Document:

AMENDED AND RESTATED
                               OBJECT DESIGN, INC.
                        1996 EMPLOYEE STOCK PURCHASE PLAN

1.       PURPOSE.

         The Object Design,  Inc. 1996 Employee Stock Purchase Plan (the "Plan")
         is intended to provide a method  whereby  employees  of Object  Design,
         Inc. (the  "Company")  will have an opportunity to acquire an ownership
         interest  (or increase an existing  ownership  interest) in the Company
         through the purchase of shares of the Common  Stock of the Company.  It
         is the  intention  of the Company that the Plan qualify as an "employee
         stock purchase plan" under Section 423 of the Internal  Revenue Code of
         1986,  as amended  (the  "Code").  The  provisions  of the Plan  shall,
         accordingly,  be construed so as to extend and limit participation in a
         manner consistent with the requirements of that section of the Code.

2.       DEFINITIONS.

         (a)"Board" means the Board of Directors of the Company.

         (b) "Code" shall have the meaning set forth in Paragraph 1.

         (c) "Committee" means the Compensation Committee of the Board.

         (d) "Common  Stock" means the common stock,  par value $.001 per share,
         of the Company.

         (e)  "Company"  shall  also  include  any  Subsidiary  (as  hereinafter
         defined) of Object Design, Inc. designated as a participant in the Plan
         by the Board, unless the context otherwise requires.

         (f)  "Compensation"  means, for the purpose of any Offering pursuant to
         this Plan, base pay in effect as of the Offering  Commencement Date (as
         hereinafter  defined).  Compensation  shall not  include  any  deferred
         compensation other than contributions by an individual through a salary
         reduction  agreement  to a cash or  deferred  plan  pursuant to Section
         401(k) of the Code or to a  cafeteria  plan  pursuant to Section 125 of
         the Code.

         (g)  "Employee"  means any person who is  customarily  employed  by the
         Company  for more than 20 hours  per week and more than five  months in
         any calendar year.

         (h) "Offering" shall have the meaning set forth in Paragraph 4.

         (i)  "Offering  Commencement  Date" shall have the meaning set forth in
         Paragraph 4.

         (j)  "Offering  Termination  Date"  shall have the meaning set forth in
         Paragraph 4.

         (k) "Plan" shall have the meaning set forth in Paragraph 1.

         (l) "Subsidiary"  shall mean any present or future corporation which is
         or would constitute a "subsidiary  corporation" as that term is defined
         in Section 425 of the Code.

3.       ELIGIBILITY

         (a) Participation in the Plan is completely voluntary. Participation in
         any one or more of the Offerings  under the Plan shall  neither  limit,
         nor  require,  participation  in any  other  Offering  (as  hereinafter
         defined).

         (b) Each  employee  of the  Company  whose  service  with  the  Company
         commences on or after November 1, 1996 shall be eligible to participate
         in the Plan on the first  Offering  Commencement  Date, as  hereinafter
         defined,  following the completion of six months of continuous  service
         with the Company.  Each  employee of the Company whose service with the

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         Company  commenced  prior to  November  1, 1996  shall be  eligible  to
         participate  in  the  Plan  on the  first  Offering  Commencement  Date
         following the commencement of service with the Company. Notwithstanding
         the foregoing, no employee shall be granted an option under the Plan:

         (i) if,  immediately  after the grant,  such employee  would own stock,
         and/or hold  outstanding  options to purchase  stock,  possessing 5% or
         more of the total  combined  voting  power or value of all  classes  of
         stock of the Company or any Subsidiary; for purposes of this Paragraph,
         the rules of Section 424(d) of the Code shall apply in determining  the
         stock ownership of any employee; or

         (ii) which  permits his rights to purchase  stock under all Section 423
         employee stock purchase  plans of the Company and its  Subsidiaries  to
         exceed $25,000 of the fair market value of the stock (determined at the
         time such  option is  granted)  for each  calendar  year in which  such
         option is  outstanding;  for purposes of this  Paragraph,  the rules of
         Section 423(b)(8) of the Code shall apply.

4.       OFFERING DATES.

         The right to purchase  stock  hereunder  shall be made  available  by a
         series of  six-month  offerings  (the  "Offering"  or  "Offerings")  to
         employees eligible in accordance with Paragraph 3 hereof. The Committee
         will, in its discretion,  determine the applicable date of commencement
         ("Offering   Commencement   Date")  and  termination   date  ("Offering
         Termination Date") for each Offering.  Participation in any one or more
         of the  Offerings  under the Plan shall  neither  limit,  nor  require,
         participation in any other Offering.

5.       PARTICIPATION.

         Any eligible  employee may become a participant by completing a payroll
         deduction authorization form provided by the Company and filing it with
         the  Company's  Treasurer  20 days  prior to each  applicable  Offering
         Commencement Date, as determined by the Committee pursuant to Paragraph
         4.

6.       PAYROLL DEDUCTIONS

         (a) At the time a  participant  files an  authorization  for a  payroll
         deduction, the participant shall elect to have deductions made from his
         or her pay on each payday  during any  Offering in which he or she is a
         participant,  at a specified  percentage of his or her  Compensation as
         determined  on  the  applicable   Offering   Commencement   Date;  said
         percentage  shall  be in  increments  of one  percent  up to a  maximum
         percentage of six percent.

         (b) Payroll deductions for a participant shall commence on the Offering
         Commencement  Date  when the  applicable  authorization  for a  payroll
         deduction becomes  effective and shall end on the Offering  Termination
         Date of the Offering to which such authorization is applicable,  unless
         sooner terminated by the participant as provided in Paragraph 9.

         (c) All payroll  deductions made for a participant shall be credited to
         his or her  account  under the  Plan.  A  participant  may not make any
         separate cash payment into such account.

         (d) A  participant  may  withdraw  from the Plan at any time during the
         applicable Offering period.

7.       GRANTING OF OPTION.

         (a) On the Offering Commencement Date of each Offering, a participating
         employee  shall be deemed to have been  granted an option to purchase a
         maximum  number  of  shares  of the  Common  Stock  equal to an  amount
         determined  as  follows:  (i) 85% of the market  value per share of the
         Common  Stock on the  applicable  Offering  Commencement  Date shall be
         divided  into an amount equal to the sum of (x) the  percentage  of the
         employee's  Compensation  which he or she has elected to have  withheld
         (multiplied by the employee's  Compensation  over the Offering  period)
         plus  (y)  any  amounts  in the  employee's  account  on  the  Offering
         Commencement  Date that have been carried forward from prior Offerings;
         multiplied by (ii) two. Such market value per share of the Common Stock
         shall be determined as provided in clause (i) of Paragraph 7(b).
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         (b) The  option  price  of the  Common  Stock  purchased  with  payroll
         deductions  made during each such  Offering for a  participant  therein
         shall be the lower of:

                  (i) 85% of the  average  of the bid and the  asked  prices  as
                  reported  by Nasdaq  in the Wall  Street  Journal,  or, if the
                  Common Stock is  designated as a national  market  security by
                  the National Association of Securities Dealers, Inc. ("NASD"),
                  the last trading  price of the Common Stock as reported by the
                  Nasdaq National Market System in the Wall Street Journal,  or,
                  if the  Common  Stock is listed on an  exchange,  the  closing
                  price of the  Common  Stock on the  exchange  on the  Offering
                  Commencement  Date applicable to such Offering (or on the next
                  regular  business  date on which  shares of the  Common  Stock
                  shall be  traded,  in the event  that no shares of the  Common
                  Stock have been traded on the Offering  Commencement Date); or
                  if the Common Stock is not quoted on Nasdaq, not designated as
                  a  Nasdaq  national  market  security  and  not  listed  on an
                  exchange,  85% of  the  fair  market  value  on  the  Offering
                  Commencement Date as determined by the Committee; and

                  (ii) 85% of the  average  of the bid and the  asked  prices as
                  reported  by Nasdaq  in the Wall  Street  Journal,  or, if the
                  Common Stock is  designated as a national  market  security by
                  the  NASD,  the  last  trading  price of the  Common  Stock as
                  reported  by the  Nasdaq  National  Market  System in the Wall
                  Street  Journal,  or,  if the  Common  Stock is  listed  on an
                  exchange,  the  closing  price  of  the  Common  Stock  on the
                  exchange on the Offering  Termination  Date applicable to such
                  Offering (or on the next regular business date on which shares
                  of the  Common  Stock  shall be  traded,  in the event that no
                  shares of the  Common  Stock  shall  have  been  traded on the
                  Offering  Termination  Date);  or if the  Common  Stock is not
                  quoted on Nasdaq,  not designated as a Nasdaq  national market
                  security and not listed on an exchange, 85% of the fair market
                  value on the Offering  Termination  Date as  determined by the
                  Committee.

8.       EXERCISE OF OPTION.

         (a) Unless a participant  gives written  notice to the Treasurer of the
         Company as hereinafter provided,  his or her option for the purchase of
         Common Stock with payroll  deductions  made during any Offering will be
         deemed to have been exercised automatically on the Offering Termination
         Date applicable to such Offering for the purchase of the number of full
         shares of Common Stock which the accumulated  payroll deductions in his
         or her  account  at that time (plus any  amounts in his or her  account
         that have been carried  forward from prior  Offerings) will purchase at
         the applicable  option price (but not in excess of the number of shares
         for which  options  have been  granted  to the  employee,  pursuant  to
         Paragraph  7(a)),  and any  excess in his  account at that time will be
         automatically   carried   forward  to  the  next  Offering  unless  the
         participant  elects, by written notice to the Treasurer of the Company,
         to have the excess returned to the participant.

         (b)  Fractional  shares  will  not be  issued  under  the  Plan and any
         accumulated  payroll  deductions which would have been used to purchase
         fractional  shares shall be  automatically  carried forward to the next
         Offering  unless  the  participant  elects,  by  written  notice to the
         Treasurer  of the  Company,  to have the excess  cash  returned  to the
         participant.

9.       WITHDRAWAL AND TERMINATION

         (a)  Prior  to the  Offering  Termination  Date  for an  Offering,  any
         participant may withdraw the payroll deductions  credited to his or her
         account  under the Plan for such Offering by giving  written  notice to
         the  Treasurer  of  the  Company.  All  of  the  participant's  payroll
         deductions  credited to such  account  will be paid to the  participant
         promptly after receipt of notice of withdrawal,  without interest,  and
         no future  payroll  deductions  will be made from his or her pay during
         such  Offering.  The  Company  will  treat any  attempt  to borrow by a
         participant  on the security of  accumulated  payroll  deductions as an
         election to withdraw such deductions.

         (b) A participant's election not to participate in, or withdrawal from,
         any Offering  will not have any effect upon his or her  eligibility  to
         participate in any succeeding Offering or in any similar plan which may
         hereafter be adopted by the Company.

<PAGE>

         (c) Upon  termination of the  participant's  employment for any reason,
         including  retirement  but  excluding  death,  the  payroll  deductions
         credited to his or her account will be returned to the participant, or,
         in the case of his or her  death,  to the  person or  persons  entitled
         thereto under Paragraph 13.

         (d) Upon termination of the participant's  employment because of death,
         his or her  beneficiary  (as  defined in  Paragraph  13) shall have the
         right to elect,  by written  notice  given to the  Company's  Treasurer
         prior to the expiration of a period of 90 days commencing with the date
         of the death of the participant, either:

                  (i) to withdraw all of the payroll deductions  credited to the
                  participant's account under the Plan; or

                  (ii) to exercise the participant's  option for the purchase of
                  stock on the Offering Termination Date next following the date
                  of the  participant's  death for the purchase of the number of
                  full shares which the  accumulated  payroll  deductions in the
                  participant's  account at the date of the participant's  death
                  will purchase at the applicable  option price,  and any excess
                  in such account will be returned to said  beneficiary.  In the
                  event that no such  written  notice of election  shall be duly
                  received  by  the  office  of  the  Company's  Treasurer,  the
                  beneficiary  shall  automatically be deemed to have elected to
                  withdraw the payroll deductions  credited to the participant's
                  account  at the date of the  participant's  death and the same
                  will be paid promptly to said beneficiary.

10.      INTEREST.

         No interest  will be paid or allowed on any money paid into the Plan or
         credited to the account of any participating employee.

11.      STOCK.

         (a) The maximum number of shares of Common Stock available for issuance
         and purchase by employees  under the Plan,  subject to adjustment  upon
         changes in  capitalization  of the Company as provided in Paragraph 16,
         shall be 700,000 shares of Common Stock,  $.001 par value per share, of
         the  Company.  If the  total  number of shares  for which  options  are
         exercised on any Offering Termination Date in accordance with Paragraph
         8 exceeds the number of shares that remain  available  for issuance and
         purchase by employees under the Plan, the Company shall make a pro rata
         allocation of the shares  available for delivery and distribution in an
         equitable manner,  with the balances of payroll deductions  credited to
         the  account  of each  participant  under  the  Plan  returned  to each
         participant.

         (b) The  participant  will have no interest in the stock covered by his
         or her option until such option has been exercised.

12.      ADMINISTRATION.

         The Plan shall be administered by the Committee. The interpretation and
         construction  of any  provision  of the Plan and  adoption of rules and
         regulations for  administering the Plan shall be made by the Committee.
         Determinations  made by the  Committee  with  respect  to any matter or
         provision contained in the Plan shall be final,  conclusive and binding
         upon  the  Company  and  upon all  participants,  their  heirs or legal
         representatives.  Any rule or regulation adopted by the Committee shall
         remain in full force and effect unless and until altered,  amended,  or
         repealed by the Committee.

13.      DESIGNATION OF BENEFICIARY.

         A  participant  shall file with the  Treasurer of the Company a written
         designation of a beneficiary  who is to receive any Common Stock and/or
         cash under the Plan. Such  designation of beneficiary may be changed by
         the  participant  at any time by  written  notice.  Upon the death of a
         participant  and upon  receipt by the Company of proof of the  identity
         and existence of a beneficiary  validly  designated by the  participant
         under the Plan, the Company shall deliver such Common Stock and/or cash
         to such beneficiary.  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 Common Stock and/or cash to the executor or  administrator
         of the estate of the participant.  No beneficiary  shall,  prior to the
         death of the participant by whom he or she has been designated, acquire
         any  interest  in  the  Common  Stock  and/or  cash   credited  to  the
         participant under the Plan.

<PAGE>

14.      TRANSFERABILITY.

         Neither payroll deductions credited to a participant's  account nor any
         rights  with regard to the  exercise of an option or to receive  Common
         Stock  under  the  Plan  may  be  assigned,  transferred,  pledged,  or
         otherwise  disposed of in any way by the participant other than by will
         or the laws of descent and distribution. Any such attempted assignment,
         transfer,  pledge, or other disposition shall be without effect, except
         that the Company may treat such act as an election to withdraw funds in
         accordance with Paragraph 8(b).

15.      USE OF FUNDS.

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

16.      EFFECT OF CHANGES OF COMMON STOCK

         If the Company shall subdivide or reclassify the Common Stock which has
         been or may be optioned  under this Plan, or shall declare  thereon any
         dividend  payable  in shares of such  Common  Stock,  or shall take any
         other action of a similar nature affecting such Common Stock,  then the
         number  and class of shares of Common  Stock  which may  thereafter  be
         optioned (in the  aggregate and to any  participant)  shall be adjusted
         accordingly  and in the case of each option  outstanding at the time of
         any such action, the number and class of shares which may thereafter be
         purchased  pursuant to such option and the option price per share shall
         be  adjusted  to such  extent as may be  determined  by the  Committee,
         following   consultation   with  the   Company's   independent   public
         accountants and counsel,  to be necessary to preserve the rights of the
         holder of such option.

17.      AMENDMENT OR TERMINATION.

         The  Board  may at any  time  terminate  or  amend  the  Plan.  No such
         termination  shall  affect  options  previously  granted,  nor  may  an
         amendment make any change in any option theretofore granted which would
         adversely  affect the rights of any  participant  holding options under
         the Plan.

18.      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 by the Treasurer of the Company.

19.      MERGER OR CONSOLIDATION.

         If the Company shall at any time merge into or consolidate with another
         corporation, the holder of each option then outstanding will thereafter
         be entitled to receive at the next Offering  Termination Date, upon the
         exercise  of such  option and for each  share as to which  such  option
         shall be exercised,  the  securities or property  which a holder of one
         share of the Common  Stock was entitled to upon and at the time of such
         merger  or  consolidation.   In  accordance  with  this  Paragraph  and
         Paragraph 16, the Committee shall determine the kind and amount of such
         securities or property which such holder of an option shall be entitled
         to  receive.  A sale of all or  substantially  all of the assets of the
         Company  shall be deemed a merger or  consolidation  for the  foregoing
         purposes.

20.      APPROVAL OF STOCKHOLDERS.

         The Plan is subject to the approval of the  stockholders of the Company
         by written  consent or at their next  annual  meeting or at any special
         meeting of the  stockholders  for which one of the  purposes  of such a
         special meeting shall be to act upon the Plan.

<PAGE>

21.      GOVERNMENTAL AND OTHER REGULATIONS.

         The Plan,  and the grant and exercise of the rights to purchase  shares
         hereunder, and the Company's obligation to sell and deliver shares upon
         the  exercise  of rights to  purchase  shares,  shall be subject to all
         applicable federal, state and foreign laws, rules and regulations,  and
         to such approvals by any regulatory or  governmental  agency as may, in
         the opinion of counsel for the Company, be required.  The Plan shall be
         governed  by, and  construed  and  enforced  in  accordance  with,  the
         provisions of Sections 421, 423 and 424 of the Code and the substantive
         laws  of  The  Commonwealth  of  Massachusetts.  In  the  event  of any
         inconsistency  between such  provisions  of the Code and any such laws,
         said  provisions  of the Code shall  govern to the extent  necessary to
         preserve the favorable  federal income tax treatment  afforded employee
         stock purchase plans under Section 423 of the Code.AMENDED AND RESTATED
                               EXCELON CORPORATION

                         1996 INCENTIVE AND NONQUALIFIED
                                STOCK OPTION PLAN

SECTION 1.      PURPOSE

      This 1996  Incentive  and  Nonqualified  Stock Option Plan (the "Plan") is
intended as a  performance  incentive  for  officers  and  employees  of eXcelon
Corporation,  a Delaware  corporation (the  "Company"),  or its Subsidiaries (as
hereinafter defined) and for certain other individuals  providing services to or
acting as Directors of the Company or its Subsidiaries, to enable the persons to
whom options are granted (an "Optionee" or "Optionees") to acquire or increase a
proprietary  interest in the Company and its success.  The Company  intends that
this  purpose  will be  effected  by the  granting of  incentive  stock  options
("Incentive  Options") as defined in Section 422 of the Internal Revenue Code of
1986, as amended (the "Code"), and other stock options ("Nonqualified  Options")
under the Plan. The term  "Subsidiaries"  means any  corporations in which stock
possessing  50% or more of the total  combined  voting  power of all  classes of
stock of such corporation or corporations is owned directly or indirectly by the
Company.

SECTION 2.      OPTIONS TO BE GRANTED AND ADMINISTRATION

      2.1.  OPTIONS TO BE GRANTED.  Options granted under the Plan may be either
Incentive  Options or  Nonqualified  Options.  If an option is intended to be an
Incentive  Option,  and if for any reason such  option (or any portion  thereof)
shall  not  qualify  as an  Incentive  Option,  then,  to  the  extent  of  such
nonqualification,  such  option (or  portion  thereof)  shall be  regarded  as a
Nonqualified  Option  appropriately  granted  under the Plan  provided that such
option (or portion thereof) otherwise meets the Plan's requirements  relating to
Nonqualified Options.

      2.2.  ADMINISTRATION.  This Plan shall be administered by the Compensation
Committee  or any other  committee of the Board of Directors of the Company (the
"Board"),  consisting of two or more  "Outside  Directors"  (such  committee may
hereinafter  be referred to as the "Plan  Administrator").  As used herein,  the
term  "Outside  Director"  means any Director who: (i) is not an employee of the
Company or of any "affiliated group" (as such term is defined in Section 1504(a)
of the Code) which includes the Company (an  "Affiliate");  (ii) is not a former
employee of the Company or any Affiliate who is receiving compensation for prior
services (other than benefits under a tax-qualified  retirement plan) during the
Company's or any Affiliate's  taxable year; (iii) has not been an officer of the
Company  or any  Affiliate;  and (iv)  does not  receive  remuneration  from the
Company or any Affiliate,  either directly or indirectly,  in any capacity other
than as a Director.

      Except as specifically  reserved to the Board under the terms of the Plan,
the Plan  Administrator  shall have full and final authority to operate,  manage
and administer the Plan on behalf of the Company.  This authority includes,  but
is  not  limited  to:  (i)  the  power  to  grant   options   conditionally   or
unconditionally;  (ii)  the  power  to  prescribe  the  form  or  forms  of  the
instruments  evidencing  options  granted  under this  Plan;  (iii) the power to
interpret the Plan;  (iv) the power to provide  regulations for the operation of
the incentive  features of the Plan, and otherwise to prescribe  regulations for
interpretation,  management  and  administration  of the Plan;  (v) the power to
delegate to other persons the responsibility for performing  ministerial acts in
furtherance  of the  Plan's  purpose;  (vi)  the  power  to  make,  in its  sole
discretion,  changes to any outstanding option granted under the Plan, including
the power to reduce the exercise price, to accelerate the vesting  schedule,  or
to extend the  expiration  date;  and (vii) the power to engage the  services of
persons or organizations in furtherance of the Plan's purpose, including but not
limited to banks, insurance companies, brokerage firms and consultants.

      In addition, as to each option, the Plan Administrator shall have full and
final authority,  in its sole discretion:  (i) to determine the number of shares
subject to each  option;  (ii) to determine  the time or times at which  options
will be granted;  (iii) to determine  the  conditions  on which  options will be
granted or may be  exercised;  (iv) to determine the option price for the shares
subject  to  each  option,  which  price  shall  be  subject  to the  applicable
requirements, if any, of Section 5.1(c) hereof; and (v) to determine the time or
times when each option shall become exercisable and the duration of the exercise
period, which shall not exceed the limitations specified in Section 5.1(a).

      No member of the committee serving as Plan  Administrator  shall be liable
for any action or  determination  made in good faith with respect to the Plan or
any option granted thereunder.

<PAGE>

      2.3. APPOINTMENT AND PROCEEDINGS OF COMMITTEE. The Board may, from time to
time,  appoint  members  of the  committee  serving  as  Plan  Administrator  in
substitution for, or in addition to, members  previously  appointed and may fill
vacancies, however caused, in such committee;  provided, however, that each such
appointee  will be an  Outside  Director,  as  described  in  Section  2.2.  The
committee  serving as Plan  Administrator  shall hold its meetings at such times
and  places  as it  shall  deem  advisable.  A  majority  of its  members  shall
constitute  a quorum,  and all  actions  of such  committee  shall  require  the
affirmative  vote of a  majority  of its  members.  Any action may be taken by a
written  instrument signed by all of the members,  and any action so taken shall
be as fully  effective  as if it had been taken by a vote of a  majority  of the
members at a meeting duly called and held.

SECTION 3.      STOCK

      3.1.  SHARES  SUBJECT TO PLAN.  The stock  subject to the options  granted
under the Plan shall be shares of the Company's  authorized but unissued  common
stock,  par value $.001 per share ("Common  Stock"),  or shares of the Company's
Common  Stock held in  treasury.  The total  number of shares that may be issued
pursuant  to options  granted  under the Plan shall not exceed an  aggregate  of
4,700,000 shares of Common Stock, PROVIDED, HOWEVER, that (i) prior to the first
anniversary  of the adoption of the Plan,  no more than an aggregate  maximum of
3,200,000  shares may be issued pursuant to options granted under the Plan, (ii)
prior to the second  anniversary  of the  adoption of the Plan,  no more than an
aggregate  maximum of 3,500,000 shares may be issued pursuant to options granted
under the Plan,  (iii)  prior to the third  anniversary  of the  adoption of the
Plan,  no more than an  aggregate  maximum  of  3,800,000  shares  may be issued
pursuant to options granted under the Plan, (iv) prior to the fourth anniversary
of the  adoption of the Plan,  no more than an  aggregate  maximum of  4,100,000
shares may be issued  pursuant to options  granted under the Plan,  (v) prior to
the fifth  anniversary  of the  adoption of the Plan,  no more than an aggregate
maximum of 4,400,000  shares may be issued pursuant to options granted under the
Plan.  After the fifth  anniversary of the adoption of the Plan, no more than an
aggregate  maximum of 4,700,000 shares may be issued pursuant to options granted
under the Plan. Such number of shares shall be subject to adjustment as provided
in Section 7 hereof.

      3.2. LAPSED OR UNEXERCISED OPTIONS.  Whenever any outstanding option under
the Plan  expires,  is  cancelled  or is  otherwise  terminated  (other  than by
exercise),  the shares of Common Stock allocable to the  unexercised  portion of
such option shall be restored to the Plan and shall again become  available  for
the grant of other options under the Plan.

      3.3. LIMITATION ON GRANTS. In no event may any Plan participant be granted
options with  respect to more than 500,000  shares of Common Stock in any fiscal
year.  The  number  of shares of Common  Stock  issuable  pursuant  to an option
granted to a Plan  participant in a fiscal year that is subsequently  forfeited,
cancelled or otherwise  terminated  shall continue to count toward the foregoing
limitation in such fiscal year. In addition,  if the exercise price of an option
is subsequently  reduced,  the transaction shall be deemed a cancellation of the
original option and the grant of a new one so that both transactions shall count
toward  the  maximum  shares  issuable  in the  fiscal  year of each  respective
transaction.

SECTION 4.      ELIGIBILITY

      4.1. ELIGIBLE OPTIONEES. Incentive Options may be granted only to officers
and other employees of the Company or its Subsidiaries, including members of the
Board  who are also  employees  of the  Company  or a  Subsidiary.  Nonqualified
Options  may be granted to  officers  or other  employees  of the Company or its
Subsidiaries,  to  members  of  the  Board  or the  Board  of  Directors  of any
Subsidiary  whether or not employees of the Company or such  Subsidiary,  and to
consultants  and other  individuals  providing  services  to the  Company or its
Subsidiaries.

      4.2. LIMITATIONS ON 10% STOCKHOLDERS. No Incentive Option shall be granted
to an  individual  who,  at the time  the  Incentive  Option  is  granted,  owns
(including  ownership  attributed  pursuant to Section  424(d) of the Code) more
than 10% of the  total  combined  voting  power of all  classes  of stock of the
Company  or any  parent  or  Subsidiary  of  the  Company  (a  "greater-than-10%
stockholder"), unless such Incentive Option provides that (i) the purchase price
per share  shall not be less than 110% of the fair  market  value of the  Common
Stock at the time such Incentive Option is granted, and (ii) that such Incentive
Option shall not be exercisable to any extent after the expiration of five years
from the date on which it is granted.

      4.3.  LIMITATION ON EXERCISABLE  OPTIONS.  The aggregate fair market value
(determined  at the time the  Incentive  Option is granted) of the Common  Stock
with respect to which  Incentive  Options are  exercisable for the first time by
any person  during any  calendar  year under the Plan and under any other option
plan of the Company (or a parent or  subsidiary as defined in Section 424 of the
Code) shall not exceed  $100,000.  Any option granted in excess of the foregoing
limitation shall be specifically designated as being a Nonqualified Option.

<PAGE>

      4.4.  OPTION  GRANTS TO  DIRECTORS.  As  compensation  for services to the
Company,  each Director of the Company who is not an employee of the Company (an
"Outside  Director")  and who is elected  to the Board  shall  automatically  be
granted upon his or her initial election a fully-vested  Nonqualified Option (an
"Initial  Option") to purchase 15,000 shares of Common Stock of the Company.  In
addition,  immediately  following  each annual  meeting of  stockholders  of the
Company or special meeting in lieu thereof, there shall automatically be granted
to each Outside Director  reelected at or remaining in office after such meeting
a  fully-vested  Nonqualified  Option to purchase  5,000 shares of Common Stock.
Each Nonqualified Option granted to an Outside Director pursuant to this Section
4.4 shall  expire on the tenth  anniversary  of the date of grant.  The exercise
price of each Nonqualified  Option granted pursuant to this Section 4.4 shall be
equal to the fair market value of the Common Stock on the date the  Nonqualified
Option is granted,  such fair market value to be determined  in accordance  with
the provisions of Section 5.1(c).

SECTION 5.      TERMS OF THE OPTION AGREEMENTS

      5.1.  MANDATORY TERMS. Each option agreement shall contain such provisions
as the Plan  Administrator  shall  from  time to time deem  appropriate.  Option
agreements  need not be  identical,  but each option  agreement  by  appropriate
language shall include the substance of all of the following provisions:

            (a) EXPIRATION.  Notwithstanding  any other provision of the Plan or
of any option  agreement,  each option shall expire on the date specified in the
option  agreement,  which date shall not be later than the tenth  anniversary of
the date on which the option was granted  (fifth  anniversary  in the case of an
Incentive Option granted to a greater-than-10% stockholder).

            (b)  EXERCISE.  Each  option  shall  be  exercisable  in  full or in
installments  (which need not be equal) and at such times as  designated  by the
Plan Administrator.  To the extent not exercised,  installments shall accumulate
and be exercisable, in whole or in part, at any time after becoming exercisable,
but not later than the date the option expires.

            (c) PURCHASE PRICE. The purchase price per share of the Common Stock
under each Incentive  Option shall be not less than the fair market value of the
Common Stock on the date the option is granted (110% of the fair market value in
the case of a  greater-than-10%  stockholder).  The price at which shares may be
purchased  pursuant  to  Nonqualified  Options  shall be  specified  by the Plan
Administrator at the time the option is granted, and shall be not less than fair
market value of the shares of Common Stock on the date such Nonqualified  Option
is  granted.  For the purpose of the Plan,  the fair market  value of the Common
Stock shall be the closing price per share on the date of grant of the option as
reported by a nationally  recognized stock exchange,  or, if the Common Stock is
not listed on such an  exchange,  as reported  by the  National  Association  of
Securities  Dealers Automated  Quotation  System,  Inc.  ("Nasdaq"),  or, if the
Common Stock is not quoted on Nasdaq, the fair market value as determined by the
Plan Administrator.

            (d)  TRANSFERABILITY OF OPTIONS.  Options granted under the Plan and
the rights and privileges  conferred  thereby may not be transferred,  assigned,
pledged or hypothecated in any manner (whether by operation of law or otherwise)
other than by will or by applicable laws of descent and distribution,  and shall
not be subject to execution,  attachment or similar process. Upon any attempt so
to transfer,  assign,  pledge,  hypothecate  or otherwise  dispose of any option
under the Plan or any  right or  privilege  conferred  hereby,  contrary  to the
provisions  of the Plan,  or upon the sale or levy or any  attachment or similar
process  upon the rights and  privileges  conferred  hereby,  such option  shall
thereupon terminate and become null and void.

            (e)  TERMINATION  OF  EMPLOYMENT OR DISABILITY OR DEATH OF OPTIONEE.
Except as may be otherwise expressly provided in the terms and conditions of the
option granted to an Optionee:

                (i)   Options granted  hereunder shall terminate on the earliest
                      to occur of:

                      (A) the date of expiration thereof;

                      (B) the date of termination  of the Optionee's  employment
with or  performance  of services for the Company by the Optionee for any reason
(other than as a result of retirement,  death or permanent and total  disability
of the Optionee) or by the Company for cause (as hereinafter defined);

                      (C)  thirty  days  after  the date of  termination  of the
Optionee's  employment  with or  performance  of services  for the Company  upon
retirement  or by the Company  without cause (other than as a result of death or
permanent and total disability of the Optionee);

<PAGE>

                      (D) twelve  months  after the date of  termination  of the
Optionee's  employment  with or  performance  of  services  for the Company as a
result of the  death or  permanent  and  total  disability  of an  Optionee.  An
Optionee is  permanently  and totally  disabled if he is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental  impairment which can be expected to last for a continuous  period of not
less than twelve months;  permanent and total  disability shall be determined in
accordance  with  Section  22(e)(3)  of the  Code  and  the  regulations  issued
thereunder.

                (ii) In the event of the termination of an Optionee's employment
with or  performance  of services for the Company by the Company  without  cause
(other  than as a result  of death or  permanent  and  total  disability  of the
Optionee) or upon the  Optionee's  retirement,  the  Optionee's  option shall be
exercisable during the thirty-day post-termination period described in Paragraph
5.1(e)(i)(C)  only to the  extent  that it was  exercisable  at the time of such
termination  of  employment  or  performance  of  services.  In the event of the
termination of the Optionee's employment with or performance of services for the
Company as a result of the  permanent and total  disability of an Optionee,  the
Optionee's option shall be exercisable during the twelve-month  post-termination
period  referred  to in  Paragraph  5.1(e)(i)(D)  only to the extent that it was
exercisable  at the time of such  termination  of employment or  performance  of
services.  In the event of the termination of the Optionee's  employment with or
performance  of  services  for the  Company  as a  result  of the  death  of the
Optionee,  the Optionee's  executor,  administrator  or any person or persons to
whom  his  option  may  be  transferred  by  will  or by  laws  of  descent  and
distribution   shall  have  the  right  at  any  time  during  the  twelve-month
post-termination  period referred to in Paragraph  5.1(e)(i)(D) to exercise such
option, but only to the extent the Optionee was entitled to exercise such option
at the time of such  termination  of  employment  or  performance  of  services.
Notwithstanding  the  foregoing,   should  the  termination  of  the  Optionee's
employment  with or performance of services for the Company as a result of death
or permanent and total disability occur after the first  anniversary of the date
on which  the  Optionee  was  first  employed  or  otherwise  began to serve the
Company,  the option may be  exercised  for up to the  greater of (A) 50% of all
option  shares  (and such  shares  shall be deemed  vested) or (B) the number of
shares that had vested as of the date of such  termination of employment with or
performance of services for the Company.

                (iii) An  employment  relationship  between  the Company and the
Optionee  shall be deemed to exist  during any period in which the  Optionee  is
employed in any capacity by the Company or by any Subsidiary. Whether authorized
leave of absence or absence on military or government  service shall  constitute
termination of the employment  relationship between the Company and the Optionee
shall be determined by the Plan Administrator at the time thereof.  For purposes
of this Section  5.1(e),  the term "cause" shall mean (A) any material breach by
the  Optionee of any  agreement  to which the  Optionee and the Company are both
parties,  (B) any act (other than retirement) or omission to act by the Optionee
which may have a material and adverse effect on the Company's business or on the
Optionee's  ability to perform  services  for the  Company,  including,  without
limitation,  the commission of any crime (other than minor traffic  violations),
or (C) any material  misconduct or material neglect of duties by the Optionee in
connection  with the  business  or affairs of the Company or any  Subsidiary  or
affiliate of the Company.

            (f) RIGHTS OF OPTIONEES. No Optionee shall be deemed for any purpose
to be the owner of any shares of Common Stock  subject to any option  unless and
until (i) the  option  shall have been  exercised  with  respect to such  shares
pursuant  to the terms  thereof,  and (ii) the  Company  shall  have  issued and
delivered a certificate representing such shares.  Thereupon, the Optionee shall
have full  voting,  dividend  and other  ownership  rights with  respect to such
shares of Common Stock.

     5.2. CERTAIN OPTIONAL TERMS. The Plan  Administrator  may in its discretion
provide, upon the grant of any option hereunder,  that the Company shall have an
option to repurchase all or any number of shares purchased upon exercise of such
option.  The  repurchase  price per share  payable by the Company  shall be such
amount or be determined by such formula as is fixed by the Plan Administrator at
the time the option for the shares subject to repurchase  was granted.  The Plan
Administrator  may also  provide  that the  Company  shall have a right of first
refusal  with  respect  to the  transfer  or  proposed  transfer  of any  shares
purchased  upon exercise of an option granted  hereunder.  In the event the Plan
Administrator shall grant options subject to the Company's  repurchase rights or
rights of first refusal, the certificate or certificates representing the shares
purchased  pursuant  to the  exercise  of  such  option  shall  carry  a  legend
satisfactory to counsel for the Company referring to such rights.

SECTION 6.      METHOD OF EXERCISE; PAYMENT OF PURCHASE PRICE

      6.1.  NOTICE  OF  EXERCISE.  Any  option  granted  under  the  Plan may be
exercised  by the  Optionee by  delivering  to the Company on any business day a
written notice specifying the option being exercised and the number of shares of
Common Stock the Optionee then desires to purchase and specifying the address to
which the certificates for such shares are to be mailed,  accompanied by payment
for such shares.

<PAGE>

      6.2. MEANS OF PAYMENT AND DELIVERY.  Common Stock purchased on exercise of
an option must be paid for as follows:  (a) in cash or by check  (acceptable  to
the Company in accordance  with guidelines  established for this purpose),  bank
draft or money  order  payable to the order of the  Company,  or (b) through the
delivery of shares of Common  Stock (which in the case of shares  acquired  from
the Company upon exercise of an option,  have been  outstanding for at least six
months)  having a fair market value on the last  business day preceding the date
of exercise equal to the purchase price, or (c) by delivery of an  unconditional
and  irrevocable  undertaking  by a broker to deliver  promptly  to the  Company
sufficient  funds  to pay the  exercise  price,  or (d) if so  permitted  by the
instrument  evidencing the option (or in the case of a Nonqualified  Option,  by
the Plan  Administrator  on or after  grant of the  option),  by  delivery  of a
promissory  note of the  Optionee to the  Company,  payable on such terms as are
specified  by  the  Plan  Administrator,  or  (e)  by  any  combination  of  the
permissible forms of payment;  PROVIDED, that if the Common Stock delivered upon
exercise of the option is an original issue of authorized Common Stock, at least
so much of the exercise  price as represents  the par value of such Common Stock
must be paid other than by the Optionee's  promissory note or personal check. In
the event that  payment of the  option  price is made under (b) above,  the Plan
Administrator  may provide  that the  Optionee be granted an  additional  option
covering the numbers of shares  surrendered,  at an exercise  price equal to the
fair market value of a share of Common Stock on the date of  surrender.  For the
purpose of this Section,  the fair market value of the shares of Common Stock so
delivered to the Company shall be determined in the manner  specified in Section
5.1(c)  hereof.  As  promptly  as  practicable  after  receipt  of such  written
notification and payment, the Company shall deliver to the Optionee certificates
for the  number  of  shares  with  respect  to  which  such  Option  has been so
exercised,  issued in the Optionee's name; provided, however, that such delivery
shall be deemed  effected for all purposes when the Company or a stock  transfer
agent of the Company shall have deposited such certificates in the United States
mail,  addressed to the Optionee,  at the address specified  pursuant to Section
6.1.

SECTION 7.      ADJUSTMENT UPON CHANGES IN CAPITALIZATION

      7.1  NO  EFFECT  OF  OPTIONS  UPON  CERTAIN  CORPORATE  TRANSACTIONS.  The
existence of outstanding  options shall not affect in any way the right or power
of the Company or its  stockholders to make or authorize any or all adjustments,
recapitalizations,  reorganizations  or other changes in the  Company's  capital
structure or its business, or any merger or consolidation of the Company, or any
issue of Common  Stock,  or any issue of bonds,  debentures,  preferred or prior
preference  stock ahead of or affecting the Common Stock or the rights  thereof,
or the dissolution or liquidation of the Company, or any sale or transfer of all
or any part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

      7.2. STOCK DIVIDENDS, RECAPITALIZATIONS,  ETC. If the Company shall effect
a subdivision  or  consolidation  of shares or other capital  readjustment,  the
payment of a stock  dividend,  or other  increase or  reduction of the number of
shares of the Common Stock outstanding,  without receiving compensation therefor
in money, services or property,  then: (i) the number, class and per share price
of shares of stock subject to outstanding  options hereunder,  and the number of
shares as to which  automatic  formula  grants of  options  are to be made under
Section  4.4  above,  shall be  appropriately  adjusted  in such a manner  as to
entitle  an  Optionee  to  receive  upon  exercise  of an  option,  for the same
aggregate cash consideration, the same total number and class of shares that the
owner of an equal  number of  outstanding  shares of Common Stock would own as a
result of the event  requiring  the  adjustment;  the number and class of shares
with respect to which options may be granted under the Plan shall be adjusted by
substituting  for the total number of shares of Common  Stock then  reserved for
issuance  under the Plan that number and class of shares of stock that the owner
of an equal number of outstanding shares of Common Stock would own as the result
of the event requiring the adjustment.

      7.3. DETERMINATION OF ADJUSTMENTS.  Adjustments under this Section 7 shall
be  determined  by the  Plan  Administrator  and  such  determinations  shall be
conclusive.  The Plan  Administrator  shall have the discretion and power in any
such event to determine and to make effective  provision for acceleration of the
time or times at which any option or portion  thereof shall become  exercisable.
No  fractional  shares of Common Stock shall be issued under the Plan on account
of any adjustment specified above.

      7.4. NO  ADJUSTMENT IN CERTAIN  CASES.  Except as  hereinbefore  expressly
provided,  the  issue  by the  Company  of  shares  of stock  of any  class,  or
securities  convertible  into shares of stock of any class, for cash or property
or for labor or services, either upon direct sale or upon the exercise of rights
or warrants to subscribe  therefor,  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 or price of shares of Common Stock then subject to outstanding options.

SECTION 8.      EFFECT OF CERTAIN TRANSACTIONS

      If the Company is a party to a  reorganization  or merger with one or more
other  corporations,  whether or not the Company is the  surviving  or resulting
corporation,  or if the  Company  consolidates  with or into  one or more  other

<PAGE>

corporations,  or if the Company is liquidated or sells or otherwise disposes of
substantially  all  of its  assets  to  another  corporation  (each  hereinafter
referred to as a  "Transaction"),  in any such event while  unexercised  options
remain outstanding under the Plan, then: (i) subject to the provisions of clause
(iii) below,  after the effective date of such Transaction  unexercised  options
shall remain outstanding and shall be exercisable in shares of Common Stock, or,
if applicable, shares of such stock or other securities, cash or property as the
holders  of  shares  of  Common  Stock  received  pursuant  to the terms of such
Transaction; (ii) the Plan Administrator may accelerate the time for exercise of
all unexercised and unexpired options to and after a date prior to the effective
date of such Transaction;  or (iii) any outstanding  options may be cancelled by
the Plan  Administrator as of the effective date of such  Transaction,  provided
that:  (x)  notice  of such  cancellation  shall be given to each  holder  of an
option; (y) the Plan Administrator  shall have accelerated the time for exercise
of all  unexercised  and unexpired  options that it proposes to cancel;  and (z)
each holder of an option shall have the right to exercise such option in full.

SECTION 9.      AMENDMENT OR TERMINATION OF THE PLAN

      The Board may  terminate  the Plan at any time,  and may amend the Plan at
any time and from  time to time,  subject  to the  limitation  that,  except  as
provided in Sections 7 and 8 hereof,  no  amendment  shall be  effective  unless
approved by the  stockholders  of the Company in accordance  with applicable law
and  regulations,  at an annual or special  meeting  held within  twelve  months
before or after the date of adoption of such amendment, in any instance in which
such  amendment  would:  (i) increase the number of shares of Common Stock as to
which options may be granted  under the Plan;  or (ii) modify the  provisions of
Section 4 hereof relating to eligibility to receive  Incentive Options under the
Plan.

      Except as  provided  in  Sections 7 and 8 hereof,  rights and  obligations
under any option granted  before  termination or amendment of the Plan shall not
be altered or impaired by such  termination or amendment except with the consent
of the Optionee.

SECTION 10.     NON-EXCLUSIVITY OF THE PLAN; NON-UNIFORM DETERMINATIONS

      Neither the adoption of the Plan by the Board nor the approval of the Plan
by  the  stockholders  of  the  Company  shall  be  construed  as  creating  any
limitations on the power of the Board to adopt such other incentive arrangements
as it may deem  desirable,  including  without  limitation the granting of stock
options  otherwise  than  under the Plan,  and such  arrangements  may be either
applicable generally or only in specific cases.

      The Plan Administrator's determinations under the Plan need not be uniform
and may be made by it  selectively  among persons who receive or are eligible to
receive  options  under the Plan  (whether  or not such  persons  are  similarly
situated).   Without  limiting  the  generality  of  the  foregoing,   the  Plan
Administrator  shall be entitled,  among other things,  to make  non-uniform and
selective  determinations,  and to enter into  non-uniform and selective  option
agreements,  as to (i) the persons to receive  options under the Plan,  (ii) the
terms and provisions of options, (iii) the exercise by the Plan Administrator of
its  discretion  in respect of the exercise of options  pursuant to the terms of
the Plan, and (iv) the treatment of leaves of absence pursuant to Section 5.1(e)
hereof.

SECTION 11.   GOVERNMENT AND OTHER REGULATIONS; GOVERNING LAW; WITHHOLDING TAXES

      The  obligation of the Company to sell and deliver  shares of Common Stock
with  respect  to  options  granted  under  the  Plan  shall be  subject  to all
applicable  laws, rules and  regulations,  including all applicable  federal and
state  securities  laws,  and the obtaining of all such  approvals by government
agencies as may be deemed  necessary or appropriate  by the Plan  Administrator.
All shares sold under the Plan shall bear appropriate  legends. The Company may,
but shall in no event be obligated to, register or qualify any shares covered by
options under  applicable  federal and state  securities  laws; and in the event
that any shares are so registered or qualified the Company may remove any legend
on certificates  representing such shares. The Company shall not be obligated to
take any other affirmative action in order to cause the exercise of an option or
the issuance of shares pursuant  thereto to comply with any law or regulation of
any  governmental  authority.  The Plan shall be  governed by and  construed  in
accordance with the laws of The Commonwealth of Massachusetts.

      Whenever  under the Plan shares are to be  delivered  upon  exercise of an
option, the Company shall be entitled to require as a condition of delivery that
the Optionee remit an amount sufficient to satisfy all federal,  state and other
governmental withholding tax requirements related thereto. An employee may elect
to have such tax withholding obligation satisfied,  in whole or in part, by: (i)
authorizing  the  Company to withhold  from shares of Common  Stock to be issued
pursuant  to the  exercise of a  Nonqualified  Option a number of shares with an
aggregate fair market value (as defined in Section  5.1(c) hereof  determined as
of the date the  withholding  is effected)  that would  satisfy the  withholding
amount due with respect to such exercise;  or (ii)  transferring  to the Company
shares of Common Stock owned by the employee with an aggregate fair market value
(as defined in Section 5.1(c) hereof  determined as of the date the  withholding
is effected) that would satisfy the withholding  amount due. With respect to any

<PAGE>

employee  who is  subject  to  Section 16 of the  Exchange  Act,  the  following
additional restrictions shall apply:

            (a) the election to satisfy tax withholding  obligations relating to
an option exercise in the manner  permitted by Section 11(i) above shall be made
either (1) during the period  beginning on the third  business day following the
date of release of quarterly or annual summary  statements of sales and earnings
of the Company and ending on the twelfth business day following such date or (2)
at least six months prior to the date of exercise of the option;

            (b) such election shall be irrevocable;

            (c) such election shall be subject to the consent or approval of the
Plan Administrator; and

            (d) the Common Stock withheld to satisfy tax withholding, if granted
at the discretion of the Plan Administrator, must pertain to an option which has
been held by the  employee for at least six months from the date of grant of the
option.

SECTION 12.     "LOCKUP" AGREEMENT

      The Plan  Administrator  may in its  discretion  specify upon  granting an
option that the Optionee  shall  agree,  for a period of time (not to exceed 180
days) from the effective date of any  registration of securities of the Company,
upon  request of the Company or the  underwriter  or  underwriters  managing any
underwritten offering of the Company's  securities,  not to sell, make any short
sale of, loan, grant any option for the purchase of, or otherwise dispose of any
shares issued pursuant to the exercise of such option, without the prior written
consent of the Company or such underwriter or underwriters, as the case may be.

SECTION 13.     EFFECTIVE DATE AND DURATION OF PLAN

      The Plan shall become  effective  upon its adoption by the Board  provided
that the  stockholders of the Company shall have approved the Plan within twelve
months  prior to or following  the adoption of the Plan by the Board.  No option
may be granted under the Plan after the tenth anniversary of the effective date.
The Plan shall  terminate (i) when the total amount of the Stock with respect to
which options may be granted shall have been issued upon the exercise of options
or (ii) by action of the Board  pursuant  to Section 9 hereof,  whichever  shall
first occur.

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