Document:

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                                                                    EXHIBIT 10.1

                            VASCULAR SOLUTIONS, INC.

                        STOCK OPTION AND STOCK AWARD PLAN

                          AS AMENDED NOVEMBER 29, 2000

1.       Purpose of Plan

         This Plan shall be known as the "Vascular Solutions, Inc. Stock Option
and Stock Award Plan" and is hereinafter referred to as the "Plan". The Plan
shall provide for the issuance of shares of common stock, par value $.01 (the
"Common Stock"), of Vascular Solutions, Inc. (the "Corporation"). The purpose of
the Plan is to aid in maintaining and developing a mutually beneficial
relationship with employees and non-employees of the Corporation who perform
valuable services for or on behalf of the Corporation, to offer such persons
additional incentives to put forth maximum efforts for the success of the
business, and to afford them an opportunity to acquire a proprietary interest in
the Corporation. It is intended that this purpose be effected through the
granting of stock options, the awarding of Common Stock subject to restrictions
(the "Restricted Shares") and the awarding of stock appreciation rights to such
persons as hereinafter provided. Options granted under the Plan may be either
incentive stock options ("Incentive Stock Options") within the meaning of the
Internal Revenue Code of 1986, as amended (the "Code"), or options which do not
qualify as Incentive Stock Options.

2.       Stock Subject to Plan

         Subject to the provisions of Section 11 hereof, the stock to be subject
to options and which may be awarded as Restricted Shares under the Plan shall be
shares of the Corporation's authorized Common Stock. Such shares may be either
authorized but unissued shares or issued shares which have been reacquired by
the Corporation. Subject to the adjustment as provided in Section 11 hereof, the
maximum number of shares on which options may be exercised or which may be
awarded as Restricted Shares under this Plan shall be 500,000. Any shares
subject to an option under the Plan which, for any reason, expires or is
terminated unexercised, shall be available for options or awards thereafter
granted during the term of the Plan. If any award of Restricted Shares is
forfeited in accordance with the terms and conditions of such award, the
Restricted Shares so forfeited shall also become available for further grants or
awards under the Plan.

3.       Administration of Plan

         (a) The Plan shall be administered by the Board of Directors of the
Corporation. The Board of Directors may authorize, at any time, the formation of
a Stock Option Committee (the "Committee"), consisting of two or more members
who shall be appointed from time to time by the Board of Directors. The Stock
Option Committee will, if formed, have authority to exercise the powers
conferred on the Board of Directors under the Plan, other than the power under
Section 11 herein to terminate or amend the Plan or to accelerate the
exercisability of any option or lift the restrictions on any Restricted Shares
granted or awarded under the Plan.

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         (b) The Board of Directors shall have plenary authority in its
discretion, subject to the express provisions of this Plan, to: (i) determine
the purchase price of the Common Stock covered by each option and the terms of
exercise of each such option, (ii) determine the persons to whom and the time or
times at which options (a person receiving an option is hereinafter referred to
as an "Optionee") or awards of Restricted Shares (a person receiving an award of
Restricted Shares is hereinafter referred to as a "Grantee") shall be granted or
made and the number of shares to be subject to each such option or award (iii)
determine the period during which Restricted Shares shall remain subject to
restrictions and the nature and type of restrictions that may be imposed on
Restricted Shares (iv) interpret the Plan, (v) prescribe, amend and rescind
rules and regulations relating to the Plan, (vi) determine the terms and
provisions (and amendments thereof) of each option and Restricted Share
agreement under this Plan (which agreements need not be identical), including
the designation of those options intended to be Incentive Stock Options, (vii)
the form of payment to be made upon the exercise of an SAR (as hereinafter
defined) as provided in Section 16, which payment may be either cash, common
stock of the Corporation or a combination thereof, and (viii) make all other
determinations necessary or advisable for the administration of the Plan.

         (c) The Committee shall select one of its members as its Chairman and
shall hold its meetings at such times and places as it may determine. A majority
of its members shall constitute a quorum. All determinations of the Committee
shall be made by not less than a majority of its members. Any decision or
determination reduced to writing and signed by a majority of the members of the
Committee shall be fully effective as if it had been made by a majority vote at
a meeting duly called and held.

         (d) The granting of an option or an award pursuant to the Plan shall be
effective only if a written agreement shall have been duly executed and
delivered by and on behalf of the Corporation and the Optionee or Grantee to
whom such right is granted.

4.       Eligibility

         (a) Incentive Stock Options (as determined pursuant to Section 14
herein) may be granted only to employees of the Corporation and its subsidiary
corporations. Options which do not qualify as Incentive Stock Options and awards
of Restricted Shares may be granted or made to both employees and to individuals
or other entities (including but not limited to consultants) who perform
services for the Corporation but who are not employed by the Corporation, when
granting an option or award to such person would be of benefit to the
Corporation.

         (b) Notwithstanding any other provision in the Plan, if at the time an
option is otherwise to be granted pursuant to the Plan the Optionee owns
directly or indirectly (within the meaning of Section 425(d) of the Code (as
hereinafter defined) Common Stock of the Corporation possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Corporation or its parent or subsidiary corporations, if any, (within the
meaning of Section 422(b)(6) of the Code) then any Incentive Stock Option to be
granted to such Optionee pursuant to the Plan shall satisfy the requirements of
Section 422A(c)(6) of the Code, and the option price shall not be less than 110%
of the fair market value of the Common Stock of the Corporation, determined as
described in Section 5, and such option by its terms shall not be exercisable

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after the expiration of five (5) years from the date such option is granted.

5.       Price

                  The option price for all Incentive Stock Options granted under
the Plan shall be determined by the Board of Directors but shall not be less
than 100% of the fair market value of the Common Stock at the date of granting
of such option, as determined in good faith by such Board. The option price for
options granted under the Plan that do not qualify as Incentive Stock Options
shall also be determined by the Board of Directors but shall not be less than
50% of the fair market value of the Common Stock at the date of granting of the
option. The option price shall be payable at the time written notice of exercise
is given to the Corporation. An Optionee shall be entitled to pay the exercise
price in cash, by tendering to the Corporation shares of Common Stock,
previously owned by the Optionee for at least six months, having a fair market
value on the date of exercise equal to the option price, or, with the consent of
the Board of Directors, by the issuance of a promissory note to the Corporation.
The fair market value of such shares shall be (i) the closing price of the
Common Stock as reported for composite transactions if the Common Stock is then
traded on a national securities exchange, (ii) the last sales price if the
Common Stock is then traded on the NASDAQ National Market System, or (iii) the
average of the closing representative bid and asked prices as reported on NASDAQ
if the Common Stock is then traded on NASDAQ. If the Common Stock is not so
traded, the Board of Directors shall determine in good faith the fair market
value.

6.       Term

                  Each option and each Restricted Share award and all rights and
obligations thereunder shall (subject to the provisions of Section 8) expire on
the date determined by the Board of Directors and specified in the option
agreement or agreement relating to the award of the Restricted Shares. The Board
of Directors shall be under no duty to provide terms of like duration for
options or awards granted under the Plan; provided, however, that the term of
any Incentive Stock Option shall not extend more than ten (10) years from the
date of granting of the option.

7.       Exercise of Options and Awards

                  (a) The Board of Directors shall have full and complete
authority (subject to the provisions of Section 8) to determine, at the time of
granting or making, whether an option or Restricted Share award will be
exercisable in full at any time or from time to time during the term of the
option or award, or to provide for the exercise or receipt thereof in such
installments and at such times during the term of the option or award as Board
may determine. Notwithstanding any provision of the Plan or the terms of any
option granted or award of Restricted Shares made under the Plan, no option
granted or Restricted Share awarded under the Plan may be exercised until at
least six months from the date of grant or award.

                  (b) Notwithstanding any provision of the Plan or the terms of
any option granted or award of Restricted Shares made under the Plan, the
exercise of any option or the transferring of any shares of Common Stock on the
books and records of the Corporation pursuant to a Restricted Share award may be
made contingent upon receipt from the Optionee or Grantee (or other person

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rightfully exercising the option or receiving certificates for the shares
granted pursuant to a Restricted Share award) of a representation that, at the
time of such exercise or receipt, it is their then intention to acquire the
shares so received thereunder for investment and not with a view to distribution
thereof. Certificates for shares issued or transferred pursuant to the exercise
of any option or the granting of any Restricted Share award may be restricted as
to further transfers upon advice of legal counsel that such restriction is
appropriate to comply with applicable securities laws.

                  (c) Notwithstanding any provision of the Plan or the terms of
any option granted or award of Restricted Shares made under the Plan, the
Company shall not be required to issue any shares of Common Stock, deliver any
certificates for shares of Common Stock or transfer on its books and records any
shares of Common Stock if such issuance, delivery or transfer would, in the
judgment of the Board of Directors, constitute a violation of any state or
Federal law, or of the rules and regulations of any governmental regulatory body
or any securities exchange.

                  (d) An Optionee electing to exercise an option shall give
written notice to the Corporation of such election and of the number of shares
subject to such exercise. The full purchase price of such shares shall be
tendered, in accordance with the provisions of Section 5, with such notice of
exercise. Until such person has been issued a certificate or certificates for
the shares subject to such exercise, he shall possess no rights as a stockholder
with respect to such shares.

                  (e) Nothing in the Plan or in any agreement thereunder shall
confer on any employee any right to continue in the employ of the Corporation or
any of its subsidiaries or affect, in any way, the right of the Corporation or
any of its subsidiaries to terminate his or her employment at any time.

8.       Effect of Termination of Employment or Death

                  Unless otherwise stated in the option agreement, the following
provisions shall govern the treatment of an option upon termination of
employment:

                  (a) In the event that the optionee shall cease to be employed
by the Corporation or its subsidiaries, if any, for any reason other than such
holder's gross and willful misconduct or death or disability, such optionee
shall have the right to exercise the option at any time within three months
after such termination of employment to the extent of the full number of shares
such holder was entitled to purchase under the option on the date of
termination, subject to the condition that no option shall be exercisable after
the expiration of the term of the option.

                  (b)  In the event that an optionee shall cease to be employed
by the Corporation or its subsidiaries, if any, by reason of such holder's gross
and willful misconduct during the course of employment, including but not
limited to wrongful appropriation of funds of the Corporation or the commission
of a gross misdemeanor or felony, the option shall be terminated as of the date
of the misconduct.

                  (c) If the optionee shall die while in the employ of the
Corporation or any subsidiary, if any, or within three (3) months after
termination of employment for any reason other than gross and willful
misconduct, or become disabled (within the meaning of Section 105(d)(4) of

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the Code) while in the employ of the Corporation or a subsidiary, if any, and
such optionee shall not have fully exercised the option, such option may be
exercised at any time within twelve months after such holder's death or such
disability by the personal representatives, administrators, or, if applicable,
guardian, of the optionee or by any person or persons to whom the option is
transferred by will or the applicable laws of descent and distribution to the
extent of the full number of shares such holder was entitled to purchase under
the option on the date of death, disability or termination of employment, if
earlier, and subject to the condition that no option shall be exercisable after
the expiration of the term of the option.

9.       Nontransferability of Options

                  No option granted under the Plan shall be transferable by an
Optionee, otherwise than by will or the laws of descent or distribution or
pursuant to a qualified domestic relations order as defined by the Code.

 10.     Dilution or Other Adjustments

                  If the number of outstanding shares of the Common Stock of the
Corporation shall, at any time, be increased or decreased as a result of a
subdivision or consolidation of shares, stock dividend, stock split, spin-off or
other distribution of assets to shareholders, recapitalization, merger,
consolidation or other corporate reorganization in which the Corporation is the
surviving corporation, the number and kind of shares subject to the Plan and to
any option, SAR or Restricted Share award previously granted or made, as well as
the option price or amount payable upon the exercise of any previously granted
option or SAR, shall be appropriately adjusted in order to prevent the dilution
or enlargement of rights of holders of outstanding options, SARs or Restricted
Share awards. Any fractional shares resulting from any such adjustment shall be
eliminated.

11.      Amendment or Discontinuance of Plan

                  The Board of Directors may amend or discontinue the Plan at
any time; however, no amendment of the Plan shall, without shareholder approval,
amend the Plan in a way which would cause the Plan to no longer comply with Rule
16b-3 under the Securities Exchange Act of 1934 or any successor rule or other
regulatory requirements. Except as provided in Section 10, the Board of
Directors shall not alter or impair any option, SAR or Restricted Share award
thereto granted or made under the Plan without the consent of the holder of the
option, SAR or award; provided, however, that the Board of Directors may
accelerate the exercisability of options (and any related SARs) or lift any
restrictions imposed on Restricted Shares at any time during the term of such
options or awards without the consent of the holder thereof.

12.      Time of Granting

                  Nothing contained in the Plan or in any resolution adopted or
to be adopted by the Board of Directors or by the shareholders of the
Corporation, and no action taken by the Board of Directors (other than the
execution and delivery of an option or the making of an Award Agreement (as
hereinafter defined)), shall constitute the granting of an option or the making
of a Restricted Share award hereunder. The granting of an option or the making
of a Restricted Share award

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pursuant to the Plan shall take place only when a written option or Award
Agreement shall have been duly executed and delivered by or on behalf of the
Corporation to the Optionee or Grantee to whom such option or award is granted
or made.

13.       Termination of Plan

                  Unless the Plan shall have been discontinued as provided in
Section 12 hereof, the Plan shall terminate on December 22, 2006. No option or
Restricted Share award may be granted or made after such termination, but
termination of the Plan shall not, without the consent of the Optionee or
Grantee, alter or impair any rights or obligations under any option, SAR or
Restricted Share award theretofore granted or made.

14.      Determination of Incentive Stock Option

                  The Board shall determine, upon the granting of each option,
whether such option shall be an Incentive Stock Option or an option that does
not qualify as an Incentive Stock Option.

15.      Restricted Share Awards

                  Each award of Restricted Shares under the Plan shall be
evidenced by an instrument (an "Award Agreement"). Each Award Agreement shall be
subject to the terms and conditions of the Plan but may contain additional terms
and conditions (which terms and conditions may vary from Grantee to Grantee)
that are not inconsistent with the Plan as the Board of Directors may deem
necessary and desirable. Each Award Agreement shall comply with the following
terms and conditions:

                  (a) The Board of Directors shall determine the number of
Restricted Shares to be awarded to a Grantee.

                  (b) At the time of the award of Restricted Shares, a
certificate representing the appropriate number of shares of Common Stock
awarded to a Grantee shall be registered in the name of such Grantee but shall
be held by the Corporation or any custodian appointed by the Corporation for the
account of the Grantee subject to the terms and conditions of the Plan. The
Grantee shall have all rights of a stockholder as to such shares of Common
Stock, including the right to receive dividends and the right to vote such
Common Stock, subject to the following restrictions: (i) the Grantee shall not
be entitled to delivery of the stock certificate until the expiration of the
Restricted Period (as hereinafter defined); (ii) the Restricted Shares may not
be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of
during the Restricted Period; and (iii) all or a specified portion of the
Restricted Shares shall be forfeited and all rights of the Grantee to any
forfeited Restricted Shares shall terminate without further obligation on the
part of the Corporation unless the Grantee remains in the continuous employment
of the Corporation for the period in relation to which all or such portion of
the Restricted Shares were granted ( the "Restricted Period"). No Restricted
Shares shall have a Restricted Period of less than six (6) months from the date
of award. The Board of Directors shall have the power to determine which portion
of an award of Restricted Shares shall be forfeited in the event of a Grantee's
failure to

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remain in the continuous employment of the Corporation during the Restricted
Period relating to such award. In addition, the Board of Directors may specify
additional restrictions or events which must occur during the Restricted Period
or the Restricted Shares, or a portion thereof, shall be forfeited as stated in
the award thereof. Any shares of Common Stock received as a result of a stock
distribution to holders of Restricted Shares shall be subject to the same
restrictions as such Restricted Shares.

                  (c) At the end of each applicable Restricted Period or at such
earlier time as otherwise provided by the Board of Directors, all restrictions
contained in an Award Agreement and in the Plan shall lapse as to such portion
of the Restricted Shares granted in relation to such Restricted Period, and a
stock certificate for the appropriate number of shares of Common Stock, free of
restrictions, shall be delivered to the Grantee or the Grantee's beneficiary or
estate, as the case may be.

                  (d) There shall be no limitation on the number of shares of
Common Stock which a Grantee may be awarded except that no Grantee may be
awarded shares of Common Stock in excess of the number of shares remaining
available for option grants and awards of Restricted Shares under the Plan.

16.      Alternative Stock Appreciation Rights

                  (a) Grant. At the time of grant of an option under the Plan
(or at any time thereafter as to options which are not Incentive Stock Options),
the Board of Directors, in its discretion, may grant to the holder of such
option an alternative Stock Appreciation Right ("SAR") for all or any part of
the number of shares covered by the holder's option. Any such SAR may be
exercised as an alternative, but not in addition to, an option granted
hereunder, and any exercise of an SAR shall reduce an option by the same number
of shares as to which the SAR is exercised. An SAR granted to an Optionee shall
provide that such SAR, if exercised, must be exercised within the time period
specified therein. Such specified time period may be less than (but may not be
greater than) the time period during which the corresponding option may be
exercised. An SAR may be exercised only when the corresponding option is
eligible to be exercised. The failure of the holder of an SAR to exercise such
SAR within the time period specified shall not reduce such holder's option
rights. If an SAR is granted for a number of shares less than the total number
of shares covered by the corresponding option, the Board of Directors may later
(as to options which are not Incentive Stock Options) grant to the Optionee an
additional SAR covering additional shares; provided, however, that the aggregate
amount of all SARs held by any Optionee shall at no time exceed the total number
of shares covered by such Optionee's unexercised options.

                  (b) Exercise. The holder of any option which by its terms is
exercisable who also holds an SAR may, in lieu of exercising their option, elect
to exercise their SAR, subject, however, to the limitation on time of exercise
hereinafter set forth. Such SAR shall be exercised by the delivery to the
Corporation of a written notice which shall state that the Optionee elects to
exercise their SAR as to the number of shares specified in the notice and which
shall further state what portion, if any, of the SAR exercise amount
(hereinafter defined) the holder thereof requests be paid in cash and what
portion, if any, such holder requests be paid in Common Stock of the
Corporation. The Board of Directors shall promptly cause to be paid to such
holder the SAR

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exercise amount either in cash, in Common Stock of the Corporation, or any
combination of cash and stock as the Board of Directors may determine. Such
determination may be either in accordance with the request made by the holder of
the SAR or in the sole and absolute discretion of the Board of Directors. The
SAR exercise amount is the excess of the fair market value of one share of the
Corporation's Common Stock on the date of exercise over the per share option
price for the option in respect of which the SAR was granted multiplied by the
number of shares as to which the SAR is exercised. For the purposes hereof, the
fair market value of the Corporation's shares shall be determined as provided in
Section 5 herein. An SAR may be exercised only when the SAR exercise amount is
positive.

                  (c) Limitation on Date of Exercise. A cash settlement of an
SAR by an officer or director of the Corporation may only be accomplished in
compliance with Rule 16b-3(e) of the Securities Exchange Act of 1934 as
presently in effect or as subsequently modified by amendment.

                  (d) Other Provisions of Plan Applicable. All provisions of
this Plan applicable to options granted hereunder shall apply with equal effect
to an SAR. No SAR shall be transferable otherwise than by will or the laws of
descent and distribution and an SAR may be exercised during the lifetime of the
holder thereof, only by such holder.

17.      Tax Indemnification Payments

                  The Board shall have the authority, at the time of the grant
of an option or the making of a Restricted Share award under the Plan or at any
time thereafter, to approve tax indemnification payments to designated Optionees
and Grantees to be paid upon their exercise of stock options which do not
qualify as incentive stock options or recognition of a taxable gain by reason of
their receipt of an award of Restricted Shares, as the case may be. The amount
of any such payments shall not exceed the amount of tax generally payable by an
Optionee or Grantee by reason of such exercise or recognition, and shall not, in
any case, exceed sixty percent of the amount imputed as taxable income to a
particular Optionee or Grantee by reason of either of the above-described
events. The Board of Directors shall have full authority, in its discretion, to
determine the amount of any such payment, the terms and conditions affecting the
exercise, vesting and payment of any payment, and whether any payment shall be
payable in cash or other property.

18.      Income Tax Withholding

                  In order to assist an Optionee or Grantee in paying federal
and state income taxes required to be withheld upon the exercise of an option or
receipt of a Restricted Share award granted or made hereunder, the Board of
Directors, in its discretion and subject to such additional terms and conditions
as it may adopt, may permit the Grantee or Optionee to elect to satisfy such
income tax withholding obligation by delivering previously owned shares or by
having the Corporation withhold a portion of the shares otherwise to be
delivered upon exercise of such option or award with a fair market value,
determined in accordance with the provisions of Section 5 hereof, in an amount
up to the Optionee's maximum marginal tax rate. Any such election by an officer
or director of the Corporation must comply with the provisions of Rule 16b-3
under the Securities Exchange Act of 1934 or any successor rule.<PAGE>   1

                                                                    EXHIBIT 10.2

                            VASCULAR SOLUTIONS, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

          The following constitute the provisions of the Employee Stock Purchase
Plan of Vascular Solutions, Inc.

     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. It is the intention of the Company to have the Plan
qualify as an "Employee Stock Purchase Plan" under Section 423 of 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" means the Internal Revenue Code of 1986, as amended.

          (c)  "Common Stock" means the Common Stock of the Company.

          (d)  "Company" means Vascular Solutions, Inc., a Minnesota
corporation.

          (e) "Compensation" means regular cash compensation received by an
Employee from the Company or a Designated Subsidiary. By way of illustration,
but not limitation, Compensation includes regular compensation such as salary,
wages, overtime, shift differentials and commissions, but excludes bonuses,
incentive compensation, relocation, expense reimbursements, tuition or other
reimbursements and income realized as a result of participation in any stock
option, stock purchase, or similar plan of the Company or any Designated
Subsidiary.

          (f) "Continuous Status as an Employee" means the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Administrator,
provided that such leave is for a period of not more than 90 days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; or (iv) in the case of transfers between locations of the Company
or between the Company and its Designated Subsidiaries.

          (g)  "Contributions" means all amounts credited to the account of a
participant pursuant to the Plan.

          (h) "Corporate Transaction" means a sale of all or substantially all
of the Company's assets, or a merger, consolidation or other capital
reorganization of the Company with or into another corporation, or any other
transaction or series of related transactions in which the Company's
stockholders immediately prior thereto own less than 50% of the voting stock of
the Company (or its successor or parent) immediately thereafter.

                                  Page 1 of 9

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          (i) "Designated Subsidiaries" means the Subsidiaries that have been
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan; provided however that the Board shall only have the
discretion to designate Subsidiaries if the issuance of options to such
Subsidiary's Employees pursuant to the Plan would not cause the Company to incur
adverse accounting charges.

          (j) "Employee" means any person, including an Officer, who is an
Employee for tax purposes and who is customarily employed for at least twenty
(20) hours per week by the Company or one of its Designated Subsidiaries.

          (k)  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

          (l)  "Offering Date" means the first business day of each Offering
Period of the Plan.

          (m) "Offering Period" means a period of twenty-four (24) months
commencing on November 1 and May 1 of each year, except for the first Offering
Period as set forth in Section 4(a).

          (n) "Officer" means 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.

          (o)  "Plan" means this Employee Stock Purchase Plan.

          (p)  "Purchase Date" means the last day of each Purchase Period of
the Plan.

          (q) "Purchase Period" means a period of six (6) months within an
Offering Period, except for the Purchase Periods in the first Offering Period as
set forth in Section 4(b).

          (r) "Purchase Price" means with respect to a Purchase Period an amount
equal to 85% of the Fair Market Value (as defined in Section 7(b) below) of a
Share of Common Stock on the Offering Date or on the Purchase Date, whichever is
lower.

          (s) "Share" means a share of Common Stock, as adjusted in accordance
with Section 19 of the Plan.

          (t) "Subsidiary" means a corporation, domestic or foreign, of which
not less than 50% 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.

     3.   Eligibility.

          (a) Any person who is an Employee as of the Offering Date of a given
Offering Period shall be eligible to participate in such Offering Period under
the Plan, subject to the requirements of Section 5(a) and the limitations
imposed by Section 423(b) of the Code.

          (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 capital stock of
the Company and/or hold outstanding options to purchase stock possessing five
percent (5%) 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) if such
option would permit his or her rights to purchase stock under all employee stock
purchase plans (described in Section 423 of the Code) of the Company and its
Subsidiaries to accrue at a rate that exceeds Twenty-Five Thousand Dollars
($25,000) of the Fair Market Value (as

                                  Page 2 of 9

<PAGE>   3

defined in Section 7(b) below) of such stock (determined at the time such option
is granted) for each calendar year in which such option is outstanding at any
time.

     4.   Offering Periods and Purchase Periods.

          (a) Offering Periods. The Plan shall be generally implemented by a
series of Offering Periods of twenty-four (24) months' duration, with new
Offering Periods (other than the first Offering Period) commencing on or about
May 1 and November 1 of each year (or at such other time or times as may be
determined by the Board of Directors). The first Offering Period shall commence
on the day before the effective date of the Registration Statement on Form S-1
for the initial public offering of the Company's Common Stock (the "IPO Date")
and continue until April 30, 2002. The Plan shall continue until terminated in
accordance with Section 19 hereof. The Board of Directors of the Company shall
have the power to change the duration and/or the frequency of Offering Periods
with respect to future offerings without stockholder approval if such change is
announced at least five (5) days prior to the scheduled beginning of the first
Offering Period to be affected.

          (b)  Purchase Periods. Each Offering Period shall generally consist of
four (4) consecutive purchase periods of six (6) months' duration. The last day
of each Purchase Period shall be the "Purchase Date" for such Purchase Period. A
Purchase Period commencing on May 1 shall end on the next October 31. A Purchase
Period commencing on November 1 shall end on the next April 30. The first
Offering Period shall have three Purchase Periods. The first Purchase Period of
the first Offering Period shall commence on the IPO Date and shall end on April
30, 2001, with the second Purchase Period beginning on May 1, 2001 and ending on
October 31, 2001, and the third Purchase Period beginning on November 1, 2001
and ending on April 30, 2002. The Board of Directors of the Company shall have
the power to change the duration and/or frequency of Purchase Periods with
respect to future purchases without stockholder approval if such change is
announced at least five (5) days prior to the scheduled beginning of the first
Purchase Period to be affected.

     5.   Participation.

          (a) An eligible Employee may become a participant in the Plan by
completing a subscription agreement on the form provided by the Company and
filing it with the Company's Human Resources Department or the stock brokerage
or other financial services firm designated by the Company (the "Designated
Broker") prior to the applicable Offering 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. The subscription agreement shall set forth
the percentage of the participant's Compensation (subject to Section 6(a) below)
to be paid as Contributions pursuant to the Plan.

          (b) Payroll deductions shall commence on the first full payroll
following the Offering Date and shall end on the last payroll paid on or prior
to the last Purchase Period of the Offering Period to which the subscription
agreement is applicable, unless sooner terminated by the participant as provided
in Section 10.

     6.   Method of Payment of Contributions.

          (a) A participant shall elect to have payroll deductions made on each
payday during the Offering Period in an amount not less than one percent (1%)
and not more than ten percent (10%) (or such other percentage as the Board may
establish from time to time before an Offering Date) of such participant's
Compensation on each payday during the Offering Period. All payroll deductions
made by a participant shall be credited to his or her account under the Plan. A
participant may not make any additional payments into such account, except as
provided in Section 11.

                                  Page 3 of 9

<PAGE>   4

          (b) A participant may discontinue his or her participation in the Plan
as provided in Section 10, or, unless otherwise provided by the Administrator,
on one occasion only during a Purchase Period may increase and on one occasion
only during a Purchase Period may decrease the rate of his or her Contributions
with respect to the ongoing Offering Period by completing and filing with the
Company a new subscription agreement authorizing a change in the payroll
deduction rate. The change in rate shall be effective as of the beginning of the
next pay period following the date of filing of the new subscription agreement,
if the agreement is filed at least ten (10) business days prior to such date
and, if not, as of the beginning of the next succeeding pay period.

          (c) 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 during any Offering Period scheduled to end
during the current calendar year to 0%. Payroll deductions shall re-commence at
the rate provided in such participant's subscription agreement at the beginning
of the first Offering Period that is scheduled to end in the following calendar
year, unless terminated by the participant as provided in Section 10.

     7.   Grant of Option.

          (a) On the Offering Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to
purchase on each Purchase Date a number of Shares of the Company's Common Stock
determined by dividing such Employee's Contributions accumulated prior to such
Purchase Date and retained in the participant's account as of the Purchase Date
by the applicable Purchase Price; provided however that the maximum number of
Shares an Employee may purchase during each Purchase Period shall be 2,000
Shares (subject to any adjustment pursuant to Section 19 below), and provided
further that such purchase shall be subject to the limitations set forth in
Sections 3(b) and 13 of this Plan and Section 423 of the Code.

          (b) The fair market value of the Company's Common Stock on a given
date (the "Fair Market Value") shall be determined by the Board in its
discretion based on the closing sales price of the Common Stock for such date
(or, in the event that the Common Stock is not traded on such date, on the
immediately preceding trading date), as reported by the National Association of
Securities Dealers Automated Quotation (Nasdaq) National Market or, if such
price is not reported, the mean of the bid and asked prices per share of the
Common Stock as reported by Nasdaq or, in the event the Common Stock is listed
on a stock exchange, the Fair Market Value per share shall be the closing sales
price on such exchange on such date (or, in the event that the Common Stock is
not traded on such date, on the immediately preceding trading date), as reported
in The Wall Street Journal. For purposes of the Offering Date under the first
Offering Period under the Plan, the Fair Market Value of a share of the Common
Stock of the Company shall be the Price to Public as set forth in the final
prospectus filed with the Securities and Exchange Commission pursuant to Rule
424 under the Securities Act of 1933, as amended.

     8. Exercise of Option. Unless a participant withdraws from the Plan as
provided in Section 10, his or her option for the purchase of Shares will be
exercised automatically on each Purchase Date of an Offering Period, and the
maximum number of full Shares subject to the option will be purchased at the
applicable Purchase Price with the accumulated Contributions in his or her
account. No fractional Shares shall be issued. Any payroll deductions
accumulated in a participant's account that are not sufficient to purchase a
full Share shall be retained in the participant's account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10 below. Any other amounts left over in a
participant's account after a Purchase Date shall be returned to the
participant. The Shares purchased upon exercise of an option hereunder shall be
deemed to be transferred to the

                                  Page 4 of 9

<PAGE>   5

participant on the Purchase Date. During his or her lifetime, a participant's
option to purchase Shares hereunder is exercisable only by him or her.

     9.   Delivery. Within thirty (30) days after each Purchase Date of each
Offering Period, the number of Shares purchased by each participant upon
exercise of his or her option shall be deposited into an account established in
the participant's name with the Designated Broker.

     10.  Voluntary Withdrawal; Termination of Employment.

          (a) A participant may withdraw all but not less than all the
Contributions credited to his or her account under the Plan at any time prior to
each Purchase Date by giving written notice to the Company or the Designated
Broker, as directed by the Company. All of the participant's Contributions
credited to his or her account will be paid to him or her promptly after receipt
of his or her notice of withdrawal and his or her option for the current period
will be automatically terminated, and no further Contributions for the purchase
of Shares will be made during the Offering Period.

          (b) Upon termination of the participant's Continuous Status as an
Employee prior to the Purchase Date of an Offering Period for any reason,
including retirement or death, the Contributions credited to his or her account
will be returned to him or her or, in the case of his or her death, to the
person or persons entitled thereto under Section 14, and his or her option will
be automatically terminated.

          (c) In the event an Employee fails to remain in Continuous Status as
an Employee of the Company for at least twenty (20) hours per week during the
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 Contributions credited to his
or her account will be returned to him or her and his or her option terminated.

          (d) A participant's withdrawal from an offering will not have any
effect upon his or her eligibility to participate in a succeeding offering or in
any similar plan that may hereafter be adopted by the Company.

     11.  Automatic Withdrawal. If the Fair Market Value of the Shares on any
Purchase Date of an Offering Period is less than the Fair Market Value of the
Shares on the Offering Date for such Offering Period, then every participant
shall automatically (i) be withdrawn from such Offering Period at the close of
such Purchase Date and after the acquisition of Shares for such Purchase Period,
and (ii) be enrolled in the Offering Period commencing on the first business day
subsequent to such Purchase Period. Participants shall automatically be
withdrawn as of October 31, 2000 from the Offering Period beginning on the IPO
Date and re-enrolled (with all Contributions carried forward) in the Offering
Period beginning on November 1, 2000 if the Fair Market Value of the Shares on
the IPO Date is greater than the Fair Market Value of the Shares on October 31,
2000, unless a participant notifies the Administrator prior to October 31, 2000
that he or she does not wish to be withdrawn and re-enrolled; and, in connection
therewith, any new participant to the Offering Period beginning on November 1,
2000 may make an additional Contribution up to the maximum amount of any
Contribution carried forward by a participant.

     12.  Interest.  No interest shall accrue on the Contributions of a
participant in the Plan.

     13.  Stock.

          (a) Subject to adjustment as provided in Section 19, the maximum
number of Shares which shall be made available for sale under the Plan shall be
500,000 Shares, plus an automatic annual increase on the first day of each of
the Company's fiscal years beginning in 2002 and ending in 2010 equal to the
lesser of (i) 200,000 Shares, (ii) two percent (2%) of the Shares outstanding on
the last day of the

                                  Page 5 of 9

<PAGE>   6

immediately preceding fiscal year, or (iii) a lesser amount determined by the
Board. If the Board determines that, on a given Purchase Date, the number of
shares with respect to which options are to be exercised may exceed (i) the
number of shares of Common Stock that were available for sale under the Plan on
the Offering Date of the applicable Offering Period, or (ii) the number of
shares available for sale under the Plan on such Purchase Date, the Board may in
its sole discretion provide (x) that the Company shall make a pro rata
allocation of the Shares of Common Stock available for purchase on such Offering
Date or Purchase Date, as applicable, in as uniform a manner as shall be
practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Common Stock on such
Purchase Date, and continue all Offering Periods then in effect, or (y) that the
Company shall make a pro rata allocation of the shares available for purchase on
such Offering Date or Purchase Date, as applicable, in as uniform a manner as
shall be practicable and as it shall determine in its sole discretion to be
equitable among all participants exercising options to purchase Common Stock on
such Purchase Date, and terminate any or all Offering Periods then in effect
pursuant to Section 20 below. The Company may make pro rata allocation of the
Shares available on the Offering Date of any applicable Offering Period pursuant
to the preceding sentence, notwithstanding any authorization of additional
Shares for issuance under the Plan by the Company's stockholders subsequent to
such Offering Date.

          (b) The participant shall have no interest or voting right in Shares
covered by his or her 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.

     14.  Administration. The Board, or a committee named by the Board, shall
supervise and administer the Plan and shall have full power to adopt, amend and
rescind any rules deemed desirable and appropriate for the administration of the
Plan and not inconsistent with the Plan, to construe and interpret the Plan, and
to make all other determinations necessary or advisable for the administration
of the Plan.

     15.  Designation of Beneficiary.

          (a) A participant may designate 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 the end of a Purchase Period but
prior to delivery to him or her of such Shares and cash. In addition, a
participant may designate 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 the Purchase Date of an Offering Period. If a participant is married
and the designated beneficiary is not the spouse, spousal consent shall be
required for such designation to be effective. Beneficiary designations under
this Section 15(a) shall be made as directed by the Company's Human Resources
Department.

          (b) Such designation of beneficiary may be changed by the participant
(and his or her spouse, if any) 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.

                                  Page 6 of 9

<PAGE>   7

     16.  Transferability. Neither Contributions 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 15) 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 in
accordance with Section 10.

     17.  Use of Funds.  All Contributions 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 Contributions.

     18.  Reports. Individual accounts will be maintained for each participant
in the Plan. Statements of account will be provided to participating Employees
by the Company or the Designated Broker at least annually, which statements will
set forth the amounts of Contributions, the per Share Purchase Price, the number
of Shares purchased and the remaining cash balance, if any.

     19.  Adjustments Upon Changes in Capitalization; Corporate Transactions.

          (a) Adjustment. Subject to any required action by the stockholders of
the Company, the number of Shares covered by each option under the plan that has
not yet been exercised and the number of Shares that have been authorized for
issuance under the Plan but have not yet been placed under option (collectively,
the "Reserves"), as well as the maximum number of shares of Common Stock that
may be purchased by a participant in a Purchase Period, the number of shares of
Common Stock set forth in Section 13(a)(i) above, and the price per Share of
Common Stock covered by each option under the Plan that has not yet been
exercised, shall be proportionately adjusted for any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock (including any
such change in the number of Shares of Common Stock effected in connection with
a change in domicile of the Company), or any other increase or decrease in the
number of Shares 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 subject to
an option.

          (b) Corporate Transactions. In the event of a dissolution or
liquidation of the Company, any Purchase Period and Offering Period then in
progress will terminate immediately prior to the consummation of such action,
unless otherwise provided by the Board. In the event of a Corporate Transaction,
each option outstanding under the Plan shall be assumed or an equivalent option
shall be substituted by the successor corporation or a parent or Subsidiary of
such successor corporation. In the event that the successor corporation refuses
to assume or substitute for outstanding options, each Purchase Period and
Offering Period then in progress shall be shortened and a new Purchase Date
shall be set (the "New Purchase Date"), as of which date any Purchase Period and
Offering Period then in progress will terminate. The New Purchase Date shall be
on or before the date of consummation of the transaction and the Board shall
notify each participant in writing, at least ten (10) days prior to the New
Purchase Date, that the Purchase Date for his or her option has been changed to
the New Purchase Date and that his or her option will be exercised automatically
on the New Purchase Date, unless prior to such date he or she has withdrawn from
the Offering Period as provided in Section 10. For purposes of this Section 19,
an option granted under the Plan shall be deemed to be assumed, without
limitation, if, at the time of issuance of the stock or other consideration upon
a Corporate Transaction, each holder of an option under

                                  Page 7 of 9

<PAGE>   8

the Plan would be entitled to receive upon exercise of the option the same
number and kind of shares of stock or the same amount of property, cash or
securities as such holder would have been entitled to receive upon the
occurrence of the transaction if the holder had been, immediately prior to the
transaction, the holder of the number of Shares of Common Stock covered by the
option at such time (after giving effect to any adjustments in the number of
Shares covered by the option as provided for in this Section 19); provided
however that if the consideration received in the transaction is 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, 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 in the transaction.

     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 that the
Company effects one or more reorganizations, recapitalizations, rights offerings
or other increases or reductions of Shares of its outstanding Common Stock, and
in the event of the Company's being consolidated with or merged into any other
corporation.

     20.  Amendment or Termination.

          (a) The Board may at any time and for any reason terminate or amend
the Plan. Except as provided in Section 19, no such termination of the Plan may
affect options previously granted, provided that the Plan or an Offering Period
may be terminated by the Board on a Purchase Date or by the Board's setting a
new Purchase Date with respect to an Offering Period and Purchase Period then in
progress if the Board determines that termination of the Plan and/or the
Offering Period is in the best interests of the Company and the stockholders or
if continuation of the Plan and/or the Offering Period would cause the Company
to incur adverse accounting charges as a result of a change after the effective
date of the Plan in the generally accepted accounting rules applicable to the
Plan. Except as provided in Section 19 and in this Section 20, no amendment to
the Plan shall make any change in any option previously granted that adversely
affects the rights of any participant. In addition, to the extent necessary to
comply with Rule 16b-3 under the Exchange Act, or under Section 423 of the Code
(or any successor rule or provision or any applicable law or regulation), the
Company shall obtain stockholder approval in such a manner and to such a degree
as so 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 and Purchase
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 that are consistent with the Plan.

     21.  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.

     22.  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

                                  Page 8 of 9

<PAGE>   9

with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules
and regulations promulgated thereunder, applicable state securities laws and the
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.

     23.  Term of Plan; Effective Date. The Plan shall become effective upon the
IPO Date. If the Plan is not approved by the shareholders prior to April 30,
2001, all Contributions will be returned to each participant without interest
and the Plan will be terminated. The Plan shall continue in effect for a term of
ten (10) years unless sooner terminated under Section 20 or this Section 23.

     24.  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.

                                  Page 9 of 9

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