Document:

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                                                                     Exhibit 4.1

                         MEDICAL ADVISORY SYSTEMS, INC.
                              AMENDED AND RESTATED
                              EMPLOYEE AND DIRECTOR
                                STOCK OPTION PLAN

I.       PURPOSE AND SCOPE

The purposes of this Medical Advisory Systems, Inc. Amended and Restated
Employee and Director Stock Option Plan (the "Plan") are to encourage stock
ownership by Employees of Medical Advisory Systems, Inc. a Delaware corporation,
or any of its Subsidiaries (collectively the "Company") and to assist the
Company in attracting and retaining key personnel through the grant of options
to purchase shares of the Company's common stock.

II.      DEFINITIONS

Unless otherwise required by the context and in addition to the terms defined
elsewhere herein:

"BOARD" shall mean the Board of Directors of Medical Advisory Systems, Inc.

"COMMITTEE" shall mean the Compensation Committee, which is appointed by the
Board, and which shall be composed of three members of the Board.

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

"EMPLOYEE" shall mean officers, directors, employees, advisors and consultants
who render services to the Company.

"OPTION" shall mean a right to purchase Stock, granted pursuant to the Plan.

"OPTION PRICE" shall mean the purchase price for a share of Stock under an
Option, as determined in Section V below.

"PARTICIPANT" shall mean an Employee to whom an Option is granted under this
Plan.

"STOCK" shall mean the common stock of Medical Advisory Systems, Inc., par value
$.005.

"SUBSIDIARY" shall mean a subsidiary corporation of Medical Advisory Systems,
Inc., as defined in Code Sections 424(f) or 424(g).
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III.     STOCK TO BE OPTIONED

Subject to the provisions of Section XVII herein, the maximum number of shares
of Stock that may be optioned or sold under the Plan is 650,000 shares. Such
shares may be authorized but unissued shares of the stock of the Company.

IV.      ADMINISTRATION

The Committee shall administer the Plan. Two members of the Committee shall
constitute a quorum for the transaction of business. The Committee shall be
responsible to the Board for the operation of the Plan, and shall make
recommendations to the Board with respect to participation in the Plan by
Employees and with respect to the extent of that participation. The
interpretation and construction of any provision of the Plan by the Committee
shall be final, unless otherwise determined by the Board. No member of the Board
or the Committee shall be liable for any action or determination made by him in
good faith.

The Board, upon recommendation of the Committee, may grant Options to any
Employee upon such terms and conditions as it determines appropriate, including
but not limited to provisions regarding vesting of Options granted, and
covenants not to compete and confidentiality requirements. Options may be
awarded by the Board at any time and from time to time to new Participants, or
to a greater or lesser number of Participants, and may include or exclude
previous Participants, as the Board, upon recommendation by the Committee, shall
determine. Options granted at different times need not contain similar
provisions and no grant of Options shall be effective until such time as the
Employee enters into the Option Agreement presented by the Board in conjunction
with such grant of Options, by executing and returning such agreement to the
Board.

V.       OPTION PRICE

The purchase price for Stock under each Option shall not be less than the fair
market value of the Stock at the close of business on the date the Option is
granted, but in no event less than the par value of the Stock. For purposes of
this Section, "fair market value" shall be the average of the highest and lowest
price for a share of Stock, as quoted on the American Stock Exchange (or if the
Stock is not then traded on such Exchange, on any other exchange or market
through which the Stock is traded) on the last trading date immediately
preceding the date of the grant.

VI.      EXERCISE OF STOCK OPTIONS

A Stock Option shall be exercised by a Participant or other person authorized
under this Plan to exercise such Option by the provision of written notice, on a
form approved by the Committee, indicating the person's intention to exercise
same, accompanied by full payment of the purchase price. Said purchase price
shall be paid with cash or certified check, or with a surrender of Stock having
a fair market value on the date of exercise equal to that portion of the
purchase price for which payment in cash or by certified check is not made. In
the event that Stock is surrendered upon exercise of an Option, certificates
evidencing the shares to be so used shall be delivered to the Company and shall
be duly endorsed or accompanied by duly executed stock powers to transfer the
same to the Company; provided, however, that such payment in Stock instead of
cash or cashier's check shall not be effective and shall be rejected by the
Company if (a) the

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Company is then prohibited from purchasing shares of the class of the stock thus
tendered to it, or (b) the right or power of the person exercising the Option to
deliver such shares in payment of the purchase price is subject to restrictions
(determined as of the date such Stock is tendered), including but not limited to
the prior interest of any other person as indicated by legends upon the
certificate(s) or known to the Company. If the Company rejects the payment in
stock, the tendered notice of exercise shall not be effective hereunder unless,
after being notified of such rejection, the person exercising the Option pays
the purchase price in an acceptable form. The Company shall be entitled, at its
option, to return those shares of Stock as part of the shares for which the
Option was exercised rather than re-issuing new shares.

The Company shall have the right to require a Participant, or any other person
authorized to exercise Options under this Plan, to pay to the Company the amount
of any taxes which the Company is required to withhold as a result of the
exercise of said Option.

VII.     TERMS AND CONDITIONS OF OPTIONS

Options granted pursuant to the Plan shall be authorized by the Board and shall
be evidenced by agreements in such form as the Board, upon recommendation of the
Committee, shall from time to time approve. Such Agreements shall include a
provision that during the period in which a Participant is employed by the
Company, Participant shall be limited in trading shares of the Company acquired
through exercise of any Option in accordance with the Company's then current
policy governing trading in the shares of the Company by Officers and Directors.

VIII.    EMPLOYMENT AGREEMENT

The Board may, in its discretion, include in any Option granted under the Plan a
condition that the Participant shall agree to remain in the employ of, and to
render services to, the Company or any of its Subsidiaries for a period of time
(specified in the agreement) following the date the Option is granted. However,
no such agreement shall impose any obligation upon the Company to employ the
Participant for any period of time.

IX.      TIME AND METHOD OF PAYMENT

The Option Price shall be paid in full either in cash or under a cash-less
option provision (depending on the form of Option Agreement granted to the
Participant) at the time an Option is exercised under the Plan. Otherwise, an
exercise of any Option granted under the Plan shall be invalid and of no effect.
Promptly after the exercise of an Option and the payment of the full Option
Price, the Participant shall be entitled to the issuance of a stock certificate
evidencing his ownership of such Stock. Participant shall have none of the
rights of a shareholder until shares are issued to him, and no adjustment will
be made for dividends or other rights for which the record date is prior to the
date such stock certificate is issued.

X.       NUMBER OF SHARES

Each Option shall state the total number of shares of Stock to which it pertains
and the number of Shares to which a participant is entitled under an Option
agreement.

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XI.      OPTION PERIOD, AND LIMITATIONS ON EXERCISE OF OPTIONS

The Board may, in its discretion, provide that an Option may not be exercised in
whole or in part for any period or periods of time specified in the Option
agreement. Except as provided in the Option agreement or otherwise herein, an
Option maybe exercised in whole or in part at any time during its term. No
Option may be exercised after the expiration of ten (10) years from the date it
is granted. No Option may be exercised for a fractional share of Stock.

XII.     TERMINATION OF EMPLOYMENT

Except as provided in Section XIII below, if a Participant ceases to be employed
by the Company, his Options shall terminate immediately; provided, however, that
the Participant may, at any time within three months after such cessation of
employment, exercise his Options to the extent that he was entitled to exercise
them on the date of cessation of employment, but in no event shall any option be
exercisable more than ten (10) years from the date it was granted.

XIII.    RIGHTS IN THE EVENT OF DEATH

If a Participant dies while employed by the Company, or within three months
after having retired with the consent of the Company, and without having fully
exercised his options, the executors or administrators, or legatees or heirs, of
his estate shall have the right to exercise such Options and to the extent that
such deceased Participant was entitled to exercise said Options on the date of
his death; provided, however, that in no event shall the Options be exercisable
more than ten (10) years from the date they were granted.

XIV.     NO OBLIGATIONS TO EXERCISE OPTION

The granting of an Option shall impose no obligation upon the Participant to
exercise such Option.

XV.      NONASSIGNABILITY

Options shall not be transferable other than by will or by the law of descent
and distribution, and during a Participant's lifetime shall be exercisable only
by such Participant.

XVI.     LOSS OF RIGHT TO EXERCISE OPTIONS

A Participant or other person entitled to exercise Options under this Plan shall
forfeit such rights if the Participant violates a confidentiality agreement or
covenant not to compete with the Company whether contained within individual
Stock Option Agreements entered into between the Participant and the Company by
separate instrument.

XVII.    EFFECT OF CHANGE IN STOCK SUBJECT TO THE PLAN

The aggregate number of shares of Stock available for Options under the Plan,
the shares subject

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to any Option, the price per share, shall all be proportionately adjusted for
any increase or decrease in the number of issued shares of Stock subsequent to
the effective date of the Plan resulting from (1) a subdivision or consolidation
of shares or any other capital adjustment, (2) the payment of a stock dividend,
or (3) other increase or decrease in such shares effected without receipt of
consideration by the Company, if the Company shall be the surviving corporation
in any merger or consolidation, any Option shall pertain, apply and relate to
the securities to which a holder of the number of shares of Stock subject to the
Option would have been entitled after the merger or consolidation.

Upon dissolution or liquidation of the Company, or upon a merger or
consolidation in which the Company is not the surviving corporation, all Options
outstanding under the Plan shall terminate; provided, however, that each
Participant (and each other person entitled under this Plan to exercise an
Option) shall have the right, immediately prior to such dissolution or
liquidation, or such merger or consolidation, to exercise such Participant's
Options in whole or in part, but only to the extent that such Options are
otherwise exercisable under the terms of this Plan.

XVIII.   AMENDMENT AND TERMINATION

The Board, by resolution, may terminate, amend, or revise the Plan with respect
to any shares as to which Options have not been granted. Neither the Board nor
the Committee may, without the consent of the holder of an Option, alter or
impair any Option previously granted under the Plan, except as authorized
herein. Unless sooner terminated, the Plan shall remain in effect for a period
of 10 years from the date of this amended and restated Plan's adoption by the
Board. Termination of the Plan shall not affect any Option previously granted.

XIX.     COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODY

No Option shall be exercisable and no Stock will be delivered under this Plan
except in compliance with all applicable federal and state laws and regulations,
including, without limitation, compliance with all applicable withholding tax
requirements, if any, and with the rules of all domestic stock exchanges on
which the Stock may be listed. Any stock certificates issued to evidence the
Stock as to which an Option is exercised may bear such legends and statements as
the Company shall deem advisable to assure compliance with federal and state
laws and regulations; the Company may, if it deems appropriate, condition its
grant of any Options hereunder upon receipt of the following investment
representation from the Participant or other person authorized to exercise such
Options under this Plan:

         "I agree that any Stock of Medical Advisory Systems, Inc. which I may
         acquire by virtue of this Stock Option shall be acquired for investment
         purposes only and not with a view to distribution or resale, and may
         not be transferred, sold, assigned, pledged, hypothecated or otherwise
         disposed of by me unless (i) a registration statement or post-effective
         amendment to a registration statement under the Securities Act of 1933,
         as amended, with respect to said Stock has become effective so as to
         permit the sale or other disposition of said shares by me; or (ii)
         there is presented to Medical Advisory Systems, Inc. an opinion of
         counsel satisfactory to Medical Advisory Systems, Inc. to the effect
         that the sale or other proposed disposition of said Stock by me may
         lawfully be made otherwise than pursuant to an effective registration
         statement or post-effective

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         amendment to a registration statement relating to the said Stock under
         the Securities Act of 1933, as amended."

No Option shall be exercisable, and no stock will be delivered under this Plan,
until the Company has obtained such consent or approval from the regulatory
body, federal or state, having jurisdiction over such matters as the Company may
deem advisable. In the case of the exercise of an Option by someone other than
the Participant as permitted herein, the Company may require reasonable evidence
as to the ownership of such Option and may require such consents and releases of
taxing authorities as the Committee may deem advisable.

XX.      PRESERVATION OF SHARES OF STOCK

The Company during the term of this Plan, will at all times reserve and keep
available, and will seek or obtain from any regulatory body having jurisdiction
any requisite authority necessary to issue and to sell, the number of Shares of
Stock that shall be sufficient to satisfy the requirements of this Plan. The
inability of the Company to obtain from any regulatory body having jurisdiction
the authority deemed necessary by counsel for the Company for the lawful
issuance and sale of its stock hereunder shall relieve the Company of any
liability in respect of the failure to issue or sell Stock as to which the
requisite authority has not been obtained.

XXI.     EFFECTIVE DATE OF PLAN

The Plan was originally effective as of June 21, 1993; the date the Plan was
approved by the Board of Directors. The terms of this amended and restated Plan
shall be effective March 1, 1998.

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                                                                  Exhibit 4(xii)

              WAIVER AND TENTH MODIFICATION OF AMENDED AND RESTATED
                            SECURED CREDIT AGREEMENT
                           AND OTHER RELATED DOCUMENTS

         THIS WAIVER AND TENTH MODIFICATION OF AMENDED AND RESTATED SECURED
CREDIT AGREEMENT AND OTHER RELATED DOCUMENTS (this "Amendment") is made as of
December 31, 1999, by and among PAUL HARRIS STORES, INC., an Indiana corporation
("PH Stores"), PAUL HARRIS MERCHANDISING, INC., an Indiana corporation ("PH
Merchandising"), PAUL HARRIS RETAILING, INC., an Indiana corporation ("PH
Retailing"), and THE J. PETERMAN COMPANY, an Indiana corporation ("Peterman"),
and LASALLE BANK NATIONAL ASSOCIATION, a national banking association (herein,
together with its successors and assigns, called the "Bank").

         All capitalized terms and phrases, unless defined herein, shall have
the specific meanings ascribed to such terms in that certain Secured Credit
Agreement originally dated as of October 28, 1993, by and between PH Stores and
Bank, as amended and restated by that certain Amended and Restated Secured
Credit Agreement dated as of January 20, 1994, as modified and amended by those
certain First through Ninth Modifications of the Amended and Restated Secured
Credit Agreement, and Related Documents dated as of October 31, 1994, January
31, 1995, September 28, 1995, May 8, 1996, April 9, 1997, November 19, 1998,
February 1, 1999, April 19, 1999, and October 21, 1999 (as so amended, the
"Credit Agreement").

         WHEREAS, Borrower (as that term is defined in the Credit Agreement) has
requested that Bank grant certain waivers and make various modifications to the
Credit Agreement and certain of the Related Documents, and Bank has so agreed,
on the terms and conditions more specifically set forth herein.

         NOW, THEREFORE, for and in consideration of the foregoing premises and
for other good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, Borrower and Bank do hereby agree as follows:

         1.  The preambles to this Amendment are fully incorporated herein by
this reference thereto with the same force and effect as though restated herein.

         2.  Each definition, numbered section and provision of the Credit
Agreement set forth below in this paragraph 2 supersedes and replaces the
corresponding definition, numbered section and provision of the Credit
Agreement. To the extent that any of the definitions, numbered sections and
provisions of the Credit Agreement set forth below in this paragraph 2 do not
correspond to any definition, numbered section or provision of the Credit
Agreement, such definition, numbered section or provision shall be deemed to
have been added to the Credit Agreement as set forth below and in the
appropriate order. The Table of Contents to the Credit Agreement shall be
understood to have been modified to reflect these changes and incorporated
provisions. Accordingly, effective as of December 31, 1999 (the "Modification
Date"), the Credit Agreement is modified as set forth below in this Section
6.2.2:
<PAGE>   2
         3.  "6.2.2 ANNUAL REDUCTION OF REVOLVING CREDIT COMMITMENT AND TERM B
LOAN COMMITMENT. Except as set forth in the following sentence, all amounts
outstanding pursuant to the Revolving Loans provisions of the Revolving Credit
Commitment and the Term B Loans provisions of the Term B Loan Commitment must
simultaneously be reduced by the Borrower to zero ($0.00) for a period of ninety
(90) consecutive days during each fiscal year of the Borrower. Notwithstanding
anything expressed or implied to the contrary in the preceding sentence, the
aggregate amounts outstanding pursuant to the Revolving Loans provisions of the
Revolving Credit Commitment and the Term B Loans provisions of the Term B Loan
Commitment must be $8,000,000 or less on each day for a period of thirty (30)
consecutive days during the fiscal year of the Borrower ending January 31, 2000.
For purposes of this section, amounts outstanding with respect to Revolving
Loans and Term B Loans shall not be construed to include the face amount of
undrawn Letters of Credit issued at the request of Borrower pursuant to the
provisions of Section 2.3."

         4.  WAIVER. Borrower requests that the Bank waive compliance with the
provisions of Section 6.2.2 of the Credit Agreement effective as of December 31,
1999, subject to the other provisions of this Amendment. Bank consents to
Borrower's non-compliance as of December 31, 1999 with the provisions of Section
6.2.2 of the Credit Agreement and waives the effects and consequences of such
non-compliance, provided that the Borrower shall have complied with the
provisions of Section 6.2.2 of the Credit Agreement as amended hereby from and
after December 31, 1999. The foregoing waiver (the "Waiver") is specifically
limited in time and scope to the individual occurrence described above and shall
not be deemed to extend or apply to any other event or occurrence in existence
as of the date hereof or arising hereafter. In addition, the Waiver shall not be
deemed to constitute a custom or a practice on the part of the Bank.

         5.  REFERENCES. All references in the Loan Documents to the Credit
Agreement hereby are understood to be to the Credit Agreement as modified
hereby.

         6.  CONDITIONS TO EFFECTIVENESS. Provided that no unwaived Default or
Event of Default shall then exist other than those that would exist but for the
execution of this Amendment, this Amendment shall be deemed to be effective as
of December 31, 1999 (the "Effective Date"), provided all of the following
conditions are satisfied in a manner, form and substance acceptable to Bank:

             (a) EXECUTION OF AMENDMENT. This Amendment duly authorized and
         fully executed, and in form and substance satisfactory to Bank shall
         have been delivered to Bank.

             (b) DELIVERY OF OTHER DOCUMENTS.

                 (i) True, complete and accurate copies, duly certified by an
             officer of each entity comprising Borrower, of all documents
             evidencing any necessary corporate action, resolutions, consents
             and governmental approvals, if any, required for the execution,
             delivery and performance of this Amendment, and the

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             Joinder and any other document, instrument or agreement executed or
             delivered in connection therewith by the Borrower shall have been
             delivered to Bank; and

                 (ii) Such other documents, instruments or agreements as the
             Bank may reasonably request shall have been delivered to Bank.

         7.  In the event of any conflict among the terms of the Credit
Agreement and the Related Documents as modified by this Amendment, the terms of
the Credit Agreement as modified by this Amendment shall control. All terms and
provisions of the Related Documents corresponding to terms and provisions of the
Credit Agreement prior to the date of this Amendment shall be deemed modified in
accordance with the terms of this Amendment.

         8.  Borrower hereby warrants and represents that (i) Borrower has no
defense, offset or counterclaim with respect to the payment of any sum owed to
Bank, or with respect to any covenant in the Loan Documents; (ii) Bank, on and
as of the date hereof, has fully performed all obligations to Borrower which it
may have had or has on and as of the date hereof; and (iii) other than as
expressly set forth herein, by entering into this Amendment, Bank does not waive
any condition or obligation in the Credit Agreement and the Related Documents.

         9.  Borrower hereby agrees to execute and deliver promptly to Bank, at
Bank's request, such other documents as Bank, in its reasonable discretion,
shall deem necessary or appropriate to evidence the transaction contemplated
herein.

         10. Borrower agrees to pay all fees and expenses associated with the
consummation of the transactions contemplated in this Amendment, including,
without limitation, reasonable fees and expenses of Bank's counsel and related
expenses.

         11. Time is of the essence of this Amendment.

         12. This Amendment may be executed in any number of counterparts, each
of which shall constitute an original, but all of which, taken together, shall
constitute one and the same Amendment.

         13. Except as otherwise set forth herein to the contrary, the Loan
Documents remain unmodified and continue in full force and effect. Borrower
hereby reaffirms, confirms and ratifies each and every covenant, condition,
obligation and provision set forth in the Credit Agreement and the Related
Documents, each as modified hereby.

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         IN WITNESS WHEREOF, the undersigned, intending to be legally bound
hereby, have executed and delivered this Amendment as of the day and year first
above written.

BORROWER:                      PAUL HARRIS STORES, INC.,
                               an Indiana corporation

                               By: /s/ KEITH L. HIMMEL, JR.
                                  -------------------------
                               Name: Keith L. Himmel, Jr.
                               Title:  Vice President of Finance,
                               Controller and Corporate Secretary

                               PAUL HARRIS MERCHANDISING, INC.,
                               an Indiana corporation

                               By: /s/ KEITH L. HIMMEL, JR.
                                  -------------------------
                               Name: Keith L. Himmel, Jr.
                               Title: Vice President of Finance,
                               Controller and Corporate Secretary

                               PAUL HARRIS RETAILING INC.,
                               an Indiana corporation

                               By: /s/ KEITH L. HIMMEL, JR.
                                  -------------------------
                               Name: Keith L. Himmel, Jr.
                               Title: Vice President of Finance,
                               Controller and Corporate Secretary

                               THE J. PETERMAN COMPANY,
                               an Indiana corporation

                               By: /s/ KEITH L. HIMMEL, JR.
                                  -------------------------
                               Name: Keith L. Himmel, Jr.
                               Title: Vice President of Finance,
                               Controller and Corporate Secretary

BANK:                          LASALLE BANK NATIONAL ASSOCIATION,
                               a national banking association

                               By: /s/ ANN H. ELLINGSEN
                                  --------------------
                               Name: Ann H. Ellingsen
                               Title: Vice President

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