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                                                                    EXHIBIT 4.7

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT
THERETO UNDER THE SECURITIES ACT OR AN EXEMPTION FROM REGISTRATION FOR SUCH
SALE, PLEDGE OR OTHER TRANSFER AS SUPPORTED BY SUCH CERTIFICATIONS, OPINIONS
AND OTHER DOCUMENTATION, IF ANY, REASONABLY REQUESTED AND ACCEPTABLE TO THE
CORPORATION.

                      WARRANT TO PURCHASE COMMON STOCK OF
                            HQ GLOBAL HOLDINGS, INC.
               (VOID AFTER THE EXPIRATION DATE SET FORTH HEREIN)

                                                                             B-

         This certifies that            or its permitted assigns (the "Holder"),
for value received, is entitled to purchase from HQ GLOBAL HOLDINGS, INC., a
Delaware corporation (the "Company"),              fully paid and nonassessable
shares of the Company's voting common stock, par value $.01 per share (the
"Common Stock"), subject to adjustment from time to time in accordance with
Section 4 hereof, for cash at a price of $.01 per share (as may be adjusted
from time to time in accordance with Section 4 hereof, the "Stock Purchase
Price") at any time or from time to time, subject to Section 1 hereof, up to
and including 5:00 p.m. (New York City time) on May 31, 2010 (the "Expiration
Date"). The Holder may purchase the shares of Common Stock pursuant hereto upon
surrender to the Company at its principal office (or at such other location as
the Company may advise the Holder in writing) of (i) this Warrant properly
endorsed with the Form of Subscription attached hereto as Exhibit A, (ii)
unless this Warrant has been registered for resale or unless the shares of
Common Stock to be received upon exercise of the Warrants have been registered
for sale under the Securities Act, the Form of Investment Representation
attached hereto as Exhibit B duly completed and executed and (iii) cash or
check of the aggregate Stock Purchase Price for the number of shares of Common
Stock for which this Warrant is being exercised.

         This Warrant is subject to the following terms and conditions:

         1. EXERCISE. Subject to the conditions set forth herein, this Warrant
is exercisable at any time on or after March 1, 2002 and prior to the
Expiration Date with respect to all or any part of the shares of Common Stock
set forth in the first paragraph of this Warrant; provided, that this Warrant
shall not be exercisable with respect to any such shares of Common Stock if a
Qualified Initial Public Offering (as defined in the Certificate of
Designations establishing and fixing the rights and preferences of the
Company's Series A Convertible Preferred Stock) shall have been consummated
prior to March 1, 2002. Any unexercised portion of this Warrant shall terminate
on the Expiration Date. The Company agrees that the shares of Common Stock
purchased under this Warrant shall be, and are deemed to be, issued to the
Holder hereof as the record owner of such shares as of the close of business on
the date on which (a) this Warrant

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shall have been surrendered, properly endorsed, (b) the completed, executed
Form of Subscription and Form of Investment Representation, if applicable,
shall have been delivered and (c) full payment of the Stock Purchase Price in
respect of such exercise shall have been made in cash or check for such shares.
Certificates for the shares of Common Stock so purchased, together with any
other securities or property to which the Holder hereof is entitled upon such
exercise, shall be delivered to the Holder hereof by the Company at the
Company's expense promptly after the rights represented by this Warrant have
been so exercised. In case of a purchase of less than all the shares of Common
Stock which may be purchased under this Warrant, the Company shall cancel this
Warrant and promptly execute and deliver a new Warrant or Warrants of like
tenor for the balance of the shares of Common Stock purchasable under the
Warrant surrendered upon such purchase to the Holder hereof. Each certificate
for shares of Common Stock so delivered shall be in such denominations of
Common Stock as may be requested by the Holder hereof and shall be registered
in the name of such Holder.

         2. WARRANT AGENCY; TRANSFER, EXCHANGE AND REPLACEMENT OF WARRANTS.

                  2.1 WARRANT AGENCY. If the registered holders of Warrants to
purchase a majority of the shares of Common Stock issuable upon exercise of the
Warrants shall request appointment of an independent warrant agency with
respect to the Warrants, the Company shall promptly appoint and thereafter
maintain, at its own expense, an agency in New York, New York, which agency may
be the Company's then existing transfer agent (the "Warrant Agency"), for
certain purposes specified herein, and shall give prompt notice of such
appointment (and appointment of any successor Warrant Agency) to all registered
holders of Warrants. Until an independent Warrant Agency is so appointed, the
Company shall perform the obligations of the Warrant Agency provided herein at
its address at 15950 N. Dallas Parkway, Suite 400, Dallas, Texas 75248, or such
other address as the Company shall specify by notice to the registered holders
of the Warrants (the "Company Office").

                  2.2 OWNERSHIP OF WARRANT. The Company may deem and treat the
Holder as the record owner hereof (notwithstanding any notations of ownership
or writing hereon made by any Person other than the Warrant Agency) for all
purposes and shall not be affected by any notice to the contrary, until
presentation of this Warrant for registration of transfer as provided in this
Section 2.

                  2.3 TRANSFER OF WARRANT. The Company agrees to maintain at
the Warrant Agency (or, if the Warrant Agency has not been appointed, at the
Company Office) books for the registration of transfers of the Warrants, and
transfer of this Warrant and all rights hereunder shall be registered, in whole
or in part, on such books, upon surrender of this Warrant at the Warrant Agency
(or, if applicable, the Company Office), together with a written assignment of
this Warrant duly executed by the Holder or his duly authorized agent or
attorney, with (unless the Holder is the original holder of this Warrant or
another institutional investor) signatures guaranteed by a bank or trust
company or a broker or dealer registered with the National Association of
Securities Dealers, Inc., and funds sufficient to pay any transfer taxes
payable upon such transfer. Upon surrender, the Company shall execute and
deliver a new Warrant or Warrants in the name of the assignee or assignees and
in the denominations specified in the instrument of assignment, and this
Warrant shall promptly be cancelled. The Warrant Agency (or, if the Warrant
Agency has not been appointed, the Company) shall not be required to register

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any transfers if the Holder fails to furnish to the Company, after a request
therefor, an opinion of counsel reasonably satisfactory to the Company that
such transfer is covered by an effective registration statement under the
Securities Act and qualified under all applicable state securities laws or is
exempt from the registration requirements of the Securities Act and applicable
state securities laws. This Section 2.3 is subject to the provisions of Section
9 hereof.

                  2.4 DIVISION OR COMBINATION OF WARRANTS. This Warrant may be
divided or combined with other Warrants upon surrender hereof and of any
Warrant or Warrants with which this Warrant is to be combined at the Warrant
Agency (or, if applicable, at the Company Office), together with a written
notice specifying the names and denominations in which the new Warrant or
Warrants are to be issued, signed by the Holder hereof and the registered
holders thereof or their respective duly authorized agents or attorneys.
Subject to compliance with Section 2.3 hereof as to any transfer which may be
involved in the division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

                  2.5 LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANTS. Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security reasonably satisfactory to
the Company (provided that, if the Holder is the original Holder or an
institutional investor, its own written agreement of indemnity shall be deemed
satisfactory), or, in the case of any such mutilation, upon surrender and
cancellation of such Warrant, the Company will make and deliver, in lieu of
such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor
and representing the right to purchase the same aggregate number of shares of
Common Stock as provided for in such lost, stolen, destroyed or mutilated
Warrant.

                  2.6 EXPENSES OF DELIVERY OF WARRANTS. The Company shall pay
all expenses, taxes (other than transfer taxes in connection with the issuance
of any certificates of any shares of Common Stock in any name other than that
of the Holder) and other charges payable in connection with the preparation,
issuance and delivery of this Warrant and shares of Common Stock purchasable
upon exercise of this Warrant.

         3. SHARES TO BE FULLY PAID; RESERVATION OF SHARES. The Company
covenants and agrees that all shares of Common Stock which may be issued upon
the exercise of the rights represented by this Warrant will, upon issuance, be
duly authorized, validly issued, fully paid and nonassessable and free from all
preemptive rights of any stockholder. The Company further covenants and agrees
that, during the period within which the rights evidenced by this Warrant may
be exercised, the Company will at all times during such period have authorized
and reserved, for the purpose of issue or transfer upon exercise of the
purchase rights evidenced by this Warrant, a sufficient number of shares of
authorized but unissued Common Stock, or other securities and property, when
and as required to provide for the exercise of the rights evidenced by this
Warrant. If at any time the number of authorized but unissued shares of Common
Stock shall not be sufficient to effect the exercise of all or any portion of
this Warrant, the Company will take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of Common Stock to such number of shares of Common Stock as shall be
sufficient for such purposes. The Company will take all such action as may be
necessary to assure that such shares of Common Stock may be issued as provided
herein without violation

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of any applicable law or regulation or of any requirements of any domestic
securities exchange upon which the securities of the Company may be listed;
provided, however, that the Company shall not be required to effect a
registration under federal or state securities laws with respect to such
exercise except as otherwise provided by that certain Registration Rights
Agreement, of even date herewith, between the Company and the registered
holders of the Warrants.

         4. ADJUSTMENT OF STOCK PURCHASE PRICE AND NUMBER OF SHARES. The number
of shares of Common Stock purchasable upon the exercise of this Warrant shall
be subject to adjustment in accordance with this Section 4 and from time to
time upon the occurrence of certain events described in this Section 4.

                  4.1 COMMON STOCK DIVIDENDS; SUBDIVISION OR COMBINATION OF
STOCK. In case the Company shall at any time pay a dividend of shares of Common
Stock on all of its outstanding shares of Common Stock or subdivide its
outstanding shares of Common Stock into a greater number of shares of Common
Stock, the number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product obtained by multiplying the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such dividend or subdivision by a fraction, the numerator
of which is the number of shares of Common Stock outstanding immediately after
such dividend or subdivision and the denominator of which is the number of
shares of Common Stock outstanding immediately prior to such dividend or
subdivision.

                  4.2 CASH DISTRIBUTIONS. If the Company shall distribute a
dividend in cash or evidences of indebtedness to the holders of all of its
Common Stock, the number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product obtained by multiplying the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such dividend by a fraction, the numerator of which is the
number of shares of Common Stock outstanding at the time of the payment of such
dividend plus the number of shares of Common Stock which the aggregate dividend
payment by the Company would purchase at the then current market value per
share of Common Stock and the denominator of which is the number of shares of
Common Stock outstanding at the time of such dividend.

                  4.3 DISTRIBUTIONS OF OPTIONS OR CONVERTIBLE SECURITIES. In
case the Company shall distribute rights, options or warrants (any such rights,
options or warrants are referred to herein as "Options") or any stock or
securities convertible into or exercisable or exchangeable for Common Stock
(other than a dividend subject to Section 4.1 above or any warrants issued to
holders of the Corporation's high yield, mezzanine or bridge debt in accordance
with Section 5.1 of the agreement by and among FrontLine Capital Group, a
Delaware corporation, HQ Global Holdings, Inc., a Delaware corporation and the
Holders of the Series A Cumulative Preferred Stock of HQ Global Holdings, Inc.
(the "Stockholders Agreement") (any such stock or securities are referred to
herein as "Convertible Securities") to the holders of all of its Common Stock
entitling them to subscribe for, purchase, convert into or exchange for shares
of Common Stock at a price per share less than the current market price per
share of Common Stock as of the record date for such distribution, the number of
shares of Common Stock for which this Warrant is exercisable shall be adjusted
to equal the product obtained by multiplying the number of shares of Common
Stock for which this Warrant is

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exercisable immediately prior to the distribution of such Options or
Convertible Securities by a fraction, the numerator of which is the number of
shares of Common Stock outstanding on the date of the issuance of such options
plus the number of additional shares of Common Stock issuable upon exercise of
such Options or conversion of Convertible Securities and the denominator of
which is the number of shares of Common Stock outstanding on the date of
issuance of such Options or conversion of Convertible Securities plus the number
of shares of Common Stock which the aggregate consideration to be received by
the Company in connection with such issuance or conversion would purchase at the
then current market value per share of Common Stock. Options or Convertible
Securities distributed by the Company to all holders of its Common Stock
entitling the holders thereof to subscribe for, purchase, convert into or
exchange for shares of Common Stock, which Options or Convertible Securities (i)
are deemed to be transferred with such shares of Common Stock, (ii) are not
exercisable and (iii) are also issued in respect of future issuances of Common
Stock, in each case in clauses (i) through (iii) until the occurrence of a
specified event or events ("Trigger Event"), shall for purposes of this Section
4.3 not be deemed distributed until the occurrence of the earliest Trigger
Event. An adjustment made pursuant to this Section 4.3 shall be effective
immediately after such record date.

                  4.4 SALE OF COMMON STOCK AT LESS THAN CURRENT MARKET PRICE.
In case the Company shall sell shares of its Common Stock at a price per share
less than the current market price per share of Common Stock (other than shares
of Common Stock issued (i) pursuant to the stock option plan adopted by the
Company in accordance with its certificate of incorporation, as amended, (ii)
upon exercise of any warrants to purchase Common Stock of the Company,
including any warrants issued in connection with the acquisition of another
company to holders of the Corporation's high yield, mezzanine or bridge debt in
accordance with Section 5.1 of the Stockholders Agreement, or (iii) upon
conversion of the Company's Series A Convertible Cumulative Preferred Stock),
immediately prior to such sale, the number of shares of Common Stock for which
this Warrant is exercisable shall be adjusted to equal the product obtained by
multiplying the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the issuance of such shares of Common Stock by
a fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after the issuance of such shares of Common Stock and
the denominator of which is the number of shares of Common Stock outstanding
immediately prior to such issuance plus the number of shares of Common Stock
which the aggregate consideration to be received by the Company in connection
with such issuance would purchase at the then current market value per share of
Common Stock.

                  4.5 REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER
OR SALE. If any recapitalization, reclassification or reorganization of the
capital stock of the Company, or any consolidation or merger of the Company
with another corporation, or the sale of all or substantially all of its
assets, shall be effected (an "Organic Change"), and in connection with such
Organic Change the Common Stock of the Company shall be converted into common
stock of another entity, then, as a condition of such Organic Change, lawful
and adequate provisions shall be made by the Company whereby the Holder hereof
shall thereafter have the right to purchase and receive (in lieu of the shares
of the Common Stock of the Company immediately theretofore purchasable and
receivable upon the exercise of the rights represented hereby) such shares of
common stock or other securities or property as may be issued or payable with
respect to or in exchange for the number of shares of Common Stock which the
Holder would have

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received immediately following such Organic Change had such Holder purchased
and received shares of Common Stock of the Company upon full exercise of the
then remaining portion of this Warrant immediately prior to the effective date
of such Organic Change. In the event of any such Organic Change, the Company
shall make appropriate provision with respect to the rights and interests of
the Holder of this Warrant that the provisions hereof shall thereafter be
applicable to any shares of common stock or other securities or property
thereafter deliverable upon the exercise hereof. The Company will not effect
any such consolidation, merger or sale unless, prior to the consummation
thereof, the successor entity (if other than the Company) resulting from such
consolidation or merger or the entity purchasing such assets shall assume by
written instrument reasonably satisfactory in form and substance to the
registered holders of a majority of the Warrants of like tenor to purchase
Common Stock then outstanding, executed and mailed or delivered to the Holder
hereof at the last address of such Holder appearing on the books of the
Company, the obligation to deliver to such Holder such shares of common stock
or other securities or property as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase.

                  In the event that at any time, as a result of an adjustment
made pursuant to Section 4, the Holder of this Warrant becomes entitled to
receive any shares of capital stock other than Common Stock of the Company, the
number and kind of such other shares so receivable shall thereafter be subject
to adjustment from time to time in a manner and on terms as nearly equivalent
as practicable to the provisions concerning the Common Stock contained in
Section 4 and the provisions of this Section 4 shall apply on like terms to any
such other shares.

                  4.6 CERTAIN OTHER EVENTS. If any event occurs as to which the
foregoing provisions of this Section 4 are not strictly applicable or, if
strictly applicable, would not, in the good faith judgment of the Board of
Directors of the Company, fairly protect the purchase rights of the Warrants in
accordance with the essential intent and principles of such provisions, then
such Board shall make such adjustments in the application of such provisions,
in accordance with such essential intent and principles, as shall be reasonably
necessary, in the good faith judgment of such Board, to protect such purchase
rights as aforesaid, but in no event shall any such adjustment have the effect
of increasing the Stock Purchase Price or decreasing the number of shares of
Common Stock purchasable upon exercise of this Warrant, or otherwise adversely
affect the Holder of this Warrant. In the event that, after giving effect to
all adjustments to the number of shares of Common Stock which may be purchased
upon exercise of this Warrant pursuant to Section 4 hereof, this Warrant (or
any portion hereof) shall entitle the Holder hereof to acquire a number of
shares of Common Stock equal to at least the product of (a) 2.5 multiplied by
(b) the number of shares of Common Stock which may be purchased on the date
hereof by the Holder hereof pursuant to the terms of this Warrant (or such
portion hereof), the Company will take such action and make such amendments to
the terms of this Warrant (including amendments to the Stock Purchase Price) as
shall be acceptable to such Holder to put such Holder in the same economic
position as it would have been in the absence of such events and to protect
such purchase rights.

                  4.7 NOTICES OF CHANGE.

                  (a) Immediately upon any adjustment in the Stock Purchase
         Price and the number of shares of Common Stock purchasable upon
         exercise of this Warrant, the

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         Company shall give written notice thereof to the Holder, setting forth
         in reasonable detail and certifying the calculation of such
         adjustment.

                  (b) The Company shall also give written notice to the Holder
         at least 10 business days prior to the date on which an Organic Change
         contemplated in Section 4.5 shall take place; provided, however, that
         in the case of a transaction which requires notice be given to the
         holders of Common Stock of the Company, the Company shall give written
         notice to the Holder as given to the holders of Common Stock of the
         Company.

                  4.8 MISCELLANEOUS. No fractional shares of Common Stock shall
be issued upon exercise of this Warrant. Instead, the Company shall pay to the
Holder, in lieu of issuing any fractional share of Common Stock, a sum in cash
equal to such fraction multiplied by the current market price per share of
Common Stock.

                  For the purpose of any computation under this Section 4, the
current market price per share of Common Stock on any date shall be calculated
by the Company and be deemed to be the average of the daily closing prices as
reported on the principal national securities exchange on which the Company's
Common Stock is then listed for the five consecutive trading days ending on the
earlier of the day in question and the day before the "ex" date with respect to
the issuance or distribution requiring such computation; provided, however,
that if the Company's Common Stock is not listed on a national securities
exchange, the current market price per share of Common Stock will be determined
by an independent "bulge bracket" investment banking firm selected by the
Company's Board of Directors, whose determination shall be conclusive. For
purposes of this paragraph, the term "ex" date, when used with respect to any
issuance or distribution, means the first date on which the Common Stock trades
(regular way) in the applicable securities market or on the applicable
securities exchange without the right to receive such issuance or distribution.

                  No adjustment to the Stock Purchase Price shall be required
unless such adjustment (plus any adjustments not previously made by reason of
this Section 4.8) would require an increase or decrease of at least one percent
in such Stock Purchase Price; provided, however, that any adjustments which by
reason of this Section 4.8 are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under
this Section 4.8 shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be.

         5. ANTITRUST NOTIFICATION. The Company and the Holder hereof shall, as
promptly as practicable, but in no event later than 45 days immediately
preceding the date on which the Holder, by written notice delivered to the
Company, designates as the proposed date of exercise of this Warrant or any
portion hereof, file (a) with the United States Federal Trade Commission
("FTC") and the United States Department of Justice ("DOJ") the notification
and report form, if any, required in connection with the purchase and receipt
by such Holder of Common Stock of the Company upon exercise of this Warrant and
any supplemental information requested in connection therewith pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act") and (b) any
report or document required to be filed with any other Governmental Entity
resulting from such proposed purchase and receipt of Common Stock of the
Company. Any such notification and report form and supplemental information
shall be in substantial

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compliance with the requirements of the HSR Act. The Holder hereof shall
furnish to the Company, and the Company shall furnish to such Holder, such
necessary information and reasonable assistance as may be requested in
connection with the preparation of any filing or submission which is necessary
under the HSR Act and any such other requirement. The Company shall keep such
Holder informed, and such Holder shall keep the Company informed, of the status
of any communications with, and any inquiries or requests for additional
information from, the FTC and the DOJ in respect of the proposed purchase and
receipt by such Holder of Common Stock of the Company upon exercise of this
Warrant and shall comply promptly with any such inquiry or request.

         For purposes of this Section 5, "Governmental Entity" shall mean any
federal, state, local or foreign government or any court of competent
jurisdiction, administrative agency or commission or other governmental
authority or instrumentality, domestic or foreign, or any national securities
or commodities exchange or other regulatory or self-regulatory body or
association.

         6. ISSUE TAX AND EXPENSES. The issuance of certificates for shares of
Common Stock upon the exercise of any portion of this Warrant shall be made
without charge to the Holder of the Warrant for any issue tax (other than any
applicable income taxes, including any taxes withheld by the Company in respect
thereof, payable by the Holder) or other expenses in respect thereof; provided,
however, that the Company shall not be required to pay any tax or other
expenses which may be payable in respect of any transfer involved in the
issuance and delivery of any certificate in a name other than that of the then
Holder of the Warrant being exercised.

         7. CLOSING OF BOOKS. The Company will at no time close its transfer
books against the transfer of any shares of Common Stock issued or issuable
upon the exercise of any warrant in any manner which interferes with the timely
exercise of any portion of this Warrant.

         8. NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY. Nothing
contained in this Warrant shall be construed as conferring upon the Holder
hereof the right to vote or to consent or to receive notice as a stockholder of
the Company or any other matters or any rights whatsoever as a stockholder of
the Company. No dividends or interest shall be payable or accrue in respect of
this Warrant or the interest represented hereby or the shares of Common Stock
purchasable hereunder until, and only to the extent that, this Warrant shall
have been exercised. No provisions hereof, in the absence of affirmative action
by the Holder to purchase shares of Common Stock pursuant to this Warrant, and
no mere enumeration herein of the rights or privileges of the Holder, shall
give rise to any liability of such Holder for the Stock Purchase Price or as a
stockholder of the Company, whether such liability is asserted by the Company
or by its creditors.

         9. TRANSFER. Neither this Warrant nor the shares of Common Stock
issued upon exercise of this Warrant may be sold, pledged or otherwise
transferred in the absence of an effective registration statement with respect
thereto under the Securities Act or an exemption from registration for such
sale, pledge or other transfer as supported by such certifications, opinions
and other documentation, if any, reasonably requested and acceptable to the
Company.

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         10. RIGHTS AND OBLIGATIONS SURVIVE EXERCISE OF WARRANT. The rights and
obligations of the Company, the Holder of this Warrant and the holder of shares
of Common Stock issued upon exercise of this Warrant referred to in Section 9
shall survive the exercise of this Warrant.

         11. MODIFICATION. The Company may from time to time amend this Warrant
in order to cure any ambiguity or to cure, correct or supplement any provision
contained herein which may be defective or inconsistent with any other
provision herein, or to make any other provisions in regard to matters or
questions arising hereunder which shall not in any way adversely affect the
interests of the Holder. The Company may amend the Warrants with the consent of
registered holders of Warrants to purchase at least 62.5% of the outstanding
shares of Common Stock issuable upon exercise of the Warrants. However, the
consent of each registered holder of a Warrant shall be required for any
amendment pursuant to which (a) the Stock Purchase Price would be increased,
(b) the number of shares of Common Stock issuable upon exercise of Warrants
would be decreased, (c) the Expiration Date would be accelerated, (d) the
rights of any registered holder would be materially and adversely affected or
(e) the percentage of the consent of registered holders of Warrants required
for amendments would be reduced.

         12. SUBSEQUENT WARRANTS. In the event the Company issues warrants or
options to purchase equity securities of the Company in connection with
obtaining any debt financing for purposes of financing the merger of VANTAS
Incorporated into HQ Global Workplaces, Inc. and related matters, either as an
initial bridge loan or initial permanent financing (including such financing
used to repay the bridge loan), and such warrants or options contain any term
(the "Preferable Term") that is, or may reasonably be deemed to be, more
favorable to the recipient than the corresponding or similar term of this
Warrant (the "Present Term"), the Present Term of this Warrant shall be, at the
option of the Holder hereof, automatically amended such that the Preferable
Term replaces the Present Term, and the Company shall execute and deliver to
the Holder, upon request, an amended and restated warrant to reflect such
amendment. The Company shall promptly provide to the Holder a copy of any
option or warrant issued in connection with obtaining such financing.

         13. NOTICES. Any notice, request or other document required or
permitted to be given or delivered to the Holder hereof or the Company shall be
delivered or shall be sent by certified mail, postage prepaid, to the Holder at
the Holder's address as shown on the books of the Company or to the Company at
15950 N. Dallas Parkway, Suite 400, Dallas, Texas 75248, Attention: General
Counsel, or such other address as either party may from time to time provide to
the other party.

         14. BINDING EFFECT ON SUCCESSORS. This Warrant shall be binding upon
any entity succeeding the Company by merger, consolidation or acquisition of
all or substantially all of the Company's assets. All of the covenants and
agreements of the Company shall inure to the benefit of the permitted
successors and assigns of the Holder hereof.

         15. DESCRIPTIVE HEADINGS. The description headings of the several
sections and paragraphs of this Warrant are inserted for convenience only and
do not constitute a part of this Warrant.

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         16. GOVERNING LAW. This Warrant shall be governed by and construed in
accordance with the laws of the State of New York without giving effect to any
provisions relating to conflicts of law.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by its officer thereunto duly authorized.

Dated:  May 31, 2000                   HQ GLOBAL HOLDINGS, INC.

                                       By:
                                          -------------------------------------
                                          Name:
                                          Title:

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                                                                      EXHIBIT A

                               SUBSCRIPTION FORM

                                       Date:  ____________, _____

HQ GLOBAL HOLDINGS, INC.
15950 N. Dallas Parkway
Suite 400
Dallas, Texas 75248
Attn:  General Counsel

Ladies and Gentlemen:

The undersigned hereby elects to exercise the warrant issued to it by HQ GLOBAL
HOLDINGS, INC. (the "Company") and dated ___________________ Warrant No. B-__
(the "Warrant") and to purchase thereunder ___________ shares of the Common
Stock, par value $0.01 per share, of the Company (the "Shares") at a purchase
price of $___ per Share or an aggregate purchase price of
______________________ Dollars ($__________) (the "Purchase Price").

Pursuant to the terms of the Warrant, the undersigned has delivered the
Purchase Price in full in cash or other same-day funds.

                                       Very truly yours,

                                       By:
                                          -----------------------------------
                                          Name:
                                          Title:

                                      A-1

<PAGE>   12

                                                                      EXHIBIT B

                           INVESTMENT REPRESENTATION

                                              Date:  ____________, ____

HQ GLOBAL HOLDINGS, INC.
15950 N. Dallas Parkway
Suite 400
Dallas, Texas 75248
Attn:  General Counsel

Ladies and Gentlemen:

The undersigned, ________________ ("Purchaser"), intends to purchase ______
shares of the common stock, $0.01 par value per share (the "Common Stock"), of
HQ GLOBAL HOLDINGS, INC. (the "Company") from the Company pursuant to the
exercise of the Warrant(s) to purchase Common Stock held by Purchaser. The
Common Stock will be issued to Purchaser in a transaction not involving a
public offering and pursuant to an exemption from registration under the
Securities Act of 1933, as amended (the "Securities Act"), and applicable state
securities laws. In connection with such purchase and in order to comply with
the exemptions from registration relied upon by the Company, Purchaser
represents, warrants and agrees as follows:

(1)      The Purchaser is an "accredited investor" within the meaning of
         Regulation D under the Securities Act;

(2)      The Purchaser is acquiring the Common Stock for its own account for
         investment and not with a view to the distribution thereof;

(3)      The Purchaser will not make any sale, pledge or other transfer of the
         Common Stock in violation of the Securities Act or the rules and
         regulations promulgated thereunder by the Securities and Exchange
         Commission (the "SEC") or in violation of any applicable state
         securities laws, and, accordingly, will comply with the provisions set
         forth in Section 9 of the Warrant;

(4)      The Purchaser has been advised that the Common Stock has not been
         registered under the Securities Act or state securities laws on the
         ground that this transaction is exempt from registration, and that
         reliance by the Company on such exemption is predicated, in part, on
         the Purchaser's representations set forth in this letter;

(5)      The Purchaser has received the opportunity to ask questions, and has
         obtained the related answers, regarding the business, financial
         condition and results of operations of the Company and HQ Global
         Workplaces, Inc. and the terms and conditions of the Common

                                      B-2

<PAGE>   13

         Stock, and the Purchaser has received all of the information from the
         Company that it has requested;

(6)      The Purchaser has been informed that under the Securities Act the
         Common Stock must be held indefinitely unless it is subsequently
         registered under the Securities Act or unless an exemption from such
         registration is available with respect to any proposed sale, pledge or
         other transfer by the Purchaser of the Common Stock;

(7)      The Company may refuse to permit Purchaser to sell, pledge or
         otherwise transfer the Common Stock (except as permitted under Rule
         144) in the absence of an effective registration statement with
         respect thereto under the Securities Act or an exemption from such
         registration for such sale, pledge or other transfer as supported by
         such certifications, opinions and other documentation, if any,
         reasonably requested and acceptable to the Corporation.

(8)      There will be placed on the certificate(s) for the Common Stock or any
         substitutions therefor a legend stating in substance:

         "The shares of Common Stock represented by this certificate have not
         been registered under the Securities Act of 1933, as amended (the
         "Securities Act"), or any state securities laws. These shares have
         been acquired for investment and may not be sold, pledged or otherwise
         transferred in the absence of an effective registration statement with
         respect thereto under the Securities Act or an exemption from
         registration for such sale, pledge or other transfer as supported by
         such certifications, opinions and other documentation, if any,
         reasonably requested and acceptable to the Corporation."

The Purchaser confirms that it has carefully read this letter and has discussed
its requirements and other applicable limitations upon the Purchaser's resale
of the Common Stock with the Purchaser's counsel.

                                           Very truly yours,

                                           By:
                                              --------------------------------
                                              Name:
                                              Title:

                                      B-3<PAGE>   1

                                                                     EXHIBIT 4.8

                            HQ GLOBAL HOLDINGS, INC.
                   2000 STOCK OPTION AND RESTRICTED STOCK PLAN

     Section 1. Purpose. The purpose of the HQ Holdings, Inc. 2000 Stock Option
and Restricted Stock Plan (the "Plan") is to promote the interests of HQ
Holdings, Inc., a Delaware corporation (the "Company"), and any Subsidiary
thereof and the interests of the Company's stockholders by providing an
opportunity to selected employees, officers and directors of the Company or any
Subsidiary thereof as of the date of the adoption of the Plan or at any time
thereafter to purchase Common Stock of the Company. By encouraging such stock
ownership, the Company seeks to attract, retain and motivate such employees and
persons and to encourage such employees and persons to devote their best efforts
to the business and financial success of the Company. It is intended that this
purpose will be effected by the granting of "non-qualified stock options" and/or
"incentive stock options" to acquire the Common Stock of the Company and/or by
the granting of Common Stock or rights to purchase the Common Stock of the
Company on a "restricted stock" basis. Under the Plan, the Committee (defined
below) shall have the authority (in its sole discretion) to grant "incentive
stock options" within the meaning of Section 422(b) of the Code, "non-qualified
stock options" as described in Treasury Regulation Section 1.83-7 or any
successor regulation thereto, or "restricted stock" awards.

     Section 2. Definitions. For purposes of the Plan, the following terms used
herein shall have the following meanings, unless a different meaning is clearly
required by the context.

     2.1. "Award" shall mean an award of Common Stock or the right to purchase
Common Stock granted under the provisions of Section 7 of the Plan.

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

     2.3 "Change in Control" (a) Except as provided in (b) below, the term
"Change in Control" shall mean: (i) any merger, consolidation, reorganization,
or recapitalization of the Company, or any similar transaction involving the
Company, in which the stockholders of the Company immediately before the merger,
consolidation, reorganization, recapitalization, or similar transaction fail to
own securities in the surviving or new entity that represent more than 50% of
the voting power of the equity holders of such entity immediately after the
merger, consolidation, reorganization, recapitalization, or similar transaction,
(ii) any person or group, as determined in accordance with Rule 13d-3 under the
Securities and Exchange Act of 1934, beneficially owning securities of the
Company that represent more than 50% of the voting power of the security holders
of the Company as determined under Rule 13d-3, other than any such ownership by
any employee benefit plan sponsored or maintained by the Company or one of its
Subsidiaries or affiliates, or any trust related to any such employee benefit
plan, (iii) any sale of all or substantially all of the aggregate assets of the
Company and its Subsidiaries, (iv) any filing of a voluntary petition by the
Company under the federal bankruptcy laws or any filing of an involuntary
petition against the Company under such laws, which involuntary petition is not
dismissed within 30 days after it was filed, or (v) any adoption of a plan of
dissolution or liquidation of the Company. For purposes of a Change in Control,
voting power shall mean the power to vote in the election of an entity's
directors or similar functionaries. If an entity's equity holders vote in
classes in such elections, however, voting power shall be determined based upon

<PAGE>   2

the voting power within any class of equity securities entitled to elect
one-half or more of such entity's directors or similar functionaries.

         (b) Notwithstanding the above, a change in Control shall not include a
firm commitment underwritten public offering pursuant to a registration
statement on Form S-1 or Form S-2 under the Securities Act of 1933, as amended.

         (c) If a Change in Control occurs and the Company fails to remain in
existence, the Option shall become an obligation of the person succeeding to the
business of the Company or otherwise responsible for the Company's obligations.

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

     2.5. "Committee" shall mean the committee of the Board of Directors
referred to in Section 5 hereof.

     2.6. "Common Stock" shall mean the Common Stock $0.01 par value, of the
Company, or such other security or right or instrument into which such Common
Stock may be changed or converted in the future.

     2.7. "Employee" shall mean (i) with respect to an ISO, any person,
including an officer or director of the Company, who, at the time an ISO is
granted to such person hereunder, is employed on a full-time basis by the
Company or any Subsidiary of the Company, and (ii) with respect to a
Non-Qualified Option and/or an Award, any person employed by, or performing
services for, the Company or any Subsidiary of the Company, including, without
limitation, directors and officers.

     2.8. "Fair Market Value" of a share of Common Stock means:

     (1)  If the Common Stock is listed on a national securities exchange or
          traded in the over-the-counter market and sales prices are regularly
          reported for the Common Stock, either (a) the closing price of the
          Common Stock on the Composite Tape or other comparable reporting
          system for the applicable date or (b) if the Common Stock is not
          traded on the relevant date, the closing price of the Common Stock on
          the Composite Tape or other comparable reporting system for the most
          recent day on which the Common Stock was traded immediately preceding
          the applicable date.

     (2)  If the Common Stock is not traded on a national securities exchange
          but is traded on the over-the-counter market, if sales prices are not
          regularly reported for the Common Stock for the trading days or day
          referred to in clause (1), and if bid and asked prices for the Common
          Stock are regularly reported, either (a) the average of the bid and
          the asked price for the Common Stock at the close of trading in the
          over-the-counter market for the applicable date or (b) the average of
          the bid and the asked price for the Common Stock at the close of
          trading in the over-the-counter market of the trading day on which
          Common Stock was traded immediately preceding the applicable date, as
          the Committee shall determine in its sole discretion; and

                                       2

<PAGE>   3

     (3)  If the Common Stock is neither listed on a national securities
          exchange nor traded in the over-the-counter market, such value as the
          Board of Directors in good faith, shall determine.

     2.9 "ISO" shall mean an Option granted to a Participant pursuant to the
Plan that constitutes and shall be treated as an "incentive stock option" as
defined in Section 422(b) of the Code.

     2.10. "Non-Qualified Option" shall mean an Option granted to a Participant
pursuant to the Plan that is intended to be, and qualifies as, a "non-qualified
stock option" as described in Treasury Regulation Section 1.83-7 or any
successor regulation thereto and that shall not constitute nor be treated as an
ISO.

     2.11. "Option" shall mean any ISO or Non-Qualified Option granted to an
Employee pursuant to the Plan.

     2.12. "Participant" shall mean any Employee to whom an Award and/or an
Option is granted under the Plan (and, where applicable, also includes a
Permitted Transferee of a Non-Qualified Option).

     2.13. "Parent of the Company" shall have the meaning set forth in Section
424(e) of the Code.

     2.14 "Permitted Transferee" means any transferee of a Non-Qualified Option
pursuant to a transfer that is approved by the Committee in accordance with the
provisions of Section 6.3 of the Plan.

     2.15. "Subsidiary of the Company" shall have the meaning set forth in
Section 424(f) of the Code.

     Section 3. Eligibility. Awards and/or Options may be granted to any
Employee. The Committee shall have the sole authority to select the persons to
whom Awards and/or Options are to be granted hereunder, and to determine whether
a person is to be granted a Non-Qualified Option, an ISO or an Award or any
combination thereof. No person shall have any right to participate in the Plan.
Any person selected by the Committee for participation during any one period
will not by virtue of such participation have the right to be selected as a
Participant for any other period. On and after the time that the Company becomes
subject to Code Section 162(m), no Participant shall be granted Options and/or
Awards under the Plan with respect to more than 500,000 shares of Common Stock
in any calendar year (subject to adjustment as provided in Section 8 hereof).

     Section 4. Common Stock Subject to the Plan.

     4.1. Number of Shares. (a) Except as provided below, the total number of
shares of Common Stock for which Options and/or Awards may be granted under the
Plan (as well as the total number of ISOs that may be granted hereunder) shall
not exceed in the aggregate 800,000 shares of Common Stock (subject to
adjustment as provided in Section 8 hereof).

                                       3

<PAGE>   4

     (b) The number of authorized shares of Common Stock hereunder shall be
increased on January 1, 2001, and on each of the four (4) succeeding January 1,
ending on January 1, 2005, by a number of shares equal to 3% of the total number
of shares of Common Stock outstanding as of such date. However, no ISO's shall
be issuable under this paragraph and the maximum number of ISO's shall be
determined without regard to this "evergreen" provision.

     4.2. Reissuance. The shares of Common Stock that may be subject to Options
and/or Awards granted under the Plan may be either authorized and unissued
shares or shares reacquired at any time and now or hereafter held as treasury
stock as the Board of Directors may determine. In the event that any outstanding
Option expires or is terminated for any reason, the shares allocable to the
unexercised portion of such Option may again be subject to an Option and/or
Award granted under the Plan. If any shares of Common Stock acquired pursuant to
an Award or the exercise of an Option shall be forfeited or repurchased by the
Company, or is settled in cash in lieu of Common Stock, or is deemed to have
been used to pay the exercise price or tax withholding due with respect to an
Option, through share withholding or other cashless exercise method, then such
shares shall again become available for issuance pursuant to the Plan. In
addition, in the event a Participant pays for any Option through the delivery of
previously owned shares of Common Stock, the number of shares available for
issuance under the Plan shall be increased by the number of shares surrendered
by the Participant.

     4.3. Special ISO Limitations.

     (a) To the extent that the aggregate fair market value (determined as of
the date an ISO is granted) of the shares of Common Stock with respect to which
ISOs are exercisable for the first time by an Employee during any calendar year
(under all Incentive Stock Option Plans of the Company or any Parent or
Subsidiary of the Company) exceeds $100,000, then the excess thereof shall be
treated as a Non-Qualified Option and not as an ISO. This rule shall be applied
by taking Options into account in the order in which they are granted.

     (b) No ISO shall be granted to an Employee who, at the time the ISO is
granted, owns (actually or constructively under the provisions of Section 424(d)
of the Code) stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or any Parent or Subsidiary of the
Company, unless the option price is at least 110% of the fair market value
(determined as of the time the ISO is granted) of the shares of Common Stock
subject to the ISO and the ISO by its terms is not exercisable more than five
years from the date it is granted.

     Section 5. Administration of the Plan.

     5.1. Administration. The Plan shall be administered by a committee of the
Board of Directors (the "Committee") established by the Board of Directors and
consisting of no less than two persons. From and after the time that any equity
securities of the Company become registered or required to be registered under
Section 12 of the Securities Exchange Act of 1934 ("Exchange Act"), all members
of the Committee shall be both "non-employee directors" within the meaning of
Rule 16b-3 promulgated under the Exchange Act and "outside directors" within the
meaning of Code Section 162(m). The Committee shall be appointed from time to
time by, and shall serve at the pleasure of, the Board of Directors.

                                       4

<PAGE>   5

     5.2. Grant of Options/Awards.

     (a) Options. The Committee shall have the sole authority and discretion
under the Plan (i) to select the Employees who are to be granted Options
hereunder; (ii) to designate whether any Option to be granted hereunder is to be
an ISO or a Non-Qualified Option; (iii) to establish the number of shares of
Common Stock that may be issued under each Option; (iv) to determine the time
and the conditions subject to which Options may be exercised in whole or in
part; (v) to determine the form of the consideration that may be used to
purchase shares of Common Stock upon exercise of any Option (including the
circumstances under which the Employee may pay all or part of the exercise price
by entering into a promissory note with the Company, circumstances under which
the Company's issued and outstanding shares of Common Stock may be used by a
Participant to exercise an Option, or various "cashless exercise" methods); (vi)
to impose restrictions and/or conditions with respect to shares of Common Stock
acquired upon exercise of an Option; (vii) to determine the circumstances under
which shares of Common Stock acquired upon exercise of any Option may be subject
to repurchase by the Company; (viii) to determine the circumstances and
conditions subject to which shares acquired upon exercise of an Option may be
sold or otherwise transferred, including, without limitation, the circumstances
and conditions subject to which a proposed sale of shares of Common Stock
acquired upon exercise of an Option may be subject to the Company's right of
first refusal (as well as the terms and conditions of any such right of first
refusal); (ix) to establish a vesting provision for any Option relating to the
time when (or the circumstances under which) the Option may be exercised by a
Participant, including, without limitation, vesting provisions that may be
contingent upon (A) the Company meeting specified financial goals, (B) a change
of control of the Company or (C) the occurrence of other specified events; (x)
to accelerate the time when outstanding Options may be exercised; and (xi) to
establish any other terms, restrictions and/or conditions applicable to any
Option not inconsistent with the provisions of the Plan.

     (b) Awards. The Committee shall have the sole authority and discretion
under the Plan (i) to select the Employees who are to be granted Awards
hereunder; (ii) to determine the amount, if any, to be paid by a Participant to
acquire shares of Common Stock pursuant to an Award; (iii) to determine the time
or times and the conditions subject to which Awards may be made; (iv) to
determine the time or times and the conditions subject to which the shares of
Common Stock subject to an Award are to become vested and no longer subject to
forfeiture to and/or repurchase by the Company; (v) to establish transfer
restrictions and the terms and conditions on which any such transfer
restrictions with respect to shares of Common Stock acquired pursuant to an
Award shall lapse; (vi) to establish vesting provisions with respect to any
shares of Common Stock subject to an Award, including, without limitation,
vesting provisions which may be contingent upon (A) the Company meeting
specified financial goals, (B) a change of control of the Company or (C) the
occurrence of other specified events; (vii) to determine the circumstances under
which shares of Common Stock acquired pursuant to an Award may be subject to
repurchase by the Company; (viii) to determine the circumstances and conditions
subject to which any shares of Common Stock acquired pursuant to an Award may be
sold or otherwise transferred, including, without limitation, the circumstances
and conditions subject to which a proposed sale of shares of Common Stock
acquired pursuant to an Award may be subject to the Company's right of first
refusal (as well as the terms and conditions of any such right of first
refusal); (ix) to determine the form of consideration that may be used to
purchase shares of Common Stock pursuant to an Award (including the
circumstances under which the

                                       5

<PAGE>   6

Company's issued and outstanding shares of Common Stock may be used by a
Participant to purchase the Common Stock subject to an Award); (x) to accelerate
time at which any or all restrictions imposed with respect to any shares of
Common Stock subject to an Award will lapse; and (xi) to establish any other
terms, restrictions and/or conditions applicable to any Award not inconsistent
with the provisions of the Plan.

     5.3. Interpretation. The Committee shall be authorized to interpret the
Plan and may, from time to time, adopt such rules and regulations, not
inconsistent with the provisions of the Plan, as it may deem advisable to carry
out the purposes of the Plan.

     5.4. Finality. The interpretation and construction by the Committee of any
provision of the Plan, any Option and/or Award granted hereunder or any
agreement evidencing any such Option and/or Award shall be final and conclusive
upon all parties.

     5.5. Voting. Members of the Committee may vote on any matter affecting the
administration of the Plan or the granting of Options and/or Awards under the
Plan.

     5.6. Expenses, Etc. All expenses and liabilities incurred by the Committee
in the administration of the Plan shall be borne by the Company. The Committee
may employ attorneys, consultants, accountants or other persons in connection
with the administration of the Plan. The Company, and its officers and
directors, shall be entitled to rely upon the advice, opinions or valuations of
any such persons.

     5.7. Indemnification. Neither the members of the Board of Directors nor any
member of the Committee shall be liable for any act, omission, or determination
taken or made in good faith with respect to the Plan or any Options or Awards
granted under it, and members of the Board of Directors and the Committee shall
be entitled to indemnification and reimbursement by the Company in respect of
any claim, loss, damage, or expense (including attorneys' fees, the costs of
settling any suit, provided such settlement is approved by independent legal
counsel selected by the Company, and amounts paid in satisfaction of a judgment,
except a judgment based on a finding of bad faith) arising therefrom to the full
extent permitted by law.

     Section 6. Terms and Conditions of Options.

     6.1. ISOs. The terms and conditions of each ISO granted under the Plan
shall be specified by the Committee and shall be set forth in an ISO agreement
between the Company and the Participant in such form as the Committee shall
approve. The terms and conditions of each ISO shall be such that each ISO issued
hereunder shall constitute and shall be treated as an "incentive stock option"
as defined in Section 422(b) of the Code. The terms and conditions of any ISO
granted hereunder need not be identical to those of any other ISO granted
hereunder.

     The terms and conditions of each ISO shall include the following:

     (a) The option price shall be fixed by the Committee but shall in no event
be less than 100% (or 110% in the case of an Employee referred to in Section
4.3(b) hereof) of the Fair Market Value of the shares of Common Stock subject to
the ISO on the date the ISO is granted. The Fair Market Value of Common Stock
subject to an ISO shall be determined without regard to any restriction other
than a restriction which, by its terms, will never lapse.

                                       6

<PAGE>   7

     (b) ISOs, by their terms, shall not be transferable otherwise than by will
or the laws of descent and distribution, and, during an Optionee's lifetime, an
ISO shall be exercisable only by the Optionee.

     (c) All ISOs must be granted within 10 years of the earlier of the date the
Plan is adopted or the date the Plan is approved by the shareholders of the
Company. The Committee shall fix the term of all ISOs granted pursuant to the
Plan (including the date on which such ISO shall expire and terminate),
provided, however, that such term shall in no event exceed ten years from the
date on which such ISO is granted (or, in the case of an ISO granted to an
Employee referred to in Section 4.3(b) hereof, such term shall in no event
exceed five years from the date on which such ISO is granted). Each ISO shall be
exercisable in such amount or amounts, under such conditions and at such times
or intervals or in such installments as shall be determined by the Committee in
its sole discretion.

     (d) To the extent that the Company or any Parent or Subsidiary of the
Company is required to withhold any Federal, state or local taxes in respect of
any compensation income realized by any Participant as a result of any
"disqualifying disposition" of any shares of Common Stock acquired upon exercise
of an ISO granted hereunder, the Company shall deduct from any payments of any
kind otherwise due to such Participant the aggregate amount of such Federal,
state or local taxes required to be so withheld or, if such payments are
insufficient to satisfy such Federal, state or local taxes, such Participant
will be required to pay to the Company, or make other arrangements satisfactory
to the Company regarding payment to the Company of, the aggregate amount of any
such taxes. All matters with respect to the total amount of taxes to be withheld
in respect of any such compensation income shall be determined by the Board of
Directors in its sole discretion.

     (e) In the sole discretion of the Committee the terms and conditions of any
ISO may (but need not) include any of the following provisions:

          (i) In the event a Participant shall cease to be employed by the
     Company or any Parent or Subsidiary of the Company on a full-time basis for
     any reason other than as a result of his death or "disability" (within the
     meaning of Section 22(e)(3) of the Code), the unexercised portion of any
     ISO held by such Participant at that time may only be exercised within
     three (3) months after the date on which the Participant ceased to be so
     employed, and only to the extent that the Participant could have otherwise
     exercised such ISO as of the date on which he ceased to be so employed.

          (ii) In the event a Participant shall cease to be employed by the
     Company or any Parent or Subsidiary of the Company on a full--time basis by
     reason of his "disability" (within the meaning of Section 22(e)(3) of the
     Code), the unexercised portion of any ISO held by such Participant at that
     time may only be exercised within one year after the date on which the
     Participant ceased to be so employed, and only to the extent that the
     Participant could have otherwise exercised such ISO as of the date on which
     he ceased to be so employed.

          (iii) In the event a Participant shall die while in the full-time
     employ of the Company or a Parent or Subsidiary of the Company (or within a
     period of three (3)

                                       7

<PAGE>   8

     months after ceasing to be an Employee for any reason other than his
     "disability" or within a period of one year after ceasing to be an Employee
     by reason of such "disability"), the unexercised portion of any ISO held by
     such Participant at the time of his death may only be exercised within one
     year after the date of such Participant's death, and only to the extent
     that the Participant could have otherwise exercised such ISO at the time of
     his death. In such event, such ISO may be exercised by the executor or
     administrator of the Participant's estate or by any person or persons who
     shall have acquired the ISO directly from the Participant by bequest or
     inheritance.

     (f) No Option granted hereunder shall qualify as an ISO unless the Plan is
approved by the shareholders of the Company within 12 months before or after the
date the Plan is adopted by the Board of Directors.

     6.2. Non-Qualified Options. The terms and conditions of each Non-Qualified
Option granted under the Plan shall be specified by the Committee, in its sole
discretion, and shall be set forth in a written option agreement between the
Company and the Participant in such form as the Committee shall approve. The
terms and conditions of each Non-Qualified Option will be such (and each
Non-Qualified Option Agreement shall expressly so state) that each Non-Qualified
Option issued hereunder shall not constitute nor be treated as an "incentive
stock option" as defined in Section 422(b) of the Code but will be a
"non-qualified stock option" for Federal, state and local income tax purposes.
The terms and conditions of any Non-Qualified Option granted hereunder need not
be identical to those of any other Non-Qualified Option granted hereunder.

     The terms and conditions of each Non-Qualified Option Agreement shall
include the following:

     (a) The option (exercise) price shall be fixed by the Committee and may be
equal to, more than or less than 100% of the Fair Market Value of the shares of
Common Stock subject to the Non-Qualified Option on the date such Non-Qualified
Option is granted, provided, however, that the option (exercise) price shall not
be less than the par value of such shares of Common Stock.

     (b) The Committee shall fix the term of all Non-Qualified Options granted
pursuant to the Plan (including the date on which such Non-Qualified Option
shall expire and terminate). Each Non-Qualified Option shall be exercisable in
such amount or amounts, under such conditions (including provisions governing
the rights to exercise such Non-Qualified Option), and at such times or
intervals or in such installments as shall be determined by the Committee in its
sole discretion. To the extent approved by the Committee, Options may
distinguish between exercisability and vesting, such that Options may be
exercisable immediately, but the underlying Common Stock issuable thereunder may
be subject to a vesting schedule. In such case, the Option, upon exercise, shall
become an Award of restricted stock governed by the terms of Section 7 hereof.

     (c) Except as otherwise provided in Section 6.3 hereof or in an individual
Option Agreement, Non-Qualified Options shall not be transferable otherwise than
by will or the laws of descent and distribution, or a domestic relations order,
and during a Participant's lifetime a

                                       8

<PAGE>   9

Non-Qualified Option shall be exercisable only by the Participant or an
alternate payee under a domestic relations order.

     (d) To the extent that the Company is required to withhold any Federal,
state or local taxes in respect of any compensation income realized by any
Participant in respect of a Non-Qualified Option granted hereunder or in respect
of any shares of Common Stock acquired upon exercise of a Non-Qualified Option,
the Company shall deduct from any payments of any kind otherwise due to such
Participant the aggregate amount of such Federal, state or local taxes required
to be so withheld or, if such payments are insufficient to satisfy such Federal,
state or local taxes, or if no such payments are due or to become due to such
Participant, then, such Participant will be required to pay to the Company, or
make other arrangements satisfactory to the Company (including, with prior
Committee approval, use of a promissory note in favor of the Company, delivery
of previously owned shares of Common Stock, or share withholding from shares
otherwise to be issued upon exercise of the Option or other cashless exercise
method) regarding payment to the Company of, the aggregate amount of any such
taxes. All matters with respect to the total amount of taxes to be withheld in
respect of any such compensation income shall be determined by the Board of
Directors in its sole discretion.

     (e) To exercise an Option, a Participant (or Permitted Transferee) must
deliver a completed copy of the Option Exercise Form to the address indicated on
the Form, specifying the number of Option Shares being purchased as a result of
such exercise, together with payment of the full option price for the Option
Shares being purchased and the applicable income tax withholding obligations.
Unless otherwise agreed to by the Committee, payment of the option price and tax
withholding obligation must be made in cash or by cashier's check; provided,
however, that with prior approval of the Committee, and subject to applicable
laws and regulations, and any provisions in the Option Agreement, payment of
such option price and/or tax withholding may instead be made, in whole or in
part, by (A) the delivery to the Company of a promissory note in a form and
amount satisfactory to the Committee, provided that the principal amount of such
note shall not exceed the excess of such aggregate option price and minimum tax
withholding obligation over the aggregate par value of the purchased Option
Shares; (B) to the extent not in violation of any instrument or agreement to
which the Company is a party, by delivery of shares of Common Stock (not subject
to any security interest or pledge) valued at Fair Market Value at time of
exercise, not to exceed the aggregate option exercise price and minimum tax
withholding obligation; (C) by one or more forms of "cashless exercise" of the
Option, including, without limitation, withholding Option Shares from the Option
Shares to be otherwise issued that number of Option Shares needed to pay the
exercise price and/or tax withholding, not be exceed the aggregate option
exercise price and minimum tax withholding obligation; or (D) a combination of
one or more of the foregoing, or in any other form of payment acceptable to the
Committee. The Committee reserves the right to require that any shares of Common
Stock delivered by the Optionee in full or partial payment of the exercise price
and/or tax withholding to be limited to those shares already owned by the
Optionee for at least six (6) months.

     (f) Notwithstanding anything to the contrary herein or in any Option
Agreement, no shares of stock purchased upon exercise of an Option, and no
certificate representing such shares, shall be issued or delivered if (1) such
shares have not been admitted to listing upon official notice of issuance on
each stock exchange upon which shares of the class are

                                       9

<PAGE>   10

then listed, or (2) in the opinion of counsel to the Company, such issuance or
delivery would (i) cause the Company to be in violation of or to incur liability
under any federal, state or other securities law, or any requirement of any
stock exchange listing agreement to which the Company is a party, or any other
requirement of law or of any administrative or regulatory body having
jurisdiction over the Company, or (ii) require registration (apart from such
registrations as have been theretofore completed by the Company covering such
shares) under any federal, state or other securities or similar law.

     (g) Except as otherwise provided in an Option Agreement, the following
provisions will apply upon termination of employment or other relationship with
the Company:

          (i) In the event that the Company or any subsidiary, affiliate, or
     parent thereof terminates a Participant's employment or other relationship
     with the Company (or any subsidiary, affiliate or parent thereof) "for
     cause" (as determined in the sole discretion of the Company or its
     designated representative), then both the vested and the unvested portion
     of the Option shall immediately terminate.

          (ii) In the event that a Participant terminates his employment or
     other relationship with the Company (or any subsidiary, affiliate, or
     parent thereof) for any reason whatsoever (other than as a result of
     retirement (as determined by the Company), death or total and permanent
     disability (as determined by the Company or its designated
     representative)), then the Option may only be exercised within 365 days
     after the date the Participant ceases to be so employed or provide such
     services, and only to the same extent he was entitled to exercise the
     Option on the date he ceased to be so employed or provide such services by
     reason of such termination and had not previously done so, and the unvested
     portion shall immediately terminate.

          (iii) In the event that a Participant ceases to be employed by or
     provide services to the Company or any subsidiary, affiliate, or parent
     thereof on a full-time basis (A) by reason of total and permanent
     disability (as determined by the Company or its designated representative),
     (B) by reason of retirement (as defined by the Company), or (C) as a result
     of the termination of his employment or other relationship by the Company
     or any subsidiary, affiliate, or parent thereof at any time other than "for
     cause," then the Option may only be exercised within one year after the
     date such Participant ceases to be so employed or provide such services,
     and only to the same extent that such Participant was entitled to exercise
     the Option on the date he ceased to be so employed or provide such services
     by reason of such disability, retirement, or such termination and had not
     previously done so. The unvested portion of the Option shall immediately
     terminate.

          (iv) In the event that a Participant dies while employed or providing
     services to the Company or any subsidiary, affiliate, or parent thereof (or
     within a period of one year after ceasing to be employed by or to provide
     services to the Company or any subsidiary, affiliate, or parent thereof for
     any reason described in Section 6.2(g)(iii) hereof), the Option may only be
     exercised within one year after

                                       10

<PAGE>   11

     such Participant's death. In such event, the Option may be exercised during
     such one-year period by the executor or administrator of such Participant's
     estate or by any person who shall have acquired the Option through bequest
     or inheritance, but only to the same extent that such Participant was
     entitled to exercise the Option immediately prior to the time of his death
     and had not previously done so. The unvested portion shall immediately
     terminate.

          (v) Except as otherwise provided in an Option Agreement,
     notwithstanding anything to the contrary above, if a Participant is
     employed by or providing services to the Company or any affiliate or
     subsidiary thereof immediately before a Change in Control, such
     Participant's Option shall vest immediately and in full, and such
     Participant may exercise his Option with respect to any Option Shares not
     previously purchased until the later of (a) the date specified in Section
     6.2(g)(ii)-(iv) above, or (b) the first anniversary of such Change in
     Control, but in no event longer than ten (10) years from the original date
     of grant.

          (vi) Notwithstanding any provision contained in this Section 6.2(g) to
     the contrary, except as otherwise provided in an Option Agreement, in no
     event may an Option be exercised to any extent by anyone after the tenth
     (10th) anniversary of the date of grant of the Option.

     6.3 RESTRICTIONS ON TRANSFERABILITY OF AWARDS. (a) No Option or Award under
the Plan or any Award Agreement, and no rights or interests herein or therein,
shall or may be assigned, transferred, sold, exchanged, encumbered, pledged, or
otherwise hypothecated or disposed of by a Participant or any beneficiary(ies)
of any Participant, except (i) in the case of any Option or Award, transfers by
testamentary disposition by the Participant or the laws of descent and
distribution and (ii) in the case of Non-Qualified Options, transfers made with
the prior approval of the Committee and on such terms and conditions as the
Committee, in its sole discretion, shall approve to: (A) in the case of a
transfer without the payment of any consideration, any "family member" as such
term is defined in Section 1(a)(5) of the General Instructions to Form S-8 under
the Securities Act of 1933, as in effect at the time of such transfer, (B) to
any person or entity described in clause (ii) of Section 1 (a)(5) of the General
Instructions to Form S-8 under the Securities Act of 1933, as in effect at the
time of such transfer, or (C) any other transferee that is approved by the
Committee in its sole discretion; provided, however, that, without the prior
approval of the Committee, no Permitted Transferee shall further transfer a
Non-Qualified Option, other than by testamentary disposition or the laws of
descent and distribution, either directly or indirectly, including, without
limitation, by reason of the dissolution of, or a change in the beneficiaries
of, a Permitted Transferee that is a trust, the sale, merger, consolidation,
dissolution, or liquidation of a Permitted Transferee that is a partnership (or
the sale of all or any portion of the partnership interests therein), or the
sale, merger, consolidation, dissolution, or liquidation of a Permitted
Transferee that is a corporation (or the sale of all or any portion of the stock
thereof).

     (b) Except as may be provided in a domestic relations order related to a
Non-Qualified Option or an Award, no Option or Award under the Plan or any
Option or Award Agreement, and no rights herein or therein, shall be subject to
execution, attachment, or similar

                                       11

<PAGE>   12

legal process, including, without limitation, seizure for the payment of the
Participant's or a Permitted Transferee's debts, judgments, alimony, or separate
maintenance.

     (c) During the lifetime of a Participant, Stock Options are exercisable
only by the Participant or a Permitted Transferee.

     (d) Each Permitted Transferee, along with the transferor, of a
Non-Qualified Option transferred in accordance with the provisions of this
Section 6.3 shall enter into a Stock Option Transfer Agreement with the Company
in a form specified by the Committee. Each such Participant and Permitted
Transferee shall agree to the restrictions, terms and conditions of the Option
set forth in the Option Agreement or the Stock Option Transfer Agreement, as
applicable, and in the Plan.

     Section 7. Terms and Conditions of Awards. The terms and conditions of each
Award granted under the Plan shall be specified by the Committee, in its sole
discretion, and shall be set forth in a written agreement between the
Participant and the Company, in such form as the Committee shall approve. The
terms and provisions of any Award granted hereunder need not be identical to
those of any other Award granted hereunder.

     The terms and conditions of each Award shall include the following:

     (a) The amount, if any, to be paid by a Participant to acquire the shares
of Common Stock pursuant to an Award shall be fixed by the Board of Directors
(or the Committee).

     (b) Each Award shall contain such vesting provisions, such transfer
restrictions and such other restrictions and conditions as the Committee, in its
sole discretion, may determine, including, without limitation, the circumstances
under which the Company shall have the right and option to repurchase shares of
Common Stock acquired pursuant to an Award.

     (c) Stock certificates representing Common Stock acquired pursuant to an
Award shall bear a legend referring to the restrictions imposed on such Stock
and such other matters as the Committee may determine.

     (d) To the extent that the Company is required to withhold any Federal,
state or local taxes in respect of any compensation income realized by the
Participant in respect of an Award granted hereunder, or in respect of any
shares acquired pursuant to an Award, or in respect of the vesting of any such
shares of Common Stock, then the Company shall deduct from any payments of any
kind otherwise due to such Participant the aggregate amount of such Federal,
state or local taxes required to be so withheld or, if such payments are
insufficient to satisfy such Federal, state or local taxes, or if no such
payments are due or to become due to such Participant, then, such Participant
will be required to pay to the Company, or make other arrangements satisfactory
to the Company regarding payment to the Company of, the aggregate amount of any
such taxes. All matters with respect to the total amount of taxes to be withheld
in respect of any such compensation income shall be determined by the Committee
in its sole discretion.

     Section 8. Adjustments. In the event that, after the adoption of the Plan
by the Board of Directors, the outstanding shares of the Company's Common Stock
shall be increased or decreased or changed into or exchanged for a different
number or kind of shares of stock or other

                                       12

<PAGE>   13

securities of the Company or of another corporation through reorganization,
merger or consolidation, recapitalization, reclassification, stock split,
split-up, combination or exchange of shares or declaration of any dividends
payable in Common Stock, the Board of Directors shall appropriately adjust (i)
the number of shares of Common Stock (and the option price per share) subject to
the unexercised portion of any outstanding Option (to the nearest possible full
share), provided, however, that the limitations of Section 424 of the Code shall
apply with respect to adjustments made to ISOs; (ii) the number of shares of
Common Stock to be acquired pursuant to an Award which have not become vested,
and (iii) the number of shares of Common Stock for which Options and/or Awards
may be granted under the Plan, as set forth in Section 4.1 hereof, and such
adjustments shall be effective and binding for all purposes of the Plan.

     9. Restrictions on Transfer and Tag-Along/Drag-Along Rights.

     (a) Restrictions. Except as otherwise provided in an Option or Award
Agreement, neither a Participant nor a Permitted Transferee (collectively, a
"Holder") may directly or indirectly (including by operation of law) assign,
bequeath, devise, encumber, hypothecate, mortgage, pledge, sell, or otherwise
transfer or dispose of (collectively, "Transfer") any of the Option Shares
purchased pursuant hereto or shares of Common Stock granted or sold through an
Award other than pursuant to the terms of this Section 9. Any purported Transfer
of such Option Shares or shares of Common Stock obtained through an Award
(collectively "Shares") in violation of the terms of this Section 9 shall be
null, void, and of no effect.

     (b) Right of Repurchase. If a Holder receives a bona fide offer from an
independent third party for his or her Shares purchased pursuant hereto and he
or she desires to Transfer such Shares pursuant to such offer, the Holder must
give written notice of such proposed Transfer (a "Proposed Transfer Notice") to
the Company. The Proposed Transfer Notice shall set forth the Holder's name and
the name of the proposed transferee and the terms of the proposed Transfer,
including the date of the proposed Transfer, the purchase price, and the
consideration that the proposed transferee will transfer to the Holder in
satisfaction of the purchase price. The Company shall have 30 days following its
receipt of the Proposed Transfer Notice to notify the Holder that the Company
elects to purchase all or any portion of the Shares of Common Stock purchased
pursuant hereto set forth in the Proposed Transfer Notice that the Holder owns
for an amount equal to the Repurchase Price (as hereinafter defined), and during
such 30-day period, the Holder may not Transfer the Shares to such third party.
If the Company so notifies the Holder, the Holder shall sell such Shares of
Common Stock to the Company in accordance with paragraph 9(e) hereof. If the
Company does not so notify the Holder (or elects to purchase less than all of
the Shares of Common Stock set forth in the Proposed Transfer Notice), the
Holder may sell the number of shares of Common Stock specified in the Proposed
Transfer Notice (or the number of shares of Common Stock set forth in the
Proposed Transfer Notice that the Company does not elect to purchase) to the
proposed transferee in accordance with the terms set forth therein during the 60
days immediately following the expiration of the Company's 30-day election
period and thereafter the provisions of paragraph 9(i) hereof shall apply to
such Shares. If the Holder does not sell such Shares of Common Stock within such
60 day period, any subsequent Transfer of such Shares must be pursuant to a new
Proposed Transfer Notice.

     (c) Cessation of Relationship. If the Company and its affiliates and
subsidiaries cease to engage the Holder as an Employee for any reason (including
death or disability), the

                                       13

<PAGE>   14

Company may at any time thereafter until the lapse of this provision under
paragraph 9(f), notify the Holder that it elects to purchase all or any portion
of his or her Shares purchased pursuant hereto that the Holder owns for an
amount equal to the Repurchase Price. If the Company so notifies the Holder, the
Holder shall sell such shares of Common Stock to the Company in accordance with
paragraph 9(e) hereof. The Company's waiver of its rights under this paragraph
9(c) shall not affect its rights under paragraph 9(b) or (d) hereof.

     (d) Bankruptcy. If a Holder files a voluntary bankruptcy petition or
another person files an involuntary bankruptcy petition against a Holder, the
Company shall have 90 days immediately following the day it is notified of such
bankruptcy petition to notify the Holder that the Company elects to purchase all
or any portion of his Shares purchased pursuant hereto that the Holder owns for
an amount equal to the Repurchase Price. If the Company so notifies the Holder,
the Holder shall sell such Shares to the Company in accordance with paragraph
9(e) hereof. The Company's waiver of its rights under this paragraph 9(d) shall
not affect its rights under paragraphs 9(b) or (c) hereof.

     (e) Closing of the Repurchase. The closing of the Company's purchase of
Shares of Common Stock pursuant to paragraphs 9(b), (c), and (d) hereof shall
occur on the 20th day of the month immediately following the month during which
the Holder receives the Company's notice of its election to purchase such Shares
of Common Stock (unless such closing is delayed pursuant to the Holder's
disagreement with the computation of the Fair Market Value in accordance with
paragraph 9(h) hereof). At such closing, the Company shall deliver to the Holder
a check in the amount of the Repurchase Price for the Shares of Common Stock to
be sold and the Holder shall deliver to the Company the stock certificates
representing such Shares along with a stock power transferring those Shares to
the Company.

     (f) Lapse of Restrictions. The restrictions set forth in paragraphs 9(b),
(c) and (d) hereof shall apply to the Shares of Common Stock purchased pursuant
hereto and each Holder thereof until the earlier of (i) the Company's issuance
of Shares of Common Stock pursuant to a firm commitment underwritten public
offering pursuant to a registration statement on Form S-1 or Form S-2 under the
Securities Act of 1933, as amended, or (ii) the consummation of a sale of all or
substantially all of the Company's Common Stock or assets to a third party.

     (g) Repurchase Price. The "Repurchase Price" shall be the product of:

          (a) the number of shares of Common Stock to be sold pursuant to this
          Section 9 multiplied by

          (b) the Fair Market Value of the Common Stock as determined in
          accordance with Section 2.8(3).

     (h) Disagreement Concerning Computation of Fair Market Value. If a Holder
disagrees with the Fair Market Value computed under paragraph 9(g) hereof, the
Holder must notify the Company within five (5) days after he receives the
Company's notice of such Fair Market Value. Upon receiving such notice from the
Holder, the Company shall promptly engage the firm of independent certified
public accountants (the "Certified Public Accountants") that audits the
Company's financial statements to determine the Fair Market Value. The Certified

                                       14

<PAGE>   15

Public Accountants shall render a report to both the Company and the Holder
determining the Fair Market Value as soon thereafter as possible. The Fair
Market Value as determined by the Certified Public Accountants shall then be
used to determine the Repurchase Price of the Holder's Shares. The closing of
the Company's purchase of such Shares shall occur on the 5th day after the
rendering of such report. The Holder shall pay all fees and expenses of the
Certified Public Accountant with respect to the rendering of such report;
provided that if the Fair Market Value as determined by the Certified Public
Accountants is greater than 110 percent of the Fair Market Value as determined
by the Company, the Company shall pay such fees and expenses.

     (i) Transferees. The restrictions on the Transfer of the Shares of Common
Stock purchased pursuant hereto set forth in this Section 9 shall bind any
Permitted Transferee or other subsequent holder of such Shares, who shall be
treated as if he were the Holder (i.e., the Participant or Permitted Transferee)
when determining those restrictions. Moreover, any waiver of the Company's
election to purchase Shares of Common Stock pursuant to paragraph 9(b) hereof
shall not waive the Company's right to purchase such Shares from the Holder
thereof pursuant to paragraph 9(b) hereof if such Holder desires to Transfer
such Shares. If the Holder dies or becomes legally incompetent, his
administrator, executor, or representative shall be considered as if he were the
Holder for purposes hereof. The Transfer of Shares of Common Stock to the
Holder's administrator, executor, or representative (or estate in connection
therewith) shall not be considered a Transfer of those shares. The subsequent
Transfer of such shares from such administrator, executor, or representative (or
estate in connection therewith), however, shall be a Transfer.

     (j) Lock-Up Agreement. By participating herein, each Holder acknowledges
that in connection with any public offering of the Common Stock, the
underwriters for the Company may require that the Company's officers, directors,
and/or certain other shareholders not sell their shares of Common Stock for a
certain period of time after the effectiveness of the Registration Statement
filed in connection with such offering. By participating herein, each Holder
agrees that upon the Company's request in connection with any such public
offering, that he will not, directly or indirectly, offer, sell, contract to
sell, make subject to any purchase option, or otherwise dispose of any shares of
Common Stock for a period requested by the underwriter or its representative,
not to exceed 30 days before and 180 days after the date of the effectiveness of
the Registration Statement, without the prior written consent of the underwriter
or its representative.

     (k) Drag-Along Rights.

          (1) Prior to an IPO, initial firm commitment underwritten public
     offering of the Company Common Stock pursuant to a registration statement
     on Form S-1 or S-2 under the Securities Act of 1933, as amended, if the
     holders of 51% of the then outstanding shares of Common Stock (including
     Common Stock issuable upon conversion of Convertible Common Stock), decide
     to sell or otherwise dispose of their stock to an unrelated third party
     (other than by way of gift or transfer to a family member or family trust,
     partnership, or corporation), or vote to approve a tender offer or plan of
     merger, whereby the shares of Company Common stock and/or Convertible
     Common Stock will be sold, transferred, disposed of, or converted in cash,
     securities, or

                                       15

<PAGE>   16

     combination thereof, such majority shareholders shall have the right to
     require the Holder to likewise, on the same terms and conditions, sell,
     transfer, or dispose of, or accept such consideration in exchange for
     surrender of his shares of Common Stock or Convertible Common Stock, and by
     participating hereto, each Holder hereby agrees to do so.

          (2) Each Holder hereby waives his right of appraisal as provided by
     Section 262 of the Delaware General Corporation Law.

     Section 10. Effect of the Plan on Employment Relationship. Neither the Plan
nor any Option and/or Award granted hereunder to a Participant shall be
construed as altering the "at-will" nature of Participant's employment or
conferring upon such Participant any right to continue in the employ of (or
otherwise provide services to) the Company or any Subsidiary or Parent thereof,
or limit in any respect the right of the Company or any Subsidiary or Parent
thereof to terminate such Participant's employment or other relationship with
the Company or any Subsidiary or Parent, as the case may be, at any time.

     Section 11. Amendment of the Plan. The Committee or Board of Directors may
amend or suspend the Plan or any portion thereof at any time, provided such
amendment is made with stockholder approval if such approval is necessary to
comply with any tax or regulatory requirement. The Committee in its sole
discretion may amend the Plan so as to conform with local rules and regulations
subject to any provisions to the contrary specified herein.

     Section 12. Amendment of an Option or Award Agreement. In its sole and
complete discretion, the Committee may at any time amend any Option or Award
Agreement for the following reasons: (i) additions and/or changes to the Code,
any federal or state securities law, or other law or regulations applicable to
the Option or Award, are made, and such additions and/or changes have some
effect on the Option or Award; or (ii) any other event not described in clause
(i) occurs and the Participant gives his or her consent to such amendment.

     Section 13. Exemption from Computation of Compensation for Other Purposes.
By acceptance of an applicable Option or Award, subject to the conditions of
such Option or Award, each Participant shall be considered in agreement that all
shares sold or awarded and all Options granted under this Plan shall be
considered special incentive compensation and will be exempt from inclusion as
"wages" or "salary" in pension, retirement, life insurance, and other employee
benefits arrangements of the Company, except as determined otherwise by the
Company. In addition, each beneficiary of a deceased Participant shall be in
agreement that all such Options and Awards will be exempt from inclusion in
"wages" or "salary" for purposes of calculating benefits of any life insurance
coverage sponsored by the Company.

     Section 14. Listing, Registration and Other Legal Compliance. No Options,
Awards or shares of the Common Stock shall be required to be issued or granted
under the Plan unless legal counsel to the Company shall be satisfied that such
issuance or grant will be in compliance with all applicable federal and state
securities laws and regulations and any other applicable laws or regulations.
The Committee may require, as a condition of any payment or share issuance, that
certain agreements, undertakings, representations, certificates, and/or
information, as the Committee may deem necessary or advisable, be executed or
provided to the Company to assure compliance with all such applicable laws or
regulations. Any certificates for shares of Common

                                       16

<PAGE>   17

Stock delivered under the Plan may be subject to such stock-transfer orders and
such other restrictions as the Committee may deem advisable under the rules,
regulations, or other requirements of the Securities and Exchange Commission,
any stock exchange upon which the Common Stock is then listed, and any
applicable federal or state securities law. In addition, if, at any time
specified herein (or in any Agreement or otherwise) for (a) the making of any
Option or Award, or the making of any determination, (b) the issuance or other
distribution of Common Stock, or (c) the payment of amounts to or through a
Participant or Permitted Transferee with respect to any Option or Award, any
law, rule, regulation, or other requirement of any governmental authority or
agency shall require the Company, any affiliate, or any Participant or Permitted
Transferee (or any estate, designated beneficiary, or other legal representative
thereof) to take any action in connection with any such determination, any such
shares to be issued or distributed, any such payment, or the making of any such
determination, as the case may be, shall be deferred until such required action
is taken.

     Section 15. Rights as Stockholder. Subject to the Award provisions, no
Participant, Permitted Transferee or beneficiary shall be deemed a stockholder
of the Company nor have any rights as such with respect to any shares to be
provided under the Plan until he or she has become the holder of such shares.
Notwithstanding the aforementioned, with respect to restricted stock Awards
under this Plan, the Participant, Permitted Transferee or beneficiary of such
Award shall be deemed the owner of such shares provided herein. As such, unless
contrary to the provisions herein or in any such related Agreement, such
stockholder shall be entitled to full voting, dividend and distribution rights
as provided any other Company stockholder for as long as the Participant or
Permitted Transferee continues to be deemed the owner of such stock.

     Section 16. Construction of the Plan. The Plan, and its rules, rights,
agreements and regulations, shall be governed, construed, interpreted and
administered solely in accordance with the laws of the state of Delaware. In the
event any provision of the Plan shall be held invalid, illegal or unenforceable,
in whole or in part, for any reason, such determination shall not affect the
validity, legality or enforceability of any remaining provision, portion of
provision or the Plan overall, which shall remain in full force and effect as if
the Plan had been absent the invalid, illegal or unenforceable provision or
portion thereof

     Section 17. Termination of the Plan. The Board of Directors may terminate
the Plan at any time. Unless the Plan shall theretofore have been terminated by
the Board of Directors, the Plan shall terminate ten years after the date of its
initial adoption by the Board of Directors. No Option and/or Award may be
granted hereunder after termination of the Plan. The termination or amendment of
the Plan shall not alter or impair any rights or obligations under any Option
and/or Award theretofore granted under the Plan.

     Section 18. Effective Date of the Plan. The Plan shall be effective as of
June 1, 2000, the date on which the Plan was adopted by the Board of Directors
of the Company.

                                     * * * *

                                       17

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