Document:

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                                                                    EXHIBIT 10.2
                                                                    ------------

                           CONVERGENT NETWORKS, INC.
                      1998 RESTRICTED STOCK PURCHASE PLAN

                         (as amended on July 13, 2000)

1.     Purpose

       The purpose of the Convergent Networks, Inc. 1998 Restricted Stock
       Purchase Plan, as amended (the "Plan"), is to attract and retain the
       services of experienced and knowledgeable directors, officers,
       consultants and other key personnel (individually a "Participant,"
       collectively "Participants") of Convergent Networks, Inc. (the
       "Corporation") or any subsidiary for the benefit of the Corporation and
       its stockholders and to provide additional incentive for Participants to
       promote the success of the Corporation or its subsidiaries through
       continuing ownership of its common stock.

2.     Shares Subject to Plan

       The total number of shares of common stock, par value $.00001 per share
       ("Shares"), of the Corporation which may be subject to the Plan shall not
       exceed sixteen million one hundred ninety five thousand (16,195,000)
       Shares in the aggregate, subject to reduction for those amounts of shares
       issued or reserved for issuance under outstanding stock option granted
       under the Company's 1998 Stock Option Plan ("Stock Option Plan") and
       subject to any adjustment under Section 13 hereof. Shares which are sold
       under the plan but which are repurchased by the Corporation shall become
       available for additional sales under the Plan or the Stock Option Plan.

3.     Administration of the Plan

       (a) At the discretion of the Company's Board of Directors, the Plan shall
       be administered either (i) by the full Board of Directors of the Company
       or (ii) by a
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       committee (the "Committee") consisting of two or more members of the
       Company's Board of Directors. In the event of that the full Board of
       Directors is the administrator of the Plan, references herein to the
       Committee shall be deemed to include the full Board of Directors. The
       Board of Directors may from time to time appoint a member or members of
       the Committee in substitution for or in addition to the member or members
       then in office and may fill vacancies on the Committee however caused.
       The Committee shall choose one of its members as Chairman and shall hold
       meetings at such times and places as it shall deem advisable. A majority
       of the members of the Committee shall constitute a quorum and any action
       may be taken by a majority of those present and voting at any meeting.

(b)    The Committee shall be responsible for administration of the Plan. In its
       discretion, and subject to the provisions of the Plan, it shall have the
       power to select Participants, authorize sales of stock, construe the
       Plan, determine all questions and adopt and amend rules and regulations
       for the administration of the Plan. A majority of the members of the
       Committee shall constitute a quorum and any action may be taken by a
       majority of those present and voting at any meeting. Meetings may be held
       by conference telephone calls. Any action may also be taken without the
       necessity of a meeting by a written instrument signed by a majority of
       the Committee. The decision of the Committee on all questions of
       interpretation and application of the Plan shall be final and binding on
       all persons. The Committee may correct any defect or supply any omission
       or reconcile any inconsistency in the Plan or in any Offer (as
       hereinafter defined) as necessary to carry the Plan into effect. The
       members of the Committee shall be entitled to reasonable compensation, as
       determined by the

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       Board, for services in connection with the Plan, and the Corporation
       shall reimburse members of the Committee for any necessary expenses
       incurred by them. The Corporation shall indemnify the Committee and each
       member against all expense or liability occasioned by any act or omission
       in good faith.

4.     Eligibility

       Participants shall be selected by the Committee from directors, officers,
       consultants and other key personnel of the Corporation or any subsidiary.
       In designating Participants and in determining the number of shares to be
       sold to any Participant, the Committee shall take into account the
       Participant's level of responsibility, performance, potential,
       compensation, the number of Shares of the Corporation's common stock
       purchased or subject to purchase under stock options granted to the
       Participant pursuant to any of the Corporation's stock option plans, and
       such other considerations as the Committee deems appropriate.

5.     Rights to Purchase; Offer

       After the Committee determines that it will offer a Participant the right
       to purchase Shares under the Plan, it shall make a written offer (an
       "Offer") to the Participant stating the number of shares the Participant
       shall be entitled to purchase, the purchase price per Share, such other
       conditions, including repurchase and escrow rights, as the Committee
       deems appropriate, and that the Participant has fifteen (15) days to
       accept the Offer. The Committee may extend the term of the Offer. The
       Offer shall incorporate by reference the provisions of the Plan. Subject
       to the Plan, Offers made to different Participants, or to the same
       Participant at different times, may be subject to provisions which differ
       from each other.

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6.     Purchase Price

       The purchase price of the Shares (the "Original Purchase Price") shall be
       determined from time to time by the Committee. The Original Purchase
       Price shall be paid in full, in cash or equivalent, to the Corporation
       prior to expiration of the Offer. The date the Original Purchase Price is
       paid is called the "Closing Date".

7.     Shares Subject to Repurchase

       (a) A Participant's Shares are subject to repurchase by the Corporation
           at the Original Purchase Price for up to five (5) years after either
           the Closing Date or such other date within twelve (12) months prior
           to the Closing Date as determined by the Committee on a case by case
           basis (the "Vesting Reference Date"):

          (i)  If the Participant shall for any reason, including without
               limitation death, disability, voluntary action or involuntary
               removal with or without cause, cease to be employed or engaged in
               any capacity by the Corporation or any of its subsidiaries, the
               Corporation may repurchase at the Original Purchase Price all of
               the Shares (such number of shares being subject to equitable
               adjustment for any stock split, stock dividend combination of
               shares or the like), other that any of such shares which have
               become Vested Shares as defined in Section 7(b).

          (ii) "Vested Shares" shall mean those Shares that are no longer
               subject to repurchase by the Company under section 7(a) as
               determined in accordance with the following schedule: Prior to
               the first anniversary date of the Vesting Reference Date (the
               "First Anniversary Date"), 100% of the Shares shall be subject to
               repurchase by the Company under Section 7(a).

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          On the First Anniversary Date, twenty percent (20%) of the Shares
          shall vest and no longer be subject to repurchase by the Company under
          Section 7(a). Thereafter, additional Shares shall vest on a quarterly
          basis, in arrears, as follows: at the end of each calendar quarter
          after the First Anniversary Date, an additional 5% of the Shares shall
          vest and no longer be subject to repurchase by the Company under
          Section 7(a) hereof such that by the fifth anniversary date of the
          Vesting Reference Date all the Shares shall be vested and not subject
          to repurchase. Any Shares not vested under this Section 7(b) shall
          continue to be subject to repurchase by the Company under Section 7(a)
          hereof. Notwithstanding any other provisions of this section, in the
          event of a Change of Control (as hereinafter defined) of the Company,
          the Participant will automatically receive eighteen (18) months
          accelerated vesting, except that any Participant hired after October
          14, 1998, who has less than twelve (12) months service with the
          Company will receive six (6) months accelerated vesting. In addition,
          the Participant's then remaining unvested Shares shall continue to
          vest at a quarterly rate of 5% of the Shares originally issued. For
          purposes of the Plan, a "Change of Control" shall be deemed to have
          occurred if any of the following conditions have occurred: (1) the
          merger or consolidation of the Company with another entity where the
          Company is not the surviving entity and where after the merger or
          consolidation (i) its stockholders prior to the merger or
          consolidation hold less than 50% of the voting stock of the surviving
          entity and (ii) its

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          Directors prior to the merger or consolidation are less than a
          majority of the Board of the surviving entity; (2) the sale of all or
          substantially all of the Company's assets to a third party and
          subsequent to the transaction (i) its stockholders hold less than 50%
          of the stock of said third party and (ii) its Directors are less than
          a majority of the Board of said third party; (3) a transaction or
          series of related transactions, including a merger of the Company with
          another entity where the Company is the surviving entity, whereby (i)
          50% or more of the voting stock of the Company after the
          transaction(s) is owned actually or beneficially by parties who held
          less than thirty percent (30%) of the voting stock, actually or
          beneficially, prior to the transaction(s) and (ii) its Board of
          Directors after the transaction(s) or within sixty (60) days thereof,
          is comprised of less than a majority of the Directors serving prior to
          the transaction(s); or (4) the Continuing Directors shall not
          constitute a majority of the Board of Directors of the Company. The
          term "Continuing Directors" shall mean a member of the Board of
          Directors of the Company who either was a member of the Board of
          Directors of the Company on the date this Plan was adopted by the
          Board of Directors or who subsequently became a director of the
          Company and whose initial appointment, initial election or initial
          nomination for election by the Company's shareholders subsequent to
          such date was approved by a vote of a majority of the Continuing
          Directors then on the Board of Directors of the Company.

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       (b) Notwithstanding the foregoing vesting set forth under Section 7(a)
           above, the Committee may in its discretion (i) specifically approve a
           different vesting schedule for the Shares, or (ii) accelerate the
           vesting of any Shares subject to such terms and conditions as the
           Board of Directors or the Committee, as the case may be, deems
           necessary and appropriate.

       (c) In addition to the foregoing, the Committee may in its discretion
           waive any such repurchase rights at any time on or subsequent to the
           Closing Date.  A Participant may not sell, exchange, transfer,
           pledge, hypothecate or otherwise dispose of such Shares subject to
           the aforementioned repurchase rights.

8.     Deposit of Shares in Escrow

       Certificates representing Shares shall bear a legend that the shares
       represented thereby may not be sold, exchanged, transferred, pledged,
       hypothecated or otherwise disposed of except in accordance with the terms
       of the Plan and the transfer agent for the common stock of the
       Corporation shall be so instructed. Each Participant shall deposit such
       certificates together with a stock power or other instrument of transfer,
       appropriately endorsed in blank with signatures witnessed, with an escrow
       agent designated by the Committee under a deposit agreement requiring the
       Shares to be held in escrow until a repurchase occurs under Section 7 or
       until such repurchase rights shall have lapsed, and containing such other
       terms and conditions as the Committee shall approve, all expenses of any
       such escrow to be borne by the Corporation. Each Participant hereby
       irrevocably constitutes and appoints the Secretary of the Company as his
       or her attorney to transfer Shares on the books of the Company in
       connection with any repurchase. During the period while the Shares are

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       held in escrow, the Participant shall be entitled to receive all
       dividends declared thereon.

9.     Form of Agreements

       The Committee may specify from time to time such forms of Repurchase
       Agreement, Sales Agreement, Escrow Agreement and other agreements and
       documents it deems necessary in connection with the issuance of Shares
       under the Plan.

10.    Provisions Relating to Securities Act

       (a) Shares shall be registered in the name of the Participant on the
           stock and transfer records of the Corporation and stock certificates
           shall be delivered after the Offer has been accepted. However, if the
           Board determines that the listing upon any securities exchange or the
           registration or qualification under any federal or state law of the
           Shares, or the consent or approval of any governmental regulatory
           body, is necessary or desirable in connection with the sale of such
           Shares, registration on the stock and transfer records and delivery
           of stock certificates may be delayed until such listing,
           registration, qualification, consent or approval is obtained, free of
           any conditions not acceptable to the Board.

       (b) Delivery of Shares may be made either from shares of authorized but
           unissued common stock or from outstanding shares of common stock held
           in the Treasury of the Corporation.

       (c) Notwithstanding any other provision of this Plan, the Corporation may
           delay registration on its stock and transfer records and delivery of
           stock certificates to a Participant until one of the following
           conditions shall have been satisfied

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               (i)   The Shares covered by a sale are at the time of such sale
                     effectively registered under the Securities Act of 1933
                     (the "Securities Act"),

               (ii)  A no action letter in respect of the sale of such Shares
                     shall have been obtained by the Corporation from the
                     Securities and Exchange Commission; or

               (iii) Counsel for the Corporation shall have given an opinion,
                     which opinion shall not be unreasonably conditioned or
                     withheld, that such Shares are exempt from registration
                     under the Securities Act.

     Moreover, unless such Shares have been effectively registered under the
     Securities Act the Corporation shall be under no obligation to make any
     sale unless the Participant shall first give a written representation to
     the Corporation satisfactory to the Corporation's counsel and upon which,
     in the opinion of such counsel, the Corporation may reasonably rely, that
     the Participant is acquiring the Shares as an investment and not with a
     view to or for sale in connection with any distribution of any such Shares
     in violation of the Securities Act. Each certificate representing Shares
     delivered in such sale shall bear a legend referring to such investment
     representation.

     (d)  The Corporation shall have no obligation, contractual or otherwise, to
          any Participant to register the Shares to be sold to such Participant
          under the Securities Act.

     (e)  If a Participant desires to make an election with respect to Shares
          under Section 83(b) of the Internal Revenue Code of 1986, as amended
          (the "Code"), the

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           Participant must do so within thirty (30) days after the Closing
           Date. A sample form of an election is included in Exhibit A.

11.  Expenses of the Plan

     All costs and expenses for the adoption and administration of the Plan
     shall be borne by the Corporation.

12.  No Implied Right

     Nothing in the Plan shall be deemed to give any person, or any other person
     claiming under or through him, any contractual or other right to
     participate in the benefits of the Plan. Nothing in the Plan and no action
     or sale thereunder shall be construed to constitute or be evidence of any
     agreement or understanding, express or implied, on the part of the
     Corporation to employ or otherwise retain any participant for any specific
     period of time.

13.  Adjustments

     In the event of any change in the outstanding shares of common stock of the
     Corporation by reason of any stock dividend or split, recapitalization,
     merger, consolidation, combination or exchange of shares for other
     securities, or other similar corporate change, the Committee may make such
     adjustments as the Committee deems appropriate in (a) the total number of
     Shares which may be offered for purchase under the Plan; and (b) the number
     of Shares which may be offered to any Participant.

14.  Transferability

     Except as otherwise specifically provided in the Plan, no right or interest
     under the Plan of any Participant shall be assignable or transferable, in
     whole or in part, either

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      directly or by operation of law or otherwise, including, without
      limitation, execution, levy, garnishment, attachment, pledge, bankruptcy
      or in any other manner (except by will or the laws of descent and
      distribution in accordance with the Plan, pursuant to a qualified domestic
      relations order as defined by the Code or under Title I of the Employee
      Retirement Income Security Act, or the rules thereunder); and no such
      right or interest of any Participant shall be subject to any obligation or
      liability of such Participant.

15.   Withholding of Income Taxes

      The Corporation shall have the right to deduct from any amounts paid to
      the Participant and to require the Participant to remit payment to the
      Corporation to cover any federal, state or local taxes required by law to
      be withheld with respect to any event under the Plan.

16.  Approval

     The Plan shall be subject to approval by the affirmative vote of a majority
     of the shares of common stock of the Corporation entitled to vote within
     twelve months of adoption by the Board and shall be effective as of the
     date of adoption of the Plan by the Board. Any Shares purchased prior to
     such approval shall not vest until such approval is obtained.

17.  Effective Date

     The Plan shall become effective upon adoption by the Directors.

18.  Voting Rights Agreement

     Upon the acceptance of an Offer, the Participant shall enter into a Voting
     Rights Agreement, pursuant to which such Participant shall grant to Bing
     Yang, President

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     and Chief Executive Officer of the Corporation, the right to vote all
     Shares held by the Participant.

19.  Amendment and Termination of the Plan

     Unless sooner terminated as herein provided, the Plan shall terminate ten
     (10) years from its effective date, or upon the sale of all the Shares
     available for sale under the Plan, whichever shall first occur. The Board
     may at any time terminate, extend, or amend the Plan. However, termination
     or amendment of the Plan shall not, without the consent of any person
     affected thereby, modify or in any way affect any right or obligation
     created prior to such termination or amendment, and any amendment of the
     Plan which materially increases benefits accruing to Participants under the
     Plan, materially increases the number of Shares reserved for the Plan or
     materially modifies the requirements of eligibility for participation in
     the Plan must be approved by the affirmative vote of a majority of the
     shares of common stock of the Corporation outstanding and entitled to vote
     before it may take effect.

20.  Notices

     Any communication or notice required or permitted to be given under the
     Plan shall be in writing, and mailed by registered or certified mail or
     delivered by hand, if to the Corporation, to its principal place of
     business, attention: President, and if to a Participant, to the address
     appearing on the records of the Corporation.

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                                   EXHIBIT A
                                   ---------

                             FORM OF 83(b) ELECTION

                  Election to Include in Gross Income in Year
                      Of Transfer of Property Pursuant to
                   Section 83(b) of the Internal Revenue code

       The undersigned hereby elects pursuant to 83(b) of the Internal Revenue
       Code with respect to the property described below and supplies the
       following information in accordance with the regulations promulgated
       thereunder:

       1.  The name, address and taxpayer identification number of the
       undersigned are:

       Taxpayer I.D. No.:

       2.  Description of property with respect to which the election is being
       made:

           __________________ shares of Common Stock, $.00001 par value per
           share, of Convergent Networks, Inc. (the "Shares")

       3.  Date on which property was transferred is _________________, 2000

           The taxable year to which this election relates is calendar year 2000

       4.  Nature of the restriction(s) to which the property is subject is:

           The Shares are subject to repurchase by Convergent Networks
           Corporation at the original purchase price therefore for up to five
           (5) years after the date of transfer in the event of termination of
           the taxpayer's employment with Convergent Networks Corporation for
           any reason in accordance with the following repurchase schedule.

           Prior to _____________, 2000, one hundred (100%) of the Shares are
           subject to repurchase. On __________, 2000 twenty percent (20%) of
           the Shares subject to repurchase hereunder shall vest and eight
           percent (80%) of the Shares are subject to repurchase. Thereafter
           additional Shares shall Vest on a quarterly basis such that for each
           month after ___________, 2000, five (5%) of said Shares shall Vest
           and the number of shares subject to repurchase shall decrease by a
           like amount on a per month basis.

       5.  The fair market value at the time of transfer (determined without
           regard to any restrictions other than restrictions which by their
           terms will never lapse) of the property with respect to which this
           election is being made is $.___ per share.

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       6.   The amount paid by taxpayer for said property is $.___ per share.

       7.   A Copy of this statement has been furnished to Convergent Networks,
       Inc.

       Dated:

       By: _______________________________

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                                                                    EXHIBIT 10.3
                                                                    ------------
                         HEMISPHERE INVESTMENTS, INC.
                          THIRD AMENDED AND RESTATED
                   1996 EMPLOYEE STOCK OPTION INCENTIVE PLAN

     1.  Purpose; Types of Awards; Construction.
         --------------------------------------

     The purpose of the HEMISPHERE INVESTMENTS INC. THIRD AMENDED AND RESTATED
1996 EMPLOYEE STOCK OPTION INCENTIVE PLAN (the "Plan") is to afford an incentive
to selected directors, employees and independent contractors of HEMISPHERE
INVESTMENTS, INC., a Florida corporation ("Hemisphere") or any Subsidiaries
which now exist or hereafter are organized or acquired (collectively, the
"Company"), to acquire a proprietary interest in the Company, to continue as
directors, employees or independent contractors, as appropriate, to increase
their efforts on behalf of the Company and/or to promote the success of the
Company's business.

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

     The following terms, as used herein, shall have the following meanings:

          (a)  "Award" shall mean any Option granted under the Plan.

          (b)  "Award Agreement" shall mean any written agreement, contract, or
other instrument or document between the Company and a Participant or a Grantee
evidencing an Award.

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

          (d)  "Code" shall mean the Internal Revenue Code of 1986, as amended.

          (e)  "Company" shall mean, collectively, Hemisphere and all of its
Subsidiaries now held or hereafter formed, organized, or acquired.

          (f)  "Disability" shall mean a disability which would qualify as a
"permanent and total disability" under Section 22(e)(3) of the Code or any
successor provision.

          (g)  "Fair Market Value" of a share of Stock on any date shall mean
the value determined by the Option Committee after taking into consideration all
factors which it deems appropriate, including, without limitation, recent sale
and offer prices of the Stock in private transactions negotiated at arm's
length.

          (h)  "Grantee" shall mean an officer, director or other employee of
the Group who is, pursuant to Section 4 of the Plan, selected to participate
herein with respect to the grant of an Incentive Stock Option.

          (i)  "Incentive Stock Option" shall mean an Option that meets the
requirements of Section 422 of the Code, or any successor provision, and that is
designated by the Option Committee as an Incentive Stock Option.
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          (j)  "Nonqualified Stock Option" shall mean an Option other than an
Incentive Stock Option.

          (k)  "Option" shall mean the right, granted pursuant to this Plan, of
a holder to purchase shares of Stock at a price and upon the terms to be
specified by the Option Committee.

          (l)  "Option Committee" shall mean the Option Committee as appointed
by the Board and as described in Section 3 hereof.

          (m)  "Participant" shall mean (i) an officer or director of the
Company, (ii) an employee of the Company who is not an officer or director, or
(iii) a person or service company that performs services in the capacity of an
independent contractor on behalf of the Company, who (or which) is, pursuant to
Section 4 of the Plan selected to participate herein; provided, however, any
                                                      --------  -------
Participant who (or which) is not also a Grantee hereunder shall not be eligible
to participate in the grant of an Incentive Stock Option hereunder.

          (n)  "Plan Year" shall mean the Company's fiscal year.

          (o)  "Relationship" shall mean, solely with respect to an independent
contractor, such individual's or service company's capacity of performing
services as an independent contractor for the Company, and solely with respect
to a director that is not an employee of the Company, the termination of such
individual's position as a director of the Company.

          (p)  "Retirement" shall mean retirement of a Participant (who is not
an independent contractor) or a Grantee from the employ of the Company in
accordance with the terms of an applicable qualified retirement plan or, if such
Participant or Grantee is not covered by such a plan, on or after such
Participant's or Grantee's 65th birthday.

          (q)  "Stock" shall mean Hemisphere's common stock, par value $.001 per
share.

          (r)  "Subsidiary" shall mean any corporation (whether incorporated in
the United States or a foreign country) in an unbroken chain of corporations
beginning with Hemisphere if, at the time of granting of an Award, each of the
corporations (other than the last corporation in the unbroken chain) owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in the chain.

          (s)  "Ten Percent Stockholder" shall mean a Grantee who, at the time
an Incentive Stock Option is to be granted to such Grantee, owns (within the
meaning of Section 422(b)(6) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of Hemisphere
(or any Subsidiary) within the meaning of Section 424(d) of the Code.

          (t)  "Unvested Portion" shall mean, as of a particular date, that
portion of an Option granted to a Participant or Grantee hereunder which is not
a Vested Portion. In the event a Participant or a Grantee is granted more than
one Option, the "Unvested Portion" shall refer to all of such Unvested Portions.

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          (u)  "Vested Portion" shall mean, as of a particular date, that
portion of an Option granted to a Participant or Grantee hereunder which is
exercisable, and with respect to which a Participant or a Grantee is vested,
pursuant to the terms of such Participant's or Grantee's Award Agreement. In the
event a Participant or a Grantee is granted more than one Option, the "Vested
Portion" shall refer to all of such Participant's or Grantee's Vested Portions.

     3.  Administration.
         --------------

     The Plan shall be administered by the Option Committee, which shall be
comprised of three (3) or more persons, as determined by the Board of Directors
from time to time, with one such member being Hemisphere's Chief Executive
Officer. The Option Committee shall have the authority, in its sole discretion,
subject to and not inconsistent with the express provisions of the Plan, to
administer the Plan and to exercise all the powers and authorities either
specifically granted to it under the Plan or necessary or advisable in the
administration of the Plan, including, without limitation, the authority to
grant Awards; to determine the persons to whom and the time or times at which
Awards shall be granted; to determine the type and number of Awards to be
granted; to determine the number of shares of Stock to which an Award may
relate; to determine whether, to what extent, and under what circumstances
(subject always to the terms of Section 7(e) below) an Award may be settled,
canceled, forfeited, exchanged, or surrendered; to construe and interpret the
Plan and any Award; to prescribe, amend and rescind rules and regulations
relating to the Plan; to determine the terms and provisions of Award Agreements;
and to make all other determinations deemed necessary or advisable for the
administration of the Plan.

     The Option Committee may appoint a chairperson and a secretary and may make
such rules and regulations for the conduct of its business as it shall deem
advisable, and shall keep minutes of its meetings. All determinations of the
Option Committee shall be made by a majority of its members either present in
person or participating by conference telephone at a meeting or by written
consent. The Option Committee may delegate to one or more of its members or to
one or more agents such administrative duties as it may deem advisable, and the
Option Committee or any person to whom it has delegated duties as aforesaid may
employ one or more persons to render advice with respect to any responsibility
the Option Committee or such person may have under the Plan. All decisions,
determinations and interpretations of the Option Committee shall be final and
binding on all persons, including the Company, the Participant, the Grantee (or
any person claiming any rights under the Plan from or through any Participant or
Grantee) and any stockholder.

     No member of the Board or the Option Committee shall be liable for any
action taken or determination made in good faith with respect to the Plan or any
Award granted hereunder, and such members shall be indemnified and held harmless
by the Company with respect to any cost, damage or liability (including, without
limitation, reasonable attorneys fees and costs) arising from or attributable to
any such action.

     4.  Eligibility.
         -----------

     Awards may be granted to (i) officers, directors and other employees of the
Company, (ii) directors who are not employees of the Company, or (iii) persons
and service companies providing services in their capacities as independent
contractors for the Company, in the sole

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discretion of the Option Committee. In determining the persons or service
companies to whom Awards shall be granted and the type of Award, the Option
Committee shall take into account such factors as the Option Committee shall
deem relevant in connection with accomplishing the purposes of the Plan.

     5.  Stock Subject to the Plan; Limitation on Grants.  The maximum number of
         -----------------------------------------------
shares of Stock reserved for issuance pursuant to the Plan shall be six million
twenty-two thousand six hundred and sixty seven (6,022,667) shares, subject to
adjustment as provided herein.

     In the event that the Option Committee shall determine that any dividend or
other distribution (whether in the form of cash, Stock, or other property),
recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, spin-off, combination, repurchase, or share exchange, or other
similar corporate transaction or event, affects the Stock such that an
adjustment is appropriate in order to prevent dilution or enlargement of the
rights of Participants under the Plan, then the Option Committee shall make such
equitable changes or adjustments as it deems necessary or appropriate to any or
all of (i) the number and kind of shares of Stock which may thereafter be issued
in connection with Awards, (ii) the number and kind of shares of Stock issued or
issuable in respect of outstanding Awards, and (iii) the exercise price, grant
price, or purchase price relating to any Award; provided, that, with respect to
                                                --------  ----
Incentive Stock Options, such adjustment shall be made in accordance with
Section 424 of the Code.

     If any Award granted under this Plan is terminated or expires for any
reason whatsoever, in whole or in part, the shares (or remaining shares) of
Stock subject to that particular Award shall again be available for grant under
this Plan.

     6.  Stock Options.  The Option Committee shall have authority to grant
         -------------
Nonqualified Stock Options to Participants and Incentive Stock Options to
Grantees on the following terms and conditions:

         (a)  Number of Shares. Each Award Agreement shall state the number of
              ----------------
shares of Stock to which the Option relates.

         (b)  Type of Option. Each Award Agreement shall specifically state that
              --------------
the Option constitutes an Incentive Stock Option or a Nonqualified Stock Option.

         (c)  Option Price. Each Award Agreement shall state the Option price.
              ------------
The Option price per share of Stock purchasable under an Option shall be
determined by the Option Committee; provided, that, in the case of an Incentive
                                    --------  ----
Stock Option, such exercise price shall be not less than the Fair Market Value
of a share on the date of grant of such Option. The date as of which the Option
Committee adopts a resolution expressly granting an Option shall be considered
the day on which such Option is granted.

         (d)  Method and Time of Payment. The Option price shall be paid in
              --------------------------
full, at the time of exercise, in cash or in shares of Stock having a Fair
Market Value equal to such Option price or in a combination of cash and Stock
or, in the sole discretion of the Option Committee, through a cashless exercise
procedure.

                                       4
<PAGE>

          (e)  Term and Exercisability of Options. Options shall be exercisable
               ----------------------------------
over the exercise period (which, with respect to Incentive Stock Options, shall
not exceed ten (10) years from the date of grant), at such times and upon such
conditions as the Option Committee may determine, as reflected in the Award
Agreement; provided, that, the Option Committee shall have the authority to
           --------  ----
accelerate the exercisability or vesting of any outstanding Option (including,
without limitation, the exercisability or vesting of any outstanding Option
after the occurrence of an event described in Section 6(i) below), or extend the
exercise period, at such times and under such circumstances as it, in its sole
discretion, deems appropriate; provided, however, with respect to Incentive
                               --------  -------
Stock Options, the Option Committee shall not be permitted to extend the
exercise period beyond that date which is ten (10) years from the date of grant.
An Option may be exercised, as to any or all full shares of Stock as to which
the Option has become exercisable, by written notice delivered in person or by
mail to the Secretary of Hemisphere, specifying the number of shares of Stock
with respect to which the Option is being exercised. For purposes of the
preceding sentence, the date of exercise will be deemed to be the date upon
which the Secretary of Hemisphere receives such notification, provided that
payment for such shares is received by Hemisphere upon such date.

          (f)  Delivery of Purchased Stock. On the exercise date specified in
               ---------------------------
the Participant's or Grantee's notice or as soon thereafter as is practicable,
Hemisphere shall deliver to the exercising Participant or Grantee, a certificate
or certificates for the shares of Stock then being purchased (out of theretofore
unissued Stock or reacquired Stock, as Hemisphere may elect) upon full payment
for such shares.

          (g)  Failure to Pay or Accept Delivery. If an exercising Participant
               ---------------------------------
or Grantee fails to pay for any Stock specified in such notice or fails to
accept delivery thereof, such Participant's or Grantee's right to purchase such
Stock may be terminated by the Option Committee, at its sole discretion.

          (h)  No Rights of Shareholders. Neither any Participant nor Grantee
               -------------------------
nor any personal representative (or beneficiary) shall be, or shall have any
rights and privileges of, a shareholder of Hemisphere with respect to any shares
of Stock purchasable or issuable upon the exercise of any Option granted
hereunder, in whole or in part, prior to the date of exercise of such Option as
defined in paragraph 6(e).

          (i)  Termination. If a Participant's or Grantee's employment by, or
               -----------
Relationship with, the Company terminates, Options granted to such Participant
or Grantee prior to such termination shall remain exercisable following the
effective date of such termination as follows:

               (i)  Cause. If the Relationship of a Participant or the
                    -----
employment of a Participant or Grantee by the Company is terminated for Cause
(as defined herein), all unexercised Options granted to such Participant or
Grantee shall be canceled as of the effective date of such termination. For this
purpose, "Cause" shall mean the termination of a Participant's or Grantee's
Relationship or employment due to such Participant's or Grantee's (i) gross
negligence or willful or wanton misconduct in the performance of their duties
for or on behalf of the Company, (ii) conviction of, plea of guilty to, or plea
of nolo contendre to, a felony crime involving moral turpitude, (iii) conviction
   ---- ---------
of, plea of guilty to, or plea of nolo contendre to, a
                                  ---- ---------
                                       5
<PAGE>

claim of fraud, conversion, embezzlement, falsification of records or reports,
or a similar crime involving the Company's property. Any determination of a
Participant's or Grantee's gross negligence or willful or wanton misconduct
shall be made by the Option Committee, acting in good faith.

          (ii)   Death. If a Participant dies during the Relationship or a
                 -----
Participant or Grantee dies while employed by the Company, the Unvested Portion,
if any, as of such date shall then become fully vested, and such Participant's
or Grantee's personal representative, executor, administrator, legatees or
distributees shall have a period expiring two (2) years from such date of death
or until that date on which the Company consummates an initial public offering
of its shares on an internationally recognized securities exchange, whichever
first occurs (or for such longer period as may be prescribed by the Option
Committee), but in no event beyond the expiration date of such Option, during
which to exercise such Option.

          (iii)  Other Terminations of the Relationship or Employment. If a
                 ----------------------------------------------------
Participant's or a Participant's or Grantee's employment by the Company is
terminated for any reason (including, without limitation, such Participant's or
Grantee's Retirement or Disability) other than a termination for Cause or a
termination resulting from the Death of such Participant or Grantee, the
Unvested Portion as of the effective date of such termination shall be canceled,
and the Vested Portion as of the effective date of such termination shall remain
exercisable for three (3) months from the date thereof (or for such longer
period as may be prescribed by the Option Committee), but in no event beyond the
expiration date of such Option.

     A transfer of a Participant's or Grantee's Relationship between Hemisphere
and any Subsidiary, or between any Subsidiaries, shall not be deemed to be a
termination of such Participant's or Grantee's Relationship. Further, the
conversion of a Participant from an independent contractor to an employee, or
vice versa, shall not be considered a termination of such Participant's
Relationship or employment.

     (j)  Other Provisions. Options may be subject to such other conditions
          ----------------
(which conditions shall lapse; provided, the Option Committee shall prescribe in
its discretion the duration of such lapsing conditions) including, but not
limited to, restrictions on transferability of the shares acquired upon exercise
of such Options, and the right of the Company to repurchase such shares for
their then Fair Market Value upon the termination of a Participant's or
Grantee's employment for any reason, as the Option Committee may prescribe in
its discretion.

     (k)  Incentive Stock Options. Options granted as Incentive Stock Options
          -----------------------
shall be subject to the following special terms and conditions in order to
retain their status as Incentive Stock Options, in addition to the general terms
and conditions specified in this Section 6:

          (i)  Value of Shares. The aggregate Fair Market Value (determined as
               ---------------
of the date the Incentive Stock Option is granted) of the shares of Stock with
respect to which Incentive Stock Options granted under this Plan and all other
plans of the Group become exercisable for the first time by each Grantee during
any calendar year shall not exceed $100,000.

                                       6
<PAGE>

               (ii)  Ten Percent Stockholder. In the case of an Incentive Stock
                     -----------------------
Option granted to a Ten Percent Stockholder, (x) the Option Price shall not be
less than one hundred ten percent (110%) of the Fair Market Value of the shares
of Stock on the date of grant of such Incentive Stock Option, and (y) the
exercise period shall not exceed five (5) years from the date of grant of such
Incentive Stock Option.

               (iii) Issuance to Grantees. Incentive Stock Options shall be
                     --------------------
awarded solely to those eligible persons that are Grantees hereunder.

               (iv)  Exercise following Termination. With respect to an Option
                     ------------------------------
that would otherwise be an Incentive Stock Option, the exercise of such an
Option during any of the post-termination exercise periods described in
subsections (i), (ii), or (iii) of Section 6(i) above shall continue to qualify
as the exercise of an Incentive Stock Option only in the event such exercise is
effected by a Grantee as follows:

                     (A)  in the case of termination of employment due to the
death or Disability of the Grantee, such exercise must occur within one (1) year
of the date of such death or Disability; and

                     (B)  in the case of termination for any other reason, such
exercise must occur within three (3) months of the date of such termination.

     7.  General Provisions.
         ------------------

         (a)  Compliance with Legal Requirements. The Plan and the granting and
              ----------------------------------
exercising of Awards, and the other obligations of the Company under the Plan
and any Award Agreement or other agreement shall be subject to all applicable
federal and state laws, rules and regulations, and to such approvals by any
regulatory or governmental agency as may be required. The Company, in its
discretion, may postpone the issuance or delivery of Stock under any Award as
the Company may consider appropriate, and may require any Participant or Grantee
to make such representations and furnish such information as it may consider
appropriate in connection with the issuance or delivery of Stock in compliance
with applicable laws, rules and regulations.

         (b)  Nontransferability; No Assignment. Awards shall not be
              ---------------------------------
transferable by a Participant or Grantee except by will or the laws of descent
and distribution or pursuant to a qualified domestic relations order as defined
under the Code or Title I of the Employee Retirement Income Security Act of
1974, as amended, or the rules thereunder, and shall be exercisable during the
lifetime of a Participant or Grantee only by such Participant or Grantee or
their guardian or legal representative. Awards shall further not be assignable,
whether for the benefit of creditors or otherwise, by a Participant or Grantee.

         (c)  No Right To Continued Employment or Relationship. Nothing in the
              ------------------------------------------------
Plan or in any Award granted or any Award Agreement or other agreement entered
into pursuant hereto shall confer upon any Participant or Grantee the right to
continue in the employ of the Company or in their Relationship, or to be
entitled to any remuneration or benefits not set forth in the Plan or such Award
Agreement or other agreement or to interfere with or limit in any way the right
of the Company to terminate such Participant's or Grantee, employment or
Relationship.

                                       7
<PAGE>

               (d)  Withholding Taxes. Where a Participant or Grantee or other
                    -----------------
person is entitled to receive shares of Stock pursuant to the exercise of an
Option or is otherwise entitled to receive shares of Stock or cash pursuant to
an Award hereunder, the Company shall have the right to require the Participant
or Grantee or such other person to pay to the Company the amount of any taxes
which the Company may be required to withhold before delivery to such
Participant or Grantee or other person of cash or a certificate or certificates
representing such shares.

     Unless otherwise prohibited by the Option Committee or by applicable law, a
Participant or Grantee may satisfy any such withholding tax obligation by any of
the following methods, or by a combination of such methods: (a) tendering a cash
payment; (b) authorizing the Company to withhold from the shares of Stock or
cash otherwise payable to such Participant or Grantee (1) one or more of such
shares having an aggregate Fair Market Value, determined as of the date the
withholding tax obligation arises, less than or equal to the amount of the total
withholding tax obligation or (2) cash in an amount less than or equal to the
amount of the total withholding tax obligation; or (c) delivering to the Company
previously acquired shares of Stock (none of which shares may be subject to any
claim, lien, security interest, community property right or other right of
spouses or present or former family members, pledge, option, voting agreement or
other restriction or encumbrance of any nature whatsoever) having an aggregate
Fair Market Value, determined as of the date the withholding tax obligation
arises, less than or equal to the amount of the total withholding tax
obligation. A Participant's or Grantee's election to pay his or her withholding
tax obligation (in whole or in part) by the method described in subsection
7(d)(b)(1) above is irrevocable with respect to such exercise once it is made,
and is subject to approval by the Option Committee.

               (e)  Amendment and Termination of the Plan. The Board or the
                    -------------------------------------
Option Committee may at any time and from time to time alter, amend, suspend, or
terminate the Plan in whole or in part; provided, that, no amendment which
                                        --------  ----
requires stockholder approval under applicable law shall be effective unless the
same shall be approved by the requisite vote of the stockholders of the Company.
Notwithstanding the foregoing, no amendment shall affect adversely any of the
rights of any Participant or Grantee, without such Participant's or Grantee's
consent, under any Award theretofore granted under the Plan; provided, however,
                                                             --------  -------
the Plan may be amended by either the Board or the Option Committee at any time
without the consent of any Participant or Grantee or the approval of
Hemisphere's shareholders if either the Board or the Option Committee
determines, each in its sole discretion, that amendment is necessary or
advisable in the light of any addition to or change in the Code or in the
regulations issued thereunder, or any federal or state securities law or other
law or regulation. The power to grant Awards under the Plan will automatically
terminate ten years after the adoption of the Plan by the Board. If the Plan is
terminated, any unexercised Award shall continue to be exercisable in accordance
with its terms and the terms of the Plan in effect immediately prior to such
termination.

               (f)  Unfunded Status of Awards. The Plan is intended to
                    -------------------------
constitute an "unfunded" plan for incentive and deferred compensation. With
respect to any payments not yet made to a Participant or Grantee pursuant to an
Award, nothing contained in the Plan or any Award shall give any such
Participant or Grantee any rights that are greater than those of a general
creditor of the Company.

                                       8
<PAGE>

               (g)  No Fractional Shares. No fractional shares of Stock shall be
                    --------------------
issued or delivered pursuant to the Plan or any Award. The Option Committee
shall determine whether cash, other Awards, or other property shall be issued or
paid in lieu of such fractional shares or whether such fractional shares or any
rights thereto shall be forfeited or otherwise eliminated.

               (h)  Change in Control. Notwithstanding any other provision of
                    -----------------
the Plan to the contrary, if, while any Awards which were granted under the Plan
prior to June 30, 2000 remain outstanding under the Plan, a "Change in Control"
of Hemisphere (as defined in this Section 7(h)) shall occur, all Options granted
under the Plan prior to June 30, 2000 that are outstanding at the time of such
Change in Control shall become fully vested and nonforfeitable and immediately
exercisable in full.

     For purposes of this Section 7(h), a "Change in Control" of Hemisphere
shall occur upon the happening of the earliest to occur of the following:

                    (i)   any person or entity (together with their affiliates)
is or becomes the beneficial owner, directly or indirectly, of securities of
Hemisphere representing 50% or more of the combined voting power of Hemisphere's
then outstanding voting securities;

                    (ii)  during any period of not more than two (2) consecutive
years, individuals who at the beginning of such period constitute the Board, and
any new director whose election by the Board or stockholders was approved by a
vote of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute at least a sixty percent (60%) majority of the Board;

                    (iii) the stockholders of Hemisphere approve a merger or
consolidation of Hemisphere with any other corporation, other than (A) a merger
or consolidation which would result in the voting securities of Hemisphere
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving or parent entity) 80% or more of the combined voting power of the
voting securities of Hemisphere or such surviving or parent entity outstanding
immediately after such merger or consolidation or (B) a merger or consolidation
effected to implement a recapitalization of Hemisphere (or similar transaction)
in which no person or entity (together with their affiliates) acquired, directly
or indirectly, 50% or more of the combined voting power of Hemisphere's then
outstanding securities;

                    (iv)  the stockholders of Hemisphere approve or otherwise
participate in: (A) a plan of complete liquidation of Hemisphere, (B) an
agreement for the sale or disposition by Hemisphere of all or substantially all
of Hemisphere's assets, (C) an agreement for the sale or disposition by such
shareholders of more than fifty percent (50%) of the then outstanding voting
securities of Hemisphere, or (D) any transaction having a similar effect; or

     In addition, notwithstanding any other provision of the Option Plan to the
contrary, if, while any Awards issued before January 1, 1997 remain outstanding
under the Option Plan, Hemisphere effects an Initial Public Offering of its
voting securities for proceeds in excess of Twenty Million Dollars
($20,000,000), all Options granted under the Option Plan before January 1, 1997
that are outstanding at the time of such Initial Public Offering shall become
fully vested

                                       9
<PAGE>

and nonforfeitable and immediately exercisable in full. This provision shall
have no effect on the vesting of Awards granted or issued after December 31,
1996.

               (i)  Governing Law. The Plan and all determinations made and
                    -------------
actions taken pursuant hereto shall be governed by the laws of the State of
Florida without giving effect to the conflict of laws principles thereof.

               (j)  Effective Date. The Plan shall take effect upon its adoption
                    --------------
by the Board, but the Plan (and any grants of Awards made prior to the
stockholder approval mentioned herein) shall be subject to the requisite
approval of the stockholders of Hemisphere. In the absence of such approval,
such Awards shall be null and void.

               (k)  Beneficiary. A Participant or Grantee may file with the
                    -----------
Option Committee a written designation of a beneficiary on such form as may be
prescribed by the Option Committee and may, from time to time, amend or revoke
such designation. If no designated beneficiary survives the Participant or
Grantee, the executor or administrator of the Participant's or Grantee's estate
shall be deemed to be such Participant's or Grantee's beneficiary.

                    (i)  Severability. The invalidity of any one or more of the
                         ------------
words, phrases, sentences, clauses, sections or subsections contained in this
Plan shall not affect the enforceability of the remaining portions of this Plan
or any portion of this Plan, all of which are inserted conditionally on their
being valid in law. In the event that any one or more of the words, phrases,
sentences, clauses, sections or subsections contained in this Plan shall be
declared invalid, this Plan shall be construed as if such invalid word or words,
phrase or phrases, sentence or sentences, clause or clauses, section or
sections, or subsection or subsections had not been inserted.

                                       10

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