Document:

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                                                                      EXHIBIT 4c

                       21ST CENTURY TELECOM GROUP, INC.
                        1998 EMPLOYEE STOCK OPTION PLAN

1.   Preamble.
     --------

     21st Century Telecom Group, Inc., an Illinois corporation (the "Company"),
establishes the 21st Century Telecom Group, Inc. 1998 Employee Stock Option Plan
(the "Plan"), effective April 14, 1998, as a means whereby the Company may,
through awards of non-qualified stock Options:

          (a)  provide employees of the Company and any of its Subsidiaries with
     additional incentive to promote the success of the Company's and its
     Subsidiaries' businesses;

          (b)  enable such employees to acquire proprietary interests in the
      Company: and

          (c)  encourage such employees to remain in the employ of the Company
     and its Subsidiaries.

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

     2.01 "Board" or "Board of Directors" means the board of directors of the
           -----      ------------------
Company.

     2.02 "Cause" means, (a) with respect to a Participant who has an employment
           -----
agreement with the Company, "Cause" as such term is defined in such employment
agreement, and (b) with respect to a Participant who does not have an employment
agreement with the Company, the Participant's (i) unsatisfactory job performance
as measured by management of the Company against the Participant's job
description, (ii) theft or embezzlement of any property of the Company or any
Subsidiary; (iii) gross, willful or wanton negligence in performing his/her
duties as an employee of the Company or any Subsidiary; (iv) unauthorized use of
the Company's or any Subsidiary's trade secrets or confidential information;
and/or (v) commission of a felony which adversely affects the Company's or any
Subsidiary's business, reputation or business relations, or of an act of fraud,
dishonesty or moral turpitude.

     2.03 "Code" means the Internal Revenue Code of 1986, as it exists now and
           ----
as it may be amended from time to time.

     2.04 "Committee" means the Compensation Committee of the Board.
           ---------

     2.05 "Common Stock" means the common stock of the Company, no par value,
           ------------
or, if the various series of common stock are eliminated by amendment to, or
restatement of, the Company's Articles of Incorporation, the resulting class of
equity securities ordinarily (and apart from rights accuring under special
circumstances) having the right to vote for the election of directors.

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     2.06 "Company" means 21st Century Telecom Group, Inc., an Illinois
           -------
corporation, and any successor thereto.

     2.07 "Exchange Act" means the Securities Exchange Act of 1934, as it exists
           ------------
now or from time to time may hereafter be amended.

     2.09 "Fair Market Value" means for the relevant day:
           -----------------

          (a)  If shares of Common Stock are listed or admitted to unlisted
          trading privileges on any national or regional securities exchange,
          the last reported sale price, regular way, on the composite tape of
          that exchange on the day Fair Market Value is to be determined;

          (b)  If the Common Stock is not listed or admitted to unlisted trading
          privileges as provided in paragraph (a), and if sales prices for
          shares of Common Stock are reported by the National Association of
          Securities Dealers, Inc. Automated Quotations, Inc. National Market
          System ("NASDAQ System"), then the last sale price for Common Stock
          reported as of the close of business on the day Fair Market Value is
          to be determined, or if no such sale takes place on that day, the
          average of the high bid and low asked prices so reported; if Common
          Stock is not traded on that day, the next preceding day on which such
          stock was traded; or

          (c)  If trading of the Common Stock is not reported by the NASDAQ
          System or on a stock exchange, Fair Market Value will be determined by
          the Committee based upon the best available data, which determination
          shall be conclusive for all purposes.

     2.10 "Option" means the right of a Participant purchase a specified
           ------
number of shares of Common Stock, subject to the terms and conditions of the
Plan and the agreement between the Company and the Participant evidencing such
right. No Options granted under this Plan are intended to qualify under Section
422 of the Code.

     2.11 "Option Date" means the date upon which an Option is awarded to a
           -----------
Participant under the Plan.

     2.12 "Option Price" means the price per share at which an Option may be
           ------------
exercised.

     2.13 "Participant" means an individual to whom an Option has been granted
           -----------
under the Plan.

                                   -2-

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     2.14 "Plan" means the 21st Century Telecom Group, Inc. 1998 Employee Stock
           ----
Option Plan as set forth herein and as from time to time amended.

     2.15 "Securities Act" means the Securities Act of 1933, as it exists now or
           --------------
from time to time may hereinafter be amended.

     2.16 "Subsidiary" means any corporation or other entity of which the
           ----------
majority voting power or equity interest is owned directly or indirectly by the
Company.

     2.17 Rules of Construction.
          ---------------------

          (a)  Governing Law. The construction and operation of this Plan are
               -------------
     governed by the internal laws of the State of Illinois, notwithstanding any
     choice of law provision.

          (b)  Undefined Terms. Unless the context requires another meaning, any
               ---------------
     term not specifically defined in this Plan has the meaning given to it by
     the Code.

          (c)  Headings. All headings in this Plan are for reference only and
               --------
     are not to be utilized in construing the Plan.

          (d)  Gender. Unless clearly appropriate, all nouns of whatever gender
               ------
     refer indifferently to persons of any gender.

          (e)  Singular and Plural. Unless clearly inappropriate, singular terms
               -------------------
     refer also to the plural and vice versa.
                                  ---- -----

          (f)  Severability. If any provision of this Plan is determined to be
               ------------
     illegal or invalid for any reason, the remaining provisions shall continue
     in full force and effect and shall be construed and enforced as if the
     illegal or invalid provision did not exist, unless the continuance of the
     Plan in such circumstances is not consistent with its purposes.

3.   Stock Subject to the Plan.
     -------------------------

     Except as otherwise provided in Section 9, the aggregate number of shares
of Common Stock that may be issued under Options granted under this Plan may not
exceed 50,000 shares. Reserved shares may be either authorized but unissued
shares or treasury shares, in the Board's discretion. If any awards hereunder
shall terminate or expire, as to any number of shares, new Options may
thereafter be awarded with respect to such shares.

                                      -3-

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4.   Administration.
     --------------

     The Plan shall be administered by the Committee. In addition to any other
powers set forth in this Plan, the Committee has the exclusive authority:

          (a)  to construe and interpret the Plan, and to remedy any ambiguities
     or inconsistencies therein;

          (b)  to establish, amend and rescind appropriate rules and regulations
     relating to the Plan;

          (c)  subject to the express provisions of the Plan, to determine the
     individuals who will receive awards of Options, the times when they will
     receive them, the number of shares to be subject to each award and the
     Option Price, payment terms, payment method, and expiration date applicable
     to each award;

          (d)  to contest on behalf of the Company or Participants, at the
     expense of the Company, and ruling or decision on any matter relating to
     the Plan or to any awards of Options;

          (e)  generally, to administer the Plan, and to take all such steps and
     make all such determinations in connection with the Plan and the awards of
     Options granted thereunder as it may deem necessary or advisable; and

          (f)  to determine the form in which tax withholding under Section 12
     of this Plan will be made.

5.   Eligible Employees.
     ------------------

     Subject to the provisions of the Plan, the Committee shall determine from
time to time those employees of the Company or a Subsidiary who shall be
designated as Participants and the number, if any, of Options to be awarded to
each such Participant; provided, however, that no Options shall be awarded under
the Plan after the expiration of the period of ten years from the date this Plan
is adopted by the Board.

6.   Terms and Conditions of Option.
     ------------------------------

     The Committee may, in its discretion, grant Options to any Participant
under the Plan. Each Option shall be evidenced by an agreement between the
Company and the Participant. Each Option agreement, in such form as is approved
by the Committee, shall be subject to the following express terms and conditions
and to such other terms and conditions, not inconsistent with the Plan as the
Committee may deem appropriate:

                                      -4-
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          (a)  Option Period. Each Participant's Option will expire as of the
               -------------
     earliest of:

               (i)    the date on which it is forfeited under the provisions
                      of Section 8;

               (ii)   10 years from the Option Date, or

               (iii)  the date on which it expires pursuant to the relevant
                      Option agreement.

          (b)  Option Price. At the time when the Option is granted, the
               ------------
     Committee will fix the Option Price. The Option Price may be greater than,
     less than or equal to the Fair Market Value on the Option Date, as
     determined in the sole discretion of the Committee.

          (c)  Other Option Provisions. The form of Option agreement authorized
               -----------------------
     by the Plan may contain such other provisions as the Committee may from
     time to time determine.

7.   Manner of Exercise of Options.
     -----------------------------

     To exercise an Option in whole or in part, a Participant (or, after the
Participant's death, the Participant's executor or administrator) must give
written notice to the Committee, stating the number of shares with respect to
which he intends to exercise the Option. The Company will issue the shares with
respect to which the Option is exercised upon payment in full of the amount
(the "Option Amount") determined by multiplying the number of shares with
respect to which the Option is being exercised by the Option Price. The Option
Amount may be paid in (i) cash, (ii) shares of Common Stock having an aggregate
Fair Market Value, as determined on the date of delivery, equal to the Option
Amount (provided, that all such shares of Common Stock have been held by the
Participant for at least six months prior to such exercise), or (iii) by
delivery of irrevocable instructions to a broker to promptly deliver to the
Company the amount of sale or loan proceeds necessary to pay for all Common
Stock acquired through such exercise and any tax withholding obligations
resulting from such exercise. The Option Amount may be paid in shares of Common
Stock which were received by the Participant upon the exercise of one or more
Options.

8.   Vesting.
     -------

     A Participant may not exercise an Option until it has become vested.
Options shall vest in accordance with the provisions of this Section 8 and the
Participant's Option Agreement.

          (a)  Unless the Committee establishes a different vesting schedule
     in a Participant's Option Agreement at the time when

                                      -5-

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     an Option is granted, no Option granted under this Plan shall vest during
     the first year following the date upon which it is granted. Thereafter, if
     the Participant has completed at least one year of active service for, and
     is still employed as a full-time employee by, the Company on July 1 of any
     succeeding year, such Option shall vest for 25% of the shares of Common
     Stock covered by such Option on July 1 of such year, and thereafter, shall
     vest for an additional 25% of the shares of Common Stock covered by such
     Option on July 1 of each year provided the Participant has completed an
     additional year of active service for, and then remains employed as a full-
     time employee of, the Company.

          (b)  Except as provided below, if a Participant's employment by the
     Company or its Subsidiaries is terminated (x) for any reason other than
     death or retirement on or after age 60, any Options that are not yet vested
     will be forfeited and such Participant will have three months following
     such termination in which to exercise the Participant's vested Options or
     (y) by reason of death or retirement on or after attaining age 60, any
     Options that are not yet vested will be forfeited and such Participant (or
     his or her executor or personal representative) will have six months
     following such termination in which to exercise the Participant's vested
     Options. All Options that are not exercised during the relevant exercised
     period will be forfeited. A transfer from the Company to a Subsidiary or
     affiliate, or vice versa, is not a termination of employment for purposes
                   ---- -----
     of this plan. Unless the Committee in its sole discretion specifically
     waives the application of this sentence, then notwithstanding the other
     vesting provisions contained in this section or in the Participant's
     agreement, if the Participant's employment is terminated for Cause all
     Options (whether or not vested), granted to the Participant will be
     immediately cancelled and forfeited by the Participant upon delivery of
     notice of such termination.

9.   Adjustment to Reflect Changes in Capital Structure.
     --------------------------------------------------

     The Committee shall make any adjustments it deems necessary to prevent
accretion, or to protect against dilution, in the number and kind of shares
authorized by the Plan and with respect to outstanding Options, in the number
and kind of shares covered thereby and in the applicable price in the event of a
stock split or stock dividend.

10.  Non-Transferability of Options.
     ------------------------------

     Except as provided in the Option agreement, the Options awarded under the
Plan are not transferable, voluntarily or involuntarily, other than by will or
the laws of descent and

                                      -6-

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distribution, or pursuant to a qualified domestic relations order as defined in
Section 414(p) of the Code.

11.  Rights as Shareholder.
     ---------------------

     No Common Stock may be delivered upon the exercise of any Option until full
payment of the particular Option Amount has been made. A Participant has no
rights whatsoever as a shareholder with respect to any shares covered by an
Option until the date of the issuance of a stock certificate for the shares.

12.  Withholding Tax
     ---------------

     The Company shall have the right to withhold in cash or shares of Common
Stock with respect to any payments made to any Participant under the Plan
any taxes required by law to be withheld because of such payments.

13   No Right To Employment.
     -----------------------

     Participation in the Plan will not give any Participant a right to be
retained as an employee of the Company or any Subsidiary, or any right or claim
to any benefit under the Plan, unless the right or claim has specifically
accrued under the Plan.

14.  Amendment of the Plan.
     ---------------------

     The Committee may from time to time amend or revise the terms of this Plan
in whole or in part and may without limitation, adopt any amendment deemed
necessary; provided, however, that no change in any award previously granted
to a Participant may be made that would impair the rights of the Participant
without the Participant's consent.

15.  Conditions Upon Issuance of Shares.
     ----------------------------------

     An Option shall not be exercisable and a share of Common Stock shall not be
issued pursuant to the exercise of an Option unless the exercise of such Option
and the issuance and delivery of such share pursuant thereto shall company with
all relevant provisions of law, including, without limitation, the Securities
Act, the Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the shares of Common Stock may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. As a condition to the exercise of an
Option, the Company may require the person exercising such Option to represent
and warrant at the time of any such exercise that the Common stock is being
purchased only for investment and without any present intention to sell or
distribute such shares if, in the opinion of counsel for the Company, such
representation is required by any of the aforementioned relevant provisions of
law. Additionally, as a condition to the exercise of an Option, if the
Shareholders Agreement dated as of January 30, 1997, as it exists now or from
time to time may hereafter be amended, by and between the Company

                                      -7-
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and its Shareholders (as such term is defined therein) (the "Shareholders
Agreement") is still in effect, the Participant shall be required to execute a
counterpart to the Shareholders Agreement.

16.  Effective Date and Termination of Plan.
     --------------------------------------

     16.1 Effective Date.  This Plan is effective as of April 14, 1998.
          --------------

     16.2 Termination of the Plan. The Committee may terminate the Plan at any
          -----------------------
time with respect to any shares that are not then subject to Options.
Termination of the Plan will not affect the rights and obligations of any
Participant with respect to Options granted and which remain outstanding
immediately prior to termination.

                                      -8-<PAGE>

                                                                      EXHIBIT 4d

                       21st CENTURY TELECOM GROUP, INC.
                           1999 STOCK INCENTIVE PLAN

1.   Establishment, Purpose and Types of Awards

     21st Century Telecom Group, Inc., an Illinois corporation (the
"Company"), hereby establishes the 21st CENTURY TELECOM GROUP, INC. 1999 STOCK
INCENTIVE PLAN (the "Plan"). The purpose of the Plan is to promote the
long-term growth and profitability of the Company by (i) providing key people
with incentives to improve stockholder value and to contribute to the growth and
financial success of the Company, and (ii) enabling the Company to attract,
retain and reward the best-available persons.

     The Plan permits the granting of stock options (including incentive stock
options qualifying under Code section 422 and nonqualified stock options), stock
appreciation rights, restricted or unrestricted stock awards, phantom stock,
performance awards, or any combination of the foregoing.

2.   Definitions

     Under this Plan, except where the context otherwise indicates, the
following definitions apply:

     (a)  "Affiliate" shall mean any entity, whether now or hereafter existing,
which controls, is controlled by, or is under common control with, the Company
(including, but not limited to, joint ventures, limited liability companies, and
partnerships). For this purpose, "control" shall mean ownership of 50% or more
of the total combined voting power or value of all classes of stock or interests
of the entity.

     (b)  "Award" shall mean any stock option, stock appreciation right, stock
award, phantom stock award, or performance award.

     (c)  "Board" shall mean the Board of Directors of the Company.

     (d)  "Code" shall mean the Internal Revenue Code of 1986, as amended, and
any regulations promulgated thereunder.

     (e)  "Common Stock" shall mean shares of voting common stock of the
Company, no par value per share.

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

     (g)  "Fair Market Value" of a share of the Company's Common Stock for any
purpose on a particular date shall be determined in a manner such as the
Administrator shall in good faith determine to be appropriate; provided that in
the event the Common Stock shall become registered under Section 12(b) of the
Exchange Act, then thereafter the Fair Market Value of the Company's Common
Stock for an purpose on a particular date shall mean the last reported sale
price per share of Common Stock, regular way, on such date or, in case no such
sale takes place on such date, the average of the closing bid and asked prices,
regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on a national securities exchange or included for quotation on the
Nasdaq-National Market, or if the Common Stock is not so listed or admitted to
trading or included for quotation, the last quoted price, or if the Common Stock
is not so quoted, the average of the high bid and low asked prices, regular way,
in the over-the-counter market, as reported by the National Association of
Securities Dealers, Inc. Automated Quotation System or, if such system is no
longer in use, the principal other automated quotations system that may then be
in use or, if the Common Stock is not quoted by any such organization, the
average of the closing

<PAGE>

bid and asked prices, regular way, as furnished by a professional market maker
making a market in the Common Stock as selected in good faith by the
Administrator or by such other source or sources as shall be selected in good
faith by the Administrator. If, as the case may be, the relevant date is not a
trading day, the determination shall be made as of the next preceding trading
day. As used herein, the term "trading day" shall mean a day on which public
trading of securities occurs and is reported in the principal consolidated
reporting system referred to above, or if the Common Stock is not listed or
admitted to trading on a national securities exchange or included for quotation
on the Nasdaq-National Market, any business day.

     (i)  "Grant Agreement" shall mean a written document memorializing the
terms and conditions of an Award granted pursuant to the Plan and shall
incorporate the terms of the Plan.

     (j)  "Parent" shall mean a corporation, whether now or hereafter existing,
within the meaning of the definition of "parent corporation" provided in Code
section 424(e), or any successor thereto.

     (k)  "Subsidiary" and "subsidiaries" shall mean only a corporation or
corporations, whether now or hereafter existing, within the meaning of the
definition of "subsidiary corporation" provided in Section 424(f) of the Code,
or any successor thereto.

3.   Administration

     (a)  Administration of the Plan. The Plan shall be administered by the
Board or by such committee or committees as may be appointed by the Board from
time to time (the Board, committee or committees hereinafter referred to as the
"Administrator").

     (b)  Powers of the Administrator.  The Administrator shall have all the
powers vested in it by the terms of the Plan, such powers to include authority,
in its sole and absolute discretion, to grant Awards under the Plan, prescribe
Grant Agreements evidencing such Awards and establish programs for granting
Awards.

     The Administrator shall have full power and authority to take all other
actions necessary to carry out the purpose and intent of the Plan, including,
but not limited to, the authority to: (i) determine the eligible persons to
whom, and the time or times at which Awards shall be granted; (ii) determine the
types of Awards to be granted; (iii) determine the number of shares to be
covered by or used for reference purposes for each Award; (iv) imposed such
terms, limitations, restrictions and conditions upon any such Award as the
Administrator shall deem appropriate; (v) modify, amend, extend or renew
outstanding Awards, or accept the surrender of outstanding Awards and substitute
new Awards (provided however, that, except as provided in Section 7(d) of the
Plan, any modification that would materially adversely affect any outstanding
Award shall not be made without the consent of the holder); (vi) accelerate or
otherwise change the time in which an Award may be exercised or becomes payable
and to waive or accelerate the lapse, in whole or in part, of any restriction or
condition with respect to such Award, including, but not limited to, any
restriction or condition with respect to the vesting or exercisability of an
Award following termination of any grantee's employment or other relationship
with the Company; and (vii) establish objectives and conditions, if any, for
earning Awards and determining whether Awards will be paid after the end of a
performance period.

     The Administrator shall have full power and authority, in its sole and
absolute discretion, to administer and interpret the Plan and to adopt and
interpret such rules, regulations, agreements, guidelines and instruments for
the administration of the Plan and for the conduct of its business as the
Administrator deems necessary or advisable.

     (c)  Non-Uniform Determinations. The Administrator's determinations under
the Plan (including without limitation, determinations of the persons to receive
Awards, the form, amount and timing of such

                                      -2-

<PAGE>

Awards, the terms and provisions of such Awards and the Grant Agreements
evidencing such Awards) need not be uniform and may be made by the Administrator
selectively among persons who receive, or are eligible to receive. Awards under
the Plan, whether or not such persons are similarly situated.

     (d)  Limited Liability. To the maximum extent permitted by law, no member
of the Administrator shall be liable for any action taken or decision made in
good faith relating to the Plan or any Award thereunder.

     (e)  Indemnification. To the maximum extent permitted by law and by the
Company's charter and by-laws, the members of the Administrator shall be
indemnified by the Company in respect of all their activities under the Plan.

     (f)  Effect of Administrator's Decision. All actions taken and decisions
and determinations made by the Administrator on all matters relating to the Plan
pursuant to the powers vested in it hereunder shall be in the Administrator's
sole and absolute discretion and shall be conclusive and binding on all parties
concerned, including the Company, its stockholders, any participants in the Plan
and any other employee, consultant, or director of the Company and their
respective successors in interest.

4.   Shares Available for the Plan; Maximum Awards

     Subject to adjustments as provided in Section 7(d) of the Plan, the shares
of Common Stock that may be issued with respect to Awards granted under the Plan
shall not exceed an aggregate of 60,000 shares of Common Stock. The Company
shall reserve such number of shares for Awards under the Plan, subject to
adjustments as provided in Section 7(d) of the Plan. If any Award, or portion of
an Award, under the Plan expires or terminates unexercised, becomes
unexercisable or is forfeited or otherwise terminated, surrendered or canceled
as to any shares, or if any shares of Common Stock are surrendered to the
Company in connection with any Award (whether or not such surrendered shares
were acquired pursuant to any Award), the shares subject to such Award and the
surrendered shares shall thereafter be available for further Awards under the
Plan; provided, however, that any such shares that are surrendered to the
Company in connection with any Award or that are otherwise forfeited after
issuance shall not be available for purchase pursuant to incentive stock options
intended to qualify under Code section 422.

5.   Participation

     Participation in the Plan shall be open to all employees, officers and
directors of the Company, or of any Affiliate of the Company, as may be selected
by the Administrator from time to time.

6.   Awards

     The Administrator, in its sole discretion, establishes the terms of all
Awards granted under the Plan. Awards may be granted individually or in tandem
with other types of Awards. All Awards are subject to the terms and conditions
provided in the Grant Agreement.

     (a)  Stock Options. The Administrator may from time to time grant to
eligible participants Awards of incentive stock options as that term is defined
in Code section 422 or nonqualified stock options; provided, however, that
Awards of incentive stock options shall be limited to employees of the Company
or of any Parent or Subsidiary of the Company. Options intended to qualify as
incentive stock options under Code section 422 must have an exercise price at
least equal to Fair Market Value on the date of grant, but nonqualified stock
options may be granted with an exercise price less than Fair Market Value. No
stock option shall be an incentive stock option unless so designated by the
Administrator at the time of grant or in the Grant Agreement evidencing such
stock option.

                                      -3-

<PAGE>

     (b)  Stock Appreciation Rights.  The Administrator may from time to time
grant to eligible participants Awards of Stock Appreciation Rights ("SAR"). An
SAR entitles the grantee to receive, subject to the provisions of the Plan and
the Grant Agreement, a payment having an aggregate value equal to the product of
(i) the excess of (A) the Fair Market Value on the exercise date of one share of
Common Stock over (B) the base price per share specified in the Grant Agreement,
times (ii) the number of shares specified by the SAR, or portion thereof, which
is exercised. Payment by the Company of the amount receivable upon any exercise
of an SAR may be made by the delivery of Common Stock or cash, or any
combination of Common Stock and cash, as determined in the sole discretion of
the Administrator. If upon settlement of the exercise of an SAR a grantee is to
receive a portion of such payment in shares of Common Stock, the number of
shares shall be determined by dividing such portion by the Fair Market Value of
a share of Common Stock on the exercise date. No fractional shares shall be used
for such payment and the Administrator shall determine whether cash shall be
given in lieu of such fractional shares or whether such fractional shares shall
be eliminated.

     (c)  Stock Awards.  The Administrator may from time to time grant
restricted or unrestricted stock Awards to eligible participants in such
amounts, on such terms and conditions, and for such consideration including no
consideration or such minimum consideration as may be required by law, as it
shall determine. A stock Award may be paid in Common Stock, in cash, or in a
combination of Common Stock and cash, as determined in the sole discretion of
the Administrator.

     (d)  Phantom Stock.  The Administrator may from time to time grant Awards
to eligible participants denominated in stock-equivalent units ("phantom stock")
in such amounts and on such terms and conditions as it shall determine.  Phantom
Stock units granted to a participant shall be credited to a bookkeeping reserve
account solely for accounting purposes and shall not require a segregation of
any of the Company's assets.  An Award of Phantom stock may be settled in Common
Stock, in cash, or in a combination of Common Stock and cash, as determined in
the sole discretion of the Administrator.  Except as otherwise provided in the
applicable Grant Agreement, the grantee shall not have the rights of a
stockholder with respect to any shares of Common Stock represented by a phantom
Stock unit solely as a result of the grant of a phantom stock unit to the
grantee.

     (e)  Performance Awards.  The Administrator may, in its discretion, grant
performance awards which become payable on account of attainment of one or more
performance goals established by the Administrator.  Performance awards may be
paid by the delivery of Common Stock or cash, or any combination of Common Stock
and cash, as determined in the sole discretion of the Administrator.
Performance goals established by the Administrator may be based on the Company's
or an Affiliate's operating income or one or more other business criteria
selected by the Administrator that apply to an individual or group of
individuals, a business unit, or the Company or an Affiliate as a whole, over
such performance period as the Administrator may designate.

7.   Miscellaneous

     (a)  Withholding of Taxes.  Grantees and holders of Awards shall pay to the
Company or its Affiliate, or make provision satisfactory to the Administrator
for payment of, any taxes required to be withheld in respect of Awards under the
Plan no later than the date of the event creating the tax liability. The Company
or its Affiliate may, to the extent permitted by law, deduct any such tax
obligations from any payment of any kind otherwise due to the grantee or holder
of an Award. In the event that payment to the Company or its Affiliate of such
tax obligations is made in shares of Common Stock, such shares shall be valued
at Fair Market Value on the applicable date for such purposes.

     (b)  Loans.  The Company or its Affiliate may make or guarantee loans to
grantees to assist grantees in exercising Awards and satisfying any withholding
tax obligations.

                                      -4-
<PAGE>

     (c)  Transferability.  Except as otherwise determined by the Administrator,
and in any event in the case of an incentive stock option or a stock
appreciation right granted with respect to an incentive stock option, no Award
granted under the Plan shall be transferable by a grantee otherwise than by will
or the laws of descent and distribution. Unless otherwise determined by the
Administrator in accord with the provisions of the immediately preceding
sentence, an Award may be exercised during the lifetime of the grantee, only by
the grantee or, during the period the grantee is under a legal disability, by
the grantee's guardian or legal representative.

     (d)  Adjustments; Business Combinations.  In the event of changes in the
Common Stock of the Company by reason of any stock dividend, spin-off,
split-up, recapitalization, merger, consolidation, business combination or
exchange of shares and the like, the Administrator shall, in its discretion,
make appropriate adjustments to the maximum number and kind of shares reserved
for issuance or with respect to which Awards may be granted under the Plan as
provided in Section 4 of the Plan and to the number, kind and price of shares
covered by outstanding Awards, and shall, in its discretion and without the
consent of holders of Awards, make any other adjustments in outstanding Awards,
including but not limited to reducing the number of shares subject to Awards or
providing or mandating alternative settlement methods such as settlement of the
Awards in cash or in shares of Common Stock or other securities of the Company
or of any other entity, or in any other matters which relate to Awards as the
Administrator shall, in its sole discretion, determine to be necessary or
appropriate.

     Notwithstanding anything in the Plan to the contrary and without the
consent of holders of Awards, the Administrator, in its sole discretion, may
make any modifications to any Awards, including but not limited to cancellation,
forfeiture, surrender or other termination of the Awards in whole or in part
regardless of the vested status of the Award, in order to facilitate any
business combination that is authorized by the Board to comply with requirements
for treatment as a pooling of interests transaction for accounting purposes
under generally accepted accounting principles.

     The Administrator is authorized to make, in its discretion and without the
consent of holders of Awards, adjustments in the terms and conditions of, and
the criteria included in, Awards in recognition of unusual or nonrecurring
events affecting the Company, or the financial statements of the Company or any
Affiliate, or of changes in applicable laws, regulations, or accounting
principles, whenever the Administrator determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

     (e)  Substitution of Awards in Mergers and Acquisitions. Awards may be
granted under the Plan from time to time in substitution for Awards held by
employees or directors of entities who become or are about to become employees
or directors of the Company or an Affiliate as the result of a merger or
consolidation of the employing entity with the Company or an Affiliate, or the
acquisition by the Company or an Affiliate of the assets or stock of the
employing entity. The terms and conditions of any substitute Awards so granted
may vary from the terms and conditions set forth herein to the extent that the
Administrator deems appropriate at the time of grant to conform the substitute
Awards to the provisions of the awards for which they are substituted.

     (f)  Stock Restriction Agreement.  As a condition precedent to the grant of
any Award under the Plan or the exercise pursuant to such an Award or to the
delivery of certificates for shares issued pursuant to any Award, the
Administrator may require the grantee or the grantee's successor or permitted
transferee, as the case may be, to become a party to a Stock Restriction
Agreement of the Company in such form as the Administrator may determine from
time to time.

                                      -5-

<PAGE>

     (g)  Termination.  Amendment and Modification of the Plan.  The Board may
terminate, amend or modify the Plan or any portion thereof at any time.

     (h)  Non-Guarantee of Employment or Service.  Nothing in the Plan or in any
Grant Agreement thereunder shall confer any right on an individual to continue
in the service of the Company or shall interfere in any way with the right of
the Company to terminate such service at any time with or without cause or
notice.

     (i)  Compliance with Securities Laws; Listing and Registration.  The
Company may require that a grantee, as a condition to exercise of an Award, and
as a condition to the delivery of any share certificate, provide to the Company,
at the time of each such exercise and each such delivery, a written
representation that the shares of Common Stock being acquired shall be acquired
by the grantee solely for investment and will not be sold or transferred
without registration or the availability of an exemption from registration under
the Securities Act and applicable state securities laws.  No Award granted under
the Plan shall be exercisable unless the exercise of such Award and the issuance
and delivery of shares of Common Stock pursuant thereto shall comply with all
revelant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and
regulations promulgated under each such Act, and the requirements of any stock
exchange or Nasdaq upon which the shares of Common Stock may then be listed or
reported, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. The stock certificates for any shares
of Common Stock issued pursuant to this Plan may bear a legend restricting
transferability of the shares of Common Stock unless such shares are registered
or an exemption from registration is available under the Securities Act and
applicable state securities laws.

     (j)  No Trust or Fund Created.  Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company and a grantee or any other person.  To the
extent that any grantee or other person acquires a right to receive payments
from the Company pursuant to an Award, such right shall be no greater than the
right of any unsecured general creditor of the Company.

     (k)  Governing Law.  The validity, construction and effect of the Plan, of
Grant Agreements entered into pursuant to the Plan, and of any rules,
regulations, determinations or decisions made by the Administrator relating to
the Plan or such Grant Agreements, and the rights of any and all persons having
or claiming to have any interest therein or thereunder, shall be determined
exclusively in accordance with applicable federal laws and the laws of the State
of Illinois, without regard to its conflict of laws principles.

     (l)  Effective Date; Termination Date.  The Plan is effective as of the
date on which the Plan was adopted by the Board, subject to approval of the
stockholders within twelve months before or after such date.  No Award shall be
granted under the Plan after the close of business on the day immediately
preceding the tenth anniversary of the effective date of the Plan. Subject to
other applicable provisions of the Plan, all Awards made under the Plan prior to
such termination of the Plan shall remain in effect until such Awards have been
satisfied or terminated in accordance with the Plan and the terms of such
Awards.

Date Approved by the Board: ______________________

Date Approved by the Stockholders: _______________

                                     -6-

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