Document:

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                                                                   EXHIBIT 10.14

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                         ARISTOTLE INTERNATIONAL, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                  (Adopted by the Board on  _______ __, 2000)

================================================================================
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                               Table of Contents
                               -----------------

<TABLE>
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                                                                            Page
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1.   Purpose Of The Plan.................................................     1

2.   Definitions.........................................................     1
     "Accumulation Period"...............................................     1
     "Board".............................................................     1
     "Code"..............................................................     1
     "Committee".........................................................     1
     "Company"...........................................................     1
     "Compensation"......................................................     1
     "Corporate Reorganization"..........................................     1
     "Eligible Employee".................................................     1
     "Exchange Act"......................................................     2
     "Fair Market Value".................................................     2
     "Initial Public Offering"...........................................     2
     "Offering Period"...................................................     2
     "Participating Company".............................................     2
     "Plan"..............................................................     2
     "Plan Account"......................................................     2
     "Purchase Price"....................................................     3
     "Stock".............................................................     3
     "Subsidiary"........................................................     3

3.   Administration of The Plan..........................................     3
     3.1.  Committee Composition.........................................     3
     3.2.  Committee Responsibilities....................................     3

4.   Enrollment And Participation........................................     3
     4.1.  Offering Periods..............................................     3
     4.2.  Accumulation Periods..........................................     3
     4.3.  Enrollment....................................................     3
     4.4.  Duration of Participation.....................................     3
     4.5.  Applicable Offering Period....................................     4

5.   Employee Contributions..............................................     4
     5.1.  Frequency of Payroll Deductions...............................     4
     5.2.  Amount of Payroll Deductions..................................     4
     5.3.  Changing Withholding Rate.....................................     4
     5.4.  Discontinuing Payroll Deductions..............................     4
     5.5.  Limit on Number of Elections..................................     5

6.   Withdrawal From The Plan............................................     5
     6.1.  Withdrawal....................................................     5
     6.2.  Re-enrollment After Withdrawal................................     5

7.   Change In Employment Status.........................................     5
     7.1.  Termination of Employment.....................................     5
</TABLE>

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<TABLE>
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     7.2.  Leave of Absence..............................................     5
     7.3.  Death.........................................................     5

8.   Plan Accounts and Purchase of Shares................................     5
     8.1.  Plan Accounts.................................................     5
     8.2.  Purchase Price................................................     6
     8.3.  Number of Shares Purchased....................................     6
     8.4.  Available Shares Insufficient.................................     6
     8.5.  Issuance of Stock.............................................     6
     8.6.  Unused Cash Balances..........................................     6
     8.7.  Stockholder Approval..........................................     7

9.   Limitations on Stock Ownership......................................     7
     9.1.  Five Percent Limit............................................     7
     9.2.  Dollar Limit..................................................     7

10.  Rights Not Transferable.............................................     7

11.  No Rights as an Employee............................................     8

12.  No Rights as a Stockholder..........................................     8

13.  Securities Law Requirements.........................................     8

14.  Stock Offered Under The Plan........................................     8
     14.1  Authorized Shares.............................................     8
     14.2  Antidilution Adjustments......................................     8
     14.3  Reorganizations...............................................     8

15.  Amendment or Discontinuance.........................................     9

16.  Execution...........................................................     9
</TABLE>

                                     -ii-
<PAGE>

                         ARISTOTLE INTERNATIONAL, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

     1.   Purpose of the Plan. The Plan was adopted by the Board on _______ __,
          -------------------
2000, effective as of the date of the Initial Public Offering. The purpose of
the Plan is to provide Eligible Employees with an opportunity to increase their
proprietary interest in the success of the Company by purchasing Stock from the
Company on favorable terms and to pay for such purchases through payroll
deductions. The Plan is intended to qualify under section 423 of the Code.

     2.   Definitions.
          -----------

     "Accumulation Period" means a six-month period during which contributions
      -------------------
may be made toward the purchase of Stock under the Plan, as determined pursuant
to Section 4.2.

     "Board" means the Board of Directors of the Company, as constituted from
      -----
time to time.

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

     "Committee" means a committee of the Board, as described in Section 3.
      ---------

     "Company" means Aristotle International, Inc., a Delaware corporation.
      -------

     "Compensation" means (i) the total compensation paid in cash to a
      ------------
Participant by a Participating Company, including salaries, wages, bonuses,
incentive compensation, commissions, overtime pay and shift premiums, plus (ii)
any pre-tax contributions made by the Participant under section 401(k) or
Section 125 of the Code. "Compensation" shall exclude all non-cash items, moving
or relocation allowances, cost-of-living equalization payments, car allowances,
tuition reimbursements, imputed income attributable to cars or life insurance,
severance pay, fringe benefits, contributions or benefits received under
employee benefit plans, income attributable to the exercise of stock options,
and similar items. The Committee shall determine whether a particular item is
included in Compensation.

     "Corporate Reorganization" means:
      ------------------------

          (i)  A merger or consolidation of the Company with or into another
entity, or any other corporate reorganization other than a reincorporation or
recapitalization; or

          (ii) The sale, transfer or other disposition of all or substantially
all of the Company's assets or the complete liquidation or dissolution of the
Company.

     "Eligible Employee" means any employee of a Participating Company who meets
      -----------------
both of the following requirements:

                                      -1-
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          (i)  His or her customary employment is for more than five (5) months
per calendar year and for more than twenty (20) hours per week; and

          (ii) He or she has been an employee of a Participating Company for not
less than six (6) consecutive months.

     The foregoing notwithstanding, an individual shall not be considered an
Eligible Employee if his or her participation in the Plan is prohibited by the
law of any country which has jurisdiction over him or her or if he or she is
subject to a collective bargaining agreement that does not provide for
participation in the Plan.

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

     "Fair Market Value" means the market price of Stock, determined by the
      -----------------
Committee as follows:

          (i)    If Stock was traded on The Nasdaq National Market on the date
in question, then the Fair Market Value shall be equal to the last-transaction
price quoted for such date by The Nasdaq National Market;

          (ii)   If Stock was traded on a stock exchange on the date in
question, then the Fair Market Value shall be equal to the closing price
reported by the applicable composite transactions report for such date; or

          (iii)  If none of the foregoing provisions is applicable, then the
Fair Market Value shall be determined by the Committee in good faith on such
basis as it deems appropriate.

     Whenever possible, the determination of Fair Market Value by the Committee
shall be based on the prices reported in the Wall Street Journal or as reported
                                             -------------------
directly to the Company by Nasdaq or a stock exchange. Such determination shall
be conclusive and binding on all persons.

     "Initial Public Offering" means the initial offering of Stock to the public
      -----------------------
pursuant to a registration statement filed by the Company with the Securities
and Exchange Commission.

     "Offering Period" means a 24-month period with respect to which the right
      ---------------
to purchase Stock may be granted under the Plan, as determined pursuant to
Section 4.1.

     "Participant" means an Eligible Employee who elects to participate in the
      -----------
Plan, as provided in Section 4.3.

     "Participating Company" means (i) the Company and (ii) each present or
      ---------------------
future Subsidiary designated by the Committee as a Participating Company.

     "Plan" means this Aristotle International, Inc. 2000 Employee Stock
      ----
Purchase Plan, as it may be amended from time to time.

     "Plan Account" means the account established for each Participant pursuant
      ------------
to Section 8.1.

                                      -2-
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     "Purchase Price" means the price at which Participants may purchase Stock
      --------------
under the Plan, as determined pursuant to Section 8.2.

     "Stock" means the Common Stock of the Company.
      -----

     "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 stock possessing 50%
or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

     3.   Administration of the Plan.
          --------------------------

          3.1.  Committee Composition. The Plan shall be administered by the
                ---------------------
Committee. The Committee shall consist exclusively of one or more directors of
the Company, who shall be appointed by the Board.

          3.2.  Committee Responsibilities. The Committee shall interpret the
                --------------------------
Plan and make all other policy decisions relating to the operation of the Plan.
The Committee may adopt such rules, guidelines and forms as it deems appropriate
to implement the Plan. The Committee's determinations under the Plan shall be
final and binding on all persons.

     4.   Enrollment and Participation.
          ----------------------------

          4.1.  Offering Periods. While the Plan is in effect, two Offering
                ----------------
Periods shall commence in each calendar year. The Offering Periods shall consist
of the 24-month periods commencing on each February 1 and August 1, except that
the first Offering Period shall commence on the date of the Initial Public
Offering and end on July 31, 2002.

          4.2.  Accumulation Periods. While the Plan is in effect, two
                --------------------
Accumulation Periods shall commence in each calendar year. The Accumulation
Periods shall consist of the six month periods commencing on February 1 and
August 1, except that the first Accumulation Period shall commence on the date
of the Initial Public Offering and end on July 31, 2000.

          4.3.  Enrollment. Any individual who, on the day preceding the first
                ----------
day of an Offering Period, qualifies as an Eligible Employee may elect to become
a Participant in the Plan for such Offering Period by executing the enrollment
form prescribed for this purpose by the Committee. The enrollment form shall be
filed with the Company at the prescribed location not later than 15 days prior
to the commencement of such Offering Period.

          4.4.  Duration of Participation. Once enrolled in the Plan, a
                -------------------------
Participant shall continue to participate in the Plan until he or she ceases to
be an Eligible Employee, withdraws from the Plan under Section 5.1 or reaches
the end of the Offering Period in which his or her employee contributions were
discontinued under Section 5.4 or 9.2. A Participant who discontinued employee
contributions under Section 5.4 or 9.2 or withdrew from the Plan under Section
6.1 may again become a Participant, if he or she then is an Eligible Employee,
by following the procedure described in Subsection 4.3 above. A Participant
whose employee contributions were discontinued automatically under Section 9.2
shall automatically resume

                                      -3-
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participation at the beginning of the earliest Offering Period ending in the
next calendar year, if he or she then is an Eligible Employee.

          4.5.  Applicable Offering Period. For purposes of calculating the
                --------------------------
purchase price under Section 8.2, the applicable Offering Period shall be
determined as follows:

          (i)   Once a Participant is enrolled in the Plan for an Offering
     Period, such Offering Period shall continue to apply to him or her until
     the earliest of: (A) the end of such Offering Period; (B) the end of his or
     her participation under Subsection 4.4 above; or (C) re-enrollment in a
     subsequent Offering Period under Paragraph (ii) below.

          (ii)  In the event that the Fair Market Value of Stock on the last
     trading day before the commencement of the Offering Period in which the
     Participant is enrolled is higher than on the last trading day before the
     commencement of any subsequent Offering Period, the Participant shall
     automatically be re-enrolled for such subsequent Offering Period.

          (iii) When a Participant reaches the end of an Offering Period but his
     or her participation is to continue, then such Participant shall
     automatically be re-enrolled for the Offering Period that commences
     immediately after the end of the prior Offering Period.

     5.   Employee Contributions.
          ----------------------

          5.1.  Frequency of Payroll Deductions. A Participant may purchase
                -------------------------------
shares of Stock under the Plan solely by means of payroll deductions. Payroll
deductions, as designated by the Participant pursuant to section 5.2 below,
shall occur on each payday during participation in the Plan.

          5.2.  Amount of Payroll Deductions. An Eligible Employee shall
                ----------------------------
designate on the enrollment form the portion of his or her Compensation that he
or she elects to have withheld for the purchase of Stock. Such portion shall be
a whole percentage of the Eligible Employee's Compensation, but not less than
one percent (1)% nor more than fifteen percent (15%).

          5.3.  Changing Withholding Rate. If a Participant wishes to change the
                -------------------------
rate of payroll withholding, he or she may do so by filing a new enrollment form
with the Company at the prescribed location at any time. The new withholding
rate shall be effective as soon as reasonably practicable after such form has
been received by the Company. The new withholding rate shall be a whole
percentage of the Eligible Employee's Compensation, but not less than one
percent (1%) nor more than fifteen percent (15%).

          5.4.  Discontinuing Payroll Deductions. If a Participant wishes to
                --------------------------------
discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. Payroll
withholding shall cease as soon as reasonably practicable after such form has
been received by the Company. In addition, employee contributions may be
discontinued automatically pursuant to Section 9.2. A Participant who has
discontinued employee contributions may resume such contributions by filing a
new

                                      -4-
<PAGE>

enrollment form with the Company at the prescribed location. Payroll withholding
shall resume as soon as reasonably practicable after such form has been received
by the Company.

          5.5.  Limit on Number of Elections. No Participant shall make more
                ----------------------------
than two (2) elections under sections 5.3 or 5.4 above during any Offering
Period.

     6.   Withdrawal from the Plan.
          ------------------------

          6.1.  Withdrawal. A Participant may elect to withdraw from the Plan by
                ----------
filing the prescribed form with the Company at the prescribed location at any
time before the last day of an Accumulation Period. As soon as reasonably
practicable thereafter, payroll deductions shall cease and the entire amount
credited to the Participant's Plan Account shall be refunded to him or her in
cash, without interest. No partial withdrawals shall be permitted.

          6.2.  Re-enrollment After Withdrawal. A former Participant who has
                ------------------------------
withdrawn from the Plan shall not be a Participant until he or she re-enrolls in
the Plan under Section 4.3. Re-enrollment may be effective only at the
commencement of an Offering Period.

     7.   Change in Employment Status.
          ---------------------------

          7.1.  Termination of Employment. Termination of employment as an
                -------------------------
Eligible Employee for any reason, including death, shall be treated as an
automatic withdrawal from the Plan under Section 6.1. Notwithstanding the
foregoing in this Section 7, a transfer from one Participating Company to
another shall not be treated as a termination of employment.

          7.2.  Leave of Absence. For purposes of the Plan, employment shall not
                ----------------
be deemed to terminate when the Participant goes on a military leave, a sick
leave or another bona fide leave of absence, if the leave was approved by the
Company in writing. Employment, however, shall be deemed to terminate ninety
(90) days after the Participant goes on a leave, unless a contract or statute
guarantees his or her right to return to work. Employment shall be deemed to
terminate in any event when the approved leave ends, unless the Participant
immediately returns to work.

          7.3.  Death. In the event of the Participant's death, the amount
                -----
credited to his or her Plan Account shall be paid to a beneficiary designated by
him or her for this purpose on the prescribed form or, if none, to the
Participant's estate. Such form shall be valid only if it was filed with the
Company at the prescribed location before the Participant's death.

     8.   Plan Accounts and Purchase of Shares.
          ------------------------------------

          8.1.  Plan Accounts. The Company shall maintain a Plan Account on its
                -------------
books in the name of each Participant. Whenever an amount is deducted from the
Participant's Compensation under the Plan, such amount shall be credited to the
Participant's Plan Account. Amounts credited to Plan Accounts shall not be trust
funds and may be commingled with the Company's general assets and applied to
general corporate purposes. No interest shall be credited to Plan Accounts.

                                      -5-
<PAGE>

          8.2.  Purchase Price. The Purchase Price for each share of Stock
                --------------
purchased at the close of an Accumulation Period shall be the lower of:

          (i)   85% of the Fair Market Value of such share on the last trading
day in such Accumulation Period; or

          (ii)  85% of the Fair Market Value of such share on the last trading
day before the commencement of the applicable Offering Period (as determined
under Section 4.5) or, in the case of the first Offering Period under the Plan,
85% of the price at which one share of Stock is offered to the public in the
Initial Public Offering.

          8.3.  Number of Shares Purchased. As of the last day of each
                --------------------------
Accumulation Period, each Participant shall be deemed to have elected to
purchase the number of shares of Stock calculated in accordance with this
section 8.3, unless the Participant has previously elected to withdraw from
the Plan in accordance with Section 6.1. The amount then in the Participant's
Plan Account shall be divided by the Purchase Price, and the number of shares
that results shall be purchased from the Company with the funds in the
Participant's Plan Account. The foregoing notwithstanding, no Participant shall
purchase more than One Thousand (1,000) shares of Stock with respect to any
Accumulation Period nor more than the amounts of Stock set forth in Sections 9.2
and 14.1. The Committee may determine with respect to all Participants that any
fractional share, as calculated under this Subsection 8.3, shall be (i) rounded
down to the next lower whole share or (ii) credited as a fractional share.

          8.4.  Available Shares Insufficient. In the event that the aggregate
                -----------------------------
number of shares that all Participants elect to purchase during an Accumulation
Period exceeds the maximum number of shares remaining available for issuance
under Section 14.1, then the number of shares to which each Participant is
entitled shall be determined by multiplying the number of shares available for
issuance by a fraction, the numerator of which is the number of shares that such
Participant has elected to purchase and the denominator of which is the number
of shares that all Participants have elected to purchase.

          8.5.  Issuance of Stock. Certificates representing the shares of Stock
                -----------------
purchased by a Participant under the Plan shall be issued to him or her as soon
as reasonably practicable after the close of the applicable Accumulation Period,
except that the Committee may determine that such shares shall be held for each
Participant's benefit by a broker designated by the Committee (unless the
Participant has elected that certificates be issued to him or her). Shares may
be registered in the name of the Participant or jointly in the name of the
Participant and his or her spouse as joint tenants with right of survivorship or
as community property.

          8.6.  Unused Cash Balances. An amount remaining in the Participant's
                --------------------
Plan Account that represents the Purchase Price for any fractional share shall
be carried over in the Participant's Plan Account to the next Accumulation
Period. Any amount remaining in the Participant's Plan Account that represents
the Purchase Price for whole shares that could not be purchased by reason of
section 8.3 above, Section 9.2 or Section 14.1 shall be refunded to the
Participant in cash, without interest.

                                      -6-
<PAGE>

          8.7.  Stockholder Approval. Any other provision of the Plan
                --------------------
notwithstanding, no shares of Stock shall be purchased under the Plan unless and
until the Company's stockholders have approved the adoption of the Plan.

     9.   Limitations on Stock Ownership.
          ------------------------------

          9.1.  Five Percent Limit. Any other provision of the Plan
                ------------------
notwithstanding, no Participant shall be granted a right to purchase Stock under
the Plan if such Participant, immediately after his or her election to purchase
such Stock, would own stock possessing more than 5% of the total combined voting
power or value of all classes of stock of the Company or any parent or
Subsidiary of the Company. For purposes of this section 9.1, the following
rules shall apply:

          (i)   Ownership of stock shall be determined after applying the
     attribution rules of section 424(d) of the Code;

          (ii)  Each Participant shall be deemed to own any stock that he or she
     has a right or option to purchase under this or any other plan; and

          (iii) Each Participant shall be deemed to have the right to purchase
     one thousand (1,000) shares of Stock under this Plan with respect to each
     Accumulation Period.

     9.2. Dollar Limit. Any other provision of the Plan notwithstanding, no
          ------------
Participant shall purchase Stock with a Fair Market Value in excess of $25,000
per calendar year (under this Plan and all other employee stock purchase plans
of the Company or any parent or Subsidiary of the Company).

     For purposes of this section 9.2, the Fair Market Value of Stock shall
be determined in each case as of the beginning of the Offering Period in which
such Stock is purchased. Employee stock purchase plans not described in section
423 of the Code shall be disregarded. If a Participant is precluded by this
section 9.2 from purchasing additional Stock under the Plan, then his or her
employee contributions shall automatically be discontinued and shall resume at
the beginning of the earliest Accumulation Period ending in the next calendar
year (if he or she then is an Eligible Employee).

     10.  Rights Not Transferable.
          -----------------------

     The rights of any Participant under the Plan, or any Participant's interest
in any Stock or moneys to which he or she may be entitled under the Plan, shall
not be transferable by voluntary or involuntary assignment or by operation of
law, or in any other manner other than by beneficiary designation or the laws of
descent and distribution. If a Participant in any manner attempts to transfer,
assign or otherwise encumber his or her rights or interest under the Plan, other
than by beneficiary designation or the laws of descent and distribution, then
such act shall be treated as an election by the Participant to withdraw from the
Plan under Section 6.1.

                                      -7-
<PAGE>

     11.  No Rights as an Employee.
          ------------------------

     Nothing in the Plan or in any right granted under the Plan shall confer
upon the Participant any right to continue in the employ of a Participating
Company for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Participating Companies or of the
Participant, which rights are hereby expressly reserved by each, to terminate
his or her employment at any time and for any reason, with or without cause.

     12.  No Rights as a Stockholder.
          --------------------------

     A Participant shall have no rights as a stockholder with respect to any
shares of Stock that he or she may have a right to purchase under the Plan until
such shares have been purchased on the last day of the applicable Offering
Period.

     13.  Securities Law Requirements.
          ---------------------------

     Shares of Stock shall not be issued under the Plan unless the issuance and
delivery of such shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, and the regulations of any stock exchange or other
securities market on which the Company's securities may then be traded.

     14.  Stock Offered under the Plan.
          ----------------------------

          14.1. Authorized Shares. The maximum aggregate number of shares of
                -----------------
Stock available for purchase under the Plan is Four Hundred Thousand (400,000),
plus an annual increase to be added on the first day of the Company's fiscal
year beginning in 2001 equal to the lesser of (i) Fifty Thousand (50,000)
shares, (ii) 5% of the outstanding shares on such date or (iii) a lesser amount
determined by the Board. The aggregate number of Shares available for purchase
under the Plan shall at all times be subject to adjustment pursuant to Section
14.

          14.2. Antidilution Adjustments. The aggregate number of shares of
                ------------------------
Stock offered under the Plan, the One Thousand (1,000) share limitation
described in Section 8.3 and the price of shares that any Participant has
elected to purchase shall be adjusted proportionately by the Committee for any
increase or decrease in the number of outstanding shares of Stock resulting from
a subdivision or consolidation of shares or the payment of a stock dividend, any
other increase or decrease in such shares effected without receipt or payment of
consideration by the Company, the distribution of the shares of a Subsidiary to
the Company's stockholders or a similar event.

          14.3. Reorganizations. Any other provision of the Plan
                ---------------
notwithstanding, immediately prior to the effective time of a Corporate
Reorganization, the Offering Period then in progress shall terminate and shares
shall be purchased pursuant to Section 8, unless the Plan is assumed by the
surviving corporation or its parent corporation pursuant to the plan of merger
or consolidation. The Plan shall in no event be construed to restrict in any way
the Company's right to undertake a dissolution, liquidation, merger,
consolidation or other reorganization.

                                      -8-
<PAGE>

     15.  Amendment or Discontinuance.
          ---------------------------

     The Board shall have the right to amend, suspend or terminate the Plan at
any time and without notice. Except as provided in Section 14, any increase in
the aggregate number of shares of Stock to be issued under the Plan shall be
subject to approval by a vote of the stockholders of the Company. In addition,
any other amendment of the Plan shall be subject to approval by a vote of the
stockholders of the Company to the extent required by an applicable law or
regulation.

     16.  Execution.
          ---------

     To record the adoption of the Plan by the Board on ________ __, 2000, the
Company has caused its authorized officer to execute the same.

                                        ARISTOTLE INTERNATIONAL, INC.

                                        By:  ___________________________

                                        Its: __________________________

                                        Title: __________________________

                                      -9-<PAGE>

                                                                   EXHIBIT 10.15

                                CHARTER OF THE

                         ARISTOTLE INTERNATIONAL, INC.

                                AUDIT COMMITTEE

                                   ARTICLE I

                                    PURPOSE
                                    -------

     The purpose of the Audit Committee (the "Committee") of the Board of
Directors of Aristotle International, Inc., a Delaware corporation (the
"Company"), is:

     .    to obtain the full Board of Directors' approval of this Charter and
          review and reassess this Charter as conditions dictate, such review to
          occur not less frequently than annually;

     .    to have a clear understanding with the independent auditors that the
          independent auditors are ultimately accountable to the Board of
          Directors (the "Board") and the Committee, as the stockholders'
          representatives, and that the Board and the Committee have the
          ultimate authority in deciding to engage, evaluate, and if
          appropriate, terminate their services;

     .    to make recommendations regarding the engagement or termination of the
          Company's outside auditors, including a review of the compensation and
          independence of the auditors;

     .    to review with the Company's independent auditors the Company's
          accounting principles, policies and practices and its reporting
          policies and practices;

     .    to review with the Company's independent auditors the plan and results
          of the auditing engagement and recommend improvements in the plan;

     .    to review the scope and results of the procedures of the Company's
          internal audits;

     .    to conduct investigations of the adequacy of the Company's internal
          accounting procedures and review the results of such investigations
          with the Company's internal audit staff and with the Board; and

     .    to devise and maintain a system of internal accounting controls
          sufficient to provide reasonable assurances that (i) transactions are
          executed in accordance with management authorizations; (ii)
          transactions are recorded to permit preparation of financial
          statements in accordance with generally accepted accounting practices
          and to maintain accountability for assets; (iii) access to assets is
          permitted only in accordance with authorization; and (iv) recorded
          assets are compared with existing assets at "reasonable intervals" and
          appropriate action is taken with respect to differences.

                                      -1-
<PAGE>

                                  ARTICLE II

                               COMMITTEE MEMBERS
                               -----------------

     2.1  Number of Committee Members.  The authorized number of members of the
          ---------------------------
Committee shall be three (3) and all members of the Committee shall be directors
independent of the Company as defined in the Nasdaq National Market's
independent director and Committee corporate governance listing criteria;
provided, however, that one director who is not independent as defined in the
--------  -------
Nasdaq National Market's Rule 4200, and is not a current employee or an
immediate family member of such employee, may be appointed to the Committee, if
the Board, under exceptional and limited circumstances, determines that
membership on the Committee by the individual is required by the best interests
of the Company and its stockholders, and the Board discloses, in the next annual
proxy statement subsequent to such determination, the nature of the relationship
and the reasons for that determination.  The number of Committee members may be
changed by a duly adopted resolution of the Board, but shall not be less than
three (3) members.  The Board may designate one or more Directors as alternate
Committee members, who may replace any absent member at any meeting of the
Committee.

     2.2  Qualifications of Committee Members.  Each Committee member must be
          -----------------------------------
able to read and understand fundamental financial statements, including a
Company's balance sheet, income statement, and cash flow statement or will
become able to do so within a reasonable period of time after his or her
appointment to the Committee.  Additionally, at least one member of the
Committee must have past employment experience in finance or accounting,
requisite professional certification in accounting, or any other comparable
experience or background which results in the individual's financial
sophistication, including being or having been a chief executive officer, chief
financial officer or other senior officer with financial oversight
responsibilities.

     2.3  Appointment and Term of Office of Committee Members.  Committee
          ---------------------------------------------------
members shall be appointed by the Board to hold office until replaced by a
resolution of the Board.  Each Committee member, including a member elected to
fill a vacancy, shall hold office until the expiration of the term for which
elected and until a successor has been elected and qualified, except in the case
of the death, resignation or removal of such a member.

     2.4  Removal.  The entire Committee or any individual Committee member may
          -------
be removed from office without cause by the affirmative vote of a majority of
the Board.

     2.5  Resignation and Vacancies.  Any Committee member may resign effective
          -------------------------
upon giving oral or written notice to the Chairman of the Board, the Secretary
or the Board, unless the notice specifies a later time for the effectiveness of
such resignation.  If the resignation of a Committee member is effective at a
future time, the Board may elect a successor to take office when the resignation
becomes effective.

     Vacancies on the Committee may be filled by the Board.  Each Committee
member so elected shall hold office until a successor has been elected and
qualified by the Board, or until his or her death, resignation or removal.

                                      -2-
<PAGE>

     A vacancy or vacancies in the Committee shall be deemed to exist (i) in the
event of the death, resignation or removal of any Committee member, (ii) if the
Board by resolution declares vacant the office of a Committee member who has
been declared of unsound mind by an order of court or convicted of a felony or
(iii) if the authorized number of Committee members is increased.

                                  ARTICLE III

                              COMMITTEE MEETINGS
                              ------------------

     3.1  Place of Meetings; Meetings by Telephone.  Regular meetings of the
          ----------------------------------------
Committee may be held at any place within or outside the State of California
that has been designated from time to time by the Chairman of the Committee.  In
the absence of such a designation, regular meetings shall be held at the
principal executive office of the Company.  Special meetings of the Committee
may be held at any place within or outside the State of California that has been
designated in the notice of the meeting or, if not stated in the notice or if
there is no notice, at the principal executive office of the Company.

     Members of the Committee may participate in a meeting through the use of
conference telephone or similar communications equipment, so long as all
Committee members participating in such meeting can hear one another.
Participation in a meeting pursuant to this paragraph constitutes presence in
person at such meeting.

     3.2  Regular Meetings.  Regular meetings of the Committee may be held
          ----------------
without notice if the time and place of such meetings are fixed by resolution of
the Board or by resolution of the Committee.

     3.3  Special Meetings; Notice.  Subject to the provisions of the following
          ------------------------
paragraph, special meetings of the Committee for any purpose or purposes may be
called at any time by the Chairman of the Committee, by the Board, or by two (2)
Committee members.

     Notice of the time and place of special meetings shall be delivered
personally or by telephone to each member or sent by first-class mail, telegram,
charges prepaid or by facsimile  or electronic mail, addressed to each Committee
member at that member's address as it is shown on the records of the Company.
If the notice is mailed, it shall be deposited in the United States mail at
least four (4) days before the time of the holding of the meeting.  If the
notice is delivered personally or by telephone or by facsimile, telegram or
electronic mail, it shall be delivered personally or by telephone, facsimile or
electronic mail, or to the telegraph company at least forty-eight (48) hours
before the time of the holding of the meeting.  Any oral notice given personally
or by telephone may be communicated either to the Committee member or to a
person at the office of the member who the person giving the notice has reason
to believe will promptly communicate it to the member.  The notice need not
specify the purpose of the meeting.

     3.4  Quorum.  A majority of the authorized number of Committee members
          ------
shall constitute a quorum for the transaction of business, except to adjourn as
provided in Section 3.6 of this Charter.  Every act or decision done or made by
a majority of the members present at a meeting duly held at which a quorum is
present is the act of the Committee, subject to certain

                                      -3-
<PAGE>

provisions of the Delaware General Corporation Law, the Certificate of
Incorporation and other applicable law.

     A meeting at which a quorum is initially present may continue to transact
business notwithstanding the withdrawal of Committee members, if any action
taken is approved by at least a majority of the required quorum for such
meeting.

     3.5  Waiver of Notice.  Notice of a meeting need not be given to any
          ----------------
Committee member who signs a waiver of notice or a consent to holding the
meeting or an approval of the minutes thereof, whether before or after the
meeting, or who attends the meeting without protesting, prior thereto or at its
commencement, the lack of notice to such member.  All such waivers, consents,
and approvals shall be filed with the corporate records or made a part of the
minutes of the meeting.  A waiver of notice need not specify the purpose of any
regular or special meeting of the Committee.

     3.6  Adjournment.  A majority of the Committee members present, whether or
          -----------
not a quorum is present, may adjourn any meeting to another time and place.

     3.7  Notice of Adjournment.  If the meeting is adjourned for more than
          ---------------------
twenty-four (24) hours, notice of any adjournment to another time and place
shall be given prior to the time of the reconvened meeting to the Committee
members who were not present at the time of the adjournment.

     3.8  Committee Action by Written Consent Without a Meeting.  Any action
          -----------------------------------------------------
required or permitted to be taken by the Committee may be taken without a
meeting, if all Committee members individually or collectively consent in
writing to such action.  Such written consent or consents shall be filed with
the minutes of the proceedings of the Committee.  Such action by written consent
shall have the same force and effect as a unanimous vote of the Committee.

                                  ARTICLE IV

                               COMMITTEE MEMBERS
                               -----------------

     4.1  Chairman of the Committee.  The Chairman of the Committee, if such an
          -------------------------
officer be elected, shall, if present, preside at meetings of the Committee and
exercise and perform such other powers and duties as may from time to time be
assigned by the Board or as may be prescribed by this Charter.  The Chairman of
the Committee shall be elected by resolution of the Board.  In the absence or
disability of the Chairman of the Committee, the Board shall appoint an
alternative Chairman to preside at the Committee meetings.

     4.2  Secretary.  The Secretary shall keep or cause to be kept, at the
          ---------
principal executive office of the Company or such other place as the Board may
direct, a book of minutes of all meetings and actions of the Committee.  The
minutes shall show the time and place of each meeting, whether regular or
special (and, if special, how authorized and the notice given), the names of
those present and the proceedings thereof.

     The Secretary shall give, or cause to be given, notice of all meetings of
the Committee required to be given by law, this Charter or by the Company's
Bylaws.

                                      -4-
<PAGE>

                                   ARTICLE V

                              RECORDS AND REPORTS
                              -------------------

     5.1  Maintenance and Inspection of Charter.  The Company shall keep at its
          -------------------------------------
principal executive office or, if its principal executive office is not in the
State of California, at its principal business office in California, the
original or a copy of this Charter as amended to date, which shall be open to
inspection by the stockholders at all reasonable times during office hours.

     5.2  Minutes and Reports.  The Committee shall keep regular minutes of its
          -------------------
proceedings, which shall be filed with the Secretary of the Company.  All action
by the Committee shall be reported to the Board at the next meeting thereof,
and, insofar as rights of third parties shall not be affected thereby, shall be
subject to revision and alteration by the Board.

     5.3  Maintenance and Inspection of Minutes.  The records and the minutes of
          -------------------------------------
proceedings of the Committee shall be kept at such place or places as are
designated by the Board or, in absence of such designation, at the principal
executive office of the Company.  The minutes shall be kept in written form, and
the accounting books and records shall be kept either in written form or in any
other form capable of being converted into written form.

     The minutes and records shall be open to inspection upon the written demand
on the Company of any stockholder or holder of a voting trust certificate at any
reasonable time during usual business hours, for a purpose reasonably related to
such holder's interests as a stockholder or as the holder of a voting trust
certificate.  Such inspection by a stockholder or holder of a voting trust
certificate may be made in person or by an agent or attorney and the right of
inspection includes the right to copy and make extracts.  Such rights of
inspection shall extend to the records of each subsidiary of the Company.

                                   ARTICLE VI

                                GENERAL MATTERS
                                ---------------

     6.1  Construction; Definitions.  Unless the context requires otherwise, the
          -------------------------
general provisions, rules of construction, and definitions in the Delaware
General Corporation Law shall govern the construction of this Charter.  Without
limiting the generality of this provision, the singular number includes the
plural, the plural number includes the singular, and the term "person" includes
both a corporation and a natural person.

                                  ARTICLE VII

                                   AMENDMENTS
                                   ----------

     7.1  Amendment by Board.  This Charter and any provision contained herein
          ------------------
may be amended or repealed by the Board.

     7.2  Record of Amendments.  Whenever an amendment or a new Charter is
          --------------------
adopted, it shall be copied in the book of minutes with the original Charter.
If any provision of this Charter

                                      -5-
<PAGE>

is repealed, the fact of repeal, with the date of the meeting at which the
repeal was enacted or written consent was filed, shall be stated in said book.

                                 ARTICLE VIII

                                INTERPRETATION
                                --------------

     Reference in this Charter to any provision of the Delaware General
Corporation Law shall be deemed to include all amendments thereof.

                                      -6-
<PAGE>

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