Document:

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                                                                     EXHIBIT 4.2

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                        NEWPORT INTERNATIONAL GROUP, INC.

                     2002 STOCK OPTION AND STOCK AWARD PLAN

                         Effective as of August 9, 2002

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A.       PURPOSE OF PLAN; EFFECTIVE DATE; DEFINITIONS; SHARES AND OPTIONS
         AVAILABLE UNDER PLAN.

         1. PURPOSE. The purpose of this Plan is to advance the interests of
NEWPORT INTERNATIONAL GROUP, INC., a Delaware corporation (the "Company"), by
providing an incentive to attract, retain and motivate highly qualified and
competent persons who are important to the Company and upon whose efforts and
judgment the success of the Company and its Subsidiaries is largely dependent,
including key employees, consultants, independent contractors, Officers and
Directors, by authorizing the grant of either (a) options to purchase shares of
Common Stock of the Company or (b) shares of Common Stock of the Company, in
each case to persons who are eligible to participate hereunder, thereby
encouraging or facilitating stock ownership in the Company by such persons, all
upon and subject to the terms and conditions of this Plan.

         2. EFFECTIVE DATE. This Plan became effective upon its adoption by the
Board of Directors of the Company.

         3. DEFINITIONS. As used herein, the following terms shall have the
meanings indicated:

                  (a) "Board" shall mean the Board of Directors of the Company.

                  (b) "Cause" shall mean any of the following:

                           (i) a determination by the Company that there has
been a willful, reckless or grossly negligent failure by the Grantee to perform
his or her duties as an employee of the Company;

                           (ii) a determination by the Company that there has
been a willful breach by the Grantee of any of the material terms or provisions
of any employment, consulting or independent contractor agreement between such
Grantee and the Company;

                           (iii) any conduct by the Grantee that either results
in his or her conviction of a felony under the laws of the United States of
America or any state thereof, or of an equivalent crime under the laws of any
other jurisdiction;

                           (iv) a determination by the Company that the Grantee
has committed an act or acts involving fraud, embezzlement, misappropriation,
theft, breach of fiduciary duty or material dishonesty against the Company, its
properties or personnel;

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                           (v) any act by the Grantee that the Company
determines to be in willful or wanton disregard of the Company's best interests,
or which results, or is intended to result, directly or indirectly, in improper
gain or personal enrichment of the Grantee at the expense of the Company;

                           (vi) a determination by the Company that there has
been a willful, reckless or grossly negligent failure by the Grantee to comply
with any rules, regulations, policies or procedures of the Company, or that the
Grantee has engaged in any act, behavior or conduct demonstrating a deliberate
and material violation or disregard of standards of behavior that the Company
has a right to expect of its employees; or

                           (vii) if the Grantee, while employed or otherwise
engaged by the Company and for two years thereafter, violates a confidentiality
and/or noncompete agreement with the Company, or fails to safeguard, divulges,
communicates, uses to the detriment of the Company or for the benefit of any
person or persons, or misuses in any way, any Confidential Information;
provided, however, that, if the Grantee has entered into a written employment
agreement with the Company which remains effective and which expressly provides
for a termination of such Grantee's employment for "cause," the term "Cause" as
used herein shall have the meaning as set forth in the Grantee's employment
agreement in lieu of the definition of "Cause" set forth in this Section A.3.

                  (c) "Change of Control" shall mean the acquisition by any
person or group (as that term is defined in the Securities Exchange Act, and the
rules promulgated pursuant to that act) in a single transaction or a series of
transactions of 30% or more in voting power of the outstanding stock of the
Company and a change of the composition of the Board of Directors so that,
within two years after the acquisition took place, a majority of the members of
the Board of Directors of the Company, or of any corporation with which the
Company may be consolidated or merged, are persons who were not Directors or
Officers of the Company or one of its Subsidiaries immediately prior to (i) the
acquisition, or (ii) the first of the series of transactions that resulted in
the acquisition, of 30% or more in voting power of the outstanding stock of the
Company.

                  (d) "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                  (e) "Committee" shall mean the stock option or compensation
committee appointed by the Board or, if not appointed, the Board.

                  (f) "Common Stock" shall mean the Company's Common Stock, par
value $.0001 per share.

                  (g) "Confidential Information" shall mean any and all
information pertaining to the Company's financial condition, clients, customers,
prospects, sources of prospects, customer lists, trademarks, trade names,
service marks, service names, "know-how," trade secrets, products, services,
details of client or consulting contracts, management agreements, pricing
policies, operational methods, site selection, results of operations, costs and

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methods of doing business, owners and ownership structure, marketing practices,
marketing plans or strategies, product development techniques or plans,
procurement and sales activities, promotion and pricing techniques, credit and
financial data concerning customers and business acquisition plans, that is not
generally available to the public.

                  (h) "Director" shall mean a member of the Board.

                  (i) "Effective Date of Grant" means the date on which the
Board is deemed to have made the grant of Options or Shares.

                  (j) "Employee" shall mean any person, including Officers and
Directors, who are employed by the Company or any parent or Subsidiary of the
Company within the meaning of Code Section 3401(c) or the regulations
promulgated thereunder.

                  (k) "Fair Market Value" of a Share on any date of reference
shall be the Closing Price of a share of Common Stock on the business day
immediately preceding such date, unless the Committee in its sole discretion
shall determine otherwise in a fair and uniform manner. For this purpose, the
"Closing Price" of the Common Stock on any business day shall be (i) if the
Common Stock is listed or admitted for trading on any United States national
securities exchange, or if actual transactions are otherwise reported on a
consolidated transaction reporting system, the last reported sale price of the
Common Stock on such exchange or reporting system, as reported in any newspaper
of general circulation, (ii) if the Common Stock is quoted on the National
Association of Securities Dealers Automated Quotations System ("Nasdaq"), or any
similar system of automated dissemination of quotations of securities prices in
common use, the closing sales price, or if not available, the mean between the
closing high bid and low asked quotations for such day of the Common Stock on
such system, or (iii) if neither clause (i) nor (ii) is applicable, the mean
between the high bid and low asked quotations for the Common Stock as reported
by the National Quotation Bureau, Incorporated if at least two securities
dealers have inserted both bid and asked quotations for the Common Stock on at
least five of the 10 preceding days. If the information set forth in clauses (i)
through (iii) above is unavailable or inapplicable to the Company (E.G., if the
Company's Common Stock is not then publicly traded or quoted), then the "Fair
Market Value" of a Share shall be the fair market value (I.E., the price at
which a willing seller would sell a Share to a willing buyer when neither is
acting under compulsion and when both have reasonable knowledge of all relevant
facts) of a share of the Common Stock on the business day immediately preceding
such date as the Committee in its sole and absolute discretion shall determine
in a fair and uniform manner.

                  (l) "Family Member" shall mean any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the Grantee's household (other than a tenant of Grantee), a trust in
which these persons have more than 50% of the beneficial interest, a foundation
in which these persons (or the Grantee) control the management of assets, and
any other entity in which these persons (or the Grantee) own more than 50% of
the voting interests.

                  (m) "Grantee" shall mean a person to whom an Option or Shares
are granted under this Plan, or any person who succeeds to the rights of such
person under this Plan by reason of the death of such person.

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                  (n) "Incentive Stock Option" shall mean an incentive stock
option as defined in Section 422 of the Code.

                  (o) "Non-Employee Directors" shall have the meaning set forth
in Rule 16b-3(b)(3)(i) under the Securities Exchange Act.

                  (p) "Non-Statutory Stock Option" or "Nonqualified Stock
Option" shall mean an Option which is not an Incentive Stock Option.

                  (q) "Officer" shall mean the Company's chairman, president,
principal financial officer, principal accounting officer (or, if there is no
such accounting officer, the controller), any vice president of the Company in
charge of a principal business unit, division or function (such as sales,
administration or finance), any other officer who performs a policy-making
function, or any other person who performs similar policy-making functions for
the Company. Officers of Subsidiaries shall be deemed Officers of the Company if
they perform such policy-making functions for the Company. As used in this
paragraph, the phrase "policy-making function" does not include policy-making
functions that are not significant. Unless specified otherwise in a resolution
by the Board, an "executive officer" pursuant to Item 401(b) of Regulation S-K
(17 C.F.R. "229.401(b)) shall be only such a person designated as an "Officer"
pursuant to the foregoing provisions of this paragraph.

                  (r) "Option" (when capitalized) shall mean any stock option
granted under this Plan.

                  (s) "Plan" shall mean this 2002 Stock Option and Stock Award
Plan of the Company, which Plan shall be effective upon approval by the Board,
subject to approval within 12 months of the date thereof by the shareholders of
the Company.

                  (t) "Securities Act" shall mean the Securities Act of 1933, as
amended.

                  (u) "Securities Exchange Act" shall mean the Securities
Exchange Act of 1934, as amended.

                  (v) "Share" or "Shares" shall mean a share or shares, as the
case may be, of the Common Stock, as adjusted in accordance with Section B.7 of
this Plan.

                  (w) "Subsidiary" shall mean any corporation (other than the
Company) in any unbroken chain of corporations beginning with the Company if, at
the time of the granting of the Option, each of the corporations other than the
last corporation in the unbroken chain owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

                  (x) "10% Shareholder" shall mean any person owning directly or
indirectly (through attribution under Section 424(d) of the Code) at the
Effective Date of Grant, capital stock possessing more than 10% of the total
combined voting power of all classes of the capital stock of the Company (or a
Subsidiary) at the Effective Date of Grant.

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         4. SHARES AND OPTIONS AVAILABLE UNDER PLAN. Subject to adjustment in
accordance with Section B.7 hereof, the Company may grant to Grantees from time
to time (a) Options to purchase Shares of the Company's Common Stock or (b)
Shares of the Company's Common Stock, up to an aggregate of One Million
(1,000,000) Shares from the authorized but unissued Shares of the Company.

B.       PROVISIONS RELATING TO GRANT OF OPTIONS.

         1. LIMITATIONS. An Option granted hereunder shall be either an
Incentive Stock Option or a Non-Statutory Stock Option as determined by the
Committee at the time of grant of such Option and shall clearly state whether it
is an Incentive Stock Option or Non-Statutory Stock Option. All Incentive Stock
Options shall be granted within 10 years from the effective date of this Plan.
An Incentive Stock Option shall not be granted to any 10% Shareholder unless (a)
the exercise price of such Option is at least 110% of the Fair Market Value of
the Shares subject to such Option on the Effective Date of Grant and (b) such
Option by its terms is not exercisable after the expiration of five years from
the Effective Date of Grant. Options otherwise qualifying as Incentive Stock
Options hereunder will not be treated as Incentive Stock Options to the extent
that the aggregate Fair Market Value (determined at the time the Option is
granted) of the Shares, with respect to which Options meeting the requirements
of Code Section 422(b) are exercisable for the first time by any individual
during any calendar year (under all stock option or similar plans of the Company
and any Subsidiary), exceeds $100,000.

         2. CONDITIONS FOR GRANT OF OPTIONS.

                  (a) Each Option shall be evidenced by an Option agreement that
may contain any term deemed necessary or desirable by the Committee, provided
such terms are not inconsistent with this Plan or any applicable law. Grantees
shall be those persons selected by the Committee from the class of all Employees
of the Company or its Subsidiaries, including Employee Directors and Officers
who are regular or former regular employees of the Company, Directors who are
not regular employees of the Company, as well as consultants to the Company;
provided, however, that Incentive Stock Options may only be granted to Employees
who satisfy Section A.3(j) of the Plan. Any person who files with the Committee,
in a form satisfactory to the Committee, a written waiver of eligibility to
receive any Option under this Plan shall not be eligible to receive any Option
under this Plan for the duration of such waiver.

                  (b) In granting Options, the Committee shall take into
consideration the contribution the person has made, or is expected to make, to
the success of the Company or its Subsidiaries and such other factors as the
Committee shall determine. The Committee shall also have the authority to
consult with and receive recommendations from Officers and other personnel of
the Company and its Subsidiaries with regard to these matters. The Committee may
from time to time in granting Options under this Plan prescribe such terms and
conditions concerning such Options as it deems appropriate, including, without
limitation, (i) the exercise price or prices of the Option or any installments
thereof, (ii) prescribing the date or dates on which the Option becomes and/or

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remains exercisable, (iii) providing that the Option vests or becomes
exercisable in installments over a period of time, and/or upon the attainment of
certain stated standards, specifications or goals, (iv) relating an Option to
the continued employment of the Grantee for a specified period of time, or (v)
conditions or termination events with respect to the exercisability of any
Option, provided that such terms and conditions are not more favorable to a
Grantee than those expressly permitted herein.

         3. EXERCISE PRICE. The exercise price per Share of any Option shall be
any price determined by the Committee but shall not be less than the par value
per Share; provided, however, that in no event shall the exercise price per
Share of any Incentive Stock Option be less than the Fair Market Value of the
Shares underlying such Option on the date such Option is granted and, in the
case of an Incentive Stock Option granted to a 10% Shareholder, the per Share
exercise price will not be less than 110% of the Fair Market Value in accordance
with Section B.1 of this Plan. Re-granted Options, or Options that are canceled
and then re-granted covering such canceled Options, will, for purposes of this
Section B.3, be deemed to have been granted on the date of the re-granting.

         4. EXERCISE OF OPTIONS.

                  (a) An Option shall be deemed exercised when (i) the Company
has received written notice of such exercise in accordance with the terms of the
Option, (ii) full payment of the aggregate option price of the Shares as to
which the Option is exercised has been made, (iii) the Grantee has agreed to be
bound by the terms, provisions and conditions of any applicable shareholders'
agreement or any other agreement or condition imposed by the Committee in
connection with the grant of the Option, and (iv) arrangements that are
satisfactory to the Committee, in its sole discretion, have been made for the
Grantee's payment to the Company of the amount that is necessary for the Company
or the Subsidiary employing the Grantee to withhold in accordance with
applicable federal or state tax withholding requirements. Unless further limited
by the Committee in any Option, the exercise price of any Shares purchased
pursuant to the exercise of such Option shall be paid in cash, by certified or
official bank check, by money order, with Shares or by a combination of the
above; provided, however, that the Committee, in its sole discretion, may accept
a personal check in full or partial payment of any Shares. If the exercise price
is paid in whole or in part with Shares, the value of the Shares surrendered
shall be their Fair Market Value on the date the Option is exercised.

                  (b) No Grantee shall be deemed to be a holder of any Shares
subject to an Option unless and until a stock certificate or certificates for
such Shares are issued to such person(s) under the terms of this Plan. No
adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property) or distributions or other rights for which
the record date is prior to the date such stock certificate is issued, except as
expressly provided in Section B.7 hereof.

         5. EXERCISABILITY OF OPTIONS. Any Option shall become exercisable in
such amounts, at such intervals, upon such events or occurrences and upon such
other terms and conditions as shall be provided in an individual Option
agreement evidencing such Option, except as otherwise provided in Section B.2 or
this Section B.5.

                  (a) The expiration date(s) of an Option shall be determined by
the Committee at the time of grant, but in no event shall an Option be
exercisable after the expiration of 10 years from the date of grant of the
Option.

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                  (b) Unless otherwise expressly provided in any Option as
approved by the Committee, notwithstanding the exercise schedule set forth in
any Option, each outstanding Option, may, in the sole discretion of the
Committee, become fully exercisable upon the date of the occurrence of any
Change of Control, but, unless otherwise expressly provided in any Option, no
earlier than six months after the date of grant, and if and only if Grantee is
in the employ of the Company on such date.

                  (c) The Committee may in its sole discretion accelerate the
date on which any Option may be exercised and may accelerate the vesting of any
Shares subject to any Option or previously acquired by the exercise of any
Option.

         6. TERMINATION OF OPTION PERIOD.

                  (a) Unless otherwise expressly provided in any Option, the
unexercised portion of any Option shall automatically and without notice
immediately terminate and become forfeited, null and void at the time of the
earliest to occur of the following:

                           (i) two months after the date on which the Grantee's
employment is terminated for any reason OTHER THAN by reason of (A) Cause, (B)
the termination of the Grantee's employment with the Company by such Grantee
following less than 30 days' prior written notice to the Company of such
termination (an "Improper Termination"), (C) a mental or physical disability
(within the meaning of Section 22(e) of the Code) as determined by a medical
doctor satisfactory to the Committee, or (D) death;

                           (ii) immediately upon (A) the termination by the
Company of the Grantee's employment or engagement for Cause, or (B) an Improper
Termination;

                           (iii) one year after the date on which the Grantee's
employment is terminated by reason of a mental or physical disability (within
the meaning of Code Section 22(e)) as determined by a medical doctor
satisfactory to the Committee; or

                           (iv) the later of (A) one year after the date of
termination of the Grantee's employment by reason of death of the Employee, or
(B) two months after the date on which the Grantee shall die if such death shall
occur during the one-year period specified in Section B.6(a)(iii) hereof.

                  (b) The Committee in its sole discretion may, by giving
written notice (the "Cancellation Notice"), cancel effective upon the date of
the consummation of any corporate transaction described in Section B.7(d)
hereof, any Option that remains unexercised on such date. The Cancellation
Notice shall be given a reasonable period of time prior to the proposed date of
such cancellation and may be given either before or after approval of such
corporate transaction.

                  (c) Upon the Grantee's termination of employment as described
in this Section, or otherwise, any Option (or portion thereof) not previously
vested or not yet exercisable pursuant to Section B.5 of this Plan or the
vesting schedule set forth in the Option agreement evidencing the Option shall
be immediately cancelled.

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         7. ADJUSTMENT OF SHARES.

                  (a) If at any time while this Plan is in effect or unexercised
Options are outstanding, there shall be any increase or decrease in the number
of issued and outstanding Shares through the declaration of a stock dividend or
through any recapitalization resulting in a stock split, combination or exchange
of Shares (other than any such exchange or issuance of Shares through which
Shares are issued to effect an acquisition of another business or entity or the
Company's purchase of Shares pursuant to a plan of repurchase approved by the
Board or to exercise a "call" purchase option including, without limitation, an
Option issued and/or exercised pursuant to the Plan), then and in such event:

                           (i) appropriate adjustment shall be made in the
maximum number of Shares available for grant under this Plan, so that the same
percentage of the Company's issued and outstanding Shares shall continue to be
subject to being so optioned;

                           (ii) appropriate adjustment shall be made in the
number of Shares and the exercise price per Share thereof then subject to any
outstanding Option, so that the same percentage of the Company's issued and
outstanding Shares shall remain subject to purchase at the same aggregate
exercise price; and

                           (iii) such adjustments shall be made by the
Committee, whose determination in that respect shall be final, binding and
conclusive.

                        (b) Subject to the specific terms of any Option, the
Committee may change the terms of Options outstanding under this Plan, with
respect to the Option price or the number of Shares subject to the Options,
or both, when, in the Committee's sole discretion, such adjustments become
appropriate by reason of a corporate transaction described in Section B.7(d)
hereof, or otherwise.

                        (c) Except as otherwise expressly provided herein, the
issuance by the Company of shares of its capital stock of any class, or
securities convertible  into or exchangeable for shares of its capital stock of
any class, either in connection with a direct or underwritten sale or upon the
exercise of rights or warrants to subscribe therefor or purchase such Shares,
or upon conversion of shares or obligations of the Company convertible into
such shares or other securities, shall not affect, and no adjustment by reason
thereof shall be made with respect to the number of or exercise price of Shares
then subject to outstanding Options granted under this Plan.

                        (d) Without limiting the generality of the foregoing,
the existence of outstanding Options granted under this Plan shall not affect
in any manner the right or power of the Company to make, authorize or
consummate (i) any or all adjustments, reclassifications, recapitalizations,
reorganizations or other changes in the Company's capital structure or its
business; (ii) any merger or consolidation of the Company or to which the
Company is a party; (iii) any issuance by the Company of debt securities, or
preferred or preference stock that would rank senior to or above the Shares
subject to outstanding Options; (iv) any purchase or issuance by the Company of
Shares or other classes of common stock or common equity securities; (v) the
dissolution or liquidation of the Company; (vi) any sale, transfer,
encumbrance, pledge or assignment of all

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or any part of the assets or business of the Company; or (vii) any other
corporate act or proceeding, whether of a similar character or otherwise.

                  (e) The Grantee shall receive written notice within a
reasonable time prior to the consummation of such action advising the Grantee of
any of the foregoing. The Committee may, in the exercise of its sole discretion,
in such instances declare that any Option shall terminate as of a date fixed by
the Board and give each Grantee the right to exercise his or her Option.

         8. TRANSFERABILITY OF OPTIONS. Unless otherwise authorized by the
Board, no Option granted hereunder shall be sold, pledged, assigned,
hypothecated, disposed or otherwise transferred by the Grantee other than by (a)
will or the laws of descent and distribution, (b) by gift to a Family Member, or
(c) through a domestic relations order in settlement of marital property rights.
No Option shall be exercisable during the Grantee's lifetime by any person other
than the Grantee or certain transferees expressly permitted under this Section.

         9. LAPSE OF OPTIONS. If any Option granted under this Plan shall
terminate, expire, or be canceled, forfeited or surrendered as to any Shares,
the Shares relating to such lapsed Option shall be available for issuance
pursuant to new Options subsequently granted under this Plan. Upon the grant of
any Option hereunder, the authorized and unissued Shares to which such Option
relates shall be reserved for issuance to permit exercise under this Plan.

C.       PROVISIONS RELATING TO GRANT OF SHARES.

         1. GRANT OF SHARES. Shares shall be granted on such terms as are
established, from time to time, by the Committee. The grant of Shares to a
Grantee, and the terms thereof, shall be communicated to a Grantee, in writing
and shall set forth the number of Shares; the Fair Market Value of the Shares
granted; if applicable, the compensation or other amounts otherwise due to the
Grantee that will be extinguished in exchange for such Shares; and such other
terms as are established by the Committee. Such notice shall also include the
form of Notice of Acceptance of such Shares.

         2. ACCEPTANCE OF SHARES. A Grantee entitled to accept Shares in lieu of
cash salary or other compensation may do so, in whole or in part, by delivering
to the Chief Financial Officer of the Company, at the Company's principal
executive office, a written Notice of Acceptance and Subscription Agreement in
the form as shall have been approved by the Committee. The written notice shall
specify the number of Shares that are being accepted.

         3. OWNERSHIP OF SHARES. The Company shall cause to be issued a stock
certificate representing the Shares in the name of the Grantee upon final
approval of the terms of the grant by the Committee and, in the case of a
Grantee accepting Shares in lieu of cash salary or other compensation, upon the
Company's receipt of the properly completed Notice of Acceptance and
Subscription Agreement. Subject to the restrictions set forth in this Plan and
the Notice of Acceptance and Subscription Agreement, as applicable, the Grantee
shall become the owner of the Shares and shall be treated as a shareholder of
the Company entitled to all of the rights of any other holder of the Company's
Common Stock.

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         4. TRANSFERABILITY OF SHARES. Shares may be accepted only by the
individual to whom they were offered or granted. Shares may not be transferred
except in compliance with applicable federal and state securities laws.

         5. TERMINATION OF RIGHT TO ACCEPT SHARES. Except as otherwise
specifically provided in the grant of Shares by the Board, the right to accept
Shares shall terminate in the event that, on the date 90 days after the
Effective Date of Grant (or such lesser period of time as is established by the
Board and set forth in the grant of Shares), the Shares evidenced by a
particular grant have not theretofore been accepted in full.

         6. TAX CONSEQUENCES. A Grantee who accepts Shares will generally be
deemed to have received ordinary income in an amount equal to the value of the
Shares on the date of such acceptance. In addition, the Company will be required
to withhold federal income and payroll taxes from the sale of the Shares or from
other amounts due to the Grantee, if the Grantees chooses not sell the Shares
immediately. Grantees may also be subject to other applicable tax consequences
associated with the acceptance of Shares. Each Grantee shall be advised in
writing to consult his or her own tax advisor prior to exercising any rights
under the Plan.

D.       ISSUANCE OF SHARES; ADMINISTRATION OF PLAN; MISCELLANEOUS PROVISIONS.

         1. ISSUANCE OF SHARES. As a condition of any sale or issuance of Shares
upon exercise of any Option, the Committee may require such agreements or
undertakings, if any, as the Committee may deem necessary or advisable to assure
compliance with any applicable law or regulation including, but not limited to,
the following:

                  (a) a representation and warranty by the Grantee to the
Company, at the time any Option is exercised, that he is acquiring the Shares to
be issued to him for investment and not with a view to, or for sale in
connection with, the distribution of any such Shares;

                  (b) an agreement and undertaking to comply with all of the
terms, restrictions and provisions set forth in any then-applicable
shareholders' agreement relating to the Shares, including, without limitation,
any restrictions on transferability, any rights of first refusal, or any option
of the Company to "call" or purchase such Shares under then applicable
agreements; or

                  (c) any restrictive legend or legends, to be reflected on
Share certificates, that are, in the discretion of the Committee, necessary or
appropriate to comply with the provisions of any securities law or other
restrictions applicable to the issuance of the Shares.

         2. ADMINISTRATION OF THIS PLAN.

                  (a) This Plan shall be administered by a Committee, which
shall consist of not less than two Non-Employee Directors; provided, however, if
there are fewer than two Non-Employee Directors, the Committee shall be composed
of all of the members of the Board. The Committee shall have all of the powers
of the Board with respect to this Plan. Any member of the Committee may be
removed at any time, with or without cause, by resolution of the Board and any

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vacancy occurring in the membership of the Committee may be filled by
appointment by the Board.

                  (b) Subject to the provisions of this Plan, the Committee
shall have the authority, in its sole discretion, to: (i) grant Options or
Shares, (ii) determine the exercise price per Share at which Options may be
exercised, (iii) determine the Grantees to whom, and time or times at which,
Options or Shares shall be granted, (iv) determine the number of Shares to be
represented by each Option, (v) determine the terms, conditions and provisions
of each Option or Share granted (which need not be identical) and, with the
consent of the holder thereof, modify or amend each Option, (vi) defer (with the
consent of the Grantee) or accelerate the exercise date of any Option, and (vii)
make all other determinations deemed necessary or advisable for the
administration of this Plan, including repricing, canceling or regranting
Options or Shares.

                  (c) The Committee, from time to time, may adopt rules and
regulations for carrying out the purposes of this Plan. The Committee's
determinations and its interpretation and construction of any provision of this
Plan shall be final, conclusive and binding upon all Grantees and any holders of
any Options or Shares granted under this Plan.

                  (d) Any and all decisions or determinations of the Committee
shall be made either (i) by a majority vote of the members of the Committee at a
meeting of the Committee or (ii) without a meeting by the unanimous written
approval of the members of the Committee.

                  (e) No member of the Committee, or any Officer or Director of
the Company or its Subsidiaries, shall be personally liable for any act or
omission made in good faith in connection with this Plan.

         3. INTERPRETATION.

                  (a) This Plan shall be administered and interpreted so that
all Incentive Stock Options granted under this Plan will qualify as Incentive
Stock Options under Section 422 of the Code. If any provision of this Plan
should be held invalid for the granting of Incentive Stock Options or illegal
for any reason, such determination shall not affect the remaining provisions
hereof, and this Plan shall be construed and enforced as if such provision had
never been included in this Plan.

                  (b) This Plan shall be governed by the laws of the State of
Florida.

                  (c) Headings contained in this Plan are for convenience only
and shall in no manner be construed as part of this Plan or affect the meaning
or interpretation of any part of this Plan.

                  (d) Any reference to the masculine, feminine, or neuter gender
shall be a reference to such other gender as is appropriate.

                  (e) Time shall be of the essence with respect to all time
periods specified for the giving of notices to the Company hereunder, as well as

                                       11
<PAGE>

all time periods for the expiration and termination of Options in accordance
with Section B.6 hereof (or as otherwise set forth in an Option agreement).

         4. QUALIFICATIONS UNDER ERISA. The Plan is not subject to any of the
provisions of the Employee Retirement Income Security Act of 1974, as amended.

         5. AMENDMENT AND DISCONTINUATION OF THIS PLAN. Either the Board or the
Committee may from time to time amend this Plan or any Option without the
consent or approval of the shareholders of the Company; provided, however, that,
except to the extent provided in Section B.6, no amendment or suspension of this
Plan or any Option issued hereunder shall substantially impair any Option
previously granted to any Grantee without the consent of such Grantee.

         6. RIGHTS OF EMPLOYMENT. The Options and Shares granted to Employees
under this Plan shall be in addition to regular salaries, pension, life
insurance or other benefits related to their employment with the Company or its
Subsidiaries. Nothing in this Plan or in any Option or other agreement entered
into pursuant to this Plan shall confer upon any Employee any right to continued
employment by the Company or a Subsidiary (or related salary and benefits), nor
shall it impair any right of the Company or a Subsidiary to terminate such
employment.

         7. TERMINATION DATE. This Plan shall terminate 10 years after the date
of adoption by the Board of Directors; provided, however, that no such
termination shall affect the validity of Options granted hereunder in accordance
with the terms of this Plan, which Options expire after such termination date.

                                       12<PAGE>
                                                                     Exhibit 4.1

                               JABIL CIRCUIT, INC.

                        2002 EMPLOYEE STOCK PURCHASE PLAN

The following constitute the provisions of the 2002 Employee Stock Purchase Plan
of Jabil Circuit, Inc. (the "Company").

    1. Purpose. The purpose of the Plan is to provide employees of the Company
and its Designated Subsidiaries with an opportunity to purchase Common Stock of
the Company through accumulated payroll deductions. It is the intention of the
Company to have the Plan qualify as an "Employee Stock Purchase Plan" under
Section 423 of the Internal Revenue Code of 1986, as amended.

    2. Definitions.

      (a) "Board" shall mean the Board of Directors of the Company.

      (b) "Code" shall mean the Internal Revenue Code of 1986, as amended.

      (c) "Common Stock" shall mean the Common Stock, .001 par value, of the
Company.

      (d) "Company" shall mean Jabil Circuit, Inc., a Delaware corporation.

      (e) "Compensation" shall mean all base straight time gross earnings
   including payments for shift premium, commissions and overtime, incentive
   compensation, incentive payments, regular bonuses and other compensation.

      (f) "Designated Subsidiaries" shall mean the Subsidiaries that have been
   designated by the Board from time to time in its sole discretion as eligible
   to participate in the Plan.

      (g) "Employee" shall mean any individual who is an employee of the Company
   for purposes of tax withholding under the Code whose customary employment
   with the Company or any Designated Subsidiary is at least twenty (20) hours
   per week and more than five (5) months in any calendar year. For purposes of
   the Plan, the employment relationship shall be treated as continuing intact
   while the individual is on sick leave or other leave of absence approved by
   the Board, an Officer, or a person designated in writing by the Board or an
   Officer as authorized to approval a leave of absence. Where the period of
   leave exceeds 90 days and the individual's right to reemployment is not
   guaranteed either by statute or by contract, the employment relationship will
   be deemed to have terminated on the 91st day of such leave.

      (h) "Enrollment Date" shall mean the first day of each Offering Period.

      (i) "Exercise Date" shall mean the last day of each Offering Period.

      (j) "Fair Market Value" shall mean the value of Common Stock determined as
follows:

             (1) If the Common Stock is listed on any established stock exchange
         or a national market system, including without limitation the National
         Market System of the National Association of Securities Dealers, Inc.
         Automated Quotation ("NASDAQ") System, the Fair Market Value of a Share
         of Common Stock shall be the closing sales price for such stock (or the
         closing bid, if no sales were reported), as quoted on such system or
         exchange (or the exchange with the greatest volume of trading in Common
         Stock) on the day of such determination as reported in the Wall Street
         Journal or such other source as the Board deems reliable;

             (2) If the Common Stock is quoted on the NASDAQ system (but not on
         the National Market System thereof) or is regularly quoted by a
         recognized securities dealer but selling prices are not
<PAGE>
         reported, the Fair Market Value of a Share of Common Stock shall be the
         mean between the high and low asked prices for the Common Stock on the
         date of such determination, as reported in the Wall Street Journal or
         such other source as the Board deems reliable; or

             (3) In the absence of an established market for the Common Stock,
         the Fair Market Value of a Share of Common Stock thereof shall be
         determined in good faith by the Board.

       (k) "Offering Period" shall mean a period of approximately six months,
   commencing on the first Trading Day on or after January 1 and terminating on
   the last Trading Day occurring in the period ending the following June 30, or
   commencing on the first Trading Day on or after July 1 and terminating on the
   last Trading Day occurring in the period ending the following December 31,
   except that the Offering Period shall commence on the first Trading Day on or
   after July 1, 2002, and end on the last Trading Day occurring in the period
   ending December 31, 2002. The duration of Offering Periods may be changed
   pursuant to Section 4 of this Plan.

       (l) "Officer" shall mean a person who is an officer of the Company within
   the meaning of Section 16 of the Exchange Act and the rules and regulations
   promulgated thereunder.

       (m) "Plan" shall mean this 2002 Employee Stock Purchase Plan.

       (n) "Purchase Price" shall mean an amount equal to 85 percent of the Fair
   Market Value of a share of Common Stock on the Enrollment Date or on the
   Exercise Date, whichever is lower.

       (o) "Reserves" shall mean the number of shares of Common Stock covered by
   each option under the Plan which have not yet been exercised and the number
   of shares of Common Stock which have been authorized for issuance under the
   Plan but not yet placed under option.

       (p) "Subsidiary" shall mean a corporation, domestic or foreign, of which
   not less than 50 percent of the voting shares are held by the Company or a
   Subsidiary, whether or not such corporation now exists or is hereafter
   organized or acquired by the Company or a Subsidiary.

       (q) "Trading Day" shall mean a day on which United States national stock
   exchanges and the National Association of Securities Dealers Automated
   Quotation (NASDAQ) System are open for trading.

   3. Eligibility.

       (a) Any person who is an Employee, as defined in Section 2(g), who has
   been continuously employed by the Company or a Designated Subsidiary for at
   least 90 days (taking into account all of the Employee's periods of
   employment) and who shall be employed by the Company or a Designated
   Subsidiary on a given Enrollment Date shall be eligible to participate in the
   Plan.

       (b) Any provisions of the Plan to the contrary notwithstanding, no
   Employee shall be granted an option under the Plan (i) if, immediately after
   the grant, such Employee (or any other person whose stock would be attributed
   to such Employee pursuant to Section 424(d) of the Code) would own stock
   and/or hold outstanding options to purchase stock possessing five percent or
   more of the total combined voting power or value of all classes of stock of
   the Company or of any subsidiary of the Company, or (ii) which permits his or
   her rights to purchase stock under all employee stock purchase plans of the
   Company and its subsidiaries to accrue at a rate which exceeds 25,000 dollars
   worth of stock (determined at the fair market value of the shares at the time
   such option is granted) for each calendar year in which such option is
   outstanding at any time.

       (c) All Employees who participate in the Plan shall have the same rights
   and privileges under the Plan, except for differences that may be mandated by
   local law and that are consistent with Code section 423 (b) (5); provided,
   however, that Employees participating in a sub-plan adopted pursuant to
   Section 13(c) that is not designated to qualify under Section 423 of the Code
   need not have the same rights and privileges as Employees participating in
   the Code Section 423 Plan. In addition, the Board may impose restrictions on
   eligibility and participation of Employees who are officers and directors to
   facilitate compliance with federal or State securities laws or foreign laws.

                                       2
<PAGE>
   4. Offering Periods. The Plan shall be implemented by consecutive Offering
Periods until the Plan is terminated in accordance with Section 19 hereof.
Subject to the requirements of Section 19, the Board shall have the power to
change the duration of Offering Periods with respect to future offerings without
stockholder approval if such change is announced at least 15 days prior to the
scheduled beginning of the first Offering Period to be affected.

   5. Participation.

      (a) An eligible Employee may become a participant in the Plan by
   completing a subscription agreement authorizing payroll deductions in the
   form provided by the Company and filing it with the Company's payroll office
   at least 10 business days prior to the applicable Enrollment Date, unless a
   later time for filing the subscription agreement is set by the Board for all
   eligible Employees with respect to a given Offering Period.

      (b) Payroll deductions for a participant shall commence on the first
   payroll following the Enrollment Date and shall end on the last payroll in
   the Offering Period to which such authorization is applicable, unless sooner
   terminated by the participant as provided in Section 10.

   6. Payroll Deductions.

      (a) At the time a participant files his or her subscription agreement, he
   or she shall elect to have payroll deductions made on each pay day during the
   Offering Period in an amount not exceeding 10 percent of the Compensation
   which he or she receives on each pay day during the Offering Period, and the
   aggregate of such payroll deductions during the Offering Period shall not
   exceed 10 percent of the participant's Compensation during said Offering
   Period.

      (b) All payroll deductions made for a participant shall be credited to his
   or her account under the Plan and will be with held in whole percentages
   only. A participant may not make any additional payments into such account.

      (c) A participant may discontinue his or her participation in the Plan as
   provided in Section 10 hereof, or may increase or decrease the rate of his or
   her payroll deductions during the Offering Period by completing or filing
   with the Company a new subscription agreement authorizing a change in payroll
   reduction rate; provided, however, that a participant may not change his or
   her rate of payroll deductions more than once in a given Offering Period. The
   change in rate shall be effective with the first full payroll period
   following five business days after the Company's receipt of the new
   subscription. agreement unless the Company elects to process a given change
   in participation more quickly. A participant's subscription agreement shall
   remain in effect for successive Offering Periods unless terminated as
   provided in Section 10.

      (d) Notwithstanding the foregoing, to the extent necessary to comply with
   Section 423(b) (8) of the Code and Section 3 (b) herein, a participant's
   payroll deductions may be decreased to zero percent at such time during any
   Offering Period which is scheduled to end during the current calendar year
   (the "Current Offering Period") that the aggregate of all payroll deductions
   which were previously used to purchase stock under the Plan in a prior
   Offering Period which ended during that calendar year plus all payroll
   deductions accumulated with respect to the Current Offering Period equal
   $25,000. Payroll deductions shall recommence at the rate provided in such
   participant's subscription agreement at the beginning of the first Offering
   Period which is scheduled to end in the following calendar year, unless
   terminated by the participant as provided in Section 10.

      (e) At the time the option is exercised, in whole or in part, or at the
   time some or all of the Company's Common Stock issued under the Plan is
   disposed of, the participant must make adequate provision for the Company's
   federal, state, foreign or other tax or social insurance withholding
   obligations, if any, which arise upon the exercise of the option or the
   disposition of the Common Stock. At any time, the Company may, but will not
   be obligated to, withhold from the participant's compensation the amount
   necessary for the Company to meet applicable withholding obligations,
   including any withholding required to make available to the Company any tax
   deductions or benefit attributable to sale or early disposition of Common
   Stock by the Employee.

                                       3
<PAGE>
    7. Grant of Option.

      (a) On the Enrollment Date of each Offering Period, each eligible Employee
   participating in such Offering Period shall be granted an option to purchase
   on each Exercise Date during such Offering Period (at the applicable Purchase
   Price) up to a number of shares of the Company's Common Stock determined by
   dividing such Employee's payroll deductions accumulated prior to such
   Exercise Date and retained in the Participant's account as of the Exercise
   Date by the applicable Purchase Price; provided that in no event shall an
   Employee be permitted to purchase during each Offering Period more than a
   number of shares determined by dividing $12,500 by the fair market value of a
   share of the Company's Common Stock on the Enrollment Date, and provided
   further that such purchase shall be subject to the limitations set forth in
   Section 3(b) and 12 hereof. Exercise of the option shall occur as provided in
   Section 8, unless the participant has withdrawn pursuant to Section 10, and
   shall expire on the last day of the Offering Period.

      (b) Options may be granted under the Plan from time to time in
   substitution for stock options held by employees of another corporation who
   become, or who became prior to the effective date of the Plan, Employees of
   the Company or a Designated Subsidiary as a result of a merger or
   consolidation of such other corporation with the Company, or the acquisition
   by the Company or a Designated Subsidiary of all or a portion of the assets
   of such other corporation, or the acquisition by the Company or a Designated
   Subsidiary of stock of such other corporation with the result that such other
   corporation becomes a Designated Subsidiary.

   8. Exercise of Option. Unless a participant withdraws from the Plan as
provided in Section 10 below, his or her option for the purchase of shares will
be exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares will be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Offering Period, subject to earlier withdrawal by the participant as provided in
Section 10. Any other monies left over in a participant's account after the
Exercise Date shall be returned to the participant. During a participant's
lifetime, a participant's option to purchase shares hereunder is exercisable
only by him or her.

   9. Delivery. As promptly as practicable after each Exercise Date on which a
purchase of shares occurs, the Company shall arrange the delivery to each
participant, as appropriate, of a certificate representing the shares purchased
upon exercise of his or her option.

   10. Withdrawal; Termination of Employment.

      (a) A participant may withdraw all but not less than all the payroll
   deductions credited to his or her account and not yet used to exercise his or
   her option under the Plan at any time by giving written notice to the Company
   in the form provided by the Company. All of the participant's payroll
   deductions credited to his or her account will be paid to such participant
   promptly after receipt of notice of withdrawal and such participant's option
   for the Offering Period will be automatically terminated, and no further
   payroll deductions for the purchase of shares will be made during the
   Offering Period. If a participant withdraws from an Offering Period, payroll
   deductions will not resume at the beginning of the succeeding Offering Period
   unless the participant delivers to the Company a new subscription agreement.

      (b) Upon a participant's ceasing to be an Employee for any reason or upon
   termination of a participant's employment relationship (as described in
   Section 2(g)), the payroll deductions credited to such participant's account
   during the Offering Period but not yet used to exercise the option will be
   returned to such participant or, in the case of his or her death, to the
   person or persons entitled thereto under Section 14, and such participant's
   option will be automatically terminated.

      (c) In the event an Employee fails to remain an Employee of the Company
   for at least 20 hours per week during an Offering Period in which the
   Employee is a participant, he or she will be deemed to have elected to
   withdraw from the Plan and the payroll deductions credited to his or her
   account will be returned to such participant and such participant's option
   terminated.

                                       4
<PAGE>
      (d) A participant's withdrawal from an Offering Period will not have any
   effect upon his or her eligibility to participate in any similar plan which
   may hereafter be adopted by the Company or in succeeding Offering Periods
   which commence after the termination of the Offering Period from which the
   participant withdraws.

   11. Interest. No interest shall accrue on the payroll deductions of a
participant in the Plan.

   12. Stock.

      (a) The maximum number of shares of the Company's Common Stock which shall
   be made available for sale under the Plan shall be 2,000,000 shares, subject
   to adjustment upon changes in capitalization of the Company as provided in
   Section 18. If on a given Exercise Date the number of shares with respect to
   which options are to be exercised exceeds the number of shares then available
   under the Plan, the Company shall make a pro rata allocation of the shares
   remaining available for purchase in as uniform a manner as shall be
   practicable and as it shall determine to be equitable.

      (b) The participant will have no interest or voting right in shares
   covered by his option until such option has been exercised.

      (c) Shares to be delivered to a participant under the Plan will be
   registered in the name of the participant or in the name of the participant
   and his or her spouse.

   13. Administration.

      (a) The Plan shall be administered by the Board of the Company or a
   committee of members of the Board appointed by the Board. The Board or its
   committee shall have full and exclusive discretionary authority to construe,
   interpret and apply the terms of the Plan, to determine eligibility and to
   adjudicate all disputed claims filed under the Plan. Every finding, decision
   and determination made by the Board or its committee shall, to the full
   extent permitted by law, be final and binding upon all parties. Members of
   the Board who are eligible Employees are permitted to participate in the
   Plan, provided that:

         (1) Members of the Board who are eligible to participate in the Plan
      may not vote on any matter affecting the administration of the Plan or the
      grant of any option pursuant to the Plan.

         (2) If a Committee is established to administer the Plan, no member of
      the Board who is eligible to participate in the Plan may be a member of
      the Committee.

      (b) Notwithstanding the provisions of Subsection (a) of this Section 13,
   in the event that Rule 16b-3 promulgated under the Securities Exchange Act of
   1934, as amended (the "Exchange Act"), or any successor provision ("Rule
   16b-3") provides specific requirements for the administrators of plans of
   this type, the Plan shall be only administered by such a body and in such a
   manner as shall comply with the applicable requirements of Rule 16b-3.

      (c) The Board may adopt rules and procedures relating to the operation and
   administration of the Plan to accommodate the specific requirements of local
   laws and procedures. Without limiting the generality of the foregoing, the
   Board is specifically authorized to adopt rules and procedures regarding
   handling of payroll deductions, payment of interest, conversion of local
   currency, payroll tax, withholding procedures and handling of stock
   certificates which may vary with local requirements. The Board may also adopt
   sub-plans applicable to particular Subsidiaries, which sub-plans may be
   designed to be outside the scope of Section 423 of the Code. The rules of
   such sub-plans may take precedence over other provisions of this Plan, with
   the exception of Section 12(a), but unless otherwise superseded by the terms
   of such sub-plan, the provisions of this Plan shall govern the operation of
   such sub-plan.

                                       5
<PAGE>
   14. Designation of Beneficiary.

      (a) A participant may file a written designation of a beneficiary who is
   to receive any shares and cash, if any, from the participant's account under
   the Plan in the event of such participant's death subsequent to an Exercise
   Date on which the option is exercised but prior to delivery to such
   participant of such shares and cash. In addition, a participant may file a
   written designation of a beneficiary who is to receive any cash from the
   participant's account under the Plan in the event of such participant's death
   prior to exercise of the option. If a participant is married and the
   designated beneficiary is not the spouse, spousal consent shall be required
   for such designation to be effective.

      (b) Such designation of beneficiary may be changed by the participant at
   any time by written notice. In the event of the death of a participant and in
   the absence of a beneficiary validly designated under the Plan who is living
   at the time of such participant's death, the Company shall deliver such
   shares and/or cash to the executor or administrator of the estate of the
   participant, or if no such executor or administrator has been appointed (to
   the knowledge of the Company), the Company, in its discretion, may deliver
   such shares and/or cash to the spouse or to any one or more dependents or
   relatives of the participant, or if no spouse, dependent or relative is known
   to the Company, then to such other person as the Company may designate.

    15. Transferability. Neither payroll deductions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
shares under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and distribution
or as provided in Section 14 hereof) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect,
except that the Company may treat such act as an election to withdraw funds from
an Offering Period in accordance with Section 10.

   16. Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

    17. Reports. Individual accounts will be maintained for each participant in
the Plan. Statements of account will be given to participating Employees at
least annually, which statements will set forth the amounts of payroll
deductions, the Purchase Price, the number of shares purchased and the remaining
cash balance, if any.

   18. Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset
Sale or Change of Control.

      (a) Changes in Capitalization. Subject to any required action by the
   stockholders of the Company, the Reserves as well as the price per share of
   Common Stock covered by each option under the Plan which has not yet been
   exercised, shall be proportionately adjusted for any increase or decrease in
   the number of issued shares of Common Stock resulting from a stock split,
   reverse stock split, stock dividend, combination or reclassification of the
   Common Stock, or any other increase or decrease in the number of shares of
   Common Stock effected without receipt of consideration by the Company;
   provided, however, that conversion of any convertible securities of the
   Company shall not be deemed to have been "effected without receipt of
   consideration". Such adjustment shall be made by the Board, whose
   determination in that respect shall be final, binding and conclusive. Except
   as expressly provided herein, no issue by the Company of shares of stock of
   any class, or securities convertible into shares of stock of any class, shall
   affect, and no adjustment by reason thereof shall be made with respect to,
   the number or price of shares of Common Stock subject to an option.

      (b) Dissolution or Liquidation. In the event of the proposed dissolution
   or liquidation of the Company, the Offering Period will terminate immediately
   prior to the consummation of such proposed action, unless otherwise provided
   by the Board.

      (c) Merger or Asset Sale. In the event of a proposed sale of all or
   substantially all of the assets of the Company, or the merger of the Company
   with or into another corporation, each option under the Plan shall be assumed
   or an equivalent option shall be substituted by such successor corporation or
   a parent or subsidiary of such successor corporation, unless the Board deter
   mines, in the exercise of its sole discretion and in lieu of such assumption
   or substitution, to shorten the Offering Period then in progress by setting a
   new Exercise Date (the "New Exercise Date") or to cancel each outstanding
   right to purchase and refund all sums collected from

                                       6
<PAGE>
   participants during the Offering Period then in progress. If the Board
   shortens the Offering Period then in progress in lieu of assumption or
   substitution in the event of a merger or sale of assets, the Board shall
   notify each participant in writing, at least 10 business days prior to the
   New Exercise Date, that the Exercise Date for his option has been changed to
   the New Exercise Date and that his option will be exercised automatically on
   the New Exercise Date, unless prior to such date he has withdrawn from the
   Offering Period as provided in Section 10. For purposes of this Section, an
   option granted under the Plan shall be deemed to be assumed if, following the
   sale of assets or merger, the option confers the right to purchase, for each
   share of option stock subject to the option immediately prior to the sale of
   assets or merger, the consideration (whether stock, cash or other securities
   or property) received in the sale of assets or merger by holders of Common
   Stock for each share of Common Stock held on the effective date of the
   transaction (and if such holders were offered a choice of consideration, the
   type of consideration chosen by the holders of a majority of the outstanding
   shares of Common Stock); provided, however, that if such consideration
   received in the sale of assets or merger was not solely common stock of the
   successor corporation or its parent (as defined in Section 424(e) of the
   Code), the Board may, with the consent of the successor corporation and the
   participant, provide for the consideration to be received upon exercise of
   the option to be solely common stock of the successor corporation or its
   parent equal in fair market value to the per share consideration received by
   holders of Common Stock and the sale of assets or merger.

      The Board may, if it so determines in the exercise of its sole discretion,
   also make provision for adjusting the Reserves, as well as the price per
   share of Common Stock covered by each outstanding option, in the event the
   Company effects one or more reorganizations, recapitalization, rights
   offerings or other increases or reductions of shares of its outstanding
   Common Stock, and in the event of the Company being consolidated with or
   merged into any other corporation.

   19. Amendment or Termination.

      (a) The Board of Directors of the Company may at any time and for any
   reason terminate or amend the Plan. Except as provided in Section 18, no such
   termination can affect options previously granted, provided that an Offering
   Period may be terminated by the Board of Directors on any Exercise Date if
   the Board determines that the termination of the Plan is in the best
   interests of the Company and its stockholders. Except as provided in Section
   18, no amendment may make any change in any option theretofore granted which
   adversely affects the rights of any participant. To the extent necessary to
   comply with Rule 16b-3 under the Securities Exchange Act of 1934, as amended,
   or under Section 423 of the Code (or any successor rule or provision or any
   other applicable law or regulation), the Company shall obtain stockholder
   approval in such a manner and to such a degree as required.

      (b) Without stockholder consent and without regard to whether any
   participant rights may be considered to have been "adversely affected," the
   Board (or its committee) shall be entitled to change the Offering Periods,
   limit the frequency and/or number of changes in the amount withheld during an
   Offering Period, establish the exchange ratio applicable to amounts withheld
   in a currency other than U.S. dollars, permit payroll withholding in excess
   of the amount designated by a participant in order to adjust for delays or
   mistakes in the Company's processing of properly completed withholding
   elections, establish reasonable waiting and adjustment periods and/or
   accounting and crediting procedures to ensure that amounts applied toward the
   purchase of Common Stock for each participant properly correspond with
   amounts withheld from the participant's Compensation, and establish such
   other limitations or procedures as the Board (or its committee) determines in
   its sole discretion advisable which are consistent with the Plan.

   20. Notices. All notices or other communications by a participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

   21. Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the

                                       7
<PAGE>
requirements of any stock exchange upon which the shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance.

   As a condition to the exercise of an option, the Company may require the
person exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

   22. Term of Plan. The Plan shall become effective upon the approval by the
stockholders of the Company. It shall continue in effect until October 17, 2011,
unless sooner terminated under Section 19.

   23. Additional Restrictions of Rule 16b-3. The terms and conditions of
options granted hereunder to, and the purchase of shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of
Rule 16b-3. This Plan shall be deemed to contain, and such options shall
contain, and the shares issued upon exercise thereof shall be subject to, such
additional conditions and restrictions as may be required by Rule 16b-3 to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

                                       8

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