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                                                                    EXHIBIT 10.3

                         CUSTOMERONE HOLDING CORPORATION

                             1998 STOCK OPTION PLAN

1.       Purpose.

         Customer ONE Holding Corporation, a Delaware corporation (herein,
together with its successors, referred to as the "Company"), by means of this
1998 Stock Option Plan (the "Plan"), desires to afford certain key employees
employed by, and certain persons performing services for the Company and any
direct or indirect subsidiary or parent corporation thereof now existing or
hereafter formed or acquired (such corporations sometimes referred to herein as
"Related Entities") who are responsible for the continued growth of the Company
an opportunity to acquire a proprietary interest in the Company, and thus to
create in such persons an increased interest in and a greater concern for the
welfare of the Company and any Related Entities. Certain definitions used herein
are defined in Section 19 of this Plan.

         The stock options described in Sections 6 and 7 (the "Options"), and
the shares of Common Stock (as hereinafter defined) acquired pursuant to the
exercise of such Options, are a matter of separate inducement and are not in
lieu of any salary or other compensation for services. As used in the Plan, the
terms "parent corporation" and "subsidiary corporation" shall have the meanings
contained in Sections 424(e) and 424(f), respectively, of the Internal Revenue
Code of 1986, as amended (the "Code").

2.       Administration.

         The Plan shall be administered by the Option Committee, or any
successor thereto, of the Board of Directors of the Company (the "Board of
Directors"), or by any other committee appointed by the Board of Directors to
administer the Plan (the "Committee"); provided, however, that the entire Board
of Directors may act as the Committee if it chooses to do so; and provided,
further, that (i) for purposes of determining any Performance-Based Options (as
hereinafter defined) applicable to Key Employees (as hereinafter defined) who
constitute "covered employees" within the meaning of Section 162(m) of the Code,
"Committee" shall mean the members of the Option Committee of the Board of
Directors who qualify as "outside directors" within the meaning of Section
162(m) of the Code, and such Performance-Based Options shall be subject to
ratification by unanimous approval of the members of the Board of Directors, and
(ii) if, when and for so long as the Company is subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), the

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Committee shall be composed solely of two or more "Non-Employee Directors" as
defined in Rule 16b-3, as amended ("Rule 16b-3"), promulgated thereunder;
provided, however, that, alternatively, for purposes of granting Options other
than Performance-Based Options hereunder, the Board of Directors may authorize
such grants and may take any other action permitted pursuant to Section 162(m)
of the Code, Rule 16b-3 and applicable law and regulations.

         The number of individuals that shall constitute the Committee shall be
determined from time to time by a majority of all the members of the Board of
Directors, and, unless that majority of the Board of Directors determines
otherwise, shall be no less than two individuals. The Chairman of the Board of
Directors of the Company shall be a member of the Committee at all times. A
majority of the Committee shall constitute a quorum (or if the Committee
consists of only two members, then both members shall constitute a quorum), and
subject to the provisions of Section 5, the acts of a majority of the members
present at any meeting at which a quorum is present, or acts approved in writing
by all members of the Committee, shall be the acts of the Committee. Whenever
the Company shall have a class of equity securities registered pursuant to
Section 12 of the Exchange Act, the Committee shall administer the Plan so as
(i) to comply at all times with the Exchange Act, and (ii) to ensure that
compensation attributable to Options granted under the Plan to Key Employees who
constitute "covered employees" within the meaning of Section 162(m) of the Code
shall (A) meet the deduction limitation imposed by Section 162(m) of the Code,
or (B) qualify as "performance-based compensation" as such term is used in
Section 162(m) of the Code and the regulations promulgated thereunder and thus
be exempt from the deduction limitation imposed by Section 162(m) of the Code.

         The members of the Committee shall serve at the pleasure of the Board
of Directors, which shall have the power, at any time and from time to time, to
remove members from or add members to the Committee. Removal from the Committee
may be with or without cause. Any individual serving as a member of the
Committee shall have the right to resign from membership on the Committee by
written notice to the Board of Directors. The Board of Directors, and not the
remaining members of the Committee, shall have the power and authority to fill
vacancies on the Committee, however caused. The Board of Directors shall
promptly fill any vacancy that causes the number of members of the Committee to
be less than two or, if the Company has a class of equity securities registered
pursuant to Section 12 of the Exchange Act, any other number that Rule 16b-3 or
other applicable rules under Section 16(b) of the Exchange Act, Section 162(m)
of the Code, or any successor or analogous rules or laws may require from time
to time.

3.       Shares Available and Maximum Individual Grants.

         Subject to the adjustments provided in Section 11, the maximum
aggregate number of shares of Common Stock, par value $0.01 per share, of the
Company ("Common Stock") in respect of which Options may be granted for all
purposes under the Plan shall be 5,907,500 shares. If, for any reason, any
shares as to which Options have been granted cease to be subject to purchase
thereunder, including the expiration of any

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such Option, the termination of any such Option prior to exercise, or the
forfeiture of any such Option, such shares shall thereafter be available for
grants under the Plan. Options granted under the Plan may be fulfilled in
accordance with the terms of the Plan with (i) authorized and unissued shares of
the Common Stock, or (ii) issued shares of such Common Stock held in the
Company's treasury.

         The maximum aggregate number of shares of Common Stock underlying all
Options that may be granted to any single Key Employee, including any Options
that may have been granted to such Key Employee as an Eligible Non-Employee (as
hereinafter defined), during the Term (as hereinafter defined) of the Plan shall
be 1,300,000 shares, subject to the adjustments provided in Section 11. For
purposes of the preceding sentence, such Options that are cancelled or repriced
shall continue to be counted in determining such maximum aggregate number of
shares of Common Stock that may be granted to any single Key Employee, including
any Options that may have been granted to such Key Employee as an Eligible
Non-Employee, during the Term of the Plan.

4.       Eligibility and Bases of Participation.

         Grants of Incentive Options (as hereinafter defined) and Non-Qualified
Options (as hereinafter defined) may be made under the Plan, subject to and in
accordance with Section 6, to Key Employees. As used herein, the term "Key
Employee" shall mean any employee of the Company or any Related Entity,
including officers and directors of the Company or any Related Entity who are
also employees of the Company or any Related Entity, who are regularly employed
on a salaried basis and who are so employed on the date of such grant, whom the
Committee identifies as having a direct and significant effect on the
performance of the Company or any Related Entity.

         Grants of Non-Qualified Options may be made, subject to and in
accordance with Section 7, to any Eligible Non-Employee. As used herein, the
term "Eligible Non-Employee" shall mean any person or entity of any nature
whatsoever, specifically including an individual, a firm, a company, a
corporation, a partnership, a trust, or other entity (collectively, a "Person"),
that the Committee designates as eligible for a grant of Options pursuant to the
Plan because such Person performs bona fide consulting, advisory, or other
services for the Company or any Related Entity (other than services in
connection with the offer or sale of securities in a capital-raising
transaction) and the Board of Directors or the Committee determines that the
Person has a direct and significant effect on the performance of the Company or
any Related Entity.

         The adoption of the Plan shall not be deemed to give any Person a right
to be granted any Options.

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5.       Authority of Committee.

         Subject to and consistent with the express provisions of the Plan, the
Code and, if applicable, Rule 16b-3 and Section 162(m) of the Code, the
Committee shall have plenary authority to:

          a.   determine the Key Employees and Eligible Non-Employees to whom
               Options shall be granted, the time when such Options shall be
               granted, the number of Options, the purchase price or exercise
               price of each Option, the period(s) during which such Options
               shall be exercisable (whether in whole or in part, including
               whether such Options shall become immediately exercisable upon
               the consummation of a Change of Control), the restrictions to be
               applicable to Options and all other terms and provisions thereof
               (which need not be identical);

          b.   require, as a condition to the granting of any Option, that the
               Person receiving such Option agree not to sell or otherwise
               dispose of such Option, any Common Stock acquired pursuant to
               such Option, or any other "derivative security" (as defined by
               Rule 16a-1(c) under the Exchange Act) of the Company for a period
               of six months following the later of (i) the date of the grant of
               such Option or (ii) the date when the exercise price of such
               Option is fixed if such exercise price is not fixed at the date
               of grant of such Option, or for such other period as the
               Committee may determine;

          c.   provide an arrangement through registered broker-dealers whereby
               temporary financing may be made available to an optionee by the
               broker-dealer, under the rules and regulations of the Board of
               Governors of the Federal Reserve, for the purpose of assisting
               the optionee in the exercise of an Option, such authority to
               include the payment by the Company of the commissions of the
               broker-dealer;

          d.   provide the establishment of procedures for an optionee to
               exercise an Option or a portion thereof by delivering that number
               of shares of Common Stock already owned by such optionee and held
               at least six months and having an aggregate Fair Market Value
               which shall equal the desired Option exercise price; provided,
               however, that in the case of an Incentive Option, no shares shall
               be used to pay the exercise price under this paragraph unless (A)
               such shares were not acquired through the exercise of an
               Incentive Option, or (B) if so acquired, (x) such shares have
               been held for more than two years since the grant of such
               Incentive Option and for more than one year since the exercise of
               such Incentive Option (the "Holding Period"), or (y) if such
               shares do not meet the Holding Period, the optionee elects in
               writing to use such shares to pay the exercise price under this
               paragraph;

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          e.   provide (in accordance with Section 14 or otherwise) the
               establishment of a procedure whereby a number of shares of Common
               Stock or other securities may be withheld from the total number
               of shares of Common Stock or other securities to be issued upon
               exercise of an Option to meet the obligation of withholding for
               income, social security and other taxes incurred by an optionee
               upon such exercise or required to be withheld by the Company or a
               Related Entity in connection with such exercise unless, as
               determined by the Committee in the exercise of its discretion,
               such procedure is not permitted by applicable law or would result
               in a charge to earnings that otherwise would not have occurred;

          f.   reduce the number of unvested Options granted to any employee in
               the event that such employee is demoted;

          g.   prescribe, amend, modify and rescind rules and regulations
               relating to the Plan; and

          h.   make all determinations permitted or deemed necessary,
               appropriate or advisable for the administration of the Plan,
               interpret any Plan or Option provision, perform all other acts,
               exercise all other powers, and establish any other procedures
               determined by the Committee to be necessary, appropriate, or
               advisable in administering the Plan or for the conduct of the
               Committee's business.

         The Committee may delegate to one or more of its members, or to one or
more agents, such administrative duties as it may deem advisable, and the
Committee or any Person to whom it has delegated duties as aforesaid may employ
one or more Persons to render advice with respect to any responsibility the
Committee or such Person may have under the Plan; provided, however, that any
such delegation shall be in writing; and provided, however, that, any
determination of Performance-Based Options applicable to Key Employees who
constitute "covered employees" within the meaning of Section 162(m) of the Code
may not be delegated to a member of the Board of Directors who, if elected to
serve on the Committee, would not qualify as an "outside director" within the
meaning of Section 162(m) of the Code. The Committee may employ attorneys,
consultants, accountants, or other Persons and the Committee, the Company, and
its officers and directors shall be entitled to rely upon the advice, opinions,
or valuations of any such Persons. Any act of the Committee, including
interpretations of the provisions of the Plan or any Option and determinations
under the Plan or any Option, made in good faith, shall be final, conclusive and
binding on all parties. No member or agent of the Committee shall be personally
liable for any action, determination or interpretation made in good faith with
respect to the Plan and all members and agents of the Committee shall be fully
protected by the Company in respect of any such action, determination or
interpretation.

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6.       Stock Option Grants to Key Employees.

         Subject to the express provisions of the Plan, the Committee shall have
the authority to grant incentive stock options pursuant to Section 422 of the
Code ("Incentive Options"), to grant non-qualified stock options (options which
do not qualify under Section 422 of the Code) ("Non-Qualified Options"), and to
grant both Incentive Options and Non-Qualified Options to Key Employees. No
Incentive Option shall be granted pursuant to the Plan after the earlier of ten
years from the date of adoption of the Plan or ten years from the date of
approval of the Plan by the shareholders of the Company. Incentive Options may
be granted only to Key Employees. The terms and conditions of the Options
granted under this Section 6 shall be determined from time to time by the
Committee and shall be reflected in the option grant letter delivered to the Key
Employee in respect thereof; provided, however, that the Options granted under
this Section 6 shall be subject to all terms and provisions of the Plan (other
than Section 7), including the following:

          a.   Option Exercise Price. The Committee shall establish the Option
               exercise price at the time any Option is granted to a Key
               Employee at such amount as the Committee shall determine;
               provided, however, that, in the case of an Incentive Option, such
               price shall not be less than the Fair Market Value per share of
               Common Stock at the date the Option is granted; and provided,
               further, that in the case of an Incentive Option granted to a
               person who owns, at the time such Incentive Option is granted,
               shares of the Company or any Related Entity which shares
               represent, in the aggregate, more than 10% of the total combined
               voting power of all classes of shares of the Company or of any
               Related Entity, the option exercise price shall not be less than
               110% of the Fair Market Value per share of Common Stock at the
               date the Option is granted. The Option exercise price shall be
               subject to adjustment in accordance with the provisions of
               Section 11 of the Plan.

          b.   Payment. The price per share of Common Stock with respect to each
               Option exercise by a Key Employee shall be payable at the time of
               such exercise. Such price shall be payable in cash or by any
               other means acceptable to the Committee, including by the
               delivery to the Company of shares of Common Stock owned by the
               optionee pursuant to a procedure created pursuant to subsection
               5(d) of the Plan (but, with respect to Incentive Options, subject
               to the limitations described in such subsection 5(d)). Shares
               delivered to the Company in payment of the Option exercise price
               shall be valued at the Fair Market Value of the Common Stock on
               the day preceding the date of the exercise of the Option.

          c.   Exercisability of Stock Option. At the time of grant, the
               Committee shall determine, subject to the provisions of
               subsections 6(d), (e), (f), (g) and (i) below, when and under
               what conditions stock options granted to Key Employees hereunder
               shall vest and become exercisable.

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               No Option by its terms shall be exercisable after the expiration
               of ten years from the date of grant of the Option, unless, as to
               any Non-Qualified Option, otherwise expressly provided in the
               option grant letter reflecting such Option; provided, however,
               that no Incentive Option granted to a person who, at the time
               such Option is granted, owns stock of the Company, or any Related
               Entity, possessing more than 10% of the total combined voting
               power of all classes of stock of the Company, or any Related
               Entity, shall be exercisable after the expiration of five years
               from the date such Option is granted.

          d.   Death. If an optionee's employment with the Company or a Related
               Entity terminates due to the death of such optionee, the estate
               of such optionee, or a Person who acquired the right to exercise
               such Option by bequest or inheritance or by reason of the death
               of the optionee, shall have the right to exercise the vested
               portion of such Option in accordance with its terms at any time
               and from time to time within 180 days after the date of death
               unless a longer or shorter period is expressly provided in the
               option grant letter reflecting such Option or established by the
               Committee pursuant to Section 9 (but in no event after the
               expiration date of such Option), and thereafter such Option shall
               lapse and no longer be exercisable.

          e.   Disability. If the employment of an optionee terminates because
               of his or her Disability (as defined in Section 19), such
               optionee or his or her legal representative shall have the right
               to exercise the vested portion of such Option in accordance with
               its terms at any time and from time to time within 180 days after
               the date of such termination unless a longer or shorter period is
               expressly provided in the option grant letter reflecting such
               Option or established by the Committee pursuant to Section 9 (but
               in no event after the expiration date of the Option), and
               thereafter such Option shall lapse and no longer be exercisable;
               provided, however, that in the case of an Incentive Option, the
               optionee or his or her legal representative shall in any event be
               required to exercise the vested portion of such Incentive Option
               within one year after termination of the optionee's employment
               due to his or her Disability.

          f.   Termination for Good Cause; Voluntary Termination. Unless an
               optionee's Option expressly provides otherwise, such optionee
               shall immediately forfeit all rights under his or her Option,
               except as to the shares of stock already purchased thereunder, if
               the employment of such optionee with the Company or a Related
               Entity is terminated by the Company or any Related Entity for
               Good Cause (as defined below) or if such optionee voluntarily
               terminates employment without the consent of the Company or any
               Related Entity. The determination that there exists

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               Good Cause for termination shall be made by the Committee (unless
               otherwise agreed to in writing by the Company and the optionee)
               and any decision in respect thereof by the Committee shall be
               final and binding on all parties in interest.

          g.   Other Termination of Employment. If the employment of an optionee
               with the Company or a Related Entity terminates for any reason
               other than those specified in subsections 6(d), (e) or (f) above,
               then with the approval of the Board of Directors, such optionee
               shall have the right to exercise the vested portion of his or her
               Option in accordance with its terms, within 30 days after the
               date of such termination, unless a longer or shorter period is
               expressly provided in the option grant letter reflecting such
               Option or established by the Committee pursuant to Section 9 (but
               in no event after the expiration date of the Option), and
               thereafter such Option shall lapse and no longer be exercisable;
               provided, that (i) no Incentive Option shall be exercisable more
               than three months after such termination, and (ii) the Committee
               may, in the exercise of its discretion, extend the exercise date
               of any Option upon termination of employment for a period not to
               exceed six months plus one day (but in no event after the
               expiration date of the Option) if the Committee determines that
               the stated exercise date will have an inequitable result under
               Section 16(b) of the Exchange Act.

          h.   Maximum Exercise. To the extent that the aggregate Fair Market
               Value of Common Stock (determined at the time of the grant of the
               Option) with respect to which Incentive Options are exercisable
               for the first time by an optionee during any calendar year under
               all plans of the Company and any Related Entity exceeds $100,000,
               such Incentive Options shall be treated as Non-Qualified Options.

          i.   Continuation of Employment. Each Incentive Option shall require
               the optionee to remain in the continuous employ of the Company or
               any Related Entity from the date of grant of the Incentive Option
               until at least three months prior to the date of exercise of the
               Incentive Option.

          j.   Interpretation of Plan. Any termination of employment of an
               optionee with the Company or any Related Entity shall in no way
               change or amend the Company's at-will termination policy.

7.       Stock Option Grants to Eligible Non-Employees.

         Subject to the express provisions of the Plan, the Committee shall have
the authority to grant Non-Qualified Options (and not Incentive Options) to
Eligible Non-Employees; provided, however, that whenever the Company has any
class of equity securities registered pursuant to Section 12 of the Exchange
Act, no Eligible Non-Employee then serving on the Committee (or such other
committee then administering the Plan) shall be granted Options hereunder if the
grant of such Options would cause

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such Eligible Non-Employee to no longer be a "Non-Employee Director" as set
forth in Section 2 hereof. The terms and conditions of the Options granted under
this Section 7 shall be determined from time to time by the Committee; provided,
however, that the Options granted under this Section 7 shall be subject to all
terms and provisions of the Plan (other than Section 6), including the
following:

          a.   Option Exercise Price. The Committee shall establish the Option
               exercise price at the time any Non-Qualified Option is granted to
               an Eligible Non-Employee at such amount as the Committee shall
               determine. The Option exercise price shall be subject to
               adjustment in accordance with the provisions of Section 11 of the
               Plan.

          b.   Payment. The price per share of Common Stock with respect to each
               Option exercise by an Eligible Non-Employee shall be payable at
               the time of such exercise. Such price shall be payable in cash or
               by any other means acceptable to the Committee, including by the
               delivery to the Company of shares of Common Stock owned by the
               optionee for at least six months pursuant to a procedure created
               pursuant to subsection 5(d) of the Plan. Shares delivered to the
               Company in payment of the Option exercise price shall be valued
               at the Fair Market Value of the Common Stock on the day preceding
               the date of the exercise of the Option.

          c.   Exercisability of Stock Option. At the time of grant, the
               Committee shall determine, subject to the provisions of
               subsections 6(d), (e), (f), (g) and (i) below, when and under
               what conditions stock options granted to Key Employees hereunder
               shall vest and become exercisable.

               No Option shall be exercisable after the expiration of ten years
               from the date of grant of the Option, unless otherwise expressly
               provided in the option grant letter reflecting such Option.

          d.   Death. If the retention by the Company or any Related Entity of
               the services of any Eligible Non-Employee that is a natural
               person terminates because of his or her death, the estate of such
               optionee, or a Person who acquired the right to exercise the
               vested portion of such Option by bequest or inheritance or by
               reason of the death of the optionee, shall have the right to
               exercise such Option in accordance with its terms, at any time
               and from time to time within 180 days after the date of death
               unless a longer or shorter period is expressly provided in the
               option grant letter reflecting such Option or established by the
               Committee pursuant to Section 9 (but in no event after the
               expiration date of such Option), and thereafter such Option shall
               lapse and no longer be exercisable.

          e.   Disability. If the retention by the Company or any Related Entity
               of the services of any Eligible Non-Employee that is a natural
               person terminates because of his or her Disability, such optionee
               or his or her legal

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               representative shall have the right to exercise the vested
               portion of such Option in accordance with its terms at any time
               and from time to time within 180 days after the date of the
               optionee's termination unless a longer or shorter period is
               expressly provided in the option grant letter reflecting such
               Option or established by the Committee pursuant to Section 9 (but
               in no event after the expiration of the Option), and thereafter
               such Option shall lapse and no longer be exercisable.

          f.   Termination for Good Cause; Voluntary Termination. If the
               retention by the Company or any Related Entity of the services of
               any Eligible Non-Employee is terminated (i) for Good Cause, (ii)
               as a result of removal of the optionee from office as a director
               of the Company or of any Related Entity for cause by action of
               the shareholders of the Company or such Related Entity in
               accordance with the charter or the bylaws of the Company or such
               Related Entity, as applicable, and the corporate law of the
               jurisdiction of incorporation of the Company or such Related
               Entity, or (iii) as a result of the voluntary termination by such
               optionee of the optionee's service without the consent of the
               Company or any Related Entity, then such optionee shall
               immediately forfeit his, her or its rights under such Option
               except as to the shares of stock already purchased. The
               determination that there exists Good Cause for termination shall
               be made by the Committee (unless otherwise agreed to in writing
               by the Company and the optionee) and any decision in respect
               thereof by the Committee shall be final and binding on all
               parties in interest.

          g.   Other Termination of Relationship. If the retention by the
               Company or any Related Entity of the services of any Eligible
               Non-Employee terminates for any reason other than those specified
               in subsections 7(d), (e) or (f) above, then with the approval of
               the Board of Directors, such optionee shall have the right to
               exercise the vested portion of his, her or its Option in
               accordance with its terms within 30 days after the date of such
               termination, unless a longer or shorter period is expressly
               provided in the option grant letter reflecting such Option or
               established by the Committee pursuant to Section 9 (but in no
               event after the expiration date of the Option), and thereafter
               such Option shall lapse and no longer be exercisable; provided,
               however, that the Committee may, in the exercise of its
               discretion, extend the exercise date of any Option upon
               termination of retention of an Eligible Non-Employee's services
               for a period not to exceed six months plus one day (but in no
               event after the expiration date of the Option) if the Committee
               determines that the stated exercise date will have an inequitable
               result under Section 16(b) of the Exchange Act.

8.       Performance-Based Options.

         The Committee, in its sole discretion, may designate and design Options
granted under the Plan as Performance-Based Options, recognizing that due to the
deduction

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limitation imposed by Section 162(m) of the Code, compensation attributable to
such Options might not otherwise be tax deductible by the Company. Accordingly,
Options granted under the Plan may be granted in such a manner that the
compensation attributable to such Options is intended by the Committee to
qualify as "performance-based compensation" as such term is used in Section
162(m) of the Code and the regulations promulgated thereunder and thus be exempt
from the deduction limitation imposed by Section 162(m) of the Code
("Performance-Based Options").

         Options granted under the Plan to Key Employees who constitute "covered
employees" within the meaning of Section 162(m) of the Code shall be deemed to
qualify as Performance-Based Options only if:

          a.   The Option exercise price is not less than the Fair Market Value
               per share of Common Stock at the date the Option is granted;
               provided, however, that in the case of an Incentive Option, such
               price is subject to the limitations described in subsection 6(a);
               provided, further, that the Option exercise price shall be
               subject to adjustment in accordance with the provisions of
               Section 11 of the Plan; or

          b.   With respect to a Non-Qualified Option granted at an exercise
               price that is below the Fair Market Value per share of the Common
               Stock on the date of grant, such Option satisfies the following
               requirements:

               (i)  the granting or vesting of such Non-Qualified Option is
                    subject to the achievement of a performance goal or goals
                    based on one or more of the following performance measures
                    (either individually or in any combination): net sales;
                    pre-tax income before allocation of corporate overhead and
                    bonus; budget; cash flow; earnings per share; net income;
                    division, group or corporate financial goals; return on
                    stockholders' equity; return on assets; attainment of
                    strategic and operational initiatives; appreciation in
                    and/or maintenance of the price of the Common Stock or any
                    other publicly-traded securities of the Company; market
                    share; gross profits; earnings before interest and taxes;
                    earnings before interest, taxes, depreciation and
                    amortization; economic value-added models; comparisons with
                    various stock market indices; increase in number of
                    customers; and/or reductions in costs;

               (ii) the Committee establishes in writing (A) the objective
                    performance-based goals applicable to a given performance
                    period, and (B) the individual employees or class of
                    employees to which such performance-based goals apply no
                    later than ninety days after the commencement of such
                    performance period (but in no event after twenty-five
                    percent of such performance period has elapsed);

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               (iii) no compensation attributable to Performance-Based Options
                     will be paid to or otherwise received by a Key Employee who
                     constitutes a "covered employee" within the meaning of
                     Section 162(m) of the Code until the Committee certifies in
                     writing that the performance goal or goals (and any other
                     material terms) applicable to such performance period have
                     been satisfied;

               (iv)  after the establishment of a performance goal, the
                     Committee shall not revise such performance goal (unless
                     such revision will not disqualify compensation attributable
                     to the Performance-Based Options as "performance-based
                     compensation" under Section 162(m) of the Code) or increase
                     the amount of compensation payable with respect to such
                     Performance-Based Options upon the attainment of such
                     performance goal; and

               (v)   as required by the regulations promulgated under Section
                     162(m) of the Code, the material terms of performance goals
                     as described in subsection 8(b)(i) shall be disclosed to
                     and reapproved by the Company's shareholders no later than
                     the first shareholder meeting that occurs in the fifth year
                     following the year in which the Company's shareholders
                     previously approved such performance goals.

9.       Change of Control.

         If (i) a Change of Control shall occur, (ii) the Company shall enter
into an agreement providing for a Change of Control, or (iii) any member of the
Onex Group shall enter into an agreement providing for a Change of Control, then
the Committee may declare any or all Options outstanding under the Plan to be
exercisable in full at such time or times as the Committee shall determine, and
under such conditions as the Committee shall determine, notwithstanding the
express provisions of such Options. Each Option accelerated by the Committee
pursuant to the preceding sentence shall terminate, notwithstanding any express
provision thereof or any other provision of the Plan, on such date (not later
than the stated exercise date) as the Committee shall determine.

10.      Purchase Option.

          a.   Except as otherwise expressly provided in the option grant letter
               reflecting any particular Option, if (i) any optionee's
               employment (or, in the case of any Option granted under Section
               7, the optionee's relationship) with the Company or a Related
               Entity terminates for any reason at any time or (ii) a Change of
               Control occurs, the Company and/or its designee(s) shall have the
               option (the "Purchase Option") to purchase, and if the option is
               exercised, the optionee (or, with respect to Common Stock
               acquired pursuant to the exercise of an Option, the optionee's
               assignee, or the optionee's executor or the administrator of the
               optionee's estate, in the

                                       12

<PAGE>   13

               event of the optionee's death, or the optionee's legal
               representative in the event of the optionee's incapacity
               (hereinafter, collectively with such optionee, the "Grantor"))
               shall sell to the Company and/or its assignee(s), all or any
               portion (at the Company's option) of the shares of Common Stock
               and/or Options held by the Grantor (such shares of Common Stock
               and Options collectively being referred to as the "Purchasable
               Shares").

          b.   The Company shall give notice in writing to the Grantor of the
               exercise of the Purchase Option within one year after the earlier
               of the date of the termination of the optionee's employment or
               engagement or such Change of Control. Such notice shall state the
               number of Purchasable Shares to be purchased and the purchase
               price of such Purchasable Shares. If no notice is given within
               the time limit specified above, the Purchase Option shall
               terminate.

          c.   The purchase price to be paid for the Purchasable Shares
               purchased pursuant to the Purchase Option shall be, in the case
               of any Common Stock, the Fair Market Value per share as of the
               date of the notice of exercise of the Purchase Option times the
               number of shares being purchased, and in the case of any Option,
               the Fair Market Value per share times the number of vested shares
               (including by acceleration) subject to such Option which are
               being purchased, less the applicable per share Option exercise
               price. The purchase price shall be paid in cash. For purposes
               hereof, if the Purchase Option shall be exercised within six
               months after a Change of Control, the Fair Market Value shall be
               deemed to be that price per share of Common Stock received by
               members of the Onex Group as a result of such Change of Control.
               The closing of such purchase shall take place at the Company's
               principal executive offices within ten days after the purchase
               price has been determined. At such closing, the Grantor shall
               deliver to the purchaser(s) the certificates or instruments
               evidencing the Purchasable Shares being purchased, duly endorsed
               (or accompanied by duly executed stock powers) and otherwise in
               good form for delivery, against payment of the purchase price by
               check of the purchaser(s). In the event that, notwithstanding the
               foregoing, the Grantor shall have failed to obtain the release of
               any pledge or other encumbrance on any Purchasable Shares by the
               scheduled closing date, at the option of the purchaser(s) the
               closing shall nevertheless occur on such scheduled closing date,
               with the cash purchase price being reduced to the extent of, and
               paid to the holder of, all unpaid indebtedness or other
               obligation for which such Purchasable Shares are then pledged or
               encumbered.

          d.   To assure the enforceability of the Company's rights under this
               Section 10, each certificate or instrument representing Common
               Stock or an Option held by him or it shall bear a conspicuous
               legend in substantially the following form:

                                       13

<PAGE>   14

                           "THE SHARES [REPRESENTED BY THIS CERTIFICATE]
                           [ISSUABLE PURSUANT TO THIS AGREEMENT] ARE SUBJECT TO
                           AN OPTION TO REPURCHASE PROVIDED UNDER THE PROVISIONS
                           OF THE COMPANY'S 1998 STOCK OPTION PLAN AND A STOCK
                           OPTION AGREEMENT ENTERED INTO PURSUANT THERETO. A
                           COPY OF SUCH OPTION PLAN AND OPTION AGREEMENT ARE
                           AVAILABLE UPON WRITTEN REQUEST TO THE COMPANY AT ITS
                           PRINCIPAL EXECUTIVE OFFICES."

         The Company's rights under this Section 10 shall terminate upon the
consummation of a Qualifying Public Offering.

11.      Adjustment of Shares.

         Except as otherwise contemplated in Section 9, and unless otherwise
expressly provided in the option grant letter reflecting a particular Option, in
the event that, by reason of any merger, consolidation, combination,
liquidation, recapitalization, stock dividend, stock split, split-up, split-off,
spin-off, combination of shares, exchange of shares or other like change in
capital structure of the Company (collectively, an "Adjustment Event"), the
Common Stock is substituted, combined, or changed into any cash, property, or
other securities, or the shares of Common Stock are changed into a greater or
lesser number of shares of Common Stock, the number and/or kind of shares and/or
interests subject to this Plan and to any Option and the per share price or
value thereof shall be appropriately and equitably adjusted by the Committee to
give appropriate effect to such Adjustment Event. Any fractional shares or
interests resulting from such adjustment shall be eliminated. Notwithstanding
the foregoing, (i) each such adjustment with respect to an Incentive Option
shall comply with the rules of Section 424(a) of the Code to an Incentive
Option, (ii) in no event shall any adjustment be made which would render any
Incentive Option granted hereunder other than an "incentive stock option" for
purposes of Section 422 of the Code, and (iii) no adjustment shall be made under
this Section 11 as a result of the issuance of shares of Common Stock for
consideration in cash or in property.

         In the event the Company is not the surviving entity of an Adjustment
Event and, following such Adjustment Event, any optionee will hold Options
issued pursuant to the Plan which have not been exercised, cancelled, or
terminated in connection therewith, the Company shall cause such Options to be
assumed (or cancelled and replacement Options issued) by the surviving entity or
a Related Entity. In the event of any perceived conflict between the provisions
of Section 9 and this Section 11, the Committee's determinations under Section 9
shall control.

12.      Assignment or Transfer.

         Except as otherwise expressly provided in the option grant letter
reflecting any Non-Qualified Option, no Option granted under the Plan or any
rights or interests therein

                                       14

<PAGE>   15
shall be assignable or transferable by an optionee except by will or the laws of
descent and distribution, and during the lifetime of an optionee, Options
granted to him or her hereunder shall be exercisable only by the optionee or, in
the event that a legal representative has been appointed in connection with the
Disability of an optionee, such legal representative.

13.      Compliance with Securities Laws.

         The Company shall not in any event be obligated to file any
registration statement under the Securities Act of 1933, as amended (the
"Securities Act"), or any applicable state or foreign securities laws, to permit
exercise of any Option or to issue any Common Stock in violation of the
Securities Act or any applicable securities laws. Each optionee (or, in the
event of his or her death or, in the event a legal representative has been
appointed in connection with his or her Disability, the Person exercising the
Option) shall, as a condition to his or her right to exercise any Option,
deliver to the Company an agreement or certificate containing such
representations, warranties and covenants as the Company may deem necessary or
appropriate to ensure that the issuance of shares of Common Stock pursuant to
such exercise is not required to be registered under the Securities Act or any
applicable securities laws.

         Certificates for shares of Common Stock, when issued, may have
substantially the following legend, or statements of other applicable
restrictions, endorsed thereon, and may not be immediately transferable:

         In the event that shares are issued to U.S. residents:

                  "THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT
                  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
                  OR ANY STATE SECURITIES LAWS. THE SHARES MAY NOT BE OFFERED
                  FOR SALE, SOLD, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF
                  UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE
                  ISSUER (WHICH, IN THE DISCRETION OF THE ISSUER, MAY INCLUDE AN
                  OPINION OF COUNSEL SATISFACTORY TO THE ISSUER) THAT SUCH
                  OFFER, SALE, PLEDGE, TRANSFER OR OTHER DISPOSITION WILL NOT
                  VIOLATE APPLICABLE FEDERAL OR STATE LAWS."

         In the event that shares are issued to non-U.S. residents:

                  THE SECURITIES COVERED HEREBY HAVE NOT BEEN REGISTERED UNDER
                  THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
                  ACT"), OR THE SECURITIES LAWS OF OTHER JURISDICTIONS AND MAY
                  NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES

                                       15

<PAGE>   16

                  OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, "U.S. PERSONS" (AS
                  DEFINED IN REGULATION S PROMULGATED UNDER THE SECURITIES
                  ACT, EXCEPT IN ACCORDANCE WITH REGULATIONS UNDER THE
                  SECURITIES ACT, PURSUANT TO REGISTRATION OF THE SECURITIES
                  UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
                  EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
                  SECURITIES ACT.

         In the event that shares are issued to a party to the Stockholders
Agreement (as defined).

                  THIS SECURITY IS SUBJECT TO RESTRICTIONS ON TRANSFER, VOTING
                  AND OTHER TERMS AND CONDITIONS SET FORTH IN THE STOCKHOLDERS
                  AGREEMENT DATED AS OF OCTOBER 1, 1998, A COPY OF WHICH MAY BE
                  OBTAINED FROM CUSTOMERONE HOLDING CORPORATION AT ITS PRINCIPAL
                  EXECUTIVE OFFICES.

         For all shares:

                  THE ISSUER IS AUTHORIZED TO ISSUE SHARES OF MORE THAN ONE
                  CLASS AND TO ISSUE SHARES IN MORE THAN ONE SERIES OF AT LEAST
                  ONE CLASS. THE ISSUER WILL FURNISH WITHOUT CHARGE TO EACH
                  STOCKHOLDER WHO SO REQUESTS A STATEMENT OF THE POWERS,
                  DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING,
                  OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR
                  SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR
                  RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.

         No legend relating to exemptions from registration under the Securities
Act shall be required for shares of Common Stock issued pursuant to an effective
registration statement under the Securities Act and in accordance with
applicable state or foreign securities laws.

14.      Withholding Taxes.

         By acceptance of the Option, the optionee will be deemed to (i) agree
to reimburse the Company or any Related Entity by which the optionee is employed
for any federal, state, or local taxes required by any government to be withheld
or otherwise deducted by such corporation in respect of the optionee's exercise
of all or a portion of the Option; (ii) authorize the Company or any Related
Entity by which the optionee is employed to withhold from any cash compensation
paid to the optionee or on the optionee's behalf, an amount sufficient to
discharge any federal, state and local taxes

                                       16

<PAGE>   17

imposed on the Company or the Related Entity by which the optionee is employed,
and which otherwise has not been reimbursed by the optionee, in respect of the
optionee's exercise of all or a portion of the Option; and (iii) agree that the
Company may, in its discretion, hold the stock certificate to which the optionee
is entitled upon exercise of the Option as security for the payment of the
aforementioned withholding tax liability, until cash sufficient to pay that
liability has been accumulated, and may, in its discretion, effect such
withholding by retaining shares issuable upon the exercise of the Option having
a Fair Market Value on the date of exercise which is equal to the amount to be
withheld.

15.      Costs and Expenses.

         The costs and expenses of administering the Plan shall be borne by the
Company and shall not be charged against any Option nor to any employee
receiving an Option.

16.      Funding of Plan.

         The Plan shall be unfunded. The Company shall not be required to make
any segregation of assets to assure the payment of any Option under the Plan.

17.      Other Incentive Plans.

         The adoption of the Plan does not preclude the adoption by appropriate
means of any other incentive plan for employees.

18.      Effect on Employment.

         Nothing contained in the Plan or any agreement related hereto or
referred to herein shall affect, or be construed as affecting, the terms of
employment of any Key Employee except to the extent specifically provided herein
or therein. Nothing contained in the Plan or any agreement related hereto or
referred to herein shall impose, or be construed as imposing, an obligation on
(i) the Company or any Related Entity to continue the employment of any Key
Employee, and (ii) any Key Employee to remain in the employ of the Company or
any Related Entity.

19.      Definitions.

         In addition to the terms specifically defined elsewhere in the Plan, as
used in the Plan, the following terms shall have the respective meanings
indicated:

         "Adjustment Event" shall have the meaning set forth in Section 11
         hereof.

         "Affiliate" shall mean, as to any Person, a Person that directly, or
         indirectly through one or more intermediaries, controls, or is
         controlled by, or is under common control with, such Person.

         "Board of Directors" shall have the meaning set forth in Section 2
         hereof.

                                       17

<PAGE>   18

         "Change of Control" shall mean the first to occur of the following
         events: (i) any sale, lease, exchange, or other transfer (in one
         transaction or series of related transactions) of all or substantially
         all of the assets of the Company to any Person or group of related
         Persons as determined pursuant to Section 13(d) of the Exchange Act and
         the regulations and interpretations thereunder (a "Group") other than
         one or more members of the Onex Group, (ii) a majority of the Board of
         Directors of the Company shall consist of Persons who are not
         Continuing Directors; or (iii) the acquisition by any Person or Group
         other than one or more members of the Onex Group of the power, directly
         or indirectly, to vote or direct the voting of securities having more
         than 50% of the ordinary voting power for the election of directors of
         the Company.

         "Code" shall have the meaning set forth in Section 1 hereof.

         "Committee" shall have the meaning set forth in Section 2 hereof.

         "Common Stock" shall have the meaning set forth in Section 3 hereof.

         "Company" shall have the meaning set forth in Section 1 hereof.

         "Continuing Director" shall mean, as of the date of determination, any
         Person who (i) was a member of the Board of Directors of the Company on
         the date of adoption of the Plan, (ii) was nominated for election or
         elected to the Board of Directors of the Company with the affirmative
         vote of a majority of the Continuing Directors who were members of such
         Board of Directors at the time of such nomination or election, or (iii)
         is a member of the Onex Group.

         "Disability" shall mean (i) permanent disability as defined under the
         appropriate provisions of the applicable long-term disability plan
         maintained for the benefit of employees of the Company or any Related
         Entity who are regularly employed on a salaried basis or (ii) if no
         such long-term disability plan exists, an inability to perform a
         participant's employment duties and responsibilities by reason of any
         physical or mental condition for a period of 26 consecutive weeks or a
         period of 26 weeks during any 12-month period in connection with the
         same physical or mental condition or (iii) another meaning agreed to in
         writing by the Committee and the optionee; provided, however, that in
         the case of the optionee holding an Incentive Option "disability" shall
         have the meaning specified in Section 22(e)(3) of the Code.

         "Eligible Non-Employee" shall have the meaning set forth in Section 4
         hereof.

         "Exchange Act" shall have the meaning set forth in Section 2 hereof.

         "Fair Market Value" shall, as it relates to the Common Stock, mean the
         average of the high and low prices of such Common Stock as reported on
         the principal national securities exchange on which the shares of
         Common Stock are then listed

                                       18

<PAGE>   19

         or the NASDAQ National Market, as applicable, on the date specified
         herein for such a determination; or if there were no sales on such
         date, on the next preceding day on which there were sales; or, if such
         Common Stock is not listed on a national securities exchange, the last
         reported bid price in the over-the-counter market; or, if such shares
         are not traded in the over-the-counter market, the per share cash
         price for which all of the outstanding Common Stock could be sold to a
         willing purchaser in an arms length transaction (without regard to
         minority discount, absence of liquidity, or transfer restrictions
         imposed by any applicable law or agreement) at the date of the event
         giving rise to a need for a determination. Except as may be otherwise
         expressly provided in the option grant letter reflecting a particular
         Option, Fair Market Value shall be determined in good faith by the
         Committee.

         "Good Cause", with respect to any Key Employee, shall mean (unless
         another definition is agreed to in writing by the Company and the
         optionee) termination by action of the Board of Directors because of:
         (A) the optionee's conviction of, or plea of nolo contendere to, a
         felony or a crime involving moral turpitude; (B) the optionee's
         personal dishonesty, willful misconduct, willful violation of any law,
         rule, or regulation (other than minor traffic violations or similar
         offenses) or breach of fiduciary duty which involves personal profit;
         (C) the optionee's willful commission of material mismanagement in the
         conduct of his or her duties as assigned to him by the Board of
         Directors or the optionee's supervising officer or officers of the
         Company; (D) the optionee's willful failure to execute or comply with
         the policies of the Company or his or her stated duties as established
         by the Board of Directors or the optionee's supervising officer or
         officers of the Company, or the optionee's intentional failure to
         perform the optionee's stated duties; or (E) substance abuse or
         addiction on the part of the optionee. "Good Cause", with respect to
         any Eligible Non-Employee, shall mean (unless another definition is
         agreed to in writing by the Company and the optionee) termination by
         action of the Board of Directors because of: (A) the optionee's
         conviction of, or plea of nolo contendere to, a felony or a crime
         involving moral turpitude; (B) the optionee's personal dishonesty,
         willful misconduct, willful violation of any law, rule, or regulation
         (other than minor traffic violations or similar offenses) or breach of
         fiduciary duty which involves personal profit; (C) the optionee's
         willful commission of material mismanagement in providing services to
         the Company or any Related Entity; (D) the optionee's willful failure
         to comply with the policies of the Company in providing services to the
         Company or any Related Entity, or the optionee's intentional failure to
         perform the services for which the optionee has been engaged; (E)
         substance abuse or addiction on the part of the optionee; or (F) the
         optionee's willfully making any material misrepresentation or willfully
         omitting to disclose any material fact to the board of directors of the
         Company or any Related Entity with respect to the business of the
         Company or any Related Entity.

         "Grantor" has the meaning set forth in Section 10 hereof.

                                       19

<PAGE>   20

         "Holding Period" shall have the meaning set forth in subsection 5(d)
         hereof.

         "Incentive Options" shall have the meaning set forth in Section 6
         hereof.

         The term "including" when used herein shall mean "including, but not
         limited to".

         "Key Employee" shall have the meaning set forth in Section 4 hereof.

         "Non-Qualified Options" shall have the meaning set forth in Section 6
         hereof.

         "Onex Group" shall mean 1293219 Ontario, Inc., its Affiliates, and
         their respective employees, officers, partners and directors (and
         members of their respective families and trusts for the primary benefit
         of such family members).

         "Options" shall have the meaning set forth in Section 1 hereof.

         "Performance-Based Options" shall have the meaning set forth in Section
         8 hereof.

         "Person" shall have the meaning set forth in Section 4 hereof.

         "Plan" shall have the meaning set forth in Section 1 hereof.

         "Purchasable Shares" shall have the meaning set forth in Section 10
         hereof.

         "Purchase Option" shall have the meaning set forth in Section 10
         hereof.

         "Qualifying Public Offering" shall mean the completion of a firm
         commitment underwritten public offering of Common Stock the result of
         which is that the Onex Group shall own less than 10% of the fully
         diluted Common Stock of the Company.

         "Related Entities" shall have the meaning set forth in Section 1
         hereof.

         "Rule 16b-3" shall have the meaning set forth in Section 2 hereof.

         "Securities Act" shall have the meaning set forth in Section 13 hereof.

         "Term" shall have the meaning set forth in Section 21 hereof.

20.      Amendment of Plan.

         The Board of Directors shall have the right to amend, modify, suspend
or terminate the Plan at any time; provided, however, that no amendment shall be
made which shall increase the total number of shares of the Common Stock which
may be issued and sold pursuant to Options granted under the Plan or decrease
the minimum Option exercise price in the case of an Incentive Option, or modify
the provisions of the Plan relating to eligibility with respect to Incentive
Options unless such amendment is

                                       20

<PAGE>   21

made by or with the approval of the shareholders. The Board of Directors shall
be authorized to amend the Plan and the Options granted thereunder, without the
consent or joinder of any optionee or other Person, in such manner as may be
deemed necessary or appropriate by the Board of Directors in order to cause the
Plan and the Options granted thereunder (i) to qualify as "incentive stock
options" within the meaning of Section 422 of the Code, (ii) to comply with Rule
16b-3 (or any successor rule) under the Exchange Act (or any successor law) and
the regulations (including any temporary regulations) promulgated thereunder or
(iii) to comply with Section 162(m) of the Code (or any successor section) and
any regulations (including any temporary regulations) promulgated thereunder.
Except as provided above, no amendment, modification, suspension or termination
of the Plan shall materially impair the value of any Options previously granted
under the Plan, without the consent of the holder thereof.

21.      Effective Date.

         The Plan shall be effective as of September 30, 1998, and shall be void
retroactively as to any Incentive Option if not approved by the shareholders of
the Company within twelve months thereafter. The Plan shall terminate on the
tenth anniversary of the date of adoption of the Plan or the date of approval of
the Plan by the shareholders of the Company, whichever is earlier, unless sooner
terminated by the Board of Directors (the "Term").

                                       21<PAGE>   1
                                                                    EXHIBIT 10.4

                                 AMENDMENT NO. 1

                                       TO

                         CUSTOMERONE HOLDING CORPORATION

                             1998 STOCK OPTION PLAN

                  This Amendment (this "Amendment") to the CustomerONE Holding
Corporation 1998 Stock Option Plan (the "Plan") is effective as of June 21,
1999.

                  WHEREAS, each of the Board of Directors (the "Board of
Directors) of ClientLogic Holding Corporation (formerly CustomerONE Holding
Corporation), a Delaware corporation (the "Company"), and the stockholders (the
"Stockholders") of the Company have heretofore adopted and approved the Plan;

                  WHEREAS, the Company has recently changed its name from
CustomerONE Holding Corporation to ClientLogic Holding Corporation; and

                  WHEREAS, the Board of Directors and the Stockholders wish to
amend the Plan to reflect the recent change of the Company's name , to provide
for a greater maximum aggregate number of shares of the common stock, par value
$0.01 per share, of the Company (the "Common Stock") in respect of which Options
(as that term is defined in the Plan) may be granted for all purposes under the
Plan, and to provide for a greater maximum aggregate number of shares of Common
Stock underlying all Options that may be granted to any single Key Employee (as
such term is defined in the Plan) during the Term (as that term is defined in
the Plan);

                  NOW, THEREFORE, the Plan is hereby amended as follows:

1.       TITLE OF PLAN.

                  The title of the Plan, as set forth on the first page of the
Plan, is hereby amended to read, in its entirety, as follows:

<PAGE>   2

                         CLIENTLOGIC HOLDING CORPORATION

                             1998 STOCK OPTION PLAN

2.       SECTION 1.

                  The first paragraph of Section 1 of the Plan is hereby amended
and restated to read, in its entirety, as follows:

                           ClientLogic Holding Corporation, a Delaware
         corporation (herein, together with its successors, referred to as the
         "Company"), by means of this 1998 Stock Option Plan (the "Plan"),
         desires to afford certain key employees employed by, and certain
         persons performing services for the Company and any direct or indirect
         subsidiary or parent corporation thereof now existing or hereafter
         formed or acquired (such corporations sometimes referred to herein as
         "Related Entities") who are responsible for the continued growth of the
         Company an opportunity to acquire a proprietary interest in the
         Company, and thus to create in such persons an increased interest in
         and a greater concern for the welfare of the Company and any Related
         Entities. Certain definitions used herein are defined in Section 19 of
         this Plan.

3.       SECTION 3.

                  Section 3 of the Plan is hereby amended and restated to read,
in its entirety, as follows:

         3.       Shares Available and Maximum Individual Grants.

                           Subject to the adjustments provided in Section 11,
         the maximum aggregate number of shares of Common Stock, par value $0.01
         per share, of the Company ("Common Stock") in respect of which Options
         may be granted for all purposes under the Plan shall be 7,300,000
         shares. If, for any reason, any shares as to which Options have been
         granted cease to be subject to purchase thereunder, including the
         expiration of any such Option, the termination of any such Option prior
         to exercise, or the forfeiture of any such Option, such shares shall
         thereafter be available for grants under the Plan. Options granted
         under the Plan may be fulfilled in accordance with the terms of the
         Plan with (i) authorized and unissued shares of the Common Stock, or
         (ii) issued shares of such Common Stock held in the Company's treasury.

                           The maximum aggregate number of shares of Common
         Stock underlying all Options that may be granted to any single Key
         Employee, including any Options that may have been granted to such Key
         Employee as an Eligible Non-Employee (as hereinafter defined), during
         the Term (as hereinafter defined) of the Plan shall be 1,886,500
         shares, subject to the adjustments provided in Section 11. For purposes
         of the preceding sentence, such Options that are cancelled or repriced
         shall continue to be counted in determining such maximum aggregate
         number of shares of Common Stock that may be granted to any single Key
         Employee, including any Options that may have been granted to such Key
         Employee as an Eligible Non-Employee, during the Term of the Plan.

                                       2
<PAGE>   3

4.       SECTION 13.

                  Section 13 of the Plan is hereby amended and restated to read,
in its entirety, as follows:

         13.      Compliance with Securities Laws.

                           The Company shall not in any event be obligated to
         file any registration statement under the Securities Act of 1933, as
         amended (the "Securities Act"), or any applicable state or foreign
         securities laws, to permit exercise of any Option or to issue any
         Common Stock in violation of the Securities Act or any applicable
         securities laws. Each optionee (or, in the event of his or her death
         or, in the event a legal representative has been appointed in
         connection with his or her Disability, the Person exercising the
         Option) shall, as a condition to his or her right to exercise any
         Option, deliver to the Company an agreement or certificate containing
         such representations, warranties and covenants as the Company may deem
         necessary or appropriate to ensure that the issuance of shares of
         Common Stock pursuant to such exercise is not required to be registered
         under the Securities Act or any applicable securities laws.

                           Certificates for shares of Common Stock, when issued,
         may have substantially the following legend, or statements of other
         applicable restrictions, endorsed thereon, and may not be immediately
         transferable:

                  In the event that shares are issued to U.S. residents:

                           "THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE
                           HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
                           1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THE
                           SHARES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED,
                           TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL THE HOLDER
                           HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER
                           (WHICH, IN THE DISCRETION OF THE ISSUER, MAY INCLUDE
                           AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER)
                           THAT SUCH OFFER, SALE, PLEDGE, TRANSFER OR OTHER
                           DISPOSITION WILL NOT VIOLATE APPLICABLE FEDERAL OR
                           STATE LAWS."

                  In the event that shares are issued to non-U.S. residents:

                           THE SECURITIES COVERED HEREBY HAVE NOT BEEN
                           REGISTERED UNDER THE U.S. SECURITIES

                                       3

<PAGE>   4

                           ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
                           THE SECURITIES LAWS OF OTHER JURISDICTIONS AND MAY
                           NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR
                           TO, OR FOR THE ACCOUNT OR BENEFIT OF, "U.S. PERSONS"
                           (AS DEFINED IN REGULATION S PROMULGATED UNDER THE
                           SECURITIES ACT, EXCEPT IN ACCORDANCE WITH REGULATIONS
                           UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION OF
                           THE SECURITIES UNDER THE SECURITIES ACT OR PURSUANT
                           TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
                           REQUIREMENTS OF THE SECURITIES ACT.

                  In the event that shares are issued to a party to the
                  Stockholders Agreement (as defined):

                           THIS SECURITY IS SUBJECT TO RESTRICTIONS ON TRANSFER,
                           VOTING AND OTHER TERMS AND CONDITIONS SET FORTH IN
                           THE STOCKHOLDERS AGREEMENT DATED AS OF OCTOBER 1,
                           1998, A COPY OF WHICH MAY BE OBTAINED FROM
                           CLIENTLOGIC HOLDING CORPORATION AT ITS PRINCIPAL
                           EXECUTIVE OFFICES.

                           For all shares:

                           THE ISSUER IS AUTHORIZED TO ISSUE SHARES OF MORE THAN
                           ONE CLASS AND TO ISSUE SHARES IN MORE THAN ONE SERIES
                           OF AT LEAST ONE CLASS. THE ISSUER WILL FURNISH
                           WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS A
                           STATEMENT OF THE POWERS, DESIGNATIONS, PREFERENCES
                           AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER
                           SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES
                           THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR
                           RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.

                           No legend relating to exemptions from registration
         under the Securities Act shall be required for shares of Common Stock
         issued pursuant to an effective registration statement under the
         Securities Act and in accordance with applicable state or foreign
         securities laws.

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