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                                                                    EXHIBIT 10.3

                                CV DYNAMICS, INC.

                         1993 DIRECTOR STOCK OPTION PLAN

         1. PURPOSE OF THE PLAN. The purpose of this 1993 Director Stock Option
Plan, adopted by the Board on November 6, 1993, is to attract and retain the
best available individuals to serve as Directors of the Company, to provide
additional incentive to the Outside Directors of the Company to serve as
Directors, and to encourage their continued service on the Board.

         The Company intends that the options granted hereunder shall not
constitute incentive stock options within the meaning of Section 422 of the
Internal Revenue Code of 1986. The Plan is intended to comply with the
requirements of Rule 16b-3 under the Exchange Act.

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

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

                  (b)      "COMMON STOCK" shall mean the Common Stock, $.01 par
                           value per share, of the Company.

                  (c)      "COMPANY" shall mean CV Dynamics, Inc., a Minnesota
                           corporation.

                  (d)      "COMMITTEE" shall mean a committee of the Board
                           appointed by the Board to administer the Plan.

                  (e)      "CONTINUOUS SERVICE AS A DIRECTOR" shall mean the
                           absence of any interruption or termination of service
                           as a Director. Continuous Service as a Director shall
                           not be considered interrupted in the case of sick
                           leave, military leave, or any other leave of absence
                           approved by the Board or Committee.

                  (f)      "DIRECTOR" shall mean a member of the Board.

                  (g)      "EMPLOYEE" shall mean any person, including officers
                           and Directors, employed by the Company or any Parent
                           or Subsidiary of the Company. The payment of fees to
                           a Director or the holding of a corporate office shall
                           not be sufficient in and of itself to constitute
                           "employment" by the Company.

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

                  (i)      "OPTION" shall mean a stock option granted pursuant
                           to the Plan.

                  (j)      "OPTIONED STOCK" shall mean the Common Stock subject
                           to an Option.

                  (k)      "OPTIONEE" shall mean an Outside Director who
                           receives an option.

                  (l)      "OUTSIDE DIRECTOR" shall mean a Director who is not
                           an Employee.

                  (m)      "PARENT" shall mean a "parent corporation," whether
                           now or hereafter existing, as defined in Section
                           424(e) of the Internal Revenue Code of 1986, as
                           amended.

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                  (n)      "PLAN" shall mean this 1993 Director Stock Option
                           Plan.

                  (o)      "SHARE" shall mean a share of Common Stock, as
                           adjusted in accordance with Section 12 of the Plan.

                  (p)      "SUBSIDIARY" shall mean a "subsidiary corporation,"
                           whether now or hereafter existing, as defined in
                           Section 424(f) of the Internal Revenue Code of 1986,
                           as amended.

         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 500,000 shares of Common Stock. The shares may be
authorized, but unissued, or reacquired Common Stock.

                  If an Option expires or becomes unexercisable for any reason
without having been exercised in full, the unexercised Shares which were subject
thereto shall, unless the Plan has been terminated, become available for future
grant under the Plan. If Shares which were acquired upon exercise of an Option
are subsequently repurchased by the Company, such Shares shall not become
available for future grant under the Plan.

         4. AUTOMATIC GRANT OF OPTIONS. All grants of Options hereunder shall be
automatic and non-discretionary and shall be made strictly in accordance with
the following provisions:

                  (a)      No person shall have any discretion to select which
                           Outside Directors shall be granted Options or to
                           determine the number of Shares to be covered by
                           Options granted to Outside Directors.

                  (b)      Each Outside Director, including persons who are
                           Outside Directors on the date of adoption of the
                           Plan, shall be automatically granted an option to
                           purchase 10,000 Shares (the "First Option") upon the
                           effective date of the Plan, as determined in
                           accordance with Section 8 hereof. Each other Outside
                           Director shall be automatically granted an option to
                           purchase 5,000 shares (also "First Option") on which
                           such person first becomes an Outside Director,
                           whether through election by the shareholders of the
                           Company or appointment by the Board to fill a
                           vacancy.

                  (c)      After the First Option has been granted to an Outside
                           Director, such Outside Director shall thereafter be
                           automatically granted an Option to purchase 5,000
                           shares on the first and each successive anniversary
                           of the grant of the First Option; provided, however,
                           that in no event shall an Outside Director be granted
                           options to purchase in the aggregate more than 25,000
                           shares pursuant to the Plan.

                  (d)      Notwithstanding the provisions of Sections 4(b) and
                           (c) hereof, in the event that a grant would cause the
                           number of Shares subject to outstanding Options to
                           Outside Directors plus Shares previously purchased
                           upon exercise of Options by Outside Directors to
                           exceed 500,000 Shares, then each such automatic grant
                           shall be for that number of Shares determined by
                           dividing the total number of Shares remaining
                           available for grant by the number of Outside
                           Directors on the automatic grant date. Any further
                           grants shall then be deferred until such time, if
                           any, as additional Shares become available for grant
                           under the Plan through action of the shareholders to
                           increase the number of Shares which may be issued

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                           under the Plan or through cancellation or expiration
                           of Options previously granted hereunder.

         5. OPTION TERMS AND CONDITIONS. The terms and conditions of an Option
granted hereunder shall be as follows:

                  (a)      subject to Section 5(c), the term of each Option
                           shall be five (5) years, subject to Sections 12 and
                           13 hereof.

                  (b)      the First Option shall become exercisable in full
                           beginning on the later of (i) the first anniversary
                           of the grant of the Option or (ii) six (6) months
                           after the date on which the Plan is first approved by
                           the shareholders of the Company in accordance with
                           Rule 16b-3 under the Exchange Act and each subsequent
                           Option shall become exercisable in full beginning on
                           the first anniversary of the grant of such Option,
                           provided in each case that the Outside Director shall
                           have maintained Continuous Service as an Outside
                           Director throughout such 12-month period.

                  (c)      the Option shall be exercisable only while the
                           Outside Director serves as an Outside Director of the
                           Company, and for a period of six (6) months after
                           ceasing to be an Outside Director pursuant to Section
                           10(b) hereof.

                  (d)      the exercise price per Share shall be 100% of the
                           fair market value per Share on the date of grant of
                           the Option, as determined in accordance with Section
                           9(a) hereof.

                  (e)      the effectiveness of any Options granted hereunder is
                           conditioned upon shareholder approval of the Plan in
                           accordance with Rule 16b-3 under the Exchange Act.

         6. ADMINISTRATION OF AND GRANTS OF OPTIONS UNDER THE PLAN.

                  (a)      ADMINISTRATION. Except as otherwise required herein,
                           the Plan shall be administered by the Board or a
                           Committee.

                  (b)      POWERS OF THE BOARD OR COMMITTEE. Subject to the
                           provisions and restrictions of the Plan, the Board or
                           Committee shall have the authority, in its
                           discretion: (i) to determine, upon review of relevant
                           information and in accordance with Section 9(a)
                           hereof, the fair market value of the Common Stock;
                           (ii) to interpret the Plan; (iii) to prescribe, amend
                           and rescind rules and regulations relating to the
                           Plan; (iv) to authorize any person to execute on
                           behalf of the Company any instrument required to
                           effectuate the grant of an Option hereunder; and (v)
                           to make all other determinations deemed necessary or
                           advisable for the administration of the Plan.

                  (c)      EFFECT OF BOARD'S DECISION. All decisions,
                           determinations and interpretations of the Board or
                           Committee shall be final and binding on all Optionees
                           and any other holders of any Options granted under
                           the Plan.

                  (d)      SUSPENSION OR TERMINATION OF OPTION. If the Board or
                           Committee reasonably believes that an Optionee has
                           committed an act of misconduct, it may suspend the
                           Optionee's right to exercise any Option pending a
                           determination by the Board

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                           or Committee (excluding the Outside Director accused
                           of such misconduct). If the Board or Committee
                           (excluding the Outside Director accused of such
                           misconduct) determines that an Optionee has
                           committed an act of embezzlement, fraud, dishonesty,
                           nonpayment of an obligation owed to the Company,
                           breach of fiduciary duty or deliberate disregard of
                           the Company's rules resulting in loss, damage or
                           injury to the Company, or if an Optionee makes an
                           unauthorized disclosure of any Company trade secret
                           or confidential information, engages in any conduct
                           constituting unfair competition with respect to the
                           Company, or induces any party to breach a contract
                           with the Company, neither the Optionee nor the
                           Optionee's estate shall be entitled to exercise any
                           Option whatsoever. In making such determination, the
                           Board or Committee (excluding the Outside Director
                           accused of such misconduct) shall act fairly and
                           shall give the Optionee an opportunity to appear and
                           present evidence on the Optionee's behalf at a
                           hearing before the Board or Committee.

                  (e)      DATE OF GRANT OF OPTIONS. The date of grant of an
                           Option shall, for all purposes, be the date
                           determined in accordance with Section 4 hereof,
                           notwithstanding the fact that an Optionee may not
                           have entered into an option agreement with the
                           Company on such date. Notice of the grant of an
                           Option shall be given to the Optionee within a
                           reasonable time after the date of such grant.

         7. ELIGIBILITY. Options may be granted only to Outside Directors. All
options shall be automatically granted in accordance with the terms set forth in
Section 4 hereof. The Plan shall not confer upon any Optionee any right with
respect to continuation of service as a Director or nomination to serve as a
Director, nor shall it interfere in any way with any rights which a Director or
the Company may have to terminate such Director's directorship at any time.

         8. TERM OF PLAN. The effective date of this Plan is November 6, 1993,
the date upon which it was adopted by the Board. The Plan shall continue in
effect for a term of ten (10) years unless terminated sooner under Section 13
hereof.

         9. FAIR MARKET VALUE AND FORM OF CONSIDERATION.

                  (a)      FAIR MARKET VALUE. The fair market value per share
                           shall be determined as follows:

                           (i)      if the Common Stock is listed on a national
                                    securities exchange or admitted to unlisted
                                    trading privileges on such exchange, the
                                    fair market value on any given day shall be
                                    the closing sale price for the Common Stock
                                    on such day, as reported in the Wall Street
                                    Journal or other newspaper of general
                                    circulation;

                           (ii)     if the Common Stock is not listed on a
                                    national securities exchange, the fair
                                    market value on any given day shall be the
                                    closing sale price for the Common Stock on
                                    the NASDAQ National Market System on such
                                    day, as reported in the Wall Street Journal
                                    or other newspaper of general circulation;

                           (iii)    if the Common Stock is not listed on a
                                    national securities exchange, is not
                                    admitted to unlisted trading privileges on
                                    any such exchange, and is not eligible for
                                    inclusion on the NASDAQ National Market
                                    System, the

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                                    fair market value on any given day shall be
                                    the average of the closing representative
                                    bid and asked prices on such day, as
                                    reported on the NASDAQ System, and if not
                                    reported on such system, then as reported
                                    by the National Quotation Bureau, Inc. or
                                    such other publicly available compilation
                                    of the bid and asked prices of the Common
                                    Stock in any over-the-counter market on
                                    which the Common Stock is traded; or

                           (iv)     if there exists no public trading market for
                                    the Common Stock, the fair market value on
                                    any given day shall be an amount determined
                                    by the Board or Committee in such manner as
                                    it may reasonably determine in its
                                    discretion, provided that such amount shall
                                    not be less than the book value per share as
                                    reasonably determined by the Board or
                                    Committee as of the date of determination
                                    nor less than the par value of the Stock.

                  (b)      FORM OF CONSIDERATION. The consideration to be paid
                           for the Shares to be issued upon exercise of an
                           Option shall consist entirely of cash or such other
                           form of consideration as the Board or Committee may
                           determine, in its sole discretion, to be appropriate
                           for payment, including but not limited to other
                           shares of Common Stock having a fair market value on
                           the date of surrender equal to the aggregate exercise
                           price of the Shares as to which the Option is
                           exercised, or any combination of such methods of
                           payment.

         10. EXERCISE OF OPTION.

                  (a)      PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any
                           Option granted hereunder shall be exercisable at such
                           times as are set forth in Section 5 hereof. An Option
                           may not be exercised for a fraction of a Share.

                                    An Option shall be deemed to be exercised
                           when written notice of such exercise has been given
                           to the Company in accordance with the terms of the
                           Option by the person entitled to exercise the Option
                           and full payment for the Shares with respect to which
                           the Option is exercised has been received by the
                           Company. Full payment may consist of any
                           consideration and method of payment allowable under
                           Section 9(b) hereof. 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 stock certificate evidencing such
                           Shares, no right to vote or receive dividends or any
                           other rights as a shareholder shall exist with
                           respect to the Optioned Stock, notwithstanding the
                           exercise of the Option. A share certificate for the
                           number of 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 the stock certificate is issued, except as
                           provided in Section 12 hereof.

                                    Exercise of an Option in any manner shall
                           result in a decrease in the number of Shares which
                           thereafter may be available, both for purposes of the
                           Plan and for sale under the Option, by the number of
                           Shares as to which the Option was exercised.

                  (b)      TERMINATION OF STATUS AS A DIRECTOR. If an Optionee
                           ceases to serve as a Director, the Optionee may, but
                           only within six (6) months after the date the
                           Optionee ceases to be an Outside Director of the
                           Company, exercise his or her Option to the extent the
                           Optionee was entitled to exercise it at the date of
                           such termination.

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                           To the extent that the Optionee was not entitled to
                           exercise an Option at the date of such termination,
                           or if the Optionee does not exercise such Option
                           within the time specified herein, the Option shall
                           terminate.

                  (c)      DEATH OF OPTIONEE. In the event of the death of an
                           Optionee occurring:

                           (i)      during the term of the Option, and provided
                                    that the Optionee was at the time of death a
                                    Director of the Company and had been in
                                    Continuous Service as a Director since the
                                    date of grant of the Option, the Option may
                                    be exercised, at any time within six (6)
                                    months following the date of death, by the
                                    Optionee's estate or by a person who
                                    acquired the right to exercise the Option by
                                    bequest or inheritance, but only to the
                                    extent of the right to exercise that would
                                    have accrued had the Optionee continued
                                    living and remained in Continuous Service a
                                    Director for six (6) months after the date
                                    of death.

                           (ii)     within thirty (30) days after the
                                    termination of Continuous Service as a
                                    Director, the Option may be exercised, at
                                    any time within six (6) months following the
                                    date of death, by the Optionee's estate or
                                    by a person who acquired the right to
                                    exercise the Option by bequest or
                                    inheritance, but only to the extent of the
                                    right to exercise that had accrued at the
                                    date of termination of Continuous Service as
                                    a Director.

         11. NON-TRANSFERABILITY OF OPTIONS. The 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.

         12. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER. 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 Options have not 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
and outstanding 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, or options or rights to purchase
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.

                  In the event of the proposed dissolution or liquidation of the
Company, each Option will terminate immediately prior to the consummation of
such proposed action, unless otherwise provided by the Board. The Board may, in
the exercise of its sole discretion in such instances, declare that any Option
shall terminate as of a date fixed by the Board and give each Optionee the right
to exercise his or her Option as to all or any part of the Optioned Stock,
including Shares as to which the Option would not otherwise be exercisable. In
the event of a proposed sale of all or substantially all of the assets of the
Company, or the merger of the Company with or into another corporation, the
Option shall be assumed or an equivalent option shall be substituted by such
successor corporation or a parent or subsidiary of such

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successor corporation, unless the Board determines, in the exercise of its
sole discretion and in lieu of such assumption or substitution, that the
Optionee shall have the right to exercise the Option as to all of the
Optioned Stock, including Shares as to which the Option would not otherwise
be exercisable. If the Board makes an Option fully exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the
Board shall notify the Optionee that the Option shall be fully exercisable
for a period of ten (10) days from the date of such notice, and the Option
will terminate upon the expiration of such period.

         13. AMENDMENT, TERMINATION AND APPROVAL OF THE PLAN. The Board may at
any time amend or terminate the Plan, except that the Board shall not amend the
Plan more than once every six (6) months with respect to the provisions of the
Plan relating to the amount, price, and timing of grants, other than to comply
with changes in the Internal Revenue Code of 1986, the Employee Retirement
Income Security Act of 1974, as amended, or the regulations thereunder. No
Option may be granted after the Plan is terminated. The foregoing provisions of
this Section notwithstanding, no amendment or termination shall, without the
consent of the holder of an Option, alter or impair any rights or obligations
under any Option theretofore granted under the Plan except as is permitted
pursuant to Section 12 of the Plan.

                  If any amendment to the Plan requires approval by the
shareholders of the Company for continued applicability of Rule 16b-3 under the
Exchange Act, or for initial or continued listing of the Common Stock or other
securities of the Company upon any stock exchange, then such amendment shall be
approved by the holders of a majority of the Company's outstanding capital stock
entitled to vote.

         14. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of the NASD or any stock
exchange upon which the Shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

                  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 by any of
the aforementioned relevant provisions of law. Such Shares may also be issued
with appropriate legends on stock certificates representing such Shares, and the
Company may place stop transfer orders with respect to such Shares.

                  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.

         15. 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.

         16. OPTION AGREEMENT. Options shall be evidenced by written option
agreements in substantially the form attached hereto or in such other form as
the Board or Committee shall approve.

         17. INFORMATION TO OPTIONEES. The Company shall provide to each
Optionee, during the period for which such Optionee has one or more Options
outstanding, copies of all annual reports and other information which are
provided to all shareholders of the Company.

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                                CV DYNAMICS, INC.
                             STOCK OPTION AGREEMENT
                   PURSUANT TO 1993 DIRECTOR STOCK OPTION PLAN

Option No.: __________

         This AGREEMENT is dated as of ____ day of ___________, 1993, and is
entered into by and between CV Dynamics, Inc., a Minnesota corporation (the
"Company") and (the "Optionee").

                              W I T N E S S E T H :

         1. GRANT OF OPTION. Pursuant to the provisions of the CV Dynamics, Inc.
1993 Director Stock Option Plan (the "Plan") and subject to shareholder approval
of the Plan in accordance with the provisions of Rule 16b-3 under the Securities
Exchange Act of 1934 and to the additional conditions set forth herein, the
Optionee has been automatically granted on the date hereof the right and option
to purchase from the Company all or a part of an aggregate of 5,000 shares of
Common Stock ($.01 par value) of the Company (the "Stock") at the purchase price
of $1.00 per share (the "Option"). The Option does not constitute an incentive
stock option within the meaning of Section 422 of the Internal Revenue Code of
1986.

         2. TERMS AND CONDITIONS. It is understood and agreed that the option
evidenced hereby is subject to the following terms and conditions and to the
terms and conditions of the Plan:

                  (a) EXPIRATION DATE. Subject to the provisions of Section 5(c)
         of the Plan, the option shall expire five years after the date hereof.

                  (b) EXERCISE OF OPTION. The Option shall become exercisable in
         full beginning on the later of (i) the first anniversary of the grant
         of the Option or (ii) six (6) months after the date on which the Plan
         is first approved by the shareholders of the Company in accordance with
         Rule 16b-3 under the Securities Exchange Act of 1934, as amended,
         provided that the Optionee shall have maintained Continuous Service as
         an outside director throughout such 12-month period. The Option shall
         be exercisable only while the Optionee serves as an outside director of
         the Company, and for a period six (6) months after ceasing to be an
         outside director pursuant to Section 10 hereof. "Continuous Service"
         shall mean the absence of any interruption or termination of service as
         a director. Continuous Service as a director shall not be considered
         interrupted in the case of sick leave, military leave, or any other
         leave approved by the Company's Board of Directors.

         Any exercise shall be accompanied by a written notice to the Company
specifying the number of shares as to which the option is being exercised.
Notation of any partial exercise shall be made by the Company on Schedule I
hereto.

                  (c) PAYMENT OF PURCHASE PRICE UPON EXERCISE. At the time of
         any exercise, the purchase price of the shares as to which this option
         is exercised shall be paid in cash to the Company, unless, in
         accordance with the provisions of Section 9(b) of the Plan, the Board
         of Directors shall permit payment of the purchase price in another
         manner.

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                  (d) EXERCISE UPON DEATH OR TERMINATION OF STATUS AS A
         DIRECTOR.

                           (i) TERMINATION OF STATUS AS A DIRECTOR. If the
                  Optionee ceases to serve as a director, the Optionee may, but
                  only within six (6) months after the date the Optionee ceases
                  to be an outside director of the Company, exercise his or her
                  Option to the extent the Optionee was entitled to exercise it
                  at the date of such termination. To the extent that the
                  Optionee was not entitled to exercise an Option at the date of
                  such termination, or if the Optionee does not exercise such
                  Option within the time specified herein, the Option shall
                  terminate.

                           (ii) DEATH OF OPTIONEE. In the event of the death of
                  an Optionee occurring:

                                    (A) during the term of the Option, and
                           provided that the Optionee was at the time of death a
                           Director of the Company and had been in Continuous
                           Service as a Director since the date of grant of the
                           Option, the Option may be exercised, at any time
                           within six (6) months following the date of death, by
                           the Optionee's estate or by a person who acquired the
                           right to exercise the Option by bequest or
                           inheritance, but only to the extent of the right to
                           exercise that would have accrued had the Optionee
                           continued living and remained in Continuous Service a
                           director for six (6) months after the date of death.

                                    (B) within thirty (30) days after the
                           termination of Continuous Service as a director, the
                           Option may be exercised, at any time within six (6)
                           months following the date of death, by the Optionee's
                           estate or by a person who acquired the right to
                           exercise the Option by bequest or inheritance, but
                           only to the extent of the right to exercise that had
                           accrued at the date of termination of Continuous
                           Service as a director.

                  (e) NON-TRANSFERABILITY OF OPTIONS. The 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.

                  (f) ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER. The
         number of shares of Common Stock covered by this Option and the
         exercise price shall be proportionately adjusted for any increase or
         decrease in the number of issued and outstanding 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 or in the Plan, no issuance by the
         Company of shares of stock of any class, or securities convertible into
         shares of stock of any class, or options or rights to purchase 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 this Option.

                  In the event of the proposed dissolution or liquidation of the
Company, the Option will terminate immediately prior to the consummation of such
proposed action, unless otherwise provided by the Board. The Board may, in the
exercise of its sole discretion in such instances, declare that the Option shall
terminate as of a date fixed by the Board and give the Optionee the right to
exercise his or her

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Option as to all or any part of the Stock. If the Board makes an Option fully
exercisable in the event of a merger or sale of assets, the Board shall
notify the Optionee that the Option shall be fully exercisable for a period
of ten (10) days from the date of such notice, and the Option will terminate
upon the expiration of such period.

                  (g) NO RIGHTS AS SHAREHOLDER. The Optionee shall have no
         rights as a shareholder with respect to any shares of Stock subject to
         this Option prior to the date of issuance to him or her of a
         certificate or certificates for such shares.

                  (h) NO RIGHT TO CONTINUED STATUS AS A DIRECTOR. This Option
         shall not confer upon the Optionee any right with respect to continued
         status as a director of the Company, nor shall it interfere in any way
         with the right of the Company or the shareholders to terminate his or
         her status as a director at any time.

                  (i) COMPLIANCE WITH LAW AND REGULATIONS. This Option and the
         obligation of the Company to sell and deliver shares hereunder shall be
         subject to all applicable federal and state laws, rules and regulations
         and to such approvals by any government or regulatory agency as may be
         required. The Company shall not be required to issue or deliver any
         certificates for shares of Stock prior to (i) compliance with the
         regulations of the NASD or any stock exchange on which the Stock may
         then be listed and (ii) the completion of any registration or
         qualification of such shares under any federal or state law, or any
         rule or regulation of any government body which the Company shall, in
         its sole discretion, determine to be necessary or advisable. Moreover,
         this Option may not be exercised if its exercise or the receipt of
         shares of Stock pursuant hereto would be contrary to applicable law.

         3. INVESTMENT REPRESENTATION. As a condition to the exercise of the
Option, the Company may require the person exercising the Option to represent
and warrant at the time of 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
by any relevant provisions of law. The shares may be issued with appropriate
legends on stock certificates representing the shares, and the Company may place
stop transfer orders with respect to the shares.

         4. OPTIONEE BOUND BY PLAN. The Optionee hereby acknowledges receipt of
a copy of the Plan and agrees to be bound by all the terms and provisions
thereof.

         5. NOTICES. Any notice hereunder to the Company shall be addressed to
it at its principal executive offices, located at 9605 West Jefferson Trail,
Inver Grove Heights, Minnesota 55077; and any notice hereunder to the Optionee
shall be addressed to him or her at the address set forth below; subject to the
right of either party to designate at any time hereunder in writing some other
address.

         6. COUNTERPARTS. This Agreement may be executed in two counterparts
each of which shall constitute one and the same instrument.

                                       10

<Page>

         IN WITNESS WHEREOF, CV Dynamics, Inc. has caused this Agreement to be
executed by its President or a Vice President and the Optionee has executed this
Agreement, both as of the day and year first above written.

                                       CV DYNAMICS, INC.

                                       By:
                                          ----------------------
                                                 President

-------------------------------
Optionee (signature)

Name and address of Optionee
(type or print):
-------------------------------
-------------------------------
-------------------------------

                  SCHEDULE I - NOTATIONS AS TO PARTIAL EXERCISE
<Table>
<Caption>

------------------------ ---------------------- ---------------------- ---------------------- ----------------------
   Date of Exercise       Number of Purchased   Balance of Shares on   Authorized Signature       Notation Date
                                Shares                 Option
------------------------ ---------------------- ---------------------- ---------------------- ----------------------
<S>                      <C>                    <C>                    <C>                    <C>

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

</Table>

                                       11<Page>

                                                                    EXHIBIT 10.4

                               C V DYNAMICS, INC.

                             1997 STOCK OPTION PLAN

1.       PURPOSE

         The purpose of C V Dynamics, Inc. 1997 Stock Option Plan (the "Plan")
is to promote the interests of C V Dynamics, Inc., a Minnesota corporation (the
"Company"), by providing employees of the Company and certain independent
contractors with an opportunity to acquire a proprietary interest in the Company
and thereby develop a stronger incentive to contribute to the Company's
continued success and growth. In addition, the granting of stock options will
assist the Company in attracting and retaining key personnel of outstanding
ability.

2.       DEFINITIONS

         Wherever used in the Plan, the following terms have the meanings set
forth below:

         2.1 "Board" means the Board of Directors of the Corporation.

         2.2 "Code" means the Internal Revenue Code of 1986, as amended from
time to time, and the rules and regulations promulgated thereunder.

         2.3 "Committee" means a committee of not less than two "Non-Employee
Directors" (as defined in Rule 16b-3(b) (3) (i) under Section 16(b) of the
Exchange Act) appointed by and serving at the pleasure of the Board.

         2.4 "Common Shares" means shares of the Common Stock, par value $.01
per share, of the Corporation.

         2.5 "Date of Grant" means the date specified by the Board on which a
grant of an Option shall become effective, which shall not be earlier than the
date on which the Board takes action with respect thereto.

         2.6 "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time.

         2.7 "Incentive Stock Option" or "ISO" means a stock option which is
intended to qualify as an incentive stock option as defined in Section 422 of
the Code.

         2.8 "Non-Statutory Stock Option" or "NSO" means a stock option that is
not intended to, or does not, qualify as an incentive stock option as defined in
Section 422 of the Code.

         2.9 "Option" means, where required by the context of the Plan, an ISO
or NSO granted pursuant to the Plan.

         2.10 "Optionee" means a Participant in the Plan who has been granted
one or more Options under the Plan.

         2.11 "Participant" means an individual described in Section 5 of this
Plan who may be granted Options under the Plan.

<Page>

         2.12 "Stock" means the Common Stock, $.01 par value, of the Company.

         2.13 "Subsidiary" means any corporation, other than the Company, in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns 50% or
more of the voting stock in one of the other corporations in such chain.

3.       ADMINISTRATION

         3.1 This Plan shall be administered by the Board, which may delegate
any or all of its authority hereunder to the Committee. To the extent of any
such delegation, references in this Plan to the Board shall be deemed to refer
to the Committee, unless the context requires otherwise. A majority of the Board
shall constitute a quorum, and the acts of the members of the Board who are
present at any meeting thereof at which a quorum is present, or acts unanimously
approved by the members of the Board in writing, shall be the acts of the Board.

         3.2 The Board shall have the sole discretion, subject to the provisions
of the Plan, to determine the Participants eligible to receive Options pursuant
to the Plan and the amount, type, and terms of any Options and the terms and
conditions of option agreements relating to any Option.

         3.3 The interpretation and construction by the Board of any provision
of this Plan or any agreement, notification or document evidencing the grant of
Options, any determination by the Board pursuant to any provision of this Plan
or any such agreement, notification or document, shall be final and conclusive.
No member of the Board shall be liable for any such action taken or
determination made in good faith. The Board may correct any defect, supply any
omission, or reconcile any inconsistency in the Plan or in any Option granted
hereunder in the manner and to the extent it shall deem necessary to carry out
the terms of the Plan.

4.       SHARES SUBJECT TO THE PLAN

         4.1 NUMBER. Subject to Section 12.3, the total number of shares of
Stock reserved for issuance upon exercise of Options under the Plan is 500,000.
Such shares shall consist of authorized but unissued Stock. If any Option
granted under the Plan lapses or terminates for any reason before being
completely exercised, the shares covered by the unexercised portion of such
Option may again be made subject to Options under the Plan.

         4.2 CHANGES IN CAPITALIZATION. In the event of any change in the
outstanding shares of Stock of the Company by reason of any stock dividend,
split, recapitalization, reorganization, merger, consolidation, combination,
exchange of shares, or rights offering to purchase stock at a price
substantially below fair market value, or other similar corporate change, the
aggregate number of shares which may be subject to Options under the Plan and
the terms of any outstanding Option, including the number and kind of shares
subject to such Options and the purchase price per share thereof, shall be
appropriately adjusted by the Board, consistent with such change and in such
manner as the Board, in its sole discretion, may deem equitable to prevent
substantial dilution or enlargement of the rights granted to or available for
Optionees. Notwithstanding the preceding sentence, in no event shall any
fraction of a share of Stock be issued upon the exercise of an Option.

5.       ELIGIBLE PARTICIPANTS

         The following persons are Participants eligible to participate in the
Plan:

                                       2
<Page>

         5.1 INCENTIVE STOCK OPTIONS. Incentive Stock Options may be granted
only to employees of the Company or any Subsidiary, including officers and
directors who are also employees of the Company or any Subsidiary.

         5.2 NON-STATUTORY STOCK OPTIONS. Non-statutory stock options may be
granted to (i) any employee of the Company or any Subsidiary, including any
officer or director who is also an employee of the Company or any Subsidiary;
and (ii) any consultant to, or other independent contractor of, the Company.

6.       GRANT OF OPTIONS

         Subject to the terms, conditions, and limitations set forth in this
Plan, the Board may from time to time grant Options to purchase shares of the
Company's Stock to those eligible Participants as may be selected by the Board,
in such amounts and on such other terms as the Board in its sole discretion
shall determine. Such Options may be (i) "Incentive Stock Options" so designated
by the Board and which, when granted, are intended to qualify as incentive stock
options as defined in Section 422 of the Code; (ii) "Non-Statutory Stock
Options" so designated by the Board and which, when granted, are not intended
to, or do not, qualify as incentive stock options under Section 422 of the Code;
or (iii) a combination of both. The date on which the Board approves the
granting of an Option shall be the Date of Grant of such Option, unless a later
date is specified by the Board on such date of approval. Notwithstanding the
foregoing, with respect to the grant of any Incentive Stock Option under the
Plan, the aggregate fair market value of Stock (determined as of the date the
Option is granted) with respect to which Incentive Stock Options are exercisable
for the first time by an Optionee in any calendar year (under all such stock
option plans of the Company or Subsidiaries) shall not exceed $100,000. Each
grant of an Option under the Plan shall be evidenced by a written stock option
agreement between the Company and the Optionee setting forth the terms and
conditions, not inconsistent with the Plan, under which the Option so granted
may be exercised pursuant to the Plan and containing such other terms with
respect to the Option as the Board in its sole discretion may determine.

7.       OPTION PRICE AND FORM OF PAYMENT

         The purchase price for a share of Stock subject to an Option granted
hereunder shall not be less than 100% of the fair market value of the Stock. For
purposes of this Section 7, the "fair market value" of the Stock shall be
determined as follows:

                           (a) if the Stock of the Company is listed or admitted
                  to unlisted trading privileges on a national securities
                  exchange, the fair market value on any given day shall be the
                  closing sale price for the Stock, or if no sale is made on
                  such day, the closing bid price for such day on such exchange;

                           (b) if the Stock is not listed or admitted to
                  unlisted trading privileges on a national securities exchange,
                  the fair market value on any given day shall be the closing
                  sale price for the Stock as reported on the NASDAQ National
                  Market System on such day, or if no sale is made on such day,
                  the closing bid price for such day as entered by a market
                  maker for the Stock;

                           (c) if the Stock is not listed on a national
                  securities exchange, is not admitted to unlisted trading
                  privileges on any such exchange, and is not eligible for
                  inclusion in the NASDAQ National Market System, the fair
                  market value on any given day shall be the average of the
                  closing representative bid and asked prices as reported on the
                  NASDAQ System, and if not reported on such system, then as
                  reported by the National Quotation

                                       3
<Page>

                  Bureau, Inc. or such other publicly available compilation of
                  the bid and asked prices of the Stock in any over-the-counter
                  market on which the Stock is traded; or

                           (d) if there exists no public trading market for the
                  Stock, the fair market value on any given day shall be an
                  amount determined in good faith by the Committee in such
                  manner as it may reasonably determine in its discretion,
                  provided that such amount shall not be less than the book
                  value per share as reasonably determined by the Board as of
                  the date of determination or less than the par value of the
                  Stock.

Notwithstanding the foregoing, in the case of an Incentive Stock Option granted
to any Optionee then owning more than 10% of the voting power of all classes of
the Company's stock, the purchase price per share of the Stock subject to such
Option shall not be less than 110% of the fair market value of the Stock on the
date of grant of the Incentive Stock Option, determined as provided above.

         Except as provided herein, the purchase price of each share of Stock
purchased upon the exercise of any Option shall be paid:

                           (a) in United States dollars in cash or by check,
                  bank draft or money order payable to the order of the Company;
                  or

                           (b) at the discretion of the Committee, through the
                  delivery of shares of Stock valued at fair market value at the
                  time the Option is exercised (as determined in the manner
                  provided under this Plan); or

                           (c) at the discretion of the Committee, by a
                  combination of both (a) and (b) above; or

                           (d) by such other method as may be permitted in the
                  written stock option agreement between the Company and the
                  Optionee.

         If such form of payment is permitted, the Committee shall determine
procedures for tendering Stock as payment upon exercise of an Option and may
impose such additional limitations and prohibitions on the use of Stock as
payment upon the exercise of an option as it deems appropriate.

         If the Committee in its sole discretion so agrees, the Company may
finance the amount payable by an Optionee upon exercise of any Option upon such
terms and conditions as the Committee may determine at the time such Option is
granted under this Plan.

8.       EXERCISE OF OPTIONS

         8.1 MANNER OF EXERCISE. An Option, or any portion thereof, shall be
exercised by delivering a written notice of exercise to the Company and paying
to the Company the full purchase price of the Stock to be acquired upon the
exercise of the Option. Until certificates for the Stock acquired upon the
exercise of an Option are issued to an Optionee, such Optionee shall not have
any rights as a shareholder of the Company with respect to such Stock.

         8.2 LIMITATIONS AND CONDITIONS ON EXERCISE OF OPTIONS. In addition to
any other limitations or conditions contained in this Plan or that may be
imposed by the Committee from time to time or in the stock option agreement to
be entered into with respect to Options granted hereunder, the following
limitations and conditions shall apply to the exercise of Options granted under
this Plan:

                                       4
<Page>

                  8.2.1 No Incentive Stock Option may be exercisable by its
         terms after the expiration of 10 years from the date of the grant
         thereof.

                  8.2.2 No Incentive Stock Option granted pursuant to the Plan
         to an eligible Participant then owning more than 10% of the voting
         power of all classes of the Company's stock may be exercisable by its
         terms after the expiration of five years from the date of the grant
         thereof.

9.       INVESTMENT PURPOSES

         Unless a registration statement under the Securities Act of 1933 is in
effect with respect to Stock to be purchased upon exercise of Options to be
granted under the Plan, the Company shall require that an Optionee agree with
and represent to the Company in writing that he or she is acquiring such shares
of Stock for the purpose of investment and with no present intention to
transfer, sell or otherwise dispose of such shares of Stock other than by
transfers which may occur by will or by the laws of descent and distribution,
and no shares of Stock may be transferred unless, in the opinion of counsel to
the Company, such transfer would be in compliance with applicable securities
laws. In addition, unless a registration statement under the Securities Act of
1933 is in effect with respect to the Stock to be purchased under the Plan, each
certificate representing any shares of Stock issued to an Optionee hereunder
shall have endorsed thereon a legend in substantially the following form:

         THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED WITHOUT
         REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT")
         AND WITHOUT REGISTRATION UNDER ANY APPLICABLE STATE SECURITIES LAWS, IN
         RELIANCE UPON EXEMPTION(S) CONTAINED THEREIN. NO TRANSFER OF THESE
         SHARES OR ANY INTEREST THEREIN MAY BE MADE EXCEPT PURSUANT TO EFFECTIVE
         REGISTRATION STATEMENTS UNDER SUCH LAWS UNLESS THE COMPANY HAS RECEIVED
         AN OPINION OF COUNSEL SATISFACTORY TO IT THAT SUCH TRANSFER OR
         DISPOSITION DOES NOT REQUIRE REGISTRATION UNDER SUCH LAWS AND, FOR ANY
         SALES UNDER RULE 144 OF THE ACT, SUCH EVIDENCE AS IT SHALL REQUEST FOR
         COMPLIANCE WITH THAT RULE, OR APPLICABLE STATE SECURITIES LAWS.

10.      TRANSFERABILITY OF OPTIONS

         Any grant of an Option (as defined in Rule 16a-1(c) under Section 16(a)
of the Exchange Act) under this Plan may permit the transfer thereof by the
Participant upon such terms and conditions as the Board shall specify.

11.      TERMINATION OF OPTIONS

         11.1 GENERALLY. Except as otherwise provided in this Section 11, if an
Optionee's employment with the Company or Subsidiary is terminated (hereinafter
"Termination") other than by death or Disability (as hereinafter defined), the
Optionee may exercise any Option granted under the Plan, to the extent the
Optionee was entitled to exercise the Option at the date of Termination, except
that an Optionee holding an ISO may exercise the same for a period of three
months after the date of Termination or until the term of the Option has
expired, whichever date is earlier.

         11.2 DEATH OR DISABILITY OF OPTIONEE. In the event of the death or
Disability of an Optionee prior to expiration of an Option held by him or her,
the following provisions shall apply:

                  11.2.1 If the Optionee is at the time of his or her Disability
         employed by the Company or a Subsidiary and has been in continuous
         employment (as determined by the Committee in its

                                       5
<Page>

         sole discretion) since the date of grant of the Option, then the
         Option may be exercised by the Optionee until the earlier of one year
         following the date of such Disability or the expiration date of the
         Option, but only to the extent the Optionee was entitled to exercise
         such Option at the time of his or her Disability. For the purpose of
         this Section 11, the term "Disability" shall mean a permanent and
         total disability as defined in Section 22(e)(3) of the Code. The
         determination of whether an Optionee has a Disability within the
         meaning of Section 22(e)(3) shall be made by the Committee in its
         sole discretion.

                  11.2.2 If the Optionee is at the time of his or her death
         employed by the Company or a Subsidiary and has been in continuous
         employment (as determined by the Committee in its sole discretion)
         since the date of grant of the Option, then the Option may be exercised
         by the Optionee's estate or by a person who acquired the right to
         exercise the Option by will or the laws of descent and distribution,
         until the earlier of one year from the date of the Optionee's death or
         the expiration date of the Option, but only to the extent the Optionee
         was entitled to exercise the Option at the time of death.

                  11.2.3 If the Optionee dies within three months after
         Termination, the Option may be exercised until the earlier of nine
         months following the date of death or the expiration date of the
         Option, by the Optionee's estate or by a person who acquires the right
         to exercise the Option by will or the laws of descent or distribution,
         but only to the extent the Optionee was entitled to exercise the Option
         at the time of Termination.

         11.3 TERMINATION FOR CAUSE. If the employment of an Optionee is
terminated by the Company or a Subsidiary for cause, then the Committee shall
have the right to cancel any Options granted to the Optionee under the Plan.

         11.4 CERTAIN TERMINATIONS OF EMPLOYMENT, HARDSHIP AND APPROVED LEAVES
OF ABSENCE. Notwithstanding any other provision of this Plan to the contrary, in
the event of termination of employment by reason of death, disability, normal
retirement, early retirement with the consent of the Corporation, termination of
employment to enter public service with the consent of the Corporation or leave
of absence approved by the Corporation, or in the event of hardship or other
special circumstances, of a Participant who holds an Option that is not
immediately and fully exercisable, the Board may take any action that it deems
to be equitable under the circumstances or in the best interests of the
Corporation, including without limitation waiving or modifying any limitation or
requirement with respect to any award under this Plan.

         11.5 SUSPENSION OR TERMINATION FOR MISCONDUCT. If the Committee
reasonably believes that an Optionee has committed an act of misconduct, it may
suspend the Optionee's right to exercise any Option pending a determination by
the Committee. If the Committee determines that an Optionee has committed an act
of embezzlement, fraud, dishonesty, nonpayment of an obligation owed to the
Company, breach of fiduciary duty or deliberate disregard of the Company's rules
resulting in loss, damage or injury to the Company, or if an Optionee makes an
unauthorized disclosure of any Company trade secret or confidential information,
engages in any conduct constituting unfair competition with respect to the
Company, or induces any party to breach a contract with the Company, neither the
Optionee nor the Optionee's estate shall be entitled to exercise any Option
whatsoever. In making such determination, the Committee shall act fairly and
shall give the Optionee an opportunity to appear and present evidence on the
Optionee's behalf at a hearing before the Committee.

                                       6
<Page>

12.      AMENDMENT AND TERMINATION OF PLAN; CANCELLATION OF OPTIONS; ADJUSTMENTS

         12.1 This Plan may be amended from time to time or terminated by the
Board; PROVIDED, HOWEVER, except as expressly authorized by this Plan, no
amendment shall increase the number of Common Shares specified in Section 4.1
hereof without the further approval of the stockholders of the Corporation.

         12.2 With the concurrence of the affected Participant, the Board may
cancel any agreement evidencing Option Rights or any other award granted under
this Plan. In the event of any such cancellation, the Board may authorize the
granting of a new Option hereunder, which may or may not cover the same number
of Common Shares as had been covered by the cancelled Option or other award, at
such Option Price, in such manner and subject to such other terms and conditions
as would have been permitted under this Plan had the cancelled Option not been
granted.

         12.3 The Board may make or provide for such adjustments in the number
of Common Shares covered by outstanding Options and the Option Prices per Common
Share and the kind of shares (including shares of another issuer) covered
thereby, as the Board may in good faith determine to be equitably required in
order to prevent dilution or expansion of the rights of Participants that
otherwise would result from (a) any stock dividend, stock split, combination of
shares, recapitalization or other consolidation, spin-off, spin-out, split-off,
split-up, reorganization, partial or complete liquidation or other distribution
of assets, issuance of warrants or other rights to purchase securities or any
other corporate transaction or event having an effect similar to any of the
foregoing. In the event of any such transaction or event, the Board may provide
in substitution for any or all outstanding Options under this Plan such
alternative consideration as it may in good faith determine to be equitable
under the circumstances and may require in connection therewith the surrender of
all Options so replaced. Moreover, the Board may on or after the Date of Grant
provide in the agreement evidencing any Option under this Plan that the holder
of the Option may elect to receive an equivalent Option in respect of securities
of the surviving entity of any merger, consolidation or other transaction or
event having a similar effect, or the Board may provide that the holder will
automatically be entitled to receive such an equivalent Option. The Board may
also make or provide for such adjustments in the numbers of Common Shares
specified in Sections 4.1 of this Plan as the Board may in good faith determine
to be appropriate in order to reflect any transaction or event described in this
Section 12.3.

13.      MISCELLANEOUS PROVISIONS

         13.1 NO RIGHT TO CONTINUED EMPLOYMENT. No person shall have any claim
or right to be granted an Option under the Plan, and the grant of an Option
under the Plan shall not be construed as giving an Optionee the right to
continued employment with the Company. The Company further expressly reserves
the right at any time to dismiss an Optionee or reduce an Optionee's
compensation with or without cause, free from any liability, or any claim under
the Plan, except as provided herein or in a stock option agreement.

         13.2 PAYMENT OF WITHHOLDING TAXES. The Company shall have the right to
require that payment or provision for payment of any and all withholding taxes
due upon the grant or exercise of an Option hereunder or the disposition of any
Stock or other property acquired upon exercise of an Option be made by an
Optionee. The Board shall have the right to establish such other rules and
regulations or impose such other terms and conditions in any agreement relating
to an Option granted hereunder with respect to tax withholding as the Board may
deem necessary and appropriate.

                                       7
<Page>

         13.3 GOVERNING LAW. The Plan shall be administered in the State of
Minnesota, and the validity, construction, interpretation, and administration of
the Plan and all rights relating to the Plan shall be determined solely in
accordance with the laws of such state, unless controlled by applicable federal
law, if any.

         13.4 FRACTIONAL SHARES. The Corporation shall not be required to issue
any fractional Common Shares pursuant to this Plan. The Board may provide for
the elimination of fractions or for the settlement thereof in cash.

14.      EFFECTIVE DATE

         The effective date of the Plan is the date of its approval by the
shareholders of the Company. No Option may be granted after the day preceding
the tenth anniversary of such shareholder approval; provided, however, that all
outstanding Options shall remain in effect until such outstanding Options have
expired or been canceled.

                                       8

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