Document:

<PAGE>   1
                                                                     EXHIBIT 4.1

                             UNIVERSAL ACCESS, INC.

                    AMENDED 1998 EMPLOYEE STOCK OPTION PLAN

SECTION 1. PURPOSE; DEFINITIONS.

     The purpose of the Universal Access, Inc. 1998 Employee Stock Option Plan
(the "Plan") is to enable Universal Access, Inc. (the "Company") to attract,
retain and reward directors, officers, employees, service providers and key
advisors to the Company and its Subsidiaries and Affiliates, and strengthen the
mutuality of interests between such persons and the Company's shareholders, by
offering them performance-based stock incentives in the Company.

     For purposes of the Plan, the following terms shall be defined as set forth
below:

          (a)  "Affiliate" means any entity other than the Company and its
     Subsidiaries that is designated by the Board as a participating employer
     under the Plan, provided that the Company directly or indirectly owns at
     least 20% of the combined voting power of all classes of stock of such
     entity or more than 50% of the ownership interests in such entity.

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

          (c)  "Cause" means a felony conviction of a participant or the
     failure of a participant to contest prosecution for a felony, or a
     participant's willful misconduct or dishonesty, or other unauthorized
     activity any of which, in the good faith opinion of the Committee, is
     directly and materially harmful to the business or reputation of the
     Company, a Subsidiary or an Affiliate.

          (d)  "Code" means the Internal Revenue Code of 1986, as amended from
     time to time, and any successor thereto.

          (e)  "Committee" means the Committee referred to in Section 2 of the
     Plan. If at any time no Committee shall be in office, then the functions
     of the Committee specified in the Plan may be exercised by the Board, as
     set forth in Section 2 hereof.

          (f)  "Company" means Universal Access, Inc., a corporation organized
     under the laws of the State of Illinois, or any successor corporation.

          (g)  "Disability" means disability as determined under procedures
     established by the Committee for purposes of this Plan and shall in all
     events be interpreted and applied so as to be consistent with the
     definition of disability provided in Section 22(e)(3) or 422 of the Code
     (or any successor provision).

                                      -1-

<PAGE>   2

          (h)  "Disinterested Person" shall have the meaning set forth in Rule
     16b-3 as promulgated by the Securities and Exchange Commission under the
     Securities Exchange Act of 1934 (the "Exchange Act"), or any successor
     definition adopted by the Commission. To be a "Disinterested Person"
     pursuant to such rule, as of the date hereof, a director may not, during
     the one-year period prior to service or during such service, be granted or
     awarded equity securities of the Company pursuant to the plan or any other
     plan of the Company (subject to certain exceptions).

          (i)  "Early Retirement" means retirement, with the express written
     consent of the Company (or subsidiary, if appropriate) at or before the
     time of such retirement, from active employment with the Company and any
     Subsidiary pursuant to the early retirement provisions of the applicable
     pension plan of such entity.

          (j)  "Fair Market Value" means, as of any given date, unless
     otherwise determined by the Committee in good faith:

               (i) if the Stock is listed on an established stock exchange or
          exchanges, or traded on the NASDAQ National Market System
          ("NASDAQ/NMS") the highest closing price of the Stock as listed
          thereon on the applicable day, or if no sale of Stock has been made
          on any exchange or on NASDAQ/NMS on that date, on the next day on
          which there was sale of Stock;

               (ii) if the Stock is not listed on an established stock exchange
          or NASDAQ/NMS but is instead traded over-the-counter, the mean of the
          "bid" and "ask" prices of the Stock in the over-the-counter market on
          the applicable day, as reported by the National Association of
          Security Dealers, Inc.;

               (iii) if the Stock is not listed on any exchange or traded
          over-the-counter, the value determined in good faith by the Committee
          in a manner designed to comply with Treasury Regulation Section
          1.422A-2(e).

          (k)  "Incentive Stock Option" means any Option intended to be and
     designated as an "Incentive Stock Option" within the meaning of Section
     422 of the Code (or any successor provision).

          (l)  "Non-Qualified Stock Option" means any Stock Option that is not
     an Incentive Stock Option.

          (m)  "Normal Retirement" means retirement from active employment with
     the Company and any Subsidiary or Affiliate on or after age 65.

                                      -2-
<PAGE>   3

          (n)  "Option Agreement" means an agreement between the Company and a
     Participant granting Options to the Participant and containing specific
     terms and procedures related to the rights and obligations of the
     Participants and the Company.

          (o)  "Outstanding Stock" shall include all shares of Common Stock, no
     par value, of the Company as well as the number of shares of Common stock
     into which then outstanding shares of capital stock of the Company, of
     whatever class, are convertible as of the year-end immediately preceding
     the date of calculation thereof (as adjusted by the Committee for certain
     events).

          (p)  "Participant" means an officer, director, employee, advisor or
     other service provider to the Company, its Subsidiaries or Affiliates to
     whom Options are granted hereunder.

          (q)  "Plan" means this Universal Access, Inc. 1998 Employee Stock
     Option Plan, as hereinafter amended from time to time.

          (r)  "Retirement" means Normal or Early Retirement.

          (s)  "Stock" means the Common Stock, no par value per share, of the
     Company.

          (t)  "Stock Option" or "Option" means any option(s) to purchase
     shares of Stock granted pursuant to Section 5 below.

          (u)  "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 100% or more of the total combined voting power of
     all classes of stock in one of the other corporations in the chain.

     In addition, the term "Cause" shall have the meaning set forth in Section
5(i) below.

SECTION 2. ADMINISTRATION.

     The Plan shall be administered by a Committee of not less than two
persons, who need not be Disinterested Persons unless the Company's securities
are registered under the Exchange Act, who shall be members of the Board and
who shall serve at the pleasure of the Board. The functions of the Committee
specified in the Plan may be exercised by the Board, if and to the extent that
no Committee exists which has the authority to so administer the Plan and if a
resolution to such effect is adopted by the Board after due consideration of
the impact of such resolution upon the status of the Plan under Rule 16b-3
promulgated pursuant to the Exchange Act. The Committee as of the date of this
Plan shall be the Board. The Board, by subsequent duly adopted resolution, may
alter to the composition of the Committee as it deems necessary and proper.

                                      -3-

<PAGE>   4
     All decisions made by the Committee pursuant to the provisions of the Plan
shall be made in the Committee's sole discretion and shall be final and binding
on all persons, including the Company and Participants. The Committee shall
have full authority to grant, pursuant to the terms of the Plan, to directors,
officers and other employees eligible under Section 4.

     In particular, the Committee shall have the authority:

               (i)    subject to Section 4 hereof, to select the Participants to
          whom Stock Options may from time to time be granted hereunder.

               (ii)   to determine whether and to what extent Incentive Stock
          Options and/or Non-Qualified Stock Options, or any combination
          thereof, are to be granted hereunder to one or more Participants;

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

               (iv)   to determine the terms and conditions, not inconsistent
          with the terms of the Plan, of any Options granted hereunder
          (including, but not limited to, the share price and any restriction or
          limitation (including vesting requirements, forfeiture provisions and
          non-compete and non-solicitation requirements), or any modification to
          the terms of any previously granted Option (including vesting
          acceleration or waiver of forfeiture restrictions) regarding any Stock
          Option or other award and/or the shares of Stock relating thereto,
          based in each case on such factors as the Committee shall determine,
          its sole discretion);

               (v)    to determine the terms and provisions of each Option
          Agreement;

               (vi)   to determine whether and under what circumstances a Stock
          Option may be settled in cash;

               (vii)  to determine whether, to what extent and under what
          circumstances Option grants and/or other awards under the Plan and/or
          other cash awards made by the Company are to be made, and operate, on
          a tandem basis vis-a-vis other awards under the Plan and/or cash
          awards made outside of the Plan, or on an additive basis;

               (viii) to determine whether, to what extent and under what
          circumstances Stock and other amounts payable with respect to an award
          under this Plan shall be deferred either automatically or at the
          election of the participant (including providing for and determining
          the amount (if any) of any deemed earnings on any deferred amount
          during any deferral period);

                                      -4-

<PAGE>   5
               (ix)  to adopt, alter and repeal such rules, guidelines and
          practices governing the Plan as it shall, from time to time, deem
          advisable, as well as to interpret the terms and provisions of the
          Plan and any award issued under the Plan (and any agreements relating
          thereto); and

               (x)   to otherwise supervise the administration of the Plan.

SECTION 3. STOCK SUBJECT TO PLAN.

     The total number of shares of Stock reserved and available for
distribution under the Plan shall be 13,000,000 shares (the "Option Shares").
Such Option Shares may consist, in whole or in part, of authorized and unissued
shares or treasury shares.

     Subject to Section 6(b)(iv) below, if any Option Shares that have been
optioned hereunder cease to be subject to a Stock Option, or any such award
otherwise terminates without a payment being made to the participant in the
form of Stock, such Options shall again be available for distribution in
connection with future awards under the Plan.

     In the event of any merger, reorganization, consolidation,
recapitalization, stock dividends, stock split or other changes in corporate
structure affecting the Stock, and subject to Sections 5(k) and 5(m), such
substitution or adjustment shall be made in the aggregate number of Option
Shares reserved for issuance under the Plan, in the number and option price of
Option Shares subject to other outstanding awards granted under the Plan as may
be determined to be appropriate by the Committee, in its sole discretion,
provided that the number of Option Shares subject to any award shall always be a
whole number.

SECTION 4. ELIGIBILITY.

     Directors, officers, employees, advisors and other service provides of the
Company or its Subsidiaries and Affiliates who are responsible for, or
contribute to, the management, growth and/or profitability of the business of
the Company and/or its Subsidiaries and Affiliates are eligible to be
Participants and receive Stock Options under the Plan; provided, however,
Options shall not be transferred to any member of the Committee and Incentive
Stock Option shall not be granted to any person who is not an employee of the
Company or its Subsidiaries and Affiliates. In addition, the Committee may
grant awards, other than Incentive Stock Options, to consultants or advisors
who have provided bona fide services to the Company, its Subsidiaries and
Affiliates in connection with matters other than the offer and sale of
securities in a capital-raising transaction.

                                      -5-
<PAGE>   6
SECTION 5. STOCK OPTIONS.

     Stock Options may be granted alone, in addition to or in tandem with other
awards granted under the Plan and/or cash awards made outside of the Plan. Any
Stock Option granted under the Plan shall be in such form as the Committee may
from time to time approve.

     Stock Options granted under the Plan may be of two types: (i) Incentive
Stock Options, and (ii) Non-Qualified Stock Options.

     Subject to the restrictions contained in Section 4 hereof, the Committee
shall have the authority to grant Incentive Stock Options, Non-Qualified Stock
Options or both types of Stock Options to any Participant.

     Options granted under the Plan shall be subject to the following terms and
conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable
to include in the applicable Option Agreement:

          (a)  Exercise Price. The Option exercise price per share of Stock
purchasable under a Stock Option shall be determined by the Committee at the
time of grant but shall be not less than 100% (or, not less than 110% in the
case of a Participant who is an employee and who owns stock possessing more
than 10% of the total combined voting power of all classes of capital stock of
the Company, a Subsidiary or an Affiliate) of the Fair Market Value of the
Stock at grant.

          (b)  Option Term. The term of each Stock Option shall be fixed by the
Committee, but no Stock Option shall be exercised more than ten years (or, more
than five years in the case of a Participant who is an employee and who owns
stock possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company, a Subsidiary or an Affiliate) after the date
the Option is granted.

          (c)  Exercisability. Stock Options shall be exercised at such time or
times to such terms and conditions as shall be determined by the Committee at
or after grant; provided, however, that, except as provided in Section 5(f),
5(g), or 5(k) unless otherwise determined by the Committee in an Option
Agreement or after grant, no Stock Option shall be exercisable prior to the
first anniversary date of the granting of the Option. If the Committee
provides, in its sole discretion, that any Stock Option is exercisable only in
installments, the Committee may waive such installment exercise provisions at
any time at or after grant in whole or in part, based on such factors as the
Committee shall determine, in its sole discretion.

          (d)  Method of Exercise. Subject to whatever installment exercise
provisions apply under Section 5(c) and the terms of the Option Agreement
entered into at the time of the grant, Stock Options may be exercised in whole
or in part at any time during the option period, by

                                      -6-
<PAGE>   7
giving written notice of exercise to the Company specifying the number of
Option Shares to be purchased.

     Such notice shall be accompanied by payment in full of the purchase price,
either by check, note or such other instrument as the Committee may accept. As
determined by the Committee, in its sole discretion, at or after grant, payment
in full or in part may also be made in the form of shares of unrestricted Stock
already owned by the Participant based, in each case, on the Fair Market Value
of the Stock on the date the Option is exercised.

     No shares of Stock shall be issued until full payment therefor has been
made. A Participant shall generally have the rights to dividends or other
rights of a shareholder with respect to shares subject to the Option only when
the Participant has: (i) given written notice of exercise; (ii) has paid in
full for such Option Shares; and (iii) has given any requested representation
and warranties.

     (e)  Non-Transferability of Options. No Stock Option shall be transferable
by the Participant otherwise than by will or by the laws of descent and
distribution or pursuant to a qualified domestic relations order as defined by
the Internal Revenue Code of 1986, as amended 26 U.S.C. Section 1 et. seq. or
Title I of the Employee Retirement Income Security Act, or the rules
thereunder, and all Stock Options shall be exercisable, during the
Participant's lifetime, only by the Participant.

     (f)  Termination by Death. Subject to Section 5(k), if a Participant's
employment by the Company, a Subsidiary or an Affiliate terminates by reason of
death any Stock Option held by such Participant may thereafter be exercised to
the extent such Option was exercisable at the time of death or on such
accelerated basis as the Committee may determine at or after grant (or as may
be determined in accordance with procedures established by the Committee), by
the legal representative of the estate or by the legatee of the Participant
under the will of the Participant, for a period of up to one (1) year (or such
other period as the Committee may specify in the Option Agreement) from the
date of such death or until the expiration of the stated term of such Option,
whichever period is the shorter.

     (g)  Termination by Reason of Disability. Subject to Section 5(k), if a
Participant's employment by the Company, a Subsidiary or an Affiliate
terminates by reason of Disability, any Stock Option held by such Participant
may thereafter be exercised by the Participant, to the extent it was
exercisable at the time of termination or on such accelerated basis as the
Committee may determine at or after grant (or as may be determined in
accordance with procedures established by the Committee), for a period of up to
one (1) year (or such other period as the Committee may specify at grant) from
the date of such termination of employment or until the expiration of the
stated term of such Stock Option, whichever period is the shorter; provided,
however, that if the Participant dies within such one-year period (or such
other period as the Committee shall specify at grant), any unexercised Stock
Option held by such Participant shall thereafter be exercisable pursuant to
Section 5(f). In the event of

                                      -7-
<PAGE>   8
termination of employment by Disability, if a Stock Option heretofore
designated as an Incentive Stock Option is exercised more than one (1) year
after such termination of employment, such Option shall be treated as a
Non-Qualified Stock Option.

     (h)  Termination by Reason of Retirement. Subject to Section 5(k), if an
Participant's employment by the Company and any Subsidiary or Affiliate
terminates by reason of Normal or Early Retirement, any Stock Option held by
such Participant may be exercised by the Participant, to the extent it was
exercisable at the time of such Retirement or on such accelerated basis as the
Committee may determine at or after grant (or as may be determined in
accordance with procedures established by the Committee), for a period of three
years (or such other period as the Committee may specify in the Option
Agreement) from the date of such termination or the expiration of the stated
term of such Stock Option, whichever period is the shorter; provided, however,
that if the Participant dies within such three-year period (or such other
period as the Committee may specify in the Option Agreement), any unexercised
Option held by such Participant shall thereafter be exercisable pursuant to
Section 5(f). In the event of termination of employment by Retirement, if a
Stock Option theretofore designated as an Incentive Stock Option is exercised
more than three (3) months after such termination of employment, such Option
shall be treated as a Non-Qualified Stock Option.

     (i)  Other Termination. Unless otherwise determined by the Committee (or
pursuant to procedures established by the Committee) at or after grant, if a
Participant's employment by or otherwise qualifying relationship with, the
Company and any Subsidiary or Affiliate terminates:

          (i)       due to voluntary resignation of employment by the
     Participant (other than Normal or Early Retirement), all unexercised Stock
     Option shall thereupon terminate;

          (ii)      due to death, Disability, Normal or Early Retirement, then
     the provisions of Sections 5(f), 5(g), 5(h), as appropriate, shall apply;

          (iii)     due to involuntary termination of the Participant's
     employment by the Company, any Subsidiary or Affiliate without Cause,
     unexercised Stock Option shall thereupon terminate, except that the Stock
     Option may be exercised, to the extent otherwise then exercisable, for the
     lesser of three months or the balance of such Option's term;

          (iv)      for any other reason, including termination of the
     Participant's employment for Cause, the Stock Option shall thereupon
     terminate.

     (j)  Buy-Out Provisions. The Committee may at any time offer to purchase
an Option previously granted, based on such terms and conditions as the
Committee shall establish in the Option Agreement or at the time that such
offer is made.

                                      -8-
<PAGE>   9
     (k)  Certain Recapitalizations. In general, if the Company is merged into
or consolidated with another corporation under circumstances in which the
Company is not the surviving corporation, or if the Company is liquidated, or
sells or otherwise disposes of substantially all of its assets to another
corporation (any such merger, consolidation, etc., being hereinafter referred
to as a "Non-Acquiring Transaction") while unexercised Stock Options are
outstanding under the Plan, after the effective date of a Non-Acquiring
Transaction each holder of an outstanding Option shall be entitled, upon
exercise of such Stock Option, to receive such stock or other securities as the
holders of the same class of stock as those shares subject to the Stock Option
shall be entitled to receive in such Non-Acquiring transaction based upon the
agreed upon conversion ratio or per share distribution. However, in the
discretion of the Committee, determined at the time of grant or at any time in
the future, any limitations on exercisability of Stock Options may be waived so
that all Stock Options, from and after a date prior to the effective date of
such Non-Acquiring Transaction shall be exercisable in full. Furthermore, in
the discretion of the Committee, the right to exercise may be given to each
Participant during a 30-day period preceding the effective date of such
Non-Acquiring Transaction. Any outstanding Stock Options not exercised within
such 30-day period may be canceled by the Committee as of the effective date of
any such Non-Acquiring Transaction. To the extent that the foregoing
adjustments relate to stock or securities of the Company, such adjustments
shall be made by the Committee, whose determination in that respect shall be
final, binding and conclusive.

     (l)  Subdivision or Consolidation. Except as set forth in this Plan,
Participants shall have no rights by reason of any subdivision or consolidation
of shares of stock of any class or the payment of any stock divided or any other
increase or decrease in the number of shares of stock of any class or by reason
of any dissolution, liquidation, merger, or consolidation or spinoff of stock of
another corporation, and no issue by the Company of shares of stock of any class
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares subject to the Option. The grant of any Stock Option
pursuant to the Plan shall not affect in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure or to merge or to consolidate or to dissolve,
liquidate or sell, or to transfer all or any part of its business or assets.

     (m)  Reclassification, Recapitalization, etc. If the Company at any time
shall, by subdivision, combination or reclassification of securities,
recapitalization, automatic conversion, or other similar event affecting the
number or character of outstanding shares of Stock, or otherwise (collectively,
the "Event"), change any of the securities as to which purchase rights under
any Stock Option exist into the same or a different number of securities of any
other class or classes, the Stock Options theretofore granted shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change as if the Event had occurred
immediately prior to the issuance of the Stock Options in question.

                                      -9-

<PAGE>   10
          If the Company at any time while this Plan remains outstanding and
     unexpired shall split, subdivide or combine the securities as to which
     purchase rights under Stock Options exist, the purchase price in the Stock
     Options then outstanding shall be proportionately decreased in the case of
     a split or subdivision or proportionately increased in the case of a
     combination.

          (n)  Common Stock Dividends.  If the Company at any time while this
     Plan is outstanding shall pay a dividend with respect to Stock payable in
     shares, then the purchase price in the Stock Options then outstanding
     shall be adjusted, from and after the date of determination of the
     shareholders entitled to receive such dividend or distribution, to that
     price determined by multiplying the exercise price in effect in each Stock
     Option immediately prior to such date of determination by a fraction (i)
     the numerator of which shall be the total number of shares outstanding
     immediately prior to such dividend or distribution, and (ii) the
     denominator of which shall be the total number of shares outstanding
     immediately after such dividend or distribution.

          (o)  Fractional Shares.  If any adjustment referred to herein shall
     result in a fractional share for any Participant under any option
     hereunder, such fraction shall be completely disregarded and the
     Participant shall only be entitled to the whole number of shares resulting
     from such adjustment.

SECTION 6.  AMENDMENTS AND TERMINATION.

     The Board may amend, alter or discontinue the Plan (or any provision
hereof), but, except as otherwise provided herein, no amendment, alteration, or
discontinuation shall be made which would impair the rights of a Participant
under a Stock Option theretofore granted, without the Participant's consent, or
which, without the approval of the Company's stockholders, would:

          (a)  materially increase the benefits accruing to Participants under
     the Plan;

          (b)  materially increase the number of securities which may be issued
     under the Plan; or

          (c)  materially modify the requirements as to eligibility for
     participation in the Plan.

     The Committee may amend the terms of any Option or other award theretofore
granted, prospectively or retroactively, but, subject to Section 3 above, no
such amendment shall impair the rights of any holder without the holder's
consent. The Committee may also substitute new Options for previously granted
Options (on a one for one or other basis), including previously granted Options
having higher option exercise prices.

                                      -10-
<PAGE>   11
     Subject to the above provisions, the Board shall have broad authority to
amend the Plan to take into account changes in applicable securities and tax
laws and accounting rules, as well as other developments.

SECTION 7. UNFUNDED STATUS OF PLAN.

     The Plan is intended to constitute an "unfunded" plan for incentive and
deferred compensation. With respect to any payments not yet made to a
participant or Participant by the Company, nothing contained herein shall give
any such participant or Participant any rights that are greater than those of a
general creditor of the Company. In its sole discretion, the Committee may
authorize the creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver Stock or payments in lieu of or with respect
to awards hereunder; provided, however, that, unless the Committee otherwise
determines with the consent of the affected participant, the existence of such
trusts or other arrangements is consistent with the "unfunded" status of the
Plan.

SECTION 8. GENERAL PROVISIONS.

          (a)  (i)  The Committee may require each person acquiring Option
     Shares pursuant to a Stock Option to represent to and agree with the
     Company in writing that they are acquiring the Option Shares for investment
     and without a view to distribution thereof. The certificates for such
     Option Shares may include any legend which the Committee deems appropriate
     to reflect any restrictions on transfer.

               (ii) All certificates for Option Shares or other securities
     delivered under the Plan shall be subject to such conditions, stop-transfer
     orders and other restrictions as the Committee may deem advisable under the
     rules, regulations, and other requirements of the Securities and Exchange
     Commission, any stock exchange upon which the Stock is then listed, and any
     applicable Federal or state securities law, and the Committee may cause a
     legend or legends to be put on any such certificates to make appropriate
     reference to such restrictions.

          (b)  Nothing contained in this Plan shall prevent the Board from
     adopting other or additional compensation arrangements, subject to
     stockholder approval if such approval is required; and such arrangements
     may be either generally applicable or applicable only in specific cases.

          (c)  The adoption of the Plan shall not confer upon any employee of
     the Company, a Subsidiary or an Affiliate any right to continued employment
     with the Company, a Subsidiary or an Affiliate, as the case may be, nor
     shall it interfere in any way with the right of the Company, a Subsidiary
     or an Affiliate to terminate the employment of any of its employees at any
     time.

          (d)  No later than the date as of which an amount first becomes
includable in the gross income of the participant for Federal income tax
purposes with respect to the exercise

                                      -11-
<PAGE>   12
     of any Option or any award under the Plan, the Participant shall pay to the
     Company, or make arrangements satisfactory to the Committee regarding the
     payment of, any Federal, state, or local taxes of any kind required by law
     to be withheld with respect to such amount. The obligations of the Company
     under the Plan shall be conditional on such payment or arrangements and the
     Company and its Subsidiaries or Affiliates shall, to the extent permitted
     by law, have the right to deduct any such taxes from any payment of any
     kind otherwise due to the participant.

          (e)  The actual or deemed reinvestment of dividends or dividend
     equivalents in additional types of Plan awards at the time of any dividend
     payment shall only be permissible if sufficient shares of Stock are
     available under Section 3 for such reinvestment, taking into account other
     Plan awards then outstanding.

          (f)  The Plan and all awards made and actions taken thereunder shall
     be governed by and construed in accordance with the laws of the State of
     Illinois.

SECTION 9. EFFECTIVE DATE OF PLAN.

     The Plan shall be effective as of July __, 1998, upon the approval of the
Plan by a majority of the votes cast by the holders of the Company's capital
stock entitled to vote hereon.

SECTION 10. TERM OF PLAN.

     No Stock Option shall be granted pursuant to the Plan on or after the
tenth anniversary of the effective date of the Plan, but awards granted prior
to such tenth anniversary may extend beyond that date, subject to the terms of
the Option Agreement entered into at the time of grant.

                                      -12-

<PAGE>   13
                        INCENTIVE STOCK OPTION AGREEMENT

                             UNIVERSAL ACCESS, INC.

     THIS AGREEMENT made as of this 10th day of July, 1998 between UNIVERSAL
ACCESS, INC. an Illinois corporation, having a principal place of business at
1021 West Adams, Suite 101, Chicago, Illinois 60601 (the "Corporation") and
_____________(the "Employee").

                                   RECITALS:

     A.   The Corporation desires to grant to the Employee an incentive stock
option to purchase shares of its common stock (the "Shares") under and for the
purposes of the Corporation's 1998 Employee Stock Option Plan (the "Plan")
which has been approved by its stockholders; and

     B.   The Corporation and the Employee understand and agree that any terms
used herein have the same meanings as in the Plan (the "Employee" being
referred to in the Plan as a "Participant").

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth and for other good and valuable consideration, the parties hereto agree
as follows:

     1.   GRANT OF INCENTIVE OPTION

     The Corporation hereby grants to the Employee the right and option to
purchase all or any part of an aggregate of ________ (_______) Shares on the
terms and conditions and subject to and with the benefit of all the limitations
set forth herein and in the Plan, which is incorporated herein by reference.
The Employee acknowledges receipt of a copy of the Plan. The Incentive Option
granted hereunder is intended to qualify within the meaning of Section 422 of
the Internal Revenue Code as an incentive option.

     2.   PURCHASE PRICE

     The purchase price per share of the Shares shall be $_____.

     3.   EXERCISE OF OPTION

     The Incentive Option granted hereby shall be exercisable as to [insert
exercise provisions]

                                   OPTIONAL:

     [Notwithstanding the above, in the event of the sale of all or
substantially all of the assets or common stock of the Corporation or the
merger or consolidation of the Corporation into or with another entity of which
the beneficial owners of the Company shall own less than 51% of the successor
entity, then any of the Incentive Options shall be exercisable on the date
immediately preceding the consummation of such transaction.]

<PAGE>   14

     4.   TERM OF OPTION

     a.   Termination of Employment. The Incentive Option shall terminate ten
(10) years from the date of this Agreement, but shall be subject to earlier
termination as provided herein or in the Plan. If the Employee ceases to be
providing services for the benefit of the Corporation (other than for
termination by the Corporation of such services other than for "cause," to be
determined in accordance with the agreement entered into or to be entered into
between Employee and the Corporation), then his Incentive Option shall
terminate on the date of termination of his employment, provided that he may
exercise all or a portion of his Option to the extent that such right to
exercise has accrued on the date of his termination during the thirty (30) day
period following his termination. An Employee's employment shall not be deemed
terminated by reason of a transfer to another employer which is an affiliate of
the Corporation.

     b.   Total and Permanent Disability. If Employee ceases to be an employee
of the Corporation by reason of Disability, his Incentive Option shall
terminate on the date of Disability provided that he may exercise all or a
portion of this Incentive Option to the extent that the right to purchase
Shares hereunder has accrued on the date such Employee becomes Disabled as
determined by the Board (or the Committee if applicable) for a period of not
more than six months after the date that he became Disabled as determined by
the Board (or the Committee if applicable) (notwithstanding that Employee might
have been able to exercise the Incentive Option as to some or all of the Shares
on a later date if Employee had not become Disabled) or, if earlier, within the
originally prescribed term of the Incentive Option.

     c.   Death. In the event that Employee ceases to be an employee of the
Corporation by reason of such Employee's death, his Incentive Option shall
terminate on the date of death, provided that all or a portion of this
Incentive Option to the extent that the right is exercisable but not exercised
on the date of death may be exercised by Employee's Survivors. Such Incentive
Option must be exercised by the Survivors, if at all, within six (6) months
after the date of death of Employee or, if earlier, within the originally
prescribed term of the Incentive Option, notwithstanding that the decedent
might have been able to exercise the Incentive Option as to some or all of the
shares on a later date if the Employee were alive and had continued to be an
employee of the Corporation or of an Affiliate.

     Paragraph 4(a) shall control and fix the rights of Employee if Employee
ceases to be an employee of the Corporation for any reason other than death or
Disability and who subsequently becomes Disabled (within the meaning of the
term "Disability" as used in the Plan) or dies. Nothing in Paragraphs 4(b) and
4(c) shall be applicable in any such case except only that, in the event of
such a subsequent death within the period allowed for exercise of the Incentive
Option by Paragraph 4(a) (i.e., within thirty (30) days after the termination
of employment or, if earlier, within the originally prescribed term of the
Incentive Option) Employee's Survivors may exercise the Incentive Option to the
extent permitted by Paragraph 4(a), within six (6) months after the date of
death of such participant but in no event beyond ten (10) years after the date
of the grant of an Incentive Option.

                                      -2-

<PAGE>   15

     5.   EXERCISE OF OPTION AND ISSUE OF STOCK

     The Incentive Option may be exercised in whole or in part (to the extent
that it is exercisable in accordance with its terms) by giving written notice
to the Corporation. Such written notice shall be signed by the person
exercising the Incentive Option, shall state the number of Shares with respect
to which the Incentive Option is being exercised, shall contain the legends, if
any, required by Section 6 of this Agreement and shall specify a date (other
than a Saturday, Sunday or legal holiday) not less than five (5) nor more than
ten (10) days after the date of such written notice, as the date on which the
Shares will be taken up and payment made therefor, at the principal office of
the Corporation during ordinary business hours, or at such other hour and place
agreed upon by the Corporation and the person or persons exercising the
Incentive Option. Such notice shall also otherwise comply with the terms and
conditions of this Agreement and the Plan. (The conditions specified above may
be waived in the sole discretion of the Corporation.) On the date specified in
such written notice (which date may be extended by the Corporation if any law
or regulation requires the Corporation to take any action with respect to the
Incentive Option Shares prior to the issuance thereof, the Corporation shall
accept payment for the Incentive Option Shares and shall deliver an appropriate
certificate or certificates for the Shares as to which the Incentive Option was
exercised to the Employee.

     The Incentive Option price of any shares shall be payable at the time of
exercise either:

          a.   in cash or by certified check or bank check; or

          b.   in whole Shares of the Corporation's common stock owned by the
     person exercising the option for six months or more, with a fair market
     value equal to the option price provided, however, that if such shares were
     acquired pursuant to an incentive stock option plan as defined in Code
     Sections 422 or prior Code Section 422A of the Corporation or Affiliate
     including this Plan or a qualified stock option plan as defined in prior
     Code Section 422 that the applicable holding period requirements of said
     Sections 422 and 422A have been met with respect to such shares; or

          c.   any combination of (a) and (b) above.

     The fair market value of the stock to be applied toward the Incentive
Option price shall be determined as of the date of exercise of the Incentive
Option in a manner consistent with the determination of fair market value with
respect to the grant of an option under the Plan. Any certificate for shares of
outstanding stock of the Corporation used to pay the purchase price shall be
accompanied by a stock power duly endorsed in blank by the registered holder of
the certificate, with signature guaranteed in the event the certificate shall
also be accompanied by instructions from Employee to the Corporation's transfer
agent with respect to disposition of the balance of the shares covered thereby.

                                      -3-
<PAGE>   16
     The Corporation shall pay all original issue taxes with respect to the
issue of Shares pursuant hereto and all other fees and expenses necessarily
incurred by the Corporation in connection therewith. The holder of this
Incentive Option shall have the rights of a shareholder only with respect to
those Shares covered by the Incentive Option which have been registered in the
holder's name in the share register of the Corporation upon the due exercise of
the Incentive Option.

     6.   LEGENDS

     Certificates representing Shares which are purchased pursuant to this
Agreement shall bear the following legends in addition to such other legends as
counsel to the Company may deem appropriate:

          "The shares represented by this certificate are subject to all of the
          terms, conditions, limitations and restrictions set forth in the
          Universal Access, Inc. 1998 Employee Stock Option Plan ("Plan") as
          approved by the Corporation's stockholders, a copy of which is on file
          with the Company and the Incentive Stock Option Agreement under which
          the shares were purchased. All terms, conditions, limitations and
          restrictions of the Plan and the Incentive Stock Option Agreement are
          fully binding upon the holder of the certificate, his or her
          successors, estate, heirs, assigns, personal representative,
          administrator, executor or guardian as the case may be, for all
          purposes until such time that all terms, conditions, limitations and
          restrictions of the Plan are removed, waived, or otherwise vacated in
          the Plan as expressly authorized thereunder;" and

          "These shares have not been registered under the federal or applicable
          state securities laws and instead are being issued pursuant to
          exemption contained in said laws. The shares represented by this
          certificate may not be transferred unless (1) a registration statement
          with respect to such shares shall be effective under the Securities
          Act of 1933, as amended, or (2) the Corporation shall have received an
          opinion of counsel satisfactory to it that no violation of such act or
          similar state acts will be involved in such transfer, or (3) the
          Corporation shall have received a "no action" letter from the
          Securities and Exchange Commission covering such transfer and an
          opinion as referred to above relating to state law."

     7.   NON-ASSIGNABILITY

     Except as provided in Section 4(c), this Incentive Option shall not be
transferable by the Employee and shall be exercisable only by the Employee.

                                      -4-
<PAGE>   17

      8.    NOTICES

      Any notices required or permitted by the terms of this Agreement or the
Plan shall be given by registered or certified mail, return receipt requested,
addressed as follows:

      To the Corporation:                 Universal Access, Inc.
                                          1021 West Adams St., Suite 101
                                          Chicago, Illinois 60601

      With a Copy to:                     Shefsky & Froelich Ltd.
                                          444 North Michigan Avenue
                                          Suite 2400
                                          Chicago, IL 60611
                                          Attention: Mitchell D. Goldsmith

      To the Employee:
                                          -----------------------------------
                                          -----------------------------------
                                          -----------------------------------

or to such other address or addresses of which notice in the same manner has
previously been given. Any such notice shall be deemed to have been given when
mailed in accordance with the foregoing provisions.

      9.    GOVERNING LAW

      This Agreement shall be construed and enforced in accordance with the
laws of the State of Illinois.

      10.   BINDING AGREEMENT

      This Agreement shall be binding upon the heirs, executors,
administrators, successors and assigns of the parties hereto.

                                      -5-
<PAGE>   18

      IN WITNESS WHEREOF, the Corporation has caused these presents to be
executed on its behalf and its corporate seal to be hereto affixed by its duly
authorized representative and the Employee has hereunto set his hand and seal,
all on the day and year first above written.

                                          UNIVERSAL ACCESS, INC.

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

                                          EMPLOYEE

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

                                      -6-<PAGE>   1
                                                                     EXHIBIT 4.2

                             UNIVERSAL ACCESS, INC.

                                 1999 STOCK PLAN

        1. Purposes of the Plan. The purposes of this 1999 Stock Plan are:

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

           o  to provide additional incentive to Employees, Directors and
              Consultants, and

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

           Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant. Stock Purchase Rights may also be granted under the Plan.

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

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

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

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

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

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

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

           (g) "Company" means Universal Access, Inc., a Delaware corporation.

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

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

<PAGE>   2

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

           (k) "Employee" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. A Service
Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.
For purposes of Incentive Stock Options, no such leave may exceed ninety days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by the
Company is not so guaranteed, three (3) months following the day of such leave
any Incentive Stock Option held by the Optionee shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option. Neither service as a Director nor payment of a director's fee by
the Company shall be sufficient to constitute "employment" by the Company.

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

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

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

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

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

           (n) "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

           (o) "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

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

                                      -2-
<PAGE>   3

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

           (r) "Option" means a stock option granted pursuant to the Plan.

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

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

           (u) "Optioned Stock" means the Common Stock subject to an Option or
Stock Purchase Right.

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

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

           (x) "Plan" means this 1999 Stock.

           (y) "Restricted Stock" means shares of Common Stock acquired pursuant
to a grant of Stock Purchase Rights under Section 11 of the Plan.

           (z) "Restricted Stock Purchase Agreement" means a written agreement
between the Company and the Optionee evidencing the terms and restrictions
applying to stock purchased under a Stock Purchase Right. The Restricted Stock
Purchase Agreement is subject to the terms and conditions of the Plan and the
Notice of Grant.

           (aa) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

           (bb) "Section 16(b) " means Section 16(b) of the Exchange Act.

           (cc) "Service Provider" means an Employee, Director or Consultant.

           (dd) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 13 of the Plan.

           (ee) "Stock Purchase Right" means the right to purchase Common Stock
pursuant to Section 11 of the Plan, as evidenced by a Notice of Grant.

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

        3. Stock Subject to the Plan. Subject to the provisions of Section 13 of
the Plan, the maximum aggregate number of Shares that may be optioned and sold
under the Plan is 10,000,000

                                      -3-
<PAGE>   4

Shares, plus an annual increase to be added on the first day of the Company's
fiscal year beginning in fiscal year 2001 equal to the lesser of (i) 10,000,000
Shares, (ii) 5% of the outstanding shares of Common Stock on such date, or (iii)
a lesser amount determined by the Board. The Shares may be authorized, but
unissued, or reacquired Common Stock.

           If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated); provided, however, that Shares that have actually been issued under
the Plan, whether upon exercise of an Option or Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

        4. Administration of the Plan.

           (a) Procedure.

               (i) Multiple Administrative Bodies. Different Committees with
respect to different groups of Service Providers may administer the Plan.

               (ii) Section 162(m). To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

               (iii) Rule 16b-3. To the extent desirable to qualify transactions
hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder
shall be structured to satisfy the requirements for exemption under Rule 16b-3.

               (iv) Other Administration. Other than as provided above, the Plan
shall be administered by (A) the Board or (B) a Committee, which committee shall
be constituted to satisfy Applicable Laws.

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

               (i) to determine the Fair Market Value;

               (ii) to select the Service Providers to whom Options and Stock
Purchase Rights may be granted hereunder;

               (iii) to determine the number of shares of Common Stock to be
covered by each Option and Stock Purchase Right granted hereunder;

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

                                      -4-
<PAGE>   5

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

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

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

               (viii) to modify or amend each Option or Stock Purchase Right
(subject to Section 15(c) of the Plan), including the discretionary authority to
extend the post-termination exercisability period of Options longer than is
otherwise provided for in the Plan;

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

               (x) to authorize any person to execute on behalf of the Company
any instrument required to effect the grant of an Option or Stock Purchase Right
previously granted by the Administrator;

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

           (c) Effect of Administrator's Decision. The Administrator's
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options or Stock Purchase Rights.

        5. Eligibility. Nonstatutory Stock Options and Stock Purchase Rights may
be granted to Service Providers. Incentive Stock Options may be granted only to
Employees.

        6. Limitations.

           (a) Each Option shall be designated in the Option Agreement as either
an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall

                                      -5-
<PAGE>   6

be treated as Nonstatutory Stock Options. For purposes of this Section 6(a),
Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the
time the Option with respect to such Shares is granted.

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

           (c) The following limitations shall apply to grants of Options:

               (i) No Service Provider shall be granted, in any fiscal year of
the Company, Options to purchase more than 3,000,000 Shares.

               (ii) In connection with his or her initial service, a Service
Provider may be granted Options to purchase up to an additional 2,000,000
Shares, which shall not count against the limit set forth in subsection (i)
above.

               (iii) The foregoing limitations shall be adjusted proportionately
in connection with any change in the Company's capitalization as described in
Section 13.

               (iv) If an Option is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 13), the cancelled Option will be counted against the
limits set forth in subsections (i) and (ii) above. For this purpose, if the
exercise price of an Option is reduced, the transaction will be treated as a
cancellation of the Option and the grant of a new Option.

        7. Term of Plan. Subject to Section 19 of the Plan, the Plan shall
become effective upon its adoption by the Board. It shall continue in effect for
a term of ten (10) years unless terminated earlier under Section 15 of the Plan.

        8. Term of Option. The term of each Option shall be stated in the Option
Agreement. In the case of an Incentive Stock Option, the term shall be ten (10)
years from the date of grant or such shorter term as may be provided in the
Option Agreement. Moreover, in the case of an Incentive Stock Option granted to
an Optionee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Parent or Subsidiary, the term of the
Incentive Stock Option shall be five (5) years from the date of grant or such
shorter term as may be provided in the Option Agreement.

        9. Option Exercise Price and Consideration.

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

               (i) In the case of an Incentive Stock Option

                                      -6-
<PAGE>   7

                   (A) granted to an Employee who, at the time the Incentive
Stock Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                   (B) granted to any Employee other than an Employee described
in paragraph (A) immediately above, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

               (ii) In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator. In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

               (iii) Notwithstanding the foregoing, Options may be granted with
a per Share exercise price of less than 100% of the Fair Market Value per Share
on the date of grant pursuant to a merger or other corporate transaction.

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

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

               (i) cash;

               (ii) check;

               (iii) promissory note;

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

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

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

               (vii) any combination of the foregoing methods of payment; or

                                      -7-
<PAGE>   8

               (viii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws.

        10. Exercise of Option.

            (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. Unless the Administrator provides in writing
otherwise, vesting of Options granted hereunder shall be tolled during any
unpaid leave of absence. An Option may not be exercised for a fraction of a
Share.

            An Option shall be deemed exercised when the Company receives: (i)
written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 13 of the Plan.

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

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

               (c) Disability of Optionee. If an Optionee ceases to be a Service
Provider as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement
to the extent the Option is vested on the date of termination (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement). In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, on the date of

                                      -8-
<PAGE>   9

termination, the Optionee is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall revert to the Plan.
If, after termination, the Optionee does not exercise his or her Option within
the time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

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

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

        11. Stock Purchase Rights.

            (a) Rights to Purchase. Stock Purchase Rights may be issued either
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing or electronically, by means of a Notice of Grant, of the
terms, conditions and restrictions related to the offer, including the number of
Shares that the offeree shall be entitled to purchase, the price to be paid, and
the time within which the offeree must accept such offer. The offer shall be
accepted by execution of a Restricted Stock Purchase Agreement in the form
determined by the Administrator.

            (b) Repurchase Option. Unless the Administrator determines
otherwise, the Restricted Stock Purchase Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's service with the Company for any reason (including death or
Disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at a rate determined by the
Administrator.

            (c) Other Provisions. The Restricted Stock Purchase Agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

            (d) Rights as a Shareholder. Once the Stock Purchase Right is
exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when

                                      -9-
<PAGE>   10

his or her purchase is entered upon the records of the duly authorized transfer
agent of the Company. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Stock Purchase Right is
exercised, except as provided in Section 13 of the Plan.

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

        13. Adjustments Upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

            (a) Changes in Capitalization. Subject to any required action by the
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and Stock Purchase Right, the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, the number of Shares that may be added annually to the Shares
reserved under the Plan pursuant to Section 3(i), as well as the price per share
of Common Stock covered by each such outstanding Option or Stock Purchase Right,
shall be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Common Stock, or any
other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company; provided, however,
that conversion of any convertible securities of the Company shall not be deemed
to have been "effected without receipt of consideration." Such adjustment shall
be made by the Board, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common Stock subject
to an Option or Stock Purchase Right.

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

            (c) Merger or Asset Sale. In the event of a merger of the Company
with or into another corporation, or the sale of substantially all of the assets
of the Company, each outstanding

                                      -10-
<PAGE>   11

Option and Stock Purchase Right shall be assumed or an equivalent option or
right substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to
assume or substitute for the Option or Stock Purchase Right, the Optionee shall
fully vest in and have the right to exercise the Option or Stock Purchase Right
as to all of the Optioned Stock, including Shares as to which it would not
otherwise be vested or exercisable. If an Option or Stock Purchase Right becomes
fully vested and exercisable in lieu of assumption or substitution in the event
of a merger or sale of assets, the Administrator shall notify the Optionee in
writing or electronically that the Option or Stock Purchase Right shall be fully
vested and exercisable for a period of fifteen (15) days from the date of such
notice, and the Option or Stock Purchase Right shall terminate upon the
expiration of such period. For the purposes of this paragraph, the Option or
Stock Purchase Right shall be considered assumed if, following the merger or
sale of assets, the option or right confers the right to purchase or receive,
for each Share of Optioned Stock subject to the Option or Stock Purchase Right
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the merger or sale of
assets is not solely common stock of the successor corporation or its Parent,
the Administrator may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of the Option or Stock
Purchase Right, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right, to be solely common stock of the successor corporation or its
Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger or sale of assets.

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

        15. Amendment and Termination of the Plan.

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

            (b) Shareholder Approval. The Company shall obtain shareholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

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

                                      -11-
<PAGE>   12

        16. Conditions Upon Issuance of Shares.

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

            (b) Investment Representations. As a condition to the exercise of an
Option or Stock Purchase Right, the Company may require the person exercising
such Option or Stock Purchase Right 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.

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

        18. 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.

        19. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the manner and to the
degree required under Applicable Laws.

                                      -12-

<PAGE>   13

                             UNIVERSAL ACCESS, INC.

                                 1999 STOCK PLAN

                             STOCK OPTION AGREEMENT

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

I.      NOTICE OF STOCK OPTION GRANT

        [Optionee's Name and Address]

        You have been granted an option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Option Agreement, as
follows:

        Grant Number                        ____________________________________

        Date of Grant                       ____________________________________

        Vesting Commencement Date           ____________________________________

        Exercise Price per Share            $___________________________________

        Total Number of Shares Granted      ____________________________________

        Total Exercise Price                $___________________________________

        Type of Option:                     ___ Incentive Stock Option

                                            ___ Nonstatutory Stock Option

        Term/Expiration Date:               ____________________________________

        Vesting Schedule:

        Subject to accelerated vesting as set forth below, this Option may be
exercised, in whole or in part, in accordance with the following schedule:

        25% of the Shares subject to the Option shall vest twelve months after
the Vesting Commencement Date, and 1/48 of the Shares subject to the Option
shall vest each month thereafter, subject to the Optionee continuing to be a
Service Provider on such dates.

<PAGE>   14

        Termination Period:

        This Option may be exercised for three (3) months after Optionee ceases
to be a Service Provider. Upon the death or Disability of the Optionee, this
Option may be exercised for twelve (12) months after Optionee ceases to be a
Service Provider. In no event shall this Option be exercised later than the
Term/Expiration Date as provided above.

II.     AGREEMENT

        A. Grant of Option.

            The Plan Administrator of the Company hereby grants to the Optionee
named in the Notice of Grant attached as Part I of this Agreement (the
"Optionee") an option (the "Option") to purchase the number of Shares, as set
forth in the Notice of Grant, at the exercise price per share set forth in the
Notice of Grant (the "Exercise Price"), subject to the terms and conditions of
the Plan, which is incorporated herein by reference. Subject to Section 15(c) of
the Plan, in the event of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail.

            If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an Incentive Stock Option under
Section 422 of the Code. However, if this Option is intended to be an Incentive
Stock Option, to the extent that it exceeds the $100,000 rule of Code Section
422(d) it shall be treated as a Nonstatutory Stock Option ("NSO").

        B. Exercise of Option.

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

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

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

                                      -2-
<PAGE>   15

        C. Method of Payment.

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

           1. cash; or

           2. check; or

           3. consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan; or

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

        D. Non-Transferability of Option.

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

        E. Term of Option.

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

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

        G. Exercising the Option.

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

                                      -3-
<PAGE>   16

        2. Incentive Stock Option. If this Option qualifies as an ISO, the
Optionee will have no regular federal income tax liability upon its exercise,
although the excess, if any, of the Fair Market Value of the Exercised Shares on
the date of exercise over their aggregate Exercise Price will be treated as an
adjustment to alternative minimum taxable income for federal tax purposes and
may subject the Optionee to alternative minimum tax in the year of exercise. In
the event that the Optionee ceases to be an Employee but remains a Service
Provider, any Incentive Stock Option of the Optionee that remains unexercised
shall cease to qualify as an Incentive Stock Option and will be treated for tax
purposes as a Nonstatutory Stock Option on the date three (3) months and one (1)
day following such change of status.

        3. Disposition of Shares.

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

           (b) ISO. If the Optionee holds ISO Shares for at least one year after
exercise and two years after the grant date, any gain realized on disposition of
the Shares will be treated as long-term capital gain for federal income tax
purposes. If the Optionee disposes of ISO Shares within one year after exercise
or two years after the grant date, any gain realized on such disposition will be
treated as compensation income (taxable at ordinary income rates) to the extent
of the excess, if any, of the lesser of (A) the difference between the Fair
Market Value of the Shares acquired on the date of exercise and the aggregate
Exercise Price, or (B) the difference between the sale price of such Shares and
the aggregate Exercise Price. Any additional gain will be taxed as capital gain,
short-term or long-term depending on the period that the ISO Shares were held.

           (c) Notice of Disqualifying Disposition of ISO Shares. If the
Optionee sells or otherwise disposes of any of the Shares acquired pursuant to
an ISO on or before the later of (i) two years after the grant date, or (ii) one
year after the exercise date, the Optionee shall immediately notify the Company
in writing of such disposition. The Optionee agrees that he or she may be
subject to income tax withholding by the Company on the compensation income
recognized from such early disposition of ISO Shares by payment in cash or out
of the current earnings paid to the Optionee.

        H. Entire Agreement; Governing Law.

           The Plan is incorporated herein by reference. The Plan and this
Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee's interest except by
means of a writing signed by the Company and Optionee. This agreement is
governed by the internal substantive laws, but not the choice of law rules, of
Illinois.

        I. NO GUARANTEE OF CONTINUED SERVICE.

           OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT
TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE
PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED,
BEING GRANTED AN OPTION OR PURCHASING

                                      -4-
<PAGE>   17

SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT,
THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH
HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT
AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND
SHALL NOT INTERFERE WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE
OPTIONEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT
CAUSE.

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

OPTIONEE:                                    UNIVERSAL ACCESS, INC.

__________________________________           __________________________________
Signature                                    By

__________________________________           __________________________________
Print Name                                   Title

__________________________________
Residence Address

__________________________________

                                      -5-

<PAGE>   18

                                    EXHIBIT A

                             UNIVERSAL ACCESS, INC.

                                 1999 STOCK PLAN

                                 EXERCISE NOTICE

Universal Access, Inc.
100 North Riverside Plaza, Suite 2200
Chicago, IL 60606

Attention:  [Title]

        1. Exercise of Option. Effective as of today, ________________, _____,
the undersigned ("Purchaser") hereby elects to purchase ______________ shares
(the "Shares") of the Common Stock of Universal Access, Inc. (the "Company")
under and pursuant to the 1999 Stock Plan (the "Plan") and the Stock Option
Agreement dated, _____ (the "Option Agreement"). The purchase price for the
Shares shall be $_____, as required by the Option Agreement.

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

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

        4. Rights as Shareholder. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the Shares, no right to vote or receive dividends or
any other rights as a shareholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Shares so acquired shall
be issued to the Optionee as soon as practicable after exercise of the Option.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date of issuance, except as provided in Section 13 of the
Plan.

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

<PAGE>   19

        6. Entire Agreement; Governing Law. The Plan and Option Agreement are
incorporated herein by reference. This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's interest except by
means of a writing signed by the Company and Purchaser. This agreement is
governed by the internal substantive laws, but not the choice of law rules, of
Illinois.

Submitted by:                            Accepted by:

PURCHASER:                               UNIVERSAL ACCESS, INC.

_________________________________        _________________________________
Signature                                By

_________________________________        _________________________________
Print Name                               Its

Address:                                 Address:

_________________________________        Universal Access, Inc.
                                         100 North Riverside Plaza, Suite 2200
                                         Chicago, IL 60606
_________________________________

                                         _________________________________
                                         Date Received

                                      -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]