Document:

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SPYGLASS, INC.                                                     EXHIBIT 10.32
Deferred Compensation Plan
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                           EFFECTIVE NOVEMBER 1, 1999

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SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

                                TABLE OF CONTENTS
                                                                            PAGE

PURPOSE...................................................................... 1

ARTICLE 1    DEFINITIONS...................................................... 1

ARTICLE 2    SELECTION, ENROLLMENT, ELIGIBILITY............................... 8

      2.1    SELECTION BY COMMITTEE........................................... 8
      2.2    ENROLLMENT REQUIREMENTS.......................................... 8
      2.3    ELIGIBILITY; COMMENCEMENT OF PARTICIPATION....................... 8
      2.4    TERMINATION OF PARTICIPATION AND/OR DEFERRALS.................... 8

ARTICLE 3    DEFERRAL COMMITMENTS/COMPANY MATCHING/CREDITING/TAXES............ 9

      3.1    MINIMUM DEFERRALS................................................ 9
      3.2    MAXIMUM DEFERRAL................................................. 9
      3.3    ELECTION TO DEFER; EFFECT OF ELECTION FORM.......................10
      3.4    WITHHOLDING OF ANNUAL DEFERRAL AMOUNTS...........................10
      3.5    ANNUAL COMPANY CONTRIBUTION AMOUNT...............................10
      3.6    ANNUAL COMPANY MATCHING AMOUNT...................................10
      3.7    INVESTMENT OF TRUST ASSETS.......................................10
      3.8    VESTING..........................................................11
      3.9    CREDITING/DEBITING OF ACCOUNT BALANCES...........................12
      3.10   FICA AND OTHER TAXES.............................................14
      3.11   DISTRIBUTIONS....................................................14

ARTICLE 4    SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL EMERGENCIES; WITHDRAWAL
             ELECTION.........................................................15

      4.1    SHORT-TERM PAYOUT................................................15
      4.2    OTHER BENEFITS TAKE PRECEDENCE OVER SHORT-TERM...................15
      4.3    WITHDRAWAL PAYOUT/SUSPENSIONS FOR UNFORESEEABLE FINANCIAL
             EMERGENCIES......................................................15
      4.4    WITHDRAWAL ELECTION..............................................15

ARTICLE 5    RETIREMENT BENEFIT...............................................16

      5.1    RETIREMENT BENEFIT...............................................16
      5.2    PAYMENT OF RETIREMENT BENEFIT....................................16
      5.3    DEATH PRIOR TO COMPLETION OF RETIREMENT BENEFIT..................16

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SPYGLASS, INC.
Deferred Compensation Plan
===============================================================================

ARTICLE 6    PRE-RETIREMENT SURVIVOR BENEFIT..................................17

      6.1    PRE-RETIREMENT SURVIVOR BENEFIT..................................17

ARTICLE 7    TERMINATION BENEFIT..............................................17

      7.1    TERMINATION BENEFIT..............................................17
      7.2    PAYMENT OF TERMINATION BENEFIT...................................17

ARTICLE 8    DISABILITY WAIVER AND BENEFIT....................................17

      8.1    DISABILITY WAIVER................................................17
      8.2    CONTINUED ELIGIBILITY; DISABILITY BENEFIT........................18

ARTICLE 9    BENEFICIARY DESIGNATION..........................................18

      9.1    BENEFICIARY......................................................18
      9.2    BENEFICIARY DESIGNATION; CHANGE; SPOUSAL CONSENT.................18
      9.3    ACKNOWLEDGEMENT..................................................19
      9.4    NO BENEFICIARY DESIGNATION.......................................19
      9.5    DOUBT AS TO BENEFICIARY..........................................19
      9.6    DISCHARGE OF OBLIGATIONS.........................................19

ARTICLE 10   LEAVE OF ABSENCE.................................................19

      10.1   PAID LEAVE OF ABSENCE............................................19
      10.2   UNPAID LEAVE OF ABSENCE..........................................19

ARTICLE 11   TERMINATION, AMENDMENT OR MODIFICATION...........................20

      11.1   TERMINATION......................................................20
      11.2   AMENDMENT........................................................20
      11.3   PLAN AGREEMENT...................................................21
      11.4   EFFECT OF PAYMENT................................................21

ARTICLE 12   ADMINISTRATION...................................................21

      12.1   COMMITTEE DUTIES.................................................21
      12.2   ADMINISTRATION UPON CHANGE IN CONTROL............................21
      12.3   AGENTS...........................................................22
      12.4   BINDING EFFECT OF DECISIONS......................................22
      12.5   INDEMNITY OF COMMITTEE...........................................22
      12.6   EMPLOYER INFORMATION.............................................22

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Deferred Compensation Plan
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ARTICLE 13   OTHER BENEFITS AND AGREEMENTS....................................23

      13.1   COORDINATION WITH OTHER BENEFITS.................................23

ARTICLE 14   CLAIMS PROCEDURES................................................23

      14.1   PRESENTATION OF CLAIM............................................23
      14.2   NOTIFICATION OF DECISION.........................................23
      14.3   REVIEW OF A DENIED CLAIM.........................................24
      14.4   DECISION OF REVIEW...............................................24
      14.5   LEGAL ACTION.....................................................24

ARTICLE 15   TRUST............................................................24

      15.1   ESTABLISHMENT OF THE TRUST.......................................24
      15.2   INTERRELATIONSHIP OF THE PLAN AND THE TRUST......................24
      15.3   DISTRIBUTIONS FROM THE TRUST.....................................25

ARTICLE 16   MISCELLANEOUS....................................................25

      16.1   STATUS OF PLAN...................................................25
      16.2   UNSECURED GENERAL CREDITOR.......................................25
      16.3   EMPLOYER'S LIABILITY.............................................25
      16.4   NONASSIGNABILITY.................................................25
      16.5   NOT A CONTRACT OF EMPLOYMENT.....................................25
      16.6   FURNISHING INFORMATION...........................................26
      16.7   TERMS............................................................26
      16.8   CAPTIONS.........................................................26
      16.9   GOVERNING LAW....................................................26
      16.10  NOTICE...........................................................26
      16.11  SUCCESSORS.......................................................27
      16.12  VALIDITY.........................................................27
      16.13  INCOMPETENT......................................................27
      16.14  COURT ORDER......................................................27
      16.15  DISTRIBUTION IN THE EVENT OF TAXATION............................27
      16.16  INSURANCE........................................................28
      16.17  LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL.............28

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SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

                                 Spyglass, Inc.

                           DEFERRED COMPENSATION PLAN

                           Effective November 1, 1999

                                     PURPOSE

      The purpose of this Plan is to provide specified benefits to a select
group of management and highly compensated Employees who contribute materially
to the continued growth, development and future business success of Spyglass,
Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor this
Plan. This Plan shall be unfunded for tax purposes and for purposes of Title I
of ERISA.

                                    ARTICLE 1
                                   DEFINITIONS

      For purposes of this Plan, unless otherwise clearly apparent from the
context, the following phrases or terms shall have the following indicated
meanings:

1.1   "Account Balance" shall mean, with respect to a Participant, a credit on
      the records of the Employer equal to the sum of (i) the Deferral Account
      balance, (ii) the Company Contribution Account balance and (iii) the
      Company Matching Account balance. The Account Balance, and each other
      specified account balance, shall be a bookkeeping entry only and shall be
      utilized solely as a device for the measurement and determination of the
      amounts to be paid to a Participant, or his or her designated Beneficiary,
      pursuant to this Plan.

1.2   "Bonus" shall mean any cash compensation, in addition to Annual Salary
      relating to services performed during any calendar year, whether or not
      paid in such calendar year or included on the Federal Income Tax Form W-2
      for such calendar year, payable to a Participant as an Employee under any
      Employer's bonus, and cash incentive plans, excluding stock options and
      Commissions.

1.3   "Commissions" shall mean, cash compensation in addition to Annual Salary
      and Bonus for the Participant's services related to sales production.

1.4   "Company Contribution Amount" shall mean, for any one Plan Year, the
      amount determined in accordance with Section 3.5.

1.5   "Company Matching Amount" for any one Plan Year shall be the amount
      determined in accordance with Section 3.6.

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Deferred Compensation Plan
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1.6   "Annual Deferral Amount" shall mean that portion of a Participant's Annual
      Salary, and Bonus that a Participant elects to have, and is deferred, in
      accordance with Article 3, for any one Plan Year. In the event of a
      Participant's Retirement, Disability (if deferrals cease in accordance
      with Section 8.1), death or a Termination of Employment prior to the end
      of a Plan Year, such year's Annual Deferral Amount shall be the actual
      amount withheld prior to such event.

1.7   "Annual Installment Method" shall mean annual installments over the number
      of years selected by the Participant or Committee in accordance with this
      Plan, calculated as follows: The Account Balance of the Participant shall
      be calculated as of the close of business on the last business day of the
      year; provided, however, that for the Plan Year in which the Participant
      Retires, the Account Balance of the Participant shall be calculated as of
      the Retirement date. The annual installment shall be calculated by
      multiplying this balance by a fraction, the numerator of which is one, and
      the denominator of which is the remaining number of annual installments
      due the Participant. By way of example, if the Participant elects a 10
      year Annual Installment Method, the first annual installment shall be 1/10
      of the Account Balance, calculated as described in this definition. The
      following year, the annual installment shall be 1/9 of the Account
      Balance, calculated as described in this definition. Each annual
      installment shall be divided by four and distributed to the Participant in
      four equal payments, one payment to be made each calendar quarter of the
      Plan Year, on or as soon as practicable after the first business day of
      each calendar quarter of the Plan Year; provided, however, that for the
      Plan Year in which the Participant Retires, the annual installment shall
      be divided by the sum of one plus the number of remaining full calendar
      quarter(s) in such Plan Year. By way of example, if the annual installment
      a Plan Year totals $100,000, $25,000 shall be paid to the Participant on
      or as soon as practicable after January 1, April 1, July 1 and October 1.

1.8   "Annual Salary" shall mean the annual cash compensation relating to
      services performed during any calendar year, whether or not paid in such
      calendar year or included on the Federal Income Tax Form W-2 for such
      calendar year, excluding bonuses, commissions, royalties, overtime, fringe
      benefits, relocation expenses, incentive payments, non-monetary awards,
      directors fees and other fees, automobile and other allowances paid to a
      Participant for employment services rendered (whether or not such
      allowances are included in the Employee's gross income). Annual Salary
      shall be calculated before reduction for compensation voluntarily deferred
      or contributed by the Participant pursuant to all qualified or
      non-qualified plans of any Employer and shall be calculated to include
      amounts not otherwise included in the Participant's gross income under
      Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans
      established by any Employer; provided, however, that all such amounts will
      be included in compensation only to the extent that, had there been no
      such plan, the amount would have been payable in cash to the Employee.

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Deferred Compensation Plan
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1.9   "Beneficiary" shall mean one or more persons, trusts, estates or other
      entities, designated in accordance with Article 9, that are entitled to
      receive benefits under this Plan upon the death of a Participant.

1.10  "Beneficiary Designation Form" shall mean the form established from time
      to time by the Committee that a Participant completes, signs and returns
      to the Committee to designate one or more Beneficiaries.

1.11  "Board" shall mean the board of directors of the Company.

1.12  "Change in Control" shall mean the first to occur of any of the following
      events:

      (a)    The acquisition by any individual, entity or group (within the
             meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
             Act of 1934, as amended (the "Exchange Act")) (a "Person") of
             beneficial ownership (within the meaning of Rule 13d-3 promulgated
             under the Exchange Act) of twenty percent (20%) or more of either
             (i) the then-outstanding shares of common stock of the Company (the
             "Outstanding Company Common Stock") or (ii) the combined voting
             power of the then-outstanding voting securities of the Company
             entitled to vote generally in the election of directors (the
             "Outstanding Company Voting Securities"); provided, however, that
             for purposes of this Section 1.12, the following acquisitions shall
             not constitute a Change of Control: (i) any acquisition directly
             from the Company other than in connection with the acquisition by
             the Company or its affiliates of a business, (ii) any acquisition
             by the Company, (iii) any acquisition by any employee benefit plan
             (or related trust) sponsored or maintained by the Company or any
             corporation controlled by the Company, (iv) any acquisition by a
             lender to the Company pursuant to a debt restructuring of the
             Company, or (v) any acquisition by any corporation pursuant to a
             transaction which complies with clauses (i), (ii) and (iii) of
             Subsection (c) of this Section 1.12;

      (b)    Individuals who, as of the date hereof, constitute the Board (the
             "Incumbent Board") cease for any reason to constitute at least a
             majority of the Board; provided, however, that any individual
             becoming a director subsequent to the date hereof whose election,
             or nomination for election by the Company's shareholders, was
             approved by a vote of at least a majority of the directors then
             comprising the Incumbent Board shall be considered as though such
             individual were a member of the Incumbent Board, but excluding, for
             this purpose, any such individual whose initial assumption of
             office occurs as a result of an actual or threatened election
             contest with respect to the election or removal of directors or
             other actual or threatened solicitation of proxies or consents by
             or on behalf of a Person other than the Board;

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Deferred Compensation Plan
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      (c)    Consummation of a reorganization, merger or consolidation of the
             Company or any direct or indirect subsidiary of the Company or sale
             or other disposition of all or substantially all of the assets of
             the Company (a "Business Combination"), in each case, unless,
             following such Business Combination, (i) all or substantially all
             of the individuals and entities who were the beneficial owners,
             respectively, of the Outstanding Company Common Stock and
             Outstanding Company Voting Securities immediately prior to such
             Business Combination beneficially own, directly or indirectly, more
             than sixty percent (60%) of, respectively, the then-outstanding
             shares of common stock and the combined voting power of the then
             outstanding voting securities entitled to vote generally in the
             election of directors, as the case may be, of the corporation
             resulting from such Business Combination (which shall include for
             these purposes, without limitation, a corporation which as a result
             of such transaction owns the Company or all or substantially all of
             the Company's assets either directly or through one or more
             subsidiaries) in substantially the same proportions as their
             ownership, immediately prior to such Business Combination of the
             Outstanding Company Common Stock and Outstanding Company Voting
             Securities, as the case may be, (ii) no Person (excluding any
             corporation resulting from such Business Combination or any
             employee benefit plan (or related trust) of the Company or such
             corporation resulting from such Business Combination and any Person
             beneficially owning, immediately prior to such Business
             Combination, directly or indirectly, 20% or more of the Outstanding
             Common Stock or Outstanding Voting Securities, as the case may be)
             beneficially owns, directly or indirectly, twenty percent (20%) or
             more of, respectively, the then outstanding shares of common stock
             of the corporation resulting from such Business Combination, or the
             combined voting power of the then outstanding voting securities of
             such corporation entitled to vote generally in the election of
             directors and (iii) at least a majority of the members of the Board
             resulting from such Business Combination were members of the
             Incumbent Board at the time of the execution of the initial
             agreement, or of the action of the Board, providing for such
             Business Combination; or

      (d)    Approval by the shareholders of the Company of a complete
             liquidation or dissolution of the Company other than to a
             corporation which would satisfy the requirements of clauses (i),
             (ii) and (iii) of Subsection (c) of this Section 1.12, assuming for
             this purpose that such liquidation or dissolution was a Business
             Combination.

1.13  "Claimant" shall have the meaning set forth in Section 14.1.

1.14  "Code" shall mean the Internal Revenue Code of 1986, as it may be amended
      from time to time.

1.15  "Committee" shall mean the committee described in Article 12.

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SPYGLASS, INC.
Deferred Compensation Plan
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1.16  "Company" shall mean Spyglass, Inc., a Delaware corporation, and any
      successor to all or substantially all of the Company's assets or business.

1.17  "Company Contribution Account" shall mean (i) the sum of the Participant's
      Company Contribution Amounts, plus (ii) amounts credited in accordance
      with all the applicable crediting provisions of this Plan that relate to
      the Participant's Company Contribution Account, less (iii) all
      distributions made to the Participant or his or her Beneficiary pursuant
      to this Plan that relate to the Participant's Company Contribution
      Account.

1.18  "Company Matching Account" shall mean (i) the sum of all of a
      Participant's Company Matching Amounts, plus (ii) amounts credited in
      accordance with all the applicable crediting provisions of this Plan that
      relate to the Participant's Company Matching Account, less (iii) all
      distributions made to the Participant or his or her Beneficiary pursuant
      to this Plan that relate to the Participant's Company Matching Account.

1.19  "Deduction Limitation" shall mean the following described limitation on a
      benefit that may otherwise be distributable pursuant to the provisions of
      this Plan. Except as otherwise provided, this limitation shall be applied
      to all distributions that are "subject to the Deduction Limitation" under
      this Plan. If an Employer determines in good faith prior to a Change in
      Control that there is a reasonable likelihood that any compensation paid
      to a Participant for a taxable year of the Employer would not be
      deductible by the Employer solely by reason of the limitation under Code
      Section 162(m), then to the extent deemed necessary by the Employer to
      ensure that the entire amount of any distribution to the Participant
      pursuant to this Plan prior to the Change in Control is deductible, the
      Employer may defer all or any portion of a distribution under this Plan.
      Any amounts deferred pursuant to this limitation shall continue to be
      credited/debited with additional amounts in accordance with Section 3.9
      below, even if such amount is being paid out in installments. The amounts
      so deferred and amounts credited thereon shall be distributed to the
      Participant or his or her Beneficiary (in the event of the Participant's
      death) at the earliest possible date, as determined by the Employer in
      good faith, on which the deductibility of compensation paid or payable to
      the Participant for the taxable year of the Employer during which the
      distribution is made will not be limited by Section 162(m), or if earlier,
      the effective date of a Change in Control. Notwithstanding anything to the
      contrary in this Plan, the Deduction Limitation shall not apply to any
      distributions made after a Change in Control.

1.20  "Deferral Account" shall mean (i) the sum of all of a Participant's Annual
      Deferral Amounts, plus (ii) amounts credited in accordance with all the
      applicable crediting provisions of this Plan that relate to the
      Participant's Deferral Account, less (iii) all distributions made to the
      Participant or his or her Beneficiary pursuant to this Plan that relate to
      his or her Deferral Account.

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Deferred Compensation Plan
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1.21  "Disability" shall mean a period of disability during which a Participant
      qualifies for permanent disability benefits under the Participant's
      Employer's long-term disability plan, or, if a Participant does not
      participate in such a plan, a period of disability during which the
      Participant would have qualified for permanent disability benefits under
      such a plan had the Participant been a participant in such a plan, as
      determined in the sole discretion of the Committee. If the Participant's
      Employer does not sponsor such a plan, or discontinues to sponsor such a
      plan, Disability shall be determined by the Committee in its sole
      discretion.

1.22  "Disability Benefit" shall mean the benefit set forth in Article 8.

1.23  "Election Form" shall mean the form established from time to time by the
      Committee that a Participant completes, signs and returns to the Committee
      to make an election under the Plan.

1.24  "Employee" shall mean a person who is an employee of any Employer.

1.25  "Employer(s)" shall mean the Company and/or any of its subsidiaries (now
      in existence or hereafter formed or acquired) that have been selected by
      the Board to participate in the Plan and have adopted the Plan as a
      sponsor.

1.26  "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
      it may be amended from time to time.

1.27  "First Plan Year" shall mean the period beginning November 1, 1999 and
      ending December 31, 1999.

1.28  "Participant" shall mean any Employee (i) who is selected to participate
      in the Plan, (ii) who elects to participate in the Plan, (iii) who signs a
      Plan Agreement, an Election Form and a Beneficiary Designation Form, (iv)
      whose signed Plan Agreement, Election Form and Beneficiary Designation
      Form are accepted by the Committee, (v) who commences participation in the
      Plan, and (vi) whose Plan Agreement has not terminated. A spouse or former
      spouse of a Participant shall not be treated as a Participant in the Plan
      or have an account balance under the Plan, even if he or she has an
      interest in the Participant's benefits under the Plan as a result of
      applicable law or property settlements resulting from legal separation or
      divorce.

1.29  "Plan" shall mean Spyglass, Inc. Deferred Compensation Plan, which shall
      be evidenced by this instrument and by each Plan Agreement, as they may be
      amended from time to time.

1.30  "Plan Agreement" shall mean a written agreement, as may be amended from
      time to time, which is entered into by and between an Employer and a
      Participant. Each Plan Agreement executed by a Participant and the
      Participant's Employer shall provide for the entire benefit

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      to which such Participant is entitled under the Plan; should there be more
      than one Plan Agreement, the Plan Agreement bearing the latest date of
      acceptance by the Employer shall supersede all previous Plan Agreements in
      their entirety and shall govern such entitlement. The terms of any Plan
      Agreement may be different for any Participant, and any Plan Agreement may
      provide additional benefits not set forth in the Plan or limit the
      benefits otherwise provided under the Plan; provided, however, that any
      such additional benefits or benefit limitations must be agreed to by both
      the Employer and the Participant.

1.31  "Plan Year" shall, except for the First Plan Year, mean a period beginning
      on January 1 of each calendar year and continuing through December 31 of
      such calendar year.

1.32  "Pre-Retirement Survivor Benefit" shall mean the benefit set forth in
      Article 6.

1.33  "Retirement", "Retire(s)" or "Retired" shall mean, with respect to an
      Employee, voluntary severance from employment from all Employers for any
      reason other than a leave of absence, death or Disability on or after the
      attainment of (a) age sixty-five (65) or (b) age fifty-five (55) with
      three (3) Years of Service.

1.34  "Retirement Benefit" shall mean the benefit set forth in Article 5.

1.35  "Short-Term Payout" shall mean the payout set forth in Section 4.1.

1.36  "Termination Benefit" shall mean the benefit set forth in Article 7.

1.37  "Termination of Employment" shall mean the severing of employment with all
      Employers, voluntarily or involuntarily, for any reason other than
      Retirement, Disability, death or an authorized leave of absence.

1.38  "Trust" shall mean one or more trusts established, effective as of
      November 1, 1999 between the Company and the trustee named therein, as
      amended from time to time.

1.39  "Unforeseeable Financial Emergency" shall mean an unanticipated emergency
      that is caused by an event beyond the control of the Participant that
      would result in severe financial hardship to the Participant resulting
      from (i) a sudden and unexpected illness or accident of the Participant or
      a dependent of the Participant, (ii) a loss of the Participant's property
      due to casualty, or (iii) such other extraordinary and unforeseeable
      circumstances arising as a result of events beyond the control of the
      Participant, all as determined in the sole discretion of the Committee.

1.40  "Years of Plan Participation" shall mean the total number of full Plan
      Years a Participant has been a Participant in the Plan prior to his or her
      Termination of Employment (determined without regard to whether deferral
      elections have been made by the Participant for any Plan Year). Any
      partial year shall not be counted. Notwithstanding the previous

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      sentence, a Participant's first Plan Year of participation shall be
      treated as a full Plan Year for purposes of this definition, even if it is
      only a partial Plan Year of participation.

1.41  "Years of Service" shall mean the total number of full years in which a
      Participant has been employed by one or more Employers. For purposes of
      this definition, a year of employment shall be a 365 day period (or 366
      day period in the case of a leap year) that, for the first year of
      employment, commences on the Employee's date of hiring and that, for any
      subsequent year, commences on an anniversary of that hiring date. Any
      partial year of employment shall not be counted.

                                    ARTICLE 2
                       SELECTION, ENROLLMENT, ELIGIBILITY

2.1   SELECTION BY COMMITTEE. Participation in the Plan shall be limited to a
      select group of management and highly compensated Employees of the
      Employers, as determined by the Committee in its sole discretion. From
      that group, the Committee shall select, in its sole discretion, Employees
      to participate in the Plan.

2.2   ENROLLMENT REQUIREMENTS. As a condition to participation, each selected
      Employee shall complete, execute and return to the Committee a Plan
      Agreement, an Election Form and a Beneficiary Designation Form, all within
      30 days after he or she is selected to participate in the Plan. In
      addition, the Committee shall establish from time to time such other
      enrollment requirements as it determines in its sole discretion are
      necessary.

2.3   ELIGIBILITY; COMMENCEMENT OF PARTICIPATION. Provided an Employee selected
      to participate in the Plan has met all enrollment requirements set forth
      in this Plan and required by the Committee, including returning all
      required documents to the Committee within the specified time period, that
      Employee shall commence participation in the Plan on the first day of the
      month following the month in which the Employee completes all enrollment
      requirements. If an Employee fails to meet all such requirements within
      the period required, in accordance with Section 2.2, that Employee shall
      not be eligible to participate in the Plan until the first day of the Plan
      Year following the delivery to and acceptance by the Committee of the
      required documents.

2.4   TERMINATION OF PARTICIPATION AND/OR DEFERRALS. If the Committee determines
      in good faith that a Participant no longer qualifies as a member of a
      select group of management or highly compensated employees, as membership
      in such group is determined in accordance with Sections 201(2), 301(a)(3)
      and 401(a)(1) of ERISA, the Committee shall have the right, in its sole
      discretion, to (i) terminate any deferral election the Participant has
      made for the remainder of the Plan Year in which the Participant's
      membership status changes, (ii) prevent the Participant from making future
      deferral elections and/or (iii) immediately distribute the Participant's
      then Account Balance as a Termination Benefit and terminate the
      Participant's participation in the Plan.

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Deferred Compensation Plan
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                                    ARTICLE 3
              DEFERRAL COMMITMENTS/COMPANY MATCHING/CREDITING/TAXES

3.1   MINIMUM DEFERRALS.

      (a)    ANNUAL SALARY, BONUS AND COMMISSIONS. For each Plan Year, a
             Participant may elect to defer, as his or her Annual Deferral
             Amount, Annual Salary, Bonus and/or Commissions in the following
             combined minimum amount.

                ---------------------------------------------------------
                         DEFERRAL                 MINIMUM AMOUNT
                ---------------------------------------------------------
                   Annual Salary                        $0
                ---------------------------------------------------------
                   Bonus, Commissions                   $0
                ---------------------------------------------------------
                   Annual Salary plus                   $2,500
                   Bonus,
                   Commissions
                ---------------------------------------------------------

             If an election is made for less than stated minimum amount, or if
             no election is made, the amount deferred shall be zero.

      (b)    SHORT PLAN YEAR. Notwithstanding the foregoing, if a Participant
             first becomes a Participant after the first day of a Plan Year, or
             in the case of the first Plan Year of the Plan itself, the minimum
             Annual Salary deferral shall be an amount equal to the minimum set
             forth above, multiplied by a fraction, the numerator of which is
             the number of complete months remaining in the Plan Year and the
             denominator of which is 12.

3.2   MAXIMUM DEFERRAL.

      (a)    ANNUAL SALARY, BONUS AND COMMISSIONS. For each Plan Year, a
             Participant may elect to defer, as his or her Annual Deferral
             Amount, Annual Salary, Bonus and/or Commissions up to the following
             maximum percentages for each deferral elected:

                ----------------------------------------------------------
                             DEFERRAL                 MAXIMUM AMOUNT
                ----------------------------------------------------------
                ----------------------------------------------------------
                       Annual Salary                         75%
                ----------------------------------------------------------
                ----------------------------------------------------------
                       Bonus, Commissions                   100%
                ----------------------------------------------------------

      (b)    Notwithstanding the foregoing, if a Participant first becomes a
             Participant after the first day of a Plan Year, or in the case of
             the first Plan Year of the Plan itself, the maximum Annual Deferral
             Amount, with respect to Annual Salary, and Bonus shall be limited
             to the amount of compensation not yet earned by the Participant as
             of the date the Participant submits a Plan Agreement and Election
             Form to the Committee for acceptance.

                                       -9-

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3.3   ELECTION TO DEFER; EFFECT OF ELECTION FORM.

      (a)    FIRST PLAN YEAR. In connection with a Participant's commencement of
             participation in the Plan, the Participant shall make an
             irrevocable deferral election for the Plan Year in which the
             Participant commences participation in the Plan, along with such
             other elections as the Committee deems necessary or desirable under
             the Plan. For these elections to be valid, the Election Form must
             be completed and signed by the Participant, timely delivered to the
             Committee (in accordance with Section 2.2 above) and accepted by
             the Committee.

      (b)    SUBSEQUENT PLAN YEARS. For each succeeding Plan Year, an
             irrevocable deferral election for that Plan Year, and such other
             elections as the Committee deems necessary or desirable under the
             Plan, shall be made by timely delivering to the Committee, in
             accordance with its rules and procedures, before the end of the
             Plan Year preceding the Plan Year for which the election is made, a
             new Election Form. If no such Election Form is timely delivered for
             a Plan Year, the Annual Deferral Amount shall be zero for that Plan
             Year.

3.4   WITHHOLDING OF ANNUAL DEFERRAL AMOUNTS. For each Plan Year, the Annual
      Salary portion of the Annual Deferral Amount shall be withheld from each
      regularly scheduled Annual Salary payroll in equal amounts, as adjusted
      from time to time for increases and decreases in Annual Salary. The Bonus
      portion of the Annual Deferral Amount shall be withheld at the time the
      Bonus is or otherwise would be paid to the Participant, whether or not
      this occurs during the Plan Year itself.

3.5   COMPANY CONTRIBUTION AMOUNT. For each Plan Year, an Employer, in its sole
      discretion, may, but is not required to, credit any amount it desires to
      any Participant's Company Contribution Account under this Plan, which
      amount shall be for that Participant the Company Contribution Amount for
      that Plan Year. The amount so credited to a Participant may be smaller or
      larger than the amount credited to any other Participant, and the amount
      credited to any Participant for a Plan Year may be zero, even though one
      or more other Participants receive an Company Contribution Amount for that
      Plan Year. If a Participant is not employed by an Employer as of the last
      day of a Plan Year other than by reason of his or her Retirement or death
      while employed, the Company Contribution Amount for that Plan Year shall
      be zero.

3.6   COMPANY MATCHING AMOUNT. A Participant's Company Matching Amount for any
      Plan Year shall be equal to 50% of the Participant's Annual Deferral
      Amount for such Plan Year; provided, however, the Company Matching Amount
      for a Participant for any Plan Year shall not exceed $10,000.

3.7   INVESTMENT OF TRUST ASSETS. The Trustee of the Trust shall be authorized,
      upon written instructions received from the Committee or investment
      manager appointed by the

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      Committee, to invest and reinvest the assets of the Trust in accordance
      with the applicable Trust Agreement.

3.8   VESTING.

      (a)    A Participant shall at all times be 100% vested in his or her
             Deferral Account.

      (b)    A Participant shall be vested in his or her Company Contribution
             Account in accordance with the schedule set forth in his or her
             Plan Agreement, if any, which may be different from the schedule
             contained in any other Participant's Plan Agreement.

      (c)    A Participant shall be vested in his or her Company Matching
             Account as follows: (i) with respect to all benefits under this
             Plan other than the Termination Benefit, a Participant's vested
             Company Matching Account shall equal 100% of such Participant's
             Company Matching Account; and (ii) with respect to the Termination
             Benefit, a Participant's Company Matching Account shall vest on the
             basis of the Participant's Years of Plan Participation at the time
             the Participant experiences a Termination of Employment, in
             accordance with the following schedule:

             ------------------------------------------------------------------
                YEARS OF PLAN PARTICIPATION AT
               DATE OF TERMINATION OF EMPLOYMENT      VESTED PERCENTAGE OF
                                                    COMPANY MATCHING ACCOUNT
             ------------------------------------------------------------------
             ------------------------------------------------------------------
                       Less than 1 year                          0%
             ------------------------------------------------------------------
             ------------------------------------------------------------------
               1 year or more, but less than 2                  25%
             ------------------------------------------------------------------
             ------------------------------------------------------------------
               2 years or more, but less than 3                 50%
             ------------------------------------------------------------------
             ------------------------------------------------------------------
               3 years or more, but less than 4                 75%
             ------------------------------------------------------------------
             ------------------------------------------------------------------
                        4 years or more                        100%
             ------------------------------------------------------------------

      (d)    Notwithstanding anything to the contrary contained in this Section
             3.8, a Participant's Company Contribution Account and Company
             Matching Account shall immediately become 100% vested (if it is not
             already vested in accordance with the above vesting schedules) in
             the event of the following with respect to a Participant:
             Retirement; Disability; death; or a Change in Control.

      (e)    Notwithstanding subsection (d), the vesting schedule for a
             Participant's Company Contribution Account and Company Matching
             Account shall not be accelerated to the extent that the Committee
             determines that such acceleration would cause the deduction
             limitations of Section 280G of the Code to become effective. In the
             event that all of a Participant's Company Contribution Account
             and/or Company Matching Account is not vested pursuant to such a
             determination, the Participant may request independent verification
             of the Committee's calculations with respect

                                      -11-

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             to the application of Section 280G. In such case, the Committee
             must provide to the Participant within 15 business days of such a
             request an opinion from a nationally recognized accounting firm
             selected by the Participant (the "Accounting Firm"). The opinion
             shall state the Accounting Firm's opinion that any limitation in
             the vested percentage hereunder is necessary to avoid the limits of
             Section 280G and contain supporting calculations. The cost of such
             opinion shall be paid for by the Company.

3.9   CREDITING/DEBITING OF ACCOUNT BALANCES. In accordance with, and subject
      to, the rules and procedures that are established from time to time by the
      Committee, in its sole discretion, amounts shall be credited or debited to
      a Participant's Account Balance in accordance with the following rules:

      (a)    ELECTION OF MEASUREMENT FUNDS. A Participant, in connection with
             his or her initial deferral election in accordance with Section
             3.3(a) above, shall elect, on the Election Form, one or more
             Measurement Fund(s) (as described in Section 3.9(c) below) to be
             used to determine the additional amounts to be credited to his or
             her Account Balance for the first business day on which the
             Participant commences participation in the Plan and continuing
             thereafter for each subsequent business day in which the
             Participant participates in the Plan, unless changed in accordance
             with the next sentence. Commencing with the business day that
             follows the Participant's commencement of participation in the Plan
             and continuing thereafter for each subsequent business day in which
             the Participant participates in the Plan, the Participant may (but
             is not required to) elect, by submitting an Election Form to the
             Committee that is accepted by the Committee, to reallocate among
             the available Measurement Fund(s) to be used to determine the
             additional amounts to be credited to his or her Account Balance, or
             to change the portion of his or her Account Balance allocated to
             each previously or newly elected Measurement Fund. If an election
             is made in accordance with the previous sentence, it shall apply to
             the next business day and continue thereafter for each subsequent
             business day in which the Participant participates in the Plan,
             unless changed in accordance with the previous sentence.

      (b)    PROPORTIONATE ALLOCATION. In making any election described in
             Section 3.9(a) above, the Participant shall specify on the Election
             Form, in increments of one percentage points (1%), the percentage
             of his or her Account Balance to be allocated to a Measurement Fund
             (as if the Participant was making an investment in that Measurement
             Fund with that portion of his or her Account Balance).

      (c)    MEASUREMENT FUNDS. The Participant may elect one or more of the
             following Measurement Funds, based on certain mutual funds (the
             "Measurement Funds"), for the purpose of crediting additional
             amounts to his or her Account Balance:

                                      -12-

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             (1)  Vanguard Growth Index Fund;

             (2)  Vanguard Wellington Fund;

             (3)  Vanguard Explorer Fund;

             (4)  Vanguard Money Market Prime Fund;

             (5)  Vanguard STAR Fund;

             (6)  Vanguard Windsor II Fund;

             (7)  Vanguard International Growth Fund; and

             (8)  Vanguard Total Bond Market Index Fund;

             As necessary, the Committee may, in its sole discretion,
             discontinue, substitute or add a Measurement Fund.

      (d)    CREDITING OR DEBITING METHOD. The performance of each elected
             Measurement Fund (either positive or negative) will be determined
             by the Committee, in its reasonable discretion, based on the
             performance of the Measurement Funds themselves. A Participant's
             Account balance shall be credited or debited on a daily basis based
             on the performance of each Measurement Fund selected by the
             Participant for the Account Balance, as determined by the Committee
             in its sole discretion, as though a Participant's Account Balance
             were invested in the selected or required Measurement Fund(s), in
             the percentages applicable to such business day, as of the close of
             business on the business day, at the closing price on such date;
             (iv) the portion of the Annual Deferral Amount that was actually
             deferred as of the business day were invested in the Measurement
             Fund(s) selected by the Participant, in the percentages applicable
             to such business day, no later than the close of business on the
             third business day after the day on which such amounts are actually
             deferred from the Participant's Annual Salary, Bonus or Commissions
             through reductions in his or her payroll, at the closing price on
             such date; and (v) any distribution made to a Participant that
             decreases such Participant's Account Balance ceased being invested
             in the Measurement Fund(s), in the percentages applicable to such
             business day, no earlier than three business days prior to the
             distribution, at the closing price on such date. The Participant's
             Company Matching Amount shall be credited to his or her Company
             Matching Account for purposes of this Section 3.9(d) as of the
             close of business on the first business day in February of the Plan
             Year following the Plan Year to which it relates. The Participant's
             Company Contribution Amount, if any, shall be credited to his or
             her Company

                                      -13-

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             Contribution Account on the date selected by the Committee, in its
             sole and absolute discretion.

      (e)    NO ACTUAL INVESTMENT. Notwithstanding any other provision of this
             Plan that may be interpreted to the contrary, the Measurement Funds
             are to be used for measurement purposes only, and a Participant's
             election of any such Measurement Fund, the allocation to his or her
             Account Balance thereto, the calculation of additional amounts and
             the crediting or debiting of such amounts to a Participant's
             Account Balance shall not be considered or construed in any manner
             as an actual investment of his or her Account Balance --- in any
             such Measurement Fund. In the event that the Company or the Trustee
             (as that term is defined in the Trust), in its own discretion,
             decides to invest funds in any or all of the Measurement Funds, no
             Participant shall have any rights in or to such investments
             themselves. Without limiting the foregoing, a Participant's Account
             Balance shall at all times be a bookkeeping entry only and shall
             not represent any investment made on his or her behalf by the
             Company or the Trust; the Participant shall at all times remain an
             unsecured creditor of the Company.

3.10  FICA AND OTHER TAXES.

      (a)    ANNUAL DEFERRAL AMOUNTS. For each Plan Year in which an Annual
             Deferral Amount is being withheld from a Participant, the
             Participant's Employer(s) shall withhold from that portion of the
             Participant's Annual Salary, Bonus and Commission that is not being
             deferred, in a manner determined by the Employer(s), the
             Participant's share of FICA and other employment taxes on such
             Annual Deferral Amount. If necessary, the Committee may reduce the
             Deferral Account in order to comply with this Section 3.10.

      (b)    COMPANY MATCHING ACCOUNT AND COMPANY CONTRIBUTION ACCOUNT. When a
             Participant becomes vested in a portion of his or her Company
             Matching Account or Company Contribution Account, or both, the
             Participant's Employer(s) shall withhold from the Participant's
             Annual Salary, Bonus and Commission that is not deferred, in a
             manner determined by the Employer(s), the Participant's share of
             FICA and other employment taxes on such vested portions of his or
             her Company Matching Account and/or Company Contribution Account.
             If necessary, the Committee may reduce the vested portion of the
             Participant's Company Matching Account or Company Contribution
             Account, or both, as the case may be, in order to comply with this
             Section 3.10.

3.11  DISTRIBUTIONS. The Participant's Employer(s), or the trustee of the Trust,
      shall withhold from any distributions made to a Participant under this
      Plan all federal, state and local income, employment and other taxes
      required to be withheld by the Employer(s), or the

                                      -14-

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      trustee of the Trust, in connection with such distributions, in amounts
      and in a manner to be determined in the sole discretion of the Employer(s)
      and the trustee of the Trust.

                                    ARTICLE 4
             SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL EMERGENCIES;
                               WITHDRAWAL ELECTION

4.1   SHORT-TERM PAYOUT. In connection with each election to defer an Annual
      Deferral Amount, a Participant may irrevocably elect to receive a future
      "Short-Term Payout" from the Plan with respect to such Annual Deferral
      Amount. Subject to the Deduction Limitation, the Short-Term Payout shall
      be a lump sum payment in an amount that is equal to the Annual Deferral
      Amount plus amounts credited or debited in the manner provided in Section
      3.9 above on that amount, determined at the time that the Short-Term
      Payout becomes payable (rather than the date of a Termination of
      Employment). Subject to the Deduction Limitation and the other terms and
      conditions of this Plan, each Short-Term Payout elected shall be paid out
      during a 60 day period commencing immediately after the last day of any
      Plan Year designated by the Participant that is at least three Plan Years
      after the Plan Year in which the Annual Deferral Amount is actually
      deferred. By way of example, if a three year Short-Term Payout is elected
      for Annual Deferral Amounts that are deferred in the Plan Year commencing
      January 1, 2000, the three year Short-Term Payout would become payable
      during a 60 day period commencing January 1, 2004.

4.2   OTHER BENEFITS TAKE PRECEDENCE OVER SHORT-TERM. Should an event occur that
      triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral Amount,
      plus amounts credited or debited thereon, that is subject to a Short-Term
      Payout election under Section 4.1 shall not be paid in accordance with
      Section 4.1 but shall be paid in accordance with the other applicable
      Article.

4.3   WITHDRAWAL PAYOUT/SUSPENSIONS FOR UNFORESEEABLE FINANCIAL EMERGENCIES. If
      the Participant experiences an Unforeseeable Financial Emergency, the
      Participant may petition the Committee to (i) suspend any deferrals
      required to be made by a Participant and/or (ii) receive a partial or full
      payout from the Plan. The payout shall not exceed the lesser of the
      Participant's Account Balance, calculated as if such Participant were
      receiving a Termination Benefit, or the amount reasonably needed to
      satisfy the Unforeseeable Financial Emergency. If, subject to the sole
      discretion of the Committee, the petition for a suspension and/or payout
      is approved, suspension shall take effect upon the date of approval and
      any payout shall be made within 60 days of the date of approval. The
      payment of any amount under this Section 4.3 shall not be subject to the
      Deduction Limitation.

4.4   WITHDRAWAL ELECTION. A Participant (or, after a Participant's death, his
      or her Beneficiary) may elect, at any time, to withdraw all of his or her
      Account Balance, calculated as if there had occurred a Termination of
      Employment as of the day of the election, less a withdrawal

                                      -15-

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================================================================================

      penalty equal to 10% of such amount (the net amount shall be referred to
      as the "Withdrawal Amount"). This election can be made at any time, before
      or after Retirement, Disability, death or Termination of Employment, and
      whether or not the Participant (or Beneficiary) is in the process of being
      paid pursuant to an installment payment schedule. If made before
      Retirement, Disability or death, a Participant's Withdrawal Amount shall
      be his or her Account Balance calculated as if there had occurred a
      Termination of Employment as of the day of the election. No partial
      withdrawals of the Withdrawal Amount shall be allowed. The Participant (or
      his or her Beneficiary) shall make this election by giving the Committee
      advance written notice of the election in a form determined from time to
      time by the Committee. The Participant (or his or her Beneficiary) shall
      be paid the Withdrawal Amount within 60 days of his or her election. Once
      the Withdrawal Amount is paid, the Participant's participation in the Plan
      shall terminate and the Participant shall not be eligible to participate
      in the Plan during the remainder of the current Plan Year and for the next
      two Plan Years. The payment of this Withdrawal Amount shall not be subject
      to the Deduction Limitation.

                                    ARTICLE 5
                               RETIREMENT BENEFIT

5.1   RETIREMENT BENEFIT. Subject to the Deduction Limitation, a Participant who
      Retires shall receive, as a Retirement Benefit, his or her vested Account
      Balance.

5.2   PAYMENT OF RETIREMENT BENEFIT. A Participant, in connection with his or
      her commencement of participation in the Plan, shall elect on an Election
      Form to receive the Retirement Benefit pursuant to a lump sum or a
      Quarterly Installment Method paid over 5, 10 or 15 years. The Participant
      may annually change his or her election to an allowable alternative payout
      period by submitting a new Election Form to the Committee, provided that
      any such Election Form is submitted at least 2 years prior to the
      Participant's Retirement and is accepted by the Committee in its sole
      discretion. The Election Form most recently accepted by the Committee
      shall govern the payout of the Retirement Benefit. If a Participant does
      not make any election with respect to the payment of the Retirement
      Benefit, then such benefit shall be payable in a Lump sum. The lump sum
      payment shall be made, or installments shall commence, no later than 60
      days after the last day of the quarter in the Participant Retires. Any
      payment made shall be subject to the Deduction Limitation.

5.3   DEATH PRIOR TO COMPLETION OF RETIREMENT BENEFIT. If a Participant dies
      after Retirement but before the Retirement Benefit is paid in full, the
      Participant's unpaid Retirement Benefit payments shall continue and shall
      be paid to the Participant's Beneficiary over the remaining period of time
      and in the same amounts as that benefit would have been paid to the
      Participant had the Participant survived.

                                      -16-

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                                    ARTICLE 6
                         PRE-RETIREMENT SURVIVOR BENEFIT

6.1   PRE-RETIREMENT SURVIVOR BENEFIT. Subject to the Deduction Limitation, the
      Participant's Beneficiary shall receive a Pre-Retirement Survivor Benefit
      equal to the Participant's vested Account Balance if the Participant dies
      before he or she Retires, experiences a Termination of Employment or
      suffers a Disability.

6.2   PAYMENT OF PRE-RETIREMENT SURVIVOR BENEFIT. The Participant's Beneficiary
      shall receive the Pre-Retirement Survivor Benefit in a lump sum; provided,
      however, that upon request by the Beneficiary, the Committee may, in its
      sole discretion, direct that the Pre-Retirement Survivor Benefit be paid
      to the Beneficiary pursuant to an Annual Installment Method of 5, 10 or 15
      years. The lump-sum payment shall be made, or installment payments shall
      commence, no later than 60 days after the last day of the Plan Year in
      which the Committee is provided with proof that is satisfactory to the
      Committee of the Participant's death. Any payment made shall be subject to
      the Deduction Limitation.

                                    ARTICLE 7
                               TERMINATION BENEFIT

7.1   TERMINATION BENEFIT. Subject to the Deduction Limitation, the Participant
      shall receive a Termination Benefit, which shall be equal to the
      Participant's vested Account Balance if a Participant experiences a
      Termination of Employment prior to his or her Retirement, death or
      Disability.

7.2   PAYMENT OF TERMINATION BENEFIT. If the Participant's vested Account
      Balance at the time of his or her Termination of Employment is less than
      $50,000, payment of his or her Termination Benefit shall be paid in a lump
      sum. If his or her vested Account Balance at such time is equal to or
      greater than that amount, the Committee, in its sole discretion, may cause
      the Termination Benefit to be paid in a lump sum or pursuant to an Annual
      Installment Method of 5, 10, or 15 years. The lump sum payment shall be
      made, or installment payments shall commence, no later than 60 days after
      the last day of the Plan Year in which the Participant experiences the
      Termination of Employment. Any payment made shall be subject to the
      Deduction Limitation.

                                    ARTICLE 8
                          DISABILITY WAIVER AND BENEFIT

8.1   DISABILITY WAIVER.

      (a)    WAIVER OF DEFERRAL. A Participant who is determined by the
             Committee to be suffering from a Disability shall be excused from
             fulfilling that portion of the Annual Deferral Amount commitment
             that would otherwise have been withheld

                                      -17-

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             from a Participant's Annual Salary and/or Bonus for the Plan Year
             during which the Participant first suffers a Disability. During the
             period of Disability, the Participant shall not be allowed to make
             any additional deferral elections, but will continue to be
             considered a Participant for all other purposes of this Plan.

      (b)    RETURN TO WORK. If a Participant returns to employment with an
             Employer, after a Disability ceases, the Participant may elect to
             defer an Annual Deferral Amount for the Plan Year following his or
             her return to employment or service and for every Plan Year
             thereafter while a Participant in the Plan; provided such deferral
             elections are otherwise allowed and an Election Form is delivered
             to and accepted by the Committee for each such election in
             accordance with Section 3.3 above.

8.2   CONTINUED ELIGIBILITY; DISABILITY BENEFIT. A Participant suffering a
      Disability shall, for benefit purposes under this Plan, continue to be
      considered to be employed, and shall be eligible for the benefits provided
      for in Articles 4, 5, 6 or 7 in accordance with the provisions of those
      Articles. Notwithstanding the above, the Committee shall have the right
      to, in its sole and absolute discretion and for purposes of this Plan
      only, and must in the case of a Participant who is otherwise eligible to
      Retire, deem the Participant to have experienced a Termination of
      Employment, or in the case of a Participant who is eligible to Retire, to
      have Retired, at any time (or in the case of a Participant who is eligible
      to Retire, as soon as practicable) after such Participant is determined to
      be suffering a Disability, in which case the Participant shall receive a
      Disability Benefit equal to his or her Account Balance at the time of the
      Committee's determination; provided, however, that should the Participant
      otherwise have been eligible to Retire, he or she shall be paid in
      accordance with Article 5. The Disability Benefit shall be paid in a lump
      sum within 60 days of the Committee's exercise of such right. Any payment
      made shall be subject to the Deduction Limitation.

                                    ARTICLE 9
                             BENEFICIARY DESIGNATION

9.1   BENEFICIARY. Each Participant shall have the right, at any time, to
      designate his or her Beneficiary(ies) (both primary as well as contingent)
      to receive any benefits payable under the Plan to a beneficiary upon the
      death of a Participant. The Beneficiary designated under this Plan may be
      the same as or different from the Beneficiary designation under any other
      plan of an Employer in which the Participant participates.

9.2   BENEFICIARY DESIGNATION AND CHANGE OF BENEFICIARY . A Participant shall
      designate his or her Beneficiary by completing and signing the Beneficiary
      Designation Form, and returning it to the Committee or its designated
      agent. A Participant shall have the right to change a Beneficiary by
      completing, signing and otherwise complying with the terms of the
      Beneficiary Designation Form and the Committee's rules and procedures, as
      in effect from time to time. Upon the acceptance by the Committee of a new
      Beneficiary Designation

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      Form, all Beneficiary designations previously filed shall be canceled. The
      Committee shall be entitled to rely on the last Beneficiary Designation
      Form filed by the Participant and accepted by the Committee prior to his
      or her death.

9.3   ACKNOWLEDGMENT. No designation or change in designation of a Beneficiary
      shall be effective until received and acknowledged in writing by the
      Committee or its designated agent.

9.4   NO BENEFICIARY DESIGNATION. If a Participant fails to designate a
      Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all
      designated Beneficiaries predecease the Participant or die prior to
      complete distribution of the Participant's benefits, then the
      Participant's designated Beneficiary shall be deemed to be his or her
      estate.

9.5   DOUBT AS TO BENEFICIARY. If the Committee has any doubt as to the proper
      Beneficiary to receive payments pursuant to this Plan, the Committee shall
      have the right, exercisable in its discretion, to cause the Participant's
      Employer to withhold such payments until this matter is resolved to the
      Committee's satisfaction.

9.6   DISCHARGE OF OBLIGATIONS. The payment of benefits under the Plan to a
      Beneficiary shall fully and completely discharge all Employers and the
      Committee from all further obligations under this Plan with respect to the
      Participant, and that Participant's Plan Agreement shall terminate upon
      such full payment of benefits.

                                   ARTICLE 10
                                LEAVE OF ABSENCE

10.1  PAID LEAVE OF ABSENCE. If a Participant is authorized by the Participant's
      Employer for any reason to take a paid leave of absence from the
      employment of the Employer, the Participant shall continue to be
      considered employed by the Employer and the Annual Deferral Amount shall
      continue to be withheld during such paid leave of absence in accordance
      with Section 3.3.

10.2  UNPAID LEAVE OF ABSENCE. If a Participant is authorized by the
      Participant's Employer for any reason to take an unpaid leave of absence
      from the employment of the Employer, the Participant shall continue to be
      considered employed by the Employer and the Participant shall be excused
      from making deferrals until the earlier of the date the leave of absence
      expires or the Participant returns to a paid employment status. Upon such
      expiration or return, deferrals shall resume for the remaining portion of
      the Plan Year in which the expiration or return occurs, based on the
      deferral election, if any, made for that Plan Year. If no election was
      made for that Plan Year, no deferral shall be withheld.

                                      -19-

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                                   ARTICLE 11
                     TERMINATION, AMENDMENT OR MODIFICATION

11.1  TERMINATION. Although each Employer anticipates that it will continue the
      Plan for an indefinite period of time, there is no guarantee that any
      Employer will continue the Plan or will not terminate the Plan at any time
      in the future. Accordingly, each Employer reserves the right to
      discontinue its sponsorship of the Plan and/or to terminate the Plan at
      any time with respect to any or all of its participating Employees, by
      action of its board of directors. Upon the termination of the Plan with
      respect to any Employer, the Plan Agreements of the affected Participants
      who are employed by that Employer shall terminate and their Account
      Balances, determined as if they had experienced a Termination of
      Employment on the date of Plan termination or, if Plan termination occurs
      after the date upon which a Participant was eligible to Retire, then with
      respect to that Participant as if he or she had Retired on the date of
      Plan termination, shall be paid to the Participants as follows: Prior to a
      Change in Control, if the Plan is terminated with respect to all of its
      Participants, an Employer shall have the right, in its sole discretion,
      and notwithstanding any elections made by the Participant, to pay such
      benefits in a lump sum or pursuant to an Annual Installment Method of up
      to 15 years, with amounts credited and debited during the installment
      period as provided herein. If the Plan is terminated with respect to less
      than all of its Participants, an Employer shall be required to pay such
      benefits in a lump sum. After a Change in Control, the Employer shall be
      required to pay such benefits in a lump sum. The termination of the Plan
      shall not adversely affect any Participant or Beneficiary who has become
      entitled to the payment of any benefits under the Plan as of the date of
      termination; provided however, that the Employer shall have the right to
      accelerate installment payments without a premium or prepayment penalty by
      paying the Account Balance in a lump sum or pursuant to an Annual
      Installment Method using fewer years (provided that the present value of
      all payments that will have been received by a Participant at any given
      point of time under the different payment schedule shall equal or exceed
      the present value of all payments that would have been received at that
      point in time under the original payment schedule).

11.2  AMENDMENT. Any Employer may, at any time, amend or modify the Plan in
      whole or in part with respect to that Employer by the action of its board
      of directors; provided, however, that: (i) no amendment or modification
      shall be effective to decrease or restrict the value of a Participant's
      Account Balance in existence at the time the amendment or modification is
      made, calculated as if the Participant had experienced a Termination of
      Employment as of the effective date of the amendment or modification or,
      if the amendment or modification occurs after the date upon which the
      Participant was eligible to Retire, the Participant had Retired as of the
      effective date of the amendment or modification, and (ii) no amendment or
      modification of this Section 11.2 or Section 12.2 of the Plan shall be
      effective. The amendment or modification of the Plan shall not affect any
      Participant or Beneficiary who has become entitled to the payment of
      benefits under the

                                      -21-

<PAGE>   25

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

      Plan as of the date of the amendment or modification; provided, however,
      that the Employer shall have the right to accelerate installment payments
      by paying the Account Balance in a lump sum or pursuant to an Annual
      Installment Method using fewer years (provided that the present value of
      all payments that will have been received by a Participant at any given
      point of time under the different payment schedule shall equal or exceed
      the present value of all payments that would have been received at that
      point in time under the original payment schedule).

11.3  PLAN AGREEMENT. Despite the provisions of Sections 11.1 and 11.2 above, if
      a Participant's Plan Agreement contains benefits or limitations that are
      not in this Plan document, the Employer may only amend or terminate such
      provisions with the consent of the Participant.

11.4  EFFECT OF PAYMENT. The full payment of the applicable benefit under
      Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all
      obligations to a Participant and his or her designated Beneficiaries under
      this Plan and the Participant's Plan Agreement shall terminate.

                                   ARTICLE 12
                                 ADMINISTRATION

12.1  COMMITTEE DUTIES. Except as otherwise provided in this Article 12, this
      Plan shall be administered by a Committee which shall consist of the
      Board, or such committee as the Board shall appoint. Members of the
      Committee may be Participants in this Plan. The Committee shall also have
      the discretion and authority to (i) make, amend, interpret, and enforce
      all appropriate rules and regulations for the administration of this Plan
      and (ii) decide or resolve any and all questions including interpretations
      of this Plan, as may arise in connection with the Plan. Any individual
      serving on the Committee who is a Participant shall not vote or act on any
      matter relating solely to himself or herself. When making a determination
      or calculation, the Committee shall be entitled to rely on information
      furnished by a Participant or the Company.

12.2  ADMINISTRATION UPON CHANGE IN CONTROL. For purposes of this Plan, the
      Company shall be the "Administrator" at all times prior to the occurrence
      of a Change in Control. Upon and after the occurrence of a Change in
      Control, the "Administrator" shall be an independent third party selected
      by the Trustee and approved by the individual who, immediately prior to
      such event, was the Company's Chief Executive Officer or, if not so
      identified, the Company's highest ranking officer (the "Ex-CEO"). The
      Administrator shall have the discretionary power to determine all
      questions arising in connection with the administration of the Plan and
      the interpretation of the Plan and Trust including, but not limited to
      benefit entitlement determinations; provided, however, upon and after the
      occurrence of a Change in Control, the Administrator shall have no power
      to direct the investment of Plan or Trust assets or select any investment
      manager or custodial firm for the Plan or Trust. Upon and after the
      occurrence of a Change in Control, the Company

                                      -21-

<PAGE>   26
SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

      must: (1) pay all reasonable administrative expenses and fees of the
      Administrator; (2) indemnify the Administrator against any costs, expenses
      and liabilities including, without limitation, attorney's fees and
      expenses arising in connection with the performance of the Administrator
      hereunder, except with respect to matters resulting from the gross
      negligence or willful misconduct of the Administrator or its employees or
      agents; and (3) supply full and timely information to the Administrator or
      all matters relating to the Plan, the Trust, the Participants and their
      Beneficiaries, the Account Balances of the Participants, the date of
      circumstances of the Retirement, Disability, death or Termination of
      Employment of the Participants, and such other pertinent information as
      the Administrator may reasonably require.

      Upon and after a Change in Control, the Administrator may be terminated
      (and a replacement appointed) by the Trustee only with the approval of the
      Ex-CEO. Upon and after a Change in Control, the Administrator may not be
      terminated by the Company.

12.3  AGENTS. In the administration of this Plan, the Committee may, from time
      to time, employ agents and delegate to them such administrative duties as
      it sees fit (including acting through a duly appointed representative) and
      may from time to time consult with counsel who may be counsel to any
      Employer.

12.4  BINDING EFFECT OF DECISIONS. The decision or action of the Administrator
      with respect to any question arising out of or in connection with the
      administration, interpretation and application of the Plan and the rules
      and regulations promulgated hereunder shall be final and conclusive and
      binding upon all persons having any interest in the Plan.

12.5  INDEMNITY OF COMMITTEE. All Employers shall indemnify and hold harmless
      the members of the Committee, and any Employee to whom the duties of the
      Committee may be delegated, and the Administrator against any and all
      claims, losses, damages, expenses or liabilities arising from any action
      or failure to act with respect to this Plan, except in the case of willful
      misconduct by the Committee, any of its members, any such Employee or the
      Administrator.

12.6  EMPLOYER INFORMATION. To enable the Committee and/or Administrator to
      perform its functions, the Company and each Employer shall supply full and
      timely information to the Committee and/or Administrator, as the case may
      be, on all matters relating to the compensation of its Participants, the
      date and circumstances of the Retirement, Disability, death or Termination
      of Employment of its Participants, and such other pertinent information as
      the Committee or Administrator may reasonably require.

                                      -22-

<PAGE>   27

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

                                   ARTICLE 13
                          OTHER BENEFITS AND AGREEMENTS

13.1  COORDINATION WITH OTHER BENEFITS. The benefits provided for a Participant
      and Participant's Beneficiary under the Plan are in addition to any other
      benefits available to such Participant under any other plan or program for
      employees of the Participant's Employer. The Plan shall supplement and
      shall not supersede, modify or amend any other such plan or program except
      as may otherwise be expressly provided.

                                   ARTICLE 14
                                CLAIMS PROCEDURES

14.1  PRESENTATION OF CLAIM. Any Participant or Beneficiary of a deceased
      Participant (such Participant or Beneficiary being referred to below as a
      "Claimant") may deliver to the Committee a written claim for a
      determination with respect to the amounts distributable to such Claimant
      from the Plan. If such a claim relates to the contents of a notice
      received by the Claimant, the claim must be made within 60 days after such
      notice was received by the Claimant. All other claims must be made within
      180 days of the date on which the event that caused the claim to arise
      occurred. The claim must state with particularity the determination
      desired by the Claimant.

14.2  NOTIFICATION OF DECISION. The Committee shall consider a Claimant's claim
      within a reasonable time, and shall notify the Claimant in writing:

      (a)    that the Claimant's requested determination has been made, and that
             the claim has been allowed in full; or

      (b)    that the Committee has reached a conclusion contrary, in whole or
             in part, to the Claimant's requested determination, and such notice
             must set forth in a manner calculated to be understood by the
             Claimant:

             (i)   the specific reason(s) for the denial of the claim, or any
                   part of it;

             (ii)  specific reference(s) to pertinent provisions of the Plan
                   upon which such denial was based;

             (iii) a description of any additional material or information
                   necessary for the Claimant to perfect the claim, and an
                   explanation of why such material or information is necessary;
                   and

             (iv)  an explanation of the claim review procedure set forth in
                   Section 14.3 below.

                                      -23-

<PAGE>   28

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

14.3  REVIEW OF A DENIED CLAIM. Within 60 days after receiving a notice from the
      Committee that a claim has been denied, in whole or in part, a Claimant
      (or the Claimant's duly authorized representative) may file with the
      Committee a written request for a review of the denial of the claim.
      Thereafter, but not later than 30 days after the review procedure began,
      the Claimant (or the Claimant's duly authorized representative):

      (a)    may review pertinent documents;

      (b)    may submit written comments or other documents; and/or

      (c)    may request a hearing, which the Committee, in its sole discretion,
             may grant.

14.4  DECISION ON REVIEW. The Committee shall render its decision on review
      promptly, and not later than 60 days after the filing of a written request
      for review of the denial, unless a hearing is held or other special
      circumstances require additional time, in which case the Committee's
      decision must be rendered within 120 days after such date. Such decision
      must be written in a manner calculated to be understood by the Claimant,
      and it must contain:

      (a)    specific reasons for the decision;

      (b)    specific reference(s) to the pertinent Plan provisions upon which
             the decision was based; and

      (c)    such other matters as the Committee deems relevant.

14.5  LEGAL ACTION. A Claimant's compliance with the foregoing provisions of
      this Article 14 is a mandatory prerequisite to a Claimant's right to
      commence any legal action with respect to any claim for benefits under
      this Plan.

                                   ARTICLE 15
                                      TRUST

15.1  ESTABLISHMENT OF THE TRUST. The Company shall establish the Trust, and
      each Employer shall at least annually transfer over to the Trust such
      assets as the Employer determines, in its sole discretion, are necessary
      to provide, on a present value basis, for its respective future
      liabilities created with respect to the Annual Deferral Amounts, Company
      Contribution Amounts and Company Matching Amounts for such Employer's
      Participants for all periods prior to the transfer, as well as any debits
      and credits to the Participants' Account Balances for all periods prior to
      the transfer, taking into consideration the value of the assets in the
      trust at the time of the transfer.

                                      -24-

<PAGE>   29

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

15.2  INTERRELATIONSHIP OF THE PLAN AND THE TRUST. The provisions of the Plan
      and the Plan Agreement shall govern the rights of a Participant to receive
      distributions pursuant to the Plan. The provisions of the Trust shall
      govern the rights of the Employers, Participants and the creditors of the
      Employers to the assets transferred to the Trust. Each Employer shall at
      all times remain liable to carry out its obligations under the Plan.

15.3  DISTRIBUTIONS FROM THE TRUST. Each Employer's obligations under the Plan
      may be satisfied with Trust assets distributed pursuant to the terms of
      the Trust, and any such distribution shall reduce the Employer's
      obligations under this Plan.

                                   ARTICLE 16
                                  MISCELLANEOUS

16.1  STATUS OF PLAN.. The Plan is intended to be a plan that is not qualified
      within the meaning of Code Section 401(a) and that "is unfunded and is
      maintained by an employer primarily for the purpose of providing deferred
      compensation for a select group of management or highly compensated
      employee" within the meaning of ERISA Sections 201(2), 301(a)(3) and
      401(a)(1). The Plan shall be administered and interpreted to the extent
      possible in a manner consistent with that intent.

16.2  UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries, heirs,
      successors and assigns shall have no legal or equitable rights, interests
      or claims in any property or assets of an Employer. For purposes of the
      payment of benefits under this Plan, any and all of an Employer's assets
      shall be, and remain, the general, unpledged unrestricted assets of the
      Employer. An Employer's obligation under the Plan shall be merely that of
      an unfunded and unsecured promise to pay money in the future.

16.3  EMPLOYER'S LIABILITY. An Employer's liability for the payment of benefits
      shall be defined only by the Plan and the Plan Agreement, as entered into
      between the Employer and a Participant. An Employer shall have no
      obligation to a Participant under the Plan except as expressly provided in
      the Plan and his or her Plan Agreement.

16.4  NONASSIGNABILITY. Neither a Participant nor any other person shall have
      any right to commute, sell, assign, transfer, pledge, anticipate, mortgage
      or otherwise encumber, transfer, hypothecate, alienate or convey in
      advance of actual receipt, the amounts, if any, payable hereunder, or any
      part thereof, which are, and all rights to which are expressly declared to
      be, unassignable and non-transferable. No part of the amounts payable
      shall, prior to actual payment, be subject to seizure, attachment,
      garnishment or sequestration for the payment of any debts, judgments,
      alimony or separate maintenance owed by a Participant or any other person,
      be transferable by operation of law in the event of a Participant's or any
      other person's bankruptcy or insolvency or be transferable to a spouse as
      a result of a property settlement or otherwise.

                                      -25-

<PAGE>   30

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

16.5  NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this Plan shall
      not be deemed to constitute a contract of employment between any Employer
      and the Participant. Such employment is hereby acknowledged to be an "at
      will" employment relationship that can be terminated at any time for any
      reason, or no reason, with or without cause, and with or without notice,
      unless expressly provided in a written employment agreement. Nothing in
      this Plan shall be deemed to give a Participant the right to be retained
      in the service of any Employer, either as an Employee or a director, or to
      interfere with the right of any Employer to discipline or discharge the
      Participant at any time.

16.6  FURNISHING INFORMATION. A Participant or his or her Beneficiary will
      cooperate with the Committee by furnishing any and all information
      requested by the Committee and take such other actions as may be requested
      in order to facilitate the administration of the Plan and the payments of
      benefits hereunder, including but not limited to taking such physical
      examinations as the Committee may deem necessary.

16.7  TERMS. Whenever any words are used herein in the masculine, they shall be
      construed as though they were in the feminine in all cases where they
      would so apply; and whenever any words are used herein in the singular or
      in the plural, they shall be construed as though they were used in the
      plural or the singular, as the case may be, in all cases where they would
      so apply.

16.8  CAPTIONS. The captions of the articles, sections and paragraphs of this
      Plan are for convenience only and shall not control or affect the meaning
      or construction of any of its provisions.

16.9  GOVERNING LAW. Subject to ERISA, the provisions of this Plan shall be
      construed and interpreted according to the internal laws of the State of
      Illinois without regard to its conflicts of laws principles.

16.10 NOTICE. Any notice or filing required or permitted to be given to the
      Committee under this Plan shall be sufficient if in writing and
      hand-delivered, or sent by registered or certified mail, to the address
      below:

                       Spyglass, Inc.
                       1815 South Meyers Road
                       Oakbrook Terrace, IL 60181-5241
                       Attention:  Vice President, Compensation & Benefits

      Such notice shall be deemed given as of the date of delivery or, if
      delivery is made by mail, as of the date shown on the postmark on the
      receipt for registration or certification.

                                      -26-

<PAGE>   31

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

      Any notice or filing required or permitted to be given to a Participant
      under this Plan shall be sufficient if in writing and hand-delivered, or
      sent by mail, to the last known address of the Participant.

16.11 SUCCESSORS. The provisions of this Plan shall bind and inure to the
      benefit of the Participant's Employer and its successors and assigns and
      the Participant and the Participant's designated Beneficiaries.

16.12 VALIDITY. In case any provision of this Plan shall be illegal or invalid
      for any reason, said illegality or invalidity shall not affect the
      remaining parts hereof, but this Plan shall be construed and enforced as
      if such illegal or invalid provision had never been inserted herein.

16.13 INCOMPETENT. If the Committee determines in its discretion that a benefit
      under this Plan is to be paid to a minor, a person declared incompetent or
      to a person incapable of handling the disposition of that person's
      property, the Committee may direct payment of such benefit to the
      guardian, legal representative or person having the care and custody of
      such minor, incompetent or incapable person. The Committee may require
      proof of minority, incompetence, incapacity or guardianship, as it may
      deem appropriate prior to distribution of the benefit. Any payment of a
      benefit shall be a payment for the account of the Participant and the
      Participant's Beneficiary, as the case may be, and shall be a complete
      discharge of any liability under the Plan for such payment amount.

16.14 COURT ORDER. The Committee is authorized to make any payments directed by
      court order in any action in which the Plan or the Committee has been
      named as a party. In addition, if a court determines that a spouse or
      former spouse of a Participant has an interest in the Participant's
      benefits under the Plan in connection with a property settlement or
      otherwise, the Committee, in its sole discretion, shall have the right,
      notwithstanding any election made by a Participant, to immediately
      distribute the spouse's or former spouse's interest in the Participant's
      benefits under the Plan to that spouse or former spouse.

16.15    DISTRIBUTION IN THE EVENT OF TAXATION.

      (a)    IN GENERAL. If, for any reason, all or any portion of a
             Participant's benefits under this Plan becomes taxable to the
             Participant prior to receipt, a Participant may petition the
             Committee before a Change in Control, or the trustee of the Trust
             after a Change in Control, for a distribution of that portion of
             his or her benefit that has become taxable. Upon the grant of such
             a petition, which grant shall not be unreasonably withheld (and,
             after a Change in Control, shall be granted), a Participant's
             Employer shall distribute to the Participant immediately available
             funds in an amount equal to the taxable portion of his or her
             benefit (which amount shall not exceed a Participant's unpaid
             Account Balance under the Plan). If the petition is granted, the
             tax liability distribution shall be made within 90 days of the

                                      -28-

<PAGE>   32

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

      date when the Participant's petition is granted. Such a distribution shall
      affect and reduce the benefits to be paid under this Plan.

(b)   TRUST. If the Trust terminates and benefits are distributed from the Trust
      to a Participant, the Participant's benefits under this Plan shall be
      reduced to the extent of such distributions.

16.16 INSURANCE. The Employers, on their own behalf or on behalf of the trustee
      of the Trust, and, in their sole discretion, may apply for and procure
      insurance on the life of the Participant, in such amounts and in such
      forms as the Trust may choose. The Employers or the trustee of the Trust,
      as the case may be, shall be the sole owner and beneficiary of any such
      insurance. The Participant shall have no interest whatsoever in any such
      policy or policies, and at the request of the Employers shall submit to
      medical examinations and supply such information and execute such
      documents as may be required by the insurance company or companies to whom
      the Employers have applied for insurance.

16.17 LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL. The Company and each
      Employer is aware that upon the occurrence of a Change in Control, the
      Board or the board of directors of a Participant's Employer (which might
      then be composed of new members) or a shareholder of the Company or the
      Participant's Employer, or of any successor corporation might then cause
      or attempt to cause the Company, the Participant's Employer or such
      successor to refuse to comply with its obligations under the Plan and
      might cause or attempt to cause the Company or the Participant's Employer
      to institute, or may institute, litigation seeking to deny Participants
      the benefits intended under the Plan. In these circumstances, the purpose
      of the Plan could be frustrated. Accordingly, if, following a Change in
      Control, it should appear to any Participant that the Company, the
      Participant's Employer or any successor corporation has failed to comply
      with any of its obligations under the Plan or any agreement thereunder or,
      if the Company, such Employer or any other person takes any action to
      declare the Plan void or unenforceable or institutes any litigation or
      other legal action designed to deny, diminish or to recover from any
      Participant the benefits intended to be provided, then the Company and the
      Participant's Employer irrevocably authorize such Participant to retain
      counsel of his or her choice at the expense of the Company and the
      Participant's Employer (who shall be jointly and severally liable) to
      represent such Participant in connection with the initiation or defense of
      any litigation or other legal action, whether by or against the Company,
      the Participant's Employer or any director, officer, shareholder or other
      person affiliated with the Company, the Participant's Employer or any
      successor thereto in any jurisdiction.

                                      -28-

<PAGE>   33

SPYGLASS, INC.
Deferred Compensation Plan
================================================================================

      IN WITNESS WHEREOF, the Company has signed this Plan document effective as
of November 1, 1999.

                                        Spyglass, Inc., a Delaware corporation

                                        By:
                                               ---------------------------------

                                        Title:
                                               ---------------------------------

                                      -29-<PAGE>   1
                                                                     Exhibit 4.3

                             FIRST AMENDMENT TO THE
                    SUPERIOR CONSULTANT HOLDINGS CORPORATION
                            LONG-TERM INCENTIVE PLAN

         The Superior Consultant Holdings Corporation Long-Term Incentive Plan
(the "PLAN") is hereby amended, effective December 1, 1997, as follows:

         1. The aggregate number of Shares as to which Awards may be granted
pursuant to Article III of the Plan shall be increased from 900,000 to
2,400,000.

         2. Article VIII ("Formula Options") of the Plan, shall be amended to
read as follows:

                  A. Each Non-Employee Board Member shall be granted
         automatically a Formula Option to purchase five thousand (5,000) Shares
         upon his or her initial election and qualification as a Non-Employee
         Board Member; and, thereafter, shall be granted automatically a Formula
         Option to purchase five thousand (5,000) Shares upon each anniversary
         of such Non-Employee Board Member's election, provided such person
         remains an incumbent Non-Employee Board Member on such anniversary
         date.

                  B. The purchase price of the Shares subject to the Formula
         Option shall be equal to one hundred percent (100%) of the Fair Market
         Value as of the date of grant.

                  C. Of the five thousand (5,000) Shares subject to each Formula
         Option granted to a Non-Employee Board Member, three thousand (3,000)
         Shares shall be fully exercisable upon grant in accordance with the
         terms of this Plan. The remaining option to purchase two thousand
         (2,000) Shares will become fully exercisable on the first anniversary
         of the date of grant, provided that the Non-Employee Board Member shall
         have attended all regularly scheduled meetings of the Board and shall
         have participated in not less than eighty percent (80%) of all Board
         conference calls scheduled on notice of not less than forty-eight (48)
         hours. Failure to satisfy such Board attendance and participation
         criteria shall result in the lapse of the option to purchase the
         remaining two thousand (2,000) Shares as of the first anniversary of
         the date of grant. If a Non-Employee Board Member shall cease to be a
         director of the Company because of death or disability, all Shares for
         which Formula Options have been granted and which have not otherwise
         lapsed hereunder, shall be

<PAGE>   2

         exercisable in accordance with Paragraphs G and H of Article VII. If a
         Non-Employee Board Member ceases to be a director of the Company for
         any reason other than death or disability, his or her right to exercise
         the Formula Option, and the timing of such exercise, shall be governed
         by the applicable provisions of Paragraph F of Article VII.

                  D. Formula Options shall be evidenced by an Award Agreement
         which shall conform to the requirements of the Plan, and may contain
         such other provisions not inconsistent therewith, as the Committee
         shall deem advisable. The provisions of Article VII governing
         Nonstatutory Options, and the exercise and issuance thereof, shall
         apply to Formula Options to the extent such provisions are not
         inconsistent with this Article VIII.

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