Document:

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                                                                     EXHIBIT 4.1

                               MSI HOLDINGS, INC.
                             2000 STOCK OPTION PLAN

    On February 22, 2000, the Board of Directors of MSI Holdings, Inc. adopted
the following 2000 Stock Option Plan:

    1. Purpose.

    MSI Holdings, Inc., a Utah corporation (herein, together with its
successors, referred to as the "Company"), by means of this 2000 Stock Option
Plan (the "Plan"), desires to afford certain individuals and key employees of
the Company and any parent corporation or subsidiary corporation thereof now
existing or hereafter formed or acquired (such parent and subsidiary
corporations sometimes referred to herein as "Related Entities") who are
responsible for the continued growth of the Company an opportunity to acquire a
proprietary interest in the Company, and thus to create in such persons an
increased interest in and a greater concern for the welfare of the Company and
any Related Entities. As used in the Plan, the terms "parent corporation" and
"subsidiary corporation" shall mean, respectively, a corporation within the
definition of such terms contained in Sections 424(e) and 424(f), respectively,
of the Internal Revenue Code of 1986, as amended (the "Code"). All defined terms
not otherwise defined in Sections 1 through 17 of this Plan shall have the
meanings set forth in Section 18 of this Plan.

    The stock options described in Sections 6 and 7 (the "Options") and the
shares of Common Stock (as hereinafter defined) acquired pursuant to the
exercise of such Options are a matter of separate inducement and are not in lieu
of any salary or other compensation for services.

    2. Administration.

    (a) Committee. The Board of Directors of the Company (the "Board of
Directors") shall administer the Plan with respect to all Key Employees (as
hereinafter defined) or Eligible Non-Employees (as hereinafter defined) or may
delegate all or part of its duties under this Plan to any committee or
sub-committee appointed by the Board of Directors (the "Committee") or to any
officer or committee of officers of the Company, subject in each case to such
conditions and limitations as the Board of Directors may establish and subject
to the following sentence. Unless a majority of the members of the Board of
Directors determines otherwise: (a) the Committee shall be constituted in a
manner that satisfies the requirements of Rule 16b-3, which Committee shall
administer the Plan with respect to all Key Employees or Eligible Non-Employees
who are subject to Section 16 of the Exchange Act in a manner that satisfies the
requirements of Rule 16b-3; and (b) the Committee shall be constituted in a
manner that satisfies the requirements of Section 162(m), which Committee shall
administer the Plan with respect to "performance-based compensation" for all Key
Employees or Eligible Non-Employees who are reasonably expected to be "covered
employees" as those terms are defined in Section 162(m). The number of persons
that shall constitute the Committee shall be determined from time to time by a
majority of all the members of the Board of Directors. Except for references in
Sections 2(a), 2(b), and 2(c) and unless the context otherwise requires,
references herein to the Committee shall also refer to the Board of Directors as
administrator of the Plan for Key Employees or Eligible Non-Employees or to the
appropriate delegate of the Committee or the Board of Directors.

    (b) Duration, Removal, Etc. The members of the Committee shall serve at the
pleasure of the Board of Directors, which shall have the power, at any time and
from time to time, to remove members from or add members to the Committee.
Removal from the Committee may be with or without cause. Any individual serving
as a member of the Committee shall have the right to resign from membership in
the Committee by written notice to the Board of Directors. The Board of
Directors, and not the remaining members of the Committee, shall have the power
and authority to fill vacancies on the Committee, however caused.

    (c) Meetings and Actions of Committee. The Board of Directors shall
designate which of the Committee members shall be the chairman of the Committee.
If the Board of Directors fails to designate a Committee chairman,

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the members of the Committee shall elect one of the Committee members as
chairman, who shall act as chairman until he ceases to be a member of the
Committee or until the Board of Directors elects a new chairman. The Committee
shall hold its meetings at those times and places as the chairman of the
Committee may determine. At all meetings of the Committee, a quorum for the
transaction of business shall be required, and a quorum shall be deemed present
if at least a majority of the members of the Committee are present. At any
meeting of the Committee, each member shall have one vote. All decisions and
determinations of the Committee shall be made by the majority vote or majority
decision of all of its members present at a meeting at which a quorum is
present; provided, however, that any decision or determination reduced to
writing and signed by all of the members of the Committee shall be as fully
effective as if it had been made at a meeting that was duly called and held. The
Committee may make any rules and regulations as it may deem advisable for the
conduct of its business that are not inconsistent with the provisions of the
Plan, the certificate of incorporation of the Company, the by-laws of the
Company, Rule 16b-3 so long as it is applicable, and Section 162(m) so long as
it is applicable.

3. Shares Available.

    Subject to the adjustments provided in Section 10, the maximum aggregate
number of shares of Common Stock, $0.10 par value, of the Company ("Common
Stock") in respect of which Options may be granted for all purposes under the
Plan shall be 5,500,000 shares. If, for any reason, any shares as to which
Options have been granted cease to be subject to purchase thereunder, including
the expiration of such Option, the termination of such Option prior to exercise,
or the forfeiture of such Option, such shares shall thereafter be available for
grants under the Plan. Options granted under the Plan may be fulfilled in
accordance with the terms of the Plan with (i) authorized and unissued shares of
the Common Stock, (ii) issued shares of such Common Stock held in the Company's
treasury, or (iii) issued shares of Common Stock reacquired by the Company in
each situation as the Board of Directors or the Committee may determine from
time to time.

4. Eligibility and Bases of Participation.

    Grants of Incentive Options (as hereinafter defined) and Non-Qualified
Options (as hereinafter defined) may be made under the Plan, subject to and in
accordance with Section 6, to Key Employees. As used herein, the term "Key
Employee" shall mean any employee of the Company or any Related Entity,
including officers and directors of the Company or any Related Entity who are
also employees of the Company or any Related Entity, who is regularly employed
on a salaried basis and who is so employed on the date of such grant, whom the
Committee identifies as having a direct and significant effect on the
performance of the Company or any Related Entity.

    Grants of Non-Qualified Options may be made, subject to and in accordance
with Section 7, to any Eligible Non-Employee. As used herein, the term "Eligible
Non-Employee" shall mean any director of the Company who is not regularly
employed on a salaried basis with the Company and any other person or entity of
any nature whatsoever, specifically including an individual, a firm, a company,
a corporation, a partnership, a trust, or other entity (collectively, a
"Person"), that the Committee designates as eligible for a grant of Options
pursuant to this Plan because such Person performs bona fide consulting,
advisory, or other services for the Company or any Related Entity (other than
services in connection with the offer or sale of securities in a capital-raising
transaction) and the Board of Directors or the Committee determines that the
Person has a direct and significant effect on the financial development of the
Company or any Related Entity.

    The adoption of this Plan shall not be deemed to give any Person a right to
be granted any Options.

    Notwithstanding any other provision of this Plan to the contrary, with
respect to the grant of any Options to any Key Employee or Eligible
Non-Employee, the Committee shall first determine the number of shares in
respect of which Options are to be granted to such Key Employee or Eligible
Non-Employee and shall then cause to be granted to such Key Employee or Eligible
Non-Employee an Option exercisable for such shares. The exercise price per share
of Common Stock under each Option shall be fixed by the Committee at the time of
grant of the Option and shall equal at least 100% of the Fair Market Value of a
share of Common Stock on the date of grant.

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5. Authority of Committee.

    Subject to the express provisions of the Plan and any applicable law with
which the Company intends the Plan to comply, the Committee shall have the
authority, in its sole and absolute discretion, (a) to adopt, amend, and rescind
administrative and interpretive rules and regulations relating to the Plan,
including without limitation to adopt and observe such procedures concerning the
counting of Options against the Plan and individual maximums as it may deem
appropriate from time to time; (b) to determine the Key Employees or Eligible
Non-Employees to whom, and the time or times at which, Options shall be granted;
(c) to determine the number of shares of Common Stock, that shall be the subject
of each Option; (d) to determine the terms and provisions of each award
evidencing Options granted hereunder (which need not be identical), including
provisions defining or otherwise relating to (i) the term and the period or
periods and extent of exercisability of the Options, (ii) the extent to which
the transferability of shares of Common Stock issued or transferred pursuant to
any Option is restricted, (iii) the effect of termination of employment on the
Option, (iv) the effect of approved leaves of absence (consistent with any
applicable regulations of the Internal Revenue Service) and (v) the
establishment of procedures for an optionee (A) to have withheld from the total
number of shares of Common Stock to be acquired upon the exercise of an Option
that number of shares having a Fair Market Value which, together with such cash
as shall be paid in respect of fractional shares, shall equal the aggregate
exercise price under such Option for the number of shares then being acquired
(including the shares to be so withheld), and (B) to exercise a portion of an
Option by delivering that number of shares of Common Stock already owned by such
optionee having an aggregate Fair Market Value which shall equal the partial
Option exercise price and to deliver the shares thus acquired by such optionee
in payment of shares to be received pursuant to the exercise of additional
portions of such Option, the effect of which shall be that such optionee can in
sequence utilize such newly acquired shares in payment of the exercise price of
the entire Option, together with such cash as shall be paid in respect of
fractional shares; provided, however, that (A) in the case of Incentive Options,
no shares shall be used to pay the exercise price under this paragraph unless
(1) such shares were not acquired through the exercise of Incentive Options or
(2) if so acquired, (x) such shares have been held for more than two years since
the grant of such Incentive Options and for more than one year since the
exercise of such Incentive Options (the "Holding Period"), or (y) if such shares
have not been held for the Holding Period, the optionee elects in writing to use
such shares to pay the exercise price under this paragraph, and (B) no such
procedure shall be available if there is an opinion of the Company's independent
accounting firm that the use of such a procedure could negatively affect the
financial statements of the Company or a Related Entity; (e) to accelerate,
pursuant to Section 8 or otherwise, the time of exercisability of any Option
that has been granted; (f) to construe the respective awards evidencing Options
pursuant to the Plan; (g) to make determinations of the Fair Market Value of the
Common Stock pursuant to the Plan; (h) to delegate its duties under the Plan to
such agents as it may appoint from time to time, subject to the second sentence
of Section 2(a); and (i) to make all other determinations, perform all other
acts, and exercise all other powers and authority necessary or advisable for
administering the Plan, including the delegation of those ministerial acts and
responsibilities as the Committee deems appropriate. The Committee may correct
any defect, supply any omission or reconcile any inconsistency in the Plan, in
any Option, or in any awards evidencing Options granted hereunder in the manner
and to the extent it deems necessary or desirable to carry the Plan into effect,
and the Committee shall be the sole and final judge of that necessity or
desirability. The determinations of the Committee on the matters referred to in
this Section 5 shall be final and conclusive. The Committee shall not have the
power to appoint members of the Committee or to terminate, modify, or amend the
Plan. Those powers are vested in the Board of Directors.

    From time to time, the Board of Directors and appropriate officers of the
Company shall be and are authorized to take whatever actions are necessary to
file required documents with governmental authorities, stock exchanges, and
other appropriate Persons to make shares of Common Stock available for issuance
pursuant to awards evidencing Options granted hereunder.

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6. Stock Options for Key Employees.

    Subject to the express provisions of this Plan, the Committee shall have the
authority to grant incentive stock options pursuant to Section 422 of the Code
("Incentive Options") to grant non-qualified stock options (options which do not
qualify under Section 422 of the Code) ("Non-Qualified Options"), and to grant
both types of Options to Key Employees. No Incentive Option shall be granted
pursuant to this Plan after the earlier of ten years from the date of adoption
of the Plan or ten years from the date of approval of the Plan by the
stockholders of the Company. Notwithstanding anything in this Plan to the
contrary, Incentive Options may be granted only to Key Employees. The terms and
conditions of the Options granted under this Section 6 shall be determined from
time to time by the Committee; provided, however, that the Options granted under
this Section 6 shall be subject to all terms and provisions of the Plan (other
than Section 7), including the following:

    (a) Option Exercise Price. Subject to Section 4, the Committee shall
establish the Option exercise price at the time any Option is granted at such
amount as the Committee shall determine; provided, that such price shall not be
less than the Fair Market Value per share of Common Stock at the date the Option
is granted; and provided, further, that in the case of an Incentive Option
granted to a person who, at the time such Incentive Option is granted, owns
shares of the Company or any Related Entity which possess more than 10% of the
total combined voting power of all classes of shares of the Company or of any
Related Entity, the option exercise price shall not be less than 110% of the
Fair Market Value per share of Common Stock at the date the Option is granted.
The Option exercise price shall be subject to adjustment in accordance with the
provisions of Section 10 of the Plan.

    (b) Payment. The price per share of Common Stock with respect to each Option
exercise shall be payable at the time of such exercise. Such price shall be
payable in cash or by any other means acceptable to the Committee, including
delivery to the Company of shares of Common Stock owned by the optionee or by
the delivery or withholding of shares pursuant to a procedure created pursuant
to Section 5(d) of the Plan. Shares delivered to or withheld by the Company in
payment of the Option exercise price shall be valued at the Fair Market Value of
the Common Stock on the day preceding the date of the exercise of the Option.

    (c) Continuation of Employment. Each Incentive Option shall require the
optionee to remain in the continuous employ of the Company or any Related Entity
from the date of grant of the Incentive Option until no more than three months
prior to the date of exercise of the Incentive Option.

    (d) Exercisability of Stock Option. Subject to Section 8, each Option shall
be exercisable in one or more installments as the Committee may determine at the
time of the grant. No Incentive Option by its terms shall be exercisable after
the expiration of ten years from the date of grant of such Option; provided,
however, that no Incentive Option granted to a person who, at the time such
Option is granted, owns stock of the Company, or any Related Entity, possessing
more than 10% of the total combined voting power of all classes of stock of the
Company, or any Related Entity, shall be exercisable after the expiration of
five years from the date such Option is granted.

    (e) Death. If any optionee's employment with the Company or a Related Entity
terminates due to the death of such optionee, the estate of such optionee, or a
Person who acquired the right to exercise such Option by bequest or inheritance
or by reason of the death of the optionee, shall have the right to exercise such
Option in accordance with its terms at any time and from time to time within 180
days after the date of death unless a shorter or longer period is expressly
provided in such Option (but in no event prior to the 90th day after the death
of such optionee) or established by the Committee pursuant to Section 8 (but in
no event after the expiration date of such Option).

    (f) Disability. If the employment of any optionee terminates because of his
Disability (as defined in Section 18), such optionee or his legal representative
shall have the right to exercise the Option in accordance with its terms at any
time and from time to time within 180 days after the date of such termination
unless a shorter or longer period is expressly provided in such Option (but in
no event prior to the 90th day after the date of such termination of employment)
or established by the Committee pursuant to Section 8 (but not after the
expiration date of the Option);

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provided, however, that in the case of an Incentive Option, the optionee or his
legal representative shall in any event be required to exercise the Incentive
Option within one year after termination of the optionee's employment due to his
Disability.

    (g) Termination for Good Cause. Unless an optionee's Option expressly
provides otherwise or the Committee determines otherwise, such optionee shall
immediately forfeit all rights under his Option, except as to the shares of
stock already purchased thereunder, if the employment of such optionee with the
Company or a Related Entity is terminated by the Company or any Related Entity
for Good Cause (as defined in Section 18 below). The determination that there
exists Good Cause for termination shall be made by the Committee (unless
otherwise agreed to in writing by the Company and the optionee) and any decision
in respect thereof by the Committee shall be final and binding on all parties in
interest.

    (h) Other Termination of Employment. If the employment of an optionee with
the Company or a Related Entity terminates for any reason other than those
specified in subsections 6(e), (f) or (g) above, such optionee shall have the
right to exercise his Option in accordance with its terms, within 90 days after
the date of such termination, unless a shorter or longer period is expressly
provided in such Option or established by the Committee pursuant to Section 8
(but not after the expiration date of the Option); provided, that no Incentive
Option shall be exercisable more than three months after such termination.

    (i) Maximum Exercise. The aggregate Fair Market Value of stock (determined
at the time of the grant of the Option) with respect to which Incentive Options
are exercisable for the first time by an optionee during any calendar year under
all plans of the Company and any Related Entity shall not exceed $100,000.

7. Stock Option Grants to Eligible Non-Employees.

    (a) Subject to the express provisions of this Plan, the Committee shall have
the authority to grant Non-Qualified Options to Eligible Non-Employees. The
terms and conditions of the Options granted under this Section 7 shall be
determined from time to time by the Committee; provided, however, that the
Options granted under this Section 7 shall be subject to all terms and
provisions of the Plan (other than Section 6), including the following:

        (i)   Option Exercise Price. Subject to Section 4, the Committee shall
              establish the Option exercise price at the time any Non-Qualified
              Option is granted at such amount as the Committee shall determine.
              The Option exercise price shall be subject to adjustment in
              accordance with the provisions of Section 10 of the Plan.

        (ii)  Payment. The price per share of Common Stock with respect to each
              Option exercise shall be payable at the time of such exercise.
              Such price shall be payable in cash or by any other means
              acceptable to the Committee, including delivery to the Company of
              shares of Common Stock owned by the optionee or by the delivery or
              withholding of shares pursuant to a procedure created pursuant to
              Section 5(d) of the Plan. Shares delivered to or withheld by the
              Company in payment of the Option exercise price shall be valued at
              the Fair Market Value of the Common Stock on the day preceding the
              date of the exercise of the Option.

        (iii) Exercisability of Stock Option. Subject to Section 8, each Option
              shall be exercisable in one or more installments as the Committee
              may determine at the time of the grant. No Option shall be
              exercisable after the expiration of ten years from the date of
              grant of the Option, unless otherwise expressly provided in such
              Option.

        (iv)  Death. If the retention by the Company or any Related Entity of
              the services of any Eligible Non-Employee terminates because of
              his death, the estate of such optionee, or a Person who acquired
              the right to exercise such Option by bequest or inheritance or by
              reason of

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            the death of the optionee, shall have the right to exercise such
            Option in accordance with its terms, at any time and from time to
            time within 180 days after the date of death unless a shorter or
            longer period is expressly provided in such Option (but in no event
            prior to the 90th day after the death of such optionee) or
            established by the Committee pursuant to Section 8 (but in no event
            after the expiration date of such Option).

      (v)   Disability. If the retention by the Company or any Related Entity of
            the services of any Eligible Non-Employee terminates because of his
            Disability, such optionee or his legal representative shall have the
            right to exercise the Option in accordance with its terms at any
            time and from time to time within 180 days after the date of the
            optionee's termination unless a shorter or longer period is
            expressly provided in such Option (but in no event prior to the 90th
            day after the date of such termination of employment) or established
            by the Committee pursuant to Section 8 (but not after the expiration
            of the Option).

      (vi)  Termination for Good Cause. If the retention by the Company or any
            Related Entity of the services of any Eligible Non-Employee is
            terminated (i) for Good Cause or (ii) as a result of removal of the
            optionee from office as a director of the Company or of any Related
            Entity for cause by action of the stockholders of the Company or
            such Related Entity in accordance with the by-laws of the Company or
            such Related Entity, as applicable, and the corporate law of the
            jurisdiction of incorporation of the Company or such Related Entity,
            then such optionee shall immediately forfeit his rights under his
            Option except as to the shares of stock already purchased. The
            determination that there exists Good Cause for termination shall be
            made by the Committee (unless otherwise agreed to in writing by the
            Company and the optionee) and any decision in respect thereof by the
            Committee shall be final and binding on all parties in interest.

      (vii) Other Termination of Relationship. If the retention by the Company
            or any Related Entity of the services of any Eligible Non-Employee
            terminates for any reason other than those specified in subsections
            7(a)(iv), (a)(v) or (a)(vi) above, such optionee shall have the
            right to exercise his or its Option in accordance with its terms
            within 30 days after the date of such termination, unless a shorter
            or longer period is expressly provided in such Option or established
            by the Committee pursuant to Section 8 (but not after the expiration
            date of the Option).

    (b) An Eligible Non-Employee that is a non-employee director of the Company
may elect to receive Options in lieu of all or a portion of such director's
annual cash retainer fee for services as a director of the Company.
Notwithstanding subsection 7(a)(ii), the following shall apply if a non-employee
director elects to receive all or a portion of his/her annual cash retainer in
Options:

      (i)   Method of Election. Except as otherwise specified by the Committee,
            a non-employee director's election shall be made in accordance with
            the following provisions. Unless the Committee provides otherwise,
            the election may be made only by written notice delivered to the
            Committee prior to the first day of the calendar year in which the
            cash payment would otherwise be made. The election shall specify the
            amount of the annual cash retainer that is to be paid in the form of
            Options and shall be irrevocable except for payments otherwise
            payable in the next calendar year after the date of a written notice
            of revocation.

      (ii)  Terms of Options. The date of grant of an Option granted pursuant
            to this Section 7(b) shall be the date on which the portion of the
            annual cash retainer fee that the non-employee director has elected
            not to receive would otherwise have been paid. The number of shares
            subject to that Option shall be determined by dividing the foregone
            amount of the annual cash retainer fee otherwise due and payable on
            the date of grant by the value of an Option

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            for one share of Common Stock on the date of grant having the terms
            set forth herein, which value shall be calculated pursuant to the
            Black-Scholes Model. The exercise price with respect to a share of
            Common Stock subject to that Option shall be the Fair Market Value
            of a share of Common Stock on the Option's date of grant.

8. Change of Control.

    Except as otherwise expressly provided in a particular Option, if (i) a
Change of Control shall occur or (ii) the Company shall enter into an agreement
providing for a Change of Control, then the Committee may declare any or all
Options outstanding under the Plan to be exercisable in full at such time or
times as the Committee shall determine and the Company may purchase any or all
of such Options for an amount of cash equal to the amount that could have been
attained upon the exercise of such Options or the realization of the optionee's
rights had such Option been currently exercisable. Each Option accelerated by
the Committee pursuant to the preceding sentence shall terminate,
notwithstanding any express provision thereof or any other provision of the
Plan, on such date (not later than the stated exercise date) as the Committee
shall determine.

9. [RESERVED]

10. Adjustment of Shares.

    Except as otherwise contemplated in Section 8, and unless otherwise
expressly provided in a particular Option, in the event that, by reason of any
merger, consolidation, combination, liquidation, reorganization,
recapitalization, stock dividend, stock split, split-up, split-off, spin-off,
combination of shares, exchange of shares or other like change in capital
structure of the Company (collectively, a "Reorganization"), the Common Stock is
substituted, combined, or changed into any cash, property, or other securities,
or the shares of Common Stock are changed into a greater or lesser number of
shares of Common Stock, the number and/or kind of shares and/or interests
subject to an Option and the per share price or value thereof shall be
appropriately adjusted by the Committee to give appropriate effect to such
Reorganization. Any fractional shares or interests resulting from such
adjustment shall be eliminated. Notwithstanding the foregoing, (i) each such
adjustment with respect to an Incentive Option shall comply with the rules of
Section 424(a) of the Code, and (ii) in no event shall any adjustment be made
which would render any Incentive Option granted hereunder other than an
"incentive stock option" for purposes of Section 422 of the Code. The maximum
aggregate number of shares of Common Stock in respect of which Options may be
granted under this Plan as provided for in Section 3 shall be subject to
adjustment as contemplated above.

    Except as otherwise contemplated in Section 8, and unless otherwise
expressly provided in a particular Option, in the event that the Company is not
the surviving entity of a Reorganization and, following such Reorganization and,
in connection with such Reorganization, any optionee will hold Options issued
pursuant to this Plan which have not been exercised, canceled, or terminated in
connection therewith, the Company shall cause such Options to be assumed (or
canceled and replacement Options issued) by the surviving entity or a Related
Entity with such changes in the number and/or kind of shares and/or interests
subject to an Option and the per share price or the value thereof as the
Committee determines is necessary to give appropriate effect to such
Reorganization. In the event of any perceived conflict between the provisions of
Section 8 and this Section 10, the Committee's determination under Section 8
shall control.

11. Assignment or Transfer.

    (a) Transfer of Incentive Options. Incentive Options are not transferrable
        by an optionee other than by will or the laws of descent and
        distribution.

    (b) Transfer of Non-Qualified Options.

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      (i)   Permitted Transferees. The Committee may, in its discretion, permit
            an optionee to transfer all or any portion of a Non-Qualified
            Option, or authorize all or a portion of any Non-Qualified Option to
            be granted to an optionee to be on terms which permit transfer by
            such optionee, to (A) the spouse, former spouse, children,
            stepchildren, grandchildren, parents, stepparents, grandparents,
            siblings, nieces, nephews, mother-in-law, father-in-law,
            sons-in-law, daughters-in-law, brothers-in-law, or sisters-in-law of
            the optionee, including adoptive relationships, or any other person
            sharing the optionee's household (other than a tenant or employee)
            (collectively, "Immediate Family Members"), (B) a trust or trusts in
            which such Immediate Family Members have more than fifty percent of
            the beneficial interest, (C) a foundation in which such Immediate
            Family Members (or the optionee) control the management of assets,
            or (D) any other entity in which such Immediate Family Members (or
            the optionee) own more than fifty percent of the voting interests
            (collectively, "Permitted Transferees"), provided that (x) there may
            be no consideration for any such transfer, (y) subsequent transfers
            of Non-Qualified Options transferred as provided above shall be
            prohibited except subsequent transfers back to the option grantee
            and transfers to other Permitted Transferees of the option grantee.

      (ii)  Domestic Relations Orders. In the Committee's sole discretion
            Non-Qualified Options may be transferred pursuant to domestic
            relations orders entered or approved by a court of competent
            jurisdiction upon delivery to the Company of written notice of such
            transfer and a certified copy of such order.

      (iii) Other Transfers and Exercise Rights. Except as expressly permitted
            by Sections 11(b)(i) and 11(b)(ii), Non-Qualified Options requiring
            exercise shall not be transferable other than by will or the laws of
            descent and distribution. In the event that a legal representative
            has been appointed in connection with the Disability of an optionee,
            the optionee's options may be exercised by the legal representative.

      (iv)  Effect of Transfer. Following the transfer of any Non-Qualified
            Option as contemplated by Sections 11(b)(i), 11(b)(ii) and
            11(b)(iii), (A) such Non-Qualified Option shall continue to be
            subject to the same terms and conditions as were applicable
            immediately prior to transfer, provided that the term "optionee"
            shall be deemed to refer to the Permitted Transferee, the recipient
            under a domestic relations order, or the estate or heirs of a
            deceased optionee, as applicable, to the extent appropriate to
            enable the optionee to exercise the transferred Non-Qualified Option
            in accordance with the terms of this Plan and applicable law, (B)
            the provisions of Sections 7(e) through (h) hereof shall continue to
            be applied with respect to the original optionee and, following the
            occurrence of any such events described therein the Non-Qualified
            Options shall be exercisable by the Permitted Transferee, the
            recipient under a domestic relations order, or the estate or heirs
            of a deceased Holder, as applicable, only to the extent and for the
            periods specified in Sections 7(e) through (h), and (C) in the
            discretion of the Committee, all voting control in the Common Stock
            transferred pursuant to the exercise of Non-Qualified Options shall
            be retained in the option grantee.

    (c) Procedures and Restrictions. Any optionee desiring to transfer an Option
        as permitted under Section 11(a) or 11(b) shall make application
        therefor in the manner and time specified by the Committee and shall
        comply with such other requirements as the Committee may require to
        assure compliance with all applicable securities laws. The Committee
        shall not give permission for such a transfer if (i) it would give rise
        to short-swing liability under Section 16(b) of the Exchange Act, or
        (ii) it may not be made in compliance with all applicable federal, state
        and foreign securities laws.

                                      -8-
<PAGE>   9

12. Compliance with Securities Laws.

    The Company shall not in any event be obligated to file any registration
statement under the Securities Act or any applicable state securities law to
permit exercise of any option or to issue any Common Stock in violation of the
Securities Act or any applicable state securities law. Each optionee (or, in the
event of his death or, in the event a legal representative has been appointed in
connection with his Disability, the Person exercising the Option) shall, as a
condition to his right to exercise any Option, deliver to the Company an
agreement or certificate containing such representations, warranties and
covenants as the Company may deem necessary or appropriate to ensure that the
issuance of shares of Common Stock pursuant to such exercise is not required to
be registered under the Securities Act or any applicable state securities law.

    Certificates for shares of Common Stock, when issued, may have substantially
the following legend, or statements of other applicable restrictions, endorsed
thereon, and may not be immediately transferable:

        THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES
        LAWS. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED
        OR OTHERWISE DISPOSED OF UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE
        SATISFACTORY TO THE ISSUER (WHICH, IN THE DISCRETION OF THE ISSUER, MAY
        INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER) THAT SUCH
        OFFER, SALE, PLEDGE, TRANSFER OR OTHER DISPOSITION WILL NOT VIOLATE
        APPLICABLE FEDERAL OR STATE LAWS.

    This legend shall not be required for shares of Common Stock issued pursuant
to an effective registration statement under the Securities Act and in
accordance with applicable state securities laws.

13. Withholding Taxes.

    By acceptance of the Option, the optionee will be deemed to (i) agree to
reimburse the Company or Related Entity by which the optionee is employed for
any federal, state, or local taxes required by any government to be withheld or
otherwise deducted by such corporation in respect of the optionee's exercise of
all or a portion of the Option; (ii) authorize the Company or any Related Entity
by which the optionee is employed to withhold from any cash compensation paid to
the optionee or in the optionee's behalf, an amount sufficient to discharge any
federal, state, and local taxes imposed on the Company, or the Related Entity by
which the optionee is employed, and which otherwise has not been reimbursed by
the optionee, in respect of the optionee's exercise of all or a portion of the
Option; and (iii) agree that the Company may, in its discretion, hold the stock
certificate to which the optionee is entitled upon exercise of the Option as
security for the payment of the aforementioned withholding tax liability, until
cash sufficient to pay that liability has been accumulated, and may, in its
discretion, effect such withholding by retaining shares issuable upon the
exercise of the Option having a Fair Market Value on the date of exercise which
is equal to the amount to be withheld.

14. Costs and Expenses.

    The costs and expenses of administering the Plan shall be borne by the
Company and shall not be charged against any Option nor to any employee
receiving an Option.

                                      -9-
<PAGE>   10

15. Funding of Plan.

    The Plan shall be unfunded. The Company shall not be required to make any
segregation of assets to assure the payment of any Option under the Plan.

16. Other Incentive Plans.

    The adoption of the Plan does not preclude the adoption by appropriate means
of any other incentive plan for employees.

17. Effect on Employment.

    Nothing contained in the Plan or any agreement related hereto or referred to
herein shall affect, or be construed as affecting, the terms of employment of
any Key Employee except to the extent specifically provided herein or therein.
Nothing contained in the Plan or any agreement related hereto or referred to
herein shall impose, or be construed as imposing, an obligation on (i) the
Company or any Related Entity to continue the employment of any Key Employee,
and (ii) any Key Employee to remain in the employ of the Company or any Related
Entity.

18. Definitions.

    In addition to the terms specifically defined elsewhere in the Plan, as used
in the Plan, the following terms shall have the respective meanings indicated
unless another definition is agreed to in writing by the Company and the
optionee in an option grant agreement with respect to such term or a similar
term:

    (a) "Affiliate" shall mean, as to any Person, a Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, such Person.

    (b) "Authorization Date" shall have the meaning set forth in Section 11(b)
hereof.

    (c) "Board of Directors" shall have the meaning set forth in Section 2
hereof.

    (d) "Change of Control" shall mean the first to occur of the following
events: (i) any sale, lease, exchange, or other transfer (in one transaction or
series of related transactions) of all or substantially all of the assets of the
Company to any Person or group of related Persons for purposes of Section 13(d)
of the Exchange Act, (ii) a majority of the Board of Directors of the Company
shall consist of Persons who are not Continuing Directors; (iii) the acquisition
after the date of acceptance of this Plan by any Person or Group of the power,
directly or indirectly, to vote or direct the voting of securities having more
than 50% of the ordinary voting power for the election of directors of the
Company, or (iv) the approval by the stockholders of the Company of a merger or
consolidation of the Company with any other entity, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or such surviving entity's parent) at least fifty percent (50%)
of the total voting power represented by the voting securities of the Company or
such surviving entity or such surviving entity's parent outstanding immediately
after such merger or consolidation.

    (e) "Code" shall have the meaning set forth in Section 1 hereof.

    (f) "Committee" shall have the meaning set forth in Section 2 hereof.

    (g) "Common Stock" shall have the meaning set forth in Section 3 hereof.

                                      -10-
<PAGE>   11

    (h) "Company" shall have the meaning set forth in Section 1 hereof.

    (i) "Continuing Director" shall mean, as of the date of determination, any
Person who (i) was a member of the Board of Directors of the Company on the date
of adoption of this Plan or (ii) was nominated for election or elected to the
Board of Directors of the Company with the affirmative vote of a majority of the
Continuing Directors who were members of such Board of Directors at the time of
such nomination or election.

    (j) "Disability" shall mean permanent disability as defined under Section
22(e)(3) of the Code.

    (k) "Election Notice" shall have the meaning set forth in Section 11(b)
hereof.

    (l) "Eligible Non-Employee" shall have the meaning set forth in Section 4
hereof.

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

    (n) "Fair Market Value" shall, as it relates to the Common Stock, mean, at
the option of the Committee, the average of the high and low prices or the
closing price of such Common Stock as reported on the principal national
securities exchange on which the shares of Common Stock are then listed or the
NASDAQ National Market, as applicable, on the date specified herein for such a
determination, or if there were no sales on such date, on the next succeeding
day or immediately preceding day on which there were sales, or if such Common
Stock is not listed on a national securities exchange or the NASDAQ National
Market, the last reported bid price in the over-the-counter market, or if such
shares are not traded in the over-the-counter market, the per share cash price
for which all of the outstanding Common Stock could be sold to a willing
purchaser in an arms length transaction (without regard to minority discount,
absence of liquidity, or transfer restrictions imposed by any applicable law or
agreement) at the date of the event giving rise to a need for a determination.
Except as may be otherwise expressly provided in a particular Option, Fair
Market Value shall be determined in good faith by the Committee.

    (o) "Good Cause" with respect to any Key Employee, shall mean (unless
another definition is agreed to in writing by the Company and the optionee)
termination by action of the Board of Directors because of: (A) the optionee's
conviction of, or plea of nolo contendere to, a felony or a crime involving
moral turpitude; (B) the optionee's personal dishonesty, incompetence, willful
misconduct, willful violation of any law, rule, or regulation (other than minor
traffic violations or similar offenses) or breach of fiduciary duty which
involves personal profit; (C) the optionee's commission of material
mismanagement in the conduct of his duties as assigned to him by the Board of
Directors or the optionee's supervising officer or officers of the Company or
any Related Entity; (D) the optionee's willful failure to execute or comply with
the policies of the Company or any Related Entity or his stated duties as
established by the Board of Directors or the optionee's supervising officer or
officers of the Company or any Related Entity, or the optionee's intentional
failure to perform the optionee's stated duties; or (E) substance abuse or
addiction on the part of the optionee. "Good Cause" with respect to any Eligible
Non-Employee, shall mean (unless another definition is agreed to in writing by
the Company and the optionee) termination by action of the Board of Directors
because of: (A) the optionee's conviction of, or plea of nolo contendere to, a
felony or a crime involving moral turpitude; (B) the optionee's personal
dishonesty, incompetence, willful misconduct, willful violation of any law,
rule, or regulation (other than minor traffic violations or similar offenses) or
breach of fiduciary duty which involves personal profit; (C) the optionee's
commission of material mismanagement in providing services to the Company or any
Related Entity; (D) the optionee's willful failure to comply with the policies
of the Company in providing services to the Company or any Related Entity, or
the optionee's intentional failure to perform the services for which the
optionee has been engaged; (E) substance abuse or addiction on the part of the
optionee; or (F) the optionee's willfully making any material misrepresentation
or willfully omitting to disclose any material fact to the board of directors of
the Company or any Related Entity with respect to the business of the Company or
any Related Entity.

    (p) "Grantor" shall have the meaning set forth in Section 9 hereof.

                                      -11-
<PAGE>   12

    (q) "Holding Period" shall have the meaning set forth in Section 5 hereof.

    (r) "Incentive Options" shall have the meaning set forth in Section 6
hereof.

    (s) The terms "include," "included" or "including" when used herein shall
mean "including, but not limited to."

    (t) "Key Employee" shall have the meaning set forth in Section 4 hereof.

    (u) "Non-Qualified Options" shall have the meaning set forth in Section 6
hereof.

    (v) "Options" shall have the meaning set forth in Section 1 hereof.

    (w) "Person" shall have the meaning set forth in Section 4 hereof.

    (x) "Plan" shall have the meaning set forth in Section 1 hereof.

    (y) "Purchasable Shares" shall have the meaning set forth in Section 9
hereof.

    (z) "Purchase Option" shall have the meaning set forth in Section 9 hereof.

    (aa) "Related Entities" shall have the meaning set forth in Section 1
hereof.

    (bb) "Reorganization" shall have the meaning set forth in Section 10 hereof.

    (cc) "Right-of-First-Refusal" shall have the meaning set forth in Section
11(b) hereof.

    (dd) "Rule 16b-3" shall mean Rule 16b-3, as amended, or other applicable
rules under Section 16(b) of the Exchange Act.

    (ee) "Sale Notice" shall have the meaning set forth in Section 11(b) hereof.

    (ff) "Section 162(m)" means Section 162(m) of the Code and the rules and
regulations adopted from time to time thereunder, or any successor law or rule
as it may be amended from time to time.

    (gg) "Securities Act" shall mean the Securities Act of 1933.

    (hh) "Subsidiary" shall mean, with respect to any Person, any other Person
of which such first Person owns or has the power to vote, directly or
indirectly, securities representing a majority of the votes ordinarily entitled
to be cast for the election of directors or other governing Persons.

    (ii) "Transfer" shall have the meaning set forth in Section 11(b) hereof.

                                      -12-
<PAGE>   13

19. Amendment of Plan.

    The Board of Directors shall have the right to amend, modify, suspend or
terminate the Plan at any time; provided, that no amendment shall be made which
shall increase the total number of shares of the Common Stock which may be
issued and sold pursuant to Options granted under the Plan unless such amendment
is made by or with the approval of the stockholders. The Board of Directors
shall have the right to amend the Plan and the Options outstanding thereunder,
without the consent or joinder of any optionee or other Person, in such manner
as may be determined necessary or appropriate by the Board of Directors in order
to cause the Plan and the Options outstanding thereunder (i) to qualify as
"incentive stock options" within the meaning of Section 422 of the Code, (ii) to
comply with Rule 16b-3 (or any successor rule) under the Exchange Act (or any
successor law) and the regulations (including any temporary regulations)
promulgated thereunder, or (iii) to comply with Section 162(m) of the Code (or
any successor section) and the regulations (including any temporary regulations)
promulgated thereunder. Except as provided above, no amendment, modification,
suspension or termination of the Plan shall alter or impair any Options
previously granted under the Plan, without the consent of the holder thereof.

20. Effective Date.

    The Plan shall become effective on the date on which it is approved by the
Board of Directors, provided the Plan is approved by the stockholders of the
Company within twelve months thereafter. Notwithstanding any provision in the
Plan, in any Option Agreement, or in any Restricted Stock Agreement, no
Incentive Option shall be exercisable or vest prior to such stockholder
approval.

21. Individual Limitations on Awards.

    No person may be granted during any one year period, Options with respect to
more than 2,000,000 shares of Common Stock. If an Option is canceled, the
canceled Option shall continue to be counted against the maximum number of
shares of Common Stock for which Options may be granted to such Person under the
Plan. If, after the grant, the exercise price of an Option is reduced, the
transaction shall be treated as a cancellation of the Option and the grant of a
new Option. In such case, both the Option that is deemed to be canceled and the
Option that is deemed to be granted reduce the maximum number of shares for
which Options may be granted to such Person under the Plan.

                                      -13-<PAGE>   1
                                                                    EXHIBIT 10.4

                               EPRISE CORPORATION

                             1997 STOCK OPTION PLAN

                     AS ADOPTED AUGUST 20, 1997, AND AMENDED
                NOVEMBER 1, 1997, AUGUST 13, 1998, MAY 12, 1999,
                     SEPTEMBER 15, 1999 AND DECEMBER 1, 1999
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
1. Purpose; Restrictions..................................................     1

2. Effective Date.........................................................     1

3. Stock Covered by the Plan..............................................     1

4. Administration.........................................................     2

5. Eligible Recipients....................................................     2

6. Duration of the Plan...................................................     3

7. Terms and Conditions of Options........................................     3

8. Restrictions on Incentive Options......................................     6

9. Suspension of Rights Prior to a Dissolution, Reorganization, Etc.......     6

10. Adjustment in Shares..................................................     6

11. Investment Representations; Transfer Restrictions.....................     6

12. Change in Control.....................................................     7

13. Company's Right of First Refusal......................................     9

14. No Exercise of Option if Employment Terminated for Misconduct.........    10

15. Company's Right of Repurchase.........................................    11

16. Lock-up Agreement.....................................................    12

17. Definitions...........................................................    13

18. Termination or Amendment of Plan......................................    13
</TABLE>
<PAGE>   3
                                         As adopted 8/20/97 and amended 11/1/97,
                                         08/13/98, 05/12/99, 9/15/99 and 12/1/99

                               EPRISE CORPORATION

                             1997 STOCK OPTION PLAN

        1. PURPOSE; RESTRICTIONS. The purpose of this Eprise Corporation 1997
Stock Option Plan (the "Plan") is to advance the interests of Eprise
Corporation, a Delaware corporation (the "Company"), by strengthening the
ability of the Company to attract, retain and motivate key employees,
consultants and other individual contributors of or to the Company or any
present or future parent or subsidiary of the Company (the "Company Group") by
providing them with an opportunity to purchase stock of the Company and thereby
permitting them to share in the Company's success. It is intended that this
purpose will be effected by granting (i) incentive stock options ("Incentive
Options"), which are intended to qualify under the provisions of Section 422 of
the Code (as hereinafter defined), and (ii) non-statutory stock options
("Nonqualified Options"), which are not intended to meet the requirements of
Section 422 of the Code and which are intended to be taxed upon exercise under
Section 83 of the Code. (Both Incentive Options and Nonqualified Options shall
be collectively referred to as "Options".)

           Notwithstanding the foregoing, no Incentive Options shall be granted
under this Plan unless this Plan shall have been approved by the stockholders of
the Company within twelve (12) months before or after the Effective Date (as
hereinafter defined).

        2. EFFECTIVE DATE. This Plan was adopted on August 20, 1997, which is
also the Effective Date of the Plan.

        3. STOCK COVERED BY THE PLAN. Subject to adjustment as provided in
Sections 9 and 10 below, the initial maximum number of shares that may be made
subject to Options under this Plan through the end of the Company's fiscal year
ending December 31, 1999 ("Shares") shall not exceed in the aggregate Seven
Million One Hundred Thirty-Four Thousand Six Hundred Fourteen (7,134,614) shares
of the common stock, $.001 par value, of the Company ("Common Stock"), subject
to the proviso in the following sentence. Any Shares subject to an Option which
for any reason expires or is terminated unexercised as to such Shares and any
Shares reacquired by the Company pursuant to forfeiture or a repurchase right
hereunder may again be the subject of an Option under the Plan; provided, that
Shares subject to an option under the Company's 1994 Stock Option Plan (the
"1994 Plan") which would have become available for subsequent option grants
under the 1994 Plan upon expiration, termination, forfeiture or repurchase in
the manner described in the first part of this sentence, shall instead become
available for grants under this Plan (thereby increasing the initial maximum
number of Shares that may be made subject to Options hereunder through the end
of the Company's fiscal year ending December 31, 1999 to a number greater than
7,134,614). In addition, on January 1 of each of 2000, 2001 and 2002, the
<PAGE>   4
number of Shares that may be made subject to Options under this Plan shall be
increased automatically by an amount equal to the lesser of (i) 5% of the total
number of shares of Common Stock that are issued and outstanding (including
shares convertible into Common Stock, on an as-converted basis) or held in
treasury as of the close of business on December 31 of the preceding year or
(ii) 3,500,000 shares (subjected to adjustment as provided in Sections 9 and 10
below). The Shares purchased pursuant to the exercise of Options under this Plan
may, in whole or in part, be either authorized but unissued Shares or issued
Shares reacquired by the Company.

        4. ADMINISTRATION. This Plan shall be administered by the Compensation
Committee of the Board of Directors (the "Committee") as follows:

        (a) So long as the Company is not subject to the Exchange Act (as
hereinafter defined), the Committee shall consist of one or more persons
appointed by, and serving at the pleasure of, the Board of Directors.

        (b) If the Company becomes subject to the Exchange Act, the Committee
thereafter shall consist of not less than three (3) members of the Board, who
shall be appointed by and shall serve at the pleasure of the Board; provided
that each of such members of the Committee shall be a person who in the opinion
of counsel to the Company is (i) a "non-employee director" as such term is used
in Rule 16b-3 promulgated under the Exchange Act and (ii) an "outside director"
as such term is used in regulation Section 1.162.27(e)(3) under Section 162(m)
of the Code.

        (c) The Committee shall have the authority, subject to the express
provisions of the Plan, to construe the Plan and the respective Options and
related agreements, to prescribe, amend and rescind rules and regulations
relating to the Plan, to determine the terms and provisions of the respective
Options and related agreements, and to make all other determinations in the
judgment of the Committee necessary or desirable for the administration of the
Plan. The Committee may correct any defect or supply any omission or reconcile
any inconsistency in the Plan or in any Option or related agreement in the
manner and to the extent it shall deem expedient to carry the Plan into effect,
and it shall be the sole and final judge of such expediency. No member of the
Committee shall be liable for any action or determination made in good faith.

        5. ELIGIBLE RECIPIENTS. Subject to the restrictions of Section 1 above,
Options may be granted to such key employees, consultants or other individual
contributors of or to the Company Group, including without limitation members of
the Board, as are selected by the Committee (a "Participant"); provided, that
only Employees (as defined below) of the Company Group shall be eligible for
grants of Incentive Options.

        6. DURATION OF THE PLAN. This Plan shall terminate ten (10) years from
the Effective Date hereof, unless terminated earlier pursuant to Section 13
below, and no Options may be granted thereafter.

        7. TERMS AND CONDITIONS OF OPTIONS. Options granted under this Plan
shall be evidenced by grant forms in such form and containing such terms and
conditions as the

                                       2
<PAGE>   5
Committee shall determine; provided, however, that such grant forms shall
evidence among their terms and conditions the following:

           (a) PRICE. The purchase price per Share payable upon the exercise of
each Option granted hereunder shall be determined by the Committee at the time
the Option is granted. Subject to Section 7(j)(i), if applicable, the purchase
price per Share payable upon the exercise of each Incentive Option granted
hereunder shall not be less than one hundred percent (100%) of the fair market
value per Share of the Common Stock on the day the Incentive Option is granted.
Fair market value shall be determined in accordance with procedures to be
established in good faith by the Committee. The purchase price per Share payable
upon the exercise of each Nonqualified Option granted hereunder shall be
determined by the Board at the time of the grant. No Share shall be issued for
less than its par value, if any.

           (b) NUMBER OF SHARES. Each grant form shall specify the number of
Shares to which it pertains.

           (c) EXERCISE OF OPTIONS. Each Option shall be exercisable for the
full amount or for any part thereof and at such intervals or in such
installments as the Committee may determine at the time it grants such Option;
provided, however, that no Option shall be exercisable with respect to any
Shares later than ten (10) years after the date of the grant of such Option (or
five (5) years in the case of Incentive Options to which Section 7(j)(ii)
applies). An Option shall be exercisable only by delivery of a written notice to
the Company's President, or any other officer of the Company designated by the
Committee to accept such notices on its behalf, specifying the number of Shares
for which the Option is exercised and accompanied by either (i) payment or (ii)
if permitted by the Committee, irrevocable instructions to a broker to promptly
deliver to the Company full payment in accordance with Section 7(d)(ii) below of
the amount necessary to pay the aggregate exercise price. With respect to an
Incentive Option, the permission of the Committee referred to in clause (ii) of
the preceding sentence must be granted at the time the Incentive Option is
granted.

           (d) PAYMENT. Payment shall be made in full (i) at the time the Option
is exercised or (ii) promptly after the Participant forwards the irrevocable
instructions referred to in Section 7(c)(ii) above to the appropriate broker, if
exercise of an Option is made pursuant to Section 7(c)(ii) above. Payment shall
be made either (I) in cash, (II) by check, (III) if permitted by the Committee
(with respect to an Incentive Option, such permission to have been granted at
the time the Incentive Option is granted), by delivery and assignment to the
Company of shares of Company stock having a fair market value (as determined by
the Committee) equal to the exercise price, (IV) if permitted by the Committee,
as stated in the grant form evidencing the Option, and to the extent permitted
by any applicable law, by the Participant's recourse promissory note, which note
must be due and payable not more than five (5) years after the date the Option
is exercised, or (V) by a combination of one or more of the foregoing methods.
If shares of Company stock are to be used to pay the exercise price of an
Incentive Option, the Company prior to such payment must be furnished with
evidence satisfactory to it that the acquisition of such shares and their
transfer in payment of the exercise price satisfy the requirements of Section
422 of the Code and other applicable laws.

                                       3
<PAGE>   6
           (e) WITHHOLDING TAXES; DELIVERY OF SHARES. The Company's obligation
to deliver Shares upon exercise of an Option shall be subject to the
Participant's satisfaction of all applicable federal, state and local income and
employment tax withholding obligations. Without limiting the generality of the
foregoing, the Company shall have the right to deduct from payments of any kind
otherwise due to the Participant any federal, state or local taxes of any kind
required by law to be withheld with respect to any Shares issued upon exercise
of Options. The Participant may elect to satisfy such obligation(s), in whole or
in part, by (i) delivering to the Company a check for the amount required to be
withheld or (ii) if the Committee in its sole discretion approves in any
specific or general case, having the Company withhold Shares or delivering to
the Company already owned shares of Common Stock having a value equal to the
amount required to be withheld, as determined by the Committee.

           (f) NON-TRANSFERABILITY. No Option shall be transferable by the
Participant otherwise than by will or the laws of descent or distribution, and
each Option shall be exercisable during the Participant's lifetime only by the
Participant.

           (g) TERMINATION OF OPTIONS. Except to the extent the Committee
provides specifically in a grant form or Option agreement for a lesser period
(or a greater period, in the case of Nonqualified Options only), each Option
shall terminate and may no longer be exercised if the Participant ceases for any
reason to render continuous Service (as hereinafter defined), in accordance with
the following provisions:

               (i) if the Participant ceases to render Service for any reason
           other than death or Disability (as hereinafter defined), the
           Participant may, at any time within a period of three (3) months
           after the date of such cessation of Service, exercise the Option to
           the extent that the Option was exercisable on the date of such
           cessation;

               (ii) if the Participant ceases to render Service because of
           Disability, the Participant may, at any time within a period of one
           (1) year after the date of such cessation of Service, exercise the
           Option to the extent that the Option was exercisable on the date of
           such cessation; and

               (iii) if the Participant ceases to render Service because of
           death, the Option, to the extent that the Participant was entitled to
           exercise it on the date of death, may be exercised within a period of
           one (1) year after the Participant's death by the person or persons
           to whom the Participant's rights under the Option pass by will or by
           the laws of descent or distribution;

provided, however, that no Option may be exercised to any extent by anyone after
the date of its expiration; and provided, further, that Options may be exercised
at any time only as to Shares which at such time are available for acquisition
pursuant to the terms of the applicable grant form or agreement.

                                       4
<PAGE>   7
           (h) RIGHTS AS STOCKHOLDER. A Participant shall have no rights as a
stockholder with respect to any Shares covered by an Option until the date of
issuance of a stock certificate in the Participant's name for such Shares.

           (i) REPURCHASE OF SHARES BY THE COMPANY. Any Shares acquired upon
exercise of an Option may in the discretion of the Committee be subject to
repurchase by or forfeiture to the Company if and to the extent and at the
repurchase price, if any, specifically set forth in the option grant form or
agreement pursuant to which the Shares were acquired. Certificates representing
Shares subject to such repurchase or forfeiture may be subject to such escrow
and stock legending provisions as may be set forth in the option grant form or
agreement pursuant to which the Shares were acquired.

           (j) 10% STOCKHOLDER. If any Participant to whom an Incentive Option
is granted pursuant to the provisions of the Plan is on the date of grant the
owner of stock (as determined under Section 424(d) of the Code) possessing more
than 10% of the total combined voting power or value of all classes of stock of
the Company, its parent, if any, or subsidiaries, then the following special
provisions shall be applicable:

               (i) The exercise price per Share subject to such Option shall not
           be less than 110% of the fair market value of each Share on the date
           of grant; and

               (ii) The Option shall not have a term in excess of five (5) years
           from the date of grant.

           (k) CONFIDENTIALITY AGREEMENTS. Each Participant shall execute, prior
to or contemporaneously with the grant of any Option hereunder, the Company's
then standard form of agreement, if any, relating to nondisclosure of
confidential information, assignment of inventions and related matters.

           (l) AGGREGATE LIMITATION. The maximum number of Shares with respect
to which any Options may be granted under the Plan to any individual during each
successive twelve-month period commencing on the Effective Date of the Plan
shall not exceed the total number of Shares reserved for the Plan pursuant to
Section 3 above.

           (m) RIGHT TO TERMINATE. Nothing contained in the Plan or in any
Option granted hereunder shall restrict the right of any member of the Company
Group to terminate the employment of any Participant or other Service by the
Participant at any time and for any reason, with or without notice.

        8. RESTRICTIONS ON INCENTIVE OPTIONS. Incentive Options granted under
this Plan shall be specifically designated as such and shall be subject to the
additional restriction that the aggregate fair market value, determined as of
the date the Incentive Option is granted, of the Shares with respect to which
Incentive Options are exercisable for the first time by a Participant during any
calendar year shall not exceed $100,000. If an Incentive Option which exceeds
the $100,000 limitation of this Section 8 is granted, the portion of such Option
which is exercisable

                                       5
<PAGE>   8
for Shares in excess of the $100,000 limitation shall be treated as a
Nonqualified Option pursuant to Section 422(d) of the Code. In the event that
such Participant is eligible to participate in any other stock incentive plans
of the Company, its parent, if any, or a subsidiary which are also intended to
comply with the provisions of Section 422 of the Code, such annual limitation
shall apply to the aggregate number of shares for which options may be granted
under all such plans.

        9.  SUSPENSION OF RIGHTS PRIOR TO A DISSOLUTION, REORGANIZATION, ETC.
Prior to any dissolution, liquidation, merger, consolidation or reorganization
of the Company as to which the Company will not be the surviving corporation, or
the sale or exchange of substantially all of the Common Stock or the sale of
substantially all of the assets of the Company (the "Event"), the Board or the
Committee may decide to terminate each outstanding Option. If the Board or the
Committee so decides, each Option shall terminate as of the effective date of
the Event, but the Board or the Committee shall suspend the exercise of all
outstanding Options a reasonable time prior to the Event, giving each person
affected thereby not less than fourteen days written notice of the date of
suspension, prior to which date such person may purchase in whole or in part the
Shares otherwise available to him as of the date of purchase. For purposes of
this section, the Shares available to any person as of the date of purchase
shall include all Shares issuable under any Accelerated Options of such person,
as defined in Section 12 hereof. If the Event is not consummated, the suspension
shall be removed and all Options shall continue in full force and effect,
subject to their terms.

        10. ADJUSTMENT IN SHARES. Appropriate adjustment shall be made by the
Committee in the maximum number of Shares subject to the Plan and in the number,
kind, and exercise price of Shares covered by outstanding Options granted
hereunder to give effect to any stock dividends, stock splits, stock
combinations, recapitalizations and other similar changes in the capital
structure of the Company after the Effective Date of the Plan. In the event of a
change of the Common Stock resulting from a merger or similar reorganization as
to which the Company is the surviving corporation, the number and kind of Shares
which thereafter may be purchased pursuant to an Option under the Plan and the
number and kind of Shares then subject to Options granted hereunder and the
price per Share thereof shall be appropriately adjusted in such manner as the
Committee may deem equitable to prevent dilution or enlargement of the rights
available or granted hereunder.

        11. INVESTMENT REPRESENTATIONS; TRANSFER RESTRICTIONS. The Company may
require Participants, as a condition of purchasing Shares pursuant to the
exercise of an Option, to give written assurances in substance and form
satisfactory to the Company to the effect that such person is acquiring the
Shares for the Participant's own account for investment and not with any present
intention of selling or otherwise distributing the same, and to such other
effects as the Company deems necessary or appropriate (including without
limitation confirmation that the Participant is aware of any applicable
restrictions on transfer of the Shares, as specified in the by-laws of the
Company or otherwise) in order to comply with federal and applicable state
securities laws.

                                       6
<PAGE>   9
         12. CHANGE IN CONTROL

         Notwithstanding anything to the contrary in the Plan or in any Option
grant (but subject to the provisions of this Section 12), upon the occurrence of
a Change in Control (as defined below) of the Company, the right to purchase
shares under each option granted under the Plan that is then vested or that will
become vested on the next scheduled vesting date, as set forth in the applicable
Option grant, shall vest and become exercisable immediately on the date of
occurrence of a Change in Control (any such options, the "Accelerated Options").
Notwithstanding the foregoing, the Board of Directors may, by vote of a majority
of the entire Board (such majority to include the two directors appointed by the
Investors, as such term is defined in the Stock Purchase Agreement dated
December 18, 1997 by and among the Company, Prism Venture Partners I, L.P.,
Tredegar Investments, Inc., The Still River Fund and Gustin Partners, L.P., for
so long as such agreement remains in effect), provide for acceleration rights
upon a Change in Control in addition to those provided in this Section 12. For
the purpose of this Plan a "Change in Control" shall mean:

         (a) The acquisition by any individual, entity or group (within the
meaning of Sections 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 35 percent or more of either (i) the then outstanding shares of
Common Stock or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of the
directors (the "Outstanding Company Voting Securities"); provided, however, that
the following acquisitions shall not constitute a Change in Control: (A) any
acquisition directly from the Company; (B) any acquisition by the Company or by
any corporation controlled by the Company; (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company; or (D) any acquisition by any corporation
pursuant to a consolidation or merger, if, following such consolidation or
merger, the conditions described in clauses (i), (ii) and (iii) of paragraph (c)
of this Section 12 are satisfied; or

         (b) Individuals who, as of the Effective Date, constitute the Board
(the "Incumbent Board") ceasing for any reason to constitute at least two-thirds
of the Board over any period of 24 consecutive months or less; provided,
however, that any individual becoming a director subsequent to the Effective
Date whose election, or nomination for election by the Company's stockholders,
was approved by a vote or resolution of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (as such terms are
used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board; or

         (c) Adoption by the Board of a resolution approving an agreement of
consolidation of the Company with or merger of the Company into another
corporation or business entity in each case unless, following such consolidation
or merger, (i) more than 60 percent of, respectively, the

                                       7
<PAGE>   10
then outstanding shares of common stock of the corporation resulting from such
consolidation or merger and/or the combined voting power of the then outstanding
voting securities of such corporation or business entity entitled to vote
generally in the election of directors (or other persons having the general
power to direct the affairs of such entity) is then beneficially owned, directly
or indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Common Stock and Outstanding
Company Voting Securities immediately prior to such consolidation or merger in
substantially the same proportions as their ownership, immediately prior to such
consolidation or merger, of the Common Stock and/or Outstanding Company Voting
Securities, as the case may be, (ii) no Person (excluding the Company; any
employee benefit plan (or related trust) of the Company or such corporation or
other business entity resulting from such consolidation or merger; and any
Person beneficially owning, immediately prior to such consolidation or merger,
directly or indirectly, 35 percent or more of the Common Stock and/or
Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly or indirectly, 35 percent or more of, respectively, the then
outstanding shares of common stock of the corporation resulting from such
consolidation or merger or the combined voting power of the then outstanding
voting securities of such corporation or business entity entitled to vote
generally in the election of its directors (or other persons having the general
power to direct the affairs of such entity) and (iii) at least two-thirds of the
members of the board of directors (or other group of persons having the general
power to direct the affairs of the corporation or other business entity)
resulting from such consolidation or merger were members of the Incumbent Board
at the time of the execution of the initial agreement providing for such
consolidation or merger; provided that any right which shall vest by reason of
the action of the Board pursuant to this paragraph (c) shall be divested, with
respect to any such right not already exercised, upon (A) the rejection of such
agreement of consolidation or merger by the stockholders of the Company or (B)
its abandonment by either party thereto in accordance with its terms; or

         (d) Adoption by the requisite majority of the whole Board, or by the
holders of such majority of stock of the Company as is required by law or by the
Certificate of Incorporation or By-Laws of the Company as then in effect, of a
resolution or consent authorizing (i) the dissolution of the Company or (ii) the
sale or other disposition of all or substantially all of the assets of the
Company, other than to a corporation or other business entity with respect to
which, following such sale or other disposition, (A) more than 60 percent of,
respectively, the then outstanding shares of common stock of such corporation
and/or the combined voting power of the outstanding voting securities of such
corporation or other business entity entitled to vote generally in the election
of directors (or other persons having the general power to direct the affairs of
such entity) is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Common Stock and Outstanding Company Voting
Securities immediately prior to such sale or other disposition in substantially
the same proportions as their ownership, immediately prior to such sale or other
disposition, of the Common Stock and/or Outstanding Company Voting securities,
as the case may be, (B) no Person (excluding the Company; any employee benefit
plan (or related trust) of the Company or such corporation or other business
entity; and any Person beneficially owning, immediately prior to such sale or
other disposition, directly or indirectly, 35 percent or more of the Common
Stock and/or Outstanding Company Voting Securities, as the

                                       8
<PAGE>   11
case may be) beneficially owns, directly or indirectly, 35 percent or more of,
respectively, the then outstanding shares of common stock of such corporation
and/or the combined voting power of the then outstanding voting securities of
such corporation or other business entity entitled to vote generally in the
election of directors (or other persons having the general power to direct the
affairs of such entity) and (C) at least two-thirds of the members of the board
of directors (or other group of persons having the general power to direct the
affairs of such corporation or other entity) were members of the Incumbent Board
at the time of the execution of the initial agreement or action of the Board
providing for such sale or other disposition of assets of the Company; provided
that any right which shall vest by reason of the action of the Board or the
stockholders pursuant to this paragraph (d) shall be divested, with respect to
any such right not already exercised, upon the abandonment by the Company of
such dissolution, or such sale or other disposition of assets, as the case may
be.

         A Change in Control shall not occur upon the mere reincorporation of
the Company in another state.

         13. COMPANY'S RIGHT OF FIRST REFUSAL.

             (a) EXERCISE OF RIGHT. If the Employee desires to sell all or any
part of the shares acquired under an Option (including any securities received
in respect thereof pursuant to any stock dividend, stock split,
reclassification, reorganization, recapitalization and the like), and an offeror
(the "Offeror") has made an offer therefor, which offer the Employee desires to
accept, the Employee shall: (i) obtain in writing an irrevocable and
unconditional bona fide offer (the "Bona Fide Offer") for the purchase thereof
from the Offeror; and (ii) give written notice (the "Option Notice") to the
Company setting forth his or her desire to sell such shares, which Option Notice
shall be accompanied by a photocopy of the original executed Bona Fide Offer and
shall set forth at least the name and address of the Offeror and the price and
terms of the Bona Fide Offer. Upon receipt of the Option Notice, the Company
shall have an assignable option to purchase any or all of such shares (the
"Option Shares") specified in the Option Notice, such option to be exercisable
by giving, within 30 days after receipt of the Option Notice, a written
counter-notice to the Employee. If the Company elects to purchase any or all of
such Option Shares, it shall be obligated to purchase, and the Employee shall be
obligated to sell to the Company, such Option Shares at the price and terms
indicated in the Bona Fide Offer within 60 days from the date of receipt by the
Company of the Option Notice.

             (b) SALE OF OPTION SHARES TO OFFEROR. The Employee may sell,
pursuant to the terms of the Bona Fide Offer, any or all of such Option Shares
not purchased or agreed to be purchased by the Company for 60 days after the
expiration of the 30-day period during which the Company may give the aforesaid
counter-notice; provided, however, that the Employee shall not sell such Option
Shares to the Offeror if the Offeror is a competitor of the Company and the
Company gives written notice to the Employee, within 30 days of its receipt of
the Option Notice, stating that the Employee shall not sell his Option Shares to
the Offeror; and provided, further, that prior to the sale of such Option Shares
to the Offeror, the Offeror shall execute an agreement with the Company pursuant
to which the Offeror agrees to be subject to the restrictions set forth in this
Section 13. If any or all of such Option Shares are not sold pursuant

                                       9
<PAGE>   12
to a Bona Fide Offer within the time permitted above, the unsold Option Shares
shall remain subject to the terms of this Section 13.

             (c) ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. If there shall be
any change in the Common Stock of the Company through merger, consolidation,
reorganization, recapitalization, stock dividend, split-up, combination or
exchange of shares, or the like, the restrictions contained in this Section 13
shall apply with equal force to additional and/or substitute securities, if any,
received by the Employee in exchange for, or by virtue of his or her ownership
of, Option Shares.

             (d) FAILURE TO DELIVER OPTION SHARES. In the event the Employee
fails or refuses to deliver on a timely basis duly endorsed certificates
representing Option Shares to be sold to the Company pursuant to this Section 13
the Company shall have the right to deposit the purchase price for the Option
Shares in a special account with any bank or trust company in the Commonwealth
of Massachusetts, giving notice of such deposit to the Employee, whereupon such
Option Shares shall be deemed to have been purchased by the Company. All such
monies shall be held by the bank or trust company for the benefit of the
Employee. All monies deposited with the bank or trust company but remaining
unclaimed for two (2) years after the date of deposit shall be repaid by the
bank or trust company to the Company on demand, and the Employee shall
thereafter look only to the Company for payment. The Company may place a legend
on any stock certificate delivered to the Employee reflecting the restrictions
on transfer provided in this Section 13.

             (e) EXPIRATION OF COMPANY'S RIGHT OF FIRST REFUSAL. The refusal
rights of the Company forth above shall remain in effect until the earlier of
(i) the date which is ten years from the date of grant of this option or (ii)
such time, if ever, as a distribution to the public is made of shares of the
Company's Common Stock for an aggregate public offering price of at least
$5,000,000 or more pursuant to a registration statement filed under the
Securities Act of 1933, as amended, or a successor statute, at which time the
refusal rights of the Company set forth herein will automatically expire.

         14. NO EXERCISE OF OPTION IF EMPLOYMENT TERMINATED FOR MISCONDUCT. If
the employment of the Employee is terminated for "Misconduct", an Option shall
terminate on the date of such termination of employment with respect to any
shares which have become exercisable during the period commencing on the date
which is six months prior to the date upon which such Misconduct is determined
by the Board of Directors to have commenced or occurred and shall thereupon not
be exercisable to the extent of such termination. "Misconduct" is conduct, as
determined by the Board of Directors, involving one or more of the following:
(i) the substantial and continuing failure of the Employee to render services to
the Company in accordance with his assigned duties; (ii) a determination by
two-thirds of the members of the Board of Directors that the Employee has
inadequately performed the duties of his employment; (iii) disloyalty, gross
negligence, dishonesty or breach of fiduciary duty to the Company; (iv) the
commission of an act of embezzlement, fraud, disloyalty, dishonesty or
deliberate disregard of the rules or policies of the Company which results in
loss, damage or injury to the Company, whether directly or indirectly; (v) the
unauthorized disclosure of any trade secret or confidential

                                       10
<PAGE>   13
information of the Company; or (vi) the commission of an act which constitutes
unfair competition with the Company or which induces any customer of the Company
to withdraw from or not enter into a contract with the Company. In making such
determination, the Board of Directors shall act fairly and in utmost good faith
and shall give the Employee an opportunity to appear and to be heard at a
hearing before the Board of Directors or any Committee and present evidence on
his or her behalf. For the purposes of this Section 14, termination of
employment shall be deemed to occur when the Employee receives notice that his
or her employment is terminated.

         15. COMPANY'S RIGHT OF REPURCHASE.

             (a) RIGHTS OF REPURCHASE. If any of the events specified in Section
15(b) below occur, then:

                 (i) with respect to shares acquired upon exercise of an Option
             prior to the occurrence of such event, within 60 days after the
             Company receives actual knowledge of the event, and

                 (ii) with respect to shares acquired upon exercise of an Option
             after the occurrence of such event, within 60 days following the
             later of the date of such exercise or the date the Company receives
             actual knowledge of such event,

(in either case, the "Repurchase Period"), the Company shall have the right, but
not the obligation, to repurchase all, but not a portion of, the shares from the
Employee, or his or her legal representatives, as the case may be (the
"Repurchase Right"). The Repurchase Right shall be exercised by the Company by
giving the Employee, or his or her legal representative, written notice of its
intention to exercise the Repurchase Right on or before the last day of the
Repurchase Period, and, together with such notice, tendering to the Employee, or
his or her legal representative, an amount equal to the higher of the Option
price or the fair market value of the shares. The Company may, in exercising the
Repurchase Right, designate one or more nominees to purchase the shares either
within or without the Company. Upon timely exercise of the Repurchase Right in
the manner provided in this Section 15(a), Employee, or his or her legal
representative, shall deliver to the Company the stock certificate or
certificates representing the shares being repurchased, duly endorsed and free
and clear of any and all liens, charges and encumbrances.

         If shares are not purchased under the Repurchase Right, the Employee
and his or her successor in interest, if any, will hold any such shares in his
or her possession subject to all of the provisions of this Plan.

             (b) COMPANY'S RIGHT TO EXERCISE REPURCHASE RIGHT. The Company shall
have the Repurchase Right in the event that any of the following events shall
occur:

                 (i) The termination of the Employee's employment with the
Company or any other member of the Company Group, voluntarily or involuntarily,
for any

                                       11
<PAGE>   14
reason whatsoever, including death or permanent disability, prior to the time
the Option shall be fully vested as provided in the applicable Option grant;

                 (ii) The receivership or bankruptcy of the Employee, any other
creditor's proceeding affecting the Employee's ownership of any shares acquired
upon exercise of this option or the taking of any of Employee's shares acquired
upon exercise of this option by legal process, such as a levy of execution;

                 (iii) Distribution of shares held by the Employee to his or her
spouse as such spouse's joint or community interest pursuant to a decree of
dissolution, operation of law, divorce, property settlement agreement or for any
other reason, except as may be otherwise permitted by the Company; or

                 (iv) The termination of the Employee's employment by the
Company for Misconduct (as defined in Section 14 hereof).

             (c) DETERMINATION OF FAIR MARKET VALUE. The fair market value of
the shares subject to the Repurchase Right shall be, for purposes of this
Section 15, an amount per share determined on the basis of the price at which
shares of the Common Stock could reasonably be expected to be sold in an
arms-length transaction, for cash, other than on an installment basis, to a
person not employed by, controlled by, in control of or under common control
with the Company. Fair market value shall be determined by the Board of
Directors, giving due consideration to recent grants of incentive stock options
for shares of Common Stock, recent transactions involving shares of the Common
Stock, if any, earnings of the Company to the date of such determination,
projected earnings of the Company, the effect of the transfer restrictions to
which the shares are subject under law and this Agreement, the absence of a
public market for the Common Stock and such other matters as the Board of
Directors deems pertinent. The determination by the Board of Directors of the
fair market value shall be conclusive and binding. The fair market value of the
shares shall be determined as of the day on which the event occurs.

         16. LOCK-UP AGREEMENT. The Employee agrees that the Employee will not,
for such period following the effective date of the Company's initial
distribution of securities in an underwritten public offering to the general
public pursuant to a registration statement filed with the Securities and
Exchange Commission as the managing underwriter of such offering shall
reasonably request, but in any event not to exceed 120 days, directly or
indirectly, sell, offer to sell or otherwise dispose of the Company's securities
other than any securities which are included in such initial public offering.

         17. DEFINITIONS.

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

             (b) "CODE" means the Internal Revenue Code of 1986, as heretofore
                 and hereafter amended, and the regulations promulgated
                 thereunder.

                                       12
<PAGE>   15
             (c) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
                 heretofore and hereafter amended.

             (d) "SERVICE" means the performance of work for one or more members
                 of the Company Group as an employee, director, consultant or
                 other individual contributor.

             (e) "SUBSIDIARY" has the meaning set forth in Section 424(f) of the
                 Code.

         18. TERMINATION OR AMENDMENT OF PLAN. The Board may by written action
at any time terminate the Plan or make such changes in or additions to the Plan
as it deems advisable without further action on the part of the stockholders of
the Company, provided:

             (a) that no such termination or amendment shall adversely affect or
impair any then outstanding Option or related agreement without the consent of
the Participant holding such Option or related agreement; and

             (b) that if the Plan itself shall have been approved by the
stockholders of the Company, no such amendment which (i) increases the maximum
number of Shares subject to this Plan (except to the extent provided in Section
3), (ii) materially increases the benefits accruing to Participants, or (iii)
materially modifies the requirements as to eligibility for participation in the
Plan may be made without obtaining, or being conditioned upon, stockholder
approval.

        With the consent of the Participant affected, the Committee may amend
outstanding Options or related agreements in a manner not inconsistent with the
Plan. The Committee shall have the right to amend or modify the terms and
provisions of the Plan and of any outstanding Incentive Options granted under
the Plan to the extent necessary to qualify any or all such Options for such
favorable federal income tax treatment (including deferral of taxation upon
exercise) as may be afforded incentive stock options under Section 422 of the
Code.

                                       13

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