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                                                                   EXHIBIT 10.14

                              ELOYALTY CORPORATION
                            1999 STOCK INCENTIVE PLAN
                (AS AMENDED AND RESTATED AS OF FEBRUARY 28, 2001)

                                 I. INTRODUCTION

                  1.1 PURPOSES. The purposes of the 1999 Stock Incentive Plan
(the "Plan") of eLoyalty Corporation, a Delaware corporation (the "Company"),
are to (i) align the interests of the Company's stockholders and the recipients
of awards under this Plan by increasing the proprietary interest of such
recipients in the Company's growth and success, (ii) advance the interests of
the Company by attracting and retaining directors (including Non-Employee
Directors), officers, other key employees, consultants, independent contractors
and agents and (iii) motivate such persons to act in the long-term best
interests of the Company's stockholders.

                  1.2 CERTAIN DEFINITIONS.

                  "AGREEMENT" shall mean the written agreement evidencing an
         award hereunder between the Company and the recipient of such award.

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

                  "BONUS STOCK" shall mean shares of Common Stock which are not
         subject to a Restriction Period or Performance Measures.

                  "BONUS STOCK AWARD" shall mean an award of Bonus Stock under
         this Plan.

                  "CHANGE IN CONTROL" shall have the meaning set forth in
         Section 6.8(b).

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

                  "COMMITTEE" shall mean (i) prior to the date that the Company
         shall become a separate publicly held corporation for purposes of
         section 162(m) of the Code, the Committee under the Technology
         Solutions Company 1996 Stock Incentive Plan and (ii) on or after such
         date, one or more committees of the Board that have been designated by
         the Board to carry out certain respective actions under this Plan on
         behalf of the Board, subject to the limitations provided by the Board
         in any such designations; provided, however, that where necessary for
         compliance with Section 16 of the Exchange Act and the rules and
         regulations promulgated thereunder, or where the Board deems it to be
         advisable for any reason whatsoever, such committee will consist of two
         or more members of the Board, each of whom shall be a "Non-Employee
         Director" within the meaning of Rule 16b-3 under the Exchange Act; and
         provided further, that where the grant of an award is being made to any
         person who at the time of the grant is a "covered employee," or who is
         then believed likely to be a "covered employee" at any time during the
         period an award hereunder to such person would be outstanding, and
         where necessary for such grant to qualify as performance based
         compensation under the provisions of section 162(m) of the Code, such
         committee will consist of two or more members of the Board, each of
         whom shall be an "outside director" within the meaning of section
         162(m) of the Code. Notwithstanding any such committee designations,
         the Board retains the right to assume full authority to administer the
         Plan in all respects hereunder pursuant to Section 1.3 hereof.

                  "COMMON STOCK" shall mean the common stock, $.01 par value, of
         the Company.

                  "COMPANY" shall have the meaning set forth in Section 1.1.

                  "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
         as amended.

                  "FAIR MARKET VALUE" shall mean the closing transaction price
         of a share of Common Stock as reported by The Nasdaq Stock Market or
         the principal national securities exchange on which the Common Stock is
         then traded, on the date as of which such value is being determined,
         or, if there shall be no reported transactions for such date, on the
         next preceding date for which

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         transactions were reported; provided, however, that if (i) the
         determination date occurs prior to the initial date that shares of
         Common Stock are traded on The Nasdaq Stock Market or a national
         securities exchange or (ii) the Fair Market Value for any date cannot
         be so determined, Fair Market Value shall be determined by the
         Committee by whatever means or method as the Committee, in the good
         faith exercise of its discretion, shall at such time deem appropriate.

                  "FREE-STANDING SAR" shall mean an SAR which is not issued in
         tandem with, or by reference to, an option and which entitles the
         holder thereof to receive, upon exercise, shares of Common Stock (which
         may be Restricted Stock), cash or a combination thereof with an
         aggregate value equal to the excess of the Fair Market Value of one
         share of Common Stock on the date of exercise over the base price of
         such SAR, multiplied by the number of such SARs which are exercised.

                  "INCENTIVE STOCK OPTION" shall mean an option to purchase
         shares of Common Stock that meets the requirements of Section 422 of
         the Code, or any successor provision, and which is designated as an
         Incentive Stock Option.

                  "INCUMBENT BOARD" shall have the meaning set forth in Section
         6.8(b)(2) hereof.

                  "MATURE SHARES" shall mean shares of Common Stock for which
         the holder thereof has good title, free and clear of all liens and
         encumbrances and which such holder has held for at least six months.

                  "NON-EMPLOYEE DIRECTOR" shall mean any director of the Company
         who is not an officer or employee of the Company or any Subsidiary;
         provided, however, that prior to the Reference Date, "Non-Employee
         Director" shall mean any director of the Company who is not an officer
         or employee of the Company, TSC, any subsidiary of TSC or any
         Subsidiary.

                  "NON-STATUTORY STOCK OPTION" shall mean a stock option which
         is not an Incentive Stock Option.

                  "OUTSTANDING COMMON STOCK" shall have the meaning set forth in
         Section 6.8(b)(1) hereof.

                  "OUTSTANDING VOTING SECURITIES" shall have the meaning set
         forth in Section 6.8(b)(1) hereof.

                  "PERFORMANCE MEASURES" shall mean the criteria and objectives,
         established by the Committee, which shall be satisfied or met (i) as a
         condition to the exercisability of all or a portion of an option or
         SAR, (ii) as a condition to the grant of a Stock Award or (iii) during
         the applicable Restriction Period or Performance Period as a condition
         to the holder's receipt, in the case of a Restricted Stock Award, of
         the shares of Common Stock subject to such award, or, in the case of a
         Performance Share Award, of the shares of Common Stock subject to such
         award and/or of payment with respect to such award. In the sole
         discretion of the Committee, the Committee may amend or adjust the
         Performance Measures or other terms and conditions of an outstanding
         award in recognition of unusual or nonrecurring events affecting the
         Company or its financial statements or changes in law or accounting
         principles. Such criteria and objectives may include one or more of the
         following: the attainment by a share of Common Stock of a specified
         Fair Market Value for a specified period of time, earnings per share,
         return to stockholders (including dividends), operating income,
         operating income margin, return on equity, earnings of the Company,
         revenues, market share, cash flow or cost reduction goals, or any
         combination of the foregoing. If the Committee desires that
         compensation payable pursuant to any award subject to Performance
         Measures be "qualified performance-based compensation" within the
         meaning of Section 162(m) of the Code, the Performance Measures (i)
         shall be established by the Committee no later than 90 days after the
         beginning of the Performance Period or Restriction Period, as
         applicable (or such other time designated by the Internal Revenue
         Service) and (ii) shall satisfy all other applicable requirements
         imposed under Treasury Regulations promulgated under Section 162(m) of
         the Code, including the requirement that such Performance Measures be
         stated in terms of an objective formula or standard.

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                  "PERFORMANCE PERIOD" shall mean any period designated by the
         Committee during which the Performance Measures applicable to a
         Performance Share Award shall be measured.

                  "PERFORMANCE SHARE" shall mean a right, contingent upon the
         attainment of specified Performance Measures within a specified
         Performance Period, to receive one share of Common Stock, which may be
         Restricted Stock, or in lieu of all or a portion thereof, the Fair
         Market Value of such Performance Share in cash.

                  "PERFORMANCE SHARE AWARD" shall mean an award of Performance
         Shares under this Plan.

                  "PERMANENT AND TOTAL DISABILITY" shall have the meaning set
         forth in Section 22(e)(3) of the Code or any successor thereto.

                  "REFERENCE DATE" shall mean the initial date that the Company
         shall be subject to the reporting requirements of Section 13 or 15(d)
         of the Exchange Act.

                  "RESTRICTED STOCK" shall mean shares of Common Stock which are
         subject to a Restriction Period.

                  "RESTRICTED STOCK AWARD" shall mean an award of Restricted
         Stock under this Plan.

                  "RESTRICTION PERIOD" shall mean any period designated by the
         Committee during which the Common Stock subject to a Restricted Stock
         Award may not be sold, transferred, assigned, pledged, hypothecated or
         otherwise encumbered or disposed of, except as provided in this Plan or
         the Agreement relating to such award.

                  "SAR" shall mean a stock appreciation right which may be a
         Free-Standing SAR or a Tandem SAR.

                  "SPIN-OFF" shall mean a pro rata distribution by TSC to its
         stockholders of all of the shares of Common Stock then owned by TSC.

                  "STOCK AWARD" shall mean a Restricted Stock Award or a Bonus
         Stock Award.

                  "SUBSIDIARY" shall have the meaning set forth in Section 1.4.

                  "SUBSTITUTE OPTIONS" shall have the meaning set forth in
         Section 2.4.

                  "TANDEM SAR" shall mean an SAR which is granted in tandem
         with, or by reference to, an option (including a Non-Statutory Stock
         Option granted prior to the date of grant of the SAR), which entitles
         the holder thereof to receive, upon exercise of such SAR and surrender
         for cancellation of all or a portion of such option, shares of Common
         Stock (which may be Restricted Stock), cash or a combination thereof
         with an aggregate value equal to the excess of the Fair Market Value of
         one share of Common Stock on the date of exercise over the base price
         of such SAR, multiplied by the number of shares of Common Stock subject
         to such option, or portion thereof, which is surrendered.

                  "TAX DATE" shall have the meaning set forth in Section 6.5.

                  "TEN PERCENT HOLDER" shall have the meaning set forth in
         Section 2.1(a).

                  "TSC" shall mean Technology Solutions Company, a Delaware
         corporation, and its successors.

                  "TSC OPTIONS" shall have the meaning set forth in Section 2.4.

                  1.3 ADMINISTRATION. This Plan shall be administered by the
         Committee, pursuant to and subject to the terms of the Board's
         designation thereof and delegation thereto in accordance with Section
         1.2 hereof. Notwithstanding any such Committee designation, the Board
         retains the right to assume full authority to administer the Plan in
         all respects hereunder. Any one or a combination of the following
         awards may be made under this Plan to eligible persons: (i) options to
         purchase shares of Common Stock in the form of Incentive Stock Options
         or Non-Statutory

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         Stock Options, (ii) SARs in the form of Tandem SARs or Free-Standing
         SARS, (iii) Stock Awards in the form of Restricted Stock or Bonus Stock
         and (iv) Performance Shares. The Board or, if applicable, the Committee
         shall, subject to the terms of this Plan, select eligible persons for
         participation in this Plan and determine the form, amount and timing of
         each award to such persons and, if applicable, the number of shares of
         Common Stock, the number of SARs and the number of Performance Shares
         subject to such an award, the exercise price or base price associated
         with the award, the time and conditions of exercise or settlement of
         the award and all other terms and conditions of the award, including,
         without limitation, the form of the Agreement evidencing the award. The
         Board or, if applicable, the Committee may, in its sole discretion and
         for any reason at any time, subject to the requirements imposed under
         Section 162(m) of the Code and regulations promulgated thereunder in
         the case of an award intended to be qualified performance-based
         compensation, take action such that (i) any or all outstanding options
         and SARs shall become exercisable in part or in full, (ii) all or a
         portion of the Restriction Period applicable to any outstanding
         Restricted Stock Award shall lapse, (iii) all or a portion of the
         Performance Period applicable to any outstanding Performance Share
         Award shall lapse and (iv) the Performance Measures applicable to any
         outstanding Restricted Stock Award (if any) and to any outstanding
         Performance Share Award shall be deemed to be satisfied at the maximum
         or any other level. The Board or, if applicable, the Committee shall,
         subject to the terms of this Plan, interpret this Plan and the
         application thereof, establish rules and regulations it deems necessary
         or desirable for the administration of this Plan and may impose,
         incidental to the grant of an award, conditions with respect to the
         award, such as limiting competitive employment or other activities. All
         such interpretations, rules, regulations and conditions shall be final,
         binding and conclusive.

                  1.4 ELIGIBILITY. Participants in this Plan shall consist of
         such directors, officers, other key employees, consultants, independent
         contractors and agents of the Company and its subsidiaries
         (individually a "Subsidiary" and collectively the "Subsidiaries") and,
         prior to the Spin-Off, directors, officers and other key employees of
         TSC and its subsidiaries, as the Committee in its sole discretion may
         select from time to time and such other persons receiving Substitute
         Options. For purposes of this Plan, references to employment shall also
         mean service as a director or pursuant to an agency or independent
         contractor relationship, and references to employment by the Company
         shall also mean employment by a Subsidiary or such other employer
         designated in the Agreement evidencing the award. Notwithstanding the
         preceding sentence, in the case of (i) options granted hereunder prior
         to the Reference Date and (ii) Substitute Options, references to
         employment with the Company shall include all employment with TSC or
         any of its subsidiaries. The Committee's selection of a person to
         participate in this Plan at any time shall not require the Committee to
         select such person to participate in this Plan at any other time.
         Without limiting their eligibility for discretionary awards under the
         Plan, as described above, Non-Employee Directors of the Company shall
         be eligible to participate in this Plan in accordance with Section V.
         Notwithstanding anything contained herein to the contrary, no person
         other than an employee of the Company or a Subsidiary may be granted an
         Incentive Stock Option hereunder.

                  1.5 SHARES AVAILABLE. Subject to adjustment as provided in
         Section 6.7, the total number of shares of Common Stock initially
         available for all grants of awards over the term of the Plan, other
         than Substitute Options, shall be 5,340,000. As of the first day of
         each fiscal year of the Company beginning on or after January 1, 2000,
         the total number of shares of Common Stock available for all grants
         under this Plan, other than Incentive Stock Options, shall
         automatically increase by an amount equal to five percent (5%) of the
         number of shares of Common Stock then outstanding. To the extent that
         shares of Common Stock subject to an outstanding option granted
         hereunder (except to the extent shares of Common Stock are issued or
         delivered by the Company in connection with the exercise of a Tandem
         SAR), Free-Standing SAR Stock Award or Performance Share are not issued
         or delivered by reason of the expiration, termination, cancellation or
         forfeiture of such award or by reason of the delivery or withholding of
         shares of Common Stock to pay all or a portion of the exercise price of
         an award, if any, or to satisfy all or a portion of the tax withholding
         obligations relating to an award, then such shares of Common Stock
         shall again be available under this Plan.

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                  Shares of Common Stock shall be made available from authorized
         and unissued shares of Common Stock, or authorized and issued shares of
         Common Stock reacquired and held as treasury shares or otherwise or a
         combination thereof.

                  To the extent required by Section 162(m) of the Code and the
         rules and regulations thereunder, the maximum number of shares of
         Common Stock with respect to which options or SARS, Stock Awards or
         Performance Share Awards or a combination thereof may be granted to any
         person during (i) the 1999 fiscal year shall be 750,000 and (ii) any
         other fiscal year of the Company shall be 300,000, subject to
         adjustment as provided in Section 6.7.

                 II. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

                  2.1 STOCK OPTIONS. The Committee may, in its discretion, grant
         options to purchase shares of Common Stock to such eligible persons as
         may be selected by the Committee. Each option, or portion thereof, that
         is granted to a person other than an employee of the Company or a
         Subsidiary or that is otherwise not an Incentive Stock Option, shall be
         a Non-Statutory Stock Option. Each Incentive Stock Option shall be
         granted within ten years of the effective date of this Plan. To the
         extent that the aggregate Fair Market Value (determined as of the date
         of grant) of shares of Common Stock with respect to which options
         designated as Incentive Stock Options are exercisable for the first
         time by a participant during any calendar year (under this Plan or any
         other plan of the Company, or any parent or subsidiary as defined in
         Section 424 of the Code) exceeds the amount (currently $100,000)
         established by the Code, such options shall constitute Non-Statutory
         Stock Options.

                  Options shall be subject to the following terms and conditions
         and shall contain such additional terms and conditions, not
         inconsistent with the terms of this Plan, as the Committee shall deem
         advisable:

                  (a) Number of Shares and Purchase Price. The number of shares
         of Common Stock subject to an option and the purchase price per share
         of Common Stock purchasable upon exercise of the option shall be
         determined by the Committee; provided, however, that the purchase price
         per share of Common Stock purchasable upon exercise of an Incentive
         Stock Option shall not be less than 100% of the Fair Market Value of a
         share of Common Stock on the date of grant of such option; provided
         further, that if an Incentive Stock Option shall be granted to any
         person who, at the time such option is granted, owns capital stock
         possessing more than ten percent of the total combined voting power of
         all classes of capital stock of the Company (or of any parent or
         subsidiary) (a "Ten Percent Holder"), the purchase price per share of
         Common Stock shall be the price (currently 110% of Fair Market Value)
         required by the Code in order to constitute an Incentive Stock Option.

                  (b) Option Period and Exercisability. The period during which
         an option may be exercised shall be determined by the Committee;
         provided, however, that no Incentive Stock Option shall be exercised
         later than ten years after its date of grant; provided further, that if
         an Incentive Stock Option shall be granted to a Ten Percent Holder,
         such option shall not be exercised later than five years after its date
         of grant. The Committee may, in its discretion, establish Performance
         Measures which shall be satisfied or met as a condition to the grant of
         an option or to the exercisability of all or a portion of an option.
         The Committee shall determine whether an option shall become
         exercisable in cumulative or non-cumulative installments and in part or
         in full at any time. An exercisable option, or portion thereof, may be
         exercised only with respect to whole shares of Common Stock.

                  (c) Method of Exercise. An option may be exercised (i) by
         giving written notice to the Company specifying the number of whole
         shares of Common Stock to be purchased and accompanied by payment
         therefor in full (or arrangement made for such payment to the Company's
         satisfaction) either (A) in cash, (B) by delivery of Mature Shares
         having an aggregate Fair Market Value, determined as of the date of
         exercise, equal to the aggregate purchase price

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         payable by reason of such exercise, (C) in cash by a broker-dealer
         acceptable to the Company to whom the optionee has submitted an
         irrevocable notice of exercise or (D) a combination of (A) and (B), in
         each case to the extent set forth in the Agreement relating to the
         option, (ii) if applicable, by surrendering to the Company any Tandem
         SARs which are cancelled by reason of the exercise of the option and
         (iii) by executing such documents as the Company may reasonably
         request. The Company shall have sole discretion to disapprove of an
         election pursuant to any of clauses (B)-(D) and in the case of an
         optionee who is subject to Section 16 of the Exchange Act, the Company
         may require that the method of making such payment be in compliance
         with Section 16 and the rules and regulations thereunder. Any fraction
         of a share of Common Stock which would be required to pay such purchase
         price shall be disregarded and the remaining amount due shall be paid
         in cash by the optionee. No certificate representing Common Stock shall
         be delivered until the full purchase price therefor has been paid (or
         arrangement made for such payment to the Company's satisfaction).

                  2.2 STOCK APPRECIATION RIGHTS. The Committee may, in its
         discretion, grant SARs to such eligible persons as may be selected by
         the Committee. The Agreement relating to an SAR shall specify whether
         the SAR is a Tandem SAR or a Free-Standing SAR.

                  SARs shall be subject to the following terms and conditions
         and shall contain such additional terms and conditions, not
         inconsistent with the terms of this Plan, as the Committee shall deem
         advisable:

                  (a) Number of SARs and Base Price. The number of SARs subject
         to an award shall be determined by the Committee. Any Tandem SAR
         related to an Incentive Stock Option shall be granted at the same time
         that such Incentive Stock Option is granted. The base price of a Tandem
         SAR shall be the purchase price per share of Common Stock of the
         related option. The base price of a Free-Standing SAR shall be
         determined by the Committee.

                  (b) Exercise Period and Exercisability. The Agreement relating
         to an award of SARs shall specify whether such award may be settled in
         shares of Common Stock (including shares of Restricted Stock) or cash
         or a combination thereof. The period for the exercise of an SAR shall
         be determined by the Committee; provided, however, that no Tandem SAR
         shall be exercised later than the expiration, cancellation, forfeiture
         or other termination of the related option. The Committee may, in its
         discretion, establish Performance Measures which shall be satisfied or
         met as a condition to the grant of an SAR or to the exercisability of
         all or a portion of an SAR. The Committee shall determine whether an
         SAR may be exercised in cumulative or non-cumulative installments and
         in part or in full at any time. An exercisable SAR, or portion thereof,
         may be exercised, in the case of a Tandem SAR, only with respect to
         whole shares of Common Stock and, in the case of a Free-Standing SAR,
         only with respect to a whole number of SARs. If an SAR is exercised for
         shares of Restricted Stock, a certificate or certificates representing
         such Restricted Stock shall be issued in accordance with Section 3.2(c)
         and the holder of such Restricted Stock shall have such rights of a
         stockholder of the Company as determined pursuant to Section 3.2(d).
         Prior to the exercise of an SAR for shares of Common Stock, including
         Restricted Stock, the holder of such SAR shall have no rights as a
         stockholder of the Company with respect to the shares of Common Stock
         subject to such SAR and shall have rights as a stockholder of the
         Company in accordance with Section 6.10.

                  (c) Method of Exercise. A Tandem SAR may be exercised (i) by
         giving written notice to the Company specifying the number of whole
         SARs which are being exercised, (ii) by surrendering to the Company any
         options which are cancelled by reason of the exercise of the Tandem SAR
         and (iii) by executing such documents as the Company may reasonably
         request. A Free-Standing SAR may be exercised (i) by giving written
         notice to the Company specifying the whole number of SARs which are
         being exercised and (ii) by executing such documents as the Company may
         reasonably request.

                  2.3 TERMINATION OF EMPLOYMENT OR SERVICE. Subject to Section
         1.4, all of the terms relating to the exercise, cancellation or other
         disposition of an option or SAR upon a termination of employment with
         or service to the Company of the holder of such option or SAR, as

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         the case may be, whether by reason of disability, retirement, death or
         other termination, shall be determined by the Committee. Such
         determination shall be made at the time of the grant of such option or
         SAR, as the case may be, and shall be specified in the Agreement
         relating to such option or SAR.

                  2.4 SUBSTITUTE AWARDS. In the event of a Spin-Off, the
         Committee shall be authorized to grant substitute options ("Substitute
         Options") to purchase Common Stock, in accordance with the terms
         hereof, to holders of options to acquire common stock of TSC ("TSC
         Options"). Such Substitute Options shall not be subject to the limit on
         the aggregate number of shares of Common Stock available for grants of
         awards under the Plan set forth in Section 1.5. The number of shares of
         Common Stock subject to Substitute Options shall be determined as
         follows:

                  (a) eLoyalty Employees and Directors. A Substitute Option
         shall be granted to each holder of a TSC Option who, immediately after
         the Spin-Off, is an employee or director of the Company (but who is not
         also a director of TSC). The number of shares of Common Stock subject
         to such Substitute Option shall be determined by multiplying the number
         of shares subject to the TSC Option to which such Substitute Option
         relates by a ratio, the numerator of which is the trading price of a
         share of TSC common stock, traded "regular way," and the denominator of
         which is the trading price of a share of Common Stock, traded on a
         "when-issued" basis, in each case over a fixed period of time
         determined by the Committee on or around the record date of the
         Spin-Off.

                  (b) Other TSC Option Holders. A Substitute Option shall be
         granted to each holder of a nonqualified TSC Option granted prior to
         June 22, 1999 who, immediately after the Spin-Off, is either (i) an
         employee or director of TSC or (ii) an employee or director of neither
         TSC nor the Company. The number of shares of Common Stock subject to
         such Substitute Option shall equal the number of shares of Common Stock
         that would be distributed in the Spin-Off with respect to a number of
         shares of TSC common stock equal to the number of shares subject to the
         TSC Option to which such Substitute Option relates immediately prior to
         the Spin-Off.

                  The Committee shall determine the exercise price of each
         Substitute Option in a manner that preserves the economic value of the
         TSC Option to which such Substitute Option relates. The terms and
         conditions of each Substitute Option, including, without limitation,
         the expiration date of the option, the time or times when, and the
         manner in which, such Substitute Option shall be exercisable, the
         duration of the exercise period, the method of exercise, settlement and
         payment, and, subject to Section 1.4, the rules in the event of
         termination of employment, shall be the same as those of the TSC Option
         to which the Substitute Option relates.

                                III. STOCK AWARDS

                  3.1 STOCK AWARDS. The Committee may, in its discretion, grant
         Stock Awards to such eligible persons as may be selected by the
         Committee. The Agreement relating to a Stock Award shall specify
         whether the Stock Award is a Restricted Stock Award or Bonus Stock
         Award.

                  3.2 TERMS OF STOCK AWARDS. Stock Awards shall be subject to
         the following terms and conditions and shall contain such additional
         terms and conditions, not inconsistent with the terms of this Plan, as
         the Committee shall deem advisable.

                  (a) Number of Shares and Other Terms. The number of shares of
         Common Stock subject to a Restricted Stock Award or Bonus Stock Award
         and the Performance Measures (if any) and Restriction Period applicable
         to a Restricted Stock Award shall be determined by the Committee.

                  (b) Vesting and Forfeiture. The Agreement relating to a
         Restricted Stock Award shall provide, in the manner determined by the
         Committee, in its discretion, and subject to the provisions of this
         Plan, for the vesting of the shares of Common Stock subject to such
         award (i) if

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         specified Performance Measures are satisfied or met during the
         specified Restriction Period or (ii) if the holder of such award
         remains continuously in the employment of or service to the Company
         during the specified Restriction Period and for the forfeiture of the
         shares of Common Stock subject to such award (x) if specified
         Performance Measures are not satisfied or met during the specified
         Restriction Period or (y) if the holder of such award does not remain
         continuously in the employment of or service to the Company during the
         specified Restriction Period.

                  Bonus Stock Awards shall not be subject to any Performance
         Measures or Restriction Periods.

                  (c) Share Certificates. During the Restriction Period, a
         certificate or certificates representing a Restricted Stock Award may
         be registered in the holder's name and may bear a legend, in addition
         to any legend which may be required pursuant to Section 6.6, indicating
         that the ownership of the shares of Common Stock represented by such
         certificate is subject to the restrictions, terms and conditions of
         this Plan and the Agreement relating to the Restricted Stock Award. All
         such certificates shall be deposited with the Company, together with
         stock powers or other instruments of assignment (including a power of
         attorney), each endorsed in blank with a guarantee of signature if
         deemed necessary or appropriate by the Company, which would permit
         transfer to the Company of all or a portion of the shares of Common
         Stock subject to the Restricted Stock Award in the event such award is
         forfeited in whole or in part. Upon termination of any applicable
         Restriction Period (and the satisfaction or attainment of applicable
         Performance Measures), or upon the grant of a Bonus Stock Award, in
         each case subject to the Company's right to require payment of any
         taxes in accordance with Section 6.5, a certificate or certificates
         evidencing ownership of the requisite number of shares of Common Stock
         shall be delivered to the holder of such award.

                  (d) Rights with Respect to Restricted Stock Awards. Unless
         otherwise set forth in the Agreement relating to a Restricted Stock
         Award, and subject to the terms and conditions of a Restricted Stock
         Award, the holder of such award shall have all rights as a stockholder
         of the Company, including, but not limited to, voting rights, the right
         to receive dividends and the right to participate in any capital
         adjustment applicable to all holders of Common Stock; provided,
         however, that a distribution with respect to shares of Common Stock,
         other than a regular cash dividend, shall be deposited with the Company
         and shall be subject to the same restrictions as the shares of Common
         Stock with respect to which such distribution was made.

                  (e) Awards to Certain Executive Officers. Notwithstanding any
         other provision of this Article III, and only to the extent necessary
         to ensure the deductibility of the award to the Company, the Fair
         Market Value of the number of shares of Common Stock subject to a Stock
         Award granted to a "covered employee" within the meaning of Section
         162(m) of the Code shall not exceed $250,000 (i) at the time of grant
         in the case of a Stock Award granted upon the attainment of Performance
         Measures or (ii) in the case of a Restricted Stock Award with
         Performance Measures which shall be satisfied or met as a condition to
         the holder's receipt of the shares of Common Stock subject to such
         award, on the earlier of (x) the date on which the Performance Measures
         are satisfied or met and (y) the date the holder makes an election
         under Section 83(b) of the Code.

                  3.3 TERMINATION OF EMPLOYMENT OR SERVICE. All of the terms
         relating to the satisfaction of Performance Measures and the
         termination of the Restriction Period relating to a Restricted Stock
         Award, or any cancellation or forfeiture of such Restricted Stock Award
         upon a termination of employment with or service to the Company of the
         holder of such Restricted Stock Award, whether by reason of disability,
         retirement, death or other termination, shall be set forth in the
         Agreement relating to such Restricted Stock Award.

                                       8
<PAGE>   9

                          IV. PERFORMANCE SHARE AWARDS

                  4.1 PERFORMANCE SHARE AWARDS. The Committee may, in its
         discretion, grant Performance Share Awards to such eligible persons as
         may be selected by the Committee.

                  4.2 TERMS OF PERFORMANCE SHARE AWARDS. Performance Share
         Awards shall be subject to the following terms and conditions and shall
         contain such additional terms and conditions, not inconsistent with the
         terms of this Plan, as the Committee shall deem advisable.

                  (a) Number of Performance Shares and Performance Measures. The
         number of Performance Shares subject to any award and the Performance
         Measures and Performance Period applicable to such award shall be
         determined by the Committee.

                  (b) Vesting and Forfeiture. The Agreement relating to a
         Performance Share Award shall provide, in the manner determined by the
         Committee, in its discretion, and subject to the provisions of this
         Plan, for the vesting of such award, if specified Performance Measures
         are satisfied or met during the specified Performance Period, and for
         the forfeiture of such award, if specified Performance Measures are not
         satisfied or met during the specified Performance Period.

                  (c) Settlement of Vested Performance Share Awards. The
         Agreement relating to a Performance Share Award (i) shall specify
         whether such award may be settled in shares of Common Stock (including
         shares of Restricted Stock) or cash or a combination thereof and (ii)
         may specify whether the holder thereof shall be entitled to receive, on
         a current or deferred basis, dividend equivalents, and, if determined
         by the Committee, interest on or the deemed reinvestment of any
         deferred dividend equivalents, with respect to the number of shares of
         Common Stock subject to such award. If a Performance Share Award is
         settled in shares of Restricted Stock, a certificate or certificates
         representing such Restricted Stock shall be issued in accordance with
         Section 3.2(c) and the holder of such Restricted Stock shall have such
         rights of a stockholder of the Company as determined pursuant to
         Section 3.2(d). Prior to the settlement of a Performance Share Award in
         shares of Common Stock, including Restricted Stock, the holder of such
         award shall have no rights as a stockholder of the Company with respect
         to the shares of Common Stock subject to such award and shall have
         rights as a stockholder of the Company in accordance with Section 6.10.

                  4.3 TERMINATION OF EMPLOYMENT OR SERVICE. All of the terms
         relating to the satisfaction of Performance Measures and the
         termination of the Performance Period relating to a Performance Share
         Award, or any cancellation or forfeiture of such Performance Share
         Award upon a termination of employment with the Company of the holder
         of such Performance Share Award, whether by reason of disability,
         retirement, death or other termination, shall be set forth in the
         Agreement relating to such Performance Share Award.

                V. PROVISIONS RELATING TO NON-EMPLOYEE DIRECTORS

                  5.1 ELIGIBILITY. Each Non-Employee Director shall be granted
         options to purchase shares of Common Stock in accordance with this
         Article V. All options granted under this Article V ("Automatic
         Non-Employee Director's Options") shall constitute Non-Statutory Stock
         Options. Notwithstanding anything to the contrary herein, any
         Non-Employee Director who was granted an option pursuant to Section 2.1
         hereof on or around July 1, 1999 shall not be eligible to receive
         Automatic Non-Employee Director's Options hereunder.

                  5.2 GRANTS OF STOCK OPTIONS. Except as provided otherwise in
         Section 5.1, each Non-Employee Director shall be granted Automatic
         Non-Employee Director's Options as follows:

                  (a) Automatic Initial Grant of Options. Each person who
         becomes a Non-Employee Director shall be automatically awarded and
         issued on the date of his or her first election to the Board, without
         further action of the Board or the Committee, an Automatic Non-Employee
         Director's Option to purchase 50,000 shares of Common Stock. An option
         described in this Section 5.2(a) shall hereinafter be referred to as an
         "Initial Grant."

                                       9
<PAGE>   10

                  (b) Automatic Annual Grant of Options. On the day immediately
         following the date of each annual meeting of stockholders of the
         Company (the "Current Annual Meeting"), beginning with the annual
         meeting that occurs in 2000, each Non-Employee Director (other than a
         Non-Employee Director who received an Initial Grant at the Current
         Annual Meeting) shall be automatically awarded and issued on such date,
         without further action of the Board or the Committee, an Automatic
         Non-Employee Director's Option to purchase 12,000 shares of Common
         Stock (an "Annual Grant"); provided that in the case of an Annual Grant
         to a Non-Employee Director who received an Initial Grant within the
         twelve-month period ending on the date of the Current Annual Meeting,
         the number of shares subject to such Annual Grant shall be 12,000
         multiplied by a fraction, the numerator of which is the number of days
         in the period beginning on the day after the date of such Initial Grant
         and ending on the day of the Current Annual Meeting, and the
         denominator of which is 365.

                  (c) Option Price. The purchase price per share of Common Stock
         subject to each Automatic Non-Employee Director's Option shall be 100
         percent of the Fair Market Value of a share of Common Stock on the date
         such option is automatically granted.

                  (d) Exercisability. Except as otherwise provided herein, each
         Automatic Non-Employee Director's Option shall not be exercisable until
         the last day of the calendar month following the calendar month in
         which such option is granted (the "Initial Date of Exercisability").
         Each Initial Grant shall become exercisable incrementally on its
         Initial Date of Exercisability and on the last day of each of the next
         47 calendar months following the Initial Date of Exercisability with
         respect to 1/48 of the shares of Common Stock subject to the Initial
         Grant on the date of its grant. Each Annual Grant shall become
         exercisable incrementally on its Initial Date of Exercisability and on
         the last day of each of the next 11 calendar months following the
         Initial Date of Exercisability with respect to one-twelfth of the
         shares of Common Stock subject to such Annual Grant on the date of its
         grant. An exercisable option, or portion thereof, may be exercised in
         whole or in part only with respect to whole shares of Common Stock.
         Automatic Non-Employee Director's Options shall be exercisable in
         accordance with Section 2.1(c).

                  (e) Options Granted Prior to Reference Date. Notwithstanding
         Section 5.2(d), no option granted prior to the Reference Date pursuant
         to this Article V shall be exercisable until the Reference Date, at
         which time such option shall become exercisable for the same number of
         shares for which such option would have been exercisable under Section
         5.2(d) as of the Reference Date. Such option shall thereafter continue
         to become exercisable in accordance with Section 5.2(d). The number of
         shares of Common Stock subject to each such option, and the exercise
         price thereof, shall be adjusted in accordance with the Agreement
         setting forth the terms of such option.

                  5.3 OPTION PERIOD AND TERMINATION OF DIRECTORSHIP. (a) Term
         and Termination of Option. The maximum term of each Automatic
         Non-Employee Director's Option shall be the date which is 10 years
         after the date on which it was granted (the "Expiration Date"). Each
         Automatic Non-Employee Director's Option shall terminate, to the extent
         not exercised or earlier terminated pursuant to the terms of this
         Article V, on its Expiration Date. In no event may an Automatic
         Non-Employee Director's Option be exercised, in whole or in part, after
         it terminates.

                  (b) Termination of Directorship Other than by Death,
         Disability or Retirement. If the holder of an Automatic Non-Employee
         Director's Option ceases to be a director of the Company for any reason
         other than death, Disability, or Retirement, the option shall remain
         exercisable with respect to the number of shares subject to such option
         that are exercisable upon the effective date of such holder's ceasing
         to be a director and may thereafter be exercised for a period of five
         years from the effective date of such holder's ceasing to be a director
         or until the Expiration Date, whichever period is shorter, after which
         the Automatic Non-Employee Director's Option shall terminate in its
         entirety.

                  (c) Death. If the holder of an Automatic Non-Employee
         Director's Option ceases to be a director of the Company by reason of
         death, the option shall become exercisable as of the date of death with
         respect to any or all of the shares subject to such option and may
         thereafter be exercised

                                       10
<PAGE>   11

         for a period of one year from the date of death or until the Expiration
         Date, whichever period is shorter, after which the Automatic
         Non-Employee Director's Option shall terminate in its entirety.

                  (d) Disability. If the holder of an Automatic Non-Employee
         Director's Option ceases to be a director of the Company by reason of
         Disability, the option shall become exercisable as of the effective
         date of such holder's ceasing to be a director with respect to any or
         all of the shares subject to such option and may thereafter be
         exercised for a period of five years from the effective date of such
         holder's ceasing to be a director or until the Expiration Date,
         whichever period is shorter, after which the Automatic Non-Employee
         Director's Option shall terminate in its entirety. For purposes of this
         Article V, "Disability" shall mean the inability of an individual to
         fully perform the duties of a director of the Company for a continuous
         period in excess of 360 days, as determined by the Board in its sole
         discretion.

                  (e) Retirement. If the holder of an Automatic Non-Employee
         Director's Option ceases to be a director of the Company by reason of
         retirement after such holder has completed five years of service as a
         director of the Company and is at least 55 years of age ("Retirement"),
         the option shall remain exercisable with respect to the number of
         shares subject to such option that are exercisable upon the effective
         date of such Retirement, and may thereafter be exercised for a period
         of five years from the effective date of such Retirement or until the
         Expiration Date, whichever period is shorter, after which the Automatic
         Non-Employee Director's Option shall terminate in its entirety.

                  (f) Death After Termination of Directorship. If the holder of
         an Automatic Non-Employee Director's Option dies after he or she has
         ceased to be a director of the Company, the option shall be exercisable
         only to the extent that it is exercisable on the date of such holder's
         death and may thereafter be exercised only for that period of time for
         which the option is exercisable immediately prior to the holder's death
         pursuant to Sections 5.3(b) through (e).

                                   VI. GENERAL

                  6.1 EFFECTIVE DATE AND TERM OF PLAN. This Plan was initially
         adopted by the Board of Directors and approved by the stockholders on
         June 22, 1999 (the "Effective Date"). This Plan shall terminate ten
         years after its Effective Date, unless terminated earlier by the Board.
         Termination of this Plan shall not affect the terms or conditions of
         any award granted prior to termination.

                  6.2 AMENDMENTS. The Board may amend this Plan as it shall deem
         advisable, subject to any requirement of stockholder approval required
         by applicable law, rule or regulation, including Section 162(m) and
         Section 422 of the Code; provided, however, that no amendment shall be
         made without stockholder approval if such amendment would (a) increase
         the maximum number of shares of Common Stock available under this Plan
         (subject to Section 6.7), (b) effect any change inconsistent with
         Section 422 of the Code or (c) extend the term of this Plan. No
         amendment may impair the rights of a holder of an outstanding award
         without the consent of such holder.

                  6.3 AGREEMENT. Each award under this Plan shall be evidenced
         by an Agreement setting forth the terms and conditions applicable to
         such award. A copy of such document shall be provided to the recipient,
         and the Committee may, but need not, require that the recipient sign a
         copy of such document. Such document is referred to in the Plan as an
         "Agreement" regardless of whether any recipient signature is required.

                  6.4 NON-TRANSFERABILITY OF AWARDS. Unless otherwise specified
         in the Agreement relating to an award, no award shall be transferable
         other than by will, the laws of descent and distribution or pursuant to
         beneficiary designation procedures approved by the Company. Except to
         the extent permitted by the first sentence of this Section 6.4, or the
         Agreement relating to an award, each award may be exercised or settled
         during the holder's lifetime only by the holder or the holder's legal
         representative or similar person. Except to the extent permitted by the

                                       11
<PAGE>   12
         first sentence of this Section 6.4 or the Agreement relating to an
         award, no award may be sold, transferred, assigned, pledged,
         hypothecated, encumbered or otherwise disposed of (whether by operation
         of law or otherwise) or be subject to execution, attachment or similar
         process. Upon any attempt to so sell, transfer, assign, pledge,
         hypothecate, encumber or otherwise dispose of any such award, other
         than as permitted by the first sentence of this Section 6.4 or the
         Agreement relating to an award, such award and all rights thereunder
         shall immediately become null and void.

                  6.5 TAX WITHHOLDING. The Company shall have the right to
         require, prior to the issuance or delivery of any shares of Common
         Stock or the payment of any cash pursuant to an award made hereunder,
         payment by the holder of such award of any Federal, state, local or
         other taxes which may be required to be withheld or paid in connection
         with such award. An Agreement may provide that (i) the Company shall
         withhold whole shares of Common Stock which would otherwise be
         delivered to a holder, having an aggregate Fair Market Value determined
         as of the date the obligation to withhold or pay taxes arises in
         connection with an award (the "Tax Date"), or withhold an amount of
         cash which would otherwise be payable to a holder, in the minimum
         amount necessary to satisfy any such obligation or (ii) the holder may
         satisfy any such obligation by any of the following means: (A) a cash
         payment to the Company, (B) delivery to the Company of Mature Shares
         having an aggregate Fair Market Value, determined as of the Tax Date,
         equal to the amount necessary to satisfy any such obligation, (C)
         authorizing the Company to withhold whole shares of Common Stock which
         would otherwise be delivered having an aggregate Fair Market Value,
         determined as of the Tax Date, or withhold an amount of cash which
         would otherwise be payable to a holder, equal to the minimum amount
         necessary to satisfy any such obligation, (D) in the case of the
         exercise of any option, a cash payment by a broker-dealer acceptable to
         the Company to whom the optionee has submitted an irrevocable notice of
         exercise or (E) any combination of (A), (B), and (C), in each case to
         the extent set forth in the Agreement relating to the award; provided,
         however, that the Company shall have sole discretion to disapprove of
         an election pursuant to any of clauses (B)-(E) and that in the case of
         a holder who is subject to Section 16 of the Exchange Act, the Company
         may require that the method of satisfying such an obligation be in
         compliance with Section 16 and the rules and regulations thereunder.
         Any fraction of a share of Common Stock which would be required to
         satisfy such an obligation shall be disregarded and the remaining
         amount due shall be paid in cash by the holder.

                  6.6 RESTRICTIONS ON SHARES. Each award made hereunder shall be
         subject to the requirement that if at any time the Company determines
         that the listing, registration or qualification of the shares of Common
         Stock subject to such award upon any securities exchange or under any
         law, or the consent or approval of any governmental body, or the taking
         of any other action is necessary or desirable as a condition of, or in
         connection with, the delivery of shares thereunder, such shares shall
         not be delivered unless such listing, registration, qualification,
         consent, approval or other action shall have been effected or obtained,
         free of any conditions not acceptable to the Company. The Company may
         require that certificates evidencing shares of Common Stock delivered
         pursuant to any award made hereunder bear a legend indicating that the
         sale, transfer or other disposition thereof by the holder is prohibited
         except in compliance with the Securities Act of 1933, as amended, and
         the rules and regulations thereunder.

                  6.7 ADJUSTMENT. In the event of any stock split, stock
         dividend, recapitalization, reorganization, merger, consolidation,
         combination, exchange of shares, liquidation, spin-off or other similar
         change in capitalization or event, or any distribution to holders of
         Common Stock other than a regular cash dividend, the number and class
         of securities available under this Plan, the number and class of
         securities subject to each outstanding option and the purchase price
         per security, the number of securities subject to each option to be
         granted to Non-Employee Directors pursuant to Article V, the terms of
         each outstanding SAR, the number and class of securities subject to
         each outstanding Stock Award, and the terms of each outstanding
         Performance Share Award shall be appropriately adjusted by the
         Committee. The decision of the Committee regarding any such adjustment
         shall be final, binding and conclusive. If any such adjustment would
         result in a fractional security being (a) available under this Plan,
         such fractional security shall be disregarded, or (b) subject to an
         award under this Plan, the Company shall pay the holder

                                       12
<PAGE>   13

         of such award, in connection with the first vesting, exercise or
         settlement of such award in whole or in part occurring after such
         adjustment, an amount in cash determined by multiplying (i) the
         fraction of such security (rounded to the nearest hundredth) by (ii)
         the excess, if any, of (A) the Fair Market Value on the vesting,
         exercise or settlement date over (B) the exercise or base price, if
         any, of such award.

                  6.8 CHANGE IN CONTROL.

                  (a) (1) Notwithstanding any provision in this Plan or any
         Agreement, in the event of a Change in Control, the Board may, but
         shall not be required to, make such adjustments to outstanding awards
         hereunder as it deems appropriate, including, without limitation,
         electing that each outstanding award shall be surrendered to the
         Company by the holder thereof, and that each such award shall
         immediately be cancelled by the Company, and that the holder shall
         receive, within a specified period of time from the occurrence of the
         Change in Control, a cash payment from the Company in an amount equal
         to:

                  (i) in the case of an option, the number of shares of Common
         Stock then subject to such option, multiplied by the excess, if any, of
         the greater of (A) the highest per share price offered to stockholders
         of the Company in any transaction whereby the Change in Control takes
         place or (B) the Fair Market Value of a share of Common Stock on the
         date of occurrence of the Change in Control, over the purchase price
         per share of Common Stock subject to the option,

                  (ii) in the case of a Free-Standing SAR, the number of shares
         of Common Stock then subject to such SAR, multiplied by the excess, if
         any, of the greater of (A) the highest per share price offered to
         stockholders of the Company in any transaction whereby the Change in
         Control takes place or (B) the Fair Market Value of a share of Common
         Stock on the date of occurrence of the Change in Control, over the base
         price of the SAR, and

                  (iii) in the case of a Restricted Stock Award or Performance
         Award, the number of shares of Common Stock or the number of
         Performance Shares, as the case may be, then subject to such award,
         multiplied by the greater of (A) the highest per share price offered to
         stockholders of the Company in any transaction whereby the Change in
         the Control takes place or (B) the Fair Market Value of a share of
         Common Stock on the date of occurrence of the Change in Control.

                  In the event of a Change in Control in which options are
         cancelled, each Tandem SAR related to a cancelled option shall be
         surrendered by the holder thereof and shall be cancelled simultaneously
         with the cancellation of the related option. The Company may, but is
         not required to, cooperate with any person who is subject to Section 16
         of the Exchange Act to assure that any cash payment in accordance with
         the foregoing to such person is made in compliance with Section 16 and
         the rules and regulations thereunder.

                  In the event of a Change in Control, the Board may, but shall
         not be required to, substitute for each share of Common Stock available
         under this Plan, whether or not then subject to an outstanding award,
         the number and class of shares into which each outstanding share of
         Common Stock shall be converted pursuant to such Change in Control. In
         the event of any such substitution, the purchase price per share in the
         case of an option and the base price in the case of an SAR shall be
         appropriately adjusted by the Committee.

                  (b) Prior to the consummation of a Spin-Off, "Change in
         Control" shall mean any event, other than a Spin-Off, after which TSC
         is the beneficial owner of less than a majority of the Outstanding
         Voting Securities. After the consummation of a Spin-Off, "Change in
         Control" shall mean one or more of the following events:

                  (1) the acquisition by any individual, entity or group (a
         "Person"), including any "person" within the meaning of Section
         13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial ownership
         within the meaning of Rule 13d-3 promulgated under the Exchange Act, of
         25% or more of either (i) the then outstanding shares of common stock
         of the Company (the "Outstanding Common Stock") or (ii) the combined
         voting power of the then outstanding securities of the Company entitled
         to vote generally in the election of directors (the "Outstanding Voting

                                       13
<PAGE>   14

         Securities"); excluding, however, the following: (A) any acquisition
         directly from the Company (excluding any acquisition resulting from the
         exercise of an exercise, conversion or exchange privilege unless the
         security being so exercised, converted or exchanged was acquired
         directly from the Company), (B) any acquisition by the Company, (C) any
         acquisition by an employee benefit plan (or related trust) sponsored or
         maintained by the Company or any corporation controlled by the Company
         or (D) any acquisition by a corporation pursuant to a transaction which
         complies with clauses (i), (ii) and (iii) of subsection (3) of this
         Section 6.8(b); provided further, that for purposes of clause (B), if
         any Person (other than the Company or any employee benefit plan (or
         related trust) sponsored or maintained by the Company or any
         corporation controlled by the Company) shall become the beneficial
         owner of 25% or more of the Outstanding Common Stock or 25% or more of
         the Outstanding Voting Securities by reason of an acquisition by the
         Company, and such Person shall, after such acquisition by the Company,
         become the beneficial owner of any additional shares of the Outstanding
         Common Stock or any additional Outstanding Voting Securities and such
         beneficial ownership is publicly announced, such additional beneficial
         ownership shall constitute a Change in Control;

                  (2) individuals who, as of the date of the Spin-Off constitute
         the Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of such Board; provided that any individual who
         becomes a director of the Company subsequent to the date of the
         Spin-Off whose election, or nomination for election by the Company's
         stockholders, was approved by the vote of at least a majority of the
         directors then comprising the Incumbent Board shall be deemed a member
         of the Incumbent Board; and provided further, that any individual who
         was initially elected as a director of the Company as a result of an
         actual or threatened election contest, as such terms are used in Rule
         14a-11 of Regulation 14A promulgated under the Exchange Act, or any
         other actual or threatened solicitation of proxies or consents by or on
         behalf of any Person other than the Board shall not be deemed a member
         of the Incumbent Board;

                  (3) the consummation of a reorganization, merger or
         consolidation of the Company or sale or other disposition of all or
         substantially all of the assets of the Company (a "Corporate
         Transaction"); excluding, however, a Corporate Transaction pursuant to
         which (i) all or substantially all of the individuals or entities who
         are the beneficial owners, respectively, of the Outstanding Common
         Stock and the Outstanding Voting Securities immediately prior to such
         Corporate Transaction will beneficially own, directly or indirectly,
         more than 60% of, respectively, the outstanding shares of common stock,
         and the combined voting power of the outstanding securities of such
         corporation entitled to vote generally in the election of directors, as
         the case may be, of the corporation resulting from such Corporate
         Transaction (including, without limitation, a corporation which as a
         result of such transaction owns the Company or all or substantially all
         of the Company's assets either directly or indirectly) in substantially
         the same proportions relative to each other as their ownership,
         immediately prior to such Corporate Transaction, of the Outstanding
         Common Stock and the Outstanding Voting Securities, as the case may be,
         (ii) no Person (other than: the Company; any employee benefit plan (or
         related trust) sponsored or maintained by the Company or any
         corporation controlled by the Company; the corporation resulting from
         such Corporate Transaction; and any Person which beneficially owned,
         immediately prior to such Corporate Transaction, directly or
         indirectly, 25% or more of the Outstanding Common Stock or the
         Outstanding Voting Securities, as the case may be) will beneficially
         own, directly or indirectly, 25% or more of, respectively, the
         outstanding shares of common stock of the corporation resulting from
         such Corporate Transaction or the combined voting power of the
         outstanding securities of such corporation entitled to vote generally
         in the election of directors and (iii) individuals who were members of
         the Incumbent Board will constitute at least a majority of the members
         of the board of directors of the corporation resulting from such
         Corporate Transaction; or

                  (4) the consummation of a plan of complete liquidation or
         dissolution of the Company.

                  (c) (1) With respect to any optionee who is subject to Section
         16 of the Exchange Act, notwithstanding the exercise period contained
         in any Agreement to which such optionee is a party and notwithstanding
         the expiration date of the term of such option (other than an Incentive
         Stock Option), in the event the Company is involved in a business

                                       14
<PAGE>   15
         combination which is intended to be treated as a pooling of interests
         for financial accounting purposes (a "Pooling Transaction") or pursuant
         to which such optionee receives a substitute option to purchase
         securities of any entity, including an entity directly or indirectly
         acquiring the Company, then each option (or option in substitution
         thereof) held by such optionee shall be exercisable to the extent set
         forth in the Agreement evidencing such option until and including the
         latest of (x) the expiration date of the term of the option, (y) the
         date which is six months and one day after the consummation of such
         business combination and (z) the date which is ten business days after
         the date of expiration of any period during which such optionee may not
         dispose of a security issued in the Pooling Transaction in order for
         the Pooling Transaction to be accounted for as a pooling of interests;
         and

                  (2) With respect to any holder of an SAR (other than an SAR
         which may be settled only for cash) who is subject to Section 16 of the
         Exchange Act, notwithstanding the exercise periods set forth in any
         Agreement to which such holder is a party, and notwithstanding the
         expiration date of the term of such SAR (other than a Tandem SAR which
         is related to an Incentive Stock Option), in the event the Company is
         involved in a Pooling Transaction or pursuant to which such holder
         receives a substitute SAR relating to any entity, including an entity
         directly or indirectly acquiring the Company, then each such SAR (or
         SAR in substitution thereof) held by such holder shall be exercisable
         to the extent set forth in the Agreement evidencing such SAR until and
         including the latest of (x) the expiration date of the term of such
         SAR, (y) the date which is six months and one day after the
         consummation of such business combination and (z) the date which is ten
         business days after the date of expiration of any period during which
         such holder many not dispose of a security issued in the Pooling
         Transaction in order for the Pooling Transaction to be accounted for as
         a pooling of interests.

                  6.9 NO RIGHT OF PARTICIPATION OR EMPLOYMENT. No person shall
         have any right to participate in this Plan. Neither this Plan nor any
         award made hereunder shall confer upon any person any right to
         continued employment by the Company, TSC, or any of their subsidiaries
         or affiliates or affect in any manner the right of the Company, TSC, or
         any of their subsidiaries or affiliates to terminate the employment of
         any person at any time without liability hereunder.

                  6.10 RIGHTS AS STOCKHOLDER. No person shall have any right as
         a stockholder of the Company with respect to any shares of Common Stock
         or other equity security of the Company which is subject to an award
         hereunder unless and until such person becomes a stockholder of record
         with respect to such shares of Common Stock or equity security.

                  6.11 GOVERNING LAW. This Plan, each award hereunder and the
         related Agreement, and all determinations made and actions taken
         pursuant thereto, to the extent not otherwise governed by the Code or
         the laws of the United States, shall be governed by the laws of the
         State of Delaware and construed in accordance therewith without giving
         effect to the principles of conflicts of laws.

                                       15<PAGE>   1
                                                                   Exhibit 10.15

                              eLOYALTY CORPORATION
                            2000 STOCK INCENTIVE PLAN
                (AS AMENDED AND RESTATED AS OF FEBRUARY 28, 2001)

                                 I. INTRODUCTION

     1.1 PURPOSES. The purposes of the 2000 Stock Incentive Plan (the "Plan") of
eLoyalty Corporation, a Delaware corporation (the "Company"), are to (i) align
the interests of the Company's stockholders and the recipients of awards under
this Plan by increasing the proprietary interest of such recipients in the
Company's growth and success, subject to the limitations set forth in Section
1.5 hereof, (ii) advance the interests of the Company by attracting and
retaining employees of, and consultants and independent contractors performing
services for, the Company or any of its Subsidiaries (as defined below) and
(iii) motivate such persons to act in the long-term best interests of the
Company's stockholders.

     1.2 CERTAIN DEFINITIONS.

     "AGREEMENT" means the written agreement evidencing an award hereunder
between the Company and the recipient of such award.

     "BOARD" means the Board of Directors of the Company.

     "CHANGE IN CONTROL" has the meaning set forth in Section 3.8(b).

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

     "COMMITTEE" means one or more committees of the Board that have been
designated by the Board to carry out certain respective actions under this Plan
on behalf of the Board, subject to the limitations provided by the Board in any
such designations; provided, however, that where necessary for compliance with
Section 16 of the Exchange Act, and the rules and regulations promulgated
thereunder, or where the Board deems it to be advisable for any reason
whatsoever, such committee will consist of two or more members of the Board,
each of whom shall be a "Non-Employee Director" within the meaning of Rule 16b-3
under the Exchange Act. Notwithstanding any such committee designations, the
Board retains the right to assume full authority to administer the Plan in all
respects hereunder pursuant to Section 1.3 hereof.

     "COMMON STOCK" means the common stock, $.01 par value, of the Company.

     "COMPANY" has the meaning set forth in Section 1.1 hereof.

     "CORPORATE TRANSACTION" has the meaning set forth in Section 3.8(b)(3)
hereof.

     "EFFECTIVE DATE" has the meaning set forth in Section 3.1 hereof.

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

     "FAIR MARKET VALUE" means the closing transaction price of a share of
Common Stock as reported by The Nasdaq Stock Market or the principal national
securities exchange on which the Common Stock is then traded, on the date as of
which such value is being determined, or, if there are no reported transactions
for such date, on the next preceding date for which transactions were reported;
provided, however, that if the Fair Market Value for any date cannot be so
determined, Fair Market Value will be determined by the Committee by whatever
means or method as the Committee, in the good faith exercise of its discretion,
shall at such time deem appropriate.

     "INCUMBENT BOARD" has the meaning set forth in Section 3.8(b)(2) hereof.

     "MATURE SHARES" mean shares of Common Stock for which the holder thereof
has good title, free and clear of all liens and encumbrances, and which such
holder has held for at least six months.

     "NON-EMPLOYEE DIRECTOR" means any director of the Company who is not an
officer or employee of the Company or any Subsidiary.

<PAGE>   2

     "NON-STATUTORY STOCK OPTION" means a stock option that is not intended to
be an "incentive stock option" pursuant to Section 422 of the Code.

     "OUTSTANDING COMMON STOCK" has the meaning set forth in Section 3.8(b)(1)
hereof.

     "OUTSTANDING VOTING SECURITIES" has the meaning set forth in Section
3.8(b)(1) hereof.

     "PERFORMANCE MEASURES" mean the criteria and objectives, established by the
Committee, which shall be satisfied or met as a condition to the exercisability
of all or a portion of an option. In the discretion of the Committee, and
subject to Section 3.2 hereof, the Committee may amend the Performance Measures
or other terms and conditions of an outstanding award in recognition of unusual
or nonrecurring events affecting the Company or its financial statements or
changes in law or accounting principles. Such criteria and objectives may
include one or more of the following: the attainment by a share of Common Stock
of a specified Fair Market Value for a specified period of time, earnings per
share, return to stockholders (including dividends), operating income, operating
income margin, return on equity, earnings of the Company, revenues, market
share, cash flow or cost reduction goals, or any combination of the foregoing.

     "PERMANENT AND TOTAL DISABILITY" has the meaning set forth in Section
22(e)(3) of the Code or any successor thereto.

     "PERSON" has the meaning set forth in Section 3.8(b)(1) hereof.

     "POOLING TRANSACTION" has the meaning set forth in Section 3.8(c) hereof.

     "SUBSIDIARY" means any of the Company's subsidiaries within the meaning of
Code Section 424(f).

     "TAX DATE" has the meaning set forth in Section 3.5.

     1.3 ADMINISTRATION. This Plan will be administered by the Committee,
pursuant to and subject to the terms of the Board's designation thereof and
delegation thereto in accordance with Section 1.2 hereof. Notwithstanding any
such Committee designation, the Board retains the right to assume full authority
to administer the Plan in all respects hereunder.

     The Board or, if applicable, the Committee has the discretion to select
eligible persons for participation in this Plan, subject to the restrictions on
eligibility contained in Section 1.4 hereof, and determine the timing of each
award to such persons, the number of shares of Common Stock subject to such an
award, commensurate with the authority delegated to the Committee in accordance
with the preceding paragraph and subject to the limitations set forth in Section
1.5 hereof, the exercise price associated with the award, subject to the
limitations set forth in Section 2.1(a) hereof, the time and conditions of
exercise of the award and all other terms and conditions of the award,
including, without limitation, the form of the Agreement evidencing the award.
The Board or, if applicable, the Committee may, in its discretion and for any
reason at any time, take action such that any or all outstanding options under
the Plan will become exercisable in part or in full.

     The Board or, if applicable, the Committee shall, subject to the terms of
this Plan, interpret this Plan and the application thereof, establish rules and
regulations it deems necessary or desirable for the administration of this Plan
and may impose, incidental to the grant of an award, conditions with respect to
the award, such as limiting competitive employment or other activities. All such
interpretations, rules, regulations and conditions will be final, binding and
conclusive.

     1.4 ELIGIBILITY. Participants in this Plan will be limited to employees of,
or consultants and independent contractors performing services for, the Company
or any of its Subsidiaries. Non-Employee Directors are ineligible to participate
in this Plan.

     For purposes of this Plan, references to employment also mean an agency or
independent contractor relationship and references to employment by the Company
also mean employment by a Subsidiary. The selection of a person to participate
in this Plan at any time will not require the selection of such person to
participate in this Plan at any other time.

                                       2
<PAGE>   3

     1.5 SHARES AVAILABLE. Subject to adjustment as provided in Section 3.7, the
total number of shares of Common Stock available for all grants of awards over
the term of the Plan shall be 2,800,000. To the extent that shares of Common
Stock subject to an outstanding option granted hereunder are not issued or
delivered by reason of the expiration, termination, cancellation or forfeiture
of such award or by reason of the delivery or withholding of shares of Common
Stock to pay all or a portion of the exercise price of an award, if any, or to
satisfy all or a portion of the tax withholding obligations relating to an
award, then such shares of Common Stock will again be available under this Plan.

     Shares of Common Stock will be made available from authorized and unissued
shares of Common Stock, or authorized and issued shares of Common Stock
reacquired and held as treasury shares or otherwise or a combination thereof.

     Notwithstanding the foregoing, the maximum percentage of shares of Common
Stock with respect to which awards may be granted under this Plan to officers
and other persons subject to Section 16 of the Exchange Act will be 20% of the
total number of shares available for awards under this Plan, as adjusted
pursuant to Section 3.7.

                                II. STOCK OPTIONS

     2.1 STOCK OPTIONS. The Committee may, in its discretion and commensurate
with the authority delegated to it pursuant to Section 1.3 hereof, grant options
to purchase shares of Common Stock to such eligible persons, as set forth in
Section 1.4 hereof, as may be selected by the Committee. The Committee will
establish the terms and conditions of such options in accordance with this
Section 2.1. All awards made under this Plan to eligible persons will be in the
form of Non-Statutory Stock Options to purchase shares of Common Stock.

     Options shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of
this Plan, as the Committee shall deem advisable:

     (a) Number of Shares and Purchase Price. The number of shares of Common
Stock subject to an option and the purchase price per share of Common Stock
purchasable upon exercise of the option will be determined by the Committee,
subject to the limitations set forth in Section 1.5 hereof and this Section
2.1(a). The exercise price per share of Common Stock purchasable upon exercise
of the option will not be less than 100% of the Fair Market Value of a share of
Common Stock on the date of grant of an award; provided, however, that for any
option granted in connection with the recipient's hiring, promotion or similar
event, the option exercise price may not be less than the Fair Market Value of a
share of Common Stock on the date on which the recipient is hired or promoted
(or similar event), if the grant of the option occurs not more than 90 days
after the date of such hiring, promotion or similar event.

     (b) Option Period and Exercisability. The period during which an option may
be exercised will be determined by the Committee. The Committee may establish
Performance Measures which will be satisfied or met as a condition to the grant
of an option or to the exercisability of all or a portion of an option. The
Committee will determine whether an option will become exercisable in cumulative
or non-cumulative installments and in part or in full at any time. An
exercisable option, or portion thereof, may be exercised only with respect to
whole shares of Common Stock.

     (c) Method of Exercise. An option may be exercised (i) by giving written
notice to the Company, on a form prescribed by the Company for this purpose,
specifying the number of whole shares of Common Stock to be purchased and
accompanied by payment therefor in full (or arrangement made for such payment to
the Company's satisfaction) either (A) in cash or by certified or cashier's
check payable in U.S. currency, (B) by tendering (either by actual delivery or
by attestation of ownership) Mature Shares having an aggregate Fair Market
Value, determined as of the date of exercise, equal to the aggregate purchase
price payable by reason of such exercise,

                                       3
<PAGE>   4

(C) in cash by a third-party broker acceptable to the Company to whom the
optionee has submitted copies of his or her irrevocable notice of exercise and
irrevocable authorization for such third-party broker to sell shares of Common
Stock acquired upon exercise of the option and to remit to the Company a
sufficient portion of the sales proceeds to pay the aggregate exercise price for
all of the shares of Common Stock acquired through the exercise of the option
and any related tax withholdings pursuant to Section 3.5 hereof (with the
original notice of exercise and authorization to be submitted to the Company or
in accordance with such procedures as the Company may establish from time to
time) or (D) a combination of any of the above, (ii) by executing such documents
and complying with such procedures in connection therewith as the Committee may
establish from time to time, and (iii) by satisfying an obligation to pay any
Federal, state, local or other withholding taxes due upon the exercise of the
option as set forth in Section 3.5 hereof. The Company will have sole discretion
to disapprove of an election pursuant to any of clauses (B)-(D), and in the case
of an optionee who is subject to Section 16 of the Exchange Act, the Company may
require that the method of making such payment be in compliance with Section 16
and the rules and regulations thereunder. Any fraction of a share of Common
Stock which would be required to pay such purchase price will be disregarded and
the remaining amount due will be paid in cash by the optionee. No certificate
representing Common Stock will be delivered until the full purchase price
therefor has been paid (or arrangement made for such payment to the Company's
satisfaction).

     2.2 TERMINATION OF EMPLOYMENT OR SERVICE. Subject to Section 1.4, all of
the terms relating to the exercise, cancellation or other disposition of an
option upon a termination of employment with or service to the Company of the
holder of such option, as the case may be, whether by reason of disability,
retirement, death or other termination, will be determined by the Committee.
Such determination will be made at the time of the grant of such option and will
be specified in the Agreement relating to such option.

                                  III. GENERAL

     3.1 EFFECTIVE DATE AND TERM OF PLAN. This Plan will not be submitted to the
stockholders of the Company for approval. This Plan became effective as of May
12, 2000 (the "Effective Date"), the date as of which the Board approved this
Plan. This Plan will terminate ten years after its Effective Date, unless
terminated earlier by the Board. Termination of this Plan will not affect the
terms or conditions of any award granted prior to termination.

     3.2 AMENDMENTS. The Board may amend or terminate this Plan as it deems
advisable, prior to the expiration date set forth in Section 3.1 hereof, subject
to any requirement of stockholder approval then required by applicable law, rule
or regulation. No amendment may impair the rights of a holder of an outstanding
award, without the consent of such holder.

     3.3 AGREEMENT. Each award under this Plan will be evidenced by an Agreement
setting forth the terms and conditions applicable to such award. A copy of such
document shall be provided to the recipient, and the Committee may, but need not
require that the recipient sign a copy of such document. Such document is
referred to in the Plan as an "Agreement" regardless of whether any recipient
signature is required.

     The Agreement is subject to all terms of this Plan. In the event of a
discrepancy between the Agreement, or any document referencing or describing the
Agreement, and this Plan, this Plan will govern in all respects.

     3.4 NON-TRANSFERABILITY OF AWARDS. Unless otherwise specified in the
Agreement relating to an award, no award may be transferable other than upon the
option holder's death to his or her designated beneficiary, which beneficiary
was designated pursuant to beneficiary designation procedures established by the
Committee from time to time, or if no beneficiary was so designated, then by
will or, if no will exists, then by the laws of descent and distribution. Except
to the extent permitted by the first sentence of this Section 3.4, or the
Agreement relating to an award, each award may be exercised or settled during
the holder's lifetime only by the holder

                                       4
<PAGE>   5

or the holder's legal representative or similar person. Except to the extent
permitted by the first sentence of this Section 3.4 or the Agreement relating to
an award, no award may be sold, transferred, assigned, pledged, hypothecated,
encumbered or otherwise disposed of (whether by operation of law or otherwise)
or be subject to execution, attachment or similar process. Upon any attempt to
so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of
any such award, other than as permitted by the first sentence of this Section
3.4 or the Agreement relating to an award, such award and all rights thereunder
will immediately become null and void.

     3.5 TAX WITHHOLDING. The Company has the right to require, prior to the
issuance or delivery of any shares of Common Stock, payment by the holder of
such award of any Federal, state, local or other taxes which may be required to
be withheld or paid in connection with such award. At the Committee's
discretion, and in accordance with procedures established by the Committee from
time to time, the option holder may elect to satisfy any such obligation by any
of the following means: (A) a payment to the Company in cash or by certified or
cashier's check in U.S. currency, (B) by tendering (either by actual delivery or
by attestation of ownership) Mature Shares having an aggregate Fair Market
Value, determined as of the date the obligation to withhold or pay taxes arises
in connection with an award (the "Tax Date"), equal to the amount necessary to
satisfy any such obligation, (C) by authorizing the Company to withhold whole
shares of Common Stock which would otherwise be delivered to the holder under
this Plan, having an aggregate Fair Market Value determined as of the Tax Date,
or withhold an amount of cash which would otherwise be payable to the holder, in
the minimum amount necessary to satisfy any such obligation, (D) a cash payment
by a third-party broker acceptable to the Company to whom the optionee has
submitted copies of his or her irrevocable notice of exercise and authorization
to such third-party broker to sell shares of Common Stock acquired upon exercise
of the option and to remit to the Company a sufficient portion of the sales
proceeds to cover such withholding tax obligations (with the original notice of
exercise and authorization to be submitted to or as directed by the Company in
accordance with Section 2.1(c) hereof), and (E) any combination of the above;
provided, however, that the Company has the sole discretion to disapprove of an
election pursuant to any of clauses (B)-(E), and that in the case of a holder
who is subject to Section 16 of the Exchange Act, the Company may require that
the method of satisfying such an obligation be in compliance with Section 16 and
the rules and regulations thereunder. Any fraction of a share of Common Stock
which would be required to satisfy such an obligation will be disregarded and
the remaining amount due will be paid in cash by the holder.

     3.6 RESTRICTIONS ON SHARES. Each award made hereunder will be subject to
the requirement that if at any time the Company determines that the listing,
registration or qualification of the shares of Common Stock subject to such
award upon any securities exchange or under any law, or the consent or approval
of any governmental body, or the taking of any other action is necessary or
desirable as a condition of, or in connection with, the delivery of shares
thereunder, such shares will not be delivered unless such listing, registration,
qualification, consent, approval or other action has been effected or obtained,
free of any conditions not acceptable to the Company. The Company may require
that certificates evidencing shares of Common Stock delivered pursuant to any
award made hereunder bear a legend indicating that the sale, transfer or other
disposition thereof by the holder is prohibited except in compliance with the
Securities Act of 1933, as amended, and the rules and regulations thereunder.

     3.7 ADJUSTMENT. In the event of any stock split, stock dividend,
recapitalization, reorganization, merger, consolidation, combination or exchange
of shares, liquidation, split-up, spin-off or other similar change in
capitalization or event, or any distribution to holders of Common Stock other
than a regular cash dividend, the Board or, if applicable, the Committee will
make adjustments to the number and class of securities available under this
Plan, the number and class of securities subject to each outstanding option, and
the purchase price per security for outstanding options and any other
adjustments that the Board or Committee determines to be equitable and
appropriate to preserve the benefits or potential benefits of awards under this
Plan. The decision of the Board or Committee regarding any such adjustment will
be final, binding and conclusive. If any such adjustment would result in a
fractional security being (a) available under this Plan, such fractional
security will be disregarded, or (b) subject to an option under this Plan,

                                       5
<PAGE>   6

the Company will pay the holder of such option, in connection with the first
exercise thereof in whole or in part occurring after such adjustment, an amount
in cash determined by multiplying (i) the fraction of such security (rounded to
the nearest hundredth) by (ii) the excess, if any, of (A) the Fair Market Value
on the exercise date over (B) the exercise price, if any, of such option.

     3.8 CHANGE IN CONTROL.

     (a) Notwithstanding any provision in this Plan or any Agreement, and
subject to Section 3.7 hereof, in the event of a Change in Control, the Board
may, but is not required to, make such adjustments to outstanding awards
hereunder as it deems appropriate, including, without limitation, electing that
each outstanding option will be surrendered to the Company by the holder
thereof, and that each such option will immediately be cancelled by the Company,
and that the holder will receive, within a specified period of time from the
occurrence of the Change in Control, a cash payment from the Company in an
amount equal to the number of shares of Common Stock then subject to such
option, multiplied by the excess, if any, of the greater of (A) the highest per
share price offered to stockholders of the Company in any transaction whereby
the Change in Control takes place or (B) the Fair Market Value of a share of
Common Stock on the date of occurrence of the Change in Control, over the
purchase price per share of Common Stock subject to the option. The Company may,
but is not required to, cooperate with any person who is subject to Section 16
of the Exchange Act to assure that any cash payment in accordance with the
foregoing to such person is made in compliance with Section 16 and the rules and
regulations thereunder.

     In the event of a Change in Control, the Board may, but is not required to,
substitute for each share of Common Stock available under this Plan, whether or
not then subject to an outstanding award, the number and class of shares into
which each outstanding share of Common Stock will be converted pursuant to such
Change in Control. In the event of any such substitution, the purchase price per
share in the case of an option will be appropriately adjusted by the Committee.
The preceding two sentences notwithstanding, in the event of a Change in
Control, the Board will make any and all adjustments required pursuant to
Section 3.7 hereof.

     (b) "Change in Control" means one or more of the following events:

     (1) the acquisition by any individual, entity or group (a "Person"),
including any "person" within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act, of beneficial ownership within the meaning of Rule 13d-3
promulgated under the Exchange Act, of 25% or more of either (i) the then
outstanding shares of common stock of the Company (the "Outstanding Common
Stock") or (ii) the combined voting power of the then outstanding securities of
the Company entitled to vote generally in the election of directors (the
"Outstanding Voting Securities"); excluding, however, the following: (A) any
acquisition directly from the Company (excluding any acquisition resulting from
the exercise of an exercise, conversion or exchange privilege unless the
security being so exercised, converted or exchanged was acquired directly from
the Company), (B) any acquisition by the Company, (C) any acquisition by an
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company or (D) any acquisition by a
corporation pursuant to a transaction which complies with clauses (i), (ii) and
(iii) of subsection (3) of this Section 3.8(b); provided further, that for
purposes of clause (B), if any Person (other than the Company or any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company) becomes the beneficial owner of 25% or
more of the Outstanding Common Stock or 25% or more of the Outstanding Voting
Securities by reason of an acquisition by the Company, and such Person, after
such acquisition by the Company, becomes the beneficial owner of any additional
shares of the Outstanding Common Stock or any additional Outstanding Voting
Securities and such beneficial ownership is publicly announced, such additional
beneficial ownership will constitute a Change in Control;

     (2) individuals who, as of the Effective Date of this Plan constitute the
Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of such Board; provided that any individual who becomes a director of
the Company subsequent to the Effective Date whose election, or nomination for
election by the Company's stockholders, was approved by the

                                       6
<PAGE>   7

vote of at least a majority of the directors then comprising the Incumbent Board
will be deemed a member of the Incumbent Board; and provided further, that any
individual who was initially elected as a director of the Company as a result of
an actual or threatened election contest, as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act, or any other actual or
threatened solicitation of proxies or consents by or on behalf of any Person
other than the Board will not be deemed a member of the Incumbent Board;

     (3) the consummation of a reorganization, merger or consolidation of the
Company or sale or other disposition of all or substantially all of the assets
of the Company (a "Corporate Transaction"); excluding, however, a Corporate
Transaction pursuant to which (i) all or substantially all of the individuals or
entities who are the beneficial owners, respectively, of the Outstanding Common
Stock and the Outstanding Voting Securities immediately prior to such Corporate
Transaction will beneficially own, directly or indirectly, more than 60% of,
respectively, the outstanding shares of common stock, and the combined voting
power of the outstanding securities of such corporation entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Corporate Transaction (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company's assets either directly or indirectly) in
substantially the same proportions relative to each other as their ownership,
immediately prior to such Corporate Transaction, of the Outstanding Common Stock
and the Outstanding Voting Securities, as the case may be, (ii) no Person (other
than: the Company; any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company; the
corporation resulting from such Corporate Transaction; and any Person which
beneficially owned, immediately prior to such Corporate Transaction, directly or
indirectly, 25% or more of the Outstanding Common Stock or the Outstanding
Voting Securities, as the case may be) will beneficially own, directly or
indirectly, 25% or more of, respectively, the outstanding shares of common stock
of the corporation resulting from such Corporate Transaction or the combined
voting power of the outstanding securities of such corporation entitled to vote
generally in the election of directors and (iii) individuals who were members of
the Incumbent Board will constitute at least a majority of the members of the
board of directors of the corporation resulting from such Corporate Transaction;
or

     (4) the consummation of a plan of complete liquidation or dissolution of
the Company.

     (c) With respect to any optionee who is subject to Section 16 of the
Exchange Act, notwithstanding the exercise period contained in any Agreement to
which such optionee is a party and notwithstanding the expiration date of the
term of such option, in the event the Company is involved in a business
combination which is intended to be treated as a pooling of interests for
financial accounting purposes (a "Pooling Transaction") or pursuant to which
such optionee receives a substitute option to purchase securities of any entity,
including an entity directly or indirectly acquiring the Company, then each
option (or option in substitution thereof) held by such optionee shall be
exercisable to the extent set forth in the Agreement evidencing such option
until and including the latest of (x) the expiration date of the term of the
option, (y) the date which is six months and one day after the consummation of
such business combination and (z) the date which is ten business days after the
date of expiration of any period during which such optionee may not dispose of a
security issued in the Pooling Transaction to be accounted for as a pooling of
interest.

     3.9 NO RIGHT OF PARTICIPATION OR EMPLOYMENT. No person has any right to
participate in this Plan. Neither this Plan nor any award made hereunder confers
upon any person any right to continued employment by or service with the Company
or any of its subsidiaries or affiliates, or affect in any manner the right of
the Company or any of its subsidiaries or affiliates to terminate the employment
of or the performance of services by any person at any time without liability
hereunder.

     3.10 RIGHTS AS STOCKHOLDER. No person has any right as a security holder of
the Company or any successor with respect to any shares of Common Stock or other
securities which are or become subject to an award hereunder unless and until
such person becomes a holder of record with respect to such shares of Common
Stock or other securities.

                                       7
<PAGE>   8

     3.11 GOVERNING LAW. This Plan, each award hereunder and the related
Agreement, and all determinations made and actions taken pursuant thereto, to
the extent not otherwise governed by the Code or the laws of the United States,
will be governed by the laws of the State of Delaware and construed in
accordance therewith without giving effect to the principles of conflicts of
laws.

                                       8

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