Document:

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                                                                     Exhibit 4.3

                           RAMSAY YOUTH SERVICES, INC.
                        1999 EMPLOYEE STOCK PURCHASE PLAN

         1. PURPOSE. The purpose of the Ramsay Youth Services, Inc. 1999
Employee Stock Purchase Plan is to enable and encourage employees of the Company
and its Subsidiaries to acquire the Company's stock through payroll deductions
to enable them to share in the economic prosperity of the Company.

         2. DEFINITIONS.

                  2.1 "Board of Directors" shall mean the Board of Directors of
the Company.

                  2.2 "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                  2.3 "Committee" shall mean the Compensation and Conflict of
Interest Committee of the Board of Directors.

                  2.4 "Common Stock" shall mean shares of the Company's common
stock, $.01 par value.

                  2.5 "Company" shall mean Ramsay Youth Services, Inc., a
Delaware corporation.

                  2.6 "Compensation" shall mean the amount received by an
Employee from the Company or Subsidiary as salary, wages or other direct
remuneration for services rendered, but excluding (a) overtime pay, (b) bonuses,
(c) sick pay and (d) contributions by the Company or any Subsidiary to any
employee benefit plan of the Company or any Subsidiary.

                  2.7 "Eligible Employees" shall mean only those persons who on
an Offering Date (a) are Employees and (b) who are not deemed for purposes of
Section 423(b)(3) of the Code to own stock possessing 5% or more of the total
combined voting power or value of all classes of stock of the Company or of any
Parent or Subsidiary.

                  2.8 "Employees" shall mean all persons employed by the Company
or any Subsidiary, within the meaning of Section 423(b)(1) of the Code,
excluding persons (a) employed less than 6 months, or (b) whose customary
employment is 20 hours or less per calendar week or for not more than five
months per calendar year, or (c) who serve on the Committee.

                  2.9 "Exercise Date" shall mean the final day of each Offering
Period.

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                  2.10 "Fair Market" shall mean the last sale price regular way
on the date of reference, or, in case no sale takes place on such day, the
average of the closing bid and asked prices regular way, in either case on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading, or if the Common Stock is not listed or admitted to trading
on any national securities exchange, the last sale price reported on the
National Market System of the National Association of Securities Dealers
Automated Quotation System ("NASDAQ") on such date, or the last sale price in
the over-the-counter Market reported in NASDAQ on such date, whichever is
applicable, or if there are no such prices reported on NASDAQ on such date, as
furnished to the Committee by any New York Stock Exchange member selected from
time to time by the Committee for such purpose. If the Common Stock is not
traded in the over-the-counter market, the Fair Market Value shall be determined
by the Committee in accordance with the regulations promulgated under Section
2031 of the Code, or by any other appropriate method selected by the Committee.

                  2.11 "Initial Public Offering" shall mean the period
commencing on June 30, 1999 and ending on December 31, 1999.

                  2.12 "Normal Offering Period" shall mean the periods
commencing January 2 and July 1 of each Plan Year and ending, respectively, on
June 30 and December 31 of the same Plan Year. The first Normal Offering Period
shall commence on the first business day following the end of the Initial
Offering Period.

                  2.13 "Offering" shall mean the offering of shares of Common
Stock to Participants pursuant to the Plan that occurs on each Offering Date.

                  2.14 "Offering Date" shall mean the first day of each Offering
Period.

                  2.15 "Parent" shall mean any parent corporation of the Company
within the meaning of Section 425(e) of the Code.

                  2.16 "Participant" shall mean an Eligible Employee who elects
to participate in the Plan and gives notice to the Company of such election in
accordance with Section 5 hereof.

                  2.17 "Plan" shall mean the Ramsay Youth Services, Inc. 1999
Employee Stock Purchase Plan as set forth herein.

                  2.18 "Plan Year" shall mean the period coming with the first
day of the Initial Offering Period and ending on the next December 31 and,
thereafter, each succeeding calendar period coming with the first day of the
year that the Plan is in effect.

                  2.19 "Purchase Price" shall mean the cost of Common Stock
acquired pursuant to the Plan as determined under Section 9 hereof.

                  2.20 "Rules" shall mean the rules of administering the Plan
adopted pursuant to Section 19 hereof.

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                  2.21 "Stock Purchase Account" shall mean the record of
payments made by a Participant in accordance with Section 6 hereof which is
required to be maintained in accordance with Section 7 hereof.

                  2.22 "Subsidiary" shall mean any subsidiary corporation of the
Company within the meaning of Section 425(f) of the Code.

         3. SHARES OFFERED PURSUANT TO THE PLAN. The number of shares of Common
Stock which may be offered under the Plan shall not exceed 100,000, subject to
adjustment in accordance with Section 21 hereof. Such shares may be authorized
but unissued shares, previously issued shares acquired by the Company, or any
combination thereof.

         4. SHARES PURCHASED BY PARTICIPANTS. Each Participant on an Offering
Date shall be entitled to purchase from the Company, in the manner and on the
terms herein provided, whole shares of Common Stock at the Purchase Price set
forth in Section 9 hereof with amounts withheld or paid pursuant to Section 6
hereof during the Offering Period commencing on such Offering Date and ending on
the next succeeding Exercise Date. Anything herein to the contrary
notwithstanding, if any person entitled to purchase shares pursuant to any
Offering hereunder would be deemed for purposes of Section 423(b)(3) of the Code
to own stock (including any number of shares which such person would be entitled
to purchase hereunder and any other such plan maintained by the Company or any
Subsidiary) possessing 5% or more of the total combined voting power or value of
all classes of stock of the Company, the maximum number of shares which such
person shall be entitled to purchase pursuant to the Plan shall be reduced to
that number which, when added to the number of shares of stock of the Company
which such person is so deemed to own (excluding any number of shares which such
person would be entitled to purchase hereunder), is one less than such 5%.

         5. PARTICIPATION IN THE PLAN. Any Eligible Employee may become a
Participant in the Plan by notifying the Company in writing of his intention to
participate prior to the Offering Date on which an Offering commences. Such
notice shall be in the form prescribed by the Rules and shall be delivered by
hand or mailed, postage prepaid, to the Secretary of the Committee, or his
designee.

         6. METHOD OF PAYMENT FOR SHARES.

                  6.1 Payment for shares of Common Stock purchased hereunder
shall be made by authorized payroll deductions from a Participant's Compensation
pursuant to this Section 6.

                  6.2 In his written notice to the Company pursuant to Section 5
hereof, a Participant shall authorize a deduction from the payment of his
Compensation during each Offering Period of any full dollar amount, provided,
however, that the minimum deduction shall be $5 per week or $20 per month, as
appropriate, and the maximum deduction shall be 5% of any payment of
Compensation. The maximum deduction from a Participant's Compensation during any
twelve month period shall be $5,000. A Participant may not change the amount of
his

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deductions during an Offering Period, but may change the amount to be deducted
for any subsequent Offering by filing notice thereof prior to the Offering Date
on which such subsequent Offering commences in the manner provided in Section 5
hereof.

         7. STOCK PURCHASE ACCOUNTS. A Stock Purchase Account shall be
established and maintained in the name of each Participant. Amounts deducted
from a Participant's Compensation pursuant to Section 6 hereof shall be credited
to his Stock Purchase Account.

         8. INTEREST. No interest shall accrue or be payable to any Participant
with respect to any amounts credited to his Stock Purchase Account.

         9. PURCHASE PRICE. The Purchase Price per share of the shares of Common
Stock sold to Participants hereunder for any Offering shall be the lesser of 85%
of the Fair Market Value per share of Common Stock on the (i) Offering Date or
(ii) the Exercise Date.

         10. PURCHASE OF SHARES. If as of any Exercise Date there is credited to
the Stock Purchase Account of a Participant an amount at least equal to the
Purchase Price of one share of Common Stock, as determined in Section 9 hereof,
for the Offering which expires on such Exercise Date, the Participant shall
purchase from the Company at such Purchase Price the largest number of whole
shares of Common Stock which can be purchased with the amount credited to his
Stock Purchase Account. Anything herein to the contrary notwithstanding, a
Participant may not purchase more than 500 shares of Common Stock in any
Offering Period.

         11. EXPIRATION OF OFFERING. As of each Exercise Date the amount
credited to the Stock Purchase Account of each Participant in the Offering which
expires on such Exercise Date shall be charged with the aggregate Purchase Price
of the shares of Common Stock purchased by the Participant on such Exercise
Date. The remaining balance credited to his Stock Purchase Account shall be
refunded to each Participant who files notice of his election for refund prior
to such Exercise Date in the manner provided in Section 23 hereof. If no such
notice is filed by a Participant and he has not withdrawn from the Plan in
accordance with Section 13 hereof, any remaining balance credited to his Stock
Purchase Account shall be credited to his Stock Purchase Account for the next
succeeding Offering hereunder.

         12. ISSUANCE OF SHARES; STOCK CERTIFICATE.

                  12.1 The shares of Common Stock purchased by a Participant on
an Exercise Date shall, for all purposes, be deemed to have been sold at the
close of business on such Exercise Date. Prior to that time, the Participant
shall have none of the rights or privileges of a stockholder of the Company with
respect to such shares.

                  12.2 As soon as practicable after such Exercise Date, the
Company shall issue and deliver a certificate for the number of shares of Common
Stock purchased by a Participant on such Exercise Date, which certificate shall
be registered either in the Participant's name or jointly in the names of the
Participant and his spouse, with the right of survivorship, as the Participant
shall designate in his notice to the Company pursuant to Section 23 hereof. The

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Participant may change such designation at any time by filing notice of the
change in accordance with Section 23 hereof.

         13. VOLUNTARY WITHDRAWAL FROM THE PLAN. A Participant may withdraw from
the Plan at any time by filing notice of withdrawal. Upon a Participant's
withdrawal, the entire amount credited to his Stock Purchase Account shall be
refunded to him. Any Participant who withdraws from the Plan may again become a
Participant hereunder by filing a notice in accordance with Section 5 hereof.

         14. INVOLUNTARY WITHDRAWAL FROM THE PLAN. If a Participant ceases to be
an Employee by reason of clauses (a), (b) or (c) of Section 2.8 hereof, the
entire credit balance in his Stock Purchase Account as of the effective date on
which he so ceased to be an Employee shall be used to purchase shares of Common
Stock pursuant to Sections 9 and 10 hereof as of the next Exercise Date and any
remaining balance credited to his Stock Purchase Account shall be refunded to
him.

         15. TERMINATION OF EMPLOYMENT. If a Participant ceases to be an
Employee other than by reason of clauses (a), (b) or (c) of Section 2.8 hereof,
the entire credit balance in his Stock Purchase Account shall be refunded to
him. If a Participant dies, the entire credit balance in his Stock Purchase
Account shall be paid over to his estate.

         16. PROCEDURE IF INSUFFICIENT SHARES AVAILABLE. In the event that on
any Exercise Date the aggregate funds available for the purchase of shares of
Common Stock pursuant to Section 9 hereof would purchase a number of shares in
excess of the number of shares then available for purchase under the Plan, the
Committee shall proportionately reduce the number of shares which would
otherwise be purchased by each Participant on such Exercise Date in order to
eliminate such excess, the Plan shall automatically terminate immediately after
such Exercise Date and any remaining balance credited to the Stock Purchase
Account of a Participant shall be refunded to such Participant.

         17. LIMITATION ON RIGHT TO PURCHASE. Anything herein to the contrary
notwithstanding, if at any time when any person is entitled to complete the
purchase of any shares pursuant to the Plan, taking into account such person's
rights, if any, to purchase stock under all other stock purchase plans of the
Company or any Subsidiary, the result would be that during the then current
calendar year such person would have first become entitled to purchase under the
Plan and all such other plans a number of shares of stock which would exceed the
maximum number of shares permitted by the provisions of Section 423(b)(8) of the
Code, then the number of shares which such person shall be entitled to purchase
pursuant to the Plan shall be reduced by the number which is one more than the
number of shares which represents the excess.

         18. RIGHTS NOT TRANSFERABLE. Rights to purchase shares under the Plan
are exercisable only by the Participant during his lifetime and are not
transferable. If a Participant attempts to transfer his rights to purchase
shares under the Plan, he shall be deemed to have requested withdrawal from the
Plan and the provisions of Section 13 hereof shall apply with respect to such
Participant.

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         19. ADMINISTRATION OF THE PLAN. Subject to the general control of, and
superseding action by, the Board of Directors, the Committee shall have full
power to administer the Plan. The Committee shall adopt Rules not inconsistent
with the provisions of the Plan for its administration, including the form of
all notices required hereunder. The Committee's interpretation and construction
of the Plan and Rules shall, subject as aforesaid, be final and conclusive.

         20. AMENDMENT OF THE PLAN. The Board of Directors may at any time, or
from time to time, alter or amend the Plan in any respect, except that, without
approval of the stockholders, no amendment may (i) change the number of shares
reserved under the Plan other than as provided in Section 21 hereof, (ii) reduce
the Purchase Price per share as determined under Section 9 hereof, or (iii)
permit any person who is not an Employee to participate in the Plan.

         21. RECAPITALIZATION AND CORPORATE REORGANIZATION.

                  21.1 The aggregate number of shares of Common Stock reserved
for under the Plan as provided in Section 3 hereof, the maximum number of shares
which a Participant may purchase in any Offering as provided in Section 10
hereof, and the Purchase Price per share as provided in Section 9 hereof shall
be appropriately adjusted to reflect any increase or decrease in the number of
issued shares of Common Stock resulting from a subdivision or consolidation of
shares or other capital adjustment, or the payment of a stock dividend, or other
increase or decrease in such shares effected without receipt of consideration by
the Company.

                  21.2 Subject to any required action by the stockholders, if
the Company shall be the surviving or resulting corporation in any merger or
consolidation, any Offering hereunder shall pertain to and apply to the shares
of stock of the Company, but a dissolution or liquidation of the Company or a
merger or consolidation in which the Company is not the surviving or the
resulting corporation, shall cause the Plan and any Offering hereunder to
terminate and the entire amount credited to the Stock Purchase Account of each
Participant thereunder shall be paid to such Participant.

         22. EXPIRATION AND TERMINATION OF THE PLAN. The Plan shall continue in
effect through December 31, 2009 unless terminated prior thereto pursuant to
Section 21 hereof, provided that the Board of Directors shall have the right to
terminate the Plan at any time. In the event of the expiration of the Plan or
its termination pursuant to Section 21 hereof, the entire amount credited to the
Stock Purchase Account of each Participant hereunder shall be refunded to the
Participant.

         23. NOTICE. Any notice which a Participant files pursuant to the Plan
shall be in the appropriate form prescribed by the Rules or, if no provision is
made in such Rules for the particular kind of notice in question, such notice
shall be in writing and shall be delivered by hand or mailed, postage prepaid,
to the Secretary of the Committee, or his designee.

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         24. REPURCHASE OF STOCK. The Company shall not be required to
repurchase from any Participant shares of Common Stock which he acquires under
the Plan.

         25. ALTERNATE CONTRIBUTION METHODS. Anything herein to the contrary
notwithstanding, in the event authorized payroll deductions from Employees'
Compensation are not permitted by reason of the provisions of local law
applicable to the Company or any Subsidiary, the Committee shall adopt an
appropriate alternative method pursuant to which affected Employees may make
payment for shares of Common Stock purchased hereunder which would otherwise
have been made pursuant to Section 6 hereof. Payments made hereunder shall be
deemed to have been made pursuant to Section 6 hereof.

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                                                                     Exhibit 4.4

                           RAMSAY YOUTH SERVICES, INC.
                             1999 STOCK OPTION PLAN

                  1. Purposes of Plan. The purposes of this Plan, which shall be
known as the Ramsay Youth Services, Inc. 1999 Stock Option Plan and is
hereinafter referred to as the "Plan", are (i) to provide incentives for key
employees, directors, consultants and other individuals providing services to
Ramsay Youth Services, Inc. (the "Company") and its subsidiary or parent
corporations (within the respective meanings of Sections 424(f) and 424(e) of
the Internal Revenue Code of 1986, as amended (the "Code"), and referred to
herein as "Subsidiary" and "Parent", respectively) by encouraging their
ownership of the common stock, $.01 par value, of the Company (the "Stock") and
(ii) to aid the Company in retaining such key employees, directors, consultants
and other individuals upon whose efforts the Company's success and future growth
depends, and attracting other such employees, directors, consultants and other
individuals.

                  2. Administration. The Plan shall be administered by a
committee (the "Committee") of the Board of Directors, as hereinafter provided.
For purposes of administration, the Committee, subject to the terms of the Plan,
shall have plenary authority to establish such rules and regulations, to make
such determinations and interpretations, and to take such other administrative
actions as it deems necessary or advisable. All determinations and
interpretations made by the Committee shall be final, conclusive and binding on
all persons, including Optionees and their legal representatives and
beneficiaries.

                  The Committee shall be appointed from time to time by the
Board of Directors and shall consist of not fewer than two if its members.
Unless otherwise determined by the Board of Directors, no member of the Board of
Directors who serves on the Committee shall be eligible to participate in the
Plan. The Board of Directors shall designate one of the members of the Committee
as its Chairman. The Committee shall hold its meetings at such times and places
as it may determine. A majority of its members shall constitute a quorum. All
determinations of the Committee shall be made by a majority of its members. Any
decision or determination reduced to writing and signed by all members shall be
as effective as if it had been made by a majority vote at a meeting duly called
and held. The Committee may appoint a secretary (who need not be a member of the
Committee). No member of the Committee shall be liable for any act or omission
with respect to his service on the Committee, if he acts in good faith and in a
manner he reasonably believes to be in or not opposed to the best interests of
the Company.

                  3. Stock Available for Options. There shall be available for
options under the Plan a total of 1,250,000 shares of Stock, subject to any
adjustments which may be made pursuant to Section 5(f) hereof. Shares of Stock
used for purposes of the Plan may be either authorized and unissued shares, or
previously issued shares held in the

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treasury of the Company, or both. Shares of Stock covered by options which have
terminated or expired prior to exercise shall be available for further options
hereunder.

                  4. Eligibility. Options under the Plan may be granted to key
employees of the Company or any Subsidiary or Parent, including officers or
directors of the Company or any Subsidiary or Parent, and to directors,
consultants and other individuals providing services to the Company or any
Subsidiary or Parent. Options may be granted to eligible individuals whether or
not they hold or have held options previously granted under the Plan or
otherwise granted or assumed by the Company. In selecting individuals for
options, the Committee may take into consideration any factors it may deem
relevant, including its estimate of the individual's present and potential
contributions to the success of the Company and its Subsidiaries. Service as a
director, officer or consultant of or to the Company or any Parent or Subsidiary
shall be considered employment for purposes of the Plan (and the period of such
service shall be considered the period of employment for purposes of Section
5(d) of this Plan); provided, however, that incentive stock options may be
granted under the Plan only to an individual who is an "employee" (as such term
is used in Section 422 of the Code) of the Company or any Subsidiary or Parent.

                  5. Terms and Conditions of Options. The Committee shall, in
its discretion, prescribe the terms and conditions of the options to be granted
hereunder, which terms and conditions need not be the same in each case, subject
to the following:

                  (a) Option Price. The price at which each share of Stock
covered by an option granted under the Plan may be purchased shall be determined
by the Committee and shall not be less than the market value per share of Stock
on the date of grant of the option. The date of grant of an option shall be the
date specified by the Committee in its grant of the option.

                  (b) Option Period. The period for exercise of an option shall
in no event be more than ten years from the date of grant, or in the case of any
option intended to be an incentive stock option granted to an individual owning,
on the date of grant, stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or any Parent or Subsidiary,
more than five years from the date of grant. Options may, in the discretion of
the Committee, be made exercisable in installments during the option period. Any
shares not purchased on any applicable installment date may be purchased
thereafter at any time before the expiration of the option period.

                  (c) Exercise of Options. In order to exercise an option, the
Optionee shall deliver to the Company written notice specifying the number of
shares of Stock to be purchased, together with cash or a certified or bank
cashier's check payable to the order of the Company in the full amount of the
purchase price therefor; provided that, for the purpose of assisting an Optionee
to exercise an option, the Company may make loans to the Optionee or guarantee
loans made by third parties to the Optionee, on such terms and conditions as the
Board of Directors may authorize; and provided further that such

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purchase price may be paid in shares of Stock owned by the Optionee for a period
of at least six months prior to the date of exercise having a market value on
the date of exercise equal to the aggregate purchase price, or in a combination
of cash and Stock. For purposes of this Section 5(c), the market value per share
of Stock shall be the last sale price regular way on the date of reference, or,
in case no sale takes place on such date, the average of the closing high bid
and low asked prices regular way, in either case on the principal national
securities exchange on which the Stock is listed or admitted to trading, or if
the Stock is not listed or admitted to trading on any national securities
exchange, the last sale price reported on the National Market System of the
National Association of Securities Dealers Automated Quotation System ("NASDAQ")
on such date, or the average of the closing high bid and low asked prices of the
Stock in the over-the-counter market reported on NASDAQ on such date, whichever
is applicable, or if there are not such prices reported on NASDAQ on such date,
as furnished to the Committee by any New York Stock Exchange member selected
from time to time by the Committee for such purpose. If there is not bid or
asked price reported on any such date, the market value shall be determined by
the Committee in accordance with the regulations promulgated under Section 2031
of the Code, or by any other appropriate method selected by the Committee. If
the Optionee so requests, shares of Stock purchased upon exercise of an option
may be issued in the name of the Optionee or another person. An Optionee shall
have none of the rights of a stockholder until the shares of Stock are issued to
him.

                  (d) Effect of Termination of Employment. An option may not be
exercised after the Optionee has ceased to be in the employ of the Company or
any Subsidiary or Parent, except in the following circumstances:

                  (i) If the Optionee's employment is terminated by action of
                  his employer, or by reason of disability or retirement under
                  any retirement plan maintained by the Company or any
                  Subsidiary or Parent, the option may be exercised by the
                  Optionee within three months after such termination, but only
                  as to any shares exercisable on the date the Optionee's
                  employment so terminates;

                  (ii) In the event of the death of the Optionee during the
                  three month period after termination of employment covered by
                  (i) above, the person or persons to whom his rights are
                  transferred by will or the laws of descent and distribution
                  shall have a period of one year from the date of his death to
                  exercise any options which were exercisable by the Optionee at
                  the time of his death;

                  (iii) In the event of the death of the Optionee while
                  employed, the option shall thereupon become exercisable in
                  full, and the person or persons to whom the Optionee's rights
                  are transferred by will or the laws of descent and
                  distribution shall have a period of one year form the date of
                  the Optionee's death to exercise such option. The provisions
                  of the foregoing sentence shall apply to any outstanding
                  options which are

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                  incentive stock options to the extent permitted by Section
                  422(d) of the Code and such outstanding options in excess
                  thereof shall, immediately upon the occurrence of the event
                  described in the preceding sentence, be treated for all
                  purposes of the Plan as nonstatutory stock options and shall
                  be immediately exercisable as such as provided in the
                  foregoing sentence.

                  In no event shall any option be exercisable more than ten
years from the date of grant thereof. Nothing in the Plan or in any option
granted pursuant to the Plan (in the absence of an express provision to the
contrary) shall confer on any individual any right to continue in the employ of
the Company or any Subsidiary or Parent or interfere in any way with the right
of the Company to terminate his employment at anytime.

                  (e) Transferability of Options. During the lifetime of an
Optionee, options held by such Optionee shall be exercisable only by him. No
option may be transferred by the Optionee otherwise than by will, by the laws of
descent and distribution or pursuant to a qualified domestic relations order,
and during the Optionee's lifetime the option may be exercised only by him or
her; provided, however, that the Board of Directors or the Committee, as
applicable, in its discretion, may allow for transferability of non-qualified
stock options by the Optionee to "Immediate Family Members".

                  "Immediate Family Members: means children, grandchildren,
spouse or common law spouse, siblings or parents of the Optionee or to bona fide
trusts, partnerships or other entities controlled by and of which the
beneficiaries are Immediate Family Members of the Optionee. Any option grants
that are transferable are further conditioned on the Participant and Immediate
Family Members agreeing to abide by the Company's then current stock option
transfer guidelines.

                  (f) Adjustments for Change in Stock Subject to Plan. In the
event of a reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, rights offering, or any other
change in the corporate structure or shares of the Company, the Committee shall
make such adjustments, if any, as it deems appropriate in the number and kind of
shares subject to the Plan, in the number and kind of shares covered by
outstanding options, or in the option price per share, or both.

                  (g) Acceleration of Exercisability of Options Upon Occurrence
of Certain Events. In connection with any merger or consolidation involving the
Company which results in the holders of the outstanding voting securities of the
Company (determined immediately prior to such merger or consolidation) owning,
directly or indirectly, less than a majority of the outstanding voting
securities of the surviving corporation (determined immediately following such
merger or consolidation), or any sale or transfer by the Company of all or
substantially all its assets or any tender offer or exchange offer for or the
acquisition, directly or indirectly, by any person or group of all or a majority
of the then outstanding voting securities of the Company, all outstanding
options under the Plan shall become exercisable in full, notwithstanding any
other provision of the Plan or of any outstanding options granted thereunder, on
and after (i)

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the fifteenth day prior to the effective date of such merger, consolidation,
sale, transfer or acquisition or (ii) the date of commencement of such tender
offer or exchange offer, as the case may be. The provisions of the foregoing
sentence shall apply to any outstanding options which are incentive stock
options to the extent permitted by Section 422(d) of the Code and such
outstanding options in excess thereof shall, immediately upon the occurrence of
the event described in clause (i) or (ii) of the foregoing sentence, be treated
for all purposes of the plan as nonstatutory stock options and shall be
immediately exercisable as such as provided in the foregoing sentence.
Notwithstanding the foregoing, in no event shall any option be exercisable after
the date of termination of the exercise period of such option specified in
Sections 5(b) and 5(d).

                  (h) Registration, Listing and Qualification of Shares of
Stock. Each option shall be subject to the requirement that if at any time the
Board of Directors shall determine that the registration, listing or
qualification of the shares of Stock covered thereby upon any securities
exchange or under any federal or state law. or the consent or approval of any
governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the granting of such option or the purchase of shares of Stock
thereunder, no such option may be exercised unless and until such registration,
listing, qualification, consent or approval shall have been effected or obtained
free of any conditions not acceptable to the Board of Directors. The Company may
require that any person exercising an option shall make such representations and
agreements and furnish such information as it deems appropriate to assure
compliance with the foregoing or any other applicable legal requirement.

                  (i) Other Terms and Conditions. The Committee may impose such
other terms and conditions, not inconsistent with the terms hereof, on the grant
or exercise of options, as it deems advisable.

                  (j) The maximum number of shares of Stock which may be subject
to options granted any person in any fiscal year of the Company shall be 400,000
shares.

                  6. Additional Provisions Applicable to Incentive Stock
Options. The Committee may, in its discretion, grant options under the Plan to
eligible employees which constitute "incentive stock options" within the meaning
of Section 422 of the Code, provided, however, that (a) the aggregate market
value of the Stock with respect to which incentive stock options are exercisable
for the first time by the Optionee during any calendar year shall not exceed the
limitation set forth in Section 422(d) of the Code and (b) if the Optionee owns
on the date of grant securities possessing more than 10% of the total combined
voting power of all classes of securities of the Company or of any Parent or
Subsidiary, the price per share shall not be less than 110% of the market value
per share on the date of the grant.

                  7. Amendment and Termination. Unless the Plan shall
theretofore have been terminated as hereinafter provided, the Plan shall
terminate on, and no option shall be granted hereunder after, June 30, 2009;
provided, however, that the Board of Directors may at any time prior to that
date terminate the Plan. The Board of Directors

                                       5
<PAGE>   6

may at any time amend the Plan; provided, however, that, except as contemplated
in Section 5(f), the Board of Directors shall not, without approval by a
majority of the votes cast thereon by the stockholders of the Company at a
meeting of stockholders at which a proposal to amend the Plan is voted upon,
increase the maximum number of shares of Stock for which options may be granted
under the Plan, or change the minimum option prices. No termination or amendment
of the Plan may, without the consent of an Optionee, adversely affect the rights
of such Optionee under any option held by such Optionee.

                  8. Effectiveness of Plan. The Plan shall not cease to be
effective unless approved at a meeting of stockholders of the Company duly
called and held for such purpose by a majority of the votes cast thereon by the
stockholders of the Company, and no option granted hereunder shall be
exercisable prior to such approval.

                  9. Withholding. It shall be a condition to the obligation of
the Company to issue shares of Stock upon exercise of an option, that the
Optionee (or any beneficiary or person entitled to act under Section 5(d)
hereof) pay to the Company, upon its demand, such amount as may be requested by
the Company for the purpose of satisfying any liability to withhold federal,
state or local income or other taxes. If the amount requested is not paid, the
Company may refuse to issue such shares of Stock.

                  10. Other Actions. Nothing contained in the Plan shall be
construed to limit the authority of the Company to exercise its corporate rights
and powers, including but not by way of limitation, the right of the Company to
grant or assume options for proper corporate purposes other than under the Plan
with respect to any employee or other person, firm, corporation or association.

                                       6

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