Document:

<PAGE>   1
                                                                   EXHIBIT 10.30

                                    AGREEMENT

         This Agreement (the "Agreement") is made and entered into this 5TH day
of December, 2000, by and between North Coast Energy, Inc., a Delaware
corporation ("the Company"), NCE Securities, Inc., an Ohio corporation ("NCE
Securities"), NUON International Projects by ("NUON"), and Garry Regan ("Regan")
and, for only the express purposes identified herein, Anne Regan.

                                    RECITALS

         Regan is the President of the Company, a member of the Company's
Operating Committee and its Board of Directors, the President of NCE Securities,
and a stockholder in the Company. NCE Securities is a wholly-owned subsidiary of
the Company. NUON is the majority stockholder of the Company. Effective May 3,
1995, Regan entered into a Restated Employment Agreement with the Company (the
"Employment Agreement") for a term of three years with the option to renew for
an additional three year term. In 1998, Regan exercised this option to renew the
Employment Agreement and the term will expire on May 2, 2001. Regan has been
advised by the Company that it does not intend to renew the Employment Agreement
and that his employment with the Company will terminate on May 2, 2001, in
accordance with the terms of the Employment Agreement.

         NUON acquired its initial stock position in the Company pursuant to a
Stock Purchase Agreement between itself and the Company dated August 1, 1997. As
an inducement to NUON's purchase of stock in 1997, Regan entered into a Voting
Agreement dated August 1,1997 with NUON (the "Voting Agreement") pursuant to
which he agreed to vote all of the shares of common stock of the Company which
he owns in accordance with the direction of NUON.

         The Company is mindful of the contributions that Regan has made to the
Company since he participated in founding its predecessor in 1981 and of the
assistance that he may be able to provide the Company after his term of
employment is concluded. The parties desire to enter into this Agreement to
resolve their relationship in such a manner as not to disrupt the Company or its
business and operations and to provide for Regan's continuing services as a
consultant to the Company upon the terms and conditions hereinafter set forth.

         NOW THEREFORE, in consideration of the agreements hereinafter set forth
and other good and valuable consideration, the parties hereby agree as follows:

         1. EFFECTIVENESS OF AGREEMENT. This Agreement shall become effective
only upon the satisfaction of the following conditions: (a) the approval of this
Agreement by the Board of Directors of the Company and (b) the execution and
delivery of this Agreement by all parties hereto.

         2. INDEMNITY AGREEMENT. The Indemnity Agreement between the Company and
Regan effective August 30, 1988, shall remain in full force and effect and not
be affected by this Agreement.

         3. SEVERANCE FROM THE COMPANY. Effective at the close of business on
May 2, 2001, without further action by any party hereto, Regan will cease to be
an employee and officer of the Company, and will cease to be an employee,
officer and director of NCE Securities, and any of the Company's other
affiliates, but shall be permitted to remain as a director of the Company until
his term expires at the 2001 Annual Meeting of Stockholders.

         4. CONSULTING SERVICES. For a period of eighteen (18) months from the
expiration of the Employment Agreement (the "Consulting Term"), Regan agrees to
provide the consulting services requested by the Company on the terms and
conditions set forth herein. Regan shall make himself available to perform and
will perform such consulting services as reasonably may be requested of him from
time to time by the Company's Board of Directors or the Operating Committee.
Consulting services shall be rendered at times that are reasonable and at such
locations as are reasonably accessible.

         Regan shall make himself available to the Company and/or its affiliates
or related entities and their respective directors, officers, agents and
employees to provide consulting services and/or testimony in any litigation that
may then be pending or which relates to the period of time during which he was
employed by the Company or is

<PAGE>   2

a consultant to the Company pursuant hereto. Regan agrees to cooperate with the
Company in connection with any necessary regulatory undertakings regarding NCE
Securities as the Company may reasonably request.

         It is further agreed that, unless otherwise mutually agreed, the
Company shall not disclose to Regan any confidential data or other information
nor shall Regan be required to perform consulting services that conflict with
his activities which are not otherwise prohibited pursuant to this Agreement.

         5. PAYMENTS. During the Consulting Term, subject to the provisions of
Section 17, the Company will pay Regan Six Thousand Dollars ($6,000) per month,
which amount shall be paid on such dates as the Company makes its customary
payment of salary to employees, or otherwise as Regan and the Company may
mutually agree.

         The Company also will reimburse Regan for all reasonable business
expenses actually incurred or paid by him during the Consulting Term in the
performance of any consulting services hereunder, provided, however, that the
Company will be so obligated only to the extent such expenses shall have been
expressly approved in advance in writing by a duly authorized officer of the
Company. Such expenses shall be paid or reimbursed by the Company within fifteen
(15) days of Regan's submission of (a) invoices evidencing such amounts being
due and payable, (b) an itemization of unreimbursed amounts, or (c) reasonably
satisfactory evidence that Regan paid the sums in question. The Company's
obligations hereunder shall not be affected by Regan's subsequent employment or
self-employment or commercial activities; provided, however, if Regan breaches
this Agreement, the Company may suspend payments hereunder only if it shall have
first terminated this Agreement pursuant to the provisions of Section 17 hereof.

         6. PROFIT SHARING DISTRIBUTION. Regan shall be entitled to all pension
or retirement benefits vested on his behalf in the Company's Profit Sharing
Trust & Plan, as amended from time to time (the "Plan"). At Regan's request, the
Company shall direct the Administrator of the Plan to provide Regan with a lump
sum payment or appropriate rollover or other distribution of all vested benefits
under the terms of the Plan.

         7. PRESS RELEASES; OTHER DISCLOSURES. No party shall issue any press
release with respect to the matters addressed herein until such press release
has been approved by all of the parties hereto; provided, however, neither party
will unreasonably withhold such consent and all the parties hereby acknowledge
their respective obligations to comply with all disclosure obligations under the
rules and regulations of the Securities and Exchange Commission and the NASD.

         8. RETURN OF PROPERTY. Upon the termination of the Employment Agreement
on May 2, 2001, Regan agrees to use his best efforts to conduct a diligent
search and return to the Company all Company credit cards, keys, policy manuals,
and Confidential Information. The Company similarly agrees to return to Regan
any property of his which he identifies to the Company's Chief Executive
Officer.

         9. NONDISCLOSURE; NONCOMPELITION; AND NONINTERFERENCE. The Company and
Regan expressly acknowledge and agree that the provisions of Section 7 of the
Employment Agreement shall survive the execution and delivery of this Agreement
in accordance with the specific terms and conditions of such Section 7.

         10. VOTING AGREEMENT. The parties hereto acknowledge and agree that the
Voting Agreement shall survive the execution and delivery of this Agreement and
remain in full force and effect in accordance with its terms.

         11. RELEASES AND COVENANT NOT TO SUE. Each of the parties to this
Agreement (and for purposes of this Section 11 only, any reference to "party" or
"Regan" shall include Regan' s spouse) hereby releases, acquits and discharges
each of the other parties, on behalf of himself or itself, and his or its
respective directors, and former partners, principals, officers, if any, and the
directors, employees, agents, attorneys, insurance carriers, Affiliates,
successors and assigns of each of the other parties, and each of them, (the
"Released Parties") from any and all claims, causes of actions, whether direct
or indirect, known or unknown, demands, liabilities, actions, rights, damages of
any kind or nature, costs, charges, losses or expenses of whatsoever kind,
nature, or description, in law or equity, whether known or unknown, fixed or
contingent, which he or it had or now has, or which could have been asserted,
against any of said persons, growing out of, arising from, or in any way related
to the execution, delivery

                                      -2-
<PAGE>   3

and performance of the Employment Agreement through the date hereof, the Voting
Agreement between Regan and NUON, or arising out of or under, or by reason of,
any matter whatsoever, from the beginning of time to the date of this Agreement
other than acts of fraud and dishonesty against the Company. Notwithstanding the
foregoing, no release given herein shall prevent any party from bringing an
action for breach of this Agreement, any agreement executed contemporaneous with
or subsequent to this Agreement, or for breaches of the Employment Agreement
which may occur between the date hereof and May 2, 2001; provided, however, that
with respect to alleged breaches of the Employment Agreement, Regan and the
Company acknowledge and agree that for purposes of the Company's performance
under the Employment Agreement, Regan' s employment will terminate upon the
expiration of the Employment Agreement and the Company will be entitled to
pursue its business operations in contemplation of Regan's departure and may
thereby reduce Regan's responsibilities, authorities and functions without being
in breach of the Employment Agreement; provided further, however, that a Change
in Control (as that term is defined in the Employment Agreement), if any,
between the date hereof and the termination date will not give rise to any
further obligations by the Company to Regan pursuant to Section 9 of the
Employment Agreement unless Regan shall first provide the Company with written
notice on or before May 2, 2001, in accordance with Section 22 hereof advising
the Company of his election to declare a Termination After Change of Control
pursuant to Section 9 (c) of his Employment Agreement and disclaiming any and
all rights under this Agreement and any other agreement between Regan and the
Company executed on the same day as this Agreement. Upon notifying the Company
of his election, which election shall be irrevocable, Regan shall, if and when a
Termination After Change of Control has occurred, be entitled to receive the
benefits provided for in Section 9 (c) of the Employment Agreement, and shall
not be entitled to receive any of the consideration provided for in this
Agreement or any other agreement executed on the same day as this Agreement.
Notwithstanding Regan's disclaimer, those rights and privileges inuring to the
benefit of the Company hereunder shall nevertheless remain in full force and
effect and Regan agrees to continue to perform and abide by those covenants
contained in this Agreement, including without exclusion those contained in
Sections 11 (Releases and Covenant Not to Sue) and 15 (Non-Disparagement)
hereof. To the extent that any consideration has been paid to Regan pursuant to
any of the aforementioned contemporaneously executed agreements prior to his
election hereunder, the same amount shall be deducted from any payment to be
made pursuant to Section 9 (c) of his Employment Agreement.

         Without in any manner limiting the scope of the general release
contained in the foregoing paragraph, Regan expressly releases the Released
Parties from all claims, causes of actions, and liabilities arising from or
relating to (a) any right which Regan has, had or may have had to receive any
benefits or privileges by virtue of his office as President of the Company
and/or NCE Securities; (b) claims based upon oral contracts; (c) claims arising
under any federal or state statutes, including but not limited to, claims
asserting discrimination on the basis of age, race, color, sex, religion,
national origin, or veteran or handicap status and claims under the Age
Discrimination in Employment Act of 1967 ("ADEA"), as amended, ERISA, Title VII
of the 1964 Civil Rights Act and the Older Worker Benefit Protection Act; (d)
claims based upon personal injury, including without limitation, infliction of
emotional distress; (e) wrongful termination or breach of covenant of good faith
and fair dealing; and (f) claims asserting defamation, interference with
contract or business relationships or promissory estoppel.

         Regan covenants and agrees that he will never assert a claim or
institute any cause of action or file a charge based on claims, causes of action
and liabilities of every kind and description whatsoever, known or unknown,
foreseen and unforeseen, suspected and unsuspected, asserted or unasserted,
which Regan has or may have against the Company, or any other Released Party by
reason of any fact, matter, or thing from the beginning of the world to the date
of this Agreement (except for claims arising out of the breach of any of the
Company's or other Released Party's obligations under this Agreement or other
agreements that may be executed contemporaneously, or the Company's breach of
the Employment Agreement following the date of this Agreement) with any court of
law or administrative tribunal, and further agrees that should he violate the
foregoing covenant not to sue by asserting a claim, instituting an action or
filing a charge against the Company, or any other Released Party, which is
prohibited under this Agreement, Regan will pay all of the Company's costs and
expenses (including, without limitation, attorneys' fees) of defending against
the suit incurred by the Company or any other Released Party. Regan acknowledges
and agrees that the monetary benefits provided in this Agreement constitute
sufficient consideration for the Release and Covenant Not to Sue contained
herein in that there are substantial benefits to Regan.

         Regan acknowledges that the Company has notified him that, under
federal law (i) Regan has twenty-one (21) days from the date of execution by
Regan of this Agreement to consider the release and covenant not to sue

                                      -3-
<PAGE>   4

solely with respect to claims arising under the ADEA; and (ii) the release of
claims and covenant not to sue under the ADEA are not enforceable for a period
of seven (7) days following the execution by Regan of this Agreement and may be
revoked by Regan during such time. Revocation of the release of claims under
ADEA and covenant not to sue under ADEA may be effected by Regan solely by
notifying the Company in writing of his election to revoke and delivering such
notice to the Company within the aforesaid seven (7) day period. Such revocation
shall not affect any of the other terms and provisions of this Agreement.

         The Company, NUON and NCE Securities similarly covenant and agree that
they will never assert or institute any cause of action or file a charge arising
from or relating to Regan's employment or other association with the Company
through the date hereof.

         12. REPRESENTATIONS. Each of the parties hereto represents to each of
the others that he or it has not filed any complaint or charges against any
party hereto, and in the case of the Company, against any of its affiliates,
directors, officers, employees and/or agents, with any federal, state, or local
agency or court.

         13. NO ADMISSION OF LIABILITY. This Agreement is not, and shall not be
deemed to be, evidence of or an admission of liability on the part of the
parties hereto, but constitutes a compromise and accord in settlement of all
claims.

         14. NO TRANSFER OF CLAIMS. The parties represent and warrant to each
other that none of them has heretofore transferred or assigned to any person or
entity, any right to assert any claim against any of the parties to this
Agreement or any person entitled to the benefits of this Agreement.

         15. NON-DISPARAGEMENT. The parties covenant and agree that none of them
shall make any statements, written or oral, to any third party which disparages,
criticizes, discredits, or otherwise operates to the detriment of Regan, the
Company, NCE Securities, and/or NUON, or their respective business reputation
and/or good will.

         16. ADVICE OF COUNSEL. Each of the parties hereto acknowledges that
he/it has been advised that he/it has the right to consult with and has
consulted with an attorney of his/its choice prior to executing this Agreement
and has a full understanding of its terms and meanings.

         17. BREACH OF AGREEMENT; COSTS AND ATTORNEY FEES. If either party,
acting in good faith, determines that the other has materially breached any
provision of this Agreement, the party claiming a breach shall provide prompt
written notice to the other of such breach specifically identifying such breach,
which notice shall be accompanied by evidence (whether written or testimonial)
which the party claiming a breach has relied upon in making its determination.
Thereafter, the other party shall have thirty (30) days to cure such breach or
provide information rebutting the claim of wrongdoing. In the event the breach
is continuing at the end of such period, the party claiming a breach shall be
entitled to declare this Agreement terminated. In the event such breach is
continuing for a period of thirty (30) days from the date of the original
notice, then the party claiming a breach may terminate its obligations hereunder
by notice to the other party of such termination of this Agreement. Each party
shall be responsible for their separate costs, expenses, attorneys' fees or
otherwise; provided, however, that if either party sues to enforce the terms of
this Agreement and prevails on his or its claims at trial, the losing party
shall pay all related costs, expenses and attorneys' fees of the prevailing
party.

         18. COMMITMENT OF MAJORITY SHAREHOLDER. NUON covenants and agrees that
it will use its best efforts to assure the Company performs its obligations
under this Agreement.

         19. ENTIRE AGREEMENT; GOVERNING LAW. This Agreement represents the
entire agreement of the parties hereto and supersedes all prior agreements and
understandings, whether in the form of past written agreements, drafts of
understanding or oral understandings; provided, however, the Indemnity Agreement
described in Section 2 hereof and the Voting Agreement referenced in Section 10
hereof shall remain in full force and effect, as shall any agreement executed
contemporaneous with this Agreement. This Agreement shall be construed under and
the rights of the parties hereto shall be governed by the laws of the State of
Ohio without regard to the principles of conflict of laws thereof. Any action
brought by any party to this Agreement arising out of or pertaining to the

                                      -4-
<PAGE>   5

subject matter of this Agreement shall be brought in the Court of Common Pleas
of Summit County, Ohio or in the U.S. District Court for the Northern District
of Ohio. All parties consent to and waive any objection to venue and
jurisdiction in any of the foregoing courts, and do further hereby acknowledge
any of the aforementioned courts to be a proper forum.

         20. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same Agreement. The signature of any party
to any counterpart, including any facsimile thereof, may be appended to any
other counterpart and when so appended shall constitute an original.

         21. BINDING EFFECT. This Agreement shall inure to the benefit of not
only the parties, but their respective heirs, successors, assigns, subsidiaries,
affiliates, parents, officers, directors, employees, shareholders, agents,
attorneys, and representatives and shall be binding not only upon the parties
but also the aforesaid respective parties.

         22. NOTICES. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered personally, or twenty-four (24)
hours after being sent by confirmed facsimile transmission, with subsequent mail
delivery, or three (3) days after being mailed (by registered or certified mail,
return receipt requested), in each case to the parties at the following
addresses, or such other address for a party as shall be specified by like
notice:

                           a)  If to Regan:

                               6735 Walnut Drive
                               Gates Mills, Ohio 44040

                               With a copy to:

                               James P. Farmer, Jr., Esq.
                               Schneider, Smeltz, Ranney & LaFond P.L.L.
                               Suite 1000
                               1111 Superior Avenue
                               Cleveland, Ohio 44114-2507

                           b)  If to the Company or NCE Securities:

                               North Coast Energy, Inc.
                               1993 Case Parkway
                               Twinsburg, Ohio 44087
                               Attn: General Counsel

                           c)  If to NUON:

                               Carel W.J. Kok
                               Director of Strategy, Mergers & Acquisitions
                               Nv NUON
                               Postbus 85
                               3740 AB Baarn, The Netherlands

                                      -5-
<PAGE>   6

          In Witness Whereof, the parties have represented to one another that
they have carefully read the foregoing terms of this Agreement, that they know
and understand the contents of this Agreement, that they have authority to
execute this Agreement, that they have undertaken to sign the same as their own
respective free act and deed, having declared their intention to be bound
contractually by all such terms and conditions, and do hereby execute and
deliver this Agreement this 5TH day of December, 2000.

                                                 NORTH COAST ENERGY, INC.

                                                 /s/ Omer Yonel
                                                 -----------------
                                                 Omer Yonel
                                                 Chief Executive Officer

                                                 NCE Securities, Inc.

                                                 /s/ Omer Yonel
                                                 -----------------
                                                 Omer Yonel
                                                 Vice-President

                                                 NUON International Projects bv

                                                 -----------------------
                                                 Carel W.J. Kok
                                                 Director

                                                 /s/ Garry Regan
                                                 ----------------
                                                 Garry Regan

                              SIGNATURES CONTINUE ON NEXT PAGE

                                      -6-
<PAGE>   7

          In Witness Whereof, the parties have represented to one another that
they have carefully read the foregoing terms of this Agreement, that they know
and understand the contents of this Agreement, that they have authority to
execute this Agreement, that they have undertaken to sign the same as their own
respective free act and deed, having declared their intention to be bound
contractually by all such terms and conditions, and do hereby execute and
deliver this Agreement this 5th day of December, 2000.

                                               NORTH COAST ENERGY, INC.

                                               -----------------------
                                               Omer Yonel
                                               Chief Executive Officer

                                               NCE Securities, Inc.

                                               -----------------------
                                               Omer Yonel
                                               Vice-President

                                               NUON International Projects bv

                                               /s/ Carel W.J. Kok
                                               ---------------------
                                               Carel W.J. Kok
                                               Director

                                               -----------------------
                                               Garry Regan

                        SIGNATURES CONTINUE ON NEXT PAGE

                                      -7-
<PAGE>   8

          The undersigned executes this Agreement for purposes of the matters
identified in Sections 6 and 11 hereof, together with the appropriate
representations also included herein.

                                                      /s/ Anne Regan
                                                     -------------------
                                                      Anne Regan

                                      -8-<PAGE>   1
                                                                    Exhibit 10.1

                                    EXHIBIT A
                         NATIONAL SCIENTIFIC CORPORATION
                              AMENDED AND RESTATED
                             2000 STOCK OPTION PLAN

         SECTION 1. PURPOSE OF PLAN. The purpose of the National Scientific
Corporation 2000 Stock Option Plan (the "Plan") shall be to provide for the
grant to employees, officers, directors, and consultants of the Company options
to acquire Stock of the Company.

         SECTION 2. DEFINITIONS. Unless the context clearly indicates
otherwise, the following terms, when used in the Plan, shall have the meanings
set forth in this section.

         (a) "Board" shall mean the Board of Directors of the Company.

         (b) "Cause" shall mean (i) Grantee's willful, material and irreparable
breach of any agreement that governs the terms and conditions of his or her
employment; (ii) Grantee's gross negligence or gross incompetence in the
performance or intentional nonperformance (continuing for ten days after receipt
of written notice of such negligence) of any of Grantee's material duties and
responsibilities; (iii) Grantee's dishonesty, fraud or misconduct with respect
to the business or affairs of the Company or any Subsidiary; (iv) Grantee's
conviction of a felony; or (v) chronic alcohol abuse or illegal drug abuse by
Grantee.

         (c) A "Change in Control" of the Company shall occur when: (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing
30 percent or more of the combined voting power of the Company's then
outstanding securities; (ii) as a result of, or in connection with, any tender
offer or exchange offer, merger, or other business combination (a
"Transaction"), the persons who were Directors of the Company immediately before
the Transaction shall cease to constitute a majority of the Board or any
successor to the Company; (iii) the Company is merged or consolidated with
another corporation and as a result of the merger or consolidation less than 75
percent of the outstanding voting securities of the surviving or resulting
corporation shall then be owned in the aggregate by the former shareholders of
the Company; (iv) a tender offer or exchange offer is made and consummated for
the ownership of securities of the Company representing 50 percent or more of
the combined voting power of the Company's then outstanding voting securities;
or (v) the Company transfers substantially all of its assets to another
corporation which is not controlled by the Company.

         (d) "Code" shall mean the Internal Revenue Code of 1986 as it may be
amended from time to time.

         (e) "Committee" shall mean the Board or, in the discretion of the
Board, any Committee of two or more Directors that may be designated by the
Board to administer the Plan, all of which Committee's members shall be
Nonemployee Directors. Additionally, if any Options are intended to qualify as
performance-based compensation under Section 162(m)(4)(C) of the Code, all
members of the Committee granting such Options shall be "outside directors"
within the meaning of that Code section.

         (f) "Company" shall mean National Scientific Corporation, a Texas
corporation.

         (g) "Consultant" shall mean any person who is engaged to perform
services for the Company or its Subsidiaries, other than as an Employee or
Director.

<PAGE>   2
         (h) "Control Person" shall mean any person who, as of the date of grant
of an Option, owns (within the meaning of Section 422(b)(6) of the Code) stock
possessing more than ten percent of the total combined voting power or value of
all classes of stock of the Company or of any Parent or Subsidiary.

         (i) "Director" shall mean any member of the Board.

         (j) "Employee" shall mean any full-time employee of the Company or any
Subsidiary (including Directors who are otherwise employed on a full-time basis
by the Company or any Subsidiary).

         (k) "Exchange Act" shall mean the Securities Exchange Act of 1934 as it
may be amended from time to time.

         (l) "Fair Market Value" of the Stock on a given date shall be based
upon: (i) if the Stock is listed on a national securities exchange or quoted in
an interdealer quotation system, the last sales price or, if such price is
unavailable, the average of the closing bid and asked prices per share of the
Stock on such date (or, if there was no trading or quotation in the Stock on
such date, on the next preceding date on which there was trading or quotation)
as provided by one of such organizations; or (ii) if the Stock is not listed on
a national securities exchange or quoted in an interdealer quotation system, the
value as determined by the Board in good faith in its sole discretion.

         (m) "Grantee" shall mean a person granted an Option under the Plan.

         (n) "ISO" shall mean an Option granted pursuant to the Plan to purchase
shares of the Stock and intended to qualify as an incentive stock option under
Section 422 of the Code, as now or hereafter constituted.

         (o) "1933 Act" shall mean the Securities Act of 1933, as it may be
amended from time to time.

         (p) "Nonemployee Director" shall mean a Director who is a "nonemployee
director" within the meaning of Rule 16b-3 under the Exchange Act and an
"outside director" within the meaning of Section 162(m) of the Code:

         (q) "NQSO" shall mean an Option granted pursuant to the Plan to
purchase shares of the Stock that is not an ISO.

         (r) "Option" or "Options" shall refer to one or more NQSOs and ISOs
issued under and subject to the Plan.

         (s) "Parent" shall mean any parent corporation as defined in Section
424 of the Code.

         (t) "Plan" shall mean the National Scientific Corporation 2000 Stock
Option Plan as set forth herein and as amended from time to time.

         (u) "SEC" means the United States Securities and Exchange Commission.

         (v) "Stock" shall mean shares of the common stock, par value $.01 per
share, of the Company.

                                       2
<PAGE>   3
         (w) "Subsidiary" shall mean any corporation with respect to which the
Company owns, directly or indirectly, 50 percent or more of the total combined
voting power of all classes of stock of such corporation.

         SECTION 3. SHARES OF STOCK SUBJECT TO THE PLAN. Subject to the
provisions of Section 11 hereof, the total amount of Stock with respect to which
Options may be granted under the Plan shall not exceed the greater of (i)
7,000,000 shares (subject to adjustment pursuant to Section 11 hereof) and
(ii)15 percent of the total number of shares of Stock outstanding from time to
time at the time of grant of any Option hereunder. Notwithstanding the
foregoing, the total amount of Stock with respect to which ISOs may be granted
under the Plan shall not exceed 3,500,000 shares. Moreover, the total amount of
Stock with respect to which Options may be granted under the Plan to any Grantee
during the term of the Plan shall not exceed 3,000,000 shares. Stock issuable
under the Plan may be authorized but unissued shares or reacquired shares of
Stock. If, prior to exercise, any Options are forfeited, lapse, or terminate for
any reason, the Stock covered thereby shall again be available for Option grants
under the Plan.

         SECTION 4. ADMINISTRATION OF THE PLAN. The Plan shall be administered
by the Committee. Subject to the express provisions of the Plan, the Committee
shall have the authority to interpret the Plan, to prescribe, amend, and rescind
rules and regulations relating to the Plan, to determine the terms and
provisions of stock option agreements thereunder, and to make all other
determinations necessary or advisable for the administration of the Plan. Any
controversy or claim arising out of or related to the Plan or the Options
granted thereunder shall be determined unilaterally by, and at the sole
discretion of, the Committee. To the extent necessary to comply with Rule 16b-3
under the Exchange Act, determinations concerning Options granted to any person
who is a Director or officer or otherwise subject to Section 16 of the Exchange
Act shall be made by the Committee.

         SECTION 5. LIMITATION OF LIABILITY. Each member of the Committee shall
be entitled to, in good faith, rely or act upon any report or other information
furnished to him by any officer or other employee of the Company or any
subsidiary, the Company's independent certified public accountants or any
executive compensation consultant, legal counsel or other professional retained
by the Company to assist in the administration of the Plan. No member of the
Committee, nor any officer or employee of the Company acting on behalf of the
Committee, shall be personally liable for any action, determination or
interpretation taken or made in good faith with respect to the Plan, and all
members of the Committee and any officer or employee of the Company acting on
its behalf shall, to the extent permitted by law, be fully indemnified and
protected by the Company with respect to any such action, determination or
interpretation.

         SECTION 6. TYPES OF OPTIONS. Options granted under the Plan may be of
two types: ISOs or NQSOs. The Committee shall have the authority and discretion
to grant to an eligible Employee either ISOs, NQSOs, or both but shall clearly
designate the nature of each Option at the time of grant. Grantees who are not
Employees of the Company or a Subsidiary on the date an Option is granted shall
receive only NQSOs.

         SECTION 7. GRANTS OF OPTIONS TO NONEMPLOYEE DIRECTORS.

         (a) Nonemployee Directors of the Company shall be eligible to receive
Options under the Plan only pursuant to the provisions of this Section 7. Each
individual who agrees to become a Nonemployee Director shall receive, without
the exercise of the discretion of any person, an NQSO under the Plan relating to
the purchase of 5,000 shares of Stock on the date that the Nonemployee
Director's service as a director commences. In addition, on the date of each
annual meeting of the shareholders, each person who is a continuing Nonemployee
Director on any such date shall receive, without the exercise of discretion of
any person, an NQSO under the Plan relating to the purchase of 5,000 shares of

                                       3
<PAGE>   4
Stock. In the event that there are not sufficient shares available under the
Plan to allow for the grant to each Nonemployee Director of an NQSO for the
number of shares provided herein, each Nonemployee Director shall receive an
NQSO for his pro rata share of the total number of shares of Stock available
under the Plan.

         (b) The exercise price of each share of Stock subject to an Option
granted a Nonemployee Director shall equal the Fair Market Value of a share of
Stock on the date such Option is granted.

         (c) Each Option granted to a Nonemployee Director shall become
exercisable six (6) months from, and shall have a term of ten (10) years from,
the date of the Option grant. Notwithstanding the exercise period of any Option
granted to a Nonemployee Director, all such Options shall immediately become
exercisable upon (1) the death of a Nonemployee Director while serving as such
or (2) a Change in Control.

         SECTION 8. GRANTS OF OPTIONS TO EMPLOYEES AND CONSULTANTS.

         (a) Employees and Consultants of the Company and its Subsidiaries shall
be eligible to receive Options under the Plan. Consultants of the Company shall
receive only NQSOs.

         (b) The exercise price per share of Stock subject to an Option granted
to an Employee or Consultant shall be determined by the Committee; provided,
however, that the exercise price of each share subject to an ISO shall be not
less than 100 percent of the Fair Market Value of a share of the Stock on the
date such Option is granted, or, in the case of an ISO granted to a Control
Person, not less than 110 percent of such Fair Market Value, and the exercise
price of each share subject to an NQSO shall be not less than 25 percent of the
Fair Market Value of a share of the Stock on the date such Option is granted.

         (c) The term of each Option granted to an Employee or Consultant shall
be determined by the Committee, provided that no ISO shall be exercisable more
than ten years from the date of grant of the Option and further provided that no
ISO granted to a Control Person shall be exercisable more than five years from
the date of grant of the Option.

         (d) The Committee shall determine and designate from time to time
Employees or Consultants who are to be granted Options, the nature of each
Option granted and the number of shares of Stock subject to each such Option.

         (e) Notwithstanding any other provisions hereof, the aggregate Fair
Market Value (determined at the time the ISO is granted) of the Stock with
respect to which ISOs are exercisable for the first time by any Employee during
any calendar year under all plans of the Company and any Parent or Subsidiary
corporation shall not exceed $100,000. To the extent the limitation set forth in
the preceding sentence is exceeded, the Options with respect to such excess
shall be treated as NQSOs.

         (f) The Committee, in its sole discretion, shall determine whether any
Option granted to an Employee or Consultant shall become exercisable in one or
more installments and shall specify the installment dates. The Committee may
also make such other provisions, not inconsistent with the terms of the Plan, as
it may deem desirable, including such provisions as it may deem necessary to
qualify any ISO under the provisions of Section 422 of the Code. Without
limitation of the foregoing, the Committee may, in its discretion, provide that
Options shall immediately become exercisable upon (i) the death of an Employee
or Consultant while in the employ of the Company or any Subsidiary or (ii) a
Change in Control.

                                       4
<PAGE>   5
         (g) The Committee may, at any time, grant new or additional options to
any eligible Employee or Consultant who has previously received Options under
the Plan or options under other plans, whether such prior Options or other
options are still outstanding, have been exercised previously in whole or in
part, or have been canceled. The exercise price of such new or additional
Options may be established by the Committee, subject to Section 8(b) hereof,
without regard to such previously granted Options or other options.

         SECTION 9. EXERCISE OF OPTIONS.

         (a) A Grantee shall exercise an Option by delivery of written notice to
the Company setting forth the number of shares with respect to which the Option
is to be exercised, together with cash, certified check, bank draft, or postal
or express money order payable to the order of the Company for an amount equal
to the Option price of such shares and any income tax required to be withheld.
The Committee may, in its sole discretion, permit a Grantee to pay all or a
portion of the exercise price by a simultaneous sale of the shares of Stock to
be issued pursuant to such exercise pursuant to a brokerage or similar
arrangement.

         (b) Except as provided pursuant to Section 10(a) hereof, no Option
granted to an Employee or Consultant shall be exercised unless at the time of
such exercise the Grantee is then an Employee or Consultant of the Company or a
Subsidiary.

         (c) Except as provided in Section 10(a) hereof, no Option granted to a
Nonemployee Director shall be exercised unless at the time of such exercise the
Grantee is then a Nonemployee Director.

         (d) Before the Company issues Stock to a Grantee pursuant to the
exercise of an NQSO, the Company shall have the right to require that the
Grantee make such provision, or furnish the Company such authorization,
necessary or desirable so that the Company may satisfy its obligation under
applicable income tax laws to withhold income or other taxes due upon or
incident to such exercise.

         SECTION 10. EXERCISE OF OPTIONS UPON TERMINATION.

         (a) Subject to Section 10(c) hereof, upon the termination of a
Grantee's relationship with the Company and its Subsidiaries, the period during
which such Grantee may exercise any outstanding exercisable installments of his
Options that were exercisable at the date of termination of his relationship
with the Company shall not exceed (i) if such termination is due to death or
permanent and total disability (within the meaning of Section 22(e)(3) of the
Code), one year from the date of such termination, and (ii) in all other cases,
three months (six months for Nonemployee Directors) from the date of such
termination, provided, however, that in no event shall the period extend beyond
the expiration of the Option term. Notwithstanding the foregoing, all Options
shall immediately terminate upon a termination of a Grantee's employment if the
Committee determines, in its sole discretion, that such termination is for
Cause.

         (b) In no event shall any Option be exercisable for more than the
maximum number of shares that the Grantee was entitled to purchase at the date
of termination of the relationship with the Company and its Subsidiaries.

         (c) The Committee may, in its discretion, extend the period of
exercisability set forth in clauses (i) and (ii) in paragraph (a) above;
provided, however, that such period may not be extended for Options granted to
Nonemployee Directors or for ISOs.

                                       5
<PAGE>   6
         (d) Subject to Section 10(b) hereof, the sale of any Subsidiary shall
be treated as a termination of employment with respect to any Grantee employed
by such Subsidiary.

         (e) Subject to the foregoing, in the event of a Grantee's death,
Options may be exercised by the Grantee's legal representative.

         SECTION 11. ADJUSTMENT UPON CHANGES IN CAPITALIZATION. If the Company
shall effect a subdivision or consolidation of shares or other increase or
reduction of shares of Stock outstanding without receiving compensation therefor
in money, services or property, or any other change in corporate capital
structure shall occur, then (a) the number of shares subject to outstanding
Options shall be proportionately adjusted (without a change in the total price
applicable to any such Option, but with a corresponding adjustment in the price
per share), and (b) the number of shares available for issuance under Section 3
and Section 8(a) shall be proportionately adjusted.

         SECTION 12. RESTRICTIONS ON ISSUING SHARES. No Stock shall be issued
or transferred under the Plan unless and until all applicable legal requirements
have been complied with to the satisfaction of the Committee. The Committee
shall have the right to condition any Option on the Grantee's undertaking in
writing to comply with such restrictions on any subsequent disposition of the
shares of Stock issued or transferred thereunder as the Committee shall deem
necessary or advisable as a result of any applicable law, regulation, official
interpretation thereof, or underwriting agreement, and certificates representing
such shares may be legended to reflect any such restrictions.

         SECTION 13. OPTION AGREEMENTS; MISCELLANEOUS TERMS.

         (a) Each Option shall be evidenced by a written agreement containing
such terms and conditions, not inconsistent with the Plan, as the Committee
shall approve. The terms and provisions of such agreements may vary among
Grantees and among different Options granted to the same Grantee.

         (b) The grant of an Option in any year shall not give the Grantee any
right to similar grants in future years, any right to continue such Grantee's
employment relationship with the Company or its Subsidiaries, or, until such
Option is exercised and share certificates are issued, any rights as a
Stockholder of the Company. All Grantees shall remain subject to discharge to
the same extent as if the Plan were not in effect.

         (c) No Grantee, and no beneficiary or other persons claiming under or
through the Grantee, shall have any right, title, or interest by reason of any
Option to any particular assets of the Company or its Subsidiaries or any shares
of Stock allocated or reserved for the purposes of the Plan or subject to any
Option except as set forth herein. The Company shall not be required to
establish any fund or make any other segregation of assets to assure the payment
of any Option.

         (d) No Option may be transferred, assigned, pledged, encumbered, or
charged, except by will or the laws of descent and distribution, and an Option
shall be exercisable during the Grantee's lifetime only by the Grantee.

         (e) The issuance of shares of Stock to Grantees or to their legal
representatives shall be subject to any applicable taxes and other laws or
regulations of the United States or of any state having jurisdiction thereof.

         SECTION 14. AMENDMENT AND TERMINATION. The Board may, at any time,
alter, amend, suspend, discontinue, or terminate the Plan; provided, however,
that no such action shall adversely affect the rights of Grantees to Options
previously granted hereunder and provided further that any stockholder approval

                                       6
<PAGE>   7
necessary or desirable in order to comply with Rule 16b-3 under the Exchange Act
or with Section 422 of the Code (or other applicable law or regulation) shall be
obtained in the manner required therein.

         SECTION 15. COMPLIANCE WITH SECTION 16(b). In the case of recipients
of Options under the Plan who are or may be subject to Section 16 of the
Exchange Act, it is the intent of the Company that the Plan and any Option
granted hereunder satisfy and be interpreted in a manner that satisfies the
applicable requirements of Rule 16b-3 under the Exchange Act, so that such
persons will be entitled to the benefits of Rule 16b-3 under the Exchange Act or
other exemptive rules under Section 16 of the Exchange Act and will not be
subject to liability thereunder. If any provision of the Plan or any award of
Options would otherwise conflict with the intent expressed herein, that
provision, to the extent possible, shall be interpreted and deemed amended so as
to avoid such conflict. To the extent of any remaining irreconcilable conflict
with such intent, such provision shall be deemed void as applicable to
recipients who are or may be subject Section 16 of the Exchange Act.

         SECTION 16. COMPLIANCE WITH CODE SECTION 162(m). It is the intent of
the Company that the Options awarded pursuant to the Plan shall constitute
"qualified performance-based compensation" within the meaning of the Code
Section 162(m). Accordingly, if any provision of the Plan or any award agreement
relating to such Options does not comply or is inconsistent with the
requirements of Code Section 162(m), such provision shall be construed or deemed
amended to the extent necessary to conform to such requirements, and no
provision shall be deemed to confer upon the Committee or any other person
discretion to increase the amount of compensation otherwise payable in
connection with any such Award upon attainment of the performance objectives.

         SECTION 17. MARKET STANDOFF. In connection with any underwritten
public offering by the Company of its equity securities pursuant to an effective
registration statement filed under the 1933 Act, the Grantee may not sell, make
any short sale of, loan, hypothecate, pledge, grant any option for the purchase
of, or otherwise dispose or transfer for value or otherwise agree to exchange in
any of the foregoing transactions with respect to any shares of Stock acquired
upon exercise of an Option granted hereunder without the prior written consent
of the Company and its underwriters. Such restriction (the "Market Standoff")
shall be in effect for such period of time from and after the effective date of
the final prospectus for the offering as may be requested by the Company or its
underwriters. The Grantee shall be required to execute such agreements as the
Company or its underwriters request in connection with the Market Standoff.

         SECTION 18. EFFECTIVE DATE OF PLAN. The Plan shall be effective upon
its adoption by the Board. The Plan must be approved by the Company's
shareholders within twelve (12) months of its establishment. No ISO may be
granted more than ten years after the Plan is approved by the Board or the
Company's shareholders, whichever is earlier.

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]