grant. All such Shares
     issued upon exercise of Options which are subject to forfeiture and/or
     repurchase shall be represented by a certificate which shall be registered
     in the name of the Participant exercising such Option and shall bear an
     appropriate legend referring to such restrictions. The Committee may
     require that the certificates evidencing such Shares be held in custody by
     the Company until the restrictions thereon shall have lapsed and may also
     require that, as a condition of the issuance of any Shares subject to
     forfeiture and/or repurchase, the Participant shall have delivered a stock
     power, endorsed in blank, relating to such Shares.

                                   ARTICLE VII

                                RESTRICTED STOCK

     7.1    GENERAL. The Committee shall have authority to grant Restricted
Stock under this Plan at any time or from time to time. Shares of Restricted
Stock may be awarded either alone or in addition to other Awards granted under
this Plan. The Committee shall determine the persons to whom and the time or
times at which grants of Restricted Stock will be awarded, the number of shares
of Restricted Stock to be awarded to any Participant, the time or times within
which such Awards may be subject to forfeiture and any other terms and
conditions of the Awards. Each Award shall be confirmed by, and be subject to
the terms of, an Agreement. The Committee may condition the grant of Restricted
Stock upon the attainment of specified performance goals by the Participant or
by the Company or an Affiliate thereof (including a division or department of
the Company or an Affiliate thereof) for or within which the Participant is
primarily employed or upon such other factors or criteria as the Committee shall
determine. The provisions of Restricted Stock Awards need not be the same with
respect to any Participant.

     7.2    AWARDS AND CERTIFICATES. Notwithstanding the limitations on issuance
of shares of Common Stock otherwise provided in this Plan, each Participant
receiving an Award of Restricted Stock shall be issued a certificate in respect
of such shares of Restricted Stock. Such certificate shall be registered in the
name of such Participant and shall bear an appropriate legend referring to the
terms, conditions and restrictions applicable to such Award as determined by the
Committee. The Committee may require that the certificates evidencing such
shares be held in custody by the Company until the restrictions thereon shall
have lapsed and that, as a condition of any Award of Restricted Stock, the
Participant shall have delivered a stock power, endorsed in blank, relating to

                                       10
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the Common Stock covered by such Award. During any calendar year, no more than
400,000 shares (as adjusted pursuant to SECTION 4.4) of Restricted Stock shall
be granted to any Participant.

     7.3    STOCKHOLDER RIGHTS. Unless otherwise provided in an Agreement, no
person shall have any rights of a stockholder as to any Restricted Stock until
such shares of Restricted Stock become vested. No adjustment shall be made for
cash distributions or other rights for which the record date is prior to the
date such shares of Restricted Stock become vested, except as provided in an
Agreement.

     7.4    TERMS AND CONDITIONS. Shares of Restricted Stock shall be subject to
such terms and conditions as shall be determined by the Committee, including
without limitation, the following:

            (a)  LIMITATIONS ON TRANSFERABILITY. Except as otherwise provided in
     an Agreement or determined by the Committee, during a period set by the
     Committee commencing with the date of such Award (the "RESTRICTION
     PERIOD"), the Participant shall not be permitted to sell, assign, transfer,
     pledge or otherwise encumber any interest in shares of Restricted Stock.

            (b)  LAPSE OF RESTRICTIONS. Restrictions on Restricted Stock shall
     lapse in accordance with the terms specified in the Agreement governing
     such Restricted Stock.

            (c)  DELIVERY. If and when the Restriction Period expires without a
     prior forfeiture of the Restricted Stock subject to such Restriction
     Period, certificates for such shares without any legend referring to such
     Restricted Period shall be delivered to the Participant.

            (d)  ELECTION. A Participant may elect to further defer receipt of
     the Restricted Stock for a specified period or until a specified event,
     subject in each case to the Committee's approval and to such terms as are
     determined by the Committee. Subject to any exceptions adopted by the
     Committee, such election must be made one (1) year prior to completion of
     the Restriction Period.

            (e)  FORFEITURE/REPURCHASE RIGHTS. Restricted Stock (whether before
     or after the restrictions have lapsed) may be subject to forfeiture and/or
     repurchase as specified in the Agreement governing such Restricted Stock.

                                  ARTICLE VIII

           PROVISIONS APPLICABLE TO INTERESTS ACQUIRED UNDER THE PLAN

     8.1    NO COMPANY OBLIGATION. Solely as a result of this Plan, none of the
Company, an Affiliate thereof or the Committee shall have any duty or obligation
to affirmatively disclose to a record or beneficial holder of shares of Common
Stock or an Award, and such holder shall have no right to be advised of, any
material information regarding the Company or any Affiliate thereof at any time
prior to, upon or in connection with, receipt or the exercise of an Award or the
Company's purchase of shares of Common Stock or an Award from such holder in
accordance with the terms hereof.

                                       11
<Page>

                                   ARTICLE IX

                                CHANGE IN CONTROL

     Notwithstanding any other provisions of the Plan to the contrary, in the
event of a Change in Control, unless otherwise stated in an Agreement, all
outstanding Awards shall be subject to the asset purchase agreement, stock
purchase agreement, agreement of merger or reorganization or other agreements
that effect such Change in Control or any other document executed by the parties
to such Change in Control in connection therewith, the terms of which may
provide, without limitation, for any of the following:

     (i)    The continuation of the outstanding Awards by the Company, if the
            Company is the surviving entity;

     (ii)   The assumption of the outstanding Awards by the acquiring or
            surviving corporation or its parent or subsidiary;

     (iii)  The substitution by the acquiring or surviving corporation or its
            parent or subsidiary of equivalent awards for the outstanding
            Awards; or

     (iv)   Settlement in cash or other property (including securities of the
            surviving or acquiring corporation or its parent or subsidiary) for
            each Share subject to an outstanding Award (less, to the extent
            applicable, the Option Price).

                                    ARTICLE X

                                  MISCELLANEOUS

     10.1   AMENDMENTS AND TERMINATION. The Committee may amend, alter or
discontinue this Plan at any time, but no amendment, alteration or
discontinuation shall be made which would impair the rights of a Participant
under an Award theretofore granted without the Participant's consent, except as
provided in the following paragraph. The Committee may amend the terms of any
Award, prospectively or retroactively, but no such amendment shall impair the
rights of any Participant without the Participant's consent, except as provided
in the following paragraph.

     Subject to the above provisions, the Committee shall have authority to
amend this Plan to take into account changes in law and tax and accounting
rules, as well as other developments, and to grant Awards which qualify for
beneficial treatment under such rules without approval of the shareholders of
the Company. Notwithstanding anything in this Plan or an Agreement to the
contrary, if any right under this Plan or an Agreement would cause a transaction
to be ineligible for pooling of interest accounting that would, but for the
right hereunder, be eligible for such accounting treatment, the Committee may
modify or adjust the right so that pooling of interest accounting shall be
available, including the substitution of equity interests having a Share Value
equal to the cash otherwise payable hereunder for the right which caused the
transaction to be ineligible for pooling of interest accounting.

                                       12
<Page>

     10.2   UNFUNDED STATUS OF PLAN. It is intended that this Plan be an
"unfunded" plan for incentive and deferred compensation. The Committee may
authorize the creation of trusts or other arrangements to meet the obligations
created under this Plan to deliver shares of Common Stock or make payments;
PROVIDED, HOWEVER, that, unless the Committee otherwise determines, the
existence of such trusts or other arrangements is consistent with the "unfunded"
status of this Plan.

     10.3   GENERAL PROVISIONS.

            (a)  REPRESENTATION. The Committee may require each person
     purchasing or receiving shares of Common Stock pursuant to an Award to
     represent to and agree with the Company in writing that such person is
     acquiring the shares of Common Stock without a view to the distribution
     thereof. If any Shares shall be represented by certificates, such
     certificates may include any legend which the Committee deems appropriate
     to reflect any restrictions on transfer or other restrictions contained in
     the Company's Governing Documents or in any agreement entered into among
     the Company and some or all of the holders of Shares.

            (b)  NO ADDITIONAL OBLIGATION. Nothing contained in this Plan shall
     prevent the Company, an Affiliate thereof or other entity from adopting
     other or additional compensation arrangements for its employees.

            (c)  WITHHOLDING. No later than the date as of which an amount first
     becomes includible in the gross income of the Participant for Federal
     income tax purposes with respect to any Award, the Participant shall pay to
     the Company (or other entity identified by the Committee), or make
     arrangements satisfactory to the Company or other entity identified by the
     Committee regarding the payment of, any Federal, state, local or foreign
     taxes of any kind required by law to be withheld with respect to such
     amount. Unless otherwise determined by the Committee, withholding
     obligations may be settled with shares of Common Stock (including shares of
     Common Stock that are part of the Award that gives rise to the withholding
     requirement) provided that any applicable requirements under Section 16 of
     the Exchange Act are satisfied. The obligations of the Company under this
     Plan shall be conditional on such payment or arrangements, and the Company
     and its Affiliates shall, to the extent permitted by law, have the right to
     deduct any such taxes from any payment otherwise due to the Participant.

            (d)  REPRESENTATIVE. The Committee shall establish such procedures
     as it deems appropriate for a Participant to designate a Representative to
     whom any amounts payable in the event of the Participant's death are to be
     paid.

            (e)  CONTROLLING LAW. This Plan and all Awards granted and actions
     taken hereunder and thereunder shall be governed by and construed in
     accordance with the laws of the State of Delaware (other than its law
     respecting choice of law). This Plan shall be construed to comply with all
     applicable law, and to avoid liability to the Company, an Affiliate thereof
     or a Participant, including, without limitation, liability under Section
     16(b) of the Exchange Act.

                                       13
<Page>

            (f)  OFFSET. Any amounts owed to the Company or an Affiliate thereof
     by a Participant of whatever nature may be offset by the Company from the
     value of any shares of Common Stock or cash under this Plan or an Agreement
     to be transferred to such Participant.

            (g)  FAIL-SAFE. With respect to persons subject to Section 16 of the
     Exchange Act, transactions under this Plan are intended to comply with all
     applicable conditions of Rule 16b-3. To the extent any provision of this
     Plan or action by the Committee fails to so comply, it shall be deemed null
     and void, to the extent permitted by law and deemed advisable by the
     Committee. Moreover, in the event this Plan does not include a provision
     required by Rule 16b-3 to be stated herein, such provision (other than one
     relating to eligibility requirements or the price and amount of Awards)
     shall be deemed to be incorporated by reference into this Plan with respect
     to Participants subject to Section 16.

            (h)  RIGHT TO CAPITALIZE. The grant of an Award shall in no way
     affect the right of the Company to adjust, reclassify, reorganize or
     otherwise change its capital or business structure or to merge,
     consolidate, dissolve, liquidate or sell or transfer all or any part of its
     business or assets.

     10.4   MITIGATION OF EXCISE TAX. Except as otherwise provided in an
Agreement or as specifically provided for under another plan or an employment
agreement covering a Participant, if any payment or right accruing to a
Participant under this Plan (without the application of this SECTION 10.4),
either alone or together with other payments or rights accruing to the
Participant from the Company or an Affiliate thereof (the "TOTAL PAYMENTS")
would constitute a "parachute payment" (as defined in Section 280G of the Code
and regulations thereunder), such payment or right shall be reduced to the
largest amount or greatest right that will result in no portion of the amount
payable or right accruing under this Plan being subject to an excise tax under
Section 4999 of the Code or being disallowed as a deduction under Section 280G
of the Code. The determination of the amount of any potential reduction in the
rights or payments shall be made by the Committee. The Participant shall
cooperate in good faith with the Committee in making such determination and
providing the necessary information for this purpose. The foregoing provisions
of this SECTION 10.4 shall apply with respect to any Participant only if the
Committee determines that after reduction for any applicable Federal excise tax
imposed by Section 4999 of the Code and Federal income tax imposed by the Code,
the Total Payments accruing to such person would be less than the amount of the
Total Payments as reduced, if applicable, under the foregoing provisions of this
Plan and after reduction for only Federal income taxes.

     10.5   NO RIGHTS WITH RESPECT TO CONTINUANCE OF EMPLOYMENT. Nothing
contained herein shall be deemed to alter the relationship between the Company,
an Affiliate thereof or other entity and a Participant, or the contractual
relationship between a Participant and the Company, an Affiliate thereof or
other entity if there is a written contract regarding such relationship. Nothing
contained herein shall be construed to constitute a contract of employment
thereof between the Company, an Affiliate thereof or other entity and a
Participant. The Company, an Affiliate thereof or other entity and each of the
Participants continue to have the right to terminate the employment or service
relationship at any time for any reason, except as provided in a written
contract. The Company, an Affiliate thereof or other entity shall have no
obligation to retain the Participant in its employ or service as a result of
this Plan. There shall be no inference as to the length of

                                       14
<Page>

employment or service hereby, and the Company, an Affiliate thereof or other
entity retains the same rights to terminate the Participant's employment or
service as existed prior to the individual becoming a Participant in this Plan.

     10.6   AWARDS IN SUBSTITUTION FOR AWARDS GRANTED BY OTHER ENTITIES. Awards
may be granted under this Plan from time to time in substitution for awards held
by employees, directors, independent contractors, or consultants of other
entities who are about to become employees, directors, independent contractors
or consultants of the Company or an Affiliate thereof as the result of a merger
or consolidation of the employing entity with the Company or an Affiliate
thereof, or the acquisition by the Company or an Affiliate thereof of the assets
of the employing entity, or the acquisition by the Company or an Affiliate
thereof of the equity securities of the employing entity, as the result of which
it becomes a designated employer under this Plan. The terms and conditions of
the Awards so granted may vary from the terms and conditions set forth in this
Plan at the time of such grant as the majority of the members of the Committee
may deem appropriate to conform, in whole or in part, to the provisions of the
Awards in substitution for which they are granted.

     10.7   PROCEDURE FOR ADOPTION. Any Affiliate of the Company may, by
resolution of such Affiliate's board of directors or other governing body, with
the consent of the Board of Directors and subject to such conditions as may be
imposed by the Board of Directors, adopt this Plan for the benefit of its
employees, directors, independent contractors and consultants as of the date
specified in the resolution.

     10.8   PROCEDURE FOR WITHDRAWAL. Any Affiliate of the Company which has
adopted this Plan may, by resolution of the board of directors or other
governing board of such Affiliate, with the consent of the Board of Directors
and subject to such conditions as may be imposed by the Board of Directors,
terminate its adoption of this Plan.

     10.9   DELAY. The Company shall have the right to suspend or delay any time
period described in this Plan or an Agreement if the Committee shall determine
that the action may constitute a violation of any law or result in liability
under any law to the Company, an Affiliate thereof or a shareholder until such
time as the action required or permitted shall not constitute a violation of law
or result in liability to the Company, an Affiliate thereof or a shareholder.

     10.10  HEADINGS. The headings contained in this Plan are for reference
purposes only and shall not affect the meaning or interpretation of this Plan.

     10.11  SEVERABILITY. If any provision of this Plan shall for any reason be
held to be invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provision hereby, and this Plan shall be construed as if
such invalid or unenforceable provision were omitted.

     10.12  SUCCESSORS AND ASSIGNS. This Plan shall inure to the benefit of and
be binding upon each successor and assign of the Company. All obligations
imposed upon a Participant, and all rights granted to the Company hereunder,
shall be binding upon the Participant's heirs, legal representatives and
successors.

                                       15
<Page>

     10.13  ENTIRE AGREEMENT. This plan and each Agreement constitute the entire
agreement with respect to the subject matter hereof and thereof, provided that
in the event of any inconsistency between this Plan and an Agreement, the terms
and conditions of the Agreement shall control.

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