Document:

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                                                                     EXHIBIT 4.2

                     LA VISION, INC. 1997 STOCK OPTION PLAN

        1. Purpose. The purpose of the 1997 Stock Option Plan (the "Plan") is to
provide a means whereby selected officers, directors, selected eligible
employees of, and consultants to, LA Vision, Inc. and its consolidated
subsidiaries (hereinafter collectively called the "Company") may be given an
opportunity to purchase the Common Stock, no par value, of the Company (the
"Common Stock") .

        2. Stock Options. The Plan provides for Incentive Stock Options ("ISOs")
and Nonqualified Stock Options ("NSOs"). ISOs are intended to be qualified stock
options under the Internal Revenue Code of 1986, as amended (the "Code").
Generally, no tax is imposed on the recipient of an ISO at the time the option
is granted or exercised by the optionee. The recipient is taxed on the
difference between the sales price and the exercise price when the shares are
later sold. Under the Plan, ISO shall mean an option described in Section 422 of
the Code. NSOs are not intended to meet the requirements of the Code, and if
they have a readily ascertainable fair market value, the difference between the
fair market value and the exercise price may be taxed as income to the recipient
at the time they are granted. NSO shall mean an option not governed by the rules
of Sections 421 through 424 of the Code. Except as provided in Section 4(b) of
the Plan, no option may be granted alternatively as an ISO and as a NSO.

        3. Administration.

            (a) The Board of Directors (the "Board"), whose authority shall be
plenary, shall administer the Plan unless and until such time as the Board
delegates administration of the Plan pursuant to subsection 3(c).

            (b) The Board, whose determinations shall be conclusive, shall have
the power, subject to and within the limits of the express provisions of the
Plan:

                (1) To grant options pursuant to the Plan.

                (2) To determine from time to time which of the eligible persons
shall be granted options under the Plan, the number of shares for which each
option shall be granted, the term of each granted option and the time or times
during the term of each option within which all or portions of each option may
be exercised (which at the Board's discretion may be accelerated).

                (3) To construe an interpret the Plan and options granted under
it, and to establish, amend, and revoke rules and regulations for its
administration. The Board, in the exercise of this power, shall generally
determine all questions of policy and expediency that may arise and may correct
any defect, omission, or inconsistency in the Plan or in any option agreement in
a manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

                (4) To grant options in exchange for cancellation of options
granted earlier at different exercise prices, provided, however, nothing
contained herein shall empower

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the Board to grant an ISO under conditions or pursuant to terms that are
inconsistent with the requirements of Section 4(b) hereinbelow.

                (5) To prescribe the terms and provisions of each option granted
(which need not be identical) and to the form of written instrument that shall
constitute the option agreement.

                (6) To amend the Plan as provided in Section 10.

                (7) Generally, to exercise each power and to perform such acts
as are deemed necessary or expedient to promote the best interest of the
Company.

                (8) To take appropriate action to cause any option granted
hereunder to cease to be an ISO, provided, however, no such action may be taken
by the Board without prior written consent of the affected optionee.

            (c) For grants of options to any person eligible under the Plan, the
Board may, by resolution, delegate administration of the Plan (including,
without limitation, the Board's powers under subsection 3(b) hereinabove) to an
existing committee acting under the authority of the Board. The Board shall have
complete discretion to determine the composition, structure, form, term and
operation of any committee established to administer the Plan (the "Committee").
If administration is delegated to a committee, unless the Board otherwise
provides, the Committee, shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board, subject, however, to
such constraints, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. The Board at any time may revest in the
Board the administration of the Plan.

        4. Shares Subject to Plan and to Options.

            (a) Subject to the provisions of Section 9 (relating to adjustments
upon changes in stock), the total number of shares which may be sold pursuant to
options granted under the Plan shall not exceed in the aggregate thirty percent
(30%) of the Company's issued and outstanding Common Sock. If any granted under
the Plan shall for any reason terminate or expire without having been exercised
in full, the stock not purchased under such options shall be available again for
the purposes of the Plan.

            (b) The aggregate fair market value of the stock (determined at the
time of the grant of the option) for which any employee may exercise ISOs for
the first time in any calendar year under all plans of the Company shall not
exceed $100,000 or any other maximum aggregate fair market value to be
established in the future under the Code. Should it be determined that any ISO
granted under the Plan inadvertently exceeds such maximum, such ISO grant shall
be deemed to be a grant of a NSO to the extent, but only to the extent, of such
excess.

        5. Eligibility. Persons eligible for participation in the Plan (the
"Participants") shall be selected by the Board or the Committee. Directors of
the Company who are not also employees of the Company shall not be eligible for
an ISO. No ISO may be granted to a person who, at the time of the grant, owns
stock possessing more than 10% of the total combined voting

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power of the Company or its parent or any subsidiary unless the option price is
at least 110% of the fair market value of the stock subject to the option and
the term of the option does not exceed five (5) years from the date such ISO is
granted. Any employee may hold more than one option at any time.

        6. Terms of Option Agreement. Each option agreement shall be in such
form and shall contain such terms and conditions as the Board or its delegate
from time to time deem appropriate, subject to the following limitations:

            (a) The term of any ISO or NSO shall not be greater than five (5)
years from the date it was granted.

            (b) the purchase price of each ISO and NSO shall be not less than
the fair market value of the stock subject to the ISO or NSO on the date the ISO
or NSO is granted.

            (c) An ISO by its terms shall not be transferable otherwise than by
will or the laws of descent and distribution and may be exercisable during the
lifetime of the option only by the option holder.

            (d) [deleted]

            (e) [deleted]

            (f) Upon the termination of Participant's employment or Board
Membership the right to exercise an option then held shall be limited to the
following:

        DEATH OR DISABILITY: If a Participant's employment or Board Membership
is terminated by death or disability, he or his estate, as the case may be,
shall have the right for a period of twelve (12) months following the date of
death or disability to exercise the option to the extent the Participant was
entitled to exercise such option on the date of his death or disability, or to
the extent otherwise specified by the Board, which may so specify, at a time
that is subsequent to the date of his death or disability, provided the actual
date of exercise is in no event after the expiration of the term of the option.
A Participant's estate shall mean his legal representative or any person who
acquires the right to exercise an option by reason of the Participant's death or
disability.

        MISCONDUCT: If a Participant is determined by the Board of Directors or
the Committee to have committed an act of theft, embezzlement, fraud,
dishonesty, a breach of fiduciary duty to the Company, or deliberately
disregarded the rules of the Company, or if a Participant makes any unauthorized
disclosure or use of any of the trade secrets or confidential information of the
company, engages in any conduct which constitutes unfair competition with the
Company, induces any customer or employee of the company to breach any contract
with or duty to the Company or induces any principal for whom the Company acts
as agent to terminate such agency relationship, neither the Participant nor the
Participant's estate shall be entitled to exercise any option with respect to
any shares whatsoever, whether prior to or after termination of employment. In
making such determination, the Board shall give the Participant an opportunity
to present to the Board or the Committee evidence on the Participant's behalf.

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        OTHER REASONS: If a Participant's employment or Board Membership is
terminated for any reason other than those mentioned above under "Death or
Disability" or "Misconduct," the Participant or the Participant's estate may,
within ninety (90) days following such termination, exercise the option to the
extent such option was exercisable by the Participant on the date of termination
of his employment, or to the extent otherwise specified by the Board, which may
so specify, at a time that is subsequent to the date of the termination of
Participant's employment, provided the date of exercise is in no event after the
expiration of the term of the option.

            (g) In the event of sale, dissolution or liquidation of the Company
or a merger or consolidation in which the Company is not the surviving or
resulting corporation, the Board shall have the power to cause the termination
of every option outstanding hereunder, except that the surviving or resulting
corporation may, in its absolute and uncontrolled discretion, tender an option
or options to purchase its shares and otherwise; provided, however, that in all
events the optionee shall have the right immediately prior to such sale,
dissolution, liquidation, merger or consolidation in which the Company is not
the surviving or resulting corporation, to exercise his option and purchase
shares subject thereto to the extent of any unexercised portion of his option,
regardless of any contrary vesting revisions. This right of exercise shall be
conditioned upon the completion of such dissolution or liquidation or merger or
consolidation.

        In the event of an offer by any person or entity to all shareholders of
the Company to purchase any or all shares of Common Stock of the Company (or
shares of stock or other securities which shall be substituted for such shares
or to which such shares shall be adjusted as provided in Section 9 hereof), any
Participant under this Plan shall have the right upon receipt of such offer to
exercise his option and purchase shares subject thereto to the extent of any
unexercised or unvested portion of such option.

        The grant of an option pursuant to the Plan shall not affect in any way
the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes in its capital or business structure or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its business or assets.

            (h) Options may also contain such other provisions, which shall not
be inconsistent with any of the foregoing terms, as the Board shall deem
appropriate. No option, however, nor anything contained in the Plan, shall
confer upon any employee any right to continue in the employment of the Company
nor limit in any way the right of the Company to terminate his employment at any
time.

        7. Payments.

            (a) To the extent the right to purchase shares has vested under a
Participant's stock option agreement, options may be exercised at the time set
forth in the option agreement by delivering payment in full at the option price
for the number of shares being purchased by cash, certified check, official bank
check or the equivalent thereof acceptable to the Company. Such payment shall be
accompanied by written notice to the Secretary of the Company identifying the
option or part thereof being exercised and specifying the number of shares for
which payment is being tendered. The Company shall deliver or cause to be
delivered to the optionee, which

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delivery shall be not less than fifteen (15) days and not more than sixty (60)
days after the giving of such notice, without transfer or issue tax to the
optionee (or other person entitled to exercise the option) at the principal
office of the company, or such other place as shall be mutually acceptable, a
certificate or certificates for such shares dated the date the options were
validly exercised; provided, however, that the time of such delivery may be
postponed by the Company for such period as may be required for it with
reasonable diligence to comply with any requirements of law. If an option covers
incentive and nonstatutory stock options, separate stock certificates shall be
issued; one or more for stock acquired upon exercise of the ISOs and one or more
for the stock acquired upon exercise of the NSOs.

            (b) Where in the opinion of counsel to the Company, the Company has
or will have a legal obligation to withhold taxes related to the exercise of any
stock option, such option may not be exercised, in whole or in part, unless such
tax obligation is first satisfied in a manner satisfactory to the Company.

        8. Use of Proceeds from Stock. Proceeds from the sale of stock pursuant
to options granted under the Plan shall be used for general corporate purposes.

        9. Adjustments of and Changes in the Stock. In the event that the shares
of Common Stock of the Company, as presently constituted, shall be changed into
or exchanged for a different number or kind of shares of stock or other
securities of the Company or of another corporation (whether by reason of
merger, consolidation, recapitalization, reclassification, split-up, combination
of shares, or otherwise), or if the number of shares of Common Stock of the
Company shall be increased through the payment of a stock dividend,, or a stock
split, then there shall be substituted for or added to each share of Common
Stock of the Company theretofore appropriated or thereafter subject or which may
become subject to an option under the Plan, the number and kind of shares of
stock or other securities into which each outstanding share of Common Stock of
the Company shall be so changed, or for which each such share shall be exchanged
or to which each such share shall be entitled, as the case may be. Outstanding
options shall also be amended as to price and other terms if necessary to
reflect the foregoing events. In the event there shall be any other change in
the number or kind of the outstanding shares of Common Stock of the Company, or
of any stock or other securities into which such Common Stock of the Company, or
of any stock or other securities into which such Common Stock shall have
changed, or for which it shall have been exchanged, then if the Board shall, in
its sole discretion, determine that such change equitably requires an adjustment
in any option theretofore granted or which may be granted under the Plan, such
adjustment shall be made in accordance with such determination. No right to
purchase fractional shares shall result from any adjustment in options pursuant
to this Section 9. In case of any such adjustment, the shares subject to the
option shall be rounded down to the nearest whole share. Notice of any
adjustment shall be given by the Company to each holder of an option which shall
have been so adjusted and such adjustment (whether or not such notice is given)
shall be effective and binding for all purposes of the Plan.

        10. Amendment of the Plan. The Board at any time, and from time to time,
may amend the Plan, subject to the vote or written consent of a majority of the
outstanding shares of the Company entitled to vote, within twelve (12) months
before or after the date of such amendment's adoption, where such amendment
will:

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            (a) increase the number of shares reserved for options under the
Plan;

            (b) materially increase the benefits accruing to Participants under
the Plan; or

            (c) materially modify the requirements of Section 5 as to
eligibility for participation in the Plan.

        It is expressly contemplated that the Board may amend the Plan in any
respect necessary to provide the Company's employee Participants with maximum
benefits provided or to be provided under Section 422 of the Code and the
regulations promulgated thereunder. relating to employee incentive stock options
and/or to bring the Plan or options granted under it into compliance therewith.

        Rights and obligations under any option granted before any amendment of
the Plan shall not be altered or impaired by amendment of the Plan, except with
the consent, which may be obtained in any manner deemed by the Board to be
appropriate, of the person to whom the option was granted.

        11. Termination or Suspension of the Plan. The Board at any time may
suspend or terminate the Plan. The Plan, unless sooner terminated, shall
terminate at the end of four (4) years from the date the Plan is adopted by the
Board or approved by the stockholders of the company, whichever is earlier. An
option may not be granted under the Plan while the Plan is suspended or after it
is terminated.

        Rights and obligations under any option granted while the Plan is in
effect shall not be altered or impaired by suspension or termination of the
Plan, except with the consent of the person to whom the option was granted,
which may be obtained in any manner that the Board deems appropriate.

        12. Listing, Qualification or Approval of Stock, Approval of Options.
All options granted under the Plan are subject to the requirement that if at any
time the Board shall determine in its discretion that the listing or
qualification of the shares of stock subject thereto on any securities exchange
or under any applicable law, or the consent or approval by any governmental
regulatory body or the shareholders of the Company, is necessary or desirable as
a condition of or in connection with the issuance of shares under the option,
the option may not be exercised in whole or in part unless such listing,
qualification, consent or approval shall have been effected or obtained free of
any condition not acceptable to the Board.

        13. Binding Effect of Conditions. The conditions and stipulations
hereinabove contained or in any option granted pursuant to the plan Shall be and
constitute a covenant running with all of the shares of the Company owned by the
Participant at any time, directly or indirectly whether the same have been
issued or not, and those shares of the Company owned by the Participant shall
not be sold, assigned or transferred by any persons save and except in
accordance with the terms and conditions herein provided, and the Participant
shall agree to use his best efforts to cause the officers of the Company to
refuse to record on the books of the Company any assignments or transfer made or
attempted to be made except as provided in the Plan and to cause said officers
to refuse to cancel old certificates or to issue or deliver new

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certificates therefore where the purchaser or assignee has acquired certificates
for the stock represented thereby, except strictly in accordance with the
provisions of this Plan.

        14. Effective Date of Plan. The Plan shall become effective as
determined by the Board but no options granted under it shall be exercisable
until the Plan has been approved by the vote or written consent of the holders
of a majority of the outstanding shares of the Company entitled to vote.

        15. Privileges of Stock ownership; Securities Law Compliance; Notice of
Sale. No optionee shall be entitled to the privileges of stock ownership as to
any shares not actually issued and delivered to the optionee. No shares shall be
purchased upon the exercise of any option unless and until any then applicable
requirements of any regulatory agencies having jurisdiction and of any exchanges
upon which the Common Stock of the Company may be listed shall have been fully
complied with. The Company shall diligently endeavor to comply with all
applicable securities laws before any options are granted under the Plan and
before shares are issued pursuant to the exercise of such options.

        16. Indemnification. To the extent permitted by applicable law in effect
from time to time, no member of the Board or the Committee shall be liable for
any action or omission of any other member of the Board or Committee nor for any
act or omission on the member's own part, excepting only the member's own
willful misconduct or gross negligence. The Company shall pay expenses incurred
by, and satisfy a judgment or fine rendered or levied against, a present or
former director or member of the Committee in any action against such person
(whether or not the Company is joined as a party defendant) to impose a
liability or penalty on such person for an act alleged to have been committed by
such person while a director or member of the Committee arising with respect to
the Plan or administration thereof or out of membership on the Committee or by
the Company, or all or any combination of the preceding so long as the director
or Committee member was acting in good faith, within what such director or
Committee member reasonably believed to have been within the scope of his
employment or authority and for a purpose which he reasonably believed to be in
the best interests of the Company or its shareholders. Payments authorized
hereunder include amounts paid and expenses incurred in settling any such
threatened action. This section does not apply to any action instituted or
maintained in the right of the Company by a shareholder or holder of a voting
trust certificate representing shares of the Company. The provisions of this
section shall apply to the estate, executor, administrator, heirs, legatees or
devises of a director or Committee member, and the term "person" as used in this
section shall include the ` estate, executor, administrator, heirs, legatees, or
devices of such person.

        17. Miscellaneous. The use of any masculine pronoun or similar term is
intended to be without legal significance as to gender and the use of he or his
shall also mean she and hers.

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                                                                     EXHIBIT 4.3

                             DAZZLE MULTIMEDIA, INC.

                                 1998 STOCK PLAN

        1. PURPOSES OF THE PLAN. The purposes of this 1998 Stock Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be Incentive Stock Options (as
defined under Section 422 of the Code) or Nonstatutory Stock Options, as
determined by the Administrator at the time of grant of an Option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder. Stock purchase rights may also be granted
under the Plan.

        2. DEFINITIONS. As used herein, the following definitions shall apply:

            (a) "ADMINISTRATOR" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

            (b) "BOARD" means the Board of Directors of the Company.

            (c) "BUSINESS PARTNER" means any entity which has a business
relationship with the Company.

            (d) "CODE" means the Internal Revenue Code of 1986, as amended.

            (e) "COMMITTEE" means the Committee appointed by the Board of
Directors in accordance with Section 4(a) and (b) of the Plan.

            (f) "COMMON STOCK" means the Common Stock of the Company.

            (g) "CONSULTANT" means any person, including an advisor, who is
engaged by the Company or any Parent, Subsidiary or Business Partner to render
services and is compensated for such services, and any director of the Company
whether compensated for such services or not, and any employee of a
_________________.

            (h) "CONTINUOUS STATUS AS AN EMPLOYEE OR CONSULTANT" means the
absence of any interruption or termination of service as an Employee or
Consultant. Continuous Status as an Employee or Consultant shall not be
considered interrupted in the case of: (i) sick leave; (ii) military leave;
(iii) any other leave of absence approved by the Administrator, provided that
such leave is for a period of not more than 90 days, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to Company policy adopted from time to time; or (iv)
in the case of transfers between locations of the Company or between the
Company, its Subsidiaries or their respective successors. For purposes of this
Plan, a change in status from an Employee to a Consultant or from a Consultant
to an Employee will not constitute an interruption of Continuous Status as an
Employee or Consultant.

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            (i) "EMPLOYEE" means any person, including officers and directors,
employed by the Company or any Parent or Subsidiary of the Company, with the
status of employment determined based upon such minimum number of hours or
periods worked as shall be determined by the Administrator in its discretion,
subject to any requirements of the Code. The payment by the Company of a
director's fee to a director shall not be sufficient to constitute "employment"
of such director by the Company.

            (j) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

            (k) "FAIR MARKET VALUE" means, as of any date, the fair market value
of Common Stock determined as follows:

                (i) If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the National
Market of the National Association of Securities Dealers, Inc. Automated
Quotation ("Nasdaq") System, its Fair Market Value shall be the closing bid
price for such stock, as quoted on such system or exchange, or the exchange with
the greatest volume of trading in Common Stock for the last market trading day
prior to the time of determination, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable;

                (ii) If the Common Stock is quoted on the Nasdaq System (but not
on the National Market thereof) or regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the
mean between the closing bid price for the Common Stock for the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable; or

                (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

            (l) "INCENTIVE STOCK OPTION" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code, as
designated in the applicable written Option Agreement.

            (m) "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option, as designated in the applicable written
Option Agreement.

            (n) "OPTIONED STOCK" means the Common Stock subject to an Option or
a Stock Purchase Right.

            (o) "OPTIONEE" means an Employee or Consultant who receives an
Option or a Stock Purchase Right.

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            (p) "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code, or any successor provision.

            (q) "PLAN" means this 1998 Stock Plan.

            (r) "REPORTING PERSON" means an officer, director, or greater than
10% shareholder of the Company within the meaning of Rule 16a-2 under the
Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the
Exchange Act.

            (s) "RESTRICTED STOCK" means shares of Common Stock acquired
pursuant to a grant of a Stock Purchase Right under Section 10 below.

            (t) "RESTRICTED STOCK PURCHASE AGREEMENT" means a written agreement
between a holder of a Stock Purchase Right and the Company reflecting the terms
of a Stock Purchase Right granted under the Plan and includes any documents
attached to such agreement.

            (u) "RULE 16b-3" means Rule 16b-3 promulgated under the Exchange
Act, as the same may be amended from time to time, or any successor provision.

            (v) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

            (w) "STOCK EXCHANGE" means any stock exchange or consolidated stock
price reporting system on which prices for the Common Stock are quoted at any
given time.

            (x) "STOCK PURCHASE RIGHT" means the right to purchase Common Stock
pursuant to Section 10 below.

            (y) "SUBSIDIARY" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code, or any successor
provision.

        3. STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares that may be optioned and sold
under the Plan is 3,000,000 shares of Common Stock. The Shares may be
authorized, but unissued, or reacquired Common Stock. If an Option should expire
or become unexercisable for any reason without having been exercised in full,
the unpurchased Shares that were subject thereto shall, unless the Plan shall
have been terminated, become available for future grant under the Plan. In
addition, any Shares of Common Stock which are retained by the Company upon
exercise of an Option or Stock Purchase Right in order to satisfy the exercise
or purchase price for such Option or Stock Purchase Right or any withholding
taxes due with respect to such exercise shall be treated as not issued and shall
continue to be available under the Plan. Shares repurchased by the Company
pursuant to any repurchase right which the Company may have shall not be
available for future grant under the Plan.

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        4. ADMINISTRATION OF THE PLAN.

            (a) INITIAL PLAN PROCEDURE. Prior to the date, if any, upon which
the Company becomes subject to the Exchange Act, the Plan shall be administered
by the Board or Committee appointed by the Board.

            (b) PLAN PROCEDURE AFTER THE DATE, IF ANY, UPON WHICH THE COMPANY
BECOMES SUBJECT TO THE EXCHANGE ACT.

                (i) MULTIPLE ADMINISTRATIVE BODIES. If permitted by Rule 16b-3,
grants under the Plan may be made by different bodies with respect to directors,
non-director officers and Employees or Consultants who are not Reporting
Persons.

                (ii) ADMINISTRATION WITH RESPECT TO REPORTING PERSONS. With
respect to grants of Options or Stock Purchase Rights to Employees who are
Reporting Persons, such grants shall be made by (A) the Board if the Board may
make grants to Reporting Persons under the Plan in compliance with Rule 16b-3,
or (B) a Committee designated by the Board to make grants to Reporting Persons
under the Plan, which Committee shall be constituted in such a manner as to
permit grants under the Plan to comply with Rule 16b-3. Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly
make grants to Reporting Persons under the Plan, all to the extent permitted by
Rule 16b-3.

                (iii) ADMINISTRATION WITH RESPECT TO CONSULTANTS AND OTHER
EMPLOYEES. With respect to grants of Options or Stock Purchase Rights to
Employees or Consultants who are not Reporting Persons, the Plan shall be
administered by (A) the Board or (B) a Committee designated by the Board, which
Committee shall be constituted in such a manner as to satisfy the legal
requirements relating to the administration of Incentive Stock Option plans, if
any, of applicable corporate and securities laws, of the Code and of any
applicable Stock Exchange (the "Applicable Laws"). Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly
administer the Plan, all to the extent permitted by the Applicable Laws.

            (c) POWERS OF THE ADMINISTRATOR. Subject to the provisions of the
Plan and in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities,
including the approval, if required, of any Stock Exchange, the Administrator
shall have the authority, in its discretion:

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                (i) to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(k) of the Plan;

                (ii) to select the Consultants and Employees to whom Options and
Stock Purchase Rights may from time to time be granted hereunder;

                (iii) to determine whether and to what extent Options and Stock
Purchase Rights or any combination thereof are granted hereunder;

                (iv) to determine the number of shares of Common Stock to be
covered by each such award granted hereunder;

                (v) to approve forms of agreement for use under the Plan;

                (vi) to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder;

                (vii) to determine whether and under what circumstances an
Option may be settled in cash under Section 9(f) instead of Common Stock;

                (viii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted;

                (ix) to determine the terms and restrictions applicable to Stock
Purchase Rights and the Restricted Stock purchased by exercising such Stock
Purchase Rights;

                (x) to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan; and

                (xi) in order to fulfill the purposes of the Plan and without
amending the Plan, to modify grants of Options or Stock Purchase Rights to
participants who are foreign nationals or employed outside of the United States
in order to recognize differences in local law, tax policies or customs.

            (d) EFFECT OF ADMINISTRATOR'S DECISION. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all holders of Options or Stock Purchase Rights.

        5. ELIGIBILITY.

            (a) RECIPIENTS OF GRANTS. Nonstatutory Stock Options and Stock
Purchase Rights may be granted to Employees and Consultants. Incentive Stock
Options may be granted only to Employees. An Employee or Consultant who has been
granted an Option or Stock Purchase Right may, if he or she is otherwise
eligible, be granted additional Options or Stock Purchase Rights.

                                       5
<PAGE>   6

            (b) TYPE OF OPTION. Each Option shall be designated in the Option
Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designations, to the extent that the aggregate
Fair Market Value of Shares with respect to which Options designated as
Incentive Stock Options are exercisable for the first time by any Optionee
during any calendar year (under all plans of the Company or any Parent or
Subsidiary) exceeds $100,000, such excess Options shall be treated as
Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock
Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of the Shares subject to an Incentive Stock Option shall
be determined as of the date of the grant of such Option.

            (c) The Plan shall not confer upon the holder of any Option or Stock
Purchase Right any right with respect to continuation of employment or
consulting relationship with the Company, nor shall it interfere in any way with
such holder's right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

        6. TERM OF PLAN. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company as described in Section 19 of the Plan. It shall
continue in effect for a term of ten years unless sooner terminated under
Section 15 of the Plan.

        7. TERM OF OPTION. The term of each Option shall be the term stated in
the Option Agreement; provided, however, that the term shall be no more than ten
years from the date of grant thereof or such shorter term as may be provided in
the Option Agreement and provided further that, in the case of an Incentive
Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than 10% of the total combined voting power of all
classes of stock of the Company or any Parent or Subsidiary, the term of the
Option shall be five years from the date of grant thereof or such shorter term
as may be provided in the Option Agreement.

        8. OPTION EXERCISE PRICE AND CONSIDERATION.

            (a) The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board and set forth in the applicable agreement, but shall be subject to the
following:

                (i) In the case of an Incentive Stock Option that is:

                    (A) granted to an Employee who, at the time of the grant of
such Incentive Stock Option, owns stock representing more than 10% of the total
combined voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 10% of the Fair
Market Value per Share on the date of grant.

                    (B) granted to any other Employee, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

                                       6
<PAGE>   7

                (ii) In the case of a Nonstatutory Stock Option that is:

                    (A) granted to a person who, at the time of the grant of
such Option, owns stock representing more than 10% of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be no less than 110% of the Fair Market Value per
Share on the date of the grant.

                    (B) granted to any person, the per Share exercise price
shall be no less than 85% of the Fair Market Value per Share on the date of
grant.

            (b) The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash, (2)
check, (3) promissory note, (4) other Shares that (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six months on the date of surrender or such other period as may be required
to avoid a charge to the Company's earnings, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) authorization for the Company to
retain from the total number of Shares as to which the Option is exercised that
number of Shares having a Fair Market Value on the date of exercise equal to the
exercise price for the total number of Shares as to which the Option is
exercised, (6) delivery of a properly executed exercise notice together with
such other documentation as the Administrator and the broker, if applicable,
shall require to effect an exercise of the Option and delivery to the Company of
the sale or loan proceeds required to pay the exercise price and any applicable
income or employment taxes, (7) delivery of an irrevocable subscription
agreement for the Shares that irrevocably obligates the option holder to take
and pay for the Shares not more than twelve months after the date of delivery of
the subscription agreement, (8) any combination of the foregoing methods of
payment, or (9) such other consideration and method of payment for the issuance
of Shares to the extent permitted under the Applicable Laws. In making its
determination as to the type of consideration to accept, the Administrator shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

        9. EXERCISE OF OPTION.

            (a) PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any Option
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator and reflected in the Option Agreement, which
may include vesting requirements and/or performance criteria with respect to the
Company and/or the Optionee; provided, however, that such Option shall become
exercisable at the rate of at least 20% per year over five years from the date
the Option is granted. In the event that any of the Shares issued upon exercise
of an Option should be subject to a right of repurchase in the Company's favor,
such repurchase right shall lapse at the rate of at least 20% per year over five
years from the date the Option is granted. Notwithstanding

                                       7
<PAGE>   8

the above, in the case of an Option granted to an officer, director or
Consultant of the Company or any Parent or Subsidiary of the Company, the Option
may become fully exercisable, and a repurchase right, if any, in favor of the
Company shall lapse, at any time or during any period established by the
Administrator.

        An Option may not be exercised for a fraction of a Share.

        An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and the Company has
received full payment for the Shares with respect to which the Option is
exercised. Full payment may, as authorized by the Board, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duty authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 12 of the Plan.

        Exercise of an Option in any manner shall result in a decrease in the
number of Shares that thereafter may be available, both for purposes of the Plan
and for sale under the Option, by the number of Shares as to which the Option is
exercised.

            (b) TERMINATION OF EMPLOYMENT OR CONSULTING RELATIONSHIP. Subject to
Section 9(c) below, in the event of termination of an Optionee's Continuous
Status as an Employee or Consultant with the Company, such Optionee may, but
only within three months (or such other period of time not less than 30 days as
is determined by the Administrator, with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option and not
exceeding three months) after the date of such termination (but in no event
later than the expiration date of the term of such Option as set forth in the
Option Agreement), exercise his or her Option to the extent that the Optionee
was entitled to exercise it at the date of such termination. To the extent that
the Optionee was not entitled to exercise the Option at the date of such
termination, or if the Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate. No
termination shall be deemed to occur and this Section 9(b) shall not apply if
(i) the Optionee is a Consultant who becomes an Employee, or (ii) the Optionee
is an Employee who becomes a Consultant.

            (c) DISABILITY OF OPTIONEE.

                (i) Notwithstanding Section 9(b) above, in the event of
termination of an Optionee's Continuous Status as an Employee or Consultant as a
result of his or her total and permanent disability (within the meaning of
Section 22(e)(3) of the Code), such Optionee may, but only within twelve months
from the date of such termination (but in no event later than the expiration
date of the term of such Option as set forth in the Option Agreement), exercise
the Option to the extent otherwise entitled to exercise it at the date of such
termination. To the extent that the Optionee was not

                                       8
<PAGE>   9

entitled to exercise the Option at the date of termination, or if the Optionee
does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

                (ii) In the event of termination of an Optionee's Continuous
Status as an Employee or Consultant as a result of a disability which does not
fall within the meaning of total and permanent disability (as set forth in
Section 22(e)(3) of the Code), such Optionee may, but only within six months
from the date of such termination (but in no event later than the expiration
date of the term of such Option as set forth in the Option Agreement), exercise
the Option to the extent otherwise entitled to exercise it at the date of such
termination. However, to the extent that such Optionee fails to exercise an
Option which is an Incentive Stock Option (within the meaning of Section 422 of
the Code) within three months of the date of such termination, the Option will
not qualify for Incentive Stock Option treatment under the Code. To the extent
that the Optionee was not entitled to exercise the Option at the date of
termination, or if the Optionee does not exercise such Option to the extent so
entitled within six months from the date of termination, the Option shall
terminate.

            (d) DEATH OF OPTIONEE. In the event of the death of an Optionee
during the period of Continuous Status as an Employee or Consultant since the
date of grant of the Option, or within 30 days following termination of the
Optionee's Continuous Status as an Employee or Consultant, the Option may be
exercised, at any time within six months following the date of death (but in no
event later than the expiration date of the term of such Option as set forth in
the Option Agreement), by such Optionee's estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent
of the right to exercise that had accrued at the date of death or, if earlier,
the date of termination of the Optionee's Continuous Status as an Employee or
Consultant. To the extent that the Optionee was not entitled to exercise the
Option at the date of death or termination, as the case may be, or if the
Optionee does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

            (e) RULE 16b-3. Options granted to Reporting Persons shall comply
with Rule 16b-3 and shall contain such additional conditions or restrictions as
may be required thereunder to qualify for the maximum exemption for Plan
transactions.

        10. STOCK PURCHASE RIGHTS.

            (a) RIGHTS TO PURCHASE. Stock Purchase Rights may be issued either
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing of the terms, conditions and restrictions related to the
offer, including the number of Shares that such person shall be entitled to
purchase, the price to be paid (which price shall not be less than 85% of the
Fair Market Value of the Shares as of the date of the offer, or, in the case of
a person owning stock representing more than (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
price shall

                                       9
<PAGE>   10

not be less than (100%) of the Fair Market Value of the Shares as of the date of
the offer), and the time within which such person must accept such offer, which
shall in no event exceed 30 days from the date upon which the Administrator made
the determination to grant the Stock Purchase Right. The offer shall be accepted
by execution of a Restricted Stock Purchase Agreement in the form determined by
the Administrator.

            (b) REPURCHASE OPTION. Unless the Administrator determines
otherwise, the Restricted Stock Purchase Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's employment with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original purchase price paid by
the purchaser and may be paid by cancellation of any indebtedness of the
purchaser to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine; provided, however, that with respect to an Optionee
who is not an officer, director or Consultant of the Company or of any Parent,
Subsidiary or Business Partner of the Company, it shall lapse at a minimum rate
of 20% per year.

            (c) OTHER PROVISIONS. The Restricted Stock Purchase Agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion. In
addition, the provisions of Restricted Stock Purchase Agreements need not be the
same with respect to each purchaser.

            (d) RIGHTS AS A SHAREHOLDER. Once the Stock Purchase Right is
exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 12
of the Plan.

        11. STOCK WITHHOLDING TO SATISFY WITHHOLDING TAX OBLIGATIONS. At the
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph. When an Optionee incurs tax liability in
connection with an Option or Stock Purchase Right, which tax liability is
subject to tax withholding under applicable tax laws, and the Optionee is
obligated to pay the Company an amount required to be withheld under applicable
tax laws, the Optionee may satisfy the withholding tax obligation by one or some
combination of the following methods: (a) by cash or check payment, (b) out of
the Optionee's current compensation, (c) if permitted by the Administrator, in
its discretion, by surrendering to the Company Shares that (i) in the case of
Shares previously acquired from the Company, have been owned by the Optionee for
more than six months on the date of surrender, and (ii) have a Fair Market Value
on the date of surrender equal to or less than the Optionee's marginal tax rate
times the ordinary income recognized, or (d) by electing to have the Company
withhold from the Shares to be issued upon exercise of the Option, or the Shares
to be issued in connection with the Stock Purchase Right, if any, that number of
Shares having a Fair Market Value equal to the amount required to be withheld.
For this purpose, the fair

                                       10
<PAGE>   11

market value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined (the "Tax Date").

        Any surrender by a Reporting Person of previously owned Shares to
satisfy tax withholding obligations arising upon exercise of this Option must
comply with the applicable provisions of Rule 16b-3.

        All elections by an Optionee to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

            (a) the election must be made on or prior to the applicable Tax
Date;

            (b) once made, the election shall be irrevocable as to the
particular Shares of the Option or Stock Purchase Right as to which the election
is made; and

            (c) all elections shall be subject to the consent or disapproval of
the Administrator.

        In the event the election to have Shares withheld is made by an Optionee
and the Tax Date is deferred under Section 83 of the Code because no election is
filed under Section 83(b) of the Code, the Optionee shall receive the full
number of Shares with respect to which the Option or Stock Purchase Right is
exercised but such Optionee shall be unconditionally obligated to tender back to
the Company the proper number of Shares on the Tax Date.

        12. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR CERTAIN OTHER
TRANSACTIONS.

            (a) CHANGES IN CAPITALIZATION. Subject to any required action by the
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock that have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or that have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination, recapitalization or reclassification of the Common Stock, or any
other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company; provided, however,
that conversion of any convertible securities of the Company shall not be deemed
to have been "effected without receipt of consideration." Such adjustment shall
be made by the Board, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common Stock subject
to an Option or Stock Purchase Right.

                                       11
<PAGE>   12

            (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Board shall notify the Optionee
at least 15 days prior to such proposed action. To the extent it has not been
previously exercised, the Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

            (c) MERGER OR SALE OF ASSETS. In the event of a proposed sale of all
or substantially all of the Company's assets or a merger of the Company with or
into another corporation where the successor corporation issues its securities
to the Company's shareholders, each outstanding Option or Stock Purchase Right
shall be assumed or an equivalent option or right shall be substituted by such
successor corporation or a parent or subsidiary of such successor corporation,
unless the successor corporation does not agree to assume the Option or Stock
Purchase Right or to substitute an equivalent option or right, in which case
such Option or Stock Purchase Right shall terminate upon the consummation of the
merger or sale of assets. For purposes of this Section 12(c), an Option or a
Stock Purchase Right shall be considered assumed, without limitation, if, at the
time of issuance of the stock or other consideration upon such merger or sale of
assets, each holder of an Option or a Stock Purchase Right would be entitled to
receive upon exercise of the Option or Stock Purchase Right the same number and
kind of shares of stock or the same amount of property, cash or securities as
such holder would have been entitled to receive upon the occurrence of such
transaction if the holder had been, immediately prior to such transaction, the
holder of the number of Shares of Common Stock covered by the Option or the
Stock Purchase Right at such time (after giving effect to any adjustments in the
number of Shares covered by the Option or Stock Purchase Right as provided for
in this Section 12).

            (d) CERTAIN DISTRIBUTIONS. In the event of any distribution to the
Company's shareholders of securities of any other entity or other assets (other
than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per share of Common Stock covered by each
outstanding Option or Stock Purchase Right to reflect the effect of such
distribution.

            (e) STOCK OPTION AGREEMENT TERMS. To the extent the provisions of
any stock option agreement with respect to the subject matter of this Section 12
differ from the provisions of this Section, the provisions set forth in the
stock option agreement shall govern.

        13. NON-TRANSFERABILITY OF OPTIONS AND STOCK PURCHASE RIGHTS. Options
and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised or purchased during the lifetime of
the Optionee or the holder of Stock Purchase Rights only by the Optionee or the
holder of Stock Purchase Rights.

        14. TIME OF GRANTING OPTIONS AND STOCK PURCHASE RIGHTS. The date of
grant of an Option or Stock Purchase Right shall, for all purposes, be the date
on which the Administrator makes the determination granting such Option or Stock
Purchase

                                       12
<PAGE>   13

Right, or such other date as is determined by the Board; provided, however, that
in the case of any Incentive Stock Option, the grant date shall be the later of
the date on which the Administrator makes the determination granting such
Incentive Stock Option or the date of commencement of the Optionee's employment
relationship with the Company. Notice of the determination shall be given to
each Employee or Consultant to whom an Option or Stock Purchase Right is so
granted within a reasonable time after the date of such grant.

        15. AMENDMENT AND TERMINATION OF THE PLAN.

            (a) AUTHORITY TO AMEND OR TERMINATE. The Board may at any time
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made that would impair the rights of any
Optionee under any grant theretofore made, without his or her consent. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 or
with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of any Stock Exchange), the Company shall obtain
shareholder approval of any Plan amendment in such a manner and to such a degree
as required.

            (b) EFFECT OF AMENDMENT OR TERMINATION. No amendment or termination
of the Plan shall adversely affect Options already granted, unless mutually
agreed otherwise between the Optionee and the Board, which agreement must be in
writing and signed by the Optionee and the Company.

        16. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option or Stock Purchase Right unless the
exercise of such Option or Stock Purchase Right and the issuance and delivery of
such Shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any Stock Exchange.

        As a condition to the exercise of an Option, the Company may require the
person exercising such Option to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required by law.

        17. RESERVATION OF SHARES. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

        18. AGREEMENTS. Options and Stock Purchase Rights shall be evidenced by
written Option Agreements and Restricted Stock Purchase Agreements,
respectively, in such form(s) as the Administrator shall approve from time to
time.

                                       13
<PAGE>   14

        19. SHAREHOLDER APPROVAL. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve months before or after
the date the Plan is adopted. Such shareholder approval shall be obtained in the
degree and manner required under applicable state and federal law and the rules
of any Stock Exchange upon which the Common Stock is listed. All Options and
Stock Purchase Rights issued under the Plan shall become void in the event such
approval is not obtained.

        20. INFORMATION AND DOCUMENTS TO OPTIONEES AND PURCHASERS. The Company
shall provide financial statements at least annually to each Optionee and to
each individual who acquired Shares pursuant to the Plan, during the period such
Optionee or purchaser has one or more Options or Stock Purchase Rights
outstanding, and in the case of an individual who acquired Shares pursuant to
the Plan, during the period such individual owns such Shares. The Company shall
not be required to provide such information if the issuance of Options or Stock
Purchase Rights under the Plan is limited to key employees whose duties in
connection with the Company assure their access to equivalent information. In
addition, at the time of issuance of any securities under the Plan, the Company
shall provide to the Optionee or the purchaser a copy of the Plan and any
agreement(s) pursuant to which securities granted under the Plan are issued.

                                       14

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