Document:

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                                  EXHIBIT 4(a)

          Jupiter Communications, Inc. 1997 Employee Stock Option Plan
      (formerly known as THE JUPITER COMMUNICATIONS, LLC 1997 OPTION PLAN)

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                                                                    Exhibit 4(c)

                           JUPITER COMMUNICATIONS, LLC
                                1997 OPTION PLAN

SECTION 1. PURPOSE OF THE PLAN.

           The purpose of this plan (the "Plan") is to promote the interests of
Jupiter Communications, LLC, a New York limited liability company (the
"Company"), and its Members by permitting the Company to grant options to
purchase Units (as hereinafter defined) in the Company to Key Employees (as
hereinafter defined) of the Company, in order to attract, retain and reward such
persons and strengthen the mutuality of interests between them and the Company.

SECTION 2. ADMINISTRATION.

       (a) The Plan shall be administered by a Compensation Committee of the
Managing Members (the "Committee"), consisting of all the Managing Members. A
majority-in-interest of the members of the Committee shall constitute a quorum,
and a majority-in-interest of the Members present at any meeting at which a
quorum is present shall constitute the acts of the Committee. For purposes of
determining a majority-in-interest of the members of the Committee and a
majority-in-interest of the members present at any meeting, the interest of each
member of the Committee who is a Class A Member shall be equal to his Sharing
Ratio on the date of meeting or consent. The interest of each member of the
Committee who is a Class B Designee shall be determined pursuant to Section
7.5(c) of the Second Amended and Restated Operating Agreement of Jupiter
Communications, LLC as amended (such agreement, as the same may be amended,
supplemented, restated or modified from time to time, is referred to herein as
the "Operating Agreement").

       (b) Subject to the express provisions of the Plan, the Committee shall
have full authority in its discretion, to determine the individuals to whom, and
the time or times at which, options shall be granted; the number of Units
subject to each option; the option price per Unit; the exercise period of each
option; and the other terms and provisions of the option. Grants of options need
not be identical.

       (c) The Committee shall have the authority to adopt, alter and repeal
such rules, guidelines and practices governing the Plan as it shall, from time
to time, deem advisable; to interpret the terms and provisions of the Plan and
any options granted pursuant to the Plan and any agreements relating thereto,
and otherwise to supervise the administration of the Plan.

       (d) All decisions made by the Committee pursuant to the provisions of the
Plan shall be made in the Committee's sole discretion and shall be final and
binding on all persons, including the Company and Plan participants.

       (e) Notwithstanding the foregoing, any grant of an option to a Managing
Member shall be subject to the provisions, if any, of the Operating Agreement.

SECTION 3. UNITS SUBJECT TO PLAN
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           The Members intend to amend the Second Amended and Restated Operating
Agreement, as amended, to issue Units of the Company to the Members, pro rata,
in proportion to their respective Sharing Ratios as of the date of such
amendment such that the number of Units issued to each Member as of such date
divided by the total number of Units issued to all Members as of such date shall
be equal to his respective Sharing Ratio as of such date. The total number of
Units issued to all Members as of such date pursuant to such amendment shall not
be less than 9,000,000 Units. For purposes of thereafter determining a
majority-in-interest of the members of the Committee and a majority-in-interest
of the members present at any meeting, the interest of each member of the
Committee shall be equal to (a) one hundred percent (100%) multiplied by (b) a
fraction, the numerator of which is the number of Units held by such member on
the date of the meeting or consent and the denominator of which is the total
number of Units outstanding as of such date.

           The Committee is authorized to cause the Company to issue options to
acquire 1,590,000 Units to Key Employees, and in the case of Key Employees who
are not Members of the Company, to admit them to the Company as Class B Members
upon exercise of such options, all without the further consent or approval of
the Members. The 1,590,000 Units reserved and available for issuance upon the
exercise of options granted pursuant to the Plan shall be subject to adjustment
as hereinafter provided. Any Units subject to options which for any reason
expire or are terminated unexercised shall again become available for options
under the Plan.

SECTION 4. ELIGIBILITY.

       (a) The Committee may, consistent with the purpose of the Plan, grant
options, from time to time, within ten (10) years from the date of adoption of
the Plan by the Company, to Key Employees of the Company and covering such
number of Units as the Committee may determine. Eligible persons may receive
more than one grant of an option under the Plan.

       (b) For purposes of the Plan, a Key Employee of the Company shall mean
(i) any employee of the Company or its Affiliates and (ii) any Member of the
Company who receives compensation for services from the Company (A) determined
without regard to the income of the Company or (B) for services deemed to be
performed for the Company in a capacity other than as a Member. An Affiliate of
the Company shall mean any partnership, limited liability company or other
entity, other than the Company, that is designated by the Committee as a
participating employer under the Plan, provided that the Company directly or
indirectly owns at least 50 percent of the capital or profits of such entity or
50 percent of the combined voting power of all classes of stock of such entity.

SECTION 5. OPTIONS.

       (a) Options granted under the Plan shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee, in its sole
discretion, shall deem desirable, which shall be evidenced by a Unit option
agreement or instrument of grant (collectively, "option agreement"):

           (i) Option Price. The option price per Unit shall be determined by
the Committee at the time of grant but shall be not less than $5.50 per Unit.

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           (ii) Option Term. The term of each option shall be fixed by the
Committee, but no option shall be exercisable more than seven (7) years after
the date the Option is granted.

           (iii) Exercisability. Options shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Committee. If the Committee provides, in its sole discretion, that any option is
exercisable only in installments, the Committee may waive such installment
exercise provisions at any time at or after grant in whole or in part, based on
such factors as the Committee shall, in its sole discretion, determine.

           (iv) Method of Exercise.

                (A) Subject to whatever installment exercise provisions apply
pursuant to Paragraph 5(a)(iii) of the Plan, options may be exercised in whole
at any time or in part from time to time by giving written notice of exercise to
the Company specifying the number of Units to be purchased. Such notice shall be
accompanied by payment in full of the purchase price, either by check, note or
such other instrument, securities or property as the Committee may in its sole
discretion accept.

                (B) No Units shall be issued until full payment therefor has
been received by the Company. If a personal check is given in payment of the
exercise price, no Units shall be issued to the optionee until the Company's
bank shall have advised the Company that such check has cleared. In the event of
any payment by note or other instrument, the Units shall not be issued until
such note or other instrument shall have been paid in full, and the exercising
optionee shall have no rights as a Member (with respect to such Units) until
such payment is made.

                (C) An optionee shall have no rights to distributions or other
rights of a Member with respect to Units subject to an option until (I) the
Company has received full payment, pursuant to the terms of this Paragraph
5(a)(iv), for the Units as to which the option is being exercised (II) in the
case of an optionee who has not previously been admitted as a Member of the
Company, the optionee has adopted and approved in writing all the terms and
provisions of the operating agreement of the Company then in effect and executed
any and all documents that the Managing Members may deem necessary in connection
with the admission of such optionee to the Company as a Class B Member and (III)
if requested, the optionee has given the representation described in Paragraph
9(a) of the Plan.

            (v) Non-Transferability of Options. No option shall be transferable
by the optionee otherwise than by will or by the laws of descent and
distribution, and all options shall be exercisable, during the optionee's
lifetime, only by the optionee, or, in the event that the optionee shall be
determined to be incompetent, by his legal representative.

            (vi) Termination. Except as expressly provided in Paragraph 5(b) and
Section 6(b) of the Plan, an option shall terminate immediately upon the
optionee's death or termination of Employment for any reason or upon the merger
or consolidation of the Company into any limited liability company, partnership
or corporation or the sale or exchange by the Company of all or substantially
all of the Company's business and assets. Termination of Employment shall mean
(I) termination of employment as an employee of the Company and (II) termination
of the

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performance of services by a Member for the Company in a case in which the
Member has received compensation for such services from the Company (A)
determined without regard to the income of the Company or (B) deemed to have
been performed for the Company in a capacity other than as a Member.
Notwithstanding anything contained in this Plan, or a related option agreement
to the contrary, in no event shall a Key Employee of the Company who is
terminated for cause have the right to exercise any option or options granted to
such employee under this Plan. For these purposes, the term "terminated for
cause" shall include, without limitation, the termination of an optionee as the
result of a breach of any agreement between the Company or any Affiliate of the
Company and such optionee by such optionee, acts of dishonesty or deliberate
misconduct, dereliction of duty, or any other reason which, in the sole judgment
of the Company or any Affiliate of the Company, as the case may be, makes it
advisable to terminate the Employment of such optionee with the Company or such
Affiliate, as the case may be.

           (vii) Restrictions on Transfer of Units. Units issuable upon the
exercise of an option shall be subject to such restrictions as the Committee
may, in its sole discretion, deem necessary or desirable. Any certificate of
beneficial interest for such Units shall bear an appropriate legend setting
forth such transfer restrictions and stating that no transfer in violation of
such transfer restrictions shall be registered on the books of the Company.

       (b) The Committee may, in its sole discretion, include any of the
following provisions in the option agreement:

           (i) If, at the date of the optionee's death or a termination of the
optionee's Employment as a result of a disability or on retirement or for any
other reason other than cause, a Public Offering Event, as hereinafter defined,
shall have occurred, then the option may be exercised, to the extent exercisable
on the date of death or termination of Employment, during the one (1) year
period following the date of death or the three (3) month period following the
date of termination of Employment, but in no event subsequent to the last day of
the stated term of the option. The term "Public Offering Event" shall mean such
date as the Company or its successor shall have received the proceeds from its
initial public offering of securities pursuant to the Securities Act of 1933, as
amended, or Regulation A thereunder or the Units shall be otherwise registered
pursuant to the Securities Exchange Act of 1934, as amended.

           (ii) (A) If at the date of the optionee's death or a termination of
an optionee's Employment as a result of a disability or on retirement or for any
other reason other than cause (such date hereinafter referred to as the
"Termination Date"), a Public Offering Event shall not yet have occurred, then
the Company shall have the right in its sole discretion to purchase such
optionee's option for an amount (the "Purchase Price") equal to the excess, if
any, of (I) the aggregate value, as of the Termination Date, of the Units
subject to the option of such optionee over (II) the aggregate exercise price of
the options for the purchase of such Units. For these purposes, (I) Units
subject to the option of such optionee shall be deemed to be limited to those
Units (x) with respect to which the option was exercisable immediately prior to
the Termination Date and (y) with respect to which the exercise price was less
than the value of such Unit as of the Termination Date and (II) the value of
each Unit as of the Termination Date shall be determined by the Committee in its
sole discretion. Such right of the Company to purchase the optionee's option
shall be exercisable by written notice given to the optionee (or his legal
representative) within ninety (90) days after the Termination Date ("Purchase
Notice"). If the

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Purchase Notice is not given by the Company as aforesaid, then the option may be
exercised, to the extent exercisable on the Termination Date, within one hundred
eighty (180) days after the Termination Date.

                  (B) If the Purchase Notice is given pursuant to paragraph
5(b)(ii)(A), then twenty percent (20%) of the Purchase Price payable by the
Company shall be payable by the Company no later than one hundred eighty (180)
days after the Termination Date. The balance of the Purchase Price shall be paid
in five annual installments of sixteen percent (16%) of the Purchase Price
commencing on the first anniversary of the first payment date, together with
interest at a rate determined by the Committee in its sole discretion.

            (iii) A Sale Event shall mean the merger of the Company into another
limited liability company, a partnership or a corporation in which the then
existing Managing Members of the Company have an equity interest of less than
thirty percent (30%) or a sale or exchange by the Company of all or
substantially all of its businesses and assets to an entity in which the then
existing Managing Members of the Company have an equity interest of less than
thirty percent (30%). For purposes of this paragraph, a Managing Member shall be
considered as owning the equity interests owned by his spouse, children,
grandchildren, parents and the parents of his spouse. Notwithstanding the
provisions of Paragraph 5(a)(vi) of the Plan, in the event of a Sale Event:

                  (A) The Committee, at its sole discretion, with respect to an
option which is or would be exercisable as of the effective date of such Sale
Event, shall determine whether such option shall either (I) terminate as of the
effective date of such Sale Event unless exercised prior thereto or (II)
continue in effect in accordance with its terms, in which case such option shall
be amended or deemed to be amended so that the optionee, upon exercise of the
option, shall be entitled to receive in respect of each Unit subject to the
option the same amount and kind of membership interest, stock, securities, cash,
property or other consideration that each holder of a Unit is entitled to
receive in respect of a Unit in the transaction constituting such Sale Event.

                  (B) The Committee, at its sole discretion, with respect to an
option which is not and would not be exercisable as of the effective date of
such Sale Event, shall determine whether such option shall either (I) become
immediately exercisable, in which case the provisions of Paragraph 5(b)(iii)(A)
shall apply to such option and the Committee shall also determine whether
subparagraph (I) or (II) of such Paragraph shall be applicable to such option or
(II) continue in effect in accordance with its terms, in which case such option
shall be amended or deemed to be amended so that the optionee shall, upon
exercise of the option, be entitled to receive in respect of each Unit subject
to the option the same amount and kind of stock, securities, cash, property or
other consideration that each holder of a Unit is entitled to receive in respect
of a Unit in the transaction constituting such Sale Event, provided, however,
that nothing in this Paragraph 5(b)(iii)(B) shall be interpreted to accelerate
the date on which an option may be exercised if the Committee shall determine
that such option shall continue in accordance with its terms pursuant to option
(II) of this Paragraph 5(b)(iii)(B).

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                  (C) Any determination made by the Committee pursuant to this
Paragraph 5(b)(iii) shall be conclusive notwithstanding any other provision of
this Plan or any option agreement entered into in accordance with this Plan.

             (iv) (A) (I) If at the date of the optionee's death or a
termination of the optionee's Employment with the Company for any reason, a
Public Offering Event shall not yet have occurred, the Company shall have the
right in its discretion to purchase all, and not less than all, of the Units
previously issued upon the exercise, if any, of any options by the terminating
optionee from the optionee or his legal representative for an amount (the "Unit
Repurchase Price"), which shall be determined pursuant to the provisions of (B)
and (C) of this Paragraph 5(b)(iv). Such right shall be exercisable by written
notice given to the optionee (or his legal representative) by the Company ("Unit
Purchase Notice") within ninety (90) days after the date of death or termination
of Employment (such date of death or termination of Employment hereinafter
referred to as the "Date of Termination"). If the Unit Purchase Notice is given,
then twenty percent (20%) of the Unit Repurchase Price shall be paid no later
than one hundred eighty (180) days after the Date of Termination. The balance of
the Unit Repurchase Price shall be paid in five annual installments of sixteen
percent (16%) of the Unit Repurchase Price commencing on the first anniversary
of the first payment date, together with interest at a rate determined by the
Committee in its sole discretion.

              II) If, following the date of the optionee's death or a
termination of the optionee's Employment as a result of a disability or on
retirement or for any other reason other than cause, a Unit Purchase Notice is
given pursuant to paragraph 5(b)(iv)(A), then the Company shall also be deemed
to have given a Purchase Notice pursuant to paragraph 5(b)(ii)(A) with respect
to any Units subject to the option of such optionee (as defined in paragraph
5(b)(ii)(A)) and the provisions of paragraph 5(b)(ii)(B) shall apply.

                  (B) In the event of the death or termination of the optionee's
Employment as a result of a disability or on retirement or for any other reason
other than cause, the Unit Repurchase Price shall be equal to the amount
determined by multiplying (I) the number of Units being repurchased the Company
by (II) the value of each Unit as determined by the Committee at the Date of
Termination. For these purposes, the value of each Unit on the Date of
Termination shall be determined by the Committee in its sole discretion.

                  (C) In the event of the termination of the optionee's
Employment for cause, the Unit Repurchase Price shall be equal to the sum of the
Purchase Prices for the Units being repurchased by the Company. The Purchase
Price for a Unit shall be equal to the sum of (I) the exercise price paid by the
Optionee for the such Unit plus (minus) (II) any increase (decrease) in the
Company's book value per Unit (computed in accordance with generally accepted
accounting principles) from the last day of the month ending immediately
preceding the date of grant of the Option with respect to such Unit to the last
day of the fiscal quarter ending immediately prior to the Date of Termination.

                  (D) Subject to the limitations set forth in Section 736 of the
Internal Revenue Code of 1986, as amended ("Code"), the Committee shall
determine the portion of the Unit Repurchase Price payable under the provisions
of (B) or (C) of this Paragraph 5(b)(iv) which shall be considered as a
liquidating distribution made in exchange for the Member's

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interest in Company property (except for unrealized receivables and goodwill)
under Section 736(b)(1) of the Code and the portion which shall be considered a
"guaranteed payment" pursuant to Section 736(a) of the Code.

SECTION 6. ADJUSTMENTS

       (a) In the event of any merger, reorganization, consolidation,
recapitalization, split or subdivision of Units, distribution of Units,
combination or reclassification of Units, or other change in the capital
structure affecting the Units (other than a Sale Event or Conversion Event (as
hereinafter defined)), such substitution or adjustment as shall be deemed
appropriate by the Committee, shall be made in the aggregate number of Units
reserved for issuance under the Plan and in the number and option price of Units
subject to outstanding options granted under the Plan.

       (b) In the event of a Conversion Event, each option shall be amended or
deemed to be amended in a manner consistent with conversion or exchange of other
Units (as reasonably determined by the Committee) so that an optionee shall,
upon exercise of an option, be entitled to receive in respect of each Unit
subject to the option the same amount and kind of stock or other securities that
a Class B Member who is the holder of a Unit is entitled to receive in respect
of a Unit in the transaction constituting such Conversion Event. A Conversion
Event shall mean the transfer of all or substantially all of the business and
assets of the Company in exchange for stock of a corporation and the
distribution of such stock to the Members of the Company, the merger of the
Company into a corporation or a similar transaction whereby the business and
assets of the Company are acquired by a successor corporation. Notwithstanding
the foregoing, a Conversion Event shall not include a transfer of all or
substantially all of the assets and business of the Company if the then existing
Managing Members of the Company do not have an equity interest of thirty (30%)
percent or more in the corporation immediately after the transfer and
distribution unless the Managing Members specifically determine that such
transfer is a Conversion Event. For purposes of this paragraph, a Managing
Member shall be considered as owning the equity interests owned by his spouse,
children, grandchildren, parents and the parents of his spouse.

SECTION 7. AMENDMENT AND TERMINATION.

       (a) The Committee may amend, alter, or discontinue the Plan, but no
amendment, alteration, or discontinuation shall be made which would impair the
rights of an optionee or participant under any option theretofore granted
without the optionee's consent, and no amendment will be made without approval
of the Members if such amendment requires Member approval under the operating
agreement of the Company then in effect.

       (b) The Committee may amend the terms of any option or other award
theretofore granted, prospectively or retroactively, but no such amendment shall
impair the rights of any optionee without the optionee's consent. The Committee
may also substitute new options for previously granted options (on a one for one
or other basis), including previously granted options having higher option
exercise prices.

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       (c) Notwithstanding any other provision of this Section 7, in the event
the Members amend the Operating Agreement to provide for the admission of
non-voting Members, the Committee may amend the terms of any option theretofore
granted, prospectively or retroactively, to provide that (i) upon exercise of
such option, by or on behalf of an optionee not previously admitted to the
Company as a Class B Member, the optionee (or his legal representative) shall be
admitted to the Company as a non-voting Member rather than as a Class B Member
and (ii) upon exercise of such option by or on behalf of an optionee previously
admitted to the Company as a Class B Member, such optionee (or his legal
representative) shall have no voting rights with respect to the Units received
on exercise of such option.

SECTION 8. UNFUNDED STATUS OF PLAN.

           The Plan is intended to constitute an "unfunded" plan. With respect
to any payments to be made to an optionee by the Company, nothing contained in
the Plan shall give arty such participant or optionee any rights that are
greater than those of a general creditor of the Company.

SECTION 9. GENERAL PROVISIONS.

       (a) The Committee may require each person purchasing Units pursuant to an
option under the Plan to represent to and agree with the Company in writing that
the optionee or participant is acquiring the Units for investment and not with a
view to the sale or distribution thereof. Any certificates for such Units may
include any legend which the Committee deems appropriate to reflect any
restrictions on transfer. All certificates of beneficial interest for Units
delivered under the Plan shall be subject to such restrictions as the Committee
may deem advisable under the rules, regulations, and other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Units are
then listed and any applicable Federal or state securities law, ant the
Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions. If the Company shall have an
option to repurchase the Units in the event of the optionee's death or
termination of Employment, the Committee may instruct the Company to place an
appropriate legend on any certificates representing such Units.

       (b) Nothing contained in this Plan shall prevent the Committee from
adopting other or additional compensation arrangements, subject to Member
approval if such approval is required; and such arrangements may be either
generally applicable or applicable only in specific cases.

       (c) Neither the adoption of the Plan nor the grant of any award pursuant
to the Plan shall confer upon any employee or Member of the Company or any
Affiliate any right to continued Employment with the Company or an Affiliate, as
the case may be, nor shall it interfere in any way with the right of the Company
or an Affiliate to terminate the Employment of any of its employees or Members
at any time.

       (d) No later than the date as of which an amount first becomes includible
in the gross income of the optionee for Federal income tax purposes with respect
to any option granted or exercised under the Plan, the optionee shall pay to the
Company, or make arrangements

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satisfactory to the Committee regarding the payment of any Federal, state, or
local taxes of any kind required by law to be withheld with respect to such
amount. The obligations of the Company under the Plan shall be conditional on
such payment or arrangements and the Company and its Affiliates shall, to the
extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the optionee. Upon the request of the
optionee, the Committee may, in its sole discretion, authorize the Company to
satisfy the withholding tax obligation of the optionee by having the Company
withhold certain of the Units issuable pursuant to the exercise of the option.
The Units withheld shall have, as of the date on which the amount of tax
required to be withheld is determined, a fair market value equal to the minimum
amount of taxes required to be withheld in connection with the exercise of the
option.

       (e) Capitalized terms and terms not otherwise defined herein shall have
the meanings ascribed to such terms in the Operating Agreement.

SECTION 10. EFFECTIVE DATE OF PLAN.

       The Plan shall be effective as of the date the Plan is approved by
80%-in-interest of the Members.

SECTION 11. TERM OF PLAN

       Options may be granted pursuant to the Plan during the ten (10) year
period commencing on the date the Plan is approved by 80%-in-interest of the
Members, until the Plan shall be terminated, but options granted prior to such
termination may extend beyond that date.

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                                  EXHIBIT 4(b)

             Jupiter Communications, Inc. 1999 Stock Incentive Plan

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                                                                   Exhibit 4(d)

                           JUPITER COMMUNICATIONS, INC.
                             1999 STOCK INCENTIVE PLAN

                                  ARTICLE ONE

                               GENERAL PROVISIONS

     I.   PURPOSE OF THE PLAN

          This 1999 Stock Incentive Plan is intended to promote the interests of
Jupiter Communications, Inc., a Delaware corporation, by providing eligible
persons with the opportunity to acquire a proprietary interest, or otherwise
increase their proprietary interest, in the Corporation as an incentive for them
to remain in the service of the Corporation.

          Capitalized terms shall have the meanings assigned to such terms in
the attached Appendix.

     II.  STRUCTURE OF THE PLAN

          A.   The Plan shall be divided into five separate equity programs:

                  (i) the Discretionary Option Grant Program under which
     eligible persons may, at the discretion of the Plan Administrator, be
     granted options to purchase shares of Common Stock,

                  (ii) the Salary Investment Option Grant Program under which
     eligible employees may elect to have a portion of their base salary
     invested each year in special options,

                  (iii) the Stock Issuance Program under which eligible persons
     may, at the discretion of the Plan Administrator, be issued shares of
     Common Stock directly, either through the immediate purchase of such shares
     or as a bonus for services rendered the Corporation (or any Parent or
     Subsidiary),

                  (iv) the Automatic Option Grant Program under which eligible
     non-employee Board members shall automatically receive options at periodic
     intervals to purchase shares of Common Stock; and

                  (v) the Director Fee Option Grant Program under which
     non-employee Board members may elect to have all or any portion of their
     annual retainer fee otherwise payable in cash applied to a special option
     grant.

          B.   The provisions of Articles One and Seven shall apply to all
equity programs under the Plan and shall govern the interests of all persons
under the Plan.
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     III. ADMINISTRATION OF THE PLAN

          A.   Prior to the Section 12 Registration Date, the Discretionary
Option Grant and Stock Issuance Programs shall be administered by the Board
unless otherwise determined by the Board. Beginning with the Section 12
Registration Date, the following provisions shall govern the administration of
the Plan:

                  (i) The Board shall have the authority to administer the
     Discretionary Option Grant and Stock Issuance Programs with respect to
     Section 16 Insiders but may delegate such authority in whole or in part to
     the Primary Committee.

                  (ii) Administration of the Discretionary Option Grant and
     Stock Issuance Programs with respect to all other persons eligible to
     participate in those programs may, at the Board's discretion, be vested in
     the Primary Committee or a Secondary Committee, or the Board may retain the
     power to administer those programs with respect to all such persons.

                  (iii) Administration of the Automatic Option Grant Program
     shall be self-executing in accordance with the terms of that program.

          B.   Each Plan Administrator shall, within the scope of its
administrative jurisdiction under the Plan, have full power and authority
subject to the provisions of the Plan:

                  (i) to establish such rules as it may deem appropriate for
     proper administration of the Plan, to make all factual determinations, to
     construe and interpret the provisions of the Plan and the awards thereunder
     and to resolve any and all ambiguities thereunder;

                  (ii) to determine, with respect to awards made under the
     Discretionary Option Grant and Stock Issuance Programs, which eligible
     persons are to receive such awards, the time or times when such awards are
     to be made, the number of shares to be covered by each such award, the
     vesting schedule (if any) applicable to the award, the status of a granted
     option as either an Incentive Option or a Non-Statutory Option and the
     maximum term for which the option is to remain outstanding;

                  (iii) to amend, modify or cancel any outstanding award with
     the consent of the holder or accelerate the vesting of such award; and

                  (iv) to take such other discretionary actions as permitted
     pursuant to the terms of the applicable program.

Decisions of each Plan Administrator within the scope of its administrative
functions under the Plan shall be final and binding on all parties.

          C.   Members of the Primary Committee or any Secondary Committee shall
serve for such period of time as the Board may determine and may be removed by
the Board at any time. The Board may also at any time terminate the functions of
any Secondary Committee and reassume all powers and authority previously
delegated to such committee.

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          D.   Service on the Primary Committee or the Secondary Committee shall
constitute service as a Board member, and members of each such committee shall
accordingly be entitled to full indemnification and reimbursement as Board
members for their service on such committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good
faith with respect to the Plan or any options or stock issuances under the Plan.

     IV.  ELIGIBILITY

          A.   The persons eligible to participate in the Discretionary Option
Grant and Stock Issuance Programs are as follows:

                  (i) Employees,

                  (ii) non-employee members of the Board or the board of
     directors of any Parent or Subsidiary, and

                  (iii) consultants and other independent advisors who provide
     services to the Corporation (or any Parent or Subsidiary).

          B.   Only Employees who are Section 16 Insiders or other highly
compensated individuals shall be eligible to participate in the Salary
Investment Option Grant Program.

          C.   Only non-employee Board members shall be eligible to participate
in the Automatic Option Grant and Director Fee Option Grant Programs.

V.       STOCK SUBJECT TO THE PLAN

          A.   The stock issuable under the Plan shall be shares of authorized
but unissued or reacquired Common Stock, including shares repurchased by the
Corporation on the open market. The maximum number of shares of Common Stock
initially reserved for issuance over the term of the Plan shall not exceed Five
Million (5,000,000) shares.

          B.   No one person participating in the Plan may receive options,
separately exercisable stock appreciation rights and direct stock issuances for
more than Five Hundred Thousand (500,000) shares of Common Stock in the
aggregate per calendar year, beginning with the 1999 calendar year.

          C.   Shares of Common Stock subject to outstanding options shall be
available for subsequent issuance under the Plan to the extent those options
expire, terminate or are cancelled for any reason prior to exercise in full.
Unvested shares issued under the Plan and subsequently repurchased by the
Corporation, at the original exercise or issue price paid per share, pursuant to
the Corporation's repurchase rights under the Plan shall be added back to the
number of shares of Common Stock reserved for issuance under the Plan and shall
accordingly be available for reissuance through one or more subsequent options
or direct stock issuances under the Plan. However, should the exercise price of
an option under the Plan be paid with shares of Common Stock or should shares of
Common Stock otherwise issuable under the Plan be withheld by the Corporation in
satisfaction of the withholding taxes incurred in connection

                                       3
<PAGE>   5
with the exercise of an option or the vesting of a stock issuance under the
Plan, then the number of shares of Common Stock available for issuance under the
Plan shall be reduced by the gross number of shares for which the option is
exercised or which vest under the stock issuance, and not by the net number of
shares of Common Stock issued to the holder of such option or stock issuance.
Shares of Common Stock underlying one or more stock appreciation rights
exercised under the Plan shall NOT be available for subsequent issuance.

          D.   If any change is made to the Common Stock by reason of any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without
the Corporation's receipt of consideration, appropriate adjustments shall be
made to (i) the maximum number and/or class of securities issuable under the
Plan, (ii) the number and/or class of securities for which any one person may be
granted options, separately exercisable stock appreciation rights and direct
stock issuances under the Plan per calendar year, (iii) the number and/or class
of securities for which grants are subsequently to be made under the Automatic
Option Grant Program to new and continuing non-employee Board members and (iv)
the number and/or class of securities and the exercise price per share in effect
under each outstanding option under the Plan. Such adjustments to the
outstanding options are to be effected in a manner which shall preclude the
enlargement or dilution of rights and benefits under such options. The
adjustments determined by the Plan Administrator shall be final, binding and
conclusive.

                                       4
<PAGE>   6
                                  ARTICLE TWO

                       DISCRETIONARY OPTION GRANT PROGRAM

     I.   OPTION TERMS

          Each option shall be evidenced by one or more documents in the form
approved by the Plan Administrator; provided, however, that each such document
shall comply with the terms specified below. Each document evidencing an
Incentive Option shall, in addition, be subject to the provisions of the Plan
applicable to such options.

          A.   EXERCISE PRICE.

               1.   The exercise price per share shall be fixed by the Plan
Administrator at the time of the option grant and may be less than, equal to or
greater than the Fair Market Value per share of Common Stock on the option grant
date.

               2.   The exercise price shall become immediately due upon
exercise of the option and shall, subject to the provisions of Section II of
Article Seven and the documents evidencing the option, be payable in one or more
of the following forms:

                    (i)  cash or check made payable to the Corporation,

                    (ii) shares of Common Stock held for the requisite period
     necessary to avoid a charge to the Corporation's earnings for financial
     reporting purposes and valued at Fair Market Value on the Exercise Date, or

                    (iii) to the extent the option is exercised for vested
     shares, through a special sale and remittance procedure pursuant to which
     the Optionee shall concurrently provide irrevocable instructions to (a) a
     Corporation-approved brokerage firm to effect the immediate sale of the
     purchased shares and remit to the Corporation, out of the sale proceeds
     available on the settlement date, sufficient funds to cover the aggregate
     exercise price payable for the purchased shares plus all applicable
     Federal, state and local income and employment taxes required to be
     withheld by the Corporation by reason of such exercise and (b) the
     Corporation to deliver the certificates for the purchased shares directly
     to such brokerage firm in order to complete the sale.

          Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

          B.   EXERCISE AND TERM OF OPTIONS. Each option shall be exercisable at
such time or times, during such period and for such number of shares as shall be
determined by the Plan Administrator and set forth in the documents evidencing
the option. However, no option shall have a term in excess of ten (10) years
measured from the option grant date.

                                       5
<PAGE>   7
          C.   CESSATION OF SERVICE.

               1.   The following provisions shall govern the exercise of any
options outstanding at the time of the Optionee's cessation of Service or death:

                    (i) Any option outstanding at the time of the Optionee's
     cessation of Service for any reason shall remain exercisable for such
     period of time thereafter as shall be determined by the Plan Administrator
     and set forth in the documents evidencing the option, but no such option
     shall be exercisable after the expiration of the option term.

                    (ii) Any option exercisable in whole or in part by the
     Optionee at the time of death may be subsequently exercised by his or her
     Beneficiary.

                    (iii) During the applicable post-Service exercise period,
     the option may not be exercised in the aggregate for more than the number
     of vested shares for which the option is exercisable on the date of the
     Optionee's cessation of Service. Upon the expiration of the applicable
     exercise period or (if earlier) upon the expiration of the option term, the
     option shall terminate and cease to be outstanding for any vested shares
     for which the option has not been exercised. However, the option shall,
     immediately upon the Optionee's cessation of Service, terminate and cease
     to be outstanding to the extent the option is not otherwise at that time
     exercisable for vested shares.

                    (iv) Should the Optionee's Service be terminated for
     Misconduct or should the Optionee engage in Misconduct while his or her
     options are outstanding, then all such options shall terminate immediately
     and cease to be outstanding.

               2.   The Plan Administrator shall have complete discretion,
exercisable either at the time an option is granted or at any time while the
option remains outstanding:

                    (i) to extend the period of time for which the option is to
     remain exercisable following the Optionee's cessation of Service to such
     period of time as the Plan Administrator shall deem appropriate, but in no
     event beyond the expiration of the option term, and/or

                    (ii) to permit the option to be exercised, during the
     applicable post-Service exercise period, for one or more additional
     installments in which the Optionee would have vested had the Optionee
     continued in Service.

          D.   STOCKHOLDER RIGHTS. The holder of an option shall have no
stockholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become a
holder of record of the purchased shares.

          E.   REPURCHASE RIGHTS. The Plan Administrator shall have the
discretion to grant options which are exercisable for unvested shares of Common
Stock. Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to

                                       6
<PAGE>   8
repurchase, at the exercise price paid per share, any or all of those unvested
shares. The terms upon which such repurchase right shall be exercisable
(including the period and procedure for exercise and the appropriate vesting
schedule for the purchased shares) shall be established by the Plan
Administrator and set forth in the document evidencing such repurchase right.

          F.   FIRST REFUSAL RIGHTS. Until the Section 12 Registration Date, the
Corporation shall have the right of first refusal with respect to any proposed
disposition by the Participant (or any successor in interest) of any shares of
Common Stock issued under the Plan. Such right of first refusal shall be
exercisable in accordance with the terms established by the Plan Administrator
and set forth in the document evidencing such right.

          G.   LIMITED TRANSFERABILITY OF OPTIONS. During the lifetime of the
Optionee, Incentive Options shall be exercisable only by the Optionee and shall
not be assignable or transferable other than by will or by the laws of descent
and distribution following the Optionee's death. Non-Statutory Options shall be
subject to the same restrictions, except that a Non-Statutory Option may, to the
extent permitted by the Plan Administrator, be assigned in whole or in part
during the Optionee's lifetime (i) as a gift to one or more members of the
Optionee's immediate family, to a trust in which Optionee and/or one or more
such family members hold more than fifty percent (50%) of the beneficial
interest or to an entity in which more than fifty percent (50%) of the voting
interests are owned by one or more such family members or (ii) pursuant to a
domestic relations order. The terms applicable to the assigned portion shall be
the same as those in effect for the option immediately prior to such assignment
and shall be set forth in such documents issued to the assignee as the Plan
Administrator may deem appropriate.

     II.  INCENTIVE OPTIONS

          The terms specified below shall be applicable to all Incentive
Options. Except as modified by the provisions of this Section II, all the
provisions of Articles One, Two and Six shall be applicable to Incentive
Options. Options which are specifically designated as Non-Statutory Options when
issued under the Plan shall not be subject to the terms of this Section II.

          A.   ELIGIBILITY. Incentive Options may only be granted to Employees.

          B.   EXERCISE PRICE. The exercise price per share shall not be less
than one hundred percent (100%) of the Fair Market Value per share of Common
Stock on the option grant date.

          C.   DOLLAR LIMITATION. The aggregate Fair Market Value of the shares
of Common Stock (determined as of the respective date or dates of grant) for
which one or more options granted to any Employee under the Plan (or any other
option plan of the Corporation or any Parent or Subsidiary) may for the first
time become exercisable as Incentive Options during any one calendar year shall
not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee holds two (2) or more such options which become exercisable for the
first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

                                       7
<PAGE>   9
          D.   10% STOCKHOLDER. If any Employee to whom an Incentive Option is
granted is a 10% Stockholder, then the exercise price per share shall not be
less than one hundred ten percent (110%) of the Fair Market Value per share of
Common Stock on the option grant date, and the option term shall not exceed five
(5) years measured from the option grant date.

     III. CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A.   Each option outstanding at the time of a Change in Control but
not otherwise fully-vested shall automatically accelerate so that each such
option shall, immediately prior to the effective date of the Change in Control,
become exercisable for all of the shares of Common Stock at the time subject to
that option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. However, an outstanding option shall not so accelerate
if and to the extent: (i) such option is, in connection with the Change in
Control, assumed or otherwise continued in full force and effect by the
successor corporation (or parent thereof) pursuant to the terms of the Change in
Control, (ii) such option is replaced with a cash incentive program of the
successor corporation which preserves the spread existing at the time of the
Change in Control on the shares of Common Stock for which the option is not
otherwise at that time exercisable and provides for subsequent payout in
accordance with the same vesting schedule applicable to those option shares or
(iii) the acceleration of such option is subject to other limitations imposed by
the Plan Administrator at the time of the option grant. Each option outstanding
at the time of the Change in Control shall terminate as provided in Section
III.C. of this Article Two.

          B.   All outstanding repurchase rights shall also terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, in the event of any Change in Control, except to
the extent: (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) or otherwise continue in full force and effect
pursuant to the terms of the Change in Control or (ii) such accelerated vesting
is precluded by other limitations imposed by the Plan Administrator at the time
the repurchase right is issued.

          C.   Immediately following the consummation of the Change in Control,
all outstanding options shall terminate and cease to be outstanding, except to
the extent assumed by the successor corporation (or parent thereof) or otherwise
expressly continued in full force and effect pursuant to the terms of the Change
in Control.

          D.   Each option which is assumed in connection with a Change in
Control shall be appropriately adjusted, immediately after such Change in
Control, to apply to the number and class of securities which would have been
issuable to the Optionee in consummation of such Change in Control had the
option been exercised immediately prior to such Change in Control. Appropriate
adjustments to reflect such Change in Control shall also be made to (i) the
exercise price payable per share under each outstanding option, provided the
aggregate exercise price payable for such securities shall remain the same, (ii)
the maximum number and/or class of securities available for issuance over the
remaining term of the Plan and (iii) the maximum number and/or class of
securities for which any one person may be granted options, separately
exercisable stock appreciation rights and direct stock issuances under the Plan
per calendar year.

                                       8
<PAGE>   10
          E.   The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Change in Control,
whether or not those options are assumed or otherwise continued in full force
and effect pursuant to the terms of the Change in Control. Any such option shall
accordingly become exercisable, immediately prior to the effective date of such
Change in Control, for all of the shares of Common Stock at the time subject to
that option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. In addition, the Plan Administrator may at any time
provide that one or more of the Corporation's repurchase rights shall not be
assignable in connection with such Change in Control and shall terminate upon
the consummation of such Change in Control.

          F.   The Plan Administrator may at any time provide that one or more
options will automatically accelerate upon an Involuntary Termination of the
Optionee's Service within a designated period (not to exceed eighteen (18)
months) following the effective date of any Change in Control in which those
options do not otherwise accelerate. Any options so accelerated shall remain
exercisable for fully-vested shares until the earlier of (i) the expiration of
the option term or (ii) the expiration of the one (1) year period measured from
the effective date of the Involuntary Termination. In addition, the Plan
Administrator may at any time provide that one or more of the Corporation's
repurchase rights shall immediately terminate upon such Involuntary Termination.

          G.   The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Hostile Take-Over.
Any such option shall become exercisable, immediately prior to the effective
date of such Hostile Take-Over, for all of the shares of Common Stock at the
time subject to that option and may be exercised for any or all of those shares
as fully-vested shares of Common Stock. In addition, the Plan Administrator may
at any time provide that one or more of the Corporation's repurchase rights
shall terminate automatically upon the consummation of such Hostile Take-Over.
Alternatively, the Plan Administrator may condition such automatic acceleration
and termination upon an Involuntary Termination of the Optionee's Service within
a designated period (not to exceed eighteen (18) months) following the effective
date of such Hostile Take-Over. Each option so accelerated shall remain
exercisable for fully-vested shares until the expiration or sooner termination
of the option term.

          H.   The portion of any Incentive Option accelerated in connection
with a Change in Control or Hostile Take Over shall remain exercisable as an
Incentive Option only to the extent the applicable One Hundred Thousand Dollar
($100,000) limitation is not exceeded. To the extent such dollar limitation is
exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws.

     IV.  STOCK APPRECIATION RIGHTS

          The Plan Administrator may, subject to such conditions as it may
determine, grant to selected Optionees stock appreciation rights which will
allow the holders of those rights to elect between the exercise of the
underlying option for shares of Common Stock and the surrender of that option in
exchange for a distribution from the Corporation in an amount equal to the
excess of (a) the Option Surrender Value of the number of shares for which the
option is surrendered over (b) the aggregate exercise price payable for such
shares. The distribution may

                                       9
<PAGE>   11
be made in shares of Common Stock valued at Fair Market Value on the option
surrender date, in cash, or partly in shares and partly in cash, as the Plan
Administrator shall in its sole discretion deem appropriate.

                                       10
<PAGE>   12
                                 ARTICLE THREE

                     SALARY INVESTMENT OPTION GRANT PROGRAM

     I.   OPTION GRANTS

          The Primary Committee may implement the Salary Investment Option Grant
Program for one or more calendar years beginning after the Underwriting Date and
select the Section 16 Insiders and other highly compensated Employees eligible
to participate in the Salary Investment Option Grant Program for each such
calendar year. Each selected individual who elects to participate in the Salary
Investment Option Grant Program must, prior to the start of each calendar year
of participation, file with the Plan Administrator (or its designate) an
irrevocable authorization directing the Corporation to reduce his or her base
salary for that calendar year by an amount not less than Five Thousand Dollars
($5,000.00) nor more than Fifty Thousand Dollars ($50,000.00). The Primary
Committee shall have complete discretion to determine whether to approve the
filed authorization in whole or in part. To the extent the Primary Committee
approves the authorization, the individual who filed that authorization shall be
granted an option under the Salary Investment Grant Program on the first trading
day in January for the calendar year for which the salary reduction is to be in
effect.

     II.  OPTION TERMS

          Each option shall be a Non-Statutory Option evidenced by one or more
documents in the form approved by the Plan Administrator; provided, however,
that each such document shall comply with the terms specified below.

          A.   Exercise Price.

               1.   The exercise price per share shall be thirty-three and
one-third percent (33-1/3%) of the Fair Market Value per share of Common Stock
on the option grant date.

               2.   The exercise price shall become immediately due upon
exercise of the option and shall be payable in one or more of the alternative
forms authorized under the Discretionary Option Grant Program. Except to the
extent the sale and remittance procedure specified thereunder is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

          B.   NUMBER OF OPTION SHARES. The number of shares of Common Stock
subject to the option shall be determined pursuant to the following formula
(rounded down to the nearest whole number):

               X = A / (B x 66-2/3%), where

               X is the number of option shares,

               A is the dollar amount of the approved reduction in the
          Optionee's base salary for the calendar year, and

                                       11
<PAGE>   13
               B is the Fair Market Value per share of Common Stock on the
          option grant date.

          C.   EXERCISE AND TERM OF OPTIONS. The option shall become exercisable
in a series of twelve (12) successive equal monthly installments upon the
Optionee's completion of each calendar month of Service in the calendar year for
which the salary reduction is in effect. Each option shall have a maximum term
of ten (10) years measured from the option grant date.

          D.   CESSATION OF SERVICE. Each option outstanding at the time of the
Optionee's cessation of Service shall remain exercisable, for any or all of the
shares for which the option is exercisable at the time of such cessation of
Service, until the earlier of (i) the expiration of the option term or (ii) the
expiration of the three (3)-year period following the Optionee's cessation of
Service. To the extent the option is held by the Optionee at the time of his or
her death, the option may be exercised by his or her Beneficiary. However, the
option shall, immediately upon the Optionee's cessation of Service, terminate
and cease to remain outstanding with respect to any and all shares of Common
Stock for which the option is not otherwise at that time exercisable.

     III. CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A.   In the event of any Change in Control or Hostile Take-Over while
the Optionee remains in Service, each outstanding option shall automatically
accelerate so that each such option shall, immediately prior to the effective
date of the Change in Control or Hostile Take-Over, become fully exercisable
with respect to the total number of shares of Common Stock at the time subject
to such option and may be exercised for any or all of those shares as
fully-vested shares of Common Stock. Each such option accelerated in connection
with a Change in Control shall terminate upon the Change in Control, except to
the extent assumed by the successor corporation (or parent thereof) or otherwise
continued in full force and effect pursuant to the terms of the Change in
Control. Each such option accelerated in connection with a Hostile Take-Over
shall remain exercisable until the expiration or sooner termination of the
option term.

          B.   Each option which is assumed in connection with a Change in
Control shall be appropriately adjusted to apply to the number and class of
securities which would have been issuable to the Optionee in consummation of
such Change in Control had the option been exercised immediately prior to such
Change in Control. Appropriate adjustments shall also be made to the exercise
price payable per share under each outstanding option, provided the aggregate
exercise price payable for such securities shall remain the same.

          C.   Upon the occurrence of a Hostile Take-Over, the Optionee shall
have a thirty (30)-day period in which to surrender to the Corporation each of
his or her outstanding options. The Optionee shall in return be entitled to a
cash distribution from the Corporation in an amount equal to the excess of (i)
the Option Surrender Value of the shares of Common Stock at the time subject to
each surrendered option (whether or not the Optionee is otherwise at the time
vested in those shares) over (ii) the aggregate exercise price payable for such
shares. Such cash distribution shall be paid within five (5) days following the
surrender of the option to the Corporation.

                                       12
<PAGE>   14
     IV.  REMAINING TERMS

          The remaining terms of each option granted under the Salary Investment
Option Grant Program shall be the same as the terms in effect for options made
under the Discretionary Option Grant Program.

                                       13
<PAGE>   15
                                  ARTICLE FOUR

                             STOCK ISSUANCE PROGRAM

     I.   STOCK ISSUANCE TERMS

          Shares of Common Stock may be issued under the Stock Issuance Program
through direct and immediate issuances without any intervening options. Shares
of Common Stock may also be issued under the Stock Issuance Program pursuant to
share right awards which entitle the recipients to receive those shares upon the
attainment of designated performance goals or Service requirements. Each such
award shall be evidenced by one or more documents which comply with the terms
specified below.

          A.   PURCHASE PRICE.

               1.   The purchase price per share of Common Stock subject to
direct issuance shall be fixed by the Plan Administrator and may be less than,
equal to greater than the Fair Market Value per share of Common Stock on the
issue date.

               2.   Subject to the provisions of Section II of Article Seven,
shares of Common Stock may be issued under the Stock Issuance Program for any of
the following items of consideration which the Plan Administrator may deem
appropriate in each individual instance:

                    (i)  cash or check made payable to the Corporation, or

                    (ii) past services rendered to the Corporation (or any
     Parent or Subsidiary).

          B.   VESTING/ISSUANCE PROVISIONS.

               1.   The Plan Administrator may issue shares of Common Stock
which are fully and immediately vested upon issuance or which are to vest in one
or more installments over the Participant's period of Service or upon attainment
of specified performance objectives. Alternatively, the Plan Administrator may
issue share right awards which shall entitle the recipient to receive a
specified number of vested shares of Common Stock upon the attainment of one or
more performance goals or Service requirements established by the Plan
Administrator.

               2.   Any new, substituted or additional securities or other
property (including money paid other than as a regular cash dividend) which the
Participant may have the right to receive with respect to his or her unvested
shares of Common Stock by reason of any stock dividend, stock split,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration shall be issued subject to (i) the same vesting
requirements applicable to the Participant's unvested shares of Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

                                       14
<PAGE>   16
               3.   The Participant shall have full stockholder rights with
respect to the issued shares of Common Stock, whether or not the Participant's
interest in those shares is vested. Accordingly, the Participant shall have the
right to vote such shares and to receive any regular cash dividends paid on such
shares.

               4.   Should the Participant cease to remain in Service while
holding one or more unvested shares of Common Stock, or should the performance
objectives not be attained with respect to one or more such unvested shares of
Common Stock, then those shares shall be immediately surrendered to the
Corporation for cancellation, and the Participant shall have no further
stockholder rights with respect to those shares. To the extent the surrendered
shares were previously issued to the Participant for consideration paid in cash
or cash equivalent (including the Participant's purchase-money indebtedness),
the Corporation shall repay to the Participant the cash consideration paid for
the surrendered shares and shall cancel the unpaid principal balance of any
outstanding purchase-money note of the Participant attributable to the
surrendered shares.

               5.   The Plan Administrator may waive the surrender and
cancellation of one or more unvested shares of Common Stock (or other assets
attributable thereto) which would otherwise occur upon the cessation of the
Participant's Service or the non-attainment of the performance objectives
applicable to those shares. Such waiver shall result in the immediate vesting of
the Participant's interest in the shares of Common Stock as to which the waiver
applies. Such waiver may be effected at any time, whether before or after the
Participant's cessation of Service or the attainment or non-attainment of the
applicable performance objectives.

               6.   Outstanding share right awards shall automatically
terminate, and no shares of Common Stock shall actually be issued in
satisfaction of those awards, if the performance goals or Service requirements
established for such awards are not attained. The Plan Administrator, however,
shall have the authority to issue shares of Common Stock in satisfaction of one
or more outstanding share right awards as to which the designated performance
goals or Service requirements are not attained.

     II.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A.   All of the Corporation's outstanding repurchase rights shall
terminate automatically, and all the shares of Common Stock subject to those
terminated rights shall immediately vest in full, in the event of any Change in
Control, except to the extent (i) those repurchase rights are assigned to the
successor corporation (or parent thereof) or otherwise continue in full force
and effect pursuant to the terms of the Change in Control or (ii) such
accelerated vesting is precluded by other limitations imposed by the Plan
Administrator at the time the repurchase right is issued.

          B.   The Plan Administrator may at any time provide for the automatic
termination of one or more of those outstanding repurchase rights and the
immediate vesting of the shares of Common Stock subject to those terminated
rights upon (i) a Change in Control or Hostile Take-Over or (ii) an Involuntary
Termination of the Participant's Service within a designated period (not to
exceed eighteen (18) months) following the effective date of any

                                       15
<PAGE>   17
Change in Control or Hostile Take-Over in which those repurchase rights are
assigned to the successor corporation (or parent thereof) or otherwise continue
in full force and effect.

     III. SHARE ESCROW/LEGENDS

          Unvested shares may, in the Plan Administrator's discretion, be held
in escrow by the Corporation until the Participant's interest in such shares
vests or may be issued directly to the Participant with restrictive legends on
the certificates evidencing those unvested shares.

                                       16
<PAGE>   18
                                  ARTICLE FIVE

                         AUTOMATIC OPTION GRANT PROGRAM

     I.   OPTION TERMS

          A.   GRANT DATES. Options shall be made on the dates specified below:

               1.   Each individual who is first elected or appointed as a
non-employee Board member at any time after the Plan Effective Date and is
serving as a non-employee Board member on the Underwriting Date, shall
automatically be granted, on the Underwriting Date, a Non-Statutary Option to
purchase Fifty Thousand (50,000) shares of Common Stock, provided that
individual has not previously been in the employ of the Corporation (or any
Parent or Subsidiary).

               2.   Each individual who is first elected or appointed as a
non-employee Board member at any time after the Underwriting Date shall
automatically be granted, on the date of such initial election or appointment, a
Non-Statutory Option to purchase Fifty Thousand (50,000) shares of Common Stock,
provided that individual has not previously been in the employ of the
Corporation (or any Parent or Subsidiary).

               3.   On the date of each Annual Stockholders Meeting beginning
with the 2001 Annual Stockholder Meeting, each individual who is to continue to
serve as a non-employee Board member shall automatically be granted a
Non-Statutory Option to purchase Five Thousand (5,000) shares of Common Stock.

          B.   EXERCISE PRICE.

               1.   The exercise price per share shall be equal to one hundred
percent (100%) of the Fair Market Value per share of Common Stock on the option
grant date.

               2.   The exercise price shall be payable in one or more of the
alternative forms authorized under the Discretionary Option Grant Program.
Except to the extent the sale and remittance procedure specified thereunder is
utilized, payment of the exercise price for the purchased shares must be made on
the Exercise Date.

          C.   OPTION TERM. Each option shall have a term of ten (10) years
measured from the option grant date.

          D.   EXERCISE AND VESTING OF OPTIONS. Each option shall be immediately
exercisable for any or all of the option shares. However, any shares purchased
under the option shall be subject to repurchase by the Corporation, at the
exercise price paid per share, upon the Optionee's cessation of Board service
prior to vesting in those shares. Each 50,000-share option shall vest, and the
Corporation's repurchase right shall lapse, in a series of four (4) successive
equal annual installments over the Optionee's period of continued service as a
Board member, with the first such installment to vest upon the Optionee's
completion of one (1) year of Board service measured from the option grant date.
Each annual 5,000-share option shall vest upon the Optionee's completion of one
(1) year of service as a Board Member measured from the option grant.

          E.   CESSATION OF BOARD SERVICE. The following provisions shall govern
the exercise of any options outstanding at the time of the Optionee's cessation
of Board service:

                                       17
<PAGE>   19
                    (i)  Any option outstanding at the time of the Optionee's
     cessation of Board service for any reason shall remain exercisable for a
     twelve (12)-month period following the date of such cessation of Board
     service, but in no event shall such option be exercisable after the
     expiration of the option term.

                    (ii) Any option exercisable in whole or in part by the
     Optionee at the time of death may be subsequently exercised by his or her
     Beneficiary.

                    (iii) Following the Optionee's cessation of Board service,
     the option may not be exercised in the aggregate for more than the number
     of shares for which the option was exercisable on the date of such
     cessation of Board service. Upon the expiration of the applicable exercise
     period or (if earlier) upon the expiration of the option term, the option
     shall terminate and cease to be outstanding for any vested shares for which
     the option has not been exercised. However, the option shall, immediately
     upon the Optionee's cessation of Board service, terminate and cease to be
     outstanding for any and all shares for which the option is not otherwise at
     that time exercisable.

                    (iv) However, should the Optionee cease to serve as a Board
     member by reason of death or Permanent Disability, then all shares at the
     time subject to the option shall immediately vest so that such option may,
     during the twelve (12)-month exercise period following such cessation of
     Board service, be exercised for all or any portion of those shares as
     fully-vested shares of Common Stock.

     II.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A.   In the event of any Change in Control or Hostile Take-Over, the
shares of Common Stock at the time subject to each outstanding option but not
otherwise vested shall automatically vest in full so that each such option may,
immediately prior to the effective date of such Change in Control or Hostile
Take-Over, became fully exercisable for all of the shares of Common Stock at the
time subject to such option and maybe exercised for all or any of those shares
as fully-vested shares of Common Stock. Each such option accelerated in
connection with a Change in Control shall terminate upon the Change in Control,
except to the extent assumed by the successor corporation (or parent thereof) or
otherwise continued in full force and effect pursuant to the terms of the Change
in Control. Each such option accelerated in connection with a Hostile Take-Over
shall remain exercisable until the expiration or sooner termination of the
option term.

          B.   All outstanding repurchase rights shall automatically terminate
and the shares of Common Stock subject to those terminated rights shall
immediately vest in full, in the event of any Change in Control or Hostile
Take-Over.

          C.   Upon the occurrence of a Hostile Take-Over, the Optionee shall
have a thirty (30)-day period in which to surrender to the Corporation each of
his or her outstanding options. The Optionee shall in return be entitled to a
cash distribution from the Corporation in an amount equal to the excess of (i)
the Option Surrender Value of the shares of Common Stock at the time subject to
each surrendered option (whether or not the option is otherwise at the time
exercisable for those shares) over (ii) the aggregate exercise price payable for
such shares. Such

                                       18
<PAGE>   20
cash distribution shall be paid within five (5) days following the surrender of
the option to the Corporation.

          D.   Each option which is assumed in connection with a Change in
Control shall be appropriately adjusted to apply to the number and class of
securities which would have been issuable to the Optionee in consummation of
such Change in Control had the option been exercised immediately prior to such
Change in Control. Appropriate adjustments shall also be made to the exercise
price payable per share under each outstanding option, provided the aggregate
exercise price payable for such securities shall remain the same.

     III. REMAINING TERMS

          The remaining terms of each option granted under the Automatic Option
Grant Program shall be the same as the terms in effect for options made under
the Discretionary Option Grant Program.

                                       19
<PAGE>   21
                                   ARTICLE SIX

                        DIRECTOR FEE OPTION GRANT PROGRAM

     I.   OPTION GRANTS

          The Board may implement the Director Fee Option Grant Program as of
the first day of any calendar year beginning after the Underwriting Date. Upon
such implementation of the Program, each non-employee Board member may elect to
apply all or any portion of the annual retainer fee otherwise payable in cash
for his or her service on the Board to the acquisition of a special option grant
under this Director Fee Option Grant Program. Such election must be filed with
the Corporation's Chief Financial Officer prior to the first day of the calendar
year for which the election is to be in effect. Each non-employee Board member
who files such a timely election with respect to the annul retainer fee shall
automatically be granted an option under this Director Fee Option Grant Program
on the first trading day in January in the calendar year for which that fee
would otherwise be payable.

     II.  OPTION TERMS

          Each option shall be a Non-Statutory Option governed by the terms and
conditions specified below.

          A.   EXERCISE PRICE.

               1.   The exercise price per share shall be thirty-three and
one-third percent (33-1/3%) of the Fair Market Value per share of Common Stock
on the option grant date.

               2.   The exercise price shall become immediately due upon
exercise of the option and shall be payable in one or more of the alternative
forms authorized under the Discretionary Option Grant Program. Except to the
extent the sale and remittance procedure specified thereunder is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

          B.   NUMBER OF OPTION SHARES. The number of shares of Common Stock
subject to the option shall be determined pursuant to the following formula
(rounded down to the nearest whole number):

          X = A / (B x 66-2/3%), where

          X is the number of option shares,

          A is the portion of the annual retainer fee subject to the
          non-employee Board member's election, and

          B is the Fair Market Value per share of Common Stock on the option
          grant date.

          C.   EXERCISE AND TERM OF OPTIONS. The option shall become exercisable
in a series of twelve (12) successive equal monthly installments upon the
Optionee's completion of

                                       20
<PAGE>   22
each month of Board service during the calendar year in which the option is
granted. Each option shall have a maximum term of ten (10) years measured from
the option grant date.

          D.   CESSATION OF BOARD SERVICE. Should the Optionee cease Board
service for any reason (other than death or Permanent Disability) while holding
one or more options, then each such option shall remain exercisable, for any or
all of the shares for which the option is exercisable at the time of such
cessation of Board service, until the earlier of (i) the expiration of the ten
(10)-year option term or (ii) the expiration of the three (3)-year period
measured from the date of such cessation of Board service. However, each option
held by the Optionee at the time of such cessation of Board service shall
immediately terminate and cease to remain outstanding with respect to any and
all shares of Common Stock for which the option is not otherwise at that time
exercisable.

          E.   DEATH OR PERMANENT DISABILITY. Should the Optionee's service as a
Board member cease by reason of death or Permanent Disability, then each option
held by such Optionee shall immediately become exercisable for all the shares of
Common Stock at the time subject to that option, and the option may be exercised
for any or all of those shares as fully-vested shares until the earlier of (i)
the expiration of the ten (10)-year option term or (ii) the expiration of the
three (3)-year period measured from the date of such cessation of Board service.

          Should the Optionee die after cessation of Board service but while
holding one or more options, then each such option may be exercised, for any or
all of the shares for which the option is exercisable at the time of the
Optionee's cessation of Board service (less any shares subsequently purchased by
Optionee prior to death), by the Optionee's Beneficiary. Such right of exercise
shall lapse, and the option shall terminate, upon the earlier of (i) the
expiration of the ten (10)-year option term or (ii) the three (3)-year period
measured from the date of the Optionee's cessation of Board service.

     III. CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A.   In the event of any Change in Control or Hostile Take-Over while
the Optionee remains in Board service, each outstanding option held by such
Optionee shall automatically accelerate so that each such option shall,
immediately prior to the effective date of the Change in Control or Hostile
Take-Over, become fully exercisable with respect to the total number of shares
of Common Stock at the time subject to such option and may be exercised for any
or all of those shares as fully-vested shares of Common Stock. Each such option
accelerated in connection with a Change in Control shall terminate upon the
Change in Control, except to the extent assumed by the successor corporation (or
parent thereof) or otherwise expressly continued in full force and effect
pursuant to the terms of the Change in Control. Each such option accelerated in
connection with a Hostile Take-Over shall remain exercisable until the
expiration or sooner termination of the option term.

          B.   Upon the occurrence of a Hostile Take-Over, the Optionee shall
have a thirty (30)-day period in which to surrender to the Corporation each of
his or her outstanding options. The Optionee shall in return be entitled to a
cash distribution from the Corporation in an amount equal to the excess of (i)
the Option Surrender Value of the shares of Common Stock at the time subject to
each surrendered option (whether or not the Optionee is otherwise at the time

                                       21
<PAGE>   23
vested in those shares) over (ii) the aggregate exercise price payable for such
shares. Such cash distribution shall be paid within five (5) days following the
surrender of the option to the Corporation.

     IV.  REMAINING TERMS

          The remaining terms of each option granted under this Director Fee
Option Grant Program shall be the same as the terms in effect for options made
under the Discretionary Option Grant Program.

                                       22
<PAGE>   24
                                  ARTICLE SEVEN

                                  MISCELLANEOUS

     I.   NO IMPAIRMENT OF AUTHORITY

          Outstanding awards shall in no way affect the right of the Corporation
to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

     II.  FINANCING

          The Plan Administrator may permit any Optionee or Participant to pay
the option exercise price under the Discretionary Option Grant Program or the
purchase price of shares issued under the Stock Issuance Program by delivering a
full-recourse, interest bearing promissory note payable in one or more
installments. The terms of any such promissory note (including the interest rate
and the terms of repayment) shall be established by the Plan Administrator in
its sole discretion. In no event may the maximum credit available to the
Optionee or Participant exceed the sum of (i) the aggregate option exercise
price or purchase price payable for the purchased shares plus (ii) any Federal,
state and local income and employment tax liability incurred by the Optionee or
the Participant in connection with the option exercise or share purchase.

     III. TAX WITHHOLDING

          A.   The Corporation's obligation to deliver shares of Common Stock
upon the exercise of options or the issuance or vesting of such shares under the
Plan shall be subject to the satisfaction of all applicable Federal, state and
local income and employment tax withholding requirements.

          B.   The Plan Administrator may, in its discretion, provide any or all
holders of Non-Statutory Options or unvested shares of Common Stock under the
Plan with the right to use shares of Common Stock in satisfaction of all or part
of the Withholding Taxes incurred by such holders in connection with the
exercise of their options or the vesting of their shares. Such right may be
provided to any such holder in either or both of the following formats:

               Stock Withholding: The election to have the Corporation withhold,
from the shares of Common Stock otherwise issuable upon the exercise of such
Non-Statutory Option or the vesting of such shares, a portion of those shares
with an aggregate Fair Market Value equal to the percentage of the Withholding
Taxes (not to exceed one hundred percent (100%)) designated by the holder.

               Stock Delivery: The election to deliver to the Corporation, at
the time the Non-Statutory Option is exercised or the shares vest, one or more
shares of Common Stock previously acquired by such holder (other than in
connection with the option exercise or share vesting triggering the Withholding
Taxes) with an aggregate Fair Market Value equal to the percentage of the Taxes
(not to exceed one hundred percent (100%)) designated by the holder.

                                       23
<PAGE>   25
     IV.  EFFECTIVE DATE AND TERM OF THE PLAN

          A.   The Plan shall become effective immediately upon the Plan
Effective Date. However, the Salary Investment Option Grant and Director Fee
Option Grant Programs shall not be implemented until such time as the Primary
Committee or the Board may deem appropriate. Options may be granted under the
Discretionary Option Grant Program at any time on or after the Plan Effective
Date. However, no options granted under the Plan may be exercised, and no shares
shall be issued under the Plan, until the Plan is approved by the Corporation's
stockholders. If such stockholder approval is not obtained within twelve (12)
months after the Plan Effective Date, then all options previously granted under
this Plan shall terminate and cease to be outstanding, and no further options
shall be granted and no shares shall be issued under the Plan.

          B.   The Plan shall terminate upon the earliest of (i) September 16,
2009, (ii) the date on which all shares available for issuance under the Plan
shall have been issued as fully-vested shares or (iii) the termination of all
outstanding options in connection with a Change in Control. Upon such plan
termination, all outstanding options and unvested stock issuances shall
thereafter continue to have force and effect in accordance with the provisions
of the documents evidencing such grants or issuances.

     V.   AMENDMENT OF THE PLAN

          A.   The Board shall have complete and exclusive power and authority
to amend or modify the Plan in any or all respects. However, no such amendment
or modification shall adversely affect the rights and obligations with respect
to stock options or unvested stock issuances at the time outstanding under the
Plan unless the Optionee or the Participant consents to such amendment or
modification. In addition, certain amendments may require stockholder approval
pursuant to applicable laws or regulations.

          B.   Options to purchase shares of Common Stock may be granted under
the Discretionary Option Grant and Salary Investment Option Grant Programs and
shares of Common Stock may be issued under the Stock Issuance Program that are
in each instance in excess of the number of shares then available for issuance
under the Plan, provided any excess shares actually issued under those programs
shall be held in escrow until there is obtained stockholder approval of an
amendment sufficiently increasing the number of shares of Common Stock available
for issuance under the Plan. If such stockholder approval is not obtained within
twelve (12) months after the date the first such excess issuances are made, then
(i) any unexercised options granted on the basis of such excess shares shall
terminate and cease to be outstanding and (ii) the Corporation shall promptly
refund to the Optionees and the Participants the exercise or purchase price paid
for any excess shares issued under the Plan and held in escrow, together with
interest (at the applicable Short Term Federal Rate) for the period the shares
were held in escrow, and such shares shall thereupon be automatically cancelled
and cease to be outstanding.

                                       24
<PAGE>   26
     VI.  USE OF PROCEEDS

          Any cash proceeds received by the Corporation from the sale of shares
of Common Stock under the Plan shall be used for general corporate purposes.

     VII. REGULATORY APPROVALS

          A.   The implementation of the Plan, the granting of any stock option
under the Plan and the issuance of any shares of Common Stock (i) upon the
exercise of any granted option or (ii) under the Stock Issuance Program shall be
subject to the Corporation's procurement of all approvals and permits required
by regulatory authorities having jurisdiction over the Plan, the stock options
granted under it and the shares of Common Stock issued pursuant to it.

          B.   No shares of Common Stock or other assets shall be issued or
delivered under the Plan unless and until there shall have been compliance with
all applicable requirements of Federal and state securities laws, including the
filing and effectiveness of the Form S-8 registration statement for the shares
of Common Stock issuable under the Plan, and all applicable listing requirements
of any stock exchange (or the Nasdaq National Market, if applicable) on which
Common Stock is then listed for trading.

     VIII. NO EMPLOYMENT/SERVICE RIGHTS

          Nothing in the Plan shall confer upon the Optionee or the Participant
any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Corporation
(or any Parent or Subsidiary employing or retaining such person) or of the
Optionee or the Participant, which rights are hereby expressly reserved by each,
to terminate such person's Service at any time for any reason, with or without
cause.

                                       25
<PAGE>   27
                                    APPENDIX

                  The following definitions shall be in effect under the Plan:

          A.   AUTOMATIC OPTION GRANT PROGRAM shall mean the automatic option
grant program in effect under the Plan.

          B.   BENEFICIARY shall mean, in the event the Plan Administrator
implements a beneficiary designation procedure, the person designated by an
Optionee or Participant, pursuant to such procedure, to succeed to such person's
rights under any outstanding awards held by him or her at the time of death. In
the absence of such designation or procedure, the Beneficiary shall be the
personal representative of the estate of the Optionee or Participant or the
person or persons to whom the award is transferred by will or the laws of
descent and distribution.

          C.   BOARD shall mean the Corporation's Board of Directors.

          D.   CHANGE IN CONTROL shall mean a change in ownership or control of
the Corporation effected through any of the following transactions:

                    (i)  a merger, consolidation or reorganization approved by
     the Corporation's stockholders, unless securities representing more than
     fifty percent (50%) of the total combined voting power of the voting
     securities of the successor corporation are immediately thereafter
     beneficially owned, directly or indirectly and in substantially the same
     proportion, by the persons who beneficially owned the Corporation's
     outstanding voting securities immediately prior to such transaction,

                    (ii) any stockholder-approved transfer or other disposition
     of all or substantially all of the Corporation's assets, or

                    (iii) the acquisition, directly or indirectly by any person
     or related group of persons (other than the Corporation or a person that
     directly or indirectly controls, is controlled by, or is under common
     control with, the Corporation), of beneficial ownership (within the meaning
     of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty
     percent (50%) of the total combined voting power of the Corporation's
     outstanding securities pursuant to a tender or exchange offer made directly
     to the Corporation's stockholders which the Board recommends such
     stockholders accept.

          E.   CODE shall mean the Internal Revenue Code of 1986, as amended.

          F.   COMMON STOCK shall mean the Corporation's common stock.

          G.   CORPORATION shall mean Jupiter Communications, Inc., a Delaware
corporation, and any corporate successor to all or substantially all of the
assets or voting stock of Jupiter Communications, Inc. which shall by
appropriate action adopt the Plan.

          H.   DIRECTOR FEE OPTION GRANT PROGRAM shall mean the director fee
option grant program in effect under the Plan.

                                      A-1
<PAGE>   28
          I.   DISCRETIONARY OPTION GRANT PROGRAM shall mean the discretionary
option grant program in effect under the Plan.

          J.   EMPLOYEE shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

          K.   EXERCISE DATE shall mean the date on which the Corporation shall
have received written notice of the option exercise.

          L.   FAIR MARKET VALUE per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

                    (i)  If the Common Stock is at the time traded on the Nasdaq
     National Market, then the Fair Market Value shall be the closing selling
     price per share of Common Stock on the date in question, as such price is
     reported on the Nasdaq National Market or any successor system. If there is
     no closing selling price for the Common Stock on the date in question, then
     the Fair Market Value shall be the closing selling price on the last
     preceding date for which such quotation exists.

                    (ii) If the Common Stock is at the time listed on any Stock
     Exchange, then the Fair Market Value shall be the closing selling price per
     share of Common Stock on the date in question on the Stock Exchange
     determined by the Plan Administrator to be the primary market for the
     Common Stock, as such price is officially quoted in the composite tape of
     transactions on such exchange. If there is no closing selling price for the
     Common Stock on the date in question, then the Fair Market Value shall be
     the closing selling price on the last preceding date for which such
     quotation exists.

                    (iii) For purposes of any option grants made on the
     Underwriting Date, the Fair Market Value shall be deemed to be equal to the
     price per share at which the Common Stock is to be sold in the initial
     public offering pursuant to the Underwriting Agreement.

                    (iv) For purposes of any options made prior to the
     Underwriting Date, the Fair Market Value shall be determined by the Plan
     Administrator, after taking into account such factors as it deems
     appropriate.

          M.   HOSTILE TAKE-OVER shall mean:

                    (i)  the acquisition, directly or indirectly, by any person
     or related group of persons (other than the Corporation or a person that
     directly or indirectly controls, is controlled by, or is under common
     control with, the Corporation) of beneficial ownership (within the meaning
     of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty
     percent (50%) of the total combined voting power of the Corporation's
     outstanding securities pursuant to a tender or exchange offer made directly
     to the Corporation's stockholders which the Board does not recommend such
     stockholders to accept, or

                                      A-2
<PAGE>   29
                    (ii) a change in the composition of the Board over a period
     of thirty-six (36) consecutive months or less such that a majority of the
     Board members ceases, by reason of one or more contested elections for
     Board membership, to be comprised of individuals who either (A) have been
     Board members continuously since the beginning of such period or (B) have
     been elected or nominated for election as Board members during such period
     by at least a majority of the Board members described in clause (A) who
     were still in office at the time the Board approved such election or
     nomination.

          N.   INCENTIVE OPTION shall mean an option which satisfies the
requirements of Code Section 422.

          O.   INVOLUNTARY TERMINATION shall mean the termination of the Service
of any individual which occurs by reason of:

                    (i)  such individual's involuntary dismissal or discharge by
     the Corporation for reasons other than Misconduct, or

                    (ii) such individual's voluntary resignation following (A) a
     change in his or her position with the Corporation or Parent or Subsidiary
     employing the individual which materially reduces his or her duties and
     responsibilities or the level of management to which he or she reports, (B)
     a reduction in his or her level of compensation (including base salary,
     fringe benefits and target bonus under any performance based bonus or
     incentive programs) by more than fifteen percent (15%) or (C) a relocation
     of such individual's place of employment by more than fifty (50) miles,
     provided and only if such change, reduction or relocation is effected by
     the Corporation without the individual's consent.

          P.   MISCONDUCT shall mean the commission of any act of fraud,
embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the
Corporation (or any Parent or Subsidiary), or any intentional wrongdoing by such
person, whether by omission or commission, which adversely affects the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material
manner. This shall not limit the grounds for the dismissal or discharge of any
person in the Service of the Corporation (or any Parent or Subsidiary).

          Q.   1934 ACT shall mean the Securities Exchange Act of 1934, as
amended.

          R.   NON-STATUTORY OPTION shall mean an option not intended to satisfy
the requirements of Code Section 422.

          S.   OPTION SURRENDER VALUE shall mean the Fair Market Value per share
of Common Stock on the date the option is surrendered to the Corporation or, in
the event of a Hostile Take-Over, effected through a tender offer, the highest
reported price per share of Common Stock paid by the tender offeror in effecting
such Hostile Take-Over, if greater. However, if the surrendered option is an
Incentive Option, the Option Surrender Value shall not exceed the Fair Market
Value per share.

                                      A-3
<PAGE>   30
          T.   OPTIONEE shall mean any person to whom an option is granted under
the Discretionary Option Grant, Salary Investment Option Grant, Automatic Option
Grant or Director Fee Option Grant Program.

          U.   PARENT shall mean any corporation (other than the Corporation) in
an unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

          V.   PARTICIPANT shall mean any person who is issued shares of Common
Stock under the Stock Issuance Program.

          W.   PERMANENT DISABILITY OR PERMANENTLY DISABLED shall mean the
inability of the Optionee or the Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment expected to result in death or to be of continuous duration of twelve
(12) months or more. However, solely for purposes of the Automatic Option Grant
and Director Fee Option Grant Programs, Permanent Disability or Permanently
Disabled shall mean the inability of the non-employee Board member to perform
his or her usual duties as a Board member by reason of any medically
determinable physical or mental impairment expected to result in death or to be
of continuous duration of twelve (12) months or more.

          X.   PLAN shall mean the Corporation's 1999 Stock Incentive Plan, as
set forth in this document.

          Y.   PLAN ADMINISTRATOR shall mean the particular entity, whether the
Primary Committee, the Board or the Secondary Committee, which is authorized to
administer the Discretionary Option Grant, Salary Investment Option Grant and
Stock Issuance Programs with respect to one or more classes of eligible persons,
to the extent such entity is carrying out its administrative functions under
those programs with respect to the persons under its jurisdiction. However, the
Primary Committee shall have the plenary authority to make all factual
determinations and to construe and interpret any and all ambiguities under the
Plan to the extent such authority is not otherwise expressly delegated to any
other Plan Administrator.

          Z.   PLAN EFFECTIVE DATE shall mean September 17, 1999, the date on
which the Plan was adopted by the Board.

          AA.  PRIMARY COMMITTEE shall mean the committee of two (2) or more
non-employee Board members appointed by the Board to administer the
Discretionary Option Grant and Stock Issuance Programs with respect to Section
16 Insiders and to administer the Salary Investment Option Grant Program with
respect to all eligible individuals.

          BB.  SALARY INVESTMENT OPTION GRANT PROGRAM shall mean the salary
investment grant program in effect under the Plan.

                                      A-4
<PAGE>   31
          CC.  SECONDARY COMMITTEE shall mean a committee of one (1) or more
Board members appointed by the Board to administer the Discretionary Option
Grant and Stock Issuance Programs with respect to eligible persons other than
Section 16 Insiders.

          DD.  SECTION 12 REGISTRATION DATE shall mean the date on which the
Common Stock is first registered under Section 12(g) of the 1934 Act.

          EE.  SECTION 16 INSIDER shall mean an officer or director of the
Corporation subject to the short-swing profit liabilities of Section 16 of the
1934 Act.

          FF.  SERVICE shall mean the performance of services for the
Corporation (or any Parent or Subsidiary) by a person in the capacity of an
Employee, a non-employee member of the board of directors or a consultant or
independent advisor, except to the extent otherwise specifically provided in the
documents evidencing the option grant or stock issuance.

          GG.  STOCK EXCHANGE shall mean either the American Stock Exchange or
the New York Stock Exchange.

          HH.  STOCK ISSUANCE PROGRAM shall mean the stock issuance program in
effect under the Plan.

          II.  SUBSIDIARY shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the
Corporation, provided each corporation (other than the last corporation) in the
unbroken chain owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

          JJ.  10% STOCKHOLDER shall mean the owner of stock (as determined
under Code Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

          KK.  UNDERWRITING AGREEMENT shall mean the agreement between the
Corporation and the underwriter or underwriters managing the initial public
offering of the Common Stock.

          LL.  UNDERWRITING DATE shall mean the date on which the Underwriting
Agreement is executed and priced in connection with an initial public offering
of the Common Stock.

          MM.  WITHHOLDING TAXES shall mean the Federal, state and local income
and employment withholding tax liabilities to which the holder of Non-Statutory
Options or unvested shares of Common Stock may become subject in connection with
the exercise of those options or the vesting of those shares.

                                      A-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]