Document:

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                                                                    EXHIBIT 10.9

                                                                  EXECUTION COPY
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                           THIRD AMENDED AND RESTATED
                          INVESTORS' RIGHTS AGREEMENT

     THIRD AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT dated as of May 8,
2000 (the "Agreement") by and among (i) InFlow, Inc., a Delaware corporation
(the "Company"), and (ii) the investors listed on the signature pages attached
hereto, together with those investors listed on Schedule A attached hereto or
                                                ----------
that subsequently execute a counterpart signature page hereto, each of which is
herein referred to as an "Investor."  The Second Amended and Restated Investors'
Rights Agreement dated November 30, 1999 between the Company and certain of the
Investors is hereby amended and restated in its entirety.

     1.  Registration Rights. The Company covenants and agrees as follows:

         1.1  Definitions. For purposes of this Section 1:
              -----------

              (a)  The term "Act" means the Securities Act of 1933, as amended.

              (b)  The term "Form S-3" means such form under the Act as in
effect on the date hereof or any registration form under the Act subsequently
adopted by the SEC which permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC.

              (c)  The term "Holder" means any person owning or having the
right to acquire Registrable Securities or any assignee thereof in accordance
with Section 1.13 hereof.

              (d)  The term "Initiating Holders" means one or more holders of
Registrable Securities representing, in the case of a registration other than a
registration on Form S-3, not less than 25% of the Registrable Securities then
outstanding and, in the case of a registration on Form S-3, not less than 10% of
the Registrable Securities then outstanding.

              (e)  The term "1934 Act" shall mean the Securities Exchange Act of
1934, as amended.

              (f)  The term "Person" shall mean a natural person, partnership,
limited liability company, corporation, trust, or unincorporated organization or
association, company, firm, joint venture or other business entity, or a
government or governmental agency or instrumentality or political subdivision
thereof.

              (g)  The term "Preferred Stock" shall mean, collectively, the
Company's Series A Preferred Stock, $.001 par value, the Series B Preferred
Stock, $.001 par value, and the Series C Preferred Stock, $.001 par value.
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              (h)  The term "register", "registered," and "registration" refer
to a registration effected by preparing and filing a registration statement or
similar document in compliance with the Act, and the declaration or ordering of
effectiveness of such registration statement or document.

              (i)  The term "Registrable Securities" means (i) the shares of the
Company's Common Stock, $.001 par value ("Common Stock"), issuable or issued
upon conversion of the Preferred Stock, (ii) the 3,060,000 shares of Common
Stock (the "Management Stock") issued to Art Zeile, Joel Daly and Stephen James;
provided, however, that such shares of Management Stock shall not be deemed
Registrable Securities and such Persons shall not be deemed Holders for the
purposes of Section 1.2, 1.3 and 3.7 hereof or for purposes of the definition of
Initiating Holders, and (iii) any Common Stock issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued
as) a dividend or other distribution with respect to, or in exchange for or in
replacement of the shares referenced in (i) and (ii) above, excluding in all
cases, however, any Registrable Securities sold by a person in a transaction in
which his rights under this Section 1 are not assigned.

              (j)  The number of shares of "Registrable Securities then
outstanding" shall be determined by the number of shares of Common Stock
outstanding which are, and the number of shares of Common Stock issuable
pursuant to then exercisable or convertible securities (including the Preferred
Stock) which are, Registrable Securities.

              (k)  The term "SEC" shall mean the Securities and Exchange
Commission.

         1.2  Request for Registration.
              ------------------------

              (a)  If the Company shall receive at any time after the earlier
of (i) April 1, 2006 or (ii) six (6) months after the effective date of the
first registration statement for a public offering of securities of the Company
(other than a registration statement relating either to the sale of securities
to employees of the Company pursuant to a stock option, stock purchase or
similar plan or a SEC Rule 145 transaction), a written request from the
Initiating Holders that the Company file a registration statement under the Act
covering the registration of at least twenty percent (20%) of the Registrable
Securities then outstanding (or a lesser percentage if the anticipated aggregate
offering price, net of underwriting discounts and commissions, would exceed
$10,000,000) then the Company shall:

                   (i)   within ten (10) days of the receipt thereof, give
         written notice of such request to all Holders; and

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                   (ii)  file as soon as practicable, and in any event within
         60 days of the receipt of such request, a registration statement in
         form and scope sufficient to permit under the Act and any other
         applicable law and regulations the disposition of all Registrable
         Securities which the Holders request to be registered in accordance
         with the method or methods of distribution specified in such request,
         subject to the limitations of Section 1.2(b), within twenty (20) days
         of the mailing of such notice by the Company in accordance with Section
         3.5.

         (b)  If the Initiating Holders intend to distribute the Registrable
Securities covered by their request by means of an underwriting, they shall so
advise the Company as a part of their request made pursuant to Section 1.2(a)
and the Company shall include such information in the written notice referred to
in Section 1.2(a).  The underwriter will be selected by a majority in interest
of the Initiating Holders and shall be reasonably acceptable to the Company.  In
such event, the right of any Holder to include Registrable Securities in such
registration shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the
Initiating Holders and such Holder) to the extent provided herein.  All Holders
proposing to distribute their securities through such underwriting shall
(together with the Company as provided in Section 1.4(e)) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting.  Notwithstanding any other provision of this
Section 1.2, if the underwriter advises the Initiating Holders in writing that
in its good faith view marketing factors require a limitation of the number of
shares to be underwritten, then the Company shall so advise all Holders of
Registrable Securities which would otherwise be underwritten pursuant hereto,
and the Company will exclude from such registration (i) first, securities held
by any Person who does not have any contractual rights to cause the Company to
register such securities, (ii) second, securities held by any Person with such
contractual rights other than those granted in this Agreement and (iii) third,
shares held by all Holders, including the Initiating Holders, of Registrable
Securities with such contractual rights granted in this Agreement, pro rata
among the Holders of such shares on the basis of the respective numbers of
shares of Common Stock requested to be included in such registration.  If at
least eighty percent (80%) of the Registrable Securities requested to be
registered by the Initiating Holders are not included in such registration, then
the Initiating Holders may request that the Company effect an additional
registration under the Securities Act of all or part of the Initiating Holders'
Registrable Securities in accordance with the provisions of this Section 1.2,
and the Company shall effect such additional registration at its sole expense.

         (c)  Notwithstanding the foregoing, if the Company shall furnish to
Holders requesting a registration statement pursuant to this Section 1.2, a
certificate signed by the Chief Executive Officer of the Company stating that in
the good faith judgment of the Board of Directors of the Company, it would
(because of the existence of, or in anticipation of, any acquisition, financing
activity, or other transaction involving the Company, or the unavailability for
reasons beyond the Company's control of any required financial statements,
disclosure of information which is in its best interest not to publicly
disclose, or any other event or condition of similar significance to the
Company) be seriously detrimental to the Company and its stockholders for such
registration statement to be filed and it is therefore essential to defer the
filing of such registration statement, the Company shall have the right to defer
taking action with

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respect to such filing for a period of not more than 90 days after receipt of
the request of the Initiating Holders; provided, however, that the Company may
not utilize this right more than once in any twelve-month period.

         (d)  A demand registration requested pursuant to this Section 1.2 shall
not be deemed to have been effected unless the registration statement relating
thereto (i) has become effective under the Act and any of the Registrable
Securities of the Initiating Holders included in such registration have actually
been sold thereunder, and (ii) has remained effective for a period of at least
120 days (or such shorter period in which all Registrable Securities included in
such registration have actually been sold thereunder); provided that if after
any registration statement requested pursuant to this Section 1.2 becomes
effective (i) such registration statement is interfered with by any stop order,
injunction or other order or requirement of the Commission or other governmental
agency or court solely due to the actions or omissions to act of the Company and
(ii) less than fifty percent (50%) of the Registrable Securities included in
such registration have been sold thereunder, such registration statement shall
not be included as a registration which may be requested pursuant to this
Section 1.2 and shall be at the sole expense of the Company.

         (e)  In addition, the Company shall not be obligated to effect, or to
take any action to effect, any registration pursuant to this Section 1.2:

              (i)  After the Company has effected four registrations pursuant to
         this Section 1.2 and such registrations have been declared or ordered
         effective and have remained effective for at least 120 consecutive
         days; or

              (ii) During the period starting with the date 90 days prior to
         the Company's good faith estimate of the date of filing of, and ending
         on a date 180 days after the effective date of, a Company-initiated
         registration statement in connection with a bona fide firm commitment
         underwritten registration for securities to be offered for the
         Company's own account (the "Intended Registration") ; provided that the
         Company is actively employing in good faith all reasonable efforts to
         cause the Intended Registration to become effective and provided
         further that the Company gives notice to all Holders upon commencement
         of such period. The Holders shall be entitled to exercise their rights
         pursuant to Section 1.4 hereof with respect to an Intended
         Registration. An Intended Registration shall not be deemed to be a
         demand registration of the Holders pursuant to this Section 1.2.

    1.3  S-3 Registration. In case the Company shall receive from the Initiating
         ----------------
Holders a written request or requests that the Company effect a registration on
Form S-3 and any related qualification or compliance with respect to all or a
part of the Registrable Securities owned by such Holders, the Company will:

         (a)  promptly give written notice of the proposed registration, and any
related qualification or compliance, to all other Holders; and

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         (b)  as soon as practicable, and in any event within 30 days of the
receipt of such notice, file a registration statement on Form S-3, or a post-
effective amendment thereto and effect all other qualifications and compliances
as may be so requested and as would permit or facilitate the sale and
distribution (through market transactions using brokers, in a firm commitment
underwriting, in negotiated transactions or otherwise) of all or such portion of
such Holder's or Holders' Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any
other Holder or Holders joining in such request as are specified in a written
request given within 15 days after receipt of such written notice from the
Company; provided, however, that the Company shall not be obligated to effect
any such registration, qualification or compliance, pursuant to this Section
1.3: (i) if Form S-3 is not available for such offering by the Holders; (ii) if
the Holders, together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at an aggregate price to the
public (net of any underwriters' discounts or commissions) of less than
$2,500,000; (iii) if the Company shall furnish to the Holders a certificate
signed by the President of the Company stating that in the good faith judgment
of the Board of Directors of the Company, it would be (because of the existence
of, or in anticipation of, any acquisition, financing activity, or other
transaction involving the Company, or the unavailability for reasons beyond the
Company's control of any required financial statements, disclosure of
information which is in its best interest not to publicly disclose, or any other
event or condition of similar significance to the Company) seriously detrimental
to the Company and its shareholders for such Form S-3 Registration to be
effected at such time, in which event the Company shall have the right to defer
the filing of the Form S-3 registration statement for a period of not more than
60 days after receipt of the request of the Holder or Holders under this Section
1.3; provided, however, that the Company shall not exercise this right more than
once in any twelve month period; (iv) if the Company has, within the twelve (12)
month period preceding the date of such request, already effected two
registrations on Form S-3 for the Holders pursuant to this Section 1.3; or (v)
in any particular jurisdiction in which the Company would be required to qualify
to do business or to execute a general consent to service of process in
effecting such registration, qualification or compliance.

         (c)  Subject to the foregoing, the Company shall file a registration
statement covering the Registrable Securities and other securities so requested
to be registered as soon as practicable after receipt of the request or requests
of the Holders and shall keep it continuously effective for a period of not less
than 120 days or, if shorter, until such Registrable Securities have been sold
pursuant thereto.

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    1.4  Company Registration. If (but without any obligation to do so) the
         --------------------
Company proposes to register (including for this purpose a registration effected
by the Company for stockholders other than the Holders) any of its stock or
other securities under the Act in connection with the public offering of such
securities solely for cash (other than a registration relating solely to the
sale of securities to participants in a Company stock plan, a registration on
any form which does not include substantially the same information as would be
required to be included in a registration statement covering the sale of the
Registrable Securities or a registration in which the only Common Stock being
registered is Common Stock issuable upon conversion of debt securities which are
also being registered), the Company shall, at such time, promptly give each
Holder written notice of such registration. Upon the written request of each
Holder given within twenty (20) days after mailing of such notice by the Company
in accordance with Section 3.5, the Company shall, subject to the provisions of
Section 1.9, cause to be registered under the Act all of the Registrable
Securities that each such Holder has requested to be registered. Notwithstanding
the foregoing, the Company has no obligation to register any shares pursuant to
this Section 1.4 and may withdraw any such registration at any time.

    1.5  Obligations of the Company. Whenever required under this Section 1 to
         --------------------------
effect the registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible:

         (a)  Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective, and, upon the request of the Holders
of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for a period of up to one hundred twenty (120)
days or until the distribution contemplated in the Registration Statement has
been completed; provided, however, that (i) such 120-day period shall be
extended for a period of time equal to the period the Holder refrains from
selling any securities included in such registration at the request of an
underwriter of Common Stock (or other securities) of the Company; and (ii) in
the case of any registration of Registrable Securities on Form S-3 which are
intended to be offered on a continuous or delayed basis, such 120-day period
shall be extended, if necessary, to keep the registration statement effective
until all such Registrable Securities are sold, provided that Rule 415, or any
successor rule under the Act, permits an offering on a continuous or delayed
basis, and provided further that applicable rules under the Act governing the
obligation to file a post-effective amendment permit, in lieu of filing a post-
effective amendment which (I) includes any prospectus required by Section
10(a)(3) of the Act or (II) reflects facts or events representing a material or
fundamental change in the information set forth in the registration statement,
the incorporation by reference of information required to be included in (I) and
(II) above to be contained in periodic reports filed pursuant to Section 13 or
15(d) of the 1934 Act in the registration statement.

         (b)  Prepare and file with the SEC such amendments, supplements and
post-effective amendments to such registration statement and the prospectus used
in connection with such registration statement as may be necessary to comply
with the provisions of the Act with respect to the disposition of all securities
covered by such registration statement.

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         (c)  Furnish to the Holders such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Act, and such other documents as they may reasonably request in order to
facilitate the disposition of Registrable Securities owned by them.

         (d)  Use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Holders;
provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions, and do any and all other
acts and things which may be necessary or advisable to enable such Holders or
underwriter to consummate the disposition in each such jurisdiction of such
Registrable Securities.

         (e)  use its best efforts to cause the Registrable Securities covered
by such registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary by virtue of the
business and operations of the Company to enable the Holder or Holders thereof
to consummate the disposition of such Registrable Securities;

         (f)  immediately notify the managing underwriter, if any, and each
Holder of such Registrable Securities at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of
any event which comes to the Company's attention if as a result of such event
the prospectus included in such registration statement contains an untrue
statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading and
the Company shall promptly prepare and furnish to such Holder a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus shall not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading;

         (g)  use its best efforts to cause all such Registrable Securities
covered by the registration statement to be listed on a national securities
exchange and on each securities exchange on which similar securities issued by
the Company are then listed, and enter into such customary agreements including
a listing application and indemnification agreement in customary form (provided
that the applicable listing requirements are satisfied), and to provide a
transfer agent and registrar for such Registrable Securities covered by such
registration statement no later than the effective date of such registration
statement;

         (h)  enter into such customary agreements (including an underwriting
agreement in customary form) and take all such other actions as the Initiating
Holders or the underwriters retained by such Holders, if any, reasonably request
in order to expedite or facilitate the disposition of such Registrable
Securities, including customary indemnification;

         (i)  make available for inspection during normal business hours by any
Holder of Registrable Securities covered by such registration statement, any
underwriter participating in any disposition pursuant to such registration
statement, and any attorney, accountant or other

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agent retained by any such Holder or underwriter (collectively, the
"Inspectors"), all financial and other records, pertinent corporate documents
and properties of the Company and its subsidiaries (collectively, "Records"), if
any, as shall be reasonably necessary to enable them to exercise their due
diligence responsibility, and cause the Company's and its subsidiaries'
officers, directors and employees to supply all information and respond to all
inquiries reasonably requested by any such Inspector in connection with such
registration statement. Notwithstanding the foregoing, the Company shall have no
obligation to disclose any Records to the Inspectors in the event the Company
determines that such disclosure is reasonably likely to have an adverse effect
on the Company's ability to assert the existence of an attorney-client privilege
with respect thereto;

         (j)  use its best efforts to obtain a "comfort" letter from the
Company's independent public accountants in customary form and covering such
matters of the type customarily covered by "comfort" letters as the Holders of a
majority (by number of shares) of the Registrable Securities being sold
reasonably request, and provided that such request is reasonable in the
underwriter's point of view;

         (k)  use its best efforts to obtain an obtain an opinion of counsel
from the Company's counsel in customary form and covering such matters of the
type customarily covered in opinions of counsel in connection with such
transactions; and

         (l)  comply, and continue to comply during the period that such
registration statement is effective under the Securities Act, in all material
respects with the Securities Act and the Securities Exchange Act of 1934 and
with all applicable rules and regulations of the Commission with respect to the
disposition of all securities covered by such registration statement, and make
available to its security holders, as soon as reasonably practicable, an
earnings statement covering the period of at least twelve (12) months, but not
more than eighteen (18) months, beginning with the first full calendar month
after the effective date of such registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act,
and not file any amendment or supplement to such registration statement or
prospectus to which Holder shall have reasonably objected on the grounds that
such amendment or supplement does not comply in all material respects with the
requirements of the Securities Act, having been furnished with a copy thereof at
least five (5) business days prior to the filing thereof.

Each Holder of Registrable Securities agrees that, upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
1.5(f) hereof, such Holder shall discontinue disposition of Registrable
Securities pursuant to the registration statement covering such Registrable
Securities until such Holder's receipt of the copies of the supplemented or
amended prospectus contemplated by Section 1.5(f) hereof, and, if so directed by
the Company, such Holder shall deliver to the Company (at the Company's expense)
all copies (including, without limitation, any and all drafts), other than
permanent file copies, then in such Holder's possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice.  In the event the Company shall give any such notice, the period
mentioned in Section 1.5(a) hereof shall be extended by the greater of (i) ten
(10) business days or (ii) the number of days during the period from and
including the date of the giving of such notice

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pursuant to Section 1.5(f) hereof to and including the date when each Holder of
Registrable Securities covered by such registration statement shall have
received the copies of the supplemented or amended prospectus contemplated by
Section 1.5(f) hereof.

    1.6  Furnish Information.
         -------------------

         (a)  It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Section 1 with respect to the
Registrable Securities of any selling Holder that such Holder shall furnish to
the Company such information regarding itself, the Registrable Securities held
by it, and the intended method of disposition of such securities as shall be
required to effect the registration of such Holder's Registrable Securities.

         (b)  The Company shall have no obligation with respect to any
registration requested pursuant to Section 1.2 or Section 1.3 if, due to the
operation of Section 1.6(a), the number of shares or the anticipated aggregate
offering price of the Registrable Securities to be included in the registration
does not equal or exceed the number of shares or the anticipated aggregate
offering price required to originally trigger the Company's obligation to
initiate such registration as specified in Section 1.2(a) or Section 1.3(b), as
applicable.

    1.7  Expenses of Demand Registration. All expenses (other than underwriting
         -------------------------------
discounts and commissions) incurred in connection with up to two registrations,
filings or qualifications pursuant to Section 1.2 hereof, including (without
limitation) all registration, filing and qualification fees, printers' and
accounting fees, fees and disbursements of counsel for the Company, and fees and
disbursements of one counsel for the selling Holders, shall be borne by the
Company; provided, however, that the Company shall not be required to pay for
any expenses of any registration proceeding begun pursuant to Section 1.2 if the
registration request is subsequently withdrawn at the request of the Holders of
a majority of the Registrable Securities to be registered (in which case all
participating holders shall bear such expenses), unless the Holders of a
majority of the Registrable Securities agree to forfeit their right to one
demand registration pursuant to Section 1.2.

    1.8  Expenses of Company Registration and Form S-3 Registrations. The
         -----------------------------------------------------------
Company sharr bear and pay all expenses incurred in connection with any
registration, filing or qualification of Registrable Securities with respect to
the registrations pursuant to Sections 1.3 and 1.4 for each Holder, including
(without limitation) all registration, filing, and qualification fees, printers
and accounting fees relating or apportionable thereto and the fees and
disbursements of counsel for the Company in its capacity as counsel to the
selling Holders hereunder; if Company counsel does not make itself available for
this purpose, the Company will pay the reasonable fees and disbursements of one
counsel for the selling Holders selected by them, but excluding underwriting
discounts and commissions relating to Registrable Securities.

    1.9  Underwriting Requirements.  In connection with any offering involving
         -------------------------
an underwriting of shares of the Company's capital stock, the Company shall not
be required under Sections 1.3 and 1.4 to include any of the Holders' securities
in such underwriting unless they accept the terms of the underwriting as agreed
upon between the Company and the underwriters selected by it (or by other
persons entitled to select the underwriters), and then only in such

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quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities, requested by stockholders to be
included in such offering pursuant to Sections 1.3 and 1.4 exceeds the amount of
securities sold (other than by the Company in the case of a registration under
Section 1.4) that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall exclude from
such registration (i) first, securities held by any Person who does not have any
contractual rights to cause the Company to register such securities, (ii)
second, securities held by any Person with such contractual rights other than
those granted in this Agreement, (iii) third, any Management Stock included in
the underwriting, and (iv) fourth, shares held by any Person with such
contractual rights granted in this Agreement, pro rata among the Holders of such
shares on the basis of the respective numbers of shares of Common Stock
requested to be included in such registration, but in no event shall the amount
of securities of the selling Holders included in the offering be reduced below
twenty percent (20%) of the total amount of securities included in such
offering, unless such offering is the initial public offering of the Company's
securities.

    1.10 Delay of Registration. No Holder shall have any right to obtain or seek
         ---------------------
an injunction restraining or otherwise delaying any such registration as the
result of any controversy that might arise with respect to the interpretation or
implementation of this Section 1.

    1.11 Indemnification. In the event any Registrable Securities are included
         ---------------
in a registration statement under this Section 1:

         (a)  To the extent permitted by law, the Company will indemnify and
hold harmless each Holder, its directors, officers and partners, any underwriter
(as defined in the Act) for such Holder and each person, if any, who controls
such Holder or underwriter within the meaning of the Act or the 1934 Act,
against any losses, claims, damages, liabilities (joint or several) or expenses
to which they may become subject under the Act or the 1934 Act, insofar as such
losses, claims, damages, liabilities or expenses (or actions in respect thereof)
arise out of or are based upon any of the following statements, omissions or
violations (collectively a "Violation"): (i) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Act, the 1934 Act, or any rule or regulation
promulgated under the Act or the 1934 Act; and the Company will pay to each such
Holder, director, officer, partner, underwriter or controlling person, any legal
or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, damage, liability, or action; provided,
however, that the indemnity agreement contained in this Section 1.11(a) shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any such case for any such loss, claim, damage, liability,
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by any such Holder,
underwriter or controlling person.

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         (b)  To the extent permitted by law, each selling Holder will indemnify
and hold harmless the Company, each of its directors, each of its officers who
has signed the registration statement, each person, if any, who controls the
Company within the meaning of the Act, any underwriter, any other Holder selling
securities in such registration statement and any controlling person of any such
underwriter or other Holder, against any losses, claims, damages, or liabilities
(joint or several) to which any of the foregoing persons may become subject,
under the Act or the 1934 Act, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Holder expressly for use in connection with such registration;
and each such Holder will pay any legal or other expenses reasonably incurred by
any person intended to be indemnified pursuant to this Section 1.11(b), in
connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity agreement contained
in this Section 1.11(b) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably
withheld; provided, that, in no event shall any indemnity under this Section
1.11(b) exceed the gross proceeds from the offering received by such Holder.

         (c)  Promptly after receipt by an indemnified party under this Section
1.11 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 1.11, deliver to the
indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding.  The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
1.11, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.11.

         (d)  If the indemnification provided for in this Section 1.11 is held
by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, liability, claim, damage, or expense referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage, or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that

                                       11
<PAGE>

resulted in such loss, liability, claim, damage, or expense as well as any other
relevant equitable considerations. The relative fault of the indemnifying party
and of the indemnified party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

         (e)  Notwithstanding the foregoing, to the extent that the provisions
on indemnification and contribution contained in the underwriting agreement
entered into in connection with the underwritten public offering are in conflict
with the foregoing provisions, the provisions in the underwriting agreement
shall control.

         (f)  The obligations of the Company and Holders under this Section 1.11
shall survive the completion of any offering of Registrable Securities in a
registration statement under this Section 1, and otherwise.

    1.12 Reports Under Securities Exchange Act of 1934. With a view to making
         ---------------------------------------------
available to the Holders the benefits of Rule 144 promulgated under the Act and
any other rule or regulation of the SEC that may at any time permit a Holder to
sell securities of the Company to the public without registration or pursuant to
a registration on Form S-3, the Company agrees to:

         (a)  make and keep public information available, as those terms are
understood and defined in SEC Rule 144, at all times after ninety (90) days
after the effective date of the first registration statement filed by the
Company for the offering of its securities to the general public;

         (b)  file with the SEC in a timely manner all reports and other
documents required of the Company under the Act and the 1934 Act; and

         (c)  furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (i) a written statement by the Company that
it has complied with the reporting requirements of SEC Rule 144 (at any time
after ninety (90) days after the effective date of the first registration
statement filed by the Company), the Act and the 1934 Act (at any time after it
has become subject to such reporting requirements), or that it qualifies as a
registrant whose securities may be resold pursuant to Form S-3 (at any time
after it so qualifies), (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably requested in
availing any Holder of any rule or regulation of the SEC (including Rule 144A)
which permits the selling of any such securities without registration or
pursuant to such form.

    1.13 Assignment of Registration Rights. The rights to cause the Company to
         ---------------------------------
register Registrable Securities pursuant to this Section 1 may be assigned (but
only with all related obligations) by a Holder to a transferee or assignee of
such securities, provided: (a) the Company is, within a reasonable time after
such transfer, furnished with written notice of the name and address of such
transferee or assignee and the securities with respect to which such
registration rights are being assigned; (b) such transferee or assignee agrees
in writing to be

                                       12
<PAGE>

bound by and subject to the terms and conditions of this Agreement, including
without limitation the provisions of Section 1.15 below; and (c) such assignment
shall be effective only if immediately following such transfer either (x) the
Common Stock is neither listed on a national securities exchange nor traded in
the NASDAQ National Market System or (y) the further disposition of such
securities by the transferee or assignee is restricted under the Act.

    1.14 Limitations on Subsequent Registration Rights. From and after the date
         ---------------------------------------------
of this Agreement, the Company shall not, without the prior written consent of
the Holders of a majority of the outstanding Registrable Securities, enter into
any agreement with any holder or prospective holder of any securities of the
Company which would allow such holder or prospective holder (a) registration
rights which are superior to the registration rights granted pursuant to this
Agreement, (b) registration rights which are pari passu with the registration
rights granted pursuant to Sections 1.2, 1.3 and 1.4 of this Agreement, (c) to
include such securities in any registration filed under Section 1.2 or Section
1.3, unless under the terms of such agreement, such holder or prospective holder
may include such securities in any such registration only to the extent that the
inclusion of such securities will not reduce the amount of the Registrable
Securities included by the Holders in such registration, or (d) to make a demand
registration which could result in such registration statement being declared
effective prior to the earlier of six months after either of the dates set forth
in Section 1.2(a) or within one hundred eighty (180) days of the effective date
of any registration effected pursuant to Section 1.2.

    1.15 "Market Stand-Off" Agreement. Each Investor hereby agrees that, during
         ----------------------------
the period of duration specified by the managing underwriter of Common Stock or
other equity securities of the Company, following the date of the first sale of
such securities to the public pursuant to a registration statement of the
Company filed under the Act, it shall not, to the extent requested by such
underwriter, directly or indirectly sell, offer to sell, contract to sell
(including, without limitation, any short sale), grant any option to purchase or
otherwise transfer or dispose of (other than to donees who agree to be similarly
bound) any securities of the Company held by it at any time during such period
except Common Stock included in such registration; provided, however, that such
market stand-off time period shall not exceed 180 days in the case of the
Company's initial public offering or 90 days in any subsequent registration and
in any event shall not exceed the stand-off period applicable to holders of
Management Stock. In order to enforce the foregoing covenant, the Company may
impose stop-transfer instructions with respect to the Registrable Securities of
each Investor (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period. Notwithstanding the
foregoing, the obligations described in this Section 1.15 shall not apply to a
registration relating solely to employee benefit plans on Form S-l or Form S-8
or similar forms which may be promulgated in the future, or a registration
relating solely to a Commission Rule 145 transaction on Form S-4 or similar
forms which may be promulgated in the future.

    1.16 Termination of Registration Rights.
         ----------------------------------

         (a)  No Holder shall be entitled to exercise any right provided for in
this Section 1 (other than Section 1.3) after five (5) years following the
consummation of the sale of securities pursuant to a registration statement
filed by the Company under the Act in connection

                                       13
<PAGE>

with the initial firm commitment underwritten offering of its Common Stock to
the general public.

         (b)  In addition, the right of any Holder to request registration or
inclusion in any registration pursuant to Section 1.4 shall terminate on the
first date following the Company's initial public offering of Common Stock on
which both (i) all shares of Registrable Securities held or entitled to be held
upon conversion by such Holder may immediately be sold under Rule 144 during the
following 90-day period, and (ii) the Common Stock is either listed on a
national securities exchange or traded in the NASDAQ National Market System.

2.  Covenants of the Company.

    2.1  Delivery of Financial Statements.  The Company shall deliver to each
         --------------------------------
Investor (or, in the case of items referred to in clauses (e) and (f) of this
Section 2.1, to each Investor holding securities representing 10.0% or more of
the fully-diluted Common Stock determined on an as-converted basis (a "Qualified
Holder"); Notwithstanding the foregoing, as long as First Union Capital
Partners, Inc., Meritage Private Equity Fund, L.P., Meritage Private Equity
Parallel Fund, L.P., Meritage Entrepreneurs Fund, L.P., J.P. Morgan Investment
Corporation, Sixty Wall Street SBIC Fund, L.P., General Electric Capital
Corporation or Stolberg, Meehan & Scano II, L.P. own securities representing at
least fifty percent (50%) of the securities of the Company held by such
Investors as of the date of this Agreement, the Company shall deliver to such
Investors the items referred to in clauses 2.1(e) and (f)):

         (a)  as soon as practicable, but in any event within ninety (90) days
after the end of each fiscal year of the Company, an income statement for such
fiscal year, a balance sheet of the Company and statement of stockholder's
equity as of the end of such fiscal year, and a statement of cash flows for such
fiscal year, such year-end financial reports to be in reasonable detail,
prepared in accordance with generally accepted accounting principles ("GAAP"),
and audited and certified by independent public accountants of nationally
recognized standing selected by the Company;

         (b)  as soon as practicable, but in any event within forty-five (45)
days after the end of each of the first three (3) quarters of each fiscal year
of the Company, an unaudited balance sheet and statements of income and cash
flows for and as of the end of such fiscal quarter;

         (c)  within thirty (30) days of the end of each month, an unaudited
balance sheet and statements of income and cash flows for and as of the end of
such month, in reasonable detail; and

         (d)  with respect to the financial statements called for in subsections
(b) and (c) of this Section 2.1, an instrument executed by the Chief Financial
Officer or President of the Company and certifying that such financial
statements were prepared in accordance with GAAP consistently applied with prior
practice for earlier periods (with the exception of footnotes that may be
required by GAAP) and fairly present the financial condition of the Company and
its results of operation for the period specified, subject to normal year-end
audit adjustment.

                                       14
<PAGE>

         (e)  as soon as practicable, but in any event thirty (30) days prior to
the end of each fiscal year, a budget and business plan for the next fiscal
year, prepared on a monthly basis, including balance sheets and statements of
income and cash flows for such months and, as soon as prepared, any other
budgets or revised budgets prepared by the Company; and

         (f)  such other information relating to the financial condition,
business, prospects or corporate affairs of the Company as such Investor may
from time to time reasonably request; provided, however, that the Company shall
be allowed a reasonable time to process such request and shall not be obligated
under this or any other provision of Section 2.1 to provide information which it
deems in good faith to be a trade secret or similar confidential information.

    2.2  Inspection.  The Company shall permit each Qualified Holder, at such
         ----------
Investor's expense, to visit and inspect the Company's properties, to examine
its books of account and records and to discuss the Company's affairs, finances
and accounts with its officers, all at such reasonable times as may be requested
by the Investor; provided, however, that the Company shall not be obligated
pursuant to this Section 2.2 to provide access to any information which it
reasonably considers to be a trade secret or similar confidential information.

    2.3  Termination of Information and Inspection Covenants. The covenants set
         ---------------------------------------------------
forth in Sections 2.1 and Section 2.2 shall terminate as to Investors and be of
no further force or effect when the sale of securities pursuant to a
registration statement filed by the Company under the Act in connection with the
firm commitment underwritten offering of its securities to the general public is
consummated or when the Company first becomes subject to the periodic reporting
requirements of Sections 12(g) or 15(d) of the 1934 Act, whichever event shall
first occur.

    2.4  Regulatory Compliance.  In the event that (i) First Union Capital
         ---------------------
Partners, Inc., (ii) Sixty Wall Street SBIC Fund, L.P. or (iii) J.P. Morgan
Investment Corporation (each, an "SBIC") determines that, by reason of any
future federal or state rule, regulation, guideline, order, interpretive
release, ruling, request or directive relating to Small Business Investment
Companies under the Small Business Investment Act of 1958 (having the force of
law and where the failure to comply therewith would be unlawful)(collectively, a
"Regulatory Requirement"), it is effectively restricted or prohibited from
holding the shares of Series A, Series B or Series C Preferred Stock (or any
capital stock distributable to such SBIC in any merger, reorganization,
readjustment or other reclassification or exchange with respect to the Company
or any successor thereof) or otherwise realize upon or receive the benefits
intended under the Series A, Series B or Series C Agreements, and following such
SBIC's respective exercise of its reasonable best efforts to overcome such
Regulatory Requirement, the Company, the Company's Board of Directors and the
other shareholders of the Company shall make all reasonable efforts to take such
action as such SBIC may reasonably deem necessary to permit such Investor to
comply with such Regulatory Requirement.  Such action to be taken may include
the Company's authorization or creation of one or more new classes of interests
and the modification or amendment of the Series A, Series B or Series C
Agreement or the other agreements executed in connection therewith; and, if
compliance with such Regulatory Requirement cannot be satisfied by such efforts,
such SBIC shall be allowed to sell or exchange, convey, dispose or otherwise
transfer (collectively, "Transfer") all or part of its shares of the Company's
capital stock as necessary to comply with such Regulatory Requirement without
such Transfer being subject to

                                       15
<PAGE>

any co-sale rights or rights of first refusal by any other shareholder of the
Company or any other Person (including the Company) under the Stockholders'
Agreement of even date herewith among the Company and certain stockholders of
the Company. Each SBIC shall give written notice to the Company of any such
determination and the action or action necessary to comply with such Regulatory
Requirement, and the Company, the Company's Board of Directors and the
shareholders of the Company shall take all steps necessary to comply with such
determination as expeditiously as possible.

    2.5  Key Man and Directors and Officers Insurance. The Company agrees to
         --------------------------------------------
maintain, as long as such persons serve as executive officers of the Company,
"key man" life insurance on each of Art Zeile and Joel Daly with the Company as
the sole beneficiary of such insurance, in an amount reasonably acceptable to
the Investors. The Company also agrees to maintain directors and officers
liability insurance in an amount reasonably acceptable to the Investors.

3.  Miscellaneous.

    3.1  Successors and Assigns.  Except as otherwise provided herein, the terms
         ----------------------
and conditions of this Agreement shall inure to the benefit of and be binding
upon the respective successors and assigns of the parties (including transferees
of any shares of Registrable Securities). Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

    3.2  Governing Law.  This Agreement shall be governed by and construed
         -------------
under the laws of the State of Colorado as applied to agreements among Colorado
residents entered into and to be performed entirely within Colorado.

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

    3.4  Titles and Subtitles.  The titles and subtitles used in this Agreement
         --------------------
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

    3.5  Notices.  All notices required or permitted hereunder shall be in
         -------
writing and shall be deemed effectively given: (i) upon personal delivery to the
party to be notified, (ii) when sent by confirmed facsimile if sent during
normal business hours of the recipient, if not, then on the next business day;
or (iii) one day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All
communications shall be sent to the address as set forth on the signature page
hereof or at such other address as such party may designate by ten days advance
written notice to the other parties hereto.

                                       16
<PAGE>

    3.6  Expenses.  If any action at law or in equity is necessary to enforce
         --------
or interpret the terms of this Agreement, the prevailing party shall be entitled
to reasonable attorneys' fees, costs and necessary disbursements in addition to
any other relief to which such party may be entitled.

    3.7  Amendments and Waivers. Any term of this Agreement may be amended and
         ----------------------
the observance of any term of this Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively), only with
the written consent of the Company and the holders of at least seventy-five
percent (75%) of the Registrable Securities then outstanding. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any Registrable Securities then outstanding, each future holder of all
such Registrable Securities, and the Company.

    3.8  Severability.  If one or more provisions of this Agreement are held
         ------------
to be unenforceable under applicable law, such provision shall be excluded from
this Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

    3.9  Aggregation of Stock.  All shares of Registrable Securities held or
         --------------------
acquired by affiliated entities or persons shall be aggregated together for the
purpose of determining the availability of any rights under this Agreement.

    3.10 Entire Agreement; Amendment; Waiver.  This Agreement (including the
         -----------------------------------
Exhibits hereto, if any) constitutes the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof.

                                       17
<PAGE>

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

INFLOW, INC.

By:  /s/ Art Zeile
     -------------------------------------
     President and Chief Executive Officer

          Address:  938 Bannock Street
                    Suite 300
                    Denver, CO 80204

INVESTORS:

<TABLE>
<CAPTION>
<S>                                             <C>
First Union Capital Partners, Inc.              Meritage Private Equity Fund, L.P.
                                                Meritage Private Equity Parallel Fund, L.P.
                                                Meritage Entrepreneurs Fund, L.P.

By:  /s/ L. Watts Hamrick, III                      By:  Meritage Investment Partners, LLC
     -------------------------------------
         Senior Vice President

     Address:  301 South College Street         By:  /s/ G. Jackson Tankersley, Jr.
     Charlotte, NC 28288-0732                        --------------------------------------
                                                     Managing Member

                                                     Address:  1600 Wynkoop Street, Suite 300
                                                               Denver, CO  80202

J.P. Morgan Investment Corporation              Sixty Wall Street SBIC Fund, L.P.,
By: /s/ Michael Robinson                        By:  Sixty Wall Street SBIC Corporation, its
     -------------------------------------           General Partner
Name: ____________________________
Title: ___________________________              By:  /s/ Michael Robinson
                                                     ----------------------------------------
                                                Name: _______________________________________
Address: 101 California Street, 37th Floor      Title: ______________________________________
San Francisco, CA  94111
                                                Address: 101 California Street, 37th Floor
                                                         San Francisco, CA  94111

</TABLE>

                                       18
<PAGE>

(Signature Page to Third Amended and Restated Investors' Rights Agreement
continued)

INVESTORS (continued):
Stolberg, Meehan and Scano II, L.P.
  By:  Stolberg, Meehan & Scano LLC,
       General Partner

By: /s/ Peter Van Genderen
    -----------------------------
Name: ___________________________
Title: __________________________

Address: Republic Plaza
         370 17th Street
         Suite 4240
         Denver, CO 80202

/s/ Arthur H. Zeile
----------------------------------------------

/s/ Joel C. Daly
----------------------------------------------

/s/ Stephen O. James
----------------------------------------------

                                       19<PAGE>

                                                                 Exhibit 10.23

                                 INFLOW, INC.
                           2000 STOCK INCENTIVE PLAN
                           -------------------------

                                  Article One

                              GENERAL PROVISIONS
                              ------------------

  I.  PURPOSE OF THE PLAN

      This 2000 Stock Incentive Plan is intended to promote the interests of
Inflow, Inc., a Delaware corporation, by providing eligible persons with the
opportunity to acquire a proprietary interest, or otherwise increase their
proprietary interest, in the Corporation as an incentive for them to remain in
the service of the Corporation.

      Capitalized terms shall have the meanings assigned to such terms in the
attached Appendix.

  II. STRUCTURE OF THE PLAN
      A.  The Plan shall be divided into five separate equity incentive
  programs:
                (i)    the Discretionary Option Grant Program under which
  eligible persons may, at the discretion of the Plan Administrator, be granted
  options to purchase shares of Common Stock,

                (ii)   the Salary Investment Option Grant Program under which
  eligible employees may elect to have a portion of their base salary invested
  each year in special options,

                (iii)  the Stock Issuance Program under which eligible persons
  may, at the discretion of the Plan Administrator, be issued shares of Common
  Stock directly, either through the immediate purchase of such shares or as a
  bonus for services rendered the Corporation (or any Parent or Subsidiary),

                (iv)   the Automatic Option Grant Program under which eligible
  non-employee Board members shall automatically receive options at periodic
  intervals to purchase shares of Common Stock, and

                (v)    the Director Fee Option Grant Program under which
  non-employee Board members may elect to have all or any portion of their
  annual retainer fee otherwise payable in cash applied to a special option
  grant.

      B.  The provisions of Articles One and Seven shall apply to all equity
  programs under the Plan and shall govern the interests of all persons under
  the Plan.
<PAGE>

     III.  ADMINISTRATION OF THE PLAN

           A.  Prior to the Section 12 Registration Date, the Discretionary
Option Grant and Stock Issuance Programs shall be administered by the Board
unless otherwise determined by the Board. The following provisions shall
govern the administration of the Plan:

              (i)    The Board shall have the authority to administer the
     Discretionary Option Grant and Stock Issuance Programs with respect to
     Section 16 Insiders but may delegate such authority in whole or in part to
     the Primary Committee.

              (ii)   Administration of the Discretionary Option Grant and Stock
     Issuance Programs with respect to all other persons eligible to participate
     in those programs may, at the Board's discretion, be vested in the Primary
     Committee or a Secondary Committee, or the Board may retain the power to
     administer those programs with respect to all such persons.

              (iii)  The Board (or Primary Committee) shall select the Section
     16 Insiders and other highly compensated Employees eligible to participate
     in the Salary Investment Option Grant Program. However, all option grants
     under the Salary Investment Option Grant Program shall be made in
     accordance with the terms of that program and the Plan Administrator shall
     not exercise any administrative discretion with respect to option grants
     made under the program.

              (iv)   Administration of the Automatic Option Grant and Director
     Fee Option Grant Programs shall be self-executing in accordance with the
     terms of those programs.

           B.  Each Plan Administrator shall, within the scope of its
     administrative jurisdiction under the Plan, have full power and authority
     subject to the provisions of the Plan:

              (i)    to establish such rules as it may deem appropriate for
     proper administration of the Plan, to make all factual determinations, to
     construe and interpret the provisions of the Plan and the awards thereunder
     and to resolve any and all ambiguities thereunder;

              (ii)   to determine, with respect to awards made under the
     Discretionary Option Grant and Stock Issuance Programs, which eligible
     persons are to receive such awards, the time or times when such awards are
     to be made, the number of shares to be covered by each such award, the
     vesting schedule (if any) applicable to the award, the status of a granted
     option as either an Incentive Option or a Non-Statutory Option and the
     maximum term for which the option is to remain outstanding;

              (iii)  to amend, modify or cancel any outstanding award with the
     consent of the holder or accelerate the vesting of such award; and

              (iv)   to take such other discretionary actions as permitted
     pursuant to the terms of the applicable program.

                                       2
<PAGE>

Decisions of each Plan Administrator within the scope of its administrative
functions under the Plan shall be final and binding on all parties.

        C.  Members of the Primary Committee or any Secondary Committee shall
serve for such period of time as the Board may determine and may be removed by
the Board at any time. The Board may also at any time terminate the functions of
any Secondary Committee and reassume all powers and authority previously
delegated to such committee.

        D.  Service on the Primary Committee or the Secondary Committee shall
constitute service as a Board member, and members of each such committee shall
accordingly be entitled to full indemnification and reimbursement as Board
members for their service on such committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good
faith with respect to the Plan or any options or stock issuances under the Plan.

   IV.  ELIGIBILITY

        A.  The persons eligible to participate in the Discretionary Option
Grant and Stock Issuance Programs are as follows:

              (i)    Employees,

              (ii)   non-employee members of the Board or the board of
   directors of any Parent or Subsidiary, and

              (iii)  consultants and other independent advisors who provide
   services to the Corporation (or any Parent or Subsidiary).

        B.  Only Employees who are Section 16 Insiders or other highly
compensated individuals shall be eligible to participate in the Salary
Investment Option Grant Program.

        C.  Only non-employee Board members shall be eligible to participate
in the Automatic Option Grant and Di rector Fee Option Grant Programs.

   V.   STOCK SUBJECT TO THE PLAN

        A.  The stock issuable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock, including shares repurchased by the
Corporation on the open market. The maximum number of shares of Common Stock
initially reserved for issuance over the term of the Plan shall not exceed seven
million six hundred forty-six thousand six hundred sixty-five (7,646,665)
shares. Such reserve shall consist of (i) the number of shares estimated to
remain available for issuance, as of the Plan Effective Date, under the
Predecessor Plan, including the shares subject to the outstanding options to be
incorporated into the Plan and the additional shares which would otherwise be
available for future grant, plus (ii) an increase of four million four hundred
three thousand five hundred twenty-eight (4,403,528) shares authorized by the
Board subject to stockholder approval prior to the Section 12 Registration Date.

                                       3
<PAGE>

        B.  The number of shares of Common Stock available for issuance under
   the Plan shall automatically increase on the first trading day of January
   each calendar year during the term of the Plan, beginning with the calendar
   year 2001, by an amount equal to three percent (3%) of the total number of
   shares of Common Stock outstanding on the last trading day in December of the
   immediately preceding calendar year, but in no event shall such annual
   increase exceed one million five hundred thousand (1,500,000) shares.

        C.  No one person participating in the Plan may receive options,
   separately exercisable stock appreciation rights and direct stock issuances
   for more than nine hundred fifty thousand (950,000) shares of Common Stock in
   the aggregate per calendar year.

        D.  Shares of Common Stock subject to outstanding options (including
   options incorporated into this Plan from the Predecessor Plan) shall be
   available for subsequent issuance under the Plan to the extent those options
   expire, terminate or are cancelled for any reason prior to exercise in full.
   Unvested shares issued under the Plan and subsequently repurchased by the
   Corporation, at the original exercise or issue price paid per share, pursuant
   to the Corporation's repurchase rights under the Plan shall be added back to
   the number of shares of Common Stock reserved for issuance under the Plan and
   shall accordingly be available for reissuance through one or more subsequent
   options or direct stock issuances under the Plan. However, should the
   exercise price of an option under the Plan be paid with shares of Common
   Stock or should shares of Common Stock otherwise issuable under the Plan be
   withheld by the Corporation in satisfaction of the withholding taxes incurred
   in connection with the exercise of an option or the vesting of a stock
   issuance under the Plan, then the number of shares of Common Stock available
   for issuance under the Plan shall be reduced by the gross number of shares
   for which the option is exercised or which vest under the stock issuance, and
   not by the net number of shares of Common Stock issued to the holder of such
   option or stock issuance. Shares of Common Stock underlying one or more stock
   appreciation rights exercised under the Plan shall not be available for
   subsequent issuance.

        E.  If any change is made to the Common Stock by reason of any stock
   split, stock dividend, recapitalization, combination of shares, exchange of
   shares or other change affecting the outstanding Common Stock as a class
   without the Corporation's receipt of consideration, appropriate adjustments
   shall be made to (i) the maximum number and/or class of securities issuable
   under the Plan, (ii) the number and/or class of securities by which the share
   reserve is to increase each calendar year pursuant to the automatic share
   increase provisions of the Plan, (iii) the number and/or class of securities
   for which any one person may be granted options, separately exercisable stock
   appreciation rights and direct stock issuances under the Plan per calendar
   year, (iv) the number and/or class of securities for which grants are
   subsequently to be made under the Automatic Option Grant Program to new and
   continuing non-employee Board members, (v) the number and/or class of
   securities and the exercise price per share in effect under each outstanding
   option under the Plan and (vi) the number and/or class of securities and
   price per share in effect under each outstanding option incorporated into
   this Plan from the Predecessor Plan. Such adjustments to the outstanding
   options are to be effected in a manner which shall preclude the enlargement
   or dilution of rights and benefits under such options. The adjustments
   determined by the Plan Administrator shall be final, binding and conclusive.

                                       4
<PAGE>

                                  Article Two

                       DISCRETIONARY OPTION GRANT PROGRAM
                       ----------------------------------

      I.  OPTION TERMS

          Each option shall be evidenced by one or more documents in the form
approved by the Plan Administrator; provided, however, that each such document
shall comply with the terms specified below.  Each document evidencing an
Incentive Option shall, in addition, be subject to the provisions of the Plan
applicable to such options.

          A.  Exercise Price.

              1.  The exercise price per share shall be fixed by the Plan
Administrator at the time of the option grant and may be less than, equal to or
greater than the Fair Market Value per share of Common Stock on the option grant
date.

              2.  The exercise price shall become immediately due upon exercise
of the option and shall, subject to the provisions of Section II of Article
Seven and the documents evidencing the option, be payable in one or more of the
following forms:

                  (i)    in cash or check made payable to the Corporation;

                  (ii)   shares of Common Stock held for the requisite period
      necessary to avoid a charge to the Corporation's earnings for financial
      reporting purposes and valued at Fair Market Value on the Exercise Date,
      or

                  (iii)  to the extent the option is exercised for vested
      shares, through a special sale and remittance procedure pursuant to which
      the Optionee shall concurrently provide irrevocable instructions to (a) a
      Corporation-designated brokerage firm to effect the immediate sale of the
      purchased shares and remit to the Corporation, out of the sale proceeds
      available on the settlement date, sufficient funds to cover the aggregate
      exercise price payable for the purchased shares plus all applicable
      Federal, state and local income and employment taxes required to be
      withheld by the Corporation by reason of such exercise and (b) the
      Corporation to deliver the certificates for the purchased shares directly
      to such brokerage firm in order to complete the sale.

          Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

          B.  Exercise and Term of Options.  Each option shall be exercisable at
such time or times, during such period and for such number of shares as shall be
determined by the Plan Administrator and set forth in the documents evidencing
the option. However, no option shall have a term in excess of ten (10) years
measured from the option grant date.

                                       5
<PAGE>

          C.  Cessation of Service.

              1.  The following provisions shall govern the exercise of any
options outstanding at the time of the Optionee's cessation of Service or death:

                  (i)    Any option outstanding at the time of the Optionee's
     cessation of Service for any reason shall remain exercisable for such
     period of time thereafter as shall be determined by the Plan Administrator
     and set forth in the documents evidencing the option, but no such option
     shall be exercisable after the expiration of the option term.

                  (ii)   Any option exercisable in whole or in part by the
     Optionee at the time of death may be subsequently exercised by his or her
     Beneficiary.

                  (iii)  During the applicable post-Service exercise period,
the option may not be exercised in the aggregate for more than the number of
vested shares for which the option is exercisable on the date of the Optionee's
cessation of Service. Upon the expiration of the applicable exercise period or
(if earlier) upon the expiration of the option term, the option shall terminate
and cease to be outstanding for any vested shares for which the option has not
been exercised. However, the option shall, immediately upon the Optionee's
cessation of Service, terminate and cease to be outstanding to the extent the
option is not otherwise at that time exercisable for vested shares.

                  (iv)    Should the Optionee's Service be terminated for
     Misconduct or should the Optionee engage in Misconduct while his or her
     options are outstanding, then all such options shall terminate immediately
     and cease to be outstanding.

              2.  The Plan Administrator shall have complete discretion,
exercisable either at the time an option is granted or at any time while the
option remains outstanding:

                  (i)   to extend the period of time for which the option is
     to remain exercisable following the Optionee's cessation of Service to such
     period of time as the Plan Administrator shall deem appropriate, but in no
     event beyond the expiration of the option term, and/or

                  (ii)  to permit the option to be exercised, during the
     applicable post-Service exercise period, for one or more additional
     installments in which the Optionee would have vested had the Optionee
     continued in Service.

          D.  Stockholder Rights.  The holder of an option shall have no
stockholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become a
holder of record of the purchased shares.

          E.  Repurchase Rights.  The Plan Administrator shall have the
discretion to grant options which are exercisable for unvested shares of Common
Stock. Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to

                                       6
<PAGE>

repurchase, at the exercise price paid per share, any or all of those unvested
shares. The terms upon which such repurchase right shall be exercisable
(including the period and procedure for exercise and the appropriate vesting
schedule for the purchased shares) shall be established by the Plan
Administrator and set forth in the document evidencing such repurchase right.

          F.  Limited Transferability of Options.  During the lifetime of the
Optionee, Incentive Options shall be exercisable only by the Optionee and shall
not be assignable or transferable other than to a Beneficiary following the
Optionee's death. Non-Statutory Options shall be subject to the same
restrictions, except that a Non-Statutory Option may, to the extent permitted by
the Plan Administrator, be assigned in whole or in part during the Optionee's
lifetime (i) as a gift to one or more members of the Optionee's immediate
family, to a trust in which Optionee and/or one or more such family members hold
more than fifty percent (50%) of the beneficial interest or to an entity in
which more than fifty percent (50%) of the voting interests are owned by one or
more such family members or (ii) pursuant to a domestic relations order. The
terms applicable to the assigned portion shall be the same as those in effect
for the option immediately prior to such assignment and shall be set forth in
such documents issued to the assignee as the Plan Administrator may deem
appropriate.

     II.  INCENTIVE OPTIONS

          The terms specified below shall be applicable to all Incentive
Options.  Except as modified by the provisions of this Section II, all the
provisions of Articles One, Two and Six shall be applicable to Incentive
Options.  Options which are specifically designated as Non-Statutory Options
when issued under the Plan shall not be subject to the terms of this Section II.

          A.  Eligibility.  Incentive Options may only be granted to Employees.

          B.  Exercise Price.  The exercise price per share shall not be less
than one hundred percent (100%) of the Fair Market Value per share of Common
Stock on the option grant date.

          C.  Dollar Limitation.  The aggregate Fair Market Value of the
shares of Common Stock (determined as of the respective date or dates of grant)
for which one or more options granted to any Employee under the Plan (or any
other option plan of the Corporation or any Parent or Subsidiary) may for the
first time become exercisable as Incentive Options during any one calendar year
shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the
extent the Employee holds two (2) or more such options which become exercisable
for the first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

          D.  10% Stockholder.  If any Employee to whom an Incentive Option is
granted is a 10% Stockholder, then the exercise price per share shall not be
less than one hundred ten percent (110%) of the Fair Market Value per share of
Common Stock on the option grant date, and the option term shall not exceed five
(5) years measured from the option grant date.

                                       7
<PAGE>

    III.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A.  Each option outstanding at the time of a Change in Control but not
otherwise fully-vested shall automatically accelerate so that each such option
shall, immediately prior to the effective date of the Change in Control, become
exercisable for all of the shares of Common Stock at the time subject to that
option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. However, an outstanding option shall not so accelerate
if and to the extent: (i) such option is, in connection with the Change in
Control, assumed or otherwise continued in full force and effect by the
successor corporation (or parent thereof) pursuant to the terms of the Change in
Control, (ii) such option is replaced with a cash incentive program of the
successor corporation which preserves the spread existing at the time of the
Change in Control on the shares of Common Stock for which the option is not
otherwise at that time exercisable and provides for subsequent payout in
accordance with the same vesting schedule applicable to those option shares or
(iii) the acceleration of such option is subject to other limitations imposed by
the Plan Administrator at the time of the option grant. Each option outstanding
at the time of the Change in Control shall terminate as provided in Section
III.C. of this Article Two.

          B.  All outstanding repurchase rights shall also terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, in the event of any Change in Control, except to
the extent: (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) or otherwise continue in full force and effect
pursuant to the terms of the Change in Control or (ii) such accelerated vesting
is precluded by other limitations imposed by the Plan Administrator at the time
the repurchase right is issued.

          C.  Immediately following the consummation of the Change in Control,
all outstanding options shall terminate and cease to be outstanding, except to
the extent assumed by the successor corporation (or parent thereof) or otherwise
expressly continued in full force and effect pursuant to the terms of the Change
in Control.

          D.  Each option which is assumed in connection with a Change in
Control shall be appropriately adjusted, immediately after such Change in
Control, to apply to the number and class of securities which would have been
issuable to the Optionee in consummation of such Change in Control had the
option been exercised immediately prior to such Change in Control. Appropriate
adjustments to reflect such Change in Control shall also be made to (i) the
exercise price payable per share under each outstanding option, provided the
aggregate exercise price payable for such securities shall remain the same, (ii)
the maximum number and/or class of securities available for issuance over the
remaining term of the Plan and (iii) the maximum number and/or class of
securities for which any one person may be granted options, separately
exercisable stock appreciation rights and direct stock issuances under the Plan
per calendar year. To the extent the actual holders of the Corporation's
outstanding Common Stock receive cash consideration for their Common Stock in
consummation of the Change in Control, the successor corporation may, in
connection with the assumption of the outstanding options, substitute one or
more shares of its own common stock with a fair market value equivalent to the
cash consideration paid per share of Common Stock in such Change in Control.

                                       8
<PAGE>

          E.  The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Change in Control,
whether or not those options are assumed or otherwise continued in full force
and effect pursuant to the terms of the Change in Control. Any such option shall
accordingly become exercisable, immediately prior to the effective date of such
Change in Control, for all of the shares of Common Stock at the time subject to
that option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. In addition, the Plan Administrator may at any time
provide that one or more of the Corporation's repurchase rights shall not be
assignable in connection with such Change in Control and shall terminate upon
the consummation of such Change in Control.

          F.  The Plan Administrator may at any time provide that one or more
options will automatically accelerate upon an Involuntary Termination of the
Optionee's Service within a designated period (not to exceed eighteen (18)
months) following the effective date of any Change in Control in which those
options do not otherwise accelerate. Any options so accelerated shall remain
exercisable for fully-vested shares until the earlier of (i) the expiration of
the option term or (ii) the expiration of the one (1) year period measured from
the effective date of the Involuntary Termination. In addition, the Plan
Administrator may at any time provide that one or more of the Corporation's
repurchase rights shall immediately terminate upon such Involuntary Termination.

          G.  The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Hostile Take-Over.
Any such option shall become exercisable, immediately prior to the effective
date of such Hostile Take-Over, for all of the shares of Common Stock at the
time subject to that option and may be exercised for any or all of those shares
as fully-vested shares of Common Stock. In addition, the Plan Administrator may
at any time provide that one or more of the Corporation's repurchase rights
shall terminate automatically upon the consummation of such Hostile Take-Over.
Alternatively, the Plan Administrator may condition such automatic acceleration
and termination upon an Involuntary Termination of the Optionee's Service within
a designated period (not to exceed eighteen (18) months) following the effective
date of such Hostile Take-Over. Each option so accelerated shall remain
exercisable for fully-vested shares until the expiration or sooner termination
of the option term.

          H.  The portion of any Incentive Option accelerated in connection with
a Change in Control or Hostile Take Over shall remain exercisable as an
Incentive Option only to the extent the applicable One Hundred Thousand Dollar
($100,000) limitation is not exceeded. To the extent such dollar limitation is
exceeded, the accelerated portion of such option shall be exercisable as a Non-
Statutory Option under the Federal tax laws.

     IV.  STOCK APPRECIATION RIGHTS

          The Plan Administrator may, subject to such conditions as it may
determine, grant to selected Optionees stock appreciation rights which will
allow the holders of those rights to elect between the exercise of the
underlying option for shares of Common Stock and the surrender of that option in
exchange for a distribution from the Corporation in an amount equal to the
excess of (a) the Option Surrender Value of the number of shares for which the
option is surrendered over (b) the aggregate exercise price payable for such
shares.  The distribution may

                                       9
<PAGE>

be made in shares of Common Stock valued at Fair Market Value on the option
surrender date, in cash, or partly in shares and partly in cash, as the Plan
Administrator shall in its sole discretion deem appropriate.

                                       10
<PAGE>

                                 ARTICLE THREE

                    SALARY INVESTMENT OPTION GRANT PROGRAM
                    --------------------------------------

      I.  OPTION GRANTS

          The Primary Committee may implement the Salary Investment Option Grant
Program for one or more calendar years beginning after the Plan Effective Date
and select the Section 16 Insiders and other highly compensated Employees
eligible to participate in the Salary Investment Option Grant Program for each
such calendar year. Each selected individual who elects to participate in the
Salary Investment Option Grant Program must, prior to the start of each calendar
year of participation, file with the Plan Administrator (or its designate) an
irrevocable authorization directing the Corporation to reduce his or her base
salary for that calendar year by an amount not less than five thousand Dollars
($5,000) nor more than seventy five thousand Dollars ($75,000). Each individual
who files such a timely election shall be granted an option under the Salary
Investment Grant Program on the first trading day in January for the calendar
year for which the salary reduction is to be in effect.

      II. OPTION TERMS

          Each option shall be a Non-Statutory Option evidenced by one or more
documents in the form approved by the Plan Administrator; provided, however,
that each such document shall comply with the terms specified below.

          A.  Exercise Price.

              1.  The exercise price per share shall be thirty-three and one-
third percent (33-1/3%) of the Fair Market Value per share of Common Stock on
the option grant date.

              2.  The exercise price shall become immediately due upon exercise
of the option and shall be payable in one or more of the alternative forms
authorized under the Discretionary Option Grant Program. Except to the extent
the sale and remittance procedure specified thereunder is utilized, payment of
the exercise price for the purchased shares must be made on the Exercise Date.

          B.  Number of Option Shares. The number of shares of Common Stock
subject to the option shall be determined pursuant to the following formula
(rounded down to the nearest whole number):

              X = A / (B x 66-2/3%), where

              X is the number of option shares,

              A is the dollar amount of the approved reduction in the Optionee's
          base salary for the calendar year, and

                                       11
<PAGE>

               B is the Fair Market Value per share of Common Stock on the
           option grant date.

           C.  Exercise and Term of Options.  The option shall become
exercisable in a series of twelve (12) successive equal monthly installments
upon the Optionee's completion of each calendar month of Service in the calendar
year for which the salary reduction is in effect. Each option shall have a
maximum term of ten (10) years measured from the option grant date.

           D.  Cessation of Service.  Each option outstanding at the time of
the Optionee's cessation of Service shall remain exercisable, for any or all of
the shares for which the option is exercisable at the time of such cessation of
Service, until the earlier of (i) the expiration of the option term or (ii) the
expiration of the three (3)-year period following the Optionee's cessation of
Service. To the extent the option is held by the Optionee at the time of his or
her death, the option may be exercised by his or her Beneficiary. However, the
option shall, immediately upon the Optionee's cessation of Service, terminate
and cease to remain outstanding with respect to any and all shares of Common
Stock for which the option is not otherwise at that time exercisable.

     III.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

           A.  In the event of any Change in Control or Hostile Take-Over while
the Optionee remains in Service, each outstanding option shall automatically
accelerate so that each such option shall, immediately prior to the effective
date of the Change in Control or Hostile Take-Over, become fully exercisable
with respect to the total number of shares of Common Stock at the time subject
to such option and may be exercised for any or all of those shares as fully-
vested shares of Common Stock. Each such option accelerated in connection with a
Change in Control shall terminate upon the Change in Control, except to the
extent assumed by the successor corporation (or parent thereof) or otherwise
continued in full force and effect pursuant to the terms of the Change in
Control. Each such option accelerated in connection with a Hostile Take-Over
shall remain exercisable until the expiration or sooner termination of the
option term.

           B.  Each option which is assumed in connection with a Change in
Control shall be appropriately adjusted to apply to the number and class of
securities which would have been issuable to the Optionee in consummation of
such Change in Control had the option been exercised immediately prior to such
Change in Control. Appropriate adjustments shall also be made to the exercise
price payable per share under each outstanding option, provided the aggregate
exercise price payable for such securities shall remain the same. To the extent
the actual holders of the Corporation's outstanding Common Stock receive cash
consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of the
outstanding options, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of
Common Stock in such Change in Control.

           C.  Upon the occurrence of a Hostile Take-Over, the Optionee shall
have a thirty (30)-day period in which to surrender to the Corporation each of
his or her outstanding options. The Optionee shall in return be entitled to a
cash distribution from the Corporation in an

                                       12
<PAGE>

amount equal to the excess of (i) the Option Surrender Value of the shares of
Common Stock at the time subject to each surrendered option (whether or not the
Optionee is otherwise at the time vested in those shares) over (ii) the
aggregate exercise price payable for such shares. Such cash distribution shall
be paid within five (5) days following the surrender of the option to the
Corporation.

     IV.  REMAINING TERMS

          The remaining terms of each option granted under the Salary Investment
Option Grant Program shall be the same as the terms in effect for options made
under the Discretionary Option Grant Program.

                                       13
<PAGE>

                                 Article Four

                            STOCK ISSUANCE PROGRAM
                            ----------------------

      I.  STOCK ISSUANCE TERMS

          Shares of Common Stock may be issued under the Stock Issuance Program
through direct and immediate issuances without any intervening options.  Shares
of Common Stock may also be issued under the Stock Issuance Program pursuant to
share right awards which entitle the recipients to receive those shares upon the
attainment of designated performance goals or Service requirements.  Each such
award shall be evidenced by one or more documents which comply with the terms
specified below.

          A.  Purchase Price.

              1.  The purchase price per share of Common Stock subject to
direct issuance shall be fixed by the Plan Administrator and may be less than,
equal to or greater than the Fair Market Value per share of Common Stock on the
issue date.

              2.  Subject to the provisions of Section II of Article Seven,
shares of Common Stock may be issued under the Stock Issuance Program for any of
the following items of consideration which the Plan Administrator may deem
appropriate in each individual instance:

                  (i)   cash or check made payable to the Corporation, or

                  (ii)  past services rendered to the Corporation (or any
      Parent or Subsidiary).

          B.  Vesting/Issuance Provisions.

              1.  The Plan Administrator may issue shares of Common Stock which
are fully and immediately vested upon issuance or which are to vest in one or
more installments over the Participant's period of Service or upon attainment of
specified performance objectives. Alternatively, the Plan Administrator may
issue share right awards which shall entitle the recipient to receive a
specified number of vested shares of Common Stock upon the attainment of one or
more performance goals or Service requirements established by the Plan
Administrator.

              2.  Any new, substituted or additional securities or other
property (including money paid other than as a regular cash dividend) which the
Participant may have the right to receive with respect to his or her unvested
shares of Common Stock by reason of any stock dividend, stock split,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration shall be issued subject to (i) the same vesting
requirements applicable to the Participant's unvested shares of Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

                                       14
<PAGE>

          3.  The Participant shall have full stockholder rights with respect
to the issued shares of Common Stock, whether or not the Participant's interest
in those shares is vested. Accordingly, the Participant shall have the right to
vote such shares and to receive any regular cash dividends paid on such shares.

          4.  Should the Participant cease to remain in Service while holding
one or more unvested shares of Common Stock, or should the performance
objectives not be attained with respect to one or more such unvested shares of
Common Stock, then those shares shall be immediately surrendered to the
Corporation for cancellation, and the Participant shall have no further
stockholder rights with respect to those shares. To the extent the surrendered
shares were previously issued to the Participant for consideration paid in cash
or cash equivalent (including the Participant's purchase-money indebtedness),
the Corporation shall repay to the Participant the cash consideration paid for
the surrendered shares and shall cancel the unpaid principal balance of any
outstanding purchase-money note of the Participant attributable to the
surrendered shares.

          5.  The Plan Administrator may waive the surrender and cancellation
of one or more unvested shares of Common Stock (or other assets attributable
thereto) which would otherwise occur upon the cessation of the Participant's
Service or the non-attainment of the performance objectives applicable to those
shares. Such waiver shall result in the immediate vesting of the Participant's
interest in the shares of Common Stock as to which the waiver applies. Such
waiver may be effected at any time, whether before or after the Participant's
cessation of Service or the attainment or non-attainment of the applicable
performance objectives.

          6.  Outstanding share right awards shall automatically terminate, and
no shares of Common Stock shall actually be issued in satisfaction of those
awards, if the performance goals or Service requirements established for such
awards are not attained. The Plan Administrator, however, shall have the
authority to issue shares of Common Stock in satisfaction of one or more
outstanding share right awards as to which the designated performance goals or
Service requirements are not attained.

     II.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A.  All of the Corporation's outstanding repurchase rights shall
terminate automatically, and all the shares of Common Stock subject to those
terminated rights shall immediately vest in full, in the event of any Change in
Control, except to the extent (i) those repurchase rights are assigned to the
successor corporation (or parent thereof) or otherwise continue in full force
and effect pursuant to the terms of the Change in Control or (ii) such
accelerated vesting is precluded by other limitations imposed by the Plan
Administrator at the time the repurchase right is issued.

          B.  The Plan Administrator may at any time provide for the automatic
termination of one or more of those outstanding repurchase rights and the
immediate vesting of the shares of Common Stock subject to those terminated
rights upon (i) a Change in Control or Hostile Take-Over or (ii) an Involuntary
Termination of the Participant's Service within a designated period (not to
exceed eighteen (18) months) following the effective date of any

                                       15
<PAGE>

Change in Control or Hostile Take-Over in which those repurchase rights are
assigned to the successor corporation (or parent thereof) or otherwise continue
in full force and effect.

      III.  SHARE ESCROW/LEGENDS

            Unvested shares may, in the Plan Administrator's discretion, be held
in escrow by the Corporation until the Participant's interest in such shares
vests or may be issued directly to the Participant with restrictive legends on
the certificates evidencing those unvested shares.

                                       16
<PAGE>

                                 Article Five

                        AUTOMATIC OPTION GRANT PROGRAM
                        ------------------------------

    I.  OPTION TERMS

        A.  Grant Dates.  Options shall be made on the dates specified below:

            1.  Each individual who is first elected or appointed as a non-
employee Board member at any time after the Plan Effective Date shall
automatically be granted, on the date of such initial election or appointment, a
Non-Statutory Option to purchase fifteen thousand (15,000) shares of Common
Stock, provided that individual has not previously been in the employ of the
Corporation (or any Parent or Subsidiary).

            2.  On the date of each Annual Stockholders Meeting beginning with
the 2001 Annual Stockholder Meeting, each individual who is to continue to serve
as a non-employee Board member shall automatically be granted a Non-Statutory
Option to purchase five thousand (5,000) shares of Common Stock, provided that
individual has served as a non-employee Board member for at least six (6)
months.

        B.  Exercise Price.

            1.  The exercise price per share shall be equal to one hundred
percent (100%) of the Fair Market Value per share of Common Stock on the option
grant date.

            2.  The exercise price shall be payable in one or more of the
alternative forms authorized under the Discretionary Option Grant Program.
Except to the extent the sale and remittance procedure specified thereunder is
utilized, payment of the exercise price for the purchased shares must be made on
the Exercise Date.

        C.  Option Term. Each option shall have a term of ten (10) years
measured from the option grant date.

        D.  Exercise and Vesting of Options.  Each option shall be immediately
exercisable for any or all of the option shares.  However, any unvested shares
purchased under the option shall be subject to repurchase by the Corporation, at
the exercise price paid per share, upon the Optionee's cessation of Board
service prior to vesting in those shares. Each option shall vest, and the
Corporation's repurchase right shall lapse upon the Optionee's completion of one
(1) year of Board service measured from the option grant date.

                                       17
<PAGE>

        E.  Cessation of Board Service. The following provisions shall govern
the exercise of any options outstanding at the time of the Optionee's cessation
of Board service:

                (i)   Any option outstanding at the time of the Optionee's
     cessation of Board service for any reason shall remain exercisable for a
     twelve (12)-month period following the date of such cessation of Board
     service, but in no event shall such option be exercisable after the
     expiration of the option term.

                (ii)  Any option exercisable in whole or in part by the Optionee
     at the time of death may be subsequently exercised by his or her
     Beneficiary.

                (iii) Following the Optionee's cessation of Board service, the
     option may not be exercised in the aggregate for more than the number of
     shares for which the option was exercisable on the date of such cessation
     of Board service. Upon the expiration of the applicable exercise period or
     (if earlier) upon the expiration of the option term, the option shall
     terminate and cease to be outstanding for any vested shares for which the
     option has not been exercised. However, the option shall, immediately upon
     the Optionee's cessation of Board service, terminate and cease to be
     outstanding for any and all shares for which the option is not otherwise at
     that time exercisable.

                (iv)  However, should the Optionee cease to serve as a Board
     member by reason of death or Permanent Disability, then all shares at the
     time subject to the option shall immediately vest so that such option may,
     during the twelve (12)-month exercise period following such cessation of
     Board service, be exercised for all or any portion of those shares as
     fully-vested shares of Common Stock.

II.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

        A.  In the event of any Change in Control or Hostile Take-Over, the
shares of Common Stock at the time subject to each outstanding option but not
otherwise vested shall automatically vest in full so that each such option may,
immediately prior to the effective date of such Change in Control or Hostile
Take-Over, became fully exercisable for all of the shares of Common Stock at the
time subject to such option and maybe exercised for all or any of those shares
as fully-vested shares of Common Stock. Each such option accelerated in
connection with a Change in Control shall terminate upon the Change in Control,
except to the extent assumed by the successor corporation (or parent thereof) or
otherwise continued in full force and effect pursuant to the terms of the Change
in Control. Each such option accelerated in connection with a Hostile Take-Over
shall remain exercisable until the expiration or sooner termination of the
option term.

        B.  All outstanding repurchase rights shall automatically terminate and
the shares of Common Stock subject to those terminated rights shall immediately
vest in full, in the event of any Change in Control or Hostile Take-Over.

        C.  Upon the occurrence of a Hostile Take-Over, the Optionee shall have
a thirty (30)-day period in which to surrender to the Corporation each of his or
her outstanding options. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an

                                       18
<PAGE>

amount equal to the excess of (i) the Option Surrender Value of the shares of
Common Stock at the time subject to each surrendered option (whether or not the
option is otherwise at the time exercisable for those shares) over (ii) the
aggregate exercise price payable for such shares. Such cash distribution shall
be paid within five (5) days following the surrender of the option to the
Corporation.

        D.  Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted to apply to the number and class of securities
which would have been issuable to the Optionee in consummation of such Change in
Control had the option been exercised immediately prior to such Change in
Control. Appropriate adjustments shall also be made to the exercise price
payable per share under each outstanding option, provided the aggregate exercise
price payable for such securities shall remain the same. To the extent the
actual holders of the Corporation's outstanding Common Stock receive cash
consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of the
outstanding options, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of
Common Stock in such Change in Control.

  III.  REMAINING TERMS

        The remaining terms of each option granted under the Automatic Option
Grant Program shall be the same as the terms in effect for options made under
the Discretionary Option Grant Program.

                                       19
<PAGE>

                                  ARTICLE SIX

                       DIRECTOR FEE OPTION GRANT PROGRAM
                       ---------------------------------

      I.  OPTION GRANTS

          The Board may implement the Director Fee Option Grant Program as of
the first day of any calendar years beginning after the Underwriting Date.  Upon
such implementation of the Program, each non-employee Board member may elect to
apply all or any portion of the annual retainer fee otherwise payable in cash
for his or her service on the Board to the acquisition of a special option grant
under this Director Fee Option Grant Program.  Such election must be filed with
the Corporation's Chief Financial Officer prior to the first day of the calendar
year for which the election is to be in effect.  Each non-employee Board member
who files such a timely election with respect to the annul retainer fee shall
automatically be granted an option under this Director Fee Option Grant Program
on the first trading day in January in the calendar year for which that fee
would otherwise be payable.

     II.  OPTION TERMS

          Each option shall be a Non-Statutory Option governed by the terms and
conditions specified below.

          A.  Exercise Price.

              1.  The exercise price per share shall be thirty-three and one-
third percent (33-1/3%) of the Fair Market Value per share of Common Stock on
the option grant date.

              2.  The exercise price shall become immediately due upon exercise
of the option and shall be payable in one or more of the alternative forms
authorized under the Discretionary Option Grant Program. Except to the extent
the sale and remittance procedure specified thereunder is utilized, payment of
the exercise price for the purchased shares must be made on the Exercise Date.

          B.  Number of Option Shares. The number of shares of Common Stock
subject to the option shall be determined pursuant to the following formula
(rounded down to the nearest whole number):

              X = A / (B x 66-2/3%), where

              X is the number of option shares,

              A is the portion of the annual retainer fee subject to the non-
          employee Board member's election, and

              B is the Fair Market Value per share of Common Stock on the option
          grant date.

                                       20
<PAGE>

        C.  Exercise and Term of Options. The option shall become exercisable in
a series of twelve (12) successive equal monthly installments upon the
Optionee's completion of each month of Board service during the calendar year in
which the option is granted. Each option shall have a maximum term of ten (10)
years measured from the option grant date.

        D.  Cessation of Board Service. Should the Optionee cease Board service
for any reason (other than death or Permanent Disability) while holding one or
more options, then each such option shall remain exercisable, for any or all of
the shares for which the option is exercisable at the time of such cessation of
Board service, until the earlier of (i) the expiration of the ten (10)-year
option term or (ii) the expiration of the three (3)-year period measured from
the date of such cessation of Board service. However, each option held by the
Optionee at the time of such cessation of Board service shall immediately
terminate and cease to remain outstanding with respect to any and all shares of
Common Stock for which the option is not otherwise at that time exercisable.

        E.  Death or Permanent Disability. Should the Optionee's service as a
Board member cease by reason of death or Permanent Disability, then each option
held by such Optionee shall immediately become exercisable for all the shares of
Common Stock at the time subject to that option, and the option may be exercised
for any or all of those shares as fully-vested shares until the earlier of (i)
the expiration of the ten (10)-year option term or (ii) the expiration of the
three (3)-year period measured from the date of such cessation of Board service.

        Should the Optionee die after cessation of Board service but while
holding one or more options, then each such option may be exercised, for any or
all of the shares for which the option is exercisable at the time of the
Optionee's cessation of Board service (less any shares subsequently purchased by
Optionee prior to death), by the Optionee's Beneficiary. Such right of exercise
shall lapse, and the option shall terminate, upon the earlier of (i) the
expiration of the ten (10)-year option term or (ii) the three (3)-year period
measured from the date of the Optionee's cessation of Board service.

  III.  CHANGE IN CONTROL/HOSTILE TAKE-OVER

        A.  In the event of any Change in Control or Hostile Take-Over while the
Optionee remains in Board service, each outstanding option held by such Optionee
shall automatically accelerate so that each such option shall, immediately prior
to the effective date of the Change in Control or Hostile Take-Over, become
fully exercisable with respect to the total number of shares of Common Stock at
the time subject to such option and may be exercised for any or all of those
shares as fully-vested shares of Common Stock.  Each such option accelerated in
connection with a Change in Control shall terminate upon the Change in Control,
except to the extent assumed by the successor corporation (or parent thereof) or
otherwise expressly continued in full force and effect pursuant to the terms of
the Change in Control.  Each such option accelerated in connection with a
Hostile Take-Over shall remain exercisable until the expiration or sooner
termination of the option term.

        B.  Upon the occurrence of a Hostile Take-Over, the Optionee shall have
a thirty (30)-day period in which to surrender to the Corporation each of his or
her outstanding options. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an

                                       21
<PAGE>

amount equal to the excess of (i) the Option Surrender Value of the shares of
Common Stock at the time subject to each surrendered option (whether or not the
Optionee is otherwise at the time vested in those shares) over (ii) the
aggregate exercise price payable for such shares. Such cash distribution shall
be paid within five (5) days following the surrender of the option to the
Corporation.

        C.  Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted, immediately after such Change in Control, to
apply to the number and class of securities which would have been issuable to
the Optionee in consummation of such Change in Control had the option been
exercised immediately prior to such Change in Control. Appropriate adjustments
shall also be made to the exercise price payable per share under each
outstanding option, provided the aggregate exercise price payable for such
securities shall remain the same. To the extent the actual holders of the
Corporation's outstanding Common Stock receive cash consideration for their
Common Stock in consummation of the Change in Control, the successor corporation
may, in connection with the assumption of the outstanding options under the
Director Fee Option Grant Program, substitute one or more shares of its own
common stock with a fair market value equivalent to the cash consideration paid
per share of Common Stock in such Change in Control.

   IV.  REMAINING TERMS

        The remaining terms of each option granted under this Director Fee
Option Grant Program shall be the same as the terms in effect for options made
under the Discretionary Option Grant Program.

                                       22
<PAGE>

                                 ARTICLE SEVEN

                                 MISCELLANEOUS
                                 -------------

      I.  NO IMPAIRMENT OF AUTHORITY

          Outstanding awards shall in no way affect the right of the Corporation
to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

     II.  FINANCING

          The Plan Administrator may permit any Optionee or Participant to pay
the option exercise price under the Discretionary Option Grant Program or the
purchase price of shares issued under the Stock Issuance Program by delivering a
full-recourse, interest bearing promissory note payable in one or more
installments.  The terms of any such promissory note (including the interest
rate and the terms of repayment) shall be established by the Plan Administrator
in its sole discretion.  In no event may the maximum credit available to the
Optionee or Participant exceed the sum of (i) the aggregate option exercise
price or purchase price payable for the purchased shares (less the par value of
such shares) plus (ii) any Federal, state and local income and employment tax
liability incurred by the Optionee or the Participant in connection with the
option exercise or share purchase.

   III.  TAX WITHHOLDING

         A.  The Corporation's obligation to deliver shares of Common Stock upon
the exercise of options or the issuance or vesting of such shares under the Plan
shall be subject to the satisfaction of all applicable Federal, state and local
income and employment tax withholding requirements.

         B.  The Plan Administrator may, in its discretion, provide any or all
holders of Non-Statutory Options or unvested shares of Common Stock under the
Plan with the right to use shares of Common Stock in satisfaction of all or part
of the Withholding Taxes incurred by such holders in connection with the
exercise of their options or the vesting of their shares. Such right may be
provided to any such holder in either or both of the following formats:

             Stock Withholding:  The election to have the Corporation withhold,
from the shares of Common Stock otherwise issuable upon the exercise of such
Non-Statutory Option or the vesting of such shares, a portion of those shares
with an aggregate Fair Market Value equal to the percentage of the Withholding
Taxes (not to exceed one hundred percent (100%)) designated by the holder.

             Stock Delivery:  The election to deliver to the Corporation, at the
time the Non-Statutory Option is exercised or the shares vest, one or more
shares of Common Stock previously acquired by such holder (other than in
connection with the option exercise or share vesting triggering the Withholding
Taxes) with an aggregate Fair Market Value equal to the percentage of the Taxes
(not to exceed one hundred percent (100%)) designated by the holder.

                                       23
<PAGE>

   IV.  EFFECTIVE DATE AND TERM OF THE PLAN

        A.  The Plan was adopted by the Board on _______, 2000. The Plan shall
become effective immediately upon the Plan Effective Date. However, the Salary
Investment Option Grant and Director Fee Option Grant Programs shall not be
implemented until such time as the Primary Committee or the Board may deem
appropriate. Options may be granted under the Discretionary Option Grant Program
at any time on or after the Plan Effective Date. However, no options granted
under the Plan may be exercised, and no shares shall be issued under the Plan,
until the Plan is approved by the Corporation's stockholders. If such
stockholder approval is not obtained within twelve (12) months after the Plan
Effective Date, then all options previously granted under this Plan shall
terminate and cease to be outstanding, and no further options shall be granted
and no shares shall be issued under the Plan.

        B.  The Plan shall serve as the successor to the Predecessor Plan, and
no further options or direct stock issuances shall be made under the Predecessor
Plan after the Plan Effective Date. All options outstanding under the
Predecessor Plan on the Plan Effective Date shall be incorporated into the Plan
at that time and shall be treated as outstanding options under the Plan.
However, each outstanding option so incorporated shall continue to be governed
solely by the terms of the documents evidencing such option, and no provision of
the Plan shall be deemed to affect or otherwise modify the rights or obligations
of the holders of such incorporated options with respect to their acquisition of
shares of Common Stock.

        C.  One or more provisions of the Plan, including (without limitation)
the option/vesting acceleration provisions of Article Two relating to Changes in
Control, may, in the Plan Administrator's discretion, be extended to one or more
options incorporated from the Predecessor Plan which do not otherwise contain
such provisions.

        D.  The Plan shall terminate upon the earliest of (i) March 31, 2010,
(ii) the date on which all shares available for issuance under the Plan shall
have been issued as fully-vested shares or (iii) the termination of all
outstanding options in connection with a Change in Control. Upon such plan
termination, all outstanding options and unvested stock issuances shall
thereafter continue to have force and effect in accordance with the provisions
of the documents evidencing such grants or issuances.

    V.  AMENDMENT OF THE PLAN

        A.  The Board shall have complete and exclusive power and authority to
amend or modify the Plan in any or all respects. However, no such amendment or
modification shall adversely affect the rights and obligations with respect to
stock options or unvested stock issuances at the time outstanding under the Plan
unless the Optionee or the Participant consents to such amendment or
modification. In addition, certain amendments may require stockholder approval
pursuant to applicable laws or regulations.

        B.  Options to purchase shares of Common Stock may be granted under the
Discretionary Option Grant and Salary Investment Option Grant Programs and
shares of Common Stock may be issued under the Stock Issuance Program that are
in each instance in
                                       24
<PAGE>

excess of the number of shares then available for issuance under the Plan,
provided any excess shares actually issued under those programs shall be held in
escrow until there is obtained stockholder approval of an amendment sufficiently
increasing the number of shares of Common Stock available for issuance under the
Plan. If such stockholder approval is not obtained within twelve (12) months
after the date the first such excess issuances are made, then (i) any
unexercised options granted on the basis of such excess shares shall terminate
and cease to be outstanding and (ii) the Corporation shall promptly refund to
the Optionees and the Participants the exercise or purchase price paid for any
excess shares issued under the Plan and held in escrow, together with interest
(at the applicable Short Term Federal Rate) for the period the shares were held
in escrow, and such shares shall thereupon be automatically cancelled and cease
to be outstanding.

     VI.  USE OF PROCEEDS

          Any cash proceeds received by the Corporation from the sale of shares
of Common Stock under the Plan shall be used for general corporate purposes.

    VII.  REGULATORY APPROVALS

          A.  The implementation of the Plan, the granting of any stock option
under the Plan and the issuance of any shares of Common Stock (i) upon the
exercise of any granted option or (ii) under the Stock Issuance Program shall be
subject to the Corporation's procurement of all approvals and permits required
by regulatory authorities having jurisdiction over the Plan, the stock options
granted under it and the shares of Common Stock issued pursuant to it.

          B.  No shares of Common Stock or other assets shall be issued or
delivered under the Plan unless and until there shall have been compliance with
all applicable requirements of Federal and state securities laws, including the
filing and effectiveness of the Form S-8 registration statement for the shares
of Common Stock issuable under the Plan, and all applicable listing requirements
of any stock exchange (or the Nasdaq National Market, if applicable) on which
Common Stock is then listed for trading.

   VIII.  NO EMPLOYMENT/SERVICE RIGHTS

          Nothing in the Plan shall confer upon the Optionee or the Participant
any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Corporation
(or any Parent or Subsidiary employing or retaining such person) or of the
Optionee or the Participant, which rights are hereby expressly reserved by each,
to terminate such person's Service at any time for any reason, with or without
cause.

                                       25
<PAGE>

                                   APPENDIX
                                   ---------

          The following definitions shall be in effect under the Plan:

          A.  Automatic Option Grant Program shall mean the automatic option
grant program in effect under the Plan.

          B.  Beneficiary shall mean, in the event the Plan Administrator
implements a beneficiary designation procedure, the person designated by an
Optionee or Participant, pursuant to such procedure, to succeed to such person's
rights under any outstanding awards held by him or her at the time of death. In
the absence of such designation or procedure, the Beneficiary shall be the
personal representative of the estate of the Optionee or Participant or the
person or persons to whom the award is transferred by will or the laws of
inheritance.

          C.  Board shall mean the Corporation's Board of Directors.

          D.  Change in Control shall mean a change in ownership or control of
the Corporation effected through any of the following transactions:

                  (i)   a merger, consolidation or reorganization approved by
     the Corporation's stockholders, unless securities representing more than
     fifty percent (50%) of the total combined voting power of the voting
     securities of the successor corporation are immediately thereafter
     beneficially owned, directly or indirectly and in substantially the same
     proportion, by the persons who beneficially owned the Corporation's
     outstanding voting securities immediately prior to such transaction,

                  (ii)  any stockholder-approved transfer or other disposition
     of all or substantially all of the Corporation's assets, or

                  (iii) the acquisition, directly or indirectly by any person or
     related group of persons (other than the Corporation or a person that
     directly or indirectly controls, is controlled by, or is under common
     control with, the Corporation), of beneficial ownership (within the meaning
     of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty
     percent (50%) of the total combined voting power of the Corporation's
     outstanding securities pursuant to a tender or exchange offer made directly
     to the Corporation's stockholders which the Board recommends such
     stockholders accept.

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

          F.  Common Stock shall mean the Corporation's voting common stock.

          G.  Corporation shall mean Inflow, Inc., a Delaware corporation, and
     any corporate successor to all or substantially all of the assets or voting
     stock of Inflow, Inc. which shall by appropriate action adopt the Plan.

                                       A-1
<PAGE>

     H.    Director Fee Option Grant Program shall mean the director fee option
grant program in effect under the Plan.

     I.    Discretionary Option Grant Program shall mean the discretionary
option grant program in effect under the Plan.

     J.    Employee shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

     K.    Exercise Date shall mean the date on which the Corporation shall have
received written notice of the option exercise.

     L.    Fair Market Value per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

           (i)   If the Common Stock is at the time traded on the Nasdaq
     National Market, then the Fair Market Value shall be the closing selling
     price per share of Common Stock on the date in question, as such price is
     reported on the Nasdaq National Market or any successor system and in The
     Wall Street Journal. If there is no closing selling price for the Common
     Stock on the date in question, then the Fair Market Value shall be the
     closing selling price on the last preceding date for which such quotation
     exists.

           (ii)  If the Common Stock is at the time listed on any Stock
     Exchange, then the Fair Market Value shall be the closing selling price per
     share of Common Stock on the date in question on the Stock Exchange
     determined by the Plan Administrator to be the primary market for the
     Common Stock, as such price is officially quoted in the composite tape of
     transactions on such exchange and reported in The Wall Street Journal. If
     there is no closing selling price for the Common Stock on the date in
     question, then the Fair Market Value shall be the closing selling price on
     the last preceding date for which such quotation exists.

           (iii) For purposes of any option grants made on the Underwriting
     Date, the Fair Market Value shall be deemed to be equal to the price per
     share at which the Common Stock is to be sold in the initial public
     offering pursuant to the Underwriting Agreement.

           (iv)  For purposes of any options made prior to the Underwriting
     Date, the Fair Market Value shall be determined by the Plan Administrator,
     after taking into account such factors as it deems appropriate.

     M.    Hostile Take-Over shall mean:

           (i)   the acquisition, directly or indirectly, by any person or
     related group of persons (other than the Corporation or a person that
     directly or indirectly controls, is controlled by, or is under common
     control with, the Corporation) of beneficial ownership (within the meaning
     of Rule 13d-3 of the 1934 Act) of securities possessing

                                      A-2
<PAGE>

     more than fifty percent (50%) of the total combined voting power of the
     Corporation's outstanding securities pursuant to a tender or exchange offer
     made directly to the Corporation's stockholders which the Board does not
     recommend such stockholders to accept, or

           (ii)  a change in the composition of the Board over a period of
     thirty-six (36) consecutive months or less such that a majority of the
     Board members ceases, by reason of one or more contested elections for
     Board membership, to be comprised of individuals who either (A) have been
     Board members continuously since the beginning of such period or (B) have
     been elected or nominated for election as Board members during such period
     by at least a majority of the Board members described in clause (A) who
     were still in office at the time the Board approved such election or
     nomination.

     N.    Incentive Option shall mean an option which satisfies the
requirements of Code Section 422.

     O.    Involuntary Termination shall mean the termination of the Service of
any individual which occurs by reason of:

           (i)   such individual's involuntary dismissal or discharge by the
     Corporation for reasons other than Misconduct, or

           (ii)  such individual's voluntary resignation following (A) a change
     in his or her position with the Corporation or Parent or Subsidiary
     employing the individual which materially reduces his or her duties and
     responsibilities or the level of management to which he or she reports, (B)
     a reduction in his or her level of compensation (including base salary,
     fringe benefits and target bonus under any corporate-performance based
     bonus or incentive programs) by more than fifteen percent (15%) or (C) a
     relocation of such individual's place of employment by more than fifty (50)
     miles, provided and only if such change, reduction or relocation is
     effected by the Corporation without the individual's consent.

     P.    Misconduct shall mean the commission of any act of fraud,
embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the
Corporation (or any Parent or Subsidiary), or any intentional wrongdoing by such
person, whether by omission or commission, which adversely affects the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material
manner. This shall not limit the grounds for the dismissal or discharge of any
person in the Service of the Corporation (or any Parent or Subsidiary).

     Q.    1934 Act shall mean the Securities Exchange Act of 1934, as amended.

     R.    Non-Statutory Option shall mean an option not intended to satisfy the
requirements of Code Section 422.

     S.    Option Surrender Value shall mean the Fair Market Value per share of
Common Stock on the date the option is surrendered to the Corporation or, in the
event of a

                                      A-3
<PAGE>

Hostile Take-Over, effected through a tender offer, the highest reported price
per share of Common Stock paid by the tender offeror in effecting such Hostile
Take-Over, if greater. However, if the surrendered option is an Incentive
Option, the Option Surrender Value shall not exceed the Fair Market Value per
share.

     T.    Optionee shall mean any person to whom an option is granted under the
Discretionary Option Grant, Salary Investment Option Grant, Automatic Option
Grant or Director Fee Option Grant Program.

     U.    Parent shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

     V.    Participant shall mean any person who is issued shares of Common
Stock under the Stock Issuance Program.

     W.    Permanent Disability or Permanently Disabled shall mean the inability
of the Optionee or the Participant to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment expected
to result in death or to be of continuous duration of twelve (12) months or
more. However, solely for purposes of the Automatic Option Grant and Director
Fee Option Grant Programs, Permanent Disability or Permanently Disabled shall
mean the inability of the non-employee Board member to perform his or her usual
duties as a Board member by reason of any medically determinable physical or
mental impairment expected to result in death or to be of continuous duration of
twelve (12) months or more.

     X.    Plan shall mean the Corporation's 2000 Stock Incentive Plan, as set
forth in this document.

     Y.    Plan Administrator shall mean the particular entity, whether the
Primary Committee, the Board or the Secondary Committee, which is authorized to
administer the Discretionary Option Grant, Salary Investment Option Grant and
Stock Issuance Programs with respect to one or more classes of eligible persons,
to the extent such entity is carrying out its administrative functions under
those programs with respect to the persons under its jurisdiction. However, the
Primary Committee shall have the plenary authority to make all factual
determinations and to construe and interpret any and all ambiguities under the
Plan to the extent such authority is not otherwise expressly delegated to any
other Plan Administrator.

     Z.    Plan Effective Date shall mean _________________, the date on which
the Common Stock is first registered under Section 12(g) of the 1934 Act.

     AA.   Predecessor Plan shall mean the Corporation's pre-existing 1997 Stock
Option/Stock Issuance Plan in effect immediately prior to the Plan Effective
Date hereunder.

     BB.   Primary Committee shall mean the committee of two (2) or more non-
employee Board members appointed by the Board to administer the Discretionary
Option Grant

                                      A-4
<PAGE>

and Stock Issuance Programs with respect to Section 16 Insiders and to
administer the Salary Investment Option Grant Program with respect to all
eligible individuals.

     CC.   Salary Investment Option Grant Program shall mean the salary
investment grant program in effect under the Plan.

     DD.   Secondary Committee shall mean a committee of one (1) or more Board
members appointed by the Board to administer the Discretionary Option Grant and
Stock Issuance Programs with respect to eligible persons other than Section 16
Insiders.

     EE.   Section 16 Insider shall mean an officer or director of the
Corporation subject to the short-swing profit liabilities of Section 16 of the
1934 Act.

     FF.   Service shall mean the performance of services for the Corporation
(or any Parent or Subsidiary) by a person in the capacity of an Employee, a non-
employee member of the board of directors or a consultant or independent
advisor, except to the extent otherwise specifically provided in the documents
evidencing the option grant or stock issuance.

     GG.   Stock Exchange shall mean either the American Stock Exchange or the
New York Stock Exchange.

     HH.   Stock Issuance Program shall mean the stock issuance program in
effect under the Plan.

     II.   Subsidiary shall mean any corporation (other than the Corporation) in
an unbroken chain of corporations beginning with the Corporation, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

     JJ.   10% Stockholder shall mean the owner of stock (as determined under
Code Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

     KK.   Withholding Taxes shall mean the Federal, state and local income and
employment withholding tax liabilities to which the holder of Non-Statutory
Options or unvested

                                      A-5
<PAGE>

shares of Common Stock may become subject in connection with the exercise of
those options or the vesting of those shares.

                                      A-6

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