Document:

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                                                                  EXHIBIT 4.2(a)
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                        SUPERCONDUCTOR TECHNOLOGIES INC.

                              AMENDED AND RESTATED

                      1998 NON-STATUTORY STOCK OPTION PLAN

     1. Purposes of the Plan. The purposes of this Nonstatutory Stock Option
Plan are:

     -  to attract and retain the best available personnel for positions of
        substantial responsibility,

     -  to provide additional incentive to Employees and Consultants, and

     -  to promote the success of the Company's business.

     Options granted under the Plan will be Nonstatutory Stock Options.

     2. Definitions. As used herein, the following definitions shall apply:

         (a) "Administrator" means the Board or any of its Committees as shall
be administering the Plan, in accordance with Section 4 of the Plan.

         (b) "Applicable Laws" means the requirements relating to the
administration of stock option plans under U. S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options are, or will be, granted under
the Plan.

         (c) "Board" means the Board of Directors of the Company.

         (d) "Code" means the Internal Revenue Code of 1986, as amended.

         (e) "Committee" means a committee of Directors appointed by the Board
in accordance with Section 4 of the Plan.

         (f) "Common Stock" means the common stock of the Company.

         (g) "Company" means Superconductor Technologies, Inc., a Delaware
corporation.

         (h) "Consultant" means any person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.

         (i) "Director" means a member of the Board.

         (j) "Disability" means total and permanent disability as defined in
Section 22(e)(3) of the Code.

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         (k) "Employee" means any person, including Officers, employed by the
Company or any Parent or Subsidiary of the Company. A Service Provider shall not
cease to be an Employee in the case of (i) any leave of absence approved by the
Company or (ii) transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

         (l) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         (m) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

             (i) If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation the Nasdaq National
Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market
Value shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

             (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the day of, or the last market trading day prior
to the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

             (iii) In the absence of an established market for the Common Stock,
the Fair Market Value shall be determined in good faith by the Administrator.

         (n) "Notice of Grant" means a written or electronic notice evidencing
certain terms and conditions of an individual Option grant. The Notice of Grant
is part of the Option Agreement.

         (o) "Officer" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

         (p) "Option" means a nonstatutory stock option granted pursuant to the
Plan, that is not intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code and the regulations promulgated thereunder.

         (q) "Option Agreement" means an agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option grant. The
Option Agreement is subject to the terms and conditions of the Plan.

         (r) "Option Exchange Program" means a program whereby outstanding
Options are surrendered in exchange for Options with a lower exercise price.

         (s) "Optioned Stock" means the Common Stock subject to an Option.

         (t) "Optionee" means the holder of an outstanding Option or Stock
Purchase Right granted under the Plan.

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         (u) "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

         (v) "Plan" means this 1998 Nonstatutory Stock Option Plan.

         (w) "Service Provider" means an Employee including a Consultant.
Service Providers eligible to receive Options do not include Directors or
Officers.

         (x) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

         (y) "Subsidiary" means a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 424(f) of the Code.

     3. Stock Subject to the Plan. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 250,000 Shares. The Shares may be authorized, but unissued, or
reacquired Common Stock.

     If an Option expires or becomes unexercisable without having been exercised
in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated).

     4. Administration of the Plan.

         (a) Administration. The Plan shall be administered by (i) the Board or
(ii) a Committee, which committee shall be constituted to satisfy applicable
laws.

         (b) Powers of the Administrator. Subject to the provisions of the Plan,
and in the case of a Committee, subject to the specific duties delegated by the
Board to such Committee, the Administrator shall have the authority, in its
discretion:

             (i) to determine the Fair Market Value of the Common Stock;

             (ii) to select the Service Providers to whom Options may be granted
hereunder;

             (iii) to determine whether and to what extent Options are granted
hereunder

             (iv) to determine the number of shares of Common Stock to be
covered by each Option granted hereunder;

             (v) to approve forms of agreement for use under the Plan;

             (vi) to determine the terms and conditions, not inconsistent with
the terms of the Plan, of any award granted hereunder. Such terms and conditions
include, but are not limited to, the exercise price, the time or times when
Options may be exercised (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Option or the shares of Common Stock relating
thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine;

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             (vii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted;

             (viii) to institute an Option Exchange Program;

             (ix) to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan;

             (x) to prescribe, amend and rescind rules and regulations relating
to the Plan, including rules and regulations relating to sub-plans established
for the purpose of qualifying for preferred tax treatment under foreign tax
laws;

             (xi) to modify or amend each Option (subject to Section 14(b) of
the Plan), including the discretionary authority to extend the post-termination
exercisability period of Options longer than is otherwise provided for in the
Plan;

             (xii) to authorize any person to execute on behalf of the Company
any instrument required to effect the grant of an Option previously granted by
the Administrator;

             (xiii) to determine the terms and restrictions applicable to
Options;

             (xiv) to allow Optionees to satisfy withholding tax obligations by
electing to have the Company withhold from the Shares to be issued upon exercise
of an Option that number of Shares having a Fair Market Value equal to the
amount required to be withheld. The Fair Market Value of the Shares to be
withheld shall be determined on the date that the amount of tax to be withheld
is to be determined. All elections by an Optionee to have Shares withheld for
this purpose shall be made in such form and under such conditions as the
Administrator may deem necessary or advisable; and

             (xv) to make all other determinations deemed necessary or advisable
for administering the Plan.

         (c) Effect of Administrator's Decision. The Administrator's decisions,
deter-minations and interpretations shall be final and binding on all Optionees
and any other holders of Options.

     5. Eligibility. Options may be granted to Service Providers. Directors and
Officers are not eligible to receive Options under the Plan.

     6. Limitation. Neither the Plan nor any Option shall confer upon an
Optionee any right with respect to continuing the Optionee's relationship as a
Service Provider with the Company, nor shall they interfere in any way with the
Optionee's right or the Company's right to terminate such relationship at any
time, with or without cause.

     7. Term of Plan. The Plan shall become effective upon its adoption by the
Board. It shall continue in effect for ten (10) years unless sooner terminated
under Section 14 of the Plan.

     8. Term of Option. The term of each Option shall be stated in the Option
Agreement.

     9. Option Exercise Price and Consideration.

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         (a) Exercise Price. The per share exercise price for the Shares to be
issued pursuant to exercise of an Option shall be determined by the
Administrator.

         (b) Waiting Period and Exercise Dates. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised.

         (c) Form of Consideration. The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method
of payment. Such consideration may consist entirely of:

             (i) cash;

             (ii) check;

             (iii) promissory note;

             (iv) other Shares which (A) in the case of Shares acquired upon
exercise of an option, have been owned by the Optionee for more than six months
on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

             (v) consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan;

             (vi) a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee's participation
in any Company-sponsored deferred compensation program or arrangement;

             (vii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws; or

             (viii) any combination of the foregoing methods of payment.

     10. Exercise of Option.

         (a) Procedure for Exercise; Rights as a Stockholder. Any Option granted
hereunder shall be exercisable according to the terms of the Plan and at such
times and under such conditions as determined by the Administrator and set forth
in the Option Agreement. An Option may not be exercised for a fraction of a
Share.

         An Option shall be deemed exercised when the Company receives: (i)
written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive

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dividends or any other rights as a stockholder shall exist with respect to the
Optioned Stock, notwithstanding the exercise of the Option. The Company shall
issue (or cause to be issued) such Shares promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the Shares are issued, except as provided
in Section 12 of the Plan.

         Exercising an Option in any manner shall decrease the number of Shares
thereafter available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option is exercised.

         (b) Termination of Relationship as a Service Provider. If an Optionee
ceases to be a Service Provider, other than upon the Optionee's death or
Disability, the Optionee may exercise his or her Option, but only within such
period of time as is specified in the Option Agreement and only to the extent
that the Option is vested on the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Option Agreement).
In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for three (3) months following the Optionee's termination.
If, on the date of termination, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

         (c) Disability of Optionee. If an Optionee ceases to be a Service
Provider as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option
Agreement, to the extent the Option is vested on the date of termination (but in
no event later than the expiration of the term of such Option as set forth in
the Option Agreement). In the absence of a specified time in the Option
Agreement, the Option shall remain exercisable for twelve (12) months following
the Optionee's termination. If, on the date of termination, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

         (d) Death of Optionee. If an Optionee dies while a Service Provider,
the Option may be exercised within such period of time as is specified in the
Option Agreement (but in no event later than the expiration of the term of such
Option as set forth in the Notice of Grant), by the Optionee's estate or by a
person who acquires the right to exercise the Option by bequest or inheritance,
but only to the extent that the Option is vested on the date of death. In the
absence of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Optionee's termination. If, at
the time of death, the Optionee is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option shall immediately
revert to the Plan. The Option may be exercised by the executor or administrator
of the Optionee's estate or, if none, by the person(s) entitled to exercise the
Option under the Optionee's will or the laws of descent or distribution. If the
Option is not so exercised within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

         (e) Buyout Provisions. The Administrator may at any time offer to buy
out for a payment in cash or Shares, an Option previously granted based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

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     11. Non-Transferability of Options. Unless determined otherwise by the
Administrator, an Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee. If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

     12. Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset
         Sale or Change of Control.

         (a) Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

         (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as
to which the Option would not otherwise be exercisable. In addition, the
Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option shall lapse as to all such Shares,
provided the proposed dissolution or liquidation takes place at the time and in
the manner contemplated. To the extent it has not been previously exercised, an
Option will terminate immediately prior to the consummation of such proposed
action.

         (c) Merger or Asset Sale. Subject to subsection (d) below, in the event
of a merger of the Company with or into another corporation, or the sale of
substantially all of the assets of the Company, each outstanding Option shall be
assumed or an option to receive an equivalent amount of Common Stock shall be
substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. If the successor corporation does not agree to assume the
Option or to substitute an equivalent Option, the Optionee shall vest in and
have the right to exercise the Option as to all of the Optioned Stock, including
Shares as to which it would not otherwise be vested or exercisable. If the
Option becomes vested and exercisable in lieu of assumption or substitution in
the event of a merger or sale of assets, the Administrator shall notify the
Optionee that the Option shall be fully vested and exercisable for a period of
fifteen (15) days from the date of such notice, and the Option will terminate
upon the expiration of such period. For the purposes of this paragraph, the
Option shall be considered assumed if, following the merger or sale of assets,
the option confers the right to purchase, for each Share of Optioned Stock
subject to the Option immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) received in
the merger or sale of

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assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the merger or sale of
assets was not solely common stock of the successor corporation or its Parent,
the Administrator may, with the consent of the successor corporation and the
participant, provide for the consideration to be received upon the exercise of
the Option, for each Share of Optioned Stock subject to the Option, to be solely
common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
merger or sale of assets.

         (d) Change in Control. In the event of a Change of Control (as defined
below), except as otherwise determined by the Board, the Optionee shall fully
vest in and have the right to exercise the Option as to all of the Optioned
Stock, including Shares as to which it would not otherwise be vested or
exercisable. If an Option becomes fully vested and exercisable as the result of
a Change of Control, the Administrator shall notify the Optionee in writing or
electronically prior to the Change of Control that the Option shall be fully
vested and exercisable for a period of fifteen (15) days from the date of such
notice, and the Option shall terminate upon the expiration of such period. For
purposes of this Agreement, a "Change of Control" means the happening of any of
the following events:

             (i) When any "person," as such term is used in Sections 13(d) and
14(d) of the Exchange Act (other than the Company, a Subsidiary or a Company
employee benefit plan, including any trustee of such plan acting as trustee) is
or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the combined voting power of the Company's then
outstanding securities entitled to vote generally in the election of directors;
or

             (ii) The stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders
of the Company approve an agreement for the sale or disposition by the Company
of all or substantially all the Company's assets; or

             (iii) A change in the composition of the Board, as a result of
which fewer than a majority of the directors are Incumbent Directors. "Incumbent
Directors" shall mean directors who either (A) are directors of the Company as
of the date of the Plan's adoption by the Board, or (B) are elected, or
nominated for election, to the Board of Directors with the affirmative votes of
at least a majority of the Incumbent Directors at the time of such election or
nomination (but shall not include an individual whose election or nomination is
in connection with an actual or threatened proxy contest relating to the
election of directors to the Company).

     13. Date of Grant. The date of grant of an Option shall be, for all
purposes, the date on which the Administrator makes the determination granting
such Option, or such other later date as is determined by the Administrator.
Notice of the determination shall be provided to each Optionee within a
reasonable time after the date of such grant.

     14. Amendment and Termination of the Plan.

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         (a) Amendment and Termination. The Board may at any time amend, alter,
suspend or terminate the Plan.

         (b) Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options granted under the
Plan prior to the date of such termination.

     15. Conditions Upon Issuance of Shares.

         (a) Legal Compliance. Shares shall not be issued pursuant to the
exercise of an Option or Stock Purchase Right unless the exercise of such Option
and the issuance and delivery of such Shares shall comply with Applicable Laws
and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

         (b) Investment Representations. As a condition to the exercise of an
Option, the Company may require the person exercising such Option to represent
and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required.

     16. Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

     17. Reservation of Shares. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

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                        SUPERCONDUCTOR TECHNOLOGIES INC.

                       1998 NONSTATUTORY STOCK OPTION PLAN

                             STOCK OPTION AGREEMENT

     Unless otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Option Agreement.

     1. Grant of Option. The Plan Administrator of the company hereby grants to
the Optionee named in the Notice of Grant attached as Part I of this Agreement
(the "Optionee") an option (the "Option") to purchase the number of Shares, as
set forth in the Notice of Grant, at the exercise price per share set forth in
the Notice of Grant (the "Exercise Price"), subject to the terms and conditions
of the Plan, which is incorporated herein by reference. Subject to Section 14(b)
of the Plan, in the event of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail.

     2. Exercise of Option.

         (a) Right to Exercise. This option is exercisable during its term in
accordance with the Vesting Schedule set out in the Notice of Grant and the
applicable provisions of the Plan and this Option Agreement.

         (b) Termination Periods. This Option may be exercised for three months
after Optionee ceases to be a Service Provider. Upon the death or Disability of
the Optionee, this Option may be exercised for such longer period as provided in
the Plan. In no event shall this Option be exercised later than the
Term/Expiration Date as provided above.

         (c) Method of Exercise. This Option is exercisable by delivery of an
exercise notice, in the form attached as Exhibit A (the "Exercise Notice"),
which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the "Exercised Shares"), and
such other representations and agreements as may be required by the company
pursuant to the provisions of the Plan. The Exercise Notice shall be completed
by the Optionee and delivered to the Secretary. The Exercise Notice shall be
accompanied by payment of the aggregate Exercise Price as to all Exercised
Shares. This Option shall be deemed to be exercised upon receipt by the company
of such fully executed Exercise Notice accompanied by such aggregate Exercise
Price.

         No Shares shall be issued pursuant to the exercise of this Option
unless such issuance and exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Exercised Shares shall be considered
transferred to the Optionee on the date the Option is exercised with respect to
such exercised Shares.

     3. Method of Payment. Payment of the aggregate Exercise Price shall be by
any of the following, or a combination thereof, at the election of the Optionee:

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         (a) cash;

         (b) check;

         (c) consideration received by the Company under a cashless exercise
program implemented by the company in connection with the Plan; or

         (d) surrender of other Shares which (i) in the case of Shares acquired
upon exercise of an option, have been owned by the Optionee for more than six
(6) months on the date of surrender, and (ii) have a Fair Market Value on the
date of surrender equal to the aggregate Exercise Price of the Exercised Shares.

     4. Non-Transferability of Option. This Option may not be transferred in any
manner otherwise than by will or by the laws of descent or distribution and may
be exercised during the lifetime of Optionee only by the Optionee. The terms of
the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

     5. Term of Option. This Option may be exercised only within the term set
out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option Agreement.

     6. Tax Consequences. Some of the federal tax consequences relating to this
Option, as of the date of this Option, are set forth below. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR
DISPOSING OF THE SHARES.

         (a) Exercising the Option. The Optionee may incur regular federal
income tax liability upon exercise of an NSO. The Optionee will be treated as
having received compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the Fair Market Value of the Exercised Shares on the
date of exercise over their aggregate Exercise Price. If the Optionee is an
Employee or a former Employee, the Company will be required to withhold from his
or her compensation or collect from Optionee and pay to the applicable taxing
authorities an amount in cash equal to a percentage of this compensation income
at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of
exercise.

         (b) Disposition of Shares. If the Optionee holds NSO Shares for at
least one year, any gain realized on disposition of the Shares will be treated
as long-term capital gain for federal income tax purposes.

     7. Entire Agreement Governing Law. The Plan is incorporated herein by
reference. The Plan and this Option Agreement constitute the entire agreement of
the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed

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by the company and Optionee. This agreement is governed by the internal
substantive laws, but not the choice of law rules, of California.

     8. NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES THAT
THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY
CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE
ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER).
OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSISTUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE
PROVIDER FOR THE VSTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE WITOPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S
RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

     By your signature and the signature of the Company's representative below,
you and the company agree that this Option is granted under and governed by the
terms and conditions of the Plan and this Option Agreement. Optionee has
reviewed the Plan and this Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan
and Option Agreement. Optionee further agrees to notify the Company upon any
change in the residence address indicated below.

OPTIONEE                                    SUPERCONDUCTOR TECHNOLOGIES INC.

---------------------------------           ------------------------------------
Signature                                   By

---------------------------------           ------------------------------------
Print Name                                  Title

---------------------------------
Residence Address

---------------------------------

                                       12

<PAGE>   13
                                    EXHIBIT A
                                    ---------

                           1998 OPTION PLAN AGREEMENT

                                 EXERCISE NOTICE

Superconductor Technologies inc.
460 Ward Drive, Suite F
Santa Barbara,CA 93111-2310

Attention: Secretary

     1. Exercise of Option. Effective as of today, ____________, 199__, the
under-signed ("Purchaser") hereby elects to purchase _______ shares (the
"Shares") of the Common Stock of Superconductor Technologies Inc. (the
"company"), under and pursuant to the 1998 Nonstatutory Stock Plan (the "Plan")
and the Option Plan Agreement dated _____________ , 199_ (the "Option
Agreement"). The purchase price for the Shares shall be $ _______________ , as
required by the Option Agreement.

     2. Delivery of Payment. Purchaser herewith delivers to the Company the full
purchase price for the Shares.

     3. Representations of Purchaser. Purchaser acknowledges that Purchaser has
received, read and understood the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

     4. Rights as Stockholder. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the Shares, no right to vote or receive dividends or
any other rights as a stockholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Shares so acquired shall
be issued to the Optionee as soon as practicable after exercise of the Option.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date of issuance, except as provided in Section 12 of the
Plan.

     5. Tax Consultation. Purchaser understands that Purchaser may suffer
adverse tax consequences as a result of Purchaser's purchase or disposition of
the Shares. Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the company for
any tax advice.

     6. Entire Agreement: Governing Law. The Plan and Option Agreement are
incorporated herein by reference. This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's

                                       13

<PAGE>   14

interest except by means of a writing signed by the Company and Purchaser. This
agreement is governed by the internal substantive laws, but not the choice of
law rules, of California.

Submitted by:                                   Accepted by:

PURCHASER                                       SUPERCONDUCTOR TECHNOLOGIES INC.

---------------------------------               --------------------------------
Signature                                       By

---------------------------------               --------------------------------
Print Name                                      Title

                                                --------------------------------
                                                Date Received

Address:                                        Address:
-------                                         -------

                                                460 Ward Drive, Suite F
--------------------------------                Santa Barbara, CA 93111-2310

--------------------------------

                                       14<PAGE>   1
                                                                   EXHIBIT 10.21

December 12, 2000

PERSONAL AND CONFIDENTIAL

Mr. Mark Kingdon
325 West 86th Street
New York, NY 10024

Dear Mark:

It is our pleasure to offer you the position of Chief Executive Officer of
Organic, Incorporated ("Organic" or the "Company"). This letter, together with
the Company's standard form of Proprietary Information and Inventions Assignment
Agreement (the "Inventions Agreement"), when executed by you and subject to
approval by the Organic Board of Directors, confirm the terms and conditions of
your employment with the Company.

1. Job Title.  You will be the Chief Executive Officer of the Company and will
   report to the Company's Board of Directors.

2. Base Salary.  Your annual base salary will be Three Hundred Fifty Thousand
   Dollars ($350,000), subject to legally required withholding, to be paid
   according to the Company's standard payroll.

3. Stock Options. Subject to the approval of the Board of Directors, you will
   be granted an option to purchase 2.25 million shares of Organic common
   stock. The options will be subject to the standard terms and conditions of
   the Company's Stock Option Plan and related agreements, except that your
   options will begin vesting on your start date. The following additional
   provisions will constitute the terms of your options, subject to approval
   by the Board of Directors.

         3.a. Provided you have been and remain employed continuously by the
Company, 1/48th of your options will vest each month. The exercise price of your
options will be the fair market value of the Company's common stock as of the
date of the grant (which is expected to be at the first regularly scheduled
meeting of the Company's Board of Directors following the commencement of your
employment) as required by the Stock Option Plan. For your reference, the fair
market value of the Company's common stock as determined by the Company's Board
of Directors at its last regularly scheduled meeting was $2.25. The Stock Option
Plan provides that

<PAGE>   2
Mr. Mark Kingdon
December 5, 2000
Page 2

your options will be immediately exercisable, in part or in full, so that you
can "early exercise" at any time after their grant. This allows you to commence
your long term capital gains holding period on the option shares and make an IRC
Rule 83(b) election. This is not intended to be advice to you to exercise
options early and you should consult your tax advisors concerning all the
consequences of such an exercise.

         3.b. If, during your employment with the Company, there is a "change of
control" (as such term is defined in the Company's Stock Option Plan) and you
are offered a position with comparable responsibilities and compensation, you
will receive 50% acceleration on any remaining unvested options. If, subsequent
to a change of control, you are not offered a position with comparable
responsibilities and compensation, you will receive 100% acceleration on any
remaining unvested options.

         3.c. If, during your employment with the Company, you are terminated
without cause, you will receive six months continuing base cash compensation,
six months continuing housing benefits as defined and limited below, and six
additional months of vesting on any remaining unvested options, calculated from
the date of your termination. You shall be deemed to be "terminated without
cause," and have the right to resign from employment with the Company and to
receive all benefits described in the preceding sentence, if, during the term of
your employment with the Company, any of the following events occur: 1) your job
title is changed, and you cease to act as the Chief Executive Officer of the
Company; 2) you are required to report to anyone other than the Company's Board
of Directors or a committee thereof; and 3) your duties and responsibilities as
Chief Executive Officer are diminished in a material way. If, during your
employment with the Company, you are terminated for cause (defined as conviction
for a felony or willful negligence) your cash compensation and equity vesting
will cease on the date of your termination and any amount due on the Promissory
Note will become immediately due and repayable.

4. Promissory Note. You will be offered a non-recourse non-interest bearing
   loan in the amount of $150,000 per year in each of the first two years of
   your employment, payable at the beginning of each year. The Note will be
   contain standard terms and conditions and include a provision that in so
   long as you have been and remain employed by Organic, Organic will forgive
   one quarter of the amount due on the Note effective at the close of
   business on the last day of each quarter.

5. Proprietary Information and Invention Assignment Agreement. Prior to
   commencement of your employment and as a condition to such employment, you
   will execute the Company's standard Proprietary Information and Invention
   Assignment Agreement in the form attached hereto as Exhibit "A" and agree
   to the terms thereof.

6. Benefits.  You are eligible to receive such standard Company benefits as are
   available to other employees of the Company and as may change from time to
   time. These include

<PAGE>   3
Mr. Mark Kingdon
December 5, 2000
Page 3

   medical, dental and vision insurance; life insurance; long-term disability
   insurance; accrued paid vacation and holidays.

7. Housing Benefits and Moving Expenses: 1) Housing Benefit: The Company agrees
   to rent, at its expense, or to reimburse you for the cost of an apartment for
   your use during your employment. The Company agrees to pay rent for such an
   apartment, or reimburse you for such rent, of up to $7500 per month, for a
   period not to exceed 24 months from the commencement of your employment. The
   Company further agrees to pay you, on April 1 of each year during which you
   are employed, an amount equal to the amount, if any, that you are required to
   pay as income tax on your individual tax return (IRS 1040) in connection with
   your use of the apartment. 2) Moving Expenses: The Company agrees to pay for
   moving expenses in connection with your relocation to the San Francisco Bay
   Area, including up to $7500 for a San Francisco broker to assist you in
   finding an apartment in the San Francisco Bay Area; $2500 for air and related
   travel expenses; and up to $15,000 for costs associated with moving your
   personal and household items to your San Francisco apartment. The Company
   further agrees to pay you, on April 1, 2001, an amount equal to the amount,
   if any, that you are required to pay in income tax on your individual tax
   return (IRS 1040) in connection with the Company's payment of your Moving
   Expenses.

8. Reimbursement of Expenses. The Company will, upon  presentation of itemized
   receipts, reimburse you for all required travel and other business expenses,
   in accordance with Company policy, directly and reasonably incurred by you in
   the performance of your duties.

9. "At-Will" Employment. As with all employees, your employment with Organic
   is "at-will." This means the terms and conditions of your employment,
   including but not limited to termination, demotion, promotion, transfer,
   compensation, benefits, duties and location of work may be changed with or
   without cause, for any or no reason, and with or without notice. Your
   status as an "at-will" employee cannot be changed by any statement,
   promise, policy, course of conduct, writing or manual, except through a
   written agreement signed by an officer authorized by the Board of
   Directors.

10. Employment Start Date. You will commence your full time employment with the
Company on January 15, 2001.

11. General Provisions. We agree that there are additional documents necessary
to effectuate the terms of this agreement, including the Note described in
paragraphs 3 and 4. Except as to documents necessary to effectuate the terms of
this Agreement,this agreement, together with the Inventions Agreement,
constitutes the entire agreement between the Company and you, and there are no
understandings between the Company and you that are not included in this
agreement and the Inventions Agreement. No modification may be made to this
agreement unless in writing and signed by both the Company and you. In the event
any provision of this agreement is held to be invalid, illegal or unenforceable,
all other provisions of this agreement shall survive, and this

<PAGE>   4

Mr. Mark Kingdon
December 5, 2000
Page 4

agreement shall be construed as if such provision was not contained in this
agreement. Nothing in this Agreement is intended to preclude Organic's policies
and procedures as they currently exist or may exist in the future from applying
to you.

Mark, we are looking forward to your joining the team and contributing to the
future success of Organic. Please confirm your acceptance of this offer by
signing the acknowledgement below and returning it to me by Friday, December 8,
2000.

If you have any questions or concerns please do not hesitate to call.

Sincerely,

Jonathan Nelson
Chairman and Chief Executive Officer

I accept the offer of employment as stated in this letter.

---------------------------------------              ----------------------
Mark Kingdon                                         Date

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