Document:

<PAGE>

EXHIBIT 4.2

                             DCH TECHNOLOGY, INC.

                            STOCK OPTION AGREEMENT
                                    [FORM]

     This DCH Technology, Inc. Stock Option Agreement (the "Agreement"), by and
between DCH Technology, Inc., a Colorado corporation (the "Company"), and
____________ ("Optionee"), is made effective as of this _____ day of __________,
1999.

                                   RECITALS

     1.   Pursuant to the DCH Technology, Inc. 1999 Stock Option Plan (the
"Plan"), the Board of Directors of the Company (the "Board") has authorized the
grant of an option to purchase common stock of the Company ("Common Stock") to
Optionee, effective on the date indicated above, thereby allowing Optionee to
acquire a proprietary interest in the Company in order that Optionee will have
further incentive for continuing his or her employment by, and increasing his or
her efforts on behalf of, the Company or an Affiliate of the Company.

     2.   The Company desires to issue a stock option to Optionee and Optionee
desires to accept such stock option on the terms and conditions set forth below.

     NOW THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties agree as follows:

                                   AGREEMENT

     1.   Option Grant. The Company hereby grants to the Optionee, as a separate
          ------------
incentive and not in lieu of any fees or other compensation for his or her
services, an option to purchase, on the terms and conditions hereinafter set
forth, all or any part of an aggregate of _________________ (___________) shares
of authorized but unissued shares of Common Stock, at the Purchase Price set
forth in paragraph 2 of this Agreement.

     2.   Purchase Price. The Purchase Price per share (the "Option Price")
          --------------
shall be $_________, which is not less than eighty five percent (85%) [or one
hundred ten percent (110%)] of the fair market value per share of Common Stock
on the date hereof. The Option Price shall be payable in the manner provided in
paragraph 9 below.

     3.   Adjustment. The number and class of shares specified in paragraph 1
          ----------
above, and the Option Price, are subject to appropriate adjustment in the event
of certain changes in the capital structure of the Company such as stock splits,
recapitalizations and other events which alter the per share value of Common
Stock or the rights of holders thereof. In connection with (i) any merger,
consolidation, acquisition, separation, or reorganization in which more than
fifty percent (50%) of

                                       1
<PAGE>

the shares of the Company outstanding immediately before such event are
converted into cash or into another security, (ii) any dissolution or
liquidation of the Company or any partial liquidation involving fifty percent
(50%) or more of the assets of the Company, (iii) any sale of more than fifty
percent (50%) of the Company's assets, or (iv) any like occurrence in which the
Company is involved, the Company may, in its absolute discretion, do one or more
of the following upon ten days' prior written notice to the Optionee: (a)
accelerate any vesting schedule to which this option is subject; (b) cancel this
option upon payment to the Optionee in cash, to the extent this option is then
exercisable, of any amount which, in the absolute discretion of the Company, is
determined to be equivalent to any excess of the market value (at the effective
time of such event) of the consideration that the Optionee would have received
if this option had been exercised before the effective time over the Option
Price; (c) shorten the period during which this option is exercisable (provided
that this option shall remain exercisable, to the extent otherwise exercisable,
for at least ten days after the date the notice is given); or (d) arrange that
new option rights be substituted for the option rights granted under this
option, or that the Company's obligations under this option be assumed, by an
employer corporation other than the Company or by a parent or subsidiary of such
employer corporation. The actions described in this paragraph 3 may be taken
without regard to any resulting tax consequence to the Optionee.

[OPTIONAL FOUR YEAR VESTING]

     4.   Option Exercise. Commencing on the date one (1) year after the date of
          ---------------
this Agreement the right to exercise this option will accrue as to one-fourth
(1/4) of the number of shares subject to this option. Thereafter, the right to
exercise the remainder of this option will accrue in twelve (12) equal quarterly
installments. Shares entitled to be, but not, purchased as of any accrual date
may be purchased at any subsequent time, subject to paragraphs 5 and 6 below.
The number of shares which may be purchased as of any such anniversary date will
be rounded up to the nearest whole number. No partial exercise of the option may
be for an aggregate exercise price of less than One Hundred Dollars ($100). In
order to exercise any part of this option, Optionee must agree to be bound by
the Company's Shareholder Buy-Sell Agreement, if any, existing at the time of
the exercise of this Option.

[OPTIONAL IMMEDIATE VESTING]

     4.   Option Exercise. Commencing on the date of this Agreement, the right
          ---------------
to exercise this option will accrue as to all of the shares subject to this
option. Shares entitled to be, but not, purchased as of the accrual date may be
purchased at any subsequent time, subject to paragraphs 5 and 6 below. No
partial exercise of the option may be for an aggregate exercise price of less
than One Hundred Dollars ($100). In order to exercise any part of this option,
Optionee must agree to be bound by the Company's Shareholder Buy-Sell Agreement,
if any, existing at the time of the exercise of this Option.

     5.   Termination of Option. The right to exercise this option will lapse in
          ---------------------
four (4) equal installments of the number of shares subject to this option on
each of the sixth, seventh, eighth, and ninth anniversaries of the effective
date of this Agreement. Notwithstanding any other provision of this Agreement,
this option may not be exercised after, and will completely expire on, the close
of business on the date ten (10) years after the effective date of this
Agreement, unless terminated sooner pursuant to paragraph 6 below.

                                       2
<PAGE>

     6.   Termination of Employment. In the event of termination of Optionee's
          -------------------------
employment with the Company for any reason, this option will terminate three (3)
months after the date of the termination of Optionee's employment, unless
terminated earlier pursuant to paragraph 5 above. However, (i) if termination is
due to the death of Optionee, the Optionee's estate or a legal representative
thereof, may at any time within and including six (6) months after the date of
death of Optionee, exercise the option to the extent it was exercisable at the
date of termination; or (ii) if termination is due to Optionee's "disability"
(as determined in accordance with Section 22(e)(3) of the Internal Revenue
Code), Optionee may, at any time, within one (1) year following the date of this
Agreement, exercise the option to the extent it was exercisable at the date of
termination. If the Optionee or his or her legal representative fails to
exercise the option within the time periods specified in this paragraph 6, the
option shall expire. The Optionee or his or her legal representative may, on or
before the close of business on the earlier of the date for exercise set forth
in paragraph 5 or the dates specified in paragraph 4 above, exercise the option
only to the extent Optionee could have exercised the option on the date of such
termination of employment pursuant to paragraphs 4 and 5 above.

     7.   Repurchase Option of Company. Pursuant to Section 6.1.8 of the Plan,
          ----------------------------
in the event of termination of Optionee's employment with the Company for any
reason, the Company shall have an option to repurchase ("Repurchase Option") any
Common Stock owned by the Optionee or his or her heirs, legal representatives,
successors or assigns at the time of termination, or acquired thereafter by any
of them at any time, by way of an option granted hereunder. The Repurchase
Option must be exercised, if at all, by the Company within ninety (90) days
after the date of termination upon notice ("Repurchase Notice") to the Optionee
or his or her heirs, legal representatives, successors or assigns, in
conformance with paragraph 13 below. The purchase price to be paid for the
shares subject to the Repurchase Option shall be One Hundred Fifteen Percent
(115%) of their book value. For the purposes of this paragraph, the Company's
book value shall be determined in accordance with generally accepted accounting
principles applied on a basis consistent with those previously applied by the
Company. The book value shall be fixed under this paragraph by the accountants
of the Company and shall be computed as of the last day of the Company's fiscal
quarter most recently preceding the Repurchase Notice. Any shares issued
pursuant to an exercise of an option hereunder shall contain the following
legend condition in addition to any other applicable legend condition:

     THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO REPURCHASE
     PROVISIONS IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY
     AND THE SHAREHOLDER, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF
     THE COMPANY.

     8.   Transferability. This option will be exercisable during Optionee's
          ---------------
lifetime only by Optionee. Except as otherwise set forth in the Plan, this
option will be non-transferable.

     9.   Method of Exercise. Subject to paragraph 10 below, this option may be
          ------------------
exercised by the person then entitled to do so as to any shares which may then
be purchased by delivering to the Company an exercise notice in the form
attached hereto as Exhibit A and:
                   ---------

                                       3
<PAGE>

          (a)  full payment of the Option Price thereof (and the amount of any
tax the Company is required by law to withhold by reason of such exercise) in
the form of:

               (i)   cash or readily available funds; or

               (ii)  delivery of Optionee's promissory note (the "Note")
substantially in the form attached hereto as Exhibit B in the amount of the
                                             ---------
aggregate Option Price of the exercised shares together with the execution and
delivery by the Optionee of the Security Agreement attached hereto as Exhibit C;
                                                                      ---------
or

               (iii) a written request to Net Exercise, as defined in this
paragraph 9(a)(iii). In lieu of exercising this Option via cash payment or
promissory note, Optionee may elect to receive shares equal to the value of this
Warrant (or portion thereof being canceled) by surrender of this Option at the
principal office of the Company together with notice of election to exercise by
means of a Net Exercise in which event the Company shall issue to Optionee a
number of shares of the Company computed using the following formula:

                                  X = Y (A-B)
                                      -------
                                       A

where X is the number of shares of stock to be issued to Optionee; Y is the
number of shares purchasable under this Option; A is the fair market value of
the stock determined in accordance with Section 6.1.12 of the Plan; and B is
the Option Price as adjusted to the date of such calculation.

          (b)  payment of any withholding or employment taxes, if any;

          (c)  an executed Shareholders Buy-Sell Agreement, if any, binding the
Company's shareholders and restricting the transfer of their shares, executed
appropriately by the Optionee and his or her spouse, if any.

The Company will issue a certificate representing the shares so purchased within
a reasonable time after its receipt of such notice of exercise, payment of the
Option Price and withholding or employment taxes, and execution of any existing
Shareholders Buy-Sell Agreement, with appropriate certificate legends.

     10.  Securities Laws. The issuance of shares of Common Stock upon the
          ---------------
exercise of the option will be subject to compliance by the Company and the
person exercising the option with all applicable requirements of federal and
state securities and other laws relating thereto. No person may exercise the
option at any time when, in the opinion of counsel to the Company, such exercise
is permitted under applicable federal or state securities laws. Nothing herein
will be construed to require the Company to register or qualify any securities
under applicable federal or state securities laws, or take any action to secure
an exemption from such registration and qualification for the issuance of any
securities upon the exercise of this option.

     11.  No Rights as Shareholder. Neither Optionee nor any person claiming
          ------------------------
under or through Optionee will be, or have any of the rights or privileges of, a
shareholder of the Company in

                                       4
<PAGE>

respect of any of the shares issuable upon the exercise of the option, unless
and until this option is properly and lawfully exercised.

     12.  No Right to Continued Employment. Nothing in this Agreement will be
          --------------------------------
construed as granting Optionee any right to continued employment. EXCEPT AS THE
COMPANY AND OPTIONEE WILL HAVE OTHERWISE AGREED IN WRITING, OPTIONEE'S
EMPLOYMENT WILL BE TERMINABLE BY THE COMPANY, AT WILL, WITH OR WITHOUT CAUSE FOR
ANY REASON OR NO REASON. Except as otherwise provided in the Plan, the Board in
its sole discretion will determine whether any leave of absence or interruption
in service (including an interruption during military service) will be deemed a
termination of employment for the purpose of this Agreement.

     13.  Notices. Any notice to be given to the Company under the terms of this
          -------
Agreement will be addressed to the Company, in care of its Secretary, at its
executive offices, or at such other address as the Company may hereafter
designate in writing. Any notice to be given to Optionee will be in writing and
delivered or mailed by registered or certified mail, return receipt requested,
postage prepaid, addressed to Optionee at the address set forth beneath
Optionee's signature in writing. Any such notice will be deemed to have been
duly given where deposited in a United States post office in compliance with the
foregoing.

     14.  Non-Transferrable. Except as otherwise provided in the Plan or in this
          -----------------
Agreement, the option herein granted and the rights and privileges conferred
hereby will not be transferred, assigned, pledged or hypothecated in any way
(whether by operation of law or otherwise). Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this option, or of any right
or upon any attempted sale under any execution, attachment or similar process
upon the rights and privileges conferred hereby, this option will immediately
become null and void.

     15.  Successor. Subject to the limitation on the transferability of the
          ---------
option contained herein, this Agreement will be binding upon and inure to the
benefit of the heirs, legal representatives, successors and assigns of the
parties hereto.

     16.  California Law. This Agreement will be governed by and construed in
          --------------
accordance with the laws of the State of California.

     17.  Type of Option. The option granted in this Agreement:
          --------------

     [ ]  Is intended to be an Incentive Stock Option ("ISO") within the meaning
          of Section 422 of the Internal Revenue Code of 1986, as amended.

     [ ]  Is a non-qualified Option and is not intended to be an ISO.

     18.  Plan Provisions Incorporated by Reference. A copy of the Plan is
          -----------------------------------------
attached hereto as Exhibit "A" and incorporated herein by this reference. In the
case of conflict between any provision in this Agreement and any provision in
the Plan or a Shareholder Buy-Sell Agreement, if any, the terms of this
Agreement shall prevail. In the case of conflict between any provision in the
Plan and a provision in a Shareholders Buy-Sell Agreement, if any, the terms of
the Plan shall prevail.

                                       5
<PAGE>

     19.  Term. Capitalized terms used herein, except as otherwise indicated,
          ----
shall have the same meaning as those terms have under the Plan.

                                       6
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year written below.

COMPANY:                           DCH TECHNOLOGY, INC.

                                   By:  __________________________

                                   Its: __________________________

OPTIONEE:                          _______________________________
                                   (Optionee)
                                   Address: ______________________

                                   _______________________________

                                       7
<PAGE>

                                   EXHIBIT A
                                EXERCISE NOTICE

     1.   Exercise of Option. Effective as of today, ____________________, the
          ------------------
undersigned ("Purchaser") hereby elects to purchase ____________________ shares
(the "Shares") of the Common Stock of DCH Technology, Inc. (the "Company") under
and pursuant to the DCH Technology, Inc. 1999 Stock Option Plan (the "Plan") and
the Stock Option Agreement dated _______________ (the "Option Agreement"). The
purchase price for the Shares shall be $_______, as required by the Option
Agreement.

     2.   Delivery of Payment. Purchaser herewith delivers to the Company the
full purchase price for the Shares in the form of:

          [ ]  Cash or readily available funds;
          [ ]  Promissory Note and Security Agreement;
          [ ]  Formal Request to Net Exercise;

     3.   Representations of Purchaser. Purchaser acknowledges that Purchaser
          ----------------------------
has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

     4.   Rights as Stockholder. Until the issuance (as evidenced by the
          ---------------------
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the Shares, no right to vote or receive dividends or
any other rights as a stockholder shall exist with respect to the Option,
notwithstanding the exercise of the Option. The Shares so acquired shall be
issued to the Optionee as soon as practicable after exercise of the Option.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date of issuance, except as provided in the Plan.

     5.   Tax Consultation. Purchaser understands that Purchaser may suffer
          ----------------
adverse tax consequences as a result of Purchaser's purchase or disposition of
the Shares. Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for
any tax advice.

     6.   Entire Agreement; Governing Law. The Plan and Option Agreement are
          -------------------------------
incorporated herein by reference. This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's interest except by
means of a writing signed by the Company and Purchaser. This agreement is
governed by the law of the State of California.

Submitted by:                                Accepted by:

                                       8
<PAGE>

PURCHASER:                                   DCH TECHNOLOGY, INC.

______________________________               By:  __________________________
______________________________               Its: __________________________
Signature

______________________________               _______________________________
Print Name                                   Date
Address: _____________________
Received:_____________________

                                       9Exhibit 4.1

                       MULTI-LINK TELECOMMUNICATIONS, INC.
                     AMENDED AND RESTATED STOCK OPTION PLAN

                 (Amended and Restated as of December 13, 1999)

     On January 15, 1997,  the  shareholders  of Multi-Link  Telecommunications,
Inc. (the  "Company")  approved the Company's  Stock Option Plan (the  "Original
Plan").  The  effective  date of the  Original  Plan was January 15,  1997.  The
maximum  number of shares of Common Stock  authorized to be issued upon exercise
of Stock Options (as defined below) granted under the Original Plan was 300,000.
As of  December  13,  1999,  279,390  shares of Common  Stock  were  subject  to
outstanding  Stock  Options or had been  issued upon  exercise of Stock  Options
under the Original  Plan.  Stock Options  granted prior to the effective date of
this Amended and  Restated  Stock Option Plan shall be governed by the terms and
provisions of the Original Plan.

     On March 22, 2000, the  shareholders  of the Company  approved this Amended
and Restated Stock Option Plan (the "Plan"),  effective as of December 13, 1999,
and the reservation of an additional 500,000 shares of Common Stock for issuance
upon  exercise of Stock  Options  granted  under the Plan.  The total  number of
shares of Common Stock that may be issued  pursuant to Stock  Options  under the
Plan is 800,000  (including  shares  reserved  for  issuance  under the Original
Plan). Stock Options granted on or after December 13, 1999, shall be governed by
the Plan.

     1. Purpose.

          This Plan provides for the grant of Stock Options,  Reload Options and
Stock Appreciation Rights to Employees and Consultants of the Company,  and such
of its  subsidiaries  (as defined in Section 424(f) of the Code) as the Board of
Directors  of the  Company  (the  "Board")  shall  from  time to time  designate
("Participating Subsidiaries"), in order to advance the interests of the Company
and its Participating Subsidiaries,  if any, through the motivation,  attraction
and retention of their respective Employees and Consultants.

     2. Incentive Stock Options and Nonstatutory Stock Options.

          The Stock Options  granted under this Plan may be either (a) Incentive
Stock Options  ("ISOs")  which are intended to be "incentive  stock  options" as
that term is defined  in  Section  422 of the Code;  or (b)  Nonstatutory  Stock
Options  ("NSOs")  which are  intended  to be  options  that do not  qualify  as
incentive  stock options under Section 422 of the Code. ISOs may only be granted
to individuals who are Employees. To the extent granted to Employees,  all Stock
Options shall be ISOs unless the Option Agreement  clearly  designates the Stock
Options granted thereunder,  or a specified portion thereof, as NSOs. Subject to
the other  provisions of this Plan, a  Participant  may receive ISOs and NSOs at
the same time, provided that the ISOs and NSOs are clearly designated as such.

<PAGE>

     3. Administration.

          3.1 Committee. With respect to grants of Stock Options, Reload Options
and Stock  Appreciation  Rights to Employees and Consultants other than officers
and  directors of the Company,  this Plan shall be  administered  by a committee
comprised of at least two members of the Board, unless the Board is comprised of
only one  director,  in which case this Plan will be  administered  by the Board
(the "Committee").  With respect to grants of Stock Options,  Reload Options and
Stock  Appreciation  Rights to  Employees  who are  officers or directors of the
Company,  this Plan shall be  administered  by the Board,  if each director is a
Disinterested  Person,  or by a special  committee of two or more  Disinterested
Persons.  Such  special  committee  may be the  Committee  if all of the members
thereof are  Disinterested  Persons,  or a separate  committee  appointed by the
Board  comprised of at least two  Disinterested  Persons.  The  Committee or the
Board,  as the case may be, shall have full  authority to administer  this Plan,
including, but not limited to, authority to interpret and construe any provision
of this Plan and any Stock  Option,  Reload Option or Stock  Appreciation  Right
granted  hereunder,  to adopt such rules and regulations for administering  this
Plan as it may deem necessary in order to comply with the  requirements  of this
Plan or the Code or in order that Stock  Options  that are  intended  to be ISOs
will be  classified  as incentive  stock  options under the Code, or in order to
conform to any regulation or to any change in any law or regulations  applicable
thereto and to take the actions permitted hereunder.  The Committee or the Board
may  delegate  any of its  responsibilities  under  this  Plan,  other  than its
responsibility  to make  grants  of Stock  Options,  Reload  Options  and  Stock
Appreciation Rights, to determine whether the Stock Appreciation Rights, if any,
payable to a  Participant  shall be paid in cash, in shares of Common Stock or a
combination  thereof,  or to interpret  and construe  this Plan. If the Board is
composed entirely of Disinterested  Persons, the Board may reserve to itself any
of the  authority  granted  to the  Committee  as set forth  herein,  and it may
perform and discharge all of the functions and responsibilities of the Committee
at any time that a duly constituted  Committee is not appointed and serving. All
references in this Plan to the "Committee" shall be deemed to refer to the Board
whenever  the  Board is  discharging  the  powers  and  responsibilities  of the
Committee,  and to any special  committee  appointed by the Board to  administer
particular aspects of this Plan.

          3.2 Actions of Committee.  All actions  taken and all  interpretations
and determinations made by the Committee in good faith (including determinations
of Fair Market  Value)  shall be final and binding  upon all  Participants,  the
Company and all other  interested  persons.  No member of the Committee shall be
personally liable for any action,  determination or interpretation  made in good
faith with  respect to this Plan,  and all members of the  Committee  shall,  in
addition to their rights as directors,  be fully indemnified by the Company with
respect to any such action, determination or interpretation.

     4.   Definitions.

          4.1  "Code."  The Code means the  Internal  Revenue  Code of 1986,  as
amended.

          4.2  "Common  Stock." A share of Common  Stock means a share of no par
value common stock of the Company.

                                      -2-

<PAGE>

          4.3  "Consultant." A Consultant means any person who is engaged by the
Company  or any  Participating  Subsidiary  to  render  consulting  or  advisory
services  as  an  independent  contractor  (and  not  as  an  Employee)  and  is
compensated for such services.

          4.4  "Disinterested  Person." A Disinterested  Person is a director of
the Company who,  during the shorter of (a) the one-year period prior to service
as an  administrator  of this Plan, or (b) the period  between the date on which
capital  stock of the Company is  registered  pursuant to Section 12 of the 1934
Act and the director's  service as an  administrator  of this Plan, has not been
granted or awarded equity securities  pursuant to this Plan or any other plan of
the  Company  or any of its  affiliates  except  as  may be  permitted  by  Rule
16b-3(c)(2) promulgated under the 1934 Act or any successor to such rule.

          4.5 "Fair  Market  Value." The Fair Market  Value of a share of Common
Stock on any date  shall be the  closing  bid price,  as quoted by the  National
Association  of Securities  Dealers  through  NASDAQ (its  automated  system for
reporting quotes), for the date in question.

          4.6  "Employee."  Employee means an individual  who performs  services
while in the employ of the Company or a Participating  Subsidiary subject to the
control  and  direction  of the  employer  entity  not only as to the work to be
performed but also as to the manner and method of performance.

          4.7 "1934 Act." The 1934 Act means the  Securities and Exchange Act of
1934, as amended.

          4.8 "Option  Agreement." An Option Agreement means a written agreement
evidencing a Stock Option.

          4.9  "Option  Price."  An  Option  Price  means  the  price  which the
Committee designates for the exercise of a Stock Option.

          4.10  "Participant." A Participant  means an Employee or Consultant to
whom a Stock Option, Reload Option and/or Stock Appreciation Right is granted.

          4.11  "Redemption  Value."  The  Redemption  Value of shares of Common
Stock  purchasable  under a Stock Option means the amount,  if any, by which the
Fair  Market  Value of one share of Common  Stock on the date on which the Stock
Option is exercised exceeds the Option Price for such share.

          4.12 "Reload  Option." A Reload  Option  means a Stock Option  granted
under and subject to the terms of Section 8 of this Plan.

          4.13 "Stock Appreciation  Right." A Stock Appreciation Right means the
right to receive  payment,  in shares of Common Stock,  cash or a combination of
shares of Common Stock and cash, of the Redemption  Value of a specified  number
of shares of Common Stock then purchasable under a Stock Option.

                                      -3-
<PAGE>

          4.14 "Stock Option." A Stock Option means the right granted under this
Plan to a Employee or Consultant to purchase,  at such time or times and at such
Option Price as are  determined  by the  Committee  and  specified in the Option
Agreement,  the number of shares of Common Stock determined by the Committee and
specified in the Option Agreement.

     5. Eligibility and Participation.

          Grants of Stock Options,  Reload Options and Stock Appreciation Rights
may be made to Employees  and  Consultants  of the Company or any  Participating
Subsidiary, if any. Any director of the Company or of a Participating Subsidiary
who is also an Employee or  Consultant  shall also be eligible to receive  Stock
Options,  Reload  Options  and Stock  Appreciation  Rights;  provided,  however,
members of the Committee  and  directors  who are not  Employees or  Consultants
shall  not be  eligible  to  receive  Stock  Options,  Reload  Options  or Stock
Appreciation  Rights  under this  Plan.  The  Committee  shall from time to time
determine the Employees or  Consultants  to whom Stock Options shall be granted,
the number of shares of Common Stock  subject to the Stock Options to be granted
to each such Employee or Consultant, the Option Price of such Stock Options, and
the terms and  provisions of such Stock  Options,  all as provided in this Plan.
The Option  Price of any ISO shall be not less than the Fair  Market  Value of a
share of Common Stock on the date on which the Stock Option is granted,  but the
Option  Price of an NSO may be less than the Fair  Market  Value on the date the
NSO is  granted  if the  Committee  so  determines.  If an ISO is  granted to an
Employee  who then owns  stock  possessing  more than 10% of the total  combined
voting  power  of all  classes  of  stock  of  the  Company  or  any  subsidiary
corporation of the Company,  the Option Price of such ISO shall be at least 110%
of the Fair Market Value of the Common Stock subject to the ISO at the time such
ISO is granted, and such ISO shall not be exercisable after five years after the
date on which it was granted.  Each Stock Option shall be evidenced by an Option
Agreement  containing  such terms and provisions as the Committee may determine,
subject to the provisions of this Plan.

     6. Shares of Common Stock Subject to this Plan.

          6.1 Maximum Number.  The maximum  aggregate number of shares of Common
Stock that may be made subject to Stock Options granted under this Plan shall be
800,000  authorized but unissued shares  (including  shares  allocated under the
Original Plan).  The aggregate Fair Market Value  (determined as of the time the
ISO is granted) of the Common  Stock  subject to ISOs  granted to a  Participant
which may first become exercisable in a particular  calendar year may not exceed
$100,000.  If any  shares of  Common  Stock  subject  to Stock  Options  are not
purchased or otherwise  paid for before such Stock Options  expire,  such shares
may again be made subject to Stock Options.

          6.2 Capital  Changes.  Subject to the provisions of Section 13 hereof,
in the event any  changes  are made to the shares of Common  Stock  (whether  by
reason  of  merger,  consolidation,   reorganization,   recapitalization,  stock
dividend,  stock split,  combination  of shares,  exchange of shares,  change in
corporate structure or otherwise),  proportionate  adjustments shall be made in:
(i) the  number of shares of Common  Stock  theretofore  made  subject  to Stock
Options;  (ii) the  purchase  price of shares of Common Stock  theretofore  made
subject to Stock  Options;  and (iii) the  aggregate  number of shares of Common

                                      -4-
<PAGE>

Stock  which  may be made  subject  to Stock  Options.  If any of the  foregoing
adjustments   shall  result  in  a  fractional  share,  the  fraction  shall  be
disregarded,  and the Company shall have no obligation to make any cash or other
payment with respect to such fractional share.

     7. Exercise of Stock Options.

          7.1 Time of  Exercise.  Subject to the  provisions  of this Plan,  the
Committee, in its discretion, shall determine the time when a Stock Option, or a
portion of a Stock Option,  shall become exercisable,  and the time when a Stock
Option, or a portion of a Stock Option,  shall expire.  Such time or times shall
be set forth in the  Option  Agreement  evidencing  such Stock  Option.  A Stock
Option  shall  expire,  to the  extent  not  exercised,  no later than the tenth
anniversary  of the date on which it was granted.  The Committee may  accelerate
the vesting of any  Participant's  Stock Option by giving  written notice to the
Participant.  Upon receipt of such notice, the Participant and the Company shall
amend the Option Agreement to reflect the new vesting schedule, if, however, the
Option  Agreement is not amended,  the notice  given by the  Committee  shall be
deemed to amend the Option Agreement with respect to the vesting  schedule.  The
acceleration  of the  exercise  period of a Stock  Option  shall not  affect the
expiration  date of that Stock Option.  Any shares of Common Stock not purchased
at the time a Stock Option first becomes exercisable shall remain purchasable at
any time until the Stock Option expires.

          7.2 Exercise of Stock  Options.  A  Participant  may elect to exercise
Stock  Options by  delivering  a written  notice to the Company  specifying  the
number of shares of Common Stock with  respect to which he exercises  such Stock
Options and  delivering  payment of the Exercise  Price of such Stock Options as
provided in this Section 7.2. The Exercise  Price shall become  immediately  due
upon  exercise  of  the  Stock  Options,  and  shall  be  payable  in one of the
alternatives specified below:

          (a)  full payment in cash or check made  payable to the  Corporation's
               order;

          (b)  with the prior consent of the Company,  full payment in shares of
               Common Stock valued at Fair Market Value on the exercise date;

          (c)  with  the  prior  consent  of  the  Company,  full  payment  in a
               combination of shares of Common Stock valued at Fair Market Value
               on the  exercise  date,  and cash or check  made  payable  to the
               Corporation's order; or

          (d)  full  payment  through  a   broker-dealer   sale  and  remittance
               procedure   pursuant  to  which  the  Participant  shall  provide
               concurrent    irrevocable   written   instructions   (i)   to   a
               Company-designated brokerage firm to effect the immediate sale of
               the  purchased  shares and remit to the Company,  out of the sale
               proceeds  available on the settlement  date,  sufficient funds to
               cover the  aggregate  Exercise  Price  payable for the  purchased

                                      -5-

<PAGE>

               shares plus all  applicable  Federal,  state and local income and
               employment  taxes  required  to be  withheld  by the  Company  in
               connection with such purchase, and (ii) to the Company to deliver
               the  certificates  for  the  purchased  shares  directly  to such
               brokerage firm in order to complete the sale transaction.

          7.3 Stock Appreciation Rights. The Committee,  in its sole discretion,
may permit a Participant to surrender all or part of an unexercised Stock Option
under this Plan in  exchange  for a  distribution  from the Company in an amount
equal to the excess of (i) the Fair Market Value (on the Option  surrender date)
of the number of shares in which the Participant is at the time vested under the
surrendered  Stock  Option  (or  surrendered  portion  thereof),  over  (ii) the
aggregate exercise price payable for such vested shares of Common Stock.

          (a)  No such Stock Option  surrender  shall be effective  unless it is
               approved by the Committee.  If the surrender is so approved, then
               the  distribution  to which  the  Participant  shall  accordingly
               become  entitled  may be made in shares of Common Stock valued at
               Fair Market Value on the Stock Option surrender date, in cash, or
               partly in shares and partly in cash,  as the  Committee  shall in
               its sole discretion deem appropriate.

          (b)  If the surrender of a Stock Option is rejected by the  Committee,
               then the Participant shall retain whatever rights the Participant
               had under the surrendered  Stock Option (or  surrendered  portion
               thereof) on the Stock Option surrender date and may exercise such
               rights at any time  prior to the  later of (i) five (5)  business
               days after the receipt of the rejection  notice, or (ii) the last
               day on  which  the  Stock  Option  is  otherwise  exercisable  in
               accordance  with the  terms  of the  instrument  evidencing  such
               option.

          7.4  Termination of Employment  Before  Exercise.  If a  Participant's
employment  with  the  Company  or a  Participating  Subsidiary,  if any,  shall
terminate by reason of the Participant's  death or disability within the meaning
of Section 22(e)(3) of the Code, any Stock Options then held by the Participant,
to the extent then exercisable under the applicable Option  Agreement(s),  shall
remain  exercisable  after the  termination  of his  employment  for a period of
twelve  months  (but in no event  beyond ten years from the date of grant of the
Stock Option). If a Participant's employment with the Company or a Participating
Subsidiary,  if any, shall terminate for any reason other than the Participant's
death or  disability,  any Stock  Options then held by the  Participant,  to the
extent then exercisable under the applicable Option  Agreement(s),  shall remain

                                      -6-

<PAGE>

exercisable after the termination of his or her employment for a period of three
months.  If the Stock Option is not exercised during the applicable  period,  it
shall be deemed to have been forfeited and of no further force or effect.

          7.5 Disposition of Forfeited Stock Options. Any shares of Common Stock
subject to Stock Options  forfeited by a  Participant  under this Plan shall not
thereafter be eligible for purchase by the Participant,  but may be made subject
to Stock Options granted to other Participants.

     8. Reload Options.

          8.1  Authorization of Reload Options.  Concurrently  with the award of
Stock Options to any Participant,  the Committee may authorize Reload Options to
purchase,  for cash or  shares  of  Common  Stock,  a number of shares of Common
Stock. The number of Reload Options shall equal:

          (a)  the  number  of  shares  of Common  Stock  used to  exercise  the
               underlying Stock Options; and

          (b)  to the extent  authorized by the Committee,  the number of shares
               of Common Stock used to satisfy any tax  withholding  requirement
               incident to the exercise of the  underlying  Stock  Options.  The
               grant of a Reload Option will become  effective upon the exercise
               of underlying  Stock Options or Reload Options through the use of
               shares  of  Common  Stock  held by the  Participant  for at least
               twelve months. Notwithstanding the fact that the underlying Stock
               Option may be an Incentive  Stock Option,  a Reload Option is not
               intended to qualify as an "incentive  stock option" under Section
               422 of the Code.

          8.2 Reload Option Amendment. Each Option Agreement shall state whether
the Committee has authorized Reload Options with respect to the underlying Stock
Options. Upon the exercise of an underlying Stock Option or other Reload Option,
the Reload  Option will be evidenced by an  amendment to the  underlying  Option
Agreement.

          8.3 Reload  Option  Price.  The Option Price per share of Common Stock
deliverable  upon the exercise of a Reload Option shall be the Fair Market Value
of a share of Common  Stock on the date the grant of the Reload  Option  becomes
effective.

          8.4 Term and Exercise.  Each Reload Option shall be fully  exercisable
six months from the date the grant of the Reload Option becomes  effective.  The
term of each Reload  Option shall be equal to the  remaining  option term of the
underlying Stock Option.

          8.5 Termination of Employment.  No additional  Reload Options shall be
granted to  Participants  when Stock Options and/or Reload Options are exercised

                                      -7-
<PAGE>

pursuant to the terms of this Plan following  termination  of the  Participant's
employment with the Company or a Participating Subsidiary.

          8.6  Applicability  of Stock Option  Sections.  Section 7 of this Plan
shall apply equally to Reload Options. Section 7 of this Plan is incorporated by
reference in this Section 8 as though fully set forth herein.

     9. Stock Appreciation Rights.

          9.1 Grant of Stock  Appreciation  Rights. The Committee may, from time
to time,  grant Stock  Appreciation  Rights to a Participant with respect to not
more  than the  number  of shares of Common  Stock  which  are,  or may  become,
purchasable under the Stock Options held by the Participant.  The Committee may,
in its sole  discretion,  specify  the  terms  and  conditions  of such  rights,
including  without  limitation the time period or time periods during which such
rights may be  exercised  and the date or dates upon  which  such  rights  shall
expire and become void and unexercisable;  provided,  however,  that in no event
shall such rights expire and become void and  unexercisable  later than the time
when the related Stock Option is exercised,  expires or terminates.  Each Option
Agreement  shall state  whether the  Committee  has granted  Stock  Appreciation
Rights and shall specify the terms and conditions of such rights, which shall be
subject to all the provisions of this Plan.

          9.2 Exercise of Stock Appreciation Rights. Subject to Section 9.3, and
in lieu of purchasing shares of Common Stock upon the exercise of a Stock Option
held by him, a Participant may elect to exercise the Stock Appreciation  Rights,
if any, he has been granted and receive payment of the Redemption  Value of all,
or any portion,  of the number of shares of Common  Stock  subject to such Stock
Option with  respect to which he has been  granted  Stock  Appreciation  Rights;
provided, however, that the Stock Appreciation Rights may be exercised only when
the Fair Market Value of the shares of Common Stock subject to such Stock Option
exceeds the exercise  price of the Stock Option.  A Participant  shall  exercise
Stock  Appreciation  Rights  by  delivering  a written  notice to the  Committee
specifying  the  number  of  shares of Common  Stock  with  respect  to which he
exercises  Stock  Appreciation  Rights and  agreeing to  surrender  the right to
purchase an  equivalent  number of shares of Common  Stock  subject to his Stock
Option. If a Participant  exercises Stock  Appreciation  Rights,  payment of his
Stock  Appreciation  Rights shall be made in  accordance  with Section 9.3 on or
before the 90th day after the date of exercise of the Stock Appreciation Rights.

          9.3  Form of  Payment.  If a  Participant  elects  to  exercise  Stock
Appreciation  Rights as  provided  in Section  9.2,  the  Committee  may, in its
absolute discretion, elect to pay any part or all of the Redemption Value of the
shares with respect to which the Participant  has exercised  Stock  Appreciation
Rights in: (i) cash;  (ii) shares of Common Stock;  or (iii) any  combination of
cash and shares of Common  Stock.  The  Committee's  election  pursuant  to this
Section 9.3 shall be made by giving written notice to the Participant  within 90
days after the date of exercise of the Stock Appreciation  Rights,  which notice
shall specify the portion which the Committee  elects to pay in cash,  shares of
Common Stock or a combination thereof. In the event any portion is to be paid in
shares of Common  Stock,  the number of shares of Common  Stock to be  delivered
shall be determined by dividing the amount which the Committee  elects to pay in

                                      -8-
<PAGE>

shares of Common  Stock by the Fair Market Value of one share of Common Stock on
the date of exercise of the Stock  Appreciation  Rights.  Any  fractional  share
resulting from any such calculation  shall be disregarded.  The shares of Common
Stock,  together  with any cash payable to the  Participant,  shall be delivered
within the 90-day period required above.

     10. No Contract of Employment.

          Nothing in this Plan shall  confer upon the  Participant  the right to
continue in the employ of the Company, or any Participating  Subsidiary, if any,
nor  shall  it  interfere  in any way  with the  right  of the  Company,  or any
Participating  Subsidiary,  if any, to discharge the Participant at any time for
any reason whatsoever,  with or without cause.  Nothing in this Section 10 shall
affect any rights or  obligations  of the Company or any  Participant  under any
written contract of employment.

     11. No Rights as a Shareholder.

          A Participant  shall have no rights as a  shareholder  with respect to
any shares of Common Stock  subject to a Stock Option  granted  under this Plan.
Except as provided in Section 6.2, no adjustments shall be made in the number of
shares of Common  Stock issued to a  Participant,  or in any other rights of the
Participant  upon  exercise  of a  Stock  Option,  by  reason  of any  dividend,
distribution or other right granted to shareholders for which the record date is
prior to the date of exercise of the Participant's Stock Option.

     12. Assignability.

          No Stock  Option,  Reload Option or Stock  Appreciation  Right awarded
under this Plan, nor any other rights acquired by a Participant under this Plan,
shall be  assignable or  transferable  by a  Participant,  other than by will or
applicable laws of intestate succession.  During a Participant's lifetime, Stock
Options  may be  exercised  only by such  Participant  or the  guardian or legal
representative of the Participant.  Notwithstanding the foregoing, the Committee
may, in its sole  discretion,  permit the  assignment or transfer of an NSO by a
Participant,  other than an officer or director,  and the exercise  thereof by a
person  other  than  such  Participant,  on such  terms  and  conditions  as the
Committee  in its  sole  discretion,  may  determine.  Any such  terms  shall be
determined at the time the NSO is granted,  and shall be set forth in the Option
Agreement. In the event of a Participant's death, the Stock Option or any Reload
Option  or  Stock   Appreciation   Right  may  be   exercised  by  the  personal
representative of the Participant's estate or, if no personal representative has
been appointed,  by the successor or successors in interest determined under the
Participant's will or under the applicable laws of intestate succession.

     13. Termination of Plan.

          In the event of dissolution or liquidation of the Company, or upon any
reorganization,  merger  or  consolidation  of the  Company  with  one  or  more
corporations where the Company is the surviving corporation and the shareholders
of the Company  immediately  prior to such transaction do not own at least fifty
percent (50%) of the issued and outstanding  Common Stock immediately after such
transaction, or upon any reorganization,  merger or consolidation of the Company

                                      -9-

<PAGE>

with  one  or  more  corporations   where  the  Company  is  not  the  surviving
corporation, or upon a sale of substantially all of the assets of the Company to
another corporation or entity or upon the sale of Common Stock to another person
or entity in one or a series of transactions with the result that such person or
entity owns more than fifty percent (50%) of the issued and  outstanding  Common
Stock immediately after such sale(s),  the Plan and all Stock Options and Reload
Options and Stock Appreciation  Rights, if any, outstanding under the Plan shall
terminate on the effective date of the transaction (or, in the event of a tender
offer  resulting  in the  sale of  fifty  percent  (50%)  or  more  of the  then
outstanding Common Stock (a "Tender Offer"),  30 days after the final expiration
of the Tender Offer) unless prior to the effective date of the  transaction  the
Board  elects,  in its sole  discretion,  to continue the Plan. In the event the
Board does not elect to continue the Plan,  however,  any Stock Options,  Reload
Options and Stock Appreciation  Rights theretofore granted and outstanding under
the  Plan  shall  become  immediately  exercisable  in full at such  time as the
approval of the transaction by the Board, or the final  expiration of any Tender
Offer  (notwithstanding  any  performance,  vesting or other criteria  contained
therein),  and  shall  remain  exercisable  until  the  effective  date  of such
transaction or 30 days after the final expiration of the Tender Offer, whichever
is  applicable  (unless the Stock Option,  Reload  Option or Stock  Appreciation
Right would otherwise  expire by its own terms on an earlier date).  The Company
shall give each optionee  written notice at least 30 days prior to the effective
date of any termination of the Plan as a result of a transaction described above
in order to permit the  optionee to exercise  his Stock  Options  and/or  Reload
Options and Stock  Appreciation  Rights,  if any, prior to the effective date of
termination.  Unless the Board has elected to continue the Plan,  any option not
exercised by the effective date of a transaction described above shall terminate
on such date.

     14. Withholding Taxes.

          The Company or Participating  Subsidiary,  if any, may take such steps
as it may deem necessary or appropriate  for the  withholding of any taxes which
the Company or the Participating  Subsidiary,  if any, is required by any law or
regulation  or any  governmental  authority,  whether  federal,  state or local,
domestic or foreign,  to withhold in connection  with any Stock  Option,  Reload
Option  or  Stock  Appreciation  Right,  including,  but  not  limited  to,  the
withholding of all or any portion of any payment or the  withholding of issuance
of shares of Common  Stock to be issued upon the  exercise of any Stock  Option,
Reload Option or Stock Appreciation Right, until the Participant  reimburses the
Company or  Participating  Subsidiary,  if any,  for the  amount the  Company or
Participating  Subsidiary,  if any, is required to withhold with respect to such
taxes,  or  canceling  any  portion  of such  award in an amount  sufficient  to
reimburse itself for the amount it is required to so withhold.

     15. Amendment.

          The Board may from time to time alter,  amend,  suspend or discontinue
this Plan,  including,  where applicable,  any modifications or amendments as it
shall deem  advisable in order that ISOs will be classified  as incentive  stock
options  under the Code,  or in order to  conform  to any  regulation  or to any
change in any law or regulations applicable thereto; provided,  however, that no
such action shall adversely  affect the rights and  obligations  with respect to
Stock Options at any time  outstanding  under this Plan;  and provided  further,
however,  that no such action  shall,  without the  approval of the holders of a
majority of the  outstanding  Common  Stock of the  Company,  (i)  increase  the

                                      -10-
<PAGE>

maximum  number of shares of the Common  Stock that may be made subject to Stock
Options (unless  necessary to effect the  adjustments  required by Section 6.2),
(ii) materially  increase the benefits accruing to Participants under this Plan,
or (iii) materially  modify the requirements as to eligibility for participation
in this Plan.

     16. Application of Section 16.

          With  respect  to  persons  subject  to  Section  16 of the 1934  Act,
transactions  under  this  Plan are  intended  to  comply  with  all  applicable
conditions of Rule 16b-3 or its successors under the 1934 Act. To the extent any
provision of this Plan or action by the Committee  fails to so comply,  it shall
be deemed null and void, to the extent  permitted by law and deemed advisable by
the Committee.

     17. Registration of Optioned Shares.

          The Stock Options shall not be exercisable unless the purchase of such
optioned shares is pursuant to an applicable  effective  registration  statement
under the  Securities  Act of 1933,  as amended (the "Act"),  or unless,  in the
opinion of counsel to the Company, the proposed purchase of such optioned shares
would be exempt  from the  registration  requirements  of the Act,  and from the
registration or qualification  requirements of applicable state securities laws.
The Company shall have no obligation to register any shares of Common Stock.

     18. Stock Restrictions.

          The  Committee  may provide that shares of Common Stock  issuable upon
the exercise of a Stock Option,  Reload Option or Stock  Appreciation  Right, be
subject to various restrictions,  including  restrictions which provide that the
Company has a right to prohibit sales of such shares of Common Stock, a right of
first  refusal  with  respect  to such  shares  of  Common  Stock  or a right or
obligation to repurchase all or a portion of such shares of Common Stock,  which
restrictions  may survive a  Participant's  term of employment with the Company.
The acceleration of time or times at which the Stock Option becomes  exercisable
may be conditioned upon the Participant's agreement to such restrictions.

     19. Nonexclusivity of this Plan.

          Neither the adoption of this Plan by the Board nor the  submission  of
this Plan to  shareholders  of the Company for  approval  shall be  construed as
creating  any  limitations  on the power or authority of the Board to adopt such
other or additional  incentive or other  compensation  arrangements  of whatever
nature as the Board may deem  necessary  or  desirable  or preclude or limit the
continuation  of any other  plan,  practice  or  arrangement  for the payment of
compensation or fringe benefits to employees generally, or to any class or group
of employees,  which the Company or any  Participating  Subsidiary,  if any, has
lawfully  put  into  effect,  including,  without  limitation,  any  retirement,
pension,  savings  and stock  purchase  plan,  insurance,  death and  disability
benefits and executive short-term incentive plans.

                                      -11-
<PAGE>

     20. Effective Date.

          This Plan was adopted by the Board and became effective as of December
13, 1999, and was approved by the shareholders of the Company on March 22, 2000.
No ISOs  shall be  granted  under  this Plan  subsequent  to 10 years  after its
original  effective  date,  although  NSOs may continue to be granted under this
Plan after such ten-year period. ISOs outstanding  subsequent to ten years after
the original  effective  date of this Plan shall  continue to be governed by the
provisions of this Plan.

                                      -12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]