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                                                                    EXHIBIT 10.2

                              OZ INTERACTIVE, INC.

                            1998 INCENTIVE STOCK PLAN

        1. Objectives. The OZ Interactive, Inc. 1998 Incentive Stock Plan (the
"Plan") is designed to retain directors, executives and selected employees and
consultants and reward them for making major contributions to the success of the
Company. These objectives are accomplished by making long-term incentive awards
under the Plan thereby providing Participants with a proprietary interest in the
growth and performance of the Company.

        2. Definitions

           (a) "Board" - The Board of Directors of the Company.

           (b) "California Securities Rules" - California Corporate Securities
Law of 1968 and the rules promulgated thereunder.

           (c) "Code" - The Internal Revenue Code of 1986, as amended from time
to time.

           (d) "Committee" - The Executive Compensation Committee of the
Company's Board, or such other committee of the Board that is designated by the
Board to administer the Plan, composed of not less than two members of the Board
all of whom are disinterested persons, as contemplated by Rule 16b-3 ("Rule
16b-3") promulgated under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). The foregoing requirement for disinterested administration
shall not apply prior to the date of the first registration of any of the
securities of the Company under the Exchange Act.

           (e) "Company" - OZ Interactive, Inc. and its subsidiaries including
subsidiaries of subsidiaries.

           (f) "Exchange Act" - The Securities Exchange Act of 1934, as amended
from time to time.

           (g) "Fair Market Value" - The fair market value of the Company's
issued and outstanding Stock as determined in good faith by the Board or
Committee.

           (h) "Grant" - The grant of any form of stock award or stock purchase
offer, whether granted singly, in combination or in tandem, to a Participant
pursuant to such terms, conditions and limitations as the Committee may
establish in order to fulfill the objectives of the Plan.

           (i) "Grant Agreement" - An agreement between the Company and a
Participant that sets forth the terms, conditions and limitations applicable to
a Grant.

           (k) "Participant" - A director, officer, employee or consultant of
the Company to whom an Award has been made under the Plan.

           (l) "Restricted Stock Purchase Offer" - A Grant of the right to
purchase a specified number of shares of Stock pursuant to a written agreement
issued under the Plan.

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           (m) "Securities Act" - The Securities Act of 1933, as amended from
time to time.

           (n) "Stock" - Authorized and issued or unissued shares of common
stock of the Company.

           (o) "Stock Award" - A Grant made under the Plan in stock or
denominated in units of stock for which the Participant is not obligated to pay
additional consideration.

        3. Administration. The Plan shall be administered by the Board, provided
however, that the Board may delegate such administration to the Committee.
Subject to the provisions of the Plan, the Board and/or the Committee shall have
authority to (a) grant, in its discretion, Stock Awards or Restricted Stock
Purchase Offers; (b) determine in good faith the fair market value of the Stock
covered by any Grant; (c) determine which eligible persons shall receive Grants
and the number of shares, restrictions, terms and conditions to be included in
such Grants; (d) construe and interpret the Plan; (e) promulgate, amend and
rescind rules and regulations relating to its administration, and correct
defects, omissions and inconsistencies in the Plan or any Grant; (f) consistent
with the Plan and with the consent of the Participant, as appropriate, amend any
outstanding Grant or amend the exercise date or dates thereof; (g) determine the
duration and purpose of leaves of absence which may be granted to Participants
without constituting termination of their employment for the purpose of the Plan
or any Grant; and (h) make all other determinations necessary or advisable for
the Plan's administration. The interpretation and construction by the Board of
any provisions of the Plan or selection of Participants shall be conclusive and
final. No member of the Board or the Committee shall be liable for any action or
determination made in good faith with respect to the Plan or any Grant made
thereunder.

        4. Eligibility

        The persons who shall be eligible to receive Grants shall be directors,
officers, employees or consultants to the Company. The term consultant shall
mean any person, other than an employee, who is engaged by the Company to render
services and is compensated for such services. Any issuance of a Grant to an
officer or director of the Company subsequent to the first registration of any
of the securities of the Company under the Exchange Act shall comply with the
requirements of Rule 16b-3.

        5. Stock

           (a) Authorized Stock: Stock subject to Grants may be either unissued
or reacquired Stock.

           (b) Number of Shares. The total number of shares of Stock which may
be purchased or granted directly by Stock Awards or Restricted Stock Purchase
Offers shall not exceed One Million (1,000,000). Any shares of Stock issued
pursuant to a Grant and repurchased pursuant to the terms thereof shall be
available for future Grants as though not previously covered by a Grant.

           (c) Reservation of Shares. The Company shall reserve and keep
available at all times during the term of the Plan such number of shares as
shall be sufficient to satisfy the requirements

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of the Plan. If, after reasonable efforts, which efforts shall not include the
registration of the Plan or Grants under the Securities Act, the Company is
unable to obtain authority from any applicable regulatory body, which
authorization is deemed necessary by legal counsel for the Company for the
lawful issuance of shares hereunder, the Company shall be relieved of any
liability with respect to its failure to issue and sell the shares for which
such requisite authority was so deemed necessary unless and until such authority
is obtained.

           (d) Application of Funds. The proceeds received by the Company from
the sale of Stock pursuant to rights under Stock Purchase Agreements will be
used for general corporate purposes.

        6. Stock Awards and Restricted Stock Purchase Offers.

           (a) Types of Grants

               (i) Stock Award. All or part of any Stock Award under the Plan
may be subject to conditions established by the Board or the Committee, and set
forth in the Stock Award Agreement, which may include, but are not limited to,
continuous service with the Company, achievement of specific business
objectives, increases in specified indices, attaining growth rates and other
comparable measurements of Company performance. Such Awards may be based on Fair
Market Value or other specified valuation. All Stock Awards will be made
pursuant to the execution of a Stock Award Agreement substantially in the form
attached hereto as Exhibit "A."

               (ii) Restricted Stock Purchase Offer. A Grant of a Restricted
Stock Purchase Offer under the Plan shall be subject to such (i) vesting
contingencies related to the Participant's continued association with the
Company for a specified time and (ii) other specified conditions as the Board or
Committee shall determine, in their sole discretion, consistent with the
provisions of the Plan. All Restricted Stock Purchase Offers shall be made
pursuant to a Restricted Stock Purchase Offer substantially in the form attached
hereto as Exhibit "B."

           (b) Conditions and Restrictions. Shares of Stock which Participants
may receive as a Stock Award under a Stock Award Agreement or Restricted Stock
Purchase Offer under a Restricted Stock Purchase Offer may include such
restrictions as the Board or Committee, as applicable, shall determine,
including restrictions on transfer, repurchase rights, right of first refusal,
and forfeiture provisions. When transfer of Stock is so restricted or subject to
forfeiture provisions it is referred to as "Restricted Stock." Further, with
Board or Committee approval, Stock Awards or Restricted Stock Purchase Offers
may be deferred, either in the form of installments or a future lump sum
distribution. The Board or Committee may permit selected Participants to elect
to defer distributions of Stock Awards or Restricted Stock Purchase Offers in
accordance with procedures established by the Board or Committee to assure that
such deferrals comply with applicable requirements of the Code including, at the
choice of Participants, the capability to make further deferrals for
distribution after retirement. Any deferred distribution, whether elected by the
Participant or specified by the Stock Award Agreement, Restricted Stock Purchase
Offers or by the Board or Committee, may require the payment be forfeited in
accordance with the provisions of Section 6(c). Dividends or dividend equivalent
rights may be extended to and made part of any Stock Award or Restricted Stock
Purchase Offers denominated in Stock or

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units of Stock, subject to such terms, conditions and restrictions as the Board
or Committee may establish.

           (c) Cancellation and Rescission of Grants. Unless the Stock Award
Agreement or Restricted Stock Purchase Offer specifies otherwise, the Board or
Committee, as applicable, may cancel any unexpired, unpaid, or deferred Grants
at any time if the Participant is not in compliance with all other applicable
provisions of the Stock Award Agreement or Restricted Stock Purchase Offer, the
Plan and with the following conditions:

               (i) A Participant shall not render services for any organization
or engage directly or indirectly in any business which, in the judgment of the
chief executive officer of the Company or other senior officer designated by the
Board or Committee, is or becomes competitive with the Company, or which
organization or business, or the rendering of services to such organization or
business, is or becomes otherwise prejudicial to or in conflict with the
interests of the Company. For Participants whose employment has terminated, the
judgment of the chief executive officer shall be based on the Participant's
position and responsibilities while employed by the Company, the Participant's
post-employment responsibilities and position with the other organization or
business, the extent of past, current and potential competition or conflict
between the Company and the other organization or business, the effect on the
Company's customers, suppliers and competitors and such other considerations as
are deemed relevant given the applicable facts and circumstances. A Participant
who has retired shall be free, however, to purchase as an investment or
otherwise, stock or other securities of such organization or business so long as
they are listed upon a recognized securities exchange or traded
over-the-counter, and such investment does not represent a substantial
investment to the Participant or a greater than 10 percent equity interest in
the organization or business.

               (ii) A Participant shall not, without prior written authorization
from the Company, disclose to anyone outside the Company, or use in other than
the Company's business, any confidential information or material, as defined in
the Company's Proprietary Information and Inventions Agreement or similar
agreement regarding confidential information and intellectual property, relating
to the business of the Company, acquired by the Participant either during or
after employment with the Company.

               (iii) A Participant, pursuant to the Company's Proprietary
Information and Inventions Agreement, shall disclose promptly and assign to the
Company all right, title and interest in any invention or idea, patentable or
not, made or conceived by the Participant during employment by the Company,
relating in any manner to the actual or anticipated business, research or
development work of the Company and shall do anything reasonably necessary to
enable the Company to secure a patent where appropriate in the United States and
in foreign countries.

               (iv) Upon exercise, payment or delivery pursuant to a Grant, the
Participant shall certify on a form acceptable to the Committee that he or she
is in compliance with the terms and conditions of the Plan. Failure to comply
with all of the provisions of this Section 6(c) prior to, or during the six
months after, any exercise, payment or delivery pursuant to a Grant shall cause
such exercise, payment or delivery to be rescinded. The Company shall notify the
Participant in writing of any such rescission within two years after such
exercise, payment or delivery. Within ten days after receiving such a notice
from the Company, the Participant shall pay to the Company the amount of any
gain realized or payment received as a result of the rescinded exercise, payment
or

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delivery pursuant to a Grant. Such payment shall be made either in cash or by
returning to the Company the number of shares of Stock that the Participant
received in connection with the rescinded exercise, payment or delivery.

           (d) Nonassignability

               (i) Except pursuant to Section 6(e)(iii) and except as set forth
in Section 6(d)(ii), no Grant or any other benefit under the Plan shall be
assignable or transferable, or payable to or exercisable by, anyone other than
the Participant to whom it was granted.

               (ii) Where a Participant terminates employment and retains a
Grant pursuant to Section 6(e)(ii) in order to assume a position with a
governmental, charitable or educational institution, the Board or Committee, in
its discretion and to the extent permitted by law, may authorize a third party
(including but not limited to the trustee of a "blind" trust), acceptable to the
applicable governmental or institutional authorities, the Participant and the
Board or Committee, to act on behalf of the Participant with regard to such
Awards.

           (e) Termination of Employment. If the employment or service to the
Company of a Participant terminates, other than pursuant to any of the following
provisions under this Section 6(e), all unexercised, deferred and unpaid Stock
Awards or Restricted Stock Purchase Offers shall be cancelled immediately,
unless the Stock Award Agreement or Restricted Stock Purchase Offer provides
otherwise:

               (i) Retirement Under a Company Retirement Plan. When a
Participant's employment terminates as a result of retirement in accordance with
the terms of a Company retirement plan, the Board or Committee may permit Stock
Awards or Restricted Stock Purchase Offers to continue in effect beyond the date
of retirement in accordance with the applicable Grant Agreement and the
exercisability and vesting of any such Grants may be accelerated.

               (ii) Rights in the Best Interests of the Company. When a
Participant resigns from the Company and, in the judgment of the Board or
Committee, the acceleration and/or continuation of outstanding Stock Awards or
Restricted Stock Purchase Offers would be in the best interests of the Company,
the Board or Committee may (i) authorize, where appropriate, the acceleration
and/or continuation of all or any part of Grants issued prior to such
termination and (ii) permit the exercise, vesting and payment of such Grants for
such period as may be set forth in the applicable Grant Agreement, subject to
earlier cancellation pursuant to Section 10 or at such time as the Board or
Committee shall deem the continuation of all or any part of the Participant's
Grants are not in the Company's best interest.

               (iii) Death or Disability of a Participant.

                     (1) In the event of a Participant's death, the
Participant's estate or beneficiaries shall have a period up to the expiration
date specified in the Grant Agreement within which to receive or exercise any
outstanding Grant held by the Participant under such terms as may be specified
in the applicable Grant Agreement. Rights to any such outstanding Grants shall
pass by will or the laws of descent and distribution in the following order: (a)
to beneficiaries so designated by the Participant; if none, then (b) to a legal
representative of the Participant; if none, then (c) to the persons entitled
thereto as determined by a court of competent jurisdiction. Grants so passing
shall be made at such times and in such manner as if the Participant were
living.

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                       (2) In the event a Participant is deemed by the Board or
Committee to be unable to perform his or her usual duties by reason of mental
disorder or medical condition which does not result from facts which would be
grounds for termination for cause, Grants and rights to any such Grants may be
paid to or exercised by the Participant, if legally competent, or a committee or
other legally designated guardian or representative if the Participant is
legally incompetent by virtue of such disability.

                       (3) After the death or disability of a Participant, the
Board or Committee may in its sole discretion at any time (1) terminate
restrictions in Grant Agreements; (2) accelerate any or all installments and
rights; and (3) instruct the Company to pay the total of any accelerated
payments in a lump sum to the Participant, the Participant's estate,
beneficiaries or representative -- notwithstanding that, in the absence of such
termination of restrictions or acceleration of payments, any or all of the
payments due under the Grant might ultimately have become payable to other
beneficiaries.

                       (4) In the event of uncertainty as to interpretation of
or controversies concerning this Section 6, the determinations of the Board or
Committee, as applicable, shall be binding and conclusive.

        7. Investment Intent. All Grants under the Plan are intended to be
exempt from registration under the Securities Act provided by Rule 701
thereunder. Unless and until the sale and issuance of Stock subject to the Plan
are registered under the Securities Act or shall be exempt pursuant to the rules
promulgated thereunder, each Grant under the Plan shall provide that the
purchases or other acquisitions of Stock thereunder shall be for investment
purposes and not with a view to, or for resale in connection with, any
distribution thereof.

        8. Amendment, Modification, Suspension or Discontinuance of the Plan.
The Board may, insofar as permitted by law, from time to time, with respect to
any shares at the time not subject to outstanding Grants, suspend or terminate
the Plan or revise or amend it in any respect whatsoever, except that without
the approval of the shareholders of the Company, no such revision or amendment
shall (i) increase the number of shares subject to the Plan, (ii) decrease the
price at which Grants may be granted, (iii) materially increase the benefits to
Participants, or (iv) change the class of persons eligible to receive Grants
under the Plan; provided, however, no such action shall alter or impair the
rights and obligations under any Stock Award or Restricted Stock Purchase Offer
outstanding as of the date thereof without the written consent of the
Participant thereunder. No Grant may be issued while the Plan is suspended or
after it is terminated, but the rights and obligations under any Grant issued
while the Plan is in effect shall not be impaired by suspension or termination
of the Plan.

        In the event of any change in the outstanding Stock by reason of a stock
split, stock dividend, combination or reclassification of shares,
recapitalization, merger, or similar event, the Board or the Committee may
adjust proportionally (a) the number of shares of Stock (i) reserved under the
Plan, (ii) covered by outstanding Stock Awards or Restricted Stock Purchase
Offers; (b) the Stock prices related to outstanding Grants; and (c) the
appropriate Fair Market Value and other price determinations for such Grants. In
the event of any other change affecting the Stock or any

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distribution (other than normal cash dividends) to holders of Stock, such
adjustments as may be deemed equitable by the Board or the Committee, including
adjustments to avoid fractional shares, shall be made to give proper effect to
such event. In the event of a corporate merger, consolidation, acquisition of
property or stock, separation, reorganization or liquidation, the Board or the
Committee shall be authorized to issue or assume Grants by means of substitution
of new Grant Agreements for previously issued Grants or an assumption of
previously issued Grants.

        9. Tax Withholding. The Company shall have the right to deduct
applicable taxes from any Grant payment and withhold, at the time of delivery of
Stock Awards or Restricted Stock Purchase Offers or vesting of shares under such
Grants, an appropriate number of shares for payment of taxes required by law or
to take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for withholding of such taxes. If Stock is used to
satisfy tax withholding, such stock shall be valued based on the Fair Market
Value when the tax withholding is required to be made.

        10. Availability of Information. During the term of the Plan and any
additional period during which a Grant granted pursuant to the Plan shall be
exercisable, the Company shall make available, not later than one hundred and
twenty (120) days following the close of each of its fiscal years, such
financial and other information regarding the Company as is required by the
bylaws of the Company and applicable law to be furnished in an annual report to
the shareholders of the Company.

        11. Notice. Any written notice to the Company required by any of the
provisions of the Plan shall be addressed to the president or to the chief
executive officer of the Company, and shall become effective when it is received
by the office of the president or the chief executive officer.

        12. Indemnification of Board. In addition to such other rights or
indemnifications as they may have as directors or otherwise, and to the extent
allowed by applicable law, the members of the Board and the Committee shall be
indemnified by the Company against the reasonable expenses, including attorneys'
fees, actually and necessarily incurred in connection with the defense of any
claim, action, suit or proceeding, or in connection with any appeal thereof, to
which they or any of them may be a party by reason of any action taken, or
failure to act, under or in connection with the Plan or any Grant granted
thereunder, and against all amounts paid by them in settlement thereof (provided
such settlement is approved by independent legal counsel selected by the
Company) or paid by them in satisfaction of a judgment in any such claim,
action, suit or proceeding, except in any case in relation to matters as to
which it shall be adjudged in such claim, action, suit or proceeding that such
Board or Committee member is liable for negligence or misconduct in the
performance of his or her duties; provided that within sixty (60) days after
institution of any such action, suit or Board proceeding the member involved
shall offer the Company, in writing, the opportunity, at its own expense, to
handle and defend the same.

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           13. Governing Law. The Plan and all determinations made and actions
taken pursuant hereto, to the extent not otherwise governed by the Code or the
securities laws of the United States, shall be governed by the law of the State
of California, USA, and construed accordingly.

           14. Effective and Termination Dates. The Plan shall become effective
on the date it is approved by the holders of a majority of the shares of Stock
then outstanding. The Plan shall terminate ten years later, subject to earlier
termination by the Board pursuant to Section 8.

           The foregoing 1998 Incentive Stock Plan (consisting of 8 pages,
including this page) was duly adopted and approved by the Board of Directors on
May 12, 1998 and will be submitted to the the shareholders of the Corporation
for approval at the next annual meeting of the Corporation.

                                            ----------------------------------
                                            Robert D. Friedman, Secretary

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                                   EXHIBIT A

                                     FORM OF

                              OZ INTERACTIVE, INC.

                              STOCK AWARD AGREEMENT

        THIS STOCK AWARD AGREEMENT ("Agreement") is made and entered into as of
the date set forth below, by and between OZ Interactive, Inc., a California
corporation (the "Company"), and the employee, director or consultant of the
Company named in Section 1(b). ("Grantee"):

        In consideration of the covenants herein set forth, the parties hereto
agree as follows:

        1. Stock Award Information

                (a) Date of Award:

                (b) Grantee:

                (c) Number of Shares:

                (d) Original Value:

        2. Acknowledgements.

                (a) Grantee is a [employee/director/consultant] of the Company.

                (b) The Company has adopted a 1998 Incentive Stock Plan (the
        "Plan") under which the Company's common stock ("Stock") may be offered
        to directors, officers, employees and consultants pursuant to an
        exemption from registration under the Securities Act of 1933, as amended
        (the "Securities Act") provided by Rule 701 thereunder.

        3. Shares; Value. The Company hereby grants to Grantee, upon and subject
to the terms and conditions herein stated, the number of shares of Stock set
forth in Section 1(c) (the "Shares"), which Shares have a fair value per share
("Original Value") equal to the amount set forth in Section 1(d). For the
purpose of this Agreement, the terms "Share" or "Shares" shall include the
original Shares plus any shares derived therefrom, regardless of the fact that
the number, attributes or par value of such Shares may have been altered by
reason of any recapitalization, subdivision, consolidation, stock dividend or
amendment of the corporate charter of the Company. The number of Shares covered
by this Agreement and the Original Value thereof shall be proportionately
adjusted for any increase or decrease in the number of issued shares resulting
from a recapitalization, subdivision or consolidation of shares or the payment
of a stock dividend, or any other increase or decrease in the number of such
shares effected without receipt of consideration by the Company.

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        4. Investment Intent. Grantee represents and agrees that Grantee is
accepting the Shares for the purpose of investment and not with a view to, or
for resale in connection with, any distribution thereof; and that, if requested,
Grantee shall furnish to the Company a written statement to such effect,
satisfactory to the Company in form and substance. If the Shares are registered
under the Securities Act, Grantee shall be relieved of the foregoing investment
representation and agreement and shall not be required to furnish the Company
with the foregoing written statement.

        5. Restriction Upon Transfer. The Shares may not be sold, transferred or
otherwise disposed of and shall not be pledged or otherwise hypothecated by the
Grantee except as hereinafter provided.

                (a) Repurchase Right on Termination Other Than for Cause. For
        the purposes of this Section, a "Repurchase Event" shall mean an
        occurrence of one of (i) termination of Grantee's employment [or service
        as a director/consultant] by the Company, voluntary or involuntary and
        with or without cause; (ii) retirement or death of Grantee; (iii)
        bankruptcy of Grantee, which shall be deemed to have occurred as of the
        date on which a voluntary or involuntary petition in bankruptcy is filed
        with a court of competent jurisdiction; (iv) dissolution of the marriage
        of Grantee, to the extent that any of the Shares are allocated as the
        sole and separate property of Grantee's spouse pursuant thereto (in
        which case, this Section shall only apply to the Shares so affected); or
        (v) any attempted transfer by the Grantee of Shares, or any interest
        therein, in violation of this Agreement. Upon the occurrence of a
        Repurchase Event, the Company shall have the right (but not an
        obligation) to purchase all or any portion of the Shares of Grantee, at
        a price equal to the fair value of the Shares as of the date of the
        Repurchase Event. [10 CCR 260.140.42(h)]

                (b) Repurchase Right on Termination for Cause. In the event
        Grantee's employment [or service as a director/consultant] is terminated
        by the Company "for cause" (as defined below), then the Company shall
        have the right (but not an obligation) to purchase Shares of Grantee at
        a price equal to the Original Value. Such right of the Company to
        purchase Shares shall apply to 100% of the Shares for one (1) year from
        the date of this Agreement; and shall thereafter lapse at the rate of
        twenty percent (20%) of the Shares on each anniversary of the date of
        this Agreement. In addition, the Company shall have the right, in the
        sole discretion of the Board and without obligation, to repurchase upon
        termination for cause all or any portion of the Shares of Grantee, at a
        price equal to the fair value of the Shares as of the date of
        termination, which right is not subject to the foregoing lapsing of
        rights. Termination of employment [or service as a director/consultant]
        "for cause" means (i) as to employees or consultants, termination for
        cause as contemplated by applicable law, or as defined in the Plan, this
        Agreement or in any employment [or consulting] agreement between the
        Company and Grantee, or (ii) as to directors, removal pursuant to the
        California corporation law. In the event the Company elects to purchase
        the Shares, the stock certificates representing the same shall forthwith
        be returned to the Company for cancellation.

                (c) Exercise of Repurchase Right. Any Repurchase Right under
        Paragraphs 4(a) or 4(b) shall be exercised by giving notice of exercise
        as provided herein to Grantee or the estate of Grantee, as applicable.
        Such right shall be exercised, and the repurchase price thereunder shall
        be paid, by the Company within a ninety (90) day period beginning on the

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        date of notice to the Company of the occurrence of such Repurchase Event
        (except in the case of termination or cessation of services as director,
        where such option period shall begin upon the occurrence of the
        Repurchase Event). Such repurchase price shall be payable only in the
        form of cash (including a check drafted on immediately available funds)
        or cancellation of purchase money indebtedness of the Grantee for the
        Shares. If the Company can not purchase all such Shares because it is
        unable to meet the financial tests set forth in the California
        corporation law, the Company shall have the right to purchase as many
        Shares as it is permitted to purchase under such sections. Any Shares
        not purchased by the Company hereunder shall no longer be subject to the
        provisions of this Section 5.

                (d) Right of First Refusal. In the event Grantee desires to
        transfer any Shares during his or her lifetime, Grantee shall first
        offer to sell such Shares to the Company. Grantee shall deliver to the
        Company written notice of the intended sale, such notice to specify the
        number of Shares to be sold, the proposed purchase price and terms of
        payment, and grant the Company an option for a period of thirty days
        following receipt of such notice to purchase the offered Shares upon the
        same terms and conditions. To exercise such option, the Company shall
        give notice of that fact to Grantee within the thirty (30) day notice
        period and agree to pay the purchase price in the manner provided in the
        notice. If the Company does not purchase all of the Shares so offered
        during foregoing option period, Grantee shall be under no obligation to
        sell any of the offered Shares to the Company, but may dispose of such
        Shares in any lawful manner during a period of one hundred and eighty
        (180) days following the end of such notice period, except that Grantee
        shall not sell any such Shares to any other person at a lower price or
        upon more favorable terms than those offered to the Company.

                (e) Acceptance of Restrictions. Acceptance of the Shares shall
        constitute the Grantee's agreement to such restrictions and the
        legending of his certificates with respect thereto. Notwithstanding such
        restrictions, however, so long as the Grantee is the holder of the
        Shares, or any portion thereof, he shall be entitled to receive all
        dividends declared on and to vote the Shares and to all other rights of
        a shareholder with respect thereto.

                (f) Permitted Transfers. Notwithstanding any provisions in this
        Section 5 to the contrary, the Grantee may transfer Shares subject to
        this Agreement to his or her parents, spouse, children, or
        grandchildren, or a trust for the benefit of the Grantee or any such
        transferee(s); provided, that such permitted transferee(s) shall hold
        the Shares subject to all the provisions of this Agreement (all
        references to the Grantee herein shall in such cases refer mutatis
        mutandis to the permitted transferee, except in the case of clause (iv)
        of Section 5(a) wherein the permitted transfer shall be deemed to be
        rescinded); and provided further, that notwithstanding any other
        provisions in this Agreement, a permitted transferee may not, in turn,
        make permitted transfers without the written consent of the Grantee and
        the Company.

                (g) Release of Restrictions on Shares. All rights and
        restrictions under this Section 5 shall terminate three (3) years
        following the date of this Agreement, or when the Company's securities
        are publicly traded, whichever occurs earlier.

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        6. Representations and Warranties of the Grantee. This Agreement and the
issuance and grant of the Shares hereunder is made by the Company in reliance
upon the express representations and warranties of the Grantee, which by
acceptance hereof the Grantee confirms that:

                (a) The Shares granted to him pursuant to this Agreement are
        being acquired by him for his own account, for investment purposes, and
        not with a view to, or for sale in connection with, any distribution of
        the Shares. It is understood that the Shares have not been registered
        under the Act by reason of a specific exemption from the registration
        provisions of the Act which depends, among other things, upon the bona
        fide nature of his representations as expressed herein;

                (b) The Shares must be held by him indefinitely unless they are
        subsequently registered under the Act and any applicable state
        securities laws, or an exemption from such registration is available.
        The Company is under no obligation to register the Shares or to make
        available any such exemption; and

                (c) Grantee further represents that Grantee has had access to
        the financial statements or books and records of the Company, has had
        the opportunity to ask questions of the Company concerning its business,
        operations and financial condition and to obtain additional information
        reasonably necessary to verify the accuracy of such information,

                (d) Unless and until the Shares represented by this Grant are
        registered under the Securities Act, all certificates representing the
        Shares and any certificates subsequently issued in substitution therefor
        and any certificate for any securities issued pursuant to any stock
        split, share reclassification, stock dividend or other similar capital
        event shall bear legends in substantially the following form:

        THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER
        THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT") OR UNDER THE
        APPLICABLE OR SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR
        ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR
        ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO
        EXEMPTIONS THEREFROM.

        THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO
        THAT CERTAIN STOCK AWARD AGREEMENT DATED ____________ BETWEEN THE
        COMPANY AND THE ISSUEE WHICH RESTRICTS THE TRANSFER OF THESE SHARES
        WHICH ARE SUBJECT TO REPURCHASE BY THE COMPANY UNDER CERTAIN CONDITIONS.

                                       4
<PAGE>   13

        and/or such other legend or legends as the Company and its counsel deem
        necessary or appropriate. Appropriate stop transfer instructions with
        respect to the Shares have been placed with the Company's transfer
        agent.

                (e) Grantee understands that he or she will recognize income,
        for income tax purposes, in an amount equal to the amount by which the
        fair market value of the Shares, as of the date of grant, exceeds the
        price paid by Grantee, if any. The acceptance of the Shares by Grantee
        shall constitute an agreement by Grantee to report such income in
        accordance with then applicable law. Withholding for income and
        employment tax purposes will be made, if and as required by law, from
        Grantee's then current compensation, or, if such current compensation is
        insufficient to satisfy withholding tax liability, the Company may
        require Grantee to make a cash payment to cover such liability.

        7. Stand-off Agreement. Grantee agrees that, in connection with any
registration of the Company's securities under the Securities Act, and upon the
request of the Company or any underwriter managing an underwritten offering of
the Company's securities, Grantee shall not sell, short any sale of, loan, grant
an option for, or otherwise dispose of any of the Shares (other than Shares
included in the offering) without the prior written consent of the Company or
such managing underwriter, as applicable, for a period of at least one year
following the effective date of registration of such offering. This Section 7
shall survive any termination of this Agreement.

        8. Termination of Agreement. This Agreement shall terminate on the
occurrence of any one of the following events: (a) written agreement of all
parties to that effect; (b) a proposed dissolution or liquidation of the
Company, a merger or consolidation in which the Company is not the surviving
entity, or a sale of all or substantially all of the assets of the Company; (c)
the closing of any public offering of common stock of the Company pursuant to an
effective registration statement under the Securities Act; or (d) dissolution,
bankruptcy, or insolvency of the Company.

        9. Agreement Subject to Plan; Applicable Law. This Grant is made
pursuant to the Plan and shall be interpreted to comply therewith. A copy of
such Plan is available to Grantee, at no charge, at the principal office of the
Company. Any provision of this Agreement inconsistent with the Plan shall be
considered void and replaced with the applicable provision of the Plan. This
Grant shall be governed by the laws of the State of California, USA and subject
to the exclusive jurisdiction of the courts therein.

        10. Miscellaneous.

                (a) Notices. Any notice required to be given pursuant to this
        Agreement or the Plan shall be in writing and shall be deemed to have
        been duly delivered upon receipt or, in the case of notices by the
        Company, five (5) days after deposit in the U.S. or Iceland mail,
        postage prepaid, addressed to Grantee at the last address provided by
        Grantee for use in the Company's records.

                (b) Entire Agreement. This instrument constitutes the sole
        agreement of the parties hereto with respect to the Shares. Any prior
        agreements, promises or representations concerning the Shares not
        included or reference herein shall be of no force or effect. This
        Agreement shall be binding on, and shall inure to the benefit of, the
        Parties hereto and their respective transferees, heirs, legal
        representatives, successors, and assigns.

                                       5
<PAGE>   14

                (c) Enforcement. This Agreement shall be construed in accordance
        with, and governed by, the laws of the State of California and subject
        to the exclusive jurisdiction of the courts located in San Francisco
        county, state of California. If Grantee attempts to transfer any of the
        Shares subject to this Agreement, or any interest in them in violation
        of the terms of this Agreement, the Company may apply to any court for
        an injunctive order prohibiting such proposed transaction, and the
        Company may institute and maintain proceedings against Grantee to compel
        specific performance of this Agreement without the necessity of proving
        the existence or extent of any damages to the Company. Any such
        attempted transaction shares in violation of this Agreement shall be
        null and void.

                (d) Validity of Agreement. The provisions of this Agreement may
        be waived, altered, amended, or repealed, in whole or in part, only on
        the written consent of all parties hereto. It is intended that each
        Section of this Agreement shall be viewed as separate and divisible, and
        in the event that any Section shall be held to be invalid, the remaining
        Sections shall continue to be in full force and effect.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                        OZ INTERACTIVE, INC.

                                        By:
                                           ------------------------------------

                                        ---------------------------------------
                                                           Grantee

             (one of the following, as appropriate, shall be signed)

I certify that as of the date                 By his or her signature, the
hereof I am unmarried                         spouse of Optionee hereby agrees
                                              to be bound by the provisions of
                                              the foregoing STOCK AWARD
                                              AGREEMENT

----------------------------                  --------------------------------
        Grantee                                         Spouse of Grantee

                                       6
<PAGE>   15

                                   EXHIBIT "B"

                              OZ INTERACTIVE, INC.

                       RESTRICTED STOCK PURCHASE AGREEMENT

        THIS RESTRICTED STOCK PURCHASE AGREEMENT ("Agreement") is made and
entered into as of the date set forth below, by and between OZ Interactive,
Inc., a California corporation (the "Company"), and the employee, director or
consultant of the Company named in Section 1(b) ("Grantee").

        In consideration of the covenants herein set forth, the parties hereto
agree as follows:

        1. Stock Purchase Information

                (a) Date of Agreement:

                (b) Grantee:

                (c) Number of Shares:

                (d) Price per Share:

        2. Acknowledgements

                (a) Grantee is a [employee/director/consultant] of the Company.

                (b) The Company has adopted a 1998 Incentive Stock Plan (the
        "Plan") under which the Company's common stock ("Stock") may be offered
        to officers, employees, directors and consultants pursuant to an
        exemption from registration under the Securities Act of 1933, as amended
        (the "Securities Act") provided by Rule 701 thereunder.

                (c) The Grantee desires to purchase shares of the Company's
        common stock on the terms and conditions set forth herein.

        3. Purchase of Shares. The Company hereby agrees to sell and Grantee
hereby agrees to purchase, upon and subject to the terms and conditions herein
stated, the number of shares of Stock set forth in Section 1(c) (the "Shares"),
at the price per Share set forth in Section 1(d) (the "Price"). For the purpose
of this Agreement, the terms "Share" or "Shares" shall include the original
Shares plus any shares derived therefrom, regardless of the fact that the
number, attributes or par value of such Shares may have been altered by reason
of any recapitalization, subdivision, consolidation, stock dividend or amendment
of the corporate charter of the Company. The number of Shares covered by this
Agreement shall be proportionately adjusted for any increase or decrease in the
number of issued shares resulting from a recapitalization, subdivision or
consolidation of shares or

                                       1
<PAGE>   16

the payment of a stock dividend, or any other increase or decrease in the number
of such shares effected without receipt of consideration by the Company.

        4. Investment Intent. Grantee represents and agrees that Grantee is
accepting the Shares for the purpose of investment and not with a view to, or
for resale in connection with, any distribution thereof; and that, if requested,
Grantee shall furnish to the Company a written statement to such effect,
satisfactory to the Company in form and substance. If the Shares are registered
under the Securities Act, Grantee shall be relieved of the foregoing investment
representation and agreement and shall not be required to furnish the Company
with the foregoing written statement.

        5. Restriction Upon Transfer. The Shares may not be sold, transferred or
otherwise disposed of and shall not be pledged or otherwise hypothecated by the
Grantee except as hereinafter provided.

                (a) Repurchase Right on Termination Other Than for Cause. For
        the purposes of this Section, a "Repurchase Event" shall mean an
        occurrence of one of (i) termination of Grantee's employment [or service
        as a director/consultant] by the Company, voluntary or involuntary and
        with or without cause; (ii) retirement or death of Grantee; (iii)
        bankruptcy of Grantee, which shall be deemed to have occurred as of the
        date on which a voluntary or involuntary petition in bankruptcy is filed
        with a court of competent jurisdiction; (iv) dissolution of the marriage
        of Grantee, to the extent that any of the Shares are allocated as the
        sole and separate property of Grantee's spouse pursuant thereto (in
        which case, this Section shall only apply to the Shares so affected); or
        (v) any attempted transfer by the Grantee of Shares, or any interest
        therein, in violation of this Agreement. Upon the occurrence of a
        Repurchase Event, the Company shall have the right (but not an
        obligation) to repurchase all or any portion of the Shares of Grantee at
        a price equal to the fair value of the Shares as of the date of the
        Repurchase Event.

                (b) Repurchase Right on Termination for Cause. In the event
        Grantee's employment [or service as a director/consultant] is terminated
        by the Company "for cause" (as defined below), then the Company shall
        have the right (but not an obligation) to repurchase Shares of Grantee
        at a price equal to the Price. Such right of the Company to repurchase
        Shares shall apply to 100% of the Shares for one (1) year from the date
        of this Agreement; and shall thereafter lapse at the rate of twenty
        percent (20%) of the Shares on each anniversary of the date of this
        Agreement. In addition, the Company shall have the right, in the sole
        discretion of the Board and without obligation, to repurchase upon
        termination for cause all or any portion of the Shares of Grantee, at a
        price equal to the fair value of the Shares as of the date of
        termination, which right is not subject to the foregoing lapsing of
        rights. Termination of employment [or service as a director/consultant]
        "for cause" means (i) as to employees and consultants, termination for
        cause under applicable law, or as defined in the Plan, this Agreement or
        in any employment [or consulting] agreement between the Company and
        Grantee, or (ii) as to directors, removal pursuant to the California
        corporation law. In the event the Company elects to repurchase the
        Shares, the stock certificates representing the same shall forthwith be
        returned to the Company for cancellation.

                (c) Exercise of Repurchase Right. Any Repurchase Right under
        Paragraphs 4(a) or 4(b) shall be exercised by giving notice of exercise
        as provided herein to Grantee or the estate of Grantee, as applicable.
        Such right shall be exercised, and the repurchase price

                                       2
<PAGE>   17

        thereunder shall be paid, by the Company within a ninety (90) day period
        beginning on the date of notice to the Company of the occurrence of such
        Repurchase Event (except in the case of termination of employment or
        retirement, where such option period shall begin upon the occurrence of
        the Repurchase Event). Such repurchase price shall be payable only in
        the form of cash (including a check drafted on immediately available
        funds) or cancellation of purchase money indebtedness of the Grantee for
        the Shares. If the Company can not purchase all such Shares because it
        is unable to meet the financial tests set forth in the [state]
        corporation law, the Company shall have the right to purchase as many
        Shares as it is permitted to purchase under such sections. Any Shares
        not purchased by the Company hereunder shall no longer be subject to the
        provisions of this Section 5.

                (d) Right of First Refusal. In the event Grantee desires to
        transfer any Shares during his or her lifetime, Grantee shall first
        offer to sell such Shares to the Company. Grantee shall deliver to the
        Company written notice of the intended sale, such notice to specify the
        number of Shares to be sold, the proposed purchase price and terms of
        payment, and grant the Company an option for a period of thirty days
        following receipt of such notice to purchase the offered Shares upon the
        same terms and conditions. To exercise such option, the Company shall
        give notice of that fact to Grantee within the thirty (30) day notice
        period and agree to pay the purchase price in the manner provided in the
        notice. If the Company does not purchase all of the Shares so offered
        during foregoing option period, Grantee shall be under no obligation to
        sell any of the offered Shares to the Company, but may dispose of such
        Shares in any lawful manner during a period of one hundred and eighty
        (180) days following the end of such notice period, except that Grantee
        shall not sell any such Shares to any other person at a lower price or
        upon more favorable terms than those offered to the Company.

                (e) Acceptance of Restrictions. Acceptance of the Shares shall
        constitute the Grantee's agreement to such restrictions and the
        legending of his certificates with respect thereto. Notwithstanding such
        restrictions, however, so long as the Grantee is the holder of the
        Shares, or any portion thereof, he shall be entitled to receive all
        dividends declared on and to vote the Shares and to all other rights of
        a shareholder with respect thereto.

                (f) Permitted Transfers. Notwithstanding any provisions in this
        Section 5 to the contrary, the Grantee may transfer Shares subject to
        this Agreement to his or her parents, spouse, children, or
        grandchildren, or a trust for the benefit of the Grantee or any such
        transferee(s); provided, that such permitted transferee(s) shall hold
        the Shares subject to all the provisions of this Agreement (all
        references to the Grantee herein shall in such cases refer mutatis
        mutandis to the permitted transferee, except in the case of clause (iv)
        of Section 5(a) wherein the permitted transfer shall be deemed to be
        rescinded); and provided further, that notwithstanding any other
        provisions in this Agreement, a permitted transferee may not, in turn,
        make permitted transfers without the written consent of the Grantee and
        the Company.

                (g) Release of Restrictions on Shares. All rights and
        restrictions under this Section 5 shall terminate five (5) years
        following the date upon which the Company receives the full Price as set
        forth in Section 3, or when the Company's securities are publicly
        traded, whichever occurs earlier.

                                       3
<PAGE>   18

        5. Representations and Warranties of the Grantee. This Agreement and the
issuance and grant of the Shares hereunder is made by the Company in reliance
upon the express representations and warranties of the Grantee, which by
acceptance hereof the Grantee confirms that:

                (a) The Shares granted to him pursuant to this Agreement are
        being acquired by him for his own account, for investment purposes, and
        not with a view to, or for sale in connection with, any distribution of
        the Shares. It is understood that the Shares have not been registered
        under the Act by reason of a specific exemption from the registration
        provisions of the Act which depends, among other things, upon the bona
        fide nature of his representations as expressed herein;

                (b) The Shares must be held by him indefinitely unless they are
        subsequently registered under the Act and any applicable state
        securities laws, or an exemption from such registration is available.
        The Company is under no obligation to register the Shares or to make
        available any such exemption; and

                (c) Grantee further represents that Grantee has had access to
        the financial statements or books and records of the Company, has had
        the opportunity to ask questions of the Company concerning its business,
        operations and financial condition and to obtain additional information
        reasonably necessary to verify the accuracy of such information;

                (d) Unless and until the Shares represented by this Grant are
        registered under the Securities Act, all certificates representing the
        Shares and any certificates subsequently issued in substitution therefor
        and any certificate for any securities issued pursuant to any stock
        split, share reclassification, stock dividend or other similar capital
        event shall bear legends in substantially the following form:

        THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER
        THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT") OR UNDER THE
        APPLICABLE OR SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR
        ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR
        ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO
        EXEMPTIONS THEREFROM.

        THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO
        THAT CERTAIN RESTRICTED STOCK PURCHASE AGREEMENT DATED ____________
        BETWEEN THE COMPANY AND THE ISSUEE WHICH RESTRICTS THE TRANSFER OF THESE
        SHARES WHICH ARE SUBJECT TO REPURCHASE BY THE COMPANY UNDER CERTAIN
        CONDITIONS.

                                       4
<PAGE>   19

        and/or such other legend or legends as the Company and its counsel deem
        necessary or appropriate. Appropriate stop transfer instructions with
        respect to the Shares have been placed with the Company's transfer
        agent.

                (e) Grantee understands that he or she will recognize income,
        for income tax purposes, in an amount equal to the amount by which the
        fair market value of the Shares, as of the date of Grant, exceeds the
        price paid by Grantee. The acceptance of the Shares by Grantee shall
        constitute an agreement by Grantee to report such income in accordance
        with then applicable law. Withholding for income and employment tax
        purposes will be made, if and as required by law, from Grantee's then
        current compensation, or, if such current compensation is insufficient
        to satisfy withholding tax liability, the Company may require Grantee to
        make a cash payment to cover such liability.

        7. Stand-off Agreement. Grantee agrees that, in connection with any
registration of the Company's securities under the Securities Act, and upon the
request of the Company or any underwriter managing an underwritten offering of
the Company's securities, Grantee shall not sell, short any sale of, loan, grant
an option for, or otherwise dispose of any of the Shares (other than Shares
included in the offering) without the prior written consent of the Company or
such managing underwriter, as applicable, for a period of at least one year
following the effective date of registration of such offering. This Section 8
shall survive any termination of this Agreement.

        8. Termination of Agreement. This Agreement shall terminate on the
occurrence of any one of the following events: (a) written agreement of all
parties to that effect; (b) a proposed dissolution or liquidation of the
Company, a merger or consolidation in which the Company is not the surviving
entity, or a sale of all or substantially all of the assets of the Company; (c)
the closing of any public offering of common stock of the Company pursuant to an
effective registration statement under the Act; or (d) dissolution, bankruptcy,
or insolvency of the Company.

        9. Agreement Subject to Plan; Applicable Law. This Grant is made
pursuant to the Plan and shall be interpreted to comply therewith. A copy of
such Plan is available to Grantee, at no charge, at the principal office of the
Company. Any provision of this Agreement inconsistent with the Plan shall be
considered void and replaced with the applicable provision of the Plan. This
Grant shall be governed by the laws of the State of California and subject to
the exclusive jurisdiction of the courts therein.

        10. Miscellaneous

                (a) Notices. Any notice required to be given pursuant to this
        Agreement or the Plan shall be in writing and shall be deemed to have
        been duly delivered upon receipt or, in the case of notices by the
        Company, five (5) days after deposit in the U.S. or Iceland mail,
        postage prepaid, addressed to Grantee at the last address provided by
        Grantee for use in the Company's records.

                (b) Entire Agreement. This instrument constitutes the sole
        agreement of the parties hereto with respect to the Shares. Any prior
        agreements, promises or representations concerning the Shares not
        included or reference herein shall be of no force or effect. This
        Agreement shall be binding on, and shall inure to the benefit of, the
        Parties hereto and their respective transferees, heirs, legal
        representatives, successors, and assigns.

                                       5
<PAGE>   20

                (c) Enforcement. This Agreement shall be construed in accordance
        with, and governed by, the laws of the State of California and subject
        to the exclusive jurisdiction of the courts located in San Francisco
        county, state of California. If Grantee attempts to transfer any of the
        Shares subject to this Agreement, or any interest in them in violation
        of the terms of this Agreement, the Company may apply to any court for
        an injunctive order prohibiting such proposed transaction, and the
        Company may institute and maintain proceedings against Grantee to compel
        specific performance of this Agreement without the necessity of proving
        the existence or extent of any damages to the Company. Any such
        attempted transaction shares in violation of this Agreement shall be
        null and void.

                (d) Validity of Agreement. The provisions of this Agreement may
        be waived, altered, amended, or repealed, in whole or in part, only on
        the written consent of all parties hereto. It is intended that each
        Section of this Agreement shall be viewed as separate and divisible, and
        in the event that any Section shall be held to be invalid, the remaining
        Sections shall continue to be in full force and effect.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                        OZ INTERACTIVE, INC.

                                        By:
                                           ------------------------------------

                                        ---------------------------------------
                                                           Grantee

             (one of the following, as appropriate, shall be signed)

I certify that as of the date           By his or her signature, the
hereof I am unmarried                   spouse of Optionee hereby agrees
                                        to be bound by the provisions of
                                        the foregoing

----------------------------            --------------------------------------
        Grantee                                  Spouse of Grantee

                                       6<PAGE>   1
                                                                   EXHIBIT 10.3

                                   APPENDIX A

                                   OZ.COM 2000
                          EMPLOYEE STOCK PURCHASE PLAN

I. PURPOSE OF THE PLAN

        This Employee Stock Purchase Plan is intended to promote the interests
of OZ.COM by providing eligible employees with the opportunity to acquire a
proprietary interest in the Corporation through participation in a
payroll-deduction based employee stock purchase plan designed to qualify under
Section 423 of the Code.

        Capitalized terms herein shall have the meanings assigned to such terms
in the attached Appendix.

II. ADMINISTRATION OF THE PLAN

        The Plan Administrator shall have full authority to interpret and
construe any provision of the Plan and to adopt such rules and regulations for
administering the Plan as it may deem necessary in order to comply with the
requirements of Code Section 423. Decisions of the Plan Administrator shall be
final and binding on all parties having an interest in the Plan.

III. STOCK SUBJECT TO PLAN

        A. The stock purchasable under the Plan shall be shares of authorized
but unissued or reacquired Common Stock, including shares of Common Stock
purchased on the open market. The maximum number of shares of Common Stock which
may be issued over the term of the Plan shall not exceed Two Million Five
Hundred Thousand (2,500,000) shares.

        B. Should any change be made to the Common Stock by reason of any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without
the Corporation's receipt of consideration, then appropriate adjustments shall
be made to (i) the maximum number and class of securities issuable under the
Plan, (ii) the maximum number and class of securities purchasable per
Participant on any one Purchase Date, (iii) the maximum number and class of
securities purchasable in the aggregate on any one Purchase Date and (iv) the
number and class of securities and the price per share in effect under each
outstanding purchase right in order to prevent the dilution or enlargement of
benefits thereunder.

IV. OFFERING PERIODS

        A. Shares Of Common Stock shall be offered for purchase under the Plan
through a series of successive offering periods until such time as (i) the
maximum number of shares of Common Stock available for issuance under the Plan
shall have been purchased or (ii) the Plan shall have been sooner terminated.

        B. Each offering period shall be of such duration (not to exceed
twenty-four (24) months) as determined by the Plan Administrator prior to the
start date of such offering period. However, the initial offering period shall
commence at the Effective Time and terminate on the last payroll day prior to
June 15, 2002. The next offering

<PAGE>   2

period shall commence on the first payroll day on or after June 15, 2002, and
subsequent offering periods shall commence as designated by the Plan
Administrator.

        C. Each offering period shall be comprised of a series of one or more
successive Purchase Intervals. Purchase Intervals shall run from the first
payroll day on or after June 15 of each year to the last payroll day in December
of the same year and from the first payroll day in January of each year to the
last payroll day prior to June 15 of the following year. However, the first
Purchase Interval in effect under the initial offering period shall commence at
the Effective Time and terminate on the last payroll day in December 2000.

        D. Should the Fair Market Value per share of Common Stock on any
Purchase Date within an offering period be less than the Fair Market Value per
share of Common Stock on the start date of that offering period, then that
offering period shall automatically terminate immediately after the purchase of
shares of Common Stock on such Purchase Date, and a new offering period shall
commence on the next payroll day following such Purchase Date. The new offering
period shall have a duration of twenty (24) months, unless a shorter duration is
established by the Plan Administrator within five (5) business days following
the start date of that offering period.

V. ELIGIBILITY

        A. Each individual who is an Eligible Employee on the start date of any
offering period under the Plan may enter that offering period on such start date
or on any subsequent Quarterly Entry Date within that offering period, provided
he or she remains an Eligible Employee.

        B. Each individual who first becomes an Eligible Employee after the
start date of an offering period may enter that offering period on any
subsequent Quarterly Entry Date within that offering period on which he or she
is an Eligible Employee.

        C. The date an individual enters an offering period shall be designated
his or her Entry Date for purposes of that offering period.

        D. To participate in the Plan for a particular offering period, the
Eligible Employee must complete the enrollment forms prescribed by the Plan
Administrator (including a stock purchase agreement and a payroll deduction
authorization) and file such forms with the Plan Administrator (or its
designate) on or before his or her scheduled Entry Date.

VI. PAYROLL DEDUCTIONS

        A. The payroll deduction authorized by the Participant for purposes of
acquiring shares of Common Stock during an offering period may be any multiple
of one percent (1%) of the Cash Earnings paid to the Participant during each
Purchase Interval within that offering period, up to a maximum of fifteen
percent (15%). The deduction rate so authorized shall continue in effect
throughout the offering period, except to the extent such rate is changed in
accordance with the following guidelines:

                (i) The Participant may, at any time during the offering period,
        reduce his or her rate of payroll deduction to become effective as soon
        as possible

<PAGE>   3

        after filing the appropriate form with the Plan Administrator. The
        Participant may not, however, effect more than one (1) such reduction
        per Purchase Interval.

                (ii) The Participant may, prior to the commencement of any new
        Purchase Interval within the offering period, increase the rate of his
        or her payroll deduction by filing the appropriate form with the Plan
        Administrator. The new rate (which may not exceed the fifteen percent
        (15%) maximum) shall become effective on the start date of the first
        Purchase Interval following the filing of such form.

        B. Payroll deductions shall begin on the first pay day following the
Participant's Entry Date into the offering period and shall (unless sooner
terminated by the Participant) continue through the pay day ending with or
immediately prior to the last day of that offering period. The amounts so
collected shall be credited to the Participant's book account under the Plan,
but no interest shall be paid on the balance from time to time outstanding in
such account. The amounts collected from the Participant shall not be required
to be held in any segregated account or trust fund and may be commingled with
the general assets of the Corporation and used for general corporate purposes.

        C. Payroll deductions shall automatically cease upon the termination of
the Participant's purchase right in accordance with the provisions of the Plan.

        D. The Participant's acquisition of Common Stock under the Plan on any
Purchase Date shall neither limit nor require the Participant's acquisition of
Common Stock on any subsequent Purchase Date, whether within the same or a
different offering period.

VII. PURCHASE RIGHTS

        A. GRANT OF PURCHASE RIGHT. A Participant shall be granted a separate
purchase right for each offering period in which he or she participates. The
purchase right shall be granted on the Participant's Entry Date into the
offering period and shall provide the Participant with the right to purchase
shares of Common Stock, in a series of successive installments over the
remainder of such offering period, upon the terms set forth below. The
Participant shall execute a stock purchase agreement embodying such terms and
such other provisions (not inconsistent with the Plan) as the Plan Administrator
may deem advisable.

        Under no circumstances shall purchase rights be granted under the Plan
to any Eligible Employee if such individual would, immediately after the grant,
own (within the meaning of Code Section 424(d)) or hold outstanding options or
other rights to purchase, stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Corporation
or any Corporate Affiliate.

        B. EXERCISE OF THE PURCHASE RIGHT. Each purchase right shall be
automatically exercised in installments on each successive Purchase Date within
the offering period, and shares of Common Stock shall accordingly be purchased
on behalf of each Participant on each such Purchase Date. The purchase shall be
effected by applying the Participant's payroll deductions for the Purchase
Interval ending on such Purchase Date to the purchase of whole shares of Common
Stock at the purchase price in effect for the Participant for that Purchase
Date.

<PAGE>   4

        C. PURCHASE PRICE. The purchase price per share at which Common Stock
will be purchased on the Participant's behalf on each Purchase Date within the
offering period shall be equal to eighty-five percent (85%) of the lower of (i)
the Fair Market Value per share of Common Stock on the Participant's Entry Date
into that offering period or (ii) the Fair Market Value per share of Common
Stock on that Purchase Date.

        D. NUMBER OF PURCHASABLE SHARES. The number of shares of Common Stock
purchasable by a Participant on each Purchase Date during the offering period
shall be the number of whole shares obtained by dividing the amount collected
from the Participant through payroll deductions during the Purchase Interval
ending with that Purchase Date by the purchase price in effect for the
Participant for that Purchase Date.

        E. EXCESS PAYROLL DEDUCTIONS. Any payroll deductions not applied to the
purchase of shares of Common Stock on any Purchase Date because they are not
sufficient to purchase a whole share of Common Stock shall be held for the
purchase of Common Stock on the next Purchase Date.

        F. TERMINATION OF PURCHASE RIGHT. The following provisions shall govern
the termination of outstanding purchase rights:

                (i) A Participant may, at any time prior to the next scheduled
        Purchase Date in the offering period, terminate his or her outstanding
        purchase right by filing the appropriate form with the Plan
        Administrator (or its designate), and no further payroll deductions
        shall be collected from the Participant with respect to the terminated
        purchase right. Any payroll deductions collected during the Purchase
        Interval in which such termination occurs shall, at the Participant's
        election, be immediately refunded or held for the purchase of shares on
        the next Purchase Date. If no such election is made at the time such
        purchase right is terminated, then the payroll deductions collected with
        respect to the terminated right shall be refunded as soon as possible.

                (ii) The termination of such purchase right shall be
        irrevocable, and the Participant may not subsequently rejoin the
        offering period for which the terminated purchase right was granted. In
        order to resume participation in any subsequent offering period, such
        individual must re-enroll in the Plan (by making a timely filing of the
        prescribed enrollment forms) on or before his or her scheduled Entry
        Date into that offering period.

                (iii) Should the Participant cease to remain an Eligible
        Employee for any reason (including death, disability or change in
        status) while his or her purchase right remains outstanding, then that
        purchase right shall immediately terminate, and all of the Participant's
        payroll deductions for the Purchase interval in which the purchase right
        so terminates shall be immediately refunded. However, should the
        Participant cease to remain in active service by reason of an approved
        unpaid leave of absence, then the Participant shall have the right,
        exercisable up until the last payroll day of the Purchase Interval in
        which such leave commences, to (a) withdraw all the payroll deductions
        collected to date on his or her behalf for that Purchase Interval or (b)
        have such funds held for the purchase of shares on his or her behalf on
        the next scheduled Purchase Date. In no event, however, shall any
        further payroll deductions be collected on the

<PAGE>   5

        Participant's behalf during such leave. Upon the Participant's return to
        active service (i) within ninety (90) days following the commencement of
        such leave or (ii) the expiration of any longer period for which such
        Participant's right to reemployment with the Corporation is guaranteed
        by either statute or contract, his or her payroll deductions under the
        Plan shall automatically resume at the rate in effect at the time the
        leave began, unless the Participant withdraws from the Plan prior to his
        or her return.

        G. CHANGE IN CONTROL. Each outstanding purchase right shall
automatically be exercised, immediately prior to the effective date of any
Change in Control, by applying the payroll deductions of each Participant for
the Purchase Interval in which such Change in Control occurs to the purchase of
whole shares of Common Stock at a purchase price per share equal to eighty-five
percent (85%) of the lower of (i) the Fair Market Value per share of Common
Stock on the Participant's Entry Date into the offering period in which such
Change in Control occurs or (ii) the Fair Market Value per share of Common Stock
immediately prior to the effective date of such Change in Control.

        The Corporation shall use its best efforts to provide at least ten
(10)-days prior written notice of the occurrence of any Change in Control, and
Participants shall, following the receipt of such notice, have the right to
terminate their outstanding purchase rights prior to the effective date of the
Change in Control.

        H. PRORATION OF PURCHASE RIGHTS. Should the total number of shares of
Common Stock to be purchased pursuant to outstanding purchase rights on any
particular date exceed the number of shares then available for issuance under
the Plan, the Plan Administrator shall make a pro-rata allocation of the
available shares on a uniform and nondiscriminatory basis, and the payroll
deductions of each Participant, to the extent in excess of the aggregate
purchase price payable for the Common Stock pro-rated to such individual, shall
be refunded.

        I. ASSIGNABILITY. The purchase right shall be exercisable only by the
Participant during the Participant's lifetime, and shall not be assignable or
transferable by the Participant only by the laws of descent and distribution.

        J. SHAREHOLDER RIGHTS. A Participant shall have no shareholder rights
with respect to the shares subject to his or her outstanding purchase right
until the shares are purchased on the Participant's behalf in accordance with
the provisions of the Plan and the Participant has become a holder of record of
the purchased shares.

VIII. ACCRUAL LIMITATIONS

        A. No Participant shall be entitled to accrue rights to acquire Common
Stock pursuant to any purchase right outstanding under this Plan if and to the
extent such accrual, when aggregated with (i) rights to purchase Common Stock
accrued under any other purchase right granted under this Plan and (ii) similar
rights accrued under other employee stock purchase plans (within the meaning of
Code Section 423) of the Corporation or any Corporate Affiliate, would otherwise
permit such Participant to purchase more than Twenty-Five Thousand Dollars
($25,000) worth of stock of the Corporation or any Corporate Affiliate
(determined on the basis of the Fair Market value per share on the date or dates
such rights are granted) for each calendar year such rights are at any time
outstanding.

<PAGE>   6

        B. For purposes of applying such accrual limitations to the purchase
rights granted under the Plan, the following provisions shall be in effect:

                (i) The right to acquire Common Stock under each outstanding
        purchase right shall accrue in a series of installments on each
        successive Purchase Date during the offering period on which such right
        remains outstanding.

                (ii) No right to acquire Common Stock under any outstanding
        purchase right shall accrue to the extent the Participant has already
        accrued in the same calendar year the right to acquire Common Stock
        under one (1) or more other purchase rights at a rate equal to
        Twenty-Five Thousand Dollars ($25,000) worth of Common Stock (determined
        on the basis of the Fair Market Value per share on the date or dates of
        grant) for each calendar year such rights were at any time outstanding.

        C. If by reason of such accrual limitations, any purchase right of a
Participant does not accrue for a particular Purchase Interval, then the payroll
deductions which the Participant made during that Purchase Interval with respect
to such purchase right shall be promptly refunded.

        D. In the event there is any conflict between the provisions of this
Article and one or more provisions of the Plan or any instrument issued
thereunder, the provisions of this Article shall be controlling.

IX. EFFECTIVE DATE AND TERM OF THE PLAN

        A. The Plan was adopted by the Board on March 13, 2000 and shall become
effective at the Effective Time, provided no purchase rights granted under the
Plan shall be exercised, and no shares of Common Stock shall be issued
hereunder, until (i) the Plan shall have been approved by the shareholders of
the Corporation and (ii) the Corporation shall have complied with all applicable
requirements of the 1933 Act (including the registration of the shares of Common
Stock issuable under the Plan on a Form S-8 registration statement filed with
the Securities and Exchange Commission), all applicable listing requirements of
any Stock Exchange (or the Nasdaq National Market, if applicable) on which the
Common Stock is listed for trading and all other applicable requirements
established by law or regulation. In the event such shareholder approval is not
obtained, or such compliance is not effected, within twelve (12) months after
the date on which the Plan is adopted by the Board, the Plan shall terminate and
have no further force or effect, and all sums collected from Participants during
the initial offering period hereunder shall be refunded.

        B. Unless sooner terminated by the Board, the Plan shall terminate upon
the earliest of (i) the last payroll day prior to June 15, 2010, (ii) the date
on which all shares available for issuance under the Plan shall have been sold
pursuant to purchase rights exercised under the Plan or (iii) the date on which
all purchase rights are exercised in connection with a Change in Control. No
further purchase rights shall be granted or exercised, and no further payroll
deductions shall be collected, under the Plan following such termination.

<PAGE>   7

X. AMENDMENT OF THE PLAN

        The Board may alter, amend, suspend or discontinue the Plan at any time
to become effective immediately following the close of any Purchase Interval.
However, the Board may not, without the approval of the Corporation's
shareholders, (i) increase the number of shares of Common Stock issuable under
the Plan, except for permissible adjustments in the event of certain changes in
the Corporation's capitalization, (ii) alter the purchase price formula so as to
reduce the purchase price payable for the shares of Common Stock purchasable
under the Plan or (iii) modify eligibility requirements for participation in the
Plan.

XI. GENERAL PROVISIONS

        A. The Corporation shall pay all costs and expenses incurred in the
administration of the Plan; however, each Plan Participant shall bear all costs
and expenses incurred by such individual in the sale or other disposition of any
shares purchased under the Plan.

        B. Nothing in the Plan shall confer upon the Participant any right to
continue in the employ of the Corporation or any Corporate Affiliate for any
period of specific duration or interfere with or otherwise restrict in any way
the rights of the Corporation (or any Corporate Affiliate employing such person)
or of the Participant, which rights are hereby expressly reserved by each, to
terminate such person's employment at any time for any reason, with or without
cause.

        C. The laws of the State of California shall govern the provisions of
the Plan without resort to that State's conflict-of-laws rules.

        D. The Corporation and each Participating Corporation shall have the
right to take whatever steps the Plan Administrator deems necessary or
appropriate to comply with all applicable federal, state, local, employment or
other tax withholding requirements, and the Corporation's obligations to deliver
shares under this Plan shall be conditioned upon compliance with all such
withholding tax requirements. Without limiting the generality of the foregoing,
the Corporation and each Participating Employer shall have the right to withhold
taxes from any other compensation or other amounts which it may owe to the
Participant, or to require the Participant to pay to the Corporation or the
Participating Corporation the amount of any taxes which the Corporation or the
Participating Corporation may be required to withhold with respect to such
shares. In this connection, the Plan Administrator may require the Participant
to notify the Plan Administrator, the Corporation, or a Participating
Corporation before the Participant sells or otherwise disposes of any shares
acquired under the Plan.

        E. If the outstanding shares of Common Stock are increased, decreased,
changed into or exchanged for a different number or kind of shares or securities
of the Corporation or a successor entity, or for other property (including
without limitation, cash), through reorganization, merger, recapitalization,
reclassification, stock combination, stock dividend, stock split, reverse stock
split, spin off or other similar transaction, an appropriate and proportionate
adjustment will be made in the maximum number and kind of shares as to which
purchase rights may be granted under this Plan. A corresponding adjustment
changing the number or kind of shares allocated to purchase rights that have
been granted prior to any such change will likewise be made. Any such adjustment
in the outstanding purchase rights will be made without change in the aggregate
purchase price applicable to the unexercised portion of the purchase rights but
with a corresponding adjustment in the price for each share or other unit of any
security

<PAGE>   8

covered by the purchase right. Such adjustment will be made by the Plan
Administrator, whose determination in that respect will be final, binding, and
conclusive. Where an adjustment under this Section XI.E is made, the adjustment
will be made in a manner which will not be considered a "modification" under the
provisions of subsection 424(h)(3) of the Code.

<PAGE>   9

                                   SCHEDULE A

                          CORPORATIONS PARTICIPATING IN
                          EMPLOYEE STOCK PURCHASE PLAN
                            AS OF THE EFFECTIVE TIME

                        OZ.COM, a California corporation

                        OZ, hf, an Icelandic corporation

<PAGE>   10

                                    APPENDIX

        The following definitions shall be in effect under the Plan:

        A. BOARD shall mean the Corporation's Board of Directors.

        B. CASH EARNINGS shall mean the (i) base salary payable to a Participant
by one or more Participating Companies during such individual's period of
participation in one or more offering periods under the Plan plus (ii) all
overtime payments, bonuses, commissions, current profit-sharing distributions
and other incentive-type payments. Such Cash Earnings shall be calculated before
deduction of (A) any income or employment tax withholdings or (B) any pre-tax
contributions made by the Participant to any Code Section 401(k) salary deferral
plan or any Code Section 125 cafeteria benefit program now or hereafter
established by the Corporation or any Corporate Affiliate. However, Cash
Earnings shall NOT include any contributions (other than Code Section 401(k) or
Code Section 125 contributions) made on the Participant's behalf by the
Corporation or any Corporate Affiliate to any employee benefit or welfare plan
now or hereafter established.

        C. CHANGE IN CONTROL shall mean either of the following
shareholder-approved transactions to which the Corporation is a party:

                (i) a merger or consolidation in which securities possessing
        more than fifty percent (50%) of the total combined voting power of the
        Corporation's outstanding securities are transferred to a person or
        persons different from the persons holding those securities immediately
        prior to such transaction,

                (ii) the sale, transfer or other disposition of all or
        substantially all of the assets of the Corporation in complete
        liquidation or dissolution of the Corporation, or

                (iii) the acquisition, directly or indirectly by any person or
        related group of persons (other than the Corporation or a person that
        directly or indirectly controls, is controlled by, or is under common
        control with, the Corporation), of beneficial ownership (within the
        meaning of Rule l3d-3 of the Securities Exchange Act of 1934, as
        amended) of securities possessing more than fifty percent (50%) of the
        total combined voting power of the Corporation's outstanding securities
        pursuant to a tender or exchange offer made directly to the
        Corporation's shareholders.

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

        E. COMMON STOCK shall mean the Corporation's common stock.

        F. CORPORATE AFFILIATE shall mean any parent or subsidiary corporation
of the Corporation (as determined in accordance with Code Section 424), whether
now existing or subsequently established.

        G. CORPORATION shall mean OZ.COM, a California corporation, and any
corporate successor to all or substantially all of the assets or voting stock of
OZ.COM which shall by appropriate action adopt the Plan.

<PAGE>   11

        H. EFFECTIVE TIME shall mean June 15, 2000. Any Corporate Affiliate that
becomes a Participating Corporation after such Effective Time shall designate a
subsequent Effective Time with respect to its employee-Participants.

        I. ELIGIBLE EMPLOYEE shall mean any employee who is employed by a
Participating Corporation for earnings considered wages under Code Section
3401(a).

        J. ENTRY DATE shall mean the date an Eligible Employee first commences
participation in the offering period in effect under the Plan. The earliest
Entry Date under the Plan shall be the Effective Time.

        K. FAIR MARKET VALUE per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

                (i) If the Common Stock is at the time traded on the Nasdaq
        National Market, then the Fair Market value shall be the closing selling
        price per share of Common Stock on the date in question, as such price
        is reported by the National Association of Securities Dealers on the
        Nasdaq National Market. If there is no closing selling price for the
        Common Stock on the date in question, then the Fair Market Value shall
        be the closing selling price on the last preceding date for which such
        quotation exists.

                (ii) If the Common Stock is at the time listed on any Stock
        Exchange, then the Fair market Value shall be the closing selling price
        per share of Common Stock on the date in question on the Stock Exchange
        determined by the Plan Administrator to be the primary market for the
        Common stock, as such price is officially quoted in the composite tape
        of transactions on such exchange. If there is no closing selling price
        for the Common Stock on the date in question, then the Fair Market Value
        shall be the closing selling price on the last preceding date for which
        such quotation exists.

        L. 1933 ACT shall mean the Securities Act of 1933, as amended.

        M. PARTICIPANT shall mean any Eligible Employee of a Participating
Corporation who is actively participating in the Plan.

        N. PARTICIPATING CORPORATION shall mean the Corporation and such
Corporate Affiliate or Affiliates as may be authorized from time to time by the
Board to extend the benefits of the Plan to their Eligible Employees. The
Participating Corporations in the Plan are listed in attached Schedule A.

        O. PLAN shall mean the Corporation's 2000 Employee Stock Purchase Plan,
as set forth in this document.

        P. PLAN ADMINISTRATOR shall mean the Board, or a committee designated by
the Board, which committee shall consist solely of two (2) or more persons who
are "non-employee directors" within the meaning of Rule 16b-3 promulgated under
the Securities Exchange Act of 1934, as amended.

        Q. PURCHASE DATE shall mean the last payroll day of each Purchase
Interval. The initial Purchase Date shall be the last payroll day of December
2000.

<PAGE>   12

        R. PURCHASE INTERVAL shall mean each successive six (6)-month period
within the offering period at the end of which there shall be purchased shares
of Common Stock on behalf of each Participant.

        S. QUARTERLY ENTRY DATE shall mean the first payroll day in January,
April, July and October of each year on which an Eligible Employee may first
enter an offering period.

        T. STOCK EXCHANGE shall mean the American Stock Exchange, the New York
Stock Exchange, or the OM Stockholmborsen, AB, commonly known as the Stockholm
Stock Exchange.

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