Document:

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                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is dated as of
February 18, 2000 by and among e-centives, Inc. (the "Company") and each holder
of "Series C Preferred Stock" (as that term is defined below) listed on Schedule
1 attached hereto (each a "Series C Holder"; collectively, the "Series C
Holders"). The Series C Holders, together with their respective successors and
assigns, are sometimes hereinafter referred to collectively as the "Investors"
and individually as an "Investor." The Investors and any other persons or
entities (except the Company) becoming a party hereto or being bound by the
provisions hereof are hereinafter sometimes referred to collectively as
"Stockholders" or individually as a "Stockholder."

                                    RECITALS

     A. The Company and the Investors are parties to a Series C Convertible
Preferred Stock Purchase Agreement dated as of February 18, 2000 (the "Purchase
Agreement"). A condition precedent to the obligations of the Company and the
Investors under the Purchase Agreement is the execution and delivery by the
parties hereto of this Agreement;

     B. On the date hereof, each Investor is purchasing that number of shares of
the Company's Series C Convertible Preferred Stock, par value $.01 per share
(the "Series C Preferred Stock"), as is set forth opposite such Investor's name
in Schedule 1 attached hereto; and

     C. The Company and the Investors wish to enter into this Agreement in order
to provide the Investors with certain registration rights with respect to the
Company's "Capital Stock" (as that term is defined below).

     NOW, THEREFORE, in consideration of these premises and mutual agreements,
covenants and provisions herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     Section 1.1 Definitions.

     The following definitions shall be applicable to the terms set forth below
as used in this Agreement:

          "Affiliate." The term "Affiliate" means, with respect to any Person,
any other Person which directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with such
Person.

          "Board." The term "Board" shall mean the Board of Directors of the
Company.

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          "Capital Stock." The term "Capital Stock" means the capital stock of
the Company, including, without limitation, the Common Stock, the Series A
Preferred Stock, the Series B Preferred Stock, and the Series C Preferred
Stock.

          "Commission." The term "Commission" shall mean the Securities and
Exchange Commission or any other federal agency at the time administering the
federal securities laws.

          "Common Stock." The term "Common Stock" shall mean the common stock of
the Company, par value $.01 per share.

          "Company's Notice." The term "Company's Notice" shall have the meaning
set forth in Section 2.3 hereof.

          "Conversion Shares." The term "Conversion Shares" shall mean any
shares of Common Stock issued or issuable upon conversion of shares of a
particular series of Preferred Stock.

          "Initiating Holders." The term "Initiating Holders" shall mean the
holders of Registrable Stock initially requesting registration of Registrable
Stock pursuant to Section 2.1(c) of this Agreement.

          "Long-Form Registration Statement." The term "Long-Form Registration
Statement" shall mean a registration statement on Form S-1, Form S-2 or any
similar form of registration statement adopted by the Commission from and after
the date hereof.

          "Permitted Transferee." The term "Permitted Transferee" shall mean,
with respect to any Investor, (i) any other Investor; (ii) any Affiliate of any
Investor; (iii) any spouse, child and grandchild of an Investor, or a trust for
the benefit of any one or more members of such person; or (iv) any shareholder
or partner of any non-natural Investor upon a pro rata distribution by a
partnership or limited liability company to its partners or members or otherwise
upon the dissolution or liquidation of the non-natural Investor.

          "Person." The term "Person" shall mean any individual, firm,
corporation, partnership, limited liability company, trust, joint venture,
governmental authority or other entity, and shall include any successor (by
merger or otherwise) of such entity.

          "Preferred Stock." The term "Preferred Stock" shall mean,
collectively, the Series A Preferred Stock, the Series B Preferred Stock, and
the Series C Preferred Stock.

          "Qualified Initial Public Offering" or "QIPO." The term "Qualified
Initial Public Offering" or "QIPO" shall mean a public offering of the Common
Stock (other than a registration relating either to the sale of securities to
employees of the Company pursuant to a stock option, stock purchase or similar
plan or a transaction under Rule 145 of the Securities Act, or a registration on
any form which does not include substantially the same information as would be
required to be included in a registration statement covering the sale of
Registrable Stock), resulting in aggregate net proceeds (after expenses and
underwriting discounts) to the Company of not less than twenty million dollars
($20,000,000).

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          "Register." The terms "register," "registered" and "registration"
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act.

          "Registrable Stock." The term "Registrable Stock" shall mean, (i) any
Conversion Shares from the Series C Preferred; (ii) any shares of Common Stock
issued or issuable with respect to such Conversion Shares by reason of a stock
dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization; and (iii) any
other shares of Common Stock now held or hereafter acquired by an Investor that
are not attributable to the Series C Preferred. A Person shall be deemed to be a
holder of Registrable Stock when such Person has a right to acquire such
Registrable Stock (whether by conversion or otherwise) regardless of whether
such acquisition has actually been effected. Each share of Registrable Stock
shall continue to be Registrable Stock in the hands of each subsequent holder
thereof subject to the limitations set forth in Section 2.14 hereof; provided,
however, that each share of Registrable Stock shall cease to be Registrable
Stock when (x) transferred by an Investor to any Person who is not a Permitted
Transferee, or if the transfer does not comply with the terms of Section 2.12 of
this Agreement, (y) a registration statement covering all Registrable Stock has
been declared effective under the Securities Act by the SEC and such Registrable
Stock has been disposed of pursuant to such effective registration statement, or
(z) the entire amount of Registrable Stock proposed to be sold in a single sale
may be distributed to the public without any limitation as to volume for such
sale pursuant to Rule 144 (or any successor provision then in effect) under the
Securities Act.

          "Requesting Holders." The term "Requesting Holders" shall have the
meaning set forth in Section 2.1(c) hereof.

          "Securities Act." The term "Securities Act" shall mean the Securities
Act of 1933, as amended.

          "Series A Preferred Stock." The term "Series A Preferred Stock" shall
mean the Company's Series A Convertible Preferred Stock, $.01 par value per
share.

          "Series B Preferred Stock." The term "Series B Preferred Stock" shall
mean the Company's Series B Convertible Preferred Stock, $.01 par value per
share.

          "Short-Form Registration Statement." The term "Short-Form Registration
Statement" shall mean a registration statement on Form S-3 or any similar form
of registration statement adopted by the Commission from and after the date
hereof.

          "Transaction Documents." The term "Transaction Documents" means,
collectively, this Agreement and the Purchase Agreement.

     Section 1.2 Additional Definitions.

     In addition to the foregoing, capitalized terms used in this Agreement and
not otherwise defined in this Article I shall have the meanings so given to such
terms herein.

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                                   ARTICLE II
                               REGISTRATION RIGHTS

     Section 2.1 Required Registrations.

          (a) If, at any time after the earlier of six months after the closing
of a QIPO or February __, 2002, the Investors propose to dispose of shares of
Common Stock with an estimated offering price of at least $10,000,000, then such
Investors may request in writing that the Company effect a registration
statement, stating the number of shares of Registrable Stock to be disposed of
and the intended method of disposition of such shares.

          (b) If, at any time at which the Company is eligible to file a
registration statement on a Short-Form Registration Statement, holders of
Registrable Stock propose to dispose of shares of Registrable Stock with an
estimated offering price of at least $3,000,000, then such holders may request
in writing that the Company effect such registration on a Short-Form
Registration Statement, stating the number of shares of Registrable Stock to be
disposed of and the intended method of disposition of such shares.

          (c) Upon receipt of the request of the Investors pursuant to Section
2.1(a) or 2.1(b) above (in the case of Section 2.1(a) or Section 2.1(b),
hereinafter referred to as the "Initiating Holders"), the Company shall give
prompt written notice thereof to all other holders of Registrable Stock. Subject
to the provisions of Section 2.2 below, the Company shall use its reasonable
best efforts promptly to file with the Commission the applicable registration
statement to register under the Securities Act all shares of Registrable Stock
specified in the requests of the Initiating Holders and the requests (stating
the number of shares of Registrable Stock to be disposed of and the intended
method of disposition of such shares) of other holders of shares of Registrable
Stock (the "Requesting Holders") given within 30 days after receipt of such
notice from the Company.

     Section 2.2 Limitations on Required Registration.

          (a) The Company shall not be required to prepare and file more than
(i) two (2) Long-Form Registration Statements and (ii) three (3) Short-Form
Registration Statements in any 12-month period, which actually become or are
declared effective, at the request of the Initiating Holders pursuant to Section
2.1(a) or (b) hereof.

          (b) (i) Only Common Stock may be included in a registration, and,
whenever a registration requested by Initiating Holders of Registrable Stock is
for a firm commitment underwritten offering, if the managing underwriter of the
offering determines that the number of shares of Common Stock so included which
are to be sold by the holders of Registrable Stock should be limited due to
market conditions, the holders (including both the Initiating Holders and the
Requesting Holders) of Registrable Stock proposing to sell their shares of
Registrable Stock in such underwriting and registration shall share pro rata in
the available portion of the registration in question, such sharing to be based
upon the number of shares of Registrable Stock then held by the Initiating
Holders and Requesting Holders; provided, however, that the number

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of shares of Registrable Stock to be included in such underwriting shall not be
reduced unless all other securities are first excluded from the underwriting.

               (ii) If any holder of Registrable Stock disapproves of the terms
of the underwriting, such holder may elect to withdraw therefrom by written
notice to the Company, the underwriter and the Initiating Holders. The
Registrable Stock so withdrawn shall also be withdrawn from registration;
provided, however, that, if by the withdrawal of such Registrable Stock, a
greater number of shares of Registrable Stock held by other holders of
Registrable Stock may be included in such registration (up to the maximum of any
limitation imposed by the managing underwriter), then the Company shall offer to
all holders of Registrable Stock who have included Registrable Stock in the
registration the right to include additional Registrable Stock in the same
proportion used in determining the limitation imposed by the provisions of this
Section 2.2(b).

          (c) Notwithstanding the foregoing, if the Company shall furnish to the
Initiating Holders and Requesting Holders a certificate signed by the President
of the Company stating that, in the good faith judgment of the Board, it would
be seriously detrimental to the Company and its shareholders for such
registration statement to be filed and it is therefore essential to defer the
filing of such registration statement, the Company shall have the right to defer
such filing for a period of not more than 120 days after receipt of the request
of the Initiating Holders; provided, however, that the Company may not utilize
this right more than once in any 12-month period.

          (d) The Company shall not be obligated to effect, or take any action
to effect, a registration pursuant to Section 2.1 if the Company shall have
previously effected an underwritten registration with respect to Registrable
Stock pursuant to Section 2.1 until a period of 180 days shall have elapsed from
the effective date of the most recent such previous registration.

          (e) The Company shall not be obligated to effect, or take any action
to effect, a registration pursuant to Section 2.1 if, upon receipt of a
registration request pursuant to Section 2.1 hereof, the Company is advised in
writing (with a copy to each Initiating Holder) by a recognized national
independent investment banking firm selected by the Company that, in such firm's
opinion, a registration at the time and on the terms requested would adversely
affect any public offering of securities of the Company by the Company (other
than in connection with benefit and similar plans) (a "Company Offering") with
respect to which the Company has commenced preparations for a registration prior
to the receipt of a registration request pursuant to Section 2.1 hereof, until
the earlier of (i) 90 days after the completion of such Company Offering, (ii)
promptly after any abandonment of such Company Offering or (iii) 60 days after
the date of receipt of a registration request pursuant to Section 2.1.

          (f) The Company shall not be obligated to effect, or take any action
to effect, a registration pursuant to Section 2.1 in any particular jurisdiction
in which the Company would be required to execute a general consent to service
of process in effecting such registration, qualification or compliance, unless
the Company is already subject to service in such jurisdiction and except as may
be required by the Securities Act or applicable rules or regulations thereunder.

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     Section 2.3 Incidental (Piggyback) Registration. If the Company at any time
proposes to register any of its securities for sale for its own account or for
the account of any other Person (other than a registration relating to (i) the
sale of securities to employees of the Company pursuant to a stock option, stock
purchase or similar plan or a Rule 145 transaction, or a registration on any
form which does not include substantially the same information as would be
required to be included in a registration statement covering the sale of
Registrable Stock; or (ii) a registration pursuant to Section 2.1(a) or Section
2.1(b) above), it shall each such time give written notice (the "Company's
Notice"), at its expense, to all holders of Registrable Stock of its intention
to do so at least 30 days prior to the filing of a registration statement with
respect to such registration with the Commission. If any holder of Registrable
Stock desires to dispose of all or part of its Registrable Stock, it may request
registration thereof in connection with the Company's registration by delivering
to the Company, within 30 days after receipt of the Company's Notice, written
notice of such request (the "Investors' Notice") stating the number of shares of
Registrable Stock to be disposed of and the intended method of disposition of
such shares by such holder or holders. The Company shall use its reasonable best
efforts to cause all shares of Registrable Stock specified in the Investors'
Notice to be registered under the Securities Act so as to permit the sale or
other disposition (in accordance with the intended methods thereof as aforesaid)
by such holder or holders of the shares so registered, subject, however, to the
limitations set forth in Section 2.4 hereof.

     Section 2.4 Limitations on Incidental Registration.

          (a) If the registration of which the Company gives notice pursuant to
Section 2.3 above is for the purpose of permitting a disposition of securities
by the Company pursuant to a firm commitment underwritten offering, the notice
shall so state, and the Company shall have the right to limit the aggregate size
of the offering or the number of shares to be included therein by the
Stockholders if requested to do so in good faith by the managing underwriter of
the offering and only securities which are to be included in the underwriting
may be included in the registration.

          (b) Whenever the number of shares which may be registered pursuant to
Section 2.3 is limited by the provisions of Section 2.4(a) above, the holders of
Registrable Stock shall have priority as to sales over the other holders of the
Company's securities, and the Company shall cause such other holders to withdraw
their shares from such offering to the extent necessary to allow all requesting
holders of Registrable Stock to include all of the shares so requested to be
included within such registration. Whenever the number of shares which may be
registered pursuant to Section 2.3 is still limited by the provisions of Section
2.4(a) above, after the withdrawal of the other holders of the Company's
securities, the Company shall have priority as to sales over the holders of
Registrable Stock and each holder hereby agrees that it shall withdraw its
securities from such registration to the extent necessary to allow the Company
to include all the shares which the Company desires to sell for its own account
to be included within such registration; provided, however, that in no event
shall the Registrable Stock requested to be registered pursuant to this Section
2.4 be reduced to below one-third of the total amount securities included in
such registration. The holders of Registrable Stock given rights by Section 2.3
above and participating in an offering pursuant to Section 2.3 shall share pro
rata in

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the available portion of the registration in question, such sharing to be based
upon the number of shares of Registrable Stock then held by each of such
participating holders, respectively.

          (c) If at any time after giving a Company Notice, and prior to the
effective date of the registration statement filed pursuant thereto, the Company
shall determine for any reason not to register such securities, the Company may,
at its election, give written notice of such determination to the holders of
Registrable Stock and thereupon the Company shall be relieved of its obligation
to register such holders' Registrable Stock in connection with the registration
of such securities (but not from its obligation to pay Registration Expenses (as
defined below) to the extent incurred in connection therewith as provided
herein), without prejudice to the rights, if any, of the holders of Registrable
Stock immediately to request that such registration be effected as a required
registration under Section 2.1 hereof.

          (d) If the incidental registration relates to a firm commitment
underwritten public offering, the Company shall so advise the holders of
Registrable Stock in the Company Notice. In such case, the Company shall have
the right to select the underwriters for the underwriting, and the right of any
holder of Registrable Stock to participate in such registration shall be
conditioned upon such holder's participation in such underwriting in accordance
with the terms and conditions thereof. All holders of Registrable Stock
proposing to distribute their Registrable Stock through such underwriting shall
(together with the Company) enter into an underwriting agreement in customary
form with the representative of the underwriter or underwriters selected by the
Company.

     Section 2.5 Designation of Underwriter. In the case of any registration
initiated by the Initiating Holders pursuant to the provisions of Section 2.1
hereof which is proposed to be effected pursuant to a firm commitment
underwriting and, subject to the approval of the Company, which approval shall
not be unreasonably withheld, the Initiating Holders shall have the right to
designate the managing underwriter, and all holders of Registrable Stock
participating in the registration shall sell their shares only pursuant to such
underwriting.

     Section 2.6 Registration Procedures.

          (a) If and when the Company is required by the provisions of this
Agreement to use its reasonable best efforts to effect the registration of
shares of Registrable Stock, the Company shall:

               (i) prepare and file with the Commission a registration statement
(the form and substance of which shall be subject to the approval of the holders
of a majority of the Registrable Stock to be included in such registration) with
respect to such shares and use its reasonable best efforts to cause such
registration statement to become and remain effective for a period described in
Section 2.13 hereof;

               (ii) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectuses used in
connection therewith as may be necessary to keep such registration statement
effective and current and to comply with the provisions of the Securities Act
with respect to the sale or other disposition of all shares

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covered by such registration statement, including such amendments and
supplements as may be necessary to reflect the intended method of disposition
from time to time of the holder or holders of Registrable Stock who have
requested that any of their shares be sold or otherwise disposed of in
connection with the registration (collectively, the "Prospective Sellers");

               (iii) furnish to each Prospective Seller such number of copies of
each prospectus, including preliminary prospectuses, in conformity with the
requirements of the Securities Act, and such other documents as the Prospective
Seller may reasonably request in order to facilitate the public sale or other
disposition of the shares owned by it;

               (iv) use its reasonable best efforts to register or qualify the
shares covered by such registration statement under such other securities or
blue sky or other applicable laws of such jurisdictions as each Prospective
Seller shall reasonably request to enable such seller to consummate the public
sale or other disposition of the shares owned by such seller, provided that the
Company shall not be required in connection therewith or as an election thereto
to qualify to do business or to file a general consent to service of process in
any such jurisdiction;

               (v) upon written request, furnish to each Prospective Seller a
signed counterpart, addressed to the Prospective Sellers and their underwriters,
if any, of: (A) an opinion of counsel for the Company, dated the effective date
of the registration statement; and (B) a "comfort" letter signed by the
independent public accountants of the Company who have certified the Company's
financial statements included in the registration statement, covering
substantially the same matters with respect to the registration statement (and
the prospectus included therein) and (in the case of the accountants' "comfort"
letter) with respect to the events subsequent to the date of the financial
statements, as are customarily covered (at the time of such registration) in the
opinions of issuers' counsel and in accountants' letters delivered to the
underwriters in connection with underwritten public offerings of securities;

               (vi) cause all such Registrable Stock to be listed on each
securities exchange or other securities trading market on which similar
securities issued by the Company are then listed;

               (vii) provide a transfer agent and registrar for all such
Registrable Stock not later than the effective date of such registration
statement;

               (viii) enter into such customary agreements (including an
underwriting agreement) and take all such other customary actions as the holders
of a majority of the Registrable Stock being sold reasonably request in order to
expedite or facilitate the disposition of such Registrable Stock; and

               (ix) make available for inspection by any Prospective Seller, any
underwriter participating in any disposition pursuant to such registration
statement, and any attorney, accountant or other agent retained by any such
seller or underwriter, all reasonable financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company's
officers, directors and employees to supply all information reasonably

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requested by any such seller, underwriter, attorney, accountant or agent in
connection with the preparation of such registration statement.

          (b) Each Prospective Seller of Registrable Stock shall furnish to the
Company such information as the Company may reasonably require from the
Prospective Seller for inclusion in the registration statement (and the
prospectus included therein).

          (c) The Prospective Sellers shall not (until further notice) effect
sales of the shares covered by the registration statement after receipt of
facsimile or other written notice from the Company to suspend sales to permit
the Company to correct or update a registration statement or prospectus.

     Section 2.7 Registration Expenses.

     The Company shall pay all registration expenses relating to the
Registration Statements under Sections 2.1(a), 2.1(b) and 2.3 including all
registration and filing fees, exchange listing fees, printing expenses, fees and
disbursements of counsel for the Company and the fees and expenses of one (1)
counsel for the holders of Registrable Stock selected by a majority of the
holders of Registrable Stock, state Blue Sky fees and expenses, the expense of
any special audits incident to or required by any such registration, and
reasonable expenses relating to all marketing and promotional efforts requested
by the managing underwriter, but shall exclude Selling Expenses. As used herein,
the term "Selling Expenses" shall mean, collectively, underwriting discounts,
selling commissions, brokerage fees, and the fees and expenses of counsel for
each holder of Registrable Stock (other than the counsel selected to represent
all holders of Registrable Stock).

     Section 2.8 Indemnification.

          (a) In the event of any registration of any of its securities under
the Securities Act pursuant to this Agreement, the Company shall indemnify and
hold harmless each Prospective Seller, each underwriter (as defined in the
Securities Act) and each controlling person of any Prospective Seller or
underwriter, if any (within the meaning of the Securities Act), against any
losses, claims, damages or liabilities, joint or several (or actions in respect
thereof), to which such Prospective Seller, underwriter or controlling person
may be subject under the Securities Act, under any other statute or at common
law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon (i) any untrue statement (or
alleged untrue statement) of any material fact contained in any registration
statement under which such securities were registered under the Securities Act,
any preliminary prospectus or final prospectus contained therein, or any summary
prospectus issued in connection with any securities being registered, or any
amendment or supplement thereto, or any other document, (ii) any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, or (iii) any
violation by the Company of the Securities Act or any blue sky law, or any rule
or regulation promulgated under the Securities Act or any blue sky law, or any
other law, applicable to the Company in connection with any such registration,
qualification or compliance of any shares of Registrable Stock, and shall
reimburse each such Prospective Seller, underwriter or controlling person for
any legal or other

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expenses reasonably incurred by such Prospective Seller, underwriter or
controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company shall
not be liable to any Prospective Seller, underwriter or controlling person in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or omission made in
such registration statement, preliminary prospectus, summary prospectus, final
prospectus, or amendment or supplement thereto, or any other document, in
reliance upon and in conformity with written information furnished to the
Company by such Prospective Seller, underwriter or controlling person,
respectively, specifically for use therein. The indemnity provided for herein
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Prospective Seller, underwriter or controlling person, and
shall survive the transfer of such securities by such Prospective Seller.

          (b) The Company may require, as a condition to including any
Registrable Stock of a Prospective Seller in any registration statement filed
pursuant to Section 2.1 or Section 2.3, that the Company shall have received an
undertaking satisfactory to it from such Prospective Seller, severally and not
jointly, to indemnify and hold harmless (in the same manner and to the same
extent as set forth in Section 2.8(a)) the Company, each director of the
Company, each officer of the Company who shall sign such registration statement
and each other person, if any, who controls the Company within the meaning of
the Securities Act (except the indemnifying Prospective Seller, if such
indemnifying Prospective Seller so controls the Company), with respect to (i)
any untrue statement (or alleged untrue statement) of any material fact
contained in any registration statement under which such securities were
registered under the Securities Act, any preliminary prospectus or final
prospectus contained therein, or any summary prospectus issued in connection
with any securities being registered, or any amendment or supplement thereto, or
any other document, (ii) any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or (iii) any violation by the Prospective Seller of the
Securities Act or any blue sky law, or any rule or regulation promulgated under
the Securities Act or any blue sky law, or any other law, applicable to the
Company in connection with any such registration, qualification or compliance of
any shares of Registrable Stock, in each case if such statement or omission was
made in reliance on and in conformity with written information furnished to the
Company by such Prospective Seller specifically for use in preparing any such
registration statement, preliminary prospectus, final prospectus, summary
prospectus or amendment or supplement thereto, or in making any such filing or
representation. Each Prospective Seller hereunder shall promptly provide such
indemnification upon request. In no event shall a Prospective Seller's
obligation to indemnify any Person hereunder exceed the net proceeds from the
sale of the Prospective Seller's Registrable Stock in the offering. The
indemnity provided for herein shall remain in full force and effect regardless
of any investigation made by or on behalf of the indemnified party and shall
survive any transfer of the Registrable Stock held by the indemnifying party.

          (c) If the indemnification provided for in Section 2.8(a) or Section
2.8(b) above is unavailable to an indemnified party in respect of any losses,
claims, damages or liabilities referred to therein, then the indemnifying party,
in lieu of indemnifying such indemnified party thereunder, shall contribute to
the amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities, in such proportion as is appropriate

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to reflect the relative fault of the indemnifying party on the one hand and of
the indemnified parties on the other in connection with the statements or
omissions or violations which resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and of the indemnified parties shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified
parties, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

          The Company and the Stockholders agree that it would not be just and
equitable if contribution pursuant to this Section 2.8(c) were determined by pro
rata allocation or by any other method of allocation which does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages and liabilities or actions in respect thereof referred
to in the immediately preceding paragraph shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 2.8(c), no
Prospective Seller shall be required to contribute any amount in excess of the
net proceeds from the sale of the Prospective Seller's Registrable Stock in the
Offering. No person guilty of fraudulent misrepresentations (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Company
may require, as a condition to including any Registrable Stock of a Prospective
Seller in any registration statement filed pursuant to Section 2.1 or Section
2.3, that the Company shall have received an undertaking satisfactory to it from
such Prospective Seller of such Registrable Stock, severally and not jointly, to
contribute to the amount paid or payable by an indemnified party hereunder as
and to the extent set forth in this Section 2.8(c), and each Prospective Seller
hereunder shall promptly provide such undertaking upon request.

          (d) Promptly after receipt by an indemnified party under Section
2.8(a) or Section 2.8(b) above of written notice of the commencement of any
action, such indemnified party promptly shall, if a claim in respect thereof is
to be made under such Section, notify the indemnifying party in writing of the
commencement thereof; but the omission so to notify the indemnifying party shall
relieve it from any liability which it may have had to any indemnified party
hereunder only to the extent that it has been prejudiced as a proximate result
of such failure. In case any such action shall be brought against any
indemnified party, and it shall notify promptly the indemnifying party of the
commencement thereof, the indemnifying party shall assume the defense thereof,
with counsel satisfactory to such indemnified party (such approval not to be
unreasonably withheld or delayed); provided, however, that, if the defendants in
any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded that there may be
legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party, the
indemnified party or parties shall have the right to select separate counsel to
assert such legal defenses (in which case the indemnifying party shall not have
the right to direct the defense of such action on behalf of the indemnified
party or parties). Upon the assumption by the

                                     - 11 -
<PAGE>   12

indemnifying party of the defense of such action, and approval by the
indemnified party of counsel, the indemnifying party shall not be liable to such
indemnified party under this Section 2.8 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof unless (i) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time, (ii) the indemnified party and its counsel do not actively
and vigorously pursue the defense of such action, or (iii) the indemnifying
party has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party.

     Section 2.9 Rights Which May Be Granted to Other Persons.

     The Company shall not grant any Person registration rights which shall in
any way whatsoever impair the priority of the registration rights granted to the
Investors in this Agreement.

     Section 2.10 Rule 144 Requirements.

     Immediately after the date on which a registration statement filed by the
Company under the Securities Act becomes effective, the Company shall undertake
to make publicly available, and available to the holders of Registrable Stock,
such information as is necessary to enable the holders of Registrable Stock to
make sales of Registrable Stock pursuant to Rule 144 of the Securities Act. The
Company shall furnish to any holder of Registrable Stock, upon request, a
written statement executed by the Company as to the steps it has taken to comply
with the current public information requirements of Rule 144.

     Section 2.11 Sale of Preferred Stock to Underwriter.

     Notwithstanding any provision of this Agreement to the contrary, in lieu of
converting any shares of Preferred Stock prior to the filing of any registration
statement filed pursuant to this Agreement, the holder of such shares may sell
such shares of Preferred Stock to the underwriters of the offering being
registered upon the undertaking of such underwriters to convert the Preferred
Stock at the closing of the offering. The Company agrees to cause the Common
Stock issuable on the conversion of the Preferred Stock to be issued within such
time period as will permit the underwriters to make and complete the
distribution contemplated by the underwriting.

     Section 2.12 Transfer of Registration Rights.

     The registration rights of any Investor under this Agreement may be
transferred only to any transferee who acquires at least twenty percent (20%) of
such Investor's Registrable Stock (held as of the date of the initial issuance
of the Series C Preferred).

     Section 2.13 Effective Period of Registration.

     Once any registration effected by the Company pursuant to this Article II
becomes effective, the Company shall file all reports, financial statements and
other documents necessary to keep such registration statement current and the
registration in effect until the earlier of (i) the

                                     - 12 -
<PAGE>   13

sale of all securities offered for sale pursuant to the registration statement,
or (ii) three months from the effective date of the registration statement.

     Section 2.14 Changes in Preferred Stock or Common Stock.

     If, and as often as, there is any change in the Preferred Stock or Common
Stock by way of a stock split, stock dividend, combination or reclassification,
or through a merger, consolidation, reorganization or recapitalization, or by
any other means, appropriate adjustment shall be made in the provisions hereof
so that the rights and privileges granted hereby shall continue with respect to
the Preferred Stock or Common Stock as so changed.

                                   ARTICLE III
                                  MISCELLANEOUS

     Section 3.1 Specific Performance.

     Inasmuch as the shares of the Company's Capital Stock cannot be readily
purchased or sold in the open market, irreparable damage would result in the
event that the provisions of this Agreement are not specifically enforced.
Therefore, the rights to, or obligations of, the parties hereto shall be
enforceable in a court of equity by a decree of specific performance and
appropriate injunctive relief may be applied for and granted in connection
therewith. Such remedies, and all other remedies provided for in this Agreement,
shall, however, be cumulative and not exclusive and shall be in addition to any
other remedies which any party may have under this Agreement or otherwise.

     Section 3.2 Endorsement of Certificate.

     Upon the execution of this Agreement, each certificate for shares of
Capital Stock now registered or to be issued in the name of the Stockholders
shall be endorsed by the Secretary of the Company as follows:

          "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAW. THE SHARES
     MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF (I) AN EFFECTIVE
     REGISTRATION STATEMENT UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES
     LAW, (II) A "NO ACTION" LETTER OF THE SECURITIES AND EXCHANGE COMMISSION
     WITH RESPECT TO SUCH SALE OR OFFER, OR (III) AN OPINION OF COUNSEL
     REASONABLY SATISFACTORY TO THE CORPORATION THAT REGISTRATION UNDER SUCH ACT
     AND ANY APPLICABLE STATE SECURITIES LAW IS NOT REQUIRED WITH RESPECT TO
     SUCH SALE OR OFFER."

     All certificates for any shares of Capital Stock hereinafter issued to the
Stockholders shall bear the same endorsement, and this Agreement shall cover all
such shares of Capital Stock.

     Section 3.3 Term.

                                     - 13 -
<PAGE>   14

     Notwithstanding anything contained herein to the contrary, this Agreement
shall terminate, and all rights and obligations hereunder shall cease, upon the
earlier to occur of the termination of this Agreement as provided by applicable
Maryland law or the occurrence of any of the following events:

          (a)  The written agreement of each of the then parties hereto;

          (b)  The cessation of the Company's business; or

          (c)  The third anniversary of the Company's QIPO.

     Section 3.4 Notices.

     All notices, offers, acceptances, requests and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
delivered or mailed by certified or registered mail to the Stockholders at their
addresses on the Company records, and to the Company at the Company's principal
place of business. Any party hereto may change his or its address for notice by
giving notice thereof in the manner herein above provided.

     Section 3.5 Parties in Interest.

     All covenants and agreements contained in this Agreement, by or on behalf
of any of the parties executing this Agreement shall bind such parties, and
shall bind and inure to the benefit of the respective successors and permitted
assigns of the parties hereto whether so expressed or not; provided, however,
that the foregoing shall not in and of itself permit the assignment of the
rights and obligations hereunder or thereunder.

     Section 3.6 Governing Law.

     This Agreement shall be governed by and construed in accordance with the
internal laws of the State of Maryland, without giving effect to its conflicts
of laws provisions. The parties hereto agree and acknowledge that each party has
retained counsel in connection with the negotiation and preparation of this
Agreement and the other Transaction Documents, and that any rule of construction
to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of the foregoing agreements or any
amendment, schedule or exhibits thereto.

     Section 3.7 Entire Agreement.

     This Agreement and the other Transaction Documents, including all related
schedules and exhibits, constitute the entire understanding and agreement of the
parties hereto, and supersede all prior agreements and understandings, oral and
written, among the parties hereto with respect to the subject matter hereof and
thereof.

     Section 3.8 Counterparts.

                                     - 14 -
<PAGE>   15

     This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

     Section 3.9 Amendments.

     This Agreement may not be amended or modified, and no provisions hereof may
be waived, without the written consent of the Company and each of the Investors.

     Section 3.10 Severability.

     Each provision of this Agreement shall be treated as a separate and
independent clause, and the unenforceability of any one clause shall in no way
impair the enforceability of any of the other clauses herein. If one or more of
the provisions contained in this Agreement shall for any reason be held to be
excessively broad as to scope, activity, subject or otherwise so as to be
unenforceable at law, such provision or provisions shall be construed by the
appropriate judicial body by limiting or reducing it or them, so as to be
enforceable to the maximum extent compatible with the applicable law as it shall
then appear.

     Section 3.11 Titles and Subtitles.

     The titles and subtitles used in this Agreement are for convenience only
and are not to be considered in construing or interpreting any term or provision
of this Agreement.

     Section 3.12 Pronouns.

     All pronouns used herein shall be deemed to refer to the masculine,
feminine or neuter gender as the context requires.

                    [Signatures Appear On The Following Page]

                                     - 15 -
<PAGE>   16

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement under
seal as of the date first above written.

WITNESS/ATTEST:                          e-centives, Inc.

                                         /s/ KAMRAN AMJADI
                                         ---------------------------------------

/s/ MEHRDAD AKHAVAN                      By: /s/ KAMRAN AMJADI            (SEAL)
--------------------------------             -----------------------------
Name: Mehrdad Akhavan                         Name: Kamran Amjadi
     ---------------------------                  ------------------------
Title: President & COO                       Title: CEO
      --------------------------                   -----------------------

                                     - 16 -
<PAGE>   17

                                        PURCHASERS:

                                        VENTURETEC, INC.

                                        By: /s/ PETER FRIEDLI
                                           -------------------------------------
                                        Title: President
                                              ----------------------------------

                                        PETER FRIEDLI

                                        /s/ PETER FRIEDLI
                                        ----------------------------------------

                                        SPRING TECHNOLOGY CORP.

                                        By: [Illegible]
                                           -------------------------------------
                                        Title: INVESTMENT MANAGER
                                              ----------------------------------

                                         (continued on next page)

                                        [Registration Rights Agreement]

<PAGE>   18

                                      SWISSFIRST BANK AG

                                      By: /s/ THOMAS MATTER/ /s/ WERNER ERISMANN
                                         ---------------------------------------
                                      Title: Chief Executive Officer/ Chief Risk
                                             Officer
                                            ------------------------------------

                                      POWER EQUITY AG

                                      By: H. GLAUS
                                         ---------------------------------------
                                      Title: Vice Chairman
                                            ------------------------------------

                                      WORLD COMMUNICATIONS AG

                                      By: /s/ DR. KURTALIG /s/ RENE WILLI
                                         ---------------------------------------
                                      Title: Director           Director
                                            ------------------------------------

                                      BG INVESTMENTS LTD.

                                      By:  [Illegible]
                                         ---------------------------------------
                                      Title: Director/Member of the Board
                                            ------------------------------------

                                       (continued on next page)

                                      [Registration Rights Agreement]

<PAGE>   19

                                        THIRY-FIVE EAST PARTNERS (ONE) LLC

                                        By: /s/ TODD J. SLOKIN
                                           -------------------------------------
                                        Title: Executive Vice President
                                              ----------------------------------

                                         (continued on next page)

                                        [Registration Rights Agreement]

<PAGE>   20

                                        EXCITE, INC.

                                        By: /s/ Mark Stevens
                                           -------------------------------------
                                        Title: Executive Vice President
                                              ----------------------------------

                                        SELIGMAN COMMUNICATIONS AND
                                        INFORMATION FUND, INC.

                                        By: J&W Seligman & Co.
                                            Incorporated, its investment advisor

                                        By: [Illegible]
                                           -------------------------------------
                                        Title: Managing Director
                                              ----------------------------------

                                        SELIGMAN NEW TECHNOLOGIES FUND, INC.

                                        By: J&W Seligman & Co.
                                            Incorporated, its investment advisor

                                        By:  [Illegible]
                                           -------------------------------------
                                        Title: Managing Director
                                              ----------------------------------

                                        SELIGMAN INVESTMENT OPPORTUNITIES
                                        (MASTER) FUND - NTV PORTFOLIO

                                        By: J&W Seligman & Co.
                                            Incorporated, its investment advisor

                                        By: [Illegible]
                                           -------------------------------------
                                        Title: Managing Director
                                              ----------------------------------

                                        MOORE GLOBAL INVESTMENTS, LTD.

                                        By: Moore Capital Management, Inc.
                                            Trading Manager

                                        By: /s/ Savvas Savvinidis
                                           -------------------------------------
                                                Savvas Savvinidis

                                        Title: Director of Operations
                                              ----------------------------------

                                        REMINGTON INVESTMENT STRATEGIES LP

                                        By: [Illegible]
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

                                        MOORE TECHNOLOGY VENTURE FUND, LP II

                                        By: Moore Capital Management, Inc.
                                            Trading Manager

                                        By: /s/ Savvas Savvinidis
                                           -------------------------------------
                                                Savvas Savvinidis

                                        Title: Director of Operations
                                              ----------------------------------

                                        [Registration Rights Agreement]

<PAGE>   21

                                   SCHEDULE 1

<TABLE>
<CAPTION>
                                                                  NUMBER         PURCHASE
NAME                                                            OF SHARES         PRICE
----                                                            ---------     --------------
<S>                                                             <C>           <C>
Venturetec, Inc.                                                  196,080     $    2,000,016

Peter Friedli                                                      49,608     $   506,001.60

Spring Technology, Inc.                                            49,020     $      500,004

Swissfirst Bank AG                                                 24,509     $   249,991.80

Power Equity Group AG                                              24,705     $      251,991

World Communications Development AG                                48,235     $      491,997

BG Investments Ltd.                                                98,039     $   999,997.80

Seligman Communications & Information Fund, Inc.                   98,039     $   999,997.80

Seligman New Technologies Fund, Inc.                              542,157     $ 5,530,001.40

Seligman Investment Opportunities Fund - NTV Portfolio            144,118     $ 1,470,003.60

Excite, Inc.                                                      367,648     $ 3,750,009.60

Moore Global Investments, Ltd.                                    196,079     $ 2,000,005.80

Remington Investment Strategies, LP                                49,019     $   499,993.80

Moore Technology Venture Fund, LP II                              245,099     $ 2,500,009.80

Thirty-Five East Partners (One) LLC                               196,079     $ 2,000,005.80
                                                                ---------     --------------
         Totals                                                 2,328,434     $23,750,026.80
</TABLE><PAGE>   1
                                                                    Exhibit 10.1

                                 EMAGINET, INC.

                           1996 STOCK INCENTIVE PLAN

1.   Purpose

     The purpose of this 1996 Stock Incentive Plan (the "Plan") of EMAGINET,
INC., a Delaware corporation (the "Company"), is to advance the interests of
the Company's stockholders by enhancing the Company's ability to attract,
retain and motivate persons who make (or are expected to make) important
contributions to the Company by providing such persons with equity ownership
opportunities and performance-based incentives and thereby better aligning the
interests of such persons with those of the Company's stockholders. Except
where the context otherwise requires, the term "Company" shall include any
present and future subsidiary corporations of EMAGINET, INC. as defined in
Section 424(f) of the Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder (the "Code").

2.   Eligibility

     The Company's employees, consultants and advisors are eligible to be
granted options, restricted stock, or other stock-based awards (each, an
"Award") under the Plan provided that Incentive Stock Options shall be granted
only to employees of the Company. Any person who has been granted an Award
under the Plan shall be deemed a "Participant".

3.   Administration, Delegation

     (1) Administration by Board of Directors. The Plan will be administered by
the Board of Directors of the Company (the "Board"). The Board shall have
authority to grant Awards and to adopt, amend and repeal such administrative
rules, guidelines and practices relating to the Plan as it shall deem
advisable. The Board may correct any defect, supply any omission or reconcile
any inconsistency in the Plan or any Award in the manner and to the extent it
shall deem expedient to carry the Plan into effect and it shall be the sole and
final judge of such expediency. All decisions by the Board shall be made in the
Board's sole discretion and shall be final and binding on all persons having or
claiming any interest in the Plan or in any Award. No director or person acting
pursuant to the authority delegated by the Board shall be liable for any action
or determination relating to or under the Plan made in good faith.

     (2) Delegation to Executive officers. To the extent permitted by
applicable law, the Board may delegate to one or more executive officers of the
Company the power to make Awards and exercise such other powers under the Plan
as the Board may determine, provided that the Board shall fix the maximum
number of shares subject to Awards and the maximum number of shares for any one
Participant to be made by such executive officers.

     (3) Appointment of Committees. To the extent permitted by applicable law,
the

<PAGE>   2
Board may delegate any or all of its powers under the Plan to one or more
committees or subcommittees of the Board (a "Committee"). If and when the common
stock, $0.01 par value per share, of the Company (the "Common Stock") is
registered under the Securities Exchange Act of 1934 (the "Exchange Act"), the
Board shall appoint one such Committee of not less than two members, each member
of which shall be an "outside director" within the meaning of Section 162(m) of
the Code and a "non-employee director" as defined in Rule 16b-3 promulgated
under the Exchange Act. All references in the Plan to the "Board" shall mean
the Board or a Committee of the Board or the executive officer referred to in
Section 3(b) to the extent that the Board's powers or authority under the Plan
have been delegated to such Committee or executive officer.

4.   Stock Available for Awards

     (1)  Number of Shares. Subject to adjustment under Section 4(3), Awards may
be made under the Plan for up to ONE MILLION (1,000,000) shares of Common Stock.
If any Award expires or is terminated, surrendered or canceled without having
been fully exercised or is forfeited in whole or in part or results in any
Common Stock not being issued, the unused Common Stock covered by such Award
shall again be available for the grant of Awards under the Plan, subject,
however, in the case of Incentive Stock Options (as hereinafter defined), to any
limitation required under the Code. Shares issued under the Plan may consist in
whole or in part of authorized but unissued shares or treasury shares.

     (2)  Per-Participant Limit. Subject to adjustment under Section 4(3), for
Awards granted after the Common Stock is registered under the Exchange Act, the
maximum number of shares with respect to which an Award may be granted to any
Participant under the Plan shall be 500,000. The per-participant limit described
in this Section 4(2) shall be construed and applied consistently with Section
162(m) of the Code.

     (3)  Adjustment to Common Stock. In the event of any stock split, stock
dividend, recapitalization, reorganization, merger, consolidation, combination,
exchange of shares, liquidation, spin-off or other similar change in
capitalization or event, or any distribution to holders of Common Stock other
than a normal cash dividend, (i) the number and class of securities available
under this Plan, (ii) the number and class of security and exercise price per
share subject to each outstanding Option, (iii) the repurchase price per
security subject to each outstanding Restricted Stock Award, and (iv) the terms
of each other outstanding stock-based Award shall be appropriately adjusted by
the Company (or substituted Awards may be made, if applicable) to the extent the
Board shall determine, in good faith, that such an adjustment (or substitution)
is necessary and appropriate. If this Section 4(3) applies and Section 8(5)(1)
also applies to any event, Section 8(5)(1) shall be applicable to such event,
and this Section 4(3) shall not be applicable.

5.   Stock Options

     (1)  General. The Board may grant options to purchase Common Stock (each,
an "Option") and determine the number of shares of Common Stock to be covered by
each Option,

<PAGE>   3
the exercise price of each Option and the conditions and limitations applicable
to the exercise of each Option, including conditions relating to applicable
federal or state securities laws, as it considers necessary or advisable. An
Option which is not intended to be an Incentive Stock Option (as hereinafter
defined) shall be designated a "Nonstatutory Stock Option".

   (2)    Incentive Stock Options.  An Option that the Board intends to be an
"incentive stock option" as defined in Section 422 of the Code (an "Incentive
Stock Option") shall only be granted to employees of the Company and shall be
subject to and shall be construed consistently with the requirements of Section
422 of the Code. The Company shall have no liability to a Participant, or any
other party, if an Option (or any part thereof) which is intended to be an
Incentive Stock Option is not an Incentive Stock Option.

   (3)    Exercise Price.  The Board shall establish the exercise price at the
time each Option is granted and specify it in the applicable option agreement.

   (4)    Duration of Options.  Each Option shall be exercisable at such times
and subject to such terms and conditions as the Board may specify in the
applicable option agreement, except that, in the case of an Incentive Stock
Option, such Incentive Stock Option shall expire no later than ten years after
the date on which it is granted and, in all cases, options shall be subject to
earlier termination as provided in the Plan.

   (5)    Exercise of Option.  Options may be exercised only by delivery to the
Company of a written notice of exercise signed by the proper person together
with payment in full as specified in Section 5(6) for the number of shares for
which the Option is exercised.

   (6)    Payment Upon Exercise.  Common Stock purchased upon the exercise of
an Option granted under the Plan shall be paid for as follows:

     (1)    in cash or by check, payable to the order of the Company;

     (2)    except as the Board may otherwise provide in an Option Agreement,
delivery of an irrevocable and unconditional undertaking by a creditworthy
broker to deliver promptly to the Company sufficient funds to pay the exercise
price, or delivery by the Participant to the Company of a copy of irrevocable
and unconditional instructions to a creditworthy broker to deliver promptly to
the Company cash or a check sufficient to pay the exercise price;

     (3)    to the extent permitted by the Board and explicitly provided in an
Option Agreement (i) by delivery of shares of Common Stock owned by the
Participant valued at their fair market value as determined by the Board in good
faith ("Fair Market Value"), which Common Stock was owned by the Participant at
least six months prior to such delivery, (ii) by delivery of a combination of
cash equal to the par value of the Shares being purchased and a promissory note
of the Participant to the Company creating a binding obligation on the part of
Participant for the balance of the purchase price on terms determined by the
Board, or (iii) by payment of such other lawful consideration as the Board may
determine; or
<PAGE>   4
          (4) any combination of the above permitted forms of payment.

6.   Restricted Stock

     (1) Grants. The Board may grant Awards entitling recipients to acquire
shares of Common Stock, subject to the right of the Company to repurchase all or
part of such shares at their issue price or other stated or formula price (or to
require forfeiture of such shares to the extent payment has not been received)
from the recipient in the event that conditions specified by the Board in the
applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award (each,
"Restricted Stock Award").

     (2) Terms and Conditions. The Board shall determine the terms and
conditions of any such Restricted Stock Award, including the conditions for
repurchase (or forfeiture) and the issue price, if any. Any stock certificates
issued in respect of a Restricted Stock Award shall be registered in the name of
the Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its designee). At the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant to
receive amounts due or exercise rights of the Participant in the event of the
Participant's death (the "Designated Beneficiary"). In the absence of an
effective designation by a Participant, Designated Beneficiary shall mean the
Participant's estate.

7.   Other Stock-Based Awards

     The Board shall have the right to grant other Awards based upon the Common
Stock having such terms and conditions as the Board may determine, including
the grant of shares based upon certain conditions, the grant of securities
convertible into Common Stock and the grant of stock appreciation rights.

8.   General Provisions Applicable to Awards

     (1) Transferability of Awards. Except as the Board may otherwise determine
or provide in an Award, Awards shall not be sold, assigned, transferred, pledged
or otherwise encumbered by the person to whom they are granted, either
voluntarily or by operation of law, except by will or the laws of descent and
distribution, and, during the life of the Participant, shall be exercisable only
by the Participant. References to a Participant, to the extent relevant in the
context, shall include references to authorized transferees.

     (2) Documentation. Each Award under the Plan shall be evidenced by a
written instrument in such form as the Board shall determine. Each Award may
contain terms and conditions in addition to those set forth in the Plan.

     (3) Board Discretion. Except as otherwise provided by the Plan, each type
of Award may be made alone or in addition or in relation to any other type of
Award. The terms of each

<PAGE>   5
type of Award need not be identical, and the Board need not treat Participants
uniformly.

     (4)  Termination of Status.  The Board shall determine the effect on an
Award of the disability, death, retirement, authorized leave of absence or other
change in the employment or other status of a Participant and the extent to
which, and the period during which, the Participant, the Participant's legal
representative, conservator, guardian or Designated Beneficiary may exercise
rights under the Award.

     (5)  Acquisition Events

        (1)    Consequences of Acquisition Events.  Upon the occurrence of an
Acquisition Event (as defined below), or the execution by the Company of any
agreement with respect to an Acquisition Event, the Board shall take any one or
more of the following actions with respect to then outstanding Awards: (1)
provide that outstanding Options shall be assumed, or equivalent Options shall
be substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), provided that any such Options substituted for Incentive Stock Options
shall satisfy, in the determination of the Board, the requirements of Section
424(a) of the Code; (ii) upon written notice to the Participants, provide that
all then unexercised Options will become exercisable in full as of a specified
time (the "Acceleration Time") prior to the Acquisition Event and will terminate
immediately prior to the consummation of such Acquisition Event, except to the
extent exercised by the Participants between the Acceleration Time and the
consummation of such Acquisition Event; (iii) in the event of an Acquisition
Event under the terms of which holders of Common Stock will receive upon
consummation thereof a cash payment for each share of Common Stock surrendered
pursuant to such Acquisition Event (the "Acquisition Price"), provide that all
outstanding Options shall terminate upon consummation of such Acquisition Event
and each Participant shall receive, in exchange therefor, a cash payment equal
to the amount (if any) by which (A) the Acquisition Price multiplied by the
number of shares of Common Stock subject to such outstanding Options (whether or
not then exercisable), exceeds (B) the aggregate exercise price of such Options;
(iv) provide that all Restricted Stock Awards then outstanding shall become free
of all restrictions prior to the consummation of the Acquisition Event; or (v)
provide that any other stock-based Awards outstanding (A) shall become
exercisable, realizable or vested in full, or shall be free of all conditions or
restrictions, as applicable to each such Award, prior to the consummation of the
Acquisition Event, or (B), if applicable, shall be assumed, or equivalent Awards
shall be substituted, by the acquiring or succeeding corporation (or an
affiliate thereof).

        An "Acquisition Event" shall mean: (a) any merger or consolidation which
results in the voting securities of the Company outstanding immediately prior
thereto representing immediately thereafter (either by remaining outstanding or
by being converted into voting securities of the surviving or acquiring entity)
less than 51% of the combined voting power of the voting securities of the
Company or such surviving or acquiring entity outstanding immediately after such
merger or consolidation; (b) any sale of all or substantially all of the assets
of the Company; or (c) the complete liquidation of the Company.

        (2)  Assumption of Options Upon Certain Events. The Board may grant
<PAGE>   6
Awards under the Plan in substitution for stock and stock-based awards held by
employees of another corporation who become employees of the Company as a result
of a merger or consolidation of the employing corporation with the Company or
the acquisition by the Company of property or stock of the employing
corporation. The substitute Awards shall be granted on such terms and
conditions as the Board considers appropriate in the circumstances.

     (f)  Withholding. Each Participant shall pay to the Company, or make
provision satisfactory to the Board for payment of, any taxes required by law
to be withheld in connection with Awards to such Participant no later than the
date of the event creating the tax liability. The Board may allow Participants
to satisfy such tax obligations in whole or in part in shares of Common Stock,
including shares retained from the Award creating the tax obligation, valued at
their Fair Market Value. The Company may, to the extent permitted by law,
deduct any such tax obligations from any payment of any kind otherwise due to a
Participant.

     (g)  Amendment of Award. The Board may amend, modify, or terminate any
outstanding Award, including but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or
realization, and converting an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the Participant's consent to such action shall be
required unless the Board determines that the action, taking into account any
related action, would not materially and adversely affect the Participant.

     (h)  Conditions on Delivery of Stock. The Company will not be obligated to
deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all
conditions of the Award have been met or removed to the satisfaction of the
Company, (ii) in the opinion of the Company's counsel, all other legal matters
in connection with the issuance and delivery of such shares have been
satisfied, including any applicable securities laws and any applicable stock
exchange or stock market rules and regulations, and (iii) the Participant has
executed and delivered to the Company such representations or agreements as the
Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations.

     (i)  Acceleration. The Board may at any time provide that any Options
shall become immediately exercisable in full or in part, that any Restricted
Stock Awards shall be free of all restrictions or that any other stock-based
Awards may become exercisable in full or in part or free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the
case may be.

9.   Miscellaneous

  (1)     No Right To Employment or Other Status. No person shall have any
claim or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any
other relationship with the Company. The Company expressly reserves the right
at any time to dismiss or otherwise terminate its relationship with a
Participant free from any liability or claim under the Plan, except as
expressly provided in the applicable Award.
<PAGE>   7
     (2) No Rights As Stockholder. Subject to the provisions of the applicable
Award, no Participant or Designated Beneficiary shall have any rights as a
stockholder with respect to any shares of Common Stock to be distributed with
respect to an Award until becoming the record holder of such shares.

     (3) Effective Date and Term of Plan. The Plan shall become effective on the
date on which it is adopted by the Board but no option granted under the Plan
shall become exercisable unless and until the Plan shall have been approved by
the Company's shareholders. If such shareholder approval is not obtained within
twelve months after the date of the Board's adoption of the Plan, options
previously granted under the Plan shall not vest and shall terminate and no
options shall be granted thereafter. No Awards shall be granted under the Plan
after the completion of ten years from the earlier of (i) the date on which the
Plan was adopted by the Board or (ii) the date the Plan was approved by the
Company's stockholders, but Awards previously granted may extend beyond that
date.

     (4) Amendment of Plan. The Board may amend, suspend or terminate the Plan
or any portion thereof at any time, except that if at any time the approval of
shareholders is required under Section 422 of the Code or any successor
provision with respect to Incentive Stock Options, or under Rule 16b-3, the
Board of Directors may not effect such modification or amendment without such
approval.

     (5) Governing Law. The provisions of the Plan and all Awards made hereunder
shall be governed by and interpreted in accordance with the laws of the State of
Delaware, without regard to any applicable conflicts of law.
<PAGE>   8
(PLAN YEAR) GRANT

                                 EMAGINET, INC.

                        Incentive Stock Option Agreement
                    Granted Under 1996 Stock Incentive Plan

     THIS AGREEMENT, dated as of the 20th day of January, 1998 by and between
EMAGINET, INC., a Delaware corporation ("the "Company" or "Emaginet"), and
(FULL NAME) ("Participant").

     WHEREAS, the Company believes that it is in the Company's best interest to
adopt a Stock Option Plan for its employees; and

     WHEREAS, the Board of Directors and Shareholders of the Company voted and
approved in 1996 to institute such a plan, which was to have been filed with
the State of Maryland Securities Division at that time; and

     WHEREAS, the plan was properly filed with the Maryland Securities Division
on January 12, 1998, and thereafter became effective on January 20, 1998; and

     WHEREAS, the Company now intends to implement this Agreement with
Participant as if the Stock Option Plan had been implemented in 1996,

     NOW, THEREFORE, it is hereby agreed between the parties as follows:

1.   Grant of Option.

     This agreement evidences the grant by EMAGINET, on (DATE), to Participant,
of an option to purchase, in whole or in part, on the terms provided herein and
in the Company's 1996 Stock Incentive Plan (the "Plan"), a total of (OPTIONS)
shares of common stock, $0.01 par value per share, of the Company ("Common
Stock") (the "Shares") at (PRICE) per Share. Unless earlier terminated, this
option shall expire ten (10) years from October 19, 1996 (the "Final Exercise
Date").

     It is intended that the option evidenced by this agreement shall be an
incentive stock option as defined in Section 422 of the Internal Revenue Code
of 1986, as amended and any regulations promulgated thereunder (the "Code").
Except as otherwise indicated by the context, the term "Participant", as used
in this option, shall be deemed to include any person who acquires the right to
exercise this option validly under its terms.

<PAGE>   9
EMAGINET STOCK OPTION AGREEMENT
(PLAN YEAR) GRANT
PAGE 2

2.   Vesting Schedule.

     This option will become exercisable ("vest") as to 25% of the original
number of Shares on the first anniversary of the date of the grant of the
option (the "Grant Date") and as to an additional 25% of the original number of
Shares at the end of each successive full one year period following the first
anniversary of the Grant Date until the fourth anniversary of the Grant Date.
This option shall expire upon, and will not be exercisable after, the Final
Exercise Date.

     The right of exercise shall be cumulative so that to the extent the option
is not exercised in any period to the maximum extent permissible it shall
continue to be exercisable, in whole or in part, with respect to all shares for
which it is vested until the earlier of the Final Exercise Date or the
termination of this option under Section 3 hereof or the Plan.

3.   Exercise of Option.

     (a)  Form of Exercise. Each election to exercise this option shall be in
          writing, signed by the Participant, and received by the Company at its
          principal office, accompanied by this agreement, and payment in full
          (i) by delivery of shares of Common Stock owned by the Participant
          valued at their fair market value as determined by the Board in good
          faith (the "Fair Market Value"), which Common Stock was owned by the
          Participant at least six months prior to such delivery; (ii) if
          acceptable to the Board as it may determine in its sole discretion, by
          delivery of a combination of cash equal to the par value of the shares
          being purchased and a promissory note of the Participant to the
          Company creating a binding obligation on the part of the Participant
          for the balance of the purchase price on terms determined by the
          Board; or (iii) by payment of such other lawful consideration as the
          Board may determine. The Participant may purchase less than the number
          of shares covered hereby, provided that no partial exercise of this
          option may be for any fractional share or for fewer than 10 whole
          shares.

     (b)  Continuous Relationship with the Company Required. Except as otherwise
          provided in this Section 3, this option may not be exercised unless
          the Participant, at the time he or she exercises this option, is, and
          has been at all times since the date of grant of this option, an
          employee of, or consultant or advisor to, the Company or any parent or
          subsidiary of the Company as defined in Section 424(e) or (f) of the
          Code (an "Eligible Participant").

     (c)  Termination of Relationship with the Company. If the Participant
          ceases to be an Eligible Participant for any reason, then, except as
          provided in paragraphs (d) and (e) below, the right to exercise this
          option shall terminate three months after such cessation (but in no
          event after the Final Exercise Date), provided that this option shall
          be exercisable only to the extent that the Participant was entitled to
          exercise this option on the date of such cessation. Notwithstanding
          the foregoing, if the Participant, prior to the Final Exercise Date,
          violates the non-competition or

<PAGE>   10
EMAGINET STOCK OPTION AGREEMENT
(PLAN YEAR) GRANT
PAGE 3

          confidentiality provisions of any employment contract, confidentiality
          and nondisclosure agreement or other agreement between the Participant
          and the Company, the right to exercise this option shall terminate
          immediately upon such violation.

     (d)  Exercise Period Upon Death or Disability. If the Participant dies or
          becomes disabled (within the meaning of Section 22(e)(3) of the Code)
          prior to the Final Exercise Date while he or she is an Eligible
          Participant and the Company has not terminated such relationship for
          "cause" as specified in paragraph (e) below, this option shall be
          exercisable, within the period of one year following the date of death
          or disability of the Participant by the Participant or PARTICIPANT'S
          LEGAL HEIRS, provided that this option shall be exercisable only to
          the extent that this option was exercisable by the Participant on the
          date of his or her death or disability, and further provided that this
          option shall not be exercisable after the Final Exercise Date.

     (e)  Discharge for Cause. If the Participant, prior to the Final Exercise
          Date, is discharged by the Company for "cause" (as defined below), the
          right to exercise this option shall terminate immediately upon the
          effective date of such discharge. "Cause" shall mean willful
          misconduct by the Participant or willful failure by the Participant to
          perform his or her responsibilities to the Company (including, without
          limitation, breach by the Participant of any provision of any
          employment, consulting, advisory, nondisclosure, non-competition or
          other similar agreement between the Participant and the Company), as
          determined by the Company, which determination shall be conclusive.
          The Participant shall be considered to have been discharged for
          "Cause" if the Company determines, within 30 days after the
          Participant's resignation, that discharge for cause was warranted.

4.   Right of First Refusal.

     (a)  If the Participant proposes to sell, assign, transfer, pledge,
          hypothecate or otherwise dispose of, by operation of law or otherwise
          (collectively, "transfer") any Shares acquired upon exercise of this
          option, then the Participant shall first give written notice of the
          proposed transfer (the "Transfer Notice") to the Company. The Transfer
          Notice shall name the proposed transferee and state the number of such
          Shares the Participant proposes to transfer (the "Offered Shares"),
          the price per share and all other material terms and conditions of the
          transfer.

     (b)  For 30 days following its receipt of such Transfer Notice, the Company
          shall have the option to purchase all (but not less than all) of the
          Offered Shares at the price and upon the terms set forth in the
          Transfer Notice. In the event the Company elects to purchase all of
          the Offered Shares, it shall give written notice of such election to
          the Participant within such 30-day period. Within 10 days after his
          receipt of such notice, the Participant shall tender to the Company at
          its principal
<PAGE>   11
EMAGINET STOCK OPTION AGREEMENT
(PLAN YEAR) GRANT
PAGE 4

          offices the certificate or certificates representing the Offered
          Shares, duly endorsed in blank by the Participant or with duly
          endorsed stock powers attached thereto, all in a form suitable for
          transfer of the Offered Shares to the Company. Upon receipt of such
          certificate or certificates, the Company shall deliver or mail to the
          Participant a check in payment of the purchase price for the Offered
          Shares; provided that if the terms of payment set forth in the
          Transfer Notice were other than cash against delivery, the Company may
          pay for the Offered Shares on the same terms and conditions as were
          set forth in the Transfer Notice.

     (c)  At and after the time at which the Offered Shares are required to be
          delivered to the Company for transfer to the Company pursuant to
          subsection (b) above, the Company shall not pay any dividend to the
          Participant on account of such Shares or permit the Participant to
          exercise any of the privileges or rights of a stockholder with respect
          to such Offered Shares, but shall, in so far as permitted by law,
          treat the Company as the owner of such Offered Shares.

     (d)  If the Company does not elect to acquire all of the Offered Shares,
          the Participant may, within the 30-day period following the expiration
          of the option granted to the Company under subsection (b) above,
          transfer the Offered Shares to the proposed transferee, provided that
          such transfer shall not be on terms and conditions more favorable to
          the transferee than those contained in the Transfer Notice.
          Notwithstanding any of the above, all Offered Shares transferred
          pursuant to this Section 4 shall remain subject to the right of first
          refusal set forth in this Section 4 and such transferee shall, as a
          condition to such transfer, deliver to the Company a written
          instrument confirming that such transferee shall be bound by all of
          the terms and conditions of this Section 4.

     (e)  The following transactions shall be exempt from the provisions of this
          Section 4:

          (1)  any transfer of Shares to or for the benefit of any spouse,
               parent, child or grandchild of the Participant, or to a trust for
               their benefit;

          (2)  any transfer pursuant to an effective registration statement
               filed by the Company under the Securities Act of 1933, as amended
               (the "Securities Act"); and

          (3)  any transfer of the Shares pursuant to the sale of all or
               substantially all of the business of the Company;

          provided, however, that in the case of a transfer pursuant to clause
          (1) above, such Shares shall remain subject to the right of first
          refusal set forth in this Section 4 and such transferee shall, as a
          condition to such transfer, deliver to the Company a written
          instrument confirming that such transferee shall be bound by all of
          the terms and conditions of this Section 4.
<PAGE>   12
EMAGINET STOCK OPTION AGREEMENT
(PLAN YEAR) GRANT
PAGE 5

     (f)  The Company may assign its rights to purchase Offered Shares in any
          particular transaction under this Section 4 to one or more persons or
          entities.

     (g)  The provisions of this Section 4 shall terminate upon the earlier of
          the following events:

          (1)  the closing of the sale of shares of Common stock in an
               underwritten public offering pursuant to an effective
               registration statement filed by the Company under the Securities
               Act; or

          (2)  the sale of all or substantially all of the capital stock, assets
               or business of the Company, by merger, consolidation, sale of
               assets or otherwise.

     (h)  The Company shall not be required (a) to transfer on its books any of
          the Shares which shall have been sold or transferred in violation of
          any of the provisions set forth in this Section 4, or (b) to treat as
          owner of such Shares or to pay dividends to any transferee to whom any
          such Shares shall have been so sold or transferred.

5.   Agreement in Connection with Public Offering.

     The Participant agrees, in connection with the initial underwritten public
offering of the Company's securities pursuant to a registration statement under
the Securities Act, (i) not to sell, make short sale of, loan, grant any options
for the purchase of, or otherwise dispose of any shares of Common Stock held by
the Participant (other than those shares included in the offering) without the
prior written consent of the Company or the underwriters managing such initial
underwritten public offering of the Company's securities for a period of 180
days from the effective date of such registration statement, and (ii) to execute
any agreement reflecting clause (i) above as may be requested by the Company or
the managing underwriters at the time of such offering.

6.   Withholding.

     No Shares will be issued pursuant to the exercise of this option unless and
until the Participant pays to the Company, or makes provision satisfactory to
the Company for payment of, any federal, state or local withholding taxes
required by law to be withheld in respect of this option. The Participant may
satisfy such tax obligations in whole or in part in shares of Common Stock,
including shares retained from the Award creating the tax obligation, valued at
their Fair Market Value.

7.   Nontransferability of Option.

     This option may not be sold, assigned, transferred, pledged or otherwise
encumbered by the Participant, either voluntarily or by operation of law, except
by will or the laws of descent
<PAGE>   13
EMAGINET STOCK OPTION AGREEMENT
(PLAN YEAR) GRANT
PAGE 6

and distribution, and, during the lifetime of the Participant, this option
shall be exercisable only by the Participant.

8.   Disqualifying Disposition.

     If the Participant disposes of Shares acquired upon exercise of this
option within two years from the date of grant of the option or one year after
such Shares were acquired pursuant to exercise of this option, the Participant
shall notify the Company in writing of such disposition.

9.   Provisions of the Plan.

     This option is subject to the provisions of the Plan, a copy of which is
furnished to the Participant with this option.

     IN WITNESS WHEREOF, the Company has caused this option to be executed
under its corporate seal by its duly authorized officer. This option shall take
effect as a sealed instrument.

                                   EMAGINET, INC.

Dated: (Sign Date)                 By: _________________________________
                                       Name:  Kamran Amjadi
                                       Title: President & CEO

                            PARTICIPANT'S ACCEPTANCE

     The undersigned hereby accepts the foregoing option and agrees to the
terms and conditions thereof. The undersigned hereby acknowledges receipt of a
copy of the Company's 1996 Stock Incentive Plan.

                                   PARTICIPANT:

                                       _________________________________
                                       (Full_Name)
                                       (Address)

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