Document:

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                                                                    EXHIBIT 10.1

                                                  OPEN PORT TECHNOLOGY, INC.

                       1995 INCENTIVE STOCK OPTION PLAN

1.    Purpose
      -------

  The purpose of the Plan is to benefit the Company and its shareholders by
having the Company offer certain Employees a favorable opportunity to acquire
shares of Stock over a period of years, thereby giving such Employees a
permanent stake in the growth and prosperity of the Company, encouraging such
Employees to continue their service with the Company, and motivating such
Employees to devote their best efforts to the business and profitability of the
Company.  The Plan is not intended to qualify as an "employee stock purchase
plan" within the meaning of Code Section 423.

2.    Definitions
      -----------

  As used herein, the following definitions shall apply.

     2.1.    "Board" shall mean the Board of Directors of the Company, or a
committee appointed by the Board to perform all or some of the Board's duties
under this Plan.

     2.2.    "Code" shall mean the Internal Revenue Code of 1986, as amended.

     2.3.    "Company" shall mean Open Port Technology, Inc., an Illinois
corporation.
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     2.4.    "Date of Grant" shall mean the day and year written in the Option
Agreement relating to such Option.  The Date of Grant for an Option granted to
an Employee may be any date on or after the Employee's first day of employment
with the Company even if such date is prior to the effective date of this Plan.

     2.5.    "Director" shall mean any duly elected and qualified member of the
Board.

     2.6.    "Disability" shall mean any medically determinable physical or
mental impairment that, in the opinion of the Board, based upon medical reports
and other evidence satisfactory to the Board, can reasonably be expected to
prevent an Employee from performing substantially all of his customary duties of
employment for a continuous period of not less than twelve (12) months.

     2.7.    "Employee" shall mean any salaried employee of the Company.

     2.8.    "Exercise Price" shall mean the purchase price for shares of Stock
purchased pursuant to the exercise or partial exercise of an Option.

     2.9.    "Fair Market Value" shall mean, with respect to the valuation of
any shares of Stock, (i) if the Stock is publicly traded, the closing price of
the Stock on the trading day immediately preceding the business day during which
the shares of Stock are to be valued pursuant hereto, and (ii) if the Stock is
not publicly traded, the fair market value of the shares of Stock as reasonably
determined by the Board consistent with past practice.

     2.10.   "IPO" shall mean the closing of an initial public offering of the
common stock of the Company registered under the Securities Act.

                                       2
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     2.11.   "Option" shall mean any right to purchase Stock which has been
granted by the Board pursuant to the Plan.

     2.12.   "Option Agreement" shall mean an agreement executed by an officer
of the Company and an Employee evidencing the grant of an Option.

     2.13.   "Option Shares" shall mean the shares of Stock transferred pursuant
to the exercise of an Option.

     2.14.   "Optionee" shall mean any Employee who receives an Option pursuant
to the Plan.

     2.15.   "Plan" shall mean the Open Port Technology, Inc. 1995 Incentive
Stock Option Plan.

     2.16.   "Securities Act" shall mean the Securities Act of 1933, as amended.

     2.17.   "Stock" shall mean the no par value common stock of the Company.

3.    Shares Subject to the Plan
      --------------------------

  Except as provided in Section 4(a) hereof, the aggregate amount of Stock for
which Options may be granted shall not exceed 803,213 shares less (at the time
of the grant of any Option) all shares subject to any option granted under the
Open Port Technology, Inc. 1995 Non-Employee Stock Option Plan.

                                       3
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  Any shares subject to unexercised portions of Options which shall have
terminated, been canceled, or expired may again be made subject to Options.  In
addition, shares that have been repurchased by the Company may again be made
subject to Options.

4.    Adjustment
      ----------

     4.1.    The number of shares subject to the Plan and to Options shall be
adjusted as follows: (i) in the event that the number of shares of outstanding
Stock is changed by reason of a stock dividend, stock split, recapitalization or
combination of shares, the number of shares of Stock subject to the Plan and to
Options shall be proportionately adjusted; or (ii) in the event of any merger,
consolidation or reorganization of the Company with any other corporation or
corporations pursuant to which the holders of shares of Stock surrender shares
of Stock in exchange for other shares of stock or securities, there shall be
substituted for each share of Stock then subject to the Plan and to Options the
number and kind of shares of stock or other securities which the holders of
shares of Stock are entitled to receive for each share of Stock surrendered
pursuant to the transaction and the Exercise Price shall be proportionately
adjusted.

     4.2.    The number of shares subject to the Plan and Options shall not be
adjusted as a result of the issuance of shares of Stock by the Company (other
than an issuance described in subsection (a) of this Section 4), it being
understood that, upon such an issuance of shares of Stock, holders of Options
and holders of Option Shares will have a corresponding dilution of their
proportionate interests in the Stock.

                                       4
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5.    Administration of the Plan
      --------------------------

  The following provisions shall govern the administration of the Plan:

     5.1.    The Plan shall be administered by the Board.

     5.2.    The Board is authorized (but only to the extent not contrary to the
express provisions of the Plan) to interpret the Plan, to prescribe, amend and
rescind rules and regulations relating to the Plan and to the Options, to
determine the form and content of Options (except to the extent the form and
content of the Options are specified herein), and to make such other
determinations and exercise such other powers and authority as may be necessary
or advisable for the administration of the Plan.  Each Option granted shall be
evidenced by an Option Agreement in such form as may be determined by the Board.

     5.3.     A majority of the members of the Board eligible to act shall
constitute a quorum for purposes of acting with respect to the Plan, and the
action of a majority of the members present who are eligible to act at any
meeting at which a quorum is present shall be deemed the action of the Board.

     5.4.    All decisions, determinations and interpretations of the Board made
in good faith with respect to the Plan and Option Agreements shall be final and
conclusive on all persons affected thereby.

     5.5.    Neither the Board nor any member thereof shall be liable for any
act, omission, interpretation, construction or determination made in connection
with the Plan in good faith, and the members of the Board shall be entitled to
indemnification and reimbursement by the Company in respect of any claim, loss,
damage or expense (including counsel fees) arising therefrom to the full extent
permitted by law.

                                       5
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     5.6.    The aggregate fair market value of the Option Shares (determined as
of the Date of Grant) for which any Employee may be granted an Option or Options
which will first be exercisable in any single calendar year, taking account of
any special vesting provisions provided in an Option Agreement, may not exceed
$100,000.

6.    Eligibility
      -----------

  The Board is authorized to select Employees to receive Options depending on
the availability of shares of Stock for which Options may be granted pursuant to
the terms of the Plan.  In the event Options are granted pursuant to the Plan,
the Board is authorized to select the particular Employees who will receive such
Options and the number of shares of Stock under each such Option.  In granting
Options, the Board shall take into consideration the contribution an Employee
has made or may make to the success of the Company and such other factors as the
Board shall determine.  In no event shall any Employee or his or her legal
representatives, heirs, legatees, distributees or successors have any right to
participate in the Plan except to such extent, if any, as the Board shall
determine.  No Options will be granted to any Employee who owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any parent or subsidiary corporation unless the Exercise
Price is at least one hundred ten percent (110%) of the Fair Market Value at the
Date of Grant.

7.    Term of the Plan
      ----------------

  The Plan shall continue in effect until terminated pursuant to Section 20
hereof; or until there is no more stock as to which an Option may be granted and
no Options are outstanding; provided, however, that all Options must be granted
within 10 years from the effective date of the Plan.

8.    Restrictions on Transfers
      -------------------------

     8.1.    The Options may not be transferred, assigned, pledged or
hypothecated in any way and will not be subject to execution, attachment or
similar process,

                                       6
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except as provided by this Plan and except by will or under the laws of descent
and distribution (subject to the repurchase option described in Section 18
hereof).

     8.2.    The Option Shares may not be transferred, assigned, pledged or
hypothecated, voluntarily, involuntarily or by operation of law, except as
provided by this Plan and any Option Agreement pertaining to such Options.

     8.3.    An Option will terminate immediately upon any attempted transfer,
assignment, pledge or hypothecation of such Option in violation of this Section
8, and any attempted transfer, assignment, pledge or hypothecation of any Option
Shares in violation of this Section 8 will be void without further action by the
Company and have no effect.

9.    Restrictions on Voting
      ----------------------

  Until the occurrence of an IPO, Option Shares will be voted by the then chief
executive officer of the Company, pursuant to irrevocable proxies in the form
attached hereto as Exhibit B, executed by the Optionee upon the exercise of an
Option.

10.    Vesting of Options
       ------------------

  Options are exercisable only upon and after vesting.  Except as provided in
Section 11 hereof and except as otherwise may be specifically provided in an
Option Agreement, Options shall vest according to the following schedule:

     10.1.  as to one-fifth (1/5) of the Option Shares on the first anniversary
of the Date of Grant;

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     10.2.  as to an additional one-fifth (1/5) of the Option Shares on the
second anniversary of the Date of Grant; and

     10.3.  as to an additional one-fifth (1/5) of the Option Shares on the
third anniversary of the Date of Grant;

     10.4.  as to an additional one-fifth (1/5) of the Option Shares on the
fourth anniversary of the Date of Grant; and

     10.5.  as to the remaining one-fifth (1/5) of the Option Shares on the
fifth anniversary of the Date of Grant.

  The above vesting schedule assumes the Optionee's continuous employment with
the Company.  No Option or part thereof shall vest after the date the Optionee
ceases to be an Employee for any reason, and any unvested portion of an Option
theretofore held by such an Optionee shall terminate as of that date.

11.    Special Vesting Provisions
       --------------------------

  In the event of the proposed dissolution or liquidation of the Company, the
Option will terminate immediately prior to the consummation of such proposed
action, unless otherwise provided by the Board.  The Board may, in the exercise
of its sole discretion in such instances, declare that any Option shall
terminate as of a date fixed by the Board and give each Optionee the right to
exercise his or her Option as to all or any part of the Optioned Stock,
including Shares as to which the Option would not otherwise be exercisable.  In
the event of a proposed sale of all or substantially all of the assets of the
Company, or the merger of the Company with or into another corporation, the
Board may provide for the Optionee to have the right to exercise the Option as
to all of the Option Stock, including Shares as to which the Option would not
otherwise be exercisable.  The Board may notify the Optionee that the Option
shall be fully exercisable and the Option will terminate upon the consummation
of such sale or merger.

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12.    When Options May Be Exercised
       -----------------------------

     12.1.    Except as provided in subsections (b) and (c) of this Section 12,
a vested Option or the vested portion of an Option, shall be exercised, if at
all, by the Optionee at any time before the tenth anniversary of its Date of
Grant.

     12.2.    If an Optionee ceases to be an Employee for any reason, such
Optionee's vested Options must be exercised, if at all, not later than thirty
(30) days following the date such Optionee ceases to be an Employee. Any
unvested portion of an Option shall terminate immediately upon the cessation of
employment of the Optionee holding the Option.

     12.3.    In the event of the occurrence of any of the events described in
Section 11 hereof and the adoption by the Board of a resolution providing for
the exercise of the rights provided to the Board under Section 11 hereof, the
vested Options shall not be exercisable after the occurrence of such event.  The
Company shall notify all Optionees of any such impending sale.  With respect to
any Optionee that desires to exercise the vested portion of his or her Option
prior to such event, the Company may instead pay such Optionee the excess of the
amount received or to be received for the Option Shares over the amount that
would have been received from such Optionee upon the exercise of the vested
portion of such Option.

     12.4.    Unless the Optionee desires to forego the benefit of the Option
being considered an incentive stock option under Section 422 of the Code, no
Option or any part thereof may be exercised by the Optionee while there is
outstanding any incentive stock option which was granted by the Company to the
Optionee at an earlier time.

13.    Exercise Price
       --------------

  The Exercise Price shall be $1.62 per share for Options granted on or before
the earlier of (i) the adoption by the Board of a resolution changing the
Exercise Price or (ii) an IPO.

                                       9
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At all times, when established, the Exercise Price shall be equal to or greater
than the Fair Market Value.

14.    Exercise of Option
       ------------------

  During the Optionee's lifetime, Options shall be exercisable only by the
Optionee or his legal representative or guardian.  Options shall not be
exercisable by the spouse of any Optionee during such Optionee's lifetime,
unless such spouse is acting in his or her capacity as the legal representative
or guardian of the Optionee.  In the event of the Optionee's death, the Option
shall be exercisable by the person or entity (including the Optionee's estate)
that has obtained the Optionee's rights under the Option by will or under the
laws of descent and distribution.

  Options shall be exercised if at all, by submitting to the Company (a) a
Notice of Exercise in the form attached hereto as Exhibit A, (b) the Irrevocable
Proxy, duly executed, (c) any other written representations, covenants, and
undertakings that the Company may prescribe pursuant to the Shareholders
Agreements or to satisfy securities laws and regulations or other requirements,
and (d) a certified or bank cashier's check payable to the order of the Company
in an amount equal to the full purchase price of the shares to be purchased.

  Upon receipt of the Notice of Exercise (subject to Sections 15, 16, and 17 of
this Agreement), the Company shall issue a new certificate or certificates to
the holder of the Option.  The certificate or certificates for the shares as to
which the Option shall have been exercised shall be registered in the name of
the holder of the Option and shall be delivered to or upon the written order of
the holder of the Option.  The shares shall bear a legend substantially in the
following form:

     "THE SHARES SUBJECT TO THIS CERTIFICATE ARE SUBJECT TO
     TRANSFER AND VOTING RESTRICTIONS SET FORTH IN THE OPEN PORT
     TECHNOLOGY, INC. 1995 INCENTIVE STOCK OPTION PLAN (THE
     "PLAN"). COPIES OF THE PLAN ARE ON FILE IN THE OFFICE OF THE
     SECRETARY OF THE CORPORATION. BY ACCEPTING THE SHARES OF
     STOCK EVIDENCED BY THIS CERTIFICATE, THE HOLDER AGREES TO BE
     BOUND BY THE PLAN AS IT MAY BE AMENDED FROM TIME TO TIME."

                                       10
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15.    Securities Law Restrictions
       ---------------------------

  The Company shall not be obligated to issue any stock certificates evidencing
a transfer upon exercise of an Option, until, in the opinion of the Company and
its counsel, such transfer and issuance of stock certificates will not involve
any violation of applicable federal and state securities laws, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
upon which the Stock may then be listed.  Acceptance of an Option by an Optionee
shall constitute the Optionee's agreement (binding on any person who succeeds to
the Optionee's rights and obligations under the Option Agreement by reason of
the Optionee's death) that, if the Stock is not publicly traded as of the date
the Option is exercised, any shares of Stock purchased upon the exercise of the
Option shall be acquired for the Optionee's own account and not with a view to
distribution and that each notice of the exercise of any portion of the Option
shall be accompanied by a written representation and covenant signed by the
Optionee, in such form as may be specified by the Company, confirming such
agreement and containing such other provisions as may be prescribed by the
Company.  The Company may, at its election, release an Optionee from the
Optionee's agreement to take for the Optionee's own account and not with a view
to distribution of the shares of Stock purchased upon exercise of an Option if,
in the opinion of the Company, such covenant ceases to be necessary for
compliance with the applicable federal and state securities laws (including the
rules and regulations promulgated thereunder) and the requirements of any stock
exchange upon which the Stock may then be listed.

  If the shares purchased upon exercise of an Option are not covered by an
effective registration statement under the Securities Act, the Company may place
the following legend (or a legend which is substantially similar to the
following legend) upon, and issue appropriate stock transfer instructions with
respect to, the certificate or certificates representing the shares transferred
upon exercise of the Option:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
     "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS
     (THE STATE LAWS"), AND SUCH SHARES MAY NOT BE TRANSFERRED
     UNLESS (A) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT
     AND APPLICABLE STATE LAWS COVERING SUCH TRANSFER IS THEN IN
     EFFECT; OR (B) AN OPINION OF COUNSEL, SATISFACTORY TO THE
     CORPORATION, HAS BEEN FURNISHED STATING THAT SUCH

                                       11
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     TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT AND APPLICABLE STATE LAWS."

16.    Listing or Registration of Stock
       --------------------------------

  Each Option is subject to the requirement that, if at any time the Board shall
determine, in its discretion, that the listing, registration or qualification of
the shares of Stock subject to the Option upon any securities exchange or under
any state or federal law, or the consent or approval of any government
regulatory body, is necessary or desirable as a condition of, or in connection
with, the granting or exercise of the Option or the issuance or purchase of
shares under the Option, the Option may not be exercised in whole or in part
until such listing, registration, qualification, consent or approval shall have
been effected or obtained free of any conditions not acceptable to the Board.
The Company shall be under no obligation to effect or obtain any such listing,
registration, qualification, consent or approval if the Board shall determine,
in its discretion, that such action would not be in the best interests of the
Company.  The Company shall not be liable for damages due to a delay in the
delivery or issuance of any stock certificates for any reason whatsoever,
including, but not limited to, a delay caused by listing, registration or
qualification of the shares of Stock subject to an Option under any securities
exchange or under any federal or state law, or by the effecting or obtaining of
any consent or approval of any governmental body with respect to the granting or
exercise of the Option or the issue or purchase of shares under the Option.

17.    Withholding of Taxes
       --------------------

  The Board may make such provisions and take such steps as it may deem
necessary or appropriate for the withholding of any taxes which the Company is
required by any law or regulation of any governmental authority, whether
federal, state or local, domestic or foreign, to withhold in connection with any
Option, including, but not limited to, the withholding of the issuance of all or
any portion of the shares of Stock subject to the Option until the holder of the
Option reimburses the Company for the amount required to be withheld with
respect to such taxes, canceling any portion of the issuance of the shares of
Stock subject to the Option in an amount sufficient to reimburse the Company for
such amount, deducting from the Optionee's wages an amount sufficient to
reimburse the Company for such amount, or taking any other action reasonably
required to satisfy the withholding obligation of the Company.

                                       12
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18.    Repurchase Option
       -----------------

  The Options and Option Shares are subject to the rights of the Company to
repurchase or acquire the Option Shares upon the occurrence of certain events,
including but not limited to: death or disability of the Optionee; cessation of
employment with the Company for any reason; or a transfer of the Option or
Option Shares, voluntarily, involuntarily or by operation of law.  The terms of
this repurchase option with respect to Option Shares shall be set forth in the
Option Agreement pertaining to such Options.

19.    Modification of Options
       -----------------------

  At any time and from time to time the Board may provide for the modification,
extension, or renewal of any outstanding Option, provided that no such
modification, extension or renewal shall impair the Option in any respect
without the consent of the holder of the Option.

20.    Amendment and Termination of the Plan
       -------------------------------------

  The Board may provide for the alteration, suspension or discontinuation of the
Plan, except that no such action may increase the benefits accruing to Employees
under the Plan, increase (other than as provided in Section 4(a) hereof) the
maximum number of shares permitted to be issued upon the exercise of Options, or
materially modify the requirements as to eligibility for participation in the
Plan unless such action is subject to approval by the shareholders of the
Company.

21.    Shareholder Rights
       ------------------

  A holder of an Option shall have none of the rights of a shareholder with
respect to the shares of Stock subject to the Option until the transfer of such
shares to him or her has been duly recorded on the stock transfer books of the
Company upon the exercise of the Option.

                                       13
<PAGE>

22.    Continued Employment Not Presumed
       ---------------------------------

  Nothing in the Plan or any document describing it nor the grant of an Option
shall give any Optionee the right to continue in employment with the Company or
affect the right of the Company to terminate the employment of any Optionee with
or without cause.

                                       14
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23.    Effective Date
       --------------

  The foregoing Open Port Technology, Inc. 1995 Incentive Stock Option Plan is
hereby adopted by the Company as of October 19, 1995.

                                   Open Port Technology, Inc.

                                        /s/ Randy S. Storch
                                   By:  ------------------------------

                                        Randy S. Storch, President

                                       15
<PAGE>

                                   EXHIBIT A

                                      TO

                          OPEN PORT TECHNOLOGY, INC.

                       1995 INCENTIVE STOCK OPTION PLAN

                              NOTICE OF EXERCISE

               (to be executed only upon exercise of the Option)

  Reference is made to the Open Port Technology, Inc. 1995 Incentive Stock
Option Agreement, dated as of ___________________ _____, 1995 (the "Option
Agreement"), between Open Port Technology, Inc., an Illinois corporation (the
"Company"), and  _____________________________________ (the "Optionee").
Capitalized terms used herein and not otherwise defined have the meanings
assigned to such terms in the Option Agreement.

     23.1.    The Optionee hereby irrevocably exercises the option for and
purchases _______________ shares of Stock.

     23.2.    The full purchase price for the shares of Stock being purchased
hereunder, calculated in accordance with the Option Agreement, is
$_______________, and the Optionee is delivering to the Company simultaneously
with the delivery of this Notice of Exercise a certified or bank cashier's check
payable to the order of the Company in such amount.

     23.3.    The shares of Stock being purchased hereunder are being acquired
for the Optionee's own account and not with a view to distribution thereof in
violation of applicable Federal or state securities laws.
<PAGE>

     23.4.    The Optionee requests that certificates for the shares of Stock
being purchased hereunder be issued in the name of and delivered to the Optionee
at the following address:

                           _________________________
                           _________________________
                           _________________________
                           _________________________

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     Dated as of ____________________    ______________________________

                                         (Signature)

                                         ______________________________

                                         (Name)

                                         ______________________________

                                         (Signature of Spouse)

                                         ______________________________

                                         (Name)

                                       3
<PAGE>

                                   EXHIBIT B

                                      TO

                  OPEN PORT TECHNOLOGY, INC. (the "Company")

                 1995 INCENTIVE STOCK OPTION PLAN (the "Plan")

                               IRREVOCABLE PROXY

  The undersigned hereby revokes any previous proxies and irrevocably appoints
Randy S. Storch (the "Proxyholder") and his successor, pursuant to the Plan as
the proxy of the undersigned to attend any and all meetings of the shareholders
of the Company, and any adjournments or postponements of such meetings
(collectively, a "Meeting"), to vote for and in the name, place and stead of the
undersigned at any Meeting all shares of common stock, no par value per share
(the "Stock"), owned by the undersigned on the date of this proxy and any other
shares of Stock hereafter acquired by the undersigned (collectively, the "Proxy
Shares"), to execute written consents to corporate action, and to represent and
otherwise act for the undersigned on any and all matters with the same force and
effect as if the undersigned were personally present at such meeting or were
executing such consent.

  This proxy is coupled with an interest and is expressly made irrevocable and
will be effective until the earliest to occur of (i) the consummation of an
initial public offering by the Company that is registered under the Securities
Act of 1933, as amended or (ii) the expiration of ten (10) years from the
execution date hereof.  The undersigned acknowledges that monetary damages would
be an inadequate remedy for a breach of the provisions of this proxy and that
(in addition to any other remedy available at law) the obligations of the
undersigned and the rights of the Proxyholder are specifically enforceable.

  The undersigned authorizes the Proxyholder to substitute any other person or
entity to act under this proxy, to revoke any such substitution, and to file
this proxy and any substitution or revocation of this proxy with the Secretary
of the Company.

     Dated as of ____________________      ______________________________

                                           (Signature)

                                       4
<PAGE>

                                        ______________________________

                                        (Name)

                                        ______________________________

                                        (Signature of Spouse)

                                        ______________________________

                                        (Name)

                                       5
<PAGE>

                             AMENDMENT NUMBER ONE

                                      TO

                          OPEN PORT TECHNOLOGY, INC.

                       1995 INCENTIVE STOCK OPTION PLAN

     1.  Reference to Plan
         -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan; as used herein, the term "Plan" shall refer to the
Plan as modified by this Amendment.  The terms used herein which are defined in
the Plan shall have the meanings provided for in the Plan, unless otherwise
defined herein.  Except as expressly modified hereby, all of the terms and
provisions of the Plan shall continue in full force and effect.  A copy of this
Amendment shall be attached to and made a part of the Plan.

     2.  Amendment to Section 2(g) of the Plan
         ---------------------------- --------

     Section 2(g) of the Plan is hereby amended so as to read in its entirety as
follows:

          (g) "Employee" shall mean any salaried employee of the Company or of
     any "Parent" or "Subsidiary" of the Company (as such terms are defined in
     Section 424 of the Code); any references to employment with the Company,
     shall be deemed to include the Company and any Parent or Subsidiary of the
     Company, as the context may require.

     3.  Effective Date
         --------------

     This Amendment to the Plan is hereby adopted by the Committee as of the 1st
day of February, 1996.

                                                      Open Port Technology, Inc.
<PAGE>

                             AMENDMENT NUMBER TWO

                                      TO

                          OPEN PORT TECHNOLOGY, INC.

                       1995 INCENTIVE STOCK OPTION PLAN

     1.  Reference to Plan
         -----------------

         Reference is hereby made to that certain Open Port Technology, Inc.
1995 Incentive Stock Option Plan, as amended by Amendment Number One to the Open
Port Technology, Inc. 1995 Incentive Stock Option Plan dated as of February 1,
1996; as used herein, the term "Plan" shall refer to the Plan as modified by
Amendment Number One and by this Amendment. The terms used herein which are
defined in the Plan shall have the meanings provided for in the Plan, unless
otherwise defined herein. Except as expressly modified hereby, all of the terms
and provisions of the Plan shall continue in full force and effect. A copy of
this Amendment shall be attached to and made a part of the Plan.

     2.  Amendment to Section 2(q) of the Plan
         -------------------------------------

         Section 2(q) of the Plan is hereby amended so as to read in its
entirety as follows:

               (q)  "Stock" shall mean the common stock, par value $.001 per
         share, of the Company.

     3.  Amendment to Section 10 of the Plan
         -----------------------------------

         Section 10 of the Plan is hereby amended so as to read in its entirety
as follows:
<PAGE>

                    Options are exercisable only upon and after vesting. Except
          as provided in Section 11 hereof and except as otherwise may be
          specifically authorized by the Board and provided in an Option
          Agreement, Options shall vest according to the following schedule:

               (a)  as to one-fourth (1/4th) of the Option Shares, on the first
                    anniversary of the Date of Grant; and

               (b)  as to an additional one-thirty-sixth (1/36th) of the Option
                    Shares, on the same calendar month day as the Date of Grant
                    occurring in each of the thirty-six (36) calendar months
                    occurring after the first anniversary of the Date of Grant.

                    The above vesting schedule assumes the Optionee's continuous
          employment with the Company. No Option or part thereof shall vest
          after the date the Optionee ceases to be an Employee for any reason,
          and any unvested portion of an Option theretofore held by such an
          Optionee shall terminate as of that date.

     4.  Effective Date
         --------------

         This Amendment to the Plan is hereby adopted by the Board as of the
30th day of April, 1996.

                                            Open Port Technology, Inc.

                                       2

<PAGE>

                            AMENDMENT NUMBER THREE

                                      TO

                          OPEN PORT TECHNOLOGY, INC.

                       1995 INCENTIVE STOCK OPTION PLAN

     1.  Reference to Plan
         -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan, as amended by Amendment Number One to the Open Port
Technology, Inc. 1995 Incentive Stock Option Plan, dated as of February 1, 1996,
and Amendment Number Two to Open Port Technology, Inc. 1995 Incentive Stock
Option Plan.  As used herein, the term "Plan" shall refer to the Open Port
Technology, Inc 1995 Incentive Stock Option Plan as modified by Amendment Number
One, Amendment Number Two, and by this Amendment Number Three.  The terms used
herein which are defined in the Plan shall have the meanings provided for in the
Plan, unless otherwise defined herein.  Except as expressly modified hereby, all
of the terms and provisions of the Plan shall continue in full force and effect.
A copy of this Amendment Number Three shall be attached to and made a part of
the Plan.

     2.  Amendment to Section 3 of the Plan
         ----------------------------------

     The first paragraph of Section 3 of the Plan is hereby amended so as to
read in its entirety as follows:

          Except as provided in Section 4(a) hereof, the aggregate amount of
     Stock for which Options may be granted shall not exceed 3,682,695 shares
     (based on the capitalization of the Company existing as of January 1, 1997)
     less (at the time of the grant of any Option) all shares subject to any
     option granted under the Option Port Technology, Inc. 1995 Non-Employee
     Stock Option Plan, as amended.

     3.  Effective Date
         --------------
<PAGE>

     This Amendment Number Three to the Plan is hereby adopted by the Board as
of February 6, 1997 and approved by the shareholders of the Company as of
February 11, 1997.

                                                  Open Port Technology, Inc.

                                       2

<PAGE>

                             AMENDMENT NUMBER FOUR
                                      TO
                          OPEN PORT TECHNOLOGY, INC.
                       1995 INCENTIVE STOCK OPTION PLAN

24.  Reference to Plan
     -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan, as amended by Amendment Number One to the Open Port
Technology, Inc. 1995 Incentive Stock Option Plan, dated as of February 1, 1996,
Amendment Number Two to Open Port Technology, Inc. 1995 Incentive Stock Option
Plan, dated as of April 30, 1996, and Amendment Number Three to Open Port
Technology Stock Option Plan, dated as of February 11, 1997.  As used herein,
the term "Plan" shall refer to the Open Port Technology, Inc. 1995 Incentive
Stock Option Plan as modified by Amendment Number One, Amendment Number Two,
Amendment Number Three and by this Amendment Number Four.  The terms used herein
which are defined in the Plan shall have the meanings provided for in the Plan,
unless otherwise defined herein.  Except as expressly modified hereby, all of
the terms and provisions of the Plan shall continue in full force and effect.  A
copy of this Amendment Number Four shall be attached to and made a part of the
Plan.

25.  Amendment to Section 2 of the Plan
     ----------------------------------

     Section 2 of the Plan is hereby amended by adding the following new
paragraph (r) at the end thereof:

          (r)  "Change of Control Event" shall mean, and be deemed to have
               occurred:  (i) upon the acquisition at any time (excluding any
               acquisition in connection with any public offering of equity
               securities of the Company pursuant to a registration statement
               filed under the Securities Act) by a "person" or "group" (as used
               in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
               1934, as amended (the "Exchange Act")) (excluding, for this
               purpose, the Company or any Subsidiary or any employee benefit
               plan of the Company or any Subsidiary) of the beneficial
               ownership (as defined in Rule 13d-3 promulgated under the
               Exchange Act), directly or indirectly, of securities representing
               fifty percent (50%) or more of the combined voting power of the
               then-outstanding securities of the Company; or (ii) in the event
               that the Board or the shareholders of the Company shall approve a
               merger, share exchange (other than a merger or share exchange
               with a wholly-owned subsidiary), consolidation, or sale or other
               disposition of substantially all of the assets of the Company, as
               a
<PAGE>

               result of which immediately following such transaction the
               shareholders of the Company shall not hold, directly or
               indirectly, a majority of the voting power of the then-
               outstanding securities of: (A) in the case of a merger or
               consolidation, the surviving or resulting corporation; (B) in the
               case of a share exchange, the acquiring corporation; or (C) in
               the case of a sale or other disposition of substantially all of
               the assets, each surviving, resulting or acquiring corporation
               which, immediately following the transaction, holds fifty percent
               (50%) or more of the assets of the Company.

26.  Amendment of Section 11 of the Plan
     -----------------------------------

     Section 11 of the Plan is hereby amended by adding the following new
paragraph at the end of thereof:

          Further, notwithstanding anything to the contrary in Section 10 or
     this Section 11, upon the occurrence of a Change of Control Event, with
     respect to each Option, if three (3) years has not elapsed since the Date
     of Grant, then the vesting of the Option shall be accelerated so that any
     portion of the Option that would have vested within three (3) years from
     the Date of Grant, shall automatically vest as of the date of the Change of
     Control Event.  The remaining unvested portion shall continue to vest
     according to above schedule (as if three (3) years had elapsed since the
     Date of Grant).

27.  Amendment of Section 18 of the Plan
     ------------------------------------
     Section 18 of the Plan is hereby amended so as to read in its entirety as
follows:

          The Options and the Option Shares are subject to the rights of the
     Company to repurchase or acquire the Option Shares upon the occurrence of
     certain events, including but not limited to:  a transfer of the Option or
     Option Shares, voluntarily, involuntarily or by operation of law or
     cessation of employment with the Company for any reason, but excluding in
     any instance upon the occurrence of a Change of Control Event.  The terms
     of this repurchase option with respect to Option Shares shall be set forth
     in the Option Agreement pertaining to such Options.

28.  Effective Date
     --------------
     This Amendment Number Four to the Plan is hereby adopted by the Board as of
the 20th day of November, 1997.

                                                  Open Port Technology, Inc.

                                       2

<PAGE>

                             AMENDMENT NUMBER FIVE
                                      TO
                          OPEN PORT TECHNOLOGY, INC.
                       1995 INCENTIVE STOCK OPTION PLAN

29.  Reference to Plan
     -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan, as amended by Amendment Number One to the Open Port
Technology, Inc. 1995 Incentive Stock Option Plan, dated as of February 1, 1996,
Amendment Number Two to Open Port Technology, Inc. 1995 Incentive Stock Option
Plan, dated as of April 30, 1996, Amendment Number Three to Open Port Technology
Stock Option Plan, dated as of February 11, 1997, and Amendment Number Four to
Open Port Technology Stock Option Plan, dated as of November 20, 1997.  As used
herein, the term "Plan" shall refer to the Open Port Technology, Inc. 1995
Incentive Stock Option Plan as modified by Amendment Number One, Amendment
Number Two, Amendment Number Three, Amendment Number Four, and this Amendment
Number Five.  The terms used herein which are defined in the Plan shall have the
meanings provided for in the Plan, unless otherwise defined herein.  Except as
expressly modified hereby, all of the terms and provisions of the Plan shall
continue in full force and effect.  A copy of this Amendment Number Five shall
be attached to and made a part of the Plan.

30.  Amendment to Section 3 of the Plan
     ----------------------------------

     The first paragraph of Section 3 of the Plan is hereby amended so as to
read in its entirety as follows:

          Except as provided in Section 4(a) hereof, the aggregate amount of
     Stock for which Options may be granted shall not exceed 4,432,695 shares
     (based on the capitalization of the Company existing as of January 1, 1997)
     less (at the time of the grant of any Option) all shares subject to any
     option granted under the Open Port Technology, Inc. 1995 Non-Employee Stock
     Option Plan, as amended.

31.  Effective Date
     --------------

     This Amendment Number Five to the Plan is hereby adopted by the Board as of
the 23rd day of April, 1998 and approved by the Shareholders of the Company as
of June 15, 1998.

                                                  Open Port Technology, Inc.
<PAGE>

                             AMENDMENT NUMBER SIX
                                      TO
                          OPEN PORT TECHNOLOGY, INC.
                       1995 INCENTIVE STOCK OPTION PLAN

32.  Reference to Plan
     -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan, as amended by Amendment Number One to the Open Port
Technology, Inc. 1995 Incentive Stock Option Plan, dated as of February 1, 1996,
Amendment Number Two to Open Port Technology, Inc. 1995 Incentive Stock Option
Plan, dated as of April 30, 1996, Amendment Number Three to Open Port Technology
Stock Option Plan, dated as of February 11, 1997, Amendment Number Four to Open
Port Technology Stock Option Plan, dated as of November 20, 1997, and Amendment
Number Five to Open Port Technology Stock Option Plan, dated as of June 15,
1998.  As used herein, the term "Plan" shall refer to the Open Port Technology,
Inc. 1995 Incentive Stock Option Plan as modified by the foregoing Amendments
and this Amendment Number Six.  The terms used herein which are defined in the
Plan shall have the meanings provided for in the Plan, unless otherwise defined
herein.  Except as expressly modified hereby, all of the terms and provisions of
the Plan shall continue in full force and effect.  A copy of this Amendment
Number Six shall be attached to and made a part of the Plan.

33.  Amendment to Section 14 of the Plan
     -----------------------------------

     The second paragraph of Section 14 of the Plan is hereby amended so as to
read in its entirety as follows:

          Options shall be exercised if at all, by submitting to the Company (a)
     a Notice of Exercise in the form attached hereto as Exhibit A, (b) the
     Irrevocable Proxy, duly executed, (c) any other written representations,
     covenants, and undertakings that the Company may prescribe pursuant to the
     Shareholders Agreements or to satisfy securities laws and regulations or
     other requirements, and (d) a certified or bank cashier's check payable to
     the order of the Company, or any other form of payment determined to be
     acceptable by the Board, in its sole discretion, in an amount equal to the
     full purchase price of the shares to be purchased.

34.  Amendment to Exhibit A to the Plan
     ----------------------------------

     Paragraph (b) of Exhibit A to the Plan is hereby amended so as to read in
its entirety as follows:

          (b) The full purchase price for the shares of Stock being purchased
     hereunder, calculated in accordance with the Option Agreement, is
     $____________, and the Optionee is delivering to the Company simultaneously
<PAGE>

     with the delivery of this Notice of Exercise a certified or bank
     cashier's check payable to the order of the Company in such amount,
     or any other form of payment determined to be acceptable by the
     Board, in its sole discretion.

35.  Effective Date
     --------------

     This Amendment Number Six to the Plan is hereby adopted by the Board as of
the 31st day of July, 1998.

                                          Open Port Technology, Inc.

                                       2

<PAGE>

                           AMENDMENT NUMBER SEVEN TO
                          OPEN PORT TECHNOLOGY, INC.
                       1995 INCENTIVE STOCK OPTION PLAN

36.  Reference to Plan
     -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan (the "Plan"), as amended by Amendment Number One to
the Plan, dated as of February 1, 1996, Amendment Number Two to the Plan, dated
as of April 30, 1996, Amendment Number Three to the Plan, dated as of February
11, 1997, Amendment Number Four to the Plan, dated as of November 20, 1997,
Amendment Number Five to the Plan, dated as of June 15, 1998 and Amendment
Number Six to the Plan, dated as of July 31, 1998.  As used herein, the term
"Plan" shall refer to the Open Port Technology, Inc. 1995 Incentive Stock Option
Plan as modified by Amendment Number One, Amendment Number Two, Amendment Number
Three, Amendment Number Four, Amendment Number Five, Amendment Number Six and
this Amendment Number Seven.  The terms used herein which are defined in the
Plan shall have the meanings provided for in the Plan, unless otherwise defined
herein.  Except as expressly modified hereby, all of the terms and provisions of
the Plan shall continue in full force and effect.  A copy of this Amendment
Number Seven shall be attached to and made a part of the Plan.

37.  Amendment to Section 3 of the Plan
     ----------------------------------
     The first paragraph of Section 3 of the Plan is hereby amended so as to
read in its entirety as follows:

          Except as provided in Section 4(a) hereof, the aggregate amount
     of Stock for which Options may be granted shall not exceed 5,432,695
     shares (based on the capitalization of the Company existing as of
     January 1, 1997) less (at the time of the grant of any Option) all
     shares subject to any option granted under the Open Port Technology,
     Inc. 1995 Non-Employee Stock Option Plan, as amended.

38.  Effective Date
     --------------
     This Amendment Number Seven to the Plan is hereby adopted by the Board as
of October 29, 1998 and approved by the Shareholders of the Company as of
February 8, 1999.

                                             Open Port Technology, Inc.
<PAGE>

                           AMENDMENT NUMBER EIGHT TO
                          OPEN PORT TECHNOLOGY, INC.
                       1995 INCENTIVE STOCK OPTION PLAN

39.  Reference to Plan
     -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan (the "Plan"), as amended by Amendment Number One to
the Plan, dated as of February 1, 1996, Amendment Number Two to the Plan, dated
as of April 30, 1996, Amendment Number Three to the Plan, dated as of February
11, 1997, Amendment Number Four to the Plan, dated as of November 20, 1997,
Amendment Number Five to the Plan, dated as of June 15, 1998, Amendment Number
Six to the Plan, dated as of July 31, 1998, and Amendment Number Seven to the
Plan, dated as of February 8, 1999.  As used herein, the term "Plan" shall refer
to the Open Port Technology, Inc. 1995 Incentive Stock Option Plan as modified
by Amendment Number One, Amendment Number Two, Amendment Number Three, Amendment
Number Four, Amendment Number Five, Amendment Number Six, Amendment Number Seven
and this Amendment Number Eight.  The terms used herein which are defined in the
Plan shall have the meanings provided for in the Plan, unless otherwise defined
herein.  Except as expressly modified hereby, all of the terms and provisions of
the Plan shall continue in full force and effect.  A copy of this Amendment
Number Eight shall be attached to and made a part of the Plan.

40.  Amendment to Section 3 of the Plan
     ----------------------------------
     The first paragraph of Section 3 of the Plan is hereby amended so as to
read in its entirety as follows:

          Except as provided in Section 4(a) hereof, the aggregate amount
     of Stock for which Options may be granted shall not exceed 8,432,695
     shares (based on the capitalization of the Company existing as of
     January 1, 1997) less (at the time of the grant of any Option) all
     shares subject to any option granted under the Open Port Technology,
     Inc. 1995 Non-Employee Stock Option Plan, as amended.

41.  Effective Date
     --------------
     This Amendment Number Eight to the Plan is hereby adopted by the Board as
of January 27, 2000 and approved by the Shareholders of the Company as of
November, 1999.

                                             Open Port Technology, Inc.
<PAGE>

                           AMENDMENT NUMBER NINE TO
                          OPEN PORT TECHNOLOGY, INC.
                       1995 INCENTIVE STOCK OPTION PLAN

42.  Reference to Plan
     -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan (the "Plan"), as amended by Amendment Number One to
the Plan, dated as of February 1, 1996, Amendment Number Two to the Plan, dated
as of April 30, 1996, Amendment Number Three to the Plan, dated as of February
11, 1997, Amendment Number Four to the Plan, dated as of November 20, 1997,
Amendment Number Five to the Plan, dated as of June 15, 1998, Amendment Number
Six to the Plan, dated as of July 31, 1998, Amendment Number Seven to the Plan,
dated as of February 8, 1999 and Amendment Number Eight to the Plan, dated as of
January 27, 2000.  As used herein, the term "Plan" shall refer to the Open Port
Technology, Inc. 1995 Incentive Stock Option Plan as modified by Amendment
Number One, Amendment Number Two, Amendment Number Three, Amendment Number Four,
Amendment Number Five, Amendment Number Six, Amendment Number Seven, Amendment
Number Eight and this Amendment Number Nine.  The terms used herein which are
defined in the Plan shall have the meanings provided for in the Plan, unless
otherwise defined herein.  Except as expressly modified hereby, all of the terms
and provisions of the Plan shall continue in full force and effect.  A copy of
this Amendment Number Nine shall be attached to and made a part of the Plan.

43.  Amendment to Section 3 of the Plan
     ----------------------------------

     The first paragraph of Section 3 of the Plan is hereby amended so as to
read in its entirety as follows:

          Except as provided in Section 4(a) hereof, the aggregate amount
     of Stock for which Options may be granted shall not exceed 9,732,695
     shares (based on the capitalization of the Company existing as of
     January 1, 1997) less (at the time of the grant of any Option) all
     shares subject to any option granted under the Open Port Technology,
     Inc. 1995 Non-Employee Stock Option Plan, as amended.

44.  Effective Date
     --------------

     This Amendment Number Nine to the Plan is hereby adopted by the Board as of
March 24, 2000 and approved by the Shareholders of the Company as of March 28,
2000.

                                             Open Port Technology, Inc.
<PAGE>

                            AMENDMENT NUMBER TEN TO
                           OPEN PORT TECHNOLOGY, INC
                       1995 INCENTIVE STOCK OPTION PLAN

1.   Reference to Plan
     -----------------

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan (the "Plan"), as amended by Amendment Number One to
the Plan, dated as of February 1, 1996, Amendment Number Two to the Plan, dated
as of April 30, 1996, Amendment Number Three to the Plan, dated as of February
11, 1997, Amendment Number Four to the Plan, dated as of November 20, 1997,
Amendment Number Five to the Plan, dated as of June 15, 1998, Amendment Number
Six to the Plan, dated as of July 31, 1998, Amendment Number Seven to the Plan,
dated as of February 8, 1999, Amendment Number Eight to the Plan, dated as of
January 27, 2000, and Amendment Number Nine to the Plan, dated as of March 24,
2000. As used herein, the term "Plan" shall refer to the Open Port Technology,
Inc. 1995 Incentive Stock Option Plan as modified by Amendment Number One,
Amendment Number Two, Amendment Number Three, Amendment Number Four, Amendment
Number Five, Amendment Number Six, Amendment Number Seven, and Amendment Number
Eight and Amendment Number Nine. The terms used herein which are defined in the
Plan shall have the meanings provided for in the Plan, unless otherwise defined
herein. Except as expressly modified hereby, all of the terms and provisions of
the Plan shall continue in full force and effect. A copy of this Amendment
Number Ten shall be attached to and made part of the Plan.

2.   Amendments to Section 2 of the Plan
     -----------------------------------

     Section 2 of the Plan is hereby amended by amending paragraph (l) so as to
read in its entirety as follows:

          (l)  "Option Agreement" shall mean an agreement executed by an officer
     of the Company and an Employee evidencing the grant of an Option, as it may
     be amended, modified, extended or renewed from time to time, subject to
     Section 19.

     Section 2 of the Plan is hereby further amended by amending paragraph (r)
so as to read in its entirety as follows:

     (r)  "Change of Control Event" means, unless otherwise defined for a
          particular Optionee in an Option Agreement or in an employment
          agreement between the Company and such Optionee which addresses the
          effect of a Change of Control Event (as therein defined) on benefits
          hereunder, shall mean, and be deemed to have occurred:

          (i)  upon the acquisition at any time (excluding any acquisition in
               connection with any public offering of equity securities of the
               Company pursuant to a registration statement filed under the
               Securities Act) by a person or group (as used in Sections 13(d)
               and 14(d)(2) of the Securities Exchange Act of
<PAGE>

               1934, as amended (the "Exchange Act"), excluding for this
               purpose, the Company or any Subsidiary or any employee benefit
               plan of the Company or any Subsidiary) of the beneficial
               ownership (as defined in Rule 13d-3 promulgated under the
               Exchange Act), directly or indirectly, of securities representing
               fifty percent (50%) or more of the combined voting power of the
               then-outstanding securities of the Company; except that no Change
               of Control shall be deemed to have occurred solely by reason of
               such beneficial ownership (A) by a corporation of which fifty
               percent (50%) or more of the beneficial ownership is then held,
               directly or indirectly, in substantially the same proportions by
               the persons who held the beneficial ownership of the Company
               immediately before such acquisition, or (B) resulting directly
               from an issuance of Stock by the Company to such person; or

          (ii) the approval by the Board or the shareholders of the Company of a
               merger, share exchange (other than a merger or share exchange
               with a wholly-owned subsidiary), consolidation, reorganization,
               or similar transaction, or a plan or agreement for the sale or
               other disposition of all or substantially all of the consolidated
               assets of the Company or a plan of liquidation of the Company, as
               a result of which immediately following such transaction the
               shareholders of the Company shall not hold, directly or
               indirectly, a majority of the voting power of the then-
               outstanding securities of the surviving, resulting or acquiring
               corporation (or in the case of a sale or other disposition of
               assets, of each surviving, resulting or acquiring corporation
               which immediately after the transaction holds fifty percent (50%)
               of the former assets of the Company).

3.   Amendment to Section 7 of the Plan
     ----------------------------------

     Section 7 of the Plan is hereby amended so as to read in its entirety as
follows:

          The Plan shall continue in effect until terminated pursuant to Section
     20 hereof, or until there is no more Stock as to which an Option may be
     granted and no Options are outstanding; provided, however, that all Options
     must be granted within 10 years from the effective date of the Plan, and no
     Options shall be granted under the Plan after an IPO.

4.   Amendments to Section 8 of the Plan
     -----------------------------------

     Section 8 of the Plan is hereby amended so as to read in its entirety as
follows:

          (a)  The Options may not be transferred, assigned, pledged or
     hypothecated in any way and will not be subject to execution, attachment or
     similar process, except as provided by this Plan and except by will or
     under the laws of descent and distribution, or pursuant to a domestic
     relations order issued by a court of competent jurisdiction, or by
     designation of beneficiary pursuant to subsection (c) of this Section 8,
     and except as may

                                       2
<PAGE>

     be permitted by an Option Agreement in accordance with subsection (d) of
     this Section 8, and subject to the repurchase option described in Section
     18 hereof.

          (b)  Prior to an IPO the Option Shares may not be transferred,
     assigned, pledged or hypothecated, voluntarily or involuntarily or by
     operation of law, except as provided by this Plan and any Option Agreement
     pertaining to such Options.

          (c)  Each Optionee under the Plan may, from time to time, name any
     beneficiary or beneficiaries (who may be an individual or a trust and who
     may be named contingently or successively) to exercise on such
     beneficiary's behalf any Options that are outstanding and exercisable after
     the death of the Optionee. Each such designation shall revoke all prior
     designations by the same Optionee, shall be in a form prescribed by the
     Company, and will be effective only when filed by the Optionee in writing
     with the Company during the Optionee's lifetime. In the absence of any such
     designation, the Option to the extent outstanding and exercisable after the
     death of an Optionee may be exercised by his or her executors,
     administrators, legatees or distributees of his or her estate as determined
     under his or her will or by the laws of descent and distribution. If an
     Option is exercised by the executors, administrators, legatees or
     distributees of the estate of a deceased Optionee or by the guardian or
     legal representative of a Optionee, the Company shall be under no
     obligation to issue Stock thereunder unless and until it is satisfied that
     the person or persons exercising the Option are the duly appointed
     beneficiary or legal representatives of the Optionee or of the deceased
     Optionee's estate or the proper legatees or distributees of such estate.

          (d)  If the Option Agreement so provides and the Optionee consents to
     foregoing the benefits of the Option being considered an incentive stock
     option under Section 422 of the Code, then notwithstanding subsection (a)
     above, an Optionee may transfer an Option in the manner prescribed by the
     Board, and subject to such terms and conditions as may be prescribed by the
     Board, to any Permissible Transferee (as defined below). For purposes of
     this Plan, "Permissible Transferee" means any member of the Immediate
                 ----------------------
     Family (as defined below) of the Optionee to whom such Option was granted,
     any trust the primary beneficiaries of which consist exclusively of the
     Optionee or members of the Optionee's Immediate Family or any corporation,
     partnership or similar entity, the owners of which consist exclusively of
     the Optionee or members of the Optionee's Immediate Family. For purposes of
     this Section, "Immediate Family" means such Optionee's spouse, children,
                    ----------------
     nieces, nephews, grandchildren, great grandchildren, stepchildren, parents,
     stepparents, grandparents, siblings, half siblings, and the spouses of such
     individuals.

          (e)  An Option will terminate immediately upon any attempted transfer,
     assignment, pledge or hypothecation of such Option in violation of this
     Section 8, and any attempted transfer, assignment, pledge or hypothecation
     of any Option Shares in violation of this Section 8 will be void without
     further action by the Company and have no effect.

5.   Amendment to Section 11 of the Plan
     -----------------------------------

                                       3
<PAGE>

     The last paragraph of Section 11 of the Plan is hereby amended so as to
read in its entirety as follows:

          Further, notwithstanding anything to the contrary in Section 10 or
     this Section 11, but subject to any different provision for a particular
     Optionee in an Option Agreement or in an employment agreement between the
     Company and such Optionee which addresses the effect of a Change in Control
     Event (as therein defined) on benefits hereunder, upon the occurrence of a
     Change in Control Event, with respect to each Option, if three (3) years
     has not elapsed since the Date of Grant, then the vesting of the Option
     shall be accelerated so that any portion of the Option that would have
     vested within three (3) years from the Date of Grant shall automatically
     vest as of the date of the Change of Control Event. The remaining unvested
     portion shall continue to vest according to the above schedule (as if three
     (3) years had elapsed since the Date of Grant).

6.   Amendments to Section 12 of the Plan
     ------------------------------------

     Section 12(b) of the Plan is hereby amended so as to read in its entirety
as follows:

          (b)  Unless otherwise provided for a particular Optionee in an Option
     Agreement and which may distinguish among reasons for termination of
     employment, (i) any unvested portion of an Option shall terminate
     immediately upon the cessation of employment for any reason of the Optionee
     holding the Option, and (ii) if an Optionee ceases to be an Employee for
     any reason, such Optionee's vested Options must be exercised, if at all,
     not later than thirty (30) days following the date such Optionee ceases to
     be an Employee.

     Section 12(d) of the Plan is hereby deleted.

7.   Amendment to Section 14 of the Plan
     -----------------------------------

     Section 14 of the Plan is hereby amended so as to read in its entirety as
follows:

          Except to the extent provided in an Option Agreement which permits
     transfer of Options pursuant to Section 8(d), during the Optionee's
     lifetime Options shall be exercisable only by the Optionee or his legal
     representative or guardian. Options shall not be exercisable by the spouse
     of any Optionee during such Optionee's lifetime, unless such spouse is
     acting in his or her capacity as the legal representative or guardian or a
     permissible transferee under such Option Agreement, of the Optionee. In the
     event of the Optionee's death, the Option shall be exercisable by the
     person or entity (including the Optionee's estate) that has obtained the
     Optionee's rights under the Option by designation of beneficiary, by will
     or under the laws of descent and distribution, or by such permitted
     transfer.

          Options shall be exercised, if at all, by submitting to the Company
     (a) a Notice of Exercise in the form attached hereto as Exhibit A, (b) if
     exercise occurs prior to an IPO, the Irrevocable Proxy, duly executed, (c)
     any other written representations, covenants and undertakings that the
     Company may prescribe pursuant to any shareholders agreements or

                                       4
<PAGE>

     to satisfy securities laws and regulations or other requirements, and (d)
     full payment for the Option Stock made by cash, personal check or wire
     transfer or, subject to the approval of the Board, any one or more of the
     following means:

               (i)  Shares of Stock that have been held by the Optionee for at
          least six months or purchased by the Optionee on the open market
          ("Mature Shares"), valued at their Fair Market Value on the date of
          exercise;

               (ii) pursuant to procedures approved by the Board, through the
          sale of the Stock acquired on exercise of the Option through a broker-
          dealer to whom the Optionee has submitted an irrevocable notice of
          exercise and irrevocable instructions to deliver promptly to the
          Company the amount of sale or loan proceeds sufficient to pay for such
          Stock, together with, if requested by the Company, the amount of
          federal, state, local or foreign withholding taxes payable by Optionee
          by reason of such exercise.

     If Mature Shares are used to pay the Exercise Price, then if requested by
     the Secretary or Assistant Secretary of the Company, the Optionee shall
     deliver to the Secretary or Assistant Secretary the agreement evidencing
     the Option and the Optionee's certificate that such shares have been held
     by the Optionee for at least six months or were purchased on the open
     market and such certificate shall identify the number of shares of Stock
     and the stock certificate or other document or notation which evidences
     such stock ownership.  The number of Mature Shares being so used and the
     number of shares of Stock purchased upon exercise may be evidenced by a
     notation on the agreement and the agreement shall be returned to the
     Optionee.  No fractional shares of Stock (or cash in lieu of fractional
     shares) shall be issued upon exercise of an Option and the number of shares
     of Stock that may be purchased upon exercise shall be rounded to the
     nearest number of whole shares.

          Upon receipt of the Notice of Exercise (subject to Sections 15, 16 and
     17 of this Plan), the Company shall issue a new certificate of certificates
     to the holder of the Option. The certificate or certificates for the shares
     as to which the Option shall have been exercised shall be registered in the
     name of the holder of the Option and shall be delivered to or upon the
     written order of the holder of the Option. If the shares are issued before
     an IPO the shares shall bear a legend in substantially the following form:

          "THE SHARES SUBJECT TO THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND
          VOTING RESTRICTIONS SET FORTH IN THE OPEN PORT TECHNOLOGY, INC. 1995
          INCENTIVE STOCK OPTION PLAN (THE "PLAN"). COPIES OF THE PLAN ARE ON
          FILE IN THE OFFICE OF THE SECRETARY OF THE CORPORATION.  BY ACCEPTING
          THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE, THE HOLDER AGREES
          TO BE BOUND BY THE PLAN AS IT MAY BE AMENDED FROM TIME TO TIME."

          Whenever under the Plan, shares are to be delivered upon exercise of
     an Option the Company shall be entitled to require (x) that the Optionee
     remit an amount in cash, or

                                       5
<PAGE>

     if determined by the Board, Mature Shares, sufficient to satisfy all
     federal, state, local and foreign tax withholding requirements related
     thereto ("Required Withholding"), (y) the withholding of such Required
     Withholding from compensation otherwise due to the Optionee or from any
     shares due to the Optionee under the Plan or (z) any combination of the
     foregoing.

          Any Optionee who makes a disposition not described in Section
     422(a)(i) of the Code of Option Shares acquired under an incentive stock
     option shall remit to the Company an amount sufficient to satisfy all
     resulting Required Withholding; provided that, in lieu of or in addition to
     the foregoing, the Company shall have the right to withhold such Required
     Withholding from compensation otherwise due to the Optionee or from any
     shares or other payment due to the Optionee under the Plan.

8.   Amendments to Section 18 of the Plan
     ------------------------------------

     Section 18 of the Plan is hereby amended to read in its entirety as
follows:

          The Options and the Option Shares are subject to the rights of the
     Company to repurchase or acquire the Option Shares upon the occurrence of
     certain events, including but not limited to: a transfer of the Option or
     Option Shares, voluntarily, involuntarily or by operation of law or
     cessation of employment with the Company for any reason, but excluding in
     any instance upon the occurrence of a Change of Control Event or after an
     IPO. The terms of this repurchase option with respect to the Option Shares
     shall be set forth in the Option Agreement pertaining to such Options.

9.   Amendments to Section 20 of the Plan
     ------------------------------------

     Section 20 is amended to read as follows:

          The Board may provide for the alteration, suspension or
     discontinuation of the Plan, except that no such action may increase (other
     than as provided in Section 4(a) hereof) the maximum number of shares
     permitted to be issued upon the exercise of Options, or materially modify
     the requirements as to eligibility for participation in the Plan, unless
     such action is subject to approval by the shareholders of the Company.

10.  Effective Date
     --------------

     This Amendment Number Ten to the Plan is hereby adopted by the Board as of
April 3, 2000 subject to approval by the Shareholders of the Company.

                                             Open Port Technology, Inc.

                                       6
<PAGE>

                            AMENDMENT NUMBER TEN TO
                           OPEN PORT TECHNOLOGY, INC
                        1995 INCENTIVE STOCK OPTION PLAN

1.   Reference to Plan

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan (the "Plan"), as amended by Amendment Number One to
the Plan, dated as of February 1, 1996, Amendment Number Two to the Plan, dated
as of April 30, 1996,  Amendment Number Three to the Plan, dated as of February
11, 1997, Amendment Number Four to the Plan, dated as of November 20, 1997,
Amendment Number Five to the Plan, dated as of June 15, 1998, Amendment Number
Six to the Plan, dated as of July 31, 1998, Amendment Number Seven to the Plan,
dated as of February 8, 1999, Amendment Number Eight to the Plan, dated as of
January 27, 2000, and Amendment Number Nine to the Plan, dated as of March 24,
2000.  As used herein, the term "Plan" shall refer to the Open Port Technology,
Inc. 1995 Incentive Stock Option Plan as modified by Amendment Number One,
Amendment Number Two, Amendment Number Three, Amendment Number Four, Amendment
Number Five, Amendment Number Six, Amendment Number Seven, and Amendment Number
Eight and Amendment Number Nine.  The terms used herein which are defined in the
Plan shall have the meanings provided for in the Plan, unless otherwise defined
herein.  Except as expressly modified hereby, all of the terms and provisions of
the Plan shall continue in full force and effect.  A copy of this Amendment
Number Ten shall be attached to and made part of the Plan.

2.   Amendments to Section 2 of the Plan

     Section 2 of the Plan is hereby amended by amending paragraph (l) so as to
read in its entirety as follows:

          (1) "Option Agreement" shall mean an agreement executed by an officer
     of the Company and an Employee evidencing the grant of an Option, as it may
     be amended, modified, extended or renewed from time to time, subject to
     Section 19.

     Section 2 of the Plan is hereby further amended by amending paragraph (r)
so as to read in its entirety as follows:

     (r)  "Change of Control Event" means, unless otherwise defined for a
          particular Optionee in an Option Agreement or in an employment
          agreement between the Company and such Optionee which addresses the
          effect of a Change of Control Event (as therein defined) on benefits
          hereunder, shall mean, and be deemed to have occurred:

          (i)  upon the acquisition at any time (excluding any acquisition in
               connection with any public offering of equity securities of the
               Company pursuant to a registration statement filed under the
               Securities Act) by a person or group (as used in Sections 13(d)
               and 14(d)(2) of the Securities Exchange Act of 1934, as amended
               (the "Exchange Act"), excluding for this purpose, the Company or
               any Subsidiary or any employee benefit plan of the Company
<PAGE>

               or any Subsidiary) of the beneficial ownership (as defined in
               Rule 13d-3 promulgated under the Exchange Act), directly or
               indirectly, of securities representing fifty percent (50%) or
               more of the combined voting power of the then-outstanding
               securities of the Company; except that no Change of Control shall
               be deemed to have occurred solely by reason of such beneficial
               ownership (A) by a corporation of which fifty percent (50%) or
               more of the beneficial ownership is then held, directly or
               indirectly, in substantially the same proportions by the persons
               who held the beneficial ownership of the Company immediately
               before such acquisition, or (B) resulting directly from an
               issuance of Stock by the Company to such person; or

          (ii) the approval by the Board or the shareholders of the Company of a
               merger, share exchange (other than a merger or share exchange
               with a wholly-owned subsidiary), consolidation, reorganization,
               or similar transaction, or a plan or agreement for the sale or
               other disposition of all or substantially all of the consolidated
               assets of the Company or a plan of liquidation of the Company, as
               a result of which immediately following such transaction the
               shareholders of the Company shall not hold, directly or
               indirectly, a majority of the voting power of the then-
               outstanding securities of the surviving, resulting or acquiring
               corporation (or in the case of a sale or other disposition of
               assets, of each surviving, resulting or acquiring corporation
               which immediately after the transaction holds fifty percent (50%)
               of the former assets of the Company).

3.   Amendment to Section 7 of the Plan

     Section 7 of the Plan is hereby amended so as to read in its entirety as
follows:

          The Plan shall continue in effect until terminated pursuant to Section
     20 hereof, or until there is no more Stock as to which an Option may be
     granted and no Options are outstanding; provided, however, that all Options
     must be granted within 10 years from the effective date of the Plan, and no
     Options shall be granted under the Plan after an IPO.

4.   Amendments to Section 8 of the Plan

     Section 8 of the Plan is hereby amended so as to read in its entirety as
follows:

          (a) The Options may not be transferred, assigned, pledged or
     hypothecated in any way and will not be subject to execution, attachment or
     similar process, except as provided by this Plan and except by will or
     under the laws of descent and distribution, or pursuant to a domestic
     relations order issued by a court of competent jurisdiction, or by
     designation of beneficiary pursuant to subsection (c) of this Section 8,
     and except as may be permitted by an Option Agreement in accordance with
     subsection (d) of this Section 8, and subject to the repurchase option
     described in Section 18 hereof.

                                      -2-
<PAGE>

          (b) Prior to an IPO the Option Shares may not be transferred,
     assigned, pledged or hypothecated, voluntarily or involuntarily or by
     operation of law, except as provided by this Plan and any Option Agreement
     pertaining to such Options.

          (c) Each Optionee under the Plan may, from time to time, name any
     beneficiary or beneficiaries (who may be an individual or a trust and who
     may be named contingently or successively) to exercise on such
     beneficiary's behalf any Options that are outstanding and exercisable after
     the death of the Optionee. Each such designation shall revoke all prior
     designations by the same Optionee, shall be in a form prescribed by the
     Company, and will be effective only when filed by the Optionee in writing
     with the Company during the Optionee's lifetime. In the absence of any such
     designation, the Option to the extent outstanding and exercisable after the
     death of an Optionee may be exercised by his or her executors,
     administrators, legatees or distributees of his or her estate as determined
     under his or her will or by the laws of descent and distribution. If an
     Option is exercised by the executors, administrators, legatees or
     distributees of the estate of a deceased Optionee or by the guardian or
     legal representative of a Optionee, the Company shall be under no
     obligation to issue Stock thereunder unless and until it is satisfied that
     the person or persons exercising the Option are the duly appointed
     beneficiary or legal representatives of the Optionee or of the deceased
     Optionee's estate or the proper legatees or distributees of such estate.

          (d) If the Option Agreement so provides and the Optionee consents to
     foregoing the benefits of the Option being considered an incentive stock
     option under Section 422 of the Code, then notwithstanding subsection (a)
     above, an Optionee may transfer an Option in the manner prescribed by the
     Board, and subject to such terms and conditions as may be prescribed by the
     Board, to any Permissible Transferee (as defined below). For purposes of
     this Plan, "Permissible Transferee" means any member of the Immediate
     Family (as defined below) of the Optionee to whom such Option was granted,
     any trust the primary beneficiaries of which consist exclusively of the
     Optionee or members of the Optionee's Immediate Family or any corporation,
     partnership or similar entity, the owners of which consist exclusively of
     the Optionee or members of the Optionee's Immediate Family. For purposes of
     this Section, "Immediate Family" means such Optionee's spouse, children,
     nieces, nephews, grandchildren, great grandchildren, stepchildren, parents,
     stepparents, grandparents, siblings, half siblings, and the spouses of such
     individuals.

          (e) An Option will terminate immediately upon any attempted transfer,
     assignment, pledge or hypothecation of such Option in violation of this
     Section 8, and any attempted transfer, assignment, pledge or hypothecation
     of any Option Shares in violation of this Section 8 will be void without
     further action by the Company and have no effect.

5.   Amendment to Section 11 of the Plan

     The last paragraph of Section 11 of the Plan is hereby amended so as to
read in its entirety as follows:

          Further, notwithstanding anything to the contrary in Section 10 or
     this Section 11, but subject to any different provision for a particular
     Optionee in an Option Agreement or

                                      -3-
<PAGE>

     in an employment agreement between the Company and such Optionee which
     addresses the effect of a Change in Control Event (as therein defined) on
     benefits hereunder, upon the occurrence of a Change in Control Event, with
     respect to each Option, if three (3) years has not elapsed since the Date
     of Grant, then the vesting of the Option shall be accelerated so that any
     portion of the Option that would have vested within three (3) years from
     the Date of Grant shall automatically vest as of the date of the Change of
     Control Event. The remaining unvested portion shall continue to vest
     according to the above schedule (as if three (3) years had elapsed since
     the Date of Grant).

6.   Amendments to Section 12 of the Plan

     Section 12(b) of the Plan is hereby amended so as to read in its entirety
as follows:

          (b) Unless otherwise provided for a particular Optionee in an Option
     Agreement and which may distinguish among reasons for termination of
     employment, (i) any unvested portion of an Option shall terminate
     immediately upon the cessation of employment for any reason of the Optionee
     holding the Option, and (ii) if an Optionee ceases to be an Employee for
     any reason, such Optionee's vested Options must be exercised, if at all,
     not later than thirty (30) days following the date such Optionee ceases to
     be an Employee.

     Section 12(d) of the Plan is hereby deleted.

7.   Amendment to Section 14 of the Plan

     Section 14 of the Plan is hereby amended so as to read in its entirety as
follows:

          Except to the extent provided in an Option Agreement which permits
     transfer of Options pursuant to Section 8(d), during the Optionee's
     lifetime Options shall be exercisable only by the Optionee or his legal
     representative or guardian. Options shall not be exercisable by the spouse
     of any Optionee during such Optionee's lifetime, unless such spouse is
     acting in his or her capacity as the legal representative or guardian or a
     permissible transferee under such Option Agreement, of the Optionee. In the
     event of the Optionee's death, the Option shall be exercisable by the
     person or entity (including the Optionee's estate) that has obtained the
     Optionee's rights under the Option by designation of beneficiary, by will
     or under the laws of descent and distribution, or by such permitted
     transfer.

          Options shall be exercised, if at all, by submitting to the Company
     (a) a Notice of Exercise in the form attached hereto as Exhibit A, (b) if
     exercise occurs prior to an IPO, the Irrevocable Proxy, duly executed, (c)
     any other written representations, covenants and undertakings that the
     Company may prescribe pursuant to any shareholders agreements or to satisfy
     securities laws and regulations or other requirements, and (d) full payment
     for the Option Stock made by cash, personal check or wire transfer or,
     subject to the approval of the Board, any one or more of the following
     means:

               (i) Shares of Stock that have been held by the Optionee for at
          least six months or purchased by the Optionee on the open market
          ("Mature Shares"), valued at their Fair Market Value on the date of
          exercise;

                                      -4-
<PAGE>

               (ii) pursuant to procedures approved by the Board, through the
          sale of the Stock acquired on exercise of the Option through a broker-
          dealer to whom the Optionee has submitted an irrevocable notice of
          exercise and irrevocable instructions to deliver promptly to the
          Company the amount of sale or loan proceeds sufficient to pay for such
          Stock, together with, if requested by the Company, the amount of
          federal, state, local or foreign withholding taxes payable by Optionee
          by reason of such exercise.

     If Mature Shares are used to pay the Exercise Price, then if requested by
     the Secretary or Assistant Secretary of the Company, the Optionee shall
     deliver to the Secretary or Assistant Secretary the agreement evidencing
     the Option and the Optionee's certificate that such shares have been held
     by the Optionee for at least six months or were purchased on the open
     market and such certificate shall identify the number of shares of Stock
     and the stock certificate or other document or notation which evidences
     such stock ownership.  The number of Mature Shares being so used and the
     number of shares of Stock purchased upon exercise may be evidenced by a
     notation on the agreement and the agreement shall be returned to the
     Optionee.  No fractional shares of Stock (or cash in lieu of fractional
     shares) shall be issued upon exercise of an Option and the number of shares
     of Stock that may be purchased upon exercise shall be rounded to the
     nearest number of whole shares.

          Upon receipt of the Notice of Exercise (subject to Sections 15, 16 and
     17 of this Plan), the Company shall issue a new certificate of certificates
     to the holder of the Option. The certificate or certificates for the shares
     as to which the Option shall have been exercised shall be registered in the
     name of the holder of the Option and shall be delivered to or upon the
     written order of the holder of the Option. If the shares are issued before
     an IPO the shares shall bear a legend in substantially the following form:

          "THE SHARES SUBJECT TO THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND
          VOTING RESTRICTIONS SET FORTH IN THE OPEN PORT TECHNOLOGY, INC. 1995
          INCENTIVE STOCK OPTION PLAN (THE "PLAN"). COPIES OF THE PLAN ARE ON
          FILE IN THE OFFICE OF THE SECRETARY OF THE CORPORATION.  BY ACCEPTING
          THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE, THE HOLDER AGREES
          TO BE BOUND BY THE PLAN AS IT MAY BE AMENDED FROM TIME TO TIME."

          Whenever under the Plan, shares are to be delivered upon exercise of
     an Option the Company shall be entitled to require (x) that the Optionee
     remit an amount in cash, or if determined by the Board, Mature Shares,
     sufficient to satisfy all federal, state, local and foreign tax withholding
     requirements related thereto ("Required Withholding"), (y) the withholding
     of such Required Withholding from compensation otherwise due to the
     Optionee or from any shares due to the Optionee under the Plan or (z) any
     combination of the foregoing.

          Any Optionee who makes a disposition not described in Section
     422(a)(i) of the Code of Option Shares acquired under an incentive stock
     option shall remit to the Company an amount sufficient to satisfy all
     resulting Required Withholding; provided

                                      -5-
<PAGE>

     that, in lieu of or in addition to the foregoing, the Company shall have
     the right to withhold such Required Withholding from compensation otherwise
     due to the Optionee or from any shares or other payment due to the Optionee
     under the Plan.

8.   Amendments to Section 18 of the Plan

     Section 18 of the Plan is hereby amended to read in its entirety as
follows:

          The Options and the Option Shares are subject to the rights of the
     Company to repurchase or acquire the Option Shares upon the occurrence of
     certain events, including but not limited to: a transfer of the Option or
     Option Shares, voluntarily, involuntarily or by operation of law or
     cessation of employment with the Company for any reason, but excluding in
     any instance upon the occurrence of a Change of Control Event or after an
     IPO. The terms of this repurchase option with respect to the Option Shares
     shall be set forth in the Option Agreement pertaining to such Options.

9.   Amendments to Section 20 of the Plan

     Section 20 is amended to read as follows:

          The Board may provide for the alteration, suspension or
     discontinuation of the Plan, except that no such action may increase (other
     than as provided in Section 4(a) hereof) the maximum number of shares
     permitted to be issued upon the exercise of Options, or materially modify
     the requirements as to eligibility for participation in the Plan, unless
     such action is subject to approval by the shareholders of the Company.

10.  Effective Date

     This Amendment Number Ten to the Plan is hereby adopted by the Board as of
April ___, 2000 subject to approval by the Shareholders of the Company.

                                   Open Port Technology, Inc.

                                      -6-
<PAGE>

                           AMENDMENT NUMBER ELEVEN TO
                           OPEN PORT TECHNOLOGY, INC
                        1995 INCENTIVE STOCK OPTION PLAN

1.   Reference to Plan

     Reference is hereby made to that certain Open Port Technology, Inc. 1995
Incentive Stock Option Plan (the "Plan"), as amended by Amendment Number One to
the Plan, dated as of February 1, 1996, Amendment Number Two to the Plan, dated
as of April 30, 1996,  Amendment Number Three to the Plan, dated as of February
11, 1997, Amendment Number Four to the Plan, dated as of November 20, 1997,
Amendment Number Five to the Plan, dated as of June 15, 1998, Amendment Number
Six to the Plan, dated as of July 31, 1998, Amendment Number Seven to the Plan,
dated as of February 8, 1999, Amendment Number Eight to the Plan, dated as of
January 27, 2000, Amendment Number Nine to the Plan, dated as of March 24, 2000,
and Amendment Number Ten to the Plan, dated as of April 3, 2000.  As used
herein, the term "Plan" shall refer to the Open Port Technology, Inc. 1995
Incentive Stock Option Plan as modified by Amendment Number One, Amendment
Number Two, Amendment Number Three, Amendment Number Four, Amendment Number
Five, Amendment Number Six, Amendment Number Seven, and Amendment Number Eight,
Amendment Number Nine, and Amendment Number Ten.  The terms used herein which
are defined in the Plan shall have the meanings provided for in the Plan, unless
otherwise defined herein.  Except as expressly modified hereby, all of the terms
and provisions of the Plan shall continue in full force and effect.  A copy of
this Amendment Number Ten shall be attached to and made part of the Plan.

2.   Amendment to Section 13 of the Plan

     Section 13 of the Plan is hereby amended so as to read in its entirety as
follows:

          The Exercise Price shall be determined by the Board. Unless otherwise
     determined by the Board in establishing an Exercise Price, the Exercise
     Price when established shall be equal to or greater than the Fair Market
     Value. In the event an Option is granted with an Exercise Price less than
     the Fair Market Value as of the Date of Grant, the Option Agreement shall
     state that the Option is a "nonqualified" stock Option not intended to
     qualify for tax treatment under Section 422 of the Code.  Section 5(f) of
     the Plan shall not apply to a "nonqualified" stock Option, or to the
     portion of any Option intended to qualify under Section 422 of the Code
     which exceeds the limit specified in Section 5(f). The last sentence of
     Section 6 of the Plan shall not apply to a "nonqualified" stock Option.

3.   Effective Date

     This Amendment Number Eleven to the Plan is hereby adopted by the Board on
May ____, 2000, effective January 1, 2000, subject to approval by the
Shareholders of the Company.

                                   Open Port Technology, Inc.<PAGE>   1

EXHIBIT 4.2

                          E.SPIRE COMMUNICATIONS, INC.

                          AMENDED AND RESTATED BY-LAWS/

                                    ARTICLE I

                                     OFFICES

       SECTION 1. Registered Office. The registered office of e.spire
Communications, Inc. (the "Corporation") in the State of Delaware shall be at
1209 Orange Street, City of Wilmington, County of New Castle, and the registered
agent in charge thereof shall be The Corporation Trust Company.

       SECTION 2. Other Offices. The Corporation may also have an office or
offices at other place or places within or without the State of Delaware.

                                   ARTICLE II

                     MEETINGS OF STOCKHOLDERS; STOCKHOLDERS'
                           CONSENT IN LIEU OF MEETING

       SECTION 1. Annual Meeting. The annual meeting of the stockholders (unless
the context clearly requires otherwise, the term "Stockholders" as used herein
shall refer to all holders of the Corporation's securities which then have
voting rights) for the election of directors, and for the transaction of such
other business as may properly come before the meeting, shall be held at such
place, date and hour as shall be fixed by the Board of Directors (the "Board")
and designated in the notice or waiver of notice thereof; except that no annual
meeting need be held if all actions, including the election of directors,
required by the General Corporation Law of the State of Delaware to be taken at
a stockholders' annual meeting are taken by written consent in lieu of meeting
pursuant to Section 10 or this Article II.

       SECTION 2. Special Meetings. A special meeting of the stockholders for
any purpose or purposes may be called by the Board, the Chairman, the President
or the holders of at least 12.5% of the Corporation's voting

--------------
//As amended by unanimous consent of the Board of Directors on July 2, 1997.
Further amended by a Board of Directors meeting on September 22, 1997. And,
further amended by the Board of Directors on November 23, 1998, April 1, 1999,
April 13, 1999,October 29, 1999, January 18, 2000 and May 31, 2000.

<PAGE>   2

stock, to be held at such place, date and hour as shall be designated in the
notice thereof. Special meetings of the stockholders may also be called and
convened as provided in the Certificate of Incorporation.

       SECTION 3. Notice of Meetings. Except as otherwise required by statute or
by the Certificate of Incorporation or these By-laws, notice of each annual or
special meeting of the stockholders shall be given to each stockholder of record
entitled to vote at such meeting not less than 10 or more than 60 days before
the day on which the meeting is to be held, by delivering a typewritten or
printed notice thereof to him personally, or by mailing a copy of such notice,
postage prepaid, directly to each such stockholder at his address as it appears
in the records of the Corporation, or by transmitting notice thereof to him at
such address by telegraph, cable or radio. Every such notice shall state the
place and the date and hour of the meeting, and, in case of a special meeting,
the purpose or purposes for which the meeting is called. Notice of any meeting
of stockholders shall not be required to be given to any stockholder who shall
attend such meeting in person or by proxy, or who shall, in person or by
attorney thereunto authorized, waive such notice in writing, either before or
after such meeting. Except as otherwise provided in these By-laws, neither the
business to be transacted at, nor the purpose of, any meeting of the
stockholders need be specified in any such waiver of notice. Notice of any
adjourned meeting of stockholders shall not be required to be given, except when
expressly required by law.

       SECTION 4. Quorum. At each meeting of the stockholders, except where
otherwise provided by the Certificate of Incorporation or these By-Laws, the
holders of a majority of the issued and outstanding shares of stock of the
Corporation entitled to vote at such meeting, present in person or represented
by Proxy shall constitute a quorum for the transaction of business. In the
absence of a quorum, a majority in interest of the stockholders present in
person or represented by proxy and entitled to vote, or, in the absence of all
the stockholders entitled to vote, any officer entitled to preside at, or act as
secretary of such meeting, shall have the power to adjourn the meeting from time
to time, until stockholders holding the requisite amount of stock shall be
present or represented. At any such adjourned meeting at which a quorum shall be
present, any business may be transacted which might have been transacted at the
meeting as originally called.

       SECTION 5. Organization. At each meeting of the stockholders, one of the
following shall act as chairman of the meeting and preside thereat, in the
following order of precedence:

              (a) the Chairman of the Board, if any;

              (b) the President;

              (c) any other officer of the Corporation designated by the Board
       of Directors to act as chairman of such meeting and to preside thereat if
       the Chairman of the Board, if any, or the President shall be absent from
       such meeting.

The Secretary, or if he shall be presiding over the meeting in accordance with
the provisions of this Section, or if he shall be absent from such meeting, the
person whom the chairman of such meeting shall appoint, shall act as secretary
of such meeting and keep the minutes thereof.

       SECTION 6. Order or Business. The order of business at each meeting of
the stockholders shall be determined by the chairman of such meeting, but such
order of business may be changed by a majority in

<PAGE>   3

voting interest of those present in person or by proxy at such meeting and
entitled to vote thereat.

       SECTION 7. Voting. Except as otherwise provided by law or by the
Certificate of Incorporation or these By-laws, at each meeting of the
stockholders, every stockholder of the Corporation shall be entitled to one vote
in person or by proxy for each share of common stock of the corporation held by
him and registered in his name on the books of the Corporation:

              (a) on the date fixed pursuant to Section 7 of Article V as the
       record date for the determination of stockholders entitled to vote at
       such meeting; or

              (b) if no such record date shall have been fixed, at the close of
       business on the day next preceding the day on which notice is given, or,
       if notice is waived, at the close of business on the day next preceding
       the day on which the meeting is held.

A determination of stockholders of record entitled to notice of or to vote at a
meeting of stockholders shall apply to any adjournment of such meeting;
provided, however, that the Board may fix a new record date for the adjourned
meeting. Only the record holders of the Corporation's stock or their proxies
will be entitled to vote such shares. If shares or other securities having
voting power stand in the record of two or more persons, whether fiduciaries,
members of a partnership, joint tenants, tenants in common, tenants by the
entirety or otherwise, or if two or more persons have the same fiduciary
relationship respecting the same shares, unless the Secretary shall be given the
written notice to the contrary and shall be furnished with a copy of the
instrument or order appointing them or creating the relationship wherein it is
so provided, their acts with respect to voting shall have the following effect:

              (a) if only one votes, his act binds all;

              (b) if more than one votes, the act of the majority so voting
       binds all; and

              (c) if more than one votes, but the vote is evenly split on any
       particular matter, such shares shall be voted in the manner provided by
       law.

If the instrument so filed shows that any such tenancy is held in unequal
interests, a majority or even-split for the purposes of this Section shall be
the majority or even-split in interest. The Corporation shall not vote directly
or indirectly any share of its own capital stock. Any vote of stock may be given
by the stockholder entitled thereto in person or by his proxy appointed by an
instrument in writing, subscribed by such stockholder or by his attorney
thereunto authorized, delivered to the secretary of the meeting; provided,
however, that no proxy shall be voted after three years from its date, unless
said proxy provides for a longer period. At all meetings of the stockholders,
all matters (except where other provision is made by law, by the Certificate of
Incorporation or these By-laws) shall be decided by the vote of a majority in
interest of the stockholders present in person or by proxy at such meeting and
entitled to vote thereon, a quorum being present. Unless demanded by a
stockholder present in person or by proxy at any meeting and entitled to vote
thereon, the vote on any question need not be by ballot. Upon a demand by any
such stockholder for a vote by ballot upon any question, such vote by ballot
shall be taken. On a vote by ballot, each ballot shall be signed by the
stockholder voting, or by his proxy, if there be such proxy, and shall state the
number of shares voted.
<PAGE>   4

       SECTION 8. Inspection. The chairman of the meeting may at any time
appoint two or more inspectors to serve at any meeting of the stockholders. Any
inspector may be removed, and a new inspector or inspectors may be appointed by
the Board at any time. Such inspectors shall decide upon the qualifications of
voters, accept and count the votes for and against the matter to be voted upon,
respectively, declare the results of such vote, and subscribe and deliver to the
secretary of the meeting a certificate stating the number of shares of stock
issued and outstanding and entitled to vote thereon and the number of shares
voted for and against the matter to be voted upon, respectively. The inspectors
need not be stockholders of the Corporation, and any director or officer of the
Corporation may be an inspector on any question other than a vote for or against
his election to any position with the Corporation or on any other question in
which he may be directly interested. Before acting as herein provided, each
inspector shall subscribe an oath faithfully to execute the duties of an
inspector with strict impartiality and according to the best of his ability.

       SECTION 9. List of Stockholders. It shall be the duty of the Secretary or
other officer of the Corporation who shall have charge of its stock ledger to
prepare and make, at least 10 days before every meeting of the stockholders, a
complete list of the stockholders entitled to vote thereat, arranged in
alphabetical order, and showing the address of each stockholder and the number
of shares registered in the name of each stockholder. Such list shall be open to
the examination of any stockholder, for any purpose germane to any such meeting,
during ordinary business hours, for a period of at least 10 days prior to such
meeting, either at a place within the city where such meeting is to be held,
which place shall be specified in the notice of the meeting or, if not so
specified, at the place where the meeting is to be held. Such list shall also be
produced and kept at the time and place of the meeting during the whole time
thereof, and may be inspected by any stockholder who is present.

       SECTION 10. Stockholders' Consent In Lieu of Meeting. Subject to the
requirements of the Certificate of Incorporation, any action required by law to
be taken at any annual or special meeting of the stockholders of the
Corporation, or any action which may be taken at any annual or special meeting
of such stockholders, may be taken without a meeting, without prior notice and
without a vote, if a consent or consents in writing, setting forth the action so
taken, shall be signed by the holders of outstanding stock having not less than
the minimum number of votes that would be necessary to authorize or take such
action at a meeting at which all shares entitled to vote thereon were present
and voted and shall be delivered to the Corporation by delivery to its
registered office in the State of Delaware, its principal place of business, or
an officer or agent of the Corporation having custody of the book in which
proceedings of meetings of stockholders are recorded. Delivery made to the
Corporation's registered office shall be by hand or by certified or registered
mail, return receipt requested. Every written consent shall bear the date of
signature of each stockholder who signs the consent and the number of shares
which the stockholder is entitled to vote. No written consent shall be effective
to take the corporate action referred to therein unless, within 60 days of the
earliest dated consent delivered in the manner required by law to the
Corporation, written consents signed by a sufficient number of holders to take
action are delivered to the Corporation by delivery to its registered office in
Delaware, its principal place of business, or an officer or an agent of the
corporation having custody of the book in which proceedings of meetings of
stockholders are recorded. Delivery made to the Corporation's registered office
shall be by hand or by certified or registered mail, return receipt requested.
Prompt notice of the taking of the corporate action without a meeting by less
than unanimous written consent shall be given to those stockholders who have not
consented in writing.
<PAGE>   5

                                   ARTICLE III

                               BOARD OF DIRECTORS

       SECTION 1. General Powers. The business, property and affairs of the
Corporation shall be managed by the Board, which may exercise all such powers of
the Corporation and do all such lawful acts and things as are not by law or by
the Certificate of Incorporation directed or required to be exercised or done by
the stockholders.

       SECTION 2. Number and Term of Office. The number of directors shall be
eight or as otherwise provided in the Certificate of Incorporation. Except as
otherwise provided in the Certificate of Incorporation, each Director shall hold
office for a term expiring at the next annual meeting of shareholders or until
his earlier death, removal or resignation.

       Section 3. Election of Directors. Except as otherwise provided by the
Certificate of Incorporation, at each meeting of the stockholders for the
election of directors at which a quorum is present, the persons receiving the
greatest number of votes, up to the number of directors to be elected, of the
stockholders present in person or by proxy and entitled to vote thereon shall be
the directors. Unless an election by ballot shall be demanded as provided in
Section 7 of Article II, election of directors be conducted in any manner
approved at such a meeting.

       Section 4. Resignation, Removal and Vacancies. Any director may resign at
any time by giving written notice to the Board, the Chairman, if any, the
President or the Secretary. Such resignation shall take effect at the time
specified thereon or, if the time be not specified, upon receipt thereof; and,
unless otherwise specified therein, the acceptance of such resignation shall not
be necessary to make it effective.

       Any or all directors may be removed, with or without cause, at any time
by vote of the holders of a majority of the shares then entitled to vote for
such directors at an election of directors, or by written consent of the
stockholders entitled to vote for such directors pursuant to Section 10 of
Article II.

       Any vacancy caused by the death or resignation of a director may be
filled by the stockholders in the manner provided in the Certificate of
Incorporation of the Corporation and these By-laws, or may be filled by a vote
of the directors elected by the stockholders.

       SECTION 5. Meetings.

       (A) Annual Meeting. As soon as practicable after each annual election of
directors, the Board shall meet for the purpose of organization and the
transaction of other business, unless it shall have transacted all such business
by written consent pursuant to Section 6 of this Article III.

       (B) Other Meetings. Other meetings of the Board shall be held at such
times and places as the Board, the Chairman, if any, or the President shall from
time to time determine.
<PAGE>   6

       (C) Notice of Meetings. The Secretary shall give notice to each director
of each meeting, including the time, place and purpose of such meeting. Notice
of each such meeting shall be mailed to each director, addressed to him at his
residence or usual place of business, at least two days before the day on which
such meeting is to be held, or shall be sent to him at such place by facsimile,
telegraph, cable, wireless or other form of recorded communication, or be
delivered personally or by telephone not later than the day before the day on
which such meeting is to be held, but notice need not be given to any director
who attends such meetings. A written waiver of notice, signed by the person
entitled thereto, whether before or after the time of the meeting stated
therein, shall be deemed equivalent to notice.

       (D) Place of Meetings. The Board may hold its meetings at such place or
places within or without the State of Delaware as the Board may from time to
time determine, or as shall be designated in the respective notices or waivers
of notice thereof.

       (E) Quorum and Manner of Acting. Except as otherwise required by the
Certificate of Incorporation, a majority of the total number of directors then
in office (but not less than two if the number of Directors is greater than one)
shall be present in person at any meeting of the Board in order to constitute a
quorum for the transaction of business at such meeting, and except as otherwise
required by the Certificate of Incorporation or by law, the vote of a majority
of those directors present at any such meeting at which a quorum is present
shall be necessary for the passage of any resolution or act of the Board.

       (F) Organization. At each meeting of the Board, one of the following
shall act as chairman of the meeting and preside, in the following order of
precedence
              (a) the Chairman of the Board, in any;
              (b) the President (if a director);
              (c) any director chosen by a majority of the directors present.

The Secretary or, in the case of his absence, any person (who shall be an
Assistant Secretary, if an Assistant Secretary is present) whom the Chairman
shall appoint shall act as secretary of such meeting and keep the minutes
thereof.

       SECTION 6. Directors' Consent in Lieu of Meeting. Any action required or
permitted to be taken at any meeting of the Board may be taken without a
meeting, without prior notice, without a vote, if a consent in writing, setting
forth the action so taken, shall be signed by all the directors and such consent
is filed with the minutes of the proceedings of the Board.

       SECTION 7. Action by Means of Conference Telephone or Similar
Communications Equipment. Any one or more members of the Board may participate
in a meeting of the Board by means of conference telephone or similar
communications equipment by which all persons participating in the meeting can
hear each other, and participation in a meeting by such means shall constitute
presence in person at such meeting.

       SECTION 8. Committees of the Board. The Board may, by resolution passed
by a majority of the whole Board, designate one or more committees, each
committee to consist of one or more of the directors of the corporation. The
Board may designate one or more directors as alternate members of any committee,
who may replace any absent or disqualified member at any meeting of the
committee. In the absence or

<PAGE>   7
disqualification of a member of a committee, the member or members thereof
present at any meeting and not disqualified from voting, whether or not he or
they constitute a quorum, may unanimously appoint another member of the Board to
act at the meeting in the place of any such absent or disqualified member. Any
such committee, to the extent provided in the resolution of the Board, shall
have and may exercise all the powers and authority of the Board in the
management of the business and affairs of the Corporation, and may authorize the
seal of the Corporation to be affixed to all papers which may require it; but no
such committee shall have the power or authority in reference to amending the
Certificate of Incorporation, adopting an agreement of merger or consolidation,
recommending to the stockholders the sale, lease or exchange of all or
substantially all of the Corporation's property and assets, recommending to the
stockholders a dissolution of the Corporation or a revocation of a dissolution,
or amending the By-laws of the Corporation; and, unless the resolution
designating it expressly so provides, no such committee shall have the power or
authority to declare a dividend or to authorize the issuance of stock.

        Without limiting the generality of the foregoing, the board of directors
shall establish and maintain a compensation committee comprised of three
directors, none of whom may be an employee of the Company or any of its
subsidiaries. The compensation committee shall be responsible for recommending
to the full board of directors all stock option grants, bonuses and other
compensation arrangements for executives and key employees and loans and other
non-salary payments and other benefits and arrangements with employees and
affiliates and associates of the Company. The compensation committee shall have
such additional powers and duties as the board of directors from time to time
determines.

        The board of directors shall establish and maintain an audit committee
comprised of three directors. The audit committee shall be responsible for
selecting the Company's independent auditors and reviewing their audit, as well
as reviewing and approving the Company's internal controls and accounting
systems. The audit committee shall have such additional powers and duties as the
board of directors from time to time determines. [The audit committee shall be
governed by the Charter of the Audit Committee of the Board of Directors of
e.spire Communications, Inc.(the "Audit Committee Charter") attached hereto as
Exhibit A. In any instances in which this Section 8 of Article III and the Audit
Committee Charter conflict, the provisions of Audit Committee Charter shall
govern.

        In the event that the group of directors of the Company that are
specified to select a committee member as provided herein is deadlocked over its
selection of such committee member for more than 30 days, the full board of
directors shall select such committee member from among such group of directors.

                                   ARTICLE IV

                                    OFFICERS

        SECTION 1. Executive Officers. The executive officers of the Corporation
shall be a Chief Executive Officer, a President, a Chief Financial Officer, a
Secretary and a Treasurer and may include a Chairman of the Board, a Chief
Operating Officer and such other officers as the Board may appoint pursuant to
Section 3 of this Article IV. Any two or more offices may be held by the same
person, provided that the offices of President and Secretary shall be held by
different persons.

        SECTION 2. Authority and Duties. All officers as between themselves and
the Corporation, shall have

<PAGE>   8

such authority and perform such duties in the management of the Corporation as
may be provided in these By-laws or, to the extent so provided, by the Board.

        SECTION 3. Other Officers. The Corporation may have such other officers,
agents and employees as the Board may deem necessary, including one or more
Vice-Presidents, one or more Assistant Secretaries and one or more Assistant
Treasurers, each of whom shall hold office for such period, have such authority,
and perform such duties as the Board, the Chief Executive Officer, the
President, or the Chief Operating Officer may from time to time determine. The
Board may delegate to any executive officer the power to appoint or remove any
such officer, agents or employees.

        SECTION 4. Term of Office, Resignation and Removal. All officers shall
be elected or appointed by the Board and shall hold office for such term as may
be prescribed by the Board. Each officer shall hold office until his successor
has been elected or appointed and qualified or his earlier death or resignation
or removal in the manner hereinafter provided. The Board may require any officer
to give security for the faithful performance of his duties.

        Any officer may resign at any time by giving written notice to the Board
or to the Chief Executive officer, or to the President or to the Chief Operating
Officer, or to the Secretary, and such resignation shall take effect at the time
specified therein or, if the time when it shall become effective is not
specified therein, at the time it is accepted by action of the Board. Except as
aforesaid, the acceptance of such resignation shall not be necessary to make it
effective.

        All officers and agents elected or appointed by the Board shall be
subject to removal at any time by the Board with or without cause.

        SECTION 5. Vacancies. If the office of the Chief Executive Officer, the
President, Chief Financial Officer, the Secretary or the Treasurer or any other
office becomes vacant for any reason, the Board shall fill such vacancy or may
elect not to fill such vacancy. An officer so appointed or elected by the Board
shall serve only until such time as the unexpired term of his predecessor shall
have expired unless reelected or reappointed by the Board.

        SECTION 6. Chairman of the Board. If there shall be a Chairman of the
Board, he shall, unless provided otherwise by the Board by resolution, preside
at meetings of the Board and of the stockholders at which he is present, and
shall give counsel and advice to the Board and the officers of the Corporation
on all subjects concerning the welfare of the Corporation and the conduct of its
business. He shall perform such other duties as the Board may from time to time
determine.

        SECTION 7. The Chief Executive Officer. The Chief Executive Officer
shall be the most senior officer of the Corporation and unless the Chairman of
the Board be appointed and present or the Board has provided otherwise by
resolution, he shall preside at all meetings of the Board and the stockholders
at which is he present. He shall have responsibility for the short and long term
strategy of the Corporation, corporate development and investor relations and
shall cause decisions concerning the attainment of strategic, corporate
development and investor relations' objectives to be implemented.

<PAGE>   9

        SECTION 8. The President. The President, unless the Chairman of the
Board be appointed and present, or the Chief Executive Officer be appointed and
present or the Board has provided otherwise by resolution shall preside at all
meetings of the Board and the stockholders at which he is present. He shall,
along with the Chief Operating Officer (if one is appointed by the board), have
the day-to-day, general and active management and control of the business and
affairs of the Corporation subject to the control of the Chief Executive Officer
and subject to the control of the Board, and shall see that all orders of the
Chief Executive Officer and orders and resolutions of the Board are carried into
effect.

        SECTION 9. The Chief Operating Officer. He shall, along with the
President, have the day-to-day, general and active management and control of the
business and affairs of the Corporation subject to the control of the Chief
Executive Officer and subject to the control of the Board, and shall see that
all orders of the Chief Executive Officer and orders and resolutions of the
Board are carried into effect.

        SECTION 10. Chief Financial Officer. He shall have responsibility for
the financial matters of the Corporation, including the books and records, and
such other responsibilities as determined by the Board.

        SECTION 11. Vice-President. A Vice-President, which officer may have
such additional designations such as "Executive" or "Senior" as the Board may
provide, shall perform such duties as may be prescribed by the Board, the Chief
Executive Officer, the President, or Chief Operating Officer under whose
supervision he shall act.

        SECTION 12. The Secretary. The Secretary shall, to the extent
practicable, attend all meetings of the Board and all meetings of the
stockholders and shall record all votes and the minutes of all proceedings in a
book to be kept for that purpose. He shall give, or cause to be given, notice of
all meetings of the stockholders and of the Board, and shall perform such other
duties as may be prescribed by the Board, the Chief Executive Officer, or the
President or Chief Operating Officer, under whose supervision he shall act. He
shall keep in safe custody the seal of the Corporation and affix the same to any
duly authorized instrument requiring it and, when so affixed, it shall be
attested by his signature or by the signature of the Treasurer or, in appointed,
an Assistant Secretary or an Assistant Treasurer. He shall keep, or cause the
Corporation's transfer agent and registrar to keep, in safe custody the
certificate books and stockholder records and such other books and records as
the Board may direct and shall perform all other duties incident to the office
of Secretary and such other duties as from time to time may be assigned to him
by the Chief Executive Officer, President, Chief Operating Officer of the Board.

        SECTION 13. The Treasurer. The Treasurer shall have the care and custody
of the corporate funds and other valuable effects, including securities, and
shall keep full and accurate accounts of receipts and disbursements in books
belonging to the Corporation and shall deposit all moneys and other valuable
effects in the name and to the credit of the Corporation in such depositories as
may be designated by the Board. The Treasurer shall disburse the funds of the
corporation as may be ordered by the Chief Executive Officer, President, Chief
Financial Officer, or the Board, taking proper vouchers for such disbursements,
and shall render to the Chief Executive Officer, President and Chief Financial
Officer, Chief Operating Officer and the Board, at the regular meetings of the
Board, or whenever they may require it, an account of all his transactions as
Treasurer and of the financial condition of the Corporation; and, in general
perform all the duties incident to the office of Treasurer and such other duties
as from time to time may be assigned to him by the Chief

<PAGE>   10

Executive Officer, President, Chief Financial Officer, Chief Operating Officer,
or the Board.

                                    ARTICLE V

                  SHARES AND THEIR TRANSFER; FIXING RECORD DATE

        SECTION 1. Certificates for Shares. Every owner of stock of the
Corporation shall be entitled to have a certificate certifying the number and
class of shares owned by him in the Corporation, which shall otherwise be in
such form as shall be prescribed by the Board. Certificates shall be issued in
consecutive order and shall be numbered in the order of their issue, and shall
be signed by, or in the name of, the Corporation by the Chairman, if any, the
President or any Vice President and by the Treasurer (or an Assistant Treasurer,
if appointed) or the Secretary (or an Assistant Secretary, if appointed). In
case any officer or officers who shall have signed any such certificate or
certificates shall cease to be such officer or officers of the Corporation,
whether because of death, resignation or otherwise, before such certificate or
certificates shall have been delivered by the Corporation, such certificate or
certificates may nevertheless be adopted by the Corporation and be issued and
delivered as though the person or persons who signed such certificate had not
ceased to be such officer or officers of the Corporation.

        SECTION 2. Record. A record (herein called the stock record) in one or
more counterparts shall be kept of the name of the person, firm or corporation
owning the shares represented by each certificate for stock of the Corporation
issued, the number of shares represented by each such certificate, the date
thereof and, in the case of cancellation, the date of cancellation. Except as
otherwise expressly required by law, the person in whose name shares of stock
stand on the stock record of the Corporation shall be deemed the owner thereof
for all purposes as regards the Corporation.

        SECTION 3. Transfer and Registration of Stock.

        (a) The transfer of stock and certificates of stock which represent the
stock of the Corporation shall be governed by Article 8 of Subtitle 1 of Title 6
of the Delaware Code (the Uniform Commercial Code), as amended from time to
time.

        (b) Registration of transfers of shares of the Corporation shall be made
only on the books of the Corporation upon request of the registered holder
thereof, or of his attorney thereunto authorized by power of attorney duly
executed and filed with the Secretary of the Corporation, and upon the surrender
of the certificate or certificates for such shares properly endorsed or
accompanied by a stock power duly executed.

        SECTION 4. Addresses of Stockholders - Each stockholder shall designate
to the Secretary an address at which notices of meetings and all other corporate
notices may be served or mailed to him, and, if any stockholder shall fail to
designate such address, corporate notices may be served upon him by mail
directed to him at his post office address, if any, as the same appears on the
share record books of the Corporation or at his last known post office address.

        SECTION 5. Lost, Destroyed and Mutilated Certificates. The holder of any
shares of the Corporation shall immediately notify the Corporation of any loss,
destruction or mutilation of the certificate therefor, and

<PAGE>   11

the Board may, in its discretion, cause to be issued to him a new certificate or
certificates for shares, upon the surrender of the mutilated certificates or, in
the case of loss or destruction of the certificate, upon satisfactory proof of
such loss or destruction, and the Board may, in its discretion, require the
owner of the lost or destroyed certificate or his legal representative to give
the Corporation a bond in such sum and with such surety or sureties as it may
direct to indemnify the Corporation against any claim that may be made against
it on account of the alleged loss or destruction of any such certificate.

        SECTION 6. Regulations. The Board may make such rules and regulations as
it may deem expedient, not inconsistent with these By-laws, concerning the
issue, transfer and registration of certificates for stock of the Corporation.

        SECTION 7. Fixing Date for Determination of Stockholders of Record. In
order that the Corporation may determine the stockholders entitled to notice of
or to vote at any meeting of stockholders or any adjournment thereof, or to
express consent to corporate action in writing without a meeting, or entitled to
receive payment of any dividend or other distribution or allotment of any
rights, or entitled to exercise any rights in respect of any change, conversion
or exchange of stock or for the purpose of any other lawful action, the Board
may fix, in advance, a record date, which shall not be more than 60 nor less
than 10 days before the date of such meeting, nor more than 60 days prior to any
other action. A determination of stockholders entitled to notice of or to vote
at a meeting of the stockholders shall apply to any adjournment of the meeting;
provided, however, that the Board may fix a new record date for the adjourned
meeting.

                                   ARTICLE VI

                                      SEAL

        The Board may provide a Corporate seal, which shall be in the form of a
circle and shall bear the full name of the Corporation and the words "Corporate
Seal Delaware."

                                   ARTICLE VII

                                   FISCAL YEAR

        The fiscal year of the Corporation shall end on the 31st of December in
each year unless changed by resolution of the Board.

                                  ARTICLE VIII

                          INDEMNIFICATION AND INSURANCE

        Section 1. Power to Indemnify in Actions, Suits or Proceedings other
Than Those by or in the Right of the Corporation. Subject to Section 3 of this
Article VIII, the Corporation shall indemnify, to the fullest extent permitted
by applicable law, now or hereafter in effect, any person who was or is a party
or is threatened to be a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal,

<PAGE>   12

administrative or investigative (other than an action by or in the right of the
Corporation) by reason of the fact that he is or was a director or executive
officer (or in the Board's discretion, an employee or agent) of the Corporation,
or is or was a director, executive officer, (or in the Board's discretion, an
employee or agent) of the Corporation serving at request of the Corporation in
any other capacity for or on behalf of the Corporation, against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with such action, suit or
proceeding if he acted in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the Corporation, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful; provided, however, the Corporation shall be required to
indemnify an officer or director in connection with any actions, suit or
proceeding initiated by such person only if (i) such action, suit or proceeding
was authorized by the Board or (ii) the indemnification does not relate to any
liability arising under Section 16(b) of the Securities Exchange Act of 1934, as
amended, or any of the rules or regulations promulgated thereunder. The
termination of any action, suit or proceeding by judgment, order, settlement, or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
Corporation, and, with respect to any criminal action or proceeding, had
reasonable cause to believe that his conduct was unlawful.

        Section 2. Power to Indemnify in Actions, Suits or Proceedings by or in
the Right of the Corporation. Subject to Section 3 of this Article VIII, the
Corporation shall indemnify any person who was or is a party or is threatened to
be made a party to any threatened, pending or completed action or suit by or in
the right of the Corporation to procure a judgment in its favor by reason of the
fact that he is or was a director, executive officer, employee or agent of the
Corporation, or is or was a director, executive officer, (or in the Board's
discretion, an employee or agent) of the Corporation serving at the request of
the Corporation as a director or executive officer of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
against expenses (including attorneys' fees) actually reasonably incurred by him
in connection with the defense or settlement of such action or suit if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Corporation; except that no indemnification shall be
made in respect of any claim, issue or matter as to which such person shall have
been adjudged to be liable to the Corporation unless and only to the extent that
the Court of Chancery or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the Court of Chancery
or such other court shall deem proper.

        Section 3. Authorization of Indemnification. Any indemnification under
this Article VIII (unless ordered by a court) shall be made by the Corporation
only as authorized in the specific case upon a determination that
indemnification of the director or executive officer is proper in the
circumstances because he has met the applicable standard of conduct set forth in
Section 1 or Section 2 of this Article VIII, as the case may be. Such
determination shall be made (i) by the Board of Directors by a majority vote of
directors who were not parties to such action, suit or proceeding (even if such
majority vote constitutes less than a quorum), or (ii) if the majority vote of
disinterested directors so directs (even if such majority vote constitutes less
than a quorum), by independent legal counsel in a written opinion, or (iii) by
the stockholders. To the extent, however, that a director or executive officer
of the Corporation has been successful on the merits or otherwise in defense of
any action, suit or proceeding described above, or the defense of any claim,
issue or matter therein, he shall be indemnified against expenses (including
attorneys' fees) actually and reasonably incurred by him in

<PAGE>   13

connection therewith, without the necessity of authorization in the specific
case.

        Section 4. Good Faith Defined. For purposes of any determination under
Section 3 of this Article VIII, a person shall be deemed to have acted in good
faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Corporation, or, with respect to any criminal action or
proceeding, to have had no reasonable cause to believe his conduct was unlawful,
if his action is based on the records or books of account of the Corporation or
another enterprise, or on information supplied to him by the officers of the
Corporation or another enterprise in the course of their duties, or on the
advice of legal counsel for the Corporation or another enterprise or on
information or records given or reports made to the Corporation or another
enterprise by an independent certified public accountant or by an appraiser or
other expert selected with reasonable care by the Corporation or another
enterprise. The term "another enterprise" as used in this Section 4 shall mean
any other corporation or any partnership, joint venture, trust, employee benefit
plan or other enterprise of which such person is or was serving at the request
of the Corporation as a director or executive officer. The provisions of this
Section 4 shall not be deemed to be exclusive or to limit in any way the
circumstances in which a person may be deemed to have met the applicable
standard of conduct set forth in Sections l or 2 of this Article VIII, as the
case may be.

        Section 5. Indemnification by a Court. Notwithstanding any contrary
determination in the specific case under Section 3 of this Article VIII, and
notwithstanding the absence of any determination thereunder, any director or
executive officer may apply to any court of competent jurisdiction in the State
of Delaware for indemnification to the extent otherwise permissible under
Sections 1 and 2 of this Article VIII. The basis of such indemnification by a
court shall be a determination by such court that indemnification of the
director or executive officer is proper in the circumstances because he has met
the applicable standards of conduct set forth in Section 1 or 2 of this Article
VIII, as the case may be. Neither a contrary determination in the specific case
under Section 3 of this Article VIII nor the absence of any determination
hereunder shall be a defense to such application or create a presumption that
the director or executive officer seeking indemnification has not met any
applicable standard of conduct. Notice of any application for indemnification
pursuant to this Section 5 shall be given to the Corporation promptly upon the
filing of such application. If successful, in whole or in part, the director or
executive officer seeking indemnification shall also be entitled to be paid the
expense of prosecuting such application.

        Section 6. Expenses Payable in Advance. Expenses (including attorneys'
fees) incurred by a director or executive officer in defending any civil,
criminal proceeding, administrative or investigative action, suit or proceeding
shall be paid by the Corporation in advance of the final disposition of such
action, suit or proceeding upon receipt of an undertaking by or on behalf of
such director or executive officer to repay such amount if it shall ultimately
be determined that he is not entitled to be indemnified by the Corporation as
authorized in this Article VIII, which undertaking may be accepted without
reference to the financial ability of such person to make such payment. Such
expenses incurred by other employees and agents may be so paid upon such terms
and conditions, if any, as the Board of Directors deems appropriate.

        Section 7. Non-exclusivity of Indemnification and Advancement of
Expenses. The indemnification and advancement of expenses provided by or granted
pursuant to this Article VIII shall not be deemed exclusive of any other rights
to which those seeking indemnification or advancement of expenses may be
entitled under any By-law, agreement, contract, vote of stockholders or
disinterested directors or pursuant to

<PAGE>   14

the direction (howsoever embodied) of any court of competent jurisdiction or
otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office, it being the policy of the
Corporation that indemnification of the persons specified in Sections 1 and 2 of
this Article VIII shall be made to the fullest extent permitted by law.

        Section 8. Insurance. The Corporation may purchase and maintain
insurance on behalf of any person who is or was a director or executive officer
of the Corporation, or is or was a director or executive officer of the
Corporation serving at the request of the Corporation as a director or executive
officer of another corporation, partnership, joint venture, trust or other
enterprise against any liability asserted against him and incurred by him in any
such capacity, or arising out of his status as such, whether or not the
Corporation would have the power or the obligation to indemnify him against such
liability under the provisions of this Article VIII, the DGCL or otherwise.

        Section 9. Certain Definitions. For purposes of this Article VIII,
references to "the Corporation" shall include, in addition to the resulting
corporation, any constituent corporation (including any constituent of a
constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its
directors or executive officers, so that any person who is or was a director or
executive officer of such constituent corporation, or is or was a director or
executive officer of such constituent corporation serving at the request of such
constituent corporation as a director or executive officer of another
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise, shall stand in the same position under the provisions of this
Article VIII with respect to the resulting or surviving corporation as he would
have with respect to such constituent corporation if its separate existence had
continued. For purposes of this Article VIII, references to "fines" shall
include any excise taxes assessed on a person with respect to an employee
benefit plan; and references to "serving at the request of the Corporation"
shall include any service as a director or executive officer of the Corporation
which imposes duties on, or involves services by, such director or executive
officer with respect to an employee benefit plan, its participant or
beneficiaries; and a person who acted in good faith and in a manner he
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner "not
opposed to the best interests of the Corporation" as referred to in this Article
VIII.

        Section 10. Procedure for Indemnification of Directors and Officers. Any
indemnification of a director or officer of the Corporation under Sections 1
and 2 or advance of costs, charges and expenses to a director or officer under
Section 6 of this Article VIII, shall be made promptly, and in any event within
30 days, upon the written request of the director or officer. If a determination
by the Corporation that the director or officer is entitled to indemnification
pursuant to this Article VIII, and the Corporation fails to respond within 60
days to a written request for indemnity, the Corporation shall be deemed to have
approved such request. If the Corporation denies a written request for indemnity
or advancement of expenses, in whole or in part, or if payment in full pursuant
to such request is not made within 30 days, the right to indemnification or
advances as granted by this Article VIII shall be enforceable by the director or
officer in any court of competent jurisdiction.

        Section 11. Survival; Preservation of Other Rights. The foregoing
indemnification provisions shall be deemed to be a contract between the
Corporation and each director, officer, employee and agent who serves in any
such capacity at any time while these provisions as well as the relevant
provisions of the

<PAGE>   15

Delaware General Corporation Law are not in effect and any repeal or
modification thereof shall not affect any right or obligation then existing with
respect to any state of facts then or previously existing or any action, suit,
or proceeding previously or thereafter brought or threatened based, in whole or
in part upon any such state of facts. Such a "contract right" may not be
modified retroactively without the consent of such director, officer, employee
or agent. The indemnification and advancement of expenses provided by, or
granted pursuant to, this Article VIII shall, unless otherwise provided when
authorized or ratified, continue as to a person who has ceased to be a director
or executive officer and shall inure to the benefit of the heirs, executors and
administrators of such a person.

        The indemnification provided by this Article VIII shall not be deemed
exclusive of any other rights to which those indemnified may be entitled under
any other By-law, agreement, vote of stockholders or disinterested directors or
otherwise, both as to action in his official capacity and as to action in any
other capacity while holding such office, and shall continue as to a person who
has ceased to be a director, officer, employee or agent and shall inure to the
benefit of the heirs, executors and administrators of such a person. The
Corporation may enter into a separate written agreement with any director,
officer, employee or agent of the Corporation that expressly provides for
indemnification and reimbursement of such person to the full extent permitted by
this Article VIII, on the same terms and conditions provided herein.

        Section 12. Limitation on Indemnification. Notwithstanding anything
contained in this Article VIII to the contrary, except for proceedings to
enforce rights to indemnification (which shall be governed by Section 5 hereof),
the Corporation shall not be obligated to indemnify any director or executive
officer in connection with a proceeding (or part thereof) initiated by such
person unless such proceeding (or part thereof) was authorized or consented to
by the Board of Directors of the Corporation.

        Section 13. Severability. If this Article VIII or any portion hereof
shall be invalidated on any ground by any court of competent jurisdiction, then
the Corporation shall nevertheless indemnify each director or officer and may
indemnify each employee or agent of the Corporation as to costs, charges and
expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement with respect to any action, suit or proceeding, whether civil,
criminal, administrative or investigative, including an action by or in the
right of the Corporation, to the fullest extent permitted by any applicable
portion of this Article VIII that shall not have been invalidated and to the
fullest extent permitted by applicable law.

                                   ARTICLE IX

                                   AMENDMENTS

        Subject to the provisions of the Certificate of Incorporation of the
Corporation, any provision contained in these By-laws may be amended, repealed
or adopted by the Board of Directors or by vote of the stockholders at the time
entitled to vote in the election of any directors.

<PAGE>   16

                                                                       EXHIBIT A

                         CHARTER OF THE AUDIT COMMITTEE
                          OF THE BOARD OF DIRECTORS OF
                          E.SPIRE COMMUNICATIONS, INC.

AUTHORITY

The Audit Committee (the "Committee") of the Board of Directors (the "Board") of
e.Spire Communications, Inc. (the "Company") is established pursuant to Article
III, Section 8 of the Company's Amended and Restated By-laws and Section 141(c)
of the Delaware General Corporation Law. The presence in person or by telephone
of a majority of the Committee's members shall constitute a quorum for any
meetings of the Committee. All actions of the Committee will require the vote of
a majority of its members present at a meeting of the Committee at which a
quorum is present.

PURPOSE

The primary purpose of the Committee is to assist the Board in fulfilling its
responsibility to oversee management's conduct of the Company's financial
reporting process, including by overviewing the financial reports and other
financial information provided by the Company to any governmental or regulatory
body, the public or other users thereof, the Company's systems of internal
accounting and financial controls, the annual independent audit of the Company's
financial statements and the Company's legal compliance and ethics programs as
established by management and the Board. In so doing, it is the responsibility
of the Committee to maintain free and open means of communication between the
directors, the independent auditors, the internal auditors and the financial and
senior management of the Company.

In discharging its oversight role, the Committee is empowered to investigate any
matter brought to its attention with full access to all books, records,
facilities and personnel of the Company and the power to retain outside counsel,
auditors or other experts for this purpose. The Board and the Committee are in
place to represent the Company's shareholders; accordingly, the outside auditor
is ultimately accountable to the Board and the Committee.

The Committee shall review the adequacy of this Charter on an annual basis.

<PAGE>   17

MEMBERSHIP

The Committee shall be comprised of not less than three members of the Board,
and the Committee's composition will meet the requirements of the Audit
Committee Policy of the NASD (the "NASD Policy").

Accordingly, all of the members will be directors:

Who have no relationship to the Company that may interfere with the exercise of
their independence from management and the Company; and

Who are financially literate or who become financially literate within a
reasonable period of time after appointment to the Committee. In addition, at
least one member of the Committee will have accounting or related financial
management expertise.

Notwithstanding paragraph (1) above, as permitted by the NASD Policy, one
director who is not independent and not a current employee of the Company or an
immediate family member of an employee, may be appointed to the Committee if the
Board, under exceptional and limited circumstances, determines that membership
on the Committee by the individual is required by the best interests of the
Company and its shareholders, and the Board discloses, in the next annual proxy
statement subsequent to such determination, the nature of the relationship and
the reasons for that determination.

MEETINGS

The Committee shall meet with such frequency and at such intervals as it shall
determine is necessary to carry out its duties and responsibilities. As part of
its purpose to foster open communications, the Committee shall meet at least
annually with management, the head of the internal auditing department and the
Company's independent auditors in separate sessions to discuss any matters that
the Committee or each of these groups or persons believe should be discussed
privately. In addition the Committee, or any member thereof designated Chairman
of the Committee, should meet or confer with the independent auditors and
management quarterly to review the Company's periodic financial statements prior
to the their filing with the Securities and Exchange Commission. The Committee
may ask members of management and others to attend its meetings.

KEY RESPONSIBILITIES

The Committee's job is one of oversight and it recognizes that the Company's
management is responsible for preparing the Company's financial statements and
that the outside auditors are responsible for auditing those financial
statements. Additionally, the Committee recognizes that financial management, as
well as the outside auditors, have more time, knowledge and more detailed
information on the Company than do Committee members; consequently, in carrying
out its oversight responsibilities, the Committee is not providing any expert or
special assurance as to the Company's financial statements or any professional
certification as to the outside auditor's work.

<PAGE>   18

The following functions shall be the common recurring activities of the
Committee in carrying out its oversight function. These functions are set forth
as a guide with the understanding that the Committee may diverge from this guide
as appropriate given the circumstances.

   The Committee shall:

        -       review with management and the outside auditors the audited
                financial statements to be included in the Company's Annual
                Report on Form 10-K (or the Annual Report to Shareholders if
                distributed prior to the filing of Form 10-K) and review and
                consider with the outside auditors the matters required to be
                discussed by Statement of Auditing Standards ("SAS") No. 61;

        -       as a whole, or through the Committee chair, review with the
                outside auditors the Company's interim financial results to be
                included in the Company's quarterly reports to be filed with
                Securities and Exchange Commission and the maters required to be
                discussed by SAS No. 61; this review will occur prior to the
                Company's filing of the Form 10-Q;

        -       request from the outside auditors annually, a formal written
                statement delineating all relationships between the auditors and
                the Company consistent with Independence Standards Board
                Standard Number 1 ("Standard No. 1");

        -       discuss with the outside auditors any such disclosed
                relationships and their impact on the outside auditor's
                independence;

        -       recommend that the Board take appropriate action to oversee the
                independence of the outside auditors;

        -       prepare a report to be included in each annual proxy statement
                of the Company commencing after December 15, 2000 which states,
                among other things, whether (i) the Committee has reviewed and
                discussed with management the audited financial statements to be
                included in the Company's Annual Report on Form 10-K, (ii) the
                Committee has discussed with the Company's independent auditors
                the matters that the auditors are required to discuss with the
                Committee by SAS No. 61, (iii) the Committee has received the
                written disclosures and letter from the Company's independent
                auditors required by Standard No. 1 and has discussed with the
                independent auditors their independence, and (iv) the Committee
                has recommended to the Board that the audited financial
                statements be included in the Company's Annual Report on Form
                10-K for the last fiscal year;

        -       review with the independent auditors, the Company's internal
                auditors and financial and accounting personnel, the adequacy
                and effectiveness of the accounting and financial controls of
                the Company and elicit any recommendations for the improvement
                of such control procedures or particular areas where new or more
                detailed controls or procedures are desirable;

        -       review the internal audit function of the Company, including the
                independence and authority of its reporting obligations, the
                proposed audit plans for the coming year, and the coordination
                of such

<PAGE>   19

                plans with the independent auditors;

        -       review accounting and financial human resources and succession
                planning within the Company;

        -       submit the minutes of all meetings of the Committee to, or
                discuss the matters discussed at each Committee meeting with,
                the Board; and

        -       investigate any matter brought to its attention within the scope
                of its duties, with the power to retain outside counsel for this
                purpose if, in its judgment, that is appropriate.

The Committee recognizes the outside auditors' ultimate accountability to the
Board and the Committee as representatives of the shareholders of the Company.
In connection therewith, the Committee, subject to any action that may be taken
by the full Board, shall have the ultimate authority and responsibility to
select (or nominate for shareholder approval), evaluate and, where appropriate,
replace the outside auditor.

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